Boeing 2009 Annual Report Download - page 50

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Financial Position
The following table presents selected financial data for BCC as of December 31,:
(Dollars in millions) 2009 2008
BCC Customer Financing and Investment Portfolio $ 5,666 $ 6,023
Valuation Allowance as a % of Total Receivables 2.5% 2.1%
Debt $ 4,075 $ 3,652
Debt-to-Equity Ratio 5.8-to-1 5.0-to-1
BCC’s customer financing and investment portfolio at December 31, 2009 decreased from
December 31, 2008 due to normal portfolio run-off partially offset by new business volume. At
December 31, 2009 and 2008, BCC had $385 million and $685 million of assets that were held for sale
or re-lease, of which $345 million and $305 million had either executed term sheets with deposits or
firm contracts to be sold or placed on lease. In March 2009, Mexicana Group committed to lease 25
717 aircraft, including 13 that were placed on lease and 12 that were held for sale or re-lease at
December 31, 2009. Additionally, aircraft subject to leases with a carrying value of approximately $171
million are scheduled to be returned off lease during 2010. These aircraft are being remarketed or the
leases are being extended and approximately $15 million of such aircraft had either executed term
sheets with deposits or firm contracts at December 31, 2009.
BCC enters into certain transactions with the Other segment in the form of intercompany guarantees
and other subsidies.
Restructurings and Restructuring Requests
From time to time, certain customers have requested a restructuring of their transactions with BCC. As
of December 31, 2009, BCC has not reached agreement on any restructuring requests that would have
a material adverse effect on its earnings, cash flows and/or financial position.
Other Segment
(Dollars in millions)
Years ended December 31, 2009 2008 2007
Revenues $ 165 $ 567 $ 308
Loss from operations $(152) $(307) $(331)
Effective January 1, 2008, certain intercompany items were realigned between the Other segment and
Unallocated expense. Business segment data for all periods presented have been adjusted to reflect
the realignment. Other segment revenues for the year ended December 31, 2009 decreased by $402
million compared with 2008 primarily due to the sale of three C-17 aircraft in 2008 held under operating
lease. Other segment operating losses for the year ended December 31, 2009 decreased by $155
million primarily due to recognition of pre-tax expense of $82 million in the prior year to increase the
allowance for losses on customer financing receivables related to lower U.S. airline customer credit
ratings. During 2009, Other segment recognized $76 million in lower charges relating to environmental
remediation than in 2008.
Other segment revenues for the year ended December 31, 2008 increased by $259 million compared
with 2007 primarily due to the sale of four C-17 aircraft held under operating lease, three of which were
sold in 2008. Other segment operating losses for the year ended December 31, 2008 decreased by
$24 million compared with 2007 primarily due to $50 million in lower environmental and certain other
charges offset by the recognition of a provision for losses of $82 million related to lower U.S. airline
customer credit ratings. The provision for losses amount has been recorded in the Other segment as a
result of intercompany guarantees we provide to BCC.
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