Boeing 2009 Annual Report Download - page 53

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date. The share contribution did not affect cash balances. In addition, we made cash contributions of
$82 million during 2009. In 2010, we will begin matching employee contributions to the company-
sponsored 401(k) plan with common stock instead of cash for nonunion employees.
At December 31, 2009 and 2008 our pension plans were $6,356 million and $8,420 million
underfunded as measured under GAAP. In 2010, required contributions to our pension plans are not
expected to exceed $100 million.
As of December 31, 2009, we were in compliance with the covenants for our debt and credit facilities.
The most restrictive covenants include a limitation on mortgage debt and sale and leaseback
transactions as a percentage of consolidated net tangible assets (as defined in the credit agreements),
and a limitation on consolidated debt as a percentage of total capital (as defined). When considering
debt covenants, we continue to have substantial borrowing capacity.
Contractual Obligations
The following table summarizes our known obligations to make future payments pursuant to certain
contracts as of December 31, 2009, and the estimated timing thereof.
(Dollars in millions) Total
Less than
1 year
1-3
years
3-5
years
After 5
years
Long-term debt (including current portion) $ 12,846 $ 680 $ 2,815 $ 2,547 $ 6,804
Interest on debt* 7,981 664 1,204 934 5,179
Pension and other postretirement cash
requirements 22,038 634 1,484 5,304 14,616
Capital lease obligations 76 14 28 22 12
Operating lease obligations 1,158 213 300 188 457
Purchase obligations not recorded on the
Consolidated Statement of Financial Position 100,496 35,387 29,070 20,821 15,218
Purchase obligations recorded on the
Consolidated Statement of Financial Position 11,793 10,893 765 131 4
Total contractual obligations $156,388 $48,485 $35,666 $29,947 $42,290
* Includes interest on variable rate debt calculated based on interest rates at December 31, 2009.
Variable rate debt was approximately 1% of our total debt at December 31, 2009.
Pension and Other Postretirement Benefits Pension cash requirements are based on an estimate of
our minimum funding requirements, pursuant to ERISA regulations, although we may make additional
discretionary contributions. Estimates of other postretirement benefits are based on both our estimated
future benefit payments and the estimated contributions to plans that are funded through trusts.
Purchase Obligations Purchase obligations represent contractual agreements to purchase goods or
services that are legally binding; specify a fixed, minimum or range of quantities; specify a fixed,
minimum, variable, or indexed price provision; and specify approximate timing of the transaction. In
addition, the agreements are not cancelable without substantial penalty. Purchase obligations include
amounts recorded as well as amounts that are not recorded on the Consolidated Statements of
Financial Position. Approximately 9% of the purchase obligations disclosed above are reimbursable to
us pursuant to cost-type government contracts.
Purchase Obligations Not Recorded on the Consolidated Statement of Financial Position
Production related purchase obligations not recorded on the Consolidated Statement of Financial
Position include agreements for production goods, tooling costs, electricity and natural gas contracts,
41