Boeing 2009 Annual Report Download - page 82

Significant components of our deferred tax assets, net of deferred tax liabilities, at December 31 were
as follows:
2009 2008
Retiree health care accruals $ 2,930 $ 2,970
Inventory and long-term contract methods of income recognition and other (net of
valuation allowance of $23 and $17) (994) (604)
Partnerships and joint ventures (528) (500)
Other employee benefits accruals 1,411 1,367
In-process research and development related to acquisitions 79 93
Net operating loss, credit, and charitable contribution carryovers (net of valuation
allowance of $36 and $31) 477 270
Pension asset (liability) 2,345 3,026
Customer and commercial financing (1,703) (1,604)
Unremitted earnings of non-U.S. subsidiaries (55) (55)
Other net unrealized losses (gains) 66 197
Net deferred tax assets1$ 4,028 $ 5,160
1Of the deferred tax asset for net operating loss and credit carryovers, $184 expires in years ending
from December 31, 2010 through December 31, 2029 and $293 may be carried over indefinitely.
Net deferred tax assets at December 31 were as follows:
2009 2008
Deferred tax assets $13,739 $14,700
Deferred tax liabilities (9,652) (9,492)
Valuation allowance (59) (48)
Net deferred tax assets $ 4,028 $ 5,160
The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available
evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
Included in the net deferred tax assets at December 31, 2009 and 2008 are deferred tax assets in the
amounts of $7,226 and $8,134 related to other comprehensive income.
We have provided for U.S. deferred income taxes and foreign withholding tax in the amount of $55 on
undistributed earnings not considered permanently reinvested in our non-U.S. subsidiaries. We have
not provided for U.S. deferred income taxes or foreign withholding tax on the remainder of
undistributed earnings from our non-U.S. subsidiaries because such earnings are considered to be
permanently reinvested and it is not practicable to estimate the amount of tax that may be payable
upon distribution.
As of December 31, 2009 and 2008, the amount of accrued income tax-related interest and penalties
included in the Consolidated Statements of Financial Position was as follows: interest of $271 and
$215, and penalties of $14 and $14. The amount of interest accrued during 2009 was $45.
The years 2004-2006 are currently being examined by the Internal Revenue Service (IRS), and we
have filed appeals with the IRS for 1998-2003. We are also subject to examination in major state and
international jurisdictions for the 2001-2009 tax years. We believe appropriate provisions for all
outstanding issues have been made for all jurisdictions and all open years
70