Boeing 2009 Annual Report Download - page 83

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A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
2009 2008
Unrecognized Tax Benefits – January 1, $1,453 $1,272
Gross increases – tax positions in prior periods 219 88
Gross decreases – tax positions in prior periods (31) (28)
Gross increases – current-period tax positions 148 132
Settlements (10)
Lapse of statute of limitations (2) (1)
Unrecognized Tax Benefits – December 31, $1,787 $1,453
As of December 31, 2009 and 2008, the total amount of unrecognized tax benefits was $1,787 and
$1,453, of which $1,452 and $1,171 would affect the effective tax rate, if recognized. These amounts are
primarily associated with U.S. federal tax issues such as the tax benefits from the Foreign Sales
Corporation/Extraterritorial Income (FSC/ETI) tax rules, the amount of research and development tax
credits claimed, U.S. taxation of foreign earnings, and valuation issues regarding charitable contributions
claimed. Also included in these amounts are accruals for domestic state tax issues such as the allocation
of income among various state tax jurisdictions and the amount of state tax credits claimed.
Audit outcomes and the timing of audit settlements are subject to significant uncertainty. It is
reasonably possible that within the next 12 months we will resolve some or all of the matters presently
under consideration for 1998-2006 with the IRS. Depending on the timing and outcomes of the audit
settlements, unrecognized tax benefits that affect the effective tax rate could increase earnings by up
to $600 based on current estimates.
The Research and Development credit expired on December 31, 2009. Congress is currently
considering bills that will extend the credit. If the Research and Development credit is not legislatively
enacted there would be an unfavorable impact on our 2010 effective income tax rate.
Note 6 – Accounts Receivable
Accounts receivable at December 31 consisted of the following:
2009 2008
U.S. government contracts $3,090 $2,675
Commercial customers 1,206 1,041
Reinsurance receivables 494 495
Sea Launch receivables, net of reserves 438
Non-U.S. military contracts 436 391
Other 162 1,054
Less valuation allowance (41) (54)
Total $5,785 $5,602
The following table summarizes our accounts receivable under long-term contracts that were not
billable or related to outstanding claims as of December 31:
Unbillable Claims
2009 2008 2009 2008
Current $1,273 $ 990 $33 $32
Expected to be collected after one year 450 467 151 120
Total $1,723 $1,457 $184 $152
71