Boeing 2009 Annual Report Download - page 87

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The average recorded investment in impaired receivables as of December 31, 2009, 2008 and 2007,
was $162, $197, and $589, respectively. Income recognition is generally suspended for receivables at
the date full recovery of income and principal becomes not probable. Income is recognized when
receivables become contractually current and performance is demonstrated by the customer. Interest
income recognized on such receivables was $9, $14, and $50 for the years ended December 31, 2009,
2008 and 2007, respectively.
The change in the allowance for losses on receivables for the years ended December 31, 2009, 2008
and 2007, consisted of the following:
Allowance for
Losses
Beginning balance – January 1, 2007 $(254)
Customer financing valuation benefit/(provision) 60
Other (1)
Ending balance – December 31, 2007 (195)
Customer financing valuation benefit/(provision) (84)
Reduction in customer financing assets 10
Ending balance – December 31, 2008 (269)
Customer financing valuation benefit/(provision) (45)
Reduction in customer financing assets 12
Ending balance – December 31, 2009 $(302)
Aircraft financing is collateralized by security in the related asset. The value of the collateral is closely
tied to commercial airline performance and may be subject to reduced valuation with market decline.
Our financing portfolio has a concentration of various model aircraft. Aircraft financing carrying values
related to major aircraft concentrations at December 31 were as follows:
2009 2008
717 Aircraft ($662 and $694 accounted for as operating leases)* $2,262 $2,365
757 Aircraft ($708 and $780 accounted for as operating leases)* 902 991
737 Aircraft ($400 and $453 accounted for as operating leases) 553 464
767 Aircraft ($154 and $181 accounted for as operating leases) 465 540
MD-11 Aircraft ($384 and $536 accounted for as operating leases)* 384 536
* Out of production aircraft
We recorded charges related to customer financing asset impairment in operating earnings, primarily
as a result of declines in projected future cash flows. These charges for the years ended December 31
were as follows:
2009 2008 2007
Boeing Capital Corporation $91 $35 $33
Other Boeing 815
$99 $35 $48
75