Boeing 2010 Annual Report Download - page 84

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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 2004-2006 with the IRS. Depending on the timing and outcome of the audit
settlement, unrecognized tax benefits that affect the effective tax rate could increase earnings by up to
$300 based on current estimates.
The research and development credit expired on December 31, 2009. On December 17, 2010,
President Obama signed into law, the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 that retroactively renews the research and development tax credit for 2010 and
extends the credit through December 31, 2011.
Note 6 – Accounts Receivable
Accounts receivable at December 31 consisted of the following:
2010 2009
U.S. government contracts $2,969 $3,090
Commercial customers 1,241 1,206
Reinsurance receivables 487 494
Non-U.S. military contracts 514 436
Sea Launch receivables, net of reserves(1) 438
Other 253 162
Less valuation allowance (42) (41)
Total $5,422 $5,785
(1) During 2010, the Sea Launch receivables were reclassified from Accounts receivable to Other
assets. See discussion below.
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
2010 2009 2010 2009
Current $ 994 $1,273 $30 $33
Expected to be collected after one year 507 450 194 151
Total $1,501 $1,723 $224 $184
Under contract accounting unbillable receivables on long-term contracts arise when the sales or
revenues based on performance attainment, though appropriately recognized, cannot be billed yet
under terms of the contract as of the balance sheet date. Any adjustment for the credit quality of
unbillable receivables, if required, would be recorded as a direct reduction of revenue. Factors
considered in assessing the collectibility of unbillable receivables include, but are not limited to, a
customer’s extended delinquency, requests for restructuring and filings for bankruptcy. Unbillable
receivables related to commercial customers expected to be collected after one year were $213 and
$158 at December 31, 2010 and 2009. Accounts receivable related to claims are items that we believe
are earned, but are subject to uncertainty concerning their determination or ultimate realization.
Accounts receivable, other than those described above, expected to be collected after one year are not
material.
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