Boeing 2010 Annual Report Download - page 96

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Other Boeing debt includes $300 bearing an interest rate of 7.95% due August 15, 2024 that may be
redeemed at the holder’s option on August 15, 2012.
At December 31, 2010, $107 of BCC debt was collateralized by portfolio assets and underlying
equipment totaling $186. The debt consists of the 0.92% to 5.79% notes due through 2015.
Scheduled principal payments for debt and capital lease obligations for the next five years are as
follows:
2011 2012 2013 2014 2015
Boeing Capital Corporation $798 $ 878 $ 652 $ 526 $ 16
Other Boeing 141 1,420 657 770 821
Total $939 $2,298 $1,309 $1,296 $837
Note 14 – Postretirement Plans
Almost all of our employees are covered by defined benefit pension plans, with the exception of all
nonunion and some union employees hired after December 31, 2008. We fund our major pension
plans through trusts. Pension assets are placed in trust solely for the benefit of the plans’ participants,
and are structured to maintain liquidity that is sufficient to pay benefit obligations as well as to keep
pace over the long term with the growth of obligations for future benefit payments.
We also have other postretirement benefits (OPB) other than pensions which consist principally of
health care coverage for eligible retirees and qualifying dependents, and to a lesser extent, life
insurance to certain groups of retirees. Retiree health care is provided principally until age 65 for
approximately half those retirees who are eligible for health care coverage. Certain employee groups,
including employees covered by most United Auto Workers bargaining agreements, are provided
lifetime health care coverage.
The funded status of the plans is measured as the difference between the plan assets at fair value and
the projected benefit obligation (PBO). We have recognized the aggregate of all overfunded plans in
Pension plan assets, net, and the aggregate of all underfunded plans in either Accrued retiree health
care or Accrued pension plan liability, net. The portion of the amount by which the actuarial present
value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next 12
months, is reflected in Other accrued liabilities.
The components of net periodic benefit cost are as follows:
Pension
Other
Postretirement
Benefits
Years ended December 31, 2010 2009 2008 2010 2009 2008
Service cost $ 1,176 $ 1,090 $ 952 $121 $132 $126
Interest cost 3,002 2,964 2,823 404 466 459
Expected return on plan assets (3,850) (3,738) (3,811) (6) (5) (8)
Amortization of prior service costs 248 242 206 (78) (90) (93)
Recognized net actuarial loss 777 650 392 56 92 86
Settlement/curtailment/transfer loss 14 13
Net periodic benefit cost $ 1,367 $ 1,221 $ 562 $497 $595 $570
Net periodic benefit cost included in Earnings from
operations $ 1,101 $ 879 $ 696 $480 $615 $507
84