Boeing 2011 Annual Report Download - page 53

Purchase Obligations Recorded on the Consolidated Statements of Financial Position Purchase
obligations recorded on the Consolidated Statements of Financial Position primarily include accounts
payable and certain other liabilities including accrued compensation.
Industrial Participation Agreements We have entered into various industrial participation
agreements with certain customers outside of the U.S. to facilitate economic flow back and/or
technology transfer to their businesses or government agencies as the result of their procurement of
goods and/or services from us. These commitments may be satisfied by our placement of direct work
or vendor orders for supplies, opportunities to bid on supply contracts, transfer of technology or other
forms of assistance. However, in certain cases, our commitments may be satisfied through other
parties (such as our vendors) who purchase supplies from our non-U.S. customers. We do not commit
to industrial participation agreements unless a contract for sale of our products or services is signed. In
certain cases, penalties could be imposed if we do not meet our industrial participation commitments.
During 2011, we incurred no such penalties. As of December 31, 2011, we have outstanding industrial
participation agreements totaling $11.1 billion that extend through 2024. Purchase order commitments
associated with industrial participation agreements are included in purchase obligations in the table
above. To be eligible for such a purchase order commitment from us, a foreign supplier must have
sufficient capability to meet our requirements and must be competitive in cost, quality and schedule.
Income Tax Obligations As of December 31, 2011, our net asset for income taxes receivable,
including uncertain tax positions, was $179 million. We are not able to reasonably estimate the timing
of future cash flows related to uncertain tax positions. Our income tax matters are excluded from the
table above. See Note 5 to our Consolidated Financial Statements.
Commercial Commitments
The following table summarizes our commercial commitments outstanding as of December 31, 2011.
(Dollars in millions)
Total Amounts
Committed/Maximum
Amount of Loss
Less than
1 year
1-3
years
4-5
years
After 5
years
Standby letters of credit and surety bonds $ 6,199 $4,693 $1,064 $ 304 $ 138
Commercial aircraft financing commitments 15,866 1,562 3,424 6,114 4,766
Total commercial commitments $22,065 $6,255 $4,488 $6,418 $4,904
Commercial aircraft financing commitments include commitments to provide financing related to aircraft
on order, under option for deliveries or proposed as part of sales campaigns based on estimated
earliest potential funding dates. Based on historical experience, we anticipate that we will not be
required to fund a significant portion of our financing commitments. However, there can be no
assurances that we will not be required to fund greater amounts than historically required. See Note 12
to our Consolidated Financial Statements.
Contingent Obligations
We have significant contingent obligations that arise in the ordinary course of business, which include
the following:
Legal Various legal proceedings, claims and investigations are pending against us. Legal
contingencies are discussed in Note 21 to our Consolidated Financial Statements, including our
contesting the default termination of the A-12 aircraft, certain employment, labor and benefits litigation,
litigation/arbitration involving Boeing Satellite Systems International, Inc. programs and civil securities
litigation relating to disclosures concerning the 787 program.
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