Boeing 2011 Annual Report Download - page 58
Download and view the complete annual report
Please find page 58 of the 2011 Boeing annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
 |
 |
The following table shows the sensitivity of our pension and other postretirement benefit plan liabilities
and net periodic cost to a 25 basis point change in the discount rate as of December 31, 2011.
(Dollars in millions)
Change in discount rate
Increase 25 bps
Change in discount rate
Decrease 25 bps
Pension plans
Projected benefit obligation $(2,108) $2,684
Net periodic pension cost (220) 280
Other postretirement benefit plans
Accumulated postretirement benefit obligation (173) 203
Net periodic postretirement benefit cost (13) 15
Pension expense is also sensitive to changes in the expected long-term rate of asset return. A
decrease or increase of 25 basis points in the expected long-term rate of asset return would have
increased or decreased 2011 net periodic pension expense by $124 million. We expect 2012 net
periodic pension cost to increase by approximately $700 million and the portion recognized in earnings
for 2012 to increase by approximately $1.0 billion primarily due to a reduction in the discount rate from
5.3% at December 31, 2010 to 4.4% at December 31, 2011 and amortization of actuarial losses.
Absent increases in interest rates, higher asset values and/or higher contributions, net periodic pension
cost will increase further in future years.
The assumed medical trend rates have a significant effect on the following year’s expense, recorded
liabilities and Shareholders’ equity. The following table shows the sensitivity of our other postretirement
benefit plan liabilities and net periodic cost to a 100 basis point change as of December 31, 2011.
(Dollars in millions)
Change in medical trend rate
Increase 100 bps
Change in medical trend rate
Decrease 100 bps
Other postretirement benefit plans
Accumulated postretirement benefit
obligation $642 $(572)
Net periodic postretirement benefit
cost 127 (111)
46