Boeing 2011 Annual Report Download - page 85

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Note 8 – Customer Financing
Customer financing at December 31 consisted of the following:
2011 2010
Financing receivables:
Investment in sales-type/finance leases $2,037 $2,272
Notes 814 480
Operating lease equipment, at cost, less accumulated depreciation of $765 and
$847 1,991 2,281
Gross customer financing 4,842 5,033
Less allowance for losses on receivables (70) (353)
Total $4,772 $4,680
The components of investment in sales-type/finance leases at December 31 were as follows:
2011 2010
Minimum lease payments receivable $2,272 $ 2,879
Estimated residual value of leased assets 541 619
Unearned income (776) (1,226)
Total $2,037 $ 2,272
Operating lease equipment primarily includes large commercial jet aircraft and regional jet aircraft. At
December 31, 2011 and 2010, operating lease equipment included $521 and $583 of equipment
available for sale or re-lease. At December 31, 2011 and 2010, we had firm lease commitments for
$476 and $28 of this equipment.
When our Commercial Airplanes segment is unable to immediately sell used aircraft, it may place the
aircraft under an operating lease. It may also provide customer financing with a note receivable. The
carrying amount of the Commercial Airplanes segment used aircraft under operating leases and notes
receivable included as a component of customer financing totaled $357 and $167 as of December 31,
2011 and 2010.
Financing receivable balances evaluated for impairment at December 31 were as follows:
2011 2010
Individually evaluated for impairment $ 854 $ 99
Collectively evaluated for impairment 1,997 2,653
Total financing receivables $2,851 $2,752
Of the $854 and $99 of financing receivables individually evaluated for impairment as of December 31,
2011 and 2010, $485 and $0, were classified as impaired. We recorded no allowance for losses on
these impaired receivables.
The average recorded investment in impaired financing receivables for the years ended December 31,
2011, 2010 and 2009, was $517, $88 and $162, respectively. Income recognition is generally
suspended for financing receivables at the date full recovery of income and principal becomes not
probable. Income is recognized when financing receivables become contractually current and
performance is demonstrated by the customer. As of December 31, 2011, we had no interest income
recognized on such receivables and $9 and $9 for the years ended December 31, 2010 and 2009,
respectively.
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