Boeing 2011 Annual Report Download - page 89

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Note 11 – Other Assets
Sea Launch
At December 31, 2011, Other assets included $356 of receivables related to our former investment in
the Sea Launch venture which became payable by certain Sea Launch partners following Sea
Launch’s bankruptcy filing in June 2009. The $356 includes $147 related to a payment made by us
under a bank guarantee on behalf of Sea Launch and $209 related to loans (partner loans) we made to
Sea Launch. The net amounts owed to Boeing by each of the partners are as follows; S.P. Koroley
Rocket and Space Corporation Energia of Russia – $223, PO Yuzhnoye Mashinostroitelny Zavod of
Ukraine – $89 and KB Yuzhnoye of Ukraine – $44.
Although each partner is contractually obligated to reimburse us for its share of the bank guarantee,
the Russian and Ukrainian partners have raised defenses to enforcement and contested our claims.
On October 19, 2009, we filed a Notice of Arbitration with the Stockholm Chamber of Commerce
seeking reimbursement from the other Sea Launch partners of the $147 bank guarantee payment. On
October 7, 2010, the arbitrator ruled that the Stockholm Chamber of Commerce lacked jurisdiction to
hear the matter but did not resolve the merits of our claim. We filed a notice appealing the arbitrator’s
ruling on January 11, 2011. No legal proceedings have commenced against the partners on the partner
loans. We believe the partners have the financial wherewithal to pay and intend to pursue vigorously all
of our rights and remedies. In the event we are unable to secure reimbursement of $147 related to our
payment under the bank guarantee and $209 related to loans made to Sea Launch, we could incur
additional pre-tax charges of up to $356.
Note 12 – Liabilities, Commitments and Contingencies
Accrued Liabilities
Accrued liabilities at December 31 consisted of the following:
2011 2010
Accrued Compensation and employee benefit costs $ 5,546 $ 5,193
Environmental 758 721
Product warranties 1,046 1,076
Forward loss recognition(1) 501 2,743
Other 4,388 4,069
Total $12,239 $13,802
(1) Forward loss recognition in 2011 relates primarily to the Airborne Early Warning and Control
program (AEW&C). $1,934 of loss related to the 747 Program included in the 2010 balance was
reclassified to inventory during 2011.
Environmental
The following table summarizes environmental remediation during the years ended December 31,
2011 and 2010.
2011 2010
Beginning balance – January 1 $ 721 $706
Reductions for payments made (118) (93)
Changes in estimates 155 108
Ending balance – December 31 $ 758 $721
77