Boeing 2014 Annual Report Download - page 106

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94
Termination Provisions
Certain of the pension plans provide that, in the event there is a change in control of the Company which
is not approved by the Board of Directors and the plans are terminated within five years thereafter, the
assets in the plan first will be used to provide the level of retirement benefits required by ERISA, and then
any surplus will be used to fund a trust to continue present and future payments under the postretirement
medical and life insurance benefits in our group insurance benefit programs.
We have an agreement with the U.S. government with respect to certain pension plans. Under the
agreement, should we terminate any of the plans under conditions in which the plan’s assets exceed that
plan’s obligations, the U.S. government will be entitled to a fair allocation of any of the plan’s assets based
on plan contributions that were reimbursed under U.S. government contracts.
Defined Contribution Plans
We provide certain defined contribution plans to all eligible employees. The principal plans are the
Company-sponsored 401(k) plans. The expense for these defined contribution plans was $764, $742 and
$708 in 2014, 2013 and 2012, respectively.
Note 15 – Share-Based Compensation and Other Compensation Arrangements
Share-Based Compensation
Our 2003 Incentive Stock Plan, as amended and restated, permits awards of incentive and non-qualified
stock options, stock appreciation rights, restricted stock or units, performance shares, performance
restricted stock or units, performance units and other stock and cash-based awards to our employees,
officers, directors, consultants, and independent contractors. The aggregate number of shares of our stock
authorized for issuance under the plan is 87,000,000.
Shares issued as a result of stock option exercises or conversion of stock unit awards will be funded out
of treasury shares, except to the extent there are insufficient treasury shares, in which case new shares
will be issued. We believe we currently have adequate treasury shares to satisfy these issuances during
2015.
Share-based plans expense is primarily included in General and administrative expense since it is incentive
compensation issued primarily to our executives. The share-based plans expense and related income tax
benefit were as follows:
Years ended December 31, 2014 2013 2012
Stock options $62 $93 $85
Restricted stock units and other awards 133 113 108
Share-based plans expense $195 $206 $193
Income tax benefit $70 $76 $75
Stock Options
In February 2013 and 2012, we granted to our executives 6,591,968 and 6,114,922 options, respectively.
The options have been granted with an exercise price equal to the fair market value of our stock on the
date of grant and expire ten years after the date of grant. The stock options vest over a period of three
years, with 34% vesting after the first year, 33% vesting after the second year and the remaining 33%
vesting after the third year. If an executive terminates employment for any reason, the non-vested portion