Boeing 2014 Annual Report Download - page 109

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97
PBRSU activity for the year ended December 31, 2014 was as follows:
Long-Term Incentive
Program
Number of units:
Outstanding at beginning of year
Granted 662,215
Dividends 10,497
Forfeited (49,610)
Distributed 0
Outstanding at end of year 623,102
Unrecognized compensation cost $53
Weighted average remaining contractual life (years) 2.1
Other Compensation Arrangements
Performance Awards
Performance Awards are cash units that pay out based on the achievement of long-term financial goals
at the end of a three-year period. Each unit has an initial value of $100 dollars. The amount payable at
the end of the three-year performance period may be anywhere from $0 to $200 dollars per unit, depending
on the Company’s performance against plan for a three-year period. The Compensation Committee has
the discretion to pay these awards in cash, stock, or a combination of both after the three-year performance
period. Compensation expense, based on the estimated performance payout, is recognized ratably over
the performance period.
During 2014, 2013 and 2012, we granted Performance Awards to our executives with the payout based
on the achievement of financial goals for each three-year period following the grant date. The minimum
payout amount is $0 and the maximum amount we could be required to pay out for the 2014, 2013 and
2012 Performance Awards is $343, $261 and $251, respectively. The 2012 grant is expected to be paid
out in cash in March 2015.
Deferred Compensation
The Company has a deferred compensation plan which permits executives to defer receipt of a portion of
their salary, bonus, and certain other incentive awards. Participants can diversify deferred compensation
among 23 investment funds including a Boeing stock unit account.
Total expense related to deferred compensation was $44, $238 and $75 in 2014, 2013 and 2012,
respectively. As of December 31, 2014 and 2013, the deferred compensation liability which is being marked
to market was $1,234 and $1,258.
Note 16 – Shareholders’ Equity
On December 15, 2014, the Board approved a new repurchase plan for up to $12,000 of common stock,
replacing the previously authorized program. The program will expire when we have used all authorized
funds or is otherwise terminated.
As of December 31, 2014 and 2013, there were 1,200,000,000 shares of common stock and 20,000,000
shares of preferred stock authorized. No preferred stock has been issued.