Boeing 2005 Annual Report Download - page 69

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Notes to Consolidated Financial Statements
At December 31, 2005, $194 of BCC debt was collateralized
by portfolio assets and underlying equipment totaling $200.
The debt consists of the 1.67% to 7.00% notes due through
2015.
Maturities of long-term debt for the next five years are as fol-
lows:
2006 2007 2008 2009 2010
BCC $«««696 $1,323 $701 $526 $661
Other Boeing 493 45 26 20 19
$1,189 $1,368 $727 $546 $680
In 2004, BCC redeemed $1,000 face value of its outstanding
senior notes, which had a carrying value of $999. BCC recog-
nized a loss of $42 related to this early debt redemption which
consisted of a $52 prepayment penalty for early redemption
offset by $10 related to the amount by which the fair value of
our hedged redeemed debt exceeded the carrying value of our
hedged redeemed debt.
Financing activities
On March 23, 2004, we filed a shelf registration with the SEC
for $1,000 for the issuance of debt securities and underlying
common stock. The entire amount remains available for poten-
tial debt issuance. BCC has $3,421 that remains available from
shelf registrations filed with the SEC.
Note 17 - Postretirement Plans
We have various pension plans covering substantially all
employees. We fund all our major pension plans through trusts.
The key objective of holding pension funds in a trust is to sat-
isfy the retirement benefit obligations of the pension plans.
Pension assets are placed in trust solely for the benefit of the
pension plans’ participants, and are structured to maintain liq-
uidity that is sufficient to pay benefit obligations as well as to
keep pace over the long term with the growth of obligations for
future benefit payments.
We also have postretirement benefits other than pensions
which consist principally of health care coverage for eligible
retirees and qualifying dependents, and to a lesser extent, life
insurance to certain groups of retirees. Retiree health care is
provided principally until age 65 for approximately half those
retirees who are eligible for health care coverage. Certain
employee groups, including employees covered by most United
Auto Workers bargaining agreements, are provided lifetime
health care coverage. We use a measurement date of
September 30 for our pension and other postretirement benefit
(OPB) plans.
The following shows changes in the benefit obligation, plan
assets and funded status of both pensions and OPB. Benefit
obligation balances presented below reflect the projected ben-
efit obligation (PBO) for our pension plans, and accumulated
postretirement benefit obligations (APBO) for our OPB plans.
The Boeing Company and Subsidiaries 67