Boeing 2006 Annual Report Download - page 63

The Boeing Company and Subsidiaries 61
Notes to Consolidated Financial Statements
Note 13 – Accounts Payable and Other Liabilities
Accounts payable and other liabilities at December 31
consisted of the following:
2006 2005
Accounts payable $««5,643 $««5,124
Accrued compensation and
employee benefit costs 4,852 4,165
Legal, environmental, and other
contingencies(a) 1,254 1,647
Forward loss recognition(b) 532 1,114
Other 3,920 4,463
$16,201 $16,513
(a)Represents items deemed probable and estimable as discussed in Note 22.
(b)Forward loss recognition relates primarily to Airborne Early Warning & Control
in 2006 and launch and satellite contracts in 2005.
Payments associated with these liabilities may occur in periods
significantly beyond the next twelve months. Accounts payable
included $335 and $204 at December 31, 2006 and 2005,
attributable to checks written but not yet cleared by the bank.
Note 14 – Debt
We have $3,000 currently available under credit line agreements.
Boeing Capital Corporation (BCC) is named a subsidiary
borrower for up to $1,500 under these arrangements. Total
debt interest incurred, including amounts capitalized, was $657,
$713, and $790 for the years ended December 31, 2006, 2005
and 2004, respectively. Interest expense recorded by BCC is
reflected as a separate line item on our Consolidated
Statements of Operations, and is included in earnings from
operations. Total company interest payments were $657, $671,
and $722 for the years ended December 31, 2006, 2005 and
2004, respectively. We continue to be in full compliance with all
covenants contained in our debt or credit facility agreements,
including those at BCC.
On June 6, 2002, BCC established a Euro medium-term note
program in the amount of $1,500. At December 31, 2006 and
2005, BCC had zero debt outstanding under the program
such that $1,500 would normally be available for potential
debt issuance. However, debt issuance under this program
requires that documentation, information and other procedures
relating to BCC and the program be updated within the prior
twelve months. In view of BCC’s cash position and other
available funding sources, BCC determined during 2004 that
it was unlikely they would need to use this program in the fore-
seeable future. The program is thus inactive but available with
updated registration statements.
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. Both shelf registrations will
expire in 2008.
Short-term debt and current portion of long-term debt,
consisted of the following:
At December 31, 2006 At December 31, 2005
Consolidated BCC Consolidated BCC
Total Only Total Only
Senior Unsecured
Debt Securities $1,115 $1,115 $1,015 $570
Capital lease obligations 55 47 54 45
Non-recourse debt
and notes 42 4 39 4
Retail notes 141 141 77 77
Other notes 28 4
$1,381 $1,307 $1,189 $696
Debt consisted of the following:
December 31, December 31,
2006 2005
Boeing Capital Corporation debt:
Unsecured debt securities
3.250%–7.640% due through 2023 $5,382 $««6,048
Non-recourse debt and notes
4.840%–7.810% notes due through 2013 76 80
Capital lease obligations
4.120%–8.250% due through 2015 132 194
Subtotal Boeing Capital Corporation debt $5,590 $««6,322
Other Boeing debt:
Non-recourse debt and notes
Enhanced equipment trust $«««442 $«««««477
Unsecured debentures and notes
250, 6.875% due Nov. 1, 2006 250
175, 8.100% due Nov. 15, 2006 175
350, 9.750% due Apr. 1, 2012 349 349
600, 5.125% due Feb. 15, 2013 598 598
400, 8.750% due Aug. 15, 2021 398 398
300, 7.950% due Aug. 15, 2024
(puttable at holder’s option on
Aug. 15, 2012) 300 300
250, 7.250% due Jun. 15, 2025 247 247
250, 8.750% due Sep. 15, 2031 248 248
175, 8.625% due Nov. 15, 2031 173 173
400, 6.125% due Feb. 15, 2033 393 393
300, 6.625% due Feb. 15, 2038 300 300
100, 7.500% due Aug. 15, 2042 100 100
175, 7.875% due Apr. 15, 2043 173 173
125, 6.875% due Oct. 15, 2043 125 125
Senior medium-term notes
7.460% due through 2006 20
Capital lease obligations due through 2009 11 17
Other notes 91 62
Subtotal other Boeing debt $3,948 $««4,405
Total debt $9,538 $10,727