Boeing 2006 Annual Report Download - page 64

62 The Boeing Company and Subsidiaries
Notes to Consolidated Financial Statements
At December 31, 2006, $160 of BCC debt was collateralized
by portfolio assets and underlying equipment totaling $265. The
debt consists of the 4.12% to 6.45% notes due through 2015.
Maturities of long-term debt for the next five years are as follows:
2007 2008 2009 2010 2011
BCC $1,308 $710 $528 $646 $798
Other Boeing 74 30 23 22 74
$1,382 $740 $551 $668 $872
Note 15 – Postretirement Plans
We have various pension plans covering substantially all
employees. We fund all our major pension plans through trusts.
Pension assets are placed in trust solely for the benefit of the
plans’ participants, and are structured to maintain liquidity 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 healthcare coverage for eligible
retirees and qualifying dependents, and to a lesser extent, life
insurance to certain groups of retirees. Retiree healthcare is
provided principally until age 65 for approximately half those
retirees who are eligible for healthcare coverage. Certain
employee groups, including employees covered by most
United Auto Workers bargaining agreements, are provided
lifetime healthcare coverage. We use a measurement date of
September 30 for our pension and other postretirement
benefit (OPB) plans.
Effective December 31, 2006, we adopted SFAS No. 158,
which requires that the Consolidated Statements of Financial
Position reflect the funded status of the pension and postretire-
ment plans. The funded status of the plans is measured as
the difference between the plan assets at fair value and the
projected benefit obligation. We have recognized the aggregate
of all overfunded plans in Other assets and the aggregate of all
underfunded plans in either Accrued retiree healthcare or
Accrued pension plan liability. The portion of the amount by
which the actuarial present value of benefits included in the
projected benefit obligation exceeds the fair value of plan
assets, payable in the next 12 months, is reflected in Accounts
payable and other liabilities.
At December 31, 2006, previously unrecognized differences
between actual amounts and estimates based on actuarial
assumptions are included in Accumulated other comprehensive
loss in our Consolidated Statements of Financial Position as
required by SFAS No. 158. In future reporting periods, the
difference between actual amounts and estimates based on
actuarial assumptions will be recognized in Other comprehensive
loss in the period in which they occur.
Effective December 31, 2008, SFAS No. 158 will require us to
measure plan assets and benefit obligations at fiscal year end.
We currently perform this measurement at September 30 of
each year. In addition, beginning in fourth quarter of 2007, this
Standard will require us to eliminate the use of a three-month
lag period when recognizing the impact of curtailments or
settlements and instead, recognize these amounts in the period
in which they occur. The provisions of SFAS No. 158 do not
permit retrospective application.
The incremental effect of adopting SFAS 158 on individual line
items in the Consolidated Statements of Financial Position at
December 31, 2006 is shown below:
Before After
Adoption Adoption
of SFAS of SFAS
No. 158 Adjustments No. 158
Deferred income taxes $««2,644 $÷÷÷193 $««2,837
Total current assets 22,790 193 22,983
Prepaid pension expense 12,808 (12,808)
Deferred income taxes 200 851 1,051
Investments 4,179 (94)4,085
Other assets 959 1,776 2,735
Total assets $61,876 $(10,082)$51,794
Accounts payable and
other liabilities $15,935 $÷÷÷266 $16,201
Total current liabilities 29,435 266 29,701
Deferred taxes 4,151 (4,151)
Accrued retiree healthcare 6,103 1,568 7,671
Accrued pension plan liability 789 346 1,135
Other long-term liabilities 260 131 391
Accumulated other
comprehensive loss 25 (8,242)(8,217)
Total liabilities &
shareholders’ equity $61,876 $(10,082)$51,794