Boeing 2008 Annual Report Download - page 57

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The balance of time deposits, commercial paper and externally managed fixed income instruments
classified as investments at December 31 are summarized in the table below.
(Dollars in millions) 2008 2007 2006
Classified as Short-term investments
Time deposits $1,025
Commercial paper 799
Externally managed fixed income instruments(1) $10 306 $ 257
10 2,130 257
Classified as Investments
Externally managed fixed income instruments(1) 338 2,963 2,923
$348 $5,093 $3,180
(1) Externally managed fixed income instruments consist primarily of investment grade instruments.
These investments had an average duration of 5.5 years at December 31, 2008 and are classified
as available-for-sale.
Financing Activities Cash used by financing activities increased to $5,202 million in 2008 from $4,884
million in 2007 due to repayments of financed purchases of distribution rights, which are agreements
with certain vendors that gives us exclusive rights to sell their applicable parts. The increase was also
due to a decrease in stock options exercised, an increase in common share repurchases and
payments of employee taxes on certain share-based payment arrangements, partially offset by a
reduction in debt repayments. Cash used by financing activities increased to $4,884 million in 2007
from $3,645 million in 2006 primarily due to increased common share repurchases.
During 2008, we repurchased 42,073,885 shares at an average price of $69.79 in our open market
share repurchase program, 1,462,776 shares at an average price of $64.95 as part of the ShareValue
Trust distribution, and 74,824 shares in stock swaps. During 2007, we repurchased 28,995,599 shares
at an average price of $95.68 in our open market share repurchase program and 28,432 shares in
stock swaps. During 2006, we repurchased 21,184,202 shares at an average price of $80.18 in our
open market share repurchase program, 3,749,377 shares at an average price of $80.28 as part of the
ShareValue Trust distribution, and 49,288 shares in stock swaps. We expect to reduce 2009 share
repurchase activity to a minimal level.
In 2008, we repaid $738 million of debt, including $709 million of debt held at BCC. In 2007, we repaid
$1,406 million of debt, including $1,309 million of debt held at BCC. In 2006, we repaid $1,681 million
of debt, including $713 million of debt held at BCC and $458 million of debt assumed in the Aviall
acquisition. There were no debt issuances during 2008, 2007, or 2006. At December 31, 2008 and
2007, the recorded balance of debt was $7,512 million and $8,217 million, of which $560 million and
$762 million were classified as short-term. This includes $3,652 million and $4,327 million of debt
recorded at BCC, of which $528 million and $706 million was classified as short-term.
Credit Ratings Our credit ratings are summarized below:
Fitch Moody’s
Standard &
Poor’s
Long-term:
Boeing/BCC A+ A2 A+
Short-term:
Boeing/BCC F1 P-1 A-1
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