Boeing 2008 Annual Report Download - page 59

Disclosures about Contractual Obligations and Commercial Commitments
The following table summarizes our known obligations to make future payments pursuant to certain
contracts as of December 31, 2008, and the estimated timing thereof.
Contractual Obligations
(Dollars in millions) Total
Less than
1 year
1-3
years
3-5
years
After 5
years
Long-term debt (including current portion) $ 7,432 $ 551 $ 1,533 $ 2,495 $ 2,853
Interest on debt* 5,055 453 795 532 3,275
Pension and other post retirement cash
requirements 11,222 692 1,486 5,139 3,905
Capital lease obligations 81 10 20 22 29
Operating lease obligations 1,171 219 315 148 489
Purchase obligations not recorded on statement
of financial position 114,659 33,960 42,967 27,468 10,264
Purchase obligations recorded on statement of
financial position 11,338 10,512 488 323 15
Total contractual obligations $150,958 $46,397 $47,604 $36,127 $20,830
* Includes interest on variable rate debt calculated based on interest rates at December 31, 2008.
Variable rate debt was approximately 3% of our total debt at December 31, 2008.
Income Tax Obligations As of December 31, 2008, our total liability for income taxes payable,
including uncertain tax positions, was $1,195 million, of which $41 million we expect to pay in the next
twelve months. We are not able to reasonably estimate the timing of future cash flows related to the
remaining $1,154 million. Our income tax obligations are excluded from the table above. See Note 4.
Pension and Other Postretirement Benefits Pension cash requirements are based on an estimate of
our minimum funding requirements, pursuant to ERISA regulations, although we may make additional
discretionary contributions. Estimates of other postretirement benefits are based on both our estimated
future benefit payments and the estimated contributions to a single plan that is funded through a trust.
Purchase Obligations Purchase obligations represent contractual agreements to purchase goods or
services that are legally binding; specify a fixed, minimum or range of quantities; specify a fixed,
minimum, variable, or indexed price provision; and specify approximate timing of the transaction. In
addition, the agreements are not cancelable without substantial penalty. Purchase obligations include
amounts recorded as well as amounts that are not recorded on the statements of financial position.
Approximately 10% of the purchase obligations disclosed above are reimbursable to us pursuant to
cost-type government contracts.
Purchase Obligations Not Recorded on the Consolidated Statement of Financial Position
Production related purchase obligations not recorded on the Consolidated Statement of Financial
Position include agreements for production goods, tooling costs, electricity and natural gas contracts,
property, plant and equipment, and other miscellaneous production related obligations. The most
significant obligation relates to inventory procurement contracts. We have entered into certain
significant inventory procurement contracts that specify determinable prices and quantities, and long-
term delivery timeframes. In addition, we purchase raw materials on behalf of our suppliers. These
agreements require suppliers and vendors to be prepared to build and deliver items in sufficient time to
meet our production schedules. The need for such arrangements with suppliers and vendors arises
from the extended production planning horizon for many of our products. A significant portion of these
inventory commitments is supported by firm contracts and/or has historically resulted in settlement
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