Boeing 2008 Annual Report Download - page 93

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which resulted in additional contributions from both parties with Boeing agreeing to contribute an
additional $97. Our additional contribution liability will be offset by future payments from ULA under the
Inventory Supply Agreement. See Note 12.
The Sea Launch venture, in which we are a 40% partner with RSC Energia of Russia (25%), Aker ASA
of Norway (20%), PO Yuzhmash (10%) and SDO Yuzhnoye (5%) of the Ukraine, provides ocean-
based launch services to commercial satellite customers. The venture conducted five, zero and five
successful launches for the years ended December 31, 2008, 2007, and 2006, respectively. We have
financial exposure with respect to the venture, which relates to guarantees provided by us to certain
Sea Launch creditors and financial exposure related to advances and other assets reflected in the
consolidated financial statements.
We suspended recording equity losses after writing our investment in and direct loans to Sea Launch
down to zero in 2001 and accruing our obligation for third-party guarantees on Sea Launch
indebtedness. We are not obligated to provide any further financial support to the Sea Launch venture.
However, in the event that we do extend additional financial support to Sea Launch in the future, we
will recognize suspended losses as appropriate. In addition, we continue to look at alternative capital
structures for the venture.
Note 11 – Liabilities, Commitments and Contingencies
Accounts Payable and Other Liabilities
Accounts payable and other liabilities at December 31 consisted of the following:
2008 2007
Accounts payable $ 5,871 $ 5,714
Accrued compensation and employee benefit costs 4,479 4,996
Environmental 731 679
Product warranties 959 962
Forward loss recognition (a) 1,458 607
Other 4,089 3,718
Total $17,587 $16,676
(a) Forward loss recognition relates primarily to 747 and Airborne Early Warning and Control
(AEW&C) in 2008 and AEW&C in 2007.
Payments associated with these liabilities may occur in periods significantly beyond the next twelve
months. Accounts payable included $157 and $265 at December 31, 2008 and 2007, attributable to
checks written but not yet cleared by the bank.
79