Boeing 2008 Annual Report Download - page 99

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been extended on behalf of original lessees or debtors with less than investment-grade credit. Our
commercial aircraft credit-related guarantees are collateralized by the underlying commercial aircraft
and certain other assets. Current outstanding credit guarantees expire within the next 12 years.
Other Indemnifications In conjunction with our sales of the Electron Dynamic Devices, Inc. and
Rocketdyne Propulsion and Power businesses and the sale of our Commercial Airplanes facilities in
Wichita, Kansas and Tulsa and McAlester, Oklahoma in 2005, we provided indemnifications to the
buyers relating to pre-closing environmental contamination and certain other items. The terms of the
indemnifications are indefinite. As it is impossible to assess whether there will be damages in the future
or the amounts thereof (if any), we cannot estimate the maximum potential amount of future payments
under these guarantees. Therefore, no liability has been recorded.
Industrial Revenue Bonds
Industrial Revenue Bonds (IRBs) issued by the City of Wichita are used to finance the purchase and/or
construction of real and personal property at our Wichita site. Tax benefits associated with IRBs include a
ten-year property tax abatement and a sales tax exemption from the Kansas Department of Revenue.
We record the property on our Consolidated Statements of Financial Position, along with a capital lease
obligation to repay the proceeds of the IRB. We have also purchased the IRBs and therefore are the
bondholders as well as the borrower/lessee of the property purchased with the IRB proceeds.
The capital lease obligation and IRB asset are recorded net in the Consolidated Statements of
Financial Position pursuant to FIN 39, Offsetting of Amounts Related to Certain Contracts.Asof
December 31, 2008 and 2007, the assets and liabilities associated with the City of Wichita IRBs were
$887 and $1,217.
Note 13 – Debt
Total debt interest incurred, including amounts capitalized, was $520, $591, and $657 for the years
ended December 31, 2008, 2007 and 2006, 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 $493, $616, and $657 for the years
ended December 31, 2008, 2007 and 2006, respectively.
We have $3,000 currently available under credit line agreements. We have given BCC exclusive
access to $1,500 under these arrangements. We continue to be in full compliance with all covenants
contained in our debt or credit facility agreements, including those at BCC.
On October 30, 2008, BCC filed a public shelf registration for up to $5,000 of debt securities with the
Securities and Exchange Commission (SEC) that became effective on November 12, 2008. The entire
amount remains available for potential debt issuance. The availability of funding under BCC’s shelf
registration is dependent on investor demand and market conditions.
Short-term debt and current portion of long-term debt at December 31, consisted of the following:
2008 2007
Consolidated
Total
BCC
Only
Consolidated
Total
BCC
Only
Unsecured debt securities $514 $514 $685 $685
Capital lease obligations 99 17 16
Non-recourse debt and notes 24 5 31 5
Other notes 13 29
$560 $528 $762 $706
85