Boeing 2009 Annual Report Download - page 113

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Note 18 – Significant Group Concentrations of Risk
Credit Risk
Financial instruments involving potential credit risk are predominantly with commercial aircraft
customers and the U.S. government. Of the $11,962 in Gross Accounts receivable and Gross
Customer financing included in the Consolidated Statements of Financial Position as of December 31,
2009, $6,154 related to commercial aircraft customers ($462 of Accounts receivable and $5,692 of
Customer financing) and $3,119 related to the U.S. government. Of the $6,136 in Gross Customer
financing, $5,568 related to customers we believe have less than investment-grade credit. AirTran
Airways, American Airlines, Hawaiian Airlines and Continental Airlines were associated with 25%, 15%,
7% and 7%, respectively, of our financing portfolio. Financing for aircraft is collateralized by security in
the related asset. As of December 31, 2009, there was $10,409 of financing commitments related to
aircraft on order including options and proposed as part of sales campaigns described in Note 11, of
which $9,266 related to customers we believe have less than investment-grade credit.
Fixed-Price Development Programs
Fixed-price development work is inherently uncertain and subject to significant variability in estimates
of the cost and time required to complete the work. Significant BDS fixed-price development contracts
include AEW&C, International KC-767 Tankers and commercial and military satellites. Significant
Commercial Airplanes development programs include the 787 and 747-8. The operational and
technical complexities of these programs create financial risk, which could trigger termination
provisions, order cancellations or other financially significant exposure. Changes to cost and revenue
estimates could also result in lower margins or a material charge if the program has or is determined to
have a reach-forward loss.
Other Risk
As of December 31, 2009, approximately 37% of our total workforce was represented by collective
bargaining agreements and approximately 3% of our total workforce was represented by agreements
expiring during 2010.
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