Boeing 2009 Annual Report Download - page 91

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Environmental
The following table summarizes environmental matter activity during the years ended December 31,
2009 and 2008.
Environmental
Liabilities
2009 2008
Beginning balance – January 1 $731 $ 679
Reductions for payments made (89) (106)
Changes in estimates 64 158
Ending balance – December 31 $706 $ 731
The liabilities recorded represent our best estimate of costs expected to be incurred to remediate,
operate, and maintain sites over periods of up to 30 years. It is reasonably possible that we may incur
additional charges because of regulatory complexities, higher than expected costs and the risk of
unidentified contamination. As part of our estimating process, we develop a range of reasonably
possible alternate scenarios which include highest cost estimates to remediate identified contamination
at all sites based on our experience and existing laws and regulations. At December 31, 2009 and
2008 our reasonably possible highest cost estimate for all remediation sites exceeded our recorded
liabilities by $948 and $1,206.
Product Warranties
The following table summarizes product warranty activity recorded for the years ended December 31,
2009 and 2008.
Product Warranty
Liabilities
2009 2008
Beginning balance – January 1 $ 959 $ 962
Additions for current year deliveries 167 140
Reductions for payments made (237) (253)
Changes in estimates 110 110
Ending balance – December 31 $ 999 $ 959
Discontinued Operations
As part of the 2004 purchase and sale agreement with General Electric Capital Corporation related to
the sale of Boeing Capital Corporation’s (BCC) Commercial Financial Services business, BCC is
involved in a loss sharing arrangement for losses on transferred portfolio assets, such as asset sales,
provisions for loss or asset impairment charges offset by gains from asset sales. At December 31,
2009 and 2008, our maximum future cash exposure to losses associated with the loss sharing
arrangement was $234 and $232. As of December 31, 2009 and 2008, the accrued liability under the
loss sharing arrangement was $77 and $39.
Commercial Aircraft Commitments
In conjunction with signing definitive agreements for the sale of new aircraft, we have entered into
specified-price trade-in commitments with certain customers that give them the right to trade in used
79