Boeing 2009 Annual Report Download - page 92

aircraft upon the purchase of Sale Aircraft. The total contractual trade-in value was $427 and $1,045 as
of December 31, 2009 and 2008. We anticipate that a significant portion of these commitments will not
be exercised by customers.
The probability that trade-in commitments will be exercised is determined by using both quantitative
information from valuation sources and qualitative information from other sources. The probability of
exercise is continually assessed, taking into consideration the current economic environment. Trade-in
commitments, which can be terminated by mutual consent with the customer, may be exercised only
during the period specified in the agreement, and require advance notice by the customer. The
estimated fair value of trade-in aircraft related to probable contractual trade-in commitments was $34
as of December 31, 2009. Trade-in commitment agreements have expiration dates from 2010 through
2023.
Future Lease Commitments
As of December 31, 2009 and 2008, future lease commitments on aircraft and other commitments not
recorded on the Consolidated Statements of Financial Position totaled $159 and $197. These lease
commitments extend through 2020, and our intent is to recover these lease commitments through
sublease arrangements. As of December 31, 2009, the future lease commitments on aircraft for each
of the next five years were as follows: $16 in 2010, $16 in 2011, $16 in 2012, $16 in 2013, and $16 in
2014. As of December 31, 2009 and 2008, Other accrued liabilities included $14 and $32 attributable
to adverse commitments under these lease arrangements.
Financing Commitments
Financing commitments totaled $10,409 and $10,145 as of December 31, 2009 and 2008. We
anticipate that a significant portion of these commitments will not be exercised by the customers as we
continue to work with third party financiers to provide alternative financing to customers. However,
there can be no assurances that we will not be required to fund greater amounts than historically
required.
In connection with the formation of ULA, we and Lockheed Martin Corporation (Lockheed) each agreed
to extend a line of credit to ULA of up to $200 to support its working capital requirements during the
five-year period following December 1, 2006. ULA did not request any funds under the line of credit as
of December 31, 2009. We and Lockheed have also each committed to provide ULA with up to $122 of
additional capital contributions in the event ULA does not have sufficient funds to make a required
payment to us under an inventory supply agreement. See Note 7.
We have entered into standby letters of credit agreements and surety bonds with financial institutions
primarily relating to the guarantee of future performance on certain contracts. Contingent liabilities on
outstanding letters of credit agreements and surety bonds aggregated approximately $7,052 and
$5,763 as of December 31, 2009 and 2008.
C-17
At December 31, 2009, our backlog included 11 C-17 aircraft currently under contract with the U.S. Air
Force (USAF) as well as international orders for 7 C-17 aircraft. Backlog does not include 8 aircraft
funded in the Fiscal Year 2009 (FY09) supplemental defense spending bill and 10 aircraft funded in the
2010 defense appropriations bill. At December 31, 2009, inventory expenditures and potential
termination liabilities to suppliers for aircraft not included in backlog, primarily the 8 FY09 aircraft,
totaled approximately $375. Should additional orders not materialize, it is reasonably possible that we
will decide in 2010 to complete production of the C-17. We are still evaluating the full financial
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