Boeing 2010 Annual Report Download - page 103

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The following tables present a reconciliation of Level 3 assets held during the year ended
December 31, 2010 and 2009. Beginning for the year ended December 31, 2010, transfers into and
out of Level 3 are treated as beginning of year values.
January 1,
2010
Balance
Net
Realized
and Unrealized
Gains/(Losses)
Net
Purchases,
Issuances and
Settlements
Net
Transfers
Into/(Out of)
Level 3
December 31,
2010
Balance
Fixed income securities:
Corporate $5 $(1) $4
Mortgage backed and
asset backed 23 $ (1) 15 $(4) 33
Private equity 2,291 379 (44) 2,626
Real estate and real assets 1,337 157 324 1,818
Global strategies (1) $ 70 69
Hedge funds 1,011 92 $ 815 1,918
Total $4,667 $626 $1,179 $(4) $6,468
For the year ended December 31, 2010, the change in unrealized gain/(loss) for Level 3 assets still
held at December 31, 2010 were $1 for Mortgage backed and asset backed securities, $397 for Private
equity, $136 for Real estate and real assets, $(1) for Global Strategies and $92 for Hedge funds.
January 1,
2009
Balance
Net
Realized
and Unrealized
Gains/(Losses)
Net
Purchases,
Issuances and
Settlements
Net
Transfers
Into/(Out of)
Level 3
December 31,
2009
Balance
Fixed income securities:
Corporate $ 9 $ (4) $ 5
Mortgage backed
and asset backed 49 $ 1 (32) $5 23
Private equity 2,020 142 129 2,291
Real estate and real
assets 1,629 (505) 213 1,337
Hedge funds 885 126 1,011
Total $4,592 $(236) $306 $5 $4,667
OPB Plan Assets The majority of OPB plan assets are invested in a balanced index fund which is
comprised of approximately 60% equities and 40% debt securities. The index fund is valued using a
market approach based on the quoted market price of an identical instrument (Level 1). The expected
rate of return on these assets does not have a material effect on the net periodic benefit cost.
Cash Flows
Contributions Required pension contributions under the Employee Retirement Income Security Act
(ERISA) as well as rules governing funding of our non-U.S. pension plans, are not expected to be
material in 2011. In 2011 we expect to make discretionary contributions to our plans of approximately
$500. We expect that if interest rates remain at their current levels, discount rates for ERISA
determinations will likely decline in future years because of retrospective averaging, and as a result,
contributions in future years are expected to increase. We expect to contribute approximately $15 to
our OPB plans in 2011.
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