Boeing 2010 Annual Report Download - page 32

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The most significant items included in Unallocated items and eliminations are shown in the following
table:
(Dollars in millions)
Years ended December 31, 2010 2009 2008
Share-based plans $(136) $(189) $(149)
Deferred compensation (112) (158) 223
Pension 54 110 (208)
Postretirement (59) (93) (79)
Other unallocated items and eliminations (482) (264) (110)
Total $(735) $(594) $(323)
Share-based plans expense decreased in 2010 by $53 million primarily due to the expiration of the
ShareValue trust at June 30, 2010.
Deferred compensation expense decreased by $46 million in 2010 and increased by $381 million in
2009. The year over year changes in deferred compensation expense are primarily driven by changes
in our stock price and broad stock market conditions.
Other unallocated items and eliminations expense increased by $218 million in 2010 primarily due to
timing of intercompany expense allocations and elimination of profit on intercompany items as well as a
$55 million charitable contribution. The 2009 increase of $154 million was primarily due to timing of
intercompany expense allocations, elimination of profit on intercompany items and a more favorable
insurance adjustment.
Unallocated pension and other postretirement expense represents the difference between costs
recognized under Generally Accepted Accounting Principles in the United States of America (GAAP) in
the consolidated financial statements and federal cost accounting standards required to be utilized by
our business segments for U.S. government contracting purposes. We recorded net periodic benefit
cost related to pensions and other postretirement benefits of $1,864 million, $1,816 million and $1,132
million in 2010, 2009 and 2008, respectively. Not all net periodic benefit cost is recognized in earnings
in the period incurred because it is allocated to production as product costs and a portion remains in
inventory at the end of the reporting period. A portion of pension and other postretirement expense is
recorded in the business segments and the remainder is included in unallocated pension and other
postretirement expense. Earnings from operations included the following amounts allocated to
business segments and Other unallocated items and eliminations.
(Dollars in millions) Pension
Other Postretirement
Benefits
Years ended December 31, 2010 2009 2008 2010 2009 2008
Allocated to business segments $(1,155) $(989) $(488) $(421) $(522) $(428)
Other unallocated items and eliminations 54 110 (208) (59) (93) (79)
Total $(1,101) $(879) $(696) $(480) $(615) $(507)
20