Boeing 2011 Annual Report Download - page 51

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recorded balance of debt was $12,371 million and $12,421 million, of which $2,353 million and $948
million were classified as short-term. This includes $3,400 million and $3,446 million of debt recorded
at BCC, of which $879 million and $801 million were classified as short-term.
In 2011 and 2010, we had 350,778 and 494,939 shares transferred to us from employees for tax
withholding and did not repurchase any shares through our open market share repurchase program.
During 2009, cash used in our open market share repurchase program totaled $50 million.
Capital Resources We have substantial borrowing capacity. Any future borrowings may affect our
credit ratings and are subject to various debt covenants as described below. We and BCC have
commercial paper programs that continue to serve as significant potential sources of short-term
liquidity. Throughout 2011 and at December 31, 2011, neither we nor BCC had any commercial paper
borrowings outstanding. Currently, we have $4,600 million ($1,500 million exclusively available for
BCC) of unused borrowing on revolving credit line agreements. We anticipate that these credit lines will
primarily serve as backup liquidity to support possible commercial paper borrowings.
Financing commitments totaled $15,866 million and $9,865 million as of December 31, 2011 and
December 31, 2010. We anticipate that we will not be required to fund a significant portion of our
financing commitments as we continue to work with third party financiers to provide alternative
financing to customers. Historically, we have not been required to fund significant amounts of
outstanding commitments. However, there can be no assurances that we will not be required to fund
greater amounts than historically required.
In the event we require additional funding to support strategic business opportunities, our commercial
aircraft financing commitments, unfavorable resolution of litigation or other loss contingencies, or other
business requirements, we expect to meet increased funding requirements by issuing commercial
paper or term debt. We believe our ability to access external capital resources should be sufficient to
satisfy existing short-term and long-term commitments and plans, and also to provide adequate
financial flexibility to take advantage of potential strategic business opportunities should they arise
within the next year. However, there can be no assurance of the cost or availability of future
borrowings, if any, under our commercial paper program, in the debt markets or our credit facilities.
At December 31, 2011 and 2010, our pension plans were $16,600 million and $9,854 million
underfunded as measured under GAAP. On an ERISA basis our plans were approximately 99%
funded at December 31, 2011 with minimal required contributions in 2012. We expect to make
discretionary contributions to our plans of approximately $1,500 million in 2012. We may be required to
make higher contributions to our pension plans in future years.
As of December 31, 2011, we were in compliance with the covenants for our debt and credit facilities.
The most restrictive covenants include a limitation on mortgage debt and sale and leaseback
transactions as a percentage of consolidated net tangible assets (as defined in the credit agreements),
and a limitation on consolidated debt as a percentage of total capital (as defined). When considering
debt covenants, we continue to have substantial borrowing capacity.
39