Boeing 2012 Annual Report Download - page 108

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96
Other Compensation Arrangements
Performance Awards
Performance Awards are cash units that pay out based on the achievement of long-term financial goals
at the end of a three-year period. Each unit has an initial value of $100 dollars per unit. The amount payable
at the end of the three-year performance period may be anywhere from $0 to $200 dollars per unit,
depending on the Company’s performance against plan for a three-year period. The Compensation
Committee has the discretion to pay these awards in cash, stock, or a combination of both after the three-
year performance period. Compensation expense, based on the estimated performance payout, is
recognized ratably over the performance period.
During 2012, 2011 and 2010, we granted Performance Awards to our executives with the payout based
on the achievement of financial goals for each three-year period following the grant date. The minimum
payout amount is $0 and the maximum amount we could be required to pay out for the 2012, 2011 and
2010 Performance Awards is $270, $253 and $241, respectively. The 2010 grant is expected to be paid
out in cash in March 2013.
Deferred Compensation
The Company has a deferred compensation plan which permits executives to defer receipt of a portion of
their salary, bonus, and certain other incentive awards. Participants can diversify deferred compensation
among 23 investment funds including a Boeing stock unit account.
Total expense related to deferred compensation was $75, $59 and $112 in 2012, 2011 and 2010,
respectively. As of December 31, 2012 and 2011, the deferred compensation liability which is being marked
to market was $1,104 and $1,093.
ShareValue Trust
The ShareValue Trust, established July 1, 1996, was a 14-year irrevocable trust that held shares of our
common stock, received dividends, and distributed to employees the appreciation in value above a 3% per
annum threshold rate of return at the end of each period. The trust was terminated effective July 1, 2010
with the 29,948,920 undistributed shares returned to the Company.
Note 17 – Shareholders’ Equity
On October 29, 2007, the Board approved the repurchase of up to $7,000 of common stock (the Program).
Unless terminated earlier by a Board resolution, the Program will expire when we have used all authorized
funds for repurchase. At December 31, 2012, $3,610 in shares may still be purchased under the Program.
As of December 31, 2012 and 2011, there were 1,200,000,000 shares of common stock and 20,000,000
shares of preferred stock authorized. No preferred stock has been issued.