Boeing 2012 Annual Report Download - page 112

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100
Other Risk
As of December 31, 2012, approximately 39% of our total workforce was represented by collective
bargaining agreements. Our contract with SPEEA, who represent 13% of our workforce, expired in October,
2012. SPEEA-represented employees continue to work under the terms of that contract. The parties
continue contract negotiations and on January 17, 2013, Boeing presented a contract offer to SPEEA.
Note 20 – Fair Value Measurements
The following table presents our assets and liabilities that are measured at fair value on a recurring basis
and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the
reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on
quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant
other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs.
December 31, 2012 December 31, 2011
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets
Money market funds $4,534 $4,534 $3,104 $3,104
Available-for-sale
investments 96$3 10 5 $5
Derivatives 178 $178 155 $155
Total assets $4,721 $4,540 $178 $3 $3,269 $3,109 $155 $5
Liabilities
Derivatives ($84) ($84) ($131) ($131)
Total liabilities ($84) ($84) ($131) ($131)
Money market funds and available-for-sale equity securities are valued using a market approach based
on the quoted market prices of identical instruments. Available-for-sale debt investments are primarily
valued using an income approach based on benchmark yields, reported trades and broker/dealer quotes.
Derivatives include foreign currency, commodity and interest rate contracts. Our foreign currency forward
contracts are valued using an income approach based on the present value of the forward rate less the
contract rate multiplied by the notional amount. Commodity derivatives are valued using an income
approach based on the present value of the commodity index prices less the contract rate multiplied by
the notional amount. The fair value of our interest rate swaps is derived from a discounted cash flow
analysis based on the terms of the contract and the interest rate curve.
Certain assets have been measured at fair value on a nonrecurring basis using significant unobservable
inputs (Level 3). The following table presents the nonrecurring losses recognized for the years ended
December 31, and the fair value and asset classification of the related assets as of the impairment date:
2012 2011
Fair
Value
Total
Losses
Fair
Value
Total
Losses
Equipment under operating leases & Assets held for
sale or re-lease $75 ($55) $115 ($64)
Property, plant and equipment 21 (21) 3(35)
Other assets, Acquired intangible assets, Cost
investment 20 (11)
Total $96 ($76) $138 ($110)