Boeing 2012 Annual Report Download - page 50

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38
Bankruptcies
In 2011, American Airlines, Inc. (American Airlines) filed for Chapter 11 bankruptcy protection. American
Airlines retains certain rights by operating under Chapter 11 bankruptcy protection, including the right to
reject executory contracts, such as aircraft leases. American Airlines has not rejected any of the leases
related to our aircraft. At December 31, 2012, American Airlines accounted for $524 million of our customer
financing portfolio, of which $399 million represents collateral for $231 million of non-recourse debt. We
believe that our customer financing receivables from American Airlines are sufficiently collateralized such
that we do not expect to incur losses related to those receivables as a result of the bankruptcy. We continue
to monitor the American Airlines bankruptcy for potential impacts on our business.
Restructurings and Restructuring Requests
From time to time, certain customers have requested a restructuring of their transactions with BCC. During
2012, BCC did not reach agreement on any restructuring requests that would have a material effect on
our earnings, cash flows and/or financial position.
Other Segment
(Dollars in millions)
Years ended December 31, 2012 2011 2010
Revenues $133 $150 $138
Earnings/(Loss) from operations (159) 66 (327)
Other segment operating losses for the year ended December 31, 2012 increased by $225 million
compared with 2011 primarily due to a $241 million reduction in the allowance for losses on AirTran
receivables in 2011. Lower environmental expense of $82 million in 2012 compared with 2011 was largely
offset by higher costs related to BCC guarantees and increases in other costs.
Other segment operating earnings for the year ended December 31, 2011 increased by $393 million
compared with 2010 primarily due to a $241 million reduction in the allowance for losses on AirTran
receivables and $124 million of lower impairment charges related to our customer financing portfolio in
2011.