Boeing 2012 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2012 Boeing annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

87
Amounts recognized in Accumulated other comprehensive loss at December 31 were as follows:
Pension
Other
Postretirement
Benefits
2012 2011 2012 2011
Net actuarial loss $26,387 $24,448 $1,651 $1,885
Prior service cost/(credit) 904 1,118 (799) (1,008)
Total recognized in Accumulated other comprehensive loss $27,291 $25,566 $852 $877
The estimated amount that will be amortized from Accumulated other comprehensive loss into net periodic
benefit cost during the year ended December 31, 2013 is as follows:
Pensions
Other
Postretirement
Benefits
Recognized net actuarial loss $2,272 $102
Amortization of prior service costs/(credits) 195 (180)
Total $2,467 ($78)
The ABO for all pension plans was $69,312 and $61,902 at December 31, 2012 and 2011. Key information
for our plans with ABO in excess of plan assets as of December 31 is as follows:
2012 2011
Projected benefit obligation $75,851 $67,418
Accumulated benefit obligation 69,272 61,675
Fair value of plan assets 56,129 50,820
Assumptions
The following assumptions, which are the weighted average for all plans, are used to calculate the benefit
obligation at December 31 of each year and the net periodic benefit cost for the subsequent year.
December 31, 2012 2011 2010
Discount rate:
Pension 3.80% 4.40% 5.30%
Other postretirement benefits 3.30% 4.00% 4.90%
Expected return on plan assets 7.50% 7.75% 7.75%
Rate of compensation increase 4.00% 3.90% 5.20%
The discount rate for each plan is determined based on the plans’ expected future benefit payments using
a yield curve developed from high quality bonds that are rated as Aa or better as of the measurement date
by at least half of the four rating agencies utilized. The yield curve is fitted to yields developed from bonds
at various maturity points. Bonds with the ten percent highest and the ten percent lowest yields are omitted.
A portfolio of about 400 bonds is used to construct the yield curve. Since corporate bond yields are generally
not available at maturities beyond 30 years, it is assumed that spot rates will remain level beyond that 30-
year point. The present value of each plan’s benefits is calculated by applying the spot/discount rates to
projected benefit cash flows. All bonds are U.S. issues, with a minimum outstanding of $50.