Boeing 2013 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2013 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 148

  • 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
  • 145
  • 146
  • 147
  • 148

98
Accumulated Other Comprehensive Loss
Changes in Accumulated other comprehensive income/(loss) (AOCI) by component for the years ended
December 31, 2013, 2012 and 2011 were as follows:
Currency
Translation
Adjustments
Unrealized
Gains and
Losses on
Certain
Investments
Unrealized
Gains and
Losses on
Derivative
Instruments
Defined Benefit
Pension Plans
& Other
Postretirement
Benefits Total (1)
Balance at January 1, 2011 $232 ($6)$95 ($14,079) ($13,758)
Other comprehensive loss before
reclassifications (35) (2) (13) (3,721) (3,771)
Amounts reclassified from AOCI (16)1,045 (2) 1,029
Net current period Other comprehensive loss (35) (2) (29) (2,676) (2,742)
Balance at December 31, 2011 $197 ($8)$66 ($16,755) ($16,500)
Other comprehensive income/(loss) before
reclassifications 17 25 (2,290) (2,248)
Amounts reclassified from AOCI (5) 1,337 (2) 1,332
Net current period Other comprehensive
income/(loss) 17 20 (953) (916)
Balance at December 31, 2012 $214 ($8)$86 ($17,708) ($17,416)
Other comprehensive income/(loss) before
reclassifications (64) (75)6,093 5,954
Amounts reclassified from AOCI (17)1,585 (2) 1,568
Net current period Other comprehensive
income/(loss) (64) (92)7,678 7,522
Balance at December 31, 2013 $150 ($8)($6)($10,030) ($9,894)
(1) Net of tax.
(2) Primarily relates to amortization of actuarial gains/losses for the years ended December 31, 2013
2012 and 2011 totaling $1,516, $1,304 and $909 (net of tax of ($849), ($752) and ($523)) which is
included in the net periodic pension cost of which a portion is allocated to production as inventoried
costs. See Note 14.
Note 17 – Derivative Financial Instruments
Cash Flow Hedges
Our cash flow hedges include foreign currency forward contracts, foreign currency option contracts,
commodity swaps, and commodity purchase contracts. We use foreign currency forward and option
contracts to manage currency risk associated with certain transactions, specifically forecasted sales and
purchases made in foreign currencies. Our foreign currency contracts hedge forecasted transactions
principally occurring within five years in the future, with certain contracts hedging transactions through
2023. We use commodity derivatives, such as swaps and fixed-price purchase commitments to hedge
against potentially unfavorable price changes for items used in production. Our commodity contracts hedge
forecasted transactions through 2017.
Fair Value Hedges
Interest rate swaps under which we agree to pay variable rates of interest are designated as fair value
hedges of fixed-rate debt. The net change in fair value of the derivatives and the hedged items is reported
in Boeing Capital interest expense.