Boeing 2013 Annual Report Download - page 112

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100
We have derivative instruments with credit-risk-related contingent features. For foreign exchange contracts
with original maturities of at least five years, our derivative counterparties could require settlement if we
default on our five-year credit facility. For commodity contracts, our counterparties could require collateral
posted in an amount determined by our credit ratings. The fair value of foreign exchange and commodity
contracts that have credit-risk-related contingent features that are in a net liability position at December 31,
2013 was $7. At December 31, 2013, there was no collateral posted related to our derivatives.
Note 18 – Significant Group Concentrations of Risk
Credit Risk
Financial instruments involving potential credit risk are predominantly with commercial aircraft customers
and the U.S. government. Of the $10,670 in gross accounts receivable and gross customer financing
included in the Consolidated Statements of Financial Position as of December 31, 2013, $4,870 related
predominantly to commercial aircraft customers ($924 of accounts receivable and $3,946 of customer
financing) and $3,604 related to the U.S. government.
Of the $4,020 in gross customer financing, $2,720 related to customers we believe have less than
investment-grade credit including American Airlines, United/Continental Airlines, and Hawaiian Airlines
who were associated with 11%, 9% and 8%, respectively, of our financing portfolio. Financing for aircraft
is collateralized by security in the related asset and in some instances security in other assets as well.
Other Risk
As of December 31, 2013, approximately 38% of our total workforce was represented by collective
bargaining agreements and approximately 1% of our total workforce was represented by agreements
expiring in 2014.
Note 19 – 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, 2013 December 31, 2012
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets
Money market funds $3,783 $3,783 $4,534 $4,534
Available-for-sale
investments 86$2 96 $3
Derivatives 86 $86 178 $178
Total assets $3,877 $3,789 $86 $2 $4,721 $4,540 $178 $3
Liabilities
Derivatives ($79) ($79) ($84) ($84)
Total liabilities ($79) ($79) ($84) ($84)
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.