Boeing 2013 Annual Report Download - page 114

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102
Fair Value Disclosures
The fair values and related carrying values of financial instruments that are not required to be remeasured
at fair value on the Consolidated Statements of Financial Position at December 31 were as follows:
December 31, 2013
Carrying
Amount
Total Fair
Value Level 1 Level 2 Level 3
Assets
Accounts receivable, net $6,546 $6,525 $6,525
Notes receivable, net 572 622 622
Liabilities
Debt, excluding capital lease
obligations (9,483) (10,897) (10,897)
December 31, 2012
Carrying
Amount
Total Fair
Value Level 1 Level 2 Level 3
Assets
Accounts receivable, net $5,608 $5,642 $5,642
Notes receivable, net 571 632 632
Liabilities
Debt, excluding capital lease
obligations (10,231) (12,269) (12,221) ($48)
The fair value of Accounts receivable is based on current market rates for loans of the same risk and
maturities. The fair values of our variable rate notes receivable that reprice frequently approximate their
carrying amounts. The fair values of fixed rate notes receivable are estimated with discounted cash flow
analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit
quality. The fair value of our debt that is traded in the secondary market is classified as Level 2 and is
based on current market yields. For our debt that is not traded in the secondary market, the fair value is
classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted
cash flows. The fair value of our debt classified as Level 3 is based on the median of the underlying
collateral value as described above. With regard to other financial instruments with off-balance sheet risk,
it is not practicable to estimate the fair value of our indemnifications and financing commitments because
the amount and timing of those arrangements are uncertain. Items not included in the above disclosures
include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds,
Accounts payable and long-term payables. The carrying values of those items, as reflected in the
Consolidated Statements of Financial Position, approximate their fair value at December 31, 2013 and
2012. The fair value of assets and liabilities whose carrying value approximates fair value is determined
using Level 2 inputs, with the exception of cash (Level 1).