Boeing 2013 Annual Report Download - page 52

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40
At December 31, 2013 and 2012, our pension plans were $10.5 billion and $19.7 billion underfunded as
measured under GAAP. On an Employee Retirement Income Security Act (ERISA) basis our plans are
more than 100% funded at December 31, 2013 with minimal required contributions in 2014. We expect to
make discretionary contributions to our plans of approximately $750 million in 2014. We may be required
to make higher contributions to our pension plans in future years.
At December 31, 2013, we were in compliance with the covenants for our debt and credit facilities. The
most restrictive covenants include a limitation on mortgage debt and sale and leaseback transactions as
a percentage of consolidated net tangible assets (as defined in the credit agreements), and a limitation
on consolidated debt as a percentage of total capital (as defined). When considering debt covenants, we
continue to have substantial borrowing capacity.
Contractual Obligations
The following table summarizes our known obligations to make future payments pursuant to certain
contracts as of December 31, 2013, and the estimated timing thereof.
(Dollars in millions) Total
Less
than 1
year
1-3
years
3-5
years
After 5
years
Long-term debt (including current portion) $9,517 $1,490 $1,893 $682 $5,452
Interest on debt(1) 6,484 502 893 813 4,276
Pension and other postretirement cash
requirements 15,329 577 3,005 6,803 4,944
Capital lease obligations 156 72 70 14
Operating lease obligations 1,414 228 319 217 650
Purchase obligations not recorded on the
Consolidated Statements of Financial Position 123,904 46,938 41,985 19,344 15,637
Purchase obligations recorded on the Consolidated
Statements of Financial Position 15,849 15,191 658
Total contractual obligations $172,653 $64,998 $48,823 $27,873 $30,959
(1) Includes interest on variable rate debt calculated based on interest rates at December 31, 2013.
Variable rate debt was less than 2% of our total debt at December 31, 2013.
Pension and Other Postretirement Benefits Pension cash requirements are based on an estimate of
our minimum funding requirements, pursuant to ERISA regulations, although we may make additional
discretionary contributions. Estimates of other postretirement benefits are based on both our estimated
future benefit payments and the estimated contributions to plans that are funded through trusts.
Purchase Obligations Purchase obligations represent contractual agreements to purchase goods or
services that are legally binding; specify a fixed, minimum or range of quantities; specify a fixed, minimum,
variable, or indexed price provision; and specify approximate timing of the transaction. Purchase obligations
include amounts recorded as well as amounts that are not recorded on the Consolidated Statements of
Financial Position. Approximately 4% of the purchase obligations disclosed above are reimbursable to us
pursuant to cost-type government contracts.