Boeing 2013 Annual Report Download - page 83

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71
Note 5 – Accounts Receivable
Accounts receivable at December 31 consisted of the following:
2013 2012
U.S. government contracts $3,604 $2,788
Defense, Space & Security customers (1) 1,073 1,196
Commercial Airplanes customers 1,072 903
Reinsurance receivables 525 509
Other 376 294
Less valuation allowance (104) (82)
Total $6,546 $5,608
(1) Excludes U.S. government contracts
The following table summarizes our accounts receivable under long-term contracts that were unbillable
or related to outstanding claims as of December 31:
Unbillable Claims
2013 2012 2013 2012
Current $1,550 $1,316 $3 $26
Expected to be collected after one year 1,020 730 61 63
Total $2,570 $2,046 $64 $89
Under contract accounting unbillable receivables on long-term contracts arise when the sales or revenues
based on performance attainment, though appropriately recognized, cannot be billed yet under terms of
the contract as of the balance sheet date. Any adjustment for the credit quality of unbillable receivables,
if required, would be recorded as a direct reduction of revenue. Factors considered in assessing the
collectability of unbillable receivables include, but are not limited to, a customer’s extended delinquency,
requests for restructuring and filings for bankruptcy. Unbillable receivables related to commercial customers
expected to be collected after one year were $179 and $230 at December 31, 2013 and 2012. Accounts
receivable related to claims are items that we believe are earned, but are subject to uncertainty concerning
their determination or ultimate realization.
Accounts receivable as of December 31, 2013, included $112 of unbillable receivables on a long-term
contract with LightSquared, LLC (LightSquared) related to the construction of two commercial satellites.
One of the satellites has been delivered, and the other is substantially complete but remains in Boeing’s
possession. On May 14, 2012, LightSquared filed for Chapter 11 bankruptcy protection. We believe that
our rights in the second satellite and related ground-segment assets are sufficient to protect the value of
our receivables in the event LightSquared fails to make payments as contractually required or rejects its
contract with us. Given the uncertainties inherent in bankruptcy proceedings, it is reasonably possible that
we could incur losses related to these receivables in connection with the LightSquared bankruptcy.
Accounts receivable, other than those described above, expected to be collected after one year are not
material.