Boeing 2013 Annual Report Download - page 86
Download and view the complete annual report
Please find page 86 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.-
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
 |
 |
74
The change in the allowance for losses on financing receivables for the years ended December 31, 2013,
2012 and 2011, consisted of the following:
2013 2012 2011
Beginning balance - January 1 ($60) ($70) ($353)
Customer financing valuation benefit 11 10 269
Write-offs 14
Ending balance - December 31 ($49) ($60) ($70)
Collectively evaluated for impairment ($49) ($60) ($70)
The adequacy of the allowance for losses is assessed quarterly. Three primary factors influencing the level
of our allowance for losses on customer financing receivables are customer credit ratings, default rates
and collateral values. We assign internal credit ratings for all customers and determine the creditworthiness
of each customer based upon publicly available information and information obtained directly from our
customers. Our rating categories are comparable to those used by the major credit rating agencies. The
customer financing valuation benefit recorded in 2011 was primarily driven by changes in the internal credit
rating categories assigned to our receivable balances from AirTran Holdings, LLC.
Our financing receivable balances at December 31 by internal credit rating category are shown below:
Rating categories 2013 2012
BBB $1,091 $1,201
BB 58 63
B585 51
CCC 457 511
D 524
Other 95 92
Total carrying value of financing receivables $2,286 $2,442
At December 31, 2013, our allowance primarily related to receivables with ratings of CCC and we applied
default rates that averaged 46% to the exposure associated with those receivables.
In 2011, American Airlines, Inc. (American Airlines) filed for Chapter 11 bankruptcy protection. On December
9, 2013, American Airlines emerged from bankruptcy. Upon emergence from bankruptcy, the parent of
American Airlines merged with US Airways Group, Inc., the parent of US Airways, to form American Airlines
Group Inc., and American Airlines assumed all of the BCC financing agreements and underlying leases.