Boeing 2014 Annual Report Download - page 53

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Purchase Obligations Recorded on the Consolidated Statements of Financial Position Purchase
obligations recorded on the Consolidated Statements of Financial Position primarily include accounts
payable and certain other current and long-term liabilities including accrued compensation.
Industrial Participation Agreements We have entered into various industrial participation agreements
with certain customers outside of the U.S. to facilitate economic flow back and/or technology transfer to
their businesses or government agencies as the result of their procurement of goods and/or services from
us. These commitments may be satisfied by our placement of direct work or vendor orders for supplies,
opportunities to bid on supply contracts, transfer of technology or other forms of assistance. However, in
certain cases, our commitments may be satisfied through other parties (such as our vendors) who purchase
supplies from our non-U.S. customers. We do not commit to industrial participation agreements unless a
contract for sale of our products or services is signed. In certain cases, penalties could be imposed if we
do not meet our industrial participation commitments. During 2014, we incurred no such penalties. As of
December 31, 2014, we have outstanding industrial participation agreements totaling $17.8 billion that
extend through 2030. Purchase order commitments associated with industrial participation agreements
are included in purchase obligations in the table above. To be eligible for such a purchase order commitment
from us, a foreign supplier must have sufficient capability to meet our requirements and must be competitive
in cost, quality and schedule.
Income Tax Obligations As of December 31, 2014, our net liability for income taxes payable, including
uncertain tax positions, was $406 million. We are not able to reasonably estimate the timing of future cash
flows related to uncertain tax positions. Our income tax matters are excluded from the table above. See
Note 4 to our Consolidated Financial Statements.
Commercial Commitments
The following table summarizes our commercial commitments outstanding as of December 31, 2014.
(Dollars in millions)
Total Amounts
Committed/
Maximum
Amount of Loss
Less
than
1 year
1-3
years
4-5
years
After 5
years
Standby letters of credit and surety bonds $3,985 $2,277 $1,658 $1 $49
Commercial aircraft financing commitments 16,723 2,552 7,207 4,043 2,921
Total commercial commitments $20,708 $4,829 $8,865 $4,044 $2,970
Commercial aircraft financing commitments include commitments to provide financing related to aircraft
on order, under option for deliveries or proposed as part of sales campaigns based on estimated earliest
potential funding dates. Based on historical experience, we anticipate that we will not be required to fund
a significant portion of our financing commitments. However, there can be no assurances that we will not
be required to fund greater amounts than historically required. See Note 11 to our Consolidated Financial
Statements.
Contingent Obligations
We have significant contingent obligations that arise in the ordinary course of business, which include the
following:
Legal Various legal proceedings, claims and investigations are pending against us. Legal contingencies
are discussed in Note 20 to our Consolidated Financial Statements.