Boeing 2014 Annual Report Download - page 90

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78
Financing Commitments
Financing commitments related to aircraft on order, including options and those proposed in sales
campaigns, totaled $16,723 and $17,987 as of December 31, 2014 and 2013. The estimated earliest
potential funding dates for these commitments as of December 31, 2014 are as follows:
Total
2015 $2,552
2016 3,710
2017 3,497
2018 2,305
2019 1,738
Thereafter 2,921
$16,723
As of December 31, 2014 all of these financing commitments related to customers we believe have less
than investment-grade credit. We have concluded that no reserve for future potential losses is required
for these financing commitments based upon the terms, such as collateralization and interest rates, under
which funding would be provided.
Standby Letters of Credit and Surety Bonds
We have entered into standby letters of credit and surety bonds with financial institutions primarily relating
to the guarantee of our future performance on certain contracts. Contingent liabilities on outstanding letters
of credit agreements and surety bonds aggregated approximately $3,985 and $4,376 as of December 31,
2014 and 2013.
Commitments to ULA
We and Lockheed Martin Corporation have each committed to provide ULA with up to $527 of additional
capital contributions in the event ULA does not have sufficient funds to make a required payment to us
under an inventory supply agreement. See Note 6.
C-17
In September 2013, we decided to end production of C-17 aircraft in late 2015. In April 2014, we announced
that we anticipate ending production approximately three months earlier based on our decision to produce
three fewer aircraft in 2015 than previously planned. As a result, during the first quarter of 2014, BDS
recorded $48 to write off inventory and accrue termination liabilities to suppliers. At December 31, 2014,
our backlog included international orders for three C-17 aircraft that are scheduled for delivery in 2015
and we have active sales campaigns for the remaining seven unsold aircraft. We are currently incurring
costs and have made commitments to suppliers related to these aircraft. We believe it is probable that we
will recover costs related to the unsold aircraft from international customer orders. Should orders for the
seven unsold aircraft not materialize or should we decide to discontinue production of unsold aircraft, we
could incur further charges to write-down inventory and/or record termination liabilities. At December 31,
2014, we had approximately $1,091 of capitalized precontract costs and $385 of potential termination
liabilities to suppliers associated with unsold aircraft.