Boeing 2015 Annual Report Download - page 116

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100
Accumulated Other Comprehensive Loss
Changes in Accumulated other comprehensive income/(loss) (AOCI) by component for the years ended
December 31, 2015, 2014 and 2013 were as follows:
Currency
Translation
Adjustments
Unrealized
Gains and
Losses on
Certain
Investments
Unrealized
Gains and
Losses on
Derivative
Instruments
Defined Benefit
Pension Plans
& Other
Postretirement
Benefits Total (1)
Balance at January 1, 2013 $214 ($8)$86 ($17,708) ($17,416)
Other comprehensive income/(loss) before
reclassifications (64) (75)6,093 5,954
Amounts reclassified from AOCI (17)1,585 (2) 1,568
Net current period Other comprehensive loss (64) (92)7,678 7,522
Balance at December 31, 2013 $150 ($8)($6)($10,030) ($9,894)
Other comprehensive income/(loss) before
reclassifications (97) (137) (4,644) (4,878)
Amounts reclassified from AOCI 7 862 (2) 869
Net current period Other comprehensive
income/(loss) (97) (130) (3,782) (4,009)
Balance at December 31, 2014 $53 ($8)($136)($13,812) ($13,903)
Other comprehensive income/(loss) before
reclassifications (92) $8 (140)173 (51)
Amounts reclassified from AOCI 79 1,127 (2) 1,206
Net current period Other comprehensive
income/(loss) (92) 8(61)1,300 1,155
Balance at December 31, 2015 ($39)($197)($12,512) ($12,748)
(1) Net of tax.
(2) Primarily relates to amortization of actuarial losses for the years ended December 31, 2015, 2014,
and 2013 totaling $1,038, $661, and $1,516 (net of tax of ($570), ($367), and ($849)), respectively.
These are included in the net periodic pension cost of which a portion is allocated to production as
inventoried costs. See Note 14.
Note 17 – Derivative Financial Instruments
Cash Flow Hedges
Our cash flow hedges include foreign currency forward contracts, commodity swaps, and commodity
purchase contracts. We use foreign currency forward contracts to manage currency risk associated with
certain transactions, specifically forecasted sales and purchases made in foreign currencies. Our foreign
currency contracts hedge forecasted transactions through 2021. We use commodity derivatives, such as
swaps and fixed-price purchase commitments to hedge against potentially unfavorable price changes for
items used in production. Our commodity contracts hedge forecasted transactions through 2020.
Fair Value Hedges
Interest rate swaps under which we agree to pay variable rates of interest are designated as fair value
hedges of fixed-rate debt. The net change in fair value of the derivatives and the hedged items is reported
in Boeing Capital interest expense.
Derivative Instruments Not Receiving Hedge Accounting Treatment
We have entered into agreements to purchase and sell aluminum to address long-term strategic sourcing
objectives and international business requirements. These agreements are derivative instruments for