Boeing 2015 Annual Report Download - page 37

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21
During the second quarter of 2015 and of 2014, we recorded reach-forward losses of $835 million and
$425 million on the USAF KC-46A Tanker contract. $513 million of the 2015 charge was recorded at
Commercial Airplanes and $322 million at our BMA segment. $238 million of the 2014 charge was recorded
at Commercial Airplanes and $187 million at our BMA segment.
Core operating earnings in 2015 decreased by $1,119 million compared with 2014 primarily due to the
2015 747 charge and higher USAF KC-46A Tanker charges. Core operating earnings in 2014 increased
by $984 million compared with 2013 primarily reflecting higher earnings at Commercial Airplanes and the
2013 A-12 charge.
Unallocated Items, Eliminations and Other The most significant items included in Unallocated items,
eliminations and other are shown in the following table:
(Dollars in millions)
Years ended December 31, 2015 2014 2013
Share-based plans ($76) ($67) ($95)
Deferred compensation (63) (44) (238)
Eliminations and other (601) (665) (522)
Litigation settlements (406)
Sub-total (included in core operating earnings*) (740) (776) (1,261)
Pension (421) (1,469) (1,374)
Postretirement 123 82 60
Pension and other postretirement benefit expense
(excluded from core operating earnings*) (298) (1,387) (1,314)
Total unallocated items, eliminations and other ($1,038) ($2,163) ($2,575)
* Core operating earnings is a Non-GAAP measure that excludes certain components of pension and other
postretirement benefit expense. See page 43.
Deferred compensation expense increased by $19 million in 2015 and decreased by $194 million in 2014,
primarily driven by changes in broad stock market conditions and our stock price.
Eliminations and other unallocated expense decreased by $64 million in 2015 primarily due to the timing
of the elimination of profit on intercompany aircraft deliveries and expense allocations. The increase of
$143 million in 2014 was primarily due to insurance recoveries which were recorded in the third quarter
of 2013.
Litigation settlements include the 2013 charge of $406 million related to the settlement of the A-12 litigation.