Boeing 2015 Annual Report Download - page 57

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Contractual Obligations
The following table summarizes our known obligations to make future payments pursuant to certain
contracts as of December 31, 2015, and the estimated timing thereof.
(Dollars in millions) Total
Less
than 1
year
1-3
years
3-5
years
After 5
years
Long-term debt (including current portion) $9,922 $1,186 $996 $2,358 $5,382
Interest on debt(1) 5,580 459 849 718 3,554
Pension and other postretirement cash
requirements 14,146 640 1,718 4,222 7,566
Capital lease obligations 157 55 76 16 10
Operating lease obligations 1,529 244 405 277 603
Purchase obligations not recorded on the
Consolidated Statements of Financial Position 123,100 43,471 31,741 24,465 23,423
Purchase obligations recorded on the Consolidated
Statements of Financial Position 16,580 15,358 824 125 273
Total contractual obligations (2) $171,014 $61,413 $36,609 $32,181 $40,811
(1) Includes interest on variable rate debt calculated based on interest rates at December 31, 2015. Variable rate debt was 3% of
our total debt at December 31, 2015.
(2) Excludes income tax matters. As of December 31, 2015, our net liability for income taxes payable, including uncertain tax
positions, was $1,177 million. We are not able to reasonably estimate the timing of future cash flows related to uncertain tax
positions.
Pension and Other Postretirement Benefits Pension cash requirements are based on an estimate of
our minimum funding requirements, pursuant to ERISA regulations, although we may make additional
discretionary contributions. Estimates of other postretirement benefits are based on both our estimated
future benefit payments and the estimated contributions to plans that are funded through trusts.
Purchase Obligations Purchase obligations represent contractual agreements to purchase goods or
services that are legally binding; specify a fixed, minimum or range of quantities; specify a fixed, minimum,
variable, or indexed price provision; and specify approximate timing of the transaction. Purchase obligations
include amounts recorded as well as amounts that are not recorded on the Consolidated Statements of
Financial Position.
Purchase Obligations Not Recorded on the Consolidated Statements of Financial Position
Production related purchase obligations not recorded on the Consolidated Statements of Financial Position
include agreements for inventory procurement, tooling costs, electricity and natural gas contracts, property,
plant and equipment, and other miscellaneous production related obligations. The most significant
obligation relates to inventory procurement contracts. We have entered into certain significant inventory
procurement contracts that specify determinable prices and quantities, and long-term delivery timeframes.
In addition, we purchase raw materials on behalf of our suppliers. These agreements require suppliers
and vendors to be prepared to build and deliver items in sufficient time to meet our production schedules.
The need for such arrangements with suppliers and vendors arises from the extended production planning
horizon for many of our products. A significant portion of these inventory commitments is supported by
firm contracts and/or has historically resulted in settlement through reimbursement from customers for
penalty payments to the supplier should the customer not take delivery. These amounts are also included
in our forecasts of costs for program and contract accounting. Some inventory procurement contracts may
include escalation adjustments. In these limited cases, we have included our best estimate of the effect
of the escalation adjustment in the amounts disclosed in the table above.