Boeing 2015 Annual Report Download - page 96
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80
Financing Commitments
Financing commitments related to aircraft on order, including options and those proposed in sales
campaigns, totaled $16,283 and $16,723 as of December 31, 2015 and 2014. The estimated earliest
potential funding dates for these commitments as of December 31, 2015 are as follows:
Total
2016 $2,897
2017 3,664
2018 3,235
2019 2,884
2020 1,321
Thereafter 2,282
$16,283
As of December 31, 2015, $15,919 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 $4,968 and $3,985 as of December 31,
2015 and 2014.
Commitments to ULA
We and Lockheed Martin Corporation have each committed to provide ULA with additional capital
contributions in the event ULA does not have sufficient funds to make a required payment to us under an
inventory supply agreement. As of December 31, 2015, ULA’s total remaining obligation to Boeing under
the inventory supply agreement was $120. See Note 6.
C-17
Production of the C-17 aircraft ended in the fourth quarter of 2015. At December 31, 2015, one aircraft
remained unsold, while our backlog includes international orders for four C-17 aircraft that are scheduled
for delivery in 2016. During 2015 we received orders for six C-17 aircraft and we believe it is probable that
we will receive an order for the remaining unsold aircraft from an international customer. Should an order
not materialize we could incur charges to write down inventory.
F/A-18
At December 31, 2015, our backlog included 48 F/A-18 aircraft under contract with the U.S. Navy. The
orders in backlog include an order for 15 aircraft finalized in October 2015. The Consolidated Appropriations
Act, 2016, passed in December 2015, funds 12 additional F/A-18 aircraft that, combined with the orders
in backlog, would complete production in mid-2018. The President’s Fiscal Year 2017 Budget request
submitted in February 2016 includes funding for two additional F/A-18 aircraft. We are continuing to work
with our U.S. customers as well as international customers to secure additional orders that would extend
the program beyond 2018.