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| Management’s Discussion and
Analysis |
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| (g) |
Debt maturities during this three-year period
included $538 million in 2001, $480 million
in 2000 and $650 million in 1999. Additionally,
Boeing Capital Corporation (BCC), a corporation
wholly owned by the Company, issued $3.9 billion
of debt in 2001, $2.0 billion in 2000 and
$400 million in 1999. The significant BCC
debt issuance in 2000 and 2001 was performed
in conjunction with the transfer of a significant
portion of the Company’s customer financing
assets to BCC as well as growth in the customer
financing portfolio. |
| (h) |
In the third quarter of 1998, the Company
announced a share repurchase program to buy
up to 15% of the Company’s outstanding
shares of common stock. The Company repurchased
35.2 million shares of stock for $1.3 billion
in 1998, 68.9 million shares for $2.9 billion
in 1999, and 41.8 million shares for $2.4
billion in 2000, which completed the share
repurchase program. In the fourth quarter
of 2000, the Company authorized an additional
share repurchase program for up to 85 million
additional shares. As of December 31, 2001,
the Company had repurchased 40.7 million shares
for $2.4 billion. |
| Disclosures
about contractual obligations and commercial
commitments The following table
and narrative gives additional guidance related
to contractual obligations and commercial
commitments. |
|
|
| Contractual Obligations
(in millions) |
Total |
Less
than
1 year |
1–3
years |
4–5
years |
After
5
years |
|
 |
|
| Long-term debt |
| Capital lease obligations |
| Operating leases |
|
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|
|
|
|
|
 |
|
| Total contractual obligations |
$14,092 |
$1,775 |
$2,263 |
$3,200 |
|
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|
| Unconditional
purchase obligations The Company has
entered into significant long-term purchase obligations
with a large network of suppliers. The need for
such arrangements with suppliers and vendors arises
due to the extended production planning horizon
for many of its products, including commercial aircraft,
military aircraft and other products where the delivery
to the customer is over an extended period of time.
A significant portion of these purchase obligations
are either supported by a firm contract from a customer
or have historically resulted in settlement through
either termination payments or contract adjustments,
when necessary, should the customer base not materialize
to support delivery from the supplier. |
|
| Other Commercial Commitments
(in millions) |
Total
Amounts
Committed |
Less
than
1 year |
1–3
years |
4–5
years |
After
5
years |
|
|
|
|
Standby letters of credit and surety bonds |
| Guarantees |
| Other commercial commitments |
|
|
|
|
|
|
|
|
|
| Total other commercial
commitments |
$11,602 |
$6,564 |
$2,913 |
$857 |
|
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|
| Other commercial commitments in the table
above include irrevocable financing commitments
related to aircraft
on order, commercial equipment financing,
and commitments to purchase used aircraft.
These are discussed in
Note 24 to the consolidated financial statements. |
| Capital
resources The Company has the following
Standard & Poor’s credit ratings:
short-term, A-1; senior debt, A+. BCC has
the following Standard & Poor’s credit
ratings: short-term, A-1; senior debt, A+.
The Company has the following Moody’s
credit ratings: short-term, P-1; senior debt,
A2. BCC has the following Moody’s credit
ratings: short-term, P-2; senior debt, A3. |
| The events of September 11, 2001, negatively
impacted the liquidity and capital resources
of the Company.
Subsequent to September 11, 2001, the Company
utilized the commercial paper program for
the first time, providing
additional short-term liquidity. Commercial
paper remains a significant liquidity source,
and the Company
plans to increase the authorized commercial
paper program size. |
| On February 22, 2002, BCC filed with the
Securities and Exchange Commission a Form
S-3 Registration
Statement for a public shelf registration
of $5.0 billion of debt securities. |
| The Company has long-term debt obligations
of $11.8 billion, which are unsecured. Approximately
$1.3 billion
mature in 2002, and the balance has an average
maturity of 11.8 years. Excluding BCC, total
long-term debt is
at 32% of total shareholders’ equity
plus debt. The consolidated long-term debt,
including BCC, is at 53% of total
shareholders’ equity plus debt. |
| The Company has substantial additional long-term
borrowing capability. Revolving credit line
agreements with
a group of major banks, totaling $4.5 billion,
remain available but unused. The Company believes
its internally
generated liquidity, together with access
to external capital resources, will be sufficient
to satisfy existing commitments
and plans, and also to provide adequate financial
flexibility to take advantage of potential
strategic business
opportunities should they arise within the
next year. |
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