Capital lease obligations include three aircraft that the Company will purchase in 2003.

The $300 debentures due August 15, 2024, are redeemable at the holder’s option on August 15, 2012. All other debentures and notes are not redeemable prior to maturity.

Additional disclosure information Maturities of long-term debt for the next five years are as follows:

The Company has $4,500 currently available under credit line agreements with a group of commercial banks. BCC is named a subsidiary borrower for up to $2,000 under these arrangements. The Company continues to be in full compliance with all covenants contained in various debt agreements.

Total debt interest, including amounts capitalized, was $749, $730 and $527 for the years ended December 31, 2002, 2001 and 2000, and interest payments were $720, $587 and $599, respectively.

Short-term debt and current portion of long-term debt as of December 31, 2002, consisted of the following:

At December 31, 2002 and 2001, BCC had borrowings under its commercial paper program totaling $73 and $43. The weighted average interest rate on short-term borrowings at December 31, 2002 and 2001, was 2.8% and 4.4%.

Financing activities On February 16, 2001, BCC filed a public shelf registration of $5,000 with the Securities and Exchange Commission (SEC), which was declared effective on February 26, 2001. As of December 31, 2002, BCC had received proceeds from the issuance of $3,250, in aggregate, of senior notes. Effective October 31, 2001, BCC allocated $1,000 to the Series XI medium-term note program. Effective June 20, 2002, the remaining $750 under the shelf registration was allocated to this program. As of the filing date hereof, an aggregate amount of $427 remains available under the Series XI medium-term program for potential debt issuance.

On February 22, 2002, BCC filed a public shelf registration of $5,000 with the SEC, which was declared effective on March 4, 2002. BCC allocated $1,000 to establish a new retail mediumterm note program involving the sale of notes with a minimum denomination of one thousand dollars. As of the filing date hereof, an aggregate amount of $3,895, of which $495 is retail notes, remains available for potential debt issuance.

On June 6, 2002, BCC established a $1,500 Euro medium-term note program. As of the filing date hereof, an aggregate amount of $1,440 remains available for potential debt issuance.

On September 13, 2002, the Company filed a public shelf registration of $1,000 with the SEC, which was declared effective on September 20, 2002. On February 11, 2003, the Company had received proceeds from the issuance of $1,000 of unsecured notes. This issuance was made up of two offerings; $600, 5.125% note due 2013, and $400, 6.125% note due 2033.

On May 24, 2001, American Airlines issued EETCs, and the Company through BCC received proceeds attributable to monetization of lease receivables associated with 32 MD-83 aircraft owned by BCC and on lease to American Airlines. These borrowings of $566 as of December 31, 2002, are non-recourse to the Company and are collateralized by the aircraft. The effective interest rates range from 6.82% to 7.69%. BCC accounts for this transaction as a leveraged lease, therefore, this debt balance is netted against the BCC sales-type/financing lease assets.

In December 2002, BCC completed an asset securitization that raised $299 of secured debt through the use of a bank-sponsored Commercial Paper Conduit (C/P Conduit). As collateral for the debt, BCC transferred $331 of assets from its portfolio to the C/P Conduit. These portfolio assets consisted of the cash flows associated with specific financing leases, notes and other receivables and operating leases. BCC also assigned to the C/P Conduit perfected security interests in $278 of collateral underlying the transferred portfolio assets. The collateral pledged indirectly provides the C/P Conduit with additional protection in the event that the cash flows from the leases and notes are insufficient to cover the total debt outstanding under the transaction. The secured debt and securitized assets remain on BCC’s balance sheet.

Note 16 – Postretirement Plans

The Company’s postretirement benefits other than pensions consist principally of health care coverage for eligible retirees and qualifying dependents, and to a lesser extent, life insurance to certain groups of retirees. Retiree health care is provided principally until age 65 for approximately half those retirees who are eligible for health care coverage. Certain employee groups, including employees covered by most United Auto Workers bargaining agreements, are provided lifetime health care coverage.