Other commitments The Company enters into certain trade-in agreements to purchase used aircraft from customers at a specific price at a future point in time when those customers purchase new aircraft from the Company. In the event the Company accepts an aircraft under a trade-in agreement, the aircraft purchased by the Company serves as collateral to offset amounts paid by the Company to the customer. As of December 31, 2002 and 2001, accounts payable and other liabilities included $156 and $189 related to trade-in commitments, of which $93 and $140 was related to the events of September 11, 2001. The total contractual trade-in value of all aircraft that customers had the right to sell to the Company was $1,993 and $3,262 as of December 31, 2002 and 2001. The Company estimated the fair value of those aircraft was $1,837 and $3,073 as of December 31, 2002 and 2001. There is a high degree of uncertainty inherent in the assessment of the likelihood of tradein commitments. Updates on the likelihood that trade-in commitments will be exercised using both quantitative information from valuation sources and qualitative information from other sources are continually assessed. The Company continues to monitor all trade-in commitments for adverse developments.

Irrevocable financing commitments related to aircraft on order, including options, scheduled for delivery through 2007 totaled $3,223 and $7,508 as of December 31, 2002 and 2001. The Company anticipates that not all of these commitments will be utilized and that it will be able to arrange for third-party investors to assume a portion of the remaining commitments, if necessary. The Company has other additional commitments to arrange for equipment financing totaling $106 and $344 as of December 31, 2002 and 2001.

As of December 31, 2002 and 2001, future lease commitments on aircraft not recorded on the Condensed Consolidated Statements of Financial Position totaled $246 and $323. These lease commitments extend through 2015, and the Company’s intent is to recover these lease commitments through sublease arrangements. As of December 31, 2002 and 2001, accounts payable and other liabilities included $130 ($2 related to the events of September 11, 2001) and $116 ($1 related to theevents of September 11, 2001) attributable to adverse commitments under these lease arrangements.

As of December 31, 2002, the Company had extended a $69 credit line agreement to one of its joint venture partners. To date, $33 had been drawn on this agreement, which was recorded as an additional investment in the joint venture.

Note 21 - Significant Group Concentrations of Risk

Credit risk Financial instruments involving potential credit risk are predominantly with commercial aircraft customers and the U.S. Government. Of the $17,218 in accounts receivable and customer financing included in the Consolidated Statements of Financial Position, $8,837 related to commercial aircraft customers ($315 of accounts receivable and $8,522 of customer financing) and $2,860 related to the U.S. Government. Of the $8,522 of aircraft customer financing, $7,606 related to customers the Company believes have less than investment-grade credit. AMR Corporation, AirTran Airways and UAL Corporation were associated with 11%, 12% and 14% of all financial instruments related to customer financing. Financing for aircraft is collateralized by security in the related asset, and historically the Company has not experienced a problem in accessing such collateral.

As of December 31, 2002, off-balance sheet financial instruments described in Note 20 predominantly related to commercial aircraft customers. Similarly, of the $3,223 of irrevocable financing commitments related to aircraft on order including options, $3,128 related to customers the Company believes have less than investment-grade credit.

Other risk The Commercial Airplanes segment is subject to both operational and external business environment risks. Operational risks that can disrupt the Company’s ability to make timely delivery of its commercial jet aircraft and meet its contractual commitments include execution of internal performance plans, product performance risks associated with regulatory certifications of the Company’s commercial aircraft by the U.S. Government and foreign governments, other regulatory uncertainties, collective bargaining labor disputes, performance issues with key suppliers and subcontractors and the cost and availability of energy resources, such as electrical power. Aircraft programs, particularly new aircraft models such as the 717 program, face the additional risk of pricing pressures and cost management issues inherent in the design and production of complex products. Financing support may be provided by the Company to airlines, some of which are unable to obtain other financing. External business environment risks include adverse governmental export and import policies, factors that result in significant and prolonged disruption to air travel worldwide, and other factors that affect the economic viability of the commercial airline industry. Examples of factors relating to external business environment risks include the volatility of aircraft fuel prices, global trade policies, worldwide political stability and economic growth, acts of aggression that impact the perceived safety of commercial flight, escalation trends inherent in pricing the Company’s aircraft, and a competitive industry structure which results in market pressure to reduce product prices.