Accounts Receivable
Accounts receivable at December 31 consisted of the following: |
| | | | | | | |
| 2013 |
| | 2012 |
|
U.S. government contracts |
| $3,604 |
| |
| $2,788 |
|
Defense, Space & Security customers (1) | 1,073 |
| | 1,196 |
|
Commercial Airplanes customers | 1,072 |
| | 903 |
|
Reinsurance receivables | 525 |
| | 509 |
|
Other | 376 |
| | 294 |
|
Less valuation allowance | (104 | ) | | (82 | ) |
Total |
| $6,546 |
| |
| $5,608 |
|
| |
(1) | Excludes U.S. government contracts |
The following table summarizes our accounts receivable under long-term contracts that were unbillable or related to outstanding claims as of December 31:
|
| | | | | | | | | | | | | | | |
| Unbillable | | Claims |
| 2013 |
| | 2012 |
| | 2013 |
| | 2012 |
|
Current |
| $1,550 |
| |
| $1,316 |
| |
| $3 |
| |
| $26 |
|
Expected to be collected after one year | 1,020 |
| | 730 |
| | 61 |
| | 63 |
|
Total |
| $2,570 |
| |
| $2,046 |
| |
| $64 |
| |
| $89 |
|
Under contract accounting unbillable receivables on long-term contracts arise when the sales or revenues based on performance attainment, though appropriately recognized, cannot be billed yet under terms of the contract as of the balance sheet date. Any adjustment for the credit quality of unbillable receivables, if required, would be recorded as a direct reduction of revenue. Factors considered in assessing the collectability of unbillable receivables include, but are not limited to, a customer’s extended delinquency, requests for restructuring and filings for bankruptcy. Unbillable receivables related to commercial customers expected to be collected after one year were $179 and $230 at December 31, 2013 and 2012. Accounts receivable related to claims are items that we believe are earned, but are subject to uncertainty concerning their determination or ultimate realization.
Accounts receivable as of December 31, 2013, included $112 of unbillable receivables on a long-term contract with LightSquared, LLC (LightSquared) related to the construction of two commercial satellites. One of the satellites has been delivered, and the other is substantially complete but remains in Boeing’s possession. On May 14, 2012, LightSquared filed for Chapter 11 bankruptcy protection. We believe that our rights in the second satellite and related ground-segment assets are sufficient to protect the value of our receivables in the event LightSquared fails to make payments as contractually required or rejects its contract with us. Given the uncertainties inherent in bankruptcy proceedings, it is reasonably possible that we could incur losses related to these receivables in connection with the LightSquared bankruptcy.
Accounts receivable, other than those described above, expected to be collected after one year are not material.
