Accounts Receivable

12 Months Ended

Dec. 31, 2012

Accounts Receivable, Net [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable at December 31 consisted of the following:

	2012			2011
U.S. government contracts		$2,788			$2,950
Defense, Space & Security customers (1)	1,196			1,100
Commercial Airplanes customers	903			827
Reinsurance receivables	509			585
Other	294			384
Less valuation allowance	(82		)	(53		)
Total		$5,608			$5,793

⁽¹⁾  Excludes U.S. government contracts

The following table summarizes our accounts receivable under long-term contracts that were not billable or related to outstanding claims as of December 31:

	Unbillable				Claims
	2012		2011		2012		2011
Current		$1,316		$1,174		$26		$49
Expected to be collected after one year	730		498		63		209
Total		$2,046		$1,672		$89		$258

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$230 and $192 at December 31, 2012 and 2011. 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, 2012, includes $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. As a result, we do not expect to incur any 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.