BOEING CO | 2013 | FY | 3


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.

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