Other Assets, Net, Allowance for Credit Loss, Recovery

[Table of Contents](#i96cbbb599c964cb4a125b720672b6568_10)Federal income tax audits have been settled for all years prior to 2018. The Internal Revenue Service (IRS) began the 2018-2019 federal tax audit in the first quarter of 2021 and recently added tax year 2020 to the audit. We are also subject to examination in major state and international jurisdictions for the 2008-2020 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years.Note 5 – Accounts Receivable, netAccounts receivable at December 31 consisted of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
| U.S. government contracts(1) | $1,180  |  |  | $811  |  |
| Commercial Airplanes | 279  |  |  | 17  |  |
| Global Services(2) | 1,456  |  |  | 1,437  |  |
| Defense, Space, & Security(2) | 111  |  |  | 120  |  |
| Other | 5  |  |  | 14  |  |
| Less valuation allowance | (390) |  |  | (444) |  |
| Total | $2,641  |  |  | $1,955  |  |

(1)Includes foreign military sales through the U.S. government(2)Excludes U.S. government contractsNote 6 – Allowances for Losses on Financial AssetsThe change in allowances for expected credit losses for the years ended December 31, 2021 and 2020 consisted of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Accounts receivable | Unbilled receivables | Other Current Assets | Customer financing | Other Assets | Total |
| Balance at January 1, 2020 | ($138) |  | ($81) |  | ($38) |  | ($5) |  | ($75) |  | ($337) |  |
| Changes in estimates | (314) |  | (48) |  | (34) |  | (12) |  | (66) |  | (474) |  |
| Write-offs | 8  |  |  |  |  |  | 8  |  |
|  |  |  |  |  |  |  |
| Recoveries |  |  |  |  | 1  |  | 1  |  |
| Balance at December 31, 2020 | (444) |  | (129) |  | (72) |  | (17) |  | (140) |  | (802) |  |
|  |  |  |  |  |  |  |
| Balance at January 1, 2021 | (444) |  | (129) |  | (72) |  | (17) |  | (140) |  | (802) |  |
| Changes in estimates | (24) |  | (11) |  | 6  |  | (1) |  | (59) |  | (89) |  |
| Write-offs | 77  |  | 49  |  | 4  |  |  | 13  |  | 143  |  |
|  |  |  |  |  |  |  |
| Recoveries | 1  |  |  |  |  |  | 1  |  |
| Balance at December 31, 2021 | ($390) |  | ($91) |  | ($62) |  | ($18) |  | ($186) |  | ($747) |  |

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