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BOEING TO IMPLEMENT ACCOUNTING CHANGE

 SEATTLE, Dec. 14 /PRNewswire/ -- The Boeing Co. (NYSE: BA) announced today that it will implement the new Financial Accounting Standards Board (FASB) accounting requirement for retiree health care costs in 1992 rather than deferring implementation until the first quarter of 1993.
 The FASB's Statement of Financial Accounting Standards (SFAS) No. 106 -- "Employers' Accounting for Postretirement Benefits Other Than Pensions" requires accrual of retiree health care costs during an employee's service period. Previous Boeing practice was to accrue retiree health care liability upon an employee's retirement. SFAS No. 106 requires the new accounting procedure to be implemented no later than first quarter 1993.
 This accounting change will result in a one-time, after-tax charge to earnings of $1.0 billion, or $2.94 per share, relating to the additional liability being recognized as of Jan. 1, 1992. The transition adjustment will be reflected in restated First Quarter 1992 results. Boeing disclosed in its 1991 annual report an estimated after- tax earnings impact between $0.9 billion and $1.2 billion.
 The new accounting standard will result in a higher level of retiree health care costs to be recognized in 1992 and prospectively. For 1992, this will represent a decrease of approximately $0.06 of earnings per share each quarter after restatement.
 There will be no impact on the company's cash flow requirements as a result of the accounting change. At this time, there are no plans to fund the accrued obligation.
 -0- 12/14/92
 /CONTACT: Sherry Nebel of The Boeing Co., 206-655-6123/
 (BA)


CO: The Boeing Co. ST: Washington IN: ARO AIR SU:

LM -- SE005 -- 6845 12/14/92 15:34 EST
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Publication:PR Newswire
Date:Dec 16, 1992
Words:271
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