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									State of Washington

Employment and Income Analysis of the Boeing 7E7 Project
June 22, 2004




State of Washington                                  Deloitte Consulting, LLP
June 2004                     1
 TABLE OF CONTENTS
                                                                                                                                                                                               Page

   I. EXECUTIVE SUMMARY ...............................................................................................................................................................4
  II. EMPLOYMENT AND INCOME ANALYSIS OF THE BOEING 7E7 PROJECT ...................................................................7
                 A. BACKGROUND AND STUDY REGION........................................................................................................................7
                 B. DEVELOPMENT OF ASSUMPTIONS...........................................................................................................................8
                 C. RESULTS ............................................................................................................................................................................12
                              1. OUTPUT ...............................................................................................................................................................13
                              2. VALUE ADDED (INCOME)..............................................................................................................................14
                              3. EMPLOYMENT ..................................................................................................................................................15
 III. GLOSSARY .......................................................................................................................................................................................16
 IV. APPENDIX .........................................................................................................................................................................................17
                 A. DETAILED ASSUMPTIONS............................................................................................................................................17
                 B. LIMITATIONS ...................................................................................................................................................................23
                 C. IMPLAN ..............................................................................................................................................................................23




State of Washington                                                                                                                                                      Deloitte Consulting, LLP
June 2004                                                                                         2
LIST OF TABLES

TABLE 1. GENERAL DEMOGRAPHICAL DATA FOR THE STATE OF WASHINGTON ........................................................7
TABLE 2. IMPLAN AIRCRAFT SECTOR ADJUSTMENTS ............................................................................................................10
TABLE 3. INPUTS TO THE MODEL ....................................................................................................................................................11
TABLE 4. OVERALL RESULTS ............................................................................................................................................................12
TABLE 5. SUMMARY OUTPUT RESULTS.........................................................................................................................................13
TABLE 6. SUMMARY VALUE ADDED (INCOME) RESULTS .......................................................................................................14
TABLE 7. SUMMARY EMPLOYMENT RESULTS ............................................................................................................................15
TABLE 8. CAPITAL ASSUMPTIONS ...................................................................................................................................................17
TABLE 9. GOODS AND SERVICES SPENDING ASSUMPTIONS ..................................................................................................19
TABLE 10. EMPLOYMENT ASSUMPTIONS ......................................................................................................................................21




State of Washington                                                                                                                                     Deloitte Consulting, LLP
June 2004                                                                               3
I. Executive Summary
 The State of Washington (“State”) engaged Deloitte Consulting (“Deloitte”) to complete an analysis of the potential employment and
 associated income and sales that could result from the proposed 7E7 project. Boeing and an Advisory Group (Office of Financial
 Management, Department of Revenue, and other leading economists) provided data or input. This analysis includes direct, indirect,
 and multiplier effects the project could generate for the Washington economy during both the development phase and ongoing
 operations.

 In conducting this study Deloitte relied on assumptions that have been provided for the proposed project by Boeing and on revenue
 information provided by the Office of Financial Management. The analyses and results contained herein are subject to the
 limitations set forth in the Appendix attached to this report.

 Deloitte then utilized IMPLAN’s input-output software to estimate the direct, indirect, and induced effects of the development upon
 the local economy.

 The analysis was contingent upon non-proprietary estimates provided by Boeing, including:

         In-state construction and capital spending (for both goods and services) for the project, over the entire analysis period
         In-state annual spending on goods and services by Boeing
         Number of full-time equivalent Boeing jobs, including wages and benefits
         In-state investment and annual spending (including construction) by suppliers;
         Number of full-time equivalent supplier jobs, including wages and benefits

 Office of Financial Management economists provided estimated State general fund tax figures which have been incorporated into
 the IMPLAN model. These taxes are anticipated to result in additional revenue for the State general fund due to the 7E7 project.
 It should be noted that the effect of the reduction in the State aerospace B&O tax rate and revenue related to the 7E7 project that
 will occur as a direct result of the project, have been factored into the tax revenue estimates provided.




 State of Washington                                                                                                    Deloitte Consulting, LLP
 June 2004                                                             4
This study does not address the impact of the 7E7 project on any future Boeing decision making related to the development of new or
derivative aircraft within the State of Washington.

Summary results for the analysis are included in following table (definitions of the key terminology can be found on page 16):
                                                                                                   Summary Results


                                              2004 - Pre-Construction                 2006 - Construction                  2008 - Finish Construction/Early Operations    2012 - Steady State/Ongoing Operations
                        Impact               High                 Low              High                     Low                  High                      Low                  High                 Low

               Direct                    $1,118,526,000        $686,369,000     $2,906,046,000      $1,630,265,000           $3,225,960,000           $1,206,259,000      $2,091,298,000          $729,845,000
  OUTPUT




               Indirect & Induced         $843,560,000         $501,123,000     $2,208,015,000      $1,194,163,000           $2,403,157,000             $872,560,000      $1,553,375,000          $524,656,000

                                 Total   $1,962,086,000     $1,187,491,000      $5,114,061,000      $2,824,429,000           $5,629,118,000           $2,078,819,000      $3,644,673,000        $1,254,501,000

               Direct                     $559,335,000         $244,960,000     $1,382,248,000        $561,880,000           $1,556,565,000             $410,898,000      $1,024,387,000          $254,832,000
  INCOME




               Indirect & Induced         $489,559,000         $280,935,000     $1,280,819,000        $668,081,000           $1,386,607,000             $485,565,000        $896,597,000          $293,296,000

                                 Total   $1,048,893,000        $525,896,000     $2,663,067,000      $1,229,961,000           $2,943,173,000             $896,463,000      $1,920,984,000          $548,127,000
  EMPLOYMENT




               Direct                               5,090               2,860             15,820                   7,120                14,110                    5,140                 9,280              3,250

               Indirect & Induced                   8,050               4,570             21,070                  10,830                22,780                    7,910                14,790              4,800

                            Total            13,130              7,430                    36,890              17,950                    36,890                   13,060            24,070                  8,060
               2004 Dollars (Totals may not add due to rounding)


Highlights of the total direct, indirect and induced economic impacts for 2004 (Pre-Construction) for the 7E7 project include
(2004 dollars):

                  Direct employment of approximately 2,860-5,090 jobs created within the State from the proposed development (See
                   IMPLAN explanation in the Appendix on page 23.)
                  Total indirect and induced employment of approximately 4,570-8,050 jobs in the State of Washington as a result to
                   business and household spending effects
                  Output of $1.19 billion to $2.00 billion
                  Income of $526 million to $1.05 billion



State of Washington                                                                                                                                                                Deloitte Consulting, LLP
June 2004                                                                                               5
Highlights of the total direct, indirect and induced economic impacts for 2006 (Construction) for the 7E7 project include (2004
dollars):

        Direct employment of approximately 7,120-15,820 jobs created within the State from the proposed development
        Total indirect and induced employment of approximately 10,830-21,070 jobs in the State of Washington as a result to
         business and household spending effects
        Output of $2.82 billion to $5.11 billion
        Income of $1.23 billion to $2.66 billion

Highlights of the total direct, indirect and induced economic impacts for 2008 (Finish Construction/Early Operations) for the
7E7 project include (2004 dollars):

        Direct employment of approximately 5,140-14,110 jobs created within the State from the proposed development
        Total indirect and induced employment of approximately 7,910-22,780 jobs in the State of Washington as a result to
         business and household spending effects
        Output of $2.08 billion to $5.63 billion
        Income of $897 million to $2.94 billion

Highlights of the total direct, indirect and induced economic impacts for 2012 (Steady State/Ongoing Operations) for the 7E7
project include (2004 dollars):

        Annual direct employment of approximately 3,250-9,280 permanent jobs created within the State from the proposed
         development
        Total indirect and induced employment of approximately 4,800-14,790 jobs in the State of Washington as a result to
         business and household spending effects
        Output of $1.25 billion to $3.64 billion
        Income of $548 million to $1.92 billion




State of Washington                                                                                               Deloitte Consulting, LLP
June 2004                                                          6
II. Employment and Income Analysis of the Boeing 7E7 Project

  Background and Study Region
  The State of Washington (“State”) engaged Deloitte to complete an analysis of the potential employment and associated income and
  sales that could result from the proposed 7E7 project. Boeing and an Advisory Group (Office of Financial Management, Department
  of Revenue, and other leading economists) provided data or input. Our analysis includes direct, indirect, and multiplier effects the
  project could generate for the Washington economy during both the development phase and ongoing operations.

  At a Statewide level, Boeing has provided Deloitte with the timing of construction and operations of the facility, overall spend by
  Boeing, potential Boeing employment levels and estimated spending and employment for major suppliers of the proposed
  development.

  The proposed 7E7 project would generate a number of economic benefits for the State. This analysis quantifies ongoing economic
  benefits to the area, such as an injection of additional or supported jobs for residents, new sales for businesses, and additional income
  for workers and other residents. According to Boeing representatives, the extent of the impact generated within the entire State from
  the 7E7 project is anticipated to be focused in a four-county area including Snohomish, King, Pierce, and Skagit. As such, while the
  impact at the “State” level has been analyzed in this report, it is assumed that the majority of the impacts would take place within the
  four-county area.

  For the purposes of our analysis, the State of Washington is considered to be the geographic area of study. The summary data for the
  region as reported by IMPLAN is as follows:

                                     Table 1. General Demographical Data for the State of Washington

                                        Area                                                      Total          Income per
                             State    (sq. mi.)   Population    Employment     Households        Income          Household

                        Washington       66,581     5,987,973      3,584,766      2,496,301   $191,644,600,000        $76,771
                        2001 data




  State of Washington                                                                                                         Deloitte Consulting, LLP
  June 2004                                                              7
Development of Assumptions
Boeing provided Deloitte all of the inputs and assumptions utilized to evaluate the potential impact of the 7E7 project with the
exception of tax impacts, which were provided by the Office of Financial Management. Deloitte relied solely on information provided
by Boeing and the State of Washington in its analysis.

The following information was provided by Boeing in the form of ranges, estimated as low and high potential impacts:

        Overall timing of the construction phases and operational phases of the 7E7 project;
        Building construction, machinery and equipment, and other capital item spending information;
        Raw materials and other relevant goods and services spending by Boeing;
        Direct Boeing employment and wage and benefit information; and,
        Estimated spending and employment for major suppliers as a result of the proposed project.

Office of Financial Management economists provided estimated State general fund tax figures which have been incorporated into
the IMPLAN model. These taxes are anticipated to result in additional revenue for the State general fund due to the 7E7 project.
It should be noted that the effect of the reduction in the State aerospace B&O tax rate and revenue related to the 7E7 project that
will occur as a direct result of the project, have been factored into the tax revenue estimates provided.




State of Washington                                                                                                 Deloitte Consulting, LLP
June 2004                                                          8
Boeing has indicated that it is estimated that new or increased spending as a result of the construction and operation of the 7E7
project will be less impactful in the following areas; and did not provide spending assumptions for:

        Furniture, fixtures, and equipment
        Office supplies
        Contractor services in the areas of security, landscaping, building maintenance and food service

Additionally, Boeing could not confidently provide estimates for state and local sales taxes, property taxes, and major supplier
spending on furniture fixtures, and equipment, machinery and equipment, office supplies, or contractor services. As such, the
above spending categories have not been incorporated into the analysis in order to not overstate potential spending.

The investment, ongoing spending, and employment estimates were estimated at different points in the construction and operation
of the project. Key phases have been analyzed as follows:

        2004 – Pre-Construction
        2006 – Construction
        2008 – Finish Construction / Early Operations
        2012 – Steady State / Ongoing Operations

Due to the unique nature of the 7E7 project and the specialized type of workers necessary, specific project wage and benefit
information that was provided by Boeing was utilized to make adjustments to existing IMPLAN sectors 351-Aircraft
Manufacturing and 353-Other Aircraft Parts and Equipment.

These adjustments were made to provide a more accurate representation of the salaries estimated to be earned by Boeing 7E7
workers and major suppliers thereof. These salary adjustments, along with overall inputs to the model, can be seen in the
following tables.

Detailed assumptions for our analysis are found in the Appendix attached to this report.




State of Washington                                                                                                 Deloitte Consulting, LLP
June 2004                                                           9
                                                               Table 2. IMPLAN Aircraft Sector Adjustments

                                                                                                   Estimated Boeing Weighted Average Wages and Benefits ($2004)
                                                      Original Implan                   2004                        2006                    2008                    2012
351 Aircraft Manufacturing                              $ (Millions)          High               Low          High        Low         High        Low         High        Low
      VALUE ADDED                                                            $116,344             $81,551    $116,344     $81,551    $111,471     $77,348    $108,081     $73,527
      Employee Compensation                             $5,901.660          $8,641.365         $6,057.092 $8,641.365 $6,057.092 $8,279.396 $5,744.937 $8,027.591 $5,461.160
      Proprietary Income                                  $255.914           $255.914           $255.914     $255.914    $255.914    $255.914    $255.914    $255.914    $255.914
      Other Property Income                              -$154.599
      Indirect Business Taxes                              $98.553
                                                        $6,101.528          $8,897.279         $6,313.006     $8,897.279       $6,313.006       $8,535.310      $6,000.851       $8,283.505      $5,717.074
       Per Worker                                          $82,149           $119,790             $84,996      $119,790           $84,996         $114,917         $80,793        $111,526          $76,973

       EMPLOYMENT
       All occupations                                      74,274              74,274            74,274           74,274          74,274           74,274           74,274          74,274           74,274

       OUTPUT
       Industry Output                                $21,692.990


                                                                                                         Estimated Supplier Wages and Benefits ($2004)
                                                      Original Implan                   2004                      2006                    2008                                            2012
353 Other Aircraft Parts and Equipment                  $ (Millions)          High              Low         High        Low         High         Low                                High        Low
     VALUE ADDED                                                             $142,980           $100,317   $142,980    $100,317    $128,682      $86,941                          $128,682      $86,941
     Employee Compensation                                $435.869          $1,194.743          $838.247 $1,194.743    $838.247 $1,075.269      $726.481                         $1,075.269    $726.481
     Proprietary Income                                     $6.490              $6.490            $6.490     $6.490       $6.490     $6.490       $6.490                             $6.490      $6.490
     Other Property Income                                 $85.786
     Indirect Business Taxes                                $6.680
                                                          $534.825          $1,201.233          $844.737      $1,201.233         $844.737       $1,081.759         $732.971      $1,081.759         $732.971
       Per Worker                                          $64,005           $143,757           $101,093       $143,757          $101,093         $129,459          $87,718       $129,459           $87,718

       EMPLOYMENT
       All occupations                                        8,356               8,356             8,356           8,356            8,356           8,356            8,356            8,356           8,356

       OUTPUT
       Industry Output                                  $1,878.971

       Note: To adjust Implan sectors 351 and 353 to look more like estimated Boeing and supplier wages - employee compensation in the model was tied to estimated wages and benefits provided by Boeing




State of Washington                                                                                                                                                             Deloitte Consulting, LLP
June 2004                                                                                            10
                                                                                                            Table 3. Inputs to the Model
                                                                                                                                                                                                                       2008 (Finish Construction /    2012 (Steady State Ongoing
                                                                                                                                                          2004 (Pre-Construction)          2006 (Construction)
                                                                                                                                                                                                                           Early Operations)                  Operations)

                                                                                         IMPLAN                                         Corresponding
                  Impact                               General Description                             IMPLAN Sector Description                            High            Low            High            Low            High            Low             High          Low
                                                                                          Sector                                        NAICS Code(s)

BOEING SPENDING/EMPLOYMENT
Building Construction                         Labor and materials for bldgs.               37      Manufacturing & Industrial Bldgs.         23          $42,448,000      $3,184,000 $297,138,000       $31,836,000    $42,448,000 $10,612,000 $21,224,000 $10,612,000
Machinery and Equipment                       General equipment                           269      All Other Industrial Machinery          333298        $10,612,000      $3,449,000 $169,793,000       $44,836,000       Negligible  Negligible Negligible  Negligible
Tooling
                             Design           Internal aerospace labor                    351      Aircraft Manufacturing                 336411           Negligible      Negligible    $3,714,000       $531,000      $3,714,000       $531,000        Negligible    Negligible
                        Construction          Equipment erection, foundations, etc.        45      Other Maint. & Repair Construction     230340           Negligible      Negligible    $1,486,000       $212,000      $1,486,000       $212,000        Negligible    Negligible
                          Assembly            Scaffolding, welding, etc.                  296      Welding & Soldering Equipment          3339992          Negligible      Negligible    $1,486,000       $212,000      $1,486,000       $212,000        Negligible    Negligible
                          Materials           Tool materials                              282      Special Tool, Die, Jig, & Fixture      333514           Negligible      Negligible     $743,000        $106,000        $743,000       $106,000        Negligible    Negligible
Raw Materials                                 Machine parts
                                   A          Engine parts (50% of Total)                 352      Aircraft Engine & Engine Parts          336412                 $0              $0             $0              $0 $19,523,000        $3,429,000     $16,714,000     $2,816,000
                                   B          Other parts (50% of Total)                  353      Other Aircraft Parts & Equipment        336413                 $0              $0             $0              $0 $19,523,000        $3,429,000     $16,714,000     $2,816,000
Fuel                                          For test flights & planes to leave state    407      Gasoline Stations                         447           Negligible      Negligible     Negligible      Negligible $1,000,000         $150,000       $2,000,000     $1,000,000
Administrative
                                           Virtual Manufacturing Environment -
                                Computers purchase, setup and maintenance                 417      Sofware Publishers                      5112          $85,077,000     $13,211,000 $204,184,000       $33,028,000 $299,082,000 $28,194,000 $162,959,000 $13,515,000
                                  Supplies Other perishable tools, shop supplies          243      Machine Shops                           33271         $26,177,000      $4,404,000 $62,826,000        $11,009,000 $92,025,000 $9,398,000 $50,141,000 $4,505,000
                                  Training Training and other related                     455      Business Support Services               5614           $6,544,000      $2,202,000 $15,706,000         $5,505,000 $23,006,000 $4,699,000 $12,535,000 $2,253,000
Taxes
                             Income Taxes     State general fund                          504      State & Local Non-Education                NA         $37,595,000     $21,758,000 $110,539,000       $55,021,000 $115,688,000 $41,894,000          $78,979,000 $27,037,000
Employment (Jobs Created)
                        Direct Nonrecurring   Engineers, tooling, manufacturing, etc.     351      Aircraft Manufacturing                  336411              1,625           1,170         3,900            2,925           1,950           975                0             0
                           Direct Recurring   Production                                  351      Aircraft Manufacturing                  336411                  0               0             0                0           2,500         1,000            2,500         1,000
       Indirect Recurring (Misc. Overhead)    All OH not related to a specific part       351      Aircraft Manufacturing                  336411                  0               0             0                0             375           100              375           100
                                   Support    Administrative                              351      Aircraft Manufacturing                  336411                875             630         2,100            1,575           2,488         1,075            1,438           550
Employment (Wages and Benefits)
                        Direct Nonrecurring   Engineers, tooling, manufacturing, etc.     351      Aircraft Manufacturing                  336411       $232,343,000 $117,371,000 $557,623,000 $293,427,000 $278,812,000 $97,809,000           $0          $0
                           Direct Recurring   Production                                  351      Aircraft Manufacturing                  336411                 $0           $0           $0           $0 $321,706,000 $86,941,000 $321,706,000 $86,941,000
       Indirect Recurring (Misc. Overhead)    All OH not related to a specific part       351      Aircraft Manufacturing                  336411                 $0           $0           $0           $0 $48,256,000 $8,694,000 $48,256,000 $8,694,000
                                   Support    Administrative                              351      Aircraft Manufacturing                  336411        $58,518,000 $29,420,000 $140,444,000 $73,551,000 $166,359,000 $50,202,000 $96,137,000 $25,685,000

MAJOR SUPPLIER SPENDING/EMPLOYMENT
Building Construction                      Labor and materials for bldgs.                  37      Manufacturing & Industrial Bldgs.          23           Negligible      Negligible $106,121,000      $21,224,000       Negligible     Negligible      Negligible    Negligible
Raw Materials                              Machine parts
                                         A Engine parts (50% of Total)                    352      Aircraft Engine & Engine Parts          336412                  $0               $0            $0             $0    $10,295,000     $1,739,000     $10,295,000     $1,739,000
                                         B Other parts (50% of Total)                     353      Other Aircraft Parts & Equipment        336413                  $0               $0            $0             $0    $10,295,000     $1,739,000     $10,295,000     $1,739,000
Employment (Jobs Created)
                      Direct Nonrecurring Tooling, manufacturing, etc.                    353      Other Aircraft Parts & Equipment        336413                  800            500             800            500              0               0              0              0
                          Direct Recurring Production                                     353      Other Aircraft Parts & Equipment        336413                    0              0               0              0          2,000             800          2,000            800
Employment (Wages and Benefits)
                      Direct Nonrecurring Tooling, manufacturing, etc.                    353      Other Aircraft Parts & Equipment        336413       $114,384,000     $50,158,000 $114,384,000       $50,158,000           $0          $0           $0          $0
                          Direct Recurring Production                                     353      Other Aircraft Parts & Equipment        336413                 $0              $0           $0                $0 $257,364,000 $69,553,000 $257,364,000 $69,553,000




State of Washington                                                                                                                                                                                                                      Deloitte Consulting, LLP
June 2004                                                                                                                                11
Overall Results
The estimated economic impacts of the proposed 7E7 project for each of the major phases of the development and operations of the
project are as follows:
                                                                                     Table 4. Overall Results

                                              2004 - Pre-Construction                 2006 - Construction                  2008 - Finish Construction/Early Operations    2012 - Steady State/Ongoing Operations
                        Impact               High                 Low              High                     Low                  High                      Low                  High                 Low

               Direct                    $1,118,526,000        $686,369,000     $2,906,046,000     $1,630,265,000            $3,225,960,000           $1,206,259,000      $2,091,298,000          $729,845,000
  OUTPUT




               Indirect & Induced         $843,560,000         $501,123,000     $2,208,015,000     $1,194,163,000            $2,403,157,000             $872,560,000      $1,553,375,000          $524,656,000

                                 Total   $1,962,086,000     $1,187,491,000      $5,114,061,000     $2,824,429,000            $5,629,118,000           $2,078,819,000      $3,644,673,000        $1,254,501,000

               Direct                     $559,335,000         $244,960,000     $1,382,248,000        $561,880,000           $1,556,565,000             $410,898,000      $1,024,387,000          $254,832,000
  INCOME




               Indirect & Induced         $489,559,000         $280,935,000     $1,280,819,000        $668,081,000           $1,386,607,000             $485,565,000        $896,597,000          $293,296,000

                                 Total   $1,048,893,000        $525,896,000     $2,663,067,000     $1,229,961,000            $2,943,173,000             $896,463,000      $1,920,984,000          $548,127,000
  EMPLOYMENT




               Direct                               5,090               2,860             15,820                   7,120                14,110                    5,140                 9,280              3,250

               Indirect & Induced                   8,050               4,570             21,070                  10,830                22,780                    7,910                14,790              4,800

                            Total            13,130              7,430                    36,890              17,950                    36,890                   13,060            24,070                  8,060
               2004 Dollars (Totals may not add due to rounding)


                  Output – represents the estimated increase in total production for all industries in the State supported by the project, and is
                   a measure of overall economic activity. Output can also be thought of as the increase in the value of total sales for the
                   State, or “Gross Local Product”. See detailed results on Page 13.
                  Value Added (Income) – represents the estimated increase in total payroll (including benefits) for all industries in the
                   State supported by the project. It includes wages and salaries of workers, self-employed individuals, and income received
                   by private business owners, doctors, lawyers, etc. See detailed results on Page 14.
                  Employment – represents the estimated total jobs created and supported by the project, on both a temporary and ongoing
                   basis. See detailed results on Page 15.




State of Washington                                                                                                                                                                Deloitte Consulting, LLP
June 2004                                                                                              12
Detailed Summary of Results – Output

The output contribution for specific industry sectors follow in the table below:

                                                                        Table 5. Summary Output Results

                                              2004 - Pre-Construction                2006 - Construction           2008 - Finish Construction/Early Operations   2012 - Steady State/Ongoing Operations
               Industry                     High                Low                High               Low               High                      Low                High                  Low
Ag, Forestry, Fish & Hunting                 6,235,000           3,119,000         16,400,000          7,365,000         17,206,000                5,311,000         11,250,000             3,260,000
Mining                                         590,000             342,000          1,607,000            788,000          1,657,000                  598,000          1,107,000               386,000
Utilities                                    7,235,000           4,079,000         18,728,000          9,409,000         20,506,000                7,080,000         13,585,000             4,464,000
Construction                                47,622,000           6,314,000        418,090,000         60,449,000         58,863,000               16,326,000         31,137,000            14,103,000
Manufacturing                            1,136,849,000        780,466,000       2,657,480,000      1,810,932,000      3,300,760,000            1,356,852,000      2,163,579,000           810,078,000
Wholesale Trade                             80,550,000         54,724,000         220,661,000        132,799,000        232,155,000               96,670,000        149,856,000            58,080,000
Transportation & Warehousing                33,122,000         21,221,000          86,094,000         48,665,000         95,496,000               37,489,000         63,566,000            23,775,000
Retail Trade                                63,882,000         31,691,000         167,745,000         75,042,000        177,254,000               54,017,000        116,981,000            33,892,000
Information                                107,511,000         24,993,000         263,384,000         61,091,000        363,783,000               48,768,000        204,371,000            26,028,000
Finance & Insurance                         60,878,000         33,312,000         161,043,000         79,067,000        170,702,000               57,590,000        111,135,000            35,138,000
Real Estate & Rental                        41,500,000         21,847,000         111,211,000         51,942,000        117,167,000               37,860,000         75,992,000            23,309,000
Professional-Scientific & Tech Svcs         52,082,000         34,616,000         145,783,000         83,150,000        149,811,000               61,796,000         97,049,000            37,783,000
Management of Companies                     12,598,000           9,276,000         31,137,000         20,321,000         37,998,000               16,662,000         26,122,000            11,075,000
Administrative & Waste Services             23,193,000         11,124,000          60,248,000         26,783,000         71,527,000               20,454,000         43,409,000            11,858,000
Educational Svcs                             5,343,000           2,952,000         13,613,000          7,028,000         15,118,000                5,091,000          9,725,000             3,022,000
Health & Social Services                    82,161,000         40,671,000         209,468,000         95,364,000        227,512,000               68,837,000        148,631,000            41,909,000
Arts- Entertainment & Recreation             9,504,000           4,913,000         24,354,000         11,553,000         26,599,000                8,398,000         17,324,000             5,109,000
Accomodation & Food Services                36,694,000         19,362,000          94,069,000         45,551,000        102,918,000               33,187,000         67,039,000            20,179,000
Other Services                              39,733,000         21,376,000         104,811,000         50,148,000        111,382,000               36,920,000         73,088,000            22,911,000
Government & Non NAICs                     114,804,000         61,094,000         308,135,000        146,982,000        330,705,000              108,912,000        219,725,000            68,141,000
Total                                   $1,962,086,000     $1,187,491,000      $5,114,061,000     $2,824,429,000     $5,629,118,000           $2,078,819,000     $3,644,673,000        $1,254,501,000
Multiplier                                          1.75              1.73               1.76               1.73               1.74                     1.72               1.74                  1.72
                                      2004 Dollars (Totals may not add due to rounding)


Output represents the net new increase in total production for all industries in the State supported by the project (given the stated
assumptions), and is a measure of overall economic activity. Output can also be thought of as the increase in the value of total sales
for the State, or “Gross Local Product”. Figures in the table include direct, indirect, and induced impacts.

.




State of Washington                                                                                                                                                     Deloitte Consulting, LLP
June 2004                                                                                       13
Detailed Summary of Results – Value Added (Income)

The value added (income) contribution for specific industry sectors follows below:

                                                           Table 6. Summary Value Added (Income) Results

                                              2004 - Pre-Construction                2006 - Construction           2008 - Finish Construction/Early Operations   2012 - Steady State/Ongoing Operations
               Industry                     High                Low                High               Low               High                      Low                High                  Low
Ag, Forestry, Fish & Hunting                 2,029,000           1,012,000          5,430,000          2,406,000          5,582,000                1,727,000          3,646,000             1,061,000
Mining                                         138,000              79,000            381,000            185,000             387,000                 139,000            257,000                89,000
Utilities                                    3,357,000           1,897,000          8,669,000          4,370,000          9,524,000                3,294,000          6,311,000             2,078,000
Construction                                23,252,000           3,007,000        205,292,000         29,518,000         28,570,000                7,873,000         14,993,000             6,829,000
Manufacturing                              514,933,000        259,596,000       1,115,199,000        572,699,000      1,415,697,000              422,645,000        949,270,000           257,054,000
Wholesale Trade                             54,040,000         36,714,000         148,037,000         89,092,000        155,748,000               64,854,000        100,536,000            38,965,000
Transportation & Warehousing                17,981,000         11,656,000          46,434,000         26,615,000         52,076,000               20,626,000         34,727,000            13,121,000
Retail Trade                                39,730,000         19,710,000         104,375,000         46,680,000        110,162,000               33,588,000         72,604,000            21,010,000
Information                                 72,601,000         15,942,000         177,266,000         39,075,000        247,404,000               31,478,000        138,226,000            16,580,000
Finance & Insurance                         34,316,000         19,054,000          90,617,000         45,197,000         96,568,000               33,015,000         62,854,000            20,143,000
Real Estate & Rental                        30,031,000         15,859,000          80,354,000         37,698,000         84,895,000               27,494,000         55,034,000            16,915,000
Professional-Scientific & Tech Svcs         39,658,000         26,454,000         110,790,000         63,435,000        114,218,000               47,241,000         74,070,000            28,931,000
Management of Companies                      9,065,000           6,674,000         22,404,000         14,621,000         27,341,000               11,989,000         18,795,000             7,969,000
Administrative & Waste Services             16,895,000           8,023,000         43,849,000         19,352,000         52,319,000               14,806,000         31,630,000             8,543,000
Educational Svcs                             3,342,000           1,849,000          8,520,000          4,401,000          9,459,000                3,190,000          6,085,000             1,894,000
Health & Social Services                    47,123,000         23,326,000         120,138,000         54,695,000        130,488,000               39,481,000         85,246,000            24,037,000
Arts- Entertainment & Recreation             5,900,000           3,042,000         15,113,000          7,152,000         16,506,000                5,197,000         10,751,000             3,162,000
Accomodation & Food Services                19,185,000         10,193,000          49,219,000         23,991,000         53,881,000               17,495,000         35,087,000            10,636,000
Other Services                              21,374,000         11,467,000          56,292,000         26,909,000         59,891,000               19,789,000         39,285,000            12,265,000
Government & Non NAICs                      93,944,000         50,340,000         254,690,000        121,870,000        272,458,000               90,541,000        181,576,000            56,846,000
Total                                   $1,048,893,000       $525,896,000      $2,663,067,000     $1,229,961,000     $2,943,173,000             $896,463,000     $1,920,984,000          $548,127,000
Multiplier                                          1.88              2.15               1.93               2.19                1.89                    2.18               1.88                  2.15
                                      2004 Dollars (Totals may not add due to rounding)


Value added (income) represents the net new increase in total payroll (including benefits) for all industries in the State supported by
the project given the stated assumptions. It includes wages and salaries of workers, self-employed individuals, and income received
by private business owners, doctors, lawyers, etc. Figures in the table include direct, indirect, and induced impacts.




State of Washington                                                                                                                                                     Deloitte Consulting, LLP
June 2004                                                                                       14
Detailed Summary of Results – Employment

The employment contribution for specific industry sectors follows below:

                                                             Table 7. Summary Employment Results

                                        2004 - Pre-Construction               2006 - Construction              2008 - Finish Construction/Early Operations     2012 - Steady State/Ongoing Operations
               Industry               High                   Low          High                    Low                 High                      Low                  High                  Low
Ag, Forestry, Fish & Hunting                   100                   50            260                   120                    280                       90                 180                    50
Mining                                           0                    0              10                    0                     10                        0                   10                     0
Utilities                                       10                   10              40                   20                     40                       10                   30                   10
Construction                                   590                   70         5,240                    750                    720                      200                 380                   170
Manufacturing                               4,370                 2,920        10,050                  6,640                12,740                    5,070                8,440                3,090
Wholesale Trade                                570                  390         1,570                    950                  1,660                      690               1,070                   410
Transportation & Warehousing                   330                  220            860                   490                    970                      380                 640                   240
Retail Trade                                1,160                   580         3,050                  1,370                  3,230                      980               2,130                   620
Information                                    270                   90            670                   210                    860                      160                 500                    90
Finance & Insurance                            430                  240         1,130                    560                  1,200                      410                 780                   250
Real Estate & Rental                           270                  140            720                   340                    770                      250                 500                   150
Professional-Scientific & Tech Svcs            650                  430         1,800                  1,030                  1,870                      770               1,220                   470
Management of Companies                        110                   80            270                   180                    330                      150                 230                   100
Administrative & Waste Services                480                  230         1,260                    550                  1,490                      420                 900                   240
Educational Svcs                               130                   70            340                   180                    380                      130                 250                    80
Health & Social Services                    1,120                   550         2,850                  1,300                  3,100                      940               2,020                   570
Arts- Entertainment & Recreation               250                  130            640                   310                    700                      220                 460                   140
Accomodation & Food Services                   830                  440         2,130                  1,030                  2,330                      750               1,520                   450
Other Services                                 620                  330         1,610                    770                  1,730                      560               1,130                   340
Government & Non NAICs                         820                  470         2,370                  1,170                  2,490                      890               1,690                   570
Total                                     13,130                 7,430        36,890                 17,950                36,890                   13,060               24,070                8,060
Multiplier                                   2.58                  2.59           2.33                  2.52                   2.61                     2.54                 2.59                 2.48


Employment represents the estimated total net new jobs created and supported by the project given the stated assumptions. Figures in
the table include direct, indirect, and induced impacts.




State of Washington                                                                                                                                                   Deloitte Consulting, LLP
June 2004                                                                              15
III. Glossary
   For the purposes of this report, specific terms are defined as follows:
            Direct Impacts:              Include output, income, and employment generated from the operation and construction of the
                                         facility. Includes both Boeing employees tied to the 7E7 project, specific jobs created at major
                                         suppliers of the project, and additional jobs created from direct expenditures of the project
                                         including construction, raw materials, fuel, tooling, income taxes etc. Direct impacts measure
                                         the changes in the employment and expenditures due to the operation of the facility itself.
            Employment:                  Represents the estimated total jobs created and supported by the project, on both a temporary and
                                         ongoing basis.

            Indirect Impacts:            Include output, income, and employment generated from the changes in inter-industry purchases
                                         (supplier to supplier) as they respond to the demands of the directly affected industries. Indirect
                                         impacts include business-to-business purchases arising from local spending for goods and
                                         services.

            Induced Impacts:             Include output, income, and employment effects on all local industries caused by the
                                         expenditures of household income generated by the direct and indirect impacts.

            Output:                      Represents the estimated increase in total production for all industries in the region supported by
                                         the project, and is a measure of overall economic activity. Output can also be thought of as the
                                         increase in the value of total sales for the State, or “Gross Local Product”.

            Value Added/Income:          Represents the estimated increase in total payroll (including benefits) for all industries in the
                                         region supported by the project. It includes wages and salaries of workers, self-employed
                                         individuals, and income received by private business owners, doctors, lawyers, etc.




   State of Washington                                                                                                    Deloitte Consulting, LLP
   June 2004                                                           16
IV. Appendix

  Detailed Assumptions
                                                                                                Table 8. Capital Assumptions:

                                                                                                                   Boeing Construction/Capital Spending

                        Pre-Construction (2004)
                                                                           Total Spend         Total Spend         % Spend in         % Spend in       Inflation     Period Spend        Period Spend
                                             Impact                                                                                                                                                                     Comments
                                                                          $2001 (High)         $2001 (Low)        Period (High)       Period (Low)       Rate        $2004 (High)        $2004 (Low)
                        Building Construction                             $400,000,000         $60,000,000            10%                  5%             2%         $42,448,000          $3,184,000 From 2004-2006
                        Machinery & Equipment Total                       $200,000,000         $65,000,000             5%                  5%             2%         $10,612,000          $3,449,000
                        Tooling Total (1)                                  $28,000,000          $4,000,000                                                                                            $7M-$1M (2001$) per year of cons. (2005-2008)
                                                Design (50%)               $14,000,000          $2,000,000          Negligible         Negligible         NA               $0                 $0      Assumed 50% of total tooling
                                           Construction (20%)               $5,600,000           $800,000           Negligible         Negligible         NA               $0                 $0      Assumed 20% of total tooling
                                              Assembly (20%)                $5,600,000           $800,000           Negligible         Negligible         NA               $0                 $0      Assumed 20% of total tooling
                                              Materials (10%)               $2,800,000           $400,000           Negligible         Negligible         NA               $0                 $0      Assumed 10% of total tooling

                        Mid-Construction (2006)
                                                                           Total Spend         Total Spend         % Spend in         % Spend in       Inflation     Period Spend        Period Spend
                                             Impact                                                                                                                                                                     Comments
                                                                          $2001 (High)         $2001 (Low)        Period (High)       Period (Low)       Rate        $2004 (High)        $2004 (Low)
                        Building Construction                             $400,000,000         $60,000,000            70%                 50%             2%         $297,138,000        $31,836,000 From 2004 to 2006 (Est. 25%-40% spend in 2005)
                        Machinery & Equipment Total                       $200,000,000         $65,000,000            80%                 65%             2%         $169,793,000        $44,836,000 (Est. 15%-30% spend in 2005)
                        Tooling Total (1)                                  $28,000,000          $4,000,000                                                                                            $7M-$1M (2001$) per year of cons. (2005-2008)
                                                Design (50%)               $14,000,000          $2,000,000             25%                25%             2%          $3,714,000           $531,000   Assumed 50% of total tooling
                                           Construction (20%)               $5,600,000           $800,000              25%                25%             2%          $1,486,000           $212,000   Assumed 20% of total tooling
                                              Assembly (20%)                $5,600,000           $800,000              25%                25%             2%          $1,486,000           $212,000   Assumed 20% of total tooling
                                              Materials (10%)               $2,800,000           $400,000              25%                25%             2%           $743,000            $106,000   Assumed 10% of total tooling

                        Finish Construction/Early Operations (2008)
                                                                 Total Spend                   Total Spend         % Spend in         % Spend in       Inflation     Period Spend        Period Spend
                                          Impact                                                                                                                                                                        Comments
                                                                 $2001 (High)                  $2001 (Low)        Period (High)       Period (Low)       Rate        $2004 (High)        $2004 (Low)
                        Building Construction                    $40,000,000                   $10,000,000            100%               100%             2%         $42,448,000         $10,612,000 Remaining increment of initial construction
                        Machinery & Equipment Total                Negligible                    Negligible            0%                  0%             NA              $0                  $0
                                      (1)
                        Tooling Total                            $28,000,000                    $4,000,000                                                                                            $7M-$1M (2001$) per year of cons. (2005-2008)
                                                  Design (50%)   $14,000,000                    $2,000,000             25%                25%             2%          $3,714,000           $531,000   Assumed 50% of total tooling
                                             Construction (20%)   $5,600,000                     $800,000              25%                25%             2%          $1,486,000           $212,000   Assumed 20% of total tooling
                                                Assembly (20%)    $5,600,000                     $800,000              25%                25%             2%          $1,486,000           $212,000   Assumed 20% of total tooling
                                                 Materials (10%)  $2,800,000                     $400,000              25%                25%             2%           $743,000            $106,000   Assumed 10% of total tooling

                        Steady State/Ongoing Operations (2012)
                                                                          Total Spend          Total Spend         % Spend in         % Spend in       Inflation     Period Spend        Period Spend
                                             Impact                                                                                                                                                                      Comments
                                                                          $2001 (High)         $2001 (Low)        Period (High)       Period (Low)       Rate        $2004 (High)        $2004 (Low)
                        Building Construction                             $20,000,000          $10,000,000            100%               100%             2%         $21,224,000         $10,612,000 Continual yearly construction
                        Machinery & Equipment Total                        Negligible           Negligible             0%                  0%             NA              $0                  $0
                        Tooling Total (1)                                                                                                                                                             $7M-$1M (2001$) per year of cons. (2005-2008)
                                                Design (50%)                Negligible           Negligible             0%                0%              NA               $0                 $0      Assumed 50% of total tooling
                                           Construction (20%)               Negligible           Negligible             0%                0%              NA               $0                 $0      Assumed 20% of total tooling
                                              Assembly (20%)                Negligible           Negligible             0%                0%              NA               $0                 $0      Assumed 20% of total tooling
                                              Materials (10%)               Negligible           Negligible             0%                0%              NA               $0                 $0      Assumed 10% of total tooling

                        (1)
                              Estimated total spend of $10M-$140M from 2005 to 2008 of which 10%-20% ($1M-$7M annually) is In-State. Almost all is labor (88%-94%), of which 50% contractors/50% direct), 6-12% is materials (assumed 10%).


  State of Washington                                                                                                                                                                                                              Deloitte Consulting, LLP
  June 2004                                                                                                                      17
                                                                              Top Supplier Construction/Capital Spending

Pre-Construction (2004)
                                               Total Spend      Total Spend       % Spend in         % Spend in     Inflation   Period Spend   Period Spend
                 Impact                                                                                                                                       Comments
                                              $2001 (High)      $2001 (Low)      Period (High)       Period (Low)     Rate      $2004 (High)   $2004 (Low)
Building Construction                         $100,000,000      $20,000,000           0%                  0%           2%        Negligible     Negligible

Mid-Construction (2006)
                                               Total Spend      Total Spend       % Spend in         % Spend in     Inflation   Period Spend   Period Spend
                 Impact                                                                                                                                       Comments
                                              $2001 (High)      $2001 (Low)      Period (High)       Period (Low)     Rate      $2004 (High)   $2004 (Low)
Building Construction                         $100,000,000      $20,000,000          100%               100%           2%       $106,121,000   $21,224,000

Finish Construction/Early Operations (2008)
                                         Total Spend            Total Spend       % Spend in         % Spend in     Inflation   Period Spend   Period Spend
               Impact                                                                                                                                         Comments
                                        $2001 (High)            $2001 (Low)      Period (High)       Period (Low)     Rate      $2004 (High)   $2004 (Low)
Building Construction                   $100,000,000            $20,000,000           0%                  0%           2%        Negligible     Negligible

Steady State/Ongoing Operations (2012)
                                               Total Spend      Total Spend       % Spend in         % Spend in     Inflation   Period Spend   Period Spend
                 Impact                                                                                                                                       Comments
                                              $2001 (High)      $2001 (Low)      Period (High)       Period (Low)     Rate      $2004 (High)   $2004 (Low)
Building Construction                         $100,000,000      $20,000,000           0%                  0%           2%        Negligible     Negligible

General Assumptions
All numbers provided by Boeing as 2001 dollars inflated to 2004 dollars
As per Boeing, expenditure and employment in State is similar to what would occur in 4-County area
All data from Boeing unless otherwise indicated
All wage figures inflated from 2001 dollars @                3.5%
All other relevant figures inflated from 2001 dollars @      2.0%
Totals may not add due to rounding




State of Washington                                                                                                                                           Deloitte Consulting, LLP
June 2004                                                                                                  18
                                                                               Table 9. Goods and Services Spending Assumptions
                                                                                                                     Boeing Goods/Services Spending
              Pre-Construction (2004)
                           Impact                                 Boeing                Boeing          % Spend in % Spend in               Inflation       Period Spend           Period Spend                          Comments
              Raw Materials (1)                                     $0                    $0               8%         5%                      3.5%               $0                     $0      Based on 5%-8% of annual recurring direct labor spend
                    Engine parts (50% of Total)                                                                                                                  $0                     $0      Estimated 50% of total raw materials
                     Other parts (50% of Total)                                                                                                                  $0                     $0      Estimated 50% of total raw materials
              Fuel                                             Negligible             Negligible              0%               0%              2%            Negligible             Negligible
              Administrative (2)                             $400,849,000           $124,492,000
                                    Computers                                                                20%              10%              2%            $85,077,000            $13,211,000        30%-65% of 35%-45% of all direct labor spend
                                      Supplies                                                               80%              60%              2%            $26,177,000             $4,404,000        10%-20% of 30%-45% of all direct labor spend
                                      Training                                                               10%               5%              2%             $6,544,000             $2,202,000        5% of 30%-45% of all direct labor spend
              Taxes
                                 Income Taxes                                                                                                                $37,595,000            $21,758,000        Estimated by State representatives - based on job creation

              Mid-Construction (2006)
                           Impact                                 Boeing                Boeing          % Spend in % Spend in               Inflation       Period Spend           Period Spend                          Comments
              Raw Materials (1)                                     $0                    $0               8%         5%                      3.5%               $0                     $0      Based on 5%-8% of annual recurring direct labor spend
                    Engine parts (50% of Total)                                                                                                                  $0                     $0      Estimated 50% of total raw materials
                     Other parts (50% of Total)                                                                                                                  $0                     $0      Estimated 50% of total raw materials
              Fuel                                             Negligible             Negligible              0%               0%             2.0%           Negligible             Negligible
              Administrative (2)                             $962,038,000           $311,230,000
                                    Computers                                                                20%              10%              2%           $204,184,000            $33,028,000        30%-65% of 35%-45% of all direct labor spend
                                      Supplies                                                               80%              60%              2%            $62,826,000            $11,009,000        10%-20% of 30%-45% of all direct labor spend
                                      Training                                                               10%               5%              2%            $15,706,000             $5,505,000        5% of 30%-45% of all direct labor spend
              Taxes
                                 Income Taxes                                                                                                               $110,539,000            $55,021,000        Estimated by State representatives - based on job creation

              Finish Construction/Early Operations (2008)
                           Impact                    Boeing                            Boeing           % Spend in % Spend in               Inflation       Period Spend           Period Spend                         Comments
              Raw Materials (1)                   $578,869,000                      $162,713,000           8%         5%                      3.5%          $39,045,000             $6,857,000 Based on 5%-8% of annual recurring direct labor spend
                     Engine parts (50% of Total)                                                                                                            $19,523,000             $3,429,000 Estimated 50% of total raw materials
                      Other parts (50% of Total)                                                                                                            $19,523,000             $3,429,000 Estimated 50% of total raw materials
              Fuel                                  $942,000                          $141,000              100%             100%             2.0%           $1,000,000              $150,000
              Administrative (2)                 $1,409,156,000                     $265,680,000
                                     Computers                                                               20%              10%              2%           $299,082,000            $28,194,000        30%-65% of 40%-60% of all direct labor spend
                                       Supplies                                                              80%              60%              2%            $92,025,000             $9,398,000        10%-20% of 40%-60% of all direct labor spend
                                       Training                                                              10%               5%              2%            $23,006,000             $4,699,000        5% of 40%-60% of all direct labor spend
              Taxes
                                  Income Taxes                                                                                                              $115,688,000            $41,894,000        Estimated by State representatives - based on job creation

              Steady State/Ongoing Operations (2012)
                           Impact                   Boeing                             Boeing           % Spend in % Spend in               Inflation       Period Spend           Period Spend                         Comments
              Raw Materials (1)                  $457,002,000                       $121,545,000           8%         5%                      3.5%          $33,427,000             $5,631,000 Based on 5%-8% of annual recurring direct labor spend
                    Engine parts (50% of Total)                                                                                                             $16,714,000             $2,816,000 Estimated 50% of total raw materials
                      Other parts (50% of Total)                                                                                                            $16,714,000             $2,816,000 Estimated 50% of total raw materials
              Fuel                                $1,885,000                          $942,000              100%             100%             2.0%           $2,000,000             $1,000,000
              Administrative (2)                 $767,798,000                       $127,356,000
                                     Computers                                                               20%              10%              2%           $162,959,000            $13,515,000        30%-65% of 40%-60% of all direct labor spend
                                       Supplies                                                              80%              60%              2%            $50,141,000             $4,505,000        10%-20% of 40%-60% of all direct labor spend
                                       Training                                                              10%               5%              2%            $12,535,000             $2,253,000        5% of 40%-60% of all direct labor spend
              Taxes
                                  Income Taxes                                                                                                               $78,979,000            $27,037,000        Estimated by State representatives - based on job creation
              (1) Based on direct recurring labor, which is calculated on labor assumptions tables (equates to $38-$56/hr for 2,080 hrs for 1,000-2,500 employees)
              (2) Based on 30%-45% of direct labor (recurring and nonrecurring), which is calculated on labor assumptions tables (utilizing hourly wages for 2,080 hrs and applicable direct employees for each period)



State of Washington                                                                                                                                                                                                                               Deloitte Consulting, LLP
June 2004                                                                                                                                    19
                                                                                    Top Supplier Goods/Services Spending

      Pre-Construction (2004)
                                             Supplier Direct Supplier Direct
                                                                             % Spend in % Spend in
                                             Recurring Labor Recurring Labor                               Inflation   Period Spend   Period Spend
                     Impact                                                    Period     Period                                                                            Comments
                                              Spend $2001     Spend $2001                                    Rate      $2004 (High)   $2004 (Low)
                                                                               (High)     (Low)
                                                 (High)          (Low)
      Raw Materials                                $0              $0           8%         5%               3.5%           $0             $0         Based on 5%-8% of annual recurring direct labor spend
           Engine parts (50% of Total)                                                                                     $0             $0         Estimated 50% of total raw materials
             Other parts (50% of Total)                                                                                    $0             $0         Estimated 50% of total raw materials

      Pre-Construction (2006)
                                             Supplier Direct Supplier Direct
                                                                             % Spend in % Spend in
                                             Recurring Labor Recurring Labor                               Inflation   Period Spend   Period Spend
                     Impact                                                    Period     Period                                                                            Comments
                                              Spend $2001     Spend $2001                                    Rate      $2004 (High)   $2004 (Low)
                                                                               (High)     (Low)
                                                 (High)          (Low)
      Raw Materials                                $0              $0           8%         5%               3.5%           $0             $0         Based on 5%-8% of annual recurring direct labor spend
           Engine parts (50% of Total)                                                                                     $0             $0
             Other parts (50% of Total)                                                                                    $0             $0

      Finish Construction/Early Operations (2008)
                                         Supplier Direct Supplier Direct
                                                                         % Spend in % Spend in
                                         Recurring Labor Recurring Labor                                   Inflation   Period Spend   Period Spend
                   Impact                                                  Period     Period                                                                                Comments
                                          Spend $2001     Spend $2001                                        Rate      $2004 (High)   $2004 (Low)
                                                                           (High)     (Low)
                                             (High)          (Low)
      Raw Materials                       $624,000,000    $183,040,000      8%         5%                   3.5%       $20,589,000     $3,478,000    Based on 5%-8% of annual recurring direct labor spend
             Engine parts (50% of Total)                                                                               $10,295,000     $1,739,000    Estimated 50% of total raw materials
              Other parts (50% of Total)                                                                               $10,295,000     $1,739,000    Estimated 50% of total raw materials

      Steady State/Ongoing Operations (2012)
                                         Supplier Direct Supplier Direct
                                                                         % Spend in % Spend in
                                         Recurring Labor Recurring Labor                                   Inflation   Period Spend   Period Spend
                   Impact                                                  Period     Period                                                                                Comments
                                          Spend $2001     Spend $2001                                        Rate      $2004 (High)   $2004 (Low)
                                                                           (High)     (Low)
                                             (High)          (Low)
      Raw Materials                       $624,000,000    $183,040,000      8%         5%                   3.5%       $20,589,000     $3,478,000    Based on 5%-8% of annual recurring direct labor spend
            Engine parts (50% of Total)                                                                                $10,295,000     $1,739,000    Estimated 50% of total raw materials
              Other parts (50% of Total)                                                                               $10,295,000     $1,739,000    Estimated 50% of total raw materials

      General Assumptions
      All numbers provided by Boeing as 2001 dollars inflated to 2004 dollars
      As per Boeing, expenditure and employment in State is similar to what would occur in 4-County area
      All data from Boeing unless otherwise indicated
      All wage figures inflated from 2001 dollars @             3.5%
      All other relevant figures inflated from 2001 dollars @   2.0%
      Totals may not add due to rounding




State of Washington                                                                                                                                                              Deloitte Consulting, LLP
June 2004                                                                                                  20
                                                                                       Table 10. Employment Assumptions

                                                                                          Boeing Employment, Wages and Benefits

Pre-Construction (2004)
                                                               Est.     Est.
                                                                                           Estimated    Estimated
                                         Estimated Estimated Hourly Hourly Estimate
                                                                                        $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
               Impact                    Headcount Headcount Wages+ Wages+ d Hours                                                                                                              Comments
                                                                                         and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                           (High)    (Low)   Benefits Benefits per Year
                                                                                            (High)        (Low)
                                                              (High)   (Low)
                                             A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                           (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                   Direct Nonrecurring     1,625     1,170     $62      $44     2,080 $209,560,000 $105,862,000 3.5%            $232,343,000            $117,371,000      65% of total 2,500 high/1,500 low nonrecurring jobs
                      Direct Recurring       0         0       $56      $38     2,080          $0           $0     3.5%              $0                       $0
  Indirect Recurring (Misc. Overhead)        0         0       $56      $38     2,080          $0           $0     3.5%              $0                       $0
                              Support       875       630      $29      $20     2,080    $52,780,000 $26,536,000   3.5%          $58,518,000             $29,420,000      35% of total 2,500 high/1,500 low nonrecurring jobs

Mid-Construction (2006)
                                                               Est.     Est.
                                                                                           Estimated    Estimated
                                         Estimated Estimated Hourly Hourly Estimate
                                                                                        $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
               Impact                    Headcount Headcount Wages+ Wages+ d Hours                                                                                                              Comments
                                                                                         and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                           (High)    (Low)   Benefits Benefits per Year
                                                                                            (High)        (Low)
                                                              (High)   (Low)
                                             A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                           (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                   Direct Nonrecurring     3,900     2,925     $62      $44     2,080 $502,944,000 $264,654,000 0.0%            $557,623,000            $293,427,000      65% of total 6,000 high/4,500 low nonrecurring jobs
                      Direct Recurring       0         0       $56      $38     2,080          $0           $0     0.0%              $0                       $0
  Indirect Recurring (Misc. Overhead)        0         0       $56      $38     2,080          $0           $0     0.0%              $0                       $0
                              Support      2,100     1,575     $29      $20     2,080 $126,672,000 $66,339,000     0.0%         $140,444,000             $73,551,000      35% of total 6,000 high/4,500 low nonrecurring jobs

Finish Construction/Early Operations (2008)
                                                             Est.     Est.
                                                                                         Estimated    Estimated
                                       Estimated Estimated Hourly Hourly Estimate
                                                                                      $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
               Impact                  Headcount Headcount Wages+ Wages+ d Hours                                                                                                               Comments
                                                                                       and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                         (High)    (Low)   Benefits Benefits per Year
                                                                                          (High)        (Low)
                                                            (High)   (Low)
                                           A         B        C        D        E            F            G        H                I                       J
Employment (Wages and Benefits)                                                         (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                   Direct Nonrecurring   1,950      975      $62      $44     2,080 $251,472,000 $88,218,000     0.0%         $278,812,000            $97,809,000       65% of 3,000 high/1,500 low nonrecurring jobs
                      Direct Recurring   2,500     1,000     $56      $38     2,080 $290,160,000 $78,416,000     0.0%         $321,706,000            $86,941,000       Avg. at midpoint of yr
  Indirect Recurring (Misc. Overhead)     375       100      $56      $38     2,080    $43,524,000   $7,842,000  0.0%          $48,256,000             $8,694,000       Est. at 10%-15% of $2008 recurring wages
                                                                                                                                                                        35% of 3,000 high/1,500 low nonrecurring jobs + 50%
                              Support    2,488     1,075     $29      $20     2,080 $150,046,000 $45,279,000     0.0%         $166,359,000            $50,202,000       over total recurring

Steady State/Ongoing Operations (2012)
                                                               Est.     Est.
                                                                                           Estimated    Estimated
                                         Estimated Estimated Hourly Hourly Estimate
                                                                                        $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
               Impact                    Headcount Headcount Wages+ Wages+ d Hours                                                                                                               Comments
                                                                                         and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                           (High)    (Low)   Benefits Benefits per Year
                                                                                            (High)        (Low)
                                                              (High)   (Low)
                                             A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                           (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                   Direct Nonrecurring       0         0       $62      $44     2,080          $0           $0     0.0%              $0                       $0
                      Direct Recurring     2,500     1,000     $56      $38     2,080 $290,160,000 $78,416,000     0.0%         $321,706,000            $86,941,000       Avg. at midpoint of yr
  Indirect Recurring (Misc. Overhead)       375       100      $56      $38     2,080    $43,524,000   $7,842,000  0.0%          $48,256,000             $8,694,000       Est. at 10%-15% of $2012 recurring wages
                              Support      1,438      550      $29      $20     2,080    $86,710,000 $23,166,000   0.0%          $96,137,000            $25,685,000       50% additional jobs over total recurring

State of Washington                                                                                                                                                                                 Deloitte Consulting, LLP
June 2004                                                                                                          21
                                                                                             Top Supplier Employment, Wages and Benefits

Pre-Construction (2004)
                                                          Est.     Est.
                                                                                      Estimated    Estimated
                                    Estimated Estimated Hourly Hourly Estimate
                                                                                   $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
             Impact                 Headcount Headcount Wages+ Wages+ d Hours                                                                                            Comments
                                                                                    and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                      (High)    (Low)   Benefits Benefits per Year
                                                                                       (High)        (Low)
                                                         (High)   (Low)
                                        A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                      (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                Direct Nonrecurring    800       500      $62      $44     2,080 $103,168,000 $45,240,000     3.5%         $114,384,000            $50,158,000
                   Direct Recurring     0         0       $56      $38     2,080          $0           $0     2.0%              $0                       $0

Mid-Construction (2006)
                                                          Est.     Est.
                                                                                      Estimated    Estimated
                                    Estimated Estimated Hourly Hourly Estimate
                                                                                   $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
             Impact                 Headcount Headcount Wages+ Wages+ d Hours                                                                                            Comments
                                                                                    and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                      (High)    (Low)   Benefits Benefits per Year
                                                                                       (High)        (Low)
                                                         (High)   (Low)
                                        A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                      (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                Direct Nonrecurring    800       500      $62      $44     2,080 $103,168,000 $45,240,000     0.0%         $114,384,000            $50,158,000
                   Direct Recurring     0         0       $56      $38     2,080          $0           $0     0.0%              $0                       $0

Finish Construction/Early Operations (2008)
                                                          Est.     Est.
                                                                                      Estimated    Estimated
                                    Estimated Estimated Hourly Hourly Estimate
                                                                                   $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
             Impact                 Headcount Headcount Wages+ Wages+ d Hours                                                                                            Comments
                                                                                    and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                      (High)    (Low)   Benefits Benefits per Year
                                                                                       (High)        (Low)
                                                         (High)   (Low)
                                        A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                      (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                Direct Nonrecurring     0         0       $62      $44     2,080          $0           $0     0.0%              $0                       $0
                   Direct Recurring   2,000      800      $56      $38     2,080 $232,128,000 $62,733,000     0.0%         $257,364,000            $69,553,000

Steady State/Ongoing Operations (2012)
                                                          Est.     Est.
                                                                                      Estimated    Estimated
                                    Estimated Estimated Hourly Hourly Estimate
                                                                                   $2001 Wages $2001 Wages Inflation    Period Wages and        Period Wages and
             Impact                 Headcount Headcount Wages+ Wages+ d Hours                                                                                            Comments
                                                                                    and Benefits and Benefits Rate    Benefits $2004 (High)    Benefits $2004 (Low)
                                      (High)    (Low)   Benefits Benefits per Year
                                                                                       (High)        (Low)
                                                         (High)   (Low)
                                        A         B        C        D        E            F            G        H                I                        J
Employment (Wages and Benefits)                                                      (A x C x E)  (B x D x E)        (F x (1+H)^(2004-2001)) (G x (1+H)^(2004-2001))
                Direct Nonrecurring     0         0       $62      $44     2,080          $0           $0     0.0%              $0                       $0
                   Direct Recurring   2,000      800      $56      $38     2,080 $232,128,000 $62,733,000     0.0%         $257,364,000            $69,553,000

General Assumptions
All numbers provided by Boeing as 2001 dollars inflated to 2004 dollars
As per Boeing, expenditure and employment in State is similar to what would occur in 4-County area
All data from Boeing unless otherwise indicated
All wage figures inflated from 2001 dollars @          3.5%
All other relevant figures inflated from 2001 dollars @ 2.0%
Totals may not add due to rounding



State of Washington                                                                                                                                                    Deloitte Consulting, LLP
June 2004                                                                                                        22
Limitations
All information contained in this report is the sole representation and responsibility of the State of Washington and Boeing.

The financial information and analysis herein does not constitute an examination of compilation of prospective financial information,
nor a fairness or solvency opinion in accordance with standards established by the American Institute of Certified Public Accountants.
Accordingly, we express no opinion or other form of assurance on the market or financial feasibility of the proposed development or
upon the financial information and analyses contained herein. Further, Deloitte does not assume any responsibility for any financial
and tax reporting with respect to the information contained herein, and has no responsibility to address any legal matters or questions
of law.

This analysis is based on information and estimates available through the date of this report, provided to us by Boeing and the State of
Washington as indicated herein. We cannot confirm or warrant the completeness or accuracy of the information provided by these
sources.

Estimates, by their very nature, are inherently subject to both known and unknown risks, uncertainties, and other factors that may
cause actual results to vary materially from the estimates, including but not limited to general economic and business conditions,
demographic and technology changes, existing and future government regulations and tax policies, active and potential future
competition, and other relevant factors.

This report may not be included, referenced, or incorporated by reference in any prospectus, financial placement, private placement
memorandum, or other financing-related document. Furthermore, no reference to Deloitte or this report may be made in any filing
with the Securities and Exchange Commission or any other federal, state, or foreign regulatory agency.


IMPLAN

The employment and income projections in this report were developed using IMPLAN (Impact Analysis for Planning), a model
originally developed to assist the U.S. Forest Service in land and resource management planning. IMPLAN was developed
independently and is a respected and widely acknowledged tool for this type of analysis.




State of Washington                                                                                                 Deloitte Consulting, LLP
June 2004                                                          23

								
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