Boeing 2009 Annual Report Download - page 32

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Other Earnings Items
(Dollars in millions)
Years ended December 31, 2009 2008 2007
Earnings from operations $2,096 $ 3,950 $ 5,830
Other (expense)/income, net (26) 247 484
Interest and debt expense (339) (202) (196)
Earnings before income taxes 1,731 3,995 6,118
Income tax expense (396) (1,341) (2,060)
Net earnings from continuing operations $1,335 $ 2,654 $ 4,058
Other income decreased by $273 million and $237 million in 2009 and 2008. The decreases are
primarily driven by a reduction in investment income as a result of lower interest rates and lower
investment balances. Interest and debt expense increased by $137 million compared with 2008 due to
additional debt issued in 2009.
For a discussion related to Income Taxes, see Note 5.
Backlog
Our backlog at December 31 was as follows:
(dollars in millions) 2009 2008 2007
Contractual backlog:
Commercial Airplanes $250,476 $278,575 $255,176
Boeing Defense, Space & Security:
Boeing Military Aircraft 26,311 25,710 22,974
Network & Space Systems 7,746 8,868 9,207
Global Services & Support 11,967 10,707 9,607
Total Boeing Defense, Space & Security 46,024 45,285 41,788
Total contractual backlog $296,500 $323,860 $296,964
Unobligated backlog $ 19,058 $ 28,066 $ 30,173
Contractual backlog of unfilled orders excludes purchase options, announced orders for which
definitive contracts have not been executed, and unobligated U.S. and non-U.S. government contract
funding. The decrease in contractual backlog during 2009 was due to deliveries in excess of orders,
changes in projected revenue escalation and cancellations of orders. The increase in backlog during
2008 was due to orders in excess of deliveries for our 737, 767, 777 and 787 programs.
Unobligated backlog includes U.S. and non-U.S. government definitive contracts for which funding
have not been authorized. The decrease in unobligated backlog during 2009 is primarily due to
decreases at BDS of $8,904 million compared with 2008 partly due to a partial termination for
convenience by the U.S. Army of the Brigade Combat Team Modernization (BCTM) (formerly the
Future Combat Systems (FCS)) System Development and Demonstration contract relating to Manned
Ground Vehicles and associated systems and equipment. Approved funding of existing multi-year
contracts including the BCTM, V-22, Chinook, Proprietary and Ground-Based Midcourse Defense
(GMD) programs also reduced unobligated backlog. The decrease in Unobligated backlog during 2008
is primarily due to decreases at BDS of $2,174 million compared with 2007 primarily due to funding of
existing multi-year contracts including the F/A-18, BCTM and F-22 programs. These decreases were
partially offset by multi-year procurement contracts awarded on the V-22 and Chinook programs.
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