Boeing 2010 Annual Report Download - page 15

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research, development and engineering skills, as well as certain trademarks and other intellectual
property rights, also make an important contribution to our business. While our intellectual property
rights in the aggregate are important to the operation of each of our businesses, we do not believe that
our business would be materially affected by the expiration of any particular intellectual property right
or termination of any particular intellectual property patent license agreement.
Non-U.S. Revenues
See Note 21 to our Consolidated Financial Statements for information regarding non-U.S. revenues.
Research and Development
Research and development expenditures involve experimentation, design, development and related
test activities for defense systems, new and derivative jet aircraft including both commercial and
military, advanced space and other company-sponsored product development. These are expensed as
incurred including amounts allocable as reimbursable overhead costs on U.S. government contracts.
Our total research and development expense amounted to $4.1 billion, $6.5 billion and $3.8 billion in
2010, 2009 and 2008, respectively. The 2008 amount is net of 787-related research and development
cost sharing payments from suppliers of $50 million. Research and development expense in 2009
included $2.7 billion of production costs related to the first three flight test 787 aircraft that cannot be
sold due to the inordinate amount of rework and unique and extensive modifications that would be
made to the aircraft.
Research and development costs also include bid and proposal efforts related to government products
and services, as well as costs incurred in excess of amounts estimated to be recoverable under cost-
sharing research and development agreements. Bid and proposal costs were $355 million, $343 million
and $330 million in 2010, 2009 and 2008, respectively.
Research and development highlights for each of the major business segments are discussed in more
detail in Segment Results of Operations and Financial Condition on pages 22 – 38.
Employees
Total workforce level at December 31, 2010 was 160,500.
As of December 31, 2010, our principal collective bargaining agreements were with the following
unions:
Union
Percent of our
Employees
Represented Status of the Agreements with the Union
The International Association of
Machinists and Aerospace
Workers (IAM)
19% We have two major agreements; one expiring in
September of 2012 and one in January of 2015.
The Society of Professional
Engineering Employees in
Aerospace (SPEEA)
13% We have two major agreements expiring in October
of 2012.
The United Automobile,
Aerospace and Agricultural
Implement Workers of America
(UAW)
2% We have two major agreements; one expiring in
October of 2014 and one in February of 2015.
3