Boeing 2010 Annual Report Download - page 23

Competition within our markets may reduce our future contracts and sales.
The markets in which we operate are highly competitive and one or more of our competitors may have
more extensive or more specialized engineering, manufacturing and marketing capabilities than we do
in some areas. In our Commercial Airplanes business, we anticipate increasing competition among
non-U.S. aircraft manufacturers and service providers in one or more of our market segments. In our
BDS business, we anticipate that the effects of defense industry consolidation and new priorities,
including long-term cost competitiveness, of our U.S. DoD customer will intensify competition for many
of our products and services. Furthermore, we are facing increased international competition and
cross-border consolidation of competition. There can be no assurance that we will be able to compete
successfully against our current or future competitors or that the competitive pressures we face will not
result in reduced revenues and market share.
We derive a significant portion of our revenues from non-U.S. sales and are subject to the risks
of doing business in other countries.
In 2010, sales to non-U.S. customers accounted for 41% of our revenues. We expect that non-U.S.
sales will continue to account for a significant portion of our revenues for the foreseeable future. As a
result, we are subject to risks of doing business internationally, including:
Šchanges in regulatory requirements;
Šdomestic and international government policies, including requirements to expend a portion of
program funds locally and governmental industrial cooperation or participation requirements;
Šfluctuations in international currency exchange rates;
Švolatility in international political and economic environments and changes in non-U.S. national
priorities and budgets, which can lead to delays or fluctuations in orders;
Šthe complexity and necessity of using non-U.S. representatives and consultants;
Šthe uncertainty of the ability of non-U.S. customers to finance purchases;
Šuncertainties and restrictions concerning the availability of funding credit or guarantees;
Šimposition of taxes, export controls, tariffs, embargoes and other trade restrictions;
Šthe difficulty of management and operation of an enterprise spread over various countries;
Šcompliance with a variety of international laws, as well as U.S. laws affecting the activities of U.S.
companies abroad; and
Šeconomic and geopolitical developments and conditions.
While the impact of these factors is difficult to predict, any one or more of these factors could adversely
affect our operations in the future.
The outcome of litigation and of government inquiries and investigations involving our
business is unpredictable and an adverse decision in any such matter could result in
significant monetary payments and have a material adverse affect on our financial position and
results of operations.
We are involved in a number of litigation matters. These claims may divert financial and management
resources that would otherwise be used to benefit our operations. No assurances can be given that the
results of these matters will be favorable to us. An adverse resolution of any of these lawsuits could
have a material adverse affect on our financial position and results of operations. In addition, we are
sometimes subject to government inquiries and investigations of our business due, among other
11