Boeing 2010 Annual Report Download - page 44

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and cost impacts, which could increase our estimated cost to perform the work or reduce our estimated
price, either of which could result in a material charge. These programs are ongoing, and while we
believe the cost and fee estimates incorporated in the financial statements are appropriate, the
technical complexity of these programs creates financial risk as additional completion costs may
become necessary or scheduled delivery dates could be extended, which could trigger termination
provisions, the loss of satellite in-orbit incentive payments, or other financially significant exposure.
These programs have risk for reach-forward losses if our estimated costs exceed our estimated
contract revenues. Examples of our fixed-price development programs include Airborne Early
Warning and Control (AEW&C), P-8I, KC-767 International Tanker, and commercial and military
satellites.
Boeing Military Aircraft
Operating Results
(Dollars in millions)
Years ended December 31, 2010 2009 2008
Revenues $14,238 $14,304 $13,445
% of Total company revenues 22% 21% 22%
Earnings from operations $ 1,258 $ 1,528 $ 1,294
Operating margins 8.8% 10.7% 9.6%
Research and development $ 589 $ 582 $ 486
Contractual backlog $25,094 $26,354 $25,802
Unobligated backlog $ 8,297 $ 9,297 $10,035
Revenues BMA revenues decreased by less than 1% in 2010 and increased by 6% in 2009. Lower
revenues in 2010 on the C-17, Apache and T-45 programs were nearly offset by higher Chinook,
F/A-18 and AEW&C revenues. The increase of $859 million in 2009 was primarily due to higher
revenues on the Apache, V-22, Chinook, F/A-18, and Proprietary programs, partly offset by lower
revenues on the F-22 and several weapons programs.
Deliveries of new-build production aircraft, excluding remanufactures and modifications, were as
follows:
Years ended December 31, 2010 2009 2008
F/A-18 Models 50 49 45
F-15E Eagle 13 13 14
C-17 Globemaster 14 16 16
AH-64 Apache 1323 3
CH-47 Chinook 20 11 12
AEW&C 4
KC-767 Tanker 122
T-45TS Goshawk 77
Total new-build production aircraft 115 121 99
Operating Earnings BMA earnings decreased by $270 million in 2010 primarily due to lower deliveries
of C-17 aircraft and less favorable pricing and mix on the C-17 program. BMA operating earnings
increased by $234 million in 2009 partly due to higher deliveries on several programs and volume,
partially offset by a change in delivery mix. Operating earnings in both years were negatively impacted
by charges recorded on the AEW&C and KC-767 International Tanker programs.
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