Boeing 2011 Annual Report Download - page 24

Šthe uncertainty of the ability of non-U.S. customers to finance purchases, including the availability
of financing from the U.S. Export-Import Bank;
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 many 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 effect 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 impact 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
things, to our business relationships with the U.S government, the heavily regulated nature of our
industry, and in the case of environmental proceedings, our ownership of certain property. Any such
inquiry or investigation could potentially result in an adverse ruling against us, which could result in
significant monetary payments (including possible environmental remediation costs) and have a
material impact on our financial position and operating results.
A significant portion of our and Boeing Capital Corporation’s customer financing portfolio is
concentrated among certain customers based in the United States, and in certain types of
Boeing aircraft, which exposes us to concentration risks.
A significant portion of our customer financing portfolio is concentrated among certain customers and
in distinct geographic regions, particularly in the United States. Our portfolio is also concentrated by
varying degrees across Boeing aircraft product types, most notably 717 aircraft. If one or more
customers holding a significant portion of our portfolio assets experiences financial difficulties or
otherwise defaults on or does not renew its leases with us at their expiration, and we are unable to
redeploy the aircraft on reasonable terms, or if the types of aircraft that are concentrated in our
portfolio suffer greater than expected declines in value, our earnings, cash flows and/or financial
position could be materially adversely affected.
We may be unable to obtain debt to fund our operations and contractual commitments at
competitive rates, on commercially reasonable terms or in sufficient amounts.
We depend, in part, upon the issuance of debt to fund our operations and contractual commitments. As
of December 31, 2011, our airplane financing commitments totaled $15,866 million, as compared to
$9,865 million as of December 31, 2010. If we require additional funding in order to fund outstanding
financing commitments or meet other business requirements, our market liquidity may not be sufficient.
A number of factors could cause us to incur increased borrowing costs and to have greater difficulty
accessing public and private markets for debt. These factors include disruptions or declines in the
12