Boeing 2011 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2011 Boeing annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

addition, initial revenues on the USAF KC-46A Tanker were recognized in 2011. Lower volumes on the
F-22, F/A-18 and Apache programs combined to reduce revenues by $613 million. Boeing production
deliveries on the F-22 program ended in 2011. There were no new-build Apache deliveries in 2011,
however, new-build deliveries are expected to resume in 2012.
BMA revenues decreased by less than 1% in 2010 compared with 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.
Deliveries of new-build production aircraft, excluding remanufactures and modifications, were as
follows:
Years ended December 31, 2011 2010 2009
F/A-18 Models 49 50 49
F-15E Eagle 15 13 13
C-17 Globemaster 13 14 16
CH-47 Chinook 32 20 11
AEW&C 34
KC-767 International Tanker 312
AH-64 Apache 13 23
T-45TS Goshawk 7
Total new-build production aircraft 115 115 121
Operating Earnings
BMA operating earnings increased by $276 million in 2011 primarily due to $236 million of higher
earnings on the AEW&C program reflecting the initial Peace Eye deliveries and lower reach-forward
loss provisions in 2011 on the AEW&C Wedgetail and Peace Eagle contracts. Lower reach-forward
losses of $49 million on KC-767 International Tanker program and lower research and development
also contributed to the earnings improvements. BMA operating earnings decreased by $277 million in
2010 primarily due to lower deliveries of C-17 aircraft and less favorable pricing and mix on the C-17
program.
Research and Development
The BMA segment continues to focus research and development resources to leverage customer
knowledge, technical expertise and system integration of manned and unmanned systems that provide
innovative solutions to meet the warfighter’s enduring needs. Research and development expense
decreased in 2011 primarily due to lower International Tanker development costs. Research and
development activities utilize our capabilities in architectures, system-of-systems integration and
weapon systems technologies to develop solutions which are designed to better prepare us to meet
customers’ needs in U.S. and international growth areas such as: military-commercial derivatives,
rotorcraft, global strike, missiles and unmanned airborne systems, and surveillance and engagement
systems. The products of our research and development support both new manned and unmanned
systems as well as enhanced versions of existing fielded products. Investments support vertical
integration of our product line in areas such as autonomous operation of unmanned systems,
advanced sensors and electronic warfare. These efforts focus on increasing mission effectiveness,
interoperability, reliability and reducing the cost of ownership.
Backlog
BMA total backlog in 2011 decreased by 6% from 2010, primarily due to current year deliveries and
sales on multi-year contracts awarded in prior years partially offset by BMA’s share of the USAF
32