Boeing 2014 Annual Report Download - page 47

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35
Earnings From Operations
N&SS earnings from operations in 2014 decreased by $21 million compared with 2013 primarily due to
lower earnings of $84 million on several commercial satellite programs related to lower milestone volume,
partially offset by higher earnings of $68 million due to improved performance on several government
satellite programs and our United Launch Alliance (ULA) joint venture as well as higher volume on
Commercial Crew during the initial performance period. Net favorable cumulative contract catch-up
adjustments were $12 million higher in 2014 than in 2013.
N&SS earnings from operations in 2013 increased by $157 million or 28% compared with 2012 primarily
due to higher revenues and mix in our civil and commercial satellite programs and the SLS program. These
increases were partially offset by lower earnings from our United Space Alliance (USA) joint venture
reflecting a gain of $39 million recorded in the third quarter of 2012 related to the termination and settlement
of USA's defined benefit pension plans. The impact of net favorable cumulative contract catch-up
adjustments was not significant in 2013.
N&SS earnings from operations include equity earnings of $211 million, $171 million and $180 million
primarily from the ULA joint venture in 2014, 2013 and 2012, respectively.
Backlog
N&SS total backlog was $14,922 million at December 31, 2014, reflecting a decrease of 6% from December
31, 2013 primarily due to revenue recognized on contracts awarded in prior years, partially offset by current
year contract awards for the Commercial Crew, commercial satellite and missile defense system programs.
N&SS total backlog was $15,908 at December 31, 2013, reflecting a decrease of 7% from December 31,
2012 primarily due to revenues recognized on contracts awarded in prior years, partially offset by
government and commercial satellite contract awards.
Additional Considerations
United Launch Alliance See the discussion of Indemnifications to ULA and Financing Commitments in
Notes 6, 11, and 12 to our Consolidated Financial Statements.
Sea Launch See the discussion of the Sea Launch receivables in Note 10 to our Consolidated Financial
Statements.
LightSquared See the discussion of the LightSquared, LP receivables in Note 5 to our Consolidated
Financial Statements.
Global Services & Support
Results of Operations
(Dollars in millions)
Years ended December 31, 2014 2013 2012
Revenues $9,367 $9,400 $9,308
% of total company revenues 10% 11% 11%
Earnings from operations $1,131 $1,012 $1,019
Operating margins 12.1% 10.8% 10.9%
Contractual backlog $16,896 $16,245 $17,092
Unobligated backlog $922 $1,473 $799