Boeing 2014 Annual Report Download - page 6

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as well as 10,998 weapons systems and
five satellites.
New orders worth nearly $26 billion were
spread across our aircraft, satellites, weap-
ons, spacecraft and services businesses,
increasing our backlog to $62 billion.
International business was 28 percent of
revenue and 36 percent of year-end back-
log, which represents a healthy, diverse
pipeline of future work.
Defense-related milestones included:
A successful Global Missile Defense
intercept test.
First flight of the 767-2C test aircraft for
the KC-46 Tanker program.
Selection of the V-22 by Japan to fulfill
its tiltrotor aircraft requirements.
A five-year contract to support
Australia’s Airborne Early Warning and
Control aircraft plus delivery of the first
upgraded AWACS aircraft to France.
Three additional proving flights of the
liquid-hydrogen–powered Phantom Eye.
We also solidified our leadership in manned
space flight with a major win on NASA’s
Commercial Crew transport program,
which will shuttle passengers and cargo
to the International Space Station.
Other space-related milestones included:
Return to Earth of the reusable, un-
manned X-37B Orbital Test Vehicle
after a record 674 days in orbit.
On-orbit testing of the first Inmarsat-5
satellite.
The successful Delta IV rocket launch
of the Orion spacecraft.
The strength of our defense, space and
security business stems from a large,
diverse portfolio of reliable, proven and
affordable products and services; the
growing global distribution of our backlog;
and our people’s enduring commitment to
continuous productivity and affordability on
behalf of our customers.
We remain highly confident of our pros-
pects for continued success in a global
defense, space and security market worth
more than $2.7 trillion over the next decade.
One Boeing Competitiveness
Mindful of increasing global competition
and customer demands for more
capable, efficient and reliable products
and services—all for less money and at
lower technical and schedule risk—our
employees are working together with a
One Boeing mindset to drive incremental
and step-function improvements in
quality, productivity and safety.
Among the advances in our companywide
initiatives in 2014:
Our “Partnering for Success” program
grew to include more than 500 supplier
companies with whom we are working
to reduce costs and improve first-time
quality and component reliability.
Committed savings through 2017
exceed several billion dollars, with
long-term savings even higher.
To break the upward spiral of develop-
ment costs, our engineering teams
are focusing on designs that are more
producible, using more common sys-
tems and parts, and adhering to our
disciplined, gated development pro-
cess. Tangible benefits of these efforts
are evident on our 787, 737 MAX and
777X development programs. For
example, more than 90 percent of the
787-10 will be common with the 787-9,
which will drive significant efficiencies
through the development process,
production system and supply chain.
Progress in strengthening our safety
culture included reducing hazards that
cause the most serious injuries and
implementing new enterprise stan-
dards for safety tools and equipment.
Unprecedented long-term labor contract
extensions we secured during 2014 in
the Pacific Northwest, St. Louis and
Philadelphia will help ensure business
continuity for customers, reduce program
execution risks, provide favorable pay
and benefits for employees, and improve
the competitiveness of our programs
and sites. These contracts, along with
changes announced for nonunion
employees, also reduce the long-term
threat to our balance sheet from
defined-benefit pensions. Nearing our
Commercial Airplanes and
Services Markets (2014–2023)
($ in billions)
60
1,130 1,071
600
460
130
Defense, Space & Security
Served Markets (2014–2023)
($ in billions)
1,610
1,150
2,760
Investing in Our Communities
$76M
Business
$71M
Charitable
$188 million
$41M
Employee
Increased production rates,
superior new airplanes and
continued innovation will
keep Boeing competitive
across addressable markets,
valued at $3.5 trillion over
the next 10 years.
In global markets for defense,
space and security products and
services, Boeing remains well
positioned with a balanced mix of
proven affordable products and
emerging game-changing solutions.
1 Regional Jets
2 Lg. Wide-body
3 Med. Wide-body
4 Sm. Wide-body
5 Single-Aisle
6 Services
Services
Products
Boeing helps enhance lives and communities
worldwide, investing $188 million, as well
as thousands of volunteer hours, where we
live and work.