Boeing 2005 Annual Report Download

Download and view the complete annual report

Please find the complete 2005 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 100

  • 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

The Boeing Company 2005 Annual Report
shaping the future
The Boeing Company 2005 Annual Report

Table of contents

  • Page 1
    The Boeing Company 2005 Annual Report The Boeing Company 2005 Annual Report shaping the future

  • Page 2
    ... Shareholders Executive Council Boeing Commercial Airplanes Boeing Integrated Defense Systems 2006 Initiative Spotlight: Lean+ Serving Our Customers Global Presence Technololgy Development Financials Selected Products, Programs and Services Board of Directors Company Officers Shareholder Information

  • Page 3
    ... revenue growth by 5 percent and increased net income by 37 percent over 2004, despite strikes at two of our business units and moderating defense markets. � Captured a Boeing record 1,002 net (1,029 gross) commercial airplane orders, proving we have the right market and product strategies...

  • Page 4
    W. James McNerney, Jr., Chairman, President and Chief Executive Officer � 2

  • Page 5
    ... successful for our Commercial Airplanes business, which set a Boeing record with 1,002 net (1,029 gross) orders for new airplanes. Our Integrated Defense Systems business showed strong financial performance - with record revenues, earnings and margins - and continued its success in building...

  • Page 6
    ... accelerated top­line growth and improved margins and cash generation. No substantial business I know of has been able to achieve long­term growth without continuing impressive gains in productivity. Just as companies seek to achieve gains in productivity, lean man­ ufacture and quality through...

  • Page 7
    ...the purchasing power of the entire company. We aim to achieve greater economies of scale and to make the most rational use of the worldwide Boeing supply chain to drive down costs and improve both quality and response time for ourselves and our customers. Boeing Initiatives To accelerate growth and...

  • Page 8
    ...to new levels. The Boeing Company aspires to deliver financial results that match the quality of our people and our technology, which is a meaningful im­ provement from where we are today. Our abiding goal is to deliver the greatest value to our customers and shareholders. In Closing No account of...

  • Page 9
    ... M. Jamieson Senior Vice President, Chief Technology Officer James A. Bell Executive Vice President, Chief Financial Officer Thomas R. Pickering Senior Vice President, International Relations Tod R. Hullin Senior Vice President, Communications Alan R. Mulally Executive Vice President, President...

  • Page 10
    ...-piece composite barrel team designed and built tools and software that were used to prove new assembly technologies and processes in November when they joined two barrels of the 787 Dreamliner for the first time. Right: The 777-200LR, the world's longest-range commercial jetliner, set a new nonstop...

  • Page 11
    ...busi­ ness. Our Renton, Washington, passengers a better flight experience. Boeing offers air­ planes covering the market from 100 to 450 seats, as well as the most complete line of cargo freighters available. Our lighter, more fuel­efficient and more cost­effective airplanes offer the best value...

  • Page 12
    ... cur­ rent environment by working with our customers, partners and suppliers to drive Lean principles across current development and production programs. We are also work­ ing to develop products and services in the most effective ways possible by ensuring the right technologies and pro­ cesses...

  • Page 13
    ...networking. Left: The C-17's ability to operate from short, austere, even dirt airstrips makes it the airlifter of choice in global mobility. Far Left: The F/A-18E/F Super Hornet is a next-generation, true multirole strike fighter that can satisfy the tactical mission requirements of any navy or air...

  • Page 14
    ... AH-64D Apache Longbow program have reduced final assembly hours per aircraft by 85 percent since 1999, an achievement that was recognized with the 2005 Shingo Prize for Excellence in Manufacturing. Right: Bill Schnettgoecke (on right) will lead our Lean+ initiative to enable successes such as an 80...

  • Page 15
    ... office environ­ ments and to our suppliers' and customers' operations. We've asked Alan Mulally, chief executive officer of running leaner cost to the U.S. Air Force for C­17s delivered in 2005 by more than 20 percent from the previous contract, while improving margins and adding significantly...

  • Page 16
    ...­ sion programs, and we help our military customers extend the useful life of existing plat­ forms, an essential service in times of moderating defense budgets. Boeing Capital Corporation develops financ­ ing solutions for our customers and works with the global financial community to ensure...

  • Page 17
    Our global Support Systems business, including the Boeing Support Systems Center in San Antonio, helps deliver the sustainment capability and mission readiness our military customers need to meet the global mobility requirements for today's warfighter. Left: In December, we delivered our first 747-...

  • Page 18
    ... and delivered to customers from the delivery center in Seattle. More than 541 operators fly the best-selling 737 into 1,200 cities in 190 countries. Right: The first Italian Air Force KC-767A tanker/transport and the first 777-200LR Worldliner were on display to the world at the Paris Air Show last...

  • Page 19
    ... of communities around the world, we enrich the diversity of the company, increase our customer knowledge and gain access to best-inindustry technologies. The outlook for international sales and services growth is extremely promising. Growth in air travel worldwide propelled increased orders for...

  • Page 20
    ... common processes and systems to enhance the efficiency of our business operations and ability to design and build products anywhere in the world. New programs like MMA, FCS and 787 have been early beneficiaries of this effort to demonstrate its power in transforming Boeing into a global, network...

  • Page 21
    ...system operators and adjusts the format and flow of displayed information to maximise operator performance. Left: Leading in the adoption of common processes and systems are new programs like the P-8A Multi-mission Maritime Aircraft, a military derivative of the Next-Generation 737. Far Left: Flight...

  • Page 22
    ...' Equity Notes to Consolidated Financial Statements Segment Information Quarterly Financial Data Report of Independent Registered Public Accounting Firm Report of Management Regulatory Certifications Index to Financials Selected Products, Programs and Services Board of Directors Company Officers...

  • Page 23
    ... investments, fixed-rate debt obligations, and customer financing assets and liabilities. Historically, we have not experienced material gains or losses on these instruments due to interest rate changes. Additionally, Boeing Capital Corporation (BCC) uses interest rate swaps with certain debt...

  • Page 24
    ... plant and equipment Employee salaries and wages Year-end workforce Financial position at December 31 Total assets Working capital Property, plant and equipment, net Cash Short-term investments Total debt Customer financing assets Shareholders' equity Per share Common shares outstanding (in millions...

  • Page 25
    .... Boeing Technology, our advanced research and development unit, provides new systems, technologies and processes to position us for future growth. Connexion by BoeingSM makes an airplane seem more like the office or home with internet connection anytime and anywhere. Our financial results improved...

  • Page 26
    ... plans expense is also due to the increase in our stock price. Income Taxes The 2005 effective income tax rate of 9.1% differed from the federal statutory tax rate of 35%, primarily due to a settlement with the Internal Revenue Service (IRS) for the years 19982001, Foreign Sales Corporation...

  • Page 27
    ... unused borrowing capacity through commercial paper programs, long-term capital markets and revolving credit line agreements. The primary factors that affect our investment requirements and liquidity position, other than operating results associated with current sales activity, include the following...

  • Page 28
    ...above are reimbursable to us pursuant to cost-type government contracts. Purchase obligations not recorded on the Consolidated Statement of Financial Position Pension and other postretirement benefits Pension cash requirements is an estimate of our minimum funding requirements, pursuant to the ERISA...

  • Page 29
    ... purchase and/or construction of real and personal property (See Note 21). Segment Results of Operations and Financial Condition Commercial Airplanes Business Environment and Trends Airline Industry Environment Gross domestic product (GDP) growth, the primary driver of air traffic growth, remained...

  • Page 30
    ...products. Major productivity gains are essential to ensure a favorable market position at acceptable profit margins. Continued access to global markets remains vital to our ability to fully realize our sales potential and long-term investment returns. Approximately two-thirds of Commercial Airplanes...

  • Page 31
    ... for the particular program, such as firm orders, letters of intent from prospective customers, and market studies. We review and reassess our program accounting quantities on a quarterly basis in compliance with relevant program accounting guidance. Commercial aircraft production costs include...

  • Page 32
    ... firm orders since the fourth quarter of 2001. As of December 31, 2005, of the 5 remaining undelivered units, 3 units will be delivered to a single customer with uncertain financial condition. As a result, on a consolidated basis, these aircraft will be accounted for under long-term operating leases...

  • Page 33
    ...expect to receive a lesser amount of 787 supplier development cost sharing payments in 2006, which will result in an increase to our total research and development expense. We are currently focusing our new airplane product development efforts on the 787 program, which in three planned versions will...

  • Page 34
    ... military operations in Afghanistan and Iraq. This is a 7% increase over the enacted fiscal year 2006 funding level of $410.8 billion. Although the top-line had continued to experience growth in the last couple of years, we had seen pressure on the investment accounts (Procurement and Research...

  • Page 35
    ... efforts in process. Our satellite programs are reported in either the Network Systems or L&OS segments. See discussion of Boeing Satellite Systems International, Inc. (BSSI)/ICO Global Communications (Operations), Ltd. (ICO) litigation in note 24. On September 10, 2004, a group of insurance...

  • Page 36
    ... quarter of 2006. The program represented less than 1% of our 2005 revenues. No material impact on our financial statements is expected. Integrated Defense Systems (Dollars in millions) 2005 2004 2003 Revenues % of Total Company Revenues Operating Earnings Operating Margins Research and Development...

  • Page 37
    ... flight and distributed control of high-performance unmanned combat air vehicles. Research and development in advanced weapons technologies emphasizes, among other things, precision guidance and multimode targeting. Research and development investments in the Global Tanker Transport Aircraft program...

  • Page 38
    ...capabilities development, we also maintained our investment levels in Global Missile Defense and advanced missile defense concepts and technologies. Backlog Network Systems total backlog decreased 5% from 2004 to 2005 primarily due to sales in 2005 from large multiyear orders received in prior years...

  • Page 39
    ... and Space Shuttle Return to Flight activity. Total backlog increased 8% from 2003 to 2004 primarily due to large orders for DIRECTV commercial satellites and additional NASA activity, partially offset by sales throughout the segment. Boeing Capital Corporation Business Environment and Trends...

  • Page 40
    ...placed out of service. At the same time, the credit ratings of many airlines, particularly in the United States, have remained at low levels. Aircraft values and lease rates are impacted by the number and type of aircraft that are currently out of service. Approximately 1,900 commercial jet aircraft...

  • Page 41
    ... the value of aircraft equipment and their associated lease rates. Revenues % of Total Company Revenues Operating Earnings Operating Margins $966 2% $232 24% $959 2% $183 19% $991 2% $91 9% Revenues BCC segment revenues consist principally of interest from financing receivables and notes, lease...

  • Page 42
    ...to cost reduction strategies implemented across the business units during the year. Critical Accounting Policies and Standards Issued and Not Yet Implemented Contract Accounting Contract accounting involves a judgmental process of estimating the total sales and costs for each contract, which results...

  • Page 43
    ..., sales price, labor and employee benefit costs, material costs, procured parts, major component costs, overhead costs, program tooling costs, and routine warranty costs. Underlying all estimates used for program accounting is the forecasted market and corresponding production rates. Estimation...

  • Page 44
    ... on our best estimate of future sales and operating costs, based primarily on existing firm orders, expected future orders, contracts with suppliers, labor agreements, and general market conditions, and are subject to review and approval by our senior management and Board of Directors. Changes in...

  • Page 45
    ...can significantly increase (or decrease) future net periodic pension cost. The funded status of pension plans is sensitive to the discount rate and actual returns on assets. Changes in the funded status may have significant immediate impacts on our Consolidated Statements of Financial Position as of...

  • Page 46
    ... will not have a material adverse effect on our financial position, except as set forth in Note 24 to our Consolidated Financial Statements. Other contingencies We are also a defendant in suits filed by Lockheed, ICO Global Communications, Ltd. and several of our employees. See Note 24. We are...

  • Page 47
    ...accounts receivable being payable in U.S. dollars; � the amounts and effects of underinsured operations; � the effects of contractual changes to the Future Combat Systems program on our revenues or financial position; and � the continued operation, viability and growth of Commercial Airplane...

  • Page 48
    ...2005 2004 2003 Sales of products Sales of services Total revenues Cost of products Cost of services Boeing Capital Corporation interest expense Total costs and expenses Income from operating investments, net General and administrative expense Research and development expense Gain on dispositions...

  • Page 49
    Consolidated Statements of Financial Position (Dollars in millions except per share data) December 31, 2005 2004 Assets Cash and cash equivalents Short-term investments Accounts receivable, net Current portion of customer financing, net Deferred income taxes Inventories, net of advances and ...

  • Page 50
    ... Accounts payable and other liabilities Advances in excess of related costs Income taxes receivable, payable and deferred Deferred lease income Prepaid pension expense Goodwill Other acquired intangibles, net Accrued retiree health care Customer financing, net Other Net cash provided by operating...

  • Page 51
    ... of deferred compensation Changes in capital stock ShareValue Trust market value adjustment Excess tax pools Treasury shares issued for share-based plans, net Treasury shares repurchased Net earnings Cash dividends declared ($1.05 per share) Minimum pension liability adjustment, net of...

  • Page 52
    ... consolidated financial statements. Operating cycle For classification of current assets and liabilities, we elected to use the duration of the related contract or program as our operating cycle which is generally longer than one year and could exceed 3 years. Revenue recognition Contract accounting...

  • Page 53
    ... and development accounting. Accordingly, the amounts funded by the customer are recognized as an offset to our research and development expense rather than as contract revenues. During the year ended December 31, 2004, we established cost sharing arrangements with some suppliers for the 787 program...

  • Page 54
    ... of Accounts payable and other liabilities. Inventories Inventoried costs on commercial aircraft programs and long­ term contracts include direct engineering, production and tool­ ing costs, and applicable overhead, which includes fringe benefits, production related indirect and plant management...

  • Page 55
    ...commercial aircraft programs are amounts paid or credited in cash, or other consideration to certain airline customers, that are referred to as early issue sales consideration. Early issue sales consideration is recog­ nized as a reduction to revenue when the delivery of the aircraft under contract...

  • Page 56
    ... swaps and commodity contracts at fair value based on discounted cash flow analysis and for warrants and other option type instruments based on option pricing models. For derivatives designated as hedges of the exposure to changes in the fair value of a recognized asset or liability or a firm...

  • Page 57
    .... We use various assumptions when determining the expected undiscounted cash flow. These assumptions include expected future lease rates, lease terms, end of eco­ nomic life value of the aircraft or equipment, periods in which the asset may be held in preparation for a follow­on lease, maintenance...

  • Page 58
    ... receivable (creating a shortfall condition), these agreements would, for example, permit us to take the actions necessary to sell or retain certain other assets in which the customer has an equity interest and use the proceeds to cover the shortfall. Each quarter, we review customer credit ratings...

  • Page 59
    ... to Consolidated Financial Statements Note 3 - Goodwill and Acquired Intangibles The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2005, 2004 and 2003 were as follows: Commercial Airplanes Aircraft & Weapon Systems Network Systems Support Systems...

  • Page 60
    ...) Retiree health care accruals Inventory and long­term contract methods of income recognition (net of valuation allowance of $0 and $19) Other employee benefits accruals (net of valuation allowance of $0 and $5) In­process research and development related to acquisitions Net operating loss, credit...

  • Page 61
    ...2006 effec­ tive income tax rate. The impact of the R&D credit reduced the 2005 effective income tax rate by 1.2%. Note 6 - Accounts Receivable Accounts receivable at December 31 consisted of the following: 2005 2004 U.S. Government contracts Commercial and customers Other Less valuation allowance...

  • Page 62
    ...inventories totaled $66 and $162 as of December 31, 2005 and 2004. When our Commercial Airplanes segment is unable to immedi­ ately sell used aircraft, it may place the aircraft under an oper­ ating lease. It may also finance the sale of new or used aircraft with a short­term note receivable. The...

  • Page 63
    ...discontinued operations for the years ended December 31 were as follows: 2005 2004 2003 Assets Accounts receivable Inventory Property, plant and equipment Other assets Prepaid pension expense Liabilities Accounts payable Employment and other Environmental Accrued retiree health care liability $ 62...

  • Page 64
    Notes to Consolidated Financial Statements Note 10 - Customer Financing Customer financing at December 31 consisted of the following: 2005 2004 the following: Allowance for Losses Aircraft financing Notes receivable Investment in sales-type/finance leases Operating lease equipment, at cost, less ...

  • Page 65
    ..., cash flows and/or financial position. Scheduled payments on customer financing are as follows: Principal Payments on Notes Receivable Sales­Type/ Finance Lease Payments Receivable Operating Lease Equipment Payments Receivable Depreciation expense was $1,001, $1,028 and $1,005 for the years ended...

  • Page 66
    ... non-cash charge to asset impairment expense of $47, resulting in a reduction of the carrying value to zero. There were no other-than-temporary impairments during the year ended December 31, 2003. Maturities of available-for-sale debt securities at December 31, 2005, were as follows: Amortized Cost...

  • Page 67
    ... to acquire aircraft and market and lease the aircraft to third­parties. During 2003, we finalized an amendment to the partnership, which gave us majority control in the management of the business and affairs of BATA. As a result, BATA is now consolidated in our financial statements. The Sea...

  • Page 68
    ... asset value to Cost of services. This transaction resulted in earnings before income taxes of $63 for the year ended December 31, 2005. During 2001, we delivered four C-17 transport aircraft to the United Kingdom Royal Air Force (UKRAF), which were accounted for as operating leases. The lease term...

  • Page 69
    ... employees covered by most United Auto Workers bargaining agreements, are provided lifetime health care coverage. We use a measurement date of September 30 for our pension and other postretirement benefit (OPB) plans. The following shows changes in the benefit obligation, plan assets and funded...

  • Page 70
    ... for fourth quarter contributions Net amount recognized Amounts recognized in statement of financial position consist of: Prepaid benefit cost Intangible asset Accumulated other comprehensive loss Accounts payable and other liabilities Accrued retiree health care Accrued pension plan liability Net...

  • Page 71
    ..., and changes in plan participant behavior. A one-percentage-point change in assumed health care cost trend rates would have the following effect: 1-Percentage 1-Percentage Point Point Increase Decrease 2005 2004 2003 2002 Discount rate: pension and OPB Expected return on plan assets Rate of...

  • Page 72
    ... index fund which is comprised of approximately 60% equities and 40% debt securities. The expected rate of return on these assets does not have a material effect on the net periodic benefit cost. Cash Flows Contributions Required pension contributions under Employee Retirement Income Security Act...

  • Page 73
    Notes to Consolidated Financial Statements shares are available for issuance as restricted stock awards. This authorization for issuance under the 1997 Plan will terminate on April 30, 2007. Shares issued as a result of stock option exercise or conversion of stock unit awards will be funded out of ...

  • Page 74
    ...the conditions of the award, adjusted for the effect of retiree eligible participants. Each price growth target has a different expected term, resulting in the range of values provided. At December 31, 2005, there was $515 of unrecognized compensation cost related to the Performance Share plan which...

  • Page 75
    Notes to Consolidated Financial Statements The following table summarizes the activity of stock options issued to directors, officers and other employees: December 31, 2005 WeightedAverage Excercise Price WeightedAverage Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) The...

  • Page 76
    ...on our current portfolio of cash flow hedges, we expect to reclassify to cost of products and services a gain of $23 (net of tax) during the next year. Fair value hedges Interest rate swaps under which we agree to pay variable rates of interest are designated as fair value hedges of fixed­rate debt...

  • Page 77
    ... and recourse represent the anticipated values of assets we could liquidate or receive from other parties to offset our payments under guarantees. The carrying amount of liabilities recorded on the Consolidated Statements of Financial Position reflects our best estimate of future payments we...

  • Page 78
    ... Wichita site. Tax benefits associated with IRBs include a provision for a ten-year property tax abatement and a sales tax exemption from the Kansas Department of Revenue. We record the property on our Consolidated Statements of Financial Position, along with a capital lease obligation to repay the...

  • Page 79
    ... to offset the loans against the cash surrender value of the policies, we present the net asset in Other assets on the Consolidated Statements of Financial Position as of December 31, 2005 and 2004. Commitments for the future purchase of capital assets unpaid at year end were $1,132 and $959 for the...

  • Page 80
    ... new aircraft models, face the additional risk of pricing pressures and cost management issues inherent in the design and production of complex products. Financing support may be provided by us to airlines, some of which are unable to obtain other financing. External business environment risks...

  • Page 81
    ... us as nominal defendant and against each then current member of our Board of Directors. These suits have now been consolidated. The plaintiffs allege that the directors breached their fiduciary duties in failing to put in place adequate internal controls and means of supervision to prevent the EELV...

  • Page 82
    ...effect on our financial position. Securities and Exchange Commission (SEC) Pension Accounting Inquiry On October 13, 2004, the SEC requested information from us in connection with an inquiry concerning accounting issues involving pension and other postretirement benefits at several companies. We are...

  • Page 83
    ... 3 43 19 $242 (13) $(14) The 747 program accounting quantity was increased by 24 units during 2005 as a result of additional customer orders. In November 2005, we launched the 747 Advanced which included the 747-8 International passenger airplane and the 747-8 Freighter. This launch and additional...

  • Page 84
    ... directly from the segments' internal financial reporting used for corporate management purposes. Revenues Year ended December 31, 2005 2004 2003 Commercial Airplanes Integrated Defense Systems: Aircraft and Weapon Systems Network Systems Support Systems Launch and Orbital Systems Total Integrated...

  • Page 85
    ... investments, prepaid pension expense, net deferred tax assets, capitalized interest and assets held by our Shared Services Group as well as intercompany eliminations. Unallocated liabilities include various accrued employee compensation and benefit liabilities, including accrued retiree health care...

  • Page 86
    ... based payments and progress payments in excess of inventoriable costs in Advances and billings in excess of related costs on our Consolidated Statements of Financial Position and reclassified prior years to conform with our current presentation. Assets and liabilities shown below are based on our...

  • Page 87
    ... also completed the sale of our Rocketdyne business to United Technologies and recorded a net-pretax gain of $578. We also received a tax refund of $537, which resulted in an increase to net income of $406. During the second quarter of 2005, Commercial Airplanes completed the sale of its Wichita and...

  • Page 88
    Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of The Boeing Company Chicago, Illinois We have audited the accompanying consolidated statements of financial position of The Boeing Company and subsidiaries (the "Company") as of December 31, 2005 and...

  • Page 89
    ...in the United States of America and include amounts based on management's best estimates and judgments. Financial information elsewhere in this Annual Report is consistent with that in the financial statements. Management has established and maintains a system of internal control designed to provide...

  • Page 90
    ..., Boeing Capital Corporation Business environment and trends, Commercial Airplanes Business environment and trends, Integrated Defense Systems Cash and cash equivalents - accounting policy Cash flow summary Consolidated results of operations and financial condition Consolidated statements of cash...

  • Page 91
    ... will come from improvements in engine technology, aerodynamics, materials and systems. It will be the most advanced and efficient commercial airplane in its class and will set new standards for environmental performance and passenger comfort. range of products and services aimed at bringing...

  • Page 92
    ... 2005. In partnership with suppliers, the C-17 program used Lean principles to help reduce the cost to the U.S. Air Force for U.S. government officials. Four C-32As currently are in service, and Boeing is providing a major communications upgrade to all four aircraft, including Connexion by BoeingSM...

  • Page 93
    ... remains a supportable and affordable option to fill multirole force struction requirements around the world. 2005 deliveries: 4 F-22A Raptor 183 F-22As, with production expected to run through 2013. The F-22A team is currently on contract to deliver 98 production aircraft. The Boeing Company and...

  • Page 94
    ...program that enables the U.S. Department of Defense to use the power of technology to strike an enemy with speed, security and precision. Boeing is under contract with the U.S. Air Force to design and Boeing and partner Science Applications International Corporation work together as the lead systems...

  • Page 95
    Selected Programs, Products and Services Boeing Integrated Defense Systems KC-767 Advanced Tanker Transport continued The KC-767 Advanced Tanker Transport is the reliable, low-risk solution for military air-refueling and transport needs. Flight testing of the Italian Air Force's first KC-767A is now...

  • Page 96
    ...'s space flight operations contractor, United Space Alliance. As the original developer and manufacturer of the Space Shuttle Orbiter, Boeing is Support Systems provides best-value mission readiness to the warfighter through total support solutions for Boeing and non-Boeing military aircraft across...

  • Page 97
    ... Center for International Security and Cooperation Director of Frank Russell Trust Company, L-3 Communications Holding, Inc. and Plug Power Inc. Mike S. Zafirovski, 52 President, Chief Executive Officer and director, Nortel Networks Corporation Boeing Board Committees: Audit; Finance (Chair) Boeing...

  • Page 98
    ... Vice President, Chief Financial Officer Scott E. Carson Vice President, Sales Commercial Airplanes Rudy F. deLeon Senior Vice President, Washington, D.C. Operations Tod R. Hullin Senior Vice President, Communications James M. Jamieson Senior Vice President, Chief Technology Officer James C. Johnson...

  • Page 99
    ... - www.boeing.com - is your entry point for viewing the latest Company information about its products and people. You may also view electronic versions of the annual report, proxy statement, Form 10K or Form 10-Q. Duplicate Shareholder Accounts Registered shareholders with duplicate accounts may...

  • Page 100
    ... Riverside Plaza Chicago, IL 60606-1596 U.S.A. "The Boeing Company aspires to deliver financial results that match the quality of our people and our technology, which is a meaningful improvement from where we are today." W. James McNerney, Jr., Chairman, President and Chief Executive Officer 0707...