Boeing 2008 Annual Report Download - page 24

actions at suppliers can also affect us. Work stoppages and instability in our union relationships could
negatively impact the timely production and/or development of our products, which could strain
relationships with customers and cause a loss of revenues that would adversely affect our operations.
Competition within our markets may reduce our procurement of future contracts and sales.
The markets in which we operate are highly competitive. Our competitors may have more extensive or
more specialized engineering, manufacturing and marketing capabilities than we do in some areas. In
addition, some of our largest customers could develop the capability to manufacture products or
provide services similar to products that we manufacture or services that we provide. This would result
in these customers supplying their own products or services and competing directly with us for sales of
these products or services, all of which could significantly reduce our revenues. Furthermore, we are
facing increased international competition and cross-border consolidation of competition. There can be
no assurance that we will be able to compete successfully against our current or future competitors or
that the competitive pressures we face will not result in reduced revenues and market share.
We derive a significant portion of our revenues from non-U.S. sales and are subject to the risks
of doing business in other countries.
In 2008, sales to non-U.S. customers accounted for approximately 40% of our revenues. We expect
that non-U.S. sales will continue to account for a significant portion of our revenues for the foreseeable
future. As a result, we are subject to risks of doing business internationally, including:
Šchanges in regulatory requirements;
Šdomestic and international government policies, including requirements to expend a portion of
program funds locally and governmental industrial cooperation requirements;
Šfluctuations in international currency exchange rates;
Šdelays in placing orders;
Šthe complexity and necessity of using non-U.S. representatives and consultants;
Šthe uncertainty of the ability of non-U.S. customers to finance purchases;
Šuncertainties and restrictions concerning the availability of funding credit or guarantees;
Šimposition of taxes, export controls, or tariffs, embargoes, and other trade restrictions;
Šthe difficulty of management and operation of an enterprise spread over various 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 in which we have been named as a defendant is unpredictable and an
adverse decision in any such matter could have a material adverse affect on our financial
position and results of operations.
We are defendants in a number of litigation matters. These claims may divert financial and
management resources that would otherwise be used to benefit our operations. Although we believe
that we have meritorious defenses to the claims, 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
adverse affect on our financial position and results of operations.
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