Boeing 2008 Annual Report Download - page 48

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Deliveries of new-build production aircraft, excluding remanufactures and modifications, were as
follows:
Years ended December 31, 2008 2007 2006
F/A-18 Models 45 44 42
T-45TS Goshawk 7913
F-15E Eagle 14 12 12
C-17 Globemaster 16 16 16
KC-767 Tanker 2
CH-47 Chinook 12 10 2
AH-64 Apache 317 31
C-40A Clipper 31
Total New-Build Production Aircraft 99 111 117
Operating Earnings BMA operating earnings decreased by $373 million in 2008 primarily due to a
charge of $248 million taken on the AEW&C program in the second quarter. Delivery mix, lower
volume and the IAM strike also contributed to the decrease in 2008. Operating earnings increased by
$431 million in 2007 primarily due to the 2006 charges of $770 million on AEW&C, which were partially
offset by lower 2007 earnings due to revised cost estimates on the international KC-767 Tanker
program, lower prices on the C-17 program and revised cost and revenue estimates on the AEW&C
program.
Research and Development The BMA segment continues to focus research and development
resources to leverage customer knowledge, technical strength and large-scale integration capabilities
that provide innovative solutions to meet the warfighter’s enduring needs. Research and development
has remained consistent over the past several years. Research and development activities utilize our
capabilities in architectures, system-of-systems integration and weapon systems technologies to
develop solutions which are designed to enhance our customers’ capabilities in the areas of mobility,
precision effects, situational awareness and survivability. These efforts focus on increasing mission
effectiveness and interoperability, and improving affordability, reliability and economic ownership.
Backlog BMA total backlog increased by 13% in 2008 compared with 2007 primarily due to an
increase in the V-22, Chinook and F-15 program backlog. These increases were partially offset by
deliveries and sales on multi-year contracts awarded in prior years with the largest decreases in the
C-17 and F/A-18 programs. Total backlog decreased by 6% in 2007 compared with 2006 primarily due
to deliveries and sales on C-17, F/A-18, P-8A and F-15. These decreases were partially offset by a
multi-year contract for F-22 aircraft and international orders for AEW&C and F/A-18 aircraft.
Additional Considerations
Items which could have a future impact on BMA operations include the following:
AEW&C During 2006, we recorded charges of $770 million and during the second quarter of 2008 we
recorded a charge of $248 million related to revised cost and revenue estimates to complete the
AEW&C programs in Australia and Turkey. The 2008 charge is primarily related to our program in
Australia and is due to subsystem development issues on the electronic warfare and ground support
systems and the additional time required for integration testing. These factors required a revised
delivery schedule for the Australian aircraft. These delays are not expected to affect delivery schedules
to our other AEW&C customers. The AEW&C development program, also known as Wedgetail in
Australia, Peace Eagle in Turkey and Peace Eye in the Republic of Korea, consists of a 737-700
aircraft outfitted with a variety of command and control and advanced radar systems, some of which
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