Boeing 2009 Annual Report Download - page 15

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rights in the aggregate are important to the operation of each of our businesses, we do not believe that
our business would be materially affected by the expiration of any particular intellectual property rights
or termination of any particular intellectual property patent license agreements.
Non-U.S. Sales
See Note 21 to the Consolidated Financial Statements for information regarding non-U.S. sales.
Research and Development
Research and development expenditures involve experimentation, design, development and related
test activities for defense systems, new and derivative jet aircraft including both commercial and
military, advance space and other company-sponsored product development. These are expensed as
incurred including amounts allocable as reimbursable overhead costs on U.S. government contracts.
Our total research and development expense amounted to $6.5 billion, $3.8 billion and $3.9 billion in
2009, 2008 and 2007, respectively. These amounts are net of 787-related research and development
cost sharing payments from suppliers of $0, $50 million and $130 million in 2009, 2008 and 2007,
respectively. Research and development expense in 2009 includes $2.7 billion of production costs
related to the first three flight test 787 aircraft that cannot be sold due to the inordinate amount of
rework and unique and extensive modifications made to the aircraft.
Research and development costs also include bid and proposal efforts related to government products
and services, as well as costs incurred in excess of amounts estimated to be recoverable under cost-
sharing research and development agreements. Bid and proposal costs were $343 million, $330 million
and $306 million in 2009, 2008 and 2007, respectively.
Research and development highlights for each of the major business segments are discussed in more
detail in Segment Results of Operations and Financial Condition on pages 21 – 38.
Employees
Total workforce level at December 31, 2009 was 157,100.
As of December 31, 2009, our principal collective bargaining agreements were with the following
unions:
Union
Percent of our
Employees
Represented Status of the Agreements with the Union
The International Association of
Machinists and Aerospace
Workers (IAM)
18% We have two major agreements; one expiring in
June of 2010 and one in September of 2012.
The Society of Professional
Engineering Employees in
Aerospace (SPEEA)
13% We have two major agreements expiring in October
of 2012.
The United Automobile,
Aerospace and Agricultural
Implement Workers of America
(UAW)
2% We have one major agreement expiring in April of
2010.
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