Boeing 2009 Annual Report Download - page 23

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 2009, sales to non-U.S. customers accounted for approximately 42% 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;
Švolatility in foreign political and economic environments and changes in foreign national priorities
and budgets, which can lead to delays or fluctuations in 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, 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 and of government
inquiries and investigations involving our business is unpredictable and an adverse decision in
any such matter could result in significant monetary payments and 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. 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. In
addition, we are sometimes subject to government inquiries and investigations of our business due,
among other things, to our business relationships with the U.S government, the heavily regulated
nature of our industry, and in the case of environmental proceedings, our ownership of certain
property. Any such inquiry or investigation could potentially result in an adverse ruling against us,
which could result in significant monetary payments (including possible environmental remediation
costs) and a material adverse effect on our financial position and operating results.
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