Boeing 2009 Annual Report Download - page 42

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Services Growth in services is anticipated both domestically and internationally, as customers have a
wide variety of needs, including information services, platform-related services, facility management,
infrastructure services and logistics command and control.
Unmanned Systems The unmanned market continues to see growth in all classes of platforms due to
the high demand from the U.S. military in Southwest Asia. We anticipate this growth increasing as
unmanned systems continue to provide critical mission functions to the war fighter with affordability,
persistence, and accuracy.
Intelligence We see the intelligence market growing based on the demands of data collection,
dissemination, and analysis driven by the conflicts in Southwest Asia. Growth in data fusion, data
management, and information sharing is expected as the use of ISR assets increase.
Cyber The demand for defensive, offensive, and exploit operations in the emerging cyber market
provides unique growth opportunities as explicit needs are further defined by customers. Cyber threats
from both state and non-state actors represent a critical national security issue. The U.S. government
is taking significant steps to mitigate the cyber threat to the U.S. DoD and to U.S. critical infrastructure.
Energy We anticipate the energy market will emerge with growth potential. As energy volatility
becomes more substantial, the need for energy management, infrastructure security, and scenario
modeling will increase accordingly. The U.S. DoD, including individual service branches, is also
actively engaged in developing energy policy guidance and comprehensive plans from which to
execute programs.
BDS Realignment
Effective January 1, 2009, 2008 and 2007 certain programs were realigned among BDS segments. In
addition, effective January 1, 2008, certain environmental remediation contracts (formerly included in
N&SS) were transferred to the Other Segment. Business segment data for all periods presented have
been adjusted to reflect the realignment. See Note 21.
Operating Results
(Dollars in millions)
Years ended December 31, 2009 2008 2007
Revenues $33,661 $32,047 $32,052
% of Total company revenues 49% 53% 48%
Earnings from operations $ 3,299 $ 3,232 $ 3,440
Operating margins 9.8% 10.1% 10.7%
Research and development $ 1,101 $ 933 $ 848
Contractual backlog $46,024 $45,285 $41,788
Unobligated backlog $18,815 $27,719 $29,893
Since our operating cycle is long-term and involves many different types of development and
production contracts with varying delivery and milestone schedules, the operating results of a particular
year, or year-to-year comparisons of revenues and earnings, may not be indicative of future operating
results. In addition, depending on the customer and their funding sources, our orders might be
structured as annual follow-on contracts, or as one large multi-year order or long-term award. As a
result, period-to-period comparisons of backlog are not necessarily indicative of future workloads. The
following discussions of comparative results among periods should be viewed in this context.
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