Boeing 2010 Annual Report Download - page 24

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.
A significant portion of our and Boeing Capital Corporation’s customer financing portfolio is
concentrated among certain customers based in the United States, and in certain types of
Boeing aircraft, which exposes us to concentration risks.
A significant portion of our customer financing portfolio is concentrated among certain customers and
in distinct geographic regions, particularly in the United States. Our portfolio is also concentrated by
varying degrees across Boeing aircraft product types, most notably Boeing 717 aircraft. If one or more
customers holding a significant portion of our portfolio assets experiences financial difficulties, or
otherwise defaults on or does not renew its leases with us at their expiration, and we are unable to
redeploy the aircraft on reasonable terms, or if the types of aircraft that are concentrated in our
portfolio suffer greater than expected declines in value, our earnings, cash flows and/or financial
position could be materially adversely affected.
We may be unable to obtain debt to fund our operations and contractual commitments at
competitive rates, on commercially reasonable terms or in sufficient amounts.
We depend, in part, upon the issuance of debt to fund our operations and contractual commitments. If
we were called upon to fund all outstanding financing commitments, our market liquidity may not be
sufficient. A number of factors could cause us to incur increased borrowing costs and to have greater
difficulty accessing public and private markets for debt. These factors include disruptions or declines in
the global capital markets and/or a decline in our financial performance or outlook or credit ratings. The
occurrence of any or all of these events may adversely affect our ability to fund our operations and
contractual or financing commitments.
We may not realize the anticipated benefits of mergers, acquisitions, joint ventures/strategic
alliances or divestitures.
As part of our business strategy, we may merge with or acquire businesses, form joint ventures/
strategic alliances and divest operations. Whether we realize the anticipated benefits from these
transactions depends, in part, upon the integration between the businesses involved, the performance
of the underlying products, capabilities or technologies and the management of the transacted
operations. Accordingly, our financial results could be adversely affected from unanticipated
performance issues, transaction-related charges, amortization of expenses related to intangibles,
charges for impairment of long-term assets, credit guarantees, partner performance and
indemnifications. Consolidations of joint ventures could also impact our results of operations or
financial position. While we believe that we have established appropriate and adequate procedures
and processes to mitigate these risks, there is no assurance that these transactions will be successful.
Divestitures may result in continued financial involvement in the divested businesses, such as through
guarantees or other financial arrangements, following the transaction. Nonperformance by those
divested businesses could affect our future financial results.
Our insurance coverage may be inadequate to cover all significant risk exposures.
We are exposed to liabilities that are unique to the products and services we provide. While we
maintain insurance for certain risks and, in some circumstances, we may receive indemnification from
the U.S. government, insurance cannot be obtained to protect against all risks and liabilities. It is
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