Boeing 2011 Annual Report Download - page 25

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 and/or form joint ventures
and strategic alliances. Whether we realize the anticipated benefits from these acquisitions and related
activities depends, in part, upon our ability to integrate the operations of the acquired business, the
performance of the underlying product and service portfolio, the performance of the management team
and other personnel of the acquired operations. Accordingly, our financial results could be adversely
affected from unanticipated performance issues, legacy liabilities, 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 reported 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. We also may make strategic divestitures from
time to time. These transactions 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 through
additional payment obligations, higher costs or asset write-downs.
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
therefore possible that the amount of our insurance coverage may not cover all claims or liabilities, and
we may be forced to bear substantial costs. For example, liabilities arising from the use of certain of
our products, such as aircraft technologies, missile systems, border security systems, anti-terrorism
technologies, and/or air traffic management systems may not be insurable on commercially reasonable
terms. While many of these products are shielded from liability within the U.S. under the SAFETY Act
provisions of the 2002 Homeland Security Act, no such protection is available outside the U.S.,
potentially resulting in significant liabilities. The amount of insurance coverage we are able to maintain
may be inadequate to cover these or other claims or liabilities.
Business disruptions could seriously affect our future sales and financial condition or increase
our costs and expenses.
Our business may be impacted by disruptions including threats to physical security, information
technology or cyber-attacks or failures, damaging weather or other acts of nature and pandemics or
other public health crises. Any of these disruptions could affect our internal operations or our ability to
deliver products and services to our customers. Any significant production delays, or any destruction,
manipulation or improper use of our data, information systems or networks could impact our sales,
increase our expenses and/or have an adverse affect the reputation of Boeing and of our products and
services.
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