Boeing 2011 Annual Report Download - page 32

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to the transition from the 747-400 to the 747-8. These were partially offset by increases in commercial
aviation services business. BDS revenues decreased by $1,718 million primarily due to lower revenues
in the N&SS segment.
Earnings From Operations
The following table summarizes our earnings/(loss) from operations:
(Dollars in millions)
Years ended December 31, 2011 2010 2009
Commercial Airplanes $3,495 $3,006 $ (583)
Boeing Defense, Space & Security 3,158 2,875 3,298
Boeing Capital Corporation 125 152 126
Other segment 54 (327) (151)
Unallocated items and eliminations (988) (735) (594)
Total $5,844 $4,971 $2,096
Operating earnings in 2011 increased by $873 million compared with 2010. Commercial Airplanes
earnings increased by $489 million, primarily due to higher revenues and a reduction in research and
development costs, partially offset by increases in period costs associated with business growth. BDS
earnings increased by $283 million compared with 2010 due to higher earnings in the BMA and GS&S
segments, partially offset by lower earnings in the N&SS segment. Other segment earnings increased
by $381 million primarily due to a $241 million reduction in the allowance for losses on receivables
during 2011. Unallocated items and eliminations in 2011 reduced earnings by $253 million compared
with 2010 primarily due to higher pension and postretirement costs.
Operating earnings in 2010 increased by $2,875 million compared with 2009. Commercial Airplanes
earnings increased by $3,589 million, primarily due to $2,693 million of costs related to the first three
787 flight test aircraft included in research and development expense in 2009 and the 2009 reach-
forward losses on the 747 program of $1,352 million. BDS earnings decreased by $423 million
compared with 2009 due to lower margins in the BMA segment and lower revenues in the N&SS
segment. Other segment earnings decreased by $176 million primarily due to $119 million in
intercompany guarantees related to aircraft impairment charges and reduced aircraft collateral values.
The most significant items included in Unallocated items and eliminations are shown in the following
table:
(Dollars in millions)
Years ended December 31, 2011 2010 2009
Share-based plans $ (83) $(136) $(189)
Deferred compensation (61) (112) (158)
Pension (269) 54 110
Postretirement (248) (59) (93)
Eliminations and other (327) (482) (264)
Total $(988) $(735) $(594)
Share-based plans expense decreased by $53 million in both 2011 and 2010 primarily due to the
expiration of the ShareValue trust at June 30, 2010.
Deferred compensation expense decreased by $51 million and $46 million in 2011 and 2010. The year
over year changes in deferred compensation expense are primarily driven by changes in our stock
price and broad stock market conditions.
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