Boeing 2011 Annual Report Download - page 46

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Delta launch and new-build satellite deliveries were as follows:
Years ended December 31, 2011 2010 2009
Delta II 11
Delta IV 11
Commercial and civil satellites 133
Military satellites 313
Operating Earnings
N&SS earnings decreased by $21 million in 2011 and $128 million in 2010 primarily due to lower
revenues and higher research and development costs. N&SS operating earnings include equity
earnings of $194 million, $189 million and $164 million from the United Space Alliance joint venture
and the ULA joint venture in 2011, 2010 and 2009, respectively.
Research and Development
The N&SS research and development funding remains focused on the development of C4ISR that
support a network-enabled architecture approach for our customers. Research and development
expense increased in 2011 primarily due to higher expense associated with C4ISR prototypes. We are
investing in capabilities to enhance connectivity between existing and new air/ground and maritime
platforms, to increase communications availability, utility and bandwidth through more robust space
systems, and to leverage innovative networking and ISR concepts. Investments were also made
to develop concepts and capabilities related to cyber and security products, as well as the
development of next-generation space and intelligence systems. Along with increased funding to
support these network-enabled capabilities, we also maintained our investment levels in missile
defense, directed energy and advanced exploration systems.
Backlog
N&SS total backlog decreased 14% in 2011 compared with 2010 primarily due to termination for
convenience by the U.S. Army of the BCTM program and revenues recognized on multi-year contracts
awarded in prior years, partially offset by the contract award for the Missile Defense Agency
Development and Sustainment Contract. Total backlog increased 6% in 2010 compared with 2009
primarily due to two commercial satellite contract awards, a multi-year contract award on the
International Space Station program and GMD contract awards, partially offset by revenues recognized
on the BCTM program.
Additional Considerations
Sea Launch
See the discussion of the Sea Launch receivables in Note 11 to our Consolidated Financial
Statements.
Satellites
See the discussions of Boeing Satellite Systems International, Inc. in Note 21 to our Consolidated
Financial Statements.
34