Boeing 2011 Annual Report Download - page 47

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Global Services & Support
Operating Results
(Dollars in millions)
Years ended December 31, 2011 2010 2009
Revenues $ 8,356 $ 8,250 $ 8,480
% of Total company revenues 12% 13% 12%
Earnings from operations $ 942 $ 914 $ 932
Operating margins 11.3% 11.1% 11.0%
Research and development $ 121 $ 130 $ 122
Contractual backlog $13,213 $13,684 $11,924
Unobligated backlog $ 108 $ 90 $ 331
Revenues
GS&S revenues increased $106 million in 2011, an increase of 1%, and decreased $230 million in
2010, a decrease of 3%, in each case compared with the prior year. The 2011 increase is primarily due
to higher revenues on several Integrated Logistics (IL) programs and a Defense & Government
services contract, partially offset by lower revenues from Maintenance, Modifications and Upgrades
(MM&U) due to the conclusion in 2010 of our KC-10 support program. The 2010 decrease is primarily
due to lower revenues on several MM&U programs partially offset by higher revenues on several IL
programs.
Operating Earnings
GS&S operating earnings increased by 3% in 2011 primarily due to higher earnings on several IL
programs, partially offset by lower earnings on MM&U programs. Operating earnings decreased 2% in
2010 primarily due to lower revenues.
Research and Development
GS&S focused on its investment strategies in the following core businesses: IL, MM&U, Training
Systems & Services (TS&S), and Defense & Government Services. Our investments also fund
investigation into synergies between existing markets through our Advanced Services organization.
This research continues the development and implementation of innovative tools, processes and
systems which will deliver affordable readiness solutions to our customers.
Backlog
GS&S total backlog decreased by 3% in 2011 compared with 2010 primarily due to revenues
recognized on multi-year contracts awarded in prior years on several IL programs, partially offset by a
TS&S contract award on the P-8A program. Total backlog increased by 12% in 2010 compared with
2009 primarily due to the award of the UK LogNEC contract. Backlog also increased due to increases
in several IL and MM&U programs, partially offset by decreases in several TS&S programs.
Boeing Capital Corporation
Business Environment and Trends
BCC’s customer financing and investment portfolio at December 31, 2011 totaled $4,327 million. A
substantial portion of BCC’s portfolio is concentrated among certain U.S. commercial airline customers.
BCC’s portfolio is also concentrated by varying degrees across Boeing aircraft product types most
notably out-of-production Boeing aircraft such as 717 aircraft.
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