Boeing 2012 Annual Report Download - page 15
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3
Financial and Other Business Information
See the Summary of Business Segment Data and Note 22 to our Consolidated Financial Statements for
financial information, including revenues and earnings from operations, for each of our business segments.
Intellectual Property
We own numerous patents and have licenses for the use of patents owned by others, which relate to our
products and their manufacture. In addition to owning a large portfolio of intellectual property, we also
license intellectual property to and from third parties. For example, the U.S. government has licenses in
our patents that are developed in performance of government contracts, and it may use or authorize others
to use the inventions covered by such patents for government purposes. Unpatented research,
development and engineering skills, as well as certain trademarks, trade secrets, and other intellectual
property rights, also make an important contribution to our business. While our intellectual property rights
in the aggregate are important to the operation of each of our businesses, we do not believe that our
business would be materially affected by the expiration of any particular intellectual property right or
termination of any particular intellectual property patent license agreement.
Non-U.S. Revenues
See Note 22 to our Consolidated Financial Statements for information regarding non-U.S. revenues.
Research and Development
Research and development expenditures involve experimentation, design, development and related test
activities for defense systems, new and derivative jet aircraft including both commercial and military,
advanced space and other company-sponsored product development. These are expensed as incurred
including amounts allocable as reimbursable overhead costs on U.S. government contracts.
Our total research and development expense amounted to $3.3 billion, $3.9 billion and $4.1 billion in 2012,
2011 and 2010, respectively.
Research and development costs also include bid and proposal efforts related to government products
and services, as well as costs incurred in excess of amounts estimated to be recoverable under cost-
sharing research and development agreements. Bid and proposal costs were $326 million, $332 million
and $355 million in 2012, 2011 and 2010, respectively.
Employees
Total workforce level at December 31, 2012 was approximately 174,400.