Boeing 2012 Annual Report Download - page 35

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23
Backlog
Our backlog at December 31 was as follows:
(Dollars in millions) 2012 2011 2010
Contractual Backlog:
Commercial Airplanes $317,287 $293,303 $255,591
Defense, Space & Security:
Boeing Military Aircraft 29,674 24,085 25,094
Network and Space Systems 9,692 9,024 9,567
Global Services and Support 15,702 13,245 13,703
Total Defense, Space & Security 55,068 46,354 48,364
Total contractual backlog $372,355 $339,657 $303,955
Unobligated backlog $17,873 $15,775 $16,871
Contractual backlog of unfilled orders excludes purchase options, announced orders for which definitive
contracts have not been executed, and unobligated U.S. and non-U.S. government contract funding. The
increase in contractual backlog during 2012 was due to commercial aircraft orders in excess of deliveries,
partially reduced by cancellations of commercial airplane orders and changes in projected revenue
escalation. The increase in contractual backlog during 2011 was due to commercial airplane orders in
excess of deliveries and changes in projected revenue escalation for undelivered commercial airplanes.
Unobligated backlog includes U.S. and non-U.S. government definitive contracts for which funding has
not been authorized. The increase in unobligated backlog during 2012 is due to increases at BDS of $2,720
million compared with 2011 primarily due to F-15 orders and the contract award for the Space Launch
System program received in 2012. The decrease in unobligated backlog during 2011 is due to decreases
at BDS of $3,135 million compared with 2010 primarily due to funding of existing multi-year contracts and
termination for convenience by the U.S. Army of the Brigade Combat Team Modernization (BCTM) program,
partially offset by the U.S. Air Force (USAF) contract for the KC-46A Tanker and the Missile Defense Agency
Development and Sustainment Contract.
Additional Considerations
KC-46A Tanker In 2011, we were awarded a contract from the USAF to design, develop, manufacture
and deliver 4 next generation aerial refueling tankers. The KC-46A Tanker will be a derivative of our 767
commercial aircraft. This contract is a fixed-price incentive firm contract valued at $4.9 billion and involves
highly complex designs. Changes to our estimated cost to perform the work could result in a material
charge. This contract contains production options. If all options under the contract are exercised, we expect
to deliver 179 aircraft for a total expected contract value of approximately $30 billion. For segment reporting
purposes, backlog, revenues and costs are recorded in the Commercial Airplanes and BMA segments.
Collective Bargaining Agreement Our collective bargaining agreement with The Society of Professional
Engineering Employees in Aerospace (SPEEA), which covers 23,600 employees, expired in October,
2012. SPEEA-represented employees continue to work under the terms of that contract. The parties
continue contract negotiations and on January 17, 2013, Boeing presented a contract offer to SPEEA.