Boeing 2012 Annual Report Download - page 43

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31
BDS Realignment
Effective January 1, 2012, 2011 and 2010, certain programs were realigned among BDS segments.
Business segment data for all periods presented have been adjusted to reflect the realignment.
Operating Results
(Dollars in millions)
Years ended December 31, 2012 2011 2010
Revenues $32,607 $31,976 $31,943
% of total company revenues 40% 47% 50%
Earnings from operations $3,068 $3,158 $2,875
Operating margins 9.4% 9.9% 9.0%
Contractual backlog $55,068 $46,354 $48,364
Unobligated backlog $16,407 $13,687 $16,822
Since our operating cycle is long-term and involves many different types of development and production
contracts with varying delivery and milestone schedules, the operating results of a particular year, or year-
to-year comparisons of revenues and earnings, may not be indicative of future operating results. In addition,
depending on the customer and their funding sources, our orders might be structured as annual follow-
on contracts, or as one large multi-year order or long-term award. As a result, period-to-period comparisons
of backlog are not necessarily indicative of future workloads. The following discussions of comparative
results among periods should be viewed in this context.
Revenues
BDS revenues increased by $631 million in 2012 compared with 2011, due to higher revenues of $1,437
million in the BMA segment and $264 million in the GS&S segment, partially offset by lower revenues of
$1,070 million in the N&SS segment. BDS revenues increased by $33 million in 2011 compared with 2010,
due to higher revenues in the BMA and the GS&S segments, partially offset by lower revenues in the
N&SS segment.
Operating Earnings
BDS operating earnings in 2012 decreased by $90 million compared with 2011 due to lower earnings of
$201 million in the N&SS segment, partially offset by higher earnings of $56 million and $55 million in the
GS&S and BMA segments. Included above are net favorable cumulative contract catch-up adjustments,
which were $150 million higher in 2012 compared with 2011, primarily reflecting higher favorable
adjustments in the BMA segment.
BDS operating earnings in 2011 increased by $283 million compared with 2010 primarily due to higher
earnings of $276 million and $33 million in the BMA and GS&S segments, partially offset by lower earnings
of $26 million in the N&SS segment. Included above are net favorable cumulative contract catch-up
adjustments which were $104 million higher in 2011 compared with 2010.