Boeing 2013 Annual Report Download - page 13

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1
PART I
Item 1. Business
The Boeing Company, together with its subsidiaries (herein referred to as “Boeing,” the “Company,” “we,”
“us,” “our”), is one of the world’s major aerospace firms.
We are organized based on the products and services we offer. We operate in five principal segments:
• Commercial Airplanes;
• Our Defense, Space & Security (BDS) business comprises three segments:
• Boeing Military Aircraft (BMA),
• Network & Space Systems (N&SS) and
• Global Services & Support (GS&S); and
• Boeing Capital (BCC).
Our Other segment includes the unallocated activities of Engineering, Operations & Technology (EO&T)
and Shared Services Group (SSG), as well as intercompany guarantees provided to BCC. EO&T provides
Boeing with technical and functional capabilities, including information technology, research and
development, test and evaluation, technology strategy development, environmental remediation
management and intellectual property management.
Commercial Airplanes Segment
The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides
related support services, principally to the commercial airline industry worldwide. We are a leading producer
of commercial aircraft and offer a family of commercial jetliners designed to meet a broad spectrum of
passenger and cargo requirements of domestic and non-U.S. airlines. This family of commercial jet aircraft
in production includes the 737 narrow-body model and the 747, 767, 777 and 787 wide-body models.
Development continues on the 787-9, 787-10 and 737 MAX derivatives. In November 2013, we launched
the 777X, which features a new composite wing, new engines and folding wing-tips all designed to deliver
greater efficiency and significant fuel savings. The Commercial Airplanes segment also offers aviation
services support, aircraft modifications, spares, training, maintenance documents and technical advice to
commercial and government customers worldwide.
Defense, Space & Security
Our BDS operations principally involve research, development, production, modification and support of
the products and related systems as described below. BDS' primary customer is the United States
Department of Defense (U.S. DoD) with approximately 67% of BDS 2013 revenues being derived from
this customer (excluding foreign military sales through the U.S. government). Other significant revenues
were derived from the National Aeronautics and Space Administration (NASA), international defense
markets, civil markets and commercial satellite markets. BDS consists of three capabilities-driven
businesses: BMA, N&SS and GS&S. Additionally, the Phantom Works group is an integrated team that
works with the three businesses via product development, rapid prototyping and customer engagement
through experimentation and enterprise technology investment strategies.
Boeing Military Aircraft Segment
This segment is engaged in the research, development, production and modification of manned and
unmanned military aircraft and weapons systems for global strike, including fighter aircraft and missile