Boeing 2014 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).
The unallocated activities of Engineering, Operations & Technology (EO&T) and Shared Services Group
(SSG), Corporate and intercompany guarantees provided to BCC are included in Unallocated items,
eliminations and other. 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
global passenger and cargo requirements of 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 787-10 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, spare parts, 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 65% of BDS 2014 revenues being derived from
this customer (excluding foreign military sales through the U.S. government). Other significant BDS
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