Boeing 2015 Annual Report Download - page 28

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Competition within our markets and with respect to the products we sell may reduce our future
contracts and sales.
The markets in which we operate are highly competitive and one or more of our competitors may have
more extensive or more specialized engineering, manufacturing and marketing capabilities than we do in
some areas. In our Commercial Airplanes business, we anticipate increasing competition among non-U.S.
aircraft manufacturers and service providers in one or more of our market segments. In our BDS business,
we anticipate that the effects of defense industry consolidation, fewer large and new programs and new
priorities, including near and long-term cost competitiveness, of our U.S. DoD and international customers
will intensify competition for many of our products and services. Furthermore, we are facing increased
international competition and cross-border consolidation of competition. There can be no assurance that
we will be able to compete successfully against our current or future competitors or that the competitive
pressures we face will not result in reduced revenues and market share.
We derive a significant portion of our revenues from non-U.S. sales and are subject to the risks of
doing business in other countries.
In 2015, non-U.S. customers accounted for approximately 59% of our revenues. We expect that non-U.S.
sales will continue to account for a significant portion of our revenues for the foreseeable future. As a
result, we are subject to risks of doing business internationally, including:
• changes in regulatory requirements;
• domestic and international government policies, including requirements to expend a portion of
program funds locally and governmental industrial cooperation or participation requirements;
• fluctuations in international currency exchange rates;
• volatility in international political and economic environments and changes in non-U.S. national
priorities and budgets, which can lead to delays or fluctuations in orders;
• the complexity and necessity of using non-U.S. representatives and consultants;
• the uncertainty of the ability of non-U.S. customers to finance purchases, including the availability
of financing from the Export-Import Bank of the United States;
• uncertainties and restrictions concerning the availability of funding credit or guarantees;
• imposition of domestic and international taxes, export controls, tariffs, embargoes, sanctions and
other trade restrictions;
• the difficulty of management and operation of an enterprise spread over many countries;
• compliance with a variety of international laws, as well as U.S. laws affecting the activities of U.S.
companies abroad; and
• unforeseen developments and conditions, including terrorism, war, epidemics and international
conflicts.
While the impact of these factors is difficult to predict, any one or more of these factors could adversely
affect our operations in the future.
The outcome of litigation and of government inquiries and investigations involving our business
is unpredictable and an adverse decision in any such matter could have a material effect on our
financial position and results of operations.
We are involved in a number of litigation matters. These matters may divert financial and management
resources that would otherwise be used to benefit our operations. No assurances can be given that the
results of these matters will be favorable to us. An adverse resolution of any of these lawsuits could have