Boeing 2015 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2015 Boeing annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

27
Results of Operations
(Dollars in millions)
Years ended December 31, 2015 2014 2013
Revenues $66,048 $59,990 $52,981
% of total company revenues 69% 66% 61%
Earnings from operations $5,157 $6,411 $5,795
Operating margins 7.8% 10.7% 10.9%
Research and development $2,340 $1,881 $1,807
Contractual backlog $431,408 $440,118 $372,980
Unobligated backlog $216 $360 $660
Revenues
Commercial Airplanes revenues increased by $6,058 million or 10% in 2015 compared with 2014 and by
$7,009 million or 13% in 2014 compared with 2013 primarily due to higher new airplane deliveries and
mix.
Commercial Airplanes deliveries as of December 31 were as follows:
737 *747 †767 777 787 †Total
2015
Cumulative deliveries 5,713 1,519 1,083 1,361 363
Deliveries 495 (15) 18 (3) 16 98 135 762
2014
Cumulative deliveries 5,218 1,501 1,067 1,263 228
Deliveries 485 (15) 19 (3) 6 99 114 723
2013
Cumulative deliveries 4,733 1,482 1,061 1,164 114
Deliveries 440 (8) 24 21 98 65 (1) 648
*Intercompany deliveries identified by parentheses
† Aircraft accounted for as revenues by Commercial Airplanes and as operating leases in
consolidation identified by parentheses
Earnings From Operations
Earnings from operations in 2015 decreased by $1,254 million or 20% compared with 2014 primarily due
to higher reach-forward losses of $1,160 million and higher research and development spending of $459
million, largely on the 777X, which more than offset higher new airplane deliveries and mix. During the
fourth quarter of 2015 we recorded a charge of $885 million to recognize a reach-forward loss on the 747
program. In addition, we recorded reach-forward losses on the USAF KC-46A Tanker contract of $513
million in the second quarter of 2015 and $238 million in the second quarter of 2014. Operating margins
in 2015 decreased primarily due to additional reach-forward losses, higher research and development
expense and the dilutive impact of 787 volume and mix.
Earnings from operations in 2014 increased by $616 million or 11% compared with 2013. The increase in
earnings is primarily due to higher earnings of $947 million driven by higher new airplane deliveries and
commercial aviation services revenue growth. This earnings increase was partially offset by a reach-