Full Description

The Boeing Company (Boeing), incorporated in 1916, is involved in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The Company operates in five principal segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S) and Boeing Capital Corporation (BCC). BMA, N&SS and GS&S comprise the Company’s Integrated Defense Systems (IDS) business. The Other segment classification principally includes the activities of Engineering, Operations and Technology (EO&T), an advanced research and development organization focused on technologies, processes and the creation of new products.

In November 2008, The Boeing Company announced that it has completed its acquisition of Tapestry Solutions. In December 2008, Boeing completed its acquisition of Digital Receiver Technology Inc., which develops wireless surveillance products for government customers. In December 2008, Boeing announced that it has completed its acquisition of Federated Software Group, whose engineering services and software systems help track and distribute equipment and personnel for the United States Department of Defense. Federated Software Group will operate within its IDS global services and support division.

Commercial Airplanes Segment

The Commercial Airplanes segment is involved in developing, producing and marketing commercial jet aircraft and providing related support services, principally to the commercial airline industry worldwide. Boeing is a producer of commercial aircraft and offers a family of commercial jetliners designed to meet a range of passenger and cargo requirements of domestic and non-United States airlines. Its family of commercial jet aircraft includes the 737 next-generation, narrow-body model and the 747, 767, 777 and 787 wide-body models. The Commercial Airplanes segment also offers aviation services support, aircraft modifications, spares, training, maintenance documents and technical advice to commercial customers worldwide.

Integrated Defense Systems

IDS is principally involved in the research, development, production, modification and support of various products, and related systems and services, such as military aircraft, including fighters, transports, tankers, intelligence surveillance and reconnaissance aircraft, and helicopters; missiles; space systems; missile defense systems; satellites and satellite launch vehicles, and communications, information and battle management systems. IDS’s primary customer is the United States Department of Defense (US DoD) with additional revenues being derived from the National Aeronautics and Space Administration (NASA) and international defense markets, civil markets and commercial satellite markets. During the year ended December 31, 2008, approximately 80% of IDS’s revenues were from its US DoD customer.

BMA segment is engaged in the research, development, production and modification of precision engagement and mobility products and services. Included in this segment are programs, such as AH-64 Apache, 737 Airborne Early Warning and Control (AEW&C), C-17 Globemaster, C-40A Clipper, CH-47 Chinook, EA-18G Growler, F/A-18E/F Super Hornet, F-15 Strike Eagle, F-22 Raptor, Harpoon, Joint Direct Attack Munition (JDAM), International KC-767 Tanker, P-8A Poseidon, ScanEagle, Stand-off Land Attack Missile-Expanded Response (SLAM-ER), Small Diameter Bomb, T-45 Training System and V-22 Osprey.

N&SS segment is engaged in the research, development, production and modification of products and services to assist its customers in transforming their operations through network integration, intelligence and surveillance systems, communications, architectures and space exploration. Included in this segment are programs, such as Airborne Laser, Family of Advanced Beyond Line-of-Sight (FAB-T) Terminals, Future Combat Systems (FCS), SBInet, Future Rapid Effects System, Global Positioning System, Ground-based Midcourse Defense (GMD), International Space Station, Joint Tactical Radio System (JTRS), Satellite Systems, Space Payloads and Space Shuttle.

GS&S segment is engaged in the operations, maintenance, training, upgrades and logistics support functions for military platforms and operations. Included in this segment are program areas, such as integrated logistics on platforms, including C-17, F/A-18 and AH-64; maintenance, modifications and upgrades on platforms, including A-10, AC-130, KC-135 and KC-10; training systems and services on platforms, including F-16, C-17, AH-64 and F-15, and international support.

Boeing Capital Corporation Segment

In the commercial aircraft market, BCC facilitates, arranges, structures and provides selective financing solutions to its Commercial Airplanes segment customers. In the space and defense markets, BCC arranges and structures financing solutions for its IDS segment government customers. BCC’s portfolio consists of equipment under operating leases, finance leases, notes and other receivables, investments and assets held for sale or re-lease.

The Company competes with Lockheed Martin Corporation, Northrop Grumman, Raytheon, General Dynamics Corporation, BAE Systems and European Aeronautic Defence and Space Company.