12927--2/28/2006--BOEING_CO

related topics
{regulation, government, change}
{loss, insurance, financial}
{cost, operation, labor}
{operation, international, foreign}
{cost, contract, operation}
{financial, litigation, operation}
{tax, income, asset}
We depend heavily upon commercial customers, our suppliers and the worldwide market, which are subject to unique risks. We depend heavily on U.S. Government contracts, which are subject to unique risks. We enter into fixed-price contracts, which could subject us to losses if we have cost overruns. We use estimates in accounting for many contracts and programs. Changes in our estimates could adversely affect our future financial results. Significant changes in discount rates, actual investment return on pension assets, and other factors could affect our earnings, equity, and pension contributions in future periods. Some of our workforce is represented by labor unions, which may lead to work stoppages. Competition within our markets may reduce our procurement of future contracts and sales. We derive a significant portion of our revenues from international sales and are subject to the risks of doing business in foreign countries. The outcome of litigation in which we have been named as a defendant is unpredictable and an adverse decision in any such matter could have a material adverse affect on our financial position and results of operations. A portion of Boeing Capital Corporation s ( BCC ) portfolio has encountered financial difficulties, which may have an adverse effect on our earnings, cash flows and/or financial position. Our insurance coverage may be inadequate to cover all significant risk exposures. As a U.S. Government contractor, we are subject to a number of procurement rules and regulations. Our forward looking statements, projections and business assumptions may prove to be inaccurate, resulting in lower than expected earnings, which could impair our ability to access the capital markets and obtain adequate sources of capital to meet our future needs.

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