Research and development (R&D) expenditures involve experimentation, design, development and related test activities for defense systems,
new and derivative jet aircraft including both commercial and military, advanced space and other company-sponsored product development.
These are expensed as incurred including amounts allocable as reimbursable overhead costs on U.S. government contracts.
Boeing's total R&D expenses amounted to $4.6 billion, $3.3 billion, $3.0 billion, $3.1 billion, and $3.3 billion in 2016, 2015, 2014, 2013 and 2012, respectively. R&D expenses in 2009 included $2.7 billion of production costs related to the first three flight test 787 aircraft that could not be sold due to the inordinate amount of rework and unique and extensive modifications that would have to be made to the aircraft.
In the years from 2007 to 2016, Boeing spent the following on R&D activities (company-funded):
2016: $4,627 million, or 4.9% of total revenues.
2015: $3,331 million, or 3.5% of total revenues.
2014: $3,047 million, or 3.4% of total revenues.
2013: $3,071 million, or 3.5% of total revenues.
2012: $3,298 million, or 4.0% of total revenues.
2011: $3,918 million, or 5.7% of total revenues.
2010: $4,121 million, or 6.4% of total revenues.
2009: $6,506 million, or 9.5% of total revenues.
2008: $3,768 million, or 6.2% of total revenues.
2007: $3,850 million, or 5.8% of total revenues.
2006: $3,257 million, or 5.3% of total revenues.
R&D costs also include bid and proposal efforts related to government products and services, as well as costs incurred in excess of amounts estimated to be recoverable under cost-sharing research and development agreements. Bid and proposal costs were $311 million, $286 million, $289 million, $285 million, and $326 million in 2016, 2015, 2014, 2013 and 2012, respectively.
Boeing | Revenues
Boeing | Net Income
Boeing | R&D Spending
Boeing | # Employees
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