This excerpt taken from the SPR 10-K filed Mar 5, 2007.
Our primary customers are aircraft OEMs. Boeing and Airbus are our two largest customers, and we are the largest independent aerostructures supplier to both companies. We entered into long-term supply agreements with our customers to provide aerostructure products to aircraft programs. Currently, virtually all of the products we sell are under long-term contracts with 99% of those products, as measured by dollar value of product sold, supplied by us on a sole-sourced basis.
We have good relationships with our customers due to our diverse product offering, leading design and manufacturing capabilities using both metallic and composite materials, and competitive pricing.
Boeing. For the twelve months ended December 31, 2006, approximately 91% of our revenues were from sales to Boeing. We have a strong relationship with Boeing given our 75 + year history as a Boeing division. Many members of our senior management team are former Boeing executives who have strong embedded relationships with Boeing and continue to work closely with Boeing. As part of the Boeing Acquisition, we entered into a long-term supply agreement under which we are Boeings exclusive supplier for substantially all of the products and services provided by Boeing Wichita prior to the Boeing Acquisition for the life of the programs. In addition, Boeing selected us to be the design leader for the Boeing B787 forward fuselage based in part on our strong expertise with composite technologies.
We believe our strong relationship with Boeing is unmatched in the industry and will allow us to continue to be an integral partner with Boeing in the designing, engineering and manufacturing of complex aerostructures.
Airbus. For the twelve months ended December 31, 2006, approximately 8% of our combined revenues were from sales to Airbus. As a result of the BAE Acquisition, we have become the largest independent aerostructures supplier to Airbus. Under our supply agreements with Airbus, we supply most of our products for the life of the aircraft program, including commercial derivative models, with pricing determined through 2010. For the A380, we have a long-term supply contract with Airbus that covers a fixed number of units. We believe we can leverage our relationship with Airbus and history of delivering high quality products to further increase our sales to Airbus and continue to partner with Airbus on new programs going forward.
Although most of our revenues are obtained from sales inside the U.S., we generated $254.1 million in sales to international customers for the twelve months ended December 31, 2006, primarily to Airbus. This includes nine months of revenue since our acquisition of BAE Aerostructures. The following chart illustrates the split between domestic and foreign sales:
The international revenue is included primarily in the Wing Systems segment. All other segment revenues are from U.S. sales. Approximately 11.7% of our total assets based on book value are located in the United Kingdom as part of Spirit Europe with less than 1 percent of the remaining assets located in other countries outside the United States.