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Backlog

U.S. Government backlog was $3.5 billion and $3.3 billion at the end of 2006 and 2005, respectively, including backlog at Bell Helicopter of $2.4 billion in 2006 and $2.2 billion in 2005. Approximately 96% of the 2006 backlog was funded at December 30, 2006. Unfunded backlog represents the award value of U.S. Government contracts received, generally related to cost-plus type contracts, in excess of the funding formally appropriated by the U.S. Government. The U.S. Government is obligated only up to the funded amount of the contract. Additional funding is appropriated as the contract progresses.

Commercial backlog from unaffiliated customers was $9.8 billion and $7.4 billion in 2006 and 2005, respectively, including backlog at Cessna of $8.5 billion in 2006 and $6.3 billion in 2005. A significant portion of Cessna’s backlog represents orders from a major fractional jet customer. Orders from this fractional aircraft operator are included in backlog when the customer enters into a definitive master agreement and has established preliminary delivery dates for the aircraft. Preliminary delivery dates are subject to change through amendment to the master agreement. Final delivery dates are established approximately 12 to 18 months prior to delivery. Orders from other customers are included in backlog upon the customer entering into a definitive purchase order and receipt of required deposits.

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The 2006 year-end backlog with the major fractional jet customer was approximately $1.4 billion. The remaining $7.1 billion of Cessna’s backlog at the end of 2006 is with other commercial customers covering a wide spectrum of industries. This backlog includes $1.0 billion in orders for the new Citation CJ4 aircraft with the first customer deliveries in 2010.

Approximately 50% of our total backlog of $13.4 billion at December 30, 2006 represents orders which are not expected to be filled within our 2007 fiscal year.

Backlog

U.S. Government backlog was $3.3 billion at the end of 2005 and 2004, including backlog at Bell Helicopter of $2.2 billion in 2005 and $2.5 billion in 2004. Approximately 98% of the 2005 backlog was funded at December 31, 2005. Unfunded backlog represents the award value of U.S. Government contracts received, generally related to cost-plus type contracts, in excess of the funding formally appropriated by the U.S. Government. The U.S. Government is obligated only up to the funded amount of the contract. Additional funding is appropriated as the contract progresses.

Commercial backlog from unaffiliated customers was $7.4 billion and $6.3 billion in 2005 and 2004, respectively, including backlog at Cessna of $6.3 billion in 2005 and $5.3 billion in 2004. A significant portion of Cessna’s backlog represents orders from a major fractional jet customer. Orders from this fractional aircraft operator are included in backlog when the customer enters into a definitive master agreement and has established preliminary delivery dates for the aircraft. Preliminary delivery dates are subject to change through amendment to the master agreement. Final delivery dates are established approximately 12 to 18 months prior to delivery. Orders from other customers are included in backlog upon the customer entering into a definitive purchase order and receipt of required deposits.

The 2005 year-end backlog with the major fractional jet customer was approximately $1.5 billion. The remaining $4.8 billion of Cessna’s backlog at the end of 2005 is with other commercial customers covering a wide spectrum of industries. This backlog includes $0.6 billion in orders for the new Mustang aircraft with the first customer deliveries in 2007.

Approximately 45% of our total backlog of $10.7 billion at December 31, 2005 represents orders which are not expected to be filled within our 2006 fiscal year.