Segment Information

Our primary profitability measurements to review a segment’s operating results are Earnings from operations and operating margins. See page 6 for a Summary of Business Segment Data, which is an integral part of this note.

Effective July 1, 2017, we now operate in four reportable segments: BCA, BDS, BGS, and BCC. The new segment, BGS, brings together the Commercial Aviation Services businesses, previously included in the BCA segment, and certain BDS businesses (primarily those previously included in the Global Services & Support segment). Prior year numbers have been revised to conform to the current segment presentation.

BCA develops, produces and markets commercial jet aircraft, principally to the commercial airline industry worldwide.

BDS is engaged in the research, development, production and modification of the following products and related services: manned and unmanned military aircraft and weapons systems, surveillance and engagement, strategic defense and intelligence systems, satellite systems and space exploration.

BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide.

BCC facilitates, arranges, structures and provides selective financing solutions for our Boeing customers.

Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations, intercompany guarantees provided to BCC and eliminations of certain sales between segments. Intersegment revenues, eliminated in Unallocated items, eliminations and other, are shown in the following table.



	Nine months ended September 30				Three months ended September 30
	2017		2016		2017		2016
Commercial Airplanes		$1,224		$1,668		$325		$949
Global Services	38		53		12		17
Boeing Capital	23		13		13		4
Total		$1,285		$1,734		$350		$970

Unallocated Items, Eliminations and other

Unallocated items, eliminations and other includes costs not attributable to business segments as well as intercompany profit eliminations. We generally allocate costs to business segments based on the U.S. federal cost accounting standards. Components of Unallocated items, eliminations and other are shown in the following table.



	Nine months ended September 30						Three months ended September 30
	2017			2016			2017			2016
Share-based plans		($67	)		($50	)		($21	)		($9	)
Deferred compensation	(174		)	(38		)	(78		)	(33		)
Amortization of previously capitalized interest	(72		)	(71		)	(21		)	(23		)
Eliminations and other unallocated items	(437		)	(333		)	(78		)	(135		)
Sub-total	(750		)	(492		)	(198		)	(200		)
Pension	808			129			275			50
Postretirement	146			122			41			38
Pension and Postretirement	954			251			316			88
Total		$204			($241	)		$118			($112	)

Unallocated Pension and Other Postretirement Benefit Expense

Unallocated pension and other postretirement benefit expense represent the portion of pension and other postretirement benefit costs that are not recognized by business segments for segment reporting purposes. Pension costs, comprising GAAP service and prior service costs, are allocated to BCA and the commercial operations at BGS. Pension costs are allocated to BDS and BGS businesses supporting government customers using U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. These costs are allocable to government contracts. Other postretirement benefit costs are allocated to business segments based on CAS, which is generally based on benefits paid.

Assets

Segment assets are summarized in the table below:



	September 30 2017		December 31 2016
Commercial Airplanes		$46,755		$46,745
Defense, Space & Security	15,279		14,123
Global Services	12,144		11,490
Boeing Capital	3,530		4,139
Unallocated items, eliminations and other	13,299		13,500
Total		$91,007		$89,997

Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, Deferred tax assets, capitalized interest and assets held centrally as well as intercompany eliminations.

Goodwill

Segment goodwill balances are summarized in the table below:



	September 30, 2017		December 31, 2016
Commercial Airplanes		$992		$992
Defense, Space & Security	2,860		2,854
Global Services	1,492		1,478
Total		$5,344		$5,324

As a result of the change in our reportable segments, we reallocated goodwill to our new reporting units using a relative fair value approach. We evaluated goodwill for impairment at July 1, 2017 and determined that no impairment existed.