Segment Information

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). All other activities fall within Unallocated items, eliminations and other. See page 51 for the Summary of Business Segment Data, which is an integral part of this note. 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.

Revenues, including foreign military sales, are reported by customer location and consist of the following:



Years ended December 31,	2017		2016		2015
Asia, other than China		$8,899		$10,553		$13,433
Europe	11,457		13,790		12,248
China	11,911		10,312		12,556
Middle East	12,287		13,297		10,846
Oceania	2,061		1,843		2,601
Canada	2,197		2,076		1,870
Africa	755		1,999		1,398
Latin America, Caribbean and other	1,494		1,936		1,875
Total non-U.S. revenues	51,061		55,806		56,827
United States	42,331		38,765		39,287
Total revenues		$93,392		$94,571		$96,114

Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 31%, 23% and 27% of consolidated revenues for 2017, 2016 and 2015, respectively. Approximately 5% and 4% of operating assets were located outside the United States as of December 31, 2017 and 2016. The information in the following tables is derived directly from the segments’ internal financial reporting used for corporate management purposes.

Depreciation and Amortization



Years ended December 31,	2017		2016		2015
Commercial Airplanes		$521		$442		$388
Defense, Space, & Security	252		220		248
Global Services	322		312		317
Boeing Capital Corporation	70		83		87
Unallocated items, eliminations and other	904		853		793
Total		$2,069		$1,910		$1,833

Capital Expenditures



Years ended December 31,	2017		2016		2015
Commercial Airplanes		$636		$830		$819
Defense, Space, & Security	210		290		226
Global Services	180		209		132
Unallocated items, eliminations and other	713		1,284		1,273
Total		$1,739		$2,613		$2,450

Unallocated capital expenditures relate primarily to assets managed centrally on behalf of the five principal segments.

We recorded Earnings from operations associated with our equity method investments of $233, $303 and $274, primarily in our BDS segment, for the years ended December 31, 2017, 2016 and 2015, respectively.

For segment reporting purposes, we record Commercial Airplanes segment revenues and cost of sales for airplanes transferred to other segments. Such transfers may include airplanes accounted for as operating leases and considered transferred to the BCC segment and airplanes transferred to the BDS segment for further modification prior to delivery to the customer. In addition, BGS segment revenue and costs include certain services provided to other segments. The revenues and cost of sales for these transfers are eliminated in the Unallocated items and eliminations caption. For segment reporting purposes, we record BDS revenues and cost of sales for the modification performed on airplanes received from Commercial Airplanes when the airplane is delivered to the customer or at the attainment of performance milestones.

Intersegment revenues, eliminated in Unallocated items, eliminations and other, are shown in the following table.



Years ended December 31,	2017		2016		2015
Commercial Airplanes		$1,571		$2,001		$1,700
Global Services	49		75		95
Boeing Capital	28		16		15
Total		$1,648		$2,092		$1,810

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.



Years ended December 31,	2017			2016			2015
Share-based plans		($77	)		($66	)		($76	)
Deferred compensation	(240		)	(46		)	(63		)
Amortization of previously capitalized interest	(98		)	(94		)	(90		)
Eliminations and other unallocated items	(640		)	(527		)	(511		)
Sub-total	(1,055		)	(733		)	(740		)
Pension	1,120			217			(421		)
Postretirement	188			153			123
Pension and Postretirement	1,308			370			(298		)
Total		$253			($363	)		($1,038	)

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. 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.



December 31,	2017		2016
Commercial Airplanes		$47,737		$46,745
Defense, Space & Security	15,865		14,123
Global Services	12,353		11,490
Boeing Capital	3,156		4,139
Unallocated items, eliminations and other	13,222		13,500
Total		$92,333		$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.