Effective at the beginning of 2020, certain programs were realigned between our Defense, Space & Security segment and Unallocated items, eliminations and other. Business segment data for 2019 has been adjusted to reflect the realignment.

Our primary profitability measurements to review a segment’s operating results are Earnings from operations and operating margins. We operate in four reportable segments: BCA, BDS, BGS, and BCC. All other activities fall within Unallocated items, eliminations and other. See page 6 for the Summary of Business Segment Data, which is an integral part of this note.

BCA develops, produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Revenue on commercial aircraft contracts is recognized at the point in time when an aircraft is completed and accepted by the customer.

BDS engages 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. BDS revenue is generally recognized over the contract term (over time) as costs are incurred.

BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide. BGS segment revenue and costs include certain services provided to other segments. Revenue on commercial spare parts contracts is recognized at the point in time when a spare part is delivered to the customer. Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred.

The following tables present BCA, BDS and BGS revenues from contracts with customers disaggregated in a number of ways, such as geographic location, contract type and the method of revenue recognition. We believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors.



(Dollars in millions)	Three months ended March 31
	2020			2019
Revenue from contracts with customers:
Europe		$1,970			$1,661
Asia	1,159			3,174
Middle East	549			1,110
Other	311			1,538
Total non-U.S. revenues	3,989			7,483
United States	2,174			4,170
Estimated potential concessions and other considerations to 737 MAX customers, net	30
Total revenues from contracts with customers	6,193			11,653
Intersegment revenues eliminated on consolidation	12			169
Total segment revenues		$6,205			$11,822

Revenue recognized on fixed-price contracts	100		%	100		%

Revenue recognized at a point in time	100		%	100		%



(Dollars in millions)	Three months ended March 31
	2020			2019
Revenue from contracts with customers:
U.S. customers		$4,316			$4,883
Non U.S. customers⁽¹⁾	1,726			1,704
Total segment revenue from contracts with customers		$6,042			$6,587

Revenue recognized over time	99		%	98		%

Revenue recognized on fixed-price contracts	67		%	69		%

Revenue from the U.S. government⁽¹⁾	89		%	88		%



(Dollars in millions)	Three months ended March 31
	2020			2019
Revenue from contracts with customers:
Commercial		$2,523			$2,585
Government	2,033			1,997
Total revenues from contracts with customers	4,556			4,582
Intersegment revenues eliminated on consolidation	72			37
Total segment revenues		$4,628			$4,619

Revenue recognized at a point in time	55		%	57		%

Revenue recognized on fixed-price contracts	89		%	89		%

Revenue from the U.S. government⁽¹⁾	35		%	33		%

Our total backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue in future periods as work is performed, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable accounting method.

Our backlog at March 31, 2020 was $438,594. We expect approximately 30% to be converted to revenue through 2021 and approximately 72% through 2024, with the remainder thereafter. The future periods when backlog is expected to convert to revenue could be impacted if the timing of aircraft deliveries is adjusted due to COVID-19 impacts.

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. Such sales include airplanes accounted for as operating leases and considered transferred to the BCC segment. 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.



	Three months ended March 31
	2020			2019
Share-based plans		($18	)		($14	)
Deferred compensation	193			(102		)
Amortization of previously capitalized interest	(23		)	(24		)
Research and development expense, net	(54		)	(78		)
Customer financing impairment				(250		)
Eliminations and other unallocated items	(271		)	(244		)
Unallocated items, eliminations and other		($173	)		($712	)

Pension FAS/CAS service cost adjustment		$255			$274
Postretirement FAS/CAS service cost adjustment	92			90
FAS/CAS service cost adjustment		$347			$364

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. FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. These expenses are included in Other income, net.



	March 31 2020		December 31 2019
Commercial Airplanes		$76,898		$73,995
Defense, Space & Security	15,789		15,757
Global Services	19,043		18,605
Boeing Capital	2,228		2,269
Unallocated items, eliminations and other	29,117		22,999
Total		$143,075		$133,625

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 managed centrally on behalf of the four principle business segments and intercompany eliminations.