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Segment and Revenue Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue InformationOur primary profitability measurements to review a segment’s operating results are Earnings/(loss) 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 63 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 products and 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.
BCC facilitates, arranges, structures and provides selective financing solutions for our customers.
While our principal operations are in the United States, Canada and Australia, some key suppliers and subcontractors are located in Europe and Japan. Revenues, including foreign military sales, are reported by customer location and consisted of the following:
Years ended December 31,202120202019
Europe$8,967 $7,961 $10,366 
Asia5,845 5,931 16,346 
Middle East4,653 5,308 9,272 
Canada969 1,302 2,019 
Oceania1,147 832 2,006 
Africa239 114 1,113 
Latin America, Caribbean and other1,376 229 1,015 
Total non-U.S. revenues23,196 21,677 42,137 
United States39,076 36,979 42,681 
Estimated potential concessions and other considerations to 737 MAX customers, net(1)
14 (498)(8,259)
Total revenues$62,286 $58,158 $76,559 
(1) Net of insurance recoveries
Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 49%, 51% and 39% of consolidated revenues for 2021, 2020 and 2019, respectively. Approximately 4% of operating assets were located outside the United States as of December 31, 2021 and 2020.
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.
BCA revenues by customer location consisted of the following:
Years ended December 31,
202120202019
Revenue from contracts with customers:
Europe$4,334 $3,872 $5,829 
Middle East1,098 1,647 5,761 
Asia2,792 2,679 12,446 
Other1,681 513 3,450 
Total non-U.S. revenues9,905 8,711 27,486 
United States9,472 7,899 12,676 
Estimated potential concessions and other considerations to 737 MAX customers, net(1)
14 (498)(8,259)
Total revenues from contracts with customers19,391 16,112 31,903 
Intersegment revenues, eliminated on consolidation102 50 352 
Total segment revenues$19,493 $16,162 $32,255 
Revenue recognized on fixed-price contracts100 %100 %100 %
Revenue recognized at a point in time100 %100 %100 %
(1) Net of insurance recoveries
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
Years ended December 31,
202120202019
Revenue from contracts with customers:
U.S. customers$19,869 $19,662 $19,465 
Non-U.S. customers(1)
6,671 6,595 6,630 
Total segment revenue from contracts with customers$26,540 $26,257 $26,095 
Revenue recognized over time99 %98 %98 %
Revenue recognized on fixed-price contracts68 %69 %70 %
Revenue from the U.S. government(1)
89 %89 %89 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
Years ended December 31, 202120202019
Revenue from contracts with customers:
Commercial$7,527 $6,936 $10,167 
Government8,553 8,368 8,107 
Total revenues from contracts with customers16,080 15,304 18,274 
Intersegment revenues eliminated on consolidation248 239 194 
Total segment revenues$16,328 $15,543 $18,468 
Revenue recognized at a point in time45 %47 %55 %
Revenue recognized on fixed-price contracts86 %87 %90 %
Revenue from the U.S. government(1)
40 %41 %34 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Earnings in Equity Method Investments
Our share of income or loss from equity method investments was $40, $86 and $90, primarily in our BDS segment, for the years ended December 31, 2021, 2020 and 2019, respectively.
Backlog
Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model.
Our backlog at December 31, 2021 was $377,499. We expect approximately 17% to be converted to revenue through 2022 and approximately 74% through 2025, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to 787 production issues and associated rework, timing of 737 MAX delivery resumption in China, timing of entry into service of the 777X, 737 MAX 7 and/or 737 MAX 10, and COVID-19 impacts.
Unallocated Items, Eliminations and other
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.
Years ended December 31,202120202019
Share-based plans($174)($120)($65)
Deferred compensation(126)(93)(174)
Amortization of previously capitalized interest(107)(95)(89)
Research and development expense, net(184)(240)(401)
Customer financing impairment(250)
Litigation(109)
Eliminations and other unallocated items(676)(1,807)(985)
Unallocated items, eliminations and other($1,267)($2,355)($2,073)
Pension FAS/CAS service cost adjustment$882 $1,024 $1,071 
Postretirement FAS/CAS service cost adjustment291 359 344 
FAS/CAS service cost adjustment$1,173 $1,383 $1,415 
Pension and Other Postretirement Benefit Expense
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 Financial Accounting Standards (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.
Assets
Segment assets are summarized in the table below.
December 31,20212020
Commercial Airplanes$75,863 $77,973 
Defense, Space & Security14,974 14,256 
Global Services16,397 17,399 
Boeing Capital1,735 1,978 
Unallocated items, eliminations and other29,583 40,530 
Total$138,552 $152,136 
Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest, assets managed centrally on behalf of the four principal business segments and intercompany eliminations. From December 31, 2020 to December 31, 2021, assets in Unallocated items, eliminations and other decreased primarily due to reductions in short-term and other investment balances.
Capital Expenditures
Years ended December 31,202120202019
Commercial Airplanes$177 $322 $433 
Defense, Space & Security199 172 189 
Global Services94 127 218 
Unallocated items, eliminations and other510 682 994 
Total$980 $1,303 $1,834 
Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the four principal business segments.
Depreciation and Amortization
Years ended December 31,202120202019
Commercial Airplanes$535 $559 $580 
Defense, Space & Security
233 251 256 
Global Services414 408 424 
Boeing Capital Corporation59 66 64 
Centrally Managed Assets (1)
903 962 947 
Total$2,144 $2,246 $2,271 
(1)Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments. Depreciation and amortization for centrally managed assets are included in segment operating earnings based on usage and occupancy. In 2021, $668 was included in the primary business segments, of which $386, $222 and $60 was included in BCA, BDS and BGS, respectively. In 2020, $689 was included in the primary business segments, of which $397, $236 and $56 was included in BCA, BDS and BGS, respectively. In 2019, $717 was included in the primary business segments, of which $407, $257 and $53 was included in BCA, BDS and BGS, respectively.