Segment and Revenue Information

3 Months Ended

Mar. 31, 2022

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 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.

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

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 consist of the following:

(Dollars in millions)	Three months ended March 31
	2022		2021
Revenue from contracts with customers:
Europe	$1,025		$873
Latin America and Caribbean	828		531
Asia	728		363
Middle East	318		129
Other	181		45
Total non-U.S. revenues	3,080		1,941
United States	1,102		2,353
Estimated potential concessions and other considerations to 737 MAX customers, net	(34)		(30)
Total revenues from contracts with customers	4,148		4,264
Intersegment revenues eliminated on consolidation	13		5
Total segment revenues	$4,161		$4,269
Revenue recognized on fixed-price contracts	100	%	100	%
Revenue recognized at a point in time	100	%	100	%

BDS revenues on contracts with customers, based on the customer's location, consist of the following:

(Dollars in millions)	Three months ended March 31
	2022		2021
Revenue from contracts with customers:
U.S. customers	$4,148		$5,520
Non U.S. customers(1)	1,335		1,665
Total segment revenue from contracts with customers	$5,483		$7,185
Revenue recognized over time	99	%	99	%
Revenue recognized on fixed-price contracts	63	%	70	%
Revenue from the U.S. government(1)	89	%	90	%

(1)Includes revenues earned from foreign military sales through the U.S. government.

BGS revenues consist of the following:

(Dollars in millions)	Three months ended March 31
	2022		2021
Revenue from contracts with customers:
Commercial	$2,276		$1,625
Government	1,968		2,070
Total revenues from contracts with customers	4,244		3,695
Intersegment revenues eliminated on consolidation	70		54
Total segment revenues	$4,314		$3,749
Revenue recognized at a point in time	49	%	43	%
Revenue recognized on fixed-price contracts	88	%	87	%
Revenue from the U.S. government(1)	35	%	43	%

(1)Includes revenues earned from foreign military sales through the U.S. government.

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 March 31, 2022 was $370,835. We expect approximately 34% to be converted to revenue through 2023 and approximately 86% through 2026, 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 (CAS). Components of Unallocated items, eliminations and other are shown in the following table.

	Three months ended March 31
	2022	2021
Share-based plans	($83)	($128)
Deferred compensation	42	(52)
Amortization of previously capitalized interest	(23)	(22)
Research and development expense, net	(52)	(42)
Eliminations and other unallocated items	(144)	(120)
Unallocated items, eliminations and other	($260)	($364)
Pension FAS/CAS service cost adjustment	$208	$193
Postretirement FAS/CAS service cost adjustment	75	77
FAS/CAS service cost adjustment	$283	$270

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 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:

	March 31 2022	December 31 2021
Commercial Airplanes	$76,784	$75,863
Defense, Space & Security	14,952	14,974
Global Services	16,238	16,397
Boeing Capital	1,656	1,735
Unallocated items, eliminations and other	26,171	29,583
Total	$135,801	$138,552

Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the four principal business segments and intercompany eliminations.