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Segment and Revenue Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
Our 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 58 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 31,202220212020
Asia$8,393 $5,845 $5,931 
Europe7,916 8,967 7,961 
Middle East5,047 4,653 5,308 
Canada1,612 969 1,302 
Oceania1,576 1,147 832 
Africa418 239 114 
Latin America, Caribbean and other2,412 1,376 229 
Total non-U.S. revenues27,374 23,196 21,677 
United States39,218 39,076 36,979 
Estimated potential concessions and other considerations to 737 MAX customers16 14 (498)
Total revenues$66,608 $62,286 $58,158 
Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 40%, 49% and 51% of consolidated revenues for 2022, 2021 and 2020, respectively. Approximately 4% of operating assets were located outside the United States as of December 31, 2022 and 2021.
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,
202220212020
Revenue from contracts with customers:
Asia$4,484 $2,792 $2,679 
Europe4,038 4,334 3,872 
Middle East2,003 1,098 1,647 
Other non-U.S.3,042 1,681 513 
Total non-U.S. revenues13,567 9,905 8,711 
United States12,167 9,472 7,899 
Estimated potential concessions and other considerations to 737 MAX customers16 14 (498)
Total revenues from contracts with customers25,750 19,391 16,112 
Intersegment revenues, eliminated on consolidation117 102 50 
Total segment revenues$25,867 $19,493 $16,162 
Revenue recognized on fixed-price contracts100 %100 %100 %
Revenue recognized at a point in time100 %100 %100 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
Years ended December 31,
202220212020
Revenue from contracts with customers:
U.S. customers$17,144 $19,869 $19,662 
Non-U.S. customers(1)
6,018 6,671 6,595 
Total segment revenue from contracts with customers$23,162 $26,540 $26,257 
Revenue recognized over time99 %99 %98 %
Revenue recognized on fixed-price contracts60 %68 %69 %
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, 202220212020
Revenue from contracts with customers:
Commercial$9,560 $7,527 $6,936 
Government7,681 8,553 8,368 
Total revenues from contracts with customers17,241 16,080 15,304 
Intersegment revenues eliminated on consolidation370 248 239 
Total segment revenues$17,611 $16,328 $15,543 
Revenue recognized at a point in time50 %45 %47 %
Revenue recognized on fixed-price contracts88 %86 %87 %
Revenue from the U.S. government(1)
33 %40 %41 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Earnings in Equity Method Investments
For the year ended December 31, 2022, our share of income from equity method investments was $56, primarily driven by investments held in Unallocated items, eliminations and other. For the years ended December 31, 2021 and 2020, our share of income from equity method investments was $40 and $86, primarily in our BDS segment.
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, 2022 was $404,381. We expect approximately 17% to be converted to revenue through 2023 and approximately 71% through 2026, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to timing of 787 deliveries from inventory, timing of 737 MAX delivery resumption in China, timing of entry into service of the 777X, 737-7 and/or 737-10, and the lingering effects of the COVID-19 pandemic.
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 aircraft sold to our BCC segment that are leased by BCC to customers 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 (expense)/income are shown in the following table.
Years ended December 31,202220212020
Share-based plans($114)($174)($120)
Deferred compensation117 (126)(93)
Amortization of previously capitalized interest(95)(107)(95)
Research and development expense, net(278)(184)(240)
Eliminations and other unallocated items(1,162)(676)(1,807)
Unallocated items, eliminations and other($1,532)($1,267)($2,355)
Pension FAS/CAS service cost adjustment$849 $882 $1,024 
Postretirement FAS/CAS service cost adjustment294 291 359 
FAS/CAS service cost adjustment$1,143 $1,173 $1,383 
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 31,20222021
Commercial Airplanes$75,212 $75,863 
Defense, Space & Security14,426 14,974 
Global Services16,149 16,397 
Boeing Capital1,510 1,735 
Unallocated items, eliminations and other29,803 29,583 
Total$137,100 $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.
Capital Expenditures
Years ended December 31,202220212020
Commercial Airplanes$218 $177 $322 
Defense, Space & Security202 199 172 
Global Services130 94 127 
Unallocated items, eliminations and other672 510 682 
Total$1,222 $980 $1,303 
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 31,202220212020
Commercial Airplanes$508 $535 $559 
Defense, Space & Security
238 233 251 
Global Services346 414 408 
Boeing Capital Corporation46 59 66 
Centrally Managed Assets (1)
841 903 962 
Total$1,979 $2,144 $2,246 
(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 2022, $643 was included in the primary business segments, of which $360, $230 and $53 was included in BCA, BDS and BGS, respectively. 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.