XML 47 R27.htm IDEA: XBRL DOCUMENT v3.23.1
Segment and Revenue Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
Segment results reflect the realignment of the Boeing Customer Financing team and portfolio into the BCA segment during the first quarter of 2023. Interest and debt expense now includes interest and debt expense previously attributable to Boeing Capital and classified as a component of Total Costs and Expenses ("Cost of Sales"). Prior period amounts have been reclassified to conform to the current period presentation.
Our primary profitability measurements to review a segment’s operating results are Earnings/(loss) from operations and operating margins. We operate in three reportable segments: BCA, BDS, and BGS. 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 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.
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:
(Dollars in millions)Three months ended March 31
20232022
Revenue from contracts with customers:
Europe$1,355 $1,034 
Latin America and Caribbean106 828 
Asia806 729 
Middle East716 318 
Other non-U.S.247 181 
Total non-U.S. revenues3,230 3,090 
United States3,435 1,125 
Estimated potential concessions and other considerations to 737 MAX customers, net (34)
Total revenues from contracts with customers6,665 4,181 
Intersegment revenues eliminated on consolidation39 13 
Total segment revenues$6,704 $4,194 
Revenue recognized on fixed-price contracts100 %100 %
Revenue recognized at a point in time100 %99 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Three months ended March 31
20232022
Revenue from contracts with customers:
U.S. customers$5,310 $4,148 
Non-U.S. customers(1)
1,229 1,335 
Total segment revenue from contracts with customers$6,539 $5,483 
Revenue recognized over time99 %99 %
Revenue recognized on fixed-price contracts61 %63 %
Revenue from the U.S. government(1)
91 %89 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
(Dollars in millions)Three months ended March 31
20232022
Revenue from contracts with customers:
Commercial$2,716 $2,276 
Government1,926 1,968 
Total revenues from contracts with customers4,642 4,244 
Intersegment revenues eliminated on consolidation78 70 
Total segment revenues$4,720 $4,314 
Revenue recognized at a point in time51 %49 %
Revenue recognized on fixed-price contracts87 %88 %
Revenue from the U.S. government(1)
36 %35 %
(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, 2023 was $411,446. We expect approximately 33% to be converted to revenue through 2024 and approximately 83% through 2027, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to timing of 737 and 787 deliveries from inventory and timing of entry into service of the 777X, 737-7 and/or 737-10.
Unallocated Items, Eliminations and other
Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. federal cost accounting standards (CAS). Components of Unallocated items, eliminations and other (expense)/income are shown in the following table.
Three months ended March 31
20232022
Share-based plans($52)($83)
Deferred compensation(54)42 
Amortization of previously capitalized interest(23)(23)
Research and development expense, net(76)(52)
Eliminations and other unallocated items(255)(135)
Unallocated items, eliminations and other
($460)($251)
Pension FAS/CAS service cost adjustment$223 $208 
Postretirement FAS/CAS service cost adjustment68 75 
FAS/CAS service cost adjustment$291 $283 
Pension and Other Postretirement Benefit Expense
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
2023		December 31
2022
Commercial Airplanes$76,879 $76,825 
Defense, Space & Security15,311 14,426 
Global Services16,491 16,149 
Unallocated items, eliminations and other27,666 29,700 
Total$136,347 $137,100 
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 three principal business segments and intercompany eliminations.