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Segment and Revenue Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
We operate in three reportable segments: BCA, BDS, and BGS. All other activities fall within Unallocated items, eliminations and other. See page 59 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.
Our chief operating decision maker is currently our President and Chief Executive Officer (CEO). The primary profitability measurement used by the CEO to review segment operating results is Segment operating (loss)/earnings. The CEO uses Segment operating (loss)/earnings to allocate resources (including employees, financial and capital resources) for each segment predominantly in the annual planning process. Segment operating (loss)/earnings is used to monitor segment results compared to prior period, forecasted results, and the annual plan.
The following table reconciles segment Revenues to Segment operating (loss)/earnings:
BCABDSBGS
For the year ended December 31, 2022
Revenues$26,026 $23,162 $17,611 
Less:
Research and development expense, net1,510 945 119 
Other segment items(1)
26,857 25,761 14,765 
Segment operating (loss)/earnings($2,341)($3,544)$2,727 
For the year ended December 31, 2023
Revenues$33,901 $24,933 $19,127 
Less:
Research and development expense, net2,036 919 107 
Other segment items(1)
33,500 25,778 15,691 
Segment operating (loss)/earnings($1,635)($1,764)$3,329 
For the year ended December 31, 2024
Revenues$22,861 $23,918 $19,954 
Less:
Research and development expense, net2,386 917 132 
Other segment items(1)
28,444 28,414 16,204 
Segment operating (loss)/earnings($7,969)($5,413)$3,618 
(1)    Primarily includes costs of products and services and general and administrative expenses.
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 31,202420232022
Asia$11,994 $10,013 $8,393 
Europe8,734 10,520 7,916 
Middle East4,635 6,594 5,047 
Oceania1,565 1,655 1,576 
Canada1,472 1,256 1,612 
Africa1,143 825 418 
Latin America, Caribbean and other1,246 1,524 2,412 
Total non-U.S. revenues30,789 32,387 27,374 
United States36,171 45,380 39,218 
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries
(443)27 16 
Total revenues$66,517 $77,794 $66,608 
Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 42%, 37% and 40% of consolidated revenues for 2024, 2023 and 2022, respectively. Approximately 3% and 4% of operating assets were located outside the United States as of December 31, 2024 and 2023.
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,
202420232022
Revenue from contracts with customers:
Asia$8,060 $6,328 $4,488 
Europe3,956 6,172 4,085 
Middle East2,012 4,311 2,003 
Other non-U.S.1,815 2,431 3,042 
Total non-U.S. revenues15,843 19,242 13,618 
United States7,326 14,501 12,275 
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries
(443)27 16 
Total revenues from contracts with customers22,726 33,770 25,909 
Intersegment revenues, eliminated on consolidation135 131 117 
Total segment revenues$22,861 $33,901 $26,026 
Revenue recognized on fixed-price contracts100 %100 %100 %
Revenue recognized at a point in time99 %99 %99 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
Years ended December 31,
202420232022
Revenue from contracts with customers:
U.S. customers$18,589 $20,051 $17,144 
Non-U.S. customers(1)
5,329 4,882 6,018 
Total segment revenue from contracts with customers$23,918 $24,933 $23,162 
Revenue recognized over time99 %99 %99 %
Revenue recognized on fixed-price contracts54 %58 %60 %
Revenue from the U.S. government(1)
91 %91 %89 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
Years ended December 31, 202420232022
Revenue from contracts with customers:
Commercial$11,736 $11,020 $9,560 
Government7,832 7,751 7,681 
Total revenues from contracts with customers19,568 18,771 17,241 
Intersegment revenues eliminated on consolidation386 356 370 
Total segment revenues$19,954 $19,127 $17,611 
Revenue recognized at a point in time53 %51 %50 %
Revenue recognized on fixed-price contracts86 %87 %88 %
Revenue from the U.S. government(1)
29 %30 %33 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Earnings in Equity Method Investments
During the years ended December 31, 2024, 2023, and 2022, our share of income from equity method investments was $104, $70, and $56, respectively. In 2024 and 2023, earnings in equity method investments were primarily driven by investments held at our BDS segment. In 2022, earnings in equity method investments were primarily driven by investments held in Unallocated items, eliminations and other.
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, 2024 was $521,336. We expect approximately 14% to be converted to revenue through 2025 and approximately 59% through 2028, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. We may experience reductions to backlog and/or significant order cancellations due to various factors including delivery delays, production disruptions and delays to 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. Government Cost Accounting Standards (CAS). Components of Unallocated items, eliminations and other income/(expense) are shown in the following table.
Years ended December 31,202420232022
Share-based plans$171 $62 ($114)
Deferred compensation(114)(188)117 
Amortization of previously capitalized interest(93)(95)(95)
Research and development expense, net(377)(315)(278)
Eliminations and other unallocated items(1,634)(1,223)(1,134)
Unallocated items, eliminations and other($2,047)($1,759)($1,504)
During the year ended December 31, 2024, Eliminations and other unallocated items included an earnings charge of $244 that reflects a fine that would be paid if an agreement with the U.S. Department of Justice is approved by the federal district court. For additional discussion, see Note 22 to our Consolidated Financial Statements.
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. Components of FAS/CAS service cost adjustment are shown in the following table:
Years ended December 31,202420232022
Pension FAS/CAS service cost adjustment$811 $799 $849 
Postretirement FAS/CAS service cost adjustment293 257 294 
FAS/CAS service cost adjustment$1,104 $1,056 $1,143 
Assets
Segment assets are summarized in the table below.
December 31,20242023
Commercial Airplanes$84,177 $77,047 
Defense, Space & Security15,350 14,921 
Global Services16,704 16,193 
Unallocated items, eliminations and other40,132 28,851 
Total$156,363 $137,012 
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.
Capital Expenditures
Years ended December 31,202420232022
Commercial Airplanes$508 $420 $218 
Defense, Space & Security296 192 202 
Global Services212 127 130 
Unallocated items, eliminations and other1,214 788 672 
Total$2,230 $1,527 $1,222 
Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the three principal business segments.
Depreciation and Amortization
Years ended December 31,202420232022
Commercial Airplanes$400 $464 $554 
Defense, Space & Security
209 219 238 
Global Services304 320 346 
Centrally Managed Assets (1)
923 858 841 
Total$1,836 $1,861 $1,979 
(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 allocated to business segments based on usage and occupancy. In 2024, $705 was allocated to the primary business segments, of which $339, $289 and $77 was allocated to BCA, BDS and BGS, respectively. In 2023, $650 was allocated the primary business segments, of which $311, $264 and $75 was allocated to BCA, BDS and BGS, respectively. In 2022, $644 was allocated to the primary business segments, of which $361, $230 and $53 was allocated to BCA, BDS and BGS, respectively.