Segment Information

We operate in five principal segments: Commercial Airplanes; Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), and Global Services & Support (GS&S), collectively Defense, Space & Security; and Boeing Capital. All other activities fall within Unallocated items, eliminations and other. See page 53 for the Summary of Business Segment Data, which is an integral part of this note.

Effective during the first quarter of 2014, certain programs and contracts were realigned among BDS segments. The BMA Airborne Warning and Control Systems program, F-22 Modernization program and the Airborne Early Warning and Control Peace Eagle contract were realigned from BMA to GS&S. Beginning in the third quarter of 2014, amounts previously reported separately as Other segment and Unallocated items and eliminations are now presented on a combined basis to provide a more meaningful presentation. Segment data for 2013 and 2012 have been adjusted to reflect the changes.

The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides related support services, principally to the commercial airline industry worldwide.

Our BMA segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for global strike, including fighter aircraft and missile systems; vertical lift including rotorcraft and tilt-rotor aircraft; mobility, surveillance and engagement, including battle management, airborne, anti-submarine, transport and tanker aircraft.

Our N&SS segment is engaged in the research, development, production and modification of the following products and related services: electronics and information solutions, including command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR), cyber and information solutions, and intelligence systems; strategic missile and defense systems; space and intelligence systems, including satellites and commercial satellite launch vehicles; and space exploration.

Our GS&S segment provides customers with mission readiness through total support solutions. Our global services business sustains aircraft and systems with a full spectrum of products and services through integrated logistics, including supply chain management and engineering support; maintenance, modification and upgrades for aircraft; and training systems and government services, including pilot and maintenance training. In addition, our GS&S segment is engaged in the research, development, production and modification of airborne surveillance command and control aircraft. GS&S international operations include Boeing Defence U.K. Ltd., Boeing Defence Australia, and Alsalam Aircraft Company, a joint venture.

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

The unallocated activities of Engineering, Operations & Technology (EO&T) and Shared Services Group (SSG), Corporate and intercompany guarantees provided to BCC are included in Unallocated items, eliminations and other. EO&T provides Boeing with technical and functional capabilities, including information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management.

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,	2014		2013		2012
Asia, other than China		$11,900		$12,200		$10,390
Europe	11,898		10,622		10,269
China	11,029		10,555		6,086
Middle East	9,243		9,165		10,285
Canada	1,901		1,486		586
Africa	2,596		621		1,282
Oceania	1,757		1,657		2,043
Latin America, Caribbean and other	2,596		2,725		3,555
Total non-U.S. revenues	52,920		49,031		44,496
United States	37,842		37,592		37,202
Total revenues		$90,762		$86,623		$81,698

Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS, represented 30%, 34% and 33% of consolidated revenues for 2014, 2013 and 2012, respectively. Approximately 3% of operating assets were located outside the United States as of December 31, 2014 and 2013. The information in the following tables is derived directly from the segments’ internal financial reporting used for corporate management purposes.

Depreciation and Amortization



Years ended December 31,	2014		2013		2012
Commercial Airplanes		$674		$632		$614
Defense, Space & Security:
Boeing Military Aircraft	164		131		120
Network & Space Systems	114		120		123
Global Services & Support	75		69		67
Total Defense, Space & Security	353		320		310
Boeing Capital Corporation	97		110		150
Unallocated items, eliminations and other	782		782		737
Total		$1,906		$1,844		$1,811

Capital Expenditures



Years ended December 31,	2014		2013		2012
Commercial Airplanes		$698		$694		$665
Defense, Space & Security:
Boeing Military Aircraft	175		186		153
Network & Space Systems	93		96		115
Global Services & Support	68		48		57
Total Defense, Space & Security	336		330		325
Unallocated items, eliminations and other	1,202		1,074		713
Total		$2,236		$2,098		$1,703

Unallocated capital expenditures relate primarily to assets managed by SSG on behalf of the five principal segments.

We recorded Earnings from operations associated with our cost and equity method investments of $58, $25 and $77 in our Commercial Airplanes segment and $229, $203 and $196 in BDS, primarily in our N&SS segment, for the years ended December 31, 2014, 2013 and 2012, respectively.

For segment reporting purposes, we record Commercial Airplanes segment revenues and cost of sales for airplanes transferred to other segments. Such transfers may include airplanes accounted for as operating leases and considered transferred to the BCC segment and airplanes transferred to the BDS segment for further modification prior to delivery to the customer. The revenues and cost of sales for these transfers are eliminated in the Unallocated items and eliminations caption. For segment reporting purposes, we record BDS revenues and cost of sales for the modification performed on airplanes received from Commercial Airplanes when the airplane is delivered to the customer or at the attainment of performance milestones.

Intersegment revenues, eliminated in Unallocated items, eliminations and other, are shown in the following table.



Years ended December 31,	2014		2013		2012
Commercial Airplanes		$1,822		$879		$1,215
Boeing Capital	19		29		49
Total		$1,841		$908		$1,264

Unallocated Items, Eliminations and other

Unallocated items, eliminations and other includes costs not attributable to business segments as well as intercompany profit eliminations. 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,	2014			2013			2012
Share-based plans		($67	)		($95	)		($81	)
Deferred compensation	(44		)	(238		)	(75		)
Amortization of previously capitalized interest	(72		)	(69		)	(70		)
Eliminations and other unallocated items	(593		)	(859		)	(452		)
Sub-total	(776		)	(1,261		)	(678		)
Pension	(1,469		)	(1,374		)	(787		)
Postretirement	82			60			(112		)
Pension and Postretirement	(1,387		)	(1,314		)	(899		)
Total		($2,163	)		($2,575	)		($1,577	)

Unallocated Pension and Other Postretirement Benefit Expense

Unallocated pension and other postretirement benefit expense represents the portion of pension and other postretirement benefit costs that are not recognized by business segments for segment reporting purposes. Through 2012, the business segments have been allocated pension and other postretirement benefit costs using U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than Generally Accepted Accounting Principles in the United States of America (GAAP). Beginning in 2013, pension costs, comprising GAAP service and prior service costs, are allocated to Commercial Airplanes. BDS continues to be allocated CAS pension costs which are allocable to government contracts. Other postretirement benefit costs will continue to be allocated to business segments based on CAS, which is generally based on benefits paid. Prior year allocations have not been adjusted.

Assets

Segment assets are summarized in the table below.



December 31,	2014		2013
Commercial Airplanes		$55,149		$49,520
Defense, Space & Security:
Boeing Military Aircraft	7,232		5,872
Network & Space Systems	5,895		6,450
Global Services & Support	4,586		5,040
Total Defense, Space & Security	17,713		17,362
Boeing Capital	3,525		3,914
Unallocated items, eliminations and other	22,811		21,867
Total		$99,198		$92,663

Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, Deferred tax assets, capitalized interest and assets held by SSG as well as intercompany eliminations.