Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

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 54 for the Summary of Business Segment Data, which is an integral part of this note.

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; aircraft modernization and sustainment; 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,	2015		2014		2013
Asia, other than China		$13,433		$11,900		$12,200
Europe	12,248		11,898		10,622
China	12,556		11,029		10,555
Middle East	10,846		9,243		9,165
Oceania	2,601		1,757		1,657
Canada	1,870		1,901		1,486
Africa	1,398		2,596		621
Latin America, Caribbean and other	1,875		2,596		2,725
Total non-U.S. revenues	56,827		52,920		49,031
United States	39,287		37,842		37,592
Total revenues		$96,114		$90,762		$86,623

Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS, represented 27%, 30% and 34% of consolidated revenues for 2015, 2014 and 2013, respectively. Approximately 4% and 3% of operating assets were located outside the United States as of December 31, 2015 and 2014. 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,	2015		2014		2013
Commercial Airplanes		$625		$674		$632
Defense, Space & Security:
Boeing Military Aircraft	142		164		131
Network & Space Systems	106		114		120
Global Services & Support	80		75		69
Total Defense, Space & Security	328		353		320
Boeing Capital Corporation	87		97		110
Unallocated items, eliminations and other	793		782		782
Total		$1,833		$1,906		$1,844

Capital Expenditures

Years ended December 31,	2015		2014		2013
Commercial Airplanes		$889		$698		$694
Defense, Space & Security:
Boeing Military Aircraft	128		175		186
Network & Space Systems	98		93		96
Global Services & Support	62		68		48
Total Defense, Space & Security	288		336		330
Unallocated items, eliminations and other	1,273		1,202		1,074
Total		$2,450		$2,236		$2,098

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 $64, $58 and $25 in our Commercial Airplanes segment and $210, $229 and $203 in BDS, primarily in our N&SS segment, for the years ended December 31, 2015, 2014 and 2013, 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,	2015		2014		2013
Commercial Airplanes		$1,831		$1,822		$879
Boeing Capital	15		19		29
Total		$1,846		$1,841		$908

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,	2015			2014			2013
Share-based plans		($76	)		($67	)		($95	)
Deferred compensation	(63		)	(44		)	(238		)
Amortization of previously capitalized interest	(90		)	(72		)	(69		)
Eliminations and other unallocated items	(511		)	(593		)	(859		)
Sub-total	(740		)	(776		)	(1,261		)
Pension	(421		)	(1,469		)	(1,374		)
Postretirement	123			82			60
Pension and Postretirement	(298		)	(1,387		)	(1,314		)
Total		($1,038	)		($2,163	)		($2,575	)

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. Pension costs, comprising Generally Accepted Accounting Principles in the United States of America (GAAP) service and prior service costs, are allocated to Commercial Airplanes. Pension costs are allocated to BDS 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.

Assets

Segment assets are summarized in the table below.

December 31,	2015		2014
Commercial Airplanes		$57,253		$55,149
Defense, Space & Security:
Boeing Military Aircraft	6,811		7,229
Network & Space Systems	6,307		5,895
Global Services & Support	4,549		4,589
Total Defense, Space & Security	17,667		17,713
Boeing Capital	3,492		3,525
Unallocated items, eliminations and other	15,996		16,534
Total		$94,408		$92,921

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.