Segment Information

12 Months Ended

Dec. 31, 2016

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 (BCC). 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: strategic defense and intelligence systems, including strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR), cyber and information solutions, and intelligence systems; satellite systems, including government and commercial satellites 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.

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

Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations, as well as technical and functional capabilities, including information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. It also includes intercompany guarantees provided to BCC and eliminations of certain sales between BCA, BCC and BDS.

In November 2016, we announced plans for the formation of Boeing Global Services (BGS), which will bring together certain Commercial Aviation Services businesses, currently included in the Commercial Airplanes segment, and certain BDS businesses (primarily those currently included in the GS&S segment). We expect Boeing Global Services to be operational during the second half of 2017. We will continue to report using the existing segment structure until BGS is operational and has discrete financial information that is being provided to the Chief Operating Decision Maker.

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,	2016		2015		2014
Asia, other than China		$10,553		$13,433		$11,900
Europe	13,790		12,248		11,898
China	10,312		12,556		11,029
Middle East	13,297		10,846		9,243
Oceania	1,843		2,601		1,757
Canada	2,076		1,870		1,901
Africa	1,999		1,398		2,596
Latin America, Caribbean and other	1,936		1,875		2,596
Total non-U.S. revenues	55,806		56,827		52,920
United States	38,765		39,287		37,842
Total revenues		$94,571		$96,114		$90,762

Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS, represented 23%, 27% and 30% of consolidated revenues for 2016, 2015 and 2014, respectively. Approximately 4% of operating assets were located outside the United States as of December 31, 2016 and 2015. 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,	2016		2015		2014
Commercial Airplanes		$682		$625		$674
Defense, Space & Security:
Boeing Military Aircraft	113		142		164
Network & Space Systems	106		106		114
Global Services & Support	73		80		75
Total Defense, Space & Security	292		328		353
Boeing Capital Corporation	83		87		97
Unallocated items, eliminations and other	853		793		782
Total		$1,910		$1,833		$1,906

Capital Expenditures

Years ended December 31,	2016		2015		2014
Commercial Airplanes		$993		$889		$698
Defense, Space & Security:
Boeing Military Aircraft	161		128		175
Network & Space Systems	63		98		93
Global Services & Support	112		62		68
Total Defense, Space & Security	336		288		336
Unallocated items, eliminations and other	1,284		1,273		1,202
Total		$2,613		$2,450		$2,236

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

We recorded Earnings from operations associated with our cost and equity method investments of $46, $64 and $58 in our Commercial Airplanes segment and $257, $210 and $229 in BDS, primarily in our N&SS segment, for the years ended December 31, 2016, 2015 and 2014, 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,	2016		2015		2014
Commercial Airplanes		$2,142		$1,831		$1,822
Boeing Capital	16		15		19
Total		$2,158		$1,846		$1,841

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,	2016			2015			2014
Share-based plans		($66	)		($76	)		($67	)
Deferred compensation	(46		)	(63		)	(44		)
Amortization of previously capitalized interest	(94		)	(90		)	(72		)
Eliminations and other unallocated items	(527		)	(511		)	(593		)
Sub-total	(733		)	(740		)	(776		)
Pension	217			(421		)	(1,469		)
Postretirement	153			123			82
Pension and Postretirement	370			(298		)	(1,387		)
Total		($363	)		($1,038	)		($2,163	)

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,	2016		2015
Commercial Airplanes		$55,527		$57,253
Defense, Space & Security:
Boeing Military Aircraft	6,698		6,793
Network & Space Systems	6,113		6,307
Global Services & Support	4,020		4,567
Total Defense, Space & Security	16,831		17,667
Boeing Capital	4,139		3,492
Unallocated items, eliminations and other	13,500		15,996
Total		$89,997		$94,408

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 centrally as well as intercompany eliminations.