Our primary profitability measurements to review a segment’s operating results are Earnings from operations and operating margins. We operate in four reportable segments: BCA, BDS, BGS, and BCC. 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.

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. Revenue on certain military derivative aircraft contracts is recognized over the contract term (over time) as costs are incurred.

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 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.

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 consist of the following:



Years ended December 31,	2018		2017		2016
Asia, other than China		$12,141		$9,195		$9,892
Europe	12,976		11,240		13,018
China	13,764		11,932		10,289
Middle East	9,745		11,433		12,251
Oceania	2,298		1,931		1,693
Canada	2,583		2,212		2,084
Africa	1,486		815		1,990
Latin America, Caribbean and other	1,458		1,541		1,972
Total non-U.S. revenues	56,451		50,299		53,189
United States	44,676		43,706		40,307
Total revenues		$101,127		$94,005		$93,496

Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 31%, 31% and 30% of consolidated revenues for 2018, 2017 and 2016, respectively. Approximately 4% of operating assets were located outside the United States as of December 31, 2018 and 2017.

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.



Years ended December 31,	2018			2017			2016
Revenue from contracts with customers:
Europe		$9,719			$8,478			$10,124
China	13,068			10,982			9,819
Asia, other than China	8,274			6,482			7,438
Middle East	5,876			8,927			9,505
Other	5,185			4,365			5,730
Total non-U.S. revenues	42,122			39,234			42,616
United States	17,081			16,861			14,769
Total revenues from contracts with customers	59,203			56,095			57,385
Intersegment revenues, eliminated on consolidation	1,512			1,919			1,993
Total segment revenues		$60,715			$58,014			$59,378

Revenue recognized on fixed-price contracts	100		%	100		%	100		%

Revenue recognized at a point in time	94		%	95		%	95		%



Years ended December 31,	2018			2017			2016
Revenue from contracts with customers:
U.S. customers		$16,492			$15,889			$15,227
Non U.S. customers⁽¹⁾	6,703			4,672			4,953
Total segment revenue from contracts with customers		$23,195			$20,561			$20,180

Revenue recognized over time	98		%	97		%	99		%

Revenue recognized on fixed-price contracts	65		%	63		%	64		%

Revenue from the U.S. government⁽¹⁾	86		%	87		%	88		%



Years ended December 31,	2018			2017			2016
Revenue from contracts with customers:
Commercial		$9,227			$7,622			$6,918
Government	7,620			6,910			6,860
Total revenues from contracts with customers	16,847			14,532			13,778
Intersegment revenues eliminated on consolidation	171			49			41
Total segment revenues		$17,018			$14,581			$13,819

Revenue recognized at a point in time	54		%	50		%	43		%

Revenue recognized on fixed-price contracts	90		%	89		%	87		%

Revenue from the U.S. government⁽¹⁾	36		%	39		%	41		%

Our total backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue in future periods as work is performed, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable accounting method.

Our backlog at December 31, 2018 was $490,481. We expect approximately 19% to be converted to revenue through 2019 and approximately 65% through 2022, with the remainder thereafter.



Years ended December 31,	2018		2017		2016
Commercial Airplanes		$565		$521		$442
Defense, Space & Security	290		252		220
Global Services	348		322		312
Boeing Capital Corporation	58		70		83
Unallocated items, eliminations and other	853		882		832
Total		$2,114		$2,047		$1,889



Years ended December 31,	2018		2017		2016
Commercial Airplanes		$604		$636		$830
Defense, Space & Security	208		210		290
Global Services	231		180		209
Unallocated items, eliminations and other	679		713		1,284
Total		$1,722		$1,739		$2,613

We recorded Earnings from operations associated with our equity method investments of $167, $233 and $303, primarily in our BDS segment, for the years ended December 31, 2018, 2017 and 2016, respectively.

Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations, intercompany guarantees provided to BCC and eliminations of certain sales between segments. Such sales 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, eliminations and other caption. 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,	2018			2017			2016
Share-based plans		($76	)		($77	)		($66	)
Deferred compensation	(19		)	(240		)	(46		)
Amortization of previously capitalized interest	(92		)	(96		)	(106		)
Eliminations and other unallocated items	(1,227		)	(686		)	(489		)
Unallocated items, eliminations and other	(1,414		)	(1,099		)	(707		)

Pension FAS/CAS service cost adjustment	1,005			1,127			1,029
Postretirement FAS/CAS service cost adjustment	322			311			328
FAS/CAS service cost adjustment		$1,327			$1,438			$1,357

Pension costs, comprising GAAP service and prior service costs, are allocated to BCA and the commercial operations at BGS. Pension costs are allocated to BDS and BGS businesses supporting government customers 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. FAS/CAS service cost adjustment represents the difference between the 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/(loss), net.



December 31,	2018		2017
Commercial Airplanes		$64,670		$64,647
Defense, Space & Security	19,794		18,476
Global Services	17,910		12,491
Boeing Capital	2,809		3,156
Unallocated items, eliminations and other	12,176		13,592
Total		$117,359		$112,362