Effective at the beginning of 2019, all revenues and costs associated with military derivative aircraft production are reported in the BDS segment. Revenues and costs associated with military derivative aircraft production were previously reported in the BCA and BDS segments. Business segment data for 2018 and 2017 reflects the realignment for military derivative aircraft, as well as the realignment of certain programs from BDS to BGS.

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 56 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 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,	2019			2018		2017
Asia, other than China		$10,662			$12,141		$9,195
Europe	10,366			12,976		11,240
Middle East	9,272			9,745		11,433
China	5,684			13,764		11,932
Canada	2,019			2,583		2,212
Oceania	2,006			2,298		1,931
Africa	1,113			1,486		815
Latin America, Caribbean and other	1,015			1,458		1,541
Total non-U.S. revenues	42,137			56,451		50,299
United States	42,681			44,676		43,706
Estimated potential concessions and other considerations to 737 MAX customers, net⁽¹⁾	(8,259		)
Total revenues		$76,559			$101,127		$94,005

Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 39%, 31%, and 31% of consolidated revenues for 2019, 2018, and 2017, respectively. Approximately 4% of operating assets were located outside the United States as of December 31, 2019 and 2018.

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,	2019			2018			2017
Revenue from contracts with customers:
Asia, other than China		$7,395			$8,274			$6,482
Europe	5,829			9,719			8,478
Middle East	5,761			5,876			8,927
China	5,051			13,068			10,982
Other	3,450			5,185			4,365
Total non-U.S. revenues	27,486			42,122			39,234
United States	12,676			15,347			15,182
Estimated potential concessions and other considerations to 737 MAX customers, net⁽¹⁾	(8,259		)
Total revenues from contracts with customers	31,903			57,469			54,416
Intersegment revenues, eliminated on consolidation	352			30			196
Total segment revenues		$32,255			$57,499			$54,612

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

Revenue recognized at a point in time	100		%	100		%	100		%



Years ended December 31,	2019			2018			2017
Revenue from contracts with customers:
U.S. customers		$19,573			$19,576			$18,984
Non-U.S. customers⁽¹⁾	6,654			6,816			4,954
Total segment revenue from contracts with customers		$26,227			$26,392			$23,938

Revenue recognized over time	98		%	98		%	97		%

Revenue recognized on fixed-price contracts	70		%	70		%	69		%

Revenue from the U.S. government⁽¹⁾	89		%	88		%	89		%



Years ended December 31,	2019			2018			2017
Revenue from contracts with customers:
Commercial		$10,167			$9,227			$7,622
Government	8,107			7,658			6,940
Total revenues from contracts with customers	18,274			16,885			14,562
Intersegment revenues eliminated on consolidation	194			171			49
Total segment revenues		$18,468			$17,056			$14,611

Revenue recognized at a point in time	55		%	54		%	50		%

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

Revenue from the U.S. government⁽¹⁾	34		%	36		%	39		%

We recorded Earnings from operations associated with our equity method investments of $90, $167 and $233, primarily in our BDS segment, for the years ended December 31, 2019, 2018 and 2017, respectively.

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, 2019 was $463,403. We expect approximately 17% to be converted to revenue through 2020 and approximately 63% through 2023, with the remainder thereafter.

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. 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,	2019			2018			2017
Share-based plans		($65	)		($76	)		($77	)
Deferred compensation	(174		)	(19		)	(240		)
Amortization of previously capitalized interest	(89		)	(92		)	(96		)
Research and development expense, net	(384		)	(132		)	42
Customer financing impairment	(250		)
Litigation	(109		)	(148		)
Eliminations and other unallocated items	(995		)	(975		)	(756		)
Unallocated items, eliminations and other		($2,066	)		($1,442	)		($1,127	)

Pension FAS/CAS service cost adjustment		$1,071			$1,005			$1,127
Postretirement FAS/CAS service cost adjustment	344			322			311
FAS/CAS service cost adjustment		$1,415			$1,327			$1,438

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, net.

Effective in 2019, certain centrally managed assets that were previously recorded in the BCA, BDS and BGS segments have been realigned to Unallocated items, eliminations and other. Business segment data in the following tables for 2019, 2018 and 2017 reflects the realignment of these assets.



December 31,	2019		2018
Commercial Airplanes		$73,995		$61,116
Defense, Space & Security	15,977		18,023
Global Services	18,605		17,856
Boeing Capital	2,269		2,809
Unallocated items, eliminations and other	22,779		17,555
Total		$133,625		$117,359

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 managed centrally on behalf of the four principle business segments and intercompany eliminations.



Years ended December 31,	2019		2018		2017
Commercial Airplanes		$433		$604		$636
Defense, Space & Security	202		208		210
Global Services	218		231		180
Unallocated items, eliminations and other	981		679		713
Total		$1,834		$1,722		$1,739



Years ended December 31,	2019		2018		2017
Commercial Airplanes		$580		$565		$521
Defense, Space & Security	274		290		252
Global Services	424		348		322
Boeing Capital Corporation	64		58		70
Centrally Managed Assets⁽¹⁾	929		853		882
Total		$2,271		$2,114		$2,047