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Segment and Revenue Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue InformationEffective at the beginning of 2020, certain programs were realigned between our BDS segment and Unallocated items, eliminations and other. Business segment data for 2019 has been adjusted to reflect the realignment.
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 7 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.
BCC facilitates, arranges, structures and provides selective financing solutions for our Boeing customers.
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.
BCA revenues by customer location consist of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2020201920202019
Revenue from contracts with customers:
Europe$3,595 $3,944 $1,293 $1,260 
Asia1,964 10,225 500 2,691 
Middle East556 2,926 1,121 
Other465 2,533 12 166 
Total non-U.S. revenues6,580 19,628 1,805 5,238 
United States5,190 10,591 1,633 3,004 
Estimated potential concessions and other considerations to 737 MAX customers, net(370)(5,610)151 
Total revenues from contracts with customers11,400 24,609 3,589 8,242 
Intersegment revenues eliminated on consolidation34 184 7 7 
Total segment revenues$11,434 $24,793 $3,596 $8,249 
Revenue recognized on fixed-price contracts100 %100 %100 %100 %
Revenue recognized at a point in time100 %100 %100 %100 %
BDS revenues on contracts with customers, based on the customer's location, consist of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2020201920202019
Revenue from contracts with customers:
U.S. customers$14,465 $15,141 $5,312 $5,422 
Non U.S. customers(1)
5,013 5,027 1,536 1,580 
Total segment revenue from contracts with customers$19,478 $20,168 $6,848 $7,002 
Revenue recognized over time99 %98 %99 %97 %
Revenue recognized on fixed-price contracts68 %69 %69 %70 %
Revenue from the U.S. government(1)
89 %89 %90 %90 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consist of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2020201920202019
Revenue from contracts with customers:
Commercial$5,382 $7,621 $1,488 $2,510 
Government6,241 6,075 2,142 2,101 
Total revenues from contracts with customers11,623 13,696 3,630 4,611 
Intersegment revenues eliminated on consolidation187 124 64 47 
Total segment revenues$11,810 $13,820 $3,694 $4,658 
Revenue recognized at a point in time47 %56 %42 %54 %
Revenue recognized on fixed-price contracts88 %89 %87 %90 %
Revenue from the U.S. government(1)
41 %33 %45 %35 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Backlog
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 September 30, 2020 was $393,067. We expect approximately 24% to be converted to revenue through 2021 and approximately 68% through 2024, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to the ongoing 737 MAX grounding and COVID-19 impacts. 
Unallocated Items, Eliminations and other
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.
Nine months ended September 30Three months ended September 30
2020201920202019
Share-based plans($80)($57)($37)($21)
Deferred compensation34 (154)(39)(25)
Amortization of previously capitalized interest(69)(68)(19)(23)
Research and development expense, net(160)(283)(44)(100)
Customer financing impairment(250)
Litigation(109)
Eliminations and other unallocated items(690)(810)(175)(352)
Unallocated items, eliminations and other
($965)($1,731)($314)($521)
Pension FAS/CAS service cost adjustment$773 $823 $260 $274 
Postretirement FAS/CAS service cost adjustment282 270 93 90 
FAS/CAS service cost adjustment$1,055 $1,093 $353 $364 
Pension and Other Postretirement Benefit Expense
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.
Assets
Segment assets are summarized in the table below:
September 30
2020		December 31
2019
Commercial Airplanes$83,187 $73,995 
Defense, Space & Security15,723 15,757 
Global Services18,381 18,605 
Boeing Capital2,053 2,269 
Unallocated items, eliminations and other41,917 22,999 
Total$161,261 $133,625 
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 principal business segments and intercompany eliminations. From December 31, 2019 to September 30, 2020, assets in BCA increased primarily due to higher inventory balances and assets in Unallocated items, eliminations, and other increased due to higher cash and short-term investment balances from debt issued during the first half of 2020.