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Segment and Revenue Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
Effective at the beginning of 2020, certain programs were realigned between our BDS segment and Unallocated items, eliminations and other. Business segment data for 2019 and 2018 has been adjusted to reflect the realignment.
Our primary profitability measurements to review a segment’s operating results are Earnings/(loss) 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 67 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 products and 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 customers.
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 31,202020192018
Europe$7,961 $10,366 $12,976 
Asia, other than China4,128 10,662 12,141 
Middle East5,308 9,272 9,745 
China1,803 5,684 13,764 
Canada1,302 2,019 2,583 
Oceania832 2,006 2,298 
Africa114 1,113 1,486 
Latin America, Caribbean and other229 1,015 1,458 
Total non-U.S. revenues21,677 42,137 56,451 
United States36,979 42,681 44,676 
Estimated potential concessions and other considerations to 737 MAX customers, net(1)
(498)(8,259)
Total revenues$58,158 $76,559 $101,127 
(1) Net of insurance recoveries
Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 51%, 39%, and 31% of consolidated revenues for 2020, 2019, and 2018, respectively. Approximately 4% of operating assets were located outside the United States as of December 31, 2020 and 2019.
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 consisted of the following:
Years ended December 31,
202020192018
Revenue from contracts with customers:
Europe$3,872 $5,829 $9,719 
Middle East1,647 5,761 5,876 
Asia, other than China1,408 7,395 8,274 
China1,271 5,051 13,068 
Other513 3,450 5,185 
Total non-U.S. revenues8,711 27,486 42,122 
United States7,899 12,676 15,347 
Estimated potential concessions and other considerations to 737 MAX customers, net(1)
(498)(8,259)
Total revenues from contracts with customers16,112 31,903 57,469 
Intersegment revenues, eliminated on consolidation50 352 30 
Total segment revenues$16,162 $32,255 $57,499 
Revenue recognized on fixed-price contracts100 %100 %100 %
Revenue recognized at a point in time100 %100 %100 %
(1) Net of insurance recoveries
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
Years ended December 31,
202020192018
Revenue from contracts with customers:
U.S. customers$19,662 $19,465 $19,488 
Non-U.S. customers(1)
6,595 6,630 6,812 
Total segment revenue from contracts with customers$26,257 $26,095 $26,300 
Revenue recognized over time98 %98 %98 %
Revenue recognized on fixed-price contracts69 %70 %70 %
Revenue from the U.S. government(1)
89 %89 %88 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
Years ended December 31, 202020192018
Revenue from contracts with customers:
Commercial$6,936 $10,167 $9,227 
Government8,368 8,107 7,658 
Total revenues from contracts with customers15,304 18,274 16,885 
Intersegment revenues eliminated on consolidation239 194 171 
Total segment revenues$15,543 $18,468 $17,056 
Revenue recognized at a point in time47 %55 %54 %
Revenue recognized on fixed-price contracts87 %90 %90 %
Revenue from the U.S. government(1)
41 %34 %36 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Earnings in Equity Method Investments
We recorded Earnings from operations associated with our equity method investments of $86, $90 and $167, primarily in our BDS segment, for the years ended December 31, 2020, 2019 and 2018, respectively.
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 December 31, 2020 was $363,404. We expect approximately 20% to be converted to revenue through 2021 and approximately 66% through 2024, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to the 737 MAX grounding in non-U.S. jurisdictions, entry into service of the 777X, 737 MAX 7 and/or 737 MAX 10, 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.
Years ended December 31,202020192018
Share-based plans($120)($65)($76)
Deferred compensation(93)(174)(19)
Amortization of previously capitalized interest(95)(89)(92)
Research and development expense, net(240)(401)(144)
Customer financing impairment(250)
Litigation(109)(148)
Eliminations and other unallocated items(1,807)(985)(998)
Unallocated items, eliminations and other($2,355)($2,073)($1,477)
Pension FAS/CAS service cost adjustment$1,024 $1,071 $1,005 
Postretirement FAS/CAS service cost adjustment359 344 322 
FAS/CAS service cost adjustment$1,383 $1,415 $1,327 
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 Financial Accounting Standards (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.
December 31,20202019
Commercial Airplanes$77,973 $73,995 
Defense, Space & Security14,256 15,757 
Global Services17,399 18,605 
Boeing Capital1,978 2,269 
Unallocated items, eliminations and other40,530 22,999 
Total$152,136 $133,625 
Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest, assets managed centrally on behalf of the four principal business segments and intercompany eliminations. From December 31, 2019 to December 31, 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 throughout 2020.
Capital Expenditures
Years ended December 31,202020192018
Commercial Airplanes$322 $433 $604 
Defense, Space & Security172 189 201 
Global Services127 218 231 
Unallocated items, eliminations and other682 994 686 
Total$1,303 $1,834 $1,722 
Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the four principal business segments.
Depreciation and Amortization
Years ended December 31,202020192018
Commercial Airplanes$559 $580 $565 
Defense, Space & Security
251 256 270 
Global Services408 424 348 
Boeing Capital Corporation66 64 58 
Centrally Managed Assets (1)
962 947 873 
Total$2,246 $2,271 $2,114 
(1) Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments. Depreciation and amortization for centrally managed assets are included in segment operating earnings based on usage and occupancy. In 2020, $689 was included in the primary business segments, of which $397, $236, and $56 was included in BCA, BDS and BGS, respectively. In 2019, $717 was included in the primary business segments, of which $407, $257, and $53 was included in BCA, BDS and BGS, respectively. In 2018, $692 was included in the primary business segments, of which $417, $213, and $62 was included in BCA, BDS and BGS, respectively.