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Segment and Revenue Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
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 6 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 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)Three months ended March 31
20212020
Revenue from contracts with customers:
Europe$873 $1,970 
Asia363 1,159 
Middle East129 549 
Other576 311 
Total non-U.S. revenues1,941 3,989 
United States2,353 2,174 
Estimated potential concessions and other considerations to 737 MAX customers, net(30)30 
Total revenues from contracts with customers4,264 6,193 
Intersegment revenues eliminated on consolidation5 12 
Total segment revenues$4,269 $6,205 
Revenue recognized on fixed-price contracts100 %100 %
Revenue recognized at a point in time100 %100 %
BDS revenues on contracts with customers, based on the customer's location, consist of the following:
(Dollars in millions)Three months ended March 31
20212020
Revenue from contracts with customers:
U.S. customers$5,520 $4,316 
Non U.S. customers(1)
1,665 1,726 
Total segment revenue from contracts with customers$7,185 $6,042 
Revenue recognized over time99 %99 %
Revenue recognized on fixed-price contracts70 %67 %
Revenue from the U.S. government(1)
90 %89 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consist of the following:
(Dollars in millions)Three months ended March 31
20212020
Revenue from contracts with customers:
Commercial$1,625 $2,523 
Government2,070 2,033 
Total revenues from contracts with customers3,695 4,556 
Intersegment revenues eliminated on consolidation54 72 
Total segment revenues$3,749 $4,628 
Revenue recognized at a point in time43 %55 %
Revenue recognized on fixed-price contracts87 %89 %
Revenue from the U.S. government(1)
43 %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 March 31, 2021 was $363,853. We expect approximately 34% to be converted to revenue through 2022 and approximately 81% through 2025, 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.
Three months ended March 31
20212020
Share-based plans($128)($18)
Deferred compensation(52)193 
Amortization of previously capitalized interest(22)(23)
Research and development expense, net(42)(54)
Eliminations and other unallocated items(120)(271)
Unallocated items, eliminations and other
($364)($173)
Pension FAS/CAS service cost adjustment$193 $255 
Postretirement FAS/CAS service cost adjustment77 92 
FAS/CAS service cost adjustment$270 $347 
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:
March 31
2021		December 31
2020
Commercial Airplanes$78,960 $77,973 
Defense, Space & Security15,315 14,256 
Global Services17,239 17,399 
Boeing Capital1,939 1,978 
Unallocated items, eliminations and other36,582 40,530 
Total$150,035 $152,136 
Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the four principal business segments and intercompany eliminations.