XML 38 R25.htm IDEA: XBRL DOCUMENT v3.21.2
Segment and Revenue Information
 9 Months Ended
Sep. 30, 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 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 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
2021202020212020
Revenue from contracts with customers:
Europe$2,776 $3,595 $1,223 $1,293 
Asia1,958 1,964 186 500 
Middle East719 556 206 
Other1,219 465 220 12 
Total non-U.S. revenues6,672 6,580 1,835 1,805 
United States8,012 5,190 2,594 1,633 
Estimated potential concessions and other considerations to 737 MAX customers, net1 (370)(7)151 
Total revenues from contracts with customers14,685 11,400 4,422 3,589 
Intersegment revenues eliminated on consolidation58 34 37 7 
Total segment revenues$14,743 $11,434 $4,459 $3,596 
Revenue recognized on fixed-price contracts100 %100 %100 %100 %
Revenue recognized at a point in time100 %100 %99 %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
2021202020212020
Revenue from contracts with customers:
U.S. customers$15,464 $14,465 $4,833 $5,312 
Non U.S. customers(1)
5,214 5,013 1,784 1,536 
Total segment revenue from contracts with customers$20,678 $19,478 $6,617 $6,848 
Revenue recognized over time99 %99 %99 %99 %
Revenue recognized on fixed-price contracts68 %68 %67 %69 %
Revenue from the U.S. government(1)
89 %89 %89 %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
2021202020212020
Revenue from contracts with customers:
Commercial$5,392 $5,382 $1,961 $1,488 
Government6,465 6,241 2,193 2,142 
Total revenues from contracts with customers11,857 11,623 4,154 3,630 
Intersegment revenues eliminated on consolidation180 187 67 64 
Total segment revenues$12,037 $11,810 $4,221 $3,694 
Revenue recognized at a point in time45 %47 %46 %42 %
Revenue recognized on fixed-price contracts87 %88 %87 %87 %
Revenue from the U.S. government(1)
41 %41 %40 %45 %
(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, 2021 was $367,108. We expect approximately 25% to be converted to revenue through 2022 and approximately 78% 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, 787 production issues and associated rework, timing of 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 (CAS). Components of Unallocated items, eliminations and other are shown in the following table.
Nine months ended September 30Three months ended September 30
2021202020212020
Share-based plans($171)($80)($29)($37)
Deferred compensation(86)34 8 (39)
Amortization of previously capitalized interest(66)(69)(22)(19)
Research and development expense, net(144)(160)(59)(44)
Eliminations and other unallocated items(565)(690)(268)(175)
Unallocated items, eliminations and other
($1,032)($965)($370)($314)
Pension FAS/CAS service cost adjustment$576 $773 $192 $260 
Postretirement FAS/CAS service cost adjustment232 282 78 93 
FAS/CAS service cost adjustment$808 $1,055 $270 $353 
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 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:
September 30
2021		December 31
2020
Commercial Airplanes$78,906 $77,973 
Defense, Space & Security15,748 14,256 
Global Services16,839 17,399 
Boeing Capital1,797 1,978 
Unallocated items, eliminations and other33,556 40,530 
Total$146,846 $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.