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Segment and Revenue Information
 6 Months Ended
Jun. 30, 2022
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)Six months ended June 30Three months ended June 30
2022202120222021
Revenue from contracts with customers:
Europe$2,233 $1,553 $1,208 $680 
Latin America and Caribbean1,136 868 308 337 
Asia2,025 1,772 1,297 1,409 
Middle East1,088 513 770 384 
Other non-U.S.568 131 387 86 
Total non-U.S. revenues7,050 4,837 3,970 2,896 
United States3,314 5,418 2,212 3,065 
Estimated potential concessions and other considerations to 737 MAX customers, net(17)8 17 38 
Total revenues from contracts with customers10,347 10,263 6,199 5,999 
Intersegment revenues eliminated on consolidation33 21 20 16 
Total segment revenues$10,380 $10,284 $6,219 $6,015 
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)Six months ended June 30Three months ended June 30
2022202120222021
Revenue from contracts with customers:
U.S. customers$8,782 $10,631 $4,634 $5,111 
Non-U.S. customers(1)
2,892 3,430 1,557 1,765 
Total segment revenue from contracts with customers$11,674 $14,061 $6,191 $6,876 
Revenue recognized over time99 %99 %99 %99 %
Revenue recognized on fixed-price contracts62 %69 %61 %68 %
Revenue from the U.S. government(1)
89 %89 %89 %89 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consist of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2022202120222021
Revenue from contracts with customers:
Commercial$4,637 $3,431 $2,361 $1,806 
Government3,810 4,272 1,842 2,202 
Total revenues from contracts with customers8,447 7,703 4,203 4,008 
Intersegment revenues eliminated on consolidation165 113 95 59 
Total segment revenues$8,612 $7,816 $4,298 $4,067 
Revenue recognized at a point in time49 %44 %49 %45 %
Revenue recognized on fixed-price contracts88 %87 %88 %86 %
Revenue from the U.S. government(1)
34 %42 %33 %41 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Backlog
Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model.
Our backlog at June 30, 2022 was $371,730. We expect approximately 29% to be converted to revenue through 2023 and approximately 81% through 2026, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to 787 production issues and associated rework, timing of 737 MAX delivery resumption in China, timing of entry into service of the 777X, 737 MAX 7 and/or 737 MAX 10, and the lingering effects of the COVID-19 pandemic.
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 sold to our BCC segment that are leased by BCC to customers under 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 (expense)/income are shown in the following table.
Six months ended June 30Three months ended June 30
2022202120222021
Share-based plans($108)($142)($25)($14)
Deferred compensation166 (94)124 (42)
Amortization of previously capitalized interest(47)(44)(24)(22)
Research and development expense, net(118)(85)(66)(43)
Eliminations and other unallocated items(247)(297)(103)(177)
Unallocated items, eliminations and other
($354)($662)($94)($298)
Pension FAS/CAS service cost adjustment$413 $384 $205 $191 
Postretirement FAS/CAS service cost adjustment154 154 79 77 
FAS/CAS service cost adjustment$567 $538 $284 $268 
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:
June 30
2022		December 31
2021
Commercial Airplanes$76,860 $75,863 
Defense, Space & Security15,491 14,974 
Global Services16,347 16,397 
Boeing Capital1,628 1,735 
Unallocated items, eliminations and other25,153 29,583 
Total$135,479 $138,552 
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.