XML 40 R28.htm IDEA: XBRL DOCUMENT v3.23.3
Segment and Revenue Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
Segment results reflect the realignment of the Boeing Customer Financing team and portfolio into the BCA segment during the first quarter of 2023. Interest and debt expense now includes interest and debt expense previously attributable to Boeing Capital and classified as a component of Total Costs and Expenses ("Cost of Sales"). Prior period amounts have been reclassified to conform to the current period presentation.
Our primary profitability measurement to review a segment’s operating results is Loss from operations. We operate in three reportable segments: BCA, BDS, and BGS. 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 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.
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:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2023202220232022
Revenue from contracts with customers:
Europe$4,443 $2,869 $1,050 $615 
Latin America and Caribbean629 1,586 425 450 
Asia3,978 3,318 1,623 1,291 
Middle East2,723 1,297 1,257 209 
Other non-U.S.1,090 918 212 350 
Total non-U.S. revenues12,863 9,988 4,567 2,915 
United States10,435 6,680 3,260 3,317 
Estimated potential concessions and other considerations to 737 MAX customers, net54 16 28 33 
Total revenues from contracts with customers23,352 16,684 7,855 6,265 
Intersegment revenues eliminated on consolidation68 71 21 38 
Total segment revenues$23,420 $16,755 $7,876 $6,303 
Revenue recognized on fixed-price contracts100 %100 %100 %100 %
Revenue recognized at a point in time99 %99 %99 %99 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2023202220232022
Revenue from contracts with customers:
U.S. customers$14,686 $12,493 $4,348 $3,711 
Non-U.S. customers(1)
3,501 4,488 1,133 1,596 
Total segment revenue from contracts with customers$18,187 $16,981 $5,481 $5,307 
Revenue recognized over time99 %99 %99 %99 %
Revenue recognized on fixed-price contracts57 %60 %54 %54 %
Revenue from the U.S. government(1)
91 %90 %94 %91 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2023202220232022
Revenue from contracts with customers:
Commercial$8,218 $7,111 $2,799 $2,474 
Government5,793 5,692 1,919 1,882 
Total revenues from contracts with customers14,011 12,803 4,718 4,356 
Intersegment revenues eliminated on consolidation267 241 94 76 
Total segment revenues$14,278 $13,044 $4,812 $4,432 
Revenue recognized at a point in time51 %50 %52 %51 %
Revenue recognized on fixed-price contracts87 %88 %88 %88 %
Revenue from the U.S. government(1)
31 %33 %30 %32 %
(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 September 30, 2023 was $469,178. We expect approximately 21% to be converted to revenue through 2024 and approximately 71% through 2027, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to timing of 737 and 787 deliveries from inventory and timing of entry into service of the 777X, 737-7 and/or 737-10.
Unallocated Items, Eliminations and Other
Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. Government Cost Accounting Standards (CAS). Components of Unallocated items, eliminations and other (expense)/income are shown in the following table.
Nine months ended September 30Three months ended September 30
2023202220232022
Share-based plans($33)($64)$5 $44 
Deferred compensation(71)204 25 38 
Amortization of previously capitalized interest(71)(71)(24)(24)
Research and development expense, net(222)(161)(73)(43)
Eliminations and other unallocated items(670)(627)(204)(399)
Unallocated items, eliminations and other
($1,067)($719)($271)($384)
Pension and Other Postretirement Benefit Expense
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. Components of FAS/CAS service cost adjustment are shown in the following table:
Nine months ended September 30Three months ended September 30
2023202220232022
Pension FAS/CAS service cost adjustment$663 $621 $218 $208 
Postretirement FAS/CAS service cost adjustment200 225 63 71 
FAS/CAS service cost adjustment$863 $846 $281 $279 
Assets
Segment assets are summarized in the table below:
September 30
2023		December 31
2022
Commercial Airplanes$77,083 $76,825 
Defense, Space & Security15,232 14,426 
Global Services16,206 16,149 
Unallocated items, eliminations and other25,760 29,700 
Total$134,281 $137,100 
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 three principal business segments and intercompany eliminations.