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Segment and Revenue Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
Our primary profitability measurement to review segment 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 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 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)Three months ended March 31
20242023
Revenue from contracts with customers:
Europe$770 $1,355 
Asia2,113 806 
Middle East768 716 
Other non-U.S.410 353 
Total non-U.S. revenues4,061 3,230 
United States985 3,435 
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries
(443)
Total revenues from contracts with customers4,603 6,665 
Intersegment revenues eliminated on consolidation50 39 
Total segment revenues$4,653 $6,704 
Revenue recognized on fixed-price contracts100 %100 %
Revenue recognized at a point in time99 %100 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Three months ended March 31
20242023
Revenue from contracts with customers:
U.S. customers$5,444 $5,310 
Non-U.S. customers(1)
1,506 1,229 
Total segment revenue from contracts with customers$6,950 $6,539 
Revenue recognized over time99 %99 %
Revenue recognized on fixed-price contracts58 %61 %
Revenue from the U.S. government(1)
91 %91 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
(Dollars in millions)Three months ended March 31
20242023
Revenue from contracts with customers:
Commercial$3,000 $2,716 
Government1,934 1,926 
Total revenues from contracts with customers4,934 4,642 
Intersegment revenues eliminated on consolidation111 78 
Total segment revenues$5,045 $4,720 
Revenue recognized at a point in time54 %51 %
Revenue recognized on fixed-price contracts87 %87 %
Revenue from the U.S. government(1)
29 %36 %
(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 March 31, 2024 was $528,749. We expect approximately 27% to be converted to revenue through 2025 and approximately 71% through 2028, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. We may experience reductions to backlog and/or significant order cancellations due to production disruptions, and/or further delays to 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.
Three months ended March 31
20242023
Share-based plans$10 ($52)
Deferred compensation(30)(54)
Amortization of previously capitalized interest(23)(23)
Research and development expense, net(89)(76)
Eliminations and other unallocated items(180)(255)
Unallocated items, eliminations and other
($312)($460)
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:
Three months ended March 31
20242023
Pension FAS/CAS service cost adjustment$230 $223 
Postretirement FAS/CAS service cost adjustment72 68 
FAS/CAS service cost adjustment$302 $291 
Assets
Segment assets are summarized in the table below:
March 31
2024		December 31
2023
Commercial Airplanes$80,811 $77,047 
Defense, Space & Security16,046 14,921 
Global Services16,365 16,193 
Unallocated items, eliminations and other21,262 28,851 
Total$134,484 $137,012 
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.