Boeing Co. (BA)

The majority of Boeing’s BCA segment revenue is derived from commercial aircraft contracts. For each contract, Boeing determines the transaction price based on the consideration expected to be received. Boeing allocates the transaction price to each commercial aircraft performance obligation based on relative standalone selling prices adjusted by an escalation formula as specified in the customer agreement. Revenue is recognized for each commercial aircraft performance obligation at the point in time when the aircraft is completed and accepted by the customer. Boeing uses program accounting to determine the amount reported as cost of sales.

Where an aircraft is still in Boeing’s possession, and title and risk of loss has passed to the customer (known as a bill-and-hold arrangement), revenue will be recognized when all specific requirements for transfer of control under a bill-and-hold arrangement have been met.

Payments for commercial aircraft sales are received in accordance with the customer agreement, which generally includes a deposit upon order and additional payments in accordance with a payment schedule, with the balance being due immediately prior to or at aircraft delivery. Advances and progress billings (contract liabilities) are normal and customary for commercial aircraft contracts and not considered a significant financing component as they are intended to protect Boeing from the other party failing to adequately complete some or all of its obligations under the contract.

Source: 10-K (filing date: 2019-02-08).

Boeing Co., Income Statement, Revenues

US$ in millions

	12 months ended	Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Commercial Airplanes
	Defense, Space & Security
	Global Services
	Boeing Capital
	Unallocated items, eliminations and other
	Revenues

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10), 10-K (filing date: 2015-02-12).