The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

Twelve months ended
December 31

Three months ended
December 31

(Dollars in millions)

2018

2017

2018

2017

Revenues:

Commercial Airplanes

$60,715

$58,014

$17,306

$15,388

Defense, Space & Security

23,195

20,561

6,111

5,257

Global Services

17,018

14,581

4,894

3,797

Boeing Capital

274

307

60

73

Unallocated items, eliminations and other

(75)

542

(30)

255

Total revenues

$101,127

$94,005

$28,341

$24,770

Earnings from operations:

Commercial Airplanes

$7,879

$5,452

$2,704

$1,787

Defense, Space & Security

1,594

2,193

669

544

Global Services

2,522

2,246

732

559

Boeing Capital

79

114

8

27

Segment operating profit

12,074

10,005

4,113

2,917

Unallocated items, eliminations and other

(1,414)

(1,099)

(246)

(328)

FAS/CAS service cost adjustment

1,327

1,438

308

389

Earnings from operations

11,987

10,344

4,175

2,978

Other income/(loss), net

92

123

29

32

Interest and debt expense

(475)

(360)

(158)

(93)

Earnings before income taxes

11,604

10,107

4,046

2,917

Income tax expense

(1,144)

(1,649)

(622)

403

Net earnings

$10,460

$8,458

$3,424

$3,320

Research and development expense, net:

Commercial Airplanes

$2,188

$2,247

$572

$492

Defense, Space & Security

788

834

175

235

Global Services

161

140

42

39

Other

132

(42)

63

(4)

Total research and development expense, net

$3,269

$3,179

$852

$762

Unallocated items, eliminations and other:

Share-based plans

($76)

($77)

($16)

($10)

Deferred compensation

(19)

(240)

93

(66)

Amortization of previously capitalized interest

(92)

(96)

(25)

(28)

Eliminations and other unallocated items

(1,227)

(686)

(298)

(224)

Sub-total (included in core operating earnings)

(1,414)

(1,099)

(246)

(328)

Pension FAS/CAS service cost adjustment

1,005

1,127

225

316

Postretirement FAS/CAS service cost adjustment

322

311

83

73

FAS/CAS service cost adjustment

$1,327

$1,438

$308

$389

Total

$339

$62

$61