Boeing 2006 Annual Report Download - page 81

The Boeing Company and Subsidiaries 79
Notes to Consolidated Financial Statements
For segment reporting purposes, we record Commercial
Airplanes segment revenues and cost of sales for airplanes
transferred to other segments. Such transfers may include
airplanes accounted for as operating leases and considered
transferred to the BCC segment and airplanes transferred to
the IDS segment for further modification prior to delivery to
the customer. The revenues and cost of sales for these trans-
fers are eliminated in the Accounting differences/eliminations
caption. In the event an airplane accounted for as an operating
lease is subsequently sold, the ‘Accounting differences/elimina-
tions’ caption would reflect the recognition of revenue and
cost of sales on the consolidated financial statements. For
segment reporting purposes, we record IDS revenues and cost
of sales for the modification performed on airplanes received
from Commercial Airplanes when the airplane is delivered to
the customer or at the attainment of performance milestones.
Intersegment revenues, eliminated in Accounting
differences/eliminations are shown in the following table.
Year ended December 31, 2006 2005 2004
Commercial Airplanes $826 $640 $638
Boeing Capital Corporation 131 57 33
Other 539
Total $962 $700 $680
Unallocated Expense
Unallocated expense includes costs not attributable to business
segments. Unallocated expense also includes the impact of
cost measurement differences between GAAP and federal cost
accounting standards as well as intercompany profit eliminations.
The most significant items not allocated to segments are shown
in the following table.
Year ended December 31, 2006 2005 2004
Share-based plans expense $«««(680)$«««(999)$«««(627)
Deferred compensation expense (211)(186)(54)
Pension (369)(846)27
Postretirement (103)(5)(285)
Capitalized interest (48)(47)(48)
Other (322)(324)(324)
Total $(1,733)$(2,407)$(1,311)
Unallocated assets primarily consist of cash and investments,
prepaid pension expense, net deferred tax assets, capitalized
interest and assets held by our Shared Services Group as well
as intercompany eliminations. Unallocated liabilities include
various accrued employee compensation and benefit liabilities,
including accrued retiree health care, net deferred tax liabilities
and income taxes payable. Debentures and notes payable are
not allocated to other business segments except for the portion
related to BCC. Unallocated capital expenditures relate primarily
to Shared Services Group assets and segment assets managed
by Shared Services Group, primarily IDS.
Segment assets, liabilities, capital expenditures and backlog are
summarized in the tables below.
Assets
As of December 31, 2006 2005 2004
Commercial Airplanes $10,296 $««7,145 $««7,343
Integrated Defense Systems:
Precision Engagement and
Mobility Systems 4,769 4,759 3,880
Network and Space Systems 7,206 8,953 8,888
Support Systems 2,696 1,875 1,482
Total Integrated Defense Systems 14,671 15,587 14,250
Boeing Capital Corporation 7,987 9,216 9,678
Other 6,923 6,501 7,250
Unallocated 11,917 21,547 17,703
$51,794 $59,996 $56,224
Liabilities
As of December 31, 2006 2005 2004
Commercial Airplanes $13,109 $10,979 $««6,932
Integrated Defense Systems:
Precision Engagement and
Mobility Systems 3,879 3,888 3,577
Network and Space Systems 1,571 2,992 3,227
Support Systems 1,359 1,013 883
Total Integrated Defense Systems 6,809 7,893 7,687
Boeing Capital Corporation 6,082 6,859 7,509
Other 368 385 761
Unallocated 20,687 22,821 22,049
$47,055 $48,937 $44,938
Capital Expenditures
Year ended December 31, 2006 2005 2004
Commercial Airplanes $«««838 $«««622 $«««374
Integrated Defense Systems:
Precision Engagement and
Mobility Systems 201 237 176
Network and Space Systems 70 174 230
Support Systems 38 30 31
Total Integrated Defense Systems 309 441 437
Boeing Capital Corporation
Other 58 65 68
Unallocated 476 419 367
$1,681 $1,547 $1,246
Contractual Backlog (Unaudited)
Year ended December 31, 2006 2005 2004
Commercial Airplanes $174,276 $124,132 $««65,482
Integrated Defense Systems:
Precision Engagement and
Mobility Systems 24,988 21,815 21,539
Network and Space Systems 8,001 6,324 10,923
Support Systems 9,302 8,366 6,834
Total Integrated Defense Systems 42,291 36,505 39,296
$216,567 $160,637 $104,778