Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 4

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 3
Chunk 4
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%53 %Revenue recognized on fixed-price contracts86 %87 %85 %86 %Revenue from the U.S. government(1)30 %29 %30 %29 %(1)Includes revenues earned from foreign military sales through the U.S. government.Earnings in Equity Method InvestmentsDuring the nine and three months ended September 30, 2025, our share of income/(loss) from equity method investments was $47 and $17, compared to $87 and ($3) during the same periods in 2024. The income/(loss) on equity method investments in 2025 and 2024 was primarily driven by investments held at our BDS segment and in Unallocated items, eliminations, and other.BacklogOur 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, 2025 was $635,688. We expect approximately 17% to be converted to revenue through 2026 and approximately 61% through 2029, 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 various factors including delivery delays, production disruptions and delays to entry into service of the 777X, 737-7 and/or 737-10.Unallocated Items, Eliminations and OtherUnallocated 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 income/(expense) are shown in the following table.

31

Nine months ended September 30Three months ended September 302025202420252024Share-based plans($40)$118 $11 $65 Deferred compensation(150)(100)(70)(51)Amortization of previously capitalized interest(64)(70)(22)(24)Research and development expense, net(285)(293)(102)(105)Eliminations and other unallocated items(1,606)(1,019)(565)(303)Unallocated items, eliminations and other($2,145)($