Segment Information - Earnings from Operations
Boeing Commercial Airplanes
Dollars in Millions
| 2008 | 1Q08 | 2Q08 | 3Q08 | 4Q08 | 2008 |
|---|---|---|---|---|---|
| Program Accounting | 983 | 777 | 1,760 | ||
| Unit-Cost Accounting * | 660 | 568 | 1,228 | ||
Beginning in 2003, Boeing Commercial Airplanes business segment results as well as consolidated results will be presented on a program accounting basis under GAAP. Previously, business segment results were presented on a unit cost basis and consolidated on a program accounting basis. The table provided above, provides both program accounting and unit cost accounting information. Differences between unit cost and program cost accounting are described in Note 1 of the Company's 2007 10K filing.
* This is a non-GAAP measure. Management is providing Commercial Airplanes' Earnings from Operations computed using non-GAAP unit-cost based accounting in response to requests from specific investors. The company does not intend for unit-cost information to be considered in isolation or as a substitute for program accounting. The basic difference between unit-cost based accounting and program accounting is that unit cost accounting determines cost of sales based on a more discrete costing of the individual airplane while program accounting determines cost of sales based on the average profitability over the airplane program accounting quantity.