Boeing

787 Deferred Production Cost, Unamortized Tooling & Other Non-Recurring Cost balances

Consolidated Statement of Financial Position

(Dollars in millions)

  3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
787
Deferred Production Cost 25,189 26,149 26,942 27,732 28,309 28,510 28,651 27,673 27,523 27,308 26,992 26,461
Unamortized Tooling and Other Non-Recurring Cost     3,565 3,801 3,913 3,906 3,908 3,890 3,767 3,707 3,691 3,625 3,581 3,390

Note: Inventories, Deferred Production Costs, and Unamortized Tooling are described in the Inventories footnote of the Company's latest 10-K filing.

Inventories / Advances and progress billings

Consolidated Statement of Financial Position

(Dollars in millions)

Inventories 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Long-term contracts in progress 14,132 14,872 14,275 13,858 12,994 12,516 12,459 12,801 13,684 13,961
Commercial aircraft programs 56,549 56,867 56,278 55,230 56,840 53,769 53,113 52,048 53,493 53,240
Commercial spare parts, used aircraft, general stock materials and other 7,500 6,585 6,506 6,673 6,369 6,123 5,521 5,446 5,410 5,356
Gross Inventory 78,181 78,324 77,059 75,761 76,203 72,408 71,093 70,295 72,587 72,557
                     
Advances and progress billings 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Advances and billings in excess of related costs 22,752 23,373 23,442 24,364 23,926 23,409 22,646 23,869 24,118 25,802
Advances and progress billings netted against Inventories 29,679 29,296 28,435 28,504 28,937 28,226 28,413 27,096 29,340 30,104
Gross Advances and progress billings 52,431 52,669 51,877 52,868 52,863 51,635 51,059 50,965 53,458 55,906

Note: Inventories are described in the Inventories footnote of the Company's latest 10-K filing.

Commercial Airplanes Unit Cost vs. Program

Commercial Airplanes Segment Information - Earnings from Operations

(Dollars in millions)

2017 1Q17 2Q17 3Q17 4Q17 2017
Program Accounting 1,215 1,567     2,782
Unit-Cost Accounting * 809 1,219     2,028
2016 1Q16 2Q16 3Q16 4Q16 2016
Program Accounting 1,033 (973) 1,597 1,473 3,130
Unit-Cost Accounting * 1,060 (99) 1,452 1,492 3,905
2015 1Q15 2Q15 3Q15 4Q15 2015
Program Accounting 1,617 1,206 1,768 566 5,157
Unit-Cost Accounting * 167 221 904 1,377 2,669
2014 1Q14 2Q14 3Q14 4Q14 2014
Program Accounting 1,502 1,550 1,797 1,562 6,411
Unit-Cost Accounting * (306) (484) 565 103 (122)
2013 1Q13 2Q13 3Q13 4Q13 2013
Program Accounting 1,219 1,453 1,617 1,506 5,795
Unit-Cost Accounting * 334 (104) (299) (1,513) (1,582)

Beginning in 2003, Boeing Commercial Airplanes business segment results as well as consolidated results have been presented on a program accounting basis. 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.

* 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. Unit cost accounting records cost of sales based on the cost of specific units delivered, and to the extent that inventoriable costs exceed estimated revenues, a loss is not recognized until delivery is made. Note 1 of the Company's 10-K filing describes program accounting.