Boeing

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

Consolidated Statement of Financial Position

(Dollars in millions)

  2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
787
Deferred Production Cost 27,732 28,309 28,510 28,651 27,673 27,523 27,308 26,992 26,461 25,948 25,358 24,690
Unamortized Tooling and Other Non-Recurring Cost     3,906 3,908 3,890 3,767 3,707 3,691 3,625 3,581 3,390 3,334 3,173 3,042

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

Inventories / Advances and progress billings

Consolidated Statement of Financial Position

(Dollars in millions)

Inventories 4Q17 1Q18
Long-term contracts in progress 1,854 1,926
Commercial aircraft programs 52,861 53,008
Commercial spare parts, used aircraft, general stock materials and other 6,673 6,369
Gross Inventory 61,388 61,303
     
Advances and progress billings 4Q17 1Q18
Advances and progress billings 48,042 49,955

Note: Inventories are described in the Company's latest 10-K filing. Prior results have been adjusted to reflect the adoption of a new revenue recognition accounting standard (ASC 606) in the first quarter of 2018.

Commercial Airplanes Unit Cost vs. Program

Commercial Airplanes Segment Information - Earnings from Operations

(Dollars in millions)

2018 1Q18 2Q18 3Q18 4Q18 2018
Program Accounting 1,508        
Unit-Cost Accounting * 1,740        
2017 1Q17 2Q17 3Q17 4Q17 2017
Program Accounting 870 1,282 1,513 1,787 5,452
Unit-Cost Accounting * 464 934 1,627 1,679 4,704
2016         2016
Program Accounting         1,981
Unit-Cost Accounting *         2,756

Prior results have been adjusted to reflect the adoption of a new revenue recognition accounting standard (ASC 606) in the first quarter of 2018.

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.