Boeing

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

Consolidated Statement of Financial Position

(Dollars in millions)

  2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
787
Deferred Production Cost 27,673 27,523 27,308 26,992 26,461 25,948 25,358 24,690 24,241 23,584 22,967 22,029 20,969
Unamortized Tooling and Other Non-Recurring Cost     3,707 3,691 3,625 3,581 3,390 3,334 3,173 3,042 2,899 2,774 2,638 2,532 2,354

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 2Q18 3Q18 4Q18 1Q19 2Q19
Long-term contracts in progress 1,854 1,926 2,027 1,908 2,129 1,159 857
Commercial aircraft programs 52,861 53,008 52,830 53,568 52,753 55,490 58,691
Commercial spare parts, used aircraft, general stock materials and other 6,673 6,369 6,393 6,562 7,685 8,720 8,944
Inventories 61,388 61,303 61,250 62,038 62,567 65,369 68,492
               
Advances and progress billings 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Advances and progress billings 48,042 49,955 50,970 51,496 50,676 52,534 52,523

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)

2019 1Q19 2Q19 3Q19 4Q19 2019
Program Accounting 1,173 (4,946)      
Unit-Cost Accounting * 1,538 (4,288)      
2018 1Q18 2Q18 3Q18 4Q18 2018
Program Accounting 1,412 1,785 2,033 2,600 7,830
Unit-Cost Accounting * 1,644 1,941 2,251 2,992 8,828
2017         2017
Program Accounting         5,285
Unit-Cost Accounting *         4,537

Prior results have been adjusted to reflect the adoption of a new revenue recognition accounting standard (ASC 606) in the first quarter of 2018 as well as the realignment for military derivative aircraft in the first quarter of 2019. Effective at the beginning of 2019, all revenues and costs associated with military derivative aircraft production are reported in the Defense, Space & Security segment. Revenues and costs associated with military derivative aircraft production were previously reported in the Commercial Airplanes and Defense, Space & Security segments. Business segment data for 2018 and 2017 reflects the realignment for military derivative aircraft.

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.