Boeing

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

Consolidated Statement of Financial Position

(Dollars in millions)

  1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
787
Deferred Production Cost 16,841 16,035 15,432 14,976 14,803 14,927 15,153 11,693 11,753 12,056 11,868 12,689
Unamortized Tooling and Other Non-Recurring Cost     1,949 1,924 1,877 1,863 1,857 1,812 1,814 1,815 1,818 1,822 1,795 1,722

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 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
Long-term contracts in progress 871 823 913 708 578 872 821 637 488 582
Commercial aircraft programs 75,170 70,153 71,008 70,672 71,092 68,106 69,239 69,481 69,552 67,702
Commercial spare parts, used aircraft, general stock materials and other 10,920 10,739 10,747 10,419 10,227 9,845 9,759 9,799 9,737 9,867
Inventories 86,961 81,715 82,668 81,799 81,897 78,823 79,819 79,917 79,777 78,151
                   
Advances and progress billings 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
Advances and progress billings 51,974 50,488 50,908 50,738 51,269 52,980 52,458 52,066 53,177 53,081

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

Commercial Airplanes Unit Cost vs. Program

Commercial Airplanes Segment Information - Earnings from Operations

(Dollars in millions)

2022 1Q22 2Q22 3Q22 4Q22 2022
Program Accounting (859) (242) (643) (626) (2,370)
Unit-Cost Accounting * (1,245) (503) (1,144) (1,812) (4,704)
2021 1Q21 2Q21 3Q21 4Q21 2021
Program Accounting (856) (472) (693) (4,454) (6,475)
Unit-Cost Accounting * (930) (284) (851) (1,226) (3,291)
2020 1Q20 2Q20 3Q20 4Q20 2020
Program Accounting (2,068) (2,762) (1,369) (7,648) (13,847)
Unit-Cost Accounting * (1,113) (2,501) (752) (1,035) (5,401)
2019 1Q19 2Q19 3Q19 4Q19 2019
Program Accounting 1,173 (4,946) (40) (2,844) (6,657)
Unit-Cost Accounting * 1,538 (4,288) 944 (1,695) (3,501)
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.