Boeing

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

Consolidated Statement of Financial Position

(Dollars in millions)

  2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
787
Deferred Production Cost 16,035 15,432 14,976 14,803 14,927 15,153 11,693 11,753 12,056 11,868 12,689 12,416 12,193
Unamortized Tooling and Other Non-Recurring Cost     1,924 1,877 1,863 1,857 1,812 1,814 1,815 1,818 1,822 1,795 1,722 1,711 1,600

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 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
Long-term contracts in progress 708 578 872 821 637 488 582 428 211
Commercial aircraft programs 70,672 71,092 68,106 69,239 69,481 69,552 67,702 68,051 67,850
Commercial spare parts, used aircraft, general stock materials and other 10,419 10,227 9,845 9,759 9,799 9,737 9,867 10,024 10,261
Inventories 81,799 81,897 78,823 79,819 79,917 79,777 78,151 78,503 78,322
                   
Advances and progress billings 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
Advances and progress billings 50,738 51,269 52,980 52,458 52,066 53,177 53,081 54,498 55,310

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)

2023 1Q23 2Q23 3Q23 4Q23 2023
Program Accounting (615) (383)      
Unit-Cost Accounting * (1,871) (919)      
2022 1Q22 2Q22 3Q22 4Q22 2022
Program Accounting (897) (219) (622) (603) (2,341)
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)

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. Results from the first quarter of 2022 onward have been adjusted to reflect the realignment of Boeing Capital into the Commercial Airplanes segment during the first quarter of 2023.

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.