Boeing 2010 Annual Report Download - page 38

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The table below provides details of the accounting quantities and firm orders by program as of
December 31. Cumulative firm orders represent the cumulative number of commercial jet aircraft
deliveries plus undelivered firm orders.
Program
737 747 767 777 787
2010
Program accounting quantities 5,000 1,524 1,048 1,150 *
Undelivered units under firm orders 2,186 107 50 253 847
Cumulative firm orders 5,690 1,525 1,044 1,163 847
2009
Program accounting quantities 4,600 1,499 1,035 1,100 *
Undelivered units under firm orders 2,076 108 59 281 851
Cumulative firm orders 5,204 1,526 1,041 1,117 851
2008
Program accounting quantities 4,200 1,499 1,023 1,050 *
Undelivered units under firm orders 2,270 114 70 350 910
Cumulative firm orders 5,026 1,524 1,039 1,098 910
* A final determination of the initial accounting quantity for the 787 program will be made in the quarter
of first airplane delivery, targeted for the third quarter of 2011.
737 Program The accounting quantity for the 737 program increased by 400 units during 2010. During
2010, we announced plans to increase monthly production of the 737 from 31.5 to 35 airplanes per
month beginning in the first quarter of 2012 and a further increase to 38 airplanes per month beginning
in the second quarter of 2013.
747 Program The accounting quantity for the 747 program increased by 25 units during 2010. During
2009 and 2008, we recorded charges of $1,352 million and $685 million to recognize reach-forward
losses on the 747 program reflecting higher than anticipated costs, a reduction in delivery price
increases associated with escalation and difficult cargo market conditions which caused us to defer a
planned production rate increase for 747-8. First flight of the 747-8 Freighter occurred on February 8,
2010. A fourth aircraft was added to the flight test program in July 2010 to improve flight test efficiency.
On September 30, 2010, we announced that the expected first delivery of the 747-8 Freighter would
move to the middle of 2011 from the fourth quarter of 2010 and a fifth airplane would be added to the
flight test fleet to support the new schedule. The new delivery schedule followed an assessment of the
expected cumulative impact of flight test discoveries, which include a low frequency vibration in certain
flight conditions and an underperforming aileron actuator. While neither issue required structural
changes to the airplane, they led to disruptions to certification testing, which the program was unable to
offset within the prior schedule. We are currently producing 747-8 airplanes and until completion of our
flight test program, there is risk that additional items may be identified that require further modifications
or other changes to those aircraft we have produced. On March 19, 2010, we announced that we will
accelerate, from mid-2013 to mid-2012, a planned production rate increase from 1.5 to 2 airplanes per
month. Certification and first delivery of the Intercontinental passenger derivative is expected in the
fourth quarter of 2011. Schedule and other risks inherent in the demanding flight test and certification
phases of program development remain.
767 Program The accounting quantity for the 767 program increased by 13 units during 2010.
777 Program The accounting quantity for the 777 program increased by 50 units during 2010. In April
2009, we announced that monthly production of the 777 will decline from 7 to 5 airplanes per month
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