Boeing 2008 Annual Report Download - page 42

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The accounting quantity for each program may include units that have been delivered, undelivered
units under contract, and units anticipated to be under contract in the reasonable future (anticipated
orders). In developing total program estimates all of these items within the accounting quantity must be
considered. The table below provides details as of December 31:
Program
737 NG 747 767 777 787
2008
Program accounting quantities 4,200 1,499 1,023 1,050 *
Undelivered units under firm orders12,270 114 70 350 910
Cumulative firm orders (CFO)25,026 1,524 1,039 1,098
Anticipated orders N/A N/A N/A N/A
Anticipated orders as a % of CFO N/A N/A N/A N/A
2007
Program accounting quantities 3,800 1,474 998 950 *
Undelivered units under firm orders 2,076 125 52 357 817
Cumulative firm orders (CFO)24,542 1,521 1,011 1,044
Anticipated orders N/A N/A N/A N/A
Anticipated orders as a % of CFO N/A N/A N/A N/A
2006
Program accounting quantities 3,200 1,449 985 900 *
Undelivered units under firm orders 1,560 116 28 299 448
Cumulative firm orders (CFO)23,696 1,496 975 903
Anticipated orders N/A N/A 8 N/A
Anticipated orders as a % of CFO N/A N/A 1% N/A
* The accounting quantity for the 787 program will be determined in the year of first airplane
delivery, targeted for 2010.
1Undelivered units are not adjusted for cancellations subsequent to December 31, 2008.
2Cumulative firm orders represent the cumulative number of commercial jet aircraft deliveries plus
undelivered firm orders.
737 Next-Generation The accounting quantity for the 737 Next-Generation program increased by 400
units during 2008 due to the program’s normal progression of obtaining additional orders and delivering
aircraft.
747 Program In November 2008, we announced a revised schedule for the delivery of the 747-8
Freighter and Intercontinental airplanes. Deliveries of the first 747-8 Freighter moved from the fourth
quarter of 2009 into the third quarter of 2010. Delivery of the 747-8 Intercontinental moved from the
fourth quarter of 2010 into the second quarter of 2011. The schedule change was caused by design
changes, limited availability of engineering resources and the recent IAM strike. In the third quarter of
2008, we increased our cost estimates to incorporate the anticipated schedule delay and design
changes and reduced margins on the 747 program to zero. We experienced further cost growth in the
fourth quarter and recorded a charge of $685 million to recognize a reach-forward loss. The charge is
primarily related to higher than anticipated costs due to late changes to wing design which drove new
load requirements into the fuselage and created other statement of work changes for our suppliers.
Design and load changes also reduced commonality with 747-400 and resulted in increased costs for
components and systems. Higher pension costs, infrastructure cost shifts, delays in transitioning
certain components to suppliers and higher internal production costs also increased cost estimates.
We believe that the cost and revenue estimates incorporated in the financial statements are
appropriate; however, this remains a development program, with the associated inherent risks.
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