Boeing 2009 Annual Report Download - page 37

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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
737 747 767 777 787
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 orders25,204 1,526 1,041 1,117
2008
Program accounting quantities 4,200 1,499 1,023 1,050 *
Undelivered units under firm orders12,270 114 70 350 910
Cumulative firm orders25,026 1,524 1,039 1,098
2007
Program accounting quantities 3,800 1,474 998 950 *
Undelivered units under firm orders 2,076 125 52 357 817
Cumulative firm orders24,542 1,521 1,011 1,044
* 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 Program The accounting quantity for the 737 program increased by 400 units during 2009 due to
the program’s normal progression of obtaining additional orders and delivering aircraft. Production
rates remained unchanged in 2009.
747 Program There was no change in the accounting quantity for the 747 program during 2009.
In 2008, we recorded a charge of $685 million to recognize a reach-forward loss. The charge was
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.
During 2009, additional charges of $1,352 million were recorded to recognize reach-forward losses.
During the first quarter of 2009, we recorded $347 million of a reach-forward loss due to a reduction in
projected delivery price increases associated with escalation and an increase in estimated costs due to
our decisions to reduce twin-aisle production rates which impact production rates beginning in 2010.
During the third quarter of 2009 we increased the reach-forward loss on the 747 program by $1,005
million. Of this amount, $643 million was caused by higher estimated production costs, including both
additional internal production costs and higher supplier expenses, attributable to greater than expected
re-work and disruption in manufacturing due to late maturity of engineering designs as well as the
limited availability of engineering resources. The remaining $362 million was primarily due to
challenging cargo market conditions and our related decision to defer a planned increase in the 747-8
production rate, which drove higher allocations of fixed costs and caused us to incur volume-based
penalties to suppliers.
First flight of the 747-8 Freighter is expected to occur during the first quarter of 2010, with the flight test
program expected to take place in 2010. First delivery of the 747-8 Freighter is expected in the fourth
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