Boeing 2015 Annual Report Download - page 88
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72
The following table summarizes our accounts receivable under long-term contracts that were unbillable
or related to outstanding claims as of December 31:
Unbillable Claims
2015 2014 2015 2014
Current $2,024 $2,306 $29
Expected to be collected after one year 2,001 1,408 $70 73
Total $4,025 $3,714 $70 $102
Under contract accounting unbillable receivables on long-term contracts arise when the sales or revenues
based on performance attainment, though appropriately recognized, cannot be billed yet under terms of
the contract as of the balance sheet date. Any adjustment for the credit quality of unbillable receivables,
if required, would be recorded as a direct reduction of revenue. Factors considered in assessing the
collectability of unbillable receivables include, but are not limited to, a customer’s extended delinquency,
requests for restructuring and filings for bankruptcy. Unbillable receivables related to commercial customers
expected to be collected after one year were $178 and $172 at December 31, 2015 and 2014. Accounts
receivable related to claims are items that we believe are earned, but are subject to uncertainty concerning
their determination or ultimate realization.
Accounts receivable as of December 31, 2015, includes $104 of unbillable receivables on a long-term
contract with New LightSquared, LLC (LightSquared) related to the construction of two commercial
satellites. One of the satellites has launched and has been accepted by the customer, and the other is
substantially complete but remains in Boeing’s possession. On May 14, 2012, LightSquared filed for
Chapter 11 bankruptcy protection. On December 7, 2015, LightSquared exited Chapter 11 bankruptcy
protection and fully assumed the Boeing contract. We do not expect to incur losses on these receivables.
Accounts receivable, other than those described above, expected to be collected after one year are not
material.
Note 6 – Inventories
Inventories at December 31 consisted of the following:
2015 2014
Long-term contracts in progress $13,858 $13,381
Commercial aircraft programs 55,230 55,220
Commercial spare parts, used aircraft, general stock materials and other 6,673 7,421
Inventory before advances and progress billings 75,761 76,022
Less advances and progress billings (28,504) (29,266)
Total $47,257 $46,756
Long-Term Contracts in Progress
Long-term contracts in progress includes Delta launch program inventory that is being sold at cost to United
Launch Alliance (ULA) under an inventory supply agreement that terminates on March 31, 2021. At
December 31, 2015 and 2014, the inventory balance was $120 (net of advances of $310) and $154 (net
of advances of $322). At December 31, 2015, $176 of this inventory related to unsold launches. See Note
12.