Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 76

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 76
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 At September 30, 2025, $11,871 of 737 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $39 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

12

At September 30, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 777X program: $3,697 and $3,476 of work in process (including deferred production costs of $0 and $0) and $1,486 and $4,122 of unamortized tooling and other non-recurring costs. During the third quarter of 2025, we determined that estimated costs to complete the 777X program plus the costs already included in 777X inventory exceed estimated revenues from the program. The resulting reach-forward loss of $4,899 was recorded as a reduction of deferred production costs, unamortized tooling and other non-recurring costs. The level of profitability on the 777X program will be subject to several factors. These factors include aircraft certification requirements and timing, change incorporation on completed aircraft, production disruption due to labor instability and supply chain disruption, customer considerations, delivery timing and negotiations, further production rate adjustments for the 777X or other commercial aircraft programs, and any change in the accounting quantity. One or more of these factors could result in additional reach-forward losses in future periods.At September 30, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 787 program: deferred production costs of $14,088 and $13,178, supplier advances of $1,100 and $1,379, and unamortized tooling and other non-recurring costs of $1,246 and $1,370. At September 30, 2025, $12,597 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $2,737 are expected to be recovered from units included in the program accounting quantity that represent expected future orders. We expensed abnormal production costs of $30 and $209 during the nine months ended September 30, 2025 and 2024.Commercial aircraft programs inventory included amounts credited in cash