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Identify impaired inventory including excess or

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identify impaired inventory, including excess or obsolete inventory, based on historical sales trends, expected production usage,and the size and age of the aircraft fleet using the part. Impaired inventories are charged to Cost of products in the period theimpairment occurs.
Boeing Financial Statement Excerpts – page 6 of 9Included in inventory for commercial aircraft programs are amounts paid or credited in cash, or other consideration to certainairline customers, that are referred to as early issue sales consideration. Early issue sales consideration is recognized as areduction to revenue when the delivery of the aircraft under contract occurs. If an airline customer does not perform and takedelivery of the contracted aircraft, we believe that we would have the ability to recover amounts paid. However, to the extent earlyissue sales consideration exceeds advances and is not considered to be otherwise recoverable, it would be written off in thecurrent period.We net advances and progress billings on long-term contracts against inventory in the Consolidated Statements of FinancialPosition. Advances and progress billings in excess of related inventory are reported in Advances and billings in excess of relatedcosts....Note5– Accounts Receivable, netAccounts receivable atDecember 31consisted of the following:20142013U.S. government contracts$4,281$3,604Defense, Space & Security customers(1)1,0181,073Commercial Airplanes customers1,7491,072Reinsurance receivables512525Other296376Less valuation allowance(127)(104)Total$7,729$6,546(1)Excludes U.S. government contractsThe following table summarizes our accounts receivable under long-term contracts that were unbillable or related to outstandingclaims as ofDecember 31:UnbillableClaims2014201320142013Current$2,306$1,550$29$3Expected to be collected after one year1,4081,0207361Total$3,714$2,570$102$64Under contract accounting unbillable receivables on long-term contracts arise when the sales or revenues based on performanceattainment, though appropriately recognized, cannot be billed yet under terms of the contract as of the balance sheet date. Anyadjustment for the credit quality of unbillable receivables, if required, would be recorded as a direct reduction of revenue. Factorsconsidered in assessing the collectability of unbillable receivables include, but are not limited to, a customer’s extendeddelinquency,requests for restructuring and filings for bankruptcy. Unbillable receivables related to commercial customersexpected to be collected after one year were$172and$179atDecember 31, 2014 and 2013. Accounts receivable related toclaims are items that we believe are earned, but are subject to uncertainty concerning their determination or ultimate realization.Accounts receivable as ofDecember 31, 2014, includes$112of unbillable receivables on a long-term contract with LightSquared,LP (LightSquared) related to the construction oftwocommercial satellites. One of the satellites has been delivered, and the otheris substantially complete but remains in Boeing’s possession. On May 14, 2012, LightSquared filed for Chapter 11 bankruptcy

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