XML 36 R16.htm IDEA: XBRL DOCUMENT v3.6.0.2
Inventories
12 Months Ended
Dec. 31, 2016
Inventory Disclosure [Abstract]  
Inventories
Inventories
Inventories at December 31 consisted of the following:
 
2016

 
2015

Long-term contracts in progress

$12,801

 

$13,858

Commercial aircraft programs
52,048

 
55,230

Commercial spare parts, used aircraft, general stock materials and other
5,446

 
6,673

Inventory before advances and progress billings
70,295

 
75,761

Less advances and progress billings
(27,096
)
 
(28,504
)
Total

$43,199

 

$47,257


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, 2016 and 2015, the inventory balance was $120 (net of advances of $220) and $120 (net of advances of $310). See indemnifications to ULA in Note 12.
Included in inventories are capitalized precontract costs of $729 and $732 at December 31, 2016 and 2015, primarily related to KC-46A Tanker and C-17. See Note 11.
Commercial Aircraft Programs
At December 31, 2016 and 2015, commercial aircraft programs inventory included the following amounts related to the 787 program: $32,501 and $34,656 of work in process (including deferred production costs of $27,308 and $28,510), $2,398 and $2,551 of supplier advances, and $3,625 and $3,890 of unamortized tooling and other non-recurring costs. At December 31, 2016, $23,818 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 $7,115 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.
During the second quarter of 2016, we determined that it was unlikely we would receive firm orders for two flight test aircraft that were produced in 2009 and accordingly reclassified associated costs of $1,235 from 787 program inventory to research and development expense. The reclassification also impacted 787 deferred production costs, reducing the balance by $1,011 at June 30, 2016.
At December 31, 2016 and 2015, commercial aircraft programs inventory included the following amounts related to the 747 program: $35 and $942 of deferred production costs, net of reach-forward losses, and $284 and $377 of unamortized tooling costs. At December 31, 2016, $233 of 747 deferred production and unamortized tooling costs are expected to be recovered from units included in the program accounting quantity that have firm orders and $86 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. At December 31, 2016 and 2015, work in process inventory included a number of completed 747 aircraft that we expect to recover from future orders.
Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $3,117 and $3,166 at December 31, 2016 and 2015.
Used aircraft in inventories at Commercial Airplanes totaled $150 and $267 at December 31, 2016 and 2015.