"Boeing Accounting" Makes everything look great.....

Boeing 3^rd quarter numbers are out….lets take a peak. 

Oh look “Boeing accounting” only reports the positive numbers, and ignores all the negative numbers.   What an honest way to do business.

They are really hoping nobody notices all the bad they are sweeping under the rug.  Apparently nobody does notice as the stock price keeps going up.

All the negative costs on the Dreamliner are “Deferred” into the future.  Those costs and penalties are currently $20,000,000,000.00.  (Yay outsourcing). Next year they will be $25,000,000,000.00. 

But you should pay no attention to that.  Just concentrate on the money they are making on their other planes.  You know the planes made in America which actually work. The planes that don’t create angy customers who are now buying Airbus.

http://seattletimes.com/html/businesstechnology/2022106510_boeingearningsxml.html

“Boeing’s “program accounting” system spreads the losses in the early years of any new airplane program by deferring much of the early production costs.”

“To date, Boeing has deferred a running total of just over $20 billion in 787 costs. That’s money already spent that is withheld from the profit and loss calculations until much later when the program is mature.”

“Three months ago, Boeing projected that the cumulative deferred costs would peak at “slightly over $20 billion” and that next year — after Boeing reaches the point where the money it’s paid for delivering a 787 is less than the money spent on building the jet — the total would finally begin to fall.”

“But Wednesday Boeing said deferred accounting costs will continue to rise into 2015 to a peak of $25 billion.”