Stitch wrote:WIederling wrote:LewisNEO wrote:the R&D aren't included in the deffered program costs.
Reason why the prototype frames were targeted for sale and the terrible teens reworked at high ( above revenue?) cost.
If a tradeable item the ( extremely to very high ) cost of the early frames goes into deferred cost and not into immediately effective R&D cost.
Another cost hit well hidden.
And when they couldn't sell them, Boeing took billions in write-downs by moving them into R&D because that was effectively what they became - prototype R&D frames.
Of course, if Boeing had been able to sell them, that would not have been a panacea as they would have still incurred billions in deferred production costs while only bringing in hundreds of millions of revenue. So the difference either would have had to have been made up through the profits generated from later deliveries or Boeing would have had to write down the difference.
All the terrible teens are sold but one (Crystal Air fell through). But reading between the lines, the cost of just refurbishing each terrible teen appears to be as much or more than the list price of a new 788. Financially, they should have scrapped them, or donated them.