What do you guys think about Boeing's use of "program accounting?" It just seems really aggressive to me because it relies so heavily on estimates (e.g., future plane sales, future profit margins, etc.). Also their pension is $20 billion underfunded and they have been funding it with their own treasury stock.
I am sure management and their auditors know what they are doing. But maybe investors don't really understand the risks they are taking on because the stock has doubled in the past year.
I would think that any reduction in plane backlog for (e.g., China announcing they will give a preference to Airbus in future orders) would significantly hurt Boeing.
Edit: It looks like they have $52 billion of these deferred costs.
Submitted March 06, 2018 at 08:42AM by IAMAnarcissist http://ift.tt/2tkVG6y
