Boeing 2014 Annual Report Download - page 88
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76
Note 10 – Other Assets
Sea Launch
At December 31, 2014 and 2013, Other assets included $356 of receivables related to our former investment
in the Sea Launch venture which became payable by certain Sea Launch partners following Sea Launch’s
bankruptcy filing in June 2009. The $356 includes $147 related to a payment made by us under a bank
guarantee on behalf of Sea Launch and $209 related to loans (partner loans) we made to Sea Launch.
The net amounts owed to Boeing by each of the partners are as follows: S.P. Koroley Rocket and Space
Corporation Energia of Russia – $223, PO Yuzhnoye Mashinostroitelny Zavod of Ukraine – $89 and KB
Yuzhnoye of Ukraine – $44.
Although each partner is contractually obligated to reimburse us for its share of the bank guarantee, the
Russian and Ukrainian partners have raised defenses to enforcement and contested our claims. On
October 19, 2009, we filed a Notice of Arbitration with the Stockholm Chamber of Commerce seeking
reimbursement from the other Sea Launch partners of the $147 bank guarantee payment. On October 7,
2010, the arbitrator ruled that the Stockholm Chamber of Commerce lacked jurisdiction to hear the matter
but did not resolve the merits of our claim. We filed a notice appealing the arbitrator’s ruling on January 11,
2011. On April 11, 2014, the appellate court entered a ruling that the decision of the arbitrator is not
appealable. On May 9, 2014, we filed a brief with the Supreme Court of Sweden appealing the appellate
court's April 11, 2014 ruling. On February 1, 2013, we filed an action in the United States District Court for
the Central District of California seeking reimbursement from the other Sea Launch partners of the $147
bank guarantee payment and the $209 partner loan obligations. A trial in the United States District Court
for the Central District of California is scheduled to commence July 14, 2015. We believe the partners
have the financial wherewithal to pay and intend to pursue vigorously all of our rights and remedies. In the
event we are unable to secure reimbursement of $147 related to our payment under the bank guarantee
and $209 related to partner loans made to Sea Launch, we could incur additional charges. Our current
assessment as to the collectability of these receivables takes into account the current economic conditions
in Russia and Ukraine, although we will continue to monitor the situation.
Note 11 – Liabilities, Commitments and Contingencies
Accrued Liabilities
Accrued liabilities at December 31 consisted of the following:
2014 2013
Accrued compensation and employee benefit costs $5,868 $6,158
Environmental 601 649
Product warranties 1,504 1,570
Forward loss recognition 414 360
Dividends payable 637 542
Other 4,319 4,852
Total $13,343 $14,131