Boeing 2015 Annual Report Download - page 121

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105
subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges,
based on the results of investigations. We believe, based upon current information, that the outcome of
any such government disputes and investigations will not have a material effect on our financial position,
results of operations, or cash flows. Where it is reasonably possible that we will incur losses in excess of
recorded amounts in connection with any of the matters set forth below, we will disclose either the amount
or range of reasonably possible losses in excess of such amounts or, where no such amount or range can
be reasonably estimated, the reasons why no such estimate can be made.
Employment, Labor and Benefits Litigation
In the second quarter of 2014, Boeing agreed to a $90 settlement with plaintiffs in the Harkness case with
respect to litigation initiated by former Boeing employees in 2007 upon the sale of the Wichita facility to
Spirit AeroSystems, Inc. (Spirit) in 2005. The settlement was approved by the district court in a fairness
hearing in September 2015. The payment was made in the fourth quarter and the indemnification receivable
from Spirit is included in Other Assets at December 31, 2015.
On October 13, 2006, we were named as a defendant in a lawsuit filed in the U.S. District Court for the
Southern District of Illinois. Plaintiffs, seeking to represent a class of similarly situated participants and
beneficiaries in The Boeing Company Voluntary Investment Plan (the VIP), alleged that fees and expenses
incurred by the VIP were and are unreasonable and excessive, not incurred solely for the benefit of the
VIP and its participants, and were undisclosed to participants. The plaintiffs further alleged that defendants
breached their fiduciary duties in violation of §502(a)(2) of ERISA, and sought injunctive and equitable
relief pursuant to §502(a)(3) of ERISA. The parties reached a provisional settlement on August 26, 2015,
subject to a fairness hearing currently scheduled for March 2016. We do not expect this matter or the
associated settlement to have a material effect on our financial position, results of operations or cash flows.
Note 21 – Segment Information
We operate in five principal segments: Commercial Airplanes; Boeing Military Aircraft (BMA), Network &
Space Systems (N&SS), and Global Services & Support (GS&S), collectively Defense, Space & Security;
and Boeing Capital. All other activities fall within Unallocated items, eliminations and other. See page 54
for the Summary of Business Segment Data, which is an integral part of this note.
The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides
related support services, principally to the commercial airline industry worldwide.
Our BMA segment is engaged in the research, development, production and modification of manned and
unmanned military aircraft and weapons systems for global strike, including fighter aircraft and missile
systems; vertical lift including rotorcraft and tilt-rotor aircraft; mobility, surveillance and engagement,
including battle management, airborne, anti-submarine, transport and tanker aircraft.
Our N&SS segment is engaged in the research, development, production and modification of the following
products and related services: electronics and information solutions, including command, control,
communications, computers, intelligence, surveillance and reconnaissance (C4ISR), cyber and information
solutions, and intelligence systems; strategic missile and defense systems; space and intelligence systems,
including satellites and commercial satellite launch vehicles; and space exploration.
Our GS&S segment provides customers with mission readiness through total support solutions. Our global
services business sustains aircraft and systems with a full spectrum of products and services through
integrated logistics, including supply chain management and engineering support; aircraft modernization
and sustainment; and training systems and government services, including pilot and maintenance training.
In addition, our GS&S segment is engaged in the research, development, production and modification of
airborne surveillance command and control aircraft. GS&S international operations include Boeing Defence
U.K. Ltd., Boeing Defence Australia, and Alsalam Aircraft Company, a joint venture.