XML 52 R31.htm IDEA: XBRL DOCUMENT v3.3.1.900
Legal Proceedings
12 Months Ended
Dec. 31, 2015
Loss Contingency, Information about Litigation Matters [Abstract]  
Legal Proceedings
Legal Proceedings
Various legal proceedings, claims and investigations related to products, contracts, employment and other matters are pending against us. Potentially material contingencies are discussed below.
We are subject to various U.S. government inquiries and investigations, from which civil, criminal or administrative proceedings could result or have resulted in the past. Such proceedings involve or could involve claims by the government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under government regulations, a company, or one or more of its operating divisions or 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.