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BOEING CO. v. U.S.

Nos. 99-35818, 99-35857.

258 F.3d 958 (2001)

The BOEING COMPANY, and Consolidated Subsidiaries; Boeing Sales Corporation, Plaintiffs-Appellees, v. UNITED STATES of America, Defendant-Appellant. The Beoing Company, and Consolidated Subsidiaries, Plaintiff, and Boeing Sales Corporation, Plaintiff-Appellant, United States of America, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Filed August 2, 2001.

Attorney(s) appearing for the Case

John B. Magee, McKeen, Nelson, Ernst & Young, Washington, D.C., and Jean A. Pawlow, Miller & Chevalier, Washington, D.C. for the plaintiffs-appellees/cross-appellants.

David English Carmack and Frank Cihlar, United States Department of Justice, Tax Division, Washington, D.C., for the defendant-appellant/cross-appellee.

Before: DAVID R. THOMPSON, Stephen S. TROTT, and Richard A. PAEZ, Circuit Judges.

Argued and Submitted April 4, 2001. — Seattle, Washington

DAVID R. THOMPSON, Circuit Judge:

The United States appeals the district court's summary judgment determining that the Boeing Company and its consolidated subsidiaries ("Boeing") are entitled to an income tax refund of approximately $419 million for the years 1979 through 1987. The issue is how research and development costs ("R & D") should be accounted for in computing Boeing's net income...

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