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Contingencies
9 Months Ended
Jun. 30, 2017
Contingencies  
Contingencies

6. Contingencies

 

On February 23, 2017, IS&S announced a settlement of its previously disclosed lawsuit with Delta Air Lines, Inc. (“Delta”). The lawsuit related to Delta’s October 2014 termination of a contract for IS&S to develop, manufacture and install new cockpit displays and upgraded flight management systems with RNP, RTA, and GPS capabilities on Delta’s fleet of McDonnell Douglas 88 and 90 aircraft. Under the terms of settlement, Delta paid IS&S $7.75 million and the parties dismissed their respective claims and counterclaims against each other and exchanged releases, bringing the lawsuit to an end.

 

The Company reversed the $3.6 million unbilled receivable reserve in the nine month period ended June 30, 2017. The effect of the reversal is reflected in selling, general and administrative expenses. The Company had $3.6 million of unbilled receivables and $0.2 million of inventory on its balance sheet relating to the Delta program at September 30, 2016. The remainder of the amount paid to the Company, approximately $4.1 million is reflected in other income for the nine month period ended June 30, 2017.