We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Northrop Grumman Corp Holding Co | NYSE:NOC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-5.91 | -1.24% | 469.09 | 477.52 | 465.23 | 475.65 | 1,443,464 | 01:00:00 |
x
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
DELAWARE
|
|
80-0640649
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
2980 Fairview Park Drive,
Falls Church, Virginia
|
|
22042
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Yes
x
|
|
No
o
|
Yes
x
|
|
No
o
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
||||
|
|
|
||||
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
|
Yes
o
|
|
No
x
|
|
|
Page
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
|
|
|
||
|
||
|
||
|
||
|
||
|
6
.
Investigations, Claims and Litigation
|
|
|
||
|
||
|
||
|
||
Item 2.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions, except per share amounts
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Sales
|
|
|
|
|
|
|
|
||||||||
Product
|
$
|
3,560
|
|
|
$
|
3,509
|
|
|
$
|
7,038
|
|
|
$
|
6,938
|
|
Service
|
2,440
|
|
|
2,387
|
|
|
4,918
|
|
|
4,915
|
|
||||
Total sales
|
6,000
|
|
|
5,896
|
|
|
11,956
|
|
|
11,853
|
|
||||
Operating costs and expenses
|
|
|
|
|
|
|
|
||||||||
Product
|
2,621
|
|
|
2,568
|
|
|
5,232
|
|
|
5,110
|
|
||||
Service
|
1,962
|
|
|
1,874
|
|
|
3,912
|
|
|
3,874
|
|
||||
General and administrative expenses
|
620
|
|
|
641
|
|
|
1,276
|
|
|
1,276
|
|
||||
Operating income
|
797
|
|
|
813
|
|
|
1,536
|
|
|
1,593
|
|
||||
Other (expense) income
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(74
|
)
|
|
(75
|
)
|
|
(150
|
)
|
|
(151
|
)
|
||||
Other, net
|
7
|
|
|
(2
|
)
|
|
20
|
|
|
(2
|
)
|
||||
Earnings before income taxes
|
730
|
|
|
736
|
|
|
1,406
|
|
|
1,440
|
|
||||
Federal and foreign income tax expense
|
213
|
|
|
205
|
|
|
333
|
|
|
425
|
|
||||
Net earnings
|
$
|
517
|
|
|
$
|
531
|
|
|
$
|
1,073
|
|
|
$
|
1,015
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
2.87
|
|
|
$
|
2.77
|
|
|
$
|
5.94
|
|
|
$
|
5.21
|
|
Weighted-average common shares outstanding, in millions
|
180.1
|
|
|
191.8
|
|
|
180.7
|
|
|
194.8
|
|
||||
Diluted earnings per share
|
$
|
2.85
|
|
|
$
|
2.74
|
|
|
$
|
5.88
|
|
|
$
|
5.15
|
|
Weighted-average diluted shares outstanding, in millions
|
181.5
|
|
|
193.7
|
|
|
182.4
|
|
|
197.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net earnings (from above)
|
$
|
517
|
|
|
$
|
531
|
|
|
$
|
1,073
|
|
|
$
|
1,015
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
||||||||
Change in unamortized benefit plan costs, net of tax
|
100
|
|
|
96
|
|
|
201
|
|
|
192
|
|
||||
Change in cumulative translation adjustment
|
(9
|
)
|
|
13
|
|
|
(13
|
)
|
|
(16
|
)
|
||||
Other, net
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income, net of tax
|
92
|
|
|
109
|
|
|
188
|
|
|
175
|
|
||||
Comprehensive income
|
$
|
609
|
|
|
$
|
640
|
|
|
$
|
1,261
|
|
|
$
|
1,190
|
|
$ in millions
|
June 30,
2016 |
|
December 31,
2015 |
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,139
|
|
|
$
|
2,319
|
|
Accounts receivable, net
|
3,483
|
|
|
2,841
|
|
||
Inventoried costs, net
|
973
|
|
|
807
|
|
||
Prepaid expenses and other current assets
|
186
|
|
|
367
|
|
||
Total current assets
|
5,781
|
|
|
6,334
|
|
||
Property, plant and equipment, net of accumulated depreciation of $4,927 in 2016 and $4,849 in 2015
|
3,299
|
|
|
3,064
|
|
||
Goodwill
|
12,463
|
|
|
12,460
|
|
||
Deferred tax assets
|
1,375
|
|
|
1,409
|
|
||
Other non-current assets
|
1,163
|
|
|
1,157
|
|
||
Total assets
|
$
|
24,081
|
|
|
$
|
24,424
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Trade accounts payable
|
$
|
1,272
|
|
|
$
|
1,282
|
|
Accrued employee compensation
|
1,112
|
|
|
1,195
|
|
||
Advance payments and amounts in excess of costs incurred
|
1,383
|
|
|
1,537
|
|
||
Other current liabilities
|
1,332
|
|
|
1,443
|
|
||
Total current liabilities
|
5,099
|
|
|
5,457
|
|
||
Long-term debt, net of current portion
|
6,387
|
|
|
6,386
|
|
||
Pension and other post-retirement benefit plan liabilities
|
6,061
|
|
|
6,172
|
|
||
Other non-current liabilities
|
853
|
|
|
887
|
|
||
Total liabilities
|
18,400
|
|
|
18,902
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 7)
|
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2016—178,956,974 and 2015—181,303,083
|
179
|
|
|
181
|
|
||
Paid-in capital
|
—
|
|
|
—
|
|
||
Retained earnings
|
10,634
|
|
|
10,661
|
|
||
Accumulated other comprehensive loss
|
(5,132
|
)
|
|
(5,320
|
)
|
||
Total shareholders’ equity
|
5,681
|
|
|
5,522
|
|
||
Total liabilities and shareholders’ equity
|
$
|
24,081
|
|
|
$
|
24,424
|
|
|
Six Months Ended June 30
|
||||||
$ in millions
|
2016
|
|
2015
|
||||
Operating activities
|
|
|
|
||||
Net earnings
|
$
|
1,073
|
|
|
$
|
1,015
|
|
Adjustments to reconcile to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
209
|
|
|
216
|
|
||
Stock-based compensation
|
37
|
|
|
47
|
|
||
Excess tax benefits from stock-based compensation
|
—
|
|
|
(106
|
)
|
||
Deferred income taxes
|
(89
|
)
|
|
139
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(647
|
)
|
|
(344
|
)
|
||
Inventoried costs, net
|
(170
|
)
|
|
(117
|
)
|
||
Prepaid expenses and other assets
|
7
|
|
|
48
|
|
||
Accounts payable and other liabilities
|
(287
|
)
|
|
(870
|
)
|
||
Income taxes payable
|
225
|
|
|
314
|
|
||
Retiree benefits
|
209
|
|
|
(378
|
)
|
||
Other, net
|
(23
|
)
|
|
8
|
|
||
Net cash provided by (used in) operating activities
|
$
|
544
|
|
|
$
|
(28
|
)
|
|
|
|
|
||||
Investing activities
|
|
|
|
||||
Capital expenditures
|
(471
|
)
|
|
(232
|
)
|
||
Other, net
|
2
|
|
|
(2
|
)
|
||
Net cash used in investing activities
|
(469
|
)
|
|
(234
|
)
|
||
|
|
|
|
||||
Financing activities
|
|
|
|
||||
Common stock repurchases
|
(682
|
)
|
|
(1,916
|
)
|
||
Net proceeds from issuance of long-term debt
|
—
|
|
|
600
|
|
||
Payments of long-term debt
|
(107
|
)
|
|
—
|
|
||
Cash dividends paid
|
(322
|
)
|
|
(309
|
)
|
||
Payments of employee taxes withheld from share-based awards
|
(150
|
)
|
|
(172
|
)
|
||
Other, net
|
6
|
|
|
103
|
|
||
Net cash used in financing activities
|
(1,255
|
)
|
|
(1,694
|
)
|
||
Decrease in cash and cash equivalents
|
(1,180
|
)
|
|
(1,956
|
)
|
||
Cash and cash equivalents, beginning of year
|
2,319
|
|
|
3,863
|
|
||
Cash and cash equivalents, end of period
|
$
|
1,139
|
|
|
$
|
1,907
|
|
|
Six Months Ended June 30
|
||||||
$ in millions, except per share amounts
|
2016
|
|
2015
|
||||
Common stock
|
|
|
|
||||
Beginning of year
|
$
|
181
|
|
|
$
|
199
|
|
Common stock repurchased
|
(3
|
)
|
|
(12
|
)
|
||
Shares issued for employee stock awards and options
|
1
|
|
|
1
|
|
||
End of period
|
179
|
|
|
188
|
|
||
Paid-in capital
|
|
|
|
||||
Beginning of year
|
—
|
|
|
—
|
|
||
End of period
|
—
|
|
|
—
|
|
||
Retained earnings
|
|
|
|
||||
Beginning of year
|
10,661
|
|
|
12,392
|
|
||
Common stock repurchased
|
(686
|
)
|
|
(1,933
|
)
|
||
Net earnings
|
1,073
|
|
|
1,015
|
|
||
Dividends declared
|
(310
|
)
|
|
(297
|
)
|
||
Stock compensation
|
(104
|
)
|
|
(13
|
)
|
||
End of period
|
10,634
|
|
|
11,164
|
|
||
Accumulated other comprehensive loss
|
|
|
|
||||
Beginning of year
|
(5,320
|
)
|
|
(5,356
|
)
|
||
Other comprehensive income, net of tax
|
188
|
|
|
175
|
|
||
End of period
|
(5,132
|
)
|
|
(5,181
|
)
|
||
Total shareholders’ equity
|
$
|
5,681
|
|
|
$
|
6,171
|
|
Cash dividends declared per share
|
$
|
1.70
|
|
|
$
|
1.50
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions, except per share data
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating Income
|
$
|
137
|
|
|
$
|
162
|
|
|
$
|
266
|
|
|
$
|
349
|
|
Net Earnings
(1)
|
89
|
|
|
105
|
|
|
173
|
|
|
227
|
|
||||
Diluted earnings per share
(1)
|
0.49
|
|
|
0.54
|
|
|
0.95
|
|
|
1.15
|
|
(1)
|
Based on statutory tax rates
|
$ in millions
|
June 30,
2016 |
|
December 31,
2015 |
||||
Unamortized benefit plan costs, net of tax benefit of $3,227 as of June 30, 2016 and $3,350 as of December 31, 2015
|
$
|
(5,040
|
)
|
|
$
|
(5,241
|
)
|
Cumulative translation adjustment
|
(95
|
)
|
|
(82
|
)
|
||
Net unrealized gain on marketable securities and cash flow hedges, net of tax
|
3
|
|
|
3
|
|
||
Total accumulated other comprehensive loss
|
$
|
(5,132
|
)
|
|
$
|
(5,320
|
)
|
|
|
|
|
|
|
|
|
|
|
Shares Repurchased
(in millions) |
|||||||||
Repurchase Program
Authorization Date |
|
Amount
Authorized (in millions) |
|
Total
Shares Retired (in millions) |
|
Average
Price Per Share (1) |
|
Date Completed
|
|
Six Months Ended June 30
|
|||||||||
|
2016
|
|
2015
|
||||||||||||||||
May 15, 2013
|
|
$
|
4,000
|
|
|
32.8
|
|
|
$
|
121.97
|
|
|
March 2015
|
|
—
|
|
|
2.7
|
|
December 4, 2014
|
|
$
|
3,000
|
|
|
18.0
|
|
|
$
|
166.70
|
|
|
March 2016
|
|
1.4
|
|
|
9.4
|
|
September 16, 2015
|
|
$
|
4,000
|
|
|
2.0
|
|
|
$
|
210.87
|
|
|
|
|
2.0
|
|
|
—
|
|
(1)
|
Includes commissions paid.
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Sales
|
|
|
|
|
|
|
|
||||||||
Aerospace Systems
|
$
|
2,600
|
|
|
$
|
2,498
|
|
|
$
|
5,174
|
|
|
$
|
4,996
|
|
Mission Systems
|
2,690
|
|
|
2,628
|
|
|
5,383
|
|
|
5,339
|
|
||||
Technology Services
|
1,213
|
|
|
1,238
|
|
|
2,427
|
|
|
2,505
|
|
||||
Intersegment eliminations
|
(503
|
)
|
|
(468
|
)
|
|
(1,028
|
)
|
|
(987
|
)
|
||||
Total sales
|
6,000
|
|
|
5,896
|
|
|
11,956
|
|
|
11,853
|
|
||||
Operating income
|
|
|
|
|
|
|
|
||||||||
Aerospace Systems
|
312
|
|
|
319
|
|
|
598
|
|
|
631
|
|
||||
Mission Systems
|
351
|
|
|
348
|
|
|
704
|
|
|
692
|
|
||||
Technology Services
|
131
|
|
|
128
|
|
|
257
|
|
|
261
|
|
||||
Intersegment eliminations
|
(63
|
)
|
|
(53
|
)
|
|
(127
|
)
|
|
(107
|
)
|
||||
Total segment operating income
|
731
|
|
|
742
|
|
|
1,432
|
|
|
1,477
|
|
||||
Reconciliation to total operating income:
|
|
|
|
|
|
|
|
||||||||
Net FAS/CAS pension adjustment
|
69
|
|
|
81
|
|
|
143
|
|
|
164
|
|
||||
Unallocated corporate expenses
|
(3
|
)
|
|
(9
|
)
|
|
(36
|
)
|
|
(47
|
)
|
||||
Other
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
||||
Total operating income
|
$
|
797
|
|
|
$
|
813
|
|
|
$
|
1,536
|
|
|
$
|
1,593
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Federal and foreign income tax expense
|
$
|
213
|
|
|
$
|
205
|
|
|
$
|
333
|
|
|
$
|
425
|
|
Effective income tax rate
|
29.2
|
%
|
|
27.9
|
%
|
|
23.7
|
%
|
|
29.5
|
%
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
$ in millions
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Financial Assets (Liabilities)
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
||||||||
Trading
|
$
|
305
|
|
|
$
|
305
|
|
|
$
|
303
|
|
|
$
|
303
|
|
Available-for-sale
|
8
|
|
|
8
|
|
|
7
|
|
|
7
|
|
||||
Derivatives
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
||||
Long-term debt, including current portion
|
$
|
(6,390
|
)
|
|
$
|
(7,352
|
)
|
|
$
|
(6,496
|
)
|
|
$
|
(6,907
|
)
|
$ in millions
|
|
Range of Reasonably Possible Future Costs
(1)
|
|
Accrued Costs
(2)
|
|
Deferred Costs
(3)
|
||||
June 30, 2016
|
|
$361 - $771
|
|
$
|
371
|
|
|
$
|
189
|
|
December 31, 2015
|
|
353 - 812
|
|
370
|
|
|
186
|
|
(1)
|
The range of reasonably possible future costs does not take into consideration amounts expected to be recoverable through overhead charges on U.S. Government contracts.
|
|
Three Months Ended June 30
|
Six Months Ended June 30
|
||||||||||||||||||||||||||||
|
Pension
Benefits |
|
Medical and
Life Benefits |
Pension
Benefits |
|
Medical and
Life Benefits |
||||||||||||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
$
|
111
|
|
|
$
|
121
|
|
|
$
|
7
|
|
|
$
|
9
|
|
$
|
223
|
|
|
$
|
242
|
|
|
$
|
15
|
|
|
$
|
18
|
|
Interest cost
|
321
|
|
|
306
|
|
|
23
|
|
|
23
|
|
642
|
|
|
612
|
|
|
47
|
|
|
47
|
|
||||||||
Expected return on plan assets
|
(463
|
)
|
|
(493
|
)
|
|
(22
|
)
|
|
(23
|
)
|
(926
|
)
|
|
(987
|
)
|
|
(43
|
)
|
|
(45
|
)
|
||||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prior service credit
|
(15
|
)
|
|
(15
|
)
|
|
(5
|
)
|
|
(7
|
)
|
(30
|
)
|
|
(30
|
)
|
|
(11
|
)
|
|
(14
|
)
|
||||||||
Net loss from previous years
|
179
|
|
|
170
|
|
|
5
|
|
|
8
|
|
357
|
|
|
341
|
|
|
8
|
|
|
14
|
|
||||||||
Net periodic benefit cost
|
$
|
133
|
|
|
$
|
89
|
|
|
$
|
8
|
|
|
$
|
10
|
|
$
|
266
|
|
|
$
|
178
|
|
|
$
|
16
|
|
|
$
|
20
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Defined benefit pension plans
|
$
|
20
|
|
|
$
|
19
|
|
|
$
|
47
|
|
|
$
|
544
|
|
Medical and life benefit plans
|
18
|
|
|
19
|
|
|
29
|
|
|
25
|
|
||||
Defined contribution plans
|
71
|
|
|
65
|
|
|
158
|
|
|
150
|
|
|
|
Six Months Ended
June 30
|
|||||
in millions
|
|
2016
|
2015
|
||||
RSRs granted
|
|
0.2
|
|
0.2
|
|
||
RPSRs granted
|
|
0.3
|
|
0.4
|
|
||
Grant date aggregate fair value
|
|
$
|
88
|
|
$
|
88
|
|
|
|
Six Months Ended
June 30 |
|||||
$ in millions
|
|
2016
|
2015
|
||||
Minimum aggregate payout amount
|
|
$
|
34
|
|
$
|
36
|
|
Maximum aggregate payout amount
|
|
193
|
|
192
|
|
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
$ in millions, except per share amounts
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Sales
|
$
|
6,000
|
|
|
$
|
5,896
|
|
|
2
|
%
|
|
$
|
11,956
|
|
|
$
|
11,853
|
|
|
1
|
%
|
Operating costs and expenses
|
5,203
|
|
|
5,083
|
|
|
2
|
%
|
|
10,420
|
|
|
10,260
|
|
|
2
|
%
|
||||
Operating income
|
797
|
|
|
813
|
|
|
(2
|
)%
|
|
1,536
|
|
|
1,593
|
|
|
(4
|
)%
|
||||
Operating margin rate
|
13.3
|
%
|
|
13.8
|
%
|
|
|
|
12.8
|
%
|
|
13.4
|
%
|
|
|
||||||
Federal and foreign income tax expense
|
213
|
|
|
205
|
|
|
4
|
%
|
|
333
|
|
|
425
|
|
|
(22
|
)%
|
||||
Effective income tax rate
|
29.2
|
%
|
|
27.9
|
%
|
|
|
|
23.7
|
%
|
|
29.5
|
%
|
|
|
||||||
Net earnings
|
517
|
|
|
531
|
|
|
(3
|
)%
|
|
1,073
|
|
|
1,015
|
|
|
6
|
%
|
||||
Diluted earnings per share
|
2.85
|
|
|
2.74
|
|
|
4
|
%
|
|
5.88
|
|
|
5.15
|
|
|
14
|
%
|
||||
Net cash provided by (used in) operating activities
|
$
|
604
|
|
|
$
|
626
|
|
|
(4
|
)%
|
|
$
|
544
|
|
|
$
|
(28
|
)
|
|
NM
|
|
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Product costs
|
$
|
2,621
|
|
|
$
|
2,568
|
|
|
2
|
%
|
|
$
|
5,232
|
|
|
$
|
5,110
|
|
|
2
|
%
|
Service costs
|
1,962
|
|
|
1,874
|
|
|
5
|
%
|
|
3,912
|
|
|
3,874
|
|
|
1
|
%
|
||||
G&A expenses
|
620
|
|
|
641
|
|
|
(3
|
)%
|
|
1,276
|
|
|
1,276
|
|
|
—
|
|
||||
Operating costs and expenses
|
$
|
5,203
|
|
|
$
|
5,083
|
|
|
2
|
%
|
|
$
|
10,420
|
|
|
$
|
10,260
|
|
|
2
|
%
|
Operating costs and expenses as a % of sales
|
86.7
|
%
|
|
86.2
|
%
|
|
|
|
87.2
|
%
|
|
86.6
|
%
|
|
|
Aerospace Systems
|
|
Mission Systems
|
|
Technology Services
|
Autonomous Systems
|
|
Sensors and Processing
|
|
Global Logistics and Modernization
|
Manned Aircraft
|
|
Cyber and ISR
|
|
Advanced Defense Services
|
Space
|
|
Advanced Capabilities
|
|
System Modernization and Services
|
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Segment operating income
|
$
|
731
|
|
|
$
|
742
|
|
|
(1
|
)%
|
|
$
|
1,432
|
|
|
$
|
1,477
|
|
|
(3
|
)%
|
Segment operating margin rate
|
12.2
|
%
|
|
12.6
|
%
|
|
|
|
12.0
|
%
|
|
12.5
|
%
|
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Favorable EAC adjustments
|
$
|
199
|
|
|
$
|
228
|
|
|
$
|
399
|
|
|
$
|
518
|
|
Unfavorable EAC adjustments
|
(62
|
)
|
|
(66
|
)
|
|
(133
|
)
|
|
(169
|
)
|
||||
Net EAC adjustments
|
$
|
137
|
|
|
$
|
162
|
|
|
$
|
266
|
|
|
$
|
349
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Aerospace Systems
|
$
|
83
|
|
|
$
|
109
|
|
|
$
|
142
|
|
|
$
|
220
|
|
Mission Systems
|
$
|
45
|
|
|
$
|
43
|
|
|
100
|
|
|
99
|
|
||
Technology Services
|
16
|
|
|
16
|
|
|
37
|
|
|
39
|
|
||||
Eliminations
|
(7
|
)
|
|
(6
|
)
|
|
(13
|
)
|
|
(9
|
)
|
||||
Net EAC adjustments
|
$
|
137
|
|
|
$
|
162
|
|
|
$
|
266
|
|
|
$
|
349
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Segment operating income
|
$
|
731
|
|
|
$
|
742
|
|
|
$
|
1,432
|
|
|
$
|
1,477
|
|
CAS pension expense
|
202
|
|
|
170
|
|
|
409
|
|
|
342
|
|
||||
Less: FAS pension expense
|
(133
|
)
|
|
(89
|
)
|
|
(266
|
)
|
|
(178
|
)
|
||||
Net FAS/CAS pension adjustment
|
69
|
|
|
81
|
|
|
143
|
|
|
164
|
|
||||
Unallocated corporate expenses
|
(3
|
)
|
|
(9
|
)
|
|
(36
|
)
|
|
(47
|
)
|
||||
Other
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
||||
Total operating income
|
$
|
797
|
|
|
$
|
813
|
|
|
$
|
1,536
|
|
|
$
|
1,593
|
|
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Sales
|
$
|
2,600
|
|
|
$
|
2,498
|
|
|
4
|
%
|
|
$
|
5,174
|
|
|
$
|
4,996
|
|
|
4
|
%
|
Operating income
|
312
|
|
|
319
|
|
|
(2
|
)%
|
|
598
|
|
|
631
|
|
|
(5
|
)%
|
||||
Operating margin rate
|
12.0
|
%
|
|
12.8
|
%
|
|
|
|
11.6
|
%
|
|
12.6
|
%
|
|
|
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Sales
|
$
|
2,690
|
|
|
$
|
2,628
|
|
|
2
|
%
|
|
$
|
5,383
|
|
|
$
|
5,339
|
|
|
1
|
%
|
Operating income
|
351
|
|
|
348
|
|
|
1
|
%
|
|
704
|
|
|
692
|
|
|
2
|
%
|
||||
Operating margin rate
|
13.0
|
%
|
|
13.2
|
%
|
|
|
|
13.1
|
%
|
|
13.0
|
%
|
|
|
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Sales
|
$
|
1,213
|
|
|
$
|
1,238
|
|
|
(2
|
)%
|
|
$
|
2,427
|
|
|
$
|
2,505
|
|
|
(3
|
)%
|
Operating income
|
131
|
|
|
128
|
|
|
2
|
%
|
|
257
|
|
|
261
|
|
|
(2
|
)%
|
||||
Operating margin rate
|
10.8
|
%
|
|
10.3
|
%
|
|
|
|
10.6
|
%
|
|
10.4
|
%
|
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||||||||||||
$ in millions
|
2016
|
2015
|
|
2016
|
2015
|
||||||||||||||||||||
Segment Information:
|
Sales
|
Operating Costs and Expenses
|
Sales
|
Operating Costs and Expenses
|
|
Sales
|
Operating Costs and Expenses
|
Sales
|
Operating Costs and Expenses
|
||||||||||||||||
Aerospace Systems
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product
|
$
|
2,123
|
|
$
|
1,855
|
|
$
|
2,029
|
|
$
|
1,764
|
|
|
$
|
4,214
|
|
$
|
3,706
|
|
$
|
3,987
|
|
$
|
3,490
|
|
Service
|
477
|
|
433
|
|
469
|
|
415
|
|
|
960
|
|
870
|
|
1,009
|
|
875
|
|
||||||||
Mission Systems
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product
|
1,575
|
|
1,343
|
|
1,579
|
|
1,363
|
|
|
3,113
|
|
2,687
|
|
3,190
|
|
2,751
|
|
||||||||
Service
|
1,115
|
|
996
|
|
1,049
|
|
917
|
|
|
2,270
|
|
1,992
|
|
2,149
|
|
1,896
|
|
||||||||
Technology Services
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product
|
83
|
|
77
|
|
93
|
|
96
|
|
|
163
|
|
148
|
|
187
|
|
177
|
|
||||||||
Service
|
1,130
|
|
1,005
|
|
1,145
|
|
1,014
|
|
|
2,264
|
|
2,022
|
|
2,318
|
|
2,067
|
|
||||||||
Segment Totals
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total Product
|
$
|
3,781
|
|
$
|
3,275
|
|
$
|
3,701
|
|
$
|
3,223
|
|
|
$
|
7,490
|
|
$
|
6,541
|
|
$
|
7,364
|
|
$
|
6,418
|
|
Total Service
|
2,722
|
|
2,434
|
|
2,663
|
|
2,346
|
|
|
5,494
|
|
4,884
|
|
5,476
|
|
4,838
|
|
||||||||
Intersegment eliminations
|
(503
|
)
|
(440
|
)
|
(468
|
)
|
(415
|
)
|
|
(1,028
|
)
|
(901
|
)
|
(987
|
)
|
(880
|
)
|
||||||||
Total segment
(1)
|
$
|
6,000
|
|
$
|
5,269
|
|
$
|
5,896
|
|
$
|
5,154
|
|
|
$
|
11,956
|
|
$
|
10,524
|
|
$
|
11,853
|
|
$
|
10,376
|
|
(1)
|
The reconciliation of segment operating income to total operating income, as well as a discussion of the reconciling items, is included in Note
3
to the unaudited condensed consolidated financial statements in Part I, Item 1.
|
|
Six Months Ended June 30
|
||||||
$ in millions
|
2016
|
|
2015
|
||||
Net earnings
|
$
|
1,073
|
|
|
$
|
1,015
|
|
Non-cash items
(1)
|
157
|
|
|
296
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Trade working capital
|
(872
|
)
|
|
(969
|
)
|
||
Retiree benefits
|
209
|
|
|
(378
|
)
|
||
Other, net
|
(23
|
)
|
|
8
|
|
||
Net cash provided by (used in) operating activities
|
$
|
544
|
|
|
$
|
(28
|
)
|
(1)
|
Includes depreciation and amortization, stock based compensation expense (including related excess tax benefits in 2015) and deferred income taxes.
|
|
Six Months Ended June 30
|
||||||
$ in millions
|
2016
|
|
2015
|
||||
Net cash provided by (used in) operating activities
|
$
|
544
|
|
|
$
|
(28
|
)
|
Less: capital expenditures
|
(471
|
)
|
|
(232
|
)
|
||
Free cash flow
|
$
|
73
|
|
|
$
|
(260
|
)
|
•
|
our dependence on the U.S. Government for a substantial portion of our business
|
•
|
significant delays or reductions in appropriations for our programs and U.S. Government funding more broadly
|
•
|
investigations, claims and/or litigation
|
•
|
our exposure to additional risks as a result of our international business
|
•
|
the improper conduct of employees, agents, business partners or joint ventures in which we participate and the impact on our reputation and our ability to do business
|
•
|
the use of estimates when accounting for our contracts and the effect of contract cost growth and/or changes in estimated contract revenues and costs
|
•
|
cyber and other security threats or disruptions faced by us, our customers or our partners
|
•
|
the future investment performance of plan assets, changes in actuarial assumptions associated with our pension and other post-retirement benefit plans and related legislative or other regulatory actions
|
•
|
the performance and financial viability of our subcontractors and suppliers and the availability and pricing of materials and components
|
•
|
increased competition within our markets and bid protests
|
•
|
changes in procurement and other laws, regulations and practices applicable to our industry, findings by the U.S. Government, and changes in our customers’ business practices
|
•
|
natural and/or environmental disasters
|
•
|
the adequacy and availability of our insurance coverage, customer indemnifications or other liability protections
|
•
|
products and services we provide related to nuclear and other hazardous and high risk operations, which subject us to various environmental, regulatory, financial, reputational and other risks
|
•
|
changes in business conditions that could impact business investments and/or recorded goodwill or the value of other long-lived assets
|
•
|
inability to develop new products and technologies and maintain technologies, facilities, equipment and a qualified workforce to win new competitions and meet the needs of our customers
|
•
|
inability to meet performance obligations under our contracts
|
•
|
unforeseen environmental costs
|
•
|
our ability to protect our intellectual property rights
|
•
|
unanticipated changes in our tax provisions or exposure to additional tax liabilities
|
•
|
our potential exposure to claims, liabilities and reputational harm relating to our former Shipbuilding business
|
Period
|
Total Number
of Shares
Purchased
|
|
Average
Price
Paid per
Share
(1)
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
|
|
Approximate
Dollar Value of
Shares that May
Yet Be Purchased
under the
Plans or Programs
($ in millions)
|
|||||||
April 2, 2016 - April 29, 2016
|
500,908
|
|
|
$
|
201.91
|
|
|
500,908
|
|
|
|
$
|
3,888
|
|
April 30, 2016 - May 27, 2016
|
663,503
|
|
|
213.21
|
|
|
663,503
|
|
|
|
3,747
|
|
||
May 28, 2016 - July 1, 2016
|
747,228
|
|
|
215.70
|
|
|
747,228
|
|
|
|
3,585
|
|
||
Total
|
1,911,639
|
|
|
$
|
211.22
|
|
|
1,911,639
|
|
|
|
$
|
3,585
|
|
(1)
|
Includes commissions paid.
|
2.1
|
Agreement and Plan of Merger among Titan II, Inc. (formerly Northrop Grumman Corporation), Northrop Grumman Corporation (formerly New P, Inc.) and Titan Merger Sub Inc., dated March 29, 2011 (incorporated by reference to Exhibit 10.1 to Form 8-K filed April 4, 2011, File No. 001-16411)
|
|
|
2.2
|
Separation and Distribution Agreement dated as of March 29, 2011, among Titan II, Inc. (formerly Northrop Grumman Corporation), Northrop Grumman Corporation (formerly New P, Inc.), Huntington Ingalls Industries, Inc., Northrop Grumman Shipbuilding, Inc. and Northrop Grumman Systems Corporation (incorporated by reference to Exhibit 10.2 to Form 8-K filed April 4, 2011, File No. 001-16411)
|
|
|
*+10.1
|
Non-Employee Director Compensation Term Sheet, effective May 18, 2016
|
|
|
*12(a)
|
Computation of Ratio of Earnings to Fixed Charges
|
|
|
*15
|
Letter from Independent Registered Public Accounting Firm
|
|
|
*31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Wesley G. Bush (Section 302 of the Sarbanes-Oxley Act of 2002)
|
|
|
*31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Kenneth L. Bedingfield (Section 302 of the Sarbanes-Oxley Act of 2002)
|
|
|
**32.1
|
Certification of Wesley G. Bush pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
**32.2
|
Certification of Kenneth L. Bedingfield pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
*101
|
Northrop Grumman Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings and Comprehensive Income, (ii) Condensed Consolidated Statements of Financial Position, (iii) Condensed Consolidated Statements of Cash Flows, (iv) Condensed Consolidated Statements of Changes in Shareholders’ Equity, and (v) Notes to Condensed Consolidated Financial Statements
|
+
|
Management contract or compensatory plan or arrangement
|
|
|
*
|
Filed with this report
|
|
|
**
|
Furnished with this report
|
NORTHROP GRUMMAN CORPORATION
(Registrant)
|
||
|
|
|
By:
|
|
/s/ Michael A. Hardesty
|
|
|
Michael A. Hardesty
Corporate Vice President, Controller and
Chief Accounting Officer
(Principal Accounting Officer)
|
1 Year Northrop Grumman Chart |
1 Month Northrop Grumman Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions