Northrop Grumman 2010 Annual Report Download - page 59

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The following table presents funded and unfunded backlog by segment at December 31, 2010, and 2009:
$ in millions Funded Unfunded
Total
Backlog Funded Unfunded
Total
Backlog
2010 2009
Aerospace Systems $ 9,185 $11,683 $20,868 $ 8,320 $16,063 $24,383
Electronic Systems 8,093 2,054 10,147 7,591 2,784 10,375
Information Systems 4,711 5,879 10,590 4,319 4,508 8,827
Shipbuilding 9,569 7,772 17,341 11,294 9,151 20,445
Technical Services 2,763 2,474 5,237 2,352 2,804 5,156
Total Backlog $34,321 $29,862 $64,183 $33,876 $35,310 $69,186
Backlog is converted into the following years’ sales as costs are incurred or deliveries are made. Approximately
48 percent of the $64.2 billion total backlog at December 31, 2010, is expected to be converted into sales in
2011. Total U.S. Government orders, including those made on behalf of foreign governments, comprised
91 percent of the total backlog at the end of 2010. Total foreign customer orders accounted for 5 percent of the
total backlog at the end of 2010. Domestic commercial backlog represented 4 percent of total backlog at the end
of 2010.
Backlog Adjustments
2010 – A $1.1 billion reduction in backlog was recorded in 2010 as a result of the restructure of the NPOESS
program at our Aerospace Systems segment.
Backlog was also impacted in 2010 by an agreement we reached with the Commonwealth of Virginia related to
the VITA contract. The agreement defined minimum revenue amounts for the remaining years under the base
contract and extended the contract for three additional years through 2019. We recorded a favorable backlog
adjustment of $824 million for the definitization of the base contract revenues for years 2011 through 2016,
while the contract extension and 2010 portion of the base contract revenues, totaling $802 million, were
recorded as new awards in the period in our Information Systems segment.
2009 – Total backlog in 2009 reflects a negative backlog adjustment of $5.8 billion for the Kinetic Energy
Interceptor program termination for convenience at Aerospace Systems and the DDG 1000 program restructure
at Shipbuilding.
New Awards
2010 – The estimated value of contract awards included in backlog during the year ended December 31, 2010,
was $30 billion. Significant new awards during this period include $1.2 billion for the Global Hawk HALE
program, $979 million for the E-2 Hawkeye programs, $942 million for the AEHF program, $802 million for
the VITA program, $677 million for the Joint National Integration Center Research and Development contract,
$656 million for the F/A 18 Hornet Strike Fighter program, $654 million for the ICBM program, $631 million
for the B-2 Stealth Bomber programs, $579 million for the F-35 program, $565 million for the NSTec program,
$507 for the KC-10 program, $505 million for the Large Aircraft Infrared Counter-measures programs and
various restricted awards.
2009 – The estimated value of new contract awards during the year ended December 31, 2009, was
$32.3 billion. Significant new awards during this period include a contract valued up to $2.4 billion for the USS
Theodore Roosevelt RCOH, $1.2 billion for the F-35 LRIP program, $1.2 billion for the Global Hawk HALE
program, $1 billion for the B-2 program, up to $635 million for engineering, design and modernization support
of new construction, operational, and decommissioning submarines, $485 million for the Nevada Test Site
program, $484 million for the E2-D LRIP program, $437 million for the IBCS program, $403 million for the
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NORTHROP GRUMMAN CORPORATION