Northrop Grumman 2010 Annual Report Download - page 87

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Foreign Sales – Direct foreign sales amounted to approximately $1.6 billion, $1.6 billion, and $1.7 billion, or
4.6 percent, 4.9 percent, and 5.3 percent of total revenue for the years ended December 31, 2010, 2009, and
2008, respectively.
Discontinued Operations – The company’s discontinued operations are excluded from all of the data elements in the
following tables, except for assets by segment.
Assets – Substantially all of the company’s assets are located or maintained in the U. S.
Results of Operations By Segment
$ in millions 2010 2009 2008
Year Ended December 31
Sales and Service Revenues
Aerospace Systems $10,910 $10,419 $ 9,825
Electronic Systems 7,613 7,671 7,048
Information Systems 8,395 8,536 8,174
Shipbuilding 6,719 6,213 6,145
Technical Services 3,230 2,776 2,535
Intersegment eliminations (2,110) (1,860) (1,412)
Total sales and service revenues $34,757 $33,755 $32,315
$ in millions 2010 2009 2008
Year Ended December 31
Operating Income (Loss)
Aerospace Systems $1,256 $1,071 $ 416
Electronic Systems 1,023 969 947
Information Systems 756 624 626
Shipbuilding 325 299 (2,307)
Technical Services 206 161 144
Intersegment eliminations (240) (195) (125)
Total Segment Operating Income (Loss) 3,326 2,929 (299)
Non-segment factors affecting operating income (loss)
Unallocated corporate expenses (220) (111) (157)
Net pension adjustment (25) (311) 263
Royalty income adjustment (11) (24) (70)
Total operating income (loss) $3,070 $2,483 $ (263)
Goodwill Impairment Charge – The total segment operating loss for the year ended December 31, 2008, reflects
goodwill impairment charges of $570 million and $2,490 million, at Aerospace Systems and Shipbuilding,
respectively. The impairment charge was primarily due to adverse equity market conditions that caused a
decrease in market multiples and the company’s stock price.
Shipbuilding Earnings Charges – In 2010, the company recorded a pre-tax charge of $113 million related to the
consolidation of the company’s Gulf Coast facilities (see Note 7). In 2008, the company recorded a pre-tax
charge of $272 million for cost growth on the LHD 8 contract and an additional $54 million primarily for
schedule impacts on other ships and impairment of purchased intangibles at the Gulf Coast shipyards.
Unallocated Corporate Expenses – Unallocated corporate expenses generally include the portion of corporate
expenses not considered allowable or allocable under applicable U.S. Government Cost Accounting Standards
(CAS) regulations and the Federal Acquisition Regulation (FAR), and therefore not allocated to the segments,
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NORTHROP GRUMMAN CORPORATION