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NORTHROP GRUMMAN CORPORATION
PART I
Item 1. Business
HISTORY AND ORGANIZATION
History
Northrop Grumman Corporation (herein referred to as “Northrop Grumman,” the “company,” “we,” “us,” or
“our”) provides technologically advanced, innovative products, services, and integrated solutions in aerospace,
electronics, information and services to our global customers. We participate in many high-priority defense and
government services technology programs in the United States (U.S.) and abroad as a prime contractor, principal
subcontractor, partner, or preferred supplier. We conduct most of our business with the U.S. Government,
principally the Department of Defense (DoD) and intelligence community. We also conduct business with local,
state, and foreign governments and domestic and international commercial customers. For a discussion of risks
associated with our operations, see Risk Factors in Part I, Item 1A.
The company was originally formed in 1939 as Northrop Corporation and was later reincorporated in Delaware in
1985. Some of the most notable acquisitions during the last two decades included the acquisition of Grumman
Corporation (Grumman) in 1994, after which time the company was renamed Northrop Grumman Corporation.
Grumman was a premier military aircraft systems integrator and builder of the Lunar Module that first delivered
men to the surface of the moon. In 1996, we acquired the defense and electronics businesses of Westinghouse
Electric Corporation (Westinghouse), which now forms the nucleus of the Electronics Systems segment.
Westinghouse was a world leader in the development and production of sophisticated radar and other electronic
systems for the nation’s defense, civil aviation, and other international and domestic applications. In 2001, we
acquired Litton Industries, a global electronics and information technology enterprise, and one of the nation’s
leading full-service design, engineering, construction, and life cycle supporters of major surface ships for the
United States (U.S.) Navy, U.S. Coast Guard, and international navies. Also in 2001, we acquired Newport News
Shipbuilding, the nation’s sole designer, builder and refueler of nuclear-powered aircraft carriers and one of only
two companies designing and building nuclear-powered submarines. In 2002, we acquired TRW Inc. (TRW), a
leading developer of military and civil space systems and satellite payloads, as well as a leading global integrator of
complex, mission-enabling systems and services. Other more recent acquisitions included the acquisition of Integic
Corporation (2005), an information technology provider specializing in enterprise health and business process
management solutions, and Essex Corporation (2007), a signal processing product and services provider to U.S.
intelligence and defense customers.
Spin-off of Shipbuilding Business
Effective as of March 31, 2011, the company completed the spin-off to its shareholders of Huntington Ingalls
Industries, Inc. (HII). HII operates our former Shipbuilding business. The spin-off was the culmination of the
company’s decision to explore strategic alternatives for Shipbuilding, as it was determined to be in the best
interests of shareholders, customers, and employees by allowing the company and Shipbuilding to pursue more
effectively their respective opportunities to maximize value. As a result of the spin-off, assets, liabilities and results
of operations for the former Shipbuilding segment have been reclassified as discontinued operations for all periods
presented. See Note 6 to our consolidated financial statements in Part II, Item 8 for further information.
Organization
From time to time, we acquire or dispose of businesses, and realign contracts, programs or business areas among
and within our operating segments that possess similar customers, expertise, and capabilities. Internal realignments
are designed to more fully leverage existing capabilities and enhance development and delivery of products and
services. The operating results for all periods presented have been revised to reflect these changes made through
December 31, 2011.
We are currently aligned into four operating segments: Aerospace Systems, Electronic Systems, Information
Systems, and Technical Services. See Note 7 to our consolidated financial statements in Part II, Item 8.
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