Northrop Grumman 2012 Annual Report Download - page 73

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NORTHROP GRUMMAN CORPORATION
-63-
Long-term debt consists of the following:
$ in millions
December 31
2012 2011
Fixed-rate notes and debentures, maturing in Interest rate
2014 3.70% $ 350 $ 350
2015 1.85% 500 500
2016 7.75% 107 107
2018 6.75% 200 200
2019 5.05% 500 500
2021 3.50% 700 700
2026 7.81% 527 527
2031 7.75% 466 466
2040 5.05% 300 300
Capital leases Various 32 37
Other Various 253 253
Total long-term debt 3,935 3,940
Less current portion 55
Long-term debt, net of current portion $3,930 $3,935
Indentures underlying long-term debt issued by the company or its subsidiaries contain various restrictions with
respect to the issuer, including one or more restrictions relating to limitations on liens, sale-leaseback arrangements,
and funded debt of subsidiaries. The majority of these fixed rate notes and debentures are subject to redemption at
the company’s discretion at any time prior to maturity in whole or in part at the principal amount plus any make-
whole premium and accrued and unpaid interest. Interest on these fixed rate notes and debentures are payable semi-
annually in arrears.
Maturities of long-term debt as of December 31, 2012, are as follows:
$ in millions
Year Ending December 31
2013 $ 5
2014 353
2015 502
2016 110
2017 3
Thereafter 2,951
Total principal payments 3,924
Unamortized premium on long-term debt, net of discount 11
Total long-term debt $3,935
The premium on long-term debt primarily represents non-cash fair market value adjustments resulting from
acquisitions, which are amortized over the life of the related debt.
11. INVESTIGATIONS, CLAIMS AND LITIGATION
Litigation
The company is one of several defendants in litigation brought by the Orange County Water District in Orange
County Superior Court in California on December 17, 2004, for alleged contribution to volatile organic chemical
contamination of the County's shallow groundwater. The lawsuit includes counts against the defendants for violation
of the Orange County Water District Act, the California Super Fund Act, negligence, nuisance, trespass and
declaratory relief. Among other things, the lawsuit seeks unspecified damages for the cost of remediation, payment
of attorney fees and costs, and punitive damages. Trial on the statutory claims (those based on the Orange County
Water District Act, the California Super Fund Act and declaratory relief) concluded on September 25, 2012. On