Northrop Grumman 2009 Annual Report Download - page 12

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In January 2009, we streamlined our organizational structure by reducing the number of operating segments from
seven to five. The five segments are Aerospace Systems, which combines the former Integrated Systems and
Space Technology segments; Electronic Systems; Information Systems, which combines the former Information
Technology and Mission Systems segments; Shipbuilding; and Technical Services. Creation of the Aerospace
Systems and Information Systems segments was intended to strengthen our alignment with customers, improve
our ability to execute on programs and win new business, and enhance cost competitiveness.
During the first quarter of 2009, we realigned certain logistics, services, and technical support programs and
transferred assets from the Information Systems and Electronic Systems segments to the Technical Services
segment. This realignment was intended to strengthen our core capability in aircraft and electronics maintenance,
repair and overhaul, life cycle optimization, and training and simulation services.
During the first quarter of 2009, we transferred certain optics and laser programs from the Information Systems
segment to the Aerospace Systems segment. The prior year sales and segment operating income were not
reclassified to reflect this business transfer as the operating results of this business were not considered material.
In December 2009, we sold our Advisory Services Division (ASD), for $1.65 billion in cash to an investor group
led by General Atlantic LLC and affiliates of Kohlberg Kravis Roberts & Co. L.P., and recognized a gain of
$15 million, net of taxes. ASD was a business unit comprised of the assets and liabilities of TASC, Inc., its
wholly-owned subsidiary TASC Services Corporation, and certain contracts carved out from other businesses also
in our Information Systems segment that provide systems engineering technical assistance (SETA) and other
analysis and advisory services.
In January 2008, we realigned the Newport News and Ship Systems businesses into a single operating segment
called Northrop Grumman Shipbuilding. Previously, these businesses were separate operating segments which
were aggregated into a single reporting segment for financial reporting purposes. In addition, we transferred
certain Electronic Systems businesses to the former Mission Systems segment during the first quarter of 2008.
During the second quarter of 2008, we transferred certain programs and assets from the missiles business in the
Information Systems segment to the Aerospace Systems segment. This transfer allowed Information Systems to
focus on the rapidly growing command, control, communications, computing, intelligence, surveillance, and
reconnaissance (C4ISR) business. The missiles business became an integrated element of our Aerospace business
growth strategy.
AEROSPACE SYSTEMS
Aerospace Systems, headquartered in Redondo Beach, California, is a premier developer, integrator, producer
and supporter of manned and unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and
other systems and subsystems critical to maintaining the nation’s security and leadership in technology. Aerospace
Systems’ customers, primarily government agencies, use these systems in many different mission areas including
intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic
warfare; missile defense; earth observation; space science; and space exploration. The segment consists of four
business areas: Strike & Surveillance Systems, Space Systems, Battle Management & Engagement Systems, and
Advanced Programs & Technology.
Strike & Surveillance Systems – designs, develops, manufactures and integrates tactical and long-range strike aircraft
systems, unmanned systems, and missile systems. These include the RQ-4 Global Hawk unmanned
reconnaissance system, B-2 stealth bomber, F-35 Lightning II joint strike fighter, F/A-18 Super Hornet strike
fighter, Minuteman III Intercontinental Ballistic Missile (ICBM), MQ-8B Fire Scout unmanned aircraft system,
Multi-Platform Radar Technology Insertion Program (MP-RTIP), and aerial targets.
Space Systems – designs, develops, manufactures, and integrates spacecraft systems, subsystems and electronic and
communications payloads. Major programs include the National Polar-orbiting Operational Environmental
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NORTHROP GRUMMAN CORPORATION
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