Northrop Grumman 2009 Annual Report Download - page 20

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Our success in the competitive defense industry depends upon our ability to develop and market our products
and services, as well as our ability to provide the people, technologies, facilities, equipment, and financial capacity
needed to deliver those products and services with maximum efficiency. We must continue to maintain sources
for raw materials, fabricated parts, electronic components, and major subassemblies. In this manufacturing and
systems integration environment, effective oversight of subcontractors and suppliers is as vital to success as
managing internal operations.
Similarly, there is intense competition among many companies in the information and services markets, which
are generally more labor intensive with competitive margin rates over contract periods of shorter duration.
Competitors in the information and services markets include the defense industry participants mentioned above
as well as many other large and small entities with expertise in various specialized areas. Our ability to
successfully compete in the information and services markets depends on a number of factors; most important is
the capability to deploy skilled professionals, many requiring security clearances, at competitive prices across the
diverse spectrum of these markets. Accordingly, we have implemented various workforce initiatives to ensure our
success in attracting, developing and retaining sufficient resources to maintain or improve our competitive
position within these markets.
EXECUTIVE OFFICERS
See Part III, Item 10, for information about our executive officers.
AVAILABLE INFORMATION
Throughout this Form 10-K, we incorporate by reference information from parts of other documents filed with
the Securities and Exchange Commission (SEC). The SEC allows us to disclose important information by
referring to it in this manner, and you should review this information in addition to the information contained
in this report.
Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy
statement for the annual shareholders’ meeting, as well as any amendments to those reports, are available free of
charge through our web site as soon as reasonably practicable after we file them with the SEC. You can learn
more about us by reviewing our SEC filings in the investor relations page on our web site at
www.northropgrumman.com.
The SEC also maintains a web site at www.sec.gov that contains reports, proxy statements and other information
about SEC registrants, including Northrop Grumman. You may also obtain these materials at the SEC’s Public
Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information on the operation
of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
Item 1A. Risk Factors
Our consolidated financial position, results of operations and cash flows are subject to various risks, many of
which are not exclusively within our control, that may cause actual performance to differ materially from
historical or projected future performance. We urge you to carefully consider the risk factors described below in
evaluating the information contained in this report.
쐍We depend heavily on a single customer, the U.S. Government, for a substantial portion of our business,
including programs subject to security classification restrictions on information, and changes affecting this
customer’s capacity to do business with us could have a material adverse effect on us or our prospects.
Approximately 92 percent of our revenues during 2009 were derived from products and services ultimately
sold to the U.S. Government (which includes Foreign Military Sales). We are a supplier, either directly or as
a subcontractor or team member, to the U.S. Government and its agencies. These contracts are subject to the
respective customers’ political and budgetary constraints and processes, changes in customers’ short-range and
long-range strategic plans, the timing of contract awards, significant changes in contract scheduling, intense
-10-
NORTHROP GRUMMAN CORPORATION
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