Northrop Grumman 2009 Annual Report Download - page 35

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Item 6. Selected Financial Data
The data presented in the following table is derived from the audited consolidated financial statements and other
information adjusted to reflect the effects of discontinued operations. See also Business Acquisitions and Business
Dispositions in Part II, Item 7.
Selected Financial Data
$ in millions, except per share 2009 2008 2007 2006 2005
Year Ended December 31
Sales and Service Revenues
U.S. Government $ 31,037 $ 29,320 $ 27,361 $ 25,906 $ 26,130
Other customers 2,718 2,995 2,980 2,749 2,611
Total revenues $ 33,755 $ 32,315 $ 30,341 $ 28,655 $ 28,741
Goodwill impairment $ (3,060)
Operating income (loss) $ 2,483 (263) $ 2,925 $ 2,405 $ 2,136
Earnings (loss) from continuing operations 1,573 (1,379) 1,751 1,535 1,356
Basic earnings (loss) per share, from continuing
operations $ 4.93 $ (4.12) $ 5.12 $ 4.44 $ 3.80
Diluted earnings (loss) per share, from continuing
operations 4.87 (4.12) 5.01 4.28 3.73
Cash dividends declared per common share 1.69 1.57 1.48 1.16 1.01
Year-End Financial Position
Total assets $ 30,252 $ 30,197 $ 33,373 $ 32,009 $ 34,214
Notes payable to banks and long-term debt 4,294 3,944 4,055 4,162 5,145
Total long-term obligations and preferred stock
(1)
10,580 10,828 9,235 8,622 9,399
Financial Metrics
Free cash flow
(2)
$ 1,411 $ 2,420 $ 2,072 $ 947 $ 1,811
Notes payable to banks and long-term debt as a
percentage of shareholders’ equity 33.8% 33.1% 22.9% 25.0% 30.6%
Other Information
Company-sponsored research and development
expenses $ 610 $ 564 $ 522 $ 559 $ 522
Maintenance and repairs 481 439 331 354 424
Payroll and employee benefits 14,751 13,036 12,301 11,918 11,654
Number of employees at year-end 120,700 123,600 121,700 121,400 122,800
(1) In 2008, all of the shares of preferred stock were converted or redeemed. See Preferred Stock in Part II,
Item 5 for more information.
(2) Free cash flow is a non-GAAP financial measure and is calculated as net cash provided by operations less
capital expenditures and outsourcing contract and related software costs. Outsourcing contract and related
software costs are similar to capital expenditures in that the contract costs represent incremental external costs
or certain specific internal costs that are directly related to the contract acquisition and transition/set-up.
These outsourcing contract and related software costs are deferred and expensed over the contract life. See
Liquidity and Capital Resources – Free Cash Flow in Part II, Item 7 for more information on this measure.
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NORTHROP GRUMMAN CORPORATION
eBP - v54508-i003_a.pdf - Page 29 of 124 - March 11, 2010 - 20:02:39