Northrop Grumman 2009 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2009 Northrop Grumman annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

The following table presents funded and unfunded backlog by segment at December 31, 2009, and 2008:
$ in millions Funded Unfunded
Total
Backlog Funded Unfunded
Total
Backlog
2009 2008
Aerospace Systems $ 8,320 $16,063 $24,383 $ 7,648 $22,883 $30,531
Electronic Systems 7,591 2,784 10,375 8,391 2,124 10,515
Information Systems 4,319 4,508 8,827 4,480 3,865 8,345
Shipbuilding 11,294 9,151 20,445 14,205 8,148 22,353
Technical Services 2,352 2,804 5,156 1,840 2,831 4,671
Total backlog $33,876 $35,310 $69,186 $36,564 $39,851 $76,415
Backlog is converted into the following years’ sales as costs are incurred or deliveries are made. Approximately
37 percent of the $69.2 billion total backlog at December 31, 2009, is expected to be converted into sales in
2010. Total U.S. Government orders, including those made on behalf of foreign governments, comprised
93 percent of the total backlog at the end of 2009. Total foreign customer orders accounted for 5 percent of the
total backlog at the end of 2009. Domestic commercial backlog represented 2 percent of total backlog at the end
of 2009.
Backlog Adjustments
In 2009, the change in backlog includes a decrease of $5.8 billion for the Kinetic Energy Interceptor program
termination for convenience, and the DDG 1000 program restructure.
Additionally, total backlog for both years have been adjusted by $1.6 billion for the divestiture of TASC, Inc.
Awards
2009 – The value of new contract awards during the year ended December 31, 2009, was approximately
$32.3 billion. Significant new awards during this period include a contract valued up to $2.4 billion for the USS
Theodore Roosevelt RCOH, $1.2 billion for the F-35 LRIP program, $1.2 billion for the Global Hawk HALE
program, $1 billion for the B-2 program, up to $635 million for engineering, design and modernization support
of new construction, operational, and decommissioning submarines, $485 million for the Nevada Test Site
program, $484 million for the E2-D LRIP program, $437 million for the Integrated Battle Command System
program, $403 million for the SBIRS follow on production program, $385 million for the Saudi Arabian
National Guard Modernization and Training program, $374 million for the Gerald R. Ford aircraft carrier,
$360 million for the BACN program, $296 million to finalize the development of the Distributed Common
Ground System-Army (DCGS-A), $286 million for the LAIRCM IDIQ, and various restricted awards.
2008 – The value of new contract awards during the year ended December 31, 2008, was approximately
$48.3 billion. Significant new awards during this period include $5.6 billion for the Virginia-class submarine
program, $5.1 billion for the Gerald R. Ford (CVN 78) aircraft carrier, $1.4 billion for the DDG 1000 Zumwalt-
class destroyer, $1.2 billion for the BAMS Unmanned Aircraft System program, $402 million for the VIS IDIQ,
$385 million for the ICBM program, and various restricted programs.
LIQUIDITY AND CAPITAL RESOURCES
We endeavor to ensure the most efficient conversion of operating results into cash for deployment in growing
our businesses and maximizing shareholder value. We actively manage our capital resources through working
capital improvements, capital expenditures, strategic business acquisitions and divestitures, debt repayments,
required and voluntary pension contributions, and returning cash to our shareholders through dividend payments
and repurchases of common stock.
-47-
NORTHROP GRUMMAN CORPORATION
eBP - v54508-i003_a.pdf - Page 51 of 124 - March 11, 2010 - 20:02:39