Northrop Grumman 2010 Annual Report Download - page 48

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CONSOLIDATED OPERATING RESULTS
Selected financial highlights are presented in the table below.
$ in millions, except per share 2010 2009 2008
Year Ended December 31
Sales and service revenues $ 34,757 $ 33,755 $ 32,315
Cost of sales and service revenues (28,609) (28,130) (26,375)
General and administrative expenses (3,078) (3,142) (3,143)
Goodwill impairment (3,060)
Operating income (loss) 3,070 2,483 (263)
Interest expense (281) (281) (295)
Charge on debt redemption (231)
Other, net 37 64 38
Federal and foreign income taxes (557) (693) (859)
Diluted earnings (loss) per share from continuing operations 6.77 4.87 (4.12)
Net cash provided by operating activities 2,453 2,133 3,211
Sales and Service Revenues
Sales and service revenues consist of the following:
$ in millions 2010 2009 2008
Year Ended December 31
Product sales $21,776 $20,914 $19,634
Service revenues 12,981 12,841 12,681
Sales and service revenues $34,757 $33,755 $32,315
2010 – Sales and service revenues increased $1 billion, or 3 percent, over 2009. The increase is due to
$862 million higher product sales and $140 million higher service revenues. The 4 percent increase in product
sales reflects sales growth in Aerospace Systems and Shipbuilding. The 1 percent increase in service revenues
reflects sales growth at Technical Services.
2009 – Sales and service revenues increased $1.4 billion, or 4 percent, over 2008. The increase is due to
$1.3 billion higher product sales and $160 million higher service revenues. The 7 percent increase in product
sales reflects sales growth in Aerospace Systems, Electronic Systems and Shipbuilding. The 1 percent increase in
service revenues reflects sales growth in Information Systems and Technical Services.
See the Segment Operating Results section below for further information.
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NORTHROP GRUMMAN CORPORATION