Northrop Grumman 2010 Annual Report Download - page 52

of 323.3 million for 2009 and weighted average basic shares outstanding of 334.5 million for 2008. For the year
ended December 31, 2008, the potential dilutive effect of 7.1 million shares from stock options, stock awards,
and the mandatorily redeemable preferred stock were excluded from the computation of weighted average shares
outstanding as the shares would have had an anti-dilutive effect. The goodwill impairment charge of $3.1 billion
at Aerospace Systems and Shipbuilding reduced our 2008 diluted earnings per share from continuing operations
by $9.15 per share.
Net Cash Provided by Operating Activities
2010 – Net cash provided by operating activities in 2010 was $2.5 billion as compared with $2.1 billion in 2009
and reflects improved cash collections from our customers and lower tax payments, primarily due to $508 million
taxes paid in 2009 related to the sale of ASD. In 2010, we contributed $894 million to our pension plans, of
which $830 million was voluntarily pre-funded, as compared with $858 million in 2009, of which $800 million
was voluntarily pre-funded. Income taxes paid, net of refunds, was $1.1 billion in 2010, as compared with
$1.3 billion in 2009.
Net cash provided by operating activities for 2010 included $94 million of federal and state income tax refunds
and $11 million of interest income received.
2009 – Net cash provided by operating activities in 2009 was $2.1 billion compared with $3.2 billion in 2008
and reflects higher pension plan contributions and income tax payments. In 2009, we contributed $858 million
to our pension plans, of which $800 million was voluntarily pre-funded, as compared with $320 million in 2008,
of which $200 million was voluntarily pre-funded. Income taxes paid, net of refunds, was $1.3 billion in 2009, as
compared with $719 million in 2008. Income taxes paid in 2009 included $508 million resulting from the sale of
ASD.
Net cash provided by operating activities for 2009 included $171 million of federal and state income tax refunds
and $11 million of interest income.
SEGMENT OPERATING RESULTS
Basis of Presentation
We are aligned into five reportable segments: Aerospace Systems, Electronic Systems, Information Systems,
Shipbuilding and Technical Services. See Note 8 in Part II, Item 8 for more information about our segments.
In January 2010, we transferred our internal information technology services unit from the Information Systems
segment to our corporate shared services group. The intersegment sales and operating income for this unit that
were previously recognized in the Information Systems segment are immaterial and have been eliminated for the
years presented.
$ in millions 2010 2009 2008
Year Ended December 31
Sales and Service Revenues
Aerospace Systems $10,910 $10,419 $ 9,825
Electronic Systems 7,613 7,671 7,048
Information Systems 8,395 8,536 8,174
Shipbuilding 6,719 6,213 6,145
Technical Services 3,230 2,776 2,535
Intersegment eliminations (2,110) (1,860) (1,412)
Total sales and service revenues $34,757 $33,755 $32,315
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NORTHROP GRUMMAN CORPORATION