Northrop Grumman 2010 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2010 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

2009, totaled $3.1 billion of which $570 million and $2,490 million were at the Aerospace Systems and
Shipbuilding segments, respectively.
The changes in the carrying amounts of goodwill during 2009 were as follows:
$ in millions
Aerospace
Systems
Electronic
Systems
Information
Systems Shipbuilding
Technical
Services Total
Balance as of January 1, 2009 $3,748 $2,428 $5,390 $ 1,141 $802 $13,509
Goodwill transferred due to
segment realignment 41 (26) (138) 123
Goodwill acquired 5 5
Other 7 (4) 3
Balance as of December 31,
2009 and 2010 $3,801 $2,402 $5,248 $1,141 $925 $13,517
Segment Realignments – As discussed in Note 8, in January 2009, the company realigned certain logistics, services,
and technical support programs and transferred assets from the Information Systems and Electronic Systems
segments to the Technical Services segment. As a result of this realignment, goodwill of approximately
$123 million was reallocated among these segments. Additionally during the first quarter of 2009, the company
transferred certain optics and laser programs from the Information Systems segment to the Aerospace Systems
segment, resulting in the reallocation of goodwill of approximately $41 million.
Purchased Intangible Assets
The table below summarizes the company’s aggregate purchased intangible assets:
$ in millions
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
December 31, 2010 December 31, 2009
Contract and program
intangibles $2,644 $(1,883) $761 $2,644 $(1,793) $851
Other purchased
intangibles 100 (82) 18 100 (78) 22
Total $2,744 $(1,965) $779 $2,744 $(1,871) $873
The company’s purchased intangible assets are subject to amortization and are being amortized on a straight-line
basis over an aggregate weighted-average period of 33 years. Aggregate amortization expense for 2010, 2009, and
2008, was $94 million, $104 million, and $136 million, respectively. The 2008 amount includes a $19 million
impairment of purchased intangibles recorded in the first quarter of 2008 associated with the LHD 8 and other
Gulf Coast shipbuilding programs.
The table below shows expected amortization for purchased intangibles as of December 31, 2010, for each of the
next five years:
$ in millions
Year ending December 31
2011 $57
2012 56
2013 48
2014 36
2015 34
-84-
NORTHROP GRUMMAN CORPORATION