Northrop Grumman 2011 Annual Report Download - page 15

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NORTHROP GRUMMAN CORPORATION
subsystem MRO and modernization; supply chain management services, warehousing and inventory
transportation, field services and mobilization, sustaining engineering, maintenance, repair and overhaul supplies,
and on-going weapons maintenance and technical assistance. The division specializes in quick reaction capability
and deployed operations in support of customers. Primary customers include the DoD, as well as international
military and commercial customers.
Corporate
Our principal executive offices are located at 2980 Fairview Park Drive, Falls Church, Virginia 22042. Our
telephone number is (703) 280-2900 and our home page on the Internet is www.northropgrumman.com.
References to our website in this report are provided as a convenience and do not constitute, and should not be
viewed as, incorporation by reference of the information contained on, or available through, the website. Such
information should not be considered part of this report.
SELECTED FINANCIAL DATA AND SUMMARY SEGMENT FINANCIAL DATA
For a more complete understanding of our business, see Selected Financial Data in Part II, Item 6. For a more
complete understanding of our segment financial information, see Segment Operating Results in Part II, Item 7,
and Note 7 to the consolidated financial statements in Part II, Item 8.
CUSTOMERS AND REVENUE CONCENTRATION
Our primary customer is the U.S. Government. Revenue from the U.S. Government (which includes Foreign
Military Sales – a method to sell U.S. defense equipment, services and training to foreign governments through
the DoD) accounted for more than 90 percent of total revenues in each of 2011, 2010, and 2009. No single
product or service accounted for more than ten percent of total revenue during any period presented. See Risk
Factors in Part I, Item 1A.
PATENTS
The following table summarizes the number of patents we own or have pending as of December 31, 2011:
Owned Pending Total
U.S. patents 2,941 311 3,252
Foreign patents 2,181 517 2,698
Total 5,122 828 5,950
Patents developed while under contract with the U.S. Government may be subject to use by the U.S.
Government. We license intellectual property to, and from, third parties. We believe our ability to conduct
operations would not be materially affected by the loss of any particular intellectual property right. See Risk
Factors in Part I, Item 1A.
SEASONALITY
No material portion of our business is considered to be seasonal. Our revenue recognition timing is based on
several factors, including the timing of contract awards, the incurrence of contract costs, cost estimation, and in
some cases unit deliveries. See Critical Accounting Policies, Estimates, and Judgments – Revenue Recognition in
Part II, Item 7.
BACKLOG
Total backlog includes both funded backlog (firm orders for which funding is contractually obligated by the
customer) and unfunded backlog (firm orders for which funding is not currently contractually obligated by the
customer). Unexercised contract options and unfunded indefinite delivery indefinite quantity (IDIQ) orders
(except for authorized task orders, which are included up to the authorized value) are not included in unfunded
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