Northrop Grumman 2011 Annual Report Download - page 36

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NORTHROP GRUMMAN CORPORATION
Item 6. Selected Financial Data
The data presented in the following table is derived from the audited consolidated financial statements and other
information adjusted to reflect the effects of discontinued operations. See also Business Dispositions in Part II,
Item 7.
Selected Financial Data
Year Ended December 31
$ in millions, except per share amounts 2011 2010 2009 2008 2007
Sales and Service Revenues
U.S. Government $23,905 $25,507 $24,955 $23,274 $21,687
Other customers 2,507 2,636 2,695 2,977 2,957
Total revenues $26,412 $28,143 $27,650 $26,251 $24,644
Operating income $ 3,276 $ 2,827 $ 2,274 $ 2,076 $ 2,464
Earnings from continuing operations 2,086 1,904 1,434 1,018 1,448
Basic earnings per share, from continuing operations $ 7.54 $ 6.41 $ 4.49 $ 3.04 $ 4.24
Diluted earnings per share, from continuing operations 7.41 6.32 4.44 2.98 4.09
Cash dividends declared per common share 1.97 1.84 1.69 1.57 1.48
Year-End Financial Position
Total assets(1) $25,411 $31,410 $30,297 $30,077 $33,252
Notes payable to banks and long-term debt 3,948 4,724 4,011 3,661 3,772
Total long-term obligations and preferred stock(2) 8,940 7,947 8,959 8,926 7,278
Financial Metrics
Cash provided by continuing operations $ 2,347 $ 2,056 $ 1,995 $ 2,705 $ 2,050
Free cash flow from continuing operations(3) 1,855 1,471 1,454 2,132 1,478
Other Information
Company-sponsored research and development expenses $ 543 $ 580 $ 588 $ 543 $ 502
Maintenance and repairs 364 369 371 314 216
Payroll and employee benefits 10,275 10,861 11,119 10,127 9,616
Number of employees at year-end 72,500 79,600 81,800 81,418 79,818
(1) Total assets as of December 31, 2007 – 2010 have been reduced by $121 million as a result of the correction of
deferred tax assets described in Note 10 in Part II, Item 8.
(2) In 2008, all of the outstanding shares of preferred stock were converted or redeemed. Total long-term
obligations includes the long-term portions of debt, pension and post-retirement plan liabilities, environmental
liabilities, deferred compensation and other long-term obligations.
(3) Free cash flow from continuing operations is a non-GAAP financial measure and is calculated as cash provided
by continuing operations less capital expenditures and outsourcing contract and related software costs.
Outsourcing contract and related software costs are similar to capital expenditures in that the contract costs
represent incremental external costs or certain specific internal costs that are directly related to the contract
acquisition and transition/set-up. These outsourcing contract and related software costs are deferred and
expensed over the contract’s period of performance. See Liquidity and Capital Resources – Free Cash Flow
from Continuing Operations in Part II, Item 7 for more information on this measure.
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