Northrop Grumman 2012 Annual Report Download - page 67

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NORTHROP GRUMMAN CORPORATION
-57-
Intersegment Sales and Margin
Sales between segments are recorded at values that include a hypothetical margin for the performing segment based
on that segment’s estimated margin rate for external sales. Such hypothetical margins are eliminated in
consolidation. Intersegment sales and operating income before eliminations were as follows:
Year Ended December 31
$ in millions 2012 2011 2010
Sales Operating
Income Sales Operating
Income Sales Operating
Income
Intersegment sales and operating income
Aerospace Systems $ 171 $ 20 $ 134 $ 18 $ 133 $ 13
Electronic Systems 607 110 649 131 684 118
Information Systems 682 78 687 68 623 61
Technical Services 624 50 568 41 566 39
Total $2,084 $258 $2,038 $258 $2,006 $231
Other Financial Information
December 31
$ in millions 2012 2011
Assets
Aerospace Systems $ 6,657 $ 6,525
Electronic Systems 4,551 4,705
Information Systems 6,940 7,144
Technical Services 1,313 1,352
Segment assets 19,461 19,726
Corporate 7,082 5,685
Total assets $26,543 $25,411
Corporate assets principally consist of cash and cash equivalents and deferred tax assets.
Capital Expenditures Depreciation and Amortization
$ in millions 2012 2011 2010 2012 2011 2010
Aerospace Systems $154 $184 $195 $196 $200 $237
Electronic Systems 84 121 176 139 144 150
Information Systems 40 45 37 100 121 133
Technical Services 31544 5
Corporate 50 141 172 71 75 30
Total from continuing operations $331 $492 $585 $510 $544 $555
The depreciation and amortization expense above includes amortization of purchased intangible assets, as well as
amortization of deferred and other outsourcing costs.
5. ACCOUNTS RECEIVABLE, NET
Unbilled amounts represent sales for which billings have not been presented to customers by period-end. These
amounts are usually billed and collected within one year. Progress payments are received on a number of fixed-
priced contracts. Unbilled amounts are presented net of progress payments of $5.0 billion and $6.4 billion at
December 31, 2012, and 2011, respectively.
Substantially all accounts receivable at December 31, 2012, are expected to be collected in 2013.
The company does not believe it has significant exposure to credit risk as accounts receivable and the related
unbilled amounts are primarily from contracts where the U.S. Government is the primary customer.