Northrop Grumman 2013 Annual Report Download - page 17

NORTHROP GRUMMAN CORPORATION
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The following table summarizes sales for the year ended December 31, 2013, recognized by contract type and
customer:
($ in millions) U.S.
Government Other Customers(1) Total Percent of Total
Cost-type contracts $12,523 $ 476 $12,999 53%
Fixed-price contracts 8,755 2,907 11,662 47%
Total sales $21,278 $3,383 $24,661 100%
(1) Other customer sales include foreign military sales.
Profit margins may vary materially depending on, among other things, the negotiated contract fee arrangements, the
achievement of performance objectives and the stage of performance at which the right to receive fees, particularly
under incentive and award fee contracts, is finally determined.
We monitor our policies and procedures with respect to our contracts on a regular basis to enhance consistent
application under similar terms and conditions, as well as compliance with all applicable government regulations
and laws. In addition, costs incurred and allocated to contracts with the U.S. Government are routinely audited by
the Defense Contract Audit Agency.
Environmental
Our manufacturing operations are subject to and affected by federal, state, foreign, and local laws and regulations
relating to the protection of the environment. The estimated cost to complete remediation is accrued when it is
probable that the company will incur costs to address environmental impacts and the costs are estimable. To assess
the potential impact on the company’s financial statements, management estimates the range of reasonably possible
remediation costs that could be incurred by the company, taking into account the facts currently available to the
company regarding each site, as well as the current state of technology and prior experience. These estimates are
reviewed periodically and adjusted to reflect changes in facts and circumstances. See Risk Factors in Part I, Item 1A,
as well as Note 12 to the consolidated financial statements in Part II, Item 8.
In 2009, we established a goal of reducing our greenhouse gas emissions over a five-year period through
December 31, 2014. In 2010, we established goals for water usage and solid waste generation. We have exceeded
our goal for the reduction of greenhouse gas emissions and are on track to achieve our goals on water usage and
solid waste generation.
We have incurred and expect to continue to incur capital and operating costs to comply with applicable
environmental laws and regulations and satisfy green initiatives, including our goals. At this time, these costs have
not had, and we do not expect that these costs will have, a material adverse effect on our consolidated financial
position, annual results of operations and/or cash flows.
EXECUTIVE OFFICERS
See Part III, Item 10, for information about our executive officers.
AVAILABLE INFORMATION
Our principal executive offices are located at 2980 Fairview Park Drive, Falls Church, Virginia 22042. Our
telephone number is [phone] and our home page on the Internet is www.northropgrumman.com.
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy
statement for the annual shareholders’ meeting, as well as any amendments to those reports, are available free of
charge through our Web site as soon as reasonably practicable after we file them with the Securities and Exchange
Commission (SEC). You can learn more about us by reviewing our SEC filings on the investor relations page of our
Web site.
The SEC also maintains a Web site at www.sec.gov that contains reports, proxy statements and other information
about SEC registrants, including Northrop Grumman Corporation. You may also obtain these materials at the SEC’s
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information on the operation
of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
References to our Web site and the SEC’s Web site 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