Northrop Grumman 2013 Annual Report Download - page 72

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NORTHROP GRUMMAN CORPORATION
-62-
The changes in the carrying amounts of goodwill for the years ended December 31, 2013 and 2012, were as follows:
$ in millions Aerospace
Systems Electronic
Systems Information
Systems Technical
Services Total
Balance as of December 31, 2011 $3,801 $2,400 $5,248 $925 $12,374
Businesses acquired, sold and other (43) 10 39 51 57
Balance as of December 31, 2012 $3,758 $2,410 $5,287 $976 $12,431
Businesses acquired — — 7 — 7
Balance as of December 31, 2013 $3,758 $2,410 $5,294 $976 $12,438
Purchased Intangible Assets
Net contract, program, and other intangible assets were comprised of the following:
December 31
$ in millions 2013 2012
Gross contract, program and other intangible assets $ 1,812 $ 1,819
Less accumulated amortization (1,708)(1,682)
Net contract, program and other intangible assets $ 104 $ 137
Amortization expense for 2013, 2012 and 2011, was $26 million, $36 million and $37 million, respectively. The
company’s purchased intangible assets are being amortized on a straight-line basis over an aggregate weighted-
average period of 21 years and are included in other non-current assets in the consolidated statements of financial
position. As of December 31, 2013, the expected future amortization of purchased intangibles for each of the next
five years is as follows:
$ in millions
Year Ending December 31
2014 $20
2015 18
2016 12
2017 10
2018 9
9. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the fair value information for those assets and liabilities measured at fair value on a
recurring basis:
December 31, 2013 December 31, 2012
$ in millions Carrying
Value Fair
Value Carrying
Value Fair
Value
Financial Assets (Liabilities)
Marketable securities
Trading $ 308 $ 308 $ 259 $ 259
Available-for-sale 223 3
Derivatives (2)(2)(1)(1)
Long-term debt, including current portion (5,930)(6,227)(3,935)(4,834)
There were no transfers of financial instruments between the three levels of fair value hierarchy during the years
ended December 31, 2013 and 2012.
The carrying value of cash and cash equivalents approximate fair value.