Northrop Grumman 2014 Annual Report Download - page 10

NORTHROP GRUMMAN CORPORATION
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PART I
Item 1. Business
HISTORY AND ORGANIZATION
History
Northrop Grumman Corporation (herein referred to as “Northrop Grumman,” the “company,” “we,” “us,” or “our”)
is a leading global security company. We offer a broad portfolio of capabilities and technologies that enable us to
deliver innovative products, systems and solutions for applications that range from undersea to outer space and into
cyberspace. We provide products, systems and solutions in unmanned systems; cyber; command, control,
communications and computers (C4), intelligence, surveillance, and reconnaissance (C4ISR); strike aircraft; and
logistics and modernization to government and commercial customers worldwide through our four segments:
Aerospace Systems, Electronic Systems, Information Systems and Technical Services. We participate in many high-
priority defense and government programs in the United States (U.S.) and abroad. We conduct most of our business
with the U.S. Government, principally the Department of Defense (DoD) and intelligence community. We also
conduct business with foreign, state and local governments and domestic and international commercial customers.
For a discussion of risks associated with our operations, see Risk Factors in Part I, Item 1A.
The company originally was formed in Hawthorne, California in 1939, as Northrop Aircraft Incorporated and was
reincorporated in Delaware in 1985, as Northrop Corporation. Northrop Aircraft Incorporated was a principal
developer of flying wing technology, including the B-2 Stealth Bomber. The company developed into one of the
largest defense contractors in the world through a series of acquisitions, as well as organic growth. In 1994, we
acquired Grumman Corporation (Grumman), after which time the company was renamed Northrop Grumman
Corporation. Grumman was a premier military aircraft systems integrator and builder of the Lunar Module that first
delivered men to the surface of the moon. In 1996, we acquired the defense and electronics businesses of
Westinghouse Electric Corporation, a world leader in the development and production of sophisticated radar and
other electronic systems for the nation’s defense, civil aviation, and other international and domestic applications. In
2001, we acquired Litton Industries, a global electronics and information technology company, and one of the
nation's leading full service shipbuilders. In 2002, we acquired TRW Inc., a leading developer of military and civil
space systems and satellite payloads, as well as a leading global integrator of complex, mission-enabling systems
and services. In 2011, the company completed the spin-off to its shareholders of Huntington Ingalls Industries, Inc.
(HII). HII operates our former Shipbuilding business, which was acquired in 2001, through the acquisitions of
Newport News Shipbuilding and Litton Industries.
Organization
From time to time, we acquire or dispose of businesses and realign contracts, programs or business areas among and
within our operating segments. Internal realignments are designed to more fully leverage existing capabilities and
enhance development and delivery of products and services. The operating results for all periods presented have
been revised to reflect these changes made through December 31, 2014. We are currently aligned into four operating
segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. See Note 3 to our
consolidated financial statements in Part II, Item 8 for further information.
AEROSPACE SYSTEMS
Aerospace Systems, headquartered in Redondo Beach, California, is a leader in the design, development, integration
and production of manned aircraft, unmanned systems, spacecraft, high-energy laser systems, microelectronics and
other systems and subsystems. Aerospace Systems' customers, primarily U.S. Government agencies, use these
systems in mission areas including intelligence, surveillance and reconnaissance (ISR), communications, battle
management, strike operations, electronic warfare, earth observation, satellite communications, space science and
space exploration. The segment consists of four business areas: Unmanned Systems, Military Aircraft Systems,
Space Systems, and Strategic Programs & Technology.
Unmanned Systems - designs, develops, manufactures, and integrates ISR unmanned systems for tactical and
strategic missions. Key ISR programs include the RQ-4 Global Hawk reconnaissance system, a proven high-altitude
long-endurance system providing near real-time high resolution imagery of large geographical areas; the Triton
aircraft system providing real-time ISR over vast ocean and coastal regions; the trans-Atlantic North Atlantic Treaty
Organization (NATO) Alliance Ground Surveillance (AGS) system for multinational theater operations,
peacekeeping missions, and disaster relief efforts; the Fire Scout aircraft system providing unprecedented situational
awareness and precision targeting support; the Navy Unmanned Combat Air System demonstrating an unmanned