Northrop Grumman 2014 Annual Report Download - page 13

NORTHROP GRUMMAN CORPORATION
-4-
Key programs for the Information Systems segment include the Joint National Integration Center Research and
Development (JRDC) contract, which supports the technical infrastructure, modeling and simulation, test and
evaluation, and management of the Missile Defense Agency network at multiple sites; the Battlefield Airborne
Communications Node (BACN), a high-altitude, airborne communications and information gateway system that
provides situational awareness and C2 coordination between warfighters and commanders; the Communications,
Navigation and Identification (CNI) integrated avionics system for the F-35 Joint Strike Fighter based on software-
defined technology with advanced capabilities for interoperability; and the Integrated Air and Missile Defense Battle
Command System (IBCS), a C2 system that delivers a single, unambiguous view of the battlespace with enhanced
aircraft and missile tracking improving the ability of combatant commanders and air defenders to make critical
decisions within seconds.
TECHNICAL SERVICES
Technical Services, headquartered in Herndon, Virginia, is a leader in innovative and affordable logistics,
modernization and sustainment support and also provides an array of other advanced technology and engineering
services, including space, missile defense, nuclear security, training and simulation. The segment consists of two
business areas: Integrated Logistics and Modernization; and Mission Solutions and Readiness.
Integrated Logistics and Modernization - provides complete life cycle support and weapon system sustainment and
modernization products and services, and provides direct support to warfighters while delivering aircraft and
subsystem maintenance, repair and overhaul (MRO). Competencies include aircraft and electronics sustaining
engineering, supply chain management services, manned and unmanned weapons systems deployed logistics
support, field services and on-going maintenance and technical assistance, and delivering rapid response in support
of global customers. Key programs include KC-10 Contractor Logistics Support (CLS), which provides total
weapons systems CLS to the Air Force for the entire fleet of 59 KC-10 aircraft; Intercontinental Ballistic Missile
(ICBM) Systems, which provides systems engineering and integration for the land-based leg of the U.S. nuclear
deterrent force; UK Airborne Warning and Control System (AWACS), which provides through life management of
the UK Royal Air Force fleet of E-3D AWACS aircraft; KC-30A Multi-Role Tanker Transport (MRTT) which
provides through life support for the Royal Australian Air Force (RAAF) KC-30A air to air refueling aircraft; and
AAQ24 LAIRCM, which provides repair, testing, component spare procurement, logistics, and data collection
related to directional infrared counter measures systems used on multiple fixed and rotary wing aircraft.
Mission Solutions and Readiness - provides realistic and comprehensive training through live, virtual and
constructive domains, innovative and diverse training applications ranging from battle command to professional
military education, sustainment and modernization of tactical vehicles, high technology and engineering services in
the areas of nuclear security, space and launch services, civil engineering and military range-sensor-instrumentation
operations. Key programs include Ministry of the National Guard Training Support (MNG TSC), through our
interest in a joint venture for which we consolidate the financial results, which provides equipment fielding, training
and maintenance, simulator training and operations, tactical exercise development, logistics and operations support
and English language training to the Saudi Arabian National Guard; the Mission Command Training Program
(MCTP), the Army's premier leadership and staff training exercise program at the tactical and operational level; and
Fort Irwin Logistics Services Support, which provides a full range of logistics support services and operates a large-
scale maintenance and repair program of both tracked and tactical wheeled vehicles.
SELECTED FINANCIAL DATA AND SEGMENT OPERATING RESULTS
For a more complete understanding of our business, see Selected Financial Data in Part II, Item 6. For a more
complete understanding of our segment financial information, see Segment Operating Results in Part II, Item 7 and
Note 3 to the consolidated financial statements in Part II, Item 8.
CUSTOMER CONCENTRATION
Our primary customer is the U.S. Government. Sales to the U.S. Government (which excludes foreign military sales
- a method to sell U.S. defense equipment and services to foreign governments through the DoD) accounted for
approximately 85 percent of total sales in each of the years ended December 31, 2014, 2013 and 2012. International
sales (which include foreign military sales) accounted for $3.0 billion, $2.5 billion and $2.1 billion, or 13 percent, 10
percent and 8 percent, of total sales for the years ended December 31, 2014, 2013 and 2012, respectively. No single
program accounted for more than ten percent of total sales during any period presented. See Risk Factors in Part I,
Item 1A.