Northrop Grumman 2014 Annual Report Download - page 62

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NORTHROP GRUMMAN CORPORATION
-53-
Intersegment Sales and Operating Income
Sales between segments are recorded at values that include hypothetical operating income for the performing segment
based on that segment’s estimated operating margin rate for external sales. Such hypothetical operating income is
eliminated in consolidation. Intersegment sales and operating income before eliminations were as follows:
Year Ended December 31
$ in millions 2014 2013 2012
Sales Operating
Income Sales Operating
Income Sales Operating
Income
Intersegment sales and operating income
Aerospace Systems $ 176 $ 22 $ 149 $ 18 $ 171 $ 20
Electronic Systems 637 109 629 125 607 110
Information Systems 537 57 504 63 682 78
Technical Services 640 48 659 50 624 50
Total $ 1,990 $ 236 $ 1,941 $ 256 $ 2,084 $ 258
Other Financial Information
The following tables represent assets, capital expenditures and depreciation and amortization by segment:
December 31
$ in millions 2014 2013
Assets
Aerospace Systems $ 6,844 $ 6,490
Electronic Systems 4,366 4,400
Information Systems 6,725 6,887
Technical Services 1,539 1,367
Segment assets 19,474 19,144
Corporate assets (1) 7,098 7,237
Total assets $ 26,572 $ 26,381
(1) Corporate assets principally consist of cash and cash equivalents and deferred tax assets.
Capital Expenditures Depreciation and Amortization (1)
$ in millions 2014 2013 2012 2014 2013 2012
Aerospace Systems $ 387 $ 198 $ 154 $ 206 $ 210 $ 196
Electronic Systems 82 76 84 119 134 139
Information Systems 40 27 40 70 81 100
Technical Services 13374 4
Corporate 51 60 50 60 66 71
Total $ 561 $ 364 $ 331 $ 462 $ 495 $ 510
(1) Depreciation and amortization expense includes amortization of purchased intangible assets, as well as
amortization of deferred and other outsourcing costs.
4. 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. Substantially all accounts receivable at December 31,
2014, are expected to be collected in 2015. 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.