Northrop Grumman Space & Mission Systems 10-K405/A 2000 FY Annual report (delinquent filer disclosure) (amended)

Exhibit 99

Financial Statements

THE TRW CANADA STOCK SAVINGS PLAN
December 31, 2000 and 1999

REPORT OF INDEPENDENT AUDITORS

To the Participants and the Board of Administration of
The TRW Canada Stock Savings Plan

We have audited the statements of financial condition of the TRW Stock Fund, Pooled Money Market Fund Employees Profit Sharing Plan, Pooled Balanced Fund Registered Retirement Savings Plan and Pooled Money Market Fund Registered Retirement Savings Plan [constitutingThe TRW Canada Stock Savings Plan] as at December 31, 2000 and 1999 and the related statements of operations and changes in fund equity for these funds for the years then ended. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Canada. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the several funds ofThe TRW Canada Stock Savings Planas at December 31, 2000 and 1999 and the results of their operations and the changes in fund equity for the years then ended in accordance with accounting principles generally accepted in Canada.

Hamilton, Canada,	/s/ Ernst & Young LLP
March 8, 2001.	Chartered Accountants

The TRW Canada Stock Savings Plan
TRW Stock Fund

STATEMENTS OF FINANCIAL CONDITION

As at December 31

		2000		1999
		$		$
		[expressed in Canadian dollars]
ASSETS
Cash			11,107		5,246
Receivable from TRW Canada Limited			138,306		87,163
Investments at quoted market value
	TRW Inc. common stock
	20,367 shares [cost $1,390,023] in 2000 and
	13,089 shares [cost $957,618] in 1999		1,183,437		981,170
			1,332,850		1,073,579
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions			903,887		828,383
Fund equity [including net unrealized appreciation of investments]			428,963		245,196
			1,332,850		1,073,579
Number of shares outstanding at December 31			20,367		13,089
Fund equity per share at December 31			22.9816		18.7329

See accompanying notes

The TRW Canada Stock Savings Plan
TRW Stock Fund

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

			2000			1999
			$			$
			[expressed in Canadian dollars]
INVESTMENT INCOME
Dividends on TRW Inc. common stock				16,461			11,030
Interest				539			34
				17,000			11,064
CONTRIBUTIONS
Participants				707,339			455,563
TRW Canada Limited 50% of total participants’ contributions to all funds				597,775			440,952
				1,305,114			896,515
Net realized gain on transfer of investments to participants[note 4]				71,011			90,527
Unrealized depreciation of investments[note 4]				(230,138	)		(82,077	)
				(159,127	)		8,450
				1,162,987			916,029
Less withdrawals and terminations
	Paid
		Cash		1,288			1,583
		TRW Inc. common stock 1,161 shares in 2000; 713 shares in 1999		74,045			55,970
				75,333			57,553
	Payable
		Cash		11,436			7,979
		TRW Inc. common stock 15,589 shares in 2000; 11,594 shares in 1999		892,451			820,404
				903,887			828,383
				979,220			885,936
Increase in fund equity				183,767			30,093
Fund equity at January 1				245,196			215,103
Fund equity at December 31				428,963			245,196

See accompanying notes

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Employees Profit Sharing Plan

STATEMENTS OF FINANCIAL CONDITION

As at December 31

		2000		1999
		$		$
		[expressed in Canadian dollars]
ASSETS
Cash			21		11,879
Receivable from TRW Canada Limited			23,409		22,019
Investments at market value
	Royal Trust Company Classified Money Market Fund 25,186 units [cost $251,863] in 2000 and 22,325 units [cost $223,250] in 1999		251,863		223,250
			275,293		257,148
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions			218,947		211,299
Fund equity			56,346		45,849
			275,293		257,148
Number of units outstanding at December 31			5,634.6		4,584.9
Fund equity per unit at December 31			10.0		10.0

See accompanying notes

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Employees Profit Sharing Plan

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

		2000		1999
		$		$
		[expressed in Canadian dollars]
Interest income			8,905		5,506
Participants’ contributions			238,091		230,976
			246,996		236,482
Less cash withdrawals and terminations
	Paid		31,715		20,126
	Payable		204,784		205,424
			236,499		225,550
Increase in fund equity			10,497		10,932
Fund equity at January 1			45,849		34,917
Fund equity at December 31			56,346		45,849

See accompanying notes

The TRW Canada Stock Savings Plan
Pooled Balanced Fund Registered Retirement Savings Plan

STATEMENTS OF FINANCIAL CONDITION

As at December 31

		2000		1999
		$		$
		[expressed in Canadian dollars]
ASSETS
Cash			9		9,021
Receivable from TRW Canada Limited			18,964		12,653
Dividends receivable			18,692		5,077
Investments at quoted market value
	Royal Trust Company Classified Balanced Fund 49,447.5982 units [cost $759,145] in 2000 and 40,584.5417 units [cost $565,355] in 1999		869,927		686,045
			907,592		712,796
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions			43,045		13,503
Fund equity [including net unrealized appreciation of investments]			864,547		699,293
			907,592		712,796
Number of units outstanding at December 31			49,447.5982		40,584.5417
Fund equity per unit at December 31			17.4841		17.230

See accompanying notes

The TRW Canada Stock Savings Plan
Pooled Balanced Fund Registered Retirement Savings Plan

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

		2000			1999
		$			$
		[expressed in Canadian dollars]
Income			49,441			25,558
Contributions
Participants’ contributions			183,056			136,422
Net realized gain on disposition of investments[note 4]			34,021			10,587
Unrealized (depreciation) appreciation of investments[note 4]			(9,908	)		42,821
			24,113			53,408
			256,610			215,388
Less cash withdrawals and terminations
	Paid		48,311			89,062
	Payable		43,045			13,503
			91,356			102,565
Increase in fund equity			165,254			112,823
Fund equity at January 1			699,293			586,470
Fund equity at December 31			864,547			699,293

See accompanying notes

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Registered Retirement Savings Plan

STATEMENTS OF FINANCIAL CONDITION

As at December 31

		2000		1999
		$		$
		[expressed in Canadian dollars]
ASSETS
Cash			1		5,177
Receivable from TRW Canada Limited			6,699		5,695
Investments at market value
	Royal Trust Company Classified Pooled Money Market Fund 30,690 units [cost $306,899] in 2000 and 23,897 units [cost $238,966] in 1999		306,899		238,966
			313,599		249,838
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions			9,075		—
Fund equity			304,524		249,838
			313,599		249,838
Number of units outstanding at December 31			30,452.4		24,983.8
Fund equity per unit at December 31			10.0		10.0

See accompanying notes

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Registered Retirement Savings Plan

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

		2000		1999
		$		$
		[expressed in Canadian dollars]
Interest income			15,069		12,336
Participants’ contributions			67,391		59,633
			82,460		71,969
Less cash withdrawals and terminations
	Paid		18,699		91,888
	Payable		9,075		—
			27,774		91,888
Increase (decrease) in fund equity			54,686		(19,919	)
Fund equity at January 1			249,838		269,757
Fund equity at December 31			304,524		249,838

See accompanying notes

The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

1. GENERAL PLAN PROVISIONS

The investment programs of The TRW Canada Stock Savings Plan [the “Plan"] are as follows:

Participant contributions

Upon enrollment or re-enrollment, each participant directs that his contributions [computed in increments of one percent, from two percent to six percent of qualifying compensation] are to be invested in accordance with any of the following investment options:

[a]	100% in the TRW Stock Fund [the common stock of TRW Inc. in accordance with the Trust agreement and the Plan].
[b]	100% in the Pooled Money Market Fund Employees Profit Sharing Plan. At present, the Trustee invests all of the Pooled Money Market Fund amounts in the Royal Trust Company, Classified Money Market Fund in accordance with the Trust agreement and the Plan.
[c]	100% in the Pooled Balanced Fund Registered Retirement Savings Plan. At present, the Trustee invests all of the Pooled Balanced Fund amounts in the Royal Trust Company, Classified Balanced Fund, in accordance with the Trust agreement and the Plan.
[d]	100% in the Pooled Money Market Fund Registered Retirement Savings Plan. At present, the Trustee invests all of the Pooled Money Market Fund amounts in the Royal Trust Company, Classified Pooled Money Market Fund in accordance with the Trust agreement and the Plan.
[e]	A combination of options [a] through [d] in multiples of 25%.

Such direction may be revised on 30 days prior notice, effective January 1 of any year.

TRW Canada Limited contributions

TRW Canada Limited shall contribute to the Plan for each month, out of current or accumulated earnings, an amount equal to 50% of participant contributions for such month. TRW Canada Limited contributions vest immediately.

All TRW Canada Limited contributions are invested in the TRW Stock Fund.

TRW Canada Limited does not charge a fee for administering the Plans.

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The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

The number of participants in each Fund at December 31 is as follows:

	2000		1999
	#		#
TRW Stock Fund		586		245
Pooled Money Market Fund Employees Profit Sharing Plan		128		75
Pooled Balanced Fund Registered Retirement Savings Plan		153		62
Pooled Money Market Fund Registered Retirement Savings Plan		62		39

The total number of participants in the Plan is less than the sum of the number of participants shown above because many are participating in more than one Fund.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with accounting principles generally accepted in Canada, and are within the framework of the accounting policies summarized below.

Gains and losses on investments

The realized gains or losses on disposition or transfer of an investment are determined from the market value of the investment at the date of disposition or transfer and the average cost base of that specific pool of investments prior to the disposition or transfer.

Unrealized gains or losses are determined as the net effect of the change in appreciation (depreciation) of investments from January 1 to December 31, based on market value and the average cost base of each investment at those respective dates.

Income recognition

Dividends are recognized as earned.

Interest income is recognized as it is earned consistent with the accrual basis of accounting.

2

The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

3. INCOME TAXES

The Plan is exempt from Canadian federal income taxes under provisions of the Income Tax Act. Federal income tax consequences to the participants under the Plan are as provided in the Income Tax Act. TRW Canada Limited contributions are taxable to the participants as is the income and all post-1971 capital gains less post-1971 capital losses of the Plan, all of which are allocated to the participants by the Trustee during the year, whether or not such amounts are paid to the participants by the Trustee during the year. In some circumstances, the amounts taxable could exceed the amounts allocated. The amount of foreign non-business income tax paid on foreign source income by the trusts under the Plan for the year is allocated to and deemed to have been paid by the participants for Canadian federal income tax purposes. Participants who are non-resident taxpayers are subject to special rules depending on whether they have performed duties in Canada during the year and are subject to 15% withholding tax on amounts paid or credited to them under the Plan.

4. UNREALIZED AND REALIZED (LOSSES) GAINS

Investments are stated at their quoted market value. The net unrealized appreciation (depreciation) of investments included in fund equity is as follows:

		TRW			Pooled
		Stock			Balanced
		Fund			Fund
		$			$
		[expressed in Canadian dollars]
Balance at December 31, 1998			105,629			77,869
Change for the year
	Market value		(82,077	)		42,821
Balance at December 31, 1999			23,552			120,690
Change for the year
	Market value		(230,138	)		(9,908	)
Balance at December 31, 2000			(206,586	)		110,782

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The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

The net realized gains on the transfer or disposition of investments are summarized as follows:

	TRW Stock Fund
	2000		1999
	$		$
	[expressed in Canadian dollars]
Amount realized		926,829		942,356
Cost — average		855,818		851,829
Net realized gain		71,011		90,527
	Pooled Balanced Fund
	Registered Retirement
	Savings Plan
	2000		1999
	$		$
	[expressed in Canadian dollars]
Amount realized		181,059		66,113
Cost — average		147,038		55,526
Net realized gain		34,021		10,587

5. RELATED PARTY TRANSACTIONS

All expenses related to The TRW Canada Stock Savings Plan are paid by TRW Canada Limited.

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