Northrop Grumman Space & Mission Systems 11-K Annual report of employee stock purchases

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 11-K

ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(Mark One):

	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
	For the fiscal year ended: December 31, 2001

OR

	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
	For the transition period from _____________ to _____________

Commission file number    1-2384  

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

The TRW Employee Stock Ownership
and Savings Plan

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive officer:

TRW Inc.
1900 Richmond Road
Cleveland, Ohio 44124

TABLE OF CONTENTS

EX-23 Consent

EX-24 Power of Attorney

Audited Financial Statements and Supplemental
Schedules

The TRW Employee Stock
Ownership and Savings Plan

December 31, 2001 and 2000 and Year ended December 31, 2001

Plan Number: 027

Plan Sponsor
TRW Inc.

Employer Identification Number: 34-0575430

Plan Administrator
TRW Inc.

Report of Independent Auditors

Board of Administration
The TRW Employee Stock Ownership
   and Savings Plan

We have audited the accompanying statements of net assets available for benefits of The TRW Employee Stock Ownership and Savings Plan as of December 31, 2001 and 2000, and the related statement of changes in net assets available for benefits for the year ended December 31, 2001. These financial statements are the responsibility of the Plan’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 the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about 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. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of The TRW Employee Stock Ownership and Savings Plan as of December 31, 2001 and 2000, and the changes in net assets available for benefits for the year ended December 31, 2001, in conformity with accounting principles generally accepted in the United States.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2001, is presented for purposes of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statement of net assets available for benefits and the statements of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedule and Fund Information have been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Ernst & Young LLP

Cleveland, Ohio
June 19, 2002

1

The TRW Employee Stock Ownership and Savings Plan

Statement of Net Assets Available for Benefits, with Fund Information

December 31, 2001

												Putnam
				TRW Stock Fund								Small
								Putnam		Primco		Company
				Participant		Non-Participant		S&P 500		Stable		Equity Portfolio
				Directed		Directed		Index Fund (TRW)		Value Fund		Fund (TRW)
Assets
Investments:
		TRW Inc. Common Stock		$	319,494,489	$	483,816,936
		Common and preferred stock
		Guaranteed investment contracts								$	513,028,461
		Registered investment companies
		Common trust funds						$	636,316,600			$	140,856,954
		Government debt instruments
		Corporate debt instruments
		Participant loans receivable
			Total Investments		319,494,489		483,816,936		636,316,600		513,028,461		140,856,954
Receivable for investments sold											100,697
Receivable from other funds											518,218
	Total assets				319,494,489		483,816,936		636,316,600		513,647,376		140,856,954
Liabilities
Accrued expenses					28,294		18,862		37,306		237,507
Payable for portfolio shares redeemed											694,434
Total liabilities					28,294		18,862		37,306		931,941		—
Net assets available for benefits				$	319,466,195	$	483,798,074	$	636,279,294	$	512,715,435	$	140,856,954

[Additional columns below]

[Continued from above table, first column(s) repeated]

				PBHG		Bernstein
				Emerging		International		Putnam		Putnam
				Growth		Value		Investors		International
				Fund		Portfolio II		Fund		Growth Fund
Assets
Investments:
		TRW Inc. Common Stock
		Common and preferred stock
		Guaranteed investment contracts
		Registered investment companies		$	61,461,319	$	24,681,758	$	127,436,691	$	23,167,981
		Common trust funds
		Government debt instruments
		Corporate debt instruments
		Participant loans receivable
			Total Investments		61,461,319		24,681,758		127,436,691		23,167,981
Receivable for investments sold
Receivable from other funds
	Total assets				61,461,319		24,681,758		127,436,691		23,167,981
Liabilities
Accrued expenses					3,608		1,449		7,481		1,360
Payable for portfolio shares redeemed
Total liabilities					3,608		1,449		7,481		1,360
Net assets available for benefits				$	61,457,711	$	24,680,309	$	127,429,210	$	23,166,621

2

The TRW Employee Stock Ownership and Savings Plan

Statement of Net Assets Available for Benefits, with Fund Information (continued)

December 31, 2001

						TRW				Fidelity
				Pimco Total		Balanced		Putnam		Magellan
				Return Fund		Fund		Vista Fund		Fund
Assets
Investments:
		TRW Inc. Common Stock
		Common and preferred stock
		Guaranteed investment contracts
		Registered investment companies		$	93,545,405			$	36,455,687	$	132,827,492
		Common trust funds				$	84,301,837
		Government debt instruments
		Corporate debt instruments
		Participant loans receivable
			Total Investments		93,545,405		84,301,837		36,455,687		132,827,492
Receivable for investments sold
Receivable from other funds					127,854		4,443				62,398
	Total assets				93,673,259		84,306,280		36,455,687		132,889,890
Liabilities
Accrued expenses					5,491		5,008		2,140		7,797
Payable for portfolio shares redeemed
Total liabilities					5,491		5,008		2,140		7,797
Net assets available for benefits				$	93,667,768	$	84,301,272	$	36,453,547	$	132,882,093

[Additional columns below]

[Continued from above table, first column(s) repeated]

				Putnam
				Money
				Market		Brokerage		Loan
				Fund		Gateway		Fund		Total
Assets
Investments:
		TRW Inc. Common Stock								$	803,311,425
		Common and preferred stock				$	4,711,244				4,711,244
		Guaranteed investment contracts									513,028,461
		Registered investment companies		$	6,209,426		19,461,354				525,247,113
		Common trust funds									861,475,391
		Government debt instruments					428,918				428,918
		Corporate debt instruments					209,144				209,144
		Participant loans receivable						$	57,761,473		57,761,473
			Total Investments		6,209,426		24,810,660		57,761,473		2,766,173,169
Receivable for investments sold											100,697
Receivable from other funds					1,839						714,752
	Total assets				6,211,265		24,810,660		57,761,473		2,766,988,618
Liabilities
Accrued expenses											356,303
Payable for portfolio shares redeemed											694,434
Total liabilities					—		—		—		1,050,737
Net assets available for benefits				$	6,211,265	$	24,810,660	$	57,761,473	$	2,765,937,881

3

The TRW Employee Stock Ownership and Savings Plan

Statement of Net Assets Available for Benefits, with Fund Information

December 31, 2000

			TRW Stock Fund
											Putnam
					Non-		Putnam		Primco		Small
			Participant		Participant		S&P 500		Stable		Company
			Directed		Directed		Index Fund (TRW)		Value Fund		Equity Fund
Assets
Investments:
	TRW Inc. Common Stock		$	349,359,922	$	481,725,186
	Common and preferred stock
	Guaranteed investment contracts								$	422,213,090
	Registered investment companies
	Common trust funds						$	662,436,491			$	152,709,997
	Government debt instruments
	Corporate debt instruments
	Participant loans receivable
		Total Investments		349,359,922		481,725,186		662,436,491		422,213,090		152,709,997
Cash												44,500
Receivable for investments sold								2,089,936		524,733		2,416,773
Interest and dividends receivable								573,654				107,984
Receivable from other funds				150,057						108,339
Total assets				349,509,979		481,725,186		665,100,081		422,846,162		155,279,254
Liabilities
Accrued expenses				28,343		20,524		149,693		118,909		42,566
Payable for securities purchased								1,971,026		573,257		551,139
Total liabilities				28,343		20,524		2,120,719		692,166		593,705
Net assets available for benefits			$	349,481,636	$	481,704,662	$	662,979,362	$	422,153,996	$	154,685,549

[Additional columns below]

[Continued from above table, first column(s) repeated]

			PBHG		Bernstein
			Emerging		International		Putnam		Putnam
			Growth		Value		Investors		International
			Fund		Portfolio II		Fund		Growth Fund
Assets
Investments:
	TRW Inc. Common Stock
	Common and preferred stock
	Guaranteed investment contracts
	Registered investment companies		$	86,110,495	$	28,261,160	$	146,854,131	$	11,713,947
	Common trust funds
	Government debt instruments
	Corporate debt instruments
	Participant loans receivable
		Total Investments		86,110,495		28,261,160		146,854,131		11,713,947
Cash
Receivable for investments sold
Interest and dividends receivable
Receivable from other funds
Total assets				86,110,495		28,261,160		146,854,131		11,713,947
Liabilities
Accrued expenses				7,608		1,746		10,490		639
Payable for securities purchased
Total liabilities				7,608		1,746		10,490		639
Net assets available for benefits			$	86,102,887	$	28,259,414	$	146,843,641	$	11,713,308

4

The TRW Employee Stock Ownership and Savings Plan

Statement of Net Assets Available for Benefits, with Fund Information (continued)

December 31, 2000

			Pimco		TRW		Putnam		Fidelity
			Total		Balanced		Vista		Magellan
			Return Fund		Fund		Fund		Fund
Assets
Investments:
	TRW Inc. Common Stock
	Common and preferred stock
	Guaranteed investment contracts
	Registered investment companies		$	47,513,681			$	29,434,659	$	18,305,954
	Common trust funds				$	44,628,129
	Government debt instruments
	Corporate debt instruments
	Participant loans receivable
		Total Investments		47,513,681		44,628,129		29,434,659		18,305,954
Cash
Receivable for investments sold
Interest and dividends receivable
Receivable from other funds				127,449						4,532
Total assets				47,641,130		44,628,129		29,434,659		18,310,486
Liabilities
Accrued expenses				2,516		2,720		1,758		971
Payable for securities purchased
Total liabilities				2,516		2,720		1,758		971
Net assets available for benefits			$	47,638,614	$	44,625,409	$	29,432,901	$	18,309,515

[Additional columns below]

[Continued from above table, first column(s) repeated]

			Putnam
			Money
			Market		Brokerage		Loan
			Fund		Gateway		Fund		Total
Assets
Investments:
	TRW Inc. Common Stock								$	831,085,108
	Common and preferred stock				$	14,070,956				14,070,956
	Guaranteed investment contracts									422,213,090
	Registered investment companies		$	3,873,329		3,491,773				375,559,129
	Common trust funds									859,774,617
	Government debt instruments					352,086				352,086
	Corporate debt instruments					183,276				183,276
	Participant loans receivable						$	56,369,752		56,369,752
		Total Investments		3,873,329		18,098,091		56,369,752		2,559,608,014
Cash										44,500
Receivable for investments sold										5,031,442
Interest and dividends receivable										681,638
Receivable from other funds				132,240						522,617
Total assets				4,005,569		18,098,091		56,369,752		2,565,888,211
Liabilities
Accrued expenses										388,483
Payable for securities purchased										3,095,422
Total liabilities										3,483,905
Net assets available for benefits			$	4,005,569	$	18,098,091	$	56,369,752	$	2,562,404,306

5

The TRW Employee Stock Ownership and Savings Plan

Statement of Changes in Net Assets Available for Benefits, with Fund Information

Year ended December 31, 2001

		TRW Stock Fund
					Non-			Putnam			Primco
		Participant			Participant			S&P 500			Stable
		Directed			Directed			Index Fund (TRW)			Value Fund
Investment income:
	Dividends	$	10,688,670		$	15,606,412		$	1
	Interest										$	30,123,672
Total investment income			10,688,670			15,606,412			1			30,123,672
Contributions from TRW Inc.						54,310,070
Contributions from participants			22,601,373						37,712,900			20,692,780
Net depreciation in fair value of investments			(12,006,373	)		(22,039,121	)		(87,684,126	)
Transfers from other funds			33,111,690						35,547,260			118,945,144
Transfer from other plans						4,153,153			87,141,367			67,138,788
Loan issues
Participant loan repayments			6,752,616						6,701,789			5,201,931
Other						128,397
			61,147,976			52,158,911			79,419,191			242,102,315
Less:
	Distributions		18,112,275			47,260,336			43,509,867			58,503,559
	Excess contributions								12,993			8,061
	Participant loan defaults Participant loan repayments Participant loan disbursements		5,769,635						5,249,814			4,100,678
	Other								169,475			214,579
			23,881,910			47,260,336			48,942,149			62,826,877
Administrative expenses			214,412			142,941			95,802			264,301
Transfers to other funds			67,067,095			2,437,858			54,348,527			84,947,028
Transfers to other plans						224,364			2,732,781			3,502,670
			91,163,417			50,065,499			106,119,259			151,540,876
Net increase (decrease)			(30,015,441	)		2,093,412			(26,700,068	)		90,561,439
Net assets available for benefits at beginning of year			349,481,636			481,704,662			662,979,362			422,153,996
Net assets available for benefits at end of year		$	319,466,195		$	483,798,074		$	636,279,294		$	512,715,435

[Additional columns below]

[Continued from above table, first column(s) repeated]

		Putnam
		Small			PBHG			Bernstein
		Company			Emerging			International			Putnam
		Equity Portfolio			Growth			Value			Investors
		Fund (TRW)			Fund			Portfolio II			Fund
Investment income:
	Dividends							$	737,901
	Interest
Total investment income									737,901
Contributions from TRW Inc.
Contributions from participants		$	13,680,441		$	11,938,767			3,134,126		$	17,158,818
Net depreciation in fair value of investments			(15,328,586	)		(28,865,270	)		(4,447,388	)		(41,378,167	)
Transfers from other funds			9,309,767			25,276,630			2,984,626			8,890,578
Transfer from other plans												28,883,729
Loan issues
Participant loan repayments			2,053,797			1,867,562			390,075			2,379,059
Other
			9,715,419			10,217,689			2,799,340			15,934,017
Less:
	Distributions		7,724,610			3,530,929			2,042,246			10,087,326
	Excess contributions		1,743			912			792			1,861
	Participant loan defaults Participant loan repayments Participant loan disbursements		1,497,156			1,097,512			302,159			1,525,901
	Other											47,346
			9,223,509			4,629,353			2,345,197			11,662,434
Administrative expenses			42,029			19,856			9,250			43,701
Transfers to other funds			14,278,476			30,213,656			4,023,998			23,476,142
Transfers to other plans												166,171
			23,544,014			34,862,865			6,378,445			35,348,448
Net increase (decrease)			(13,828,595	)		(24,645,176	)		(3,579,105	)		(19,414,431	)
Net assets available for benefits at beginning of year			154,685,549			86,102,887			28,259,414			146,843,641
Net assets available for benefits at end of year		$	140,856,954		$	61,457,711		$	24,680,309		$	127,429,210

6

The TRW Employee Stock Ownership and Savings Plan

Statement of Changes in Net Assets Available for Benefits, with Fund Information (continued)

Year ended December 31, 2001

		Putnam						TRW						Fidelity
		International			Pimco Total			Balanced			Putnam			Magellan
		Growth Fund			Return Fund			Fund			Vista Fund			Fund
Investment income:
	Dividends				$	7,054,555								$	1,540,677
	Interest
Total investment income						7,054,555									1,540,677
Contributions from TRW Inc.
Contributions from participants		$	3,429,959			8,436,784		$	7,212,563		$	7,725,107			12,551,068
Net depreciation in fair value of investments			(5,028,342	)		(165,184	)		(4,055,621	)		(15,767,198	)		(19,360,585	)
Transfers from other funds			7,499,549			50,758,816			7,743,886			19,147,991			23,199,507
Transfer from other plans			11,792,838			13,660,359			47,295,568			15,642,949			132,395,893
Loan issues
Participant loan repayments			337,855			1,300,451			93,161			851,071			1,883,156
Other
			18,031,859			81,045,781			58,289,557			27,599,920			152,209,716
Less:
	Distributions		1,476,757			5,888,303			6,481,535			1,798,819			9,846,138
	Excess contributions		290			2,111			720			280			894
	Participant loan defaults
	Participant loan repayment
	Participant loan disbursements		155,299			785,588			754,407			401,810			1,333,693
	Other		35,996			18,823			158,984			27,948			232,840
			1,668,342			6,694,825			7,395,646			2,228,857			11,413,565
Administrative expenses			7,651			28,478			28,887			12,534			45,288
Transfers to other funds			4,611,884			27,562,311			8,380,326			18,040,285			19,830,867
Transfers to other plans			290,669			731,013			2,808,835			297,598			6,347,418
			6,578,546			35,016,627			18,613,694			20,579,274			37,637,138
Net increase (decrease)			11,453,313			46,029,154			39,675,863			7,020,646			114,572,578
Net assets available for benefits at beginning of year			11,713,308			47,638,614			44,625,409			29,432,901			18,309,515
Net assets available for benefits at end of year		$	23,166,621		$	93,667,768		$	84,301,272		$	36,453,547		$	132,882,093

[Additional columns below]

[Continued from above table, first column(s) repeated]

		Money
		Market		Brokerage			Loan
		Fund		Gateway			Fund		Total
Investment income:
	Dividends			$	274,218				$	35,902,434
	Interest	$	211,723				$	3,987,641		34,323,036
Total investment income			211,723		274,218			3,987,641		70,225,470
Contributions from TRW Inc.										54,310,070
Contributions from participants										166,274,686
Net depreciation in fair value of investments					(8,077,958	)				(264,203,919	)
Transfers from other funds			52,005,077		47,136,206					441,556,727
Transfer from other plans								9,236,202		417,340,846
Loan issues								22,973,652		22,973,652
Participant loan repayments										29,812,523
Other										128,397
			52,216,800		39,332,466			36,197,495		938,418,452
Less:
	Distributions		292,575					1,928,540		218,483,815
	Excess contributions		152							30,809
	Participant loan defaults							3,055,272		3,055,272
	Participant loan repayment							29,390,568		29,390,568
	Participant loan disbursements									22,973,652
	Other							427		906,418
			292,727					34,374,807		274,840,534
Administrative expenses										955,130
Transfers to other funds			49,718,377		32,619,897					441,556,727
Transfers to other plans								430,967		17,532,486
			50,011,104		32,619,897			34,805,774		734,884,877
Net increase (decrease)			2,205,696		6,712,569			1,391,721		203,533,575
Net assets available for benefits at beginning of year			4,005,569		18,098,091			56,369,752		2,562,404,306
Net assets available for benefits at end of year		$	6,211,265	$	24,810,660		$	57,761,473	$	2,765,937,881

7

The TRW Employee Stock Ownership and Savings Plan

Notes to Financial Statements

December 31, 2001 and 2000 and
Year ended December 31, 2001

1. Description of the Plan

The following description of The TRW Employee Stock Ownership and Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

Participation in the Plan is available to substantially all domestic employees of TRW Inc. (“TRW”) who have been employed for at least three months. The Plan is governed by the Internal Revenue Code and related legislation.

Participant Contributions

The Plan allows eligible employees to contribute up to 16% of qualifying compensation on a before-tax basis by way of salary reduction; such contributions are made in increments of one percent of qualifying compensation and could not exceed $10,500 in 2001. Participants may also elect to contribute, in increments of one percent, up to 10% of qualifying compensation on an after-tax basis. The combined contribution cannot exceed 22% of their qualifying compensation. Participants can make unlimited contribution percentage changes per month. Annual contributions to a participant’s account (including before-tax, after-tax and TRW matching contributions) and to any other defined contribution plan are limited to the lesser of $30,000 or 25% of the participant’s annual compensation reduced by the amount of before-tax contributions.

Participants determine the funds in which to invest their contributions. Employee contributions may be invested, in multiples of 1%, in one or more of the investment funds. Fund elections may be changed at any time.

TRW Contributions

TRW contributes to the Plan, out of current or accumulated earnings, an amount equal to 100% of each participant’s before-tax contributions to a maximum of three percent of each participant’s qualifying compensation. Participants immediately vest in the TRW contributions. All TRW matching contributions are invested in the TRW Stock Fund. TRW contributions always remain in the TRW Stock Fund and may not be transferred, except under special circumstances. TRW contributions may be in the form of cash or treasury or authorized and unissued shares of TRW Common Stock. TRW Common Stock contributed is to be valued by any reasonable method selected by TRW.

8

The TRW Employee Stock Ownership and Savings Plan

Notes to Financial Statements (continued)

1. Description of the Plan (continued)

The amount and type of TRW contributions are summarized as follows:

	2001
TRW Common Stock	$	54,310,070

Withdrawals and Distributions

Upon termination of employment, a participant may elect to receive his or her account, less the unpaid balance of any loan outstanding, in a single sum except a participant whose account balance exceeds $5,000 may defer such payments until he or she reaches age 70-1/2. Participants receive the value of their TRW shares in cash unless they elect to receive shares. If a participant elects to defer payment of his or her account, the undistributed account balance remains invested in the Plan.

Participants who have attained age 55 as of the end of the preceding fiscal year-end and commenced participation in the Plan at least ten years prior may elect, within an election period during each of the succeeding six consecutive plan years, to receive a special ESOP distribution or may transfer the applicable amount to one or more investment funds under the Plan. The number of shares eligible for the annual election is 50% of the total number of shares of TRW common stock attributable to TRW matching contributions made after 1986, less the equivalent number of shares distributed as a result of any prior ESOP election, as determined on the preceding December 31.

Participant Loans

Participants can borrow from $1,000 to $50,000 (in increments of $100) of their before-tax contributions, but such borrowings in the aggregate cannot exceed 50% of a participant’s total Plan balance. The interest rate is fixed (prime rate at the end of the last business day of the preceding quarter plus one percent) and the repayment period cannot be less than one year or more than five years.

9

The TRW Employee Stock Ownership and Savings Plan

Notes to Financial Statements (continued)

1. Description of the Plan (continued)

Other

Although it has not expressed any intent to do so, TRW reserves the right to suspend or terminate the Plan. In the event of termination, the amount of each participant’s account may be retained in trust for the benefit of the participant.

The above description of the Plan provides only general information. Participants should refer to the Summary Plan Description, which is available from the Plan’s Participant Service Center and the Plan’s website, and annual prospectus for a more complete description of the Plan’s provisions.

2. Significant Accounting Policies

The financial statements have been prepared on the accrual basis of accounting.

Investments are stated at fair value. Investments in common and preferred stock are valued at the last reported sales price of the stock on the last business day of the plan year. The shares of registered investment companies are valued at quoted market prices that represent the net asset values of shares held by the Plan at year-end. Investments in common trust funds investing primarily in equities are valued based on the redemption price of units owned by the Plan, which is based on the current market values of the underlying assets of the fund. The investment in common trust funds investing primarily in insurance contracts, is valued at contract value, plus income received thereon, less distributions and administrative expense payments, which approximates fair value. Investments in common trust funds investing in short-term fixed income obligations have a market value approximating cost. The participant loans are valued at their outstanding balances, which approximate fair value.

All separate account and synthetic contracts have a guaranteed return of principal. As of December 31, 2001 and 2000, approximately $43 million and $26 million was invested in general account assets, $80 million and $124 million in separate account assets, and $390 million and $272 million in investment contracts owned directly by the Plan, respectively. The weighted average yield (excluding administrative expenses) for all investment contracts was 6.39% and 6.19% in 2001 and 2000, respectively. The crediting interest rate for all investment contracts was 6.00% at December 31, 2001 and 6.55% at December 31, 2000.

10

The TRW Employee Stock Ownership and Savings Plan

Notes to Financial Statements (continued)

2. Significant Accounting Policies (continued)

The cost of securities sold is determined by the average cost method for purposes of determining realized gains and losses.

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Certain amounts in the 2000 financial statement have been reclassified to conform to the 2001 presentation.

3. Investments

During the year ended December 31, 2001, the Plan’s investments (including investments purchased, sold, as well as held during the year) depreciated in fair value as determined by quoted market prices as follows:

	Net
	Depreciation in
	Fair Value of
	Investments
TRW Inc. Common Stock	$	34,045,494
Common trust funds		107,068,333
Shares of registered investment companies		115,012,134
Brokerage account		8,077,958
	$	264,203,919

11

The TRW Employee Stock Ownership and Savings Plan

Notes to Financial Statements (continued)

3. Investments (continued)

The fair value of individual investments that represent 5% or more of the Plan’s net assets are as follows:

	December 31
	2001		2000
TRW Inc. Common Stock*	$	803,311,425	$	831,085,108
Putnam S&P 500 Index Fund (TRW)		687,506,657		689,213,368
Putnam Small Company Equity Portfolio Fund (TRW)		140,856,954		152,709,997

* Nonparticipant-directed

Investments in the CSFBDirect Securities Account, as of December 31, 2001, consisted of $4,711,244 of stocks – common and preferred, $19,461,354 of shares of registered investment companies, and $638,062 of bonds and notes.

4. Administrative Expenses

Generally, trustee and custodian fees, investment manager fees, brokerage fees, and other fund-related expenses are charged back to the funds for which the expenses are incurred. The charges to audit the Plan, the administrative expenses of operating the Plan, and any other charges that cannot be directly related to a specific fund will be charged back to the funds on a quarterly basis in proportion to the ratio of the net asset value of each fund to the value of all funds invested in the Plan as of the previous quarter-end.

5. Federal Income Tax Status of the Plan

The Plan has received a determination letter from the Internal Revenue Service dated May 24, 1995, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt.

12

The TRW Employee Stock Ownership and Savings Plan

Notes to Financial Statements (continued)

6. Transactions with Parties-in-Interest

Party-in-interest transactions include the purchase and sale of investments managed by the Plan’s Trustee, Putnam Investments, and any transactions with TRW stock.

Putnam Investments managed assets of the Plan of $1,054,745,176 and $1,051,651,669 as of December 31, 2001 and 2000, respectively. No trustee fees were paid to Putnam in 2001.

There were no party-in-interest transactions which were prohibited under Department of Labor Regulations.

7. Transfer of Assets from Other Plans

During 2001, assets from three separate 401(k) plans associated with the Lucas Varity purchase by TRW in March 1999, were merged into the Plan. The transfer of assets of $417,340,846 is shown on the financial statements as “Transfer from Other Plan.”

Employee rollover contributions of $8,189,099 were made in 2001 from other plans. These contribution amounts are contained in the contribution amounts for each of the respective funds.

13

The TRW Employee Stock Ownership and Savings Plan

EIN: 34-0575430 Plan Number: 027

Schedule H, Line 4(i) — Schedule of Assets
(Held at End of Year)

December 31, 2001

					Number of				Current
Description					Shares		Cost**		Value
	Stocks—Common and Preferred
* TRW Inc. Common Stock						21,687,649	$	645,020,251	$	803,311,425
	Guaranteed Investment Contracts
	Security Backed Investments:
		INVESCO Group Trust Beta Fund—PRIMCO:
				Continental Assurance Co., Contract
				63005575, due December 17, 2112, 5.93%						10,529,258
				Gamma Fund—PRIMCO:
				JPMorgan Chase Bank, Contract
				401743-G, 6.05%, set annually						19,268,036
				Theta Fund—PIMCO:
				JPMorgan Chase Bank, Contract
				ATRW-TH, 6.03%, set annually						67,698,198
				Kappa Fund—PUTNAM:
				Continental Assurance Co., Contract
				25719-101, 5.84%, set annually						27,565,652
	Omicron Fund—PRIMCO:
	Caisse des Depots (CDC), Contract
	1115-01, 2.77%, set annually									5,961,236
	High Quality Structured Securities—PRIMCO:
	Allstate Life Ins. Co., Contract
			77182, 5.98%, set annually							12,080,399
										143,102,779

14

The TRW Employee Stock Ownership and Savings Plan

EIN: 34-0575430 Plan Number: 027

Schedule H, Line 4(i) — Schedule of Assets
(Held at End of Year)

December 31, 2001

	Number of		Current
Description	Shares	Cost	Value
Guaranteed Investment Contracts (continued) Separate Accounts:
Aetna Life Ins. & Ann. Co.:
Contract 14612, 6.02%, set annually				32,552,011
John Hancock Mutual Life:
Contract 8712, due January 2, 2002, 6.60%				6,001,051
Contract 7441, 7.54%, set annually				40,984,228
				79,537,290
Synthetics:
Monumental Life Ins. Co.:
Contract 00090TR, 6.50%, set annually				62,547,515
Rabobank Nederland:
Contract TRW090001, 6.15%, set annually				55,553,764
State Street Bank & Trust:
Contract 98149, 6.33%, set annually				59,359,730
UBS AG Contract 5086, 5.99%, set annually				59,351,150
				236,812,159
Non-Participating Synthetics:
Caisse des Depots (CDC):
Contract 115-06, due December 12, 2002, 4.66%				10,024,988
General Account Investments:
Fixed Rate & Fixed Term:
GE Life & Annuity Asr Co. Contract GS-3534, due March 29, 2004, 5.43%				8,332,384
Metropolitan Life Ins. Co. Contract 25814, due February 18, 2003, 5.74%				7,344,301
Monumental Life Ins. Co. Contract MDA263FR, due September 6, 2005, 5.51%				5,083,718
				20,760,403

15

The TRW Employee Stock Ownership and Savings Plan

EIN: 34-0575430 Plan Number: 027

Schedule H, Line 4(i) — Schedule of Assets
(Held at End of Year)(continued)

		Number of			Current
Description		Shares		Cost	Value
	Guaranteed Investment Contracts (continued) Variable Rate & Fixed Term:
	John Hancock Mutual Life:
	Contract 14909GAC, due May 1, 2003, 2.67%					6,026,480
	Contract 7314-1, due December 2, 2002, 4.39%					6,020,516
						12,046,996
	Cash & equivalents:
* Putnam Fiduciary Trust:
	Contract 100232, due January 1, 2002, 2.12%					10,743,846
	Total Guaranteed Investment Contracts					513,028,461
	Common Trust Funds
* Putnam S&P 500 Index Fund (TRW)			55,727,627			687,506,657
* Putnam Small Company Equity Portfolio Fund (TRW)			11,598,148			140,856,954
* Putnam Bond Index Fund			2,870,202			33,111,780
						861,475,391
	Shares of Registered Investment Companies PBHG Emerging Growth Fund		3,838,933			61,461,319
	Bernstein International Value Portfolio II		1,698,676			24,681,758
* Putnam Investors Fund			10,929,390			127,436,691
	PIMCO Total Return Fund		8,943,155			93,545,405
* Putnam International Growth Fund			1,161,302			23,167,981
* Putnam Vista Fund			4,096,145			36,455,687
	Fidelity Magellan Fund		1,274,491			132,827,492
* Putnam Money Market Fund			6,209,426			6,209,426
						505,785,759
	Brokerage Account					24,810,660
* Participant Loans				At interest rates
				ranging from 6%
				to 11.5%		57,761,473
	Total assets held				$	2,766,173,169

*	Indicates party-in-interest.
**	Cost presented for nonparticipant-directed investments.

16

SIGNATURES

         The Plan. Pursuant to requirements of the Securities Exchange Act of 1934, the Board of Administration of the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

		The TRW Employee Stock Ownership and Savings Plan
Date:	June 27, 2002	By: /s/ Kathleen A. WeigandKathleen A. Weigand Attorney-in-fact

EXHIBIT INDEX

EXHIBIT	EXHIBIT
NUMBER	DESCRIPTION
23 24	Consent of Ernst & Young LLP Power of Attorney