Northrop Grumman (NOC) 10-K 9 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Millions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 05, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	NORTHROP GRUMMAN CORP /DE/
Entity Central Index Key	0001133421
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$14,547
Entity Common Stock, Shares Outstanding		302,771,417

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Sales and Service Revenues
Product sales	$20,914	$19,634	$18,577
Service revenues	12,841	12,681	11,764
Total sales and service revenues	33,755	32,315	30,341
Cost of Sales and Service Revenues
Cost of product sales	16,591	15,490	14,340
Cost of service revenues	11,539	10,885	10,014
General and administrative expenses	3,142	3,143	3,062
Goodwill impairment	0	3,060	0
Operating income (loss)	2,483	(263)	2,925
Other (expense) income
Interest expense	(281)	(295)	(336)
Other, net	64	38	17
Earnings (loss) from continuing operations before income taxes	2,266	(520)	2,606
Federal and foreign income taxes	693	859	855
Earnings (loss) from continuing operations	1,573	(1,379)	1,751
Earnings from discontinued operations, net of tax	113	117	39
Net earnings (loss)	1,686	(1,262)	1,790
Basic Earnings (Loss) Per Share
Continuing operations	4.93	-4.12	5.12
Discontinued operations	0.35	0.35	0.12
Basic earnings (loss) per share	5.28	-3.77	5.24
Weighted-average common shares outstanding, in millions	319.2	334.5	341.7
Diluted Earnings (Loss) Per Share
Continuing operations	4.87	-4.12	5.01
Discontinued operations	0.34	0.35	0.11
Diluted earnings (loss) per share	5.21	-3.77	5.12
Weighted-average diluted shares outstanding, in millions	323.3	334.5	354.3
Net earnings (loss) from above	1,686	(1,262)	1,790
Other comprehensive income (loss)
Change in cumulative translation adjustment	31	(24)	12
Change in unrealized gain (loss) on marketable securities and cash flow hedges, net of tax (expense) benefit of $(23) in 2009, $22 in 2008 and $(1) in 2007	36	(35)	1
Change in unamortized benefit plan costs, net of tax (expense) benefit of $(374) in 2009, $1,888 in 2008 and $(384) in 2007	561	(2,884)	594
Other comprehensive income (loss), net of tax	628	(2,943)	607
Comprehensive income (loss)	$2,314	($4,205)	$2,397

1_Consolidated Statements of Op

Consolidated Statements of Operations (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Other comprehensive income (loss)
Tax (expense) benefit on unrealized gain (loss) on marketable securities and cash flow hedges	($23)	$22	($1)
Tax (expense) benefit on unamortized benefit plan costs	($374)	$1,888	($384)

Consolidated Statements of Fina

Consolidated Statements of Financial Position (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	$3,275	$1,504
Accounts receivable, net of progress payments	3,394	3,701
Inventoried costs, net of progress payments	1,170	1,003
Deferred tax assets	524	585
Prepaid expenses and other current assets	272	219
Assets of discontinued operations	0	1,231
Total current assets	8,635	8,243
Property, Plant, and Equipment
Land and land improvements	649	619
Buildings and improvements	2,422	2,326
Machinery and other equipment	4,759	4,547
Capitalized software costs	624	530
Leasehold improvements	630	545
Property, plant and equipment, gross	9,084	8,567
Accumulated depreciation	(4,216)	(3,782)
Property, plant, and equipment, net	4,868	4,785
Other Assets
Goodwill	13,517	13,509
Other purchased intangibles, net of accumulated amortization of $1,871 in 2009 and $1,767 in 2008	873	947
Pension and post-retirement plan assets	300	290
Long-term deferred tax assets	1,010	1,497
Miscellaneous other assets	1,049	926
Total other assets	16,749	17,169
Total assets	30,252	30,197
Current Liabilities
Notes payable to banks	12	24
Current portion of long-term debt	91	477
Trade accounts payable	1,921	1,887
Accrued employees' compensation	1,281	1,231
Advance payments and billings in excess of costs incurred	1,954	2,028
Other current liabilities	1,726	1,637
Liabilities of discontinued operations	0	165
Total current liabilities	6,985	7,449
Long-term debt, net of current portion	4,191	3,443
Pension and post-retirement plan liabilities	4,874	5,823
Other long-term liabilities	1,515	1,562
Total liabilities	17,565	18,277
Shareholders' Equity
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding; 2009 - 306,865,201; 2008 - 327,012,663	307	327
Paid-in capital	8,657	9,645
Retained earnings	6,737	5,590
Accumulated other comprehensive loss	(3,014)	(3,642)
Total shareholders' equity	12,687	11,920
Total liabilities and shareholders' equity	$30,252	$30,197

2_Consolidated Statements of Fi

Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Other Assets
Accumulated amortization on other purchased intangibles	$1,871	$1,767
Shareholders' Equity
Common stock, par value	1	1
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	306,865,201	327,012,663
Common stock, shares outstanding	306,865,201	327,012,663

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash received from customers
Progress payments	$8,561	$6,219	$5,860
Collections on billings	25,099	26,938	24,570
Insurance proceeds received	25	5	125
Other cash receipts	37	83	34
Total sources of cash - continuing operations	33,722	33,245	30,589
Uses of Cash - Continuing Operations
Cash paid to suppliers and employees	(29,250)	(28,817)	(26,144)
Pension contributions	(858)	(320)	(342)
Interest paid, net of interest received	(269)	(287)	(334)
Income taxes paid, net of refunds received	(774)	(712)	(853)
Income taxes paid on sale of businesses	(508)	(7)	0
Excess tax benefits from stock-based compensation	(2)	(48)	(52)
Other cash payments	(30)	(16)	(52)
Total uses of cash - continuing operations	(31,691)	(30,207)	(27,777)
Cash provided by continuing operations	2,031	3,038	2,812
Cash provided by discontinued operations	102	173	78
Net cash provided by operating activities	2,133	3,211	2,890
Investing Activities
Proceeds from sale of businesses, net of cash divested	1,650	175	0
Payments for businesses purchased	(33)	(92)	(690)
Additions to property, plant, and equipment	(654)	(681)	(681)
Payments for outsourcing contract costs and related software costs	(68)	(110)	(137)
(Increase) decrease in restricted cash	(28)	61	59
Other investing activities, net	0	21	19
Net cash provided by (used in) investing activities	867	(626)	(1,430)
Financing Activities
Net borrowings under lines of credit	(12)	(2)	(69)
Proceeds from issuance of long-term debt	843	0	0
Principal payments of long-term debt	(474)	(113)	(90)
Proceeds from exercises of stock options and issuances of common stock	51	103	274
Dividends paid	(539)	(525)	(504)
Excess tax benefits from stock-based compensation	2	48	52
Common stock repurchases	(1,100)	(1,555)	(1,175)
Net cash used in financing activities	(1,229)	(2,044)	(1,512)
Increase (decrease) in cash and cash equivalents	1,771	541	(52)
Cash and cash equivalents, beginning of year	1,504	963	1,015
Cash and cash equivalents, end of year	$3,275	$1,504	$963

3_Consolidated Statements of Ca

Consolidated Statements of Cash Flows Indirect Method (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Reconciliation of Net Earnings (Loss) to Net Cash Provided by Operating Activities
Net earnings (loss)	$1,686	($1,262)	$1,790
Net earnings from discontinued operations	(95)	(91)	(39)
Adjustments to reconcile to net cash provided by operating activities
Depreciation	585	567	570
Amortization of assets	151	189	152
Impairment of goodwill	0	3,060	0
Stock-based compensation	105	118	196
Excess tax benefits from stock-based compensation	(2)	(48)	(52)
Pre-tax gain on sale of businesses	(446)	(58)	0
Pre-tax gain on sale of investments	0	0	(23)
(Increase) decrease in
Accounts receivable	(6,313)	(378)	(6,439)
Inventoried costs	(291)	(521)	4
Prepaid expenses and other current assets	(6)	(20)	9
Increase (decrease) in
Progress payments	6,655	764	6,513
Accounts payable and accruals	(151)	383	(2)
Deferred income taxes	112	167	195
Income taxes payable	65	241	(59)
Retiree benefits	(20)	(167)	(50)
Other non-cash transactions, net	(4)	94	47
Cash provided by continuing operations	2,031	3,038	2,812
Cash provided by discontinued operations	102	173	78
Net cash provided by operating activities	2,133	3,211	2,890
Non-Cash Investing and Financing Activities
Investment in unconsolidated affiliate	0	0	30
Sale of businesses
Liabilities assumed by purchaser	167	18	0
Purchase of businesses
Liabilities assumed by the company	0	20	136
Mandatorily redeemable convertible preferred stock converted or redeemed into common stock	0	350	0
Capital leases	0	0	35
Capital expenditures accrued in accounts payable	$104	$84	$80

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (USD $)
In Millions	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
At beginning of year at Dec. 31, 2006	$346	$11,346	$6,183	($1,260)
Common stock repurchased	(15)	(1,160)
Employee stock awards and options	7	475
Net earnings (loss)			1,790		1,790
Adoption of new GAAP accounting guidance			(66)
Dividends declared			(520)
Other comprehensive income (loss), net of tax				607	607
Adjustment to deferred tax benefit recorded on adoption of accounting standard				(46)
At end of year at Dec. 31, 2007	338	10,661	7,387	(699)	17,687
Common stock repurchased	(21)	(1,534)
Conversion of preferred stock	6	344
Employee stock awards and options	4	174
Net earnings (loss)			(1,262)		(1,262)
Adoption of new GAAP accounting guidance			(3)
Dividends declared			(532)
Other comprehensive income (loss), net of tax				(2,943)	(2,943)
At end of year at Dec. 31, 2008	327	9,645	5,590	(3,642)	11,920
Common stock repurchased	(23)	(1,098)
Employee stock awards and options	3	110
Net earnings (loss)			1,686		1,686
Dividends declared			(539)
Other comprehensive income (loss), net of tax				628	628
At end of year at Dec. 31, 2009	$307	$8,657	$6,737	($3,014)	$12,687

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Northrop Grumman Corporation and its subsidiaries (Northrop Grumman or the company) provide technologically advanced, innovative products, services, and solutions in aerospace, electronics, information systems, shipbuilding and technical services. In January 2009, the company streamlined its organizational structure by reducing the number of operating segments from seven to five. The five segments are Aerospace Systems, which combines the former Integrated Systems and Space Technology segments; Electronic Systems; Information Systems, which combines the former Information Technology and Mission Systems segments; Shipbuilding; and Technical Services. Creation of the Aerospace Systems and Information Systems segments is intended to strengthen alignment with customers, improve the companys ability to execute on programs and win new business, and enhance cost competitiveness. Product sales are predominantly generated in the Aerospace Systems, Electronic Systems and Shipbuilding segments, while the majority of the companys service revenues are generated by the Information Systems and Technical Services segments. Certain amounts in these financial statements have been reclassified to reflect the new organizational structure and segment realignments (See Notes6 and 10). Aerospace Systems is a premier developer, integrator, producer and supporter of manned and unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems critical to maintaining the nations security and leadership in technology. These systems are used, primarily by U.S.government customers, in many different mission areas including intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic warfare; missile defense; earth observation; space science; and space exploration. Electronic Systems is a leading designer, developer, manufacturer and integrator of a variety of advanced electronic and maritime systems for national security and select non-defense applications. Electronic Systems provides systems to U.S.and international customers for such applications as airborne surveillance, aircraft fire control, precision targeting, electronic warfare, automatic test equipment, inertial navigation, integrated avionics, space sensing, intelligence processing, air and missile defense, communications, mail processing, biochemical detection, ship bridge control, and shipboard components. Information Systems is a leading global provider of advanced solutions for Department of Defense (DoD), national intelligence, federal civilian, state and local agencies, and commercial customers. Products and services are focused on the fields of command, control, communications, computers and intelligence; air and missile defense; airborne reconnaissance; intelligence processing; decision support systems; cybersecurity; information technology; and systems engineering and integration. Shipbuilding is the nations sole industrial designer, builder, and refueler of nuclear-powered aircraft carriers and one of on

Accounting Standards Updates

Accounting Standards Updates
	12 Months Ended Dec. 31, 2009 USD / shares
ACCOUNTING STANDARDS UPDATES [Abstract]
2. ACCOUNTING STANDARDS UPDATES	2. ACCOUNTING STANDARD UPDATES In June 2009, the Financial Accounting Standards Board (FASB) issued its final Statement of Financial Accounting Standards (SFAS) No.168 The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No.162. SFASNo.168 made the FASB Accounting Standards Codification (the Codification) the single source of U.S.GAAP used by nongovernmental entities in the preparation of financial statements, except for rules and interpretive releases of the SEC under authority of federal securities laws, which are sources of authoritative accounting guidance for SEC registrants. The Codification is meant to simplify user access to all authoritative accounting guidance by reorganizing U.S.GAAP pronouncements into roughly 90 accounting topics within a consistent structure; its purpose is not to create new accounting and reporting guidance. The Codification supersedes all existing non-SEC accounting and reporting standards and was effective for the company beginning July1, 2009. Following SFASNo.168, the Board will not issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead, it will issue Accounting Standards Updates. The FASB will not consider Accounting Standards Updates as authoritative in their own right; these updates will serve only to update the Codification, provide background information about the guidance, and provide the bases for conclusions on the change(s) in the Codification. In the description of Accounting Standards Updates that follows, references in italics relate to Codification Topics and Subtopics, and their descriptive titles, as appropriate. Accounting Standards Updates Not Yet Effective In June 2009, an update was made to Consolidation Consolidation of Variable Interest Entities. Among other things, the update replaces the calculation for determining which entities, if any, have a controlling financial interest in a variable interest entity (VIE) from a quantitative based risks and rewards calculation, to a qualitative approach that focuses on identifying which entities have the power to direct the activities that most significantly impact the VIEs economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. The update also requires ongoing assessments as to whether an entity is the primary beneficiary of a VIE (previously, reconsideration was only required upon the occurrence of specific events), modifies the presentation of consolidated VIE assets and liabilities, and requires additional disclosures about a companys involvement in VIEs. This update will be effective for the company beginning January1, 2010. Management is currently evaluating the effect that adoption of this update will have, if any, on the companys consolidated financial position and results of operations when it becomes effective in 2010. In October 2009, an update was made to Revenue Recognition Multiple Deliverable Revenue Arrangements. This update removes the objective-and-reliable-evidence-of-fair-value criterion from

Dividends on Common Stock and C

Dividends on Common Stock and Conversion of Preferred Stock
	12 Months Ended Dec. 31, 2009 USD / shares
DIVIDENDS ON COMMON STOCK AND CONVERSION OF PREFERRED STOCK [Abstract]
3. DIVIDENDS ON COMMON STOCK AND CONVERSION OF PREFERRED STOCK	3. DIVIDENDS ON COMMON STOCK AND CONVERSION OF PREFERRED STOCK Dividends on Common Stock In May 2009, the companys board of directors approved an increase to the quarterly common stock dividend, from $.40 per share to $.43 per share, for stockholders of record as of June1, 2009. In April 2008, the companys board of directors approved an increase to the quarterly common stock dividend, from $.37 per share to $.40 per share, for stockholders of record as of June2, 2008. On February21, 2007, the companys board of directors approved an increase to the quarterly common stock dividend, from $.30 per share to $.37 per share, effective with the first quarter 2007 dividends. Conversion of Preferred Stock On February20, 2008, the companys board of directors approved the redemption of the 3.5million shares of mandatorily redeemable convertible preferred stock on April4, 2008. Prior to the redemption date, substantially all of the preferred shares were converted into common stock at the election of stockholders. All remaining unconverted preferred shares were redeemed by the company on the redemption date. As a result of the conversion and redemption, the company issued approximately 6.4million shares of common stock.

Business Acquisitions

Business Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
BUSINESS ACQUISITIONS [Abstract]
4. BUSINESS ACQUISITIONS	4. BUSINESS ACQUISITIONS 2009 In April 2009, the company acquired Sonoma Photonics, Inc., as well as assets from Swift Engineerings Killer Bee Unmanned Air Systems product line for an aggregate amount of approximately $33million in cash. The operating results of these businesses are reported in the Aerospace Systems segment from the date of acquisition. The assets, liabilities, and results of operations of these businesses were not material to the companys consolidated financial position or results of operations, and thus pro-forma financial information is not presented. 2008 In October 2008, the company acquired 3001 International, Inc. (3001 Inc.) for approximately $92million in cash. 3001 Inc. provides geospatial data production and analysis, including airborne imaging, surveying, mapping and geographic information systems for U.S.and international government intelligence, defense and civilian customers. The operating results of 3001 Inc. are reported in the Information Systems segment from the date of acquisition. The assets, liabilities, and results of operations of 3001 Inc. are not material to the companys consolidated financial position or results of operations, and thus pro-forma information is not presented. 2007 During the third quarter of 2007, the company acquired Xinetics Inc. and the remaining 61percent of Scaled Composites, LLC for an aggregate amount of approximately $100million in cash. The operating results of these businesses are reported in the Aerospace Systems segment from the date of acquisition. The assets, liabilities, and results of operations of these businesses were not material to the companys consolidated financial position or results of operations, and thus pro-forma information is not presented. In July 2007, the company and Science Applications International Corporation (SAIC) reorganized the AMSEC, LLC, joint venture (AMSEC), by dividing AMSEC along customer and product lines. AMSEC is a full-service supplier that provides engineering, logistics and technical support services primarily to Navy ship and aviation programs. Under the reorganization plan, the company retained the ship engineering, logistics and technical service businesses under the AMSEC name (the AMSEC Businesses) and, in exchange, SAIC received the aviation, combat systems and strike force integration services businesses from AMSEC (the Divested Businesses). This reorganization was treated as a step acquisition for the acquisition of SAICs interests in the AMSEC Businesses, with the company recognizing a pre-tax gain of $23million for the effective sale of its interests in the Divested Businesses. From the date of this reorganization, the operating results of the AMSEC Businesses, and transaction gain, have been reported on a consolidated basis in the Shipbuilding segment from the date of this reorganization. Prior to the reorganization, the company accounted for AMSEC, LLC, under the equity method. The assets, liabilities, and results of operations of the AMSEC Businesses were not material to the companys consolidated financial position or results of operations, and thus pro-forma information is not presented

Business Dispositions

Business Dispositions
	12 Months Ended Dec. 31, 2009 USD / shares
BUSINESS DISPOSITIONS [Abstract]
5. BUSINESS DISPOSITIONS	5. BUSINESS DISPOSITIONS 2009 In December 2009, the company sold ASD for $1.65billion in cash to an investor group led by General Atlantic, LLC, and affiliates of Kohlberg Kravis Roberts Co. L.P., and recognized a gain of $15million, net of taxes. ASD was a business unit comprised of the assets and liabilities of TASC, Inc., its wholly-owned subsidiary TASC Services Corporation, and certain contracts carved out from other Northrop Grumman businesses also in Information Systems that provide systems engineering technical assistance (SETA) and other analysis and advisory services. Sales for this business in the years ended December31, 2009, 2008, and 2007, were approximately $1.5billion, $1.6billion, and $1.5billion, respectively. The assets, liabilities and operating results of this business unit are reported as discontinued operations in the consolidated statements of operations for all periods presented. 2008 In April 2008, the company sold its Electro-Optical Systems (EOS) business for $175million in cash to L-3 Communications Corporation and recognized a gain of $19million, net of taxes. EOS, formerly a part of the Electronic Systems segment, produces night vision and applied optics products. Sales for this business through April 2008 and for the year ended December31, 2007, were approximately $53million and $190million, respectively. The assets, liabilities and operating results of this business are reported as discontinued operations in the consolidated statements of operations for all periods presented. 2007 During the second quarter of 2007, management announced its decision to exit the remaining Interconnect Technologies (ITD) business reported within the Electronic Systems segment. Sales for this business in the year ended December31, 2007, was $14million. The shut-down was completed during the third quarter of 2007 and costs associated with the shut-down were not material. The results of this business are reported as discontinued operations in the consolidated statements of operations for all periods presented. Discontinued Operations Earnings for the businesses classified within discontinued operations (primarily the result of the sale of ASD discussed above) were as follows: Year Ended December31 $ in millions 2009 2008 2007 Sales and service revenues $ 1,536 $ 1,625 $ 1,691 Earnings from discontinued operations 149 146 60 Income tax expense (54 ) (55 ) (21 ) Earnings, net of tax $ 95 $ 91 $ 39 Gain on divestitures 446 66 Income tax expense on gain (428 ) (40 ) Gain from discontinued operations, net of tax $ 18 $ 26 Earnings from discontinued operations, net of tax $ 113 $ 117 $ 39 Tax rates on discontinued operations vary from the companys effective tax rate generally due to the non-deductibility of goodwill for tax purposes and the effects, if any, of capital loss

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT INFORMATION [Abstract]
6. SEGMENT INFORMATION	6. SEGMENT INFORMATION At December31, 2009, the company was aligned into five reportable segments: Aerospace Systems, Electronic Systems, Information Systems, Shipbuilding, and Technical Services. Segment Realignments The company, from time to time, acquires or disposes of businesses, and realigns contracts, programs or business areas among and within its operating segments that possess similar customers, expertise, and capabilities. Internal realignments are designed to more fully leverage existing capabilities and enhance development and delivery of products and services. In January 2009, the company streamlined its organizational structure by reducing the number of operating segments from seven to five. The five segments are Aerospace Systems, which combines the former Integrated Systems and Space Technology segments; Electronic Systems; Information Systems, which combines the former Information Technology and Mission Systems segments; Shipbuilding; and Technical Services. Creation of the Aerospace Systems and Information Systems segments is intended to strengthen alignment with customers, improve the companys ability to execute on programs and win new business, and enhance cost competitiveness. Product sales are predominantly generated in the Aerospace Systems, Electronic Systems and Shipbuilding segments, while the majority of the companys service revenues are generated by the Information Systems and Technical Services segments. During the first quarter of 2009, the company realigned certain logistics, services, and technical support programs and transferred assets from the Information Systems and Electronic Systems segments to the Technical Services segment. This realignment is intended to strengthen the companys core capability in aircraft and electronics maintenance, repair and overhaul, life cycle optimization, and training and simulation services. Sales and segment operating income in the tables below have been revised to reflect the above realignments for all periods presented. During the first quarter of 2009, the company transferred certain optics and laser programs from the Information Systems segment to the Aerospace Systems segment. As the operating results of this business were not considered material, the prior year sales and segment operating income were not reclassified to reflect this business transfer. U.S.Government Sales Revenue from the U.S.Government (which includes Foreign Military Sales) includes revenue from contracts for which Northrop Grumman is the prime contractor as well as those for which the company is a subcontractor and the ultimate customer is the U.S.Government. All of the companys segments derive substantial revenue from the U.S.Government. Sales to the U.S.Government amounted to approximately $31.0billion, $29.3billion, and $27.4billion, or 91.8percent, 90.7percent, and 90.2percent of total revenue for the years ended December31, 2009, 2008, and 2007, respectively. Foreign Sales Direct foreign sales amounted to approximately $1.6billion, $1.7billion, and $1.7billion, or 4.9percent, 5.3percent, and 5.7percent of total revenue for the years ended D

Earnings

Earnings (Loss) Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
EARNINGS (LOSS) PER SHARE [Abstract]
7. EARNINGS (LOSS) PER SHARE	7. EARNINGS (LOSS) PER SHARE Basic Earnings (Loss) Per Share Basic earnings (loss) per share from continuing operations are calculated by dividing earnings (loss) from continuing operations available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted Earnings (Loss) Per Share Diluted earnings per share for the year ended December31, 2009, include the dilutive effect of stock options and other stock awards granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 4.1million shares for the year ended December31, 2009. For the year ended December31, 2008, the potential dilutive effect of 7.1million shares from stock options, other stock awards, and the mandatorily redeemable convertible preferred stock (see Note3)were excluded from the computation of weighted average shares outstanding as the shares would have had an anti-dilutive effect on the earnings per share computation. Diluted earnings per share for the year ended December31, 2007, include the dilutive effect of stock options, other stock awards and the mandatorily redeemable convertible preferred stock. The dilutive effect of these securities totaled 12.6million shares (including 6.4million shares for the companys mandatorily redeemable convertible preferred stock). The weighted-average diluted shares outstanding for the years ended December31, 2009, 2008, and 2007, exclude stock options to purchase approximately 8.1million shares, 2.1million shares, and 59 thousand shares, respectively, because such options have an exercise price in excess of the average market price of the companys common stock during the year. Diluted earnings (loss) per share from continuing operations are calculated as follows: Year Ended December31 $ in millions, except per share 2009 2008 2007 Diluted Earnings (Loss) Per Share From Continuing Operations Earnings (loss) from continuing operations $ 1,573 $ (1,379 ) $ 1,751 Add dividends on mandatorily redeemable convertible preferred stock 24 Earnings (loss) from continuing operations available to common shareholders $ 1,573 $ (1,379 ) $ 1,775 Weighted-average common shares outstanding 319.2 334.5 341.7 Dilutive effect of stock options, stock awards, and mandatorily redeemable convertible preferred stock 4.1 12.6 Weighted-average diluted common shares outstanding 323.3 334.5 354.3 Diluted earnings (loss) per share from continuing operations $ 4.87 $ (4.12 ) $ 5.01 Share Repurchases The table below summarizes the companys share repurchases beginning January1, 2007: Amount Total Shares

Accounts Receivable, Net

Accounts Receivable, Net
	12 Months Ended Dec. 31, 2009 USD / shares
ACCOUNTS RECEIVABLE, NET [Abstract]
8. ACCOUNTS RECEIVABLE, NET	8. ACCOUNTS RECEIVABLE, NET Unbilled amounts represent sales for which billings have not been presented to customers at year-end. These amounts are usually billed and collected within one year. Progress payments are received on a number of firm fixed-price contracts. Unbilled amounts are presented net of progress payments of $5.6billion and $4.7billion at December31, 2009, and 2008, respectively. Accounts receivable at December31, 2009, are expected to be collected in 2010, except for approximately $76million due in 2011 and $7million due in 2012 and later. Allowances for doubtful amounts mainly represent estimates of overhead costs which may not be successfully negotiated and collected. Accounts receivable were composed of the following: December31 $ in millions 2009 2008 Due From U.S. Government Amounts billed $ 1,078 $ 1,177 Recoverable costs and accrued profit on progress completed unbilled 1,980 1,747 3,058 2,924 Due From Other Customers Amounts billed 318 419 Recoverable costs and accrued profit on progress completed unbilled 342 658 660 1,077 Total accounts receivable 3,718 4,001 Allowances for doubtful amounts (324 ) (300 ) Total accounts receivable, net $ 3,394 $ 3,701

Inventoried Costs, Net

Inventoried Costs, Net
	12 Months Ended Dec. 31, 2009 USD / shares
INVENTORIED COSTS, NET [Abstract]
9. INVENTORIED COSTS, NET	9. INVENTORIED COSTS, NET Inventoried costs were composed of the following: December31 $ in millions 2009 2008 Production costs of contracts in process $ 2,698 $ 2,393 General and administrative expenses 175 221 2,873 2,614 Progress payments received (1,909 ) (1,864 ) 964 750 Product inventory 206 253 Total inventoried costs, net $ 1,170 $ 1,003

Goodwill and Other Purchased In

Goodwill and Other Purchased Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS [Abstract]
10. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS	10. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Goodwill Goodwill and other purchased intangible assets are included in the identifiable assets of the segment to which they have been assigned. Impairment tests are performed at least annually and more often as circumstances require. Any goodwill impairment, as well as the amortization of other purchased intangible assets, is charged against the respective segments operating income. The annual impairment test for all segments was performed as of November30, 2009, with no indication of impairment. In performing the goodwill impairment tests, the company uses a discounted cash flow approach corroborated by comparative market multiples, where appropriate, to determine the fair value of its businesses. The company recorded a non-cash charge totaling $3.1billion at Shipbuilding and Aerospace Systems in the fourth quarter of 2008 for the impairment of goodwill. The impairment charge was primarily driven by adverse equity market conditions that caused a decrease in current market multiples and the companys stock price as of November30, 2008. The charge reduced goodwill recorded in connection with acquisitions made in 2001 and 2002 and also represents the companys accumulated goodwill impairment losses at December31, 2009, and 2008. The changes in the carrying amounts of goodwill during 2008 and 2009, are as follows: Aerospace Electronic Information Technical $ in millions Systems Systems Systems Shipbuilding Services Total Balance as of January1, 2008 $ 3,873 $ 2,514 $ 5,852 $ 3,614 $ 810 $ 16,663 Goodwill transferred due to segment realignment 505 (47 ) (458 ) Goodwill related to business sold (47 ) (47 ) Goodwill acquired 78 78 Fair value adjustments to net assets acquired (60 ) 8 (82 ) 17 (8 ) (125 ) Goodwill Impairment (570 ) (2,490 ) (3,060 ) Balance as of December31, 2008 $ 3,748 $ 2,428 $ 5,390 $ 1,141 $ 802 $ 13,509 Goodwill transferred due to segment realignment 41 (26 ) (138 ) 123 Goodwill acquired 5 5 Other 7 (4 ) 3 Balance as of December31, 2009 $ 3,801 $ 2,402 $ 5,248 $ 1,141 $ 925 $ 13,517 Segment Realignments As discussed in Note1, in January

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
11. FAIR VALUE OF FINANCIAL INSTRUMENTS	11. FAIR VALUE OF FINANCIAL INSTRUMENTS Investments in Marketable Securities The company holds a portfolio of marketable securities, primarily consisting of equity securities that are classified as either trading or available-for-sale and can be liquidated without restriction. These assets are recorded at fair value, substantially all of which are based upon quoted market prices for identical instruments in active markets and thus considered Level1 inputs. As of December31, 2009, and December31, 2008, respectively, there were marketable equity securities of $58million and $44million included in prepaid expenses and other current assets and $233million and $180million of marketable equity securities included in miscellaneous other assets. Derivative Financial Instruments and Hedging Activities The company utilizes derivative financial instruments in order to manage exposure to interest rate risk and foreign currency exchange rate risk. The company does not use derivative financial instruments for trading or speculative purposes, nor does it use leveraged financial instruments. Interest rate swap agreements utilize floating interest rates as an offset to the fixed-rate characteristics of certain long-term debt instruments. Foreign currency forward contracts are used to manage foreign currency exchange rate risk related to receipts from customers and payments to suppliers denominated in foreign currencies. Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value, substantially all of which are based model-derived valuations whose inputs are observable and thus considered Level2 inputs. Changes in the fair value of derivative financial instruments that qualify and are designated as fair value hedges are recorded in earnings from continuing operations, while the effective portion of the changes in the fair value of derivative financial instruments that qualify and are designated as cash flow hedges are recorded in other comprehensive income. Credit risk related to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and periodic settlements of the underlying transactions. For derivative financial instruments not designated as hedging instruments as well as the ineffective portion of cash flow hedges, gains or losses resulting from changes in the fair value are reported in Other, net in the consolidated statements of operations. Unrealized gains or losses on cash flow hedges are reclassified from other comprehensive income to earnings from continuing operations upon the recognition of the underlying transactions. As of December31, 2009, an interest rate swap with a notional value of $200million, and foreign currency purchase and sale forward contract agreements with notional values of $77million and $151million, respectively, were designated as hedging instruments. The remaining notional values outstanding at December31, 2009, under foreign currency purchase and sale forward contracts of $19million and $74million, respectively, were not designated as hedging instrument

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES [Abstract]
12. INCOME TAXES	12. INCOME TAXES The companys effective tax rate on earnings from continuing operations for the year ended December31, 2009, was 30.6percent as compared with 33.8percent and 32.8percent in 2008 and 2007, respectively (excluding for 2008 the non-cash, non-deductible goodwill impairment charge of $3.1billion at Aerospace Systems and Shipbuilding). The companys effective tax rates reflect tax credits, manufacturing deductions and the impact of settlements with the Internal Revenue Service (IRS). During 2009, the company reached a final settlement with the IRS regarding its audit of the companys tax returns for the years ended December31, 2001 through 2003 and recognized $75million of net benefit upon settlement, including $20million of interest. During 2008, the company reached a final settlement with the IRS regarding its audit of the TRW tax returns for the years ended 1999 through 2002 and recognized $35million of benefit upon settlement, including $4million of interest. During 2007, the company reached a partial settlement agreement with the IRS regarding its audit of the companys tax years ended December31, 2001 through 2003 and recognized $22million of benefit upon settlement, including $6million of interest. Income tax expense, both federal and foreign, consisted of the following: YearEndedDecember31 $ in millions 2009 2008 2007 Income Taxes on Continuing Operations Currently payable Federal income taxes $ 527 $ 728 $ 627 Foreign income taxes 34 35 42 Total federal and foreign income taxes currently payable 561 763 669 Change in deferred federal and foreign income taxes 132 96 186 Total federal and foreign income taxes $ 693 $ 859 $ 855 The geographic source of earnings (loss) from continuing operations before income taxes is as follows: YearEndedDecember31 $ in millions 2009 2008 2007 Domestic income (loss) $ 2,140 $ (622 ) $ 2,515 Foreign income 126 102 91 Income (loss) from continuing operations before income taxes $ 2,266 $ (520 ) $ 2,606 Income tax expense differs from the amount computed by multiplying the statutory federal income tax rate times the earnings (loss) from continuing operations before income taxes due to the following: YearEndedDecember31 $ in millions 2009 2008 2007 Income tax (benefit) expense on continuing operations at statutory rate $ 793 $(183 ) $ 912 Goodwill impairment 1,071 Manufacturing deduction (24 )

Notes Payable to Banks and Long

Notes Payable to Banks and Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES PAYABLE TO BANKS AND LONG-TERM DEBT [Abstract]
13. NOTES PAYABLE TO BANKS AND LONG-TERM DEBT	13. NOTESPAYABLE TO BANKS AND LONG-TERM DEBT Lines of Credit The company has available uncommitted short-term credit lines in the form of money market facilities with several banks. The amount and conditions for borrowing under these credit lines depend on the availability and terms prevailing in the marketplace. No fees or compensating balances are required for these credit facilities. Credit Facility The company has a revolving credit facility in an aggregate principal amount of $2billion that matures on August10, 2012. The credit facility permits the company to request additional lending commitments of up to $500million from the lenders under the agreement or other eligible lenders under certain circumstances. The agreement provides for swingline loans and letters of credit as sub-facilities for the credit facilities provided for in the agreement. Borrowings under the credit facility bear interest at various rates, including the London Interbank Offered Rate, adjusted based on the companys credit rating, or an alternate base rate plus an incremental margin. The credit facility also requires a facility fee based on the daily aggregate amount of commitments (whether or not utilized) and the companys credit rating level, and contains a financial covenant relating to a maximum debt to capitalization ratio, and certain restrictions on additional asset liens. There were no borrowings during 2009 and a maximum of $300million borrowed under this facility during 2008. There was no balance outstanding under this facility at December31, 2009, and 2008. As of December31, 2009, the company was in compliance with all covenants. Gulf Opportunity Zone Industrial Development Revenue Bonds As of December31, 2009 and 2008, Shipbuilding had $200million outstanding from the issuance of Gulf Opportunity Zone Industrial Development Revenue Bonds issued by the Mississippi Business Finance Corporation. These bonds accrue interest at a fixed rate of 4.55percent per annum (payable semi-annually), and repayment of principal and interest is guaranteed by the company. In accordance with the terms of the bonds, the proceeds have been used to finance the construction, reconstruction, and renovation of the companys interest in certain ship manufacturing and repair facilities, or portions thereof, located in the state of Mississippi. Debt Issuance In July 2009, the company issued $350million of 5-year and $500million of 10-year unsecured senior obligations. Interest on the notes is payable semi-annually in arrears at fixed rates of 3.70percent and 5.05percent per annum, and the notes will mature on August1, 2014, and August1, 2019, respectively. These senior notes are subject to redemption at the companys discretion at any time prior to maturity in whole or in part at the principal amount plus any make-whole premium and accrued and unpaid interest. The net proceeds from these notes are being used for general corporate purposes including debt repayment, acquisitions, share repurchases, pension plan funding, and working capital. On October15, 2009, a portion of the net proceeds was used to retire $400million of 8percent senior debt that had m

Litigation

Litigation
	12 Months Ended Dec. 31, 2009 USD / shares
LITIGATION [Abstract]
14. LITIGATION	14. LITIGATION U.S.Government Investigations and Claims Departments and agencies of the U.S.Government have the authority to investigate various transactions and operations of the company, and the results of such investigations may lead to administrative, civil or criminal proceedings, the ultimate outcome of which could be fines, penalties, repayments or compensatory or treble damages. U.S.Government regulations provide that certain findings against a contractor may lead to suspension or debarment from future U.S.Government contracts or the loss of export privileges for a company or an operating division or subdivision. Suspension or debarment could have a material adverse effect on the company because of its reliance on government contracts. In the second quarter of 2007, the U.S.Coast Guard issued a revocation of acceptance under the Deepwater Program for eight converted 123-foot patrol boats (the vessels) based on alleged hull buckling and shaft alignment problems and alleged nonconforming topside equipment on the vessels. The company submitted a written response that argued that the revocation of acceptance was improper. The Coast Guard advised Integrated Coast Guard Systems, LLC (ICGS), which was formed by the contractors to perform the Deepwater Program, that it was seeking $96.1million from ICGS as a result of the revocation of acceptance. The majority of the costs associated with the 123-foot conversion effort are associated with the alleged structural deficiencies of the vessels, which were converted under contracts with the company and a subcontractor to the company. In 2008, the Coast Guard advised ICGS that the Coast Guard would support an investigation by the U.S.Department of Justice of ICGS and its subcontractors instead of pursuing its $96.1million claim independently. The Department of Justice conducted an investigation of ICGS under a sealed False Claims Act complaint filed in the U.S.District Court for the Northern District of Texas and decided in early 2009 not to intervene at that time. On February12, 2009, the Court unsealed the complaint filed by Michael J. DeKort, a former Lockheed Martin employee, against ICGS, Lockheed Martin Corporation and the company, relating to the 123-foot conversion effort. On July22, 2009, the three defendants moved to dismiss the complaint. On October2, 2009, the Court set a trial date of November1, 2010. Based upon the information available to the company to date, the company believes that it has substantive defenses to any potential claims but can give no assurance that the company will prevail in this litigation. In August 2008, the company disclosed to the Antitrust Division of the U.S.Department of Justice possible violations of federal antitrust laws in connection with the bidding process for certain maintenance contracts at a military installation in California. In February 2009, the company and the Department of Justice signed an agreement admitting the company into the Corporate Leniency Program. As a result of the companys acceptance into the Program, the company will be exempt from federal criminal prosecution and criminal fines relating to the matters

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENCIES [Abstract]
15. COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Contract Performance Contingencies Contract profit margins may include estimates of revenues not contractually agreed to between the customer and the company for matters such as contract changes, settlements in the process of negotiation, claims and requests for equitable adjustment for previously unanticipated contract costs. These estimates are based upon managements best assessment of the underlying causal events and circumstances, and are included in determining contract profit margins to the extent of expected recovery based on contractual entitlements and the probability of successful negotiation with the customer. As of December31, 2009, the amounts related to the aforementioned items are not material individually or in the aggregate. Guarantees of Subsidiary Performance Obligations From time to time in the ordinary course of business, the company guarantees performance obligations of its subsidiaries under certain contracts. In addition, the companys subsidiaries may enter into joint ventures, teaming and other business arrangements (Business Arrangements) to support the companys products and services in domestic and international markets. The company generally strives to limit its exposure under these arrangements to its subsidiarys investment in the Business Arrangement, or to the extent of such subsidiarys obligations under the applicable contract. In some cases, however, the company may be required to guarantee performance by the Business Arrangement and, in such cases, the company generally obtains cross-indemnification from the other members of the Business Arrangement. At December31, 2009, the company is not aware of any existing event of default that would require it to satisfy any of these guarantees. Environmental Matters The estimated cost to complete remediation has been accrued where it is probable that the company will incur such costs in the future to address environmental impacts at currently or formerly owned or leased operating facilities, or at sites where it has been named a Potentially Responsible Party (PRP) by the Environmental Protection Agency, or similarly designated by other environmental agencies. These accruals do not include any litigation costs related to environmental matters, nor do they include amounts recorded as asset retirement obligations. To assess the potential impact on the companys consolidated financial statements, management estimates the range of reasonably possible remediation costs that could be incurred by the company, taking into account currently available facts on each site as well as the current state of technology and prior experience in remediating contaminated sites. These estimates are reviewed periodically and adjusted to reflect changes in facts and technical and legal circumstances. Management estimates that as of December31, 2009, the range of reasonably possible future costs for environmental remediation sites is $239million to $483million, of which $115million is accrued in other current liabilities and $168million is accrued in other long-term liabilities. Factors that could result in changes to the companys est

Retirement Benefits

Retirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
RETIREMENT BENEFITS [Abstract]
16. RETIREMENT BENEFITS	16. RETIREMENT BENEFITS Plan Descriptions Defined Benefit Pension Plans The company sponsors several defined benefit pension plans in the U.S.covering the majority of its employees. Pension benefits for most employees are based on the employees years of service and compensation. It is the policy of the company to fund at least the minimum amount required for all qualified plans, using actuarial cost methods and assumptions acceptable under U.S.Government regulations, by making payments into benefit trusts separate from the company. The pension benefit for most employees is based upon criteria whereby employees earn age and service points over their employment period. Defined Contribution Plans The company also sponsors 401(k) defined contribution plans in which most employees are eligible to participate, as well as certain bargaining unit employees. Company contributions for most plans are based on a cash matching of employee contributions up to 4percent of compensation. Certain hourly employees are covered under a target benefit plan. The company also participates in a multiemployer plan for certain of the companys union employees. In addition to the 401(k) defined contribution benefit, non-union represented employees hired after June30, 2008, are eligible to participate in a defined contribution program in lieu of a defined benefit pension plan. The companys contributions to these defined contribution plans for the years ended December31, 2009, 2008, and 2007, were $341million, $311million, and $294million, respectively. Non-U.S.Benefit Plans The company sponsors several benefit plans for non-U.S.employees. These plans are designed to provide benefits appropriate to local practice and in accordance with local regulations. Some of these plans are funded using benefit trusts that are separate from the company. Medical and Life Benefits The company provides a portion of the costs for certain health care and life insurance benefits for a substantial number of its active and retired employees. Covered employees achieve eligibility to participate in these contributory plans upon retirement from active service if they meet specified age and years of service requirements. Qualifying dependents are also eligible for medical coverage. Approximately 65percent of the companys current retirees participate in the medical plans. The company reserves the right to amend or terminate the plans at any time. In November 2006, the company adopted plan amendments and communicated to plan participants that it would cap the amount of its contributions to substantially all of its remaining post retirement medical and life benefit plans that were previously not subject to limits on the companys contributions. In addition to a medical inflation cost-sharing feature, the plans also have provisions for deductibles, co-payments, coinsurance percentages, out-of-pocket limits, conformance to a schedule of reasonable fees, the use of managed care providers, and maintenance of benefits with other plans. The plans also provide for a Medicare carve-out, and a maximum lifetime benefit of $2million per covered individual. Subsequent to

Stock Compensation Plans

Stock Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
STOCK COMPENSATION PLANS [Abstract]
17. STOCK COMPENSATION PLANS	17. STOCK COMPENSATION PLANS Plan Descriptions At December31, 2009, Northrop Grumman had stock-based compensation awards outstanding under the following plans: the 2001 Long-Term Incentive Stock Plan (2001 LTISP), the 1993 Long-Term Incentive Stock Plan (1993 LTISP), both applicable to employees, and the 1993 Stock Plan for Non-Employee Directors (1993 SPND) and 1995 Stock Plan for Non-Employee Directors (1995 SPND) as amended. All of these plans were approved by the companys shareholders. The company has historically issued new shares to satisfy award grants. Employee Plans The 2001 LTISP and the 1993 LTISP permit grants to key employees of three general types of stock incentive awards: stock options, stock appreciation rights (SARs), and stock awards. Each stock option grant is made with an exercise price either at the closing price of the stock on the date of grant (market options) or at a premium over the closing price of the stock on the date of grant (premium options). Outstanding stock options granted prior to 2009 generally vest in 25percent increments over four years from the grant date under the 2001 LTISP and in years two to five under the 1993 LTISP, and grants outstanding expire ten years after the grant date. Stock options granted in 2009 vest in 33percent increments over three years from the grant date, and grants outstanding expire seven years after the grant date. No SARs have been granted under either of the LTISPs and effective with the adoption of the 2001 LTISP, no new grants have been issued from the 1993 LTISP. Stock awards, in the form of restricted performance stock rights and restricted stock rights, are granted to key employees without payment to the company. Under the 2001 LTISP, recipients of restricted performance stock rights earn shares of stock, based on financial metrics determined by the board of directors in accordance with the plan. For grants prior to 2007, if the objectives have not been met at the end of the applicable performance period, up to 100percent of the original grant for the eight highest compensated employees and up to 70percent of the original grant for all other recipients will be forfeited. If the financial metrics are met or exceeded during the performance period, all recipients can earn up to 150percent of the original grant. Beginning in 2007, all members of the Corporate Policy Council (consisting of the CEO and certain other leadership positions) could forfeit up to 100percent of the original grant, and all recipients could earn up to 200percent of the original grant. Restricted stock rights issued under either plan generally vest after three years. Termination of employment can result in forfeiture of some or all of the benefits extended. Of the 50million shares approved for issuance under the 2001 LTISP, approximately 13million shares were available for future grants as of December31, 2009. Non-Employee Plans Under the 1993 SPND, at least half of the retainer fee earned by each director must be deferred into a stock unit account (Automatic Stock Units). Effective January1, 2010, the amended SPND provides that the Automatic Stock Units be award

Unaudited Selected Quarterly Da

Unaudited Selected Quarterly Data
	12 Months Ended Dec. 31, 2009 USD / shares
UNAUDITED SELECTED QUARTERLY DATA [Abstract]
18. UNAUDITED SELECTED QUARTERLY DATA	18. UNAUDITED SELECTED QUARTERLY DATA Unaudited quarterly financial results are set forth in the following tables. The financial results for all periods presented have been revised to reflect the various business dispositions that occurred during the 2009 and 2008 fiscal years (see Note5 for further details). The companys common stock is traded on the New York Stock Exchange (trading symbol NOC). This unaudited quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ended on March31, second quarter as ended on June30, and third quarter as ended on September30. It is the companys long-standing practice to establish actual interim closing dates using a fiscal calendar, which requires the businesses to close their books on a Friday, in order to normalize the potentially disruptive effects of quarterly closings on business processes. The effects of this practice only exist within a reporting year. 2009 $ in millions, except per share 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Sales and services revenues as previously reported $ 8,320 $ 8,957 $ 8,726 Discontinued operations (385 ) (412 ) (376 ) Sales and services revenues $ 7,935 $ 8,545 $ 8,350 $ 8,925 Operating income as previously reported $ 655 $ 653 $ 655 Discontinued operations (36 ) (39 ) (36 ) Operating income $ 619 $ 614 $ 619 $ 631 Earnings from continuing operations as previously reported $ 389 $ 394 $ 487 Discontinued operations (23 ) (26 ) (23 ) Earnings from continuing operations $ 366 $ 368 $ 464 $ 375 Net earnings $ 389 $ 394 $ 490 $ 413 Basic earnings per share from continuing operations as previously reported $ 1.19 $ 1.22 $ 1.54 Discontinued operations (0.07 ) (0.08 ) (0.08 ) Basic earnings per share from continuing operations $ 1.12 $ 1.14 $ 1.46 $ 1.20 Basic earnings per share $ 1.19 $ 1.22 $ 1.55 $ 1.32 Diluted earnings per

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Valuation and Qualifying Accounts [Abstract]
Schedule II - Valuation and Qualifying Accounts	Schedule Of Valuation And Qualifying Accounts Disclosure SCHEDULEII VALUATION AND QUALIFYING ACCOUNTS ($ in millions) Balance at Changes Balance at Beginning Additions Add End Description of Period At Cost (Deduct) of Period Year ended December31, 2007(2) Reserves and allowances deducted from asset accounts(1) Allowances for doubtful amounts $ 304 $ 124 $ (143 ) $ 285 Valuation allowance on deferred tax assets 1,300 3 (711 ) 592 Year ended December31, 2008(2) Reserves and allowances deducted from asset accounts(1) Allowances for doubtful amounts $ 285 $ 121 $ (106 ) $ 300 Valuation allowance on deferred tax assets 592 (559 ) 33 Year ended December31, 2009(2) Reserves and allowances deducted from asset accounts(1) Allowances for doubtful amounts $ 300 $ 222 $ (198 ) $ 324 Valuation allowance on deferred tax assets 33 (33 ) (1) Uncollectible amounts written off, net of recoveries. (2) Certain prior-period information has been reclassified to conform to the current years presentation.