Northrop Grumman (NOC) 10-Q 29 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	NORTHROP GRUMMAN CORP /DE/
Entity Central Index Key	1,133,421
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	Q2
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 Common Stock, Shares Outstanding		187,392,516

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales
Product	$ 3,509	$ 3,564	$ 6,938	$ 6,972
Service	2,387	2,475	4,915	4,915
Total sales	5,896	6,039	11,853	11,887
Operating costs and expenses
Product	2,568	2,668	5,110	5,201
Service	1,874	1,961	3,874	3,889
General and administrative expenses	641	590	1,276	1,132
Operating income	813	820	1,593	1,665
Other (expense) income
Interest expense	(75)	(70)	(151)	(139)
Other, net	(2)	6	(2)	16
Earnings before income taxes	736	756	1,440	1,542
Federal and foreign income tax expense	205	245	425	452
Net earnings	$ 531	$ 511	$ 1,015	$ 1,090
Basic earnings per share
Basic earnings per share	$ 2.77	$ 2.41	$ 5.21	$ 5.09
Weighted-average common shares outstanding, in millions	191.8	212.4	194.8	214.3
Diluted earnings per share
Diluted earnings per share	$ 2.74	$ 2.37	$ 5.15	$ 5.01
Weighted-average diluted shares outstanding, in millions	193.7	215.2	197.1	217.7
Net earnings (from above)	$ 531	$ 511	$ 1,015	$ 1,090
Change in unamortized benefit plan costs, net of tax	96	35	192	96
Change in cumulative translation adjustment	13	0	(16)	2
Other, net	0	0	(1)	0
Other comprehensive income, net of tax	109	35	175	98
Comprehensive income	$ 640	$ 546	$ 1,190	$ 1,188

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 1,907	$ 3,863
Accounts receivable, net	3,151	2,806
Inventoried costs, net	856	742
Deferred tax assets	386	404
Prepaid expenses and other current assets	160	369
Total current assets	6,460	8,184
Property, plant and equipment, net of accumulated depreciation of $4,728 in 2015 and $4,611 in 2014	3,005	2,991
Goodwill	12,464	12,466
Non-current deferred tax assets	1,383	1,622
Other non-current assets	1,240	1,309
Total assets	24,552	26,572
Liabilities
Trade accounts payable	1,246	1,305
Accrued employee compensation	1,097	1,441
Advance payments and amounts in excess of costs incurred	1,370	1,713
Other current liabilities	1,441	1,433
Total current liabilities	5,154	5,892
Long-term debt, net of current portion	6,417	5,925
Pension and other post-retirement benefit plan liabilities	5,871	6,555
Other non-current liabilities	939	965
Total liabilities	$ 18,381	$ 19,337
Commitments and contingencies
Shareholders’ equity
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding	$ 0	$ 0
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2015—188,381,212 and 2014—198,930,240	188	199
Paid-in capital	0	0
Retained earnings	11,164	12,392
Accumulated other comprehensive loss	(5,181)	(5,356)
Total shareholders’ equity	6,171	7,235
Total liabilities and shareholders’ equity	$ 24,552	$ 26,572

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accumulated depreciation	$ (4,728)	$ (4,611)
Preferred Stock, par value	$ 1	$ 1
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	800,000,000	800,000,000
Common Stock, shares issued	188,381,212	198,930,240
Common Stock, shares outstanding	188,381,212	198,930,240

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Net earnings	$ 1,015	$ 1,090
Adjustments to reconcile to net cash (used in) provided by operating activities:
Depreciation and amortization	216	217
Stock-based compensation	47	51
Excess tax benefits from stock-based compensation	(106)	(74)
Deferred income taxes	139	21
Changes in assets and liabilities:
Accounts receivable, net	(344)	(577)
Inventoried costs, net	(117)	(33)
Prepaid expenses and other assets	48	(23)
Accounts payable and other liabilities	(870)	(588)
Income taxes payable	314	103
Retiree benefits	(378)	8
Other, net	8	(25)
Net cash (used in) provided by operating activities	(28)	170
Investing activities
Capital expenditures	(232)	(176)
Other investing activities, net	(2)	(72)
Net cash used in investing activities	(234)	(248)
Financing activities
Common stock repurchases	(1,916)	(1,301)
Net proceeds from issuance of long-term debt	600	0
Cash dividends paid	(309)	(280)
Other financing activities, net	(69)	(15)
Net cash used in financing activities	(1,694)	(1,596)
Decrease in cash and cash equivalents	(1,956)	(1,674)
Cash and cash equivalents, beginning of year	3,863	5,150
Cash and cash equivalents, end of period	$ 1,907	$ 3,476

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common stock	Paid-in capital	Retained earnings	Accumulated other comprehensive loss
Beginning of year at Dec. 31, 2013		$ 218	$ 848	$ 12,538	$ (2,984)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock repurchased		(11)	(896)	(398)
Net earnings	$ 1,090			1,090
Dividends declared				(285)
Stock compensation		2	37	0
Other			11
Other comprehensive income, net of tax	98				98
End of period at Jun. 30, 2014	$ 10,268	209	0	12,945	(2,886)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared per share	$ 1.31
Beginning of year at Dec. 31, 2014	$ 7,235	199	0	12,392	(5,356)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock repurchased		(12)	0	(1,933)
Net earnings	1,015			1,015
Dividends declared				(297)
Stock compensation		1	0	(13)
Other			0
Other comprehensive income, net of tax	175				175
End of period at Jun. 30, 2015	$ 6,171	$ 188	$ 0	$ 11,164	$ (5,181)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared per share	$ 1.5

Basis of Presentation (Unaudite

Basis of Presentation (Unaudited)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Principles of Consolidation and Reporting These unaudited condensed consolidated financial statements include the accounts of Northrop Grumman Corporation and subsidiaries (herein referred to as "Northrop Grumman," the "company," "we," "us," or "our"). Material intercompany accounts, transactions and profits are eliminated in consolidation. Investments in equity securities and joint ventures where the company has significant influence, but not control, are accounted for using the equity method. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with the rules of the Securities and Exchange Commission (SEC) for interim reporting purposes. These financial statements include adjustments of a normal recurring nature considered necessary by management for a fair presentation of the company's unaudited condensed consolidated financial position, results of operations and cash flows. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the information contained in the company’s 2014 Annual Report on Form 10-K. The quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March 31, second quarter as ending on June 30 and third quarter as ending on September 30. It is the company's long-standing practice to establish actual interim closing dates using a “fiscal” calendar, in which we close our books on a Friday near these quarter-end dates in order to normalize the potentially disruptive effects of quarterly closings on business processes. This practice is only used at interim periods within a reporting year. Accounting Estimates The accompanying unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation thereof requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of sales and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates. Revenue Recognition The majority of our sales are derived from long-term contracts with the United States (U.S.) Government for the production of goods, the provision of services, or in some cases, a combination of both. In accounting for these contracts, we utilize either the cost-to-cost or the units-of-delivery method of percentage-of-completion accounting, with cost-to-cost being the predominant method. The company estimates profit on contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit either as costs are incurred (cost-to-cost) or as units are delivered (units-of-delivery). The company classifies sales as product or service depending upon the predominant attributes of the contract. We recognize changes in estimated contract sales, costs or profits using the cumulative catch-up method of accounting. This method recognizes, in the current period, the cumulative effect of the changes on current and prior periods; sales and profit in future periods of contract performance are recognized as if the revised estimates had been used since contract inception. If it is determined that a loss will result from the performance of a contract, the entire amount of the estimable future loss is charged against income in the period the loss is identified. Loss provisions are first offset against any costs that are included in unbilled accounts receivable or inventoried costs, and any remaining amount is reflected in liabilities. Significant changes in estimates on a single contract could have a material effect on the company's unaudited condensed consolidated financial position or results of operations. Where such changes occur, we generally disclose the nature, underlying conditions and financial impact of the change. No discrete event or adjustments to an individual contract were material to the accompanying unaudited condensed consolidated financial statements. The effect of aggregate net changes in contract estimates recognized using the cumulative catch-up method of accounting is as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions, except per share data 2015 2014 2015 2014 Operating Income $ 162 $ 165 $ 349 $ 362 Net Earnings (1) 105 107 227 235 Diluted earnings per share (1) 0.54 0.50 1.15 1.08 (1) Based on statutory tax rates As of June 30, 2015 , the recognized amounts related to contract claims and requests for equitable adjustment are not material individually or in aggregate. In addition, as of June 30, 2015 , the company does not have any contract terminations in process that we anticipate would have a material effect on our unaudited condensed consolidated financial position, or our annual results of operations and/or cash flows. Related Party Transactions For all periods presented, the company had no material related party transactions. Accounting Standards Updates On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition guidance, including Accounting Standards Codification (ASC) No. 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. ASU 2014-09 outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. These concepts, as well as other aspects of ASU 2014-09, may change the method and/or timing of revenue recognition for certain of our contracts. On July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09 to January 1, 2018. ASU 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. We are currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the company’s consolidated financial position, annual results of operations and cash flows. Other accounting standards updates effective after June 30, 2015 , are not expected to have a material effect on the company’s unaudited condensed consolidated financial position, annual results of operations and/or cash flows. Shareholders' Equity The company records the difference between the cost of shares repurchased and their par value as well as tax withholding in excess of related stock compensation expense as a reduction of paid-in capital to the extent available and then as a reduction of retained earnings. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: $ in millions June 30, December 31, Unamortized benefit plan costs, net of tax benefit of $3,276 as of June 30, 2015 and $3,395 as of December 31, 2014 $ (5,124 ) $ (5,316 ) Cumulative translation adjustment (57 ) (41 ) Net unrealized gain on marketable securities and cash flow hedges, net of tax — 1 Total accumulated other comprehensive loss $ (5,181 ) $ (5,356 ) Unamortized benefit plan costs consist primarily of net after-tax actuarial losses totaling $5.4 billion and $5.6 billion as of June 30, 2015 and December 31, 2014 , respectively. Net actuarial gains or losses are re-determined annually or upon remeasurement events and principally arise from changes in the interest rate used to discount our benefit obligations and differences between expected and actual returns on plan assets. Reclassifications from accumulated other comprehensive income to net earnings related to the amortization of benefit plan costs were $96 million and $192 million , net of taxes, for the three and six months ended June 30, 2015 , respectively, and were $35 million and $73 million , net of taxes, for the three and six months ended June 30, 2014 , respectively. The reclassifications represent the amortization of net actuarial losses and prior service credits for the company's retirement benefit plans, and are included in the computation of net periodic pension cost (See Note 8 for further information). Reclassifications from accumulated other comprehensive income to net earnings, relating to cumulative translation adjustments, marketable securities and effective cash flow hedges for the three and six months ended June 30, 2015 and 2014 , respectively, were not material. Reclassifications for cumulative translation adjustments and marketable securities are recorded in other income, and reclassifications for effective cash flow hedges are recorded in operating income.

Earnings Per Share, Share Repur

Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK	EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK Basic Earnings Per Share We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period. Diluted Earnings Per Share Diluted earnings per share includes the dilutive effect of awards granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 1.9 million shares and 2.3 million shares for the three and six months ended June 30, 2015 , respectively. The dilutive effect of these securities totaled 2.8 million and 3.4 million for the three and six months ended June 30, 2014 , respectively. The weighted-average diluted shares outstanding would exclude stock options with exercise prices in excess of the average market price of the company's common stock during the period; however, we had no such stock options outstanding for the three and six months ended June 30, 2015 and 2014 . Share Repurchases The table below summarizes the company’s share repurchases: Shares Repurchased Repurchase Program Authorization Date Amount Total Shares Retired (in millions) Average (3) Date Completed Six Months Ended June 30 2015 2014 May 15, 2013 (1) $ 4,000 32.8 $ 121.97 March 2015 2.7 10.9 December 4, 2014 (2) $ 3,000 9.4 $ 160.34 9.4 — (1) On May 15, 2013, the company's board of directors authorized a share repurchase program of up to $4.0 billion of the company's common stock (2013 Repurchase Program). Repurchases under the 2013 Repurchase Program commenced in September 2013. (2) On December 4, 2014, the company's board of directors authorized a new share repurchase program of up to an additional $3.0 billion of the company's common stock (2014 Repurchase Program). Repurchases under the 2014 Repurchase Program commenced in March 2015 upon the completion of the company's 2013 Repurchase Program. As of June 30, 2015 , repurchases under the 2014 Repurchase Program totaled $1.5 billion and there was $1.5 billion remaining under this share repurchase authorization. By its terms, the 2014 Repurchase Program will expire when we have used all authorized funds for repurchases. (3) Includes commissions paid. Share repurchases take place from time to time, subject to market conditions and management's discretion, in the open market or in privately negotiated transactions. The company retires its common stock upon repurchase and has not made any purchases of common stock other than in connection with these publicly announced repurchase programs. Dividends on Common Stock In May 2015, the company increased the quarterly common stock dividend 14 percent to $0.80 per share from the previous amount of $0.70 per share. In May 2014, the company increased the quarterly common stock dividend 15 percent to $0.70 per share from the previous amount of $0.61 per share.

Segment Information (Unaudited)

Segment Information (Unaudited)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The company is aligned into four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. The company, from time to time, acquires or disposes of businesses and realigns contracts, programs or business areas among and within our segments. Portfolio shaping and internal realignments are designed to more fully leverage existing capabilities and enhance development and delivery of products and services. The following table presents sales and operating income by segment: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2015 2014 2015 2014 Sales Aerospace Systems $ 2,512 $ 2,502 $ 5,010 $ 4,922 Electronic Systems 1,683 1,744 3,364 3,388 Information Systems 1,485 1,562 3,059 3,139 Technical Services 720 732 1,490 1,429 Intersegment eliminations (504 ) (501 ) (1,070 ) (991 ) Total sales 5,896 6,039 11,853 11,887 Operating income Aerospace Systems 322 290 637 614 Electronic Systems 265 291 512 559 Information Systems 150 153 316 315 Technical Services 67 68 135 136 Intersegment eliminations (62 ) (60 ) (123 ) (125 ) Total segment operating income 742 742 1,477 1,499 Reconciliation to total operating income: Net FAS/CAS pension adjustment 81 110 164 220 Unallocated corporate expenses (9 ) (31 ) (47 ) (53 ) Other (1 ) (1 ) (1 ) (1 ) Total operating income $ 813 $ 820 $ 1,593 $ 1,665 Net FAS/CAS Pension Adjustment The net FAS (GAAP Financial Accounting Standards)/CAS (U.S. Government Cost Accounting Standards) pension adjustment reflects the difference between pension expense charged to contracts and included as cost in segment operating income and pension expense determined in accordance with GAAP. The decrease in net FAS/CAS pension adjustment for the three and six months ended June 30, 2015 , as compared to the same periods in 2014 , is principally due to an increase in FAS expense, as a result of changes in our FAS discount rate and mortality assumptions as of December 31, 2014. The increase in FAS expense was partially offset by higher CAS expense resulting from updated mortality assumptions. Unallocated Corporate Expenses Unallocated corporate expenses include the portion of corporate expenses not considered allowable or allocable under applicable CAS or the Federal Acquisition Regulation , and are therefore not allocated to the segments. Such costs consist of a portion of management and administration, legal, environmental, compensation costs, retiree benefits and certain unallowable costs such as lobbying activities, among others. The decrease in unallocated corporate expenses for the three months ended June 30, 2015, as compared to the same period in 2014, is principally due to a reduction in reserves for overhead costs. Unallocated corporate expenses for the six months ended June 30, 2015, were comparable to the same period in 2014.

Income Taxes (Unaudited)

Income Taxes (Unaudited)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Three Months Ended June 30 Six Months Ended June 30 $ in millions 2015 2014 2015 2014 Federal and foreign income tax expense $ 205 $ 245 $ 425 $ 452 Effective income tax rate 27.9 % 32.4 % 29.5 % 29.3 % Current Quarter The company's effective tax rate for the three months ended June 30, 2015 was lower than the comparable 2014 period primarily due to a $38 million net benefit recognized in 2015 for additional research credits claimed on prior year tax returns. Year to Date The company's effective tax rate for the six months ended June 30, 2015 was comparable with the same period in 2014 and reflects the $38 million net benefit recognized in 2015 for additional research credits and a $51 million benefit recorded in 2014 for the partial resolution of the Internal Revenue Service (IRS) examination of our 2007-2009 tax returns. The company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. Certain matters related to our 2007-2011 tax returns are currently before the IRS Office of Appeals. The company believes it is reasonably possible that within the next twelve months we may settle certain matters on these open tax years. The combined resolution of these items, excluding interest, could result in a reduction of our unrecognized tax benefits up to $75 million and a reduction of our income tax expense up to $40 million . Open tax years related to state and foreign jurisdictions remain subject to examination, but are not considered material.

Fair Value of Financial Instrum

Fair Value of Financial Instruments (Unaudited)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents comparative carrying value and fair value information for our financial assets and liabilities: June 30, 2015 December 31, 2014 $ in millions Carrying Value Fair Value Carrying Value Fair Value Financial Assets (Liabilities) Marketable securities Trading $ 321 $ 321 $ 331 $ 331 Available-for-sale 5 5 5 5 Derivatives 4 4 1 1 Long-term debt, including current portion $ (6,527 ) $ (6,997 ) $ (5,928 ) $ (6,726 ) There were no transfers of financial instruments between the three levels of fair value hierarchy during the six months ended June 30, 2015 . The carrying value of cash and cash equivalents approximates fair value. Investments in Marketable Securities The company holds a portfolio of marketable securities to partially fund non-qualified employee benefit plans consisting of securities that are classified as either trading or available-for-sale. These assets are recorded at fair value on a recurring basis and substantially all of these instruments are valued using Level 1 inputs, with an immaterial amount valued using Level 2 inputs. As of June 30, 2015 and December 31, 2014 , marketable securities of $326 million and $336 million , respectively, were included in other non-current assets in the unaudited condensed consolidated statements of financial position. Derivative Financial Instruments and Hedging Activities The company's derivative portfolio consists primarily of foreign currency forward contracts. The notional value of the company's derivative portfolio at June 30, 2015 and December 31, 2014 , was $139 million and $146 million , respectively. The portion of notional value designated as cash flow hedges at June 30, 2015 and December 31, 2014 , was $18 million and $34 million , respectively. Derivative financial instruments are recognized as assets or liabilities in the unaudited condensed consolidated financial statements and measured at fair value on a recurring basis. Substantially all of these instruments are valued using Level 2 inputs. Where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value and uses the applicable London Interbank Offered Rate (LIBOR) swap rates. Unrealized gains or losses on the effective portion of cash flow hedges are reclassified from other comprehensive income to operating income upon the recognition of the underlying hedged transaction. Hedge contracts not designated for hedge accounting and the ineffective portion of cash flow hedges are recorded in other income. The derivative fair values and related unrealized gains/losses at June 30, 2015 and December 31, 2014 , were not material. Long-term Debt The fair value of long-term debt is calculated using Level 2 inputs based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements. Debt Issuance In February 2015, the company issued $600 million of unsecured senior notes due April 15, 2045 with a fixed interest rate of 3.85 percent (the Notes). Interest on the Notes is payable semi-annually in arrears. The Notes are subject to redemption at the company's discretion at any time, or from time to time, prior to maturity in whole or in part at the greater of the principal amount of the Notes or an applicable "make-whole" amount, plus accrued and unpaid interest. We are using the net proceeds from this offering for general corporate purposes, including the funding of a $500 million voluntary contribution to our pension plans in the first quarter of 2015 and debt repayment.

Investigations, Claims and Liti

Investigations, Claims and Litigation (Unaudited)	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block Supplement [Abstract]
INVESTIGATIONS, CLAIMS AND LITIGATION	INVESTIGATIONS, CLAIMS AND LITIGATION Litigation On May 4, 2012, the company commenced an action, Northrop Grumman Systems Corp. v. United States , in the U.S. Court of Federal Claims. This lawsuit relates to an approximately $875 million firm fixed price contract awarded to the company in 2007 by the U.S. Postal Service (USPS) for the construction and delivery of flats sequencing systems (FSS) as part of the postal automation program. The FSS have been delivered. The company's lawsuit is based on various theories of liability. The complaint seeks approximately $63 million for unpaid portions of the contract price, and approximately $115 million based on the company's assertions that, through various acts and omissions over the life of the contract, the USPS adversely affected the cost and schedule of performance and materially altered the company's obligations under the contract. The United States responded to the company's complaint with an answer, denying most of the company's claims and counterclaims, seeking approximately $410 million , less certain amounts outstanding under the contract. The principal counterclaim alleges that the company delayed its performance and caused damages to the USPS because USPS did not realize certain costs savings as early as it had expected. On April 2, 2013, the U.S. Department of Justice informed the company of a False Claims Act complaint relating to the FSS contract that was filed under seal by a relator in June 2011 in the U.S. District Court for the Eastern District of Virginia. On June 3, 2013, the United States filed a Notice informing the Court that the United States had decided not to intervene in this case. The relator alleged that the company violated the False Claims Act in a number of ways with respect to the FSS contract, alleged damage to the USPS in an amount of at least approximately $179 million annually, alleged that he was improperly discharged in retaliation, and sought an unspecified partial refund of the contract purchase price, penalties, attorney's fees and other costs of suit. The relator later voluntarily dismissed his retaliation claim and reasserted it in a separate arbitration, which he also ultimately voluntarily dismissed. On September 5, 2014, the court granted the company’s motion for summary judgment and ordered the relator’s False Claims Act case be dismissed with prejudice. On December 19, 2014, the company filed a motion for partial summary judgment asking the court to dismiss the principal counterclaim referenced above. On June 29, 2015, the Court heard argument and denied that motion without prejudice to filing a later motion to dismiss. Although the ultimate outcome of these matters ("the FSS matters," collectively), including any possible loss, cannot be predicted or estimated at this time, the company intends vigorously to pursue and defend the FSS matters. On August 8, 2013, the company received a court-appointed expert's report in litigation pending in the Second Federal Court of the Federal District in Brazil brought by the Brazilian Post and Telegraph Corporation (ECT), a Brazilian state-owned entity, against Solystic SAS (Solystic), a French subsidiary of the company, and two of its consortium partners. In this suit, commenced on December 17, 2004, and relatively inactive for some period of time, ECT alleges the consortium breached its contract with ECT and seeks damages of approximately R$111 million (the equivalent of approximately $35 million as of June 30, 2015 ), plus interest, inflation adjustments and attorneys’ fees, as authorized by Brazilian law, which amounts could be significant over time. The original suit sought R$89 million (the equivalent of approximately $28 million as of June 30, 2015 ) in damages. In October 2013, ECT asserted an additional damage claim of R$22 million (the equivalent of approximately $7 million as of June 30, 2015 ). In its counterclaim, Solystic alleges ECT breached the contract by wrongfully refusing to accept the equipment Solystic had designed and built and seeks damages of approximately €31 million (the equivalent of approximately $34 million as of June 30, 2015 ), plus interest, inflation adjustments and attorneys’ fees, as authorized by Brazilian law. The Brazilian court retained an expert to consider certain issues pending before it. On August 8, 2013 and September 10, 2014, the company received reports from the expert, which contain some recommended findings relating to liability and the damages calculations put forth by ECT. Some of the expert's recommended findings were favorable to the company and others were favorable to ECT. In November 2014, the parties submitted comments on the expert's most recent report. On June 16, 2015, the court published a decision denying the parties’ request to present oral testimony. At some future point, the court is expected to issue a decision on the parties’ claims and counterclaims that could accept or reject, in whole or in part, the expert’s recommended findings. The company is one of several defendants in litigation brought by the Orange County Water District in Orange County Superior Court in California on December 17, 2004, for alleged contribution to volatile organic chemical contamination of the County's shallow groundwater. The lawsuit includes counts against the defendants for violation of the Orange County Water District Act, the California Super Fund Act, negligence, nuisance, trespass and declaratory relief. Among other things, the lawsuit seeks unspecified damages for the cost of remediation, payment of attorney fees and costs, and punitive damages. Trial on the statutory claims (those based on the Orange County Water District Act, the California Super Fund Act and declaratory relief) concluded on September 25, 2012. On October 29, 2013, the court issued its decision in favor of the defendants on the statutory claims. On May 9, 2014, the court granted defendants' dispositive motions on the remaining tort causes of action. Notice of entry of judgment was filed on July 1, 2014. The Orange County Water District filed a notice of appeal on August 28, 2014. We expect the Court of Appeals will soon establish a revised deadline for the Orange County Water District opening brief, likely in August. The company is a party to various investigations, lawsuits, claims and other legal proceedings, including government investigations and claims, that arise in the ordinary course of our business. The nature of legal proceedings is such that we cannot assure the outcome of any particular matter. However, based on information available to the company to date, and other than with respect to the FSS matters discussed separately above, the company does not believe that the outcome of any matter pending against the company is likely to have a material adverse effect on the company's unaudited condensed consolidated financial position as of June 30, 2015 , or its annual results of operations or cash flows.

Commitments and Contingencies (

Commitments and Contingencies (Unaudited)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Guarantees of Subsidiary Performance Obligations From time to time in the ordinary course of business, the company guarantees obligations of its subsidiaries under certain contracts. Generally, the company is liable under such an arrangement only if its subsidiary is unable to perform under its contract. Historically, the company has not incurred any substantial liabilities resulting from these guarantees. In addition, the company’s subsidiaries may enter into joint ventures, teaming and other business arrangements (collectively, Business Arrangements) to support our products and services in domestic and international markets. The company generally strives to limit its exposure under these arrangements to its subsidiary’s investment in the Business Arrangements or to the extent of such subsidiary’s obligations under the applicable contract. In some cases, however, we may be required to guarantee performance by the Business Arrangements and, in such cases, the company generally strives to obtain cross-indemnification from the other members of the Business Arrangements. At June 30, 2015 , the company is not aware of any existing event of default that would require it to satisfy any of these guarantees. U.S. Government Cost Claims From time to time, the company is advised of claims by the U.S. Government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and the U.S. Government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the company’s estimated exposure for matters raised by the U.S. Government. Such provisions are reviewed periodically using the most recent information available. The company believes it has adequately reserved for disputed amounts that are probable and estimable, and the outcome of any such matters would not have a material adverse effect on its unaudited condensed consolidated financial position as of June 30, 2015 , or its annual results of operations and/or cash flows. Environmental Matters The estimated cost to complete remediation at certain current or formerly owned or leased sites has been accrued where the company believes, based on the facts and circumstances known to the company, it is probable we will incur costs to address environmental impacts and the costs are reasonably estimable. As of June 30, 2015 , management estimates the range of reasonably possible future costs for environmental remediation is between $359 million and $802 million , before considering the amount recoverable through overhead charges on U.S. Government contracts. At June 30, 2015 , the amount within that range accrued for probable environmental remediation costs was $374 million , of which $131 million is recorded in other current liabilities and $243 million is recorded in other non-current liabilities. A portion of the environmental remediation costs is expected to be recoverable through overhead charges on U.S. Government contracts and, accordingly, such amounts are deferred in inventoried costs and other non-current assets. As of June 30, 2015 , $65 million is deferred in inventoried costs and $123 million is deferred in other non-current assets. These amounts are evaluated for recoverability on a routine basis. Although management cannot predict whether new information gained as our environmental remediation projects progress, or as changes in facts and circumstances occur, will materially affect the estimated liability accrued, we do not anticipate future remediation expenditures associated with our currently identified projects will have a material adverse effect on the company's unaudited condensed consolidated financial position as of June 30, 2015 , or its annual results of operations and/or cash flows. Financial Arrangements In the ordinary course of business, the company uses standby letters of credit and guarantees issued by commercial banks and surety bonds issued principally by insurance companies to guarantee the performance on certain obligations. At June 30, 2015 , there were $241 million of stand-by letters of credit and guarantees and $158 million of surety bonds outstanding. Indemnifications The company has retained certain environmental, income tax and other potential liabilities in connection with certain of its divestitures. The settlement of these liabilities is not expected to have a material adverse effect on the company’s unaudited condensed consolidated financial position as of June 30, 2015 , or its annual results of operations and/or cash flows. Operating Leases Rental expense for operating leases for the three and six months ended June 30, 2015 , was $76 million and $157 million , respectively, and was $73 million and $145 million for the three and six months ended June 30, 2014 , respectively. These amounts are net of immaterial amounts of sublease rental income. Credit Facility In July 2015, the company amended its $1.775 billion five-year credit facility dated August 29, 2013 by reducing the aggregate principal amount available under the facility to $1.6 billion and extending the maturity to July 2020 (the 2015 Credit Agreement) . The 2015 Credit Agreement contains generally customary terms and conditions, including covenants restricting the company's ability to sell all or substantially all of its assets, merge or consolidate with another entity or undertake other fundamental changes and incur liens. The company also generally cannot permit the ratio of its debt to capitalization (as set forth in the 2015 Credit Agreement) to exceed 65 percent .

Retirement Benefits (Unaudited)

Retirement Benefits (Unaudited)	6 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
RETIREMENT BENEFITS	RETIREMENT BENEFITS The cost to the company of its retirement plans is shown in the following table: Three Months Ended June 30 Six Months Ended June 30 Pension Medical and Pension Medical and $ in millions 2015 2014 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost Service cost $ 121 $ 115 $ 9 $ 9 $ 242 $ 229 $ 18 $ 17 Interest cost 306 315 23 24 612 630 47 50 Expected return on plan assets (493 ) (468 ) (23 ) (21 ) (987 ) (935 ) (45 ) (42 ) Amortization of: Prior service credit (15 ) (15 ) (7 ) (13 ) (30 ) (30 ) (14 ) (20 ) Net loss from previous years 170 82 8 4 341 164 14 6 Net periodic benefit cost $ 89 $ 29 $ 10 $ 3 $ 178 $ 58 $ 20 $ 11 Employer Contributions The company sponsors defined benefit pension and post-retirement plans, as well as defined contribution plans. We fund our defined benefit pension plans annually in a manner consistent with the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006. Additionally, in the first quarter of 2015, we made a voluntary pension contribution of $500 million . Contributions made by the company to its retirement plans are as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2015 2014 2015 2014 Defined benefit pension plans $ 19 $ 18 $ 544 $ 39 Post-retirement benefit plans 19 19 25 26 Defined contribution plans 65 74 150 147

Stock Compensation Plans and Ot

Stock Compensation Plans and Other Compensation Arrangements (Unaudited)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS	STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS Stock Awards In February 2015 , the company granted certain employees 0.2 million restricted stock rights (RSRs) and 0.4 million restricted performance stocks rights (RPSRs) under the company's long-term incentive stock plan, with a grant date aggregate fair value of $87 million . The RSRs will typically vest on the third anniversary of the grant date, while the RPSRs will vest and pay out based on the achievement of financial metrics for the three -year period ending December 31, 2017 . Cash Awards In February 2015 , the company granted certain employees cash units (CUs) and cash performance units (CPUs) with a minimum aggregate payout amount of $34 million and a maximum aggregate payout amount of $190 million . The CUs will vest and settle in cash on the third anniversary of the grant date, while the CPUs will vest and settle in cash based on the achievement of financial metrics for the three -year period ending December 31, 2017 .

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation and Reporting These unaudited condensed consolidated financial statements include the accounts of Northrop Grumman Corporation and subsidiaries (herein referred to as "Northrop Grumman," the "company," "we," "us," or "our"). Material intercompany accounts, transactions and profits are eliminated in consolidation. Investments in equity securities and joint ventures where the company has significant influence, but not control, are accounted for using the equity method.
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements are prepared in accordance with the rules of the Securities and Exchange Commission (SEC) for interim reporting purposes. These financial statements include adjustments of a normal recurring nature considered necessary by management for a fair presentation of the company's unaudited condensed consolidated financial position, results of operations and cash flows. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the information contained in the company’s 2014 Annual Report on Form 10-K.
Fiscal Period Policy	The quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March 31, second quarter as ending on June 30 and third quarter as ending on September 30. It is the company's long-standing practice to establish actual interim closing dates using a “fiscal” calendar, in which we close our books on a Friday near these quarter-end dates in order to normalize the potentially disruptive effects of quarterly closings on business processes. This practice is only used at interim periods within a reporting year.
Accounting Estimates	Accounting Estimates The accompanying unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation thereof requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of sales and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates.
Revenue Recognition	The majority of our sales are derived from long-term contracts with the United States (U.S.) Government for the production of goods, the provision of services, or in some cases, a combination of both. In accounting for these contracts, we utilize either the cost-to-cost or the units-of-delivery method of percentage-of-completion accounting, with cost-to-cost being the predominant method. The company estimates profit on contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit either as costs are incurred (cost-to-cost) or as units are delivered (units-of-delivery). The company classifies sales as product or service depending upon the predominant attributes of the contract. We recognize changes in estimated contract sales, costs or profits using the cumulative catch-up method of accounting. This method recognizes, in the current period, the cumulative effect of the changes on current and prior periods; sales and profit in future periods of contract performance are recognized as if the revised estimates had been used since contract inception. If it is determined that a loss will result from the performance of a contract, the entire amount of the estimable future loss is charged against income in the period the loss is identified. Loss provisions are first offset against any costs that are included in unbilled accounts receivable or inventoried costs, and any remaining amount is reflected in liabilities. Significant changes in estimates on a single contract could have a material effect on the company's unaudited condensed consolidated financial position or results of operations. Where such changes occur, we generally disclose the nature, underlying conditions and financial impact of the change.
Description of New Accounting Pronouncements Not yet Adopted	On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition guidance, including Accounting Standards Codification (ASC) No. 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. ASU 2014-09 outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. These concepts, as well as other aspects of ASU 2014-09, may change the method and/or timing of revenue recognition for certain of our contracts. On July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09 to January 1, 2018. ASU 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. We are currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the company’s consolidated financial position, annual results of operations and cash flows. Other accounting standards updates effective after
Stockholders' Equity	The company records the difference between the cost of shares repurchased and their par value as well as tax withholding in excess of related stock compensation expense as a reduction of paid-in capital to the extent available and then as a reduction of retained earnings.
Pension and Other Postretirement Plans	Net actuarial gains or losses are re-determined annually or upon remeasurement events and principally arise from changes in the interest rate used to discount our benefit obligations and differences between expected and actual returns on plan assets. We fund our defined benefit pension plans annually in a manner consistent with the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006.
Comprehensive Income	Reclassifications for cumulative translation adjustments and marketable securities are recorded in other income, and reclassifications for effective cash flow hedges are recorded in operating income.
Earnings Per Share	We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share includes the dilutive effect of awards granted to employees under stock-based compensation plans.
Investments in Marketable Securities	Investments in Marketable Securities The company holds a portfolio of marketable securities to partially fund non-qualified employee benefit plans consisting of securities that are classified as either trading or available-for-sale. These assets are recorded at fair value on a recurring basis and substantially all of these instruments are valued using Level 1 inputs, with an immaterial amount valued using Level 2 inputs.
Derivative Financial Instruments and Hedging Activities	Hedge contracts not designated for hedge accounting and the ineffective portion of cash flow hedges are recorded in other income. The derivative fair values and related unrealized gains/losses at June 30, 2015 and December 31, 2014 , were not material. Derivative financial instruments are recognized as assets or liabilities in the unaudited condensed consolidated financial statements and measured at fair value on a recurring basis. Substantially all of these instruments are valued using Level 2 inputs. Where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value and uses the applicable London Interbank Offered Rate (LIBOR) swap rates. Unrealized gains or losses on the effective portion of cash flow hedges are reclassified from other comprehensive income to operating income upon the recognition of the underlying hedged transaction.
Fair Value of Long-term Debt	Long-term Debt The fair value of long-term debt is calculated using Level 2 inputs based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements.
Guarantees of Subsidiary Performance Obligations	Guarantees of Subsidiary Performance Obligations From time to time in the ordinary course of business, the company guarantees obligations of its subsidiaries under certain contracts. Generally, the company is liable under such an arrangement only if its subsidiary is unable to perform under its contract. Historically, the company has not incurred any substantial liabilities resulting from these guarantees. In addition, the company’s subsidiaries may enter into joint ventures, teaming and other business arrangements (collectively, Business Arrangements) to support our products and services in domestic and international markets. The company generally strives to limit its exposure under these arrangements to its subsidiary’s investment in the Business Arrangements or to the extent of such subsidiary’s obligations under the applicable contract. In some cases, however, we may be required to guarantee performance by the Business Arrangements and, in such cases, the company generally strives to obtain cross-indemnification from the other members of the Business Arrangements.
U.S. Government Cost Claims	U.S. Government Cost Claims From time to time, the company is advised of claims by the U.S. Government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and the U.S. Government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the company’s estimated exposure for matters raised by the U.S. Government. Such provisions are reviewed periodically using the most recent information available.
Environmental Matters	A portion of the environmental remediation costs is expected to be recoverable through overhead charges on U.S. Government contracts and, accordingly, such amounts are deferred in inventoried costs and other non-current assets. These amounts are evaluated for recoverability on a routine basis. Environmental Matters The estimated cost to complete remediation at certain current or formerly owned or leased sites has been accrued where the company believes, based on the facts and circumstances known to the company, it is probable we will incur costs to address environmental impacts and the costs are reasonably estimable.

Basis of Presentation (Unaudi17

Basis of Presentation (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Change in Accounting Estimate [Table Text Block]	The effect of aggregate net changes in contract estimates recognized using the cumulative catch-up method of accounting is as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions, except per share data 2015 2014 2015 2014 Operating Income $ 162 $ 165 $ 349 $ 362 Net Earnings (1) 105 107 227 235 Diluted earnings per share (1) 0.54 0.50 1.15 1.08 (1) Based on statutory tax rates
Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss are as follows: $ in millions June 30, December 31, Unamortized benefit plan costs, net of tax benefit of $3,276 as of June 30, 2015 and $3,395 as of December 31, 2014 $ (5,124 ) $ (5,316 ) Cumulative translation adjustment (57 ) (41 ) Net unrealized gain on marketable securities and cash flow hedges, net of tax — 1 Total accumulated other comprehensive loss $ (5,181 ) $ (5,356 )

Earnings Per Share, Share Rep18

Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Share Repurchases	The table below summarizes the company’s share repurchases: Shares Repurchased Repurchase Program Authorization Date Amount Total Shares Retired (in millions) Average (3) Date Completed Six Months Ended June 30 2015 2014 May 15, 2013 (1) $ 4,000 32.8 $ 121.97 March 2015 2.7 10.9 December 4, 2014 (2) $ 3,000 9.4 $ 160.34 9.4 — (1) On May 15, 2013, the company's board of directors authorized a share repurchase program of up to $4.0 billion of the company's common stock (2013 Repurchase Program). Repurchases under the 2013 Repurchase Program commenced in September 2013. (2) On December 4, 2014, the company's board of directors authorized a new share repurchase program of up to an additional $3.0 billion of the company's common stock (2014 Repurchase Program). Repurchases under the 2014 Repurchase Program commenced in March 2015 upon the completion of the company's 2013 Repurchase Program. As of June 30, 2015 , repurchases under the 2014 Repurchase Program totaled $1.5 billion and there was $1.5 billion remaining under this share repurchase authorization. By its terms, the 2014 Repurchase Program will expire when we have used all authorized funds for repurchases. (3) Includes commissions paid.

Segment Information (Unaudite19

Segment Information (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Sales and operating income by segment	The following table presents sales and operating income by segment: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2015 2014 2015 2014 Sales Aerospace Systems $ 2,512 $ 2,502 $ 5,010 $ 4,922 Electronic Systems 1,683 1,744 3,364 3,388 Information Systems 1,485 1,562 3,059 3,139 Technical Services 720 732 1,490 1,429 Intersegment eliminations (504 ) (501 ) (1,070 ) (991 ) Total sales 5,896 6,039 11,853 11,887 Operating income Aerospace Systems 322 290 637 614 Electronic Systems 265 291 512 559 Information Systems 150 153 316 315 Technical Services 67 68 135 136 Intersegment eliminations (62 ) (60 ) (123 ) (125 ) Total segment operating income 742 742 1,477 1,499 Reconciliation to total operating income: Net FAS/CAS pension adjustment 81 110 164 220 Unallocated corporate expenses (9 ) (31 ) (47 ) (53 ) Other (1 ) (1 ) (1 ) (1 ) Total operating income $ 813 $ 820 $ 1,593 $ 1,665

Income Taxes (Unaudited) (Table

Income Taxes (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense and Effective Income Tax Rates	Three Months Ended June 30 Six Months Ended June 30 $ in millions 2015 2014 2015 2014 Federal and foreign income tax expense $ 205 $ 245 $ 425 $ 452 Effective income tax rate 27.9 % 32.4 % 29.5 % 29.3 %

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair value information of assets and liabilities measured at fair value on a recurring basis	The following table presents comparative carrying value and fair value information for our financial assets and liabilities: June 30, 2015 December 31, 2014 $ in millions Carrying Value Fair Value Carrying Value Fair Value Financial Assets (Liabilities) Marketable securities Trading $ 321 $ 321 $ 331 $ 331 Available-for-sale 5 5 5 5 Derivatives 4 4 1 1 Long-term debt, including current portion $ (6,527 ) $ (6,997 ) $ (5,928 ) $ (6,726 )

Retirement Benefits (Unaudite22

Retirement Benefits (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost	The cost to the company of its retirement plans is shown in the following table: Three Months Ended June 30 Six Months Ended June 30 Pension Medical and Pension Medical and $ in millions 2015 2014 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost Service cost $ 121 $ 115 $ 9 $ 9 $ 242 $ 229 $ 18 $ 17 Interest cost 306 315 23 24 612 630 47 50 Expected return on plan assets (493 ) (468 ) (23 ) (21 ) (987 ) (935 ) (45 ) (42 ) Amortization of: Prior service credit (15 ) (15 ) (7 ) (13 ) (30 ) (30 ) (14 ) (20 ) Net loss from previous years 170 82 8 4 341 164 14 6 Net periodic benefit cost $ 89 $ 29 $ 10 $ 3 $ 178 $ 58 $ 20 $ 11
Employer contributions to retirement plans	Contributions made by the company to its retirement plans are as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2015 2014 2015 2014 Defined benefit pension plans $ 19 $ 18 $ 544 $ 39 Post-retirement benefit plans 19 19 25 26 Defined contribution plans 65 74 150 147

Basis of Presentation (Unaudi23

Basis of Presentation (Unaudited) (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accumulated Other Comprehensive Loss
Unamortized benefit plan costs, net of tax benefit of $3,276 as of June 30, 2015 and $3,395 as of December 31, 2014	$ (5,124)		$ (5,124)		$ (5,316)
Cumulative translation adjustment	(57)		(57)		(41)
Net unrealized gain on marketable securities and cash flow hedges, net of tax	0		0		1
Total accumulated other comprehensive loss	(5,181)		(5,181)		(5,356)
Unamortized benefit plan costs - Tax Benefit (expense)	3,276		3,276		3,395
Unamortized benefit plan costs, net actuarial losses, after-tax	5,400		5,400		$ 5,600
Unamortized benefit plan costs, reclassified from other comprehensive income to net earnings	$ 96	$ 35	$ 192	$ 73

Basis of Presentation (Unaudi24

Basis of Presentation (Unaudited) (Details 2) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Change in Accounting Estimate [Line Items]
Operating Income (Loss)	$ 813	$ 820	$ 1,593	$ 1,665
Net earnings	$ 531	$ 511	$ 1,015	$ 1,090
Diluted earnings per share	$ 2.74	$ 2.37	$ 5.15	$ 5.01
Contracts Accounted for under Percentage of Completion [Member]
Change in Accounting Estimate [Line Items]
Operating Income (Loss)	$ 162	$ 165	$ 349	$ 362
Net earnings	$ 105	$ 107	$ 227	$ 235
Diluted earnings per share	$ 0.54	$ 0.50	$ 1.15	$ 1.08

Earnings Per Share, Share Rep25

Earnings Per Share, Share Repurchases and Dividends on Common Stock #1 (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended		7 Months Ended	26 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2015	Dec. 04, 2014	May. 15, 2013
May 2013 Share Repurchase Program Original Authorization
Share Repurchase [Line Items]
Amount Authorized						$ 4,000
Total Shares Retired				32.8
Average Cost Per Share				$ 121.97
Shares Repurchased	2.7	10.9
December 2014 Share Repurchase Original Authorization [Domain]
Share Repurchase [Line Items]
Amount Authorized					$ 3,000
Total Shares Retired			9.4
Average Cost Per Share			$ 160.34
Shares Repurchased	9.4	0
Share Repurchases - Notes to Table
Shares repurchased amount	$ 1,500		$ 1,500	$ 1,500
Amount remaining under authorization for share repurchases	$ 1,500		$ 1,500	$ 1,500

Earnings Per Share, Share Rep26

Earnings Per Share, Share Repurchases and Dividends on Common Stock #2 (Unaudited) (Details) - $ / shares shares in Millions	1 Months Ended			3 Months Ended		6 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share, Basic and Diluted [Abstract]
Dilutive effect of of stock awards and options granted to employees under stock-based compensation plans				1.9	2.8	2.3	3.4
Anti-dilutive stock options excluded from computation of earnings per share				0	0	0	0
Common stock dividends per share, declared (in dollars per share)	$ 0.80	$ 0.70	$ 0.61			$ 1.5	$ 1.31
Increase in quarterly common stock dividend (percent)	14.00%	15.00%

Segment Information (Unaudite27

Segment Information (Unaudited) (Details 1) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			4
Sales	$ 5,896	$ 6,039	$ 11,853	$ 11,887
Operating income	813	820	1,593	1,665
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	742	742	1,477	1,499
Operating Segments [Member] | Aerospace Systems [Member]
Segment Reporting Information [Line Items]
Sales	2,512	2,502	5,010	4,922
Operating income	322	290	637	614
Operating Segments [Member] | Electronic Systems [Member]
Segment Reporting Information [Line Items]
Sales	1,683	1,744	3,364	3,388
Operating income	265	291	512	559
Operating Segments [Member] | Information Systems [Member]
Segment Reporting Information [Line Items]
Sales	1,485	1,562	3,059	3,139
Operating income	150	153	316	315
Operating Segments [Member] | Technical Services [Member]
Segment Reporting Information [Line Items]
Sales	720	732	1,490	1,429
Operating income	67	68	135	136
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	504	501	1,070	991
Operating income	62	60	123	125
Net FAS/CAS pension adjustment Income (Expense) [Member]
Segment Reporting Information [Line Items]
Operating income	81	110	164	220
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating income	(9)	(31)	(47)	(53)
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Operating income	$ (1)	$ (1)	$ (1)	$ (1)

Income Taxes (Unaudited) (Detai

Income Taxes (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2016
Income Tax Contingency [Line Items]
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount			$ 38
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ (75)		(75)
Income Tax Expense (Benefit)	$ 205	$ 245	$ 425	$ 452
Effective income tax rate	27.90%	32.40%	29.50%	29.30%
Tax Adjustments, Settlements, and Unusual Provisions			$ 51
Maximum | Scenario, Forecast [Member]
Income Tax Contingency [Line Items]
Tax Adjustments, Settlements, and Unusual Provisions					$ (40)

Fair Value of Financial Instr29

Fair Value of Financial Instruments #1 (Unaudited) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Carrying Value
Marketable Securities
Trading securities	$ 321	$ 331
Available-for-sale securities	5	5
Derivatives	4	1
Long-term debt, including current portion	(6,527)	(5,928)
Fair Value
Marketable Securities
Trading securities	321	331
Available-for-sale securities	5	5
Derivatives	4	1
Long-term debt, including current portion	$ (6,997)	$ (6,726)

Fair Value of Financial Instr30

Fair Value of Financial Instruments #2 (Unaudited) (Details) - USD ($) $ in Millions	1 Months Ended
	Feb. 28, 2015	Jun. 30, 2015	Dec. 31, 2014
Investments in Marketable Securities [Abstract]
Marketable Securities, Noncurrent		$ 326	$ 336
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, Notional Amount		139	146
Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Face Amount	$ 600
Thirty Year Term [Member] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.85%
Thirty Year Term [Member] | April 45 Maturity [Domain] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Maturity Date	Apr. 15, 2045
Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, Notional Amount		$ 18	$ 34

Fair Value of Financial Instr31

Fair Value of Financial Instruments #3 (Unaudited) (Details) - Pension Plan [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributions by Employer	$ 19	$ 18	$ 544	$ 39
Voluntary Contributions [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributions by Employer			$ 500

Investigations, Claims and Li32

Investigations, Claims and Litigation (Unaudited) (Details) € in Millions, BRL in Millions, $ in Millions	Aug. 08, 2013Defendant	Dec. 31, 2007USD ($)	Jun. 30, 2015EUR (€)	Jun. 30, 2015BRL	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	May. 04, 2012USD ($)
Loss Contingencies
Receivables, unpaid long-term contracts					$ 3,151	$ 2,806
Claims asserted, range of possible loss, maximum					802
United States Postal Service
Loss Contingencies
Claims asserted, range of possible loss, maximum					410
Unpaid Portions of Contract Price and Direct Costs Incurred [Member] | United States Postal Service
Loss Contingencies
Receivables, unpaid long-term contracts							$ 63
Solystic Matter [Member] | Solystic Matter [Member]
Loss Contingencies
Gain contingency, unrecorded amount			€ 31		34
Acts and Omissions with Adverse Affects on Performance and Obligations [Member] | United States Postal Service
Loss Contingencies
Gain contingency, unrecorded amount							$ 115
United States Postal Service
Loss Contingencies
Contract award		$ 875
United States Postal Service | False Claims Act | Threatened Litigation
Loss Contingencies
Loss contingency, estimate of possible loss					179
Solystic Matter [Member] | Solystic Matter [Member]
Loss Contingencies
Loss contingency, estimate of possible loss				BRL 111	35
Loss Contingency, Number of Additional Defendants | Defendant	2
Initial Claim [Member] | Solystic Matter [Member] | Solystic Matter [Member]
Loss Contingencies
Loss contingency, estimate of possible loss				89	28
Incremental claim [Member] | Solystic Matter [Member] | Solystic Matter [Member]
Loss Contingencies
Loss contingency, estimate of possible loss				BRL 22	$ 7

Commitments and Contingencies33

Commitments and Contingencies (Unaudited) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jul. 31, 2015	Aug. 29, 2013
Site Contingency [Line Items]
Low-end of the range of reasonably possible future costs for environmental remediation sites	$ 359	$ 359		$ 359
High-end of the range of reasonably possible future costs for environmental remediation sites	802	802		802
Accrual for Environmental Remediation Costs	374	374		374
Financial Arrangements
Standby Unused Letters Of Credit and bank guarantees	241	241		241
Surety Bond Outstanding	$ 158	158		158
Operating leases
Rental expense for operating leases, net of immaterial amounts of sublease rental income		76	$ 73	157	$ 145
Revolving Credit Facility [Member] | Five Year Term [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 1,775
Credit Facility, Covenant Terms, Maximum Debt to Capitalization Ratio	65.00%
Subsequent Event [Member] | Revolving Credit Facility [Member] | Five Year Term [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						$ 1,600
Other Current Liabilities [Member]
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs	$ 131	131		131
Other Noncurrent Liabilities [Member]
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs	243	243		243
Inventoried Costs [Member]
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs	65	65		65
Other Noncurrent Assets [Member]
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs	$ 123	$ 123		$ 123

Retirement Benefits (Unaudite34

Retirement Benefits (Unaudited) (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined contribution plan, employer contributions	$ 65	$ 74	$ 150	$ 147
Pension Benefits
Components of Net Periodic Benefit Cost
Service cost	121	115	242	229
Interest cost	306	315	612	630
Expected return on plan assets	(493)	(468)	(987)	(935)
Amortization of:
Prior service credit	(15)	(15)	(30)	(30)
Net loss from previous years	170	82	341	164
Net periodic benefit cost	89	29	178	58
Defined Benefit Plan, Expected Contributions in Current Fiscal Year [Abstract]
Defined benefit plan, contributions by Employer	19	18	544	39
Medical and Life Benefits
Components of Net Periodic Benefit Cost
Service cost	9	9	18	17
Interest cost	23	24	47	50
Expected return on plan assets	(23)	(21)	(45)	(42)
Amortization of:
Prior service credit	(7)	(13)	(14)	(20)
Net loss from previous years	8	4	14	6
Net periodic benefit cost	10	3	20	11
Defined Benefit Plan, Expected Contributions in Current Fiscal Year [Abstract]
Defined benefit plan, contributions by Employer	$ 19	$ 19	25	$ 26
Voluntary Contributions [Member] | Pension Benefits
Defined Benefit Plan, Expected Contributions in Current Fiscal Year [Abstract]
Defined benefit plan, contributions by Employer			$ 500

Stock Compensation Plans and 35

Stock Compensation Plans and Other Compensation Arrangements (Unaudited) (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	6 Months Ended
	Feb. 28, 2015	Jun. 30, 2015
Restricted Stock Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	0.2
Vesting period		3 years
Restricted Performance Stock Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	0.4
Vesting period		3 years
Restricted Stock Rights and Restricted Performance Stock Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to unvested awards	$ 87
Cash Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Cash Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Cash Units and Cash Performance Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to unvested awards	34
Cash Units and Cash Performance Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to unvested awards	$ 190