Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 87

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 2
Chunk 87
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, fixed-price, development, production, and/or sustainment).

Segment Operating Income and Margin Rate 

Segment operating income, as reconciled in the table below, and segment operating margin rate (segment operating income divided by sales) are non-GAAP measures that reflect the combined operating income of our four segments less the operating income associated with intersegment sales. Segment operating income includes pension expense allocated to our sectors under FAR and CAS and excludes FAS pension service expense and unallocated corporate items (certain corporate-level expenses, which are not considered allowable or allocable under applicable FAR and CAS requirements, and costs not considered part of management’s evaluation of segment operating performance). These non-GAAP measures may be useful to investors and other users of our financial statements as supplemental measures in evaluating the financial performance and operational trends of our sectors. These measures may not be defined and calculated by other companies in the same manner and should not be considered in isolation or as alternatives to operating results presented in accordance with GAAP. 

Three Months Ended June 30%Six Months Ended June 30%$ in millions20252024Change20252024ChangeOperating income$1,425 $1,090 31 %$1,998 $2,161 (8)%Operating margin rate13.8 %10.7 %10.1 %10.6 %Reconciliation to segment operating income:CAS pension expense(117)(65)80 %(234)(131)79 %FAS pension service expense54 59 (8)%108 119 (9)%FAS/CAS operating adjustment(63)(6)950 %(126)(12)950 %Gain on sale of business(231)— NM(231)— NMTraining services divestiture - unallowable state taxes and transaction costs19 — NM20 — NMIntangible asset amortization and PP&E step-up depreciation21 24 (13)%42 49 (14)%Other unallocated corporate expense (income)48 (7)NM84 7 1,100 %Unallocated corporate (income) expense(143)17 NM(85)56 NMSegment operating income$1,219 $1,101 11 %$1,787 $2,205 (19)%Segment operating margin rate11.8 %10.8 %9.0 %10.8 %

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