Company: NOC
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001133421-25-000023
Chunk: 55

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 months ended March 31, 2025 and 2024 that was included in the contract liability balances at the beginning of each year was $1.9 billion.Disaggregation of RevenueSee Note 10 for information regarding the company’s sales by customer type, contract type and geographic region for each of our segments. We believe those categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Property, Plant, and EquipmentNon-cash investing activities for the three months ended March 31, 2025 and 2024 include capital expenditures incurred but not yet paid of $44 million and $63 million, respectively.

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

Pending Divestiture of Training Services BusinessOn January 29, 2025, the company entered into a definitive agreement to sell substantially all of the Immersive Mission Solutions (IMS) operating unit of Defense Systems for $327 million in cash. IMS is a provider of mission training and satellite ground network communications software for U.S. government customers. The transaction, which is subject to final government approvals and closing conditions, is expected to be completed mid-year 2025. The carrying amounts of the major classes of assets and liabilities of the IMS business were classified as held for sale and included in Prepaid and other current assets and Other current liabilities, respectively, in the condensed consolidated statement of financial position as of March 31, 2025. We expect to recognize an after-tax gain of approximately $150 million when the transaction closes.Accumulated Other Comprehensive LossThe components of accumulated other comprehensive loss, net of tax, are as follows:$ in millionsMarch 31, 2025December 31, 2024Cumulative translation adjustment$(138)$(140)Other, net(4)(12)Total accumulated other comprehensive loss$(142)$(152)Related Party TransactionsFor all periods presented, the company had no material related party transactions.Accounting Standards UpdatesOn December 14, 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU