Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 70

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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uations are appropriate, the company utilizes the income approach to determine the fair value using internal models based on observable market inputs.The following table presents the financial assets and liabilities the company records at fair value on a recurring basis identified by the level of inputs used to determine fair value: June 30, 2025December 31, 2024$ in millionsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3TotalFinancial AssetsMarketable securities$343 $— $64 $407 $325 $— $14 $339 Marketable securities valued using NAV6 8 Total marketable securities343 — 64 413 325 — 14 347 Derivatives— 9 — 9 — (11)— (11)The notional value of the company’s foreign currency forward contracts at June 30, 2025 and December 31, 2024 was $335 million and $399 million, respectively. The portion of notional value designated as a cash flow hedge at June 30, 2025 and December 31, 2024 was $236 million and $273 million, respectively.The derivative fair values and related unrealized gains/losses at June 30, 2025 and December 31, 2024 were not material. There were no transfers of financial instruments into or out of Level 3 of the fair value hierarchy during the six months ended June 30, 2025.The carrying value of cash and cash equivalents and commercial paper approximates fair value.Long-term DebtThe estimated fair value of the company’s long-term debt was $14.9 billion and $15.3 billion as of June 30, 2025 and December 31, 2024, respectively. We calculated the fair value of long-term debt using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements. The current portion of long-term debt is recorded in Other current liabilities in the unaudited condensed consolidated statements of financial position.Issuance of Senior NotesIn May 2025, the company issued $1.0 billion of unsecured senior notes for general corporate purposes, including debt repayment, share repurchases, and working capital, as follows:•$500 million of 4.65% senior notes due 2030 (the “2030 Notes”) and•$500 million of 5.25