Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 23

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 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% senior notes due 2035 (the “2035 Notes”).In January 2024, the company issued $2.5 billion of unsecured senior notes for general corporate purposes, including debt repayment, share repurchases, and working capital, as follows:•$500 million of 4.60% senior notes due 2029 (the “2029 Notes”),•$850 million of 4.90% senior notes due 2034 (the “2034 Notes”), and•$1.15 billion of 5.20% senior notes due 2054 (the “2054 Notes”).We refer to the 2029 Notes, 2030 Notes,