Company: NOC
Filing Date: 2025-01-30
Form Type: 10-K
Source: 0001133421-25-000006
Chunk: 88

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-01-30
Form: 10-K
Item: Item 7
Chunk 88
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benefit) expense(443)422 (1,232)NMNMMTM-related deferred state tax expense (benefit)(1)23 (22)65 NMNMFederal tax expense (benefit) of items above(2)88 (84)245 NMNMMTM adjustment, net of tax(332)316 (922)NMNMMTM-adjusted net earnings$3,842 $2,372 $3,974 62 %(40)%

(1)The deferred state tax impact in each period was calculated using the company’s blended state tax rate of 5.25 percent and is included in Unallocated corporate expense within operating income. 

(2)The federal tax impact in each period was calculated by subtracting the deferred state tax impact from MTM benefit (expense) and applying the 21 percent federal statutory rate. 

2024 net earnings increased $2.1 billion, or 103 percent, primarily due to $1.8 billion of higher operating income, an $865 million increase in our MTM benefit (expense), and a $126 million increase in the non-operating FAS pension benefit. These increases were partially offset by a $552 million increase in income tax expense, a $97 million gain 

-31-

NORTHROP GRUMMAN CORPORATION                        

recognized in the prior year upon the sale of our minority investment in an Australian business, and $76 million of higher interest expense on our long-term debt.

Diluted Earnings Per Share

The table below reconciles diluted earnings per share to MTM-adjusted EPS:

 Year Ended December 31% Change in20242023202220242023Diluted earnings per share$28.34 $13.53 $31.47 109 %(57)%MTM (benefit) expense per share(3.02)2.78 (7.92)NMNMMTM-related deferred state tax expense (benefit) per share(1)0.16 (0.14)0.42 NMNMFederal tax expense (benefit) of items above per share(2)0.60 (0.56)1.57 NMNMMTM adjustment per share, net of tax(2.26)2.08 (5.93)NMNMMTM-adjusted EPS$26.08 $15.61 $25.54 67 %(