Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 74

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 30, 2025 and December 31, 2024:$ in millionsAccrued Costs(1)(2)Reasonably Possible Future Costs in Excess of Accrued Costs(2)Deferred Costs(3)June 30, 2025$555 $394 $516 December 31, 2024546 377 507 (1) As of June 30, 2025, $187 million is recorded in Other current liabilities and $368 million is recorded in Other non-current liabilities.(2) Estimated remediation costs are not discounted to present value. The reasonably possible future costs in excess of accrued costs do not take into consideration amounts expected to be recoverable through overhead charges on U.S. government contracts.(3) As of June 30, 2025, $176 million is deferred in Prepaid expenses and other current assets and $340 million is deferred in Other non-current assets. These amounts are evaluated for recoverability on a routine basis.Although management cannot predict whether (i) new information gained as our environmental remediation projects progress, (ii) changes in remediation standards or other requirements to which we are subject, or (iii) other changes in facts and circumstances will materially affect the estimated liability accrued, we do not anticipate that future remediation expenditures associated with our currently identified projects will have a material adverse effect on the company’s unaudited condensed consolidated financial position as of June 30, 2025, or its annual results of operations and/or cash flows.Financial ArrangementsIn the ordinary course of business, the company uses standby letters of credit and guarantees issued by commercial banks and surety bonds issued principally by insurance companies to guarantee the performance on certain obligations. At June 30, 2025, there were $619 million of stand-by letters of credit and guarantees and $269 million of surety bonds outstanding.Commercial PaperThe company maintains a commercial paper program that serves as a source of short-term financing with capacity to issue unsecured commercial paper notes up to $2.5 billion. At June 30, 2025, the company had $570 million of outstanding commercial paper borrowings at a weighted-average interest rate of 4.76%, with original maturities of three months or less from the date of issuance. The outstanding balance of commercial paper borrowings is recorded in Other current liabilities in the unaudited condensed consolidated statements of financial position.Credit FacilitiesThe company maintains a five-year senior unsecured credit facility in an aggregate