Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 47

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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8 %10.7 %10.1 %10.6 %Reconciliation to segment operating income:CAS pension expense(117)(65)80 %(234)(131)79 %FAS pension service expense54 59 (8)%108 119 (9)%FAS/CAS operating adjustment(63)(6)950 %(126)(12)950 %Gain on sale of business(231)— NM(231)— NMTraining services divestiture - unallowable state taxes and transaction costs19 — NM20 — NMIntangible asset amortization and PP&E step-up depreciation21 24 (13)%42 49 (14)%Other unallocated corporate expense (income)48 (7)NM84 7 1,100 %Unallocated corporate (income) expense(143)17 NM(85)56 NMSegment operating income$1,219 $1,101 11 %$1,787 $2,205 (19)%Segment operating margin rate11.8 %10.8 %9.0 %10.8 %

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

Current Quarter

Second quarter 2025 segment operating income increased $118 million, or 11 percent, due to higher operating income at Mission Systems, Defense Systems and Aeronautics Systems, partially offset by lower operating income at Space Systems. Segment operating margin rate increased to 11.8 percent from 10.8 percent, due to higher operating margin rates at all four sectors.

Year to Date

Year to date 2025 segment operating income decreased $418 million, or 19 percent, due to lower operating income at Aeronautics Systems, primarily driven by a $477 million B-21 loss provision in the first quarter of 2025, and lower operating income at Space Systems, partially offset by higher operating income at Defense Systems and Mission Systems. Segment operating margin rate decreased to 9.0 percent from 10.8 percent, primarily due to the B-21 loss provision and a lower operating margin rate at Mission Systems, partially offset by higher operating margin rates at Defense Systems and Space Systems.

FAS/CAS Operating Adjustment 

The second quarter 2025 and year to date 2025 FAS/CAS operating adjustment reflects higher CAS pension expense largely driven by plan asset returns in prior years and changes in certain CAS