Company: NOC
Filing Date: 2025-06-10
Form Type: 11-K
Source: 0001133421-25-000043
Chunk: 13

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-06-10
Form: 11-K
Chunk 13
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 2023 |
|:---------------------------------------------------------|:---------------|:------------|--------:|:----|:--|--------:|
| Underlying securities of guaranteed investment contracts |                | $           | 679,519 |     | $ | 334,139 |

State Street requires borrowers, pursuant to a security loan agreement, to deliver collateral to secure each loan. The initial collateral required is 102 percent of the fair value of U.S. securities borrowed and 105 percent for foreign equity securities borrowed. The DC Master Trust bears the risk of loss with respect to any unfavorable change in fair value of the invested cash collateral. However, the borrower bears the risk of loss related to the decrease in the fair value of the securities collateral and, therefore, may have to deliver additional cash or securities to maintain the required collateral. In U.S. markets, State Street generally enters into a netting arrangement with a borrower which permits the netting of mark-to-market exposure for transactions within the lending program with that borrower. Such arrangements would cover lending transactions with the borrower and reverse repurchase agreements of cash collateral involving investment of the collateral. State Street may also negotiate a right of offset in the event of borrower default. In the event of borrower default, State Street indemnifies the DC Master Trust against any loss of the amount loaned. As of December 31, 2024, cash and non-cash collateral associated with securities on loan totaled $603 million and $91 million, respectively. As of December 31, 2023, cash and non-cash collateral associated with securities on loan totaled $284 million and $57 million, respectively. All collateral primarily consists of fixed-income securities. All of the securities on loan are collateralized at more than 102 percent.

#### 7. EXEMPT PARTY-IN-INTEREST TRANSACTIONS
Party-in-interest transactions through the DC Master Trust include the purchase and sale of investments managed by affiliates of the Plan's Trustee and transactions involving Northrop Grumman Corporation common stock. The NG Stock Fund within the DC Master Trust held 7.7 million and 8.4 million shares of common stock of the Company with a fair value of $3.6 billion and $3.9 billion at December 31, 2024 and 2023, respectively. The Plan’s interest in the net assets of the NG Stock Fund was approximately 99.5 percent and 99.4 percent at December 31, 2024 and 2023, respectively. During 202