Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 30

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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inations(76)(67)(148)(133)Total segment operating income1,2191,1011,7872,205FAS/CAS operating adjustment63612612Unallocated corporate income (expense)143(17)85(56)Total operating income1,4251,0901,9982,161Other (expense) incomeInterest expense(173)(154)(329)(300)Non-operating FAS pension benefit137167267335Other, net38436981Earnings before income taxes$1,427 $1,146 $2,005 $2,277 

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

FAS/CAS Operating AdjustmentFor financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and CAS requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.Unallocated Corporate ExpenseUnallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs. During the second quarter of 2025, the $231 million pre-tax gain on the sale of our training services business and $19 million of unallowable state taxes and transaction costs associated with the divestiture were recorded in Unallocated corporate income (expense).

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

Disaggregation of RevenueSales by Customer TypeThree Months Ended June 30Six Months Ended June 302025202420252024$ in millions$%(3)$%(3)$%(3)$%(3)Aeronautics SystemsU.S. government(1)$2,526 82 %$2,606 86 %$4,816 82 %$5,190 86