Company: NOC
Filing Date: 2025-01-30
Form Type: 10-K
Source: 0001133421-25-000006
Chunk: 97

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-01-30
Form: 10-K
Item: Item 7
Chunk 97
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 offset by an increase in service sales at Aeronautics Systems driven by higher volume on restricted programs and Global Hawk.

2023 service sales increased $313 million, or 4 percent, due to an increase in service sales at Space Systems, Mission Systems, and Aeronautics Systems. The increase was principally driven by higher restricted sales at Space Systems and Aeronautics Systems, and higher volume on restricted programs and F-35 sustainment at Mission Systems.

2024 service costs were comparable to the prior year, consistent with the change in services sales described above.

2023 service costs increased $186 million, or 3 percent, consistent with the higher service sales described above and reflects a higher operating margin rate on Space Systems service programs.

BACKLOG

Backlog represents the future sales we expect to recognize on firm orders received by the company and is equivalent to the company’s remaining performance obligations at the end of each period. It comprises both funded backlog (firm orders for which funding is authorized and appropriated) and unfunded backlog. Unexercised contract options and indefinite delivery indefinite quantity (IDIQ) contracts are not included in backlog until the time the option or IDIQ task order is exercised or awarded. Backlog is converted into sales as costs are incurred or deliveries are made.

Backlog consisted of the following at December 31, 2024 and 2023:

 20242023$ in millionsFundedUnfundedTotalBacklogTotalBacklog% Change in 2024Aeronautics Systems$10,689 $13,409 $24,098 $19,583 23 %Defense Systems9,873 17,845 27,718 20,198 37 %Mission Systems11,574 4,869 16,443 16,108 2 %Space Systems7,526 15,683 23,209 28,341 (18)%Total backlog$39,662 $51,806 $91,468 $84,230 9 %

2024 net awards totaled $50.6 billion. Significant 2024 new awards include $11.8 billion for restricted programs (primarily at Aeronautics Systems, Mission Systems, and Space Systems), $3.5 billion for the Take Charge and Move Out (TACAMO) mission, $3.5 billion for F-35 (primarily at Aeronautics Systems), $2.4 billion for E-2