Company: NOC
Filing Date: 2025-01-30
Form Type: 10-K
Source: 0001133421-25-000006
Chunk: 86

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-01-30
Form: 10-K
Item: Item 7
Chunk 86
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 in accordance with GAAP.

Selected financial highlights are presented in the table below:

 Year Ended December 31% Change in$ in millions, except per share amounts20242023202220242023Sales$41,033 $39,290 $36,602 4 %7 %Operating costs and expenses36,663 36,753 33,001 — %11 %Operating costs and expenses as a % of sales89.4 %93.5 %90.2 %Operating income4,370 2,537 3,601 72 %(30)%Operating margin rate10.6 %6.5 %9.8 %Mark-to-market pension and OPB benefit (expense)443 (422)1,232 NMNMFederal and foreign income tax expense842 290 940 190 %(69)%Effective income tax rate16.8 %12.4 %16.1 %Net earnings4,174 2,056 4,896 103 %(58)%Diluted earnings per share$28.34 $13.53 $31.47 109 %(57)%

Sales

2024 sales increased $1.7 billion, or 4 percent, due to a 12 percent growth in sales at Aeronautics Systems and higher sales at Mission Systems and Defense Systems, partially offset by lower sales at Space Systems largely driven by a reduction of $595 million associated with wind-down of work on the restricted space and NGI programs, as previously disclosed. 2024 sales reflect continued strong demand for our products and services.

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NORTHROP GRUMMAN CORPORATION                        

See “Segment Operating Results” below for further information by segment and “Product and Service Analysis” for product and service detail. See Note 15 to the consolidated financial statements for information regarding the company’s sales by customer type, contract type and geographic region for each of our segments.

Operating Income and Margin Rate

2024 operating income increased $1.8 billion, or 72 percent, primarily due to higher operating income at Aeronautics Systems, largely driven by the prior year $1.56 billion charge on the B-21 program, as well as higher operating income at Space Systems and Defense Systems. 2024 operating income also increased due to a $122 million increase in the FAS/CAS operating adjustment, partially offset by $73