Company: NOC
Filing Date: 2025-01-30
Form Type: 10-K
Source: 0001133421-25-000006
Chunk: 91

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-01-30
Form: 10-K
Item: Item 7
Chunk 91
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 adjustment, partially offset by lower intangible asset amortization and PP&E step-up depreciation and a loss recognized in the prior year in connection with the divestiture of a small international subsidiary.

Net Estimate-At-Completion (EAC) Adjustments - We record changes in estimated contract earnings at completion (net EAC adjustments) using the cumulative catch-up method of accounting. Net EAC adjustments can have a significant effect on reported sales and operating income and the aggregate amounts are presented in the table below:Year Ended December 31$ in millions202420232022Favorable EAC adjustments$1,461 $1,314 $1,337 Unfavorable EAC adjustments(1,111)(1,230)(977)Net EAC adjustments$350 $   84 $   360 

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NORTHROP GRUMMAN CORPORATION                        

Net EAC adjustments by segment are presented in the table below:Year Ended December 31$ in millions202420232022Aeronautics Systems$151 $(44)$174 Defense Systems96 91 104 Mission Systems59 149 138 Space Systems42 (101)(31)Eliminations2 (11)(25)Net EAC adjustments$350 $84 $360 

AERONAUTICS SYSTEMS

Aeronautics Systems is a leader in the design, development, production, integration, sustainment and modernization of military aircraft systems for the U.S. Air Force, the U.S. Navy, other U.S. government agencies, and international customers. Major products include strategic long-range strike aircraft; tactical fighter and air dominance aircraft; airborne battle management and command and control systems; and unmanned autonomous aircraft systems, including high-altitude long-endurance (HALE) strategic intelligence, surveillance and reconnaissance (ISR) systems. Year Ended December 31% Change in$ in millions20242023202220242023Sales$12,030 $10,786 $10,531 12 %2 %Operating income (loss)1,182 (473)1,116 NMNMOperating margin rate9.8 %(4.4)%10.6 %

Sales

2024 sales increased $1.2 billion, or 12 percent, primarily due to the continuing transition to production on B-21 driving higher restricted volume, a $448 million increase in F-35 production and sustainment volume due, in part, to