EX-99.2 5 v59528exv99w2.htm EX-99.2 exv99w2
NORTHROP GRUMMAN CORPORATION
 
EXHIBIT 99.2
 
Item 6.   Selected Financial Data
 
The data presented in the following table is derived from the audited consolidated financial statements and other information adjusted to reflect the effects of discontinued operations. See also Business Acquisitions and Business Dispositions in Part II, Item 7.
 
Selected Financial Data
 
                                         
    Year Ended December 31
$ in millions, except per share   2010   2009   2008   2007   2006
Sales and Service Revenues
                                       
U.S. Government
  $ 25,507     $ 24,955     $ 23,274     $ 21,687     $ 20,733  
Other customers
    2,636       2,695       2,977       2,957       2,703  
                                         
Total revenues
  $ 28,143     $ 27,650     $ 26,251     $ 24,644     $ 23,436  
                                         
Goodwill impairment
                  $ (570 )                
Operating income
  $ 2,827     $ 2,274       2,076     $ 2,464     $ 2,073  
Earnings from continuing operations
    1,904       1,434       1,018       1,448       1,293  
                                         
Basic earnings per share, from continuing operations
  $ 6.41     $ 4.49     $ 3.04     $ 4.24     $ 3.74  
Diluted earnings per share, from continuing operations
    6.32       4.44       2.98       4.09       3.61  
Cash dividends declared per common share
    1.84       1.69       1.57       1.48       1.16  
                                         
Year-End Financial Position
                                       
Total assets
  $ 31,531     $ 30,418     $ 30,197     $ 33,373     $ 32,271  
Notes payable to banks and long-term debt
    4,724       4,011       3,661       3,772       3,879  
Total long-term obligations and preferred stock(1)
    7,947       8,959       8,926       7,278       7,005  
                                         
Financial Metrics
                                       
Net cash provided by continuing operations
  $ 2,056     $ 1,995     $ 2,705     $ 2,050     $ 2,270  
Free cash flow(2)
    1,471       1,454       2,132       1,478       1,172  
Notes payable to banks and long-term debt as a percentage of shareholders’ equity
    34.8 %     31.6 %     30.7 %     21.3 %     23.3 %
                                         
Other Information
                                       
Company-sponsored research and development expenses
  $ 580     $ 588     $ 543     $ 502     $ 541  
Maintenance and repairs
    369       371       314       216       239  
Payroll and employee benefits
    10,861       11,718       10,127       9,616       9,470  
                                         
Number of employees at year-end
    79,600       81,800       86,500       84,900       85,900  
                                         
 
(1) In 2008, all of the shares of preferred stock were converted or redeemed.
 
(2) Free cash flow is a non-GAAP financial measure and is calculated as cash provided by continuing operations less capital expenditures and outsourcing contract and related software costs. Outsourcing contract and related software costs are similar to capital expenditures in that the contract costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition and transition/set-up. These outsourcing contract and related software costs are deferred and expensed over the contract life. See Liquidity and Capital Resources – Free Cash Flow in Part II, Item 7 for more information on this measure.


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