NORTHROP GRUMMAN CORP DE
For the period ended Dec 31, 2023. Filed Jan 25, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Jan 25, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Product and Service Analysis
The following table presents product and service sales and operating costs and expenses by segment:
| $ in millions | 2023 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| Segment Information: | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses |
| Aeronautics Systems | ||||||
| Product | $8,157 | $8,942 | $7,981 | $7,161 | $9,408 | $8,534 |
| Service | 2,389 | 2,099 | 2,311 | 2,042 | 1,662 | 1,462 |
| Intersegment eliminations | 240 | 218 | 239 | 212 | 189 | 170 |
| Total Aeronautics Systems | 10,786 | 11,259 | 10,531 | 9,415 | 11,259 | 10,166 |
| Defense Systems | ||||||
| Product | 2,984 | 2,615 | 2,717 | 2,385 | 2,564 | 2,243 |
| Service | 2,080 | 1,836 | 2,056 | 1,819 | 2,423 | 2,137 |
| Intersegment eliminations | 798 | 701 | 806 | 711 | 789 | 700 |
| Total Defense Systems | 5,862 | 5,152 | 5,579 | 4,915 | 5,776 | 5,080 |
| Mission Systems | ||||||
| Product | 7,749 | 6,669 | 7,376 | 6,291 | 7,064 | 6,017 |
| Service | 2,092 | 1,730 | 2,005 | 1,639 | 2,077 | 1,695 |
| Intersegment eliminations | 1,054 | 887 | 1,015 | 848 | 993 | 843 |
| Total Mission Systems | 10,895 | 9,286 | 10,396 | 8,778 | 10,134 | 8,555 |
| Space Systems | ||||||
| Product | 12,007 | 11,067 | 10,448 | 9,455 | 8,832 | 7,898 |
| Service | 1,832 | 1,572 | 1,708 | 1,557 | 1,637 | 1,464 |
| Intersegment eliminations | 107 | 95 | 119 | 105 | 139 | 125 |
| Total Space Systems | 13,946 | 12,734 | 12,275 | 11,117 | 10,608 | 9,487 |
| Total Product | $30,897 | $29,293 | $28,522 | $25,292 | $27,868 | $24,692 |
| Total Service | 8,393 | 7,237 | 8,080 | 7,057 | 7,799 | 6,758 |
| Total Company | $39,290 | $36,530 | $36,602 | $32,349 | $35,667 | $31,450 |
Product Sales and Costs
2023 product sales increased $2.4 billion, or 8 percent, due to an increase in product sales at all four sectors. The increase was principally driven by higher volume on restricted programs, GBSD and NGI at Space Systems, higher restricted sales at Mission Systems and Aeronautics Systems, and higher volume on ammunition programs, GMLRS, IBCS and HACM at Defense Systems.
2023 product costs increased $4.0 billion, or 16 percent, consistent with the higher product sales described above and reflect a lower operating margin rate principally due to the previously described $1.56 billion charge on the B-21 program at Aeronautics Systems and lower net EAC adjustments on Space Systems production programs.
Service Sales and Costs
2023 service sales increased $313 million, or 4 percent, due to an increase in service sales at all four sectors. The increase was principally driven by higher restricted sales at Space Systems and Aeronautics Systems, higher volume on restricted programs and F-35 sustainment at Mission Systems, and higher volume on an international training program at Defense Systems.
-38-
2023 service costs increased $180 million, or 3 percent, consistent with the higher service sales described above and reflects a higher operating margin rate on Space Systems service programs.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.