Northrop Grumman Corporation provides technologically advanced, innovative products,
services, and solutions in defense and commercial electronics, nuclear and non-nuclear
shipbuilding, information technology, mission systems, systems integration, and
space technology. As prime contractor, principal subcontractor, partner, or preferred
supplier, Northrop Grumman participates in many high-priority defense and commercial
technology programs in the United States and abroad.
Originally formed in California in 1939, Northrop Corporation was reincorporated
in Delaware in 1985. In 1994 the company purchased the outstanding common stock
of Grumman Corporation and, effective May 18, 1994, Northrop Corporation was
renamed Northrop Grumman Corporation. On April 2, 2001, NNG, Inc., a newly formed
Delaware holding company, exchanged its common shares for all of the outstanding
Northrop Grumman Corporation common shares on a one-for-one basis, through a
merger in which Northrop Grumman Corporation became a subsidiary of NNG, Inc.
In connection with this merger, NNG, Inc. changed its name to Northrop Grumman
Corporation and the former Northrop Grumman Corporation changed its name to
Northrop Grumman Systems Corporation (Northrop Systems).
The company operates in seven business sectors: Electronic Systems, Newport
News, Ship Systems, Information Technology, Mission Systems, Integrated Systems,
and Space Technology. For financial reporting purposes, the Electronic Systems,
Information Technology, Mission Systems, Integrated Systems, and Space Technology
sectors are each reportable segments.
While Northrop Grumman is subject to the usual vagaries of the marketplace,
it is also affected by the unique characteristics of the defense industry and
by certain elements peculiar to its own business mix. Lockheed Martin Corporation,
The Boeing Company, Raytheon Company, and General Dynamics Corporation are among
the largest companies in the defense industry at this time.
Northrop Grumman competes against these and other companies for a number of
programs, both large and small. Intense competition and long operating cycles
are both key characteristics of Northrop Grumman’s business and the defense
industry. It is common in this industry for work on major programs to be shared
among a number of companies. A company competing to be a prime contractor may,
upon ultimate award of the contract, turn out to be a subcontractor.
It is not uncommon to compete with a peer company and, simultaneously on other
contracts, to be either a supplier to or a customer of such competitor. The
nature of major defense programs, conducted under binding contracts, allows
companies that perform well to benefit from a level of program continuity unknown
in many industries.
