What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-01-25 compared with 2023-01-26 · 97 added, 168 removed, 203 unchanged (57% of the section changed)

5 unchanged sentences

Our broad portfolio is aligned to support national security priorities and our solutions equip our customers with capabilities they need to connect, protect and advance humanity.

The company is a leading provider of space systems, advanced aircraft, missile defense, advanced weapons and long-range fires capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as artificial intelligence, advanced computing and cyber.

The company is a leading provider of space systems, military aircraft, missile defense, advanced weapons and long-range fires capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber.

We are focused on competing and winning programs that enable continued growth, performing on our commitments and affordably delivering capability our customers need.

2 unchanged sentences

The company originally was formed in 1939 in Hawthorne, California as Northrop Aircraft Incorporated and was reincorporated in Delaware in 1985, as Northrop Corporation.

Northrop Corporation was a principal developer of flying wing technology, including the B-2 Spirit bomber.

We developed into one of the largest defense companies in the world through a series of acquisitions, as well as organic growth, including the following:

Northrop Corporation was a principal developer of flying wing technology, including the B-2 Spirit stealth aircraft.

We developed into one of the largest defense technology companies in the world through a series of acquisitions, as well as organic growth, including the following:

• 1994 - Acquired Grumman Corporation, a premier military aircraft systems integrator.

13 unchanged sentences

AERONAUTICS SYSTEMS

Aeronautics Systems is a leader in the design, development, production, integration, sustainment and modernization of advanced aircraft systems for the U.S.

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.

1 unchanged sentence

government agencies, and international customers.

These aircraft systems support four mission areas:

air dominance;

battle management

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)

NORTHROP GRUMMAN CORPORATION

and intelligence, surveillance and reconnaissance (ISR).

Aeronautics Systems is reported in two business areas:

Autonomous Systems and Manned Aircraft.

Autonomous Systems – provides unmanned autonomous aircraft systems, including high-altitude long-endurance (HALE) strategic ISR systems and vertical take-off and landing (VTOL) tactical ISR systems.

Key programs include:

• MQ-4C Triton, which provides wide area strategic ISR over vast ocean and coastal regions for maritime domain awareness to the U.S.

Navy and Australia;

• RQ-4 Global Hawk, which provides high resolution imagery of land masses for theater awareness and strategic ISR to the U.S.

Air Force, Japan, and the Republic of Korea;

• North Atlantic Treaty Organization (NATO) Alliance Ground Surveillance (AGS), a Global Hawk variant, for strategic ISR missions conducted in multinational theater operations;

• MQ-8B and MQ-8C Fire Scout, ship-based, VTOL tactical ISR systems that provide situational awareness and precision targeting for the U.S.

Manned Aircraft – provides strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.

systems and vertical take-off and landing (VTOL) tactical ISR systems.

Approximately 45 percent of this business is performed through restricted programs.

Key programs include:

• Development and production of the U.S.

Air Force B-21 Raider long-range strike bomber, as well as modernization and sustainment services for the B-2 Spirit bomber;

Air Force B-21 Raider long-range strike aircraft that defines sixth-generation technologies;

• Modernization and sustainment services for the B-2 Spirit stealth aircraft;

• Fuselage production for the F/A-18 Super Hornet and the F-35 Lighting II Joint Strike Fighter for use by U.S.

2 unchanged sentences

Navy, Japan, and France;

• E-8C Joint Surveillance Target Attack Radar System (JSTARS) aircraft sustainment and modernization for the U.S.

• MQ-4C Triton, which provides wide area strategic ISR over vast ocean and coastal regions for maritime domain awareness to the U.S.

Navy and Australia;

• RQ-4 Global Hawk, which provides high resolution imagery of land masses for theater awareness and strategic ISR to the U.S.

Air Force, Japan, and the Republic of Korea;

• North Atlantic Treaty Organization (NATO) Alliance Ground Surveillance (AGS), a Global Hawk variant, for strategic ISR missions conducted in multinational theater operations;

• MQ-8C Fire Scout, ship-based, VTOL tactical ISR systems that provide situational awareness and precision targeting for the U.S.

DEFENSE SYSTEMS

Defense Systems is a leader in the design, development, production, integration, sustainment and modernization of weapon and mission systems for U.S.

military and civilian agency customers, and a broad range of international customers.

Major products and services include integrated battle management systems, weapons systems and aircraft and mission systems sustainment and modernization.

The sector is reported in two business areas:

Battle Management & Missile Systems, and Mission Readiness.

Battle Management & Missile Systems – designs, develops and integrates all-domain command and control (C2) and weapons systems, including munitions and missiles.

The business provides integration and interoperability of net-enabled battle management, sensors, targeting and surveillance systems – a backbone architecture for Joint All-Domain Command and Control (JADC2) capable of integrating sensors and shooters, as well as air and missile defense C2 systems.

It also develops and produces precision strike weapons;

Defense Systems is a leader in the design, development, integration and production of advanced tactical weapons and missile defense solutions, and a provider of sustainment, modernization and training services for manned and unmanned aircraft and electronics systems for the U.S.

military and a broad range of international customers.

Major products and services include integrated, all-domain command and control (C2) battle management systems, precision strike weapons;

advanced propulsion, including high speed air-breathing and hypersonic systems;

and high-performance gun systems and precision munitions.

Competencies include system and software development;

integration of weapon systems;

tactical missile and component development and production;

and production of advanced fuzes, munitions and defense electronics.

high-performance gun systems, ammunition, precision munitions and advanced fuzes;

aircraft and mission systems logistics support, sustainment, operations and modernization;

and warfighter training.

Less than 5 percent of this business is performed through restricted programs.

Key programs include:

• Integrated Air and Missile Defense Battle Command System (IBCS) for the U.S.

Army and Poland, which is a system that integrates sensors and effectors to deliver among the most advanced C2 systems for joint and coalition forces;

Army and Poland, which is an open architecture system that seamlessly integrates sensors and effectors to deliver among the most advanced C2 systems for joint and coalition forces;

• Medium (30mm and 20mm) and Large (120mm) caliber tactical and training ammunition production;

• Guided Multiple Launch Rocket System (GMLRS) propulsion and warhead subsystems for a surface-to-surface system used to defeat targets using indirect precision fires;

Navy’s Advanced Anti-Radiation Guided Missile (AARGM), a medium-range, air-to-surface missile, and its extended range variant, AARGM-ER;

• Guided Multiple Launch Rocket System (GMLRS) propulsion and warhead subsystems for a surface-to-surface system used to defeat targets using indirect precision fires up to 70-plus kilometers;

• Precision Guidance Kit (PGK), replaces conventional fuzes for artillery and mortar munitions and transforms them into Global Positioning System enabled precision guided weapons;

Air Force’s Stand-In Attack Weapon (SiAW), an advanced capability air-to-surface tactical missile for the F-35;

• Hypersonic Attack Cruise Missile (HACM) air-breathing, scramjet propulsion subsystem for the hypersonic air-launched cruise missile to travel at speeds of Mach 5 or greater;

NORTHROP GRUMMAN CORPORATION

• Global system sustainment and operations support for the F-35, B-2, P-3 Orion, E-6B Mercury, KC-30A multi-role tanker, C-27J transport, NATO AGS, Triton and restricted programs;

• Precision Guidance Kit (PGK), replaces conventional fuzes for artillery and mortar munitions and transforms them into Global Positioning System enabled precision guided weapons;

• Forward Area Air Defense Command and Control (FAAD C2), the Army’s long-standing program of record for short range air defense and Counter Rocket, Artillery and Mortar (C-RAM), as well as the interim C2 for Counter Unmanned Aircraft Systems (C-UAS);

Mission Readiness – provides full life cycle service and support for software, weapons systems and aircraft, and logistics support, sustainment, operations and modernization for air, sea and ground systems.

It also supports critical warfighter training for complex missions in a realistic virtual environment.

Competencies include aircraft, electronics and embedded software sustainment;

digital engineering and extended reality training for platform logistics;

and maintenance.

Key programs include:

• Global system sustainment and operations support for the F-35, B-2, P-3 Orion, E-6B Mercury, KC-30A multi-role tanker, C-27J transport, Global Hawk and Triton programs;

• Special Electronics Mission Aircraft (SEMA) intelligence, surveillance and reconnaissance support;

• AAQ-24 sensor sustainment and repair for U.S.

military customers;

• APN-241 radar sustainment, repair and production for U.S.

military and foreign military sales (FMS) customers.

• Special Electronics Mission Aircraft (SEMA) ISR support;

• Distributed Mission Operations Network (DMON), a live, virtual, constructive, and synthetic simulation program for global training and exercises.

NORTHROP GRUMMAN CORPORATION

MISSION SYSTEMS

1 unchanged sentence

defense and intelligence community, and international customers.

Major products and services include cyber;

command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems;

Major products and services include command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems;

radar, electro-optical/infrared (EO/IR) and acoustic sensors;

1 unchanged sentence

advanced communications and network systems;

cyber solutions;

full spectrum cyber solutions;

intelligence processing systems;

advanced microelectronics;

navigation and positioning sensors;

and maritime power, propulsion and payload launch systems.

The sector is reported in four business areas:

Airborne Multifunction Sensors;

Maritime/Land Systems & Sensors;

Navigation, Targeting & Survivability;

and Networked Information Solutions.

Airborne Multifunction Sensors – delivers products, systems and services that support airborne platforms with multi-function radio frequency (RF) and EO/IR systems;

radar, electronic warfare and situational awareness mission systems;

and high altitude ISR sensors.

Competencies include fire control, surveillance and early warning and control radar systems;

electronic attack and electronic support systems;

and multi-sensor processing.

Approximately 30 percent of this business is performed through restricted programs.

Key unrestricted programs include:

• Airborne Early Warning & Control (AEW&C).

The center piece of the E-7 AEW&C aircraft is the Multi-role Electronically Scanned Array (MESA) radar which enables 360 degree long range advanced air moving target indicator (AMTI) capabilities for Battle Management, Command and Control, and Maritime Surveillance;

• F-35 fire control radar and Distributed Aperture System (DAS), which provides 360 degree field of view tracking, identifying, missile warning and night vision capabilities;

• LONGBOW Fire Control Radar (FCR), which provides fire control radar capabilities for the global AH-64 helicopter fleet;

• Scalable Agile Beam Radar (SABR), an active electronically scanned array fire control radar system for F-16 aircraft;

Maritime/Land Systems & Sensors – delivers products, systems and services that enable maritime and ground platform mission capabilities via sensors, targeting and surveillance systems;

electronic warfare systems;

mission module integration;

power, propulsion and control systems;

and missile launchers.

Competencies include ground and maritime radar systems;

nuclear ship propulsion and power generation systems;

shipboard missile and encapsulated payload launch systems;

integrated bridge systems;

unmanned maritime vehicles;

high-resolution undersea sensors;

deep-sea packaging;

and mission integration.

Key unrestricted programs include :

• Surface Electronic Warfare Improvement Program (SEWIP) Block III, which protects surface ships from anti-ship missiles, provides early detection, signal analysis and threat warning;

• F-35 fire control radar and Distributed Aperture System (DAS), which provides 360 degree field of view tracking, identifying, missile warning and night vision capabilities;

• F-35 Communications, Navigation and Identification (CNI) integrated avionics system, which provides secure communications and interoperability capabilities;

• Ground/Air Task Oriented Radar (G/ATOR), a mobile multi-mode active electronically scanned array;

• Littoral Combat Ship Mission Module Integration, which provides engineering design, support and production of mission modules for U.S.

Navy littoral combat ships;

NORTHROP GRUMMAN CORPORATION

• Surface Electronic Warfare Improvement Program (SEWIP) Block III, which protects surface ships from anti-ship missiles, provides early detection, signal analysis and threat warning;

• Airborne Early Warning & Control (AEW&C).

The centerpiece of the E-7 AEW&C aircraft is the Multi-role Electronically Scanned Array (MESA) radar which enables 360 degree long range advanced air moving target indicator (AMTI) capabilities for Battle Management, Command and Control, and Maritime Surveillance;

• Large Aircraft and Common Infrared Countermeasures (LAIRCM, DoN LAIRCM, CIRCM) systems, which protect large aircraft as well as rotary wing and medium fixed wing aircraft from infrared missiles using advanced laser technology;

• Battlefield Airborne Communications Node (BACN), one of the first airborne gateway systems that allows platforms to communicate and securely share data;

• DDG Modernization, which is comprised of several subsystems to support modernization of Arleigh Burke-class guided missile destroyers including Integrated Bridge and Navigation Systems (IBNS) and ship control systems;

Navigation, Targeting & Survivability – delivers products, systems and services that support aircraft platforms with targeting, self-protection and situational awareness mission systems;

and provides embedded navigation and positioning sensors for a range of platforms including ships, aircraft, spacecraft and weapons.

Competencies include EO/IR and RF self-protection;

targeting and surveillance systems;

digitized cockpits;

and inertial navigation systems.

Key unrestricted programs include:

• LITENING Advanced Targeting Pod, an electro-optical infrared sensor system for targeting and surveillance that enables aircrews to detect, acquire, identify and track targets at long ranges;

• APR-39 DV(2) and EV(2) Radar Warning Receiver programs, which produce a digital radar warning receiver for the U.S.

• APR-39 DV(2) and EV(2) Radar Warning Receiver programs, which provide a digital radar warning receiver for the U.S.

Army, Navy and Marines;

• Exploitation and cyber programs, which provide cyber and intelligence domain support through unique intelligence and cyber capabilities;

• AC/MC 130J Radio Frequency Countermeasures system, which provides superior situational awareness and better enables aircraft survivability in operationally relevant environments;

2 unchanged sentences

Army’s Black Hawk helicopters with a glass cockpit, including an integrated computational system, visual display system and control display units, extending the life and mission capabilities of the UH-60 platform.

Networked Information Solutions – delivers products, systems and services in the areas of advanced communications and network systems, full spectrum cyber solutions, secure processing, transformational computing, advanced technology development, and Signals Intelligence (SIGINT) mission systems.

Competencies include software defined radios and network gateways, communications and counter-communications systems;

cyber mission management;

large scale cyber solutions for national security applications;

cyber survivability;

ground software systems;

and SIGINT sensors and processing.

Key unrestricted programs include:

• F-35 Communications, Navigation and Identification (CNI) integrated avionics system, which provides secure communications and interoperability capabilities;

• Battlefield Airborne Communications Node (BACN), one of the first airborne gateway systems that allows platforms to communicate and securely share data;

• Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare (JCREW), a software-programmable jammer that provides protection from improvised explosive devices (IEDs);

• Exploitation and cyber programs, which provide cyber and intelligence domain support through unique intelligence and cyber capabilities;

• Airborne Signals Intelligence Payload (ASIP), which delivers key signals intelligence capabilities to the warfighter by detecting, identifying, and locating radar and other types of electronic and modern communication signals.

NORTHROP GRUMMAN CORPORATION

SPACE SYSTEMS

Space Systems is a leader in delivering end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, launch and strategic missile systems for national security, civil government, commercial and international customers.

Major products include satellites and payloads;

Major products include satellites and spacecraft systems, subsystems, sensors and payloads;

ground systems;

2 unchanged sentences

and strategic missiles.

The sector is reported in two business areas:

Space and Launch & Strategic Missiles.

Space – designs, develops, manufactures and integrates spacecraft systems, subsystems, sensors, payloads and ground systems to deliver mission capability to national security, science and environmental, communications, on-orbit servicing, and human-rated space systems for earth orbit and deep-space exploration missions.

Much of this business is performed through restricted programs.

Approximately 35 percent of this business is performed through restricted programs.

Key unrestricted programs include:

NORTHROP GRUMMAN CORPORATION

• Cygnus spacecraft, used in the execution of our CRS contracts with NASA;

• Habitation and Logistics Outpost (HALO) module in support of NASA’s Gateway;

• Evolved Strategic SATCOM (ESS) and Protected Tactical SATCOM (PTS) satellites and payloads providing survivable, protected communications to U.S.

• Next-Generation Overhead Persistent Infrared (Next Gen OPIR) program satellites and payloads providing data for missile defense;

• Space Development Agency Tracking and Transport layers providing missile warning/tracking and resilient, low-latency, high-volume data transport communication systems;

• James Webb Space Telescope (JWST) operations and sustainment contract.

Launch & Strategic Missiles – designs, develops, manufactures and integrates small- and medium-class space launch vehicles to place satellites into earth orbit;

suborbital launch vehicles that place payloads into a variety of high-altitude trajectories;

large strategic missile systems;

and missile defense systems.

Competencies include large strategic missile design, integration, production and sustainment, as well as the production of medium- and large-class rocket propulsion systems for human and cargo launch vehicles, hypersonic boosters and missile defense interceptors.

Key programs include:

• Ground Based Strategic Deterrent (GBSD) Engineering & Manufacturing Development (EMD) program;

• Missile defense systems, interceptors, targets, mission processing and boosters for the Missile Defense Agency's (MDA) Next-Generation Interceptor (NGI), Ground-based Midcourse Defense Weapon Systems (GWS);

• Missile defense systems, interceptors, targets, mission processing and boosters for the Missile Defense Agency's (MDA) Next-Generation Interceptor (NGI) and Ground-based Midcourse Defense Weapon Systems (GWS);

• Space Development Agency Tracking and Transport layers providing missile warning/tracking and resilient, low-latency, high-volume data transport communication systems;

• Next-Generation Overhead Persistent Infrared (Next Gen OPIR) program satellites and payloads providing data for missile defense;

• Development and production of solid rocket motors for NASA’s Space Launch System (SLS) heavy lift vehicle;

• Antares rocket, used in the execution of our Commercial Resupply Services (CRS) contracts with the National Aeronautics and Space Administration (NASA);

• 63-inch diameter Graphite Epoxy Motor (GEM 63) and the extended length variation (GEM 63XL) solid rocket boosters used to provide lift capability for the ATLAS V and Vulcan launch vehicles;

1 unchanged sentence

Navy's Trident II Fleet Ballistic Missile program;

• Evolved Strategic SATCOM (ESS) and Protected Tactical SATCOM (PTS) satellites and payloads providing survivable, protected communications to U.S.

• Intercontinental Ballistic Missile (ICBM) Ground Subsystem Support Contract (GSSC);

• Cygnus spacecraft, used in the execution of our Commercial Resupply Services (CRS) contracts with NASA;

• Habitation and Logistics Outpost (HALO) module in support of NASA’s Gateway;

• James Webb Space Telescope (JWST) operations and sustainment contract.

CUSTOMER CONCENTRATION

6 unchanged sentences

We compete with many companies in the defense, intelligence and federal civil markets.

The Boeing Company, General Dynamics, L3Harris Technologies, Lockheed Martin, and Raytheon Technologies are some of our primary competitors.

Key characteristics of our industry include long operating cycles and intense competition, which is evident through the number of competitors bidding on program opportunities and the number of bid protests (competitor protests of U.S.

The Boeing Company, General Dynamics, L3Harris Technologies, Lockheed Martin, and RTX are some of our primary competitors.

government procurement awards.

3 unchanged sentences

No material portion of our business is considered to be seasonal.

NORTHROP GRUMMAN CORPORATION

At December 31, 2023, total backlog, which is equivalent to the company’s remaining performance obligations, was $84.2 billion as compared with $78.7 billion at December 31, 2022.

For further information, see “Backlog” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) and Note 1 to the consolidated financial statements.

For further information, see “Backlog” in

NORTHROP GRUMMAN CORPORATION

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) and Note 1 to the consolidated financial statements.

INTELLECTUAL PROPERTY

7 unchanged sentences

RAW MATERIALS

We have experienced challenges with access to certain raw materials due to macroeconomic factors and several global events such as microelectronics shortages, COVID-19 and geopolitical conflicts.

We have experienced challenges with access to certain raw materials due to macroeconomic factors and several global events such as inflation, geopolitical conflicts and microelectronics shortages.

In some cases, these challenges have significantly increased the cost and/or lead time required to obtain certain raw materials.

4 unchanged sentences

Our culture and values enable us to continue attracting qualified talent, particularly those with security clearances and requisite skills in multiple areas, including science, technology, engineering and math.

During 2022, despite facing a tight labor market, this focus on our culture and workforce was a factor in our ability to hire approximately 16,000 new employees, and as of December 31, 2022, we have approximately 95,000 employees.

Additional information regarding our human capital strategy is available in our Environmental, Social, and Governance (ESG) Report and Proxy Statement, which can be found on our company website.

Information on our website, including our ESG Report (formerly our Sustainability Report), is not incorporated by reference into this Annual Report.

This focus on our culture and workforce was a factor in our ability to hire approximately 14,500 new employees in 2023, and as of December 31, 2023, we have approximately 101,000 employees.

Additional information regarding our human capital strategy is available in our Environmental, Social, and Governance (ESG) Report, which can be found on our company website.

Information on our website, including our ESG Report, is not incorporated by reference into this Annual Report.

Our Values and Culture

9 unchanged sentences

In addition to full-time ethics professionals, we also have over 150 business conduct advisors who promote values and an ethical culture within the company.

Our annual engagement survey gives employees a voice and a mechanism to provide feedback on our culture.

This survey is managed by a third-party vendor to encourage employee candor on key engagement drivers, including company leadership, culture, inclusion and career development.

In 2022, 79 percent of employees responded to the survey, an indication that our employees believe their feedback matters, and we were named a “High Performing

NORTHROP GRUMMAN CORPORATION

Company” by the third party vendor based on our survey results.

Our annual Employee Experience Survey gives employees a voice and a mechanism to provide feedback on our culture and empower our leaders to enhance the employee experience.

This anonymous survey encourages employee candor on key engagement and inclusion drivers, including belonging, respect, a sense of personal work accomplishment and recommending the company to others.

In 2023, 81 percent of employees responded to the survey, an indication that our employees believe their feedback matters, and our survey results exceeded many of the global norms of our third party vendor for both engagement and inclusion.

Our leaders review the survey responses and work collaboratively with their teams to take meaningful actions based on survey results.

NORTHROP GRUMMAN CORPORATION

Diversity, Equity and Inclusion

Diversity, equity and inclusion (DE&I) is vital to our culture and our company’s success.

Our ability to leverage the power of our diverse workforce enhances employee engagement and enables us to innovate, perform and deliver on quality, which results in value for our shareholders, customers, and employees.

Diversity is one of the company’s non-financial ESG performance metrics and is reviewed by the Board of Directors.

We value diversity and belonging in its broadest sense, as an enabling force that helps us pioneer, perform and deliver on quality, which results in value for our shareholders, customers, and employees.

Across our U.S.

1 unchanged sentence

At the vice president level, 35 percent are female and 20 percent are people of color.

We strive to reach all parts of the diverse talent pools available now and in the future because we recognize that we benefit from having coworkers with different ideas, perspectives and approaches to help us innovate.

Talent Management

Northrop Grumman’s talent strategy is designed to maximize the full potential of our people and our business.

We are focused on providing an end-to-end experience from pre-hire to retirement.

This includes creating inclusive, employee-centric experiences, cultivating leadership, offering multiple development pathways and expanding the talent pipeline into and through the company.

Northrop Grumman’s talent strategy is focused on four key pillars:

broadening talent pools;

enhancing the employee experience;

building leaders of the future;

and enabling new ways of working.

Our strategy addresses the external and internal landscape and ensures that we are able to attract, retain and develop the workforce necessary to support the continued success of the business.

We hold regular talent review discussions to ensure line of sight to talent at various levels of the organization.

Succession plans are refreshed and reviewed to ensure a robust, diverse pipeline of talent and business continuity with a tight linkage to development.

We focus on accelerating learning and development of our leaders by providing a combination of experiences and education.

Our Leading for Impact Program offers developmental paths for new and experienced managers seeking to refresh or build their leadership capabilities.

Nearly 3,000 leaders have honed their skills leveraging various learning modalities, including virtual and in-person instructor-led, web-based training and micro-courses to support our managers.

Our employee development programs are designed to strengthen employee skills that align to our current and future business needs, encourage knowledge sharing and support career progression and growth.

We utilize My Learning Experience, a machine learning enabled content aggregator designed to create a unique and personalized learning experience for each employee.

We offer our employees online career-specific tools and resources and we also support development opportunities through educational institutions with our Education Assistance Program.

Our early-in-career rotation program, Pathways, develops talent pipelines with both depth of skills and breadth of experiences that are critical to the company’s future talent needs.

Our technical cohort programs are uniquely designed to cultivate technical, domain expertise and collaborative thought leadership for early through advanced career levels.

As our company continues to grow, we rely on an integrated talent acquisition approach.

The company strategically attracts, identifies, and onboards candidates in support of business needs and priorities.

In order to accomplish our goals, we seek talent with unique perspectives, skills and experiences;

maintain strategic relationships with colleges;

offer a robust employee referral program;

and partner with numerous diversity organizations, military organizations and trusted external partners, with a commitment to growing and supporting a diverse talent pipeline.

Amidst the evolving and, at times, challenging hiring environment, we apply agile recruiting methods as we work to adapt to the changing labor marketplace and to ensure employees and candidates have an exceptional experience.

We focus on accelerating learning and development of our leaders by providing a combination of experiences, exposure and education.

Our employee development programs strengthen employee skills aligned to our current and future business needs through on-the-job development, knowledge sharing and tools to support career growth.

Employees utilize curated, career-specific resources such as My Learning Experience, a machine learning enabled content aggregator that creates a personalized learning experience for each employee.

Our Education Assistance Program subsidizes tuition and other educational institution fees to support development through job-related degrees and certificates.

Our early-in-career rotation program, Pathways, develops talent pipelines with both depth of critical skills and breadth of experiences.

Our technical cohort programs cultivate technical, domain expertise and collaborative thought leadership for early through advanced career levels.

In a rapidly changing world, we maintain focus on keeping our team and our company prepared for the evolving future of work.

In addition to offering our employees flexible work arrangements, caregiver support and mental health services that help our employees make their careers work within their lives, we also help our employees build the careers that will serve them into the future.

We ensure that our employees have the tools and resources to develop their knowledge base and skill sets, so that they can continue to thrive at Northrop Grumman even in the midst of change.

When our employees succeed and grow at work, our business succeeds and grows.

Through a focus on our employees, we remain agile and innovative, adapting to the future as it unfolds before us.

We provide many avenues for our employees to feel included, so we can hire, develop and retain the best people to support our common mission and better pioneer together.

Employee Health and Safety

People are our most valuable resource, and we work diligently to protect the health, safety and well-being of our employees, customers, visitors and others at our facilities.

During 2022, we have taken, and continue to take, robust actions in response to the COVID-19 pandemic to help protect the health, safety and well-being of our employees and others.

See “COVID-19” in MD&A for further discussion.

Health and safety are a core focus in everything we do.

People are our most valuable resource, and our goals have been, and continue to be, to keep our employees safe and position the company for long-term success.

Risk and hazard identification, abatement and prevention are key components of Northrop Grumman’s safety program.

3 unchanged sentences

Internally, we determine program effectiveness by conducting trend analyses of our past performance.

NORTHROP GRUMMAN CORPORATION

Collective Agreements

Approximately 4,000 employees are covered by 15 collective agreements in the U.S., of which we negotiated four renewals in 2022 and expect to negotiate one renewal in 2023.

Approximately 4,100 employees are covered by 15 collective agreements in the U.S., of which we negotiated one renewal in 2023 and expect to negotiate five renewals in 2024.

See “Risk Factors” for further discussion regarding risks related to our workforce and employee relations.

5 unchanged sentences

The consolidated financial statements and financial information in this Annual Report reflect the operating results of our entire company, including restricted programs.

NORTHROP GRUMMAN CORPORATION

We generate the majority of our business from long-term contracts with the U.S.

44 unchanged sentences

See “Risk Factors” and Notes 1 and 12 to the consolidated financial statements for further information regarding environmental matters.

In 2022, we announced our next generation environmental sustainability goals.

In 2022, we announced our next generation environmental sustainability goals, and in 2023, we announced our goals for water and waste.

These goals focus on Northrop Grumman’s facilities in addition to supply chain partners and customers:

1 unchanged sentence

• Source 50 percent of total electricity from renewable sources by 2030;

• Strengthen leadership in operational footprint reduction through setting and achieving pioneering targets in environmental stewardship by 2025, including potable water use and solid waste to landfill;

• Reduce 10% of absolute water withdrawals, reuse 10% of water withdrawals and replenish 10% of water withdrawals, focusing in water-stressed regions — all by 2030;

• Reduce solid waste sent to landfill and incineration by 10% by 2030;

• In collaboration with key customers, work to develop a pioneering product stewardship program focused on material efficiency, product design and life cycle assessment;

• Update the company’s "Standards of Business Conduct for Suppliers and Other Trading Partners" to incorporate industry-leading sustainability practices by 2023;

• Expand Technology for Conservation initiatives in proximity to Northrop Grumman's U.S.

14 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business