Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age

Northrop Grumman Corp., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Land and land improvements	741)	636)	628)	619)	636)
Buildings and improvements	3,272)	3,019)	2,762)	2,575)	2,139)
Machinery and other equipment	8,774)	8,064)	7,206)	6,997)	6,618)
Capitalized software costs	524)	481)	602)	606)	603)
Leasehold improvements	2,747)	2,513)	2,208)	1,965)	1,745)
Property, plant and equipment, at cost	16,058)	14,713)	13,406)	12,762)	11,741)
Accumulated depreciation	(7,258)	(6,819)	(6,335)	(5,850)	(5,369)
Property, plant and equipment, net	8,800)	7,894)	7,071)	6,912)	6,372)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Property, plant and equipment, at cost	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Northrop Grumman Corp. property, plant and equipment, at cost increased from 2020 to 2021 and from 2021 to 2022.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Northrop Grumman Corp. property, plant and equipment, net increased from 2020 to 2021 and from 2021 to 2022.

Northrop Grumman Corp., asset age ratios

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Average age ratio	47.39%	48.44%	49.58%	48.18%	48.35%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Northrop Grumman Corp. average age ratio of depreciable property, plant and equipment improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation	7,258)	6,819)	6,335)	5,850)	5,369)
Property, plant and equipment, at cost	16,058)	14,713)	13,406)	12,762)	11,741)
Land and land improvements	741)	636)	628)	619)	636)
Asset Age Ratio
Average age¹	47.39%	48.44%	49.58%	48.18%	48.35%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, at cost – Land and land improvements)
= 100 × 7,258 ÷ (16,058 – 741) = 47.39%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Northrop Grumman Corp. average age ratio of depreciable property, plant and equipment improved from 2020 to 2021 and from 2021 to 2022.

Northrop Grumman Corp. (NYSE:NOC)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age