Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Northrop Grumman Corp., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Product	7,271)	7,923)	6,979)	6,779)	6,841)	6,808)	6,845)	7,193)	7,022)	7,690)	6,667)	6,482)	6,176)	6,247)	5,997)	5,880)	5,728)	5,776)	5,614)	4,790)	4,289)
Service	2,030)	2,110)	1,992)	2,022)	1,956)	1,831)	1,875)	1,958)	2,135)	2,522)	2,416)	2,402)	2,444)	2,474)	2,478)	2,576)	2,461)	2,380)	2,471)	2,329)	2,446)
Sales	9,301)	10,033)	8,971)	8,801)	8,797)	8,639)	8,720)	9,151)	9,157)	10,212)	9,083)	8,884)	8,620)	8,721)	8,475)	8,456)	8,189)	8,156)	8,085)	7,119)	6,735)
Product	(5,727)	(6,511)	(5,589)	(5,281)	(5,380)	(5,647)	(5,352)	(5,620)	(5,690)	(6,134)	(5,346)	(5,127)	(4,952)	(4,720)	(4,777)	(4,661)	(4,517)	(4,585)	(4,233)	(3,698)	(3,269)
Service	(1,589)	(1,698)	(1,564)	(1,561)	(1,544)	(1,441)	(1,434)	(1,488)	(1,727)	(1,988)	(1,897)	(1,931)	(1,946)	(1,895)	(1,971)	(2,065)	(1,976)	(1,884)	(1,863)	(1,865)	(1,907)
Cost of sales	(7,316)	(8,209)	(7,153)	(6,842)	(6,924)	(7,088)	(6,786)	(7,108)	(7,417)	(8,122)	(7,243)	(7,058)	(6,898)	(6,615)	(6,748)	(6,726)	(6,493)	(6,469)	(6,096)	(5,563)	(5,176)
Gross profit	1,985)	1,824)	1,818)	1,959)	1,873)	1,551)	1,934)	2,043)	1,740)	2,090)	1,840)	1,826)	1,722)	2,106)	1,727)	1,730)	1,696)	1,687)	1,989)	1,556)	1,559)
General and administrative expenses	(1,038)	(918)	(974)	(1,005)	(976)	(809)	(891)	(999)	(898)	(938)	(855)	(832)	(788)	(970)	(776)	(784)	(760)	(744)	(817)	(739)	(711)
Gain on sale of business	—)	—)	—)	—)	—)	—)	—)	—)	1,980)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Operating income	947)	906)	844)	954)	897)	742)	1,043)	1,044)	2,822)	1,152)	985)	994)	934)	1,136)	951)	946)	936)	943)	1,172)	817)	848)
Interest expense	(129)	(120)	(122)	(131)	(133)	(133)	(132)	(136)	(155)	(160)	(154)	(154)	(125)	(130)	(123)	(137)	(138)	(142)	(133)	(144)	(143)
Non-operating FAS pension benefit	132)	376)	376)	377)	376)	368)	367)	367)	367)	291)	302)	303)	302)	200)	200)	200)	200)	267)	270)	258)	254)
Mark-to-market pension and OPB benefit (expense)	—)	1,232)	—)	—)	—)	2,355)	—)	—)	—)	(1,034)	—)	—)	—)	(1,800)	—)	—)	—)	(655)	—)	—)	—)
Other, net	48)	58)	(8)	(50)	4)	13)	(3)	27)	(18)	56)	34)	60)	(58)	25)	27)	19)	36)	(10)	55)	45)	40)
Other income (expense)	51)	1,546)	246)	196)	247)	2,603)	232)	258)	194)	(847)	182)	209)	119)	(1,705)	104)	82)	98)	(540)	192)	159)	151)
Earnings before income taxes	998)	2,452)	1,090)	1,150)	1,144)	3,345)	1,275)	1,302)	3,016)	305)	1,167)	1,203)	1,053)	(569)	1,055)	1,028)	1,034)	403)	1,364)	976)	999)
Federal and foreign income tax expense	(156)	(372)	(175)	(204)	(189)	(635)	(212)	(265)	(821)	25)	(181)	(198)	(185)	160)	(122)	(167)	(171)	(47)	(120)	(187)	(159)
Net earnings	842)	2,080)	915)	946)	955)	2,710)	1,063)	1,037)	2,195)	330)	986)	1,005)	868)	(409)	933)	861)	863)	356)	1,244)	789)	840)

Revenue Trends: The total sales demonstrated a general upward trend from March 2018 to December 2020, growing from $6,735 million to $10,212 million. This growth was driven by increases in both product and service revenues, with product sales exhibiting more variability but generally increasing, especially in the latter quarters. Service revenues remained more stable but showed a slight decline from early 2021 onward. From March 2021 to March 2023, sales fluctuated around $9,000 to $10,000 million, indicating some degree of volatility but generally maintaining a high level compared to earlier periods.
Cost of Sales and Gross Profit: Cost of sales rose consistently over the period, from approximately $5,176 million in March 2018 to a peak of $8,209 million in December 2022, reflecting increased operational scale or cost pressures. Gross profit margins showed significant fluctuations: starting at $1,559 million in March 2018, peaking in December 2020 at $2,090 million, then experiencing periods of decline and recovery. The highest gross profit was recorded in December 2021 at $2,043 million, followed by a decrease and some recovery toward early 2023. This volatility may suggest varying efficiency or cost control challenges amid changing sales volumes.
Operating Expenses and Income: General and administrative expenses consistently increased over the period, from $711 million in early 2018 to over $1,000 million by early 2023, indicating rising overhead costs. Operating income showed cyclic tendencies matching the revenue and cost fluctuations, with notable expansions such as in December 2020 when it surged to $2,822 million, likely influenced by a one-time gain from a business sale recorded in the same quarter. Excluding this item, operating income remained relatively stable, fluctuating mostly between $742 million and $1,152 million in other quarters.
Other Income & Expenses and Earnings Before Taxes: Other income and expense lines were volatile, with substantial negative impacts in certain quarters, such as the marked expenses related to mark-to-market pension and other post-retirement benefits in December 2018 and December 2020. Non-operating pension benefits generally contributed positively, though the magnitude varied. Earnings before income taxes reflected these fluctuations and non-recurring events, swinging from positive peaks exceeding $3,000 million to negative results, notably in December 2019. However, overall, earnings before taxes remained positive in most quarters, exhibiting resilience despite episodic challenges.
Net Earnings: Net earnings followed a volatile pattern consistent with operating results and extraordinary items. From a baseline of $840 million in March 2018, net earnings experienced highs exceeding $2,700 million in December 2021 (likely inflated by the business sale gain) and lows including a negative $409 million in December 2019. Excluding outliers related to one-time gains and pension adjustments, net earnings maintained a relatively stable range between approximately $800 million and $1,100 million across the observed periods. The data suggests overall profitability with intermittent periods of pressure.

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Northrop Grumman Corp. (NYSE:NOC)

Income Statement Quarterly Data

Income Statement
Quarterly Data