LOS ANGELES, Dec. 27 -- In connection with the Oct. 2002 sale of the Aeronautical Systems Division of TRW, Inc. to Goodrich Corporation, TRW retained certain post-closing liabilities, which were subsequently assumed by Northrop Grumman Corporation through its acquisition of TRW.
To resolve the post-closing liabilities that relate to warranty, customer claims, and certain other matters, Northrop Grumman and Goodrich Corporation agreed to a settlement in exchange for a payment to Goodrich of $99 million. This settlement will result in a 2004 fourth quarter after-tax charge to Northrop Grumman's discontinued operations of approximately $10 million. The settlement excludes amounts associated with claims that Goodrich may assert against Northrop Grumman relating to the Airbus A380 actuation systems development program and certain other liabilities retained by TRW under the original acquisition agreement.
Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides a broad array of technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding, and space technology. The company has 125,000 employees and operates in all 50 states and 25 countries and serves U.S. and international military, government and commercial customers.