NGC Statement on AASBCA Finding that the Government Improperly Required the Company to Treat $253 M of Post-Retirement Benefits as Allowable Costs

Northrop Grumman Corporation (NYSE: NOC) issued the following statement in response to a July 13 decision by the Armed Services Board of Contract Appeals (ASBCA) finding that the government improperly required Northrop Grumman Corporation to treat $253 million of its post-retirement benefit (PRB) costs as unallowable for government contract cost accounting purposes.

“Northrop Grumman is pleased that the Armed Services Board of Contract Appeals has agreed with the company that the government improperly required Northrop Grumman to treat $253 million of its post-retirement benefit costs as unallowable for government contract cost accounting purposes.  The decision, if upheld on any potential appeal, would apply to certain contracts spanning a 20 year period.”

Source: Northrop Grumman Corporation (NYSE:NOC)
Date: Jul 21, 2017