Northrop Grumman Corp. Advisory Services Conference Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-11-09 09:53:06.0

Tags: Authorization, Oppenheimer & Co., Northrop Grumman Corp., Call Transcript, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Myles Walton with Oppenheimer & Company. Please proceed.

Myles Walton - Oppenheimer & Company

Firstly, a question on the share repurchase authorization. I am curious if there was discussion to authorize more than the proceeds of the transaction. I guess I would have thought even without the transaction, you would have need to do an authorization going into next year?

Jim Palmer

We normally have a conversation with our board around our planning process. Our planning process as you know is in process at this point. And so we were not prepared to have that further conversation around the bigger authorization at this in time. It doesn't mean we won't, its just timing associated with the sale.

Myles Walton - Oppenheimer & Company

From an investment standpoint, should we look at the $1.1 billion as incremental to what you would have otherwise been planning for repurchase?

Jim Palmer

Clearly, it reflects the use of the proceeds from the transaction.

Myles Walton - Oppenheimer & Company

In terms of the [DAR] contribution what was [DAR] for TASC or the Advisory Services in '08?

Jim Palmer

That business is not a very capital intensive business so there wasn't much [DAR] associated with the business.

Myles Walton - Oppenheimer & Company

And regarding you ran through intangibles?

Jim Palmer

We had already ramped through the intangibles so the [DAR] if you will the depreciation is only related to a small amount of fixed assets.

Operator

Your next question comes from the line of Howard Rubel with Jefferies.

Howard Rubel - Jefferies

Is there anything you need to do in terms of looking at overhead now that this business won't absorb some of the overheads that you might have?

Jim Palmer

Well we have been, as I said in my comments, preparing for this possibility for over a year. We did as you know combined the information technology business and Mission System business into information services at the beginning of the year. As part of that process, we took out a significant amount of overhead to begin with.

We will probably still have to continue to refine our overhead structure as we go forward but we got a good leg up on that what we need to do to begin with the just correction of the information services business at the beginning of the year.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
Click Here
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement