Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 96

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 96
---
, Invested Capital excludes the impact on retained earnings related to accumulated other comprehensive income (loss) (AOCI/(AOCL), cumulative MTM benefits (expenses) from 2021 onward after federal and state taxes, and the 2021 IT services divestiture, including the gain on sale of the business, associated federal and state income tax expenses, transaction costs, and the make-whole premium for early debt redemption. Approved adjustments also include impacts resulting from the charge on the low-rate initial production phase of the B-21 program (including the related federal and state tax impacts), plan-based differences in free cash flow related to unanticipated costs on the B-21 program, assumptions regarding tax legislation related to research credits at the time of grant setting, the gain

#### 2025 Proxy Statement105

### Appendix A – Use of Non-GAAP Financial Measures
on sale of a minority investment in an international business, the loss on divestiture of a small international subsidiary, as well as the federal tax impacts of each sale.

#### 106Northrop Grumman

### Appendix A – Use of Non-GAAP Financial Measures

#### Reconciliation of Non-GAAP Financial Measures
| ($M)                                                           
 Cash Flow Metrics                                              |     | Total Year 
 2024       |     |        |     | 2023 |     |        |     | 2022 |     |        |
|:---------------------------------------------------------------|:----|:-----------|:----|-------:|:----|:-----|:----|-------:|:----|:-----|:----|-------:|
| Net cash provided by operating activities                      |     | $          |     |  4,388 |     | $    |     |  3,875 |     | $    |     |  2,901 |
| Capital expenditures                                           |     |            |     | -1,767 |     |      |     | -1,775 |     |      |     | -1,435 |
| Free Cash Flow                                                 |     | $          |     |  2,621 |     | $    |     |  2,100 |     | $    |     |  1,466 |
| Proceeds from sale of equipment to a customer                  |     |            |     |      — |     |      |     |      — |     |      |     |    155 |
| Adjusted Free Cash Flow                                        |     | $          |     |