Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 93

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 93
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 or as alternatives to operating results presented in accordance with GAAP. All cash flow metrics are reconciled below.

Free Cash Flow : Net cash provided by operating activities, less capital expenditures. We use free cash flow as a key factor in our planning for, and consideration of, acquisitions, the payment of dividends and stock repurchases.

Adjusted Free Cash Flow (Adjusted FCF) : Net cash provided by operating activities, less capital expenditures, plus proceeds from the sale of equipment to a customer (not otherwise included in net cash provided by or used in operating activities) and the after-tax impact of discretionary pension contributions, if any. Adjusted Free Cash Flow includes proceeds from the sale of equipment to a customer as such proceeds were generated in a customer sales transaction. It also includes the after-tax impact of discretionary pension contributions for consistency and comparability of financial performance.

Adjusted Free Cash Flow Before After-Tax Total Pension Funding : Adjusted Free Cash Flow, as defined above, before the after-tax impact of required pension funding, as approved by the Compensation and Human Capital Committee.

Adjusted Cumulative Free Cash Flow (Adjusted Cumulative FCF) : The aggregate Adjusted Free Cash Flow Before After-Tax Total Pension Funding, as defined above, over a three-year period and after cash flow adjustments, as approved by the Compensation and Human Capital Committee, to adjust for unanticipated impacts to this measure for each three-year period since initial grant setting. As approved by the Compensation and Human Capital Committee, the 2022 grant excludes CAS pension recovery over the three-year period, the impact of unanticipated cash expenditures on a Space Systems program due to international trade restrictions, federal and state tax impacts associated with the sale of a minority investment in an international business, plan-based differences in free cash flow related to unanticipated costs on the B-21 program, and assumptions regarding tax legislation related to research credits at initial grant setting.

Adjusted Cash Flow from Operations : Net cash provided by operating activities, adjusted to include proceeds from sale of equipment to a customer (not otherwise included in net cash provided by operating activities) and to exclude transaction costs as well as federal and state income taxes associated with the IT services divestiture, the after-tax impact of discretionary pension contributions, if any, and other cash flow adjustments as approved by the Compensation and Human Capital Committee. Adjusted Cash Flow from Operations includes proceeds from the sale of equipment to a customer as such proceeds were generated in a customer sales transaction. It excludes the after-tax impact of discretionary pension contributions for consistency and comparability of financial performance. As