Northrop Grumman 2010 Annual Report Download - page 2

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SALES
( $ in millions )
PENSION-ADJUSTED
FULLY DILUTED EPS* ( $ )
ADJUSTED
OPERATING INCOME*
( $ in millions )
DIVIDEND
( per common share )
ADJUSTED FULLY
DILUTED EPS* ( $ )
ADJUSTED
FREE CASH FLOW*
( $ in millions )
$4.76
$5.84
$6.87
100908
$32,315
$33,755
$34,757
100908
$2,534
$2,794
$3,095
100908
$1.57
$1.69
$1.84
100908
$2,550
$2,381
$2,282
100908
$5.26
$5.21
$6.82
100908
SELECTED FINANCIAL HIGHLIGHTS
* Non-GAAP measures
Non-GAAP definitions and reconciliations:
Adjusted operating income represents
operating income before net pension
adjustments of $25 million, $311 million,
and ($263) million for years 2010, 2009, and
2008, respectively; and for 2008 represents
operating loss of $0.263 billion adjusted to
exclude a $3.060 billion goodwill impairment
charge for 2008.
Adjusted fully diluted EPS for 2008 represents
adjusted net earnings of $1.798 billion (which
excludes the 2008 goodwill impairment
charge referenced above) divided by diluted
weighted average common shares outstanding
of 341.6 million. GAAP diluted EPS for 2008
was ($3.77), representing loss from continuing
operations of $1.262 billion divided by basic
weighted average shares outstanding of
334.5million. Basic weighted average shares
outstanding were used because use of the
diluted weighted average shares outstanding
of 341.6 million would have had an anti-
dilutive effect.
Pension-adjusted fully diluted EPS represents
diluted EPS including per share after-tax
net pension adjustments of $0.05, $0.63,
and ($0.50) for years 2010, 2009, and 2008,
respectively; and excluding, for 2008, the
goodwill impairment charge of $3.060 billion.
Free cash flow is cash from operations
less capital expenditures and outsourcing
contract & related software costs. Free cash
flow is reconciled to cash from operations
in the table on page 51 of Part II, Item 7,
“Liquidity and Capital Resources,” in the
Form 10-K included in these materials.
Adjusted free cash flow is free cash flow as
defined and reconciled above before the
after-tax impact of discretionary pension
contributions of $605 million, $462 million,
and $130 million for years 2010, 2009, and
2008, respectively; and $508 million of taxes
paid in 2009 for the sale of the company’s
advisory services business.