Northrop Grumman 2012 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2012 Northrop Grumman annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

NORTHROP GRUMMAN CORPORATION
-75-
15. UNAUDITED SELECTED QUARTERLY DATA
Unaudited quarterly financial results are set forth in the following tables. It is the company’s long-standing practice
to establish actual interim closing dates using a “fiscal” calendar, which requires the businesses to close their books
on a Friday, in order to normalize the potentially disruptive effects of quarterly close on business processes. The
effects of this practice only exist within a reporting year.
2012
In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Sales $6,198 $6,274 $6,270 $6,476
Operating income 796 774 736 824
Net earnings 506 480 459 533
Basic earnings per share 2.00 1.91 1.86 2.19
Diluted earnings per share 1.96 1.88 1.82 2.14
Weighted-average common shares outstanding 253.1 250.8 247.2 243.4
Weighted-average diluted shares outstanding 258.0 254.7 252.1 248.9
Significant 2012 Fourth Quarter Events – In the fourth quarter of 2012, the company repurchased 7.3 million shares
of common stock for $487 million.
2011
In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Sales $6,734 $6,560 $6,612 $6,506
Operating income 811 841 825 799
Net earnings 530 520 520 548
Basic earnings per share 1.82 1.84 1.89 2.12
Diluted earnings per share 1.79 1.81 1.86 2.09
Weighted-average common shares outstanding 291.8 282.6 274.9 258.2
Weighted-average diluted shares outstanding 296.9 287.2 279.3 262.7
In the first quarter of 2011, net earnings included $34 million from discontinued operations, and earnings per share
included $0.12 from discontinued operations. In the fourth quarter of 2011, net earnings included a $2 million loss
from discontinued operations, and basic earnings per share included a $0.01 reduction due to discontinued
operations.
Significant 2011 Fourth Quarter Events – In the fourth quarter of 2011, the company made a $500 million
contribution to the company’s pension plans. Additionally, the company repurchased 11.8 million shares of common
stock for $649 million.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
DISCLOSURE CONTROLS AND PROCEDURES
Our principal executive officer (Chairman, Chief Executive Officer and President) and principal financial officer
(Corporate Vice President and Chief Financial Officer) have evaluated the company’s disclosure controls and
procedures as of December 31, 2012, and have concluded that these controls and procedures are effective to ensure
that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange
Act of 1934 (15 USC § 78a et seq) is recorded, processed, summarized, and reported within the time periods
specified in the Securities and Exchange Commission’s rules and forms. These disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that information required to be disclosed in
the reports that we file or submit is accumulated and communicated to management, including the principal