Northrop Grumman 2014 Annual Report Download - page 81

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NORTHROP GRUMMAN CORPORATION
-72-
This practice is only used at interim periods within a reporting year.
2014
In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Sales $ 5,848 $ 6,039 $ 5,984 $ 6,108
Operating income 845 820 769 762
Net earnings 579 511 473 506
Basic earnings per share 2.68 2.41 2.29 2.52
Diluted earnings per share 2.63 2.37 2.26 2.48
Weighted-average common shares outstanding 216.3 212.4 206.2 200.8
Weighted-average diluted shares outstanding 220.4 215.2 209.2 204.2
Significant 2014 Fourth Quarter Events – In the fourth quarter of 2014, the company repurchased 4.5 million shares
of common stock for $599 million.
2013
In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Sales $ 6,104 $ 6,294 $ 6,106 $ 6,157
Operating income 759 806 790 768
Net earnings 489 488 497 478
Basic earnings per share 2.07 2.09 2.18 2.17
Diluted earnings per share 2.03 2.05 2.14 2.12
Weighted-average common shares outstanding 236.4 234.0 228.2 220.5
Weighted-average diluted shares outstanding 241.0 237.5 232.6 225.2
Significant 2013 Fourth Quarter Events – In the fourth quarter of 2013, the company repurchased 6.6 million shares
of common stock for $699 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, 2014, 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
executive officer and the principal financial officer, as appropriate to allow timely decisions regarding required
disclosure.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
During the three months ended December 31, 2014, no change occurred in our internal controls over financial
reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial
reporting. On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
published an updated Internal Control - Integrated Framework (2013) and related illustrative documents. The
company adopted the new framework in 2014.