2015 Corporate Responsibility Report

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Business

Financial Performance Highlights

As of January 2016, there were approximately 25,000 Northrop Grumman common stockholders. As a public company, we communicate regularly with our shareholders, including through our quarterly financial reports and other filings with the Securities and Exchange Commission, postings on the Investor Relations section of our website, regular public announcements and meetings. We report to our Board of Directors regarding our performance for shareholders, customers and employees against financial and non-financial metrics, which factor into executive compensation. Our 2015 financial performance metrics were operating margin, free cash flow conversion, return on net assets, net income and awards. Our non-financial metrics were quality and customer satisfaction, environmental sustainability, employee engagement, diversity and safety.