Northrop Grumman (NOC) Adds $4B to Repurchase Plan, Plans to Retire 25% Outstanding Shares

May 16, 2013 5:05 PM EDT
Northrop Grumman Corporation (NYSE: NOC) announced today that its board of directors has authorized an additional $4 billion for the repurchase of the company's common stock. With today's authorization, the company's outstanding share repurchase authorizations total approximately $5 billion. Northrop Grumman currently plans to repurchase shares with the goal of retiring approximately 25 percent of its shares outstanding by the end of 2015, market conditions permitting. Share purchases will take place from time to time, subject to market conditions and management's discretion, in the open market or in privately negotiated transactions. As of March 31, 2013, Northrop Grumman had approximately 235 million shares outstanding.

The company will use available cash balances and free cash flow to fund the repurchases. In addition, the company may issue debt under its current shelf registration in order to support accelerated share repurchases.

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