NORTHROP GRUMMAN CORP /DE/ — Director's Dealing 2018

Feb 15, 2018

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: NORTHROP GRUMMAN CORP /DE/ (NOC)
CIK: 0001133421
Period of Report: 2018-02-13

Reporting Person: Hardesty Michael A (Corp VP, Controller & CAO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2018-02-13	Common Stock	M	3128.2800	$0.0000	Acquired	12678.6400	Direct
2018-02-13	Common Stock	F	1097.0000	$0.0000	Disposed	11581.6400	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2018-02-13	Restricted Performance Stock Rights	$	A	2215.2800	Acquired		Common Stock (2215.2800)	Direct
2018-02-13	Restricted Performance Stock Rights	$	M	3128.2800	Disposed		Common Stock (3128.2800)	Direct
2018-02-13	Restricted Stock Rights	$	A	632.0000	Acquired		Common Stock (632.0000)	Direct

Footnotes

F1: Shares expected to be issued in settlement of Restricted Performance Stock Rights ("RPSRs") granted under the 2011 Long-Term Incentive Stock Plan ("LTISP") on 2/18/15 with a valuation of performance measurement period ("measurement period") that ended 12/31/17. RPSRs to be settled at 131% of target. The shares are anticipated to be distributed into the participant's account on February 22, 2018.

F2: Shares surrendered to issuer in payment of tax liability in connection with settlement of RPSRs in accordance with Rule 16b-3(e).

F3: Each RPSR represents a contingent right to receive an equivalent number of shares of Issuer common stock, or, at the Issuer's election, cash or a combination of cash and Issuer common stock. The RPSRs vest if the application performance metric is satisfied for the relevant measurement period. Grants awarded pursuant to Rule 16b-3(d).

F4: The RPSRs acquired include (i) 740.28 vested RPSRs with respect to the measurement period ended 12/31/17 acquired due to settlement of the 2015 RPSRs held at 131% of the target award and (ii) 1,475 unvested RPSRs granted under the LTISP on 2/13/18 with a measurement period ending on 12/31/20.

F5: Total amount includes 3,128.28 vested RPSRs granted under the LTISP on 2/18/15 with a measurement period ended on 12/31/17; 1,475 RPSRs granted on 2/13/18 with a measurement period ending on 12/31/20; 1,786 RPSRs granted on 2/17/17 with a measurement period ending on 12/31/19; and 2,211 RPSRs granted on 2/17/16 with a measurement period ending on 12/31/18.

F6: Total amount includes 1,475 RPSRs granted on 2/13/18 with a measurement period ending on 12/31/20; 1,786 RPSRs granted on 2/17/17 with a measurement period ending on 12/31/19; and 2,211 RPSRs granted on 2/17/16 with a measurement period ending on 12/31/18.

F7: Each Restricted Stock Right ("RSR") represents a contingent right to receive an equivalent number of shares of Issuer common stock, or, at the election of the Issuer's Compensation Committee, cash or a combination of cash and Issuer common stock. The RSRs were granted under the LTISP on 2/13/18 and will vest on 2/13/21.

F8: Total amount includes 632 RSRs granted under the LTISP on 2/13/18 that will vest on 2/13/21; 765 RSRs granted under the LTISP on 2/17/17 that will vest on 2/17/20; 947 RSRs granted under the LTISP on 2/17/16 that will vest on 2/17/19; and 1,023 RSRs granted under the LTISP on 2/18/15 that will vest on 2/18/18.