Northrop Grumman 4Q 2012 Non-GAAP Adjusted Net Income up 6% and Annual 2012 Earnings up 4%

Below here are reconciliations of Northrop Grumman's Net Income as Reported and its Non-GAAP Adjusted Net Income for both the 4Qs of 2012 and 2011 and for annual 2012 and 2011:

	4Q	4Q	%		Annual	Annual	%
	2012	2011	Increase		2012	2011	Increase
	mil $s	mil $s	(Decrease)		mil $s	mil $s	(Decrease)
Net Income, as Reported	533	550	-3%		1,978	2,086	-5%
Pension Adjusment	(20)	(64)			(86)	(260)
Non-GAAP Adjusted Net Income	513	486	6%		1,892	1,826	4%

And from the most recent 2011 Proxy Statement filed with the SEC, below here is the executive compensation information for Wesley Bush, the Chairman and CEO of Northrop Grumman for the two years 2010 and 2011:

				Non-equity	Increase
				Incentive	In	All
		Stock	Option	Plan	Pension	Other	Total
Year	Salary	Awards	Awards	Compensation	Value	Compensation	Compensation
	000s	000s	000s	000s	000s	000s	000s
2011	1,471	9,401	3,577	4,028	5,276	2,490	26,243
2010	1,335	8,350	7,155	3,038	700	2,272	22,850
2 Year Total	2,806	17,751	10,732	7,066	5,976	4,762	49,093

Included in Bush's All Other Compensation for 2011 was $2,228,016 for security protection.  Below here is the specific Proxy disclosure on this issue:

The 2011 All Other Compensation for Mr. Bush includes medical, dental, life and disability premiums ($51,616), Company contributions to Northrop Grumman defined contribution plans ($180,350), financial planning/income tax preparation ($22,850) and other perquisites including personal liability insurance and executive physicals for years 2009 through 2011 ($7,000). In addition, the Company incurred $2,228,016 in costs related to security protection for Mr. Bush. These costs included $250,882 attributable to personal travel, including travel expenses for family members accompanying Mr. Bush while on travel, on Company aircraft consistent with the Company’s security program.

But it gets worse on this extravagant security costs provided by Northrop Grumman.

Lewis Coleman is a Director of Northrop Grumman, and also served as Non-Executive Chairman of the Board.  In 2011, Northrop Grumman spent $5,203,559 for security protection.  Below here is the specific Proxy disclosure on this issue:

All Other Compensation amounts include expenses for residential and personal security required for Mr. Coleman. We calculate the cost of travel security coverage based on the hourly rates and overhead fees charged directly to the Company by the firms providing security personnel. If Company security personnel are used, their hourly rates are used to calculate the cost of coverage for each trip. During 2011, the Company incurred $5,203,559 in costs related to security protection related to Mr. Coleman. These costs include $1,515,536 attributable to personal and family member travel on Company aircraft consistent with our security program discussed above and a $174,953 tax gross-up.

Northrop Grumman gets a substantial portion of its Revenues and Earnings from the US Government, thus also from US taxpayers.

When you review many of the above compensation elements of Northrop Grumman related to its CEO and to its Non-Executive Chairman of the Board, it's very difficult for me to understand why the Business Roundtable is now strongly lobbying for both Social Security and Medicare Benefits for retirees to be delayed until Age 70, especially when US Government spending to US Defense Contractors has been so excessive.