Defense contractor Northrop Grumman’s board of directors has agreed to spend an additional $4 billion to repurchase the company’s stock.
The Falls Church-based company said it wants eventually to repurchase 25 percent of its outstanding shares by 2015. So far, it has agreed to spend $5 billion.
As of March 31, the company has 235 million shares outstanding.
Northrop Grumman will use available cash balances and free clash flow to fund the repurchases. The company may also issue debt under its current shelf registration to support accelerated repurchases of shares.