Northrop Grumman paid the government $11.4 million to settle allegations that it improperly charged to its federal contracts certain costs for employees’ deferred compensation awards. In a 2002 settlement with the Defense Contract Management Agency, Northrop promised to limit the amount of deferred compensation included in proposals for new contracts. The government alleged that Northrop had passed along nearly $2 million in improper costs in hundreds of 2004 contracts, in violation of the Federal Acquisition Regulation and the False Claims Act, as well as the terms of the 2002 settlement.