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<PAGE> 1
SECURITIES AND EXCHANGE COMMISION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT TO APPLICATION OR REPORT FILED
PURSUANT TO SECTION 12, 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
GENERAL DYNAMICS CORPORATION
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items,
financial statements, exhibits or other portions of its 1994 Annual Report on
Form 10-K as set forth in the pages attached hereto.
Index to Exhibits
Exhibit 99(d), Annual Report on Form 11-K for the
General Dynamics Corporation Savings and Stock
Investment Plan.
Exhibit 99(e), Annual Report on Form 11-K for the
General Dynamics Corporation Hourly Employees
Savings and Stock Investment Plan.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereto duly authorized.
GENERAL DYNAMICS CORPORATION
By /s/ E. A. KLOBASA
E. A. Klobasa
Secretary
June 27, 1995
-1-
<PAGE> 2
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Note Exhibit
Number Number Description
- ------ ------ -----------
<S> <C> <C>
(9) 3-1A --Restated Certificate of Incorporation, effective May 21, 1991
3-2B --Bylaws as amended effective May 4, 1994
(1) 10-1A --Amendment of Mining Leases between American National Bank and Trust
of Chicago, Trustee, and La Salle National Bank, Trustee, to Freeman Coal
Mining Corporation, dated January 1, 1960
(1) 10-1B --Amendatory Agreement between Freeman United Coal Mining Company and
American National Bank and Trust Company, as Trustee, and La Salle National
Bank, as Trustee, dated January 1, 1975
(4) 10-3 --Facilities Contract N-00024-87-E-5409 between the United States and the
company as amended, relating to facilities at Pomona, California, dated
March 13, 1987
(6) 10-3A --Modifications #A0013, A0014, P00001 to Facilities Contract N00024-87-E-5409
(1) 10-4A --Facilities Contract F33657-83-E-2119 between the United States and the
company, as amended, relating to Air Force Plant 19, San Diego, California,
dated July 1, 1983
(8) 10-4B --Modification #P00014 to Facilities Contract F33657-83-E-2119
(1) 10-4C --Lease between San Diego Unified Port District and the company relating
to facilities at Lindbergh Field, San Diego, California, dated October 9, 1979
(1) 10-4D --Lease Amendment between San Diego Unified Port District and the company
relating to facilities at Lindbergh Field, San Diego, California, dated
August 2, 1983
(5) 10-6A --General Dynamics Corporation Incentive Compensation Plan adopted February 3,
1988, approved by the shareholders on May 4, 1988
(8) 10-6B --General Dynamics Corporation Incentive Compensation Plan (as amended),
approved by shareholders on May 1, 1991
(3) 10-7C-2 --Facilities Contract DAAE07-83-E-A001 dated August 29, 1983, and 1984
modifications between the company's General Dynamics Land Systems Inc.
subsidiary and the United States relating to Government owned facilities and
equipment located at the company's facility at Sterling Heights, Michigan
(2) 10-7D --Facilities Contract DAAE07-83-E-A007 dated January 29, 1983, between the
company's General Dynamics Land Systems Inc. subsidiary and the United States
relating to Government-owned facilities at the Scranton Defense Plant, Eynon,
Pennsylvania
(8) 10-7E --Facilities Contract DAAE07-90-E-A001 dated June 24, 1990, between the
company's General Dynamics Land Systems Inc. subsidiary and the United States
relating to the company's facilities at the Lima Army Tank Plant, Lima, Ohio
(8) 10-7F --Facilities Contract DAAE07-91-E-A002 dated December 21, 1990, between the
company's General Dynamics Land Systems Inc. subsidiary and the United States
relating to the company's facilities at the Detroit Arsenal Tank Plant,
Warren, Michigan
10-8B --General Dynamics Corporation Retirement Plan for Directors adopted March 6,
1986, as amended May 5, 1993
(7) 10-13 --Indenture of Lease dated January 1, 1986, by and between State of Rhode Island
and Providence Plantations and Rhode Island Port Authority and Economic
Development Corporation and the company
(7) 10-14 --Lease Agreement dated November 28, 1978, as amended January 15, 1989, between
Rhode Island Port Authority and Economic Development Corporation and the
company
(10) 10-18 --Employment Agreement between the company and James R. Mellor dated as of
March 17, 1993
(10) 10-19 --Separation Agreement between the company and Lester Crown dated as of
March 15, 1993
</TABLE>
-2-
<PAGE> 3
<TABLE>
<S> <C> <C>
(10) 10-22 --Form of Agreement entered into in 1993 between the company and Corporate
Officers who were being retained in employment with the company
(11) 10-23 --Employment agreement between the company and Nicholas D. Chabraja, dated
February 3, 1993, as amended December 22, 1993
</TABLE>
<TABLE>
<CAPTION>
Note Exhibit
Number Number Description
- ------ ------ -----------
<S> <C> <C>
11 --Statement re computation of per share earnings
13 --1994 Shareholder Report (pages 14-34)
21 --Subsidiaries
23 --Consent of Independent Public Accountants
24-A --Power of Attorney of the Board of Directors
24-B --Power of Attorney of Michael J. Mancuso, Principal Financial Officer
and John W. Schwartz, Principal Accounting Officer
27 --Financial Data Schedule
99(d) --1994 Annual Report on Form 11-K for the General Dynamics Corporation Savings
and Stock Investment Plan
99(e) --1994 Annual Report on Form 11-K for the General Dynamics Corporation Hourly
Employees Savings and Stock Investment Plan
</TABLE>
NOTES
<TABLE>
<S> <C>
(1) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1980, and
filed with the Commission March 31, 1981, and incorporated herein by reference.
(2) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1982, and
filed with the Commission March 30, 1983, and incorporated herein by reference.
(3) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1984, and
filed with the Commission April 1, 1985, and incorporated herein by reference.
(4) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1986, and
filed with the Commission March 31, 1987, and incorporated herein by reference.
(5) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1987, and
filed with the Commission March 17, 1988, and incorporated herein by reference.
(6) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1988, and
filed with the Commission March 23, 1989, and incorporated herein by reference.
(7) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1989, and
filed with the Commission March 30, 1990, and incorporated herein by reference.
(8) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1990, and
filed with the Commission March 29, 1991, and incorporated herein by reference.
(9) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1991, and
filed with the Commission March 26, 1992, and incorporated herein by reference.
(10) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1992, and
filed with the Commission March 30, 1993, and incorporated herein by reference.
</TABLE>
-3-
<PAGE> 4
<TABLE>
<S> <C>
(11) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1993, and
filed with the Commission March 29, 1994, and incorporated herein by reference.
</TABLE>
-4-
<PAGE> 1
ADDITIONAL EXHIBIT 99(d) TO
ANNUAL REPORT ON FORM 10-K
OF GENERAL DYNAMICS CORPORATION
SEC FILE NO. 1-3671
SECURITIES AND EXCHANGE COMMISION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
A. Full title of the Plan and the address of the Plan, if different from
the issuer named below:
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
B. Name of the issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
GENERAL DYNAMICS CORPORATION
3190 FAIRVIEW PARK DRIVE
FALLS CHURCH, VIRGINIA 22042-4523
-5-
<PAGE> 2
GENERAL DYNAMICS CORPORATION
INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
Pages of this
Form 11-K
---------------
<S> <C> <C>
(a) FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits, 8-9
December 31, 1994 and 1993
Statements of Changes in Net Assets Available for Benefits 10-12
- Fiscal Years Ended December 31, 1994, December 31, 1993
and December 31, 1992
Schedule I - Combined Statement of Investments 13-26
of Master Trust Funds
Notes to Financial Statements 27-33
Report of Independent Public Accountants 34
(b) SIGNATURE 7
(c) EXHIBITS
Consent of Independent Public Accountants 7
</TABLE>
-6-
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan Administrator has caused this Annual Report to be signed by the
undersigned thereunto duly authorized.
GENERAL DYNAMICS CORPORATION
As Plan Administrator of the General
Dynamics Corporation Savings and
Stock Investment Plan
by /s/ E. A. Klobasa
--------------------
E. A. Klobasa
Secretary
June 27, 1995
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report included in this Form 11-K, into General Dynamics
Corporation's previously filed Registration Statement on Form S-8, File No.
2-23904.
by /s/ Arthur Andersen LLP
-------------------------
ARTHUR ANDERSEN LLP
Washington, D.C.,
June 27, 1995
-7-
<PAGE> 4
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
FUNDS
---------------------------------------------------
COMPANY GOVERNMENT DIVERSIFIED
TOTAL STOCK BONDS PORTFOLIO
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investment in common stock of
General Dynamics Corporation,
at market value - 5,544,967 shares
(Cost $131,482,483)-
Participant-directed $ 122,900,407 $122,900,407 $ - $ -
Non-participant-directed 118,305,649 118,305,649 - -
Investments in securities of
unaffiliated issuers, at market
value
U.S. Government bonds
(Cost $135,195,710) 132,638,709 - 132,638,709 -
Other securities
(Cost $315,394,237) 310,896,886 - - 283,357,946
Insurance company contracts, at
contract value 1,356,917,217 - - -
Loans receivable (payable) 28,247,637 28,415 (5,553) (9,091)
Amounts receivable from (payable to)
General Dynamics Corporation 294,110 260,570 (15,776) (6,642)
-------------- ------------ ------------ ------------
Total Assets $2,070,200,615 $241,495,041 $132,617,380 $283,342,213
============== ============ ============ ============
LIABILITIES:
Fund transfers $ - $ 397,573 $ 3,270,510 $ 1,543,100
Administrative fees payable 338,476 22,813 24,281 153,646
Loans payable (receivable) - 32,876 122,019 292,955
-------------- ------------ ------------ ------------
Total Liabilities 338,476 453,262 3,416,810 1,989,701
-------------- ------------ ------------ ------------
Net Assets Available for Benefits $2,069,862,139 $241,041,779 $129,200,570 $281,352,512
============== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
---------------------------------------------------
FIXED SPECIAL
INCOME DISTRIBUTION LOAN
-------------- ------------ -----------
<S> <C> <C> <C>
ASSETS:
Investment in common stock of
General Dynamics Corporation,
at market value - 5,544,967 shares
(Cost $131,482,483)-
Participant-directed $ - $ - $ -
Non-participant-directed - - -
Investments in securities of
unaffiliated issuers, at market
value
U.S. Government bonds
(Cost $135,195,710) - - -
Other securities
(Cost $315,394,237) - 27,538,940 -
Insurance company contracts, at
contract value 1,356,917,217 - -
Loans receivable (payable) 31,055 - 28,202,811
Amounts receivable from (payable to)
General Dynamics Corporation 56,775 (817) -
-------------- ----------- -----------
Total Assets $1,357,005,047 $27,538,123 $28,202,811
============== =========== ===========
LIABILITIES:
Fund transfers $ (5,453,681) $ 242,498 $ -
Administrative fees payable 134,593 3,143 -
Loans payable (receivable) 1,016,708 39,142 (1,503,700)
-------------- ----------- -----------
Total Liabilities (4,302,380) 284,783 (1,503,700)
-------------- ----------- -----------
Net Assets Available for Benefits $1,361,307,427 $27,253,340 $29,706,511
============== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 8 -
<PAGE> 5
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1993
<TABLE>
<CAPTION>
FUNDS
---------------------------------------------------
COMPANY GOVERNMENT DIVERSIFIED
TOTAL STOCK BONDS PORTFOLIO
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investment in common stock of
General Dynamics Corporation,
at market value - 5,351,622 shares
(Cost $113,300,179)-
Participant-directed $ 132,336,643 $132,336,643 $ - $ -
Non-participant-directed 114,506,924 114,506,924 - -
Investments in securities of
unaffiliated issuers, at market
value-
U.S. Government bonds
(Cost $173,797,308) 172,048,842 - 172,048,842 -
Other securities
(Cost $335,076,607) 370,517,163 - - 336,073,582
Insurance company contracts, at
contract value 1,387,331,460 - - -
Loans receivable 39,831,476 62,565 6,444 54,354
Amounts receivable from (payable to)
General Dynamics Corporation 112,969 304,601 5,258 (39,908)
-------------- ------------ ------------ ------------
Total Assets $2,216,685,477 $247,210,733 $172,060,544 $336,088,028
============== ============ ============ ============
LIABILITIES:
Fund transfers $ - $ 1,554,007 $ 4,925,397 $ (2,273,621)
Administrative fees payable 327,335 27,515 76,935 56,751
Loans payable (receivable) - 91,417 254,657 464,935
-------------- ------------ ------------ ------------
Total Liabilities 327,335 1,672,939 5,256,989 (1,751,935)
-------------- ------------ ------------ ------------
Net Assets Available for Benefits $2,216,358,142 $245,537,794 $166,803,555 $337,839,963
============== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
-----------------------------------------------------
FIXED SPECIAL
INCOME DISTRIBUTION LOAN
---------------- --------------- ------------
<S> <C> <C> <C>
ASSETS:
Investment in common stock of
General Dynamics Corporation,
at market value - 5,351,622 shares
(Cost $113,300,179)-
Participant-directed $ - $ - $ -
Non-participant-directed - - -
Investments in securities of
unaffiliated issuers, at market
value-
U.S. Government bonds
(Cost $173,797,308) - - -
Other securities
(Cost $335,076,607) - 34,443,581 -
Insurance company contracts, at
contract value 1,387,331,460 - -
Loans receivable 40,981 - 39,667,132
Amounts receivable from (payable to)
General Dynamics Corporation (140,556) (16,426) -
-------------- ----------- -----------
Total Assets $1,387,231,885 $34,427,155 $39,667,132
============== =========== ===========
LIABILITIES:
Fund transfers $ (4,346,665) $ 140,882 $ -
Administrative fees payable 161,342 4,792 -
Loans payable (receivable) 1,386,523 78,268 (2,275,800)
-------------- ----------- -----------
Total Liabilities (2,798,800) 223,942 (2,275,800)
-------------- ----------- -----------
Net Assets Available for Benefits $1,390,030,685 $34,203,213 $41,942,932
============== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 9 -
<PAGE> 6
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
FUNDS
--------------------------------------------------------------
COMPANY STOCK
---------------------------
NON-
PARTICIPANT- PARTICIPANT- GOVERNMENT DIVERSIFIED
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO
------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME-
Dividends $ 13,805,559 $ 4,579,368 $ 2,692,485 $ - $ 6,533,706
Interest 120,380,699 39,557 23,258 8,406,925 304,600
-------------- ------------ ----------- ------------ ------------
134,186,258 4,618,925 2,715,743 8,406,925 6,838,306
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON ASSETS SOLD
OR DISTRIBUTED 29,562,518 6,344,078 3,730,063 (8,081,614) 27,553,531
UNREALIZED (DEPRECIATION) OF ASSETS (64,567,051) (15,000,262) (8,819,552) (808,536) (39,937,905)
ROLLOVER CONTRIBUTIONS 52,245 - - - 13,453
DEPOSITS BY PARTICIPANTS 31,855,271 16,824,997 - 1,247,427 3,573,442
CONTRIBUTIONS BY GENERAL DYNAMICS
CORPORATION 21,554,456 31,880 21,596,317 (1,448) (27,159)
LOAN REPAYMENTS 2,354,458 7,509,120 - 1,161,504 3,006,914
LOANS ISSUED - (221,112) - (859,798) (2,368,095)
TRANSFER BETWEEN INVESTMENT FUNDS - (2,104,645) - (13,257,170) (2,643,565)
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (298,392,316) (25,730,425) (15,817,671) (25,155,882) (50,704,404)
PLAN EXPENSES (3,101,842) (173,471) - (254,393) (1,791,969)
-------------- ------------ ----------- ------------ ------------
Net increase (decrease) (146,496,003) (7,900,915) 3,404,900 (37,602,985) (56,487,451)
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 2,216,358,142 152,338,375 93,199,419 166,803,555 337,839,963
-------------- ------------ ----------- ------------ ------------
END OF YEAR $2,069,862,139 $144,437,460 $96,604,319 $129,200,570 $281,352,512
============== ============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
-------------------------------------------------
SPECIAL
FIXED INCOME DISTRIBUTION LOAN
-------------- ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME-
Dividends $ - $ - $ -
Interest 110,369,770 1,236,589 -
-------------- ------------- -----------
110,369,770 1,236,589 -
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON ASSETS SOLD
OR DISTRIBUTED 16,460 - -
UNREALIZED (DEPRECIATION) OF ASSETS (796) - -
ROLLOVER CONTRIBUTIONS 38,792 - -
DEPOSITS BY PARTICIPANTS 10,209,405 - -
CONTRIBUTIONS BY GENERAL DYNAMICS
CORPORATION (31,400) (13,734) -
LOAN REPAYMENTS 8,097,757 - (17,420,837)
LOANS ISSUED (6,890,467) (253,228) 10,592,700
TRANSFER BETWEEN INVESTMENT FUNDS 20,266,976 (2,261,596) -
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (169,941,643) (5,634,007) (5,408,284)
PLAN EXPENSES (858,112) (23,897) -
-------------- ------------- -----------
Net increase (decrease) (28,723,258) (6,949,873) (12,236,421)
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 1,390,030,685 34,203,213 41,942,932
-------------- ------------- -----------
END OF YEAR $1,361,307,427 $27,253,340 $29,706,511
============== ============= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 10 -
<PAGE> 7
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
FUNDS
--------------------------------------------------------------
COMPANY STOCK
---------------------------
NON-
PARTICIPANT- PARTICIPANT- GOVERNMENT DIVERSIFIED
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO
------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME -
Dividends $ 11,200,461 $ 2,664,001 $ 1,418,161 $ - $ 7,118,299
Interest 128,273,433 39,850 21,214 11,549,129 418,249
-------------- ------------ ----------- ------------ ------------
139,473,894 2,703,851 1,439,375 11,549,129 7,536,548
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON ASSETS
SOLD OR DISTRIBUTED 58,960,545 16,622,301 8,848,754 976,965 30,955,487
UNREALIZED APPRECIATION (DEPRECIATION) OF (1,176,379) 5,170,811 2,752,640 (2,822,877) (6,332,493)
ASSETS
NET GAIN FROM SPECIAL DISTRIBUTION 61,228,410 38,573,898 22,654,512 - -
ROLLOVER CONTRIBUTIONS 268,253 14,536 - 9,833 101,073
DEPOSITS BY PARTICIPANTS 48,312,194 23,829,608 - 2,400,830 5,412,697
CONTRIBUTIONS BY GENERAL DYNAMICS 31,912,199 (4,691) 32,209,443 (9,548) (95,856)
CORPORATION
LOAN REPAYMENTS 3,253,909 9,619,030 - 2,028,645 4,065,270
LOANS ISSUED - (269,065) - (2,153,006) (3,956,009)
TRANSFER BETWEEN INVESTMENT FUNDS - (69,796,128) (45,936,310) (12,347,075) 47,358,473
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (469,627,619) (38,973,389) (25,620,868) (50,040,266) (74,127,643)
PLAN EXPENSES (3,966,342) (210,823) - (398,262) (2,073,904)
-------------- ------------ ----------- ------------ ------------
NET INCREASE (DECREASE) (131,360,936) (12,720,061) (3,652,454) (50,805,632) 8,843,643
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 2,347,719,078 165,058,436 96,851,873 217,609,187 328,996,320
-------------- ------------ ----------- ------------ ------------
END OF YEAR $2,216,358,142 $152,338,375 $93,199,419 $166,803,555 $337,839,963
============== ============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
-------------------------------------------------
SPECIAL
FIXED INCOME DISTRIBUTION LOAN
-------------- ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ - $ - $ -
Interest 114,417,883 1,827,108 -
-------------- ------------- -----------
114,417,883 1,827,108 -
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON ASSETS
SOLD OR DISTRIBUTED 1,946,511 (389,473) -
UNREALIZED APPRECIATION (DEPRECIATION) OF (28,232) 83,772 -
ASSETS
NET GAIN FROM SPECIAL DISTRIBUTION - - -
ROLLOVER CONTRIBUTIONS 141,770 1,041 -
DEPOSITS BY PARTICIPANTS 16,669,055 4 -
CONTRIBUTIONS BY GENERAL DYNAMICS (110,243) (76,906) -
CORPORATION
LOAN REPAYMENTS 12,023,808 - (24,482,844)
LOANS ISSUED (11,267,446) (849,574) 18,495,100
TRANSFER BETWEEN INVESTMENT FUNDS 53,668,575 27,052,465 -
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (254,073,122) (16,076,200) (10,716,131)
PLAN EXPENSES (1,238,168) (45,185) -
-------------- ------------- -----------
NET INCREASE (DECREASE) (67,849,609) 11,527,052 (16,703,875)
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 1,457,880,294 22,676,161 58,646,807
-------------- ------------- -----------
END OF YEAR $1,390,030,685 $34,203,213 $41,942,932
============== ============= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 11 -
<PAGE> 8
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1992
<TABLE>
<CAPTION>
FUNDS
--------------------------------------------------------------
COMPANY STOCK
---------------------------
NON-
PARTICIPANT- PARTICIPANT- GOVERNMENT DIVERSIFIED
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO
------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME -
Dividends $ 13,867,211 $ 4,585,479 $ 1,998,338 $ - $ 7,283,394
Interest 150,288,772 111,645 48,740 15,801,423 483,902
-------------- ------------ ----------- ------------ ------------
164,155,983 4,697,124 2,047,078 15,801,423 7,767,296
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON ASSETS
SOLD OR DISTRIBUTED 138,956,153 74,510,448 32,471,644 1,170,040 24,472,378
UNREALIZED APPRECIATION (DEPRECIATION)
OF ASSETS 60,920,562 45,049,422 19,636,788 (3,588,822) 1,796,803
ROLLOVER CONTRIBUTIONS 1,025,620 30,460 - 108,248 169,196
DEPOSITS BY PARTICIPANTS 96,382,961 43,785,006 - 5,674,246 10,479,801
CONTRIBUTIONS BY GENERAL DYNAMICS
CORPORATION 62,691,234 (79,674) 63,310,258 (23,592) (165,016)
LOAN REPAYMENTS 3,995,027 12,872,208 - 2,654,839 3,085,913
LOANS ISSUED - (593,578) - (5,173,307) (6,958,388)
TRANSFER BETWEEN INVESTMENT FUNDS - (167,131,859) (67,740,787) 23,541,416 73,378,240
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (440,782,210) (50,736,351) (20,858,110) (45,192,318) (60,140,616)
PLAN EXPENSES (2,845,622) (296,670) - (391,882) (692,622)
-------------- ------------ ----------- ------------ ------------
NET INCREASE (DECREASE) 84,499,708 (37,893,464) 28,866,871 (5,419,709) 53,192,985
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 2,263,219,370 202,951,900 67,985,002 223,028,896 275,803,335
-------------- ------------ ----------- ------------ ------------
END OF YEAR $2,347,719,078 $165,058,436 $96,851,873 $217,609,187 $328,996,320
============== ============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
-------------------------------------------------
SPECIAL
FIXED INCOME DISTRIBUTION LOAN
-------------- ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ - $ - $ -
Interest 132,018,064 1,824,998 -
-------------- ------------ -----------
132,018,064 1,824,998
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON ASSETS SOLD
OR DISTRIBUTED 6,103,437 228,206 -
UNREALIZED APPRECIATION (DEPRECIATION)
OF ASSETS (1,866,095) (107,534) -
ROLLOVER CONTRIBUTIONS 717,716 - -
DEPOSITS BY PARTICIPANTS 36,444,029 (121) -
CONTRIBUTIONS BY GENERAL DYNAMICS
CORPORATION (269,771) (80,971) -
LOAN REPAYMENTS 13,360,384 - (27,978,317)
LOANS ISSUED (23,933,025) (887,002) 37,545,300
TRANSFER BETWEEN INVESTMENT FUNDS 99,087,457 38,865,533 -
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (238,485,893) (17,139,579) (8,229,343)
PLAN EXPENSES (1,437,079) (27,369) -
-------------- ------------ -----------
NET INCREASE (DECREASE) 21,739,224 22,676,161 1,337,640
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 1,436,141,070 - 57,309,167
-------------- ------------ -----------
END OF YEAR $1,457,880,294 $22,676,161 $58,646,807
============== ============ ===========
</TABLE>
The accompanying notes are an intregral part of these financial statements.
- 12 -
<PAGE> 9
SCHEDULE I
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
COMBINED STATEMENT OF INVESTMENTS OF
MASTER TRUST FUNDS
AT DECEMBER 31, 1994
- 13 -
<PAGE> 10
SCHEDULE I
PAGE 1 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
COMPANY STOCK FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF QUOTED MARKET
SHARES COST VALUE
----------- ------------- --------------
<S> <C> <C> <C>
COMPANY STOCK FUND:
Investment in common stock of
General Dynamics Corporation 6,373,621 $154,543,157 $277,252,533
============ ============ ============
PROPORTIONATE INTEREST 5,544,967 $131,482,483 $241,206,056
============ ============ ============
LOANS RECEIVABLE N/A $ 30,247,352 $ 30,247,352
============ ============
PROPORTIONATE INTEREST N/A $ 28,247,637 $ 28,247,637
============ ============
</TABLE>
- 14 -
<PAGE> 11
SCHEDULE I
PAGE 2 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
GOVERNMENT BONDS FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
GOVERNMENT BONDS FUND:
U.S. Treasury Notes
U.S. Treasury Notes 4.25% due January 31, 1995 9,900,000 $ 9,992,039 $ 9,892,278
U.S. Treasury Notes 5.50% due February 15, 1995 6,500,000 6,552,474 6,498,960
U.S. Treasury Notes 5.125% due March 31, 1996 8,000,000 7,938,438 7,776,240
U.S. Treasury Notes 7.625% due April 30, 1996 13,000,000 13,026,406 13,022,360
U.S. Treasury Notes 4.25% due May 15, 1996 15,000,000 14,645,312 14,376,600
U.S. Treasury Notes 6.00% due June 30, 1996 7,000,000 6,849,063 6,849,080
U.S. Treasury Notes 6.125% due July 31, 1996 5,000,000 4,893,750 4,892,200
U.S. Treasury Notes 6.25% due August 31, 1996 7,100,000 6,951,344 6,950,261
U.S. Treasury Notes 7.00% due September 30, 1996 7,100,000 7,031,219 7,029,000
U.S. Treasury Notes 6.875% due October 31, 1996 14,000,000 13,842,500 13,811,840
U.S. Treasury Notes 6.50% due November 30, 1996 11,600,000 11,386,125 11,358,952
U.S. Treasury Notes 6.125% due December 31, 1996 8,600,000 8,383,656 8,362,124
U.S. Treasury Notes 6.25% due January 31, 1997 11,200,000 10,917,375 10,897,264
U.S. Treasury Notes 6.75% due February 28, 1997 2,500,000 2,456,836 2,450,775
U.S. Treasury Notes 6.875% due March 31, 1997 4,800,000 4,725,750 4,712,976
U.S. Treasury Notes 6.875% due April 30, 1997 11,000,000 11,184,950 10,797,160
U.S. Treasury Notes 6.75% due May 31, 1997 5,100,000 4,991,226 4,986,066
U.S. Treasury Notes 6.375% due June 30, 1997 4,800,000 4,657,500 4,652,256
U.S. Treasury Notes 5.50% due July 31, 1997 7,900,000 7,490,805 7,479,088
U.S. Treasury Notes 5.625% due August 31, 1997 5,100,000 4,843,008 4,837,044
U.S. Treasury Notes 5.50% due September 30, 1997 2,900,000 2,740,953 2,737,339
U.S. Treasury Notes 5.75% due October 31, 1997 7,600,000 7,217,625 7,204,572
U.S. Treasury Notes 6.00% due November 30, 1997 7,100,000 6,777,726 6,770,489
U.S. Treasury Notes 6.00% due December 31, 1997 5,200,000 4,960,312 4,954,612
U.S. Treasury Notes 5.625% due January 31, 1998 3,000,000 2,824,453 2,818,110
------------ ------------
Total U.S. Treasury Notes 187,280,845 186,117,646
------------ ------------
U.S. Treasury Bonds
U.S. Treasury Bond 4.25% due July 31, 1995 9,900,000 9,993,973 9,757,638
U.S. Treasury Bond 7.875% due July 31, 1996 7,000,000 7,317,187 7,028,420
U.S. Treasury Bond 7.25% due May 15, 2016 5,000,000 5,182,551 4,623,450
------------ ------------
Total U.S. Treasury Bonds 22,493,711 21,409,508
Temporary Investments
The Northern Trust Company
Collective Short-Term Investment Fund 8,788,891 8,788,891 8,788,891
------------ ------------
INCOME RECEIVABLE 3,805,943 3,805,943
------------ ------------
TOTAL GOVERNMENT BONDS FUND $222,369,390 $220,121,988
============ ============
PROPORTIONATE INTEREST $135,195,710 $132,638,709
============ ============
</TABLE>
- 15 -
<PAGE> 12
SCHEDULE I
PAGE 3 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
COMMON STOCKS:
Aerospace:
Allied Signal Incorporated 65,900 $1,855,932 $2,240,600
Coltec Industry Incorporated 15,400 286,433 263,725
Lockheed Martin Corporation 1,800 87,125 88,351
Loral Corporation 1,200 46,956 45,450
McDonnell Douglas Corporation 2,700 312,421 383,400
Raytheon Company 5,300 238,218 338,537
Rockwell International Corporation 7,600 198,131 271,700
------------ -------------
Total 3,025,216 3,631,763
------------ -------------
Airlines:
AMR Corporation 45,200 2,593,919 2,406,900
ADR British Airways PLC 45,500 2,790,748 2,576,437
KLM Royal Dutch Airlines 18,000 488,931 441,000
Northwest Airlines Corporation 86,900 1,550,671 1,368,675
Southwest Airlines Company 94,700 2,627,694 1,586,225
UAL Corporation 55,050 4,974,560 4,809,994
------------ -------------
Total 15,026,523 13,189,231
------------ -------------
Automotive:
Chrysler Corporation 138,200 7,250,410 6,771,800
Ford Motor Company 187,700 5,239,017 5,232,138
General Motors Corporation 150,900 7,190,557 6,356,662
Modine Manufacturing Company 10,200 285,225 293,250
------------ -------------
Total 19,965,209 18,653,850
------------ -------------
Building:
Fluor Corporation 12,000 529,440 517,500
Masco Corporation 6,200 165,153 140,275
------------ -------------
Total 694,593 657,775
------------ -------------
Chemicals:
Avery Dennison Corporation 10,000 327,450 355,000
Dow Chemical Company 60,000 4,391,070 4,035,000
DuPont, (E.I.) DeNemours & Company 184,800 10,561,522 10,371,900
</TABLE>
- 16 -
<PAGE> 13
SCHEDULE I
PAGE 4 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
Hercules, Incorporated 6,400 $ 662,174 $ 738,400
Lyondell Petrochemical Company 10,000 274,700 258,750
Monsanto Company 22,400 1,765,727 1,579,200
Tyco International Unlimited 1,500 49,394 71,250
Union Carbide Corporation 22,776 558,356 555,189
------------ -------------
Total 18,590,393 17,964,689
------------ -------------
Consumer Goods:
American Brands, Incorporated 28,000 958,860 1,050,000
Archer-Daniels-Midland Company 15,000 234,392 309,375
Avon Products Incorporated 33,700 2,058,591 2,013,575
Black & Decker Corporation 15,800 310,463 375,250
Circus Circus Enterprises Incorporated 2,800 61,207 64,750
Coca Cola Company 134,800 6,278,788 6,942,200
Con Agra Incorporated 30,000 929,225 937,500
CPC International Incorporated 33,400 1,607,806 1,778,550
Crown Cork & Seal Company 14,100 505,038 532,275
General Mills Incorporated 15,300 857,907 874,013
Gillette Company 36,200 2,490,974 2,710,475
H.J. Heinz Company 2,000 74,405 73,500
IBP 25,000 746,485 756,250
Kellogg Company 24,700 1,355,010 1,435,687
McDonalds Corporation 10,000 296,910 292,500
Pepsico, Incorporated 72,000 2,541,849 2,610,000
Philip Morris Companies Incorporated 162,100 9,073,020 9,320,750
Procter & Gamble Company 61,100 3,312,310 3,788,200
Ralston-Ralston Purina Group 15,000 620,625 669,375
V.F. Corporation 14,700 724,982 714,787
------------ -------------
Total 35,038,847 37,249,012
------------ -------------
Electronics:
General Electric Company 91,600 4,316,378 4,671,600
Sybase Incorporated 300 14,100 15,600
TSL Holdings Incorporated 330 - 10
------------ -------------
Total 4,330,478 4,687,210
------------ -------------
Energy:
Amoco Corporation 30,000 1,781,974 1,773,750
Ashland Incorporated 12,000 403,440 414,000
</TABLE>
- 17 -
<PAGE> 14
SCHEDULE I
PAGE 5 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
Chevron Corporation 2,300 $ 96,813 $ 102,638
Enron Corporation 38,100 1,174,015 1,162,050
Exxon Corporation 80,900 4,913,694 4,914,675
Freeport McMoran Incorporated 28,000 457,375 497,000
Mobil Corporation 40,900 3,462,789 3,445,825
Occidental Petroleum Corporation 89,000 1,793,361 1,713,250
Orynx Energy Company 37,100 542,434 440,563
Phillips Petroleum Company 20,000 674,900 655,000
Pittston Services Group 11,000 310,070 288,750
Royal Dutch Petroleum Company 14,000 1,345,770 1,508,500
Schlumberger Limited 40,900 2,443,135 2,060,338
Smith International, Incorporated 30,000 521,100 370,320
Texaco Incorporated 25,300 1,557,717 1,514,837
Union Tex Tete Holdings Incorporated 12,000 230,940 249,000
------------ -------------
Total 21,709,527 21,110,496
------------ -------------
Financial Services and Insurance:
AFLAC Incorporated 14,000 463,680 448,000
AMBAC Incorporated 28,300 1,107,653 1,054,175
American Express Company 80,000 2,144,948 2,360,000
American General Corporation 28,000 811,860 791,000
American International Group, 6,400 542,371 627,200
Incorporated
Bank America Corporation 45,800 2,128,896 1,809,100
Banker's Trust New York Corporation 18,900 1,347,693 1,046,587
Beneficial Corporation 7,000 277,540 273,000
Central Fidelity Banks, Incorporated 1,500 39,551 36,375
Chase Manhattan Corporation 66,000 2,284,020 2,268,750
CIGNA Corporation 24,000 1,484,880 1,527,000
Citicorp 80,400 3,167,552 3,326,550
Corestates Financial Corporation 2,700 71,178 70,200
Dean Witter Discover & Company 54,900 2,099,607 1,859,738
Federal National Mortgage Association 98,700 7,304,483 7,192,763
FHLMC 22,000 1,144,442 1,111,000
First Bank Systems, Incorporated 105,800 3,433,553 3,512,876
First Commerce Corporation 9,300 246,137 204,600
</TABLE>
- 18 -
<PAGE> 15
SCHEDULE I
PAGE 6 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
First Interstate Bancorp 31,000 $2,499,785 $2,096,375
First Union Corporation 9,600 389,136 397,200
Firstar Corporation 20,700 613,933 556,313
Fleet Financial Group Incorporated 32,400 1,099,276 1,048,950
Great Western Financial Corporation 48,100 861,489 769,600
Household International Incorporated 23,000 872,390 853,875
MBNA Corporation 73,100 1,776,172 1,708,713
Merrill Lynch & Company 181,000 5,848,615 6,470,750
Morgan Stanley Group Incorporated 28,300 1,692,602 1,669,700
Nationsbank Corporation 75,100 3,703,510 3,388,888
Northern Trust Corporation 1,200 44,305 42,000
Norwest Corporation 283,800 6,336,041 6,633,825
Progressive Corporation 56,300 2,305,634 1,970,500
Providian Corporation 17,100 610,804 527,962
Republic NewYork Corporation 2,500 115,467 113,125
Salomon Incorporated 2,000 74,760 75,000
Schwab Charles Corporation 500 13,761 17,438
Shawmut National Corporation 6,300 116,928 103,162
St. Paul Companies Incorporated 18,000 760,040 805,500
Travelers Incorporated 11,552 445,580 373,996
UNUM Corporation 31,400 1,391,390 1,185,350
Washington Mutual Incorporated 20,700 381,200 349,313
Wells Fargo & Company 11,000 1,636,945 1,595,000
Wilmington Trust Corporation 23,200 638,714 527,800
------------ -------------
Total 64,328,521 62,799,249
------------ -------------
Health Care:
Abbott Laboratories 60,700 1,553,145 1,980,338
Bausch & Lomb, Incorporated 14,000 482,105 474,250
Baxter International Incorporated 55,000 1,535,805 1,553,750
Becton, Dickinson and Company 15,000 739,980 720,000
Columbia/HCA Healthcare Corporation 43,300 1,596,000 1,580,450
Health Management Associates 12,700 300,103 317,500
Incorporated
Humana Incorporated 45,800 1,021,896 1,036,225
Johnson & Johnson 14,000 757,765 766,500
</TABLE>
- 19 -
<PAGE> 16
SCHEDULE I
PAGE 7 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
Manor Care, Incorporated 11,600 $ 314,199 $ 317,550
Millipore Corporation 14,000 733,152 677,250
United Healthcare Corporation 139,100 4,269,986 6,276,887
U.S. Healthcare Corporation 29,300 1,113,517 1,208,625
------------ -------------
Total 14,417,653 16,909,325
------------ -------------
Leisure Time & Communications:
Boyd Gaming Corporation 17,400 256,795 187,050
Capital Cities, ABC, Incorporated 20,000 1,440,010 1,705,000
CBS Incorporated 19,000 1,076,830 1,049,750
Comcast Corporation 83,350 1,500,090 1,307,510
Mirage Resorts Incorporated 61,550 1,260,413 1,261,775
Philippine Long Distance Telephone 4,000 263,020 220,500
Company
Tele-Communications, Incorporated 89,400 1,828,708 1,944,450
VIACOM Incorporated-A 6,840 229,656 284,715
VIACOM Incorporated-B 80,424 2,776,674 3,277,277
VIACOM Incorporated Variable 435,200 829,833 489,600
------------ -------------
Total 11,462,029 11,727,627
------------ -------------
Machinery:
Caterpillar Incorporated 42,000 2,319,186 2,315,250
Cooper Industries, Incorporated 51,700 2,282,560 1,757,800
Cummins Engine Company 10,000 446,200 452,500
Deere & Company 53,300 3,599,512 3,531,125
Eaton Corporation 18,000 947,100 891,000
FGN Astra ABA-F 37,500 738,015 967,950
ITT Corporation 14,000 1,131,206 1,240,750
------------ -------------
Total 11,463,779 11,156,375
------------ -------------
Merchandising:
Best Buy, Incorporated 40,600 1,173,733 1,268,750
Charming Shoppes, Incorporated 12,100 105,719 80,162
Dayton-Hudson Corporation 26,000 2,083,120 1,839,500
Fruit of the Loom-A 7,400 195,685 199,800
Home Depot Incorporated 20,500 865,604 943,000
Kohls Corporation 36,100 1,762,266 1,434,975
Limited Incorporated 111,400 2,412,879 2,019,125
</TABLE>
- 20 -
<PAGE> 17
SCHEDULE I
PAGE 8 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
Melville Corporation 57,400 $ 2,430,507 $ 1,772,225
Sears, Roebuck and Company 5,000 246,225 230,000
TJXCOS Incorporated 60,400 1,156,992 943,750
Wal-Mart Stores, Incorporated 11,700 308,647 248,625
------------ -------------
Total 12,741,377 10,979,912
------------ -------------
Metals:
Allegheny Ludlum Corporation 20,700 426,511 388,125
Bethlehem Steel Corporation 164,500 3,567,848 2,961,000
Freeport McMoran Copper & Gold Incorporated 25,550 523,415 542,937
Inco Unlimited 32,000 811,424 916,000
LTV Corporation 63,700 1,153,327 1,051,050
NUCOR Corportion 20,700 1,392,072 1,146,263
Phelps Dodge Corporation 19,000 1,155,347 1,175,625
Reynolds Metals Company 18,800 914,413 921,200
------------ -------------
Total 9,944,357 9,102,200
------------ -------------
Miscellaneous:
Albermarle Corporation 8,900 122,854 123,488
Illinova Corporation 4,100 84,671 89,560
Northcorp Realty Advisors Incorporated 849 - 531
Omnicom Group Incorporated 3,000 156,999 155,250
Owens Corning Fiberglass Corporation 3,300 136,906 105,187
------------ -------------
Total 501,430 474,016
------------ -------------
Office Equipment:
International Business Machines Corporation 28,400 1,891,778 2,087,400
Microsoft Corporation 11,200 617,247 684,600
Novell Incorporated 74,900 1,598,728 1,282,663
Quantum Corporation 48,500 720,603 733,562
------------ -------------
Total 4,828,356 4,788,225
------------ -------------
Pharmaceuticals:
Alza Corporation 57,100 1,512,182 1,027,800
American Home Products Corporation 36,200 2,158,938 2,271,550
Bristol Myers Squibb Company 31,000 1,787,480 1,794,125
Gensia Incorporated 8,500 268,940 36,125
Marion Merrell Dow Incorporated 56,000 1,321,092 1,141,000
Merck & Company, Incorporated 48,200 1,481,835 1,837,625
</TABLE>
- 21 -
<PAGE> 18
SCHEDULE I
PAGE 9 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ -------------
<S> <C> <C> <C>
Pfizer Incorporated 500 $ 38,265 $ 38,625
Schering-Plough Corporation 51,000 3,757,986 3,774,000
UPJOHN Company 51,000 1,608,630 1,568,250
------------ -------------
Total 13,935,348 13,489,100
------------ -------------
Printing, Publishing and Paper:
Donnelley, R.R., & Sons Company 8,700 250,248 256,650
Champion International Corporation 13,800 437,796 503,700
Georgia-Pacific Corporation 21,500 1,421,903 1,537,250
International Paper Company 21,600 1,699,789 1,628,100
Kimberly-Clark Corporation 34,000 1,708,330 1,712,750
Scott Paper Company 17,000 1,078,784 1,175,125
Westvaco Corporation 9,000 328,332 353,250
------------ -------------
Total 6,925,182 7,166,825
------------ -------------
Railroads:
CSX Corporation 3,400 256,767 236,725
Canadian Pacific Unlimited 24,000 418,104 360,000
Conrail Incorporated 36,000 1,906,223 1,818,000
Southern Pacific Rail Corporation 38,700 663,760 701,438
Union Pacific Corporation 29,000 1,623,443 1,315,875
------------ -------------
Total 4,868,297 4,432,038
------------ -------------
Rubber:
Cooper Tire & Rubber Company 15,500 368,072 366,187
Goodyear Tire & Rubber Company 8,100 308,119 272,363
------------ -------------
Total 676,191 638,550
------------ -------------
Service Industries:
Chemical Waste Management Incorporated 40,100 718,413 375,938
Federal Express Corporation 24,000 1,480,522 1,446,000
Health Care & Retirement Corporation 9,000 232,032 271,125
Manpower Incorporated 11,000 321,360 309,375
National Services Industries, Incorporated 6,900 185,595 176,811
Service Corporation International 76,000 1,923,983 2,109,000
SPS Transactions Services Incorporated 8,700 242,046 228,375
Walt Disney Company 63,100 2,688,784 2,902,600
Wheelabrator Technologies Incorporated 8,600 129,043 126,850
------------ -------------
Total 7,921,778 7,946,074
------------ -------------
</TABLE>
- 22 -
<PAGE> 19
SCHEDULE I
PAGE 10 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
Technology:
Autodesk Incorporated 10,500 $ 264,588 $ 416,063
Compaq Computer Corporation 129,800 4,508,585 5,127,100
General Signal Corporation 5,300 174,005 168,937
Hewlett-Packard Company 15,000 1,155,800 1,498,125
Intel Corporation 134,700 6,555,267 8,603,962
Intuit 5,400 193,738 360,450
Micron Technology, Incorporated 13,000 530,738 573,625
Motorola Incorporated 49,400 1,928,050 2,865,200
Northern Telecom Limited 14,600 420,691 487,275
Oracle Systems Corporation 3,200 141,200 141,200
Premier Industrial Corporation 2,700 68,880 63,788
Silicon Graphics Incorporated 2,300 75,582 71,659
Xerox Corporation 8,000 862,410 792,000
Xilinx Incorporated 3,700 144,713 219,225
------------ -------------
Total 17,024,247 21,388,609
------------ -------------
Utilities:
ADR Telefonos DeMex SA 15,200 775,448 623,200
Airtouch Communication 65,300 1,839,574 1,901,863
Incorporated
Allegheny Power System Incorporated 9,500 195,067 206,625
American Electric Power Company 12,000 396,060 394,500
Ameritech Corporation 50,000 2,032,956 2,018,750
AT&T Corporation 83,700 4,190,258 4,205,925
Bell Atlantic Corporation 12,000 654,188 597,000
Bell South Corporation 46,100 2,528,848 2,495,162
Entergy Corporation 46,900 1,158,742 1,025,937
FPL Group Incorporated 4,900 141,314 172,113
Global Marine Incorporated 56,800 235,751 205,900
GTE Corporation 62,200 2,179,673 1,889,325
Long Island Lighting Company 30,000 476,100 461,250
MCI Communications Corporation 92,600 1,962,927 1,701,525
Pacific Telesis Group 66,000 2,030,713 1,881,000
Potomac Electric Power Company 6,300 121,000 115,763
</TABLE>
- 23 -
<PAGE> 20
SCHEDULE I
PAGE 11 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL QUOTED
AMOUNT COST MARKET VALUE
------------- ------------ --------------
<S> <C> <C> <C>
SCE Corporation 4,100 $ 55,886 $ 59,963
Sprint Corporation 4,000 130,194 110,500
Texas Utilities Company 3,800 140,285 121,600
US West 40,400 1,516,229 1,439,250
Williams Company Incorporated 20,000 602,760 502,500
------------ ------------
Total 23,363,973 22,129,651
------------ ------------
Total common stocks $322,783,304 $322,271,802
============ ============
TEMPORARY INVESTMENTS:
The Northern Trust Company
Collective Short-Term Investment Fund
16,020,702 16,020,702 16,020,702
Tandon Computer Purchase Coupon 5,248 - 1,837
------------ ------------
Total Temporary Investments $ 16,020,702 $ 16,022,539
============ ============
INCOME RECEIVABLE 768,091 768,090
------------ ------------
TOTAL DIVERSIFIED PORTFOLIO FUND $339,572,097 $339,062,431
============ ============
PROPORTIONATE INTEREST $287,855,297 $283,357,946
============ ============
</TABLE>
- 24 -
<PAGE> 21
SCHEDULE I
PAGE 12 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
FIXED INCOME FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
INTEREST RATE
AS OF
DECEMBER 31, MATURITY CONTRACT
1994 DATE VALUE
--------------- --------- ------------
<S> <C> <C> <C>
INSURANCE CONTRACTS:
Aetna Life and Casualty Company 10.00% 1/3/00 $ 84,966,785
Aetna Life and Casualty Company 7.07% Open 265,839,242
Metropolitan Life Insurance Company 7.60% Open 269,877,856
Metropolitan Life Insurance Company VAR. Open 270,911,042
The Prudential Insurance Company of America 10.25% 7/5/95 55,597,953
The Prudential Insurance Company of America 9.92% 5/1/98 83,091,023
The Prudential Insurance Company of America 9.65% 8/31/00 41,250,835
The Prudential Insurance Company of America 9.80% 8/31/00 61,904,532
The Prudential Insurance Company of America 7.28% Open 271,948,614
The Travelers Insurance Company 12.60% 7/1/95 180,605,141
The Travelers Insurance Company 9.65% 2/1/96 2,387,103
The Travelers Insurance Company 8.15% 2/1/97 3,232,952
The Travelers Insurance Company 9.26% 2/1/98 3,005,337
--------------
Total Insurance Contracts 1,594,618,415
--------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund 4,474,077
--------------
INCOME RECEIVABLE 14,255
--------------
TOTAL FIXED INCOME FUND $1,599,106,747
==============
PROPORTIONATE INTEREST $1,356,917,217
==============
</TABLE>
- 25 -
<PAGE> 22
SCHEDULE I
PAGE 13 OF 13
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLANS
SPECIAL DISTRIBUTION FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF SHARES OR QUOTED MARKET
PRINCIPAL AMOUNT COST VALUE
-------------------- ----------- -------------
<S> <C> <C> <C>
SPECIAL DISTRIBUTION FUND:
The Northern Trust Company Collective 37,944,719 $37,944,719 $37,944,719
Short-Term
Investment Fund
Income Receivable 177,963 177,963
----------- -----------
TOTAL SPECIAL DISTRIBUTION FUND $38,122,682 $38,122,682
=========== ===========
PROPORTIONATE INTEREST $27,538,940 $27,538,940
=========== ===========
</TABLE>
- 26 -
<PAGE> 23
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
1. INVESTMENT OPTIONS
The General Dynamics Corporation Savings and Stock Investment Plan
(the "Plan") has eight investment options:
1) 33-1/3% Government Bonds Fund, 33-1/3% Diversified Portfolio Fund
(equity securities of issues other than General Dynamics Corporation)
and 33-1/3% Company Stock Fund (General Dynamics Corporation common
stock),
2) 33-1/3% Government Bonds Fund and 66-2/3% Company Stock Fund,
3) 33-1/3% Government Bonds Fund and 66-2/3% Diversified Portfolio Fund,
4) 100% Government Bonds Fund,
5) 33-1/3% Fixed Income Fund (consists primarily of investment contracts
with one or more insurance companies which guarantee a minimum rate
of return over a specified period) and 66-2/3% Diversified Portfolio
Fund,
6) 33-1/3% Fixed Income Fund and 66-2/3% Company Stock Fund,
7) 100% Fixed Income Fund or
8) 100% Company Stock Fund.
The Plan permits active participants and employed inactive
participants to borrow up to 50% of the vested amount in their accounts (as
limited by the Plan) and to repay the loan by regular payroll deductions over a
period of up to five years.
General Dynamics Corporation (the "Company") matches $.50 for each
$1.00 of participant contributions in all investment options except Option 8.
Under investment Option 8, participants receive a higher Company matching
contribution of 100%. All Company matching contributions are in the form of
Company common stock. Contributions invested in the Company Stock
Fund must be held in that fund for five years before becoming eligible for
transfer to any other fund. Furthermore, post-March 31, 1991 investments of
any sort in the Company Stock Fund may not be withdrawn until they have been
held in the Plan for at least five plan years.
Investment fund transfer rules allow all plan members to elect one
fund transfer per calendar year. Participants may transfer both their
contributions and the Company's contributions invested in any fund to any other
investment fund, except as follows:
- transfers may not be made from the Fixed Income Fund,
- funds may not be transferred into and out of the same
investment fund during a transfer, and
- all investments in Company common stock must be held for
five plan years before they may be transferred.
Transfers from the Company Stock Fund may only be initiated after January 1,
1993.
In addition, all investments made in the Company Stock Fund after
March 31, 1991 (or such other date as provided by the applicable collective
bargaining agreement) must be held for five plan years before they may be
withdrawn or borrowed. Also, the amount of any loan made after this date is
limited to the vested non-Company Stock Fund investments, pre-April 1, 1991
Company common stock and Company common stock which has been held for five plan
years. Loans are first sourced from non-Company Stock Fund investments.
-27-
<PAGE> 24
All Company matching contributions to the Plan after April 1, 1991
are classified as non-participant-directed investments in the financial
statements. All participant contributions to the Company Stock Fund are
reflected as participant-directed investments. With the exception of the
Company Stock Fund, all other investment funds are completely participant
directed.
All plan members become fully vested in all investments purchased
with company contributions upon the earlier of completion of five years of
continuous service with the Company or death, retirement, layoff, permanent or
total disability, discharge withopt fault or involuntary entry into military
service.
The Plan provides that any special distributions payable with respect
to Company Stock allocated to participant accounts would be credited to the
participants Special Distribution Fund, rather than being automatically
reinvested in additional shares of Company Stock. Participants are entitled to
transfer amounts credited to their accounts in the Special Distribution Fund to
other investment funds. Special distributions include all proceeds received
from tenders or sales of Company Stock and other distributions, except regular
quarterly dividends which would continue to be invested in Company Stock.
Funds credited to these accounts in the Special Distribution Fund are
invested in high quality securities.
In addition, the Plan was amended to permit participants who have
shares of Company Stock allocated to their accounts to direct the trustee with
respect to tender of shares pursuant to any Company Stock repurchase program or
tender offer. Any proceeds realized from such share repurchase will be treated
as a Special Distribution.
On June 8, 1992, the Company announced an offer to purchase
26,000,000 shares of its common stock, par value $1 per share (including the
associated series A Junior Participating Preferred Stock Purchase Rights) at a
price not less than $32 11/16 per share nor greater than $37 1/2 per share
through a Self-Tender Offer. The Offer became effective June 10, 1992, and
expired on July 8, 1992. The Company actually purchased 26,499,782 shares of
its common stock at $36 1/8 per share. Plan participants were permitted to
participate in this Offer under the terms of the Plan and tendered
approximately 6,425,932 shares. Proceeds received by the Plan ($232,136,794)
for allocated shares tendered and accepted under the Offer were credited to
accounts created in the Special Distribution Fund for participants who directed
that such shares be tendered. Participants are permitted to transfer amounts
to their credit in the Special Distribution Fund to other funds, including the
Company Stock Fund. These transfers are reflected in the Statement of Changes
in Net Assets Available for Benefits as transfers between investment funds.
During the pendency of the Offer and the succeeding tabulation period, the Plan
did not purchase any Company Stock, but held amounts invested in the Company
Stock Fund for later investment in Company Stock. Company Stock purchases were
resumed on July 30, 1992.
The number of participants in each investment option was as follows:
<TABLE>
<CAPTION>
PARTICIPATING EMPLOYEES
-----------------------------------------
AS OF AS OF AS OF
OPTION 12/31/94 12/31/93 12/31/92
-------- -------- --------
<S> <C> <C> <C>
(i) . . . . . . . . . . . . . . . . . . . . . . . . 1,044 1,017 1,367
(ii) . . . . . . . . . . . . . . . . . . . . . . . . 233 220 296
(iii) . . . . . . . . . . . . . . . . . . . . . . . . 1,187 1,175 1,407
(iv) . . . . . . . . . . . . . . . . . . . . . . . . 1,079 1,083 1,653
(v) . . . . . . . . . . . . . . . . . . . . . . . . 3,876 3,727 4,483
(vi) . . . . . . . . . . . . . . . . . . . . . . . . 407 388 490
(vii) . . . . . . . . . . . . . . . . . . . . . . . . 11,387 11,365 14,645
(viii) . . . . . . . . . . . . . . . . . . . . . . . . 9,283 8,603 10,941
</TABLE>
-28-
<PAGE> 25
2. FEDERAL INCOME TAXES
The Company has received a determination from the Internal Revenue
Service that the Plan, including all amendments through June 20, 1994, is
a qualified profit sharing plan under Section 401 (a) of the Internal
Revenue Code. The trust formed thereunder is exempt from Federal income
tax under Section 501 (a). The plan administrator and the plan's tax
counsel believe that the Plan is currently designed and being operated
in compliance with the applicable requirements of the Internal Revenue
Code. Therefore, they believe that the Plan was qualified and the related
trust was tax exempt as of the financial statement date.
Under a qualified profit sharing plan, a member of the Plan is not
subject to income tax on contributions made by the Company on the member's
behalf, or on dividends, interest or profits from sales of securities
credited to the member's account, until the contributions or income
credited to the member's account are withdrawn by the member. Secondly,
the Trust is not subject to income tax on dividends, interest or profits
from sales of securities received by The Northern Trust Company, the
trustee of the Plan. Lastly, the Company is entitled to a current
deduction for its contributions to the Plan.
Under the Tax Reform Act of 1986, different tax treatments are
accorded undistributed amounts of pre-January 1, 1987 after-tax
contributions as opposed to after-tax contributions made thereafter.
Distributions made after January 1, 1987, are considered to be allocable,
first, to undistributed pre-January 1, 1987 after-tax contributions.
Distributions will be nontaxable until amounts equal to those
contributions have been recovered. Thereafter, a pro rata portion of each
distribution will be considered to be a return of post-January 1, 1987
after-tax contributions, if any.
3. MASTER TRUST FUNDS
For investment purposes, the assets of the Plan are combined in
Master Trust Funds with the assets of the General Dynamics Corporation
Hourly Employees Savings and Stock Investment Plan. The value shown in
the accompanying financial statements represents the Plan's proportionate
interest in the reported market value of the assets in the Master Trust
Funds. Investment income, realized gains or losses and unrealized
appreciation or depreciation are allocated monthly to the respective plans
based on their proportionate interest in the Master Trust at market value.
4. NET REALIZED GAIN (LOSS) ON SECURITIES SOLD OR DISTRIBUTED
The cost of securities sold or distributed is based on average cost.
Gains and losses are recognized on Company common stock forfeited by or
distributed to participants. The following is a summary of the net
realized gain (loss) on disposition of securities for the years ended
December 31, 1994, 1993 and 1992:
<TABLE>
<CAPTION>
MASTER TRUST
----------------------------------------------------------------------
NET PROPORTIONATE
FUND COST PROCEEDS GAIN (LOSS) INTEREST
---- ---- -------- ----------- --------
<S> <C> <C> <C> <C>
1994
Company stock . . . . . . . . . . . . . $ 17,296,134 $ 30,235,423 $ 12,939,289 $10,074,141
Government bonds . . . . . . . . . . 361,461,022 348,033,733 (13,427,289) (8,081,614)
Diversified portfolio . . . . . . . . 589,775,259 622,664,585 32,889,326 27,553,531
Fixed income . . . . . . . . . . . . 435,558,202 435,577,387 19,185 16,460
Special distribution . . . . . . . . -- -- -- --
--------------------------------------------------------------------
$1,404,090,617 $1,436,511,128 $ 32,420,511 $29,562,518
====================================================================
1993
Company stock . . . . . . . . . . . . $ 31,889,522 $ 63,626,462 $ 31,736,940 $25,471,055
Government bonds . . . . . . . . . . 316,764,926 318,337,717 1,572,791 976,965
Diversified portfolio . . . . . . . . 378,111,420 415,031,520 36,920,100 30,955,487
Fixed income . . . . . . . . . . . . 200,148,747 202,422,664 2,273,917 1,946,511
</TABLE>
-29-
<PAGE> 26
<TABLE>
<CAPTION>
MASTER TRUST
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special distribution . . . . . . . . 25,523,438 25,032,891 (490,547) (389,473)
--------------------------------------------------------------------
$952,438,053 $1,024,451,254 $ 72,013,201 $ 58,960,545
====================================================================
1992
Company stock . . . . . . . . . . . . $ 209,440,229 $ 333,713,328 $ 124,273,099 $ 106,982,092
Government bonds . . . . . . . . . . 191,809,837 193,741,338 1,931,501 1,170,040
Diversified portfolio . . . . . . . . 385,683,834 415,322,023 29,638,189 24,472,378
Fixed income . . . . . . . . . . . . 1,062,539,917 1,069,640,439 7,100,522 6,103,437
Special distribution . . . . . . . . 214,796,875 215,041,016 244,141 228,206
--------------------------------------------------------------------
$2,064,270,692 $2,227,458,144 $ 163,187,452 $ 138,956,153
====================================================================
</TABLE>
5. NET GAIN FROM SPECIAL DISTRIBUTION
During 1993, the Company's Board of Directors declared the
following special distributions to its shareholders:
<TABLE>
<CAPTION>
Date of Shareholder Distribution Per
Date Declared Date Payable Record Share Amount
-------------- -------------- ------------------- ---------------- -----------
<S> <C> <C> <C> <C>
March 18 April 22 April 5 $10 $50,858,255
June 2 July 12 June 21 $9 $43,150,385
September 15 October 12 September 28 $6 $30,143,548
</TABLE>
All distributions were deposited into the Special Distribution
Fund. Each participant was entitled to a one-time transfer of each
distribution to any other fund in the Plan. A portion of these
distributions represented a return of capital. The proportionate
interest in the gain attributable to the Plan was $61,228,410.
6. UNREALIZED APPRECIATION (DEPRECIATION)
The unrealized appreciation (depreciation) of investments for
the years ended December 31, 1994, 1993 and 1992 is as follows:
<TABLE>
<CAPTION>
UNREALIZED APPRECIATION (DEPRECIATION)
---------------------------------------------------
BEGINNING END OF INCREASE
FUND OF YEAR YEAR (DECREASE)
---- ------- ---- ----------
<S> <C> <C> <C>
1994
Company stock . . . . . . . . . $134,538,802 $110,718,988 $(23,819,814)
Government bonds . . . . . . . . (1,748,465) (2,557,001) (808,536)
Diversified portfolio . . . . . . 35,440,555 (4,497,350) (39,937,905)
Fixed income . . . . . . . . . . 3,986 3,190 (796)
Special distribution . . . . . . (23,762) (23,762) --
---------------------------------------------------
$168,211,116 $103,644,065 $(64,567,051)
===================================================
1993
Company stock . . . . . . . . . . $126,615,351 $134,538,802 $ 7,923,451
Government bonds . . . . . . . . 1,074,412 (1,748,465) (2,822,877)
Diversified portfolio . . . . . 41,773,048 35,440,555 (6,332,493)
</TABLE>
-30-
<PAGE> 27
<TABLE>
<CAPTION>
UNREALIZED APPRECIATION (DEPRECIATION)
---------------------------------------------------
<S> <C> <C> <C>
Fixed income . . . . . . . . . . 32,218 3,986 (28,232)
Special distribution . . . . . . (107,534) (23,762) 83,772
---------------------------------------------------
$169,387,495 $168,211,116 $ (1,176,379)
===================================================
1992
Company stock . . . . . . . . . $ 61,929,141 $126,615,351 $ 64,686,210
Government bonds . . . . . . . . 4,663,234 1,074,412 (3,588,822)
Diversified portfolio . . . . . . 39,976,245 41,773,048 1,796,803
Fixed income . . . . . . . . . . 1,898,313 32,218 (1,866,095)
Special distribution . . . . . . -- (107,534) (107,534)
---------------------------------------------------
$108,466,933 $169,387,495 $ 60,920,562
===================================================
</TABLE>
7. WITHDRAWALS AND FORFEITURES
The following is a summary of amounts withdrawn during the
years ended December 31, 1994, 1993 and 1992. The amounts forfeited
have been reflected as reductions in the Companys contributions on the
accompanying statements of changes in net assets available for
benefits:
<TABLE>
<CAPTION>
BALANCE OF AMOUNT
PARTICIPANTS DISBURSED ON AMOUNT
FUND ACCOUNTS SETTLEMENT FORFEITED
---- -------- ---------- ---------
<S> <C> <C> <C>
1994
Company stock . . . . . . . . . $ 41,735,009 $ 41,548,096 $ 186,913
Government bonds . . . . . . . . 25,157,331 25,155,882 1,449
Diversified portfolio . . . . . . 50,731,563 50,704,404 27,159
Fixed income . . . . . . . . . . 169,973,043 169,941,643 31,400
Special distribution . . . . . . 5,647,741 5,634,007 13,734
Loans . . . . . . . . . . . . . . 5,408,284 5,408,284 --
--------------------------------------------
$298,652,971 $298,392,316 $ 260,655
============================================
1993
Company stock . . . . . . . . . 64,922,493 64,594,257 328,236
Government bonds . . . . . . . . 50,049,814 50,040,266 9,548
Diversified portfolio . . . . . . 74,223,499 74,127,643 95,856
Fixed income . . . . . . . . . . 254,183,365 254,073,122 110,243
Special distribution . . . . . . 16,153,109 16,076,200 76,909
Loans . . . . . . . . . . . . . . 10,716,131 10,716,131 --
--------------------------------------------
$470,248,411 $469,627,619 $ 620,792
============================================
1992
Company stock . . . . . . . . . 72,017,427 71,594,461 422,966
Government bonds . . . . . . . . 45,215,910 45,192,318 23,592
Diversified portfolio . . . . . . 60,305,632 60,140,616 165,016
Fixed income . . . . . . . . . . 238,755,617 238,485,893 269,724
Special distribution . . . . . . 17,220,430 17,139,579 80,851
Loans . . . . . . . . . . . . . . 8,229,343 8,229,343 --
--------------------------------------------
$441,744,359 $440,782,210 $ 962,149
============================================
</TABLE>
-31-
<PAGE> 28
8. DEPARTMENT OF LABOR RECONCILIATION
In accordance with generally accepted accounting principles,
amounts allocated to accounts of participants who have elected to
withdraw from the Plan but have not yet been paid as of year end are
not reported as liabilities on the Statements of Net Assets Available
for Benefits. However, the Department of Labor requires that these
amounts be reported as liabilities on Form 5500. At December 31, 1994
and 1993, amounts payable on withdrawals and distributions were
$32,332,380 and $44,262,758, respectively. In addition, on the
Statements of Changes in Net Assets Available for Benefits for the
years ended December 31, 1994, 1993 and 1992, distributions to
withdrawn participants would have been $286,461,938, $477,463,028,
$439,278,077 instead of $298,392,316, $469,627,619, $440,782,210,
respectively, if the December 31 amounts payable on withdrawals and
distributions had been included.
On the Statement of Changes in Net Assets Available for
Benefits, net realized gain on assets sold or distributed and
unrealized depreciation of assets are reported in accordance with
generally accepted accounting principles. The following restatement
is necessary to comply with the Department of Labor's rules which
require that realized and unrealized depreciation of plan assets be
based on the value of the assets at the beginning of the plan year or
at time of purchase during the year. In addition, the Department of
Labor's regulations require that both the net realized gain (loss) and
the unrealized depreciation on the Plan's investments in various
commingled funds be classified as a net investment gain (loss) from
common/collective trusts.
<TABLE>
<CAPTION>
GENERAL
ACCEPTED DEPARTMENT
ACCOUNTING OF LABOR'S
PRINCIPLES REGULATIONS
------------ ------------
<S> <C> <C>
Net realized gain (loss) on assets sold or distributed $ 29,562,518 $(15,578,052)
Unrealized (depreciation) of assets (64,567,051) (18,646,797)
Net investment (loss) from common/collective trusts - (779,684)
------------ ------------
$(35,004,533) $(35,004,533)
============ ============
</TABLE>
9. PLAN EXPENSES
Administrative expenses of the Plan are primarily paid by the Plan
and may be paid by the Company.
10. PRIOR YEAR RESTATEMENT
Certain items on the 1993 and 1992 financial statements have
been reclassified in order to conform with the 1994 presentation.
11. STOCK SPLIT
On March 4, 1994, the Company's Board of Directors authorized
a two-for-one stock split effected in the form of a 100% stock
dividend to be distributed on April 11, 1994 to shareholders of record
on March 21, 1994. All references in the financial statements to
number of shares, per share amounts and market prices of the Company's
common stock have been restated.
-32-
<PAGE> 29
12. DISCONTINUED OPERATIONS
During 1994, the Company completed the sale of its Space
Launch Systems business to Martin Marietta Corporation, and the lime
and brick operations of its Material Service business to Calcitherm
Nederland, NV.
During 1993, the Company completed the sale of its Tactical
Military Aircraft business to Lockheed Corporation and its Electronic
Manufacturing Center to EFW, Inc.
During 1992, the Company completed the sales of The Cessna
Aircraft Company to Textron, Inc., its Missile Systems business to
Hughes Aircraft Company and its Electronics business to The Carlyle
Group.
Contributions to the Plan were terminated for the participants
at these sold-off businesses. Participants may elect to receive total
account balance distributions from the Plan at any time. All
participants at these sold-off businesses are fully vested in the
Plan.
13. SUBSEQUENT EVENTS
The American Institute of Certified Public Accountants (AICPA) issued
Statement of Position No. 94-4, "Reporting of Investment Contracts Held
by Health and Welfare Benefit Plans and Defined Contributions Pension
Plans." This new standard requires that investment contracts be
reported at fair value at either the quoted market price from reliable
third-party evidence or determined by discounting the future cash
flows by an appropriate discount rate. This is a significant change
from the Company's current policy of recording investment contracts at
contract value.
The Company is required to adopt these new accounting and disclosure
rules no later than 1995 and plans to do so effective January 1,
1995. Adoption of this statement is not expected to have a material
impact on the plan's results of operations or financial condition.
- 33 -
<PAGE> 30
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To General Dynamics Corporation:
We have audited the accompanying statements of net assets available
for benefits of the General Dynamics Corporation Savings and Stock
Investment Plan as of December 31, 1994 and 1993 and the related
statements of changes in net assets available for benefits for the
years ended December 31, 1994, 1993 and 1992. These financial
statements and the schedule referred to below are the responsibility
of the Plan Administrator. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for
benefits of the General Dynamics Corporation Savings and Stock
Investment Plan as of December 31, 1994 and 1993, and the changes in
net assets available for benefits for the years ended December 31,
1994, 1993 and 1992, in conformity with generally accepted accounting
principles.
Our audit was performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The Combined Statement of
Investments in Master Trust Funds (Schedule I), is presented for the
purpose of additional analysis and is not a required part of the basic
financial statements but is supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974.
The Supplemental schedules and Fund Information have been subjected to
the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a
whole.
by /s/ Arthur Andersen LLP
-----------------------
Arthur Andersen LLP
Washington, D.C.,
May 12, 1995
- 34 -
<PAGE> 1
SECURITIES AND EXCHANGE COMMISION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT TO APPLICATION OR REPORT FILED
PURSUANT TO SECTION 12, 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
GENERAL DYNAMICS CORPORATION
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its 1994 Annual Report on Form 10-K as
set forth in the pages attached hereto.
Index to Exhibits
Exhibit 99(d), Annual Report on Form 11-K for the General
Dynamics Corporation Savings and Stock Investment Plan.
Exhibit 99(e), Annual Report on Form 11-K for the General
Dynamics Corporation Hourly Employees Savings and Stock
Investment Plan.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereto duly authorized.
GENERAL DYNAMICS CORPORATION
By /s/ E. A. KLOBASA
E. A. Klobasa
Secretary
June 27, 1995
- 1 -
<PAGE> 2
ADDITIONAL EXHIBIT 99(e) TO
ANNUAL REPORT ON FORM 10-K
OF GENERAL DYNAMICS CORPORATION
SEC FILE NO. 1-3671
SECURITIES AND EXCHANGE COMMISION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
A. Full title of the Plan and the address of the Plan, if different from
the issuer named below:
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEE SAVINGS AND STOCK INVESTMENT PLAN
B. Name of the issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
GENERAL DYNAMICS CORPORATION
3190 FAIRVIEW PARK DRIVE
FALLS CHURCH, VIRGINIA 22042-4523
- 2 -
<PAGE> 3
GENERAL DYNAMICS CORPORATION
INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
Pages of this
Form 11-K
-------------
<S> <C>
(a) FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits, 5-6
December 31, 1994 and 1993
Statements of Changes in Net Assets Available for Benefits 7-9
- Fiscal Years Ended December 31, 1994, December 31, 1993
and December 31, 1992
Schedule I - Combined Statement of Investments 10-23
of Master Trust Funds
Notes to Financial Statements 24-30
Report of Independent Public Accountants 31
(b) SIGNATURE 4
(c) EXHIBITS
Consent of Independent Public Accountants 4
</TABLE>
- 3 -
<PAGE> 4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Plan Administrator has caused this Annual Report to be signed by the undersigned
thereunto duly authorized.
GENERAL DYNAMICS CORPORATION
As Plan Administrator of the General
Dynamics Corporation
Hourly Employee Savings and Stock Investment Plan
by /s/ E. A. Klobasa
-------------------------------
E. A. Klobasa
Secretary
June 27, 1995
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report included in this Form 11-K, into General Dynamics
Corporation's previously filed Registration Statement on Form S-8, File No.
2-24270.
by /s/ Arthur Andersen LLP
-------------------------------
ARTHUR ANDERSEN LLP
Washington, D.C.,
June 27, 1995
- 4 -
<PAGE> 5
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
FUNDS
------------------------------------------------------------------------------
COMPANY GOVERNMENT DIVERSIFIED FIXED SPECIAL
TOTAL STOCK BONDS PORTFOLIO INCOME DISTRIBUTION LOAN
----------- ----------- ----------- ------------ --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in common stock of
General Dynamics Corporation,
at market value - 828,654
shares (Cost $23,060,674)
Participant-directed $ 30,354,876 $30,354,876 $ - $ - $ - $ - $ -
Non-participant-directed 5,691,601 5,691,601 - - - - -
Investments in securities of
unaffiliated issuers, at
market value-
U.S. Government bonds
(Cost $87,173,680) 87,483,279 - 87,483,279 - - - -
Other securities
(Cost $62,253,018) 66,288,227 - - 55,704,485 - 10,583,742 -
Insurance company contracts,
at contract value 242,189,530 - - - 242,189,530 - -
Loans receivable (payable) 1,999,715 413 (593) (26) 6,892 - 1,993,029
Amounts receivable from
General Dynamics Corporation 180,711 80,469 24,859 6,485 68,898 - -
------------ ----------- ----------- ----------- ------------ ----------- ----------
Total Assets $434,187,939 $36,127,359 $87,507,545 $55,710,944 $242,265,320 $10,583,742 $1,993,029
============ =========== =========== =========== ============ =========== ==========
LIABILITIES:
Fund transfers $ - $ 194,619 $ 1,341,070 $ 647,545 $ (2,264,320) $ 81,086 $ -
Administrative fees payable 204,414 12,288 38,642 66,207 83,610 3,667 -
Loans payable (receivable) - 2,240 16,897 25,112 49,913 6,138 (100,300)
------------ ----------- ----------- ----------- ------------ ----------- ----------
Total Liabilities 204,414 209,147 1,396,609 738,864 (2,130,797) 90,891 (100,300)
------------ ----------- ----------- ----------- ------------ ----------- ----------
Net Assets Available for Benefits $433,983,525 $35,918,212 $86,110,936 $54,972,080 $244,396,117 $10,492,851 $2,093,329
============ =========== =========== =========== ============ =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 5 -
<PAGE> 6
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31,1993
<TABLE>
<CAPTION>
FUNDS
------------------------------------------------------------------------------
COMPANY GOVERNMENT DIVERSIFIED FIXED SPECIAL
TOTAL STOCK BONDS PORTFOLIO INCOME DISTRIBUTION LOAN
----------- ----------- ----------- ------------ --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in common stock of
General Dynamics Corporation,
at market value - 899,744
shares (Cost $23,165,659)
Participant-directed $ 36,887,309 $36,887,309 $ - $ - $ - $ - $ -
Non-participant-directed 4,613,394 4,613,394 - - - - -
Investments in securities of
unaffiliated issuers, at market
value-
U.S. Government bonds
(Cost $111,079,230) 111,968,336 - 111,968,336 - - - -
Other securities
(Cost $65,754,243) 77,514,731 - - 64,322,390 - 13,192,341 -
Insurance company contracts,
at contract value 241,498,877 - - - 241,498,877 - -
Loans receivable (payable) 1,868,515 (1,948) (507) (677) (2,214) - 1,873,861
Amounts receivable from (payable to)
General Dynamics Corporation 352,747 310,302 28,974 12,451 4,914 (3,894) -
------------ ----------- ------------ ----------- ------------ ----------- ----------
Total Assets $474,703,909 $41,809,057 $111,996,803 $64,334,164 $241,501,577 $13,188,447 $1,873,861
============ =========== ============ =========== ============ =========== ==========
LIABILITIES:
Fund transfers $ - $ 128,888 $ 848,965 $ (19,006) $ (992,030) $ 33,183 $ -
Administrative fees payable 228,749 17,301 84,003 29,216 92,688 5,541 -
Loans payable (receivable) - 3,015 29,589 34,569 54,899 10,728 (132,800)
------------ ----------- ------------ ----------- ------------ ----------- ----------
Total Liabilities 228,749 149,204 962,557 44,779 (844,443) 49,452 (132,800)
------------ ----------- ------------ ----------- ------------ ----------- ----------
Net Assets Available for Benefits $474,475,160 $41,659,853 $111,034,246 $64,289,385 $242,346,020 $13,138,995 $ 2,006,661
============ =========== ============ =========== ============ =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 6 -
<PAGE> 7
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
FUNDS
-------------------------------------------------------------------------------
COMPANY STOCK
------------------------------
PARTICIPANT- NON-PARTICIPANT- GOVERNMENT DIVERSIFIED FIXED INCOME
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO
------------ ----------- --------------- ------------ ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,435,876 $ 1,083,179 $ 82,178 $ - $ 1,270,519 $ -
Interest 25,537,160 8,871 673 5,583,503 59,409 19,409,008
------------ ----------- ---------- ----------- ----------- ------------
27,973,036 1,092,050 82,851 5,583,503 1,329,928 19,409,008
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS)
ON ASSETS SOLD OR DISTRIBUTED 2,857,993 2,663,105 202,043 (5,345,675) 5,335,795 2,725
UNREALIZED APPRECIATION
(DEPRECIATION) OF ASSETS (13,700,755) (4,972,024) (377,215) (579,508) (7,772,803) 795
ROLLOVER CONTRIBUTIONS 85,870 2,146 - 15,888 21,207 46,629
DEPOSITS BY PARTICIPANTS 16,571,137 1,875,545 - 3,081,315 2,901,969 8,712,308
CONTRIBUTIONS BY GENERAL
DYNAMICS CORPORATION 7,922,979 557,906 1,656,521 1,262,946 1,081,348 3,366,756
LOAN REPAYMENTS 88,807 272,028 (122) 125,369 166,559 405,094
LOANS ISSUED - (32,154) - (214,371) (296,693) (616,087)
TRANSFER BETWEEN
INVESTMENT FUNDS - (532,910) (9,111) (6,542,022) (847,867) 8,343,472
DISTRIBUTIONS TO
WITHDRAWN PARTICIPANTS (80,918,407) (7,620,888) (487,260) (22,002,812) (10,799,822) (37,131,443)
PLAN EXPENSES (1,372,295) (114,152) - (307,943) (436,926) (489,160)
------------ ----------- ---------- ----------- ----------- ------------
NET INCREASE (DECREASE) (40,491,635) (6,809,348) 1,067,707 (24,923,310) (9,317,305) 2,050,097
NET ASSETS AVAILABLE
FOR BENEFITS:
BEGINNING OF YEAR 474,475,160 37,683,469 3,976,384 111,034,246 64,289,385 242,346,020
------------ ----------- ---------- ----------- ----------- ------------
END OF YEAR $433,983,525 $30,874,121 $5,044,091 $86,110,936 $54,972,080 $244,396,117
============ =========== ========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
---------------------------
SPECIAL
DISTRIBUTION LOAN
------------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ - $ -
Interest 475,696 -
----------- ----------
475,696 -
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS)
ON ASSETS SOLD OR DISTRIBUTED - -
UNREALIZED APPRECIATION
(DEPRECIATION) OF ASSETS - -
ROLLOVER CONTRIBUTIONS - -
DEPOSITS BY PARTICIPANTS - -
CONTRIBUTIONS BY GENERAL
DYNAMICS CORPORATION (2,498) -
LOAN REPAYMENTS - (880,121)
LOANS ISSUED (60,495) 1,219,800
TRANSFER BETWEEN
INVESTMENT FUNDS (411,562) -
DISTRIBUTIONS TO
WITHDRAWN PARTICIPANTS (2,623,171) (253,011)
PLAN EXPENSES (24,114) -
----------- ----------
NET INCREASE (DECREASE) (2,646,144) 86,668
NET ASSETS AVAILABLE
FOR BENEFITS:
BEGINNING OF YEAR 13,138,995 2,006,661
----------- ----------
END OF YEAR $10,492,851 $2,093,329
=========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 7 -
<PAGE> 8
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
FUNDS
-------------------------------------------------------------------------------
COMPANY STOCK
-------------------------------
PARTICIPANT- NON-PARTICIPANT- GOVERNMENT DIVERSIFIED FIXED INCOME
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO
------------ ----------- --------------- ------------ ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,647,499 $ 1,216,585 $ 60,048 $ - $ 1,370,866 $ -
Interest 25,879,854 11,480 567 7,107,127 81,587 18,303,014
------------ ----------- ---------- ----------- ----------- ------------
28,527,353 1,228,065 60,615 7,107,127 1,452,453 18,303,014
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS)
ON ASSETS SOLD OR DISTRIBUTED 13,037,470 5,971,162 294,723 595,825 5,964,614 312,220
UNREALIZED APPRECIATION
(DEPRECIATION) OF ASSETS (3,141,822) (187,116) (9,236) (1,733,034) (1,275,288) 25,437
NET GAIN FROM SPECIAL
DISTRIBUTION 11,540,776 10,876,027 664,749 -- -- --
ROLLOVER CONTRIBUTIONS 88,361 3,863 - 21,327 16,263 46,908
DEPOSITS BY PARTICIPANTS 21,841,260 2,070,694 - 4,766,463 3,414,547 11,589,556
CONTRIBUTIONS BY GENERAL
DYNAMICS CORPORATION 10,270,665 767,385 1,797,972 1,971,525 1,285,001 4,468,678
LOAN REPAYMENTS 66,682 200,170 128 107,496 120,828 278,207
LOANS ISSUED - (17,764) - (301,013) (312,236) (594,309)
TRANSFER BETWEEN
INVESTMENT FUNDS - (21,143,690) (1,221,252) (2,865,334) 4,026,893 8,846,915
DISTRIBUTIONS TO WITHDRAWN
PARTICIPANTS (104,323,188) (10,140,033) (556,674) (32,763,568) (14,228,252) (44,266,940)
PLAN EXPENSES (1,989,158) (148,984) - (523,486) (546,693) (734,358)
------------ ----------- ---------- ------------ ------------ ------------
NET INCREASE (DECREASE) (24,081,601) (10,520,221) 1,031,025 (23,616,672) (81,870) (1,724,672)
NET ASSETS AVAILABLE FOR
BENEFITS:
BEGINNING OF YEAR 487,242,202 48,203,690 2,945,359 134,650,918 64,371,255 232,756,133
Transfer of assets from
the Amended and Restated
Hourly Employee Investment
Plan of Cessna Aircraft
Company 11,314,559 -- -- -- -- 11,314,559
------------ ----------- ---------- ----------- ----------- ------------
END OF YEAR $474,475,160 $37,683,469 $3,976,384 $111,034,246 $64,289,385 $242,346,020
============ =========== ========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
---------------------------
SPECIAL
DISTRIBUTION LOAN
------------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ - $ -
Interest 376,079 -
----------- ----------
376,079 -
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS)
ON ASSETS SOLD OR DISTRIBUTED (101,074) -
UNREALIZED APPRECIATION
(DEPRECIATION) OF ASSETS 37,415 -
NET GAIN FROM SPECIAL
DISTRIBUTION -- --
ROLLOVER CONTRIBUTIONS - -
DEPOSITS BY PARTICIPANTS - -
CONTRIBUTIONS BY GENERAL
DYNAMICS CORPORATION (19,896) -
LOAN REPAYMENTS - (640,147)
LOANS ISSUED (126,778) 1,352,100
TRANSFER BETWEEN
INVESTMENT FUNDS 12,356,468 -
DISTRIBUTIONS TO WITHDRAWN
PARTICIPANTS (2,222,112) (145,609)
PLAN EXPENSES (35,637) -
----------- ----------
NET INCREASE (DECREASE) 10,264,465 566,344
NET ASSETS AVAILABLE
FOR BENEFITS:
BEGINNING OF YEAR 2,874,530 1,440,317
Transfer of assets from
the Amended and Restated
Hourly Employee Investment
Plan of Cessna Airrcraft
Company -- --
----------- ----------
END OF YEAR $13,138,995 $2,006,661
=========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 8 -
<PAGE> 9
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1992
<TABLE>
<CAPTION>
FUNDS
-----------------------------------------------------------------------------
COMPANY STOCK
------------------------------
PARTICIPANT- NON-PARTICIPANT- GOVERNMENT DIVERSIFIED FIXED INCOME
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO
------------ ----------- --------------- ------------ ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,664,877 $1,016,640 $ 34,140 $ - $ 1,614,097 $ -
Interest 30,969,032 28,332 995 10,121,555 105,439 20,599,427
------------ ---------- ---------- ----------- ----------- ------------
33,633,909 1,044,972 35,135 10,121,555 1,719,536 20,599,427
ADD (DEDUCT)-
NET REALIZED GAIN ON
ASSETS SOLD OR DISTRIBUTED 24,183,086 16,729,450 561,557 761,461 5,165,811 948,872
UNREALIZED APPRECIATION
(DEPRECIATION) OF ASSETS 10,017,893 11,876,496 398,624 (2,178,395) 212,392 (277,571)
ROLLOVER CONTRIBUTIONS 26,682 -- - -- -- 26,682
DEPOSITS BY PARTICIPANTS 41,303,177 3,327,685 - 10,435,832 5,501,695 22,037,965
CONTRIBUTIONS BY GENERAL
DYNAMICS CORPORATION 19,261,285 1,143,005 3,087,137 4,404,856 2,120,130 8,511,342
LOAN REPAYMENTS 29,020 84,446 -- 42,674 54,264 100,059
LOANS ISSUED - (76,187) - (553,391) (419,888) (800,765)
TRANSFER BETWEEN INVESTMENT
FUNDS - (16,283,930) (483,446) 561,037 2,921,812 9,320,781
DISTRIBUTIONS TO WITHDRAWN
PARTICIPANTS (105,441,723) (13,939,592) (653,648) (31,918,152) (14,513,455) (43,183,340)
PLAN EXPENSES (2,018,243) (194,168) - (633,683) (325,512) (855,996)
------------ ---------- ---------- ----------- ----------- ------------
NET INCREASE (DECREASE) 20,995,086 3,712,177 2,945,359 (8,956,206) 2,436,785 16,427,456
NET ASSETS AVAILABLE
FOR BENEFITS:
BEGINNING OF YEAR 470,419,780 44,708,631 -- 144,301,418 62,611,178 218,798,553
Transfer of assets to
Computer Sciences
Corporation Savings Plan (4,172,664) (217,118) -- (694,294) (676,708) (2,469,876)
------------ ---------- ---------- ----------- ----------- ------------
END OF YEAR $487,242,202 $48,203,690 $2,945,359 $134,650,918 $64,371,255 $232,756,133
============ ========== ========== ============ =========== =============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
---------------------------
SPECIAL
DISTRIBUTION LOAN
------------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ - $ -
Interest 113,284 -
------------ -----------
113,284 -
ADD (DEDUCT)-
NET REALIZED GAIN (LOSS) ON
ASSETS SOLD OR DISTRIBUTED 15,935 -
UNREALIZED APPRECIATION
(DEPRECIATION) OF ASSETS (13,653) -
ROLLOVER CONTRIBUTIONS - -
DEPOSITS BY PARTICIPANTS - -
CONTRIBUTIONS BY GENERAL
DYNAMICS CORPORATION (5,185) -
LOAN REPAYMENTS - (252,423)
LOANS ISSUED (48,869) 1,899,100
TRANSFER BETWEEN INVESTMENT
FUNDS 3,963,746 -
DISTRIBUTIONS TO WITHDRAWN
PARTICIPANTS (1,027,176) (206,360)
PLAN EXPENSES (8,884) -
------------ -----------
NET INCREASE (DECREASE) 2,989,198 1,440,317
NET ASSETS AVAILABLE
FOR BENEFITS:
BEGINNING OF YEAR -- --
Transfer of assets to
Computer Sciences
Corporation Savings Plan (114,668) --
------------ -----------
END OF YEAR $2,874,530 $1,440,317
============ ===========
</TABLE>
The accompanying notes are an intregral part of these financial statements.
- 9 -
<PAGE> 10
SCHEDULE I
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
COMBINED STATEMENT OF INVESTMENTS OF
MASTER TRUST FUNDS
AT DECEMBER 31, 1994
- 10 -
<PAGE> 11
SCHEDULE I
PAGE 1 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
COMPANY STOCK FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF QUOTED MARKET
SHARES COST VALUE
------------- -------------- ---------------
<S> <C> <C> <C>
COMPANY STOCK FUND:
Investment in common stock of
General Dynamics Corporation 6,373,621 $154,543,157 $277,252,533
========== ============ ============
PROPORTIONATE INTEREST 828,654 $ 23,060,674 $ 36,046,477
========== ============ ============
Loans Receivable N/A $ 30,247,352 $ 30,247,352
============ ============
PROPORTIONATE INTEREST N/A $ 1,999,715 $ 1,999,715
============ ============
</TABLE>
- 11 -
<PAGE> 12
SCHEDULE I
PAGE 2 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
GOVERNMENT BONDS FUND
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
GOVERNMENT BONDS FUND:
U.S. Treasury Notes
U.S. Treasury Notes 4.25% due January 31, 1995 9,900,000 $ 9,992,039 $ 9,892,278
U.S. Treasury Notes 5.50% due February 15, 1995 6,500,000 6,552,474 6,498,960
U.S. Treasury Notes 5.125% due March 31, 1996 8,000,000 7,938,438 7,776,240
U.S. Treasury Notes 7.625% due April 30, 1996 13,000,000 13,026,406 13,022,360
U.S. Treasury Notes 4.25% due May 15, 1996 15,000,000 14,645,312 14,376,600
U.S. Treasury Notes 6.00% due June 30, 1996 7,000,000 6,849,063 6,849,080
U.S. Treasury Notes 6.125% due July 31, 1996 5,000,000 4,893,750 4,892,200
U.S. Treasury Notes 6.25% due August 31, 1996 7,100,000 6,951,344 6,950,261
U.S. Treasury Notes 7.00% due September 30, 1996 7,100,000 7,031,219 7,029,000
U.S. Treasury Notes 6.875% due October 31, 1996 14,000,000 13,842,500 13,811,840
U.S. Treasury Notes 6.50% due November 30, 1996 11,600,000 11,386,125 11,358,952
U.S. Treasury Notes 6.125% due December 31, 1996 8,600,000 8,383,656 8,362,124
U.S. Treasury Notes 6.25% due January 31, 1997 11,200,000 10,917,375 10,897,264
U.S. Treasury Notes 6.75% due February 28, 1997 2,500,000 2,456,836 2,450,775
U.S. Treasury Notes 6.875% due March 31, 1997 4,800,000 4,725,750 4,712,976
U.S. Treasury Notes 6.875% due April 30, 1997 11,000,000 11,184,950 10,797,160
U.S. Treasury Notes 6.75% due May 31, 1997 5,100,000 4,991,226 4,986,066
U.S. Treasury Notes 6.375% due June 30, 1997 4,800,000 4,657,500 4,652,256
U.S. Treasury Notes 5.50% due July 31, 1997 7,900,000 7,490,805 7,479,088
U.S. Treasury Notes 5.625% due August 31, 1997 5,100,000 4,843,008 4,837,044
U.S. Treasury Notes 5.50% due September 30, 1997 2,900,000 2,740,953 2,737,339
U.S. Treasury Notes 5.75% due October 31, 1997 7,600,000 7,217,625 7,204,572
U.S. Treasury Notes 6.00% due November 30, 1997 7,100,000 6,777,726 6,770,489
U.S. Treasury Notes 6.00% due December 31, 1997 5,200,000 4,960,312 4,954,612
U.S. Treasury Notes 5.625% due January 31, 1998 3,000,000 2,824,453 2,818,110
------------ ------------
Total U.S. Treasury Notes 187,280,845 186,117,646
------------ ------------
U.S. Treasury Bonds
U.S. Treasury Bond 4.25% due July 31, 1995 9,900,000 9,993,973 9,757,638
U.S. Treasury Bond 7.875% due July 31, 1996 7,000,000 7,317,187 7,028,420
U.S. Treasury Bond 7.25% due May 15, 2016 5,000,000 5,182,551 4,623,450
------------ ------------
Total U.S. Treasury Bonds 22,493,711 21,409,508
------------ ------------
Temporary Investments
The Northern Trust Company
Collective Short-Term Investment Fund 8,788,891 8,788,891 8,788,891
------------ ------------
INCOME RECEIVABLE 3,805,943 3,805,943
------------ ------------
TOTAL GOVERNMENT BONDS FUND $222,369,390 $220,121,988
============ ============
PROPORTIONATE INTEREST $ 87,173,680 $ 87,483,279
============ ============
</TABLE>
- 12 -
<PAGE> 13
SCHEDULE I
PAGE 3 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
COMMON STOCKS:
Aerospace:
Allied Signal Incorporated 65,900 $ 1,855,932 $ 2,240,600
Coltec Industry Incorporated 15,400 286,433 263,725
Lockheed Martin Corporation 1,800 87,125 88,351
Loral Corporation 1,200 46,956 45,450
McDonnell Douglas Corporation 2,700 312,421 383,400
Raytheon Company 5,300 238,218 338,537
Rockwell International Corporation 7,600 198,131 271,700
---------- ----------
Total 3,025,216 3,631,763
---------- ----------
Airlines:
AMR Corporation 45,200 2,593,919 2,406,900
ADR British Airways PLC 45,500 2,790,748 2,576,437
KLM Royal Dutch Airlines 18,000 488,931 441,000
Northwest Airlines Corporation 86,900 1,550,671 1,368,675
Southwest Airlines Company 94,700 2,627,694 1,586,225
UAL Corporation 55,050 4,974,560 4,809,994
---------- ----------
Total 15,026,523 13,189,231
---------- ----------
Automotive:
Chrysler Corporation 138,200 7,250,410 6,771,800
Ford Motor Company 187,700 5,239,017 5,232,138
General Motors Corporation 150,900 7,190,557 6,356,662
Modine Manufacturing Company 10,200 285,225 293,250
---------- ----------
Total 19,965,209 18,653,850
---------- ----------
Building:
Fluor Corporation 12,000 529,440 517,500
Masco Corporation 6,200 165,153 140,275
---------- ----------
Total 694,593 657,775
---------- ----------
Chemicals:
Avery Dennison Corporation 10,000 327,450 355,000
Dow Chemical Company 60,000 4,391,070 4,035,000
DuPont, (E.I.) DeNemours & Company 184,800 10,561,522 10,371,900
</TABLE>
- 13 -
<PAGE> 14
SCHEDULE I
PAGE 4 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
Hercules, Incorporated 6,400 $ 662,174 $ 738,400
Lyondell Petrochemical Company 10,000 274,700 258,750
Monsanto Company 22,400 1,765,727 1,579,200
Tyco International Unlimited 1,500 49,394 71,250
Union Carbide Corporation 22,776 558,356 555,189
---------- ----------
Total 18,590,393 17,964,689
---------- ----------
Consumer Goods:
American Brands, Incorporated 28,000 958,860 1,050,000
Archer-Daniels-Midland Company 15,000 234,392 309,375
Avon Products Incorporated 33,700 2,058,591 2,013,575
Black & Decker Corporation 15,800 310,463 375,250
Circus Circus Enterprises
Incorporated 2,800 61,207 64,750
Coca Cola Company 134,800 6,278,788 6,942,200
Con Agra Incorporated 30,000 929,225 937,500
CPC International Incorporated 33,400 1,607,806 1,778,550
Crown Cork & Seal Company 14,100 505,038 532,275
General Mills Incorporated 15,300 857,907 874,013
Gillette Company 36,200 2,490,974 2,710,475
H.J. Heinz Company 2,000 74,405 73,500
IBP 25,000 746,485 756,250
Kellogg Company 24,700 1,355,010 1,435,687
McDonalds Corporation 10,000 296,910 292,500
Pepsico, Incorporated 72,000 2,541,849 2,610,000
Philip Morris Companies Incorporated 162,100 9,073,020 9,320,750
Procter & Gamble Company 61,100 3,312,310 3,788,200
Ralston-Ralston Purina Group 15,000 620,625 669,375
V.F. Corporation 14,700 724,982 714,787
---------- ----------
Total 35,038,847 37,249,012
---------- ----------
Electronics:
General Electric Company 91,600 4,316,378 4,671,600
Sybase Incorporated 300 14,100 15,600
TSL Holdings Incorporated 330 - 10
---------- ----------
Total 4,330,478 4,687,210
---------- ----------
Energy:
Amoco Corporation 30,000 1,781,974 1,773,750
Ashland Incorporated 12,000 403,440 414,000
</TABLE>
- 14 -
<PAGE> 15
SCHEDULE I
PAGE 5 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
Chevron Corporation 2,300 $ 96,813 $ 102,638
Enron Corporation 38,100 1,174,015 1,162,050
Exxon Corporation 80,900 4,913,694 4,914,675
Freeport McMoran Incorporated 28,000 457,375 497,000
Mobil Corporation 40,900 3,462,789 3,445,825
Occidental Petroleum Corporation 89,000 1,793,361 1,713,250
Orynx Energy Company 37,100 542,434 440,563
Phillips Petroleum Company 20,000 674,900 655,000
Pittston ServicesGroup 11,000 310,070 288,750
Royal Dutch Petroleum Company 14,000 1,345,770 1,508,500
Schlumberger Limited 40,900 2,443,135 2,060,338
Smith International, Incorporated 30,000 521,100 370,320
Texaco Incorporated 25,300 1,557,717 1,514,837
Union Tex Tete Holdings Incorporated 12,000 230,940 249,000
---------- ----------
Total 21,709,527 21,110,496
---------- ----------
Financial Services and Insurance:
AFLAC Incorporated 14,000 463,680 448,000
AMBAC Incorporated 28,300 1,107,653 1,054,175
American Express Company 80,000 2,144,948 2,360,000
American General Corporation 28,000 811,860 791,000
American International Group
Incorporated 6,400 542,371 627,200
Bank America Corporation 45,800 2,128,896 1,809,100
Banker's Trust New York Corporation 18,900 1,347,693 1,046,587
Beneficial Corporation 7,000 277,540 273,000
Central Fidelity Banks, Incorporated 1,500 39,551 36,375
Chase Manhattan Corporation 66,000 2,284,020 2,268,750
CIGNA Corporation 24,000 1,484,880 1,527,000
Citicorp 80,400 3,167,552 3,326,550
Corestates Financial Corporation 2,700 71,178 70,200
Dean Witter Discover & Company 54,900 2,099,607 1,859,738
Federal National Mortgage
Association 98,700 7,304,483 7,192,763
FHLMC 22,000 1,144,442 1,111,000
First Bank Systems, Incorporated 105,800 3,433,553 3,512,876
First Commerce Corporation 9,300 246,137 204,600
</TABLE>
- 15 -
<PAGE> 16
SCHEDULE I
PAGE 6 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
First Interstate Bancorp 31,000 $ 2,499,785 $ 2,096,375
First Union Corporation 9,600 389,136 397,200
Firstar Corporation 20,700 613,933 556,313
Fleet Financial Group Incorporated 32,400 1,099,276 1,048,950
Great Western Financial Corporation 48,100 861,489 769,600
Household International Incorporated 23,000 872,390 853,875
MBNA Corporation 73,100 1,776,172 1,708,713
Merrill Lynch & Company 181,000 5,848,615 6,470,750
Morgan Stanley Group Incorporated 28,300 1,692,602 1,669,700
Nationsbank Corporation 75,100 3,703,510 3,388,888
Northern Trust Corporation 1,200 44,305 42,000
Norwest Corporation 283,800 6,336,041 6,633,825
Progressive Corporation 56,300 2,305,634 1,970,500
Providian Corporation 17,100 610,804 527,962
Republic NewYork Corporation 2,500 115,467 113,125
Salomon Incorporated 2,000 74,760 75,000
Schwab Charles Corporation 500 13,761 17,438
Shawmut National Corporation 6,300 116,928 103,162
St. Paul Companies Incorporated 18,000 760,040 805,500
Travelers Incorporated 11,552 445,580 373,996
UNUM Corporation 31,400 1,391,390 1,185,350
Washington Mutual Incorporated 20,700 381,200 349,313
Wells Fargo & Company 11,000 1,636,945 1,595,000
Wilmington Trust Corporation 23,200 638,714 527,800
---------- ----------
Total 64,328,521 62,799,249
---------- ----------
Health Care:
Abbott Laboratories 60,700 1,553,145 1,980,338
Bausch & Lomb, Incorporated 14,000 482,105 474,250
Baxter International Incorporated 55,000 1,535,805 1,553,750
Becton, Dickinson and Company 15,000 739,980 720,000
Columbia/HCA Healthcare Corporation 43,300 1,596,000 1,580,450
Health Management Associates
Incorporated 12,700 300,103 317,500
Humana Incorporated 45,800 1,021,896 1,036,225
Johnson & Johnson 14,000 757,765 766,500
</TABLE>
- 16 -
<PAGE> 17
SCHEDULE I
PAGE 7 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
Manor Care, Incorporated 11,600 $ 314,199 $ 317,550
Millipore Corporation 14,000 733,152 677,250
United Healthcare Corporation 139,100 4,269,986 6,276,887
U.S. Healthcare Corporation 29,300 1,113,517 1,208,625
---------- ----------
Total 14,417,653 16,909,325
---------- ----------
Leisure Time & Communications:
Boyd Gaming Corporation 17,400 256,795 187,050
Capital Cities, ABC, Incorporated 20,000 1,440,010 1,705,000
CBS Incorporated 19,000 1,076,830 1,049,750
Comcast Corporation 83,350 1,500,090 1,307,510
Mirage Resorts Incorporated 61,550 1,260,413 1,261,775
Philippine Long Distance Telephone
Company 4,000 263,020 220,500
Tele-Communications, Incorporated 89,400 1,828,708 1,944,450
VIACOM Incorporated-A 6,840 229,656 284,715
VIACOM Incorporated-B 80,424 2,776,674 3,277,277
VIACOM IncorporatedVariable 435,200 829,833 489,600
---------- ----------
Total 11,462,029 11,727,627
---------- ----------
Machinery:
Caterpillar Incorporated 42,000 2,319,186 2,315,250
Cooper Industries, Incorporated 51,700 2,282,560 1,757,800
Cummins Engine Company 10,000 446,200 452,500
Deere & Company 53,300 3,599,512 3,531,125
Eaton Corporation 18,000 947,100 891,000
FGN Astra ABA-F 37,500 738,015 967,950
ITT Corporation 14,000 1,131,206 1,240,750
---------- ----------
Total 11,463,779 11,156,375
---------- ----------
Merchandising:
Best Buy, Incorporated 40,600 1,173,733 1,268,750
Charming Shoppes, Incorporated 12,100 105,719 80,162
Dayton-Hudson Corporation 26,000 2,083,120 1,839,500
Fruit of the Loom-A 7,400 195,685 199,800
Home Depot Incorporated 20,500 865,604 943,000
Kohls Corporation 36,100 1,762,266 1,434,975
Limited Incorporated 111,400 2,412,879 2,019,125
</TABLE>
- 17 -
<PAGE> 18
SCHEDULE I
PAGE 8 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------------ ---------- ------------
<S> <C> <C> <C>
Melville Corporation 57,400 $ 2,430,507 $ 1,772,225
Sears, Roebuck and Company 5,000 246,225 230,000
TJXCOS Incorporated 60,400 1,156,992 943,750
Wal-Mart Stores, Incorporated 11,700 308,647 248,625
---------- ----------
Total 12,741,377 10,979,912
---------- ----------
Metals:
Allegheny Ludlum Corporation 20,700 426,511 388,125
Bethlehem Steel Corporation 164,500 3,567,848 2,961,000
Freeport McMoran Copper & Gold
Incorporated 25,550 523,415 542,937
Inco Unlimited 32,000 811,424 916,000
LTV Corporation 63,700 1,153,327 1,051,050
NUCOR Corportion 20,700 1,392,072 1,146,263
Phelps Dodge Corporation 19,000 1,155,347 1,175,625
Reynolds Metals Company 18,800 914,413 921,200
---------- ----------
Total 9,944,357 9,102,200
---------- ----------
Miscellaneous:
Albermarle Corporation 8,900 122,854 123,488
Illinova Corporation 4,100 84,671 89,560
Northcorp Realty Advisors Incorporated 849 - 531
Omnicom Group Incorporated 3,000 156,999 155,250
Owens Corning Fiberglass Corporation 3,300 136,906 105,187
---------- ----------
Total 501,430 474,016
---------- ----------
Office Equipment:
International Business Machines
Corporation 28,400 1,891,778 2,087,400
Microsoft Corporation 11,200 617,247 684,600
Novell Incorporated 74,900 1,598,728 1,282,663
Quantum Corporation 48,500 720,603 733,562
---------- ----------
Total 4,828,356 4,788,225
---------- ----------
Pharmaceuticals:
Alza Corporation 57,100 1,512,182 1,027,800
American Home Products Corporation 36,200 2,158,938 2,271,550
Bristol Myers Squibb Company 31,000 1,787,480 1,794,125
Gensia Incorporated 8,500 268,940 36,125
Marion Merrell Dow Incorporated 56,000 1,321,092 1,141,000
Merck & Company, Incorporated 48,200 1,481,835 1,837,625
</TABLE>
- 18 -
<PAGE> 19
SCHEDULE I
PAGE 9 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
Pfizer Incorporated 500 $ 38,265 $ 38,625
Schering-Plough Corporation 51,000 3,757,986 3,774,000
UPJOHN Company 51,000 1,608,630 1,568,250
---------- ----------
Total 13,935,348 13,489,100
---------- ----------
Printing, Publishing and Paper:
Donnelley, R.R., & Sons Company 8,700 250,248 256,650
Champion International Corporation 13,800 437,796 503,700
Georgia-Pacific Corporation 21,500 1,421,903 1,537,250
International Paper Company 21,600 1,699,789 1,628,100
Kimberly-Clark Corporation 34,000 1,708,330 1,712,750
Scott Paper Company 17,000 1,078,784 1,175,125
Westvaco Corporation 9,000 328,332 353,250
---------- ----------
Total 6,925,182 7,166,825
---------- ----------
Railroads:
CSX Corporation 3,400 256,767 236,725
Canadian Pacific Unlimited 24,000 418,104 360,000
Conrail Incorporated 36,000 1,906,223 1,818,000
Southern Pacific Rail Corporation 38,700 663,760 701,438
Union Pacific Corporation 29,000 1,623,443 1,315,875
---------- ----------
Total 4,868,297 4,432,038
---------- ----------
Rubber:
Cooper Tire & Rubber Company 15,500 368,072 366,187
Goodyear Tire & Rubber Company 8,100 308,119 272,363
---------- ----------
Total 676,191 638,550
---------- ----------
Service Industries:
Chemical Waste Management
Incorporated 40,100 718,413 375,938
Federal Express Corporation 24,000 1,480,522 1,446,000
Health Care & Retirement Corporation 9,000 232,032 271,125
Manpower Incorporated 11,000 321,360 309,375
National Services Industries,
Incorporated 6,900 185,595 176,811
Service Corporation International 76,000 1,923,983 2,109,000
SPS Transactions Services
Incorporated 8,700 242,046 228,375
Walt Disney Company 63,100 2,688,784 2,902,600
Wheelabrator Technologies
Incorporated 8,600 129,043 126,850
---------- ----------
Total 7,921,778 7,946,074
---------- ----------
</TABLE>
- 19 -
<PAGE> 20
SCHEDULE I
PAGE 10 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
Technology:
Autodesk Incorporated 10,500 $ 264,588 $ 416,063
Compaq Computer Corporation 129,800 4,508,585 5,127,100
General Signal Corporation 5,300 174,005 168,937
Hewlett-Packard Company 15,000 1,155,800 1,498,125
Intel Corporation 134,700 6,555,267 8,603,962
Intuit 5,400 193,738 360,450
Micron Technology, Incorporated 13,000 530,738 573,625
Motorola Incorporated 49,400 1,928,050 2,865,200
Northern Telecom Limited 14,600 420,691 487,275
Oracle Systems Corporation 3,200 141,200 141,200
Premier Industrial Corporation 2,700 68,880 63,788
Silicon Graphics Incorporated 2,300 75,582 71,659
Xerox Corporation 8,000 862,410 792,000
Xilinx Incorporated 3,700 144,713 219,225
---------- ----------
Total 17,024,247 21,388,609
---------- ----------
Utilities:
ADR Telefonos DeMex SA 15,200 775,448 623,200
Airtouch Communication Incorporated 65,300 1,839,574 1,901,863
Allegheny Power System Incorporated 9,500 195,067 206,625
American Electric Power Company 12,000 396,060 394,500
Ameritech Corporation 50,000 2,032,956 2,018,750
AT&T Corporation 83,700 4,190,258 4,205,925
Bell Atlantic Corporation 12,000 654,188 597,000
Bell South Corporation 46,100 2,528,848 2,495,162
Entergy Corporation 46,900 1,158,742 1,025,937
FPL Group Incorporated 4,900 141,314 172,113
Global Marine Incorporated 56,800 235,751 205,900
GTE Corporation 62,200 2,179,673 1,889,325
Long Island Lighting Company 30,000 476,100 461,250
MCI Communications Corporation 92,600 1,962,927 1,701,525
Pacific Telesis Group 66,000 2,030,713 1,881,000
Potomac Electric Power Company 6,300 121,000 115,763
</TABLE>
- 20 -
<PAGE> 21
SCHEDULE I
PAGE 11 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ---------- ------------
<S> <C> <C> <C>
SCE Corporation 4,100 $ 55,886 $ 59,963
Sprint Corporation 4,000 130,194 110,500
Texas Utilities Company 3,800 140,285 121,600
US West 40,400 1,516,229 1,439,250
Williams Company Incorporated 20,000 602,760 502,500
------------ ------------
Total 23,363,973 22,129,651
------------ ------------
Total common stocks $322,783,304 $322,271,802
============ ============
TEMPORARY INVESTMENTS:
The Northern Trust Company
Collective Short-Term Investment
Fund 16,020,702 16,020,702 16,020,702
Tandon Computer Purchase Coupon 5,248 - 1,837
------------ ------------
Total Temporary Investments $ 16,020,702 $ 16,022,539
============ ============
INCOME RECEIVABLE 768,091 768,090
------------ ------------
TOTAL DIVERSIFIED PORTFOLIO FUND $339,572,097 $339,062,431
============ ============
PROPORTIONATE INTEREST $ 51,716,800 $ 55,704,485
============ ============
</TABLE>
- 21 -
<PAGE> 22
SCHEDULE I
PAGE 12 OF 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
FIXED INCOME FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
INTEREST RATE
AS OF
DECEMBER 31, MATURITY CONTRACT
1994 DATE VALUE
-------------- --------- --------------
<S> <C> <C> <C>
INSURANCE CONTRACTS:
Aetna Life and Casualty Company 10.00% 1/3/00 $ 84,966,785
Aetna Life and Casualty Company 7.07% Open 265,839,242
Metropolitan Life Insurance Company 7.60% Open 269,877,856
Metropolitan Life Insurance Company VAR. Open 270,911,042
The Prudential Insurance Company of America 10.25% 7/5/95 55,597,953
The Prudential Insurance Company of America 9.92% 5/1/98 83,091,023
The Prudential Insurance Company of America 9.65% 8/31/00 41,250,835
The Prudential Insurance Company of America 9.80% 8/31/00 61,904,532
The Prudential Insurance Company of America 7.28% Open 271,948,614
The Travelers Insurance Company 12.60% 7/1/95 180,605,141
The Travelers Insurance Company 9.65% 2/1/96 2,387,103
The Travelers Insurance Company 8.15% 2/1/97 3,232,952
The Travelers Insurance Company 9.26% 2/1/98 3,005,337
--------------
Total Insurance Contracts 1,594,618,415
--------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund 4,474,077
--------------
INCOME RECEIVABLE 14,255
--------------
TOTAL FIXED INCOME FUND $1,599,106,747
==============
PROPORTIONATE INTEREST $ 242,189,530
==============
</TABLE>
- 22 -
<PAGE> 23
Schedule I
Page 13 of 13
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLANS
SPECIAL DISTRIBUTION FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF SHARES QUOTED MARKET
OR PRINCIPAL AMOUNT COST VALUE
-------------------- ------------- ----------------
<S> <C> <C> <C>
SPECIAL DISTRIBUTION FUND:
The Northern Trust Company Collective
Short-Term Investment Fund 37,944,719 $37,944,719 $37,944,719
Income Receivable 177,963 177,963
----------- -----------
TOTAL SPECIAL DISTRIBUTION FUND $38,122,682 $38,122,682
=========== ===========
PROPORTIONATE INTEREST $10,583,742 $10,583,742
=========== ===========
</TABLE>
- 23 -
<PAGE> 24
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
1. INVESTMENT OPTIONS
The General Dynamics Corporation Hourly Employees Savings and Stock
Investment Plan (the "Plan") has eight investment options:
1) 33-1/3% Government Bonds Fund, 33-1/3% Diversified Portfolio Fund
(equity securities of issues other than General Dynamics Corporation)
and 33-1/3% Company Stock Fund (General Dynamics Corporation common
stock),
2) 33-1/3% Government Bonds Fund and 66-2/3% Company Stock Fund,
3) 33-1/3% Government Bonds Fund and 66-2/3% Diversified Portfolio Fund,
4) 100% Government Bonds Fund,
5) 33-1/3% Fixed Income Fund (consists primarily of investment contracts
with one or more insurance companies which guarantee a minimum rate of
return over a specified period) and 66-2/3% Diversified Portfolio Fund,
6) 33-1/3% Fixed Income Fund and 66-2/3% Company Stock Fund,
7) 100% Fixed Income Fund or
8) 100% Company Stock Fund.
Nonunion hourly and union hourly active or employed inactive
participants who are members of unions that have adopted the loan provisions
pursuant to collective bargaining agreements are permitted to borrow up to
50% of the vested amount in their accounts in accordance with the specific
provisions of the Plan. Participants may repay the loan by regular payroll
deductions over a period of up to four years.
General Dynamics Corporation (the "Company") matches participant
contributions at a rate of $.50 for each $1.00 of such participant
contributions for most participants under collective bargaining agreements.
Both participant and related Company contributions to the Plan were
invested in the same investment option.
Effective April 1, 1991, the Company matching contribution provisions
of the Plan were changed to provide that certain plan members not covered
by collective bargaining agreements could select a new investment option,
Option 8, under which the Company will match participant contributions at a
rate of $1.00 for each $1.00 of participant contributions if the
participant chooses to invest 100% of the participant's contributions in
the Company Stock Fund. Contributions invested in the Company Stock Fund
must be held in that fund for five years before becoming eligible for
transfer to any other fund. Furthermore, post-March 31, 1991, investments
of any sort in the Company Stock Fund may not be withdrawn until they have
been held in the Plan for at least five plan years. In addition, for the
nonrepresented plan members who do not elect Option 8, the 50% Company
matching contribution remains unchanged. All Company matching
contributions made after March 31, 1991, will be invested in Company Stock.
Any amounts forfeited in accordance with provisions of the Plan are applied
to reduce subsequent Company contributions.
Also, with respect to participants who are eligible for selection of
investment Option 8, another series of plan provisions has been added:
i. Investment fund transfer rules were expanded to allow all plan members
to elect one fund transfer per calendar year. Participants may
transfer both their contributions and the Company's contributions
invested in any fund to any other investment fund, except as follows:
- transfers may not be made from the Fixed Income Fund,
- funds may not be transferred into and out of the same investment fund
during a transfer, and
- all investments in Company common stock must be
held for five plan years before they may be transferred.
Transfers from the Company Stock Fund may only be initiated after January
1, 1993 or such other date as may be provided by the applicable
collective bargaining agreement.
- 24 -
<PAGE> 25
ii. In addition, all investments made in the Company Stock Fund after
March 31, 1991 (or such other date as provided by the applicable
collective bargaining agreement) must be held for five plan years
before they may be withdrawn or borrowed.
All Company matching contributions to the Plan after January 1, 1992 for
nonunion participants and union participants who are members of unions that
have adopted the Option 8 provisions pursuant to collective bargaining
agreements are classified as non-participant-directed investments in the
financial statements. All participant contributions to the Company Stock
Fund and Company matching contributions to the Company Stock Fund for union
participants who are members of unions that have not adopted the Option 8
provisions pursuant to collective bargaining agreements are reflected as
participant-directed investments. With the exception of the Company Stock
Fund, all other investment funds are completely participant-directed.
All non-union plan members and certain members covered by collective
bargaining agreements with the Company become fully vested in all
investments purchased with Company contributions upon the earlier of
completion of five years of continuous service with the Company or death,
retirement, layoff (for four consecutive weeks), permanent or total
disability or involuntary entry into military service.
Certain plan members covered by various collective bargaining agreements
are eligible to make additional matched and unmatched contributions to the
Plan. These additional contributions may not exceed the maximum percentages
of base earnings specified in the collective bargaining agreements.
The Plan provides that any special distributions payable to non-union
members with respect to Company Stock allocated to participant accounts
would be credited to the participants Special Distribution Fund, rather than
being automatically reinvested in additional shares of Company Stock.
Participants are entitled to transfer amounts credited to their accounts in
the Special Distribution Fund to other investment funds. Special
distributions include all proceeds received from tenders or sales of Company
Stock and other distributions, except regular quarterly dividends which
would continue to be invested in Company Stock. Funds credited to these
accounts in the Special Distribution Fund would be invested in high quality
securities. The Company has negotiated similar changes in the Plan as
applicable to unionized employees with those employees' collective
bargaining units.
In addition, the Plan was amended to permit non-union participants who
have shares of Company Stock allocated to their accounts to direct the
trustee with respect to tender of shares pursuant to any Company Stock
repurchase program or tender offer. Any proceeds realized from such share
repurchase will be treated as a Special Distribution. Similar changes have
been negotiated with respect to unionized employees in the Plan.
On June 8, 1992, the Company announced an offer to purchase 26,000,000
shares of its common stock, par value $1 per share (including the associated
series A Junior Participating Preferred Stock Purchase Rights) at a price
not less than $32 11/16 per share nor greater than $37 1/2 per share through
a Self-Tender Offer. The Offer became effective June 10, 1992, and expired
on July 8, 1992. The Company actually purchased 26,499,782 shares of its
common stock at $36 1/8 per share. Plan participants were permitted to
participate in this Offer under the terms of the Plan and tendered
approximately 449,448 shares. Proceeds received by the Plan ($16,236,309)
for allocated shares tendered and accepted under the Offer were credited to
accounts created in the Special Distribution Fund for participants who
directed that such shares be tendered. Participants are permitted to
transfer amounts to their credit in the Special Distribution Fund to other
funds, including the Company Stock Fund. These transfers are reflected in
the Statement of Changes in Net Assets Available for Benefits as transfers
between investment funds. During the pendency of the Offer and the
succeeding tabulation period, the Plan did not purchase any Company Stock,
but held amounts invested in the Company Stock Fund for later investment in
Company Stock. Company Stock purchases were resumed on July 30, 1992.
- 25 -
<PAGE> 26
The number of participants in each investment option was as follows:
<TABLE>
<CAPTION>
PARTICIPATING EMPLOYEES
------------------------------------------
AS OF AS OF AS OF
OPTION 12/31/94 12/31/93 12/31/92
----------- ----------- -----------
<S> <C> <C> <C>
(i) . . . . . . . . . . . . . . . . . . . . . . . . 1,390 1,201 1,604
(ii) . . . . . . . . . . . . . . . . . . . . . . . . 1,045 811 1,082
(iii) . . . . . . . . . . . . . . . . . . . . . . . . 1,402 1,305 1,739
(iv) . . . . . . . . . . . . . . . . . . . . . . . . 3,254 3,070 5,006
(v) . . . . . . . . . . . . . . . . . . . . . . . . 1,948 1,701 2,150
(vi) . . . . . . . . . . . . . . . . . . . . . . . . 534 364 469
(vii) . . . . . . . . . . . . . . . . . . . . . . . . 8,886 7,500 10,607
(viii) . . . . . . . . . . . . . . . . . . . . . . . . 613 502 498
</TABLE>
2. FEDERAL INCOME TAXES
The Company has received a determination from the Internal Revenue
Service that the Plan, including all amendments through June 20, 1994, is a
qualified profit sharing plan under Section 401 (a) of the Internal Revenue
Code. The trust formed thereunder is exempt from Federal income tax under
Section 501 (a). The plan administrator and plan's tax counsel believe
that the Plan is currently designed and being operated in compliance with
the applicable requirements of the Internal Revenue Code. Therefore, they
believe that the Plan was qualified and the related trust was tax exempt as
of the financial statement date.
Under a qualified profit sharing plan, a member of the Plan is not
subject to income tax on contributions made by the Company on the member's
behalf, or on dividends, interest or profits from sales of securities
credited to the member's account, until the contributions or income credited
to the member's account are withdrawn by the member. Secondly, the Trust is
not subject to income tax on dividends, interest or profits from sales of
securities received by The Northern Trust Company, the trustee of the Plan.
Lastly, the Company is entitled to a current deduction for its contributions
to the Plan.
Under the Tax Reform Act of 1986, different tax treatments are accorded
undistributed amounts of pre-January 1, 1987 after-tax contributions as
opposed to after-tax contributions made thereafter. Distributions made after
January 1, 1987, are considered to be allocable, first, to undistributed
pre-January 1, 1987 after-tax contributions. Distributions will be
nontaxable until amounts equal to those contributions have been recovered.
Thereafter, a pro rata portion of each distribution will be considered to be
a return of post-January 1, 1987 after-tax contributions, if any.
3. MASTER TRUST FUNDS
For investment purposes, the assets of the Plan are combined in Master
Trust Funds with the assets of the General Dynamics Corporation Savings and
Stock Investment Plan. The value shown in the accompanying financial
statements represents the Plan's proportionate interest in the reported
market value of the assets in the Master Trust Funds. Investment income,
realized gains or losses and unrealized appreciation or depreciation are
allocated monthly to the respective plans based on their proportionate
interest in the Master Trust at market value.
4. NET REALIZED GAIN (LOSS) ON SECURITIES SOLD OR DISTRIBUTED
The cost of securities sold or distributed is based on average cost.
Gains and losses are recognized on Company common stock forfeited by or
distributed to participants. The following is a summary of the net realized
gain (loss) on disposition of securities for the years ended December 31,
1994, 1993 and 1992:
- 26 -
<PAGE> 27
<TABLE>
<CAPTION>
MASTER TRUST
------------------------------------------------------------------
NET PROPORTIONATE
FUND COST PROCEEDS GAIN (LOSS) INTEREST
---- -------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
1994
Company stock . . . . . . $ 17,296,134 $ 30,235,423 $ 12,939,289 $ 2,865,148
Government bonds . . . . . 361,461,022 348,033,733 (13,427,289) (5,345,675)
Diversified portfolio . . 589,775,259 622,664,585 32,889,326 5,335,795
Fixed income . . . . . . 435,558,202 435,577,387 19,185 2,725
Special distribution . . -- -- -- --
-------------------------------------------------------------------
$1,404,090,617 $1,436,511,128 $ 32,420,511 $ 2,857,993
===================================================================
1993
Company stock . . . . . . $ 31,889,522 $ 63,626,462 $ 31,736,940 $ 6,265,885
Government bonds . . . . 316,764,926 318,337,717 1,572,791 595,825
Diversified portfolio . . 378,111,420 415,031,520 36,920,100 5,964,614
Fixed income . . . . . . 200,148,747 202,422,664 2,273,917 312,220
Special distribution . . 25,523,438 25,032,891 (490,547) (101,074)
-------------------------------------------------------------------
$ 952,438,053 $1,024,451,254 $ 72,013,201 $ 13,037,470
===================================================================
1992
Company stock . . . . . . $ 209,440,229 $ 333,713,328 $ 124,273,099 $ 17,291,007
Government bonds . . . . 191,809,837 193,741,338 1,931,501 761,461
Diversified portfolio . . 385,683,834 415,322,023 29,638,189 5,165,811
Fixed income . . . . . . 1,062,539,917 1,069,640,439 7,100,522 948,872
Special distribution . . 214,796,875 215,041,016 244,141 15,935
-------------------------------------------------------------------
$2,064,270,692 $2,227,458,144 $ 163,187,452 $ 24,183,086
===================================================================
</TABLE>
5. NET GAIN FROM SPECIAL DISTRIBUTION
During 1993, the Company's Board of Directors declared the following
special distributions to its shareholders:
<TABLE>
<CAPTION>
Date of
Shareholder Distribution
Date Declared Date Payable Record Per Share Amount
- ----------------- --------------- ------------ ------------- ----------
<S> <C> <C> <C> <C>
March 18 April 22 April 5 $10 $9,631,885
June 2 July 12 June 21 $9 $8,172,259
September 15 October 12 September 28 $6 $5,596,964
</TABLE>
All distributions were deposited into the Special Distribution Fund.
Each participant was entitled to a one-time transfer of each distribution to
any other fund in the Plan. A portion of these distributions represented a
return of capital. The proportionate interest in the gain attributable to
the Plan was $11,540,776.
6. UNREALIZED APPRECIATION (DEPRECIATION)
- 27 -
<PAGE> 28
The unrealized appreciation (depreciation) of investments for the years
ended December 31, 1994, 1993 and 1992 is as follows:
<TABLE>
<CAPTION>
UNREALIZED APPRECIATION (DEPRECIATION)
-----------------------------------------------
BEGINNING END OF INCREASE
FUND OF YEAR YEAR (DECREASE)
------- ----------- ----------- ------------
<S> <C> <C> <C>
1994
Company stock . . . . . . . . . . . $17,339,629 $11,990,390 $ (5,349,239)
Government bonds . . . . . . . . . 889,106 309,598 (579,508)
Diversified portfolio . . . . . . . 11,760,487 3,987,684 (7,772,803)
Fixed income . . . . . . . . . . . (1,523) (728) 795
Special distribution . . . . . . . 23,762 23,762 --
-----------------------------------------------
$30,011,461 $16,310,706 $(13,700,755)
===============================================
1993
Company stock . . . . . . . . . . . $17,535,981 $17,339,629 $ (196,352)
Government bonds . . . . . . . . . 2,622,140 889,106 (1,733,034)
Diversified portfolio . . . . . . . 13,035,775 11,760,487 (1,275,288)
Fixed income . . . . . . . . . . . (26,960) (1,523) 25,437
Special distribution . . . . . . . (13,653) 23,762 37,415
-----------------------------------------------
$33,153,283 $30,011,461 $ (3,141,822)
===============================================
1992
Company stock . . . . . . . . . . . $ 5,260,861 $17,535,981 $12,275,120
Government bonds . . . . . . . . . 4,800,535 2,622,140 (2,178,395)
Diversified portfolio . . . . . . . 12,823,383 13,035,775 212,392
Fixed income . . . . . . . . . . . 250,611 (26,960) (277,571)
Special distribution . . . . . . . -- (13,653) (13,653)
-----------------------------------------------
$23,135,390 $33,153,283 $ 10,017,893
===============================================
</TABLE>
7. WITHDRAWALS AND FORFEITURES
The following is a summary of amounts withdrawn during the years ended
December 31, 1994, 1993 and 1992. The amounts forfeited have been reflected
as reductions in the Company's contributions on the accompanying statements
of changes in net assets available for benefits:
<TABLE>
<CAPTION>
BALANCE OF AMOUNT
PARTICIPANTS' DISBURSED ON AMOUNT
FUND ACCOUNTS SETTLEMENT FORFEITED
---------- ------------- ------------ ----------
<S> <C> <C> <C>
1994
Company stock . . . . . . . . . . . $ 8,124,523 $ 8,108,148 $ 16,375
Government bonds . . . . . . . . . 22,013,837 22,002,812 11,025
Diversified portfolio . . . . . . . 10,818,404 10,799,822 18,582
Fixed income . . . . . . . . . . . 37,198,931 37,131,443 67,488
Special distribution . . . . . . . 2,625,667 2,623,171 2,496
Loans . . . . . . . . . . . . . . . 253,011 253,011 --
------------------------------------------------
$ 81,034,373 $ 80,918,407 $ 115,966
================================================
</TABLE>
- 28 -
<PAGE> 29
<TABLE>
<S> <C> <C> <C>
1993
Company stock . . . . . . . . . . . $ 10,788,821 $ 10,696,707 $ 92,114
Government bonds . . . . . . . . . 32,806,536 32,763,568 42,968
Diversified portfolio . . . . . . . 14,271,780 14,228,252 43,528
Fixed income . . . . . . . . . . . 44,411,545 44,266,940 144,605
Special distribution . . . . . . . 2,242,007 2,222,112 19,895
Loans . . . . . . . . . . . . . . . 145,609 145,609 --
------------------------------------------------
$104,666,298 $104,323,188 $ 343,110
================================================
1992
Company stock . . . . . . . . . . . $ 14,701,389 $ 14,593,240 $ 108,149
Government bonds . . . . . . . . . 31,999,064 31,918,152 80,912
Diversified portfolio . . . . . . . 14,594,784 14,513,455 81,329
Fixed income . . . . . . . . . . . 43,530,834 43,183,340 347,494
Special distribution . . . . . . . 1,032,361 1,027,176 5,185
Loans . . . . . . . . . . . . . . . 206,360 206,360 --
------------------------------------------------
$106,064,792 $105,441,723 $ 623,069
================================================
</TABLE>
8. DEPARTMENT OF LABOR RECONCILIATION
In accordance with generally accepted accounting principles, amounts
allocated to accounts of participants who have elected to withdraw from the
Plan but have not yet been paid as of year end are not reported as
liabilities on the Statements of Net Assets Available for Benefits. However,
the Department of Labor requires that these amounts be reported as
liabilities on Form 5500. At December 31, 1994 and 1993, amounts payable on
withdrawals and distributions were $8,077,916 and $8,994,174, respectively.
In addition, on the Statements of Changes in Net Assets Available for
Benefits for the years ended December 31, 1994, 1993 and 1992,
distributions to withdrawn participants would have been $80,002,149,
$104,553,591, $105,027,767 instead of $80,918,407, $104,323,188,
$105,441,723, respectively, if the December 31 amounts payable on
withdrawals and distributions had been included.
On the Statement of Changes in Net Assets Available for Benefits, net
realized gain on assets sold or distributed and unrealized depreciation of
assets are reported in accordance with generally accepted accounting
principles. The following restatement is necessary to comply with the
Department of Labor's rules which require that realized and unrealized
depreciation of plan assets be based on the value of the assets at the
beginning of the plan year or at time of purchase during the year. In
addition, the Department of Labor's regulations require that both the net
realized gain (loss) and the unrealized depreciation on the Plan's
investments in various commingled funds be classified as a net investment
gain (loss) from common/collective trusts.
<TABLE>
<CAPTION>
GENERAL
ACCEPTED DEPARTMENT
ACCOUNTING OF LABOR'S
PRINCIPLES REGULATIONS
------------ --------------
<S> <C> <C>
Net realized gain (loss) on assets sold or distributed $ 2,857,993 $ (1,505,955)
Unrealized (depreciation) of assets (13,700,755) (9,185,826)
Net investment (loss) from common/collective trusts - (150,981)
------------- -------------
$ (10,842,762) $(10,842,762)
=============== =============
</TABLE>
- 29 -
<PAGE> 30
9. PLAN EXPENSES
Administrative expenses of the Plan are primarily paid by the Plan and
may be paid by the Company.
10. TRANSFERS TO OTHER PLAN
The Company sold the information technology operations of its Data
Systems Division to Computer Sciences Corporation during 1991. Effective
July 31, 1992, $4,172,664 of plan assets were transferred to the Computer
Sciences Corporation Savings Plan on behalf of former Company employees now
working for Computer Sciences Corporation.
Effective December 31, 1993, all of the assets and obligations of the
Amended and Restated Hourly Employee Investment Plan of the Cessna Aircraft
Company were merged with the Plan.
11. PRIOR YEAR RESTATEMENT
Certain items on the 1993 and 1992 financial statements have been
reclassified in order to conform with the 1994 presentation.
12. STOCK SPLIT
On March 4, 1994, the Company's Board of Directors authorized a
two-for-one stock split effected in the form of a 100% stock dividend to be
distributed on April 11, 1994 to shareholders of record on March 21, 1994.
All references in the financial statements to number of shares, per share
amounts and market prices of the Company's common stock have been restated.
13. DISCONTINUED OPERATIONS
During 1994, the Company completed the sale of its Space Launch Systems
business to Martin Marietta Corporation, and the lime and brick operations
of its Material Service business to Calcitherm Nederland, NV.
During 1993, the Company completed the sale of its Tactical Military
Aircraft business to Lockheed Corporation and its Electronic Manufacturing
Center to EFW, Inc.
Effective December 31, 1993, all of the assets and obligations of the
Amended and Restated Hourly Employee Investment Plan of the Cessna Aircraft
Company were merged with the Plan.
During 1992, the Company completed the sales of The Cessna Aircraft
Company to Textron, Inc., its Missile Systems business to Hughes Aircraft
Company and its Electronics business to The Carlyle Group.
Contributions to the Plan were terminated for the participants at these
sold-off businesses. Participants may elect to receive total account balance
distributions from the Plan at any time. All participants at these sold-off
businesses are fully vested in the Plan.
14. SUBSEQUENT EVENTS
The American Institute of Certified Public Accountants (AICPA) issued
Statement of Position No. 94-4, "Reporting of Investment Contracts Held by
Health and Welfare Benefit Plans and Defined Contributions Pension Plans."
This new standard requires that investment contracts be reported at fair
value at either the quoted market price from reliable third-party evidence
or determined by discounting the future cash flows by an appropriate
discount rate. This is a significant change from the Company's current
policy of recording investment contracts at contract value.
The Company is required to adopt these new accounting and disclosure
rules no later than 1995 and plans to do so effective January 1, 1995.
Adoption of this statement is not expected to have a material impact on the
plan's results of operations or financial condition.
- 30 -
<PAGE> 31
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To General Dynamics Corporation:
We have audited the accompanying statements of net assets available for
benefits of the General Dynamics Corporation Hourly Employees Savings and Stock
Investment Plan as of December 31, 1994 and 1993, and the related statements of
changes in net assets available for benefits for the years ended December 31,
1994, 1993 and 1992. These financial statements and the schedule referred to
below are the responsibility of the Plan Administrator. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the General
Dynamics Corporation Hourly Employees Savings and Stock Investment Plan as of
December 31, 1994 and 1993, and the changes in its net assets available for
benefits for the years ended December 31, 1994, 1993 and 1992, in conformity
with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The Combined Statement of
Investments in Master Trust Funds (Schedule I), is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The supplemental schedules and
Fund Information have been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
by /s/ Arthur Andersen LLP
-----------------------
Arthur Andersen LLP
Washington, D.C.,
May 12, 1995
- 31 -
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