<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-K/A
AMENDMENT TO APPLICATION ON 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 1995 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/ P.A. HESSE
P.A. Hesse
Secretary
June 26, 1996
-1-
<PAGE> 2
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Note Exhibit
Number Number Description
- ------ ------- -----------
<S> <C> <C>
(7) 3-1A -Registered Certificates of Incorporation, effective May 21, 1991
(10) 3-2B -Bylaws as amended effective May 4, 1994
4 -Letter to agreement to furnish copy of indenture
(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) 10-6A -General Dynamics Corporation Incentive Compensation Plan adopted February 3, 1988,
approved by the shareholders on May 4, 1988
(6) 10-6B -General Dynamics Corporation Incentive Compensation (as amended), approved by shareholders
on May 1, 1991
(3) 10-7C-2 -Facilities Contract DAAEO7-83-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 equipment 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 equipment at the Scranton
Defense Plant, Eynon, Pennsylvania
(6) 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 government-
owned facilities and equipment at the Lima Army Tank Plant, Lima, Ohio
(6) 10-7F -Facilities Contract DAAE07-91-E-A002 dated December 21, 1990, between the company's
General Dynamics Land Systems Inc. subsidiary and the Unitied States relating to government-
owned facilities and equipment at the Detroit Arsenal Tank Plant, Warren, Michigan
(10) 10-8B -General Dynamics Corporation Retirement Plan for Directors adopted March 6, 1986, as
amended May 5, 1993
(5) 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
(5) 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
(8) 10-18 -Employment Agreement between the company and James R. Mellor dated as of
March 17, 1993
10-18A -Amendment to employment agreement between the company and James R. Mellor dated as of
October 3, 1995
(8) 10-22 -Form of Agreement entered into in 1993 between the company and Corporate Officers who
were being retained in employment with the company
(9) 10-23 -Employment agreement between the company and Nicholas D. Chabraja, dated
February 3, 1993, as amended December 22, 1993
(11) 10-24 -Asset Purchase Agreement, dated August 17, 1995, between the company and Bath Iron Works
Corporation
10-25 -Lease Agreement dated January 14, 1982, between the company's Bath Iron Works Corp.
subsidiary and the City of Portland, Maine, relating to pier facilities in the Portland, Maine
harbor
10-26 -Lease Agreement dated January 14, 1982, between the company's Bath Iron Works Corp.
subsidiary and the State of Maine, relating to a dry dock facility in the Portland, Maine harbor
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
Note Exhibit
Number Number Description
- ------ ------- -----------
<S> <C> <C>
10-27 -Form of Employment Agreement pertaining to change of control entered into between the
company and key executives
11 -Statement re computation of per share earnings
13 -1995 Shareholder Report (pages 18-38)
21 -Subsidiaries
23 -Consent of Independent Public Accountants
24 -Power of Attorney of the Board of Directors
27 -Financial Data Schedule
99(d) 1995 Annual Report on Form 11-K for the General Dynamics Corporation Savings and Stock Investment
Plan
99(e) 1995 Annual Report on Form 11-K for the General Dynamics Corporation Hourly Employees Savings and
Stock Investment Plan
</TABLE>
NOTES
(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, 1987, and filed with the Commission March
17, 1988, 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, 1989, and filed with the Commission March
30, 1990, 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, 1990, and filed with the Commission March
29, 1991, 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, 1991, and filed with the Commission March
26, 1992, 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, 1992, and filed with the Commission March
30, 1993, 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, 1993, and filed with the Commission March
29, 1994, 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, 1994, and filed with the Commission March 9,
1995, and incorporated herein by reference.
(11) Filed as an exhibit to the company's current report on Form 8-K
filed with the Commission September 28, 1995, and incorporated herein
by reference.
<PAGE> 4
ADDITIONAL EXHIBIT 99(d) TO
ANNUAL REPORT ON FORM 10-K
OF GENERAL DYNAMICS CORPORATION
SEC FILE NO. 1-3671
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 19(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
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 23042-4523
-4-
<PAGE> 5
GENERAL DYNAMICS CORPORATION
INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
Pages of this
Form 11-K
--------------
<S> <C> <C>
(a) FINANCIAL STATEMENTS
Report of Independent Public Accountants 7
Statements of Net Assets Available for Benefits,
December 31, 1995 and 1994 8-9
Statements of Changes in Net Assets Available for Benefits
- Fiscal Years Ended December 31, 1995 10
Notes to Financial Statements 11-14
Schedule I - Combined Statement in Investments
in Master Trust Funds 15-29
(b) SIGNATURE 6
(c) EXHIBITS
Consent of Independent Public Accountants 6
</TABLE>
- 5 -
<PAGE> 6
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/ P.A. HESSE
---------------
P.A. Hesse
Secretary
June 26, 1996
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 26, 1996
- 6 -
<PAGE> 7
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, 1995 and 1994, and the related statement of changes in net
assets available for benefits for the year ended December 31, 1995. 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 and schedule 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, 1995
and 1994, and the changes in its net assets available for benefits for the year
ended December 31, 1995, in conformity with generally accepted accounting
principles.
Our audit was made 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 statement 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 Fund Information in the statements of net assets
available for benefits and the statement of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to
present the net assets available for benefits and changes in net assets
available for benefits of each fund. The supplemental schedule and Fund
Information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
Washington, D.C.,
June 26, 1996
- 7 -
<PAGE> 8
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995
<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 - 5,454,175 shares
(Cost $140,443,105)-
Participant-directed $ 191,226,070 $191,226,070 $ - $ -
Non-participant-directed 131,252,015 131,252,015 - -
Investments in securities of unaffiliated
issuers, at market value
U.S. Government bonds
(Cost $112,186,744) 111,397,508 - 111,397,508 -
Other securities (Cost $310,399,422) 343,097,590 - - 320,488,543
Guaranteed investment contracts, at fair value
(Cost $1,267,924,294) 1,348,372,519 - - -
Loans receivable (payable) 19,381,252 435,692 (42,175) (163,176)
Amounts receivable from (payable to) General
Dynamics Corporation 184,227 195,130 4,495 10,577
--------------- -------------- ------------ ------------
Total Assets $2,144,911,181 $323,108,907 $111,359,828 $320,335,944
=============== ============== ============ ============
LIABILITIES:
Fund transfers $ - $ 2,607,321 $ 1,332,952 $ (846,478)
Administrative fees payable 267,727 31,024 15,528 90,404
Loans payable (receivable) - 103,123 76,666 258,243
--------------- -------------- ------------ ------------
Total Liabilities 267,727 2,741,468 1,425,146 (497,831)
--------------- -------------- ------------ ------------
Net Assets Available for Benefits $2,144,643,454 $320,367,439 $109,934,682 $320,833,775
=============== ============== ============ ============
</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 - 5,454,175 shares
(Cost $140,443,105)-
Participant-directed $ - $ - $ -
Non-participant-directed - - -
Investments in securities of unaffiliated
issuers, at market value
U.S. Government bonds
(Cost $112,186,744) - - -
Other securities (Cost $310,399,422) - 22,609,047 -
Guaranteed investment contracts, at fair value
(Cost $1,267,924,294) 1,348,372,519 - -
Loans receivable (payable) (49,847) - 19,200,758
Amounts receivable from (payable to)
General Dynamics Corporation (25,975) - -
-------------- ----------- -----------
Total Assets $1,348,296,697 $22,609,047 $19,200,758
============== =========== ===========
LIABILITIES:
Fund transfers $ (3,431,919) $ 338,124 $ -
Administrative fees payable 128,055 2,716 -
Loans payable (receivable) 811,757 14,411 (1,264,200)
-------------- ----------- -----------
Total Liabilities (2,492,107) 355,251 (1,264,200)
-------------- ----------- -----------
Net Assets Available for Benefits $1,350,788,804 $22,253,796 $20,464,958
============== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 8 -
<PAGE> 9
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
Guaranteed investment 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 -
Guaranteed investment 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.
- 9 -
<PAGE> 10
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
FUNDS
------------------------------------------------
COMPANY STOCK
-------------------------------
NON-
PARTICIPANT- PARTICIPANT- GOVERNMENT
TOTAL DIRECTED DIRECTED BONDS
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME-
Dividends $ 14,321,687 $ 4,847,308 $ 3,373,253 $ -
Interest 115,894,357 40,473 28,165 7,805,518
-------------- ------------ ------------ ------------
130,216,044 4,887,781 3,401,418 7,805,518
ADD (DEDUCT)-
NET REALIZED GAIN ON ASSETS SOLD OR DISTRIBUTED 79,325,874 8,353,987 5,813,560 3,332,406
NET UNREALIZED APPRECIATION OF ASSETS 185,103,330 42,638,896 29,672,510 1,767,766
ROLLOVER CONTRIBUTIONS 404,192 3,224 - 745
DEPOSITS BY PARTICIPANTS 26,092,844 14,188,609 - 867,668
CONTRIBUTIONS BY GENERAL DYNAMICS
CORPORATION 17,840,202 (18,778) 17,869,483 (50)
LOAN REPAYMENTS 1,794,893 6,747,707 - 762,875
LOANS ISSUED - (390,005) - (626,618)
TRANSFER BETWEEN INVESTMENT FUNDS - (6,296,454) - (5,978,604)
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (363,238,076) (27,579,791) (19,771,281) (27,094,344)
PLAN EXPENSES (2,757,988) (195,206) - (103,250)
-------------- ------------ ------------ ------------
Net increase (decrease) 74,781,315 42,339,970 36,985,690 (19,265,888)
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 2,069,862,139 144,437,460 96,604,319 129,200,570
-------------- ------------ ------------ ------------
End of year $2,144,643,454 $186,777,430 $133,590,009 $109,934,682
============== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FUNDS
----------------------------------------------------------------
DIVERSIFIED FIXED SPECIAL
PORTFOLIO INCOME DISTRIBUTION LOAN
-------------- -------------- ---------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME-
Dividends $ 6,101,126 $ - $ - $ -
Interest 228,501 106,291,014 1,500,686 -
------------ -------------- ----------- -----------
6,329,627 106,291,014 1,500,686 -
ADD (DEDUCT)-
NET REALIZED GAIN ON ASSETS SOLD OR DISTRIBUTED 61,099,713 726,208 - -
NET UNREALIZED APPRECIATION OF ASSETS 37,195,518 73,828,640 - -
ROLLOVER CONTRIBUTIONS 25,069 282,921 92,233 -
DEPOSITS BY PARTICIPANTS 2,695,144 8,341,423 - -
CONTRIBUTIONS BY GENERAL DYNAMICS
CORPORATION (6,255) (3,388) (810) -
LOAN REPAYMENTS 2,286,447 6,307,403 - (14,309,539)
LOANS ISSUED (2,101,774) (5,710,953) (107,850) 8,937,200
TRANSFER BETWEEN INVESTMENT FUNDS (3,380,694) 16,691,102 (1,035,350) -
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (63,143,349) (216,352,866) (5,427,231) (3,869,214)
PLAN EXPENSES (1,518,183) (920,127) (21,222) -
------------ -------------- ----------- -----------
Net increase (decrease) 39,481,263 (10,518,623) (4,999,544) (9,241,553)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 281,352,512 1,361,307,427 27,253,340 29,706,511
------------ -------------- ----------- -----------
End of year $320,833,775 $1,350,788,804 $22,253,796 $20,464,958
============ ============== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 10 -
<PAGE> 11
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1995 AND 1994
1. The General Dynamics Corporation Savings and Stock Investment Plan (the
"Plan") is a contributory defined contribution plan covering eligible
salaried employees of General Dynamics Corporation (the "Company") that
have completed one year of continuous service. The following is a brief
description of the Plan provided for general information purposes.
Participants should refer to the Plan agreement for more complete
information.
A member may contribute from 2% to 10% of the first $25,000 of base
earnings and 2% - 6% of base earnings in excess of $25,000. In addition,
members may also contribute another 1% - 4% of base salary on an
unmatched basis.
Each member shall direct his contributions to be invested in accordance
with one of the following options:
1) 33-1/3% Government Bonds Fund, 33-1/3% Diversified Portfolio Fund and
33-1/3% Company Stock Fund,
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 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. The amount of any loan made after April 1, 1991 is
limited to 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.
All Company matching contributions to the Plan are invested in Company
common stock. Options 1 through 7 receive 50 percent Company matching
contribution in Company common stock. Option 8 participants receive a
higher Company matching contribution of 100 percent. Contributions
invested in the Company Stock Fund must be maintained in that fund for 5
years before becoming eligible for transfer to any other fund.
- 11 -
<PAGE> 12
All Company matching contributions to the Plan are classified as
non-participant-directed investments in the financial statements.
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.
The Plan provides that any special distributions payable with respect to
Company Stock allocated to participant accounts would be credited to the
participants in the 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.
Plan members are allowed 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 have only been allowed since
January 1, 1993.
2. According to the Plan Document, the five plan funds may hold the following
types of investments:
a) Government Bonds Fund - includes only direct obligations of the United
States Government and its agencies or obligations guaranteed as to the
payment of interest and principal by the United States Government and
may also include other investments of a short-term nature as provided
in the trust agreement.
b) Diversified Portfolio Fund - includes only common or capital stocks of
issuers other than the Company, bonds or debentures or preferred
stocks convertible into common or capital stocks of issuers other than
the Company, and other similar types of equity investments, and may
also include other investments of a short- term nature as provided in
the trust agreement.
c) Company Stock Fund - includes only common stock of the Company.
- 12 -
<PAGE> 13
d) Fixed Income Fund - includes investments in fixed income and other
investment contracts with insurance companies designated by the
Company and may also include other investments of a short-term nature
as provided in the trust agreement.
e) Special Distribution Fund - includes obligations issued or fully
guaranteed as to payment of principal and interest by the United
States of America or its agencies, high quality commercial paper,
certificates of deposit, short-term investment vehicles or any high
quality securities selected by the Company or any investment manager
of the fund.
3. The accompanying financial statements are prepared on the accrual basis of
accounting.
4. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
5. 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.
6. In the event the Plan is terminated, each member will automatically be
vested in the undistributed Company contributions. Each member will
receive payments based on the specific dollar amounts and shares of company
stock in his account.
7. The Plan is administered by the Company. Certain administrative functions
are performed by employees of the Company. The assets of the Plan are
combined in a Master Trust Fund for investment purposes, with the assets
of the General Dynamics 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 Fund. Investment income, net realized gains or losses
and unrealized appreciation or depreciation are allocated to the respective
plans based on their proportionate interest, at market value, in the Master
Trust Fund. All costs and expenses are primarily paid by the Plan.
Although no costs were paid by the Company in 1995, the Plan document
provides that these costs may be paid by the Company.
8. On the Statement of Changes in Net Assets Available for Benefits, net
realized gain on assets sold or distributed and unrealized appreciation 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
appreciation 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.
<TABLE>
<CAPTION>
GENERAL
ACCEPTED DEPARTMENT
ACCOUNTING OF LABOR'S
PRINCIPLES REGULATIONS
------------ ------------
<S> <C> <C>
Net realized gain on assets sold or distributed $ 79,325,874 $116,046,876
Net unrealized appreciation of assets 185,103,330 148,382,328
------------ ------------
$264,429,204 $264,429,204
============ ============
</TABLE>
- 13 -
<PAGE> 14
9. 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, 1995 and 1994, amounts payable
on withdrawals and distributions were $37,466,541 and $32,332,380,
respectively. In addition, on the Statement of Changes in Net Assets
Available for Benefits, 1995 distributions to withdrawn participants would
have been $368,372,237 instead of $363,238,076 if the December 31 amounts
payable on withdrawals and distributions had been included.
10. In March 1993, the Company closed the sale of its Tactical Military
Aircraft Business to the Lockheed Corporation. During October 1995,
General Dynamics Savings and Stock Investment Plan assets were disbursed to
ex-participants of the Plan.
During 1994, the Company completed the sale of its Space Launch Systems
business to Martin Marietta Corporation.
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.
11. The American Institute of Certified Public Accountants issued Statement of
Position No. 94-4, "Reporting of Investment Contracts Held by Health and
Welfare Benefit Plans and Defined Contribution Pension Plans."
The statement 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. Previously, the Plan accounted for these investments at contract
value. The effect of the adoption at January 1, 1995 based on discounting
the future cash flows, was an increase in fair value of approximately $31
million, which is recorded in unrealized appreciation of assets in the
Fixed Income Fund. Additional unrealized gains recognized during 1995 were
approximately $43 million.
- 14 -
<PAGE> 15
SCHEDULE I
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
COMBINED STATEMENT OF INVESTMENTS IN
MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<PAGE> 16
SCHEDULE I
PAGE 1 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
COMPANY STOCK FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF CURRENT
SHARES COST VALUE
---------------- ------------- -------------
<S> <C> <C> <C>
COMPANY STOCK FUND:
Investment in common stock of
General Dynamics Corporation 6,252,079 $164,558,710 $369,654,197
========= ============ ============
Proportionate Interest 5,454,175 $140,443,105 $322,478,085
========= ============ ============
LOANS RECEIVABLE N/A $20,993,270 $20,993,270
============ ============
Proportionate Interest N/A $19,381,252 $19,381,252
============ ============
</TABLE>
<PAGE> 17
SCHEDULE I
PAGE 2 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
GOVERNMENT BONDS FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
----------- ----------- -------------
<S> <C> <C> <C>
GOVERNMENT BONDS FUND:
U.S. Treasury Notes
U.S. Treasury Notes 7.25% due November 30, 1996 15,000,000 $15,197,266 $15,255,450
U.S. Treasury Notes 6.50% due November 30, 1996 15,000,000 15,157,031 15,159,300
U.S. Treasury Notes 7.50% due December 31, 1996 15,000,000 15,328,125 15,328,050
U.S. Treasury Notes 8.00% due January 15, 1997 15,000,000 15,418,359 15,410,100
U.S. Treasury Notes 4.75% due February 15, 1997 14,100,000 13,992,047 14,016,246
U.S. Treasury Notes 6.875% due February 28, 1997 15,300,000 15,451,437 15,582,132
U.S. Treasury Notes 6.75% due February 28, 1997 15,000,000 15,143,945 15,255,450
U.S. Treasury Notes 4.75% due August 31, 1998 15,000,000 14,744,531 14,824,200
U.S. Treasury Notes 4.75% due September 30, 1998 15,000,000 14,737,500 14,812,500
U.S. Treasury Notes 7.125% due October 15, 1998 4,600,000 4,807,000 4,821,351
U.S. Treasury Notes 4.75% due October 31, 1998 15,000,000 14,723,437 14,805,450
U.S. Treasury Notes 5.50% due November 15, 1998 15,000,000 15,032,813 15,110,100
U.S. Treasury Notes 8.875% due November 15, 1998 15,000,000 16,382,813 16,422,600
------------ ------------
Total U.S. Treasury Notes 186,116,304 186,802,929
------------ ------------
Temporary Investments
The Northern Trust Company
Collective Short-Term Investment Fund 272,647 272,647 272,647
------------ ------------
Income Receivable 3,125,522 3,125,522
------------ ------------
TOTAL GOVERNMENT BONDS FUND $189,514,473 $190,201,098
============ ============
PROPORTIONATE INTEREST $112,186,744 $111,397,508
============ ============
</TABLE>
<PAGE> 18
SCHEDULE I
PAGE 3 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ------------- --------------
<S> <C> <C> <C>
COMMON STOCKS:
Aerospace:
Allied Signal Incorporated 39,800 $1,120,881.35 $1,890,500.00
American West Airlines 10,000 178,700.00 170,000.00
Boeing Company 17,400 1,158,386.94 1,363,725.00
Coltec Inds Incorporated 11,600 210,878.08 134,850.00
Lockheed Martin Corporation 4,300 229,353.87 339,700.00
Loral Corporation 2,200 43,042.58 77,825.00
McDonnell Douglas Corporation 23,800 1,735,901.02 2,189,600.00
Raytheon Company 12,600 352,604.71 595,350.00
United Technologies Corporation 20,000 1,678,098.40 1,897,500.00
Watkins-Johnson Company 10,000 457,450.00 437,500.00
------------- -------------
Total 7,165,296.95 9,096,550.00
------------- -------------
Airlines:
American President Company Ltd. 14,000 413,998.20 322,000.00
ADR British Airways PLC 30,300 1,858,454.49 2,204,325.00
KLM Royal Dutch Airlines 61,239 1,955,736.11 2,158,675.00
Northwest Airlines Corporation 78,300 2,539,636.10 3,993,300.00
UAL Corporation 44,450 6,193,458.38 7,934,325.00
------------- -------------
Total 12,961,283.28 16,612,625.00
------------- -------------
Automotive:
Ford Motor Company 42,100 1,096,773.84 1,215,638.00
General Motors Corporation 9,000 319,957.46 475,875.00
General Motors Corporation 11,400 496,386.32 560,025.00
Modine Manufacturing Company 22,700 619,571.17 544,800.00
Snap-On Incorporated 10,000 441,200.00 452,500.00
------------- -------------
Total 2,973,888.79 3,248,838.00
------------- -------------
Building:
Johnson Controls, Incorporated 4,800 312,087.23 330,000.00
Lennar Corporation 50,000 1,175,490.00 1,256,250.00
Toll Brothers Incorporated 10,000 221,200.00 230,000.00
U S Home Corporation 10,000 258,750.00 291,250.00
USG Corporation 3,900 116,765.32 117,000.00
Vulcan Materials Company 4,000 228,900.88 230,500.00
------------- -------------
Total 2,313,193.43 2,455,000.00
------------- -------------
</TABLE>
<PAGE> 19
SCHEDULE I
PAGE 4 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ------------ -------------
<S> <C> <C> <C>
Chemcials:
Albemarle Corporation 23,300 $402,998.87 $451,438.00
Dow Chemical 32,200 2,252,524.19 2,262,050.00
DuPont, (E.I.) DeNemours & Company 33,100 1,832,873.53 2,312,863.00
Eastman Chemical Company 30,000 1,675,197.00 1,871,250.00
First Mississippi Corporation 10,000 251,200.00 265,000.00
Monsanto Company 2,000 246,740.00 245,000.00
Pulte Corporation 10,000 322,450.00 336,250.00
Raychem Corporation 10,000 537,354.70 568,750.00
Sealed Air Corporation 2,000 51,540.00 56,000.00
Sterling Chemicals 10,000 87,450.00 81,250.00
Tyco International Ltd. 12,000 373,721.19 427,500.00
Union Carbide 104,300 3,648,829.09 3,911,250.00
Wellman Incorporated 7,300 190,301.25 166,075.00
------------- -------------
Total 11,873,179.82 12,954,676.00
------------- -------------
Consumer Goods:
Anheuser-Busch Companies Incorporated 9,600 548,069.70 642,000.00
Applebees International Incorporated 10,000 245,350.00 227,500.00
Black & Decker Corporation 8,000 234,240.82 282,000.00
Buffets, Incorporated 20,000 284,206.00 275,000.00
Coca Cola Company 16,700 719,851.93 1,239,975.00
Coca Cola Enterprises, Incorporated 20,000 488,800.00 537,500.00
Colgate-Palmolive Company 7,600 525,573.31 533,900.00
CPC International Incorporated 13,200 702,314.17 905,850.00
Gillette Company 21,900 919,839.74 1,141,538.00
H.J. Heinz Company 20,000 662,400.00 662,500.00
International Flavors & Fragrances Incorporated 100 4,848.14 4,800.00
McDonalds Corporation 81,900 2,820,282.52 3,695,738.00
Mississippi Chemical Corporation 10,000 225,574.00 232,500.00
Mueller Industry Incorporated 20,000 506,793.34 585,000.00
Nabisco Holdings Corporation 4,700 131,882.00 153,338.00
PEPSICO, Incorporated 57,700 2,351,275.13 3,223,988.00
Philip Morries Companies Incorporated 145,100 8,583,719.93 13,095,275.00
Procter & Gamble Company 26,500 1,514,387.22 2,199,500.00
Ralston-Ralston Purina Group 23,200 1,444,846.40 1,447,100.00
Terra Industries Incorporated 20,000 271,528.00 282,500.00
------------- -------------
Total 23,185,782.35 31,367,502.00
------------- -------------
</TABLE>
<PAGE> 20
SCHEDULE I
PAGE 5 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ------------- -------------
<S> <C> <C> <C>
Electronics:
BMC Industries Incorporated 70,000 $1,134,814.73 $1,627,500.00
FMC Corporation 14,000 1,040,740.00 946,750.00
General Electric Company 21,500 1,008,438.00 1,548,000.00
International Rectifier Corporation 40,000 969,900.00 1,000,000.00
TSL Holdings Incorporated 330 0.00 0.00
W.W. Grainger, Incorporated 6,100 350,905.36 404,125.00
------------- -------------
Total 4,504,798.09 5,526,375.00
------------- -------------
Energy:
Anadarko Petroleum Corporation 12,200 526,976.37 660,325.00
Ashland Incorporated 12,200 418,029.63 428,525.00
Chevron Corporation 33,900 1,677,893.67 1,775,513.00
Cooper Cameron Corporation 13,900 263,788.15 493,450.00
Enron Corporation 24,400 763,638.38 930,250.00
Exxon Corporation 49,500 3,207,536.95 3,984,750.00
Mobil Corporation 11,000 1,229,195.00 1,229,250.00
Occidental Petroleum Corporation 2,600 57,513.66 55,575.00
Oryx Energy Company 21,500 295,191.45 287,563.00
Reading & Bates Corporation 100,000 1,248,478.00 1,500,000.00
Royal Dutch Peroleum Company 23,800 2,596,866.89 3,358,775.00
Sun Company, Incorporated 13,500 364,354.76 369,563.00
Texaco Incorporated 26,300 1,653,050.48 2,064,550.00
Ultramar Corporation 2,900 70,434.18 74,675.00
Western Res Incorporated 3,200 100,592.00 106,800.00
------------- -------------
Total 14,473,539.57 17,319,564.00
------------- -------------
</TABLE>
<PAGE> 21
SCHEDULE I
PAGE 6 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- -------------- -------------
<S> <C> <C> <C>
Financial Services & Insurance:
A. G. Edwards Incorporated 80,000 $2,069,335.00 $1,910,000.00
Aetna Life & Casualty Company 8,900 629,949.72 616,325.00
Allmerica Property & Casualty Companies, Incorporated 10,000 253,700.00 270,000.00
Allstate Corporation 60,000 1,848,118.94 2,467,500.00
AMBAC, Incorporated 26,800 1,051,541.78 1,256,250.00
American Bankers Insurance Group, Incorporated 8,000 291,530.00 312,000.00
American Express Company 2,000 78,790.00 82,750.00
American International Group, Incorporated 27,850 1,994,319.34 2,576,125.00
Banc One Corporation 3,200 112,944.54 120,400.00
BankAmerica Corporation 32,000 1,705,608.19 2,072,000.00
Case Corporation 40,000 1,614,800.00 1,830,000.00
Charter One Financial Incorporated 900 27,862.91 27,563.00
Chemical Banking Corporation 4,000 223,955.00 235,000.00
Citicorp 20,000 1,194,684.34 1,345,000.00
Crown Northcrop Incorporated 849 0.00 314.00
Dean Witter Discover & Company 19,500 848,635.74 916,500.00
Federal Bancorporation, Incorporated 90,000 1,255,570.39 1,417,500.00
Federal National Mortgage Association 27,100 2,296,259.12 3,357,013.00
FHLMC 43,500 2,482,323.90 3,632,250.00
First American Corporation 10,000 441,450.00 473,750.00
First Bank System, Incorporated 6,700 217,436.75 332,488.00
First Chicago NBD Corporation 37,173 1,457,890.98 1,468,334.00
First Interstate BanCorporation 9,500 1,267,245.00 1,296,750.00
First of America Bank Corporation 50,000 2,236,822.20 2,218,750.00
First Union Corporation 20,200 895,269.36 1,123,625.00
First Union Corporation 7,900 465,776.10 595,463.00
First USA Incorporated 7,900 358,542.37 350,563.00
Firstar Corporation 700 25,925.20 27,738.00
Fleet Financial Group Incorporated 1,263 42,868.33 51,467.00
Fremont General Corporation 10,000 344,950.00 367,500.00
General Re Corporation 15,900 2,132,629.83 2,464,500.00
Greentree Financial Corporation 17,300 435,160.50 456,288.00
H. F. Ahmanson & Company 2,400 51,621.71 63,600.00
Huntington Bancshares Incorporated 24,000 599,412.00 576,000.00
Integra Financial Corporation 2,000 120,062.30 126,250.00
ITT Corporation 61,800 2,905,968.02 3,275,400.00
ITT Hartford Group Incorporated 57,600 2,661,374.96 2,786,400.00
ITT Industries Incorporated 66,100 1,410,604.98 1,586,400.00
Jefferson-Pilot Corporation 39,000 1,749,387.00 1,813,500.00
Lehman Brothers Holdings Incorporated 4,000 90,438.46 85,000.00
Lowes Corporation 40,000 2,740,482.21 3,135,000.00
MBIA Incorporated 800 48,848.00 60,000.00
MBNA Corporation 67,200 1,694,199.35 2,478,000.00
</TABLE>
<PAGE> 22
SCHEDULE I
PAGE 7 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- -------------- -------------
<S> <C> <C> <C>
Financial Services & Insurance cont'd:
Meridan BanCorporation Incorporated 13,900 $ 632,620.13 $ 646,350.00
Merrill Lynch & Company, Incorporated 125,100 6,765,048.06 6,380,100.00
Morgan Stanley Group Incorporated 34,200 2,924,875.97 2,757,375.00
Nationsbank Corporation 48,300 2,476,679.43 3,362,888.00
Northern Trust Corporation 10,000 480,250.00 560,000.00
Norwest Corporation 175,200 3,911,466.95 5,781,600.00
Old Republic International Corporation 52,000 1,712,790.00 1,846,000.00
Providian Corporation 21,700 752,010.26 884,275.00
Student Loan Marketing Association 29,000 1,817,595.30 1,914,000.00
T. R. Financial Corporation 10,000 264,119.00 255,000.00
Travelers Group Incorporated 88,600 5,025,146.25 5,548,575.00
US Life Corporation 12,200 343,736.87 364,475.00
Washington Federal Incorporated 17,700 412,790.91 453,563.00
Washington Mutual, Incorporated 11,100 304,086.93 320,513.00
Wells Fargo & Company 26,000 5,554,209.30 5,616,000.00
Wilmington Trust Corporation 9,000 247,776.93 277,875.00
------------- -------------
Total 77,999,496.81 88,625,845.00
------------- -------------
Health Care:
Amgen Incorporated 41,000 1,816,628.24 2,440,313.00
Apria Healthcare Group 18,100 465,207.06 511,325.00
Bausch & Lomb Incorporated 6,000 245,446.62 237,750.00
Baxter International Incorporation 700 20,523.14 29,313.00
Becton Dickinson and Company 40,000 2,724,754.78 3,000,000.00
Columbia/ HCA Healthcare Corporation 82,700 3,393,178.49 4,197,025.00
Health Management Associates Incorporated 10,650 177,235.57 278,231.00
Healthsouth Corporation 10,000 288,700.00 291,250.00
Invacare Corporation 10,000 211,467.50 252,500.00
Johnson & Johnson 6,000 436,284.04 513,000.00
Manor Care, Incorporated 16,800 469,862.87 588,000.00
Medtronic, Incorporated 94,000 4,370,463.74 5,252,250.00
Rhone Poulenc Rorer 3,000 156,735.00 159,750.00
United Health Care Corporation 41,200 1,472,873.05 2,693,450.00
Vivra Incorporated 34,100 765,861.43 856,763.00
------------- -------------
Total 17,015,221.53 21,300,920.00
------------- -------------
</TABLE>
<PAGE> 23
SCHEDULE I
PAGE 8 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ------------ ------------
<S> <C> <C> <C>
Leisure Time and Communications:
Bally Entertainment Corporation 54,000 $623,258.59 $756,000.00
Boyd Gaming Corporation 17,700 261,363.75 205,763.00
Carnival Corporation 7,600 166,358.38 185,250.00
Champion Enterprises Incorporated 3,000 90,735.00 92,625.00
Circus Circus Enterprises, Incorporated 11,600 335,525.38 323,350.00
Clear Channel Communications, Incorporated 24,000 905,245.00 1,059,000.00
General Instrument Corporation 20,100 530,823.66 469,838.00
International Game Technology 96,400 1,308,279.64 1,036,300.00
King World Productions Incorporated 85,000 3,203,432.32 3,304,375.00
Mirage Resorts Incorporated 4,700 151,062.24 162,150.00
Showboat, Incorporated 2,000 54,795.52 52,750.00
Tele Communications Incorporated 48,525 1,014,036.71 1,304,109.00
Tele Communications Incorporated 199,700 3,347,870.43 3,969,038.00
Time Warner 17,400 680,313.24 659,025.00
Turner Broadcasting System Incorporated 16,600 436,072.37 431,600.00
US West Incorporated 38,800 616,419.18 737,200.00
Walt Disney Company 54,800 3,004,672.11 3,226,350.00
------------- -------------
Total 16,730,263.52 17,974,723.00
------------- -------------
Machinery:
Deere & Company 18,000 632,160.00 634,500.00
Cabot Corporation 8,000 414,960.00 431,000.00
Esterline Technologies Corporation 16,000 444,250.13 380,000.00
Measurex Corporation 20,000 671,136.67 565,000.00
Softkey International Incorporated 1,000 40,022.41 23,125.00
------------- -------------
Total 2,202,529.21 2,033,625.00
------------- -------------
Merchandising:
Albertson's, Incorporated 9,000 282,710.00 295,875.00
Dayton-Hudson Corporation 800 59,660.65 60,000.00
Fruit of the Loom 26,700 566,632.02 647,475.00
Gap Incorporated 15,000 692,335.72 630,000.00
Home Depot Incorporated 9,400 395,897.94 448,850.00
J. C. Penney Company, Incorporated 16,600 784,084.90 790,575.00
Limited Incorporated 48,300 1,064,801.48 827,138.00
Melville Corporation 2,600 110,092.67 79,950.00
Ross Stores Incorporated 30,000 545,192.00 573,750.00
TJX COS Incorporated 29,600 567,002.90 558,700.00
Wal-Mart Stores, Incorporated 65,400 1,597,541.29 1,455,150.00
------------- -------------
Total 6,665,951.57 6,367,463.00
------------- -------------
</TABLE>
<PAGE> 24
SCHEDULE I
PAGE 9 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ------------- -------------
<S> <C> <C> <C>
Metals:
Allegheny Ludlum Corporation 84,000 $1,714,486.79 $1,554,000.00
Aluminum Company of America 1,700 86,941.13 89,888.00
ASARCO Incorporated 9,000 290,781.00 288,000.00
Newmont Mining Corporation 35,000 1,420,700.00 1,588,125.00
------------- -------------
Total 3,512,908.92 3,520,013.00
------------- -------------
Miscellaneous:
Barrick Gold Corporation 20,000 517,130.00 527,500.00
Cooper Industries, Incorporated 39,600 1,689,215.48 1,455,300.00
Credence Systems Corporation 10,000 238,173.00 228,750.00
Crown Cork & Seal Company, Incorporated 4,100 161,627.04 171,175.00
FGN ASTRA 19,200 377,863.73 767,750.00
Freeport McMoran C & G CL 2,600 71,656.00 73,125.00
Global Industrial Technologies Incorporated 30,000 475,414.77 566,250.00
Mercer International Incorporated 10,000 244,750.00 205,000.00
Nike Incorporated 10,000 535,432.60 696,250.00
V. F. Corporation 300 14,795.52 15,825.00
------------- -------------
Total 4,326,058.14 4,706,925.00
------------- -------------
Office Equipment:
Compaq Computer Corporation 69,300 3,218,309.84 3,326,400.00
Hewlett-Packard Company 97,100 5,823,744.10 8,132,125.00
International Business Machines Corporation 42,200 3,513,216.75 3,856,025.00
Logicon Incorporated 4,000 93,518.88 110,000.00
Quantum Corporation 36,400 683,726.48 586,950.00
Sun Microsystems Incorporated 7,400 180,307.39 337,625.00
------------- -------------
Total 13,512,823.44 16,349,125.00
------------- -------------
Pharmaceuticals:
ALZA Corporation 27,500 639,762.54 673,750.00
American Home Products Corporation 32,500 2,183,728.16 3,152,500.00
Bergen Brunswig Corporation 10,000 253,700.00 248,750.00
Bristol Myers Squibb Company 66,000 5,348,960.96 5,667,750.00
Eli Lilly, & Company 35,800 1,217,559.17 2,004,800.00
Forest Laboratories, Incorporated 17,200 740,690.78 778,300.00
Merck & Company Incorporated 69,200 4,022,839.02 4,541,250.00
Pfizer Incorporated 54,900 2,645,263.09 3,458,700.00
Schering-Plough Corporation 50,000 2,786,539.77 2,737,500.00
------------- -------------
Total 19,839,043.49 23,263,300.00
------------- -------------
</TABLE>
<PAGE> 25
SCHEDULE I
PAGE 10 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
---------- ------------ ------------
<S> <C> <C> <C>
Printing, Publishing and Paper:
Champion International Corp 19,000 $912,640.22 $798,000.00
Gartner Group Incorporated 10,000 426,650.00 478,750.00
Mead Corporation 8,200 438,226.20 428,450.00
International Paper Company 14,200 548,445.48 537,825.00
James River Corporation of Virginia 15,600 465,776.80 376,350.00
R. R. Donnelley & Sons Company 27,300 864,519.89 1,074,938.00
Willamette Industries Incorporated 30,000 1,881,729.00 1,687,500.00
------------ ------------
Total 5,537,987.59 5,381,813.00
------------ ------------
Railroads:
Burlington Northern Santa Fe Corporation 5,000 411,850.00 390,000.00
Union Pacific Corporation 25,600 1,426,559.40 1,689,600.00
------------ ------------
Total 1,838,409.40 2,079,600.00
------------ ------------
Rubber:
Cooper Tire & Rubber Company 23,500 557,235.73 578,688.00
Goodyear Tire & Rubber Company 4,500 171,177.24 204,188.00
------------ ------------
Total 728,412.97 782,876.00
------------ ------------
Service Industries:
Comair Holdings Incorporated 10,000 285,478.20 268,750.00
Cox Communications Incorporated 57,600 1,103,994.06 1,123,200.00
First Data Corporation 21,200 1,327,305.00 1,417,750.00
GTECH Holdings Corporation 10,000 257,450.00 260,000.00
Health Care & Retirement Corporation 12,900 345,450.50 451,500.00
IMC Global Incorporated 10,000 384,350.00 407,500.00
National Service Industries, Incorporated 5,300 141,957.28 171,588.00
Service Corporation International 25,900 655,673.17 1,139,600.00
Wheelabrator Technologies Incorporated 34,800 528,122.88 582,900.00
------------ ------------
Total 5,029,781.09 5,822,788.00
------------ ------------
Technology:
ADR Ericsson L.M. Telephone Company 60,830 1,297,521.92 1,186,185.00
ADR Nokia Corporation 96,500 4,643,725.31 3,763,500.00
Advanced Micro Devices, Incorporated 13,500 368,616.56 222,750.00
AMP Incorporated 5,500 225,484.69 210,375.00
Analog Devices, Incorporated 16,000 551,920.00 566,000.00
Applied Materials, Incorporated 159,700 7,259,347.93 6,288,188.00
Autodesk Incorporated 7,600 271,529.52 260,300.00
</TABLE>
<PAGE> 26
SCHEDULE I
PAGE 11 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ------------- -------------
<S> <C> <C> <C>
Technology cont'd:
Avnet, Incorporated 5,000 $ 257,600.00 $ 223,750.00
Cadence Design System, Incorporated 20,000 706,679.68 840,000.00
CISCO Systems Incorporated 47,400 2,089,423.30 3,537,225.00
Coherent, Incorporated 10,000 432,511.00 405,000.00
General Motors Corporation 55,400 2,369,598.82 2,880,800.00
Harris Corporation 18,000 1,032,231.00 983,250.00
Intel Corporation 187,800 10,121,600.65 10,657,650.00
Kulicke & Soffa Industries, Incorporated 10,000 241,964.00 232,500.00
Micron Technology, Incorporated 87,800 5,563,893.73 3,479,075.00
Microsoft Corporation 64,300 5,570,860.88 5,642,325.00
Motorola Incorporated 30,100 1,898,912.14 1,715,700.00
Novell Incorporated 52,800 964,847.77 752,400.00
Oracle Corporation 34,650 1,134,983.51 1,468,294.00
Read-Rite Corporation 27,200 721,596.68 632,400.00
Scientific-Atlanta, Incorporated 6,900 83,873.73 103,500.00
Seagate Technology 10,000 470,238.81 475,000.00
Three Com. Corporation 14,100 588,538.90 657,413.00
Vishay Intertechnology, Incorporated 2,000 72,559.84 63,000.00
Xilinx Incorporated 10,900 309,216.22 332,450.00
------------- -------------
Total 49,249,276.59 47,579,030.00
------------- -------------
Utilities:
Airtouch Communications Incorporated 195,200 5,403,500.50 5,490,000.00
AT & T Corporation 118,900 6,715,694.04 7,698,775.00
Bellsouth Corporation 40,000 1,699,800.00 1,740,000.00
Cincinnati Bell Incorporated 16,000 527,920.00 556,000.00
Columbia Gas System, Incorporated 69,000 2,705,720.50 3,027,375.00
Consolidated Edison Company of New York 50,000 1,562,250.00 1,587,500.00
Dominion Resources Incorporated 10,000 366,007.63 412,500.00
DQE Incorporated 70,000 1,954,125.00 2,152,500.00
Edison International 16,400 258,734.00 289,050.00
Entergy Corporation 27,500 691,294.16 804,375.00
F P L Group Incorporated 19,100 664,316.01 885,763.00
GTE Corporation 36,900 1,309,249.11 1,618,988.00
Houston Industries, Incorporated 2,800 55,117.15 67,900.00
Illinova Corporation 16,300 437,874.07 489,000.00
MCI Communications Corporation 60,500 1,381,287.31 1,580,563.00
Niagara Mohawk Power Corporation 38,400 461,481.01 364,800.00
NIPSCO Industries, Incorporated 16,000 608,420.00 612,000.00
Oneok Incorporated 20,000 419,228.36 457,500.00
P P & L Res Incorporated 600 13,833.66 15,000.00
Pacific Telesis Group 34,500 1,023,600.38 1,155,750.00
Pinnacle West Capital Corporation 32,900 904,803.80 945,875.00
</TABLE>
<PAGE> 27
SCHEDULE I
PAGE 12 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- -------------- --------------
<S> <C> <C> <C>
Utilities cont'd:
Potomac Electric Power Company 15,300 $ 344,747.54 $ 401,625.00
Public Service Company of New Mexico 10,000 147,700.00 176,250.00
Sprint Corporation 46,900 1,791,550.69 1,858,413.00
Unicom Corporation 20,000 651,440.22 655,000.00
US West Communications Group 122,400 3,930,672.99 4,360,500.00
--------------- ---------------
Total 36,030,368.13 39,403,002.00
--------------- ---------------
Total Common Stocks 339,669,494.68 383,772,178.00
--------------- ---------------
TEMPORARY INVESTMENTS:
WMX Technologies Incorporated 274,100 398,253.52 239,838.00
Delayed Cycle Pricing Asset 2 0.00 2.00
Tandon Computer Purchase Coupon 5,248 0.00 1.00
Coltv Short Term Investment Fund 5,929,715 3,230,050.73 3,230,031.00
--------------- ---------------
Total Temporary Investments 3,628,304.25 3,469,872.00
--------------- ---------------
PREFERRED STOCK:
Terra Nitrogen Company L. P. 10,000 341,812.00 375,000.00
--------------- ---------------
INCOME RECEIVABLE 575,498.12 575,498.00
--------------- ---------------
TOTAL DIVERSIFIED PORTFOLIO FUND $344,215,109.05 $388,192,548.00
=============== ===============
PROPORTIONATE INTEREST $287,790,375.00 $320,488,543.00
=============== ===============
</TABLE>
<PAGE> 28
SCHEDULE I
PAGE 13 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
FIXED INCOME FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTEREST RATE
AS OF
DECEMBER 31, MATURITY CURRENT
1995 DATE COST VALUE
------------- --------- ------------ ------------
<S> <C> <C> <C> <C>
GUARANTEED INVESTMENT CONTRACTS:
Aetna Life and Casualty Company 10.00% 1/03/00 $ 84,281,763 $ 93,288,000
The Prudential Insurance Company of America 9.92% 5/01/98 83,091,023 89,857,000
The Prudential Insurance Company of America 10.25% 7/05/00 55,597,953 61,762,000
The Prudential Insurance Company of America 9.65% 8/31/00 41,250,835 47,077,000
The Prudential Insurance Company of America 9.80% 8/31/00 61,904,532 71,001,000
The Travelers Insurance Company 8.15% 2/01/97 2,331,076 3,312,000
The Travelers Insurance Company 9.26% 2/01/97 2,462,723 2,335,000
The Travelers Insurance Company 9.65% 2/01/96 1,308,729 1,313,000
Aetna Life and Casualty Company 7.10% Open 276,176,086 293,700,000
Metropolitan Life Insurance Company 7.42% Open 298,682,113 322,500,000
Metropolitan Life Insurance Company 7.10% Open 300,101,111 302,300,000
The Prudential Insurance Company of America 7.03% Open 302,420,352 318,600,000
-------------- --------------
Total Guaranteed Investment Contracts 1,509,608,296 1,607,045,000
-------------- --------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund 2,601,727 2,601,727
-------------- --------------
INCOME RECEIVABLE 7,096 7,096
-------------- --------------
TOTAL FIXED INCOME FUND $1,512,217,119 $1,609,653,823
-------------- --------------
PROPORTIONATE INTEREST $1,267,924,294 $1,348,372,519
============== ==============
</TABLE>
<PAGE> 29
SCHEDULE I
PAGE 14 OF 14
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
SPECIAL DISTRIBUTION FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF SHARES OR CURRENT
PRINCIPAL AMOUNT COST VALUE
------------------- ----------- -----------
<S> <C> <C> <C>
SPECIAL DISTRIBUTION FUND:
The Northern Trust Company
Collective Short-Term
Investment Fund 31,673,201 $31,673,201 $31,673,201
Income Receivable 152,631 152,631
----------- -----------
TOTAL SPECIAL DISTRIBUTION FUND $31,825,832 $31,825,832
=========== ===========
PROPORTIONATE INTEREST $22,609,047 $22,609,047
=========== ===========
</TABLE>
<PAGE> 30
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT TO APPLICATION ON REPORT FILED
PURSUANT TO SECTION 12, 13, OR 15(b) 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 1995 Annual Report on Form 10-K as
set forth in the pages attributed 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 Employee 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/ P.A. HESSE
P.A. Hesse
Secretary
June 26, 1996
- 1 -
<PAGE> 31
ADDITIONAL EXHIBIT 99(a) TO
ANNUAL REPORT ON FORM 10-K
OF GENERAL DYNAMICS CORPORATION
SEC FILE NO. 1-3671
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 13(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
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> 32
GENERAL DYNAMICS CORPORATION
INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
Pages of this
Form 11-K
-------------
<S> <C>
(a) FINANCIAL STATEMENTS
Report of Independent Public Accountants 5-6
Statements of Net Assets Available for Benefits,
December 31, 1995 and 1994 7-8
Statement of Changes in Net Assets Available for Benefits
- Fiscal Years Ended December 31, 1995 9
Notes to Financial Statements 10-14
Schedule I - Combined Statement in Investments
of Master Trust Funds 15-29
(b) SIGNATURE 4
(c) EXHIBITS
Consent of Independent Public Accountants 4
</TABLE>
- 3 -
<PAGE> 33
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/ P.A. HESSE
--------------
P.A. Hesse
Secretary
June 26, 1996
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 26, 1996
- 4 -
<PAGE> 34
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, 1995 and 1994, and the related statement of
changes in net assets available for benefits for the year ended December 31,
1995. 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 and schedule 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, 1995 and 1994, and the changes in its net assets available for
benefits for the year ended December 31, 1995, in conformity with generally
accepted accounting principles.
Our audit was made 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 statement 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 Fund Information in the statements of net assets
available for benefits and the statements of changes in net assets available
for benefits is presented for purposes of additional analysis rather than to
present the net assets available for benefits and changes in net assets
available for benefits of each fund. The supplemental schedule
- 5 -
<PAGE> 35
Page 2
and Fund Information have been subjected to the auditing procedures applied in
the audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
Washington, D.C.,
June 26, 1996
- 6 -
<PAGE> 36
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995
<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 - 797,904 shares (Cost
$24,115,605)-
Participant-directed $ 39,138,221 $39,138,221 $ - $ -
Non-participant-directed 8,037,891 8,037,891 - -
Investments in securities of unaffiliated issuers, at
market value-
U.S. Government bonds (Cost $77,327,729) 78,803,590 - 78,803,590 -
Other securities (Cost $65,641,519) 76,920,790 - - 67,704,005
Guaranteed investment contracts, at fair value
(Cost $244,292,825) 261,281,304 - - -
Loans receivable (payable) 1,612,018 (2,454) 832 1,508
Amounts receivable (payable) from General Dynamics
Corporation (35,084) 7,187 (13,302) (3,791)
------------ ----------- ----------- -----------
Total Assets $465,758,730 $47,180,845 $78,791,120 $67,701,722
============ =========== =========== ===========
LIABILITIES:
Fund transfers $ - $ 434,721 $ 360,682 $ (38,289)
Administrative fees payable 99,061 8,707 17,782 24,843
Loans payable (receivable) - 9,602 26,735 23,794
------------ ----------- ----------- -----------
Total Liabilities 99,061 453,030 405,199 10,348
------------ ----------- ----------- -----------
Net Assets Available for Benefits $465,659,669 $46,727,815 $78,385,921 $67,691,374
============ =========== =========== ===========
</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 - 797,904 shares (Cost
$24,115,605)-
Participant-directed $ - $ - $ -
Non-participant-directed - - -
Investments in securities of unaffiliated issuers, at
market value-
U.S. Government bonds (Cost $77,327,729) - - -
Other securities (Cost $65,641,519) - 9,216,785 -
Guaranteed investment contracts, at fair value
(Cost $244,292,825) 261,281,304 - -
Loans receivable (payable) 4,797 - 1,607,335
Amounts receivable (payable) from General Dynamics
Corporation (25,178) - -
------------ ---------- ----------
Total Assets $261,260,923 $9,216,785 $1,607,335
============ ========== ==========
LIABILITIES:
Fund transfers $ (832,738) $ 75,624 $ -
Administrative fees payable 45,817 1,912 -
Loans payable (receivable) 32,237 7,832 (100,200)
------------ ---------- ----------
Total Liabilities (754,684) 85,368 (100,200)
------------ ---------- ----------
Net Assets Available for Benefits $262,015,607 $9,131,417 $1,707,535
============ ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 7 -
<PAGE> 37
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
TOTAL STOCK BONDS PORTFOLIO
------------- ------------- --------------- --------------
<S> <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
Guaranteed investment contracts, at contract value 242,189,530 - - -
Loans receivable (payable) 1,999,715 413 (593) (26)
Amounts receivable from General Dynamics Corporation 180,711 80,469 24,859 6,485
------------ ----------- ----------- -----------
Total Assets $434,187,939 $36,127,359 $87,507,545 $55,710,944
============ =========== =========== ===========
LIABILITIES:
Fund transfers $ - $ 194,619 $ 1,341,070 $ 647,545
Administrative fees payable 204,414 12,288 38,642 66,207
Loans payable (receivable) - 2,240 16,897 25,112
------------ ----------- ----------- -----------
Total Liabilities 204,414 209,147 1,396,609 738,864
------------ ----------- ----------- -----------
Net Assets Available for Benefits $433,983,525 $35,918,212 $86,110,936 $54,972,080
============ =========== =========== ===========
</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 - 828,654 shares (Cost
$23,060,674)
Participant-directed $ - $ - $ -
Non-participant-directed - - -
Investments in securities of unaffiliated issuers, at
market value-
U.S. Government bonds (Cost $87,173,680) - - -
Other securities (Cost $62,253,018) - 10,583,742 -
Guaranteed investment contracts, at contract value 242,189,530 - -
Loans receivable (payable) 6,892 - 1,993,029
Amounts receivable from General Dynamics Corporation 68,898 - -
------------ ----------- ----------
Total Assets $242,265,320 $10,583,742 $1,993,029
============ =========== ==========
LIABILITIES:
Fund transfers $ (2,264,320) $ 81,086 $ -
Administrative fees payable 83,610 3,667 -
Loans payable (receivable) 49,913 6,138 (100,300)
------------ ----------- ----------
Total Liabilities (2,130,797) 90,891 (100,300)
------------ ----------- ----------
Net Assets Available for Benefits $244,396,117 $10,492,851 $2,093,329
============ =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 8 -
<PAGE> 38
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, 1995
<TABLE>
<CAPTION>
FUNDS
----------------------------------------------
COMPANY STOCK
----------------------------
NON-
PARTICIPANT- PARTICIPANT- GOVERNMENT
TOTAL DIRECTED DIRECTED BONDS
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,402,318 $ 1,015,877 $ 182,894 $ -
Interest 25,020,135 9,038 1,627 5,160,806
------------ ----------- ---------- -----------
27,422,453 1,024,915 184,521 5,160,806
ADD (DEDUCT)-
NET REALIZED GAIN ON ASSETS SOLD OR DISTRIBUTED 16,884,933 2,088,741 376,046 2,197,898
NET UNREALIZED APPRECIATION OF ASSETS 34,515,126 8,537,631 1,537,073 1,166,263
ROLLOVER CONTRIBUTIONS 23,666 - - -
DEPOSITS BY PARTICIPANTS 14,672,387 1,802,900 - 2,282,813
CONTRIBUTIONS BY GENERAL DYNAMICS CORPORATION 7,042,101 492,025 1,327,265 945,056
LOAN REPAYMENTS 100,536 310,599 - 119,137
LOANS ISSUED - (22,142) - (154,435)
TRANSFER BETWEEN INVESTMENT FUNDS - (786,130) - (2,864,552)
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (68,007,790) (5,160,480) (834,049) (16,433,612)
PLAN EXPENSES (977,268) (69,312) - (144,389)
------------ ----------- ---------- -----------
Net increase (decrease) 31,676,144 8,218,747 2,590,856 (7,725,015)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 433,983,525 30,874,121 5,044,091 86,110,936
------------ ----------- ---------- -----------
End of year $465,659,669 $39,092,868 $7,634,947 $78,385,921
============ =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
FUNDS
--------------------------------------------------------------------
DIVERSIFIED FIXED SPECIAL
PORTFOLIO INCOME DISTRIBUTION LOAN
------------ ------------ -------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,203,547 $ - $ - $ -
Interest 47,452 19,225,652 575,560 -
----------- ------------ ----------- ----------
1,250,999 19,225,652 575,560 -
ADD (DEDUCT)-
NET REALIZED GAIN ON ASSETS SOLD OR DISTRIBUTED 12,089,100 133,148 - -
NET UNREALIZED APPRECIATION OF ASSETS 7,291,587 15,982,572 - -
ROLLOVER CONTRIBUTIONS 1,157 114,742 (92,233) -
DEPOSITS BY PARTICIPANTS 2,357,914 8,228,760 - -
CONTRIBUTIONS BY GENERAL DYNAMICS CORPORATION 929,147 3,349,283 (675) -
LOAN REPAYMENTS 135,828 351,373 - (816,401)
LOANS ISSUED (229,791) (373,371) (41,061) 820,800
TRANSFER BETWEEN INVESTMENT FUNDS (899,411) 4,762,088 (211,995) -
DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (9,870,660) (33,744,750) (1,574,046) (390,193)
PLAN EXPENSES (336,576) (410,007) (16,984) -
----------- ------------ ----------- ----------
Net increase (decrease) 12,719,294 17,619,490 (1,361,434) (385,794)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 54,972,080 244,396,117 10,492,851 2,093,329
----------- ------------ ----------- ----------
End of year $67,691,374 $262,015,607 $ 9,131,417 $1,707,535
=========== ============ =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 9 -
<PAGE> 39
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1995 AND 1994
1. The General Dynamics Corporation Hourly Employees Savings and Stock
Investment Plan (the "Plan") is a contributory defined contribution plan
covering eligible hourly employees of General Dynamics Corporation (the
"Company") that have completed one year of continuous service. The
following is a brief description of the Plan provided for general
information purposes. Participants should refer to the Plan agreement for
more complete information.
A member may contribute from 2% to 10% of base earnings up to $12.01 per
hour and 2% - 6% of base earnings in excess of $12.01 per hour up to $16.01
per hour. Maximum contributions for represented employees are determined
by the applicable collective bargaining agreements. In addition , members
at some locations may contribute another 1% - 4% of base earnings up to
$16.01 per hour on an unmatched basis.
Each member shall direct his contributions to be invested in accordance
with any one of the following options:
1) 33-1/3% Government Bonds Fund, 33-1/3% Diversified Portfolio Fund and
33-1/3% Company Stock Fund,
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 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 five years.
- 10 -
<PAGE> 40
Certain plan members not covered by collective bargaining agreements are
allowed to select investment Option 8, under which 100% of their contributions
to the Plan are invested in Company common stock. Participants selecting
Option 8 receive a higher Company matching contribution of 100%. The
nonrepresented plan members who do not elect Option 8, receive a 50% Company
matching contribution in Company common stock. Contributions invested in the
Company Stock Fund must be held in that fund for five years before becoming
eligible for withdrawal or transfer to any other fund.
Also, with respect to participants who are eligible for selection of investment
Option 8, another series of plan provisions has been added:
Investment fund transfer rules were expanded on April 1, 1991, 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.
All Company matching contributions to the Plan after January 1, 1992 for
non-union 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.
- 11 -
<PAGE> 41
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.
2. According to the Plan Document, the five plan funds may hold the
following types of investments:
a) Government Bonds Fund - includes only direct obligations of the
United States Government and its agencies or obligations
guaranteed as to the payment of interest and principal by the
United States Government and may also include other investments of
a short-term nature as provided in the trust agreement.
b) Diversified Portfolio Fund - includes only common or capital
stocks of issuers other than the Company, bonds or debentures or
preferred stocks convertible into common or capital stocks of
issuers other than the Company, and other similar types of equity
investments, and may also include other investments of a
short-term nature as provided in the trust agreement.
c) Company Stock Fund - includes only common stock of the Company.
d) Fixed Income Fund - includes investments in fixed income and other
investment contracts with insurance companies designated by the
Company and may also include other investments of a short-term
nature as provided in the trust agreement.
e) Special Distribution Fund - includes obligations issued or fully
guaranteed as to payment of principal and interest by the United
States of America or its agencies, high quality commercial paper,
certificates of deposit, short-term investment vehicles or any
high quality securities selected by the Company or any investment
manager of the fund.
3. The accompanying financial statements are prepared on the accrual
basis of accounting.
4. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
5. 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
- 12 -
<PAGE> 42
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.
6. In the event the Plan is terminated, each member will automatically be
vested in the undistributed Company contributions. Each member will
receive payments based on the specific dollar amounts and shares of
Company stock in his account.
7. The Plan is administered by the Company. Certain administrative
functions are performed by employees of the Company. The assets of
the Plan are combined in a Master Trust Fund for investment
purposes 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 Fund.
Investment income, net realized gains or losses and unrealized
appreciation or depreciation are allocated to the respective plans
based on their proportionate interest, at market value, in the Master
Trust Fund. All costs and expenses are primarily paid by the Plan.
Although no costs were paid by the Company in 1995, the Plan document
provides that these costs may be paid by the Company.
8. On the Statement of Changes in Net Assets Available for Benefits, net
realized gain on assets sold or distributed and unrealized
appreciation 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 appreciation 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.
<TABLE>
<CAPTION>
GENERAL
ACCEPTED DEPARTMENT
ACCOUNTING OF LABOR'S
PRINCIPLES REGULATIONS
------------ -------------
<S> <C> <C>
Net realized gain on assets sold or distributed $16,884,933 $24,616,004
Net unrealized appreciation of assets 34,515,126 26,784,055
------------ ------------
$51,400,059 $51,400,059
============ ============
</TABLE>
9. 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, 1995
and 1994, amounts payable on withdrawals and distributions were
$14,257,541 and $8,077,916, respectively. In addition, on the
Statement of Changes in Net Assets Available for Benefits, 1995
distributions to withdrawn participants would have been $74,187,415
instead of $68,007,790 if the December 31 amounts payable on
withdrawals and distributions had been included.
- 13 -
<PAGE> 43
10. In March 1993, the Company closed the sale of its Tactical Military
Aircraft Business to the Lockheed Corporation. During October 1995,
General Dynamics Hourly Employees Savings and Stock Investment Plan
assets were disbursed to ex-participants of the Plan.
During 1994, the Company completed the sale of its Space Launch
Systems business to Martin Marietta Corporation.
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.
11. The American Institute of Certified Public Accountants issued
Statement of Position No. 94-4, "Reporting of Investment Contracts
Held by Health and Welfare Benefit Plans and Defined Contribution
Pension Plans."
The statement 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. Previously, the Plan accounted for these
investments at contract value. The effect of the adoption at January
1, 1995 based on discounting the future cash flows, was an increase in
fair value of approximately $6.7 million, which is recorded in
unrealized appreciation of assets in the Fixed Income Fund.
Additional unrealized gains recognized during 1995 were approximately
$16 million.
- 14 -
<PAGE> 44
SCHEDULE I
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
COMBINED STATEMENT OF INVESTMENTS IN
MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<PAGE> 45
SCHEDULE I
PAGE 1 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
COMPANY STOCK FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF CURRENT
SHARES COST VALUE
------------ ------------ ------------
<S> <C> <C> <C>
COMPANY STOCK FUND:
Investment in common stock of
General Dynamics Corporation 6,252,079 $164,558,710 $369,654,197
============ ============ ============
Proportionate Interest 797,904 $ 24,115,605 $ 47,176,112
============ ============ ============
LOANS RECEIVABLE N/A $ 20,993,270 $ 20,993,270
============ ============
Proportionate Interest N/A $ 1,612,018 $ 1,612,018
============ ============
</TABLE>
<PAGE> 46
SCHEDULE I
PAGE 2 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
GOVERNMENT BONDS FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
----------- ----------- -------------
<S> <C> <C> <C>
GOVERNMENT BONDS FUND:
U.S. Treasury Notes
U.S. Treasury Notes 7.25% due November 30, 1996 15,000,000 $ 15,197,266 $ 15,255,450
U.S. Treasury Notes 6.50% due November 30, 1996 15,000,000 15,157,031 15,159,300
U.S. Treasury Notes 7.50% due December 31, 1996 15,000,000 15,328,125 15,328,050
U.S. Treasury Notes 8.00% due January 15, 1997 15,000,000 15,418,359 15,410,100
U.S. Treasury Notes 4.75% due February 15, 1997 14,100,000 13,992,047 14,016,246
U.S. Treasury Notes 6.875% due February 28, 1997 15,300,000 15,451,437 15,582,132
U.S. Treasury Notes 6.75% due February 28, 1997 15,000,000 15,143,945 15,255,450
U.S. Treasury Notes 4.75% due August 31, 1998 15,000,000 14,744,531 14,824,200
U.S. Treasury Notes 4.75% due September 30, 1998 15,000,000 14,737,500 14,812,500
U.S. Treasury Notes 7.125% due October 15, 1998 4,600,000 4,807,000 4,821,351
U.S. Treasury Notes 4.75% due October 31, 1998 15,000,000 14,723,437 14,805,450
U.S. Treasury Notes 5.50% due November 15, 1998 15,000,000 15,032,813 15,110,100
U.S. Treasury Notes 8.875% due November 15, 1998 15,000,000 16,382,813 16,422,600
------------ ------------
Total U.S. Treasury Notes 186,116,304 186,802,929
------------ ------------
Temporary Investments
The Northern Trust Company
Collective Short-Term Investment Fund 272,647 272,647 272,647
------------ ------------
Income Receivable 3,125,522 3,125,522
------------ ------------
TOTAL GOVERNMENT BONDS FUND $189,514,473 $190,201,098
============ ============
PROPORTIONATE INTEREST $ 77,327,729 $ 78,803,590
============ ============
</TABLE>
<PAGE> 47
SCHEDULE I
PAGE 3 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
----------- --------------- -----------------
<S> <C> <C> <C>
COMMON STOCKS:
Aerospace:
Allied Signal Incorporated 39,800 $ 1,120,881.35 $ 1,890,500.00
American West Airlines 10,000 178,700.00 170,000.00
Boeing Company 17,400 1,158,386.94 1,363,725.00
Coltec Inds Incorporated 11,600 210,878.08 134,850.00
Lockheed Martin Corporation 4,300 229,353.87 339,700.00
Loral Corporation 2,200 43,042.58 77,825.00
McDonnell Douglas Corporation 23,800 1,735,901.02 2,189,600.00
Raytheon Company 12,600 352,604.71 595,350.00
United Technologies Corporation 20,000 1,678,098.40 1,897,500.00
Watkins-Johnson Company 10,000 457,450.00 437,500.00
---------------- ----------------
Total 7,165,296.95 9,096,550.00
---------------- ----------------
Airlines:
American President Company Ltd. 14,000 413,998.20 322,000.00
ADR British Airways PLC 30,300 1,858,454.49 2,204,325.00
KLM Royal Dutch Airlines 61,239 1,955,736.11 2,158,675.00
Northwest Airlines Corporation 78,300 2,539,636.10 3,993,300.00
UAL Corporation 44,450 6,193,458.38 7,934,325.00
---------------- ----------------
Total 12,961,283.28 16,612,625.00
---------------- ----------------
Automotive:
Ford Motor Company 42,100 1,096,773.84 1,215,638.00
General Motors Corporation 9,000 319,957.46 475,875.00
General Motors Corporation 11,400 496,386.32 560,025.00
Modine Manufacturing Company 22,700 619,571.17 544,800.00
Snap-On Incorporated 10,000 441,200.00 452,500.00
---------------- ----------------
Total 2,973,888.79 3,248,838.00
---------------- ----------------
Building:
Johnson Controls, Incorporated 4,800 312,087.23 330,000.00
Lennar Corporation 50,000 1,175,490.00 1,256,250.00
Toll Brothers Incorporated 10,000 221,200.00 230,000.00
U S Home Corporation 10,000 258,750.00 291,250.00
USG Corporation 3,900 116,765.32 117,000.00
Vulcan Materials Company 4,000 228,900.88 230,500.00
---------------- ----------------
Total 2,313,193.43 2,455,000.00
---------------- ----------------
</TABLE>
<PAGE> 48
SCHEDULE I
PAGE 4 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
---------- ---------------- ---------------
<S> <C> <C> <C>
Chemcials:
Albemarle Corporation 23,300 $ 402,998.87 $ 451,438.00
Dow Chemical 32,200 2,252,524.19 2,262,050.00
DuPont, (E.I.) DeNemours & Company 33,100 1,832,873.53 2,312,863.00
Eastman Chemical Company 30,000 1,675,197.00 1,871,250.00
First Mississippi Corporation 10,000 251,200.00 265,000.00
Monsanto Company 2,000 246,740.00 245,000.00
Pulte Corporation 10,000 322,450.00 336,250.00
Raychem Corporation 10,000 537,354.70 568,750.00
Sealed Air Corporation 2,000 51,540.00 56,000.00
Sterling Chemicals 10,000 87,450.00 81,250.00
Tyco International Ltd. 12,000 373,721.19 427,500.00
Union Carbide 104,300 3,648,829.09 3,911,250.00
Wellman Incorporated 7,300 190,301.25 166,075.00
-------------- ---------------
Total 11,873,179.82 12,954,676.00
-------------- ---------------
Consumer Goods:
Anheuser-Busch Companies Incorporated 9,600 548,069.70 642,000.00
Applebees International Incorporated 10,000 245,350.00 227,500.00
Black & Decker Corporation 8,000 234,240.82 282,000.00
Buffets, Incorporated 20,000 284,206.00 275,000.00
Coca Cola Company 16,700 719,851.93 1,239,975.00
Coca Cola Enterprises, Incorporated 20,000 488,800.00 537,500.00
Colgate-Palmolive Company 7,600 525,573.31 533,900.00
CPC International Incorporated 13,200 702,314.17 905,850.00
Gillette Company 21,900 919,839.74 1,141,538.00
H.J. Heinz Company 20,000 662,400.00 662,500.00
International Flavors & Fragrances Incorporated 100 4,848.14 4,800.00
McDonalds Corporation 81,900 2,820,282.52 3,695,738.00
Mississippi Chemical Corporation 10,000 225,574.00 232,500.00
Mueller Industry Incorporated 20,000 506,793.34 585,000.00
Nabisco Holdings Corporation 4,700 131,882.00 153,338.00
PEPSICO, Incorporated 57,700 2,351,275.13 3,223,988.00
Philip Morries Companies Incorporated 145,100 8,583,719.93 13,095,275.00
Procter & Gamble Company 26,500 1,514,387.22 2,199,500.00
Ralston-Ralston Purina Group 23,200 1,444,846.40 1,447,100.00
Terra Industries Incorporated 20,000 271,528.00 282,500.00
-------------- ---------------
Total 23,185,782.35 31,367,502.00
-------------- ---------------
</TABLE>
<PAGE> 49
SCHEDULE I
PAGE 5 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ---------------- ----------------
<S> <C> <C> <C>
Electronics:
BMC Industries Incorporated 70,000 $ 1,134,814.73 $ 1,627,500.00
FMC Corporation 14,000 1,040,740.00 946,750.00
General Electric Company 21,500 1,008,438.00 1,548,000.00
International Rectifier Corporation 40,000 969,900.00 1,000,000.00
TSL Holdings Incorporated 330 0.00 0.00
W.W. Grainger, Incorporated 6,100 350,905.36 404,125.00
---------------- ----------------
Total 4,504,798.09 5,526,375.00
---------------- ----------------
Energy:
Anadarko Petroleum Corporation 12,200 526,976.37 660,325.00
Ashland Incorporated 12,200 418,029.63 428,525.00
Chevron Corporation 33,900 1,677,893.67 1,775,513.00
Cooper Cameron Corporation 13,900 263,788.15 493,450.00
Enron Corporation 24,400 763,638.38 930,250.00
Exxon Corporation 49,500 3,207,536.95 3,984,750.00
Mobil Corporation 11,000 1,229,195.00 1,229,250.00
Occidental Petroleum Corporation 2,600 57,513.66 55,575.00
Oryx Energy Company 21,500 295,191.45 287,563.00
Reading & Bates Corporation 100,000 1,248,478.00 1,500,000.00
Royal Dutch Peroleum Company 23,800 2,596,866.89 3,358,775.00
Sun Company, Incorporated 13,500 364,354.76 369,563.00
Texaco Incorporated 26,300 1,653,050.48 2,064,550.00
Ultramar Corporation 2,900 70,434.18 74,675.00
Western Res Incorporated 3,200 100,592.00 106,800.00
---------------- ----------------
Total 14,473,539.57 17,319,564.00
---------------- ----------------
</TABLE>
<PAGE> 50
SCHEDULE I
PAGE 6 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ---------------- ----------------
<S> <C> <C> <C>
Financial Services & Insurance:
A. G. Edwards Incorporated 80,000 $ 2,069,335.00 $ 1,910,000.00
Aetna Life & Casualty Company 8,900 629,949.72 616,325.00
Allmerica Property & Casualty Companies, Incorporated 10,000 253,700.00 270,000.00
Allstate Corporation 60,000 1,848,118.94 2,467,500.00
AMBAC, Incorporated 26,800 1,051,541.78 1,256,250.00
American Bankers Insurance Group, Incorporated 8,000 291,530.00 312,000.00
American Express Company 2,000 78,790.00 82,750.00
American International Group, Incorporated 27,850 1,994,319.34 2,576,125.00
Banc One Corporation 3,200 112,944.54 120,400.00
BankAmerica Corporation 32,000 1,705,608.19 2,072,000.00
Case Corporation 40,000 1,614,800.00 1,830,000.00
Charter One Financial Incorporated 900 27,862.91 27,563.00
Chemical Banking Corporation 4,000 223,955.00 235,000.00
Citicorp 20,000 1,194,684.34 1,345,000.00
Crown Northcrop Incorporated 849 0.00 314.00
Dean Witter Discover & Company 19,500 848,635.74 916,500.00
Federal Bancorporation, Incorporated 90,000 1,255,570.39 1,417,500.00
Federal National Mortgage Association 27,100 2,296,259.12 3,357,013.00
FHLMC 43,500 2,482,323.90 3,632,250.00
First American Corporation 10,000 441,450.00 473,750.00
First Bank System, Incorporated 6,700 217,436.75 332,488.00
First Chicago NBD Corporation 37,173 1,457,890.98 1,468,334.00
First Interstate BanCorporation 9,500 1,267,245.00 1,296,750.00
First of America Bank Corporation 50,000 2,236,822.20 2,218,750.00
First Union Corporation 20,200 895,269.36 1,123,625.00
First Union Corporation 7,900 465,776.10 595,463.00
First USA Incorporated 7,900 358,542.37 350,563.00
Firstar Corporation 700 25,925.20 27,738.00
Fleet Financial Group Incorporated 1,263 42,868.33 51,467.00
Fremont General Corporation 10,000 344,950.00 367,500.00
General Re Corporation 15,900 2,132,629.83 2,464,500.00
Greentree Financial Corporation 17,300 435,160.50 456,288.00
H. F. Ahmanson & Company 2,400 51,621.71 63,600.00
Huntington Bancshares Incorporated 24,000 599,412.00 576,000.00
Integra Financial Corporation 2,000 120,062.30 126,250.00
ITT Corporation 61,800 2,905,968.02 3,275,400.00
ITT Hartford Group Incorporated 57,600 2,661,374.96 2,786,400.00
ITT Industries Incorporated 66,100 1,410,604.98 1,586,400.00
Jefferson-Pilot Corporation 39,000 1,749,387.00 1,813,500.00
</TABLE>
<PAGE> 51
SCHEDULE I
PAGE 7 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ---------------- ----------------
<S> <C> <C> <C>
Financial Services & Insurance cont'd:
Lehman Brothers Holdings Incorporated 4,000 $ 90,438.46 $ 85,000.00
Lowes Corporation 40,000 2,740,482.21 3,135,000.00
MBIA Incorporated 800 48,848.00 60,000.00
MBNA Corporation 67,200 1,694,199.35 2,478,000.00
Meridan BanCorporation Incorporated 13,900 632,620.13 646,350.00
Merrill Lynch & Company, Incorporated 125,100 6,765,048.06 6,380,100.00
Morgan Stanley Group Incorporated 34,200 2,924,875.97 2,757,375.00
Nationsbank Corporation 48,300 2,476,679.43 3,362,888.00
Northern Trust Corporation 10,000 480,250.00 560,000.00
Norwest Corporation 175,200 3,911,466.95 5,781,600.00
Old Republic International Corporation 52,000 1,712,790.00 1,846,000.00
Providian Corporation 21,700 752,010.26 884,275.00
Student Loan Marketing Association 29,000 1,817,595.30 1,914,000.00
T. R. Financial Corporation 10,000 264,119.00 255,000.00
Travelers Group Incorporated 88,600 5,025,146.25 5,548,575.00
US Life Corporation 12,200 343,736.87 364,475.00
Washington Federal Incorporated 17,700 412,790.91 453,563.00
Washington Mutual, Incorporated 11,100 304,086.93 320,513.00
Wells Fargo & Company 26,000 5,554,209.30 5,616,000.00
Wilmington Trust Corporation 9,000 247,776.93 277,875.00
---------------- ----------------
Total 77,999,496.81 88,625,845.00
---------------- ----------------
Health Care:
Amgen Incorporated 41,000 1,816,628.24 2,440,313.00
Apria Healthcare Group 18,100 465,207.06 511,325.00
Bausch & Lomb Incorporated 6,000 245,446.62 237,750.00
Baxter International Incorporation 700 20,523.14 29,313.00
Becton Dickinson and Company 40,000 2,724,754.78 3,000,000.00
Columbia/HCA Healthcare Corporation 82,700 3,393,178.49 4,197,025.00
Health Management Associates Incorporated 10,650 177,235.57 278,231.00
Healthsouth Corporation 10,000 288,700.00 291,250.00
Invacare Corporation 10,000 211,467.50 252,500.00
Johnson & Johnson 6,000 436,284.04 513,000.00
Manor Care, Incorporated 16,800 469,862.87 588,000.00
Medtronic, Incorporated 94,000 4,370,463.74 5,252,250.00
Rhone Poulenc Rorer 3,000 156,735.00 159,750.00
United Health Care Corporation 41,200 1,472,873.05 2,693,450.00
Vivra Incorporated 34,100 765,861.43 856,763.00
---------------- ----------------
Total 17,015,221.53 21,300,920.00
---------------- ----------------
</TABLE>
<PAGE> 52
SCHEDULE I
PAGE 8 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- ---------------- ----------------
<S> <C> <C> <C>
Leisure Time and Communications:
Bally Entertainment Corporation 54,000 $ 623,258.59 $ 756,000.00
Boyd Gaming Corporation 17,700 261,363.75 205,763.00
Carnival Corporation 7,600 166,358.38 185,250.00
Champion Enterprises Incorporated 3,000 90,735.00 92,625.00
Circus Circus Enterprises, Incorporated 11,600 335,525.38 323,350.00
Clear Channel Communications, Incorporated 24,000 905,245.00 1,059,000.00
General Instrument Corporation 20,100 530,823.66 469,838.00
International Game Technology 96,400 1,308,279.64 1,036,300.00
King World Productions Incorporated 85,000 3,203,432.32 3,304,375.00
Mirage Resorts Incorporated 4,700 151,062.24 162,150.00
Showboat, Incorporated 2,000 54,795.52 52,750.00
Tele Communications Incorporated 48,525 1,014,036.71 1,304,109.00
Tele Communications Incorporated 199,700 3,347,870.43 3,969,038.00
Time Warner 17,400 680,313.24 659,025.00
Turner Broadcasting System Incorporated 16,600 436,072.37 431,600.00
US West Incorporated 38,800 616,419.18 737,200.00
Walt Disney Company 54,800 3,004,672.11 3,226,350.00
--------------- ---------------
Total 16,730,263.52 17,974,723.00
--------------- ---------------
Machinery:
Deere & Company 18,000 632,160.00 634,500.00
Cabot Corporation 8,000 414,960.00 431,000.00
Esterline Technologies Corporation 16,000 444,250.13 380,000.00
Measurex Corporation 20,000 671,136.67 565,000.00
Softkey International Incorporated 1,000 40,022.41 23,125.00
--------------- ---------------
Total 2,202,529.21 2,033,625.00
--------------- ---------------
Merchandising:
Albertson's, Incorporated 9,000 282,710.00 295,875.00
Dayton-Hudson Corporation 800 59,660.65 60,000.00
Fruit of the Loom 26,700 566,632.02 647,475.00
Gap Incorporated 15,000 692,335.72 630,000.00
Home Depot Incorporated 9,400 395,897.94 448,850.00
J. C. Penney Company, Incorporated 16,600 784,084.90 790,575.00
Limited Incorporated 48,300 1,064,801.48 827,138.00
Melville Corporation 2,600 110,092.67 79,950.00
Ross Stores Incorporated 30,000 545,192.00 573,750.00
TJX COS Incorporated 29,600 567,002.90 558,700.00
Wal-Mart Stores, Incorporated 65,400 1,597,541.29 1,455,150.00
--------------- ---------------
Total 6,665,951.57 6,367,463.00
--------------- ---------------
</TABLE>
<PAGE> 53
SCHEDULE I
PAGE 9 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- --------------- ---------------
<S> <C> <C> <C>
Metals:
Allegheny Ludlum Corporation 84,000 $ 1,714,486.79 $ 1,554,000.00
Aluminum Company of America 1,700 86,941.13 89,888.00
ASARCO Incorporated 9,000 290,781.00 288,000.00
Newmont Mining Corporation 35,000 1,420,700.00 1,588,125.00
--------------- ---------------
Total 3,512,908.92 3,520,013.00
--------------- ---------------
Miscellaneous:
Barrick Gold Corporation 20,000 517,130.00 527,500.00
Cooper Industries, Incorporated 39,600 1,689,215.48 1,455,300.00
Credence Systems Corporation 10,000 238,173.00 228,750.00
Crown Cork & Seal Company, Incorporated 4,100 161,627.04 171,175.00
FGN ASTRA 19,200 377,863.73 767,750.00
Freeport McMoran C & G CL 2,600 71,656.00 73,125.00
Global Industrial Technologies Incorporated 30,000 475,414.77 566,250.00
Mercer International Incorporated 10,000 244,750.00 205,000.00
Nike Incorporated 10,000 535,432.60 696,250.00
V. F. Corporation 300 14,795.52 15,825.00
--------------- ---------------
Total 4,326,058.14 4,706,925.00
--------------- ---------------
Office Equipment:
Compaq Computer Corporation 69,300 3,218,309.84 3,326,400.00
Hewlett-Packard Company 97,100 5,823,744.10 8,132,125.00
International Business Machines Corporation 42,200 3,513,216.75 3,856,025.00
Logicon Incorporated 4,000 93,518.88 110,000.00
Quantum Corporation 36,400 683,726.48 586,950.00
Sun Microsystems Incorporated 7,400 180,307.39 337,625.00
--------------- ---------------
Total 13,512,823.44 16,349,125.00
--------------- ---------------
Pharmaceuticals:
ALZA Corporation 27,500 639,762.54 673,750.00
American Home Products Corporation 32,500 2,183,728.16 3,152,500.00
Bergen Brunswig Corporation 10,000 253,700.00 248,750.00
Bristol Myers Squibb Company 66,000 5,348,960.96 5,667,750.00
Eli Lilly, & Company 35,800 1,217,559.17 2,004,800.00
Forest Laboratories, Incorporated 17,200 740,690.78 778,300.00
Merck & Company Incorporated 69,200 4,022,839.02 4,541,250.00
Pfizer Incorporated 54,900 2,645,263.09 3,458,700.00
Schering-Plough Corporation 50,000 2,786,539.77 2,737,500.00
--------------- ---------------
Total 19,839,043.49 23,263,300.00
--------------- ---------------
</TABLE>
<PAGE> 54
SCHEDULE I
PAGE 10 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- --------------- ---------------
<S> <C> <C> <C>
Printing, Publishing and Paper:
Champion International Corp 19,000 $ 912,640.22 $ 798,000.00
Gartner Group Incorporated 10,000 426,650.00 478,750.00
Mead Corporation 8,200 438,226.20 428,450.00
International Paper Company 14,200 548,445.48 537,825.00
James River Corporation of Virginia 15,600 465,776.80 376,350.00
R. R. Donnelley & Sons Company 27,300 864,519.89 1,074,938.00
Willamette Industries Incorporated 30,000 1,881,729.00 1,687,500.00
--------------- ----------------
Total 5,537,987.59 5,381,813.00
--------------- ----------------
Railroads:
Burlington Northern Santa Fe Corporation 5,000 411,850.00 390,000.00
Union Pacific Corporation 25,600 1,426,559.40 1,689,600.00
--------------- ----------------
Total 1,838,409.40 2,079,600.00
--------------- ----------------
Rubber:
Cooper Tire & Rubber Company 23,500 557,235.73 578,688.00
Goodyear Tire & Rubber Company 4,500 171,177.24 204,188.00
--------------- ----------------
Total 728,412.97 782,876.00
--------------- ----------------
Service Industries:
Comair Holdings Incorporated 10,000 285,478.20 268,750.00
Cox Communications Incorporated 57,600 1,103,994.06 1,123,200.00
First Data Corporation 21,200 1,327,305.00 1,417,750.00
GTECH Holdings Corporation 10,000 257,450.00 260,000.00
Health Care & Retirement Corporation 12,900 345,450.50 451,500.00
IMC Global Incorporated 10,000 384,350.00 407,500.00
National Service Industries, Incorporated 5,300 141,957.28 171,588.00
Service Corporation International 25,900 655,673.17 1,139,600.00
Wheelabrator Technologies Incorporated 34,800 528,122.88 582,900.00
--------------- ----------------
Total 5,029,781.09 5,822,788.00
--------------- ----------------
Technology:
ADR Ericsson L.M. Telephone Company 60,830 1,297,521.92 1,186,185.00
ADR Nokia Corporation 96,500 4,643,725.31 3,763,500.00
Advanced Micro Devices, Incorporated 13,500 368,616.56 222,750.00
AMP Incorporated 5,500 225,484.69 210,375.00
Analog Devices, Incorporated 16,000 551,920.00 566,000.00
Applied Materials, Incorporated 159,700 7,259,347.93 6,288,188.00
Autodesk Incorporated 7,600 271,529.52 260,300.00
</TABLE>
<PAGE> 55
SCHEDULE I
PAGE 11 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- --------------- ---------------
<S> <C> <C> <C>
Technology cont'd:
Avnet, Incorporated 5,000 $ 257,600.00 $ 223,750.00
Cadence Design System, Incorporated 20,000 706,679.68 840,000.00
CISCO Systems Incorporated 47,400 2,089,423.30 3,537,225.00
Coherent, Incorporated 10,000 432,511.00 405,000.00
General Motors Corporation 55,400 2,369,598.82 2,880,800.00
Harris Corporation 18,000 1,032,231.00 983,250.00
Intel Corporation 187,800 10,121,600.65 10,657,650.00
Kulicke & Soffa Industries, Incorporated 10,000 241,964.00 232,500.00
Micron Technology, Incorporated 87,800 5,563,893.73 3,479,075.00
Microsoft Corporation 64,300 5,570,860.88 5,642,325.00
Motorola Incorporated 30,100 1,898,912.14 1,715,700.00
Novell Incorporated 52,800 964,847.77 752,400.00
Oracle Corporation 34,650 1,134,983.51 1,468,294.00
Read-Rite Corporation 27,200 721,596.68 632,400.00
Scientific-Atlanta, Incorporated 6,900 83,873.73 103,500.00
Seagate Technology 10,000 470,238.81 475,000.00
Three Com. Corporation 14,100 588,538.90 657,413.00
Vishay Intertechnology, Incorporated 2,000 72,559.84 63,000.00
Xilinx Incorporated 10,900 309,216.22 332,450.00
--------------- ---------------
Total 49,249,276.59 47,579,030.00
--------------- ---------------
Utilities:
Airtouch Communications Incorporated 195,200 5,403,500.50 5,490,000.00
AT & T Corporation 118,900 6,715,694.04 7,698,775.00
Bellsouth Corporation 40,000 1,699,800.00 1,740,000.00
Cincinnati Bell Incorporated 16,000 527,920.00 556,000.00
Columbia Gas System, Incorporated 69,000 2,705,720.50 3,027,375.00
Consolidated Edison Company of New York 50,000 1,562,250.00 1,587,500.00
Dominion Resources Incorporated 10,000 366,007.63 412,500.00
DQE Incorporated 70,000 1,954,125.00 2,152,500.00
Edison International 16,400 258,734.00 289,050.00
Entergy Corporation 27,500 691,294.16 804,375.00
F P L Group Incorporated 19,100 664,316.01 885,763.00
GTE Corporation 36,900 1,309,249.11 1,618,988.00
Houston Industries, Incorporated 2,800 55,117.15 67,900.00
Illinova Corporation 16,300 437,874.07 489,000.00
MCI Communications Corporation 60,500 1,381,287.31 1,580,563.00
Niagara Mohawk Power Corporation 38,400 461,481.01 364,800.00
NIPSCO Industries, Incorporated 16,000 608,420.00 612,000.00
Oneok Incorporated 20,000 419,228.36 457,500.00
P P & L Res Incorporated 600 13,833.66 15,000.00
</TABLE>
<PAGE> 56
SCHEDULE I
PAGE 12 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
DIVERSIFIED PORTFOLIO FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
--------- --------------- ----------------
<S> <C> <C> <C>
Utilities cont'd:
Pacific Telesis Group 34,500 $ 1,023,600.38 $ 1,155,750.00
Pinnacle West Capital Corporation 32,900 904,803.80 945,875.00
Potomac Electric Power Company 15,300 344,747.54 401,625.00
Public Service Company of New Mexico 10,000 147,700.00 176,250.00
Sprint Corporation 46,900 1,791,550.69 1,858,413.00
Unicom Corporation 20,000 651,440.22 655,000.00
US West Communications Group 122,400 3,930,672.99 4,360,500.00
--------------- ---------------
Total 36,030,368.13 39,403,002.00
--------------- ---------------
Total Common Stocks 339,669,494.68 383,772,178.00
--------------- ---------------
TEMPORARY INVESTMENTS:
WMX Technologies Incorporated 274,100 398,253.52 239,838.00
Delayed Cycle Pricing Asset 2 0.00 2.00
Tandon Computer Purchase Coupon 5,248 0.00 1.00
Coltv Short Term Investment Fund 5,929,715 3,230,050.73 3,230,031.00
--------------- ---------------
Total Temporary Investments 3,628,304.25 3,469,872.00
--------------- ---------------
PREFERRED STOCK
Terra Nitrogen Company L. P. 10,000 341,812.00 375,000.00
--------------- ---------------
INCOME RECEIVABLE 575,498.12 575,498.00
--------------- ---------------
TOTAL DIVERSIFIED PORTFOLIO FUND $344,215,109.05 $388,192,548.00
=============== ===============
PROPORTIONATE INTEREST $ 56,424,734.05 $ 67,704,005.00
=============== ===============
</TABLE>
<PAGE> 57
SCHEDULE I
PAGE 13 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
FIXED INCOME FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTEREST RATE
AS OF
DECEMBER 31, MATURITY CURRENT
1995 DATE COST VALUE
------------- -------- ------------- --------------
<S> <C> <C> <C> <C>
GUARANTEED INVESTMENT CONTRACTS:
Aetna Life and Casualty Company 10.00% 1/03/00 $ 84,281,763 $ 93,288,000
The Prudential Insurance Company of America 9.92% 5/01/98 83,091,023 89,857,000
The Prudential Insurance Company of America 10.25% 7/05/00 55,597,953 61,762,000
The Prudential Insurance Company of America 9.65% 8/31/00 41,250,835 47,077,000
The Prudential Insurance Company of America 9.80% 8/31/00 61,904,532 71,001,000
The Travelers Insurance Company 8.15% 2/01/97 2,331,076 3,312,000
The Travelers Insurance Company 9.26% 2/01/97 2,462,723 2,335,000
The Travelers Insurance Company 9.65% 2/01/96 1,308,729 1,313,000
Aetna Life and Casualty Company 7.10% Open 276,176,086 293,700,000
Metropolitan Life Insurance Company 7.42% Open 298,682,113 322,500,000
Metropolitan Life Insurance Company 7.10% Open 300,101,111 302,300,000
The Prudential Insurance Company of America 7.03% Open 302,420,352 318,600,000
-------------- --------------
Total Guaranteed Investment Contracts 1,509,608,296 1,607,045,000
-------------- --------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund 2,601,727 2,601,727
-------------- --------------
INCOME RECEIVABLE 7,096 7,096
-------------- --------------
TOTAL FIXED INCOME FUND $1,512,217,119 $1,609,653,823
============== ==============
PROPORTIONATE INTEREST $ 244,292,825 $ 261,281,304
============== ==============
</TABLE>
<PAGE> 58
SCHEDULE I
PAGE 14 OF 14
GENERAL DYNAMICS CORPORATION
HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN
SPECIAL DISTRIBUTION FUND
COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR
PRINCIPAL CURRENT
AMOUNT COST VALUE
-------------- ------------ -----------
<S> <C> <C> <C>
SPECIAL DISTRIBUTION FUND:
The Northern Trust Company Collective
Short-Term Investment Fund 31,673,201 $31,673,201 $31,673,201
Income Receivable 152,631 152,631
----------- -----------
TOTAL SPECIAL DISTRIBUTION FUND $31,825,832 $31,825,832
=========== ===========
PROPORTIONATE INTEREST $ 9,216,785 $ 9,216,785
=========== ===========
</TABLE>
