8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) October 25, 2023 (October 25, 2023)

Commission File Number 1-3671

GENERAL DYNAMICS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware			13-1673581
State or other jurisdiction of incorporation or organization			I.R.S. Employer Identification No.
11011 Sunset Hills Road	Reston,	Virginia	20190
Address of principal executive offices			Zip code

(703) 876-3000

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	GD	New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company		☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02    Results of Operations and Financial Condition

On October 25, 2023, General Dynamics announced its financial results for the quarter ended October 1, 2023. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.

Item 9.01    Financial Statements and Exhibits

(d)     Exhibits (furnished only)

99.1	General Dynamics press release dated October 25, 2023, with respect to the company’s financial results for the quarter ended October 1, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GENERAL DYNAMICS CORPORATION
	by	/s/ William A. Moss
		William A. Moss Vice President and Controller (Authorized Officer and Chief Accounting Officer)
Dated: October 25, 2023

EX-99

Exhibit 99.1

11011 Sunset Hills Road
Reston, Virginia 20190	News
www.gd.com

Contact: Jeff A. Davis

Tel: 703 876 3483

press@generaldynamics.com

General Dynamics Reports Third-Quarter 2023 Financial Results

October 25, 2023

•Revenue $10.6 billion, up 6% year over year

•Net earnings $836 million, diluted EPS $3.04

•$1.3 billion net cash provided by operating activities

•Record-high $95.6 billion backlog, 1.4-to-1 book-to-bill

RESTON, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2023 net earnings of $836 million on revenue of $10.6 billion. Diluted earnings per share (EPS) were $3.04.

“We continue to see strong demand and steady revenue growth across the business, resulting in significant growth in backlog,” said Phebe N. Novakovic, chairman and chief executive officer. “Both operating earnings and net earnings increased over last quarter, and cash from operations was a highlight.”

Cash

Net cash provided by operating activities in the quarter totaled $1.3 billion, or 158% of net earnings. After $227 million in capital expenditures, the company generated free cash flow from operations of $1.1 billion, or 131% of net earnings. During the quarter, the company repaid $500 million in fixed-rate notes, paid $363 million in dividends, and used $56 million to repurchase shares.

Backlog

Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 1.4-to-1 for the quarter, with particular strength in the Marine Systems and Aerospace segments. Company-wide backlog of $95.6 billion was the highest in the company’s history. Estimated potential contract value, which represents management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $37.3 billion. Total estimated contract value, the sum of all backlog components, was $132.9 billion at the end of the quarter.

Aerospace received $2.9 billion in new orders during the quarter, growing backlog to $20.1 billion.

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Significant awards in the quarter for the three defense segments included a U.S. Navy contract for an undisclosed amount for construction of three Flight III Arleigh Burke-class guided-missile destroyers; $1.5 billion in contracts for Virginia-class submarine lead yard services, development studies and design efforts, as well as spare parts for maintenance availabilities; $140 million, with a maximum potential value of $1.3 billion, for Columbia-class submarine advanced nuclear plant studies (ANPS); $1.1 billion, with maximum potential value up to $1.9 billion, for munitions, ordnance, and the establishment of additional production capacity; a Department of Homeland Security contract with maximum potential value of $710 million to continue infrastructure modernization of its St. Elizabeth’s campus in Washington, D.C.; and $365 million, with maximum potential value of $775 million, for several key contracts for classified customers.

About General Dynamics

Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $39.4 billion in revenue in 2022. More information is available at GD.com.

WEBCAST INFORMATION: General Dynamics will webcast its third-quarter 2023 financial results conference call today at 9 a.m. EDT. The webcast will be a listen-only audio event available at GD.com.An on-demand replay of the webcast will be available by telephone two hours after the end of the call through November 1, 2023, at 800-770-2030 (international: +1 647-362-9199), conference ID 4299949. Charts furnished to investors and securities analysts in connection with the announcement of financial results are available at GD.com.

This press release contains forward-looking statements (FLS), including statements about the company’s future operational and financial performance, which are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company’s filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.

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EXHIBIT A

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

	Three Months Ended				Variance
	October 1, 2023		October 2, 2022		$		%
Revenue	$	10,571	$	9,975	$	596	6.0	%
Operating costs and expenses	(9,514)		(8,877)		(637)
Operating earnings	1,057		1,098		(41)		(3.7)	%
Other, net	19		41		(22)
Interest, net	(85)		(86)		1
Earnings before income tax	991		1,053		(62)		(5.9)	%
Provision for income tax, net	(155)		(151)		(4)
Net earnings	$	836	$	902	$	(66)	(7.3)	%
Earnings per share—basic	$	3.07	$	3.29	$	(0.22)	(6.7)	%
Basic weighted average shares outstanding	272.6		273.9
Earnings per share—diluted	$	3.04	$	3.26	$	(0.22)	(6.7)	%
Diluted weighted average shares outstanding	274.7		276.4

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EXHIBIT B

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

	Nine Months Ended				Variance
	October 1, 2023		October 2, 2022		$		%
Revenue	$	30,604	$	28,556	$	2,048	7.2	%
Operating costs and expenses	(27,647)		(25,572)		(2,075)
Operating earnings	2,957		2,984		(27)		(0.9)	%
Other, net	65		120		(55)
Interest, net	(265)		(279)		14
Earnings before income tax	2,757		2,825		(68)		(2.4)	%
Provision for income tax, net	(447)		(427)		(20)
Net earnings	$	2,310	$	2,398	$	(88)	(3.7)	%
Earnings per share—basic	$	8.45	$	8.70	$	(0.25)	(2.9)	%
Basic weighted average shares outstanding	273.2		275.8
Earnings per share—diluted	$	8.39	$	8.61	$	(0.22)	(2.6)	%
Diluted weighted average shares outstanding	275.4		278.4

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EXHIBIT C

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

	Three Months Ended						Variance
	October 1, 2023			October 2, 2022			$		%
Revenue:
Aerospace	$	2,032		$	2,347		$	(315)	(13.4)	%
Marine Systems	3,002			2,769			233		8.4	%
Combat Systems	2,224			1,788			436		24.4	%
Technologies	3,313			3,071			242		7.9	%
Total	$	10,571		$	9,975		$	596	6.0	%
Operating earnings:
Aerospace	$	268		$	312		$	(44)	(14.1)	%
Marine Systems	211			238			(27)		(11.3)	%
Combat Systems	300			271			29		10.7	%
Technologies	315			285			30		10.5	%
Corporate	(37)			(8)			(29)		(362.5)	%
Total	$	1,057		$	1,098		$	(41)	(3.7)	%
Operating margin:
Aerospace	13.2		%	13.3		%
Marine Systems	7.0		%	8.6		%
Combat Systems	13.5		%	15.2		%
Technologies	9.5		%	9.3		%
Total	10.0		%	11.0		%

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EXHIBIT D

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

	Nine Months Ended						Variance
	October 1, 2023			October 2, 2022			$		%
Revenue:
Aerospace	$	5,877		$	6,117		$	(240)	(3.9)	%
Marine Systems	9,053			8,071			982		12.2	%
Combat Systems	5,904			5,129			775		15.1	%
Technologies	9,770			9,239			531		5.7	%
Total	$	30,604		$	28,556		$	2,048	7.2	%
Operating earnings:
Aerospace	$	733		$	793		$	(60)	(7.6)	%
Marine Systems	657			660			(3)		(0.5)	%
Combat Systems	796			743			53		7.1	%
Technologies	897			887			10		1.1	%
Corporate	(126)			(99)			(27)		(27.3)	%
Total	$	2,957		$	2,984		$	(27)	(0.9)	%
Operating margin:
Aerospace	12.5		%	13.0		%
Marine Systems	7.3		%	8.2		%
Combat Systems	13.5		%	14.5		%
Technologies	9.2		%	9.6		%
Total	9.7		%	10.4		%

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EXHIBIT E

CONSOLIDATED BALANCE SHEET

DOLLARS IN MILLIONS

	(Unaudited)
	October 1, 2023		December 31, 2022
ASSETS
Current assets:
Cash and equivalents	$	1,352	$	1,242
Accounts receivable	3,132		3,008
Unbilled receivables	8,453		8,795
Inventories	8,282		6,322
Other current assets	1,560		1,696
Total current assets	22,779		21,063
Noncurrent assets:
Property, plant and equipment, net	6,013		5,900
Intangible assets, net	1,681		1,824
Goodwill	20,386		20,334
Other assets	2,666		2,464
Total noncurrent assets	30,746		30,522
Total assets	$	53,525	$	51,585
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	7	$	1,253
Accounts payable	3,315		3,398
Customer advances and deposits	9,351		7,436
Other current liabilities	3,289		3,254
Total current liabilities	15,962		15,341
Noncurrent liabilities:
Long-term debt	9,248		9,243
Other liabilities	8,358		8,433
Total noncurrent liabilities	17,606		17,676
Shareholders’ equity:
Common stock	482		482
Surplus	3,671		3,556
Retained earnings	38,626		37,403
Treasury stock	(21,124)		(20,721)
Accumulated other comprehensive loss	(1,698)		(2,152)
Total shareholders’ equity	19,957		18,568
Total liabilities and shareholders’ equity	$	53,525	$	51,585

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EXHIBIT F

CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)

DOLLARS IN MILLIONS

	Nine Months Ended
	October 1, 2023		October 2, 2022
Cash flows from operating activities—continuing operations:
Net earnings	$	2,310	$	2,398
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment	446		420
Amortization of intangible and finance lease right-of-use assets	195		224
Equity-based compensation expense	136		140
Deferred income tax benefit	(158)		(132)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable	(89)		259
Unbilled receivables	448		422
Inventories	(1,904)		(915)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable	(83)		(68)
Customer advances and deposits	2,171		1,598
Other, net	42		(436)
Net cash provided by operating activities	3,514		3,910
Cash flows from investing activities:
Capital expenditures	(600)		(620)
Other, net	(8)		(378)
Net cash used by investing activities	(608)		(998)
Cash flows from financing activities:
Repayment of fixed-rate notes	(1,250)		—
Dividends paid	(1,068)		(1,024)
Purchases of common stock	(434)		(1,119)
Other, net	(40)		103
Net cash used by financing activities	(2,792)		(2,040)
Net cash (used) provided by discontinued operations	(4)		21
Net increase in cash and equivalents	110		893
Cash and equivalents at beginning of period	1,242		1,603
Cash and equivalents at end of period	$	1,352	$	2,496

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EXHIBIT G

ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Other Financial Information:
	October 1, 2023			December 31, 2022
Debt-to-equity (a)	46.4		%	56.5		%
Book value per share (b)	$	73.13		$	67.66
Shares outstanding	272,896,860			274,411,106
	Third Quarter						Nine Months
	2023			2022			2023			2022
Income tax payments, net	$	167		$	202		$	493		$	767
Company-sponsored research and development (c)	$	140		$	124		$	395		$	361
Return on sales (d)	7.9		%	9.0		%	7.5		%	8.4		%
Non-GAAP Financial Measures:
	Third Quarter						Nine Months
	2023			2022			2023			2022
Free cash flow:
Net cash provided by operating activities	$	1,321		$	1,283		$	3,514		$	3,910
Capital expenditures	(227)			(255)			(600)			(620)
Free cash flow (e)	$	1,094		$	1,028		$	2,914		$	3,290
	October 1, 2023			December 31, 2022
Net debt:
Total debt	$	9,255		$	10,496
Less cash and equivalents	1,352			1,242
Net debt(f)	$	7,903		$	9,254

(a)Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.

(b)Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.

(c)Includes independent research and development and Aerospace product-development costs.

(d)Return on sales is calculated as net earnings divided by revenue.

(e)We define free cash flow as net cash provided by operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management.

(f)We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of liquidity and financial position.

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EXHIBIT H

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

	Funded		Unfunded		Total Backlog		Estimated Potential Contract Value*		Total Estimated Contract Value
Third Quarter 2023:
Aerospace	$	19,654	$	405	$	20,059	$	785	$	20,844
Marine Systems	30,445		17,277		47,722		3,113		50,835
Combat Systems	14,375		719		15,094		6,098		21,192
Technologies	9,833		2,852		12,685		27,302		39,987
Total	$	74,307	$	21,253	$	95,560	$	37,298	$	132,858
Second Quarter 2023:
Aerospace	$	19,050	$	447	$	19,497	$	888	$	20,385
Marine Systems	30,318		13,410		43,728		3,238		46,966
Combat Systems	14,349		718		15,067		6,196		21,263
Technologies	9,732		3,333		13,065		27,639		40,704
Total	$	73,449	$	17,908	$	91,357	$	37,961	$	129,318
Third Quarter 2022:
Aerospace	$	18,536	$	516	$	19,052	$	773	$	19,825
Marine Systems	26,966		15,273		42,239		3,263		45,502
Combat Systems	13,305		534		13,839		5,754		19,593
Technologies	10,130		3,573		13,703		27,162		40,865
Total	$	68,937	$	19,896	$	88,833	$	36,952	$	125,785

*The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.

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EXHIBIT H-1

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

Funded Backlog Unfunded Backlog

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EXHIBIT H-2

BACKLOG BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Funded Backlog Unfunded Backlog

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EXHIBIT I

THIRD QUARTER 2023 SIGNIFICANT ORDERS - (UNAUDITED)

DOLLARS IN MILLIONS

We received the following significant contract awards during the third quarter of 2023:

Marine Systems:

•$140 from the U.S. Navy for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program. The contract including options has a maximum potential value of $1.3 billion.

•$965 from the Navy for lead yard services, development studies and design efforts for Virginia-class submarines.

•$515 from the Navy for procurement and delivery of initial Virginia-class spare parts to support maintenance availabilities.

•$220 from the Navy to provide in-service support of systems and components on the USS Jimmy Carter (SSN23).

•$40 from the Navy to provide maintenance for submarines at the Naval Submarine Base New London in Connecticut. The contract including options has a maximum potential value of $185.

•A contract from the Navy for the construction of three Flight III Arleigh Burke-class (DDG-51) guided-missile destroyers.

Combat Systems:

•$770 for various munitions and ordnance with a maximum potential value of $1.2 billion.

•$345 for two contracts from the U.S. Army to establish additional capacity for 155mm M795 load, assemble and pack (LAP) production, and projectile metal parts. These contracts have a maximum potential value of $730.

•$145 from the Army to provide system and sustainment technical support services for Abrams main battle tanks.

•$135 to produce launch pod containers for the Guided Multiple Launch Rocket System (GMLRS) for the Army.

•$100 from the Army to produce Stryker maneuver short-range air defense (M-SHORAD) vehicles.

•$95 from the Army for the production of Hydra-70 rockets.

Technologies:

•$365 for several key contracts for classified customers. These contracts have a maximum potential value of $775.

•$55 to continue infrastructure modernization of the U.S. Department of Homeland Security’s (DHS) St. Elizabeth’s Campus in Washington, D.C. The contract including options has a maximum potential value of $710.

•$10 from the U.S. Air Force to manufacture high-altitude electromagnetic pulse and radiation-hardened general area alerting, personal area alerting and ultra-high frequency line of sight communications for the Global Aircrew Strategic Network Terminal Increment 2 (GASNTi2) system. The contract has a maximum potential value of $225.

•$30 to provide software development, integration, testing, technical support, configuration control and sustainment services for the Air Force. The contract including options has a maximum potential value of $140.

•$20 from the Administrative Office of the United States Courts (AOUSC) to provide risk management, monitoring and oversight and support services to the Administrative Office Technology Office (AOTO). The contract including options has a maximum potential value of $115.

•$105 from the Army for computing and communications equipment under the Common Hardware Systems-5 program.

•$95 for development, production and support of all hardware and software required for the Airborne Ruggedized Tactical Environment Mission Information System (ARTEMIS) for the Navy.

•$90 to modernize the Payments, Claims, and Enhanced Reconciliation (PACER) application for the U.S. Department of the Treasury.

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EXHIBIT J

AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)

DOLLARS IN MILLIONS

	Third Quarter				Nine Months
	2023		2022		2023		2022
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft	22		28		57		66
Mid-cabin aircraft	5		7		15		16
Total	27		35		72		82
Aerospace Book-to-Bill:
Orders*	$	2,916	$	2,705	$	7,119	$	9,600
Revenue	2,032		2,347		5,877		6,117
Book-to-Bill Ratio	1.44x		1.15x		1.21x		1.57x

*Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.

# # #

XML

Cover	Oct. 25, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 25, 2023
Entity Registrant Name	GENERAL DYNAMICS CORPORATION
Entity Central Index Key	0000040533
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-1673581
Entity Address, Address Line One	11011 Sunset Hills Road
Entity Address, City or Town	Reston,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	703
Local Phone Number	876-3000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	GD
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity File Number	1-3671