-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U8dmHioklE3AnJwURc/Gowrn7naX5wUH+qi8gMDYu3vh2Qjw7wOqqQhXH9rWzHKq lJbbxCWOO+8PxKZCw8oyrw== 0000950133-97-002235.txt : 19970618 0000950133-97-002235.hdr.sgml : 19970618 ACCESSION NUMBER: 0000950133-97-002235 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970617 FILED AS OF DATE: 19970617 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL DYNAMICS CORP CENTRAL INDEX KEY: 0000040533 STANDARD INDUSTRIAL CLASSIFICATION: SHIP & BOAT BUILDING & REPAIRING [3730] IRS NUMBER: 131673581 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405/A SEC ACT: SEC FILE NUMBER: 001-03671 FILM NUMBER: 97625427 BUSINESS ADDRESS: STREET 1: 3190 FAIRVIEW PARK DRIVE CITY: FALLS CHURCH STATE: VA ZIP: 22042 BUSINESS PHONE: 7038763375 MAIL ADDRESS: STREET 1: 3190 FAIRVIEW PARK DR CITY: FALLS CHURCH STATE: VA ZIP: 22042 10-K405/A 1 GENERAL DYNAMICS CORP. FORM 10-K, AMENDMENT NO. 1 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 ACT OF 1934 ---------------------- GENERAL DYNAMICS CORPORATION 3190 Fairview Park Drive Falls Church, Virginia 22042-4523 AMENDMENT NO. 1 The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its 1996 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 and 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 17, 1997 -1- 2 INDEX TO EXHIBITS
NOTE EXHIBIT NUMBER NUMBER DESCRIPTION - ------ ------ ----------- (5) 3-1A --Restated Certificate of Incorporation, effective May 21, 1991 3-2C --Bylaws as amended effective August 7, 1996 4 --Letter re 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 (3) 10-6A --General Dynamics Corporation Incentive Compensation Plan adopted February 3, 1988, approved by the shareholders on May 4, 1988 (4) 10-6B --General Dynamics Corporation Incentive Compensation Plan (as amended), approved by shareholders on May 1, 1991 (2) 10-7D --Facilities Contract DAAE07-83-E-A007 dated January 29, 1983, between General Dynamics Land Systems, Inc. and the United States relating to government-owned equipment at the Scranton Defense Plant, Eynon, Pennsylvania (4) 10-7E --Facilities Contract DAAE07-90-E-A001 dated June 24, 1990, between General Dynamics Land Systems, Inc. and the United States relating to government-owned facilities and equipment at the Lima Army Tank Plant, Lima, Ohio (7) 10-8B --General Dynamics Corporation Retirement Plan for Directors adopted March 6, 1986, as amended May 5, 1993 10-14A --Lease Agreement dated December 20, 1996, between Electric Boat Corporation and the Rhode Island Economic Development Corporation (6) 10-18 --Employment Agreement between the company and James R. Mellor dated as of March 17, 1993 (9) 10-18A --Amendment to employment agreement between the company and James R. Mellor dated as of October 3, 1995 10-18B --Amendment to employment agreement between the company and James R. Mellor dated as of November 5, 1996 (6) 10-22 --Form of Agreement entered into in 1993 between the company and Corporate Officers who were being retained in employment with the company (8) 10-24 --Asset Purchase Agreement, dated August 17, 1995, between the company and Bath Iron Works Corporation (9) 10-25 --Lease Agreement dated January 14, 1982, between Bath Iron Works Corporation and the City of Portland, Maine, relating to pier facilities in the Portland, Maine harbor (9) 10-26 --Lease Agreement dated January 14, 1982, between Bath Iron Works Corporation and the State of Maine, relating to a dry dock facility in the Portland, Maine harbor (9) 10-27 --Form of Employment Agreement pertaining to change of control entered into between the company and key executives (10) 10-28 --Asset Purchase and Sale Agreement, dated November 6, 1996, as amended December 20, 1996, between the company and Lockheed Martin Corporation 10-29 --Employment agreement between the company and Nicholas D. Chabraja dated November 12, 1996 10-30 --General Dynamics Corporation Incentive Compensation Plan adopted by the board of directors as of February 5, 1997
-2- 3 INDEX TO EXHIBITS
NOTE EXHIBIT NUMBER NUMBER DESCRIPTION - ------ ------ ----------- 11 --Statement re computation of per share earnings 13 --1996 Shareholder Report (pages 18 through 39) 21 --Subsidiaries 23 --Consent of Independent Public Accountants 24 --Power of Attorney of the Board of Directors 27 --Financial Data Schedule 99(d) --1996 Annual Report on Form 11-K for the General Dynamics Corporation Savings and Stock Investment Plan 99(e) --1996 Annual Report on Form 11-K for the General Dynamics Corporation Hourly Employees Savings and Stock Investment Plan
-3- 4 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, 1987, and filed with the Commission March 17, 1988, 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, 1990, and filed with the Commission March 29, 1991, 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, 1991, and filed with the Commission March 26, 1992, 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, 1992, and filed with the Commission March 30, 1993, 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, 1994, and filed with the Commission March 9, 1995, and incorporated herein by reference. (8) 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. (9) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1995, and filed with the Commission March 21, 1996, and incorporated herein by reference. (10) Filed as an exhibit to the company's current report on Form 8-K filed with the Commission January 15, 1997, and incorporated herein by reference. -4- EX-99.D 2 FORM 11-K RE: SAVINGS & STOCK INVESTMENT PLAN 1 - ------------------------------------------------------------------------------- ANNUAL EXHIBIT 99(d) TO ANNUAL REPORT ON FORM 10-K OF GENERAL DYNAMICS CORPORATION SEC FILE NO. 1-3671 --------------------- SECURITIES AND EXCHANGE COMMISION WASHINGTON, D.C. 20549 --------------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 19(D) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 1996 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 the principal executive office: GENERAL DYNAMICS CORPORATION 3190 FAIRVIEW PARK DRIVE FALLS CHURCH, VIRGINIA 23042-4523 -5- 2 GENERAL DYNAMICS CORPORATION INDEX OF FINANCIAL STATEMENTS AND EXHIBITS Pages of this Form 11-K (a) FINANCIAL STATEMENTS Report of Independent Public Accountants 10 Statements of Net Assets Available for Benefits, December 31, 1996 and 1995 11-12 Statement of Changes in Net Assets Available for Benefits, Fiscal Year Ended December 31, 1996 13 Notes to Financial Statements 14-16 Schedule I - Combined Statement of Investments in Master Trust Funds 17-37 (b) SIGNATURE 7 (c) EXHIBITS Consent of Independent Public Accountants 8 -6- 3 SIGNATURE Pursuant to the requirements of the Securities and 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 17, 1997 -7- 4 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 17, 1997 -8- 5 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995 TOGETHER WITH AUDITORS' REPORT -9- 6 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, 1996 and 1995, and the related statement of changes in net assets available for benefits for the year ended December 31, 1996. 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, 1996 and 1995, and the changes in its net assets available for benefits for the year ended December 31, 1996, 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. Arthur Andersen LLP June 17, 1997 -10- 7 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1996
FUNDS ------------------------------- COMPANY GOVERNMENT TOTAL STOCK BONDS -------------- ------------ ----------- ASSETS: Investment in common stock of General Dynamics Corporation, at market value - 5,236,392 shares (Cost $146,741,199)- Participant-directed $237,696,980 $237,696,980 $ - Non-participant-directed 132,777,759 132,777,759 - Investments in securities of unaffiliated issuers, at market value U.S. Government bonds (Cost $98,896,305) 97,703,893 - 97,703,893 Other securities (Cost $322,357,407) 372,537,084 - - Guaranteed investment contracts, at fair value (Cost $1,208,000,753) 1,255,348,014 - - Loans receivable (payable) 15,130,746 110,992 1,313 Amounts receivable from (payable to) General Dynamics Corporation (18,232) (30,519) (1,656) -------------- ------------ ----------- Total Assets 2,111,176,244 370,555,212 97,703,550 -------------- ------------ ----------- LIABILITIES: Fund transfers (3,008) 2,205,381 659,735 Administrative fees payable 189,656 17,557 4,553 Loans payable (receivable) - 51,587 91,693 -------------- ------------ ----------- Total Liabilities 186,648 2,274,525 755,981 -------------- ------------ ----------- Net Assets Available for Benefits $2,110,989,596 $368,280,687 $96,947,569 ============== ============ ===========
FUNDS -------------------------------------------------------------- DIVERSIFIED FIXED SPECIAL PORTFOLIO INCOME DISTRIBUTION LOAN ------------ -------------- ------------ ----------- ASSETS: Investment in common stock of General Dynamics Corporation, at market value - 5,236,392 shares (Cost $146,741,199)- Participant-directed $ - $ - $ - $ - Non-participant-directed - - - - Investments in securities of unaffiliated issuers, at market value U.S. Government bonds (Cost $98,896,305) - - - - Other securities (Cost $322,357,407) 352,149,275 - 20,387,809 - Guaranteed investment contracts, at fair value (Cost $1,208,000,753) 1,255,348,014 - - Loans receivable (payable) 9,854 20,273 - 14,988,314 Amounts receivable from (payable to) General Dynamics Corporation 4,124 9,819 - - ------------ -------------- ----------- ----------- Total Assets 352,163,253 1,255,378,106 20,387,809 14,988,314 ------------ -------------- ----------- ----------- LIABILITIES: Fund transfers (1,286,389) (1,686,422) 104,687 - Administrative fees payable 109,146 55,911 2,489 - Loans payable (receivable) 191,950 957,773 23,697 (1,316,700) ------------ -------------- ----------- ----------- Total Liabilities (985,293) (672,738) 130,873 (1,316,700) ------------ -------------- ----------- ----------- Net Assets Available for Benefits $353,148,546 $1,256,050,844 $20,256,936 $16,305,014 ============ ============== =========== ===========
The accompanying notes are an integral part of these financial statements. -11- 8 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1995
FUNDS -------------------------------- COMPANY GOVERNMENT TOTAL STOCK BONDS -------------- ------------ ------------ 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 - - 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) Amounts receivable from (payable to) General Dynamics Corporation 184,227 195,130 4,495 -------------- ------------ ------------ Total Assets 2,144,911,181 323,108,907 111,359,828 -------------- ------------ ------------ LIABILITIES: Fund transfers - 2,607,321 1,332,952 Administrative fees payable 267,727 31,024 15,528 Loans payable (receivable) - 103,123 76,666 -------------- ------------ ------------ Total Liabilities 267,727 2,741,468 1,425,146 -------------- ------------ ------------ Net Assets Available for Benefits $2,144,643,454 $320,367,439 $109,934,682 ============== ============ ============
FUNDS --------------------------------------------------------------------- DIVERSIFIED FIXED SPECIAL PORTFOLIO INCOME DISTRIBUTION LOAN ------------ -------------- ------------ ----------- 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) 320,488,543 - 22,609,047 - Guaranteed investment contracts, at fair value (Cost $1,267,924,294) - 1,348,372,519 - - Loans receivable (payable) (163,176) (49,847) - 19,200,758 Amounts receivable from (payable to) General Dynamics Corporation 10,577 (25,975) - - ------------ -------------- ----------- ----------- Total Assets 320,335,944 1,348,296,697 22,609,047 19,200,758 ------------ -------------- ----------- ----------- LIABILITIES: Fund transfers (846,478) (3,431,919) 338,124 - Administrative fees payable 90,404 128,055 2,716 - Loans payable (receivable) 258,243 811,757 14,411 (1,264,200) ------------ -------------- ----------- ----------- Total Liabilities (497,831) (2,492,107) 355,251 (1,264,200) ------------ -------------- ----------- ----------- Net Assets Available for Benefits $320,833,775 $1,350,788,804 $22,253,796 $20,464,958 ============ ============== =========== ===========
The accompanying notes are an integral part of these financial statements. -12- 9 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1996
FUNDS ---------------------------------------------------- COMPANY STOCK ------------------------------ NON- PARTICIPANT- PARTICIPANT- GOVERNMENT TOTAL DIRECTED DIRECTED BONDS -------------- ------------ ------------ ----------- INVESTMENT INCOME- Dividends $ 14,597,595 $ 5,661,129 $ 2,840,438 $ - Interest 105,178,820 57,920 29,061 6,321,944 -------------- ------------ ------------ ------------ 119,776,415 5,719,049 2,869,499 6,321,944 ADD (DEDUCT)- NET REALIZED AND UNREALIZED GAIN (LOSS) ON ASSETS 94,582,108 40,252,124 20,196,270 (1,335,702) ROLLOVER CONTRIBUTIONS 288,657 38,006 - 9,368 DEPOSITS BY PARTICIPANTS 22,936,791 13,858,616 - 673,579 CONTRIBUTIONS BY GENERAL DYNAMICS CORPORATION 16,066,335 (156,233) 16,226,043 (35) LOAN REPAYMENTS 1,285,711 5,823,226 - 406,762 LOANS ISSUED - (352,796) - (435,911) TRANSFER BETWEEN INVESTMENT FUNDS 3,008 (8,725,212) - (2,406,941) DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (286,367,810) (31,574,862) (16,023,394) (16,128,403) PLAN EXPENSES (2,225,073) (237,088) - (91,774) -------------- ------------ ------------ ------------ Net increase (decrease) (33,653,858) 24,644,830 23,268,418 (12,987,113) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 2,144,643,454 186,777,430 133,590,009 109,934,682 -------------- ------------ ------------ ------------ End of year $2,110,989,596 $211,422,260 $156,858,427 $ 96,947,569 ============== ============ ============ ============
FUNDS ----------------------------------------------------------------------- DIVERSIFIED FIXED SPECIAL PORTFOLIO INCOME DISTRIBUTION LOAN ------------ -------------- ------------ ----------- INVESTMENT INCOME- Dividends $ 6,096,028 $ - $ - $ - Interest 430,519 97,202,028 1,137,348 - ------------ -------------- ----------- ----------- 6,526,547 97,202,028 1,137,348 - ADD (DEDUCT)- NET REALIZED AND UNREALIZED GAIN (LOSS) ON ASSETS 67,320,291 (31,850,875) - - ROLLOVER CONTRIBUTIONS 154,487 86,796 - - DEPOSITS BY PARTICIPANTS 2,536,303 5,868,293 - - CONTRIBUTIONS BY GENERAL DYNAMICS CORPORATION (461) (1,785) (1,194) - LOAN REPAYMENTS 1,217,398 3,461,754 - (9,623,429) LOANS ISSUED (1,719,720) (5,295,242) (117,131) 7,920,800 TRANSFER BETWEEN INVESTMENT FUNDS 2,715,964 9,084,160 (664,963) - DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (45,468,700) (172,382,765) (2,332,371) (2,457,315) PLAN EXPENSES (967,338) (910,324) (18,549) - ------------ -------------- ----------- ----------- Net increase (decrease) 32,314,771 (94,737,960) (1,996,860) (4,159,944) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 320,833,775 1,350,788,804 22,253,796 20,464,958 ------------ -------------- ----------- ----------- End of year $353,148,546 $1,256,050,844 $20,256,936 $16,305,014 ============ ============== =========== ===========
The accompanying notes are an integral part of these financial statements. -13- 10 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995 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, non-highly compensated members, as determined by the Plan Administrator, 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. -14- 11 All Company matching contributions to the Plan are invested in Company common stock. Options 1 through 7 receive a 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. 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. 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. 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. -15- 12 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. All of the above Funds may hold a small cash balance for purpose of liquidity and expense control. During June 1997, the Company extended the investment options for plan participants. Two of the options offered in 1996 will remain available to participants: the Company Stock Fund and the Fixed Income Fund. The new options include: Bond Index Fund, Balanced Fund, S&P 500 Stock Index Fund, International Index Fund and Small Cap Index Fund. These investment options will offer participants the opportunity to invest in a broader range of the risk/return spectrum for actively traded securities. Description of the new options include: a) Bond Index Fund - Includes investments in government, mortgage-backed and asset-backed securities. The Fund also invests in high quality bonds. b) Balanced Fund - The Fund is mixed portfolio of commingled stocks and bond funds. The Fund is made up of international equities, U.S. large cap equities, fixed income securities, U.S. small cap equities, and a small cash balance. c) S&P 500 Stock Index Fund - The Fund invests in 500 U.S. common stocks constructed by Standard & Poor's. It may also hold 2%-5% of its value in S&P 500 futures contracts. d) International Index Fund - The Fund invests in over 1,000 stocks in major markets outside the United States and Canada. Investments are made in all stocks in the MSCI EAFE Index in approximate proportion to the weighing in the Index. e) Small Cap Index Fund - The Fund invests in all 2,0000 stocks in the Russell 2000 Index in proportion to their weighing in the Index. The Russell Index represents the smallest two-thirds of the 3,000 largest U.S. companies. 3. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates. 4. The accompanying financial statements are prepared on the accrual basis of accounting. 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 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 fair value of the assets in the Master Trust Fund. Investment income and net realized and unrealized gains or losses are allocated to the respective plans based on their proportionate interest, at market value, in the Master Trust Fund. Administrative expenses are primarily paid by the Plan although certain administrative functions are performed by employees of the Company. Although no costs were reimbursed by the Company in 1996, the Plan document provides that these costs may be reimbursed by the Company. 8. 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, 1996 and 1995, amounts payable on withdrawals and distributions were $30,544,627 and $37,466,541, respectively. In addition, on the Statement of Changes in Net Assets Available for Benefits, 1996 distributions to withdrawn participants would have been $279,445,896 instead of $286,367,810 if the December 31 amounts payable on withdrawals and distributions had been included. 9. Most investments held by the Plan are recorded at quoted market value as stated on public exchanges as of December 31, 1996 and 1995. The Company values its guaranteed investment contracts in accordance with AICPA 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 effects of recognizing the fair values based on the discounted cash flow method resulted in a net realized and unrealized loss of approximately $27 million during 1996 and a gain of approximately $74 million in 1995. -16- 13 SCHEDULE I GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996 -17- 14 SCHEDULE I PAGE 1 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN COMPANY STOCK FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ COMPANY STOCK FUND: Investment in common stock of General Dynamics Corporation 5,923,123 $ 168,743,683 $ 419,069,977 =================== ================== PROPORTIONATE INTEREST 5,236,392 $ 146,741,199 $ 370,474,739 =================== ================== LOANS RECEIVABLE (prime rate, December 31, 1996-8.25%) N/A $ 16,401,791 $ 16,401,791 =================== ================== PROPORTIONATE INTEREST N/A $ 15,130,746 $ 15,130,746 =================== ==================
-18- 15 SCHEDULE I PAGE 2 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN GOVERNMENT BONDS FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- GOVERNMENT BONDS FUND: U.S. Treasury Notes U.S. Treasury Notes 5.875% due April 30, 1998 30,000,000 $ 30,103,125 $ 30,046,800 U.S. Treasury Notes 4.75% due August 31, 1998 26,600,000 25,877,533 26,147,002 U.S. Treasury Notes 4.75% due October 31, 1998 3,400,000 3,337,313 3,335,196 U.S. Treasury Notes 5.875% due October 31, 1998 30,000,000 30,024,937 29,995,200 U.S. Treasury Notes 5.50% due November 15, 1998 30,000,000 29,948,438 29,798,400 U.S. Treasury Notes 8.875% due November 15, 1998 30,000,000 31,589,063 31,565,700 U.S. Treasury Notes 7.50% due October 31, 1999 12,100,000 12,565,092 12,549,999 ---------------- ---------------- Total U.S. Treasury Notes 163,445,501 163,438,297 ---------------- ---------------- Temporary Investments The Northern Trust Company Collective Short-Term Investment Fund 548,050 548,050 548,050 Income Receivable 2,606,926 2,606,926 ---------------- ---------------- TOTAL GOVERNMENT BONDS FUND $ 166,600,477 $ 166,593,273 ================ ================ PROPORTIONATE INTEREST $ 98,896,305 $ 97,703,893 ================ ================
-19- 16 SCHEDULE I PAGE 3 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- COMMON STOCKS: Aerospace: Allied Signal Incorporated 20,800 $ 664,108 $ 1,393,600 Boeing Company 42,200 3,560,371 4,494,300 Coltec Industries Incorporated 2,200 39,994 41,525 Lockheed Martin Corporation 14,300 1,083,329 1,308,450 McDonnell Douglas Corporation 18,300 744,471 1,200,937 Northrop Gruman Corporation 2,300 164,356 190,325 Precision Castparts Corporation 100 4,934 4,963 Raytheon Company 5,200 116,862 250,250 Sundstrand Corporation 1,000 38,040 42,500 Textron, Incorporated 4,000 326,794 377,000 United Technologies Corporation 30,000 1,781,555 1,987,500 ---------------- ---------------- Total 8,524,814 11,291,350 ---------------- ---------------- Airlines: AMR Corporation 2,900 250,091 255,563 KLM Royal Dutch Airlines 77,615 2,373,917 2,163,517 Northwest Airlines Corporation 100,800 3,388,771 3,943,800 Southwest Airlines Corporation 4,600 128,522 101,200 UAL Corporation 92,800 2,689,490 5,800,000 U.S. Air Group 4,000 82,540 93,500 ---------------- ---------------- Total 8,913,331 12,357,580 ---------------- ---------------- Automotive: Arvin Industries, Incorporated 25,000 593,475 618,750 Chrysler Corporation 161,300 5,159,221 5,322,900 Ford Motor Company 35,900 1,022,744 1,157,774 General Motors Corporation 64,400 3,241,310 3,590,300 General Motors Corporation, Class H 21,000 1,158,997 1,181,250 Illinois Tool Works Incorporated 1,000 71,665 79,875 Lear Corporation 1,900 64,876 64,838 Modine Manufacturing Company 1,700 46,137 45,475 Snap-On Incorporated 2,000 62,140 71,250 ---------------- ---------------- Total 11,420,565 12,132,412 ---------------- ----------------
-20- 17 SCHEDULE I PAGE 4 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Building: Centex Corporation 25,000 $ 822,671 $ 940,625 Fleetwood Enterprises, Incorporated 12,000 392,415 330,000 Johnson Controls, Incorporated 4,100 287,600 339,787 Louisiana-Pacific Corporation 5,100 118,881 107,738 Owens Corning 3,800 155,633 161,975 USG Corporation 2,300 60,326 77,913 ----------------- ---------------- Total 1,837,526 1,958,038 ----------------- ---------------- Chemicals: Air Products and Chemicals, Incorporated 3,500 197,960 241,937 Albermarle Corporation 3,700 65,153 67,063 Avery Dennison Corporation 18,000 537,590 636,750 Crompton & Knowles Corporation 2,400 37,944 46,200 Dow Chemical Company 29,400 2,412,080 2,304,225 DuPont, (E.I) DeNemours & Company 39,900 2,919,457 3,755,587 Eastman Kodak Company 10,000 730,274 802,500 Ecolab Incorporated 2,100 68,368 79,013 Georgia Gulf Corporation 1,100 33,341 29,563 Lyondell Petrochemical Company 2,600 62,881 57,525 Monsanto Company 2,000 83,030 77,750 Praxair Incorporated 1,000 47,135 46,125 Rohm & Haas Company 11,000 758,335 897,875 Tyco International Limited 24,700 1,027,780 1,306,012 Union Carbide Corporation 4,800 206,112 196,200 Wellman Incorporated 1,400 36,496 23,975 ----------------- ---------------- Total 9,223,936 10,568,300 ----------------- ----------------
-21- 18 SCHEDULE I PAGE 5 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Consumer Goods: ADR Unilever NV 15,500 $ 2,394,161 $ 2,716,375 Anheuser-Busch Companies Incorporated 8,300 316,896 332,000 Avon Products, Incorporated 17,100 816,160 976,838 Black & Decker Corporation 6,400 225,757 192,800 Campbell Soup Company 24,100 1,880,521 1,934,024 Coca Cola Company 107,200 5,258,999 5,641,400 Colgate-Palmolive Company 3,100 251,796 285,975 Conagra Incorporated 8,000 372,080 398,000 CPC International Incorporated 5,800 308,593 449,500 Darden Restaurants Incorporated 20,000 172,309 175,000 Dean Foods Company 10,000 298,850 322,500 Emerson Electric Company 14,000 1,359,337 1,356,250 General Electric Company 78,100 5,752,942 7,722,137 General Mills, Incorporated 17,400 1,073,317 1,107,075 Gillette Company 3,000 165,591 233,250 Hershey Foods Corporation 3,000 127,902 131,250 International Flavors & Fragrances Incorporated 5,200 249,093 234,000 Kellogg Company 8,900 629,932 584,063 Maytag Corporation 12,000 253,456 237,000 McDonalds Corporation 5,700 196,283 258,638 Nabisco Holdings Corporation 3,000 110,465 116,625 Pepsico, Incorporated 124,200 3,210,397 3,632,850 Philip Morris Companies Incorporated 139,700 10,570,257 15,786,100 Pioneer Hi-Bred International, Incorporated 3,000 193,155 210,000 Procter & Gamble Company 54,700 4,239,327 5,887,087 Ralston-Ralston Purina Group 25,700 1,645,427 1,885,737 Rubbermaid Incorporated 10,900 256,272 246,613 Ruby Tuesday Incorporated 10,000 200,593 187,500 Sara Lee Corporation 2,900 94,069 108,025 Sensormatic Electronics Corporation 2,900 51,634 48,575 TSL Holdings Incorporated 330 - 1 W.W. Grainger, Incorporated 2,600 165,835 208,650 Whirlpool Corporation 5,400 263,253 251,775 ----------------- ---------------- Total 43,104,659 53,857,613 ----------------- ---------------- Energy: ADR British Petroleum 2,100 275,772 296,888 Amerada Hess Corporation 5,000 276,925 289,375 Amoco Corporation 400 29,174 32,250
-22- 19 SCHEDULE I PAGE 6 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Anadarko Petroleum Corporation 1,700 $ 77,823 $ 110,075 Ashland Incorporated 1,700 59,860 74,588 Atlantic Richfield Company 13,000 1,584,755 1,722,500 Baker Hughes Incorporated 28,900 907,292 997,050 Burlington Resources Incorporated 17,000 889,670 856,375 Chevron Corporation 36,200 2,115,962 2,353,000 Cooper Cameron Corporation 700 13,284 53,550 Dresser Industries Incorporated 1,000 29,268 31,000 Enron Corporation 12,300 391,152 530,437 Exxon Corporation 63,300 5,408,083 6,203,400 Halliburton Company 5,000 306,925 301,250 Input/Output Incorporated 1,300 47,203 24,050 Kerr-McGee Corporation 10,000 652,600 720,000 Mobil Corporation 11,600 1,331,783 1,418,100 Murphy Oil Corporation 8,000 384,455 447,856 Oryx Energy Company 8,000 161,830 198,000 Phillips Petroleum Company 16,500 691,470 730,125 Pogo Producing Company 900 30,767 42,525 Ranger Oil Limited 8,000 66,080 79,000 Royal Dutch Petroleum Company 28,100 3,737,958 4,798,074 Schlumberger Limited 14,900 1,398,753 1,488,137 Smith International, Incorporated 1,100 32,241 49,363 Texaco, Incorporated 30,900 2,613,051 3,032,062 Tidewater, Incorporated 5,000 206,985 226,250 Tosco Corporation 1,200 61,794 94,950 Ultramar-Diamond Shamrock Corporation 2,000 51,356 63,250 Union Pacific Resources Group Incorporated 5,700 124,478 165,300 Union Tex Pete Holdings Incorporated 12,000 226,620 268,500 Western Atlas Incorporated 3,000 198,780 212,625 ----------------- ---------------- Total 24,384,149 27,909,905 ----------------- ----------------
-23- 20 SCHEDULE I PAGE 7 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Financial Services & Insurance: A.G. Edwards Incorporated 2,200 $ 52,681 $ 73,975 Advanta Corporation 900 40,611 36,788 AMBAC Incorporated 7,700 395,421 511,088 Allstate Corporation 13,000 668,076 752,375 American General Corporation 11,500 427,211 470,063 American International Group, Incorporated 35,650 3,329,013 3,859,112 American Express Company 18,000 969,930 1,017,000 Banc One Corporation 24,300 916,498 1,044,900 Bancorporation Hawaii Incorporated 5,500 201,374 231,000 Bank of Boston Corporation 1,000 55,727 64,250 Bankamerica Corporation 27,000 1,881,577 2,693,250 Barnett Banks Incorporated 11,800 458,739 485,275 Bear Stearns & Companies, Incorporated 4,400 101,884 122,650 Beneficial Corporation 2,000 113,270 126,750 Boatmen's Bancshares, Incorporated 7,300 443,808 470,850 Case Corporation 5,000 222,491 272,500 Central Fidelity Banks, Incorporated 2,200 50,977 56,650 Charter One Financial Incorporated 1,800 62,548 75,600 Chubb Corporation 10,400 498,918 559,000 CIGNA Corporation 15,500 1,885,778 2,117,687 Citicorp 47,300 4,115,583 4,871,900 Comerica, Incorporated 10,000 427,700 523,750 Contifinancial Corporation 1,700 52,031 61,413 Corestates Financial Corporation 8,300 325,596 430,563 Countrywide Credit Industries, Incorporated 1,000 27,510 28,625 Credit Acceptance Corporation 1,500 35,425 35,250 Crestar Financial Corporation 1,500 83,009 111,563 Crown Northcorp Incorporated 849 - 535 Dean Witter Discover & Company 14,100 692,196 934,125 Dime Bancorp Incorporated 4,000 54,916 59,000 Equifax Incorporated 10,000 289,350 306,250 FHLMC 24,900 1,643,219 2,748,338 Federal National Mortgage Association 138,100 4,149,752 5,196,012 Finova Group Incorporated 900 44,379 57,825 First Hawaiian Incorporated 1,000 35,217 35,000 First Chicago NBD Corporation 11,800 482,239 634,250 First of America Bank Corporation 13,000 703,005 781,625 First Tennessee National Corporation 2,400 73,332 90,000 First USA Incorporated 4,600 126,382 159,275 First Union Corporation 29,700 1,775,971 2,197,800
-24- 21 SCHEDULE I PAGE 8 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- First Virginia Banks Incorporated 1,100 $ 44,479 $ 52,662 Firstar Corporation 2,800 123,774 147,000 Fleet Financial Group Incorporated 9,800 401,334 488,775 General Re Corporation 7,500 1,127,970 1,183,125 Golden West Financial Corporation 2,100 115,829 132,563 Great Western Financial Corporation 4,900 113,268 142,100 Greenpoint Financial Corporation 500 14,280 23,750 Greentree Financial Corporation 17,800 573,593 687,524 H.F. Ahmanson & Company 4,000 95,276 130,000 Hormel Foods Corporation 28,000 756,134 752,500 Household International Incorporated 24,600 2,050,656 2,269,350 ITT Hartford Group Incorporated 7,000 318,701 472,500 J.P. Morgan & Company, Incorporated 10,000 858,961 976,250 Keycorp 51,000 2,567,539 2,575,500 Lehman Brothers Holdings Incorporated 15,600 385,616 489,450 Lincoln National Corporation 5,500 256,783 288,750 Loews Corporation 9,000 791,130 848,250 MBIA Incorporated 2,600 194,221 263,250 MBNA Corporation 171,200 3,975,670 7,029,900 MGIC Investment Corporation 9,300 660,902 706,800 Mark Twain Bancshares 2,400 113,338 117,000 Marsh & McLennan Company's, Incorporated 3,000 280,837 312,000 Mellon Bank Corporation 2,000 135,580 142,000 Mercantile Bankshares Corporation 1,800 47,528 57,600 Mercury Financial Company 6,200 73,583 75,950 Merrill Lynch & Company, Incorporated 70,600 4,028,466 5,753,900 Money Store Incorporated 1,900 51,705 52,487 Morgan Stanley Group Incorporated 68,700 3,185,165 3,924,487 National City Corporation 6,000 247,560 269,250 NationsBank Corporation 17,500 1,227,889 1,710,624 Norwest Corporation 50,400 1,330,578 2,192,400 Ohio Casualty Corporation 2,100 71,528 74,550 PNC Bank Corporation 12,100 373,869 455,262 PMI Group Incorporated 1,900 104,667 105,213 Paine Webber Group Incorporated 12,500 292,379 351,563 Progressive Corporation 15,000 858,969 1,010,625 Providian Corporation 5,700 224,490 292,837 Regions Financial Corporation 2,200 101,902 113,711 Republic New York Corporation 5,100 334,471 416,288 Safeco Corporation 5,900 199,050 232,678 Salomon Incorporated 3,900 167,885 183,788 Charles Schwab Corporation 2,000 49,270 64,000
-25- 22 SCHEDULE I PAGE 9 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Signet Banking Corporation 2,200 $ 63,826 $ 67,650 Southtrust Corporation 3,500 99,791 122,062 St. Paul Companies, Incorporated 5,000 264,213 293,125 Standard Federal Bancorporation Incorporated 1,100 42,691 62,563 TCF Financial Corporation 1,300 42,584 56,550 Torchmark Corporation 3,300 141,031 166,650 Transamerica Corporation 4,100 287,485 323,900 Travelers Group Incorporated 26,000 794,330 1,179,750 U.S. Bancorp 10,000 398,585 449,370 US Life Corporation 2,100 61,104 69,825 Union Planters Corporation 800 24,048 31,200 Wachovia Corporation 10,000 550,662 565,000 Washington Federal Incorporated 1,500 32,050 39,750 Washington Mutual Incorporated 2,600 76,143 112,610 Wilmington Trust Corporation 1,300 43,914 51,350 ----------------- ---------------- Total 59,762,626 75,463,429 ----------------- ---------------- Health Care: ADR Astra AB 19,200 377,864 940,800 Amgen Incorporated 76,300 4,219,882 4,148,812 Bausch & Lomb, Incorporated 4,800 198,286 168,000 C.R. Bard Incorporated 4,800 146,871 134,400 Centocor 5,000 155,050 178,750 Columbia/HCA Healthcare Corporation 161,800 5,190,872 6,593,350 Health Management Associates Incorporated 8,700 196,513 195,750 Humana Incorporated 15,100 366,167 286,900 Johnson & Johnson 71,200 3,531,276 3,542,200 Manor Care, Incorporated 5,300 104,002 143,100 Medtronic, Incorporated 22,800 1,436,664 1,550,400 Novacare Incorporated 20,000 185,111 220,000 Tenet Healthcare Corporation 17,700 379,347 387,187 Transitional Hospitals Corporation 21 - 202 United Healthcare Corporation 29,100 1,373,716 1,309,500 United States Surgical Corporation 9,000 325,626 354,375 Vencor Incorporated 18,000 567,930 569,250 Vivra Incorporated 3,800 105,741 104,975 ----------------- ---------------- Total 18,860,918 20,827,951 ----------------- ----------------
-26- 23 SCHEDULE I PAGE 10 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Leisure Time and Communications: Boyd Gaming Corporation 2,700 $ 39,869 $ 22,275 Carnival Corporation 8,700 220,352 287,100 Circus Circus Enterprises Incorporated 5,300 175,098 182,187 Extended Stay American Incorporated 2,300 33,925 46,288 Harrah's Entertainment Incorporated 5,300 135,825 105,338 Hilton Hotels Corporation 13,900 367,994 364,875 ITT Corporation 5,900 258,946 255,913 International Game Technology 6,300 96,341 114,975 Frontier Corporation 2,100 57,450 47,513 King World Productions Incorporated 27,000 993,127 995,624 MFS Communications Company 20,900 1,043,891 1,139,050 MGM Grand Incorporated 3,000 109,597 104,625 Marriott International 18,100 994,047 1,000,024 Mattel Incorporated 10,000 282,393 277,500 Mirage Resorts Incorporated 7,000 177,246 151,375 Promus Hotel Corporation 7,000 206,570 207,374 TCI Satellite Entertainment Incorporated 2,300 37,028 22,713 Telephone Communications Incorporated 40,525 846,859 1,157,475 Telephone Communications Incorporated 80,800 1,239,459 1,055,410 Time Warner Incorporated 18,300 643,709 686,250 Tribune Company 4,000 332,090 315,500 Walt Disney Company 78,100 5,058,849 5,447,474 ----------------- ---------------- Total 13,350,665 13,986,858 ----------------- ---------------- Machinery: Caterpillar Incorporated 21,900 1,506,045 1,647,974 Cincinnati Milacron Incorporated 1,900 44,764 41,563 Crane Company 8,000 230,993 232,000 Cummins Engine Company 6,900 289,167 317,400 Deere & Company 6,000 251,841 243,000 Foster Wheeler Corporation 2,000 81,473 74,250 Ingersoll-Rand Company 20,100 886,094 894,450 PACCAR Incorporated 600 28,998 40,800 Parker-Hannifin Corporation 3,400 135,099 131,750 Trinova Corporation 1,500 50,153 54,563 ----------------- ---------------- Total 3,504,627 3,677,750 ----------------- ----------------
-27- 24 SCHEDULE I PAGE 11 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Merchandising: Albertson's Incorporated 8,400 $ 298,023 $ 299,250 American Greetings Corporation 14,000 394,433 397,250 American Stores Company 17,000 687,844 694,875 Autozone Incorporated 5,900 159,206 162,250 Best Buy, Incorporated 1,700 38,989 18,063 Borders Group Incorporated 1,300 45,127 46,638 Circuit City Stores, Incorporated 3,900 117,593 117,487 Dayton-Hudson Corporation 29,000 1,123,450 1,138,250 Dollar General Corporation 5,000 163,800 160,000 Federated Department Stores Incorporated 8,400 278,754 286,650 Fruit of the Loom 5,100 131,235 193,163 Gap Incorporated 3,000 91,655 90,375 General Nutrition Companies 3,400 57,879 57,375 Great Atlantic & Pacific Tea Company, Incorporated 33,000 981,795 1,051,875 Home Depot Incorporated 52,000 2,618,233 2,606,500 Kimberly-Clark Corporation 20,000 1,813,212 1,905,000 K-mart Corporation 10,000 106,802 103,750 Kohls Corporation 33,500 1,338,924 1,314,874 J.C. Penney Company, Incorporated 9,100 431,545 443,625 Lands End Incorporated 13,000 344,435 344,500 Limited Incorporated 9,900 201,918 181,912 Lowes Companies Incorporated 16,000 619,952 570,000 Neiman Marcus Group Incorporated 3,000 93,360 76,500 Nine West Group Incorporated 1,500 56,633 69,563 Nordstrom, Incorporated 4,600 191,721 163,010 Safeway Incorporated 4,000 170,048 171,000 Sears, Roebuck and Company 138,200 6,567,875 6,357,200 Tiffany & Company 7,000 248,570 256,375 Toys "R" Us, Incorporated 26,000 764,443 776,750 Wal-Mart Stores, Incorporated 197,000 5,033,955 4,481,750 Woolworth Corporation 39,000 821,827 858,000 ----------------- ---------------- Total 25,993,236 25,393,810 ----------------- ----------------
-28- 25 SCHEDULE I PAGE 12 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Metals: Allegheny Teledyne Incorporated 8,900 $ 179,505 $ 204,700 Aluminum Company of American 9,300 541,121 592,875 Bethlehem Steel Corporation 5,800 68,499 51,475 Coeur D Alene Mines Corporation 23,000 365,426 347,875 Freeport McMoran Cooper & Gold Incorporated 700 19,661 19,688 Inco Limited 600 19,618 19,125 Inland Steel Industries Incorporated 2,600 51,181 52,000 Nucor Corporation 3,900 195,980 198,900 Phelps Dodge Corporation 3,400 221,629 229,500 Reynolds Metals Company 3,500 194,098 197,312 USX-US Steel Group 6,800 199,221 213,350 Worthington Industries, Incorporated 1,200 23,049 21,750 ----------------- ---------------- Total 2,078,988 2,148,550 ----------------- ---------------- Miscellaneous: Anixter International Incorporated 1,900 33,002 30,638 Bemis Company, Incorporated 2,000 67,520 73,750 Caliber Systems Incorporated 1,100 38,428 21,175 Commercial Intertec Corporation 11,000 119,623 149,875 Consolidated Freightways Incorporated 1,300 25,260 28,925 Consolidated Freightways Corporation 700 4,441 6,213 Cooper Industries, Incorporated 9,400 399,588 395,974 Cooper Tire & Rubber Company 2,400 58,007 47,400 Cytec Industries 1,500 38,558 60,938 Eaton Corporation 3,800 221,578 265,050 ITT Industries Incorporated 4,300 89,425 105,350 Jacobs Engineering Group, Incorporated 10,000 235,725 236,250 Minnesota Mining and Manufacturing Company 6,000 393,993 498,000 Newport News Shipbuilding Incorporated 2,300 35,932 34,500 Rockwell International Corporation 8,000 458,698 487,000 Shaw Industries, Incorporated 7,000 107,188 83,125 Tenneco Incorporated 11,500 501,124 518,938 UCAR International Incorporated 300 10,897 11,288 V.F. Corporation 2,700 163,457 182,250 WMX Technology Incorporated 37,700 1,254,643 1,225,250 ----------------- ---------------- Total 4,257,087 4,461,889 ----------------- ----------------
-29- 26 SCHEDULE I PAGE 13 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Office Equipment: Amdahl Corporation 20,000 $ 219,002 $ 242,500 Apple Computer, Incorporated 10,000 249,344 208,750 Applied Magnetics Corporation 4,000 111,160 120,000 Bay Networks Incorporated 4,100 89,023 86,100 Compaq Computer Corporation 86,800 4,519,199 6,455,750 Data General Corporation 2,000 29,020 29,000 Dell Computer Corporation 42,200 2,037,691 2,241,875 EMC Corporation 9,100 180,825 301,437 Gateway 2000 Incorporated 1,000 50,528 53,562 Hewlett-Packard Company 89,100 3,901,228 4,477,275 Honeywell Incorporated 6,000 314,169 394,500 International Business Machines Corporation 29,200 3,653,916 4,423,800 Quantum Corporation 2,200 40,633 62,975 Sterling Software Incorporated 5,000 162,550 158,125 Sun Microsystems Incorporated 44,600 1,124,559 1,145,640 Tandem Computers, Incorporated 14,000 194,390 192,500 ----------------- ---------------- Total 16,877,237 20,593,789 ----------------- ---------------- Pharmaceuticals: ALZA Corporation 5,300 138,159 137,138 American Home Products Corporation 27,900 1,306,632 1,635,638 Biogen Incorporated 4,000 163,074 155,000 Bristol Myers Squibb Company 39,000 3,735,868 4,251,000 Forest Laboratories, Incorporated 2,600 112,395 85,150 Merck & Company Incorporated 90,800 6,073,203 7,229,950 Pfizer Incorporated 95,600 6,461,815 7,934,800 Schering-Plough Corporation 17,800 1,113,258 1,152,550 Warner Lambert Company 19,300 1,077,844 1,447,500 Watson Pharmaceuticals Incorporated 400 16,119 17,975 ----------------- ---------------- Total 20,198,367 24,046,701 ----------------- ----------------
-30- 27 SCHEDULE I PAGE 14 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Printing, Publishing and Paper: Boise Cascade Corporation 3,200 $ 102,377 $ 101,600 Bowater Incorporated 2,600 102,531 97,825 Champion International Corporation 6,500 287,202 281,125 James River Corporation 7,000 214,981 231,875 Longview Fibre Company 7,000 131,320 128,624 Mead Corporation 3,700 197,167 215,062 Potlatch Corporation 9,000 365,715 387,000 Temple Inland Incorporated 3,800 185,862 205,675 Washington Post Company 1,000 322,470 335,124 Weyerhaeuser Company 3,200 146,252 151,600 ----------------- ---------------- Total 2,055,877 2,135,510 ----------------- ---------------- Railroads: Burlington Northern Santa Fe Corporation 27,800 2,343,607 2,401,224 CSX Corporation 10,900 525,928 460,524 Norfolk Southern Corporation 13,500 1,205,986 1,188,000 Union Pacific Corporation 6,800 259,823 408,850 ----------------- ---------------- Total 4,335,344 4,458,598 ----------------- ----------------
-31- 28 SCHEDULE I PAGE 15 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Service Industries: ADR Reuters Holdings PLC 16,100 $ 1,180,844 $ 1,231,650 Cox Communications Incorporated 60,200 1,161,762 1,392,124 Federal Express Corporation 2,000 80,667 89,000 First Data Corporation 56,300 2,190,820 2,054,950 Gannett Company Incorporated 4,000 277,138 299,500 Health Care & Retirement Corporation 3,900 69,626 111,637 Interpublic Group of Companies, Incorporated 10,000 445,100 475,000 John H. Harland Company 2,000 61,698 66,000 Learning Company Incorporated 900 20,037 12,938 Meredith Corporation 10,000 467,725 527,500 Moore Corporation, Limited 10,000 176,350 205,000 National Service Industries, Incorporated 9,000 355,534 336,374 Oxford Health Plans Incorporated 16,100 714,197 942,847 R.R. Donnelley & Sons Company 5,700 198,059 178,837 Ryder System, Incorporated 2,600 73,923 73,125 Service Corporation International 9,000 129,714 252,000 Thermo Instrument Systems, Incorporated 2,000 62,520 66,250 ----------------- ---------------- Total 7,665,714 8,314,732 ----------------- ----------------
- 32 - 29 SCHEDULE I PAGE 16 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Technology: 360 Communications Company 700 $ 16,404 $ 16,275 ADR Ericsson L.M. Telephone Company 55,330 1,180,205 1,670,246 Applied Materials, Incorporated 5,500 175,372 197,654 Ascend Communications Incorporated 7,900 569,875 490,787 Autodesk Incorporated 1,300 40,880 36,400 BMC Software Incorporated 2,000 81,603 82,750 CISCO Systems Incorporated 138,600 6,272,571 8,818,424 Computer Associates International, Incorporated 6,400 333,373 318,400 Electronic Data Systems Corporation 19,400 904,525 839,050 Gartner Group Incorporated 10,000 345,575 389,370 General Instrument Corporation 6,900 170,085 150,074 Harris Corporation 1,500 92,373 102,938 Intel Corporation 136,700 10,163,581 17,899,087 Lucent Technologies Incorporated 40,600 1,922,369 1,877,750 Microsoft Corporation 102,800 4,900,365 8,493,850 National Semiconductor Corporation 4,800 77,088 117,600 Netscape Communications Corporation 18,700 918,643 1,063,562 Molex Incorporated 1,700 50,464 60,562 Northern Telecom Limited 10,000 556,940 618,750 Oracle Corporation 42,100 1,580,555 1,757,674 Paging Network Incorporated 4,600 92,138 70,150 Parametric Technology Corporation 2,000 103,895 102,750 Perkin-Elmer Corporation 4,100 217,067 241,387 Scientific-Atlanta, Incorporated 300 4,480 4,500 Stratus Computer Incorporated 8,000 194,080 218,000 Symbol Technologies, Incorporated 2,000 85,570 88,500 Tektronix, Incorporated 4,000 165,040 205,000 Texas Instruments Incorporated 13,400 803,504 854,250 Thermo Electron Corporation 2,000 79,723 82,500 Three Com Corporation 21,100 1,113,318 1,548,213 Universal Corporation 8,000 218,080 257,000 VLSI Technology, Incorporated 7,000 130,004 167,125 Xerox Corporation 29,700 1,499,735 1,562,992 ----------------- ---------------- Total 35,059,480 50,403,570 ----------------- ----------------
- 33 - 30 SCHEDULE I PAGE 17 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Utilities: ADR British Telecommunications 7,000 $ 416,740 $ 480,374 Airtouch Communications Incorporated 281,000 7,798,453 7,095,250 Allegheny Power System, Incorporated 3,200 94,992 97,200 American Electric Power Company, Incorporated 56,000 2,355,562 2,303,000 American Water Works Company, Incorporated 2,000 39,520 41,250 Ameritech Corporation 33,600 1,881,626 2,037,000 AT&T Corporation 81,000 3,057,537 3,562,733 Baltimore Gas and Electric Company 3,400 92,750 90,950 Bell Atlantic Corporation 10,800 665,440 699,300 BellSouth Corporation 86,000 3,434,396 3,483,000 Carolina Power & Light Company 2,000 70,423 73,000 Cascade Communications Corporation 22,500 1,607,313 1,240,312 Century Telephone Enterprises, Incorporated 1,000 33,010 30,875 Cinergy Corporation 4,100 138,668 136,837 Columbia Gas System, Incorporated 2,400 113,844 152,700 Comcast Corporation 16,700 294,051 297,460 Consolidated Edison Company of New York, Incorporated 7,900 226,301 230,087 Consolidated Natural Gas Company 1,400 79,484 77,350 Dominion Resources Incorporated 5,200 190,535 200,200 DTE Energy Company 3,900 112,365 126,262 Edison International 64,000 1,097,782 1,272,000 El Paso Natural Gas Company 1 22 25 GTE Corporation 65,200 2,703,569 2,958,450 Idaho Power Company 4,000 120,160 124,500 Illinova Corporation 10,000 265,100 275,000 MCI Communications Corporation 20,300 456,041 663,545 New England Electric System 1,900 64,518 66,263 Nipsco Industry Incorporated 3,000 112,960 118,874 Northeast Utilities 3,900 38,834 51,187 Northern States Power Company 4,000 184,287 183,500 Nynex Corporation 11,000 506,869 529,374 P P & L Res Incorporated 1,500 35,941 34,500 Pacific Gas & Electric 12,500 299,879 262,500 Panenergy Corporation 10,500 383,469 472,500 Pinnacle West Capital Corporation 2,600 72,778 82,550 Portland General Corporation 2,500 84,234 105,000 Potomac Electric Power Company 1,200 29,656 30,900 Puget Sound Power and Light Company 3,000 70,185 72,000 SBC Communications Incorporated 10,900 533,851 565,437 Seagull Energy Corporation 4,000 86,980 88,000
- 34 - 31 SCHEDULE I PAGE 18 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN DIVERSIFIED PORTFOLIO FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------ ---------------- ---------------- Southern Company 18,600 $ 423,256 $ 420,825 Sprint Corporation 10,900 446,394 434,638 Texas Utilities Company 23,000 938,375 937,250 Tuscon Electric Power Company 10,000 195,100 165,000 U.S. West Incorporated-COM-MEDIA Group 22,900 409,454 420,787 U.S. West Communications Group 14,400 434,418 464,400 Unicom Corporation 54,000 1,466,328 1,464,750 Union Electric Company 1,000 37,510 38,500 Viacom 13,300 524,284 463,838 Worldcom Incorporated 57,100 1,395,042 1,488,139 ----------------- ---------------- Total 36,120,286 36,709,372 ----------------- ---------------- Total Common Stocks 357,529,432 422,697,707 ----------------- ---------------- PREFERRED STOCK MLP Lakehead Pipe Line Partners L.P. 4,000 121,539 138,000 TEMPORARY INVESTMENTS The Northern Trust Company Collective Short-Term Investment Fund 3,575,191 3,575,191 3,575,191 INCOME RECEIVABLE 904,060 904,060 ----------------- ---------------- TOTAL DIVERSIFIED PORTFOLIO FUND $ 362,130,222 $ 427,314,958 ================= ================ PROPORTIONATE INTEREST $ 301,969,598 $ 352,149,275 ================= ================
- 35 - 32 SCHEDULE I PAGE 19 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN FIXED INCOME FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
INTEREST RATE AS OF DECEMBER 31, MATURITY CURRENT 1996 DATE COST VALUE ------------- ------------- ------------------ ----------------- GUARANTEED INVESTMENT CONTRACTS: Aetna Life Insurance Company 10.00% 1/3/00 $ 84,966,893 $ 90,651,000 The Prudential Insurance Company of America 10.25% 7/5/99 55,597,953 59,828,000 The Prudential Insurance Company of America 9.92% 5/1/98 83,091,023 87,082,000 The Prudential Insurance Company of America 9.65% 8/31/00 41,250,835 45,953,000 The Prudential Insurance Company of America 9.80% 8/31/00 61,904,532 69,248,000 The Travelers Insurance Company 8.15% 2/1/98 1,793,847 2,270,000 The Travelers Insurance Company 9.26% 2/1/98 1,260,529 1,600,000 Aetna Life and Casualty Company 7.10% Open 280,696,038 291,300,000 Metropolitan Life Insurance Company 7.33% Open 272,766,951 284,900,000 Metropolitan Life Insurance Company 6.91% Open 279,597,276 283,800,000 The Prudential Insurance Company of America 6.84% Open 276,963,064 279,600,000 ------------------ ----------------- Total Guaranteed Investment Contracts 1,439,888,941 1,496,232,000 ------------------ ----------------- TEMPORARY INVESTMENTS The Northern Trust Company Collective Short-Term Investment Fund 4,765,949 4,765,949 INCOME RECEIVABLE 16,785 16,785 ------------------ ----------------- TOTAL FIXED INCOME FUND $ 1,444,671,675 $ 1,501,014,734 ================== ================= PROPORTIONATE INTEREST $ 1,208,000,753 $ 1,255,348,014 ================== =================
- 36 - 33 SCHEDULE I PAGE 20 OF 20 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN SPECIAL DISTRIBUTION FUND COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE ------------- ------------------ ----------------- SPECIAL DISTRIBUTION FUND: The Northern Trust Company Collective Short-Term Investment Fund 27,930,447 $ 27,930,447 $ 27,930,447 INCOME RECEIVABLE 127,149 127,149 ------------------ ----------------- TOTAL SPECIAL DISTRIBUTION FUND $ 28,057,596 $ 28,057,596 ================== ================= PROPORTIONATE INTEREST $ 20,387,809 $ 20,387,809 ================== =================
- 37 - EX-99.E 3 FORM 11-K RE: HOURLY EMPLOYEES SAVINGS/STOCK PLAN 1 =============================================================================== ANNUAL EXHIBIT 99(e) TO ANNUAL REPORT ON FORM 10-K OF GENERAL DYNAMICS CORPORATION SEC FILE NO. 1-3671 ----------------- SECURITIES AND EXCHANGE COMMISION WASHINGTON, D.C. 20549 ----------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 19(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996 A. Full title of the Plan and the address of the Plan, if different from the issuer named below: GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN B. Name of the issuer of the securities held pursuant to the Plan and the address of the principal executive office: GENERAL DYNAMICS CORPORATION 3190 FAIRVIEW PARK DRIVE FALLS CHURCH, VIRGINIA 23042-4523 - 1 - 2 GENERAL DYNAMICS CORPORATION INDEX OF FINANCIAL STATEMENTS AND EXHIBITS Pages of this Form 11-K (a) FINANCIAL STATEMENTS Report of Independent Public Accountants 6 Statements of Net Assets Available for Benefits, December 31, 1996 and 1995 7-8 Statement of Changes in Net Assets Available for Benefits, Fiscal Year Ended December 31, 1996 9 Notes to Financial Statements 10-13 Schedule I - Combined Statement of Investments in Master Trust Funds 14-34 (b) SIGNATURE 3 (c) EXHIBITS Consent of Independent Public Accountants 4 - 2 - 3 SIGNATURE Pursuant to the requirements of the Securities and 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 17, 1997 - 3 - 4 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 17, 1997 - 4 - 5 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995 TOGETHER WITH AUDITORS' REPORT - 5 - 6 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, 1996 and 1995, and the related statement of changes in net assets available for benefits for the year ended December 31, 1996. 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, 1996 and 1995, and the changes in its net assets available for benefits for the year ended December 31, 1996, 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. Arthur Andersen LLP June 17, 1997 - 6 - 7 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1996
FUNDS ----------------------------------- COMPANY GOVERNMENT TOTAL STOCK BONDS ------------- ---------------- ----------------- ASSETS: Investment in common stock of General Dynamics Corporation, at market value - 686,858 shares (Cost $22,002,484) Participant-directed $ 39,427,345 $39,427,345 $ - Non-participant-directed 9,167,893 9,167,893 - Investments in securities of unaffiliated issuers, at market value- U.S. Government bonds (Cost $67,704,172) 68,889,380 - 68,889,380 Other securities (Cost $67,830,411) 82,835,470 - - Guaranteed investment contracts, at fair value (Cost $236,670,922) 245,666,720 - - Loans receivable (payable) 1,271,045 (5,076) 1,455 Amounts receivable (payable) from General Dynamics Corporation (606,271) (133,202) (86,638) ------------ ----------- ----------- Total Assets 446,651,582 48,456,960 68,804,197 ------------ ----------- ----------- LIABILITIES: Fund transfers 3,008 78,562 453,805 Administrative fees payable 116,582 9,764 15,471 Loans payable (receivable) - 1,040 8,415 ------------ ----------- ----------- Total Liabilities 119,590 89,366 477,691 ------------ ----------- ----------- Net Assets Available for Benefits $446,531,992 $48,367,594 $68,326,506 ============ =========== ===========
FUNDS -------------------------------------------------------------- DIVERSIFIED FIXED SPECIAL PORTFOLIO INCOME DISTRIBUTION LOAN ---------------- ------------- ----------------- ---------- ASSETS: Investment in common stock of General Dynamics Corporation, at market value - 686,858 shares (Cost $22,002,484) Participant-directed $ - $ - $ - $ - Non-participant-directed - - - - Investments in securities of unaffiliated issuers, at market value- U.S. Government bonds (Cost $67,704,172) - - - - Other securities (Cost $67,830,411) 75,165,683 - 7,669,787 - Guaranteed investment contracts, at fair value (Cost $236,670,922) - 245,666,720 - - Loans receivable (payable) 2,501 4,423 - 1,267,742 Amounts receivable (payable) from General Dynamics Corporation (125,345) (261,086) - - ------------ ------------ ----------- ---------- Total Assets 75,042,839 245,410,057 7,669,787 1,267,742 ------------ ------------ ----------- ---------- LIABILITIES: Fund transfers (77,203) (458,792) 6,636 - Administrative fees payable 46,605 43,824 918 - Loans payable (receivable) 35,709 17,040 3,096 (65,300) ------------ ------------ ----------- ---------- Total Liabilities 5,111 (397,928) 10,650 (65,300) ------------ ------------ ----------- ---------- Net Assets Available for Benefits $ 75,037,728 $245,807,985 $ 7,659,137 $1,333,042 ============ ============ =========== ==========
The accompanying notes are an integral part of these financial statements. - 7 - 8 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1995
FUNDS ----------------------------------------------- COMPANY GOVERNMENT DIVERSIFIED TOTAL STOCK BONDS PORTFOLIO ----------- ------------- ---------------- --------------- 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 ============= =========== =========== ===========
FUNDS --------------------------------------------------- FIXED SPECIAL INCOME DISTRIBUTION LOAN --------------- ------------------- ----------- 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 ============= ========== ==========
The accompanying notes are an integral part of these financial statements. - 8 - 9 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1996
FUNDS ------------------------------------------------- COMPANY STOCK --------------------------------- NON- PARTICIPANT- PARTICIPANT- GOVERNMENT TOTAL DIRECTED DIRECTED BONDS --------------- -------------- ---------------- ------------- INVESTMENT INCOME: Dividends $ 2,455,081 $ 978,787 $ 193,167 $ - Interest 23,681,855 21,806 4,304 4,402,174 -------------- ----------- ----------- -------------- 26,136,936 1,000,593 197,471 4,402,174 ADD (DEDUCT)- NET REALIZED AND UNREALIZED GAIN (LOSS) ON ASSETS 13,751,377 6,886,898 1,359,156 (936,531) ROLLOVER CONTRIBUTIONS 1,076 - - 359 DEPOSITS BY PARTICIPANTS 11,603,913 1,430,776 - 1,488,586 CONTRIBUTIONS BY GENERAL DYNAMICS CORPORATION 5,472,494 325,787 978,234 610,554 LOAN REPAYMENTS 87,276 315,606 - 97,430 LOANS ISSUED - (38,143) - (103,415) TRANSFER BETWEEN INVESTMENT FUNDS (3,008) (691,567) - (1,556,797) DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (75,161,832) (9,044,473) (987,307) (13,913,150) PLAN EXPENSES (1,015,909) (93,252) - (148,625) -------------- ----------- ----------- -------------- Net increase (decrease) (19,127,677) 92,225 1,547,554 (10,059,415) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 465,659,669 39,092,868 7,634,947 78,385,921 -------------- ----------- ----------- -------------- End of year $ 446,531,992 $39,185,093 $ 9,182,501 $ 68,326,506 ============== =========== =========== ==============
FUNDS ----------------------------------------------------------------- DIVERSIFIED FIXED SPECIAL PORTFOLIO INCOME DISTRIBUTION LOAN ----------------- ------------ ---------------- -------- INVESTMENT INCOME: Dividends $ 1,283,127 $ - $ - $ - Interest 52,636 18,750,309 450,626 - ------------ ------------ ----------- ---------- 1,335,763 18,750,309 450,626 - ADD (DEDUCT)- NET REALIZED AND UNREALIZED GAIN (LOSS) ON ASSETS 14,183,487 (7,741,633) - - ROLLOVER CONTRIBUTIONS 717 - - - DEPOSITS BY PARTICIPANTS 2,353,561 6,330,990 - - CONTRIBUTIONS BY GENERAL DYNAMICS CORPORATION 943,929 2,613,990 - - LOAN REPAYMENTS 147,424 269,309 - (742,493) LOANS ISSUED (226,393) (371,089) (38,160) 777,200 TRANSFER BETWEEN INVESTMENT FUNDS 349,505 2,008,744 (112,893) - DISTRIBUTIONS TO WITHDRAWN PARTICIPANTS (11,442,850) (37,608,844) (1,756,008) (409,200) PLAN EXPENSES (298,789) (459,398) (15,845) - ------------ ------------ ----------- ---------- Net increase (decrease) 7,346,354 (16,207,622) (1,472,280) (374,493) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 67,691,374 262,015,607 9,131,417 1,707,535 ------------ ------------ ----------- ---------- End of year $ 75,037,728 $245,807,985 $ 7,659,137 $1,333,042 ============ ============ =========== ==========
The accompanying notes are an integral part of these financial statements. - 9 - 10 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995 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. 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 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 - 10 - 11 bargaining agreements are reflected as participant-directed investments. With the exception of the Company Stock Fund, all other investment funds are completely participant-directed. All non-union plan members and certain members covered by collective bargaining agreements with the Company become fully vested in all investments purchased with Company contributions upon the earlier of completion of five years of continuous service with the Company or death, retirement, layoff (for four consecutive weeks), permanent or total disability or involuntary entry into military service. Certain plan members covered by various collective bargaining agreements are eligible to make additional matched and unmatched contributions to the Plan. These additional contributions may not exceed the maximum percentages of base earnings specified in the collective bargaining agreements. The Plan provides that any special distributions payable to non-union members with respect to Company Stock allocated to participant accounts would be credited to the participants' Special Distribution Fund, rather than being automatically reinvested in additional shares of Company Stock. Participants are entitled to transfer amounts credited to their accounts in the Special Distribution Fund to other investment funds. Special distributions include all proceeds received from tenders or sales of Company Stock and other distributions, except regular quarterly dividends which would continue to be invested in Company Stock. Funds credited to these accounts in the Special Distribution Fund would be invested in high quality securities. The Company has negotiated similar changes in the Plan as applicable to unionized employees with those employees' collective bargaining units. In addition, the Plan was amended to permit non-union participants who have shares of Company Stock allocated to their accounts to direct the trustee with respect to tender of shares pursuant to any Company Stock repurchase program or tender offer. Any proceeds realized from such share repurchase will be treated as a Special Distribution. Similar changes have been negotiated with respect to unionized employees in the Plan. 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. 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. - 11 - 12 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. All of the above Funds may hold a small cash balance for purpose of liquidity and expense control. During June 1997, the Company extended the investment options for plan participants. Two of the options offered in 1996 will remain available to participants: the Company Stock Fund and the Fixed Income Fund. The new options include: Bond Index Fund, Balanced Fund, S&P 500 Stock Index Fund, International Index Fund and Small Cap Index Fund. These investment options will offer participants the opportunity to invest in a broader range of the risk/return spectrum for actively traded securities. Description of the new options include: a) Bond Index Fund - Includes investments in government, mortgage-backed and asset-backed securities. The Fund also invests in high quality bonds. b) Balanced Fund - The Fund is mixed portfolio of commingled stocks and bond funds. The Fund is made up of international equities, U.S. large cap equities, fixed income securities, U.S. small cap equities, and a small cash balance. c) S&P 500 Stock Index Fund - The Fund invests in 500 U.S. common stocks constructed by Standard & Poor's. It may also hold 2%-5% of its value in S&P 500 futures contracts. d) International Index Fund - The Fund invests in over 1,000 stocks in major markets outside the United States and Canada. Investments are made in all stocks in the MSCI EAFE Index in approximate proportion to the weighing in the Index. e) Small Cap Index Fund - The Fund invests in all 2,000 stocks in the Russell 2000 Index in proportion to their weighing in the Index. The Russell Index represents the smallest two-thirds of the 3,000 largest U.S. companies. 3. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates. 4. The accompanying financial statements are prepared on the accrual basis of accounting. 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 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 - 12 - 13 statements represents the Plan's proportionate interest in the reported market value of the assets in the Master Trust Fund. Investment income and net realized and unrealized gains or losses are allocated to the respective plans based on their proportionate interest, at market value, in the Master Trust Fund. Administrative expenses are primarily paid by the Plan although certain administrative functions are performed by employees of the Company. Although no costs were reimbursed by the Company in 1996, the Plan document provides that these costs may be reimbursed by the Company. 8. 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, 1996 and 1995, amounts payable on withdrawals and distributions were $8,898,407 and $14,257,541, respectively. In addition, on the Statement of Changes in Net Assets Available for Benefits, 1996 distributions to withdrawn participants would have been $69,802,698 instead of $75,161,832 if the December 31 amounts payable on withdrawals and distributions had been included. 9. Most investments held by the Plan are recorded at quoted market value as stated on public exchanges as of December 31, 1996 and 1995. The Company values its guaranteed investment contracts in accordance with AICPA 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 effects of recognizing the fair values based on the discounted cash flow method resulted in a net realized and unrealized loss of approximately $7 million during 1996 and a gain of approximately $16 million in 1995. - 13 - 14 SCHEDULE I GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN COMBINED STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1996 - 14 - 15 SCHEDULE I PAGE 1 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ COMPANY STOCK FUND: Investment in common stock of General Dynamics Corporation 5,923,123 $ 168,743,683 $ 419,069,977 =================== ================== PROPORTIONATE INTEREST 686,858 $ 22,002,484 $ 48,595,238 =================== ================== LOANS RECEIVABLE (prime rate, December 31, 1996 - 8.25%): N/A $ 16,401,791 $ 16,401,791 =================== ================== PROPORTIONATE INTEREST N/A $ 1,271,045 $ 1,271,045 =================== ==================
- 15 - 16 SCHEDULE I PAGE 2 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ GOVERNMENT BONDS FUND: U.S. Treasury Notes U.S. Treasury Notes 5.875% due April 30, 1998 30,000,000 $ 30,103,125 $ 30,046,800 U.S. Treasury Notes 4.75% due August 31, 1998 26,600,000 25,877,533 26,147,002 U.S. Treasury Notes 4.75% due October 31, 1998 3,400,000 3,337,313 3,335,196 U.S. Treasury Notes 5.875% due October 31, 1998 30,000,000 30,024,937 29,995,200 U.S. Treasury Notes 5.50% due November 15, 1998 30,000,000 29,948,438 29,798,400 U.S. Treasury Notes 8.875% due November 15, 1998 30,000,000 31,589,063 31,565,700 U.S. Treasury Notes 7.50% due October 31, 1999 12,100,000 12,565,092 12,549,999 ------------------- ------------------ Total U.S. Treasury Notes 163,445,501 163,438,297 ------------------- ------------------ Temporary Investments The Northern Trust Company Collective Short-Term Investment Fund 548,050 548,050 548,050 Income Receivable 2,606,926 2,606,926 ------------------- ------------------ TOTAL GOVERNMENT BONDS FUND $ 166,600,477 $ 166,593,273 =================== ================== PROPORTIONATE INTEREST $ 67,704,172 $ 68,889,380 =================== ==================
- 16 - 17 SCHEDULE I PAGE 3 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ COMMON STOCKS: Aerospace: Allied Signal Incorporated 20,800 $ 664,108 $ 1,393,600 Boeing Company 42,200 3,560,371 4,494,300 Coltec Industries Incorporated 2,200 39,994 41,525 Lockheed Martin Corporation 14,300 1,083,329 1,308,450 McDonnell Douglas Corporation 18,300 744,471 1,200,937 Northrop Gruman Corporation 2,300 164,356 190,325 Precision Castparts Corporation 100 4,934 4,963 Raytheon Company 5,200 116,862 250,250 Sundstrand Corporation 1,000 38,040 42,500 Textron, Incorporated 4,000 326,794 377,000 United Technologies Corporation 30,000 1,781,555 1,987,500 ------------------- ------------------ Total 8,524,814 11,291,350 ------------------- ------------------ Airlines: AMR Corporation 2,900 250,091 255,563 KLM Royal Dutch Airlines 77,615 2,373,917 2,163,517 Northwest Airlines Corporation 100,800 3,388,771 3,943,800 Southwest Airlines Corporation 4,600 128,522 101,200 UAL Corporation 92,800 2,689,490 5,800,000 U.S. Air Group 4,000 82,540 93,500 ------------------- ------------------ Total 8,913,331 12,357,580 ------------------- ------------------ Automotive: Arvin Industries, Incorporated 25,000 593,475 618,750 Chrysler Corporation 161,300 5,159,221 5,322,900 Ford Motor Company 35,900 1,022,744 1,157,774 General Motors Corporation 64,400 3,241,310 3,590,300 General Motors Corporation, Class H 21,000 1,158,997 1,181,250 Illinois Tool Works Incorporated 1,000 71,665 79,875 Lear Corporation 1,900 64,876 64,838 Modine Manufacturing Company 1,700 46,137 45,475 Snap-On Incorporated 2,000 62,140 71,250 ------------------- ------------------ Total 11,420,565 12,132,412 ------------------- ------------------
- 17 - 18 SCHEDULE I PAGE 4 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Building: Centex Corporation 25,000 $ 822,671 $ 940,625 Fleetwood Enterprises, Incorporated 12,000 392,415 330,000 Johnson Controls, Incorporated 4,100 287,600 339,787 Louisiana-Pacific Corporation 5,100 118,881 107,738 Owens Corning 3,800 155,633 161,975 USG Corporation 2,300 60,326 77,913 ------------------- ------------------ Total 1,837,526 1,958,038 ------------------- ------------------ Chemicals: Air Products and Chemicals, Incorporated 3,500 197,960 241,937 Albermarle Corporation 3,700 65,153 67,063 Avery Dennison Corporation 18,000 537,590 636,750 Crompton & Knowles Corporation 2,400 37,944 46,200 Dow Chemical Company 29,400 2,412,080 2,304,225 DuPont, (E.I) DeNemours & Company 39,900 2,919,457 3,755,587 Eastman Kodak Company 10,000 730,274 802,500 Ecolab Incorporated 2,100 68,368 79,013 Georgia Gulf Corporation 1,100 33,341 29,563 Lyondell Petrochemical Company 2,600 62,881 57,525 Monsanto Company 2,000 83,030 77,750 Praxair Incorporated 1,000 47,135 46,125 Rohm & Haas Company 11,000 758,335 897,875 Tyco International Limited 24,700 1,027,780 1,306,012 Union Carbide Corporation 4,800 206,112 196,200 Wellman Incorporated 1,400 36,496 23,975 ------------------- ------------------ Total 9,223,936 10,568,300 ------------------- ------------------
- 18 - 19 SCHEDULE I PAGE 5 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Consumer Goods: ADR Unilever NV 15,500 $ 2,394,161 $ 2,716,375 Anheuser-Busch Companies Incorporated 8,300 316,896 332,000 Avon Products, Incorporated 17,100 816,160 976,838 Black & Decker Corporation 6,400 225,757 192,800 Campbell Soup Company 24,100 1,880,521 1,934,024 Coca Cola Company 107,200 5,258,999 5,641,400 Colgate-Palmolive Company 3,100 251,796 285,975 Conagra Incorporated 8,000 372,080 398,000 CPC International Incorporated 5,800 308,593 449,500 Darden Restaurants Incorporated 20,000 172,309 175,000 Dean Foods Company 10,000 298,850 322,500 Emerson Electric Company 14,000 1,359,337 1,356,250 General Electric Company 78,100 5,752,942 7,722,137 General Mills, Incorporated 17,400 1,073,317 1,107,075 Gillette Company 3,000 165,591 233,250 Hershey Foods Corporation 3,000 127,902 131,250 International Flavors & Fragrances Incorporated 5,200 249,093 234,000 Kellogg Company 8,900 629,932 584,063 Maytag Corporation 12,000 253,456 237,000 McDonalds Corporation 5,700 196,283 258,638 Nabisco Holdings Corporation 3,000 110,465 116,625 Pepsico, Incorporated 124,200 3,210,397 3,632,850 Philip Morris Companies Incorporated 139,700 10,570,257 15,786,100 Pioneer Hi-Bred International, Incorporated 3,000 193,155 210,000 Procter & Gamble Company 54,700 4,239,327 5,887,087 Ralston-Ralston Purina Group 25,700 1,645,427 1,885,737 Rubbermaid Incorporated 10,900 256,272 246,613 Ruby Tuesday Incorporated 10,000 200,593 187,500 Sara Lee Corporation 2,900 94,069 108,025 Sensormatic Electronics Corporation 2,900 51,634 48,575 TSL Holdings Incorporated 330 - 1 W.W. Grainger, Incorporated 2,600 165,835 208,650 Whirlpool Corporation 5,400 263,253 251,775 ------------------- ------------------ Total 43,104,659 53,857,613 ------------------- ------------------ Energy: ADR British Petroleum 2,100 275,772 296,888 Amerada Hess Corporation 5,000 276,925 289,375 Amoco Corporation 400 29,174 32,250
- 19 - 20 SCHEDULE I PAGE 6 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Anadarko Petroleum Corporation 1,700 $ 77,823 $ 110,075 Ashland Incorporated 1,700 59,860 74,588 Atlantic Richfield Company 13,000 1,584,755 1,722,500 Baker Hughes Incorporated 28,900 907,292 997,050 Burlington Resources Incorporated 17,000 889,670 856,375 Chevron Corporation 36,200 2,115,962 2,353,000 Cooper Cameron Corporation 700 13,284 53,550 Dresser Industries Incorporated 1,000 29,268 31,000 Enron Corporation 12,300 391,152 530,437 Exxon Corporation 63,300 5,408,083 6,203,400 Halliburton Company 5,000 306,925 301,250 Input/Output Incorporated 1,300 47,203 24,050 Kerr-McGee Corporation 10,000 652,600 720,000 Mobil Corporation 11,600 1,331,783 1,418,100 Murphy Oil Corporation 8,000 384,455 447,856 Oryx Energy Company 8,000 161,830 198,000 Phillips Petroleum Company 16,500 691,470 730,125 Pogo Producing Company 900 30,767 42,525 Ranger Oil Limited 8,000 66,080 79,000 Royal Dutch Petroleum Company 28,100 3,737,958 4,798,074 Schlumberger Limited 14,900 1,398,753 1,488,137 Smith International, Incorporated 1,100 32,241 49,363 Texaco, Incorporated 30,900 2,613,051 3,032,062 Tidewater, Incorporated 5,000 206,985 226,250 Tosco Corporation 1,200 61,794 94,950 Ultramar-Diamond Shamrock Corporation 2,000 51,356 63,250 Union Pacific Resources Group Incorporated 5,700 124,478 165,300 Union Tex Pete Holdings Incorporated 12,000 226,620 268,500 Western Atlas Incorporated 3,000 198,780 212,625 ------------------- ------------------ Total 24,384,149 27,909,905 ------------------- ------------------
- 20 - 21 SCHEDULE I PAGE 7 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Financial Services & Insurance: A.G. Edwards Incorporated 2,200 $ 52,681 $ 73,975 Advanta Corporation 900 40,611 36,788 AMBAC Incorporated 7,700 395,421 511,088 Allstate Corporation 13,000 668,076 752,375 American General Corporation 11,500 427,211 470,063 American International Group, Incorporated 35,650 3,329,013 3,859,112 American Express Company 18,000 969,930 1,017,000 Banc One Corporation 24,300 916,498 1,044,900 Bancorporation Hawaii Incorporated 5,500 201,374 231,000 Bank of Boston Corporation 1,000 55,727 64,250 Bankamerica Corporation 27,000 1,881,577 2,693,250 Barnett Banks Incorporated 11,800 458,739 485,275 Bear Stearns & Companies, Incorporated 4,400 101,884 122,650 Beneficial Corporation 2,000 113,270 126,750 Boatmen's Bancshares, Incorporated 7,300 443,808 470,850 Case Corporation 5,000 222,491 272,500 Central Fidelity Banks, Incorporated 2,200 50,977 56,650 Charter One Financial Incorporated 1,800 62,548 75,600 Chubb Corporation 10,400 498,918 559,000 CIGNA Corporation 15,500 1,885,778 2,117,687 Citicorp 47,300 4,115,583 4,871,900 Comerica, Incorporated 10,000 427,700 523,750 Contifinancial Corporation 1,700 52,031 61,413 Corestates Financial Corporation 8,300 325,596 430,563 Countrywide Credit Industries, Incorporated 1,000 27,510 28,625 Credit Acceptance Corporation 1,500 35,425 35,250 Crestar Financial Corporation 1,500 83,009 111,563 Crown Northcorp Incorporated 849 - 535 Dean Witter Discover & Company 14,100 692,196 934,125 Dime Bancorp Incorporated 4,000 54,916 59,000 Equifax Incorporated 10,000 289,350 306,250 FHLMC 24,900 1,643,219 2,748,338 Federal National Mortgage Association 138,100 4,149,752 5,196,012 Finova Group Incorporated 900 44,379 57,825 First Hawaiian Incorporated 1,000 35,217 35,000 First Chicago NBD Corporation 11,800 482,239 634,250 First of America Bank Corporation 13,000 703,005 781,625 First Tennessee National Corporation 2,400 73,332 90,000 First USA Incorporated 4,600 126,382 159,275 First Union Corporation 29,700 1,775,971 2,197,800
- 21 - 22 SCHEDULE I PAGE 8 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ First Virginia Banks Incorporated 1,100 $ 44,479 $ 52,662 Firstar Corporation 2,800 123,774 147,000 Fleet Financial Group Incorporated 9,800 401,334 488,775 General Re Corporation 7,500 1,127,970 1,183,125 Golden West Financial Corporation 2,100 115,829 132,563 Great Western Financial Corporation 4,900 113,268 142,100 Greenpoint Financial Corporation 500 14,280 23,750 Greentree Financial Corporation 17,800 573,593 687,524 H.F. Ahmanson & Company 4,000 95,276 130,000 Hormel Foods Corporation 28,000 756,134 752,500 Household International Incorporated 24,600 2,050,656 2,269,350 ITT Hartford Group Incorporated 7,000 318,701 472,500 J.P. Morgan & Company, Incorporated 10,000 858,961 976,250 Keycorp 51,000 2,567,539 2,575,500 Lehman Brothers Holdings Incorporated 15,600 385,616 489,450 Lincoln National Corporation 5,500 256,783 288,750 Loews Corporation 9,000 791,130 848,250 MBIA Incorporated 2,600 194,221 263,250 MBNA Corporation 171,200 3,975,670 7,029,900 MGIC Investment Corporation 9,300 660,902 706,800 Mark Twain Bancshares 2,400 113,338 117,000 Marsh & McLennan Company's, Incorporated 3,000 280,837 312,000 Mellon Bank Corporation 2,000 135,580 142,000 Mercantile Bankshares Corporation 1,800 47,528 57,600 Mercury Financial Company 6,200 73,583 75,950 Merrill Lynch & Company, Incorporated 70,600 4,028,466 5,753,900 Money Store Incorporated 1,900 51,705 52,487 Morgan Stanley Group Incorporated 68,700 3,185,165 3,924,487 National City Corporation 6,000 247,560 269,250 NationsBank Corporation 17,500 1,227,889 1,710,624 Norwest Corporation 50,400 1,330,578 2,192,400 Ohio Casualty Corporation 2,100 71,528 74,550 PNC Bank Corporation 12,100 373,869 455,262 PMI Group Incorporated 1,900 104,667 105,213 Paine Webber Group Incorporated \12,500 292,379 351,563 Progressive Corporation 15,000 858,969 1,010,625 Providian Corporation 5,700 224,490 292,837 Regions Financial Corporation 2,200 101,902 113,711 Republic New York Corporation 5,100 334,471 416,288 Safeco Corporation 5,900 199,050 232,678 Salomon Incorporated 3,900 167,885 183,788 Charles Schwab Corporation 2,000 49,270 64,000
- 22 - 23 SCHEDULE I PAGE 9 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Signet Banking Corporation 2,200 $ 63,826 $ 67,650 Southtrust Corporation 3,500 99,791 122,062 St. Paul Companies, Incorporated 5,000 264,213 293,125 Standard Federal Bancorporation Incorporated 1,100 42,691 62,563 TCF Financial Corporation 1,300 42,584 56,550 Torchmark Corporation 3,300 141,031 166,650 Transamerica Corporation 4,100 287,485 323,900 Travelers Group Incorporated 26,000 794,330 1,179,750 U.S. Bancorp 10,000 398,585 449,370 US Life Corporation 2,100 61,104 69,825 Union Planters Corporation 800 24,048 31,200 Wachovia Corporation 10,000 550,662 565,000 Washington Federal Incorporated 1,500 32,050 39,750 Washington Mutual Incorporated 2,600 76,143 112,610 Wilmington Trust Corporation 1,300 43,914 51,350 ------------------- ------------------ Total 59,762,626 75,463,429 ------------------- ------------------ Health Care: ADR Astra AB 19,200 377,864 940,800 Amgen Incorporated 76,300 4,219,882 4,148,812 Bausch & Lomb, Incorporated 4,800 198,286 168,000 C.R. Bard Incorporated 4,800 146,871 134,400 Centocor 5,000 155,050 178,750 Columbia/HCA Healthcare Corporation 161,800 5,190,872 6,593,350 Health Management Associates Incorporated 8,700 196,513 195,750 Humana Incorporated 15,100 366,167 286,900 Johnson & Johnson 71,200 3,531,276 3,542,200 Manor Care, Incorporated 5,300 104,002 143,100 Medtronic, Incorporated 22,800 1,436,664 1,550,400 Novacare Incorporated 20,000 185,111 220,000 Tenet Healthcare Corporation 17,700 379,347 387,187 Transitional Hospitals Corporation 21 - 202 United Healthcare Corporation 29,100 1,373,716 1,309,500 United States Surgical Corporation 9,000 325,626 354,375 Vencor Incorporated 18,000 567,930 569,250 Vivra Incorporated 3,800 105,741 104,975 ------------------- ------------------ Total 18,860,918 20,827,951 ------------------- ------------------
- 23 - 24 SCHEDULE I PAGE 10 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Leisure Time and Communications: Boyd Gaming Corporation 2,700 $ 39,869 $ 22,275 Carnival Corporation 8,700 220,352 287,100 Circus Circus Enterprises Incorporated 5,300 175,098 182,187 Extended Stay American Incorporated 2,300 33,925 46,288 Harrah's Entertainment Incorporated 5,300 135,825 105,338 Hilton Hotels Corporation 13,900 367,994 364,875 ITT Corporation 5,900 258,946 255,913 International Game Technology 6,300 96,341 114,975 Frontier Corporation 2,100 57,450 47,513 King World Productions Incorporated 27,000 993,127 995,624 MFS Communications Company 20,900 1,043,891 1,139,050 MGM Grand Incorporated 3,000 109,597 104,625 Marriott International 18,100 994,047 1,000,024 Mattel Incorporated 10,000 282,393 277,500 Mirage Resorts Incorporated 7,000 177,246 151,375 Promus Hotel Corporation 7,000 206,570 207,374 TCI Satellite Entertainment Incorporated 2,300 37,028 22,713 Telephone Communications Incorporated 40,525 846,859 1,157,475 Telephone Communications Incorporated 80,800 1,239,459 1,055,410 Time Warner Incorporated 18,300 643,709 686,250 Tribune Company 4,000 332,090 315,500 Walt Disney Company 78,100 5,058,849 5,447,474 ------------------- ------------------ Total 13,350,665 13,986,858 ------------------- ------------------ Machinery: Caterpillar Incorporated 21,900 1,506,045 1,647,974 Cincinnati Milacron Incorporated 1,900 44,764 41,563 Crane Company 8,000 230,993 232,000 Cummins Engine Company 6,900 289,167 317,400 Deere & Company 6,000 251,841 243,000 Foster Wheeler Corporation 2,000 81,473 74,250 Ingersoll-Rand Company 20,100 886,094 894,450 PACCAR Incorporated 600 28,998 40,800 Parker-Hannifin Corporation 3,400 135,099 131,750 Trinova Corporation 1,500 50,153 54,563 ------------------- ------------------ Total 3,504,627 3,677,750 ------------------- ------------------
- 24 - 25 SCHEDULE I PAGE 11 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Merchandising: Albertson's Incorporated 8,400 $ 298,023 $ 299,250 American Greetings Corporation 14,000 394,433 397,250 American Stores Company 17,000 687,844 694,875 Autozone Incorporated 5,900 159,206 162,250 Best Buy, Incorporated 1,700 38,989 18,063 Borders Group Incorporated 1,300 45,127 46,638 Circuit City Stores, Incorporated 3,900 117,593 117,487 Dayton-Hudson Corporation 29,000 1,123,450 1,138,250 Dollar General Corporation 5,000 163,800 160,000 Federated Department Stores Incorporated 8,400 278,754 286,650 Fruit of the Loom 5,100 131,235 193,163 Gap Incorporated 3,000 91,655 90,375 General Nutrition Companies 3,400 57,879 57,375 Great Atlantic & Pacific Tea Company, Incorporated 33,000 981,795 1,051,875 Home Depot Incorporated 52,000 2,618,233 2,606,500 Kimberly-Clark Corporation 20,000 1,813,212 1,905,000 K-mart Corporation 10,000 106,802 103,750 Kohls Corporation 33,500 1,338,924 1,314,874 J.C. Penney Company, Incorporated 9,100 431,545 443,625 Lands End Incorporated 13,000 344,435 344,500 Limited Incorporated 9,900 201,918 181,912 Lowes Companies Incorporated 16,000 619,952 570,000 Neiman Marcus Group Incorporated 3,000 93,360 76,500 Nine West Group Incorporated 1,500 56,633 69,563 Nordstrom, Incorporated 4,600 191,721 163,010 Safeway Incorporated 4,000 170,048 171,000 Sears, Roebuck and Company 138,200 6,567,875 6,357,200 Tiffany & Company 7,000 248,570 256,375 Toys "R" Us, Incorporated 26,000 764,443 776,750 Wal-Mart Stores, Incorporated 197,000 5,033,955 4,481,750 Woolworth Corporation 39,000 821,827 858,000 ------------------- ------------------ Total 25,993,236 25,393,810 ------------------- ------------------
- 25 - 26 SCHEDULE I PAGE 12 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Metals: Allegheny Teledyne Incorporated 8,900 $ 179,505 $ 204,700 Aluminum Company of American 9,300 541,121 592,875 Bethlehem Steel Corporation 5,800 68,499 51,475 Coeur D Alene Mines Corporation 23,000 365,426 347,875 Freeport McMoran Cooper & Gold Incorporated 700 19,661 19,688 Inco Limited 600 19,618 19,125 Inland Steel Industries Incorporated 2,600 51,181 52,000 Nucor Corporation 3,900 195,980 198,900 Phelps Dodge Corporation 3,400 221,629 229,500 Reynolds Metals Company 3,500 194,098 197,312 USX-US Steel Group 6,800 199,221 213,350 Worthington Industries, Incorporated 1,200 23,049 21,750 ------------------- ------------------ Total 2,078,988 2,148,550 ------------------- ------------------ Miscellaneous: Anixter International Incorporated 1,900 33,002 30,638 Bemis Company, Incorporated 2,000 67,520 73,750 Caliber Systems Incorporated 1,100 38,428 21,175 Commercial Intertec Corporation 11,000 119,623 149,875 Consolidated Freightways Incorporated 1,300 25,260 28,925 Consolidated Freightways Corporation 700 4,441 6,213 Cooper Industries, Incorporated 9,400 399,588 395,974 Cooper Tire & Rubber Company 2,400 58,007 47,400 Cytec Industries 1,500 38,558 60,938 Eaton Corporation 3,800 221,578 265,050 ITT Industries Incorporated 4,300 89,425 105,350 Jacobs Engineering Group, Incorporated 10,000 235,725 236,250 Minnesota Mining and Manufacturing Company 6,000 393,993 498,000 Newport News Shipbuilding Incorporated 2,300 35,932 34,500 Rockwell International Corporation 8,000 458,698 487,000 Shaw Industries, Incorporated 7,000 107,188 83,125 Tenneco Incorporated 11,500 501,124 518,938 UCAR International Incorporated 300 10,897 11,288 V.F. Corporation 2,700 163,457 182,250 WMX Technology Incorporated 37,700 1,254,643 1,225,250 ------------------- ------------------ Total 4,257,087 4,461,889 ------------------- ------------------
- 26 - 27 SCHEDULE I PAGE 13 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Office Equipment: Amdahl Corporation 20,000 $ 219,002 $ 242,500 Apple Computer, Incorporated 10,000 249,344 208,750 Applied Magnetics Corporation 4,000 111,160 120,000 Bay Networks Incorporated 4,100 89,023 86,100 Compaq Computer Corporation 86,800 4,519,199 6,455,750 Data General Corporation 2,000 29,020 29,000 Dell Computer Corporation 42,200 2,037,691 2,241,875 EMC Corporation 9,100 180,825 301,437 Gateway 2000 Incorporated 1,000 50,528 53,562 Hewlett-Packard Company 89,100 3,901,228 4,477,275 Honeywell Incorporated 6,000 314,169 394,500 International Business Machines Corporation 29,200 3,653,916 4,423,800 Quantum Corporation 2,200 40,633 62,975 Sterling Software Incorporated 5,000 162,550 158,125 Sun Microsystems Incorporated 44,600 1,124,559 1,145,640 Tandem Computers, Incorporated 14,000 194,390 192,500 ------------------- ------------------ Total 16,877,237 20,593,789 ------------------- ------------------ Pharmaceuticals: ALZA Corporation 5,300 138,159 137,138 American Home Products Corporation 27,900 1,306,632 1,635,638 Biogen Incorporated 4,000 163,074 155,000 Bristol Myers Squibb Company 39,000 3,735,868 4,251,000 Forest Laboratories, Incorporated 2,600 112,395 85,150 Merck & Company Incorporated 90,800 6,073,203 7,229,950 Pfizer Incorporated 95,600 6,461,815 7,934,800 Schering-Plough Corporation 17,800 1,113,258 1,152,550 Warner Lambert Company 19,300 1,077,844 1,447,500 Watson Pharmaceuticals Incorporated 400 16,119 17,975 ------------------- ------------------ Total 20,198,367 24,046,701 ------------------- ------------------
- 27 - 28 SCHEDULE I PAGE 14 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Printing, Publishing and Paper: Boise Cascade Corporation 3,200 $ 102,377 $ 101,600 Bowater Incorporated 2,600 102,531 97,825 Champion International Corporation 6,500 287,202 281,125 James River Corporation 7,000 214,981 231,875 Longview Fibre Company 7,000 131,320 128,624 Mead Corporation 3,700 197,167 215,062 Potlatch Corporation 9,000 365,715 387,000 Temple Inland Incorporated 3,800 185,862 205,675 Washington Post Company 1,000 322,470 335,124 Weyerhaeuser Company 3,200 146,252 151,600 ------------------- ------------------ Total 2,055,877 2,135,510 ------------------- ------------------ Railroads: Burlington Northern Santa Fe Corporation 27,800 2,343,607 2,401,224 CSX Corporation 10,900 525,928 460,524 Norfolk Southern Corporation 13,500 1,205,986 1,188,000 Union Pacific Corporation 6,800 259,823 408,850 ------------------- ------------------ Total 4,335,344 4,458,598 ------------------- ------------------
- 28 - 29 SCHEDULE I PAGE 15 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Service Industries: ADR Reuters Holdings PLC 16,100 $ 1,180,844 $ 1,231,650 Cox Communications Incorporated 60,200 1,161,762 1,392,124 Federal Express Corporation 2,000 80,667 89,000 First Data Corporation 56,300 2,190,820 2,054,950 Gannett Company Incorporated 4,000 277,138 299,500 Health Care & Retirement Corporation 3,900 69,626 111,637 Interpublic Group of Companies, Incorporated 10,000 445,100 475,000 John H. Harland Company 2,000 61,698 66,000 Learning Company Incorporated 900 20,037 12,938 Meredith Corporation 10,000 467,725 527,500 Moore Corporation, Limited 10,000 176,350 205,000 National Service Industries, Incorporated 9,000 355,534 336,374 Oxford Health Plans Incorporated 16,100 714,197 942,847 R.R. Donnelley & Sons Company 5,700 198,059 178,837 Ryder System, Incorporated 2,600 73,923 73,125 Service Corporation International 9,000 129,714 252,000 Thermo Instrument Systems, Incorporated 2,000 62,520 66,250 ------------------- ------------------ Total 7,665,714 8,314,732 ------------------- ------------------
- 29 - 30 SCHEDULE I PAGE 16 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Technology: 360 Communications Company 700 $ 16,404 $ 16,275 ADR Ericsson L.M. Telephone Company 55,330 1,180,205 1,670,246 Applied Materials, Incorporated 5,500 175,372 197,654 Ascend Communications Incorporated 7,900 569,875 490,787 Autodesk Incorporated 1,300 40,880 36,400 BMC Software Incorporated 2,000 81,603 82,750 CISCO Systems Incorporated 138,600 6,272,571 8,818,424 Computer Associates International, Incorporated 6,400 333,373 318,400 Electronic Data Systems Corporation 19,400 904,525 839,050 Gartner Group Incorporated 10,000 345,575 389,370 General Instrument Corporation 6,900 170,085 150,074 Harris Corporation 1,500 92,373 102,938 Intel Corporation 136,700 10,163,581 17,899,087 Lucent Technologies Incorporated 40,600 1,922,369 1,877,750 Microsoft Corporation 102,800 4,900,365 8,493,850 National Semiconductor Corporation 4,800 77,088 117,600 Netscape Communications Corporation 18,700 918,643 1,063,562 Molex Incorporated 1,700 50,464 60,562 Northern Telecom Limited 10,000 556,940 618,750 Oracle Corporation 42,100 1,580,555 1,757,674 Paging Network Incorporated 4,600 92,138 70,150 Parametric Technology Corporation 2,000 103,895 102,750 Perkin-Elmer Corporation 4,100 217,067 241,387 Scientific-Atlanta, Incorporated 300 4,480 4,500 Stratus Computer Incorporated 8,000 194,080 218,000 Symbol Technologies, Incorporated 2,000 85,570 88,500 Tektronix, Incorporated 4,000 165,040 205,000 Texas Instruments Incorporated 13,400 803,504 854,250 Thermo Electron Corporation 2,000 79,723 82,500 Three Com Corporation 21,100 1,113,318 1,548,213 Universal Corporation 8,000 218,080 257,000 VLSI Technology, Incorporated 7,000 130,004 167,125 Xerox Corporation 29,700 1,499,735 1,562,992 ------------------- ------------------ Total 35,059,480 50,403,570 ------------------- ------------------
- 30 - 31 SCHEDULE I PAGE 17 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Utilities: ADR British Telecommunications 7,000 $ 416,740 $ 480,374 Airtouch Communications Incorporated 281,000 7,798,453 7,095,250 Allegheny Power System, Incorporated 3,200 94,992 97,200 American Electric Power Company, Incorporated 56,000 2,355,562 2,303,000 American Water Works Company, Incorporated 2,000 39,520 41,250 Ameritech Corporation 33,600 1,881,626 2,037,000 AT&T Corporation 81,000 3,057,537 3,562,733 Baltimore Gas and Electric Company 3,400 92,750 90,950 Bell Atlantic Corporation 10,800 665,440 699,300 BellSouth Corporation 86,000 3,434,396 3,483,000 Carolina Power & Light Company 2,000 70,423 73,000 Cascade Communications Corporation 22,500 1,607,313 1,240,312 Century Telephone Enterprises, Incorporated 1,000 33,010 30,875 Cinergy Corporation 4,100 138,668 136,837 Columbia Gas System, Incorporated 2,400 113,844 152,700 Comcast Corporation 16,700 294,051 297,460 Consolidated Edison Company of New York, Incorporated 7,900 226,301 230,087 Consolidated Natural Gas Company 1,400 79,484 77,350 Dominion Resources Incorporated 5,200 190,535 200,200 DTE Energy Company 3,900 112,365 126,262 Edison International 64,000 1,097,782 1,272,000 El Paso Natural Gas Company 1 22 25 GTE Corporation 65,200 2,703,569 2,958,450 Idaho Power Company 4,000 120,160 124,500 Illinova Corporation 10,000 265,100 275,000 MCI Communications Corporation 20,300 456,041 663,545 New England Electric System 1,900 64,518 66,263 Nipsco Industry Incorporated 3,000 112,960 118,874 Northeast Utilities 3,900 38,834 51,187 Northern States Power Company 4,000 184,287 183,500 Nynex Corporation 11,000 506,869 529,374 P P & L Res Incorporated 1,500 35,941 34,500 Pacific Gas & Electric 12,500 299,879 262,500 Panenergy Corporation 10,500 383,469 472,500 Pinnacle West Capital Corporation 2,600 72,778 82,550 Portland General Corporation 2,500 84,234 105,000 Potomac Electric Power Company 1,200 29,656 30,900 Puget Sound Power and Light Company 3,000 70,185 72,000 SBC Communications Incorporated 10,900 533,851 565,437 Seagull Energy Corporation 4,000 86,980 88,000
- 31 - 32 SCHEDULE I PAGE 18 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------- ------------------ Southern Company 18,600 $ 423,256 $ 420,825 Sprint Corporation 10,900 446,394 434,638 Texas Utilities Company 23,000 938,375 937,250 Tuscon Electric Power Company 10,000 195,100 165,000 U.S. West Incorporated-COM-MEDIA Group 22,900 409,454 420,787 U.S. West Communications Group 14,400 434,418 464,400 Unicom Corporation 54,000 1,466,328 1,464,750 Union Electric Company 1,000 37,510 38,500 Viacom 13,300 524,284 463,838 Worldcom Incorporated 57,100 1,395,042 1,488,139 ------------------- ------------------ Total 36,120,286 36,709,372 ------------------- ------------------ Total Common Stocks 357,529,432 422,697,707 ------------------- ------------------ PREFERRED STOCK MLP Lakehead Pipe Line Partners L.P. 4,000 121,539 138,000 TEMPORARY INVESTMENTS The Northern Trust Company Collective Short-Term Investment Fund 3,575,191 3,575,191 3,575,191 INCOME RECEIVABLE 904,060 904,060 ------------------- ------------------ TOTAL DIVERSIFIED PORTFOLIO FUND $ 362,130,222 $ 427,314,958 =================== ================== PROPORTIONATE INTEREST $ 60,160,624 $ 75,165,683 =================== ==================
- 32 - 33 SCHEDULE I PAGE 19 OF 20 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, 1996
INTEREST RATE AS OF DECEMBER 31, MATURITY CURRENT 1996 DATE COST VALUE ----------- -------------- ------------------ ------------------ GUARANTEED INVESTMENT CONTRACTS: Aetna Life Insurance Company 10.00% 1/3/00 $ 84,966,893 $ 90,651,000 The Prudential Insurance Company of America 10.25% 7/5/99 55,597,953 59,828,000 The Prudential Insurance Company of America 9.92% 5/1/98 83,091,023 87,082,000 The Prudential Insurance Company of America 9.65% 8/31/00 41,250,835 45,953,000 The Prudential Insurance Company of America 9.80% 8/31/00 61,904,532 69,248,000 The Travelers Insurance Company 8.15% 2/1/98 1,793,847 2,270,000 The Travelers Insurance Company 9.26% 2/1/98 1,260,529 1,600,000 Aetna Life and Casualty Company 7.10% Open 280,696,038 291,300,000 Metropolitan Life Insurance Company 7.33% Open 272,766,951 284,900,000 Metropolitan Life Insurance Company 6.91% Open 279,597,276 283,800,000 The Prudential Insurance Company of America 6.84% Open 276,963,064 279,600,000 ------------------ ------------------ Total Guaranteed Investment Contracts 1,439,888,941 1,496,232,000 ------------------ ------------------ TEMPORARY INVESTMENTS The Northern Trust Company Collective Short-Term Investment Fund 4,765,949 4,765,949 INCOME RECEIVABLE 16,785 16,785 ------------------ ------------------ TOTAL FIXED INCOME FUND $ 1,444,671,675 $ 1,501,014,734 ================== ================== PROPORTIONATE INTEREST $ 236,670,922 $ 245,666,720 ================== ==================
- 33 - 34 SCHEDULE I PAGE 20 OF 20 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, 1996
NUMBER OF SHARES OR QUOTED PRINCIPAL MARKET AMOUNT COST VALUE -------------- ------------------ ------------------ SPECIAL DISTRIBUTION FUND: The Northern Trust Company Collective Short-Term Investment Fund 27,930,447 $ 27,930,447 $ 27,930,447 INCOME RECEIVABLE 127,149 127,149 ------------------ ------------------ TOTAL SPECIAL DISTRIBUTION FUND $ 28,057,596 $ 28,057,596 ================== ================== PROPORTIONATE INTEREST $ 7,669,787 $ 7,669,787 ================== ==================
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