-----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, Sxd58JdR2ag1up33b3NMrU3MZMEIls9HNBnmj08sdglmEYKrV4vvjHTJWBua1h5A zAw2Jj96t7m48XsI1c4G8Q== 0000950133-99-002336.txt : 19990701 0000950133-99-002336.hdr.sgml : 19990701 ACCESSION NUMBER: 0000950133-99-002336 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990630 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-K/A SEC ACT: SEC FILE NUMBER: 001-03671 FILM NUMBER: 99657018 BUSINESS ADDRESS: STREET 1: 3190 FAIRVIEW PARK DRIVE CITY: FALLS CHURCH STATE: VA ZIP: 22042 BUSINESS PHONE: 7038763000 MAIL ADDRESS: STREET 1: 3190 FAIRVIEW PARK DR CITY: FALLS CHURCH STATE: VA ZIP: 22042 10-K/A 1 FORM 10-K RE: GENERAL DYNAMICS CORPORATION 1 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- AMENDMENT NO. 1 to FORM 10-K AMENDMENT TO APPLICATION ON REPORT FILED PURSUANT TO SECTION 12, 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE YEAR ENDED DECEMBER 31, 1998 GENERAL DYNAMICS CORPORATION 3190 Fairview Park Drive Falls Church, Virginia 22042-4253 Commission File Number 1-3671 The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its 1998 Annual Report on Form 10-K as set forth in the pages attached hereto: Index to Exhibits Exhibit 99F Annual Report on Form 11-K for the General Dynamics Corporation Savings and Stock Investment Plan Exhibit 99G Annual Report on Form 11-K for the General Dynamics Corporation Hourly Employees Savings and Stock Investment Plan Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned thereunto duly authorized. GENERAL DYNAMICS CORPORATION (Registrant) By /s/ David A. Savner ------------------------- David A. Savner Secretary Dated: June 30, 1999 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 2 INDEX TO EXHIBITS
Note Exhibit Number Number Description - ------ ------- ----------- (5) 3-1A --Restated Certificate of Incorporation, effective May 21, 1991 (12) 3-2D --Bylaws as amended effective October 1, 1997 (11) 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 (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 (11) 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 * (11) 10-18B --Amendment to employment agreement between the company and James R. Mellor dated as of November 5, 1996 (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 (10) 10-28 --Asset Purchase and Sale Agreement, dated November 6, 1996, as amended December 20, 1996, between the company and Lockheed Martin Corporation * (11) 10-29 --Employment agreement between the company and Nicholas D. Chabraja dated November 12, 1996 * (11) 10-30 --General Dynamics Corporation Incentive Compensation Plan adopted February 5, 1997, approved by shareholders on May 7, 1997 * (12) 10-31 --Retirement Benefit Agreement between the company and Gordon R. England dated February 14, 1997 (12) 10-32 --Credit Enhancement Agreement between Bath Iron Works Corporation and the City of Bath, Maine dated September 19, 1997, relatingto the development program of facilities in Bath, Maine * (12) 10-33 --Retirement Benefit Agreement between the company and Michael J. Mancuso dated March 6, 1998 * (12) 10-34 --Consulting agreement between the company and Paul G. Kaminski dated August 18, 1997 (13) 10-36 --Stock Purchase Agreement dated as of October 8, 1998, between the company and NASSCO Holdings Incorporated and the stockholders of NASSCO Holdings Incorporated * (14) 10-37 --Retirement Benefit Agreement between the company and David A. Savner dated March 4, 1998
3 INDEX TO EXHIBITS
Note Exhibit Number Number Description - ------ ------- ----------- (14) 10-38 --Lease Agreement dated January 1, 1991, between National Steel and Shipbuilding Company and the San Diego Unified Port District, relating to facilities in the San Diego, California harbor (14) 10-38A --Amendment of Lease Agreement between National Steel and Shipbuilding Company and the San Diego Unified Port District, dated December 6, 1994 (14) 10-39 --Capital Construction Fund Agreement, dated September 13, 1988, between National Steel and Shipbuilding Company and the United States of America, represented by the Maritime Administrator, Department of Transportation (14) 10-39A --Capital Construction Fund Agreement-Addendum No. 1, dated September 13, 1988, between National Steel and Shipbuilding Company and the United States of America, represented by the Maritime Administrator, Department of Transportation (14) 10-39B --Capital Construction Fund Agreement-Addendum No. 2, dated October 29, 1992, between National Steel and Shipbuilding Company and the United States of America, represented by the Maritime Administrator, Department of Transportation (14) 10-39C --Capital Construction Fund Agreement-Addendum No. 3, dated August 27, 1993, between National Steel and Shipbuilding Company and the United States of America, represented by the Maritime Administrator, Department of Transportation (14) 10-39D --Capital Construction Fund Agreement-Addendum No. 4, dated August 28, 1997, between National Steel and Shipbuilding Company and the United States of America, represented by the Maritime Administrator, Department of Transportation (14) 10-39E --Capital Construction Fund Agreement-Addendum No. 5, dated October 29, 1997, between National Steel and Shipbuilding Company and the United States of America, represented by the Maritime Administrator, Department of Transportation (16) 10-40 --Agreement and Plan of Merger dated May 16, 1999 between General Dynamics Corporation, Tara Acquisition Corporation and Gulfstream Aerospace Corporation (16) 10-41 --Voting Agreement dated May 16, 1999 between General Dynamics Corporation and certain stockholders of Gulfstream Aerospace Corporation (17) 10-42 --Stock Purchase Agreement (without Schedules and Exhibits) dated as of June 21, 1999 between General Dynamics, Contel Federal Systems, Inc. and GTE Corporation (14) 13 --1998 Annual Report (pages 20 through 44) (14) 21 --Subsidiaries (14) 23 --Consent of Independent Public Accountants (14) 24 --Power of Attorney of the Board of Directors (14) 27 --Financial Data Schedule (14) 27-A --Amended Financial Data Schedule for the year ended December 31, 1997 (14) 27-B --Amended Financial Data Schedule for the nine months ended September 28, 1997 (14) 27-C --Amended Financial Data Schedule for the six months ended June 29, 1997 (14) 27-D --Amended Financial Data Schedule for the three months ended March 30, 1997 (15) 99D --1997 Annual Reprt on Form 11-K for the General Dynamics Corporation Savings and Stock Investment Plan (15) 99E --1997 Annual Reprt on Form 11-K for the General Dynamics Corporation Hourly Employees Savings and Stock Investment Plan 99F --1998 Annual Report on Form 11-K for the General Dynamics Corporation Savings and Stock Investment Plan 99G --1998 Annual Report on Form 11-K for the General Dynamics Corporation Hourly Employees Savings and Stock Investment Plan
* Indicates a management contract or compensatory plan or arrangement required to be filed pursuant to Item 14(c) of Form 10-K. 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 (Commission File No. 1-3671). (2) Not used. (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 (Commission File No. 1-3671). (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 (Commission File No. 1-3671). 4 (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 (Commission File No. 1-3671). (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 (Commission File No. 1-3671). (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 (Commission File No. 1-3671). (8) Not used. (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 (Commission File No. 1-3671). (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 (Commission File No. 1-3671). (11) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1996, and filed with the Commission March 21, 1997, and incorporated herein by reference (Commission File No. 1-3671). (12) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1997, and filed with the Commission March 18, 1998, and incorporated herein by reference (Commission File No. 1-3671). (13) Filed as an exhibit to the company's current report on Form 8-K filed with the Commission November 25, 1998, and incorporated herein by reference (Commission File No. 1-3671). (14) Filed as an exhibit to the company's annual report on Form 10-K for the year ending December 31, 1998, and filed with the Commission March 18, 1999, and incorporated herein by reference (Commission File No. 1-3671). (15) Filed as an exhibit to the company's annual report on Form 10-K/A for the year ending December 31, 1997, and filed with the Commission June 26, 1998, and incorporated herein by reference (Commission File No. 1-3671). (16) Filed as an exhibit to the company's quarterly report on Form 10-Q for the quarterly period ended April 4, 1999, and filed with the Commission May 18, 1999, and incorporated herein by reference (Commission File No. 1-3671). (17) Filed as an exhibit to the company's current report on Form 8-K filed with the Commission June 24, 1999, and incorporated herein by reference (Commission File No. 1-3671). EX-99.F 2 1998 ANNUAL REPORT ON FORM 11-K 1 Exhibit 99F - ------------------------------------------------------------------------------- EXHIBIT 99F TO ANNUAL REPORT ON FORM 10-K COMMISSION FILE NO. 1-3671 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE YEAR ENDED DECEMBER 31, 1998 A. Full title of the Plan and the address of the Plan, if different from the issuer named below: GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN B. Name of the issuer of the securities held pursuant to the Plan and the address of its principal executive office: GENERAL DYNAMICS CORPORATION 3190 FAIRVIEW PARK DRIVE FALLS CHURCH, VIRGINIA 22042-4253 2 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
Pages of this Exhibit 99F (a) FINANCIAL STATEMENTS Report of Independent Public Accountants 1 Statements of Net Assets Available for Benefits, as of December 31, 1998 and 1997 2-3 Statement of Changes in Net Assets Available for Benefits, For the Year Ended December 31, 1998 4 Notes to Financial Statements 5-8 Schedule I - Statement of Investments in Master Trust Funds as of December 31, 1998 9-10 Schedule II - Schedule of Loans or Fixed Income Obligations 11-16 (b) SIGNATURE 17 (c) EXHIBITS Exhibit 23- Consent of Independent Public Accountants 18
3 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998 AND 1997 TOGETHER WITH AUDITORS' REPORT 4 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, 1998 and 1997, and the related statement of changes in net assets available for benefits for the year ended December 31, 1998. These financial statements and the schedule referred to below are the responsibility of the Plan's management. 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 Plan as of December 31, 1998 and 1997, and the changes in net assets available for benefits for the year ended December 31, 1998, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental statement of investments in master trust funds (schedule I), is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The 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 are the responsibility of the Plan's management. 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. /s/ ARTHUR ANDERSEN LLP - ------------------------------ ARTHUR ANDERSEN LLP Washington, D.C. June 4, 1999 1 5 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1998
STOCK FIXED INCOME BOND INDEX BALANCED TOTAL FUND FUND FUND FUND ------------------ --------------- ----------------- -------------- --------------- ASSETS: Investment in Master Trust $2,575,814,821 $662,777,394 $1,025,430,024 $108,120,872 $ 57,984,985 Loans receivable 19,972,729 - - - - Miscellaneous receivables 2,536,660 1,758,958 112,882 220,063 54,323 ------------------ --------------- ----------------- -------------- --------------- Total assets 2,598,324,210 664,536,352 1,025,542,906 108,340,935 58,039,308 ------------------ --------------- ----------------- -------------- --------------- LIABILITIES: Fund transfers - 1,623,587 (1,208,102) 69,290 115,219 Accrued payables 708,661 107,466 269,475 50,550 22,515 ------------------ --------------- ----------------- -------------- --------------- Total liabilities 708,661 1,731,053 (938,627) 119,840 137,734 ------------------ --------------- ----------------- -------------- --------------- Net assets available for benefits $2,597,615,549 $662,805,299 $1,026,481,533 $108,221,095 $ 57,901,574 ================== =============== ================= ============== =============== S&P 500 STOCK INTERNATIONAL SMALL CAP DISTRIBUTION LOAN INDEX FUND INDEX FUND INDEX FUND ACCOUNT FUND --------------- ----------------- --------------- -------------- -------------- ASSETS: Investment in Master Trust $ 666,052,137 $ 12,433,099 $ 39,867,610 $ 3,148,700 $ - Loans receivable - - - - 19,972,729 Miscellaneous receivables 272,623 54,012 37,752 - 26,047 --------------- ----------------- --------------- -------------- -------------- Total assets 666,324,760 12,487,111 39,905,362 3,148,700 19,998,776 --------------- ----------------- --------------- -------------- -------------- LIABILITIES: Fund transfers (366,913) (138,974) (94,107) - - Accrued payables 156,161 - 19,275 - 83,219 --------------- ----------------- --------------- -------------- -------------- Total liabilities (210,752) (138,974) (74,832) - 83,219 --------------- ----------------- --------------- -------------- -------------- Net assets available for benefits $ 666,535,512 $ 12,626,085 $ 39,980,194 $ 3,148,700 $ 19,915,557 =============== ================= =============== ============== ==============
The accompanying notes are an integral part of this financial statement. -2- 6 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1997
STOCK FIXED INCOME BOND INDEX BALANCED TOTAL FUND FUND FUND FUND --------------- -------------- ---------------- ------------- ------------- ASSETS: Investment in Master Trust $2,236,325,051 $ 455,779,945 $1,060,772,264 $ 95,296,407 $ 39,550,914 Loans receivable 18,656,039 - - - - --------------- -------------- ---------------- ------------- ------------- Total assets 2,254,981,090 455,779,945 1,060,772,264 95,296,407 39,550,914 --------------- -------------- ---------------- ------------- ------------- LIABILITIES: Fund transfers - 489,669 (675,999) (61,797) 144,953 Amounts payable to BIW Hourly Plan (Note 10) 1,496,305 - - - - Amounts payable to General Dynamics Corporation 93,915 - - - - Accrued payables 1,141,512 61,066 144,372 17,126 8,816 --------------- -------------- ---------------- ------------- -------------- Total liabilities 2,731,732 550,735 (531,627) (44,671) 153,769 --------------- -------------- ---------------- ------------- -------------- Net assets available for benefits $2,252,249,358 $ 455,229,210 $1,061,303,891 $ 95,341,078 $ 39,397,145 =============== ============== ================ ============= ============== S&P 500 STOCK INTERNATIONAL SMALL CAP DISTRIBUTION LOAN INDEX FUND INDEX FUND INDEX FUND ACCOUNT FUND ----------------- ------------- -------------- ------------- -------------- ASSETS: Investment in Master Trust $ 537,364,113 $ 8,975,722 $ 35,352,123 $ 3,233,563 $ - Loans receivable - - - - 18,656,039 ----------------- ------------- -------------- ------------- -------------- Total assets 537,364,113 8,975,722 35,352,123 3,233,563 18,656,039 ----------------- ------------- -------------- ------------- -------------- LIABILITIES: Fund transfers (30,018) 370,971 (237,779) - - Amounts payable to BIW Hourly Plan (Note 10) - - - 1,496,305 - Amounts payable to General Dynamics Corporation - - - 93,915 - Accrued payables 71,952 1,565 6,314 830,301 - ------------------ ------------- -------------- ------------- -------------- Total liabilities 41,934 372,536 (231,465) 2,420,521 - ------------------ ------------- -------------- ------------- -------------- Net assets available for benefits $ 537,322,179 $ 8,603,186 $ 35,583,588 $ 813,042 $ 18,656,039 ================== ============= ============== ============= ==============
The accompanying notes are an integral part of this financial statement. -3- 7 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1998
STOCK FIXED INCOME BOND INDEX BALANCED TOTAL FUND FUND FUND FUND ---------------- --------------- ---------------- -------------- ------------- PARTICIPATION IN INCOME (LOSS) OF MASTER TRUST $ 415,685,954 $ 176,931,609 $ 74,102,194 $ 7,874,906 $ 7,322,013 ---------------- --------------- ---------------- -------------- ------------- ADD (DEDUCT): Rollover contributions 11,656,456 1,785,156 1,090,500 1,286,931 1,296,227 Contributions by participants 48,175,925 30,285,263 4,708,269 1,096,408 1,590,758 Contributions by General Dynamics Corporation 29,348,319 28,057,188 78,127 65,253 232,626 Participating forfeitures (485,383) (453,432) (2,367) (436) (7,567) Loan repayments 1,647,612 7,368,683 1,663,228 194,675 117,684 Transfers among funds - (7,499,637) (23,717,417) 9,723,724 11,351,334 Distributions to withdrawn participants (162,998,350) (27,284,381) (88,838,653) (6,905,777) (3,051,869) Loans issued - (1,614,360) (3,906,239) (455,667) (346,777) Miscellaneous pending transactions 2,335,658 - - - - ---------------- --------------- ---------------- -------------- ------------- Net increase (decrease) 345,366,191 207,576,089 (34,822,358) 12,880,017 18,504,429 ---------------- --------------- -------------------------------- ------------- NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 2,252,249,358 455,229,210 1,061,303,891 95,341,078 39,397,145 ---------------- --------------- ---------------- -------------- ------------- End of year $ 2,597,615,549 $ 662,805,299 $ 1,026,481,533 $ 108,221,095 $ 57,901,574 ================ =============== ================ ============== ============= S&P 500 STOCK INTERNATIONAL SMALL CAP DISTRIBUTION LOAN INDEX FUND INDEX FUND INDEX FUND ACCOUNT FUND ----------------- ------------- ---------------- ------------- -------------- PARTICIPATION IN INCOME (LOSS) OF MASTER TRUST $ 149,438,541 $ 2,021,618 $ (2,004,927) $ - $ - ----------------- ------------- ---------------- ------------- -------------- ADD (DEDUCT): Rollover contributions 4,357,402 489,706 1,350,534 - - Contributions by participants 8,452,746 446,500 1,595,981 - - Contributions by General Dynamics Corporation 615,977 59,437 239,711 - - Participating forfeitures (13,817) (1,331) (6,433) - - Loan repayments 895,490 19,949 58,972 - (8,671,069) Transfers among funds 2,412,795 1,873,578 5,855,623 - - Distributions to withdrawn participants (33,083,567) (765,341) (2,317,479) - (751,283) Loans issued (3,862,234) (121,217) (375,376) - 10,681,870 Miscellaneous pending transactions - - - 2,335,658 - ----------------- ------------- ---------------- ------------- -------------- Net increase (decrease) 129,213,333 4,022,899 4,396,606 2,335,658 1,259,518 ----------------- ------------- ---------------- ------------- -------------- NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 537,322,179 8,603,186 35,583,588 813,042 18,656,039 ----------------- ------------- ---------------- ------------- -------------- End of year $ 666,535,512 $ 12,626,085 $ 39,980,194 $ 3,148,700 $ 19,915,557 ================= ============= ================ ============= ==============
The accompanying notes are an integral part of this financial statement. -4- 8 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998 AND 1997 1. The General Dynamics Corporation Savings and Stock Investment Plan (the "Plan") is a defined contribution plan covering eligible salaried employees of General Dynamics Corporation (the "Company"). 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. Generally, a participant may contribute from 1% to 10% of the first $25,000 of base earnings and 1% to 6% of base earnings in excess of $25,000. In addition, non-highly compensated participants, as determined by the Plan Administrator, may also contribute another 1% to 4% of base earnings on an unmatched basis. Participants at Bath Iron Works ("BIW"), Armament Systems, Defense Systems, Advanced Technology Systems and Information Systems may contribute 1% to 15% of their salary on a pre-tax basis. Each participant shall direct his or her contributions to be invested in one percent increments into the available funds. Participants can change their investment elections daily and can make an unlimited number of investment election changes each year. All Company matching contributions to the Plan are invested in Company common stock. Generally, participants that are 100 percent invested in the General Dynamics Stock Fund receive a 100 percent Company matching contribution in Company common stock. Participants that are less than 100 percent invested in the General Dynamics Stock Fund receive a 50 percent Company matching contribution in Company common stock. The matching contributions vary from 50 percent to 100 percent for participants at BIW, Armament Systems, Defense Systems, Advanced Technology Systems and Information Systems. Participants are eligible to participate in the Plan upon hire, and their contributions are always 100 percent vested. In general, Company matching contributions are fully vested upon five years of service. For participants from many of the General Dynamics' subsidiaries, contributions invested in the General Dynamics Stock Fund must be maintained in that fund for 5 years before becoming eligible for transfer to any other fund. Therefore, a portion of the balance in the General Dynamics Stock Fund represents non-participant-directed investments due to the match. With the exception of the General Dynamics Stock Fund, all other investment funds are completely participant-directed. 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. Loans are issued at the prime rate of interest. -5- 9 In the event the Plan is terminated, each participant will automatically be vested in the undistributed Company contributions. Each participant will receive payments based on the specific dollar amounts and shares of Company common stock in his or her account. 2. During June 1997, the Company extended the investment options for plan participants. The options added in 1997 include: Bond Index Fund, Balanced Fund, S&P 500 Stock Index Fund, International Index Fund and Small Cap Index Fund. These investment options offer participants the opportunity to invest in a broader range on the risk/return spectrum for actively traded securities. According to the Plan documents, the seven funds may hold the following types of investments: a) General Dynamics Stock Fund (the "Stock Fund") - The fund invests only in common stock of the Company. b) Fixed Income Fund - The fund invests in General Account and Separate Account Guaranteed Investment Contracts ("GICs"). General Account GICs are deposits with an insurance company that earn a contractually specified rate of return over a defined period. These contracts are secured by the issuer's general account (a broadly diversified portfolio of fixed income assets) and the net worth of the insurance company. Separate Account GICs are deposits with an insurance company, but are invested in a separate portfolio of high-quality securities. The GICs are not guaranteed by the Company or any government agency. c) Bond Index Fund - The fund invests in government, corporate, mortgage-backed and asset-backed securities. The fund also invests in high-quality bonds, as defined. d) Balanced Fund - The fund is a mixed portfolio of commingled stocks and bond funds. The fund is made up of international equities, U.S. large cap equities, fixed income securities and U.S. small cap equities. e) S&P 500 Stock Index Fund - The fund invests in all 500 U.S. common stocks in the S&P 500 Index in proportion to their weighting in the S&P 500 Index. It may also hold 2 percent to 5 percent of its value in S&P 500 futures contracts. f) 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 weighting in the MSCI EAFE Index. g) Small Cap Index Fund - The fund attempts to invest in all 2,000 stocks in the Russell 2000 Index in proportion to their weighting in the Russell 2000 Index. The Russell 2000 Index represents the smallest two-thirds of the 3,000 largest U.S. companies. It may also hold 2% to 5% of its value in Russell 2000 Index futures contracts. All of the above funds may hold a small cash balance for purposes of liquidity and expense control that is maintained in The Northern Trust Company Collective Short-Term Investment Fund. -6- 10 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. Certain financial statement captions have been changed to conform with the current year presentation. 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. The Plan's investments are in the General Dynamics Corporation Savings and Stock Investment Plan Master Trust (the "Master Trust"), which was established for the investment of assets of the Plan and the Hourly Employees Savings and Stock Investment Plan (the "Plans"). Each participating plan has an undivided interest in the Master Trust. The assets of the Master Trust are held by The Northern Trust Company (the "Trustee"). The recordkeeper is Hewitt Associates. At December 31, 1998 and 1997, the Plan's interest in the net assets of the Master Trust was approximately 81.7% and 83.2%, respectively. Net assets and net participation in the income of the Master Trust are allocated to the Plans according to their percentage interest in various funds included in the Master Trust. The following table presents the reported value of investments for the Master Trust.
December 31, -------------------------------------------- 1998 1997 -------------------- ------------------ General Dynamics Corporation common stock $ 762,414,942 $ 513,911,736 Investments in registered investment companies 1,138,026,273 901,907,398 Cash and cash equivalents 31,805,631 14,594,902 Loans receivable 28,704,785 22,839,462 Guaranteed investment contracts 1,218,525,581 1,255,533,974 -------------------- ------------------ Total $ 3,179,477,212 $ 2,708,787,472 ==================== ==================
-7- 11 Investment income for the Master Trust is as follows:
Year Ended December 31, 1998 --------------------------- Dividends $ 10,665,773 Interest 91,525,729 Net realized and unrealized gains on assets 401,630,816 ------------------------ $ 503,822,318 ========================
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 1998, the Plan document provides that these costs may be reimbursed by the Company. 7. 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, 1998 and 1997, amounts payable on withdrawals and distributions were $3,857,680 and $370,328, respectively. In addition, on the statement of changes in net assets available for benefits, 1998 distributions to withdrawn participants would have been $166,856,030 instead of $162,998,350 if the December 31 amounts payable on withdrawals and distributions had been included. 8. Most investments held by the Master Trust are recorded at quoted market value, as stated on public exchanges as of December 31, 1998 and 1997. The Company values the GICs in the Fixed Income Fund 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." As of December 31, 1998 and 1997, the GICs included in the Master Trust are reported at contract value because they have been determined to be fully benefit responsive. For example, participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. There are no reserves against contract value for credit risk of the contract issuers or otherwise. The fair value of the GICs at December 31, 1998 was approximately $1.28 billion. The average yield and crediting interest rates ranged from 5.62 percent to 10.0 percent for 1998. 9. In April 1997, the assets of the Bath Iron Works Corporation Tax Deferred Savings Plan for Salaried Employees were merged into the Plan and the related Master Trust. 10. During 1997, $1,496,305 of assets were transferred to the Master Trust in error by Chase Manhattan Bank, trustee for the BIW benefit plans. The amount represents an asset of the BIW Hourly Plan. Therefore, the amount was appropriately included as a liability of the Master Trust on the statement of net assets available for benefits as of December 31, 1997. The amount was returned to the BIW Hourly Plan in January 1998. -8- 12 GENERAL DYNAMICS CORPORATION SCHEDULE I SAVINGS AND STOCK INVESTMENT PLAN 1 OF 2 STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1998
MARKET/CONTRACT COST VALUE ----------------- ------------------- GENERAL DYNAMICS STOCK FUND: Investment in common stock of General Dynamics Corporation * $ 287,427,476 $ 762,414,942 Temporary investments in The Northern Trust Company Collective Short-Term Investment Fund * 1,896,652 1,896,652 ----------------- ------------------- Total $ 289,324,128 $ 764,311,594 ================= =================== PROPORTIONATE INTEREST $ 662,777,394 =================== FIXED INCOME FUND: Investment in the Fixed Income Fund $ 1,218,525,580 $ 1,218,525,580 Temporary investments The Northern Trust Company Collective Short-Term Investment Fund * 26,257,956 26,257,956 ----------------- ------------------- Total $ 1,244,783,536 $ 1,244,783,536 ================= =================== PROPORTIONATE INTEREST $ 1,025,430,024 =================== BOND INDEX FUND: Investment in the Bond Index Fund $ 145,203,664 $ 167,485,221 ================= =================== PROPORTIONATE INTEREST $ 108,120,872 =================== BALANCED FUND: Investment in the Balanced Fund $ 61,656,640 $ 71,696,277 ================= =================== PROPORTIONATE INTEREST $ 57,984,985 ===================
The accompanying notes are an integral part of this schedule. -9- 13 GENERAL DYNAMICS CORPORATION SCHEDULE I SAVINGS AND STOCK INVESTMENT PLAN 2 OF 2 STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1998
MARKET/CONTRACT COST VALUE --------------- --------------- S&P 500 STOCK INDEX FUND: Investment in the S&P 500 Stock Index Fund $ 542,185,771 $ 838,059,236 =============== ================ PROPORTIONATE INTEREST $ 666,052,137 ================ INTERNATIONAL INDEX FUND: Investment in the International Index Fund $ 13,089,556 $ 14,246,751 =============== ================ PROPORTIONATE INTEREST $ 12,433,099 ================ SMALL CAP INDEX FUND: Investment in the Small Cap Index Fund $ 45,827,472 $ 46,538,788 =============== ================ PROPORTIONATE INTEREST $ 39,867,610 ================ DISTRIBUTION ACCOUNT: Distribution Account $ 3,651,023 $ 3,651,023 =============== ================ PROPORTIONATE INTEREST $ 3,148,700 ================ LOAN Fund: Loans Receivable $ 28,704,785 $ 28,704,785 =============== ================ PROPORTIONATE INTEREST $ 19,972,729 ================
* denotes party-in-interest The accompanying notes are an integral part of this schedule. -10- 14 GENERAL DYNAMICS SAVINGS AND STOCK INVESTMENT PLAN SCHEDULE II LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS 1 OF 6
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - ------------------------------------------------------------------------------------- Participant Loan $2,276.00 $2,092.76 $106.12 $183.24 Participant Loan $25,000.00 $5,709.91 $1,328.45 $22,882.26 Participant Loan $14,500.00 $2,724.54 $1,027.83 $11,775.46 Participant Loan $17,813.00 $638.70 $373.26 $17,174.30 Participant Loan $10,000.00 $1,347.06 $335.61 $7,152.91 Participant Loan $13,736.00 $370.31 $215.05 $13,365.69 Participant Loan $5,000.00 $0.00 $0.00 $5,000.00 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ----------------------------------------------------------------------------------------------------- Participant Loan Date of making: 10/8/97 $183.24 $0.00 Maturity: 11/1/98 Rate: 8.5% Participant Loan Date of making: 3/13/98 $796.33 $0.00 Maturity: 4/1/03 Rate: 8.5% Participant Loan Date of making: 7/17/97 $1,574.69 $390.86 Maturity: 8/1/01 Rate: 8.5% Participant Loan Date of making: 8/10/98 $84.33 $0.00 Maturity: 9/1/03 Rate: 8.5% Participant Loan Date of making: 4/30/96 $1,949.05 $447.48 Maturity: 5/30/01 Rate: 8.25% Participant Loan Date of making: 8/11/98 $187.13 $73.03 Maturity: 9/1/03 Rate 8.5% Participant Loan Date of making: 5/31/95 $3,500.28 $961.80 Maturity: 6/31/00 Rate: 10.0%
The accompanying notes are an integral part of this schedule -11- 15 GENERAL DYNAMICS SAVINGS AND STOCK INVESTMENT PLAN SCHEDULE II LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS 2 OF 6
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - ------------------------------------------------------------------------------------- Participant Loan $5,000.00 $0.00 $0.00 $3,472.21 Participant Loan $37,000.00 $4,700.85 $2,132.27 $30,797.38 Participant Loan $11,140.00 $715.03 $383.72 $10,424.97 Participant Loan $13,800.00 $2,530.00 $493.90 $2,070.00 Participant Loan $3,500.00 $0.00 $0.00 $2,508.22 Participant Loan $1,288.00 $234.14 $25.06 $1,053.86 Participant Loan $15,000.00 $0.00 $0.00 $13,145.00 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ----------------------------------------------------------------------------------------------------- Participant Loan Date of making: 11/20/94 $3,472.21 $430.79 Maturity: 10/31/97 Rate: 7.75% Participant Loan Date of making: 8/13/97 $1,634.48 $641.24 Maturity: 9/1/02 Rate: 8.5% Participant Loan Date of making: 12/29/97 $950.78 $424.41 Maturity: 1/1/03 Rate: 8.5% Participant Loan Date of making: 6/30/94 $460.00 $89.80 Maturity: 7/31/99 Rate: 7.25% Participant Loan Date of making: 9/30/93 $2,508.22 $419.80 Maturity: 10/30/98 Rate: 6.0% Participant Loan Date of Making: 6/16/98 $289.38 $13.02 Maturity: 7/1/99 Rate: 8.5% Participant Loan Date of making: 9/30/93 $13,145.00 $2,080.00 Maturity: 10/30/98 Rate: 6.0%
The accompanying notes are an integral part of this schedule -12- 16 GENERAL DYNAMICS SAVINGS AND STOCK INVESTMENT PLAN SCHEDULE II LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS 3 OF 6
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - ------------------------------------------------------------------------------------- Participant Loan $22,500.00 $3,469.57 $1,608.36 $18,946.84 Participant Loan $3,000.00 $509.59 $229.85 $2,409.62 Participant Loan $15,000.00 $2,940.90 $671.28 $10,059.10 Participant Loan $813.00 $698.92 $38.18 $114.08 Participant Loan $7,600.00 $1,646.71 $392.21 $3,332.43 Participant Loan $3,400.00 $751.70 $142.59 $381.50 Participant Loan $13,000.00 $81.74 $53.19 $7,068.17 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ----------------------------------------------------------------------------------------------------- Participant Loan Date of making: 7/28/97 $1,548.63 $516.56 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 7/14/97 $89.24 $21.72 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 3/31/97 $59.10 $0.00 Maturity: 4/1/02 Rate: 8.25% Participant Loan Date of making: 11/4/97 $114.08 $0.58 Maturity: 12/1/98 Rate: 8.5% Participant Loan Date of making: 12/31/95 $39.21 $0.00 Maturity: 1/1/01 Rate: 8.75% Participant Loan Date of making: 2/28/95 $169.09 $25.94 Maturity: 3/1/99 Rate: 8.5% Participant Loan Date of making: 4/30/95 $3,384.98 $797.85 Maturity: 5/1/00 Rate: 9.0%
The accompanying notes are an integral part of this schedule -13- 17 GENERAL DYNAMICS SAVINGS AND STOCK INVESTMENT PLAN SCHEDULE II LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS 4 OF 6
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - ------------------------------------------------------------------------------------- Participant Loan $7,000.00 $1,104.48 $113.88 $858.91 Participant Loan $23,000.00 $3,521.71 $1,669.19 $19,478.29 Participant Loan $13,000.00 $1,990.18 $944.18 $11,009.82 Participant Loan $8,400.00 $1,540.02 $344.74 $5,222.82 Participant Loan $2,000.00 $829.61 $124.56 $1,170.39 Participant Loan $15,000.00 $3,290.04 $781.56 $8,001.60 Participant Loan $26,000.00 $4,907.57 $1,163.52 $17,758.29 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ----------------------------------------------------------------------------------------------------- Participant Loan Date of making: 1/31/94 $625.57 $100.10 Maturity: 2/1/99 Rate: 6.0% Participant Loan Date of making: 8/14/97 $1,349.99 $537.59 Maturity: 9/1/02 Rate: 8.5% Participant Loan Date of making: 9/2/97 $508.60 $230.12 Maturity: 10/1/02 Rate: 8.5% Participant Loan Date of making: 11/30/96 $182.82 $31.34 Maturity: 12/01/01 Rate: 8.25% Participant Loan Date of making: 10/31/97 $211.88 $15.26 Maturity: 11/1/99 Rate: 8.5% Participant Loan Date of making: 2/29/96 $1,316.28 $93.12 Maturity: 3/30/01 Rate: 9.25% Participant Loan Date of making: 3/31/97 $424.89 $0.20 Maturity: 4/30/02 Rate: 8.25%
The accompanying notes are an integral part of this schedule -14- 18 GENERAL DYNAMICS SAVINGS AND STOCK INVESTMENT PLAN SCHEDULE II LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS 5 OF 6
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - ------------------------------------------------------------------------------------- Participant Loan $1,000.00 $437.19 $66.81 $562.81 Participant Loan $700.00 $74.55 $18.27 $508.75 Participant Loan $10,000.00 $1,676.90 $315.10 $2,347.35 Participant Loan $20,000.00 $3,939.99 $315.10 $2,347.35 Participant Loan $14,000.00 $2,354.07 $1,183.68 $11,645.93 Participant Loan $5,000.00 $1,264.14 $314.06 $3,735.86 Participant Loan $10,000.00 $3,127.86 $489.12 $2,894.86 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ----------------------------------------------------------------------------------------------------- Participant Loan Date of making: 10/27/97 $83.24 $4.26 Maturity: 11/1/99 Rate: 8.25% Participant Loan Date of making: 1/31/97 $65.49 $13.05 Maturity: 2/28/02 Rate: 8.25% Participant Loan Date of making: 8/31/94 $847.52 $115.95 Maturity: 9/1/99 Rate: 7.25% Participant Loan Date of making: 7/3/97 $595.30 $225.26 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 7/3/97 $819.67 $239.18 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 11/19/97 $263.71 $51.93 Maturity: 12/1/00 Rate: 8.5% Participant Loan Date of making: 7/31/96 $588.28 $40.76 Maturity: 8/1/99 Rate: 8.25%
The accompanying notes are an integral part of this schedule -15- 19 GENERAL DYNAMICS SAVINGS AND STOCK INVESTMENT PLAN SCHEDULE II LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS 6 OF 6
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - ------------------------------------------------------------------------------------- Participant Loan $17,900.00 $2,557.15 $1,298.96 $15,342.85 Participant Loan $6,500.00 $1,529.66 $272.80 $270.70 Participant Loan $50,000.00 $5,113.92 $2,698.17 $44,886.08 Participant Loan $12,000.00 $1,476.17 $381.28 $5,723.83 Participant Loan $3,500.00 $697.35 $134.56 $2,802.65 Participant Loan $10,000.00 $1,936.55 $436.81 $3,833.23 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ----------------------------------------------------------------------------------------------------- Participant Loan Date of making: 11/11/97 $705.24 $212.90 Maturity: 12/1/02 Rate: 8.5% Participant Loan Date of making: 12/31/94 $135.44 $24.80 Maturity: 1/31/99 Rate: 8.5% Participant Loan Date of making: 9/2/97 $4,734.91 $1,814.62 Maturity: 10/1/02 Rate: 8.5% Participant Loan Date of making: 11/30/95 $923.83 $190.64 Maturity: 12/31/00 Rate: 8.75% Participant Loan Date of making: 4/22/98 $262.92 $19.01 Maturity: 5/1/00 Rate: 8.5% Participant Loan Date of making: 9/30/95 $166.69 $39.71 Maturity: 10/1/00 Rate: 8.75%
The accompanying notes are an integral part of this schedule -16- 20 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. GENERAL DYNAMICS CORPORATION As Plan Administrator of the General Dynamics Corporation Savings and Stock Investment Plan By /s/ David A. Savner ------------------------- David A. Savner Secretary Dated: June 30, 1999 -17- 21 EXHIBIT 23 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 30, 1999 -18- EX-99.G 3 1998 ANNUAL REPORT ON FORM 11-K 1 Exhibit 99G - -------------------------------------------------------------------------------- EXHIBIT 99G TO ANNUAL REPORT ON FORM 10-K COMMISSION FILE NO. 1-3671 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE YEAR ENDED DECEMBER 31, 1998 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 its principal executive office: GENERAL DYNAMICS CORPORATION 3190 FAIRVIEW PARK DRIVE FALLS CHURCH, VIRGINIA 22042-4253 2 GENERAL DYNAMICS CORPORATION SAVINGS AND STOCK INVESTMENT PLAN INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
Pages of this Exhibit 99G (a) FINANCIAL STATEMENTS Report of Independent Public Accountants 1 Statements of Net Assets Available for Benefits, as of December 31, 1998 and 1997 2-3 Statement of Changes in Net Assets Available for Benefits, For the Year Ended December 31, 1998 4 Notes to Financial Statements 5-8 Schedule I - Statement of Investments in Master Trust Funds 9-10 as of December 31, 1998 Schedule II - Schedule of Loans or Fixed Income Obligations 11-23 (b) SIGNATURE 24 (c) EXHIBITS Exhibit 23- Consent of Independent Public Accountants 25
3 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998 AND 1997 TOGETHER WITH AUDITORS' REPORT 4 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, 1998 and 1997, and the related statement of changes in net assets available for benefits for the year ended December 31, 1998. These financial statements and the schedule referred to below are the responsibility of the Plan's management. 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 Plan as of December 31, 1998 and 1997, and the changes in net assets available for benefits for the year ended December 31, 1998, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental statement of investments in master trust funds (schedule I), is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The 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 are the responsibility of the Plan's management. 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. /s/ ARTHUR ANDERSEN LLP - ------------------------------ ARTHUR ANDERSEN LLP 1 Washington, D.C. June 4, 1999 5 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1998
STOCK FIXED INCOME BOND INDEX BALANCED TOTAL FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- ASSETS: Investment in Master Trust $ 574,957,607 $ 101,534,200 $ 219,353,511 $ 59,364,352 $ 13,711,292 Loans receivable 8,732,055 - - - - Miscellaneous receivables 384,676 81,887 96,920 10,445 18,572 ------------- ------------- ------------- ------------- ------------- Total assets 584,074,338 101,616,087 219,450,431 59,374,797 13,729,864 ------------- ------------- ------------- ------------- ------------- LIABILITIES: Fund transfers - 225,762 (267,938) (3,982) - Accrued payables 151,539 21,714 89,907 7,572 - ------------- ------------- ------------- ------------- ------------- Total liabilities 151,539 247,476 (178,031) 3,590 - ------------- ------------- ------------- ------------- ------------- Net assets available for benefits $ 583,922,799 $ 101,368,611 $ 219,628,462 $ 59,371,207 $ 13,729,864 ============= ============= ============= ============= ============= S&P 500 STOCK INTERNATIONAL SMALL CAP DISTRIBUTION LOAN INDEX FUND INDEX FUND INDEX FUND ACCOUNT FUND ------------- ------------- ------------- ------------- ------------- ASSETS: Investment in Master Trust $ 172,007,100 $ 1,813,651 $ 6,671,178 $ 502,323 $ - Loans receivable - - - - 8,732,055 Miscellaneous receivables 134,958 2,600 10,535 - 28,759 ------------- ------------- ------------- ------------- ------------- Total assets 172,142,058 1,816,251 6,681,713 502,323 8,760,814 ------------- ------------- ------------- ------------- ------------- LIABILITIES: Fund transfers 99,451 (19,074) (34,219) - - Accrued payables 8,649 - - - 23,697 ------------- ------------- ------------- ------------- ------------- Total liabilities 108,100 (19,074) (34,219) - 23,697 ------------- ------------- ------------- ------------- ------------- Net assets available for benefits $ 172,033,958 $ 1,835,325 $ 6,715,932 $ 502,323 $ 8,737,117 ============= ============= ============= ============= =============
The accompanying notes are an integral part of this financial statement -2- 6 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 1997
STOCK FIXED INCOME BOND INDEX BALANCED TOTAL FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ASSETS: Investment in Master Trust $449,622,959 $ 61,633,725 $202,337,138 $ 61,098,508 $ 6,751,895 Loans receivable 4,183,423 - - - - ------------ ------------ ------------ ------------ ------------ Total assets 453,806,382 61,633,725 202,337,138 61,098,508 6,751,895 ------------ ------------ ------------ ------------ ------------ LIABILITIES: Fund transfers - (49,547) 20,374 3,800 (17,156) Accrued payables 64,124 8,080 27,539 10,981 1,505 ------------ ------------ ------------ ------------ ------------ Total liabilities 64,124 (41,467) 47,913 14,781 (15,651) ------------ ------------ ------------ ------------ ------------ Net assets available for benefits $453,742,258 $ 61,675,192 $202,289,225 $ 61,083,727 $ 6,767,546 ============ ============ ============ ============ ============ S&P 500 STOCK INTERNATIONAL SMALL CAP LOAN INDEX FUND INDEX FUND INDEX FUND FUND ------------ ------------ ------------ ------------ Assets: Investment in Master Trust $110,319,565 $ 1,054,773 $ 6,427,355 $ - Loans receivable - - - 4,183,423 ------------ ------------ ------------ ------------ Total assets 110,319,565 1,054,773 6,427,355 4,183,423 ------------ ------------ ------------ ------------ LIABILITIES: Fund transfers 108,286 - (65,757) - Accrued payables 14,771 184 1,064 - ------------ ------------ ------------ ------------ Total liabilities 123,057 184 (64,693) - ------------ ------------ ------------ ------------ Net assets available for benefits $110,196,508 $ 1,054,589 $ 6,492,048 $ 4,183,423 ============ ============ ============ ============
The accompanying notes are an integral part of this finanicial statement -3- 7 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1998
STOCK FIXED INCOME BOND INDEX BALANCED TOTAL FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- Participation in income (loss) of Master Trust $ 85,426,379 $ 26,320,633 $ 15,743,823 $ 4,624,100 $ 1,744,141 ------------- ------------- ------------- ------------- ------------- ADD (DEDUCT): Rollover contributions 555,551 117,828 70,552 28,956 82,760 Contributions by participants 19,925,392 3,440,597 6,153,673 1,004,582 987,664 Contributions by General Dynamics Corporation 7,465,225 2,429,894 1,958,812 381,218 273,315 Participating forfeitures (19,927) 1,829 (3,867) (835) (347) Loan repayments 512,613 699,231 762,291 209,178 74,648 Interportfolio transfers - 12,504,370 (12,790,114) (1,546,816) 828,913 Distributions to withdrawn participants (46,571,693) (5,499,443) (22,344,609) (6,048,846) (566,221) New loans issued - (321,520) (2,522,352) (364,057) (368,580) Transfers in from BIW Hourly Plan (Note 9) 62,384,678 - 30,311,028 - 3,906,025 Miscellaneous pending transactions 502,323 - - - - ------------- ------------- ------------- ------------- ------------- Net increase (decrease) 130,180,541 39,693,419 17,339,237 (1,712,520) 6,962,318 ------------- ------------- ------------- ------------- ------------- NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 453,742,258 61,675,192 202,289,225 61,083,727 6,767,546 ------------- ------------- ------------- ------------- ------------- End of year $ 583,922,799 $ 101,368,611 $ 219,628,462 $ 59,371,207 $ 13,729,864 ============= ============= ============= ============= ============= S&P 500 STOCK INTERNATIONAL SMALL CAP DISTRIBUTION LOAN FUND INDEX FUND INDEX FUND ACCOUNT FUND ------------- ------------- ------------- ------------- ------------- Participation in income (loss) of Master Trust $ 37,231,216 $ 233,146 $ (470,680) $ - $ - ------------- ------------- ------------- ------------- ------------- Add (deduct): Rollover contributions 208,964 5,131 41,360 - - Contributions by participants 7,653,513 120,800 564,563 - - Contributions by General Dynamics Corporation 2,200,482 37,104 184,400 - - Participating forfeitures (6,849) (4,639) (5,219) - - Loan repayments 901,306 15,286 63,854 - (2,213,181) Interportfolio transfers 45,327 498,925 459,396 - - Distributions to withdrawn participants (11,350,880) (76,736) (412,955) - (272,004) New loans issued (3,213,254) (48,281) (200,835) - 7,038,879 Transfers in from BIW Hourly Plan (Note 9) 28,167,625 - - - - Miscellaneous pending transactions - - - 502,323 - ------------- ------------- ------------- ------------- ------------- Net increase (decrease) 61,837,450 780,736 223,884 502,323 4,553,694 ------------- ------------- ------------- ------------- ------------- NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 110,196,508 1,054,589 6,492,048 - 4,183,423 ------------- ------------- ------------- ------------- ------------- End of year $ 172,033,958 $ 1,835,325 $ 6,715,932 $ 502,323 $ 8,737,117 ============= ============= ============= ============= =============
The accompanying notes are an integral part of this financial statement -4- 8 GENERAL DYNAMICS CORPORATION HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998 AND 1997 1. The General Dynamics Corporation Hourly Employees Savings and Stock Investment Plan (the "Plan") is a defined contribution plan covering eligible hourly employees of General Dynamics Corporation (the "Company"). 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 participant may contribute from 1% to 10% of base earnings up to $12.01 per hour and 1% to 6% of base earnings in excess of $12.01 per hour up to $16.01 per hour. Maximum contributions for represented participants are determined by the applicable collective bargaining agreements. In addition, participants at some locations may contribute another 1% to 4% of base earnings up to $16.01 per hour on an unmatched basis. Participants at Armament Systems, Defense Systems, Advanced Technology Systems and Information Systems may contribute 1% to 15% of their salary on a pre-tax basis. Each participant shall direct his or her contributions to be invested in one percent increments into all funds. Participants can change their investment elections daily and can make an unlimited number of investment election changes each year. Most Company matching contributions to the Plan are invested in Company common stock. However, at certain locations the Company match follows the employee's election. Generally, participants that are eligible for the Company matching contribution and are 100 percent invested in the General Dynamics Stock Fund receive a 100 percent Company matching contribution in Company common stock. Participants that are eligible for the Company matching contribution but are less than 100 percent invested in the General Dynamics Stock Fund receive a 50 percent Company matching contribution in Company common stock. The matching contributions vary for participants at Armament Systems, Defense Systems, Advanced Technology Systems and Information Systems. Participants are eligible to participate in the Plan upon hire, and their contributions are always 100 percent vested. Company matching contributions are fully vested upon five years of service. Generally, for participants from many of the Company's subsidiaries, contributions invested in the General Dynamics Stock Fund must be maintained in that fund for 5 years before becoming eligible for transfer to any other fund. Therefore, a portion of the balance in the General Dynamics Stock Fund represents non-participant-directed investments due to the match. With the exception of the General Dynamics Stock Fund, all other investment funds are completely participant-directed. 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 -5- 9 regular payroll deductions over a period of up to five years. Loans are issued at the prime rate of interest. In the event the Plan is terminated, each participant will automatically be vested in the undistributed Company contributions. Each participant will receive payments based on the specific dollar amounts and shares of Company common stock in his or her account. 2. During June 1997, the Company extended the investment options for plan participants. The options added in 1997 include: Bond Index Fund, Balanced Fund, S&P 500 Stock Index Fund, International Index Fund and Small Cap Index Fund. These investment options offer participants the opportunity to invest in a broader range on the risk/return spectrum for actively traded securities. According to the Plan documents, the seven funds may hold the following types of investments: a) General Dynamics Stock Fund (the "Stock Fund") - The fund invests only in common stock of the Company. b) Fixed Income Fund - The fund invests in General Account and Separate Account Guaranteed Investment Contracts ("GICs"). General Account GICs are deposits with an insurance company that earn a contractually specified rate of return over a defined period. These contracts are secured by the issuer's general account (a broadly diversified portfolio of fixed income assets) and the net worth of the insurance company. Separate Account GICs are deposits with an insurance company, but are invested in a separate portfolio of high-quality securities. The GICs are not guaranteed by the Company or any government agency. c) Bond Index Fund - The fund invests in government, corporate, mortgage-backed and asset-backed securities. The fund also invests in high-quality bonds, as defined. d) Balanced Fund - The fund is a mixed portfolio of commingled stocks and bond funds. The fund is made up of international equities, U.S. large cap equities, fixed income securities and U.S. small cap equities. e) S&P 500 Stock Index Fund - The fund invests in all 500 U.S. common stocks in the S&P 500 Index in proportion to their weighting in the S&P 500 Index. It may also hold 2% to 5% of its value in S&P 500 futures contracts. f) 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 weighting in the MSCI EAFE Index. g) Small Cap Index Fund - The fund attempts to invest in all 2,000 stocks in the Russell 2000 Index in proportion to their weighting in the Russell 2000 Index. The Russell 2000 Index represents the smallest two-thirds of the 3,000 largest U.S. companies. It may also hold 2% to 5% of its value in Russell 2000 Index futures contracts. -6- 10 All of the above funds may hold a small cash balance for purposes of liquidity and expense control that is maintained in The Northern Trust Company Collective Short-Term Investment Fund. 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. Certain financial statement captions have been changed to conform with the current year presentation. 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. The Plan's investments are in the General Dynamics Corporation Savings and Stock Investment Plan Master Trust (the "Master Trust"), which was established for the investment of assets of the Plan and the Savings and Stock Investment Plan (the "Plans"). Each participating plan has an undivided interest in the Master Trust. The assets of the Master Trust are held by The Northern Trust Company (the "Trustee"). The recordkeeper is Hewitt Associates. At December 31, 1998 and 1997, the Plan's interest in the net assets of the Master Trust was approximately 18.3% and 16.8%, respectively. Net assets and net participation in the income of the Master Trust are allocated to the Plans according to their percentage interest in the Master Trust. The following table presents the reported value of investments for the Master Trust.
December 31, ---------------------------------------- 1998 1997 ------------------ ------------------ General Dynamics Corporation common stock $ 762,414,942 $ 513,911,736 Investments in registered investment companies 1,138,026,273 901,907,398 Cash and cash equivalents 31,805,631 14,594,902 Loans receivable 28,704,785 22,839,462 Guaranteed investment contracts 1,218,525,581 1,255,533,974 ------------------ ------------------ Total $ 3,179,477,212 $ 2,708,787,472 ================== ==================
-7- 11 Investment income for the Master Trust is as follows:
Year Ended December 31, 1998 ------------------- Dividends $ 10,665,773 Interest 91,525,729 Net realized and unrealized gains on assets 401,630,816 ------------------- $ 503,822,318 ===================
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 1998, the Plan document provides that these costs may be reimbursed by the Company. 7. 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, 1998 and 1997, amounts payable on withdrawals and distributions were $830,385 and $85,013, respectively. In addition, on the statement of changes in net assets available for benefits, 1998 distributions to withdrawn participants would have been $47,402,078 instead of $46,571,693 if the December 31 amounts payable on withdrawals and distributions had been included. 8. Most investments held by the Master Trust are recorded at quoted market value as stated on public exchanges as of December 31, 1998 and 1997. The Company values the GICs in the Fixed Income Fund 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." As of December 31, 1998 and 1997, the GICs included in the Master Trust are reported at contract value because they have been determined to be fully benefit responsive. For example, participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. There are no reserves against contract value for credit risk of the contract issuers or otherwise. The fair value of the GICs at December 31, 1998 was approximately $1.28 billion. The average yield and crediting interest rates ranged from 5.62 percent to 10.0 percent for 1998. 9. During 1998, the assets of the Bath Iron Works ("BIW") Hourly Plan were merged into the Plan and the related Master Trust. -8- 12 GENERAL DYNAMICS CORPORATION SCHEDULE I HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN 1 OF 2 STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1998
MARKET/CONTRACT COST VALUE ------------------ ----------------- GENERAL DYNAMICS STOCK FUND: Investment in common stock of General Dynamics Corporation * $ 287,427,476 $ 762,414,942 Temporary investments in The Northern Trust Company Collective Short-Term Investment Fund * 1,896,652 1,896,652 ------------------ ------------------ Total $ 289,324,128 $ 764,311,594 ================== ================== PROPORTIONATE INTEREST $ 101,534,200 ================== FIXED INCOME FUND: Investment in the Fixed Income Fund $ 1,218,525,580 $ 1,218,525,580 Temporary investments The Northern Trust Company Collective Short-Term Investment Fund * 26,257,956 26,257,956 ------------------ ------------------ Total $ 1,244,783,536 $ 1,244,783,536 ================== ================== PROPORTIONATE INTEREST $ 219,353,511 ================== BOND INDEX FUND: Investment in the Bond Index Fund $ 145,203,664 $ 167,485,221 ================== ================== PROPORTIONATE INTEREST $ 59,364,352 ================== BALANCED FUND: Investment in the Balanced Fund $ 61,656,640 $ 71,696,277 ================== ================== PROPORTIONATE INTEREST $ 13,711,292 ==================
The accompanying notes are an integral part of this schedule. -9- 13 GENERAL DYNAMICS CORPORATION SCHEDULE I HOURLY EMPLOYEES SAVINGS AND STOCK INVESTMENT PLAN 2 OF 2 STATEMENT OF INVESTMENTS IN MASTER TRUST FUNDS AS OF DECEMBER 31, 1998
Market/Contract Cost Value ----------------- ----------------- S&P 500 STOCK INDEX FUND: Investment in the S&P 500 Stock Index Fund $ 542,185,771 $ 838,059,236 ================= ================= PROPORTIONATE INTEREST $ 172,007,100 ================= INTERNATIONAL INDEX FUND: Investment in the International Index Fund $ 13,089,556 $ 14,246,751 ================= ================= PROPORTIONATE INTEREST $ 1,813,651 ================= SMALL CAP INDEX FUND: Investment in the Small Cap Index Fund $ 45,827,472 $ 46,538,788 ================= ================= PROPORTIONATE INTEREST $ 6,671,178 ================= DISTRIBUTION ACCOUNT Distribution Account $ 3,651,023 $ 3,651,023 ================= ================= PROPORTIONATE INTEREST $ 502,323 ================= LOAN FUND: Loans Receivable $ 28,704,785 $ 28,704,785 ================= ================= PROPORTIONATE INTEREST $ 8,732,055 =================
* denotes party-in-interest The accompanying notes are an integral part of this schedule. -10- 14 SCHEDULE II 1 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $3,000.00 $2,226.00 $192.20 $774.00 Participant Loan $5,000.00 $913.26 $319.14 $3,998.91 Participant Loan $500.00 $0.00 $0.00 $500.00 Participant Loan $1,500.00 $542.80 $88.52 $957.20 Participant Loan $10,000.00 $1,970.39 $307.32 $1,145.40 Participant Loan $6,000.00 $945.15 $439.83 $4,728.94 Participant Loan $6,000.00 $1,004.00 $442.54 $4,670.09 Participant Loan $1,500.00 $645.45 $71.17 $562.86 Participant Loan $7,000.00 $902.40 $371.52 $6,097.60 Participant Loan $1,800.00 $548.89 $104.43 $1,055.93 Participant Loan $10,000.00 $2,469.54 $438.63 $7,530.46 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------- Participant Loan Date of making: 1/9/98 $256.21 $5.49 Maturity: 2/1/99 Rate: 8.5% Participant Loan Date of making: 10/6/97 $190.51 $55.97 Maturity: 11/1/01 Rate: 8.5% Participant Loan Date of making: 8/13/98 $120.94 $10.10 Maturity: 9/1/99 Rate: 8.5% Participant Loan Date of making: 1/20/98 $51.19 $0.00 Maturity: 2/1/00 Rate: 8.5% Participant Loan Date of making: 12/31/93 $812.26 $100.15 Maturity: 2/28/99 Rate: 6.0% Participant Loan Date of making: 7/22/97 $89.62 $2.72 Maturity: 8/1/02 Rate 8.5% Participant Loan Date of making: 6/17/97 $121.02 $32.86 Maturity: 7/1/02 Rate: 8.5% Participant Loan Date of making: 6/6/97 $98.60 $3.78 Maturity: 7/1/99 Rate: 8.5% Participant Loan Date of making: 2/20/98 $236.28 $42.39 Maturity: 3/1/02 Rate: 8.5% Participant Loan Date of making: 6/6/97 $49.35 $7.45 Maturity: 7/1/00 Rate: 8.5% Participant Loan Date of making: 2/11/98 $1,083.26 $100.06 Maturity: 3/1/00 Rate: 8.5%
The accompanying notes are an integral part of this schedule -11- 15 SCHEDULE II 2 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $1,905.00 $476.18 $83.26 $1,428.82 Participant Loan $1,198.00 $212.15 $39.25 $0.00 Participant Loan $5,000.00 $1,560.09 $244.21 $3,439.91 Participant Loan $12,000.00 $1,815.42 $769.90 $9,697.46 Participant Loan $5,000.00 $0.00 $0.00 $5,000.00 Participant Loan $1,500.00 $385.48 $37.04 $1,114.52 Participant Loan $500.00 $214.31 $17.53 $285.69 Participant Loan $2,000.00 $77.32 $13.50 $1,845.90 Participant Loan $500.00 $6.73 $5.12 $493.27 Participant Loan $7,000.00 $507.87 $287.73 $6,492.13 Participant Loan $6,000.00 $538.56 $285.33 $5,461.44 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 3/31/98 $123.43 $9.77 Maturity: 4/1/00 Rate: 8.5% Participant Loan Date of Making: 4/17/98 $116.53 $13.36 Maturity: 5/1/00 Rate: 8.5% Participant Loan Date of making: 2/2/98 $216.64 $24.22 Maturity: 3/1/00 Rate: 8.5% Participant Loan Date of making: 8/25/97 $418.76 $135.24 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 7/15/97 $1,133.86 $507.26 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 6/1/98 $231.38 $0.00 Maturity: 7/1/99 Rate: 8.5% Participant Loan Date of making: 4/30/98 $72.05 $1.87 Maturity: 5/1/99 Rate: 8.5% Participant Loan Date of making: 10/28/97 $1,005.97 $84.47 Maturity: 11/1/99 Rate: 8.5% Participant Loan Date of making: 6/9/98 $27.42 $12.08 Maturity: 7/1/03 Rate: 8.5% Participant Loan Date of making: 3/6/98 $263.16 $90.44 Maturity: 4/1/03 Rate: 8.5% Participant Loan Date of making: 3/10/98 $122.58 $38.41 Maturity: 4/1/03 Rate: 8.5%
The accompanying notes are an integral part of this schedule -12- 16 SCHEDULE II 3 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $6,500.00 $290.88 $1,300.08 $3,207.76 Participant Loan $2,500.00 $519.80 $131.20 $1,795.23 Participant Loan $1,000.00 $566.42 $37.48 $433.58 Participant Loan $30,000.00 $6,000.00 $1,342.80 $20,500.00 Participant Loan $3,359.00 $415.46 $157.84 $2,943.54 Participant Loan $12,000.00 $1,020.01 $570.95 $10,979.99 Participant Loan $5,000.00 $863.35 $229.25 $4,136.65 Participant Loan $7,500.00 $2,004.63 $481.03 $5,126.75 Participant Loan $500.00 $90.70 $10.10 $409.30 Participant Loan $1,788.00 $268.71 $125.40 $1,471.04 Participant Loan $2,000.00 $817.76 $67.96 $1,182.24 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 3/31/97 $141.49 $24.24 Maturity: 4/1/02 Rate: 8.25% Participant Loan Date of making: 8/11/97 $260.49 $35.42 Maturity: 9/1/00 Rate: 8.5% Participant Loan Date of making: 3/13/98 $90.92 $3.02 Maturity: 4/1/99 Rate: 8.5% Participant Loan Date of making: 3/31/97 $1,000.00 $223.76 Maturity: 4/1/02 Rate: 8.25% Participant Loan Date of making: 3/24/98 $68.35 $20.83 Maturity: 4/1/02 Rate: 8.5% Participant Loan Date of making: 3/26/98 $301.94 $76.86 Maturity: 4/1/03 Rate: 8.5% Participant Loan Date of making: 3/23/98 $140.78 $29.18 Maturity: 4/1/01 Rate: 8.5% Participant Loan Date of making: 9/11/97 $319.66 $35.44 Maturity: 10/1/00 Rate: 8.5% Participant Loan Date of making: 12/10/98 $71.24 $2.68 Maturity: 1/1/00 Rate: 8.5% Participant Loan Date of making: 9/16/97 $35.49 $10.32 Maturity: 10/1/02 Rate: 8.5% Participant Loan Date of making: 4/21/98 $328.25 $7.25 Maturity: 5/1/99 Rate: 8.5%
The accompanying notes are an integral part of this schedule -13- 17 SCHEDULE II 4 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $8,000.00 $1,352.15 $521.34 $6,647.85 Participant Loan $500.00 $120.94 $10.10 $379.06 Participant Loan $688.00 $242.54 $20.80 $445.46 Participant Loan $2,500.00 $1,088.52 $132.91 $1,121.59 Participant Loan $6,200.00 $968.94 $253.70 $2,337.61 Participant Loan $4,400.00 $493.17 $147.63 $3,906.83 Participant Loan $18,000.00 $3,508.21 $805.68 $12,163.80 Participant Loan $978.00 $295.71 $47.83 $682.29 Participant Loan $12,900.00 $2,150.00 $493.00 $8,600.00 Participant Loan $5,878.00 $310.94 $163.87 $5,587.06 Participant Loan $900.00 $270.42 $56.98 $525.15 Participant Loan $1,000.00 $102.19 $54.23 $897.81 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 12/17/97 $249.40 $46.42 Maturity: 1/1/02 Rate: 8.5% Participant Loan Date of making: 6/3/98 $82.10 $5.26 Maturity: 7/1/99 Rate: 8.5% Participant Loan Date of making: 5/26/98 $94.08 $2.94 Maturity: 6/1/99 Rate: 8.5% Participant Loan Date of making: 8/6/97 $134.29 $7.72 Maturity: 9/1/99 Rate: 8.5% Participant Loan Date of making: 4/30/95 $477.68 $101.48 Maturity: 5/1/00 Rate: 9.0% Participant Loan Date of making: 5/6/98 $165.04 $27.20 Maturity: 6/1/01 Rate: 8.5% Participant Loan Date of making: 3/31/97 $463.80 $67.14 Maturity: 4/1/02 Rate: 8.25% Participant Loan Date of making: 11/24/97 $172.71 $5.02 Maturity: 12/1/99 Rate: 8.5% Participant Loan Date of making: 1/31/97 $430.00 $84.44 Maturity: 2/1/02 Rate: 8.25% Participant Loan Date of making: 3/2/98 $338.75 $154.68 Maturity: 4/1/03 Rate: 8.5% Participant Loan Date of making: 6/24/97 $21.36 $0.00 Maturity: 2/18/99 Rate: 8.5% Participant Loan Date of making: 2/25/98 $22.11 $6.33 Maturity: 3/1/03 Rate: 8.5%
The accompanying notes are an integral part of this schedule -14- 18 SCHEDULE II 5 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $2,384.00 $176.34 $57.81 $2,207.66 Participant Loan $22,000.00 $1,700.76 $903.24 $20,299.24 Participant Loan $1,000.00 $188.59 $51.98 $811.41 Participant Loan $600.00 $44.01 $4.35 $555.99 Participant Loan $2,500.00 $462.62 $129.20 $2,037.38 Participant Loan $6,500.00 $330.96 $86.47 $23,720.07 Participant Loan $8,500.00 $724.77 $290.79 $29,662.52 Participant Loan $1,000.00 $300.69 $62.59 $583.09 Participant Loan $4,500.00 $187.71 $93.78 $4,312.29 Participant Loan $1,034.00 $0.00 $0.00 $1,034.00 Participant Loan $5,055.00 $953.33 $262.39 $4,101.67 Participant Loan $5,000.00 $622.02 $303.90 $4,377.98 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 5/5/98 $180.12 $37.35 Maturity: 4/1/99 Rate: 8.5% Participant Loan Date of making: 2/17/98 $1,035.69 $422.55 Maturity: 3/1/03 Rate: 8.5% Participant Loan Date of making: 2/2/98 $38.05 $5.69 Maturity: 3/1/01 Rate: 8.5% Participant Loan Date of making: 8/4/98 $101.16 $7.65 Maturity: 9/1/99 Rate: 8.5% Participant Loan Date of making: 1/14/98 $169.47 $27.81 Maturity: 2/1/01 Rate: 8.5% Participant Loan Date of making: 6/3/97 $1,726.60 $317.65 Maturity: 7/1/00 Rate: 8.5% Participant Loan Date of making: 5/27/98 $186.88 $54.92 Maturity: 6/1/02 Rate: 8.5% Participant Loan Date of making: 6/13/97 $23.70 $0.00 Maturity: 7/1/00 Rate: 8.5% Participant Loan Date of making: 3/6/98 $25.59 $0.00 Maturity: 4/21/99 Rate: 8.5% Participant Loan Date of making: 6/11/98 $420.16 $30.94 Maturity: 7/1/99 Rate: 8.5% Participant Loan Date of making: 2/18/98 $192.33 $28.71 Maturity: 3/1/01 Rate: 8.5% Participant Loan Date of making: 12/9/97 $143.67 $58.68 Maturity: 1/1/03 Rate: 8.5%
The accompanying notes are an integral part of this schedule -15- 19 SCHEDULE II 6 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $4,000.00 $409.30 $205.93 $3,428.27 Participant Loan $3,888.00 $554.22 $283.00 $3,333.78 Participant Loan $6,000.00 $1,200.00 $268.56 $4,200.00 Participant Loan $1,000.00 $188.48 $19.53 $811.52 Participant Loan $22,000.00 $2,274.89 $1,187.13 $19,725.11 Participant Loan $1,300.00 $0.00 $0.00 $1,288.74 Participant Loan $5,200.00 $684.16 $155.12 $3,669.21 Participant Loan $4,875.00 $36.46 $34.58 $4,838.54 Participant Loan $6,106.00 $741.22 $287.02 $5,364.78 Participant Loan $6,617.00 $0.00 $0.00 $6,617.00 Participant Loan $551.00 $46.25 $22.60 $508.35 Participant Loan $1,698.00 $154.45 $80.72 $1,543.55 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 8/15/97 $275.87 $93.26 Maturity: 9/1/02 Rate: 8.5% Participant Loan Date of making: 11/18/97 $97.22 $23.40 Maturity: 12/1/02 Rate: 8.5% Participant Loan Date of making: 3/31/97 $300.00 $67.14 Maturity: 3/1/02 Rate: 8.25% Participant Loan Date of making: 7/17/98 $135.55 $5.36 Maturity: 8/1/99 Rate: 8.5% Participant Loan Date of making: 1/28/98 $776.48 $275.10 Maturity: 2/1/03 Rate: 8.5% Participant Loan Date of making: 7/9/97 $525.74 $111.00 Maturity: 8/1/00 Rate: 8.5% Participant Loan Date of making: 1/31/97 $375.95 $77.56 Maturity: 2/1/02 Rate: 8.25% Participant Loan Date of making: 2/18/98 $1,068.62 $245.62 Maturity: 3/1/01 Rate: 8.5% Participant Loan Date of making: 3/24/98 $138.21 $37.87 Maturity: 4/1/02 Rate: 8.5% Participant Loan Date of making: 2/25/98 $729.22 $398.10 Maturity: 3/1/03 Rate: 8.5% Participant Loan Date of making: 3/26/98 $18.13 $7.10 Maturity: 4/1/03 Rate: 8.5% Participant Loan Date of making: 3/16/98 $32.68 $10.87 Maturity: 4/1/03 Rate: 8.5%
The accompanying notes are an integral part of this schedule -16- 20 SCHEDULE II 7 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $6,000.00 $700.84 $345.59 $5,055.59 Participant Loan $30,000.00 $4,593.02 $2,225.38 $25,406.98 Participant Loan $939.00 $108.97 $18.95 $830.03 Participant Loan $1,000.00 $36.97 $14.06 $963.03 Participant Loan $16,500.00 $2,574.90 $1,143.25 $13,255.42 Participant Loan $5,000.00 $1,406.14 $290.40 $3,012.37 Participant Loan $13,600.00 $2,720.04 $530.76 $2,719.84 Participant Loan $2,194.00 $468.26 $83.98 $1,725.74 Participant Loan $4,500.00 $988.92 $286.32 $3,165.54 Participant Loan $10,000.00 $890.82 $341.58 $9,109.18 Participant Loan $2,090.00 $0.00 $0.00 $2,090.00 Participant Loan $10,000.00 $2,564.14 $592.26 $6,944.38 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 8/5/97 $326.65 $104.24 Maturity: 9/1/02 Rate: 8.5% Participant Loan Date of making: 10/13/97 $874.11 $309.64 Maturity: 11/1/02 Rate: 8.5% Participant Loan Date of making: 4/29/98 $148.88 $21.68 Maturity: 5/1/00 Rate: 8.5% Participant Loan Date of making: 4/20/98 $189.67 $43.61 Maturity: 5/1/00 Rate: 8.5% Participant Loan Date of making: 8/18/97 $250.25 $93.84 Maturity: 9/1/02 Rate: 8.5% Participant Loan Date of making: 6/17/97 $215.98 $20.76 Maturity: 7/1/00 Rate: 8.5% Participant Loan Date of making: 8/31/94 $453.34 $88.46 Maturity: 10/1/99 Rate: 7.25% Participant Loan Date of making: 4/20/98 $133.86 $11.87 Maturity: 5/1/00 Rate: 8.5% Participant Loan Date of making: 6/17/97 $88.51 $22.37 Maturity: 7/1/01 Rate: 8.5% Participant Loan Date of making: 4/28/98 $365.23 $127.73 Maturity: 5/1/02 Rate: 8.5% Participant Loan Date of making: 8/20/98 $242.25 $42.84 Maturity: 9/1/00 Rate: 8.5% Participant Loan Date of making: 9/24/97 $534.89 $96.39 Maturity: 10/1/00 Rate: 8.5%
The accompanying notes are an integral part of this schedule -17- 21 SCHEDULE II 8 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $9,000.00 $2,981.76 $427.68 $1,313.48 Participant Loan $5,000.00 $790.51 $229.25 $4,209.49 Participant Loan $2,000.00 $563.44 $147.32 $1,436.56 Participant Loan $8,000.00 $1,051.86 $466.90 $6,623.26 Participant Loan $5,000.00 $701.36 $265.60 $4,298.64 Participant Loan $3,500.00 $522.12 $249.30 $2,930.82 Participant Loan $2,094.00 $644.50 $102.14 $1,449.50 Participant Loan $10,000.00 $1,990.36 $447.48 $6,720.73 Participant Loan $9,000.00 $864.75 $435.45 $8,135.25 Participant Loan $3,000.00 $1,145.90 $149.61 $1,506.27 Participant Loan $2,400.00 $480.00 $107.52 $1,492.24 Participant Loan $1,983.00 $360.43 $140.59 $1,622.57 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 1/31/96 $568.11 $71.28 Maturity: 6/10/99 Rate: 8.5% Participant Loan Date of making: 3/19/98 $213.62 $29.18 Maturity: 4/1/01 Rate: 8.5% Participant Loan Date of making: 11/24/97 $47.40 $0.00 Maturity: 12/1/00 Rate: 8.5% Participant Loan Date of making: 8/15/97 $406.74 $167.93 Maturity: 6/13/99 Rate: 8.5% Participant Loan Date of making: 2/17/98 $111.89 $30.31 Maturity: 3/1/02 Rate: 8.5% Participant Loan Date of making: 10/9/97 $69.14 $20.56 Maturity: 11/1/02 Rate: 8.5% Participant Loan Date of making: 2/18/98 $99.67 $10.13 Maturity: 3/1/00 Rate: 8.5% Participant Loan Date of making: 3/31/97 $54.13 $0.00 Maturity: 4/1/02 Rate: 8.5% Participant Loan Date of making: 2/26/98 $255.02 $106.18 Maturity: 3/1/03 Rate: 8.5% Participant Loan Date of making: 8/25/97 $321.46 $19.47 Maturity: 9/1/99 Rate: 8.5% Participant Loan Date of making: 3/31/97 $132.24 $26.88 Maturity: 4/1/02 Rate: 8.25% Participant Loan Date of making: 11/12/97 $74.31 $11.23 Maturity: 12/1/02 Rate: 8.5%
The accompanying notes are an integral part of this schedule -18- 22 SCHEDULE II 9 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $1,000.00 $168.80 $67.40 $773.41 Participant Loan $600.00 $23.08 $8.42 $576.92 Participant Loan $20,000.00 $1,362.69 $720.27 $18,637.31 Participant Loan $4,000.00 $833.40 $147.80 $1,573.39 Participant Loan $8,000.00 $679.78 $381.14 $7,320.22 Participant Loan $4,036.00 $1,553.37 $235.08 $2,482.63 Participant Loan $20,500.00 $1,578.24 $841.30 $18,921.76 Participant Loan $3,000.00 $231.07 $41.67 $2,768.93 Participant Loan $1,000.00 $107.09 $41.13 $829.91 Participant Loan $677.00 $27.12 $422.34 $254.66 Participant Loan $4,000.00 $999.43 $175.73 $3,000.57 Participant Loan $7,000.00 $1,400.04 $313.32 $4,773.68 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 6/30/97 $15.06 $5.50 Maturity: 7/1/02 Rate: 8.5% Participant Loan Date of making: 8/28/98 $46.44 $3.96 Maturity: 9/1/00 Rate: 8.5% Participant Loan Date of making: 4/27/98 $558.67 $230.33 Maturity: 5/1/03 Rate: 8.5% Participant Loan Date of making: 3/31/97 $323.61 $44.34 Maturity: 4/1/01 Rate: 8.25% Participant Loan Date of making: 3/31/98 $201.29 $51.31 Maturity: 4/1/03 Rate: 8.5% Participant Loan Date of making: 12/29/97 $212.06 $17.22 Maturity: 1/1/00 Rate: 8.5% Participant Loan Date of making: 4/29/98 $391.08 $133.23 Maturity: 5/1/03 Rate: 8.5% Participant Loan Date of making: 7/17/98 $272.74 $42.48 Maturity: 3/15/99 Rate: 8.5% Participant Loan Date of making: 12/11/97 $92.82 $30.46 Maturity: 1/1/02 Rate: 8.5% Participant Loan Date of making: 2/20/98 $80.10 $1.62 Maturity: 5/13/99 Rate: 8.5% Participant Loan Date of making: 3/2/98 $259.18 $20.62 Maturity: 4/1/00 Rate: 8.5% Participant Loan Date of making: 2/28/97 $223.75 $26.11 Maturity: 3/1/02 Rate: 8.25%
The accompanying notes are an integral part of this schedule -19- 23 SCHEDULE II 10 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $2,100.00 $47.04 $188.58 $1,561.42 Participant Loan $6,000.00 $2,000.04 $264.60 $2,833.27 Participant Loan $7,000.00 $1,198.35 $525.45 $5,517.61 Participant Loan $3,500.00 $472.34 $139.66 $3,021.66 Participant Loan $4,300.00 $1,011.86 $174.79 $1,459.49 Participant Loan $7,500.00 $1,718.77 $305.03 $4,577.23 Participant Loan $1,900.00 $479.53 $41.88 $757.85 Participant Loan $2,058.00 $313.44 $140.74 $1,632.86 Participant Loan $832.00 $54.23 $28.30 $777.77 Participant Loan $3,000.00 $1,332.85 $94.30 $3,000.00 Participant Loan $8,000.00 $1,251.41 $320.40 $3,610.11 Participant Loan $6,800.00 $1,690.22 $402.63 $4,775.76 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 1/31/97 $213.42 $47.04 Maturity: 2/1/02 Rate: 8.25% Participant Loan Date of making: 2/28/97 $333.34 $33.35 Maturity: 3/1/00 Rate: 8.25% Participant Loan Date of making: 6/2/97 $209.80 $41.58 Maturity: 7/1/02 Rate: 8.5% Participant Loan Date of making: 4/3/98 $140.40 $21.10 Maturity: 5/1/01 Rate: 8.5% Participant Loan Date of making: 2/29/96 $115.96 $15.98 Maturity: 3/1/00 Rate: 8.25% Participant Loan Date of making: 3/31/97 $358.48 $55.46 Maturity: 4/1/01 Rate: 8.25% Participant Loan Date of making: 3/31/97 $520.42 $41.88 Maturity: 4/1/99 Rate: 8.25% Participant Loan Date of making: 7/11/97 $41.30 $11.52 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 5/20/98 $14.23 $5.42 Maturity: 6/1/03 Rate: 8.5% Participant Loan Date of making: 9/25/98 $105.73 $42.21 Maturity: 10/1/02 Rate: 8.5% Participant Loan Date of making: 4/30/95 $1,109.31 $152.79 Maturity: 5/1/00 Rate: 9.0% Participant Loan Date of making: 9/3/97 $417.38 $65.53 Maturity: 10/1/00 Rate: 8.5%
The accompanying notes are an integral part of this schedule -20- 24 SCHEDULE II 11 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $2,500.00 $343.55 $157.11 $2,020.83 Participant Loan $4,452.00 $600.93 $177.39 $3,851.07 Participant Loan $3,670.00 $489.83 $225.22 $2,930.05 Participant Loan $11,000.00 $1,223.08 $653.18 $9,629.15 Participant Loan $8,000.00 $1,969.02 $431.05 $5,100.93 Participant Loan $2,000.00 $312.18 $137.12 $1,587.01 Participant Loan $1,258.00 $0.00 $0.00 $1,258.00 Participant Loan $7,000.00 $1,604.24 $294.68 $3,062.32 Participant Loan $2,500.00 $298.33 $84.08 $2,201.67 Participant Loan $4,200.00 $791.50 $172.26 $2,912.76 Participant Loan $5,500.00 $148.30 $112.10 $5,351.70 Participant Loan $7,500.00 $0.00 $0.00 $6,038.23
(g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 7/22/97 $115.54 $0.00 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 3/6/98 $293.12 $52.80 Maturity: 4/1/01 Rate: 8.5% Participant Loan Date of making: 6/11/97 $147.68 $40.51 Maturity: 7/1/02 Rate: 8.5% Participant Loan Date of making: 10/7/97 $633.97 $197.93 Maturity: 11/1/02 Rate: 8.5% Participant Loan Date of making: 6/30/97 $626.02 $68.14 Maturity: 7/1/00 Rate: 8.5% Participant Loan Date of making: 7/29/97 $40.12 $11.23 Maturity: 8/1/02 Rate: 8.5% Participant Loan Date of making: 8/27/98 $145.82 $25.78 Maturity: 9/1/00 Rate: 8.5% Participant Loan Date of making: 6/30/96 $291.68 $41.76 Maturity: 7/1/00 Rate: 8.25% Participant Loan Date of making: 5/28/98 $75.56 $15.49 Maturity: 6/1/01 Rate: 8.5% Participant Loan Date of making: 12/31/96 $322.76 $15.49 Maturity: 1/1/02 Rate: 8.25% Participant Loan Date of making: 7/13/98 $150.41 $40.55 Maturity: 8/1/03 Rate: 8.5% Participant Loan Date of making: 8/31/96 $1,913.23 $419.70 Maturity: 9/1/01 Rate: 8.25%
The accompanying notes are an integral part of this schedule -21- 25 SCHEDULE II 12 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $10,000.00 $1,192.73 $602.24 $8,807.27 Participant Loan $7,643.00 $1,253.11 $86.59 $7,436.51 Participant Loan $3,000.00 $813.31 $205.65 $2,186.87 Participant Loan $2,500.00 $312.86 $149.29 $2,153.59 Participant Loan $10,000.00 $543.16 $277.40 $9,456.84 Participant Loan $6,480.00 $351.81 $200.61 $6,128.19 Participant Loan $1,967.00 $43.35 $14.01 $1,923.65 Participant Loan $6,000.00 $1,200.00 $268.56 $3,330.60 Participant Loan $1,000.00 $420.71 $57.03 $513.69 Participant Loan $2,500.00 $585.97 $95.75 $1,914.03 Participant Loan $25,000.00 $3,025.18 $1,463.39 $21,300.86 Participant Loan $2,500.00 $601.61 $148.03 $1,775.51 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 3/11/98 $194.45 $61.98 Maturity: 2/1/02 Rate: 8.5% Participant Loan Date of making: 9/17/98 $382.25 $51.95 Maturity: 10/1/00 Rate: 8.5% Participant Loan Date of making: 2/18/99 $103.06 $15.40 Maturity: 3/1/02 Rate: 8.5% Participant Loan Date of making: 10/21/97 $108.81 $45.24 Maturity: 11/1/02 Rate: 8.5% Participant Loan Date of making: 4/17/98 $417.54 $197.88 Maturity: 5/1/03 Rate: 8.5% Participant Loan Date of making: 2/18/98 $453.98 $190.51 Maturity: 3/1/03 Rate: 8.5% Participant Loan Date of making: 9/14/98 $53.25 $13.67 Maturity: 10/1/01 Rate: 8.5% Participant Loan Date of making: 7/31/96 $130.06 $22.38 Maturity: 8/1/01 Rate: 8.5% Participant Loan Date of making: 9/29/97 $76.19 $3.43 Maturity: 10/1/99 Rate: 8.5% Participant Loan Date of making: 4/17/98 $100.09 $13.53 Maturity: 5/1/00 Rate: 8.5% Participant Loan Date of making: 9/19/97 $1,224.74 $442.45 Maturity: 10/1/02 Rate: 8.5% Participant Loan Date of making: 9/22/97 $173.19 $24.09 Maturity: 10/1/00 Rate: 8.5%
The accompanying notes are an integral part of this schedule -22- 26 SCHEDULE II 13 OF 13 GENERAL DYNAMICS HOURLY SAVINGS AND STOCK INVESTMENT PLAN LINE 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
Amount received (f) Unpaid (c) Original during reporting year balance at (b) Identity of obligator amount of loan (d) Principal (e) Interest end of year - -------------------------------------------------------------------------------------------- Participant Loan $1,500.00 $429.78 $74.22 $1,070.22 Participant Loan $1,800.00 $91.02 $22.60 $1,530.75 Participant Loan $3,600.00 $406.82 $120.98 $3,193.18 Participant Loan $5,000.00 $747.76 $199.16 $4,252.24 (g) Detailed description of loan including dates of making and maturity, interest rate, the type and value of collateral, any renegotiation of the loan and terms of the renegotiation Amount overdue (b) Identity of obligator and other material items (h) Principal (i) Interest - ------------------------------------------------------------------------------------------------------ Participant Loan Date of making: 2/24/98 $102.89 $7.36 Maturity: 3/1/00 Rate: 8.5% Participant Loan Date of making: 12/3/98 $474.81 $93.29 Maturity: 11/1/01 Rate: 8.5% Participant Loan Date of making: 2/13/98 $409.50 $85.28 Maturity: 3/1/01 Rate: 8.5% Participant Loan Date of making: 3/31/98 $256.37 $59.27 Maturity: 4/1/01 Rate: 8.5%
The accompanying notes are an integral part of this schedule -23- 27 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. GENERAL DYNAMICS CORPORATION As Plan Administrator of the General Dynamics Corporation Hourly Employees Savings and Stock Investment Plan By /s/ David A. Savner -------------------------- David A. Savner Secretary Dated: June 30, 1999 -24- 28 EXHIBIT 23 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 30, 1999 -25- -----END PRIVACY-ENHANCED MESSAGE-----