Does this filing contain General Dynamics' 1997 financial results?

No. It is a 10-K/A amendment that adds only the 11-K annual reports for two employee savings plans. Corporate revenue, earnings, and balance sheet data appear in the original 1997 Form 10-K and its Exhibit 13 shareholder report, which this amendment references but does not reproduce.

How large are the employee savings plans?

At December 31, 1997, the salaried plan held about $2.25 billion in net assets and the hourly plan about $453.7 million. Both participate in a shared Master Trust with total assets of about $2.71 billion at year-end 1997.

How much of the plans' assets were invested in GD stock?

The Master Trust held about $513.9 million of General Dynamics common stock at December 31, 1997, compared with about $419.1 million at December 31, 1996. The salaried plan's share of its General Dynamics Stock Fund was about $455.2 million, and the hourly plan's was about $61.7 million.

What do the plans' loan programs look like?

Participants may borrow up to 50% of their vested account balance and repay through payroll deductions over up to five years, at prime rate. At year-end 1997 the salaried plan had about $18.7 million in participant loans receivable and the hourly plan about $4.2 million.

Did the filing disclose any unusual items in the plan financial statements?

Yes. About $1.5 million of Bath Iron Works Hourly Plan assets were transferred to the salaried plan's trust in error by the prior trustee and were recorded as a liability. The hourly plan also absorbed Bath Iron Works Hourly Plan assets during 1998, and the salaried plan merged in Bath Iron Works Tax Deferred Savings Plan assets in April 1997.

GD 10-K FY1997 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K/A filed June 26, 1998. Cited figures are marked; the original filing is the authoritative source.

This document is not GD's full 1997 annual report.

It is Amendment No. 1 (Form 10-K/A) to the company's 1997 Form 10-K, filed June 26, 1998, and it contains only the Form 11-K annual reports for two employee savings plans: the General Dynamics Savings and Stock Investment Plan (salaried employees) and the Hourly Employees Savings and Stock Investment Plan. It includes no corporate income statement, balance sheet, revenue, earnings, backlog, or segment data, so it cannot support conclusions about GD's operating performance or valuation. The only corporate-level item relevant to investors is the plans' holdings of GD common stock.

At December 31, 1997, the salaried plan had net assets available for benefits of about $2.25 billion^a, and the hourly plan had about $453.7 million. Both invest through a common Master Trust held by Northern Trust, which held about $2.71 billion in total at year-end 1997. The Master Trust's largest single holding was General Dynamics common stock at about $513.9 million, up from $419.1 million a year earlier.

The salaried plan's net assets rose by about $141.3 million^b during 1997, driven by $263 million of investment income and $35 million of participant contributions, partly offset by $217 million of distributions to withdrawn participants. Company matching contributions were invested in GD stock and totaled about $22 million for salaried employees and $5 million for hourly employees. For investors, the practical relevance is limited.

The filing shows that employee retirement plans held a meaningful stake in GD shares and that matching contributions were made in company stock, which ties employee retirement wealth to share price. The auditor, Washington, D.C., report is dated June 15, 1998. Investors seeking GD's financial results for 1997 should consult the original 1997 Form 10-K and its shareholder report (Exhibit 13), which this amendment references but does not contain.

02—Key points

Key Highlights

The filing is Amendment No. 1 to GD's 1997 Form 10-K, filed June 26, 1998, and adds only Form 11-K plan reports as Exhibits 99D and 99E; it contains no corporate financial statements.
Salaried Savings and Stock Investment Plan net assets available for benefits were about $2.25 billion at December 31, 1997, up from about $2.11 billion in 1996.
Hourly Employees Savings and Stock Investment Plan net assets were about $453.7 million at December 31, 1997, up from about $446.5 million in 1996.
The Master Trust's General Dynamics common stock holding was about $513.9 million at year-end 1997, versus about $419.1 million in 1996, reflecting both added contributions and share price movement.
Salaried plan net assets increased by about $141.3 million in 1997, driven by about $263.0 million of investment income, partly offset by about $216.9 million of distributions to withdrawn participants.
Company matching contributions are made in GD common stock and must be held for five years, linking employee retirement assets directly to GD's share price.
The plans' fund options were expanded in June 1997 to include index funds (bond, S&P 500, international, small cap) and a balanced fund, alongside the GD Stock Fund and Fixed Income Fund.

03—Questions

Frequently Asked Questions

Does this filing contain General Dynamics' 1997 financial results?
No. It is a 10-K/A amendment that adds only the 11-K annual reports for two employee savings plans. Corporate revenue, earnings, and balance sheet data appear in the original 1997 Form 10-K and its Exhibit 13 shareholder report, which this amendment references but does not reproduce.
How large are the employee savings plans?
At December 31, 1997, the salaried plan held about $2.25 billion in net assets and the hourly plan about $453.7 million. Both participate in a shared Master Trust with total assets of about $2.71 billion at year-end 1997.
How much of the plans' assets were invested in GD stock?
The Master Trust held about $513.9 million of General Dynamics common stock at December 31, 1997, compared with about $419.1 million at December 31, 1996. The salaried plan's share of its General Dynamics Stock Fund was about $455.2 million, and the hourly plan's was about $61.7 million.
What do the plans' loan programs look like?
Participants may borrow up to 50% of their vested account balance and repay through payroll deductions over up to five years, at prime rate. At year-end 1997 the salaried plan had about $18.7 million in participant loans receivable and the hourly plan about $4.2 million.
Did the filing disclose any unusual items in the plan financial statements?
Yes. About $1.5 million of Bath Iron Works Hourly Plan assets were transferred to the salaried plan's trust in error by the prior trustee and were recorded as a liability. The hourly plan also absorbed Bath Iron Works Hourly Plan assets during 1998, and the salaried plan merged in Bath Iron Works Tax Deferred Savings Plan assets in April 1997.

04—Continue

← View all 10-K filings