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General Dynamics Annual Report (Amendment), Year Ended Dec 31, 1998

Filing Date
Filed June 30, 1999
Period End
December 31, 1998
Security
GD
In the record · 2016–202610-K1110-Q338-K98

GD filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 98 current reports (8-K) between 2016 and 2026.

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01—Abstract

Summary

Summary of the 10-K/A filed June 30, 1999. Cited figures are marked; the original filing is the authoritative source.

This filing is Amendment No. 1 to General Dynamics' 1998 Form 10-K.

It was filed only to add the annual Form 11-K reports for two employee savings plans, the Savings and Stock Investment Plan and the Hourly Employees Savings and Stock Investment Plan. It contains no consolidated financial statements, segment results, or management discussion of GD's operations, so it offers little direct information about the company's business performance. Investors should rely on the original 10-K filed March 18, 1999, and the 1998 Annual Report (Exhibit 13) for operating and financial results.

The retirement-plan financials show growing participant assets. Net assets available for benefits in the salaried plan rose from $2.25 billion at year-end 1997 to $2.60 billiona at year-end 1998, an increase of about 15%, driven largely by investment gains and net contributions. The hourly plan's net assets rose from $453.7 million to $583.9 million.

The General Dynamics Stock Fund in the master trust was valued at $762.4 millionb at year-end 1998, up from $513.9 million, reflecting both the stock's appreciation and continued company matching contributions in company stock. Participant withdrawals were substantial, with about $163 million in distributions from the salaried plan during 1998. The exhibit index also points to significant corporate transactions that occurred around the time of filing.

These include a May 16, 1999 merger agreement with Gulfstream Aerospace Corporation and a June 21, 1999 stock purchase agreement under which GD agreed to sell Contel Federal Systems to GTE Corporation. These agreements are referenced but not described in this amendment, so their financial terms and effects cannot be assessed from this document.

02—Key points

Key Highlights

  1. Filing type: Amendment No. 1 to the 1998 Form 10-K, filed June 30, 1999, adding only 11-K exhibits for employee savings plans; it contains no consolidated GD financial statements.
  2. Salaried Savings and Stock Investment Plan net assets available for benefits grew to $2,597.6 million at December 31, 1998, up from $2,252.2 million a year earlier (about +15%).
  3. Hourly Employees plan net assets grew to $583.9 million at December 31, 1998, up from $453.7 million (about +29%).
  4. The General Dynamics Stock Fund in the master trust was valued at $762.4 million at year-end 1998, up from $513.9 million in 1997, with the Stock Fund representing about $662.8 million of the salaried plan's assets.
  5. The salaried plan recorded $345.4 million in net increase for 1998, including $415.7 million in investment income from the master trust, offset by $163.0 million in participant distributions.
  6. The exhibit index references pending transactions: a May 16, 1999 merger agreement with Gulfstream Aerospace Corporation and a June 21, 1999 stock purchase agreement to sell Contel Federal Systems to GTE Corporation. The terms are not described in this filing.
  7. Auditor for the plans was Arthur Andersen LLP, which issued unqualified opinions on the plan financial statements dated June 4, 1999.

03—Questions

Frequently Asked Questions

  1. Does this filing contain General Dynamics' financial results for 1998?

    No. This amendment only attaches the Form 11-K annual reports for the company's two employee savings plans. GD's consolidated results, including revenue, earnings, and segment performance, appear in the original 1998 Form 10-K filed March 18, 1999 and its Exhibit 13 Annual Report.

  2. Why did General Dynamics file this amendment?

    The amendment was filed to include the 1998 Form 11-K annual reports for the Savings and Stock Investment Plan (Exhibit 99F) and the Hourly Employees Savings and Stock Investment Plan (Exhibit 99G). These reports are required for employee benefit plans and were filed as amendments to the 10-K.

  3. How much company stock do the employee plans hold, and why does it matter?

    The General Dynamics Stock Fund in the master trust was valued at $762.4 million at December 31, 1998. Company matching contributions are invested in GD common stock, and employees must generally hold matched shares for five years before transferring them. This creates a concentration of employee retirement assets in GD stock, so share price movements materially affect participants' retirement balances.

  4. What do the pending transactions mean for shareholders?

    The exhibit index references a May 1999 merger agreement with Gulfstream Aerospace and a June 1999 agreement to sell Contel Federal Systems to GTE. This filing does not describe their terms, expected financial impact, or timing. Investors should review GD's subsequent SEC filings, such as the 10-Q and 8-K reports, for those details.

04—Continue

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