01—Abstract
Summary
Summary of the 10-K/A filed June 28, 2000. Cited figures are marked; the original filing is the authoritative source.
This filing is not a full annual report.
It is Amendment No. 1 to General Dynamics' Form 10-K for fiscal year 1999, filed June 28, 2000, and its sole purpose is to attach the annual Form 11-K reports for two of the company's employee savings plans: the Savings and Stock Investment Plan (salaried employees) and the Hourly Employees Savings and Stock Investment Plan. The filing contains no operating results, segment data, revenue, earnings, balance sheet, cash flow, risk factors, or management commentary about the business. Investors seeking GD's 1999 financial performance should refer to the original 10-K filed March 27, 2000, and its Exhibit 13 (1999 Annual Report), which is incorporated by reference but not reproduced here.
The plan financials show a combined net asset value of roughly $3.43 billiona at year-end 1999 across the two plans ($2.82 billion for salaried and $0.61 billion for hourly), up from about $3.18 billion a year earlier. Both plans hold a large position in General Dynamics common stock through the GD Stock Fund, which had a market value of about $780 million at December 31, 1999 (up from $762 million in 1998). Company matching contributions are made in GD stock, and a portion of the stock fund is non-participant-directed due to five-year holding requirements for matched shares.
Participant-directed investments span a fixed income fund, bond index, balanced, S&P 500, international index, and small-cap index funds. From an investor standpoint, the amendment is largely administrative.
Its relevance lies mainly in the scale of employee ownership of GD shares and in the fact that the audit firm for the plans (Deloitte & Touche, in the plans' report) and the company's auditor (Arthur Andersen, consent in this filing) were both referenced. No material new information about GD's financial condition, strategy, or risks is disclosed.
02—Key points
Key Highlights
- Form 10-K/A (Amendment No. 1) for fiscal 1999, filed June 28, 2000, adds only Exhibits 99H and 99I (Form 11-K annual reports for employee savings plans); it does not restate the company's financial statements.
- Combined net assets available for benefits across the two plans were about $3.43 billion at December 31, 1999: $2.82 billion for the salaried Savings and Stock Investment Plan and $0.61 billion for the Hourly Employees plan.
- The General Dynamics Stock Fund held about $780 million of GD common stock in the Master Trust at year-end 1999, versus $762 million at year-end 1998, making employee plans a significant holder of company shares.
- The salaried plan's net assets rose about $221.7 million in 1999, driven by $157.4 million of participation in Master Trust income, $154.6 million of transfers in (including Gulfstream and GSC assets merged in November 1999), and employee and company contributions.
- Company matching contributions are made in GD stock, and a portion of the stock fund is non-participant-directed (about $685 million for the salaried plan and $110 million for the hourly plan) due to five-year holding requirements.
- Both plans had no reported costs reimbursed by the company in 1999 for administrative expenses, which were primarily paid by the plans themselves.
- The filing contains no business, operating, or financial performance disclosure for General Dynamics; investors should consult the original 10-K and its 1999 Annual Report (Exhibit 13).
03—Questions
Frequently Asked Questions
Why was this 10-K/A filed?
The amendment was filed to attach the annual Form 11-K reports for the company's Savings and Stock Investment Plan and Hourly Employees Savings and Stock Investment Plan for the year ended December 31, 1999. These reports are required to be furnished as exhibits to the annual report, so the company filed them by amendment after the original 10-K.
Does this filing show General Dynamics' 1999 revenue or earnings?
No. The filing contains only the employee benefit plan financial statements and related exhibits. Revenue, earnings, backlog, and segment results for 1999 are contained in the original 10-K filed March 27, 2000, and its incorporated 1999 Annual Report (Exhibit 13).
How much General Dynamics stock do the employee plans hold?
The General Dynamics Stock Fund in the Master Trust held about $780.1 million of GD common stock at December 31, 1999, up from $762.4 million at year-end 1998. The salaried plan holds the larger share of the Master Trust, about 82.3% of its net assets, with the hourly plan holding about 17.7%.
Are employees required to hold company stock?
Not directly. Participants choose their own investments in one percent increments, and the GD Stock Fund is one option among several. However, company matching contributions are made in GD stock, and for many subsidiaries those matched shares must be held for five years before they can be transferred to other funds, which makes part of the stock fund non-participant-directed.
Were there any material concerns raised by the auditors?
No. The plans' independent auditors issued unqualified opinions, stating the financial statements present fairly, in all material respects, the net assets available for benefits as of December 31, 1999 and 1998. Arthur Andersen consented to incorporation of its report by reference into the filing.
04—Continue