Does this amendment contain updated financial results for General Dynamics?

No. The amendment only adds Exhibit 23.1 (auditor consent) and Exhibits 99.6 and 99.7 (Form 11-K employee plan reports). Corporate financial statements and operating results are in the original 2000 Form 10-K, not in this filing.

Why was this amendment filed?

The amendment was filed to add the auditor consent and the annual reports for the two employee savings plans, which are required to be filed as part of the 10-K package. It does not restate or change any previously reported corporate financials.

How much of the employee retirement plans is invested in General Dynamics stock?

The General Dynamics Stock Fund held about $1.17 billion of company common stock in the Master Trust at December 31, 2000. A large part of this is non-participant-directed because matching contributions must remain in the stock fund for five years for many subsidiary employees, so employee retirement wealth is significantly exposed to the company's share price.

What is the size and growth of the employee savings plans?

The salaried plan had net assets of about $3.09 billion at year-end 2000, up about 9.8% from $2.82 billion. The hourly plan had about $642 million, up about 5.9% from $607 million. Growth was driven by investment income, largely from the appreciation of company stock, and by employee and employer contributions.

Were there any audit concerns with the plan financial statements?

No. Arthur Andersen LLP issued unqualified opinions for both plans, stating that the financial statements present fairly, in all material respects, the net assets available for benefits as of December 31, 2000 and 1999. The plans' tax-qualified status is also represented by management and tax counsel.

GD 10-K FY2000 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K/A filed June 29, 2001. Cited figures are marked; the original filing is the authoritative source.

This filing is Amendment No. 1 to General Dynamics' 2000 Annual Report on Form 10-K, filed June 29, 2001.

It does not contain new financial statements for the company itself. Its sole purpose is to add three exhibits: the Arthur Andersen LLP consent (Exhibit 23.1), and Form 11-K annual reports for two employee benefit plans, the General Dynamics Savings and Stock Investment Plan (Exhibit 99.6) and the Hourly Employees Savings and Stock Investment Plan (Exhibit 99.7). Investors looking for the company's operating results, balance sheet, or risk disclosures should consult the original 10-K rather than this amendment.

The exhibits offer a window into the company's retirement plans. The salaried plan held net assets of about $3.09 billion^a at year-end 2000, up from $2.82 billion, and the hourly plan held about $642 million, up from $607 million. Both plans are defined contribution plans invested through a common Master Trust.

A major component is the General Dynamics Stock Fund, which held roughly $1.17 billion^b of company common stock at year-end 2000, up from $780 million in 1999. Company matching contributions are made in company stock, so employee holdings are closely tied to the share price. Both plans' auditor, Arthur Andersen, issued unqualified opinions dated June 18, 2001.

The filing is largely administrative and carries limited investment significance. Its main value to investors is the plan-level disclosure of employee ownership of company stock and the consent confirming the auditor's report is included in the record.

02—Key points

Key Highlights

Amendment No. 1 adds only exhibits: Arthur Andersen consent (23.1) and two Form 11-K plan reports (99.6, 99.7); no amended corporate financials are presented.
Salaried Savings and Stock Investment Plan net assets rose to about $3.09 billion at December 31, 2000, from $2.82 billion in 1999.
Hourly Employees Savings and Stock Investment Plan net assets rose to about $642 million at December 31, 2000, from $607 million in 1999.
The General Dynamics Stock Fund held about $1.17 billion of company common stock across the Master Trust at year-end 2000, versus $780 million in 1999.
Company matching contributions are made in General Dynamics common stock, with match levels of 50% to 100% depending on how much participants invest in the stock fund.
Both plans received unqualified audit opinions from Arthur Andersen LLP dated June 18, 2001, and the plans are represented as tax-qualified under Section 401(a).
Plan-level disclosures show a 2000 distribution to withdrawn participants of about $228 million for the salaried plan and $49 million for the hourly plan.

03—Questions

Frequently Asked Questions

Does this amendment contain updated financial results for General Dynamics?
No. The amendment only adds Exhibit 23.1 (auditor consent) and Exhibits 99.6 and 99.7 (Form 11-K employee plan reports). Corporate financial statements and operating results are in the original 2000 Form 10-K, not in this filing.
Why was this amendment filed?
The amendment was filed to add the auditor consent and the annual reports for the two employee savings plans, which are required to be filed as part of the 10-K package. It does not restate or change any previously reported corporate financials.
How much of the employee retirement plans is invested in General Dynamics stock?
The General Dynamics Stock Fund held about $1.17 billion of company common stock in the Master Trust at December 31, 2000. A large part of this is non-participant-directed because matching contributions must remain in the stock fund for five years for many subsidiary employees, so employee retirement wealth is significantly exposed to the company's share price.
What is the size and growth of the employee savings plans?
The salaried plan had net assets of about $3.09 billion at year-end 2000, up about 9.8% from $2.82 billion. The hourly plan had about $642 million, up about 5.9% from $607 million. Growth was driven by investment income, largely from the appreciation of company stock, and by employee and employer contributions.
Were there any audit concerns with the plan financial statements?
No. Arthur Andersen LLP issued unqualified opinions for both plans, stating that the financial statements present fairly, in all material respects, the net assets available for benefits as of December 31, 2000 and 1999. The plans' tax-qualified status is also represented by management and tax counsel.

04—Continue

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