| Statement Of Financial Position Classified (USD $) | ||
| In Millions | Jul. 05, 2009
| Dec. 31, 2008
|
| Current assets: | ||
| Cash and equivalents | $1,614 | $1,621 |
| Accounts receivable | 3,649 | 3,469 |
| Contracts in process | 4,408 | 4,341 |
| Inventories | 2,138 | 2,029 |
| Other current assets | 489 | 490 |
| Total current assets | 12,298 | 11,950 |
| Noncurrent assets: | ||
| Property, plant and equipment, net | 2,857 | 2,872 |
| Intangible assets, net | 1,566 | 1,617 |
| Goodwill | 11,739 | 11,413 |
| Other assets | 398 | 521 |
| Total noncurrent assets | 16,560 | 16,423 |
| Total assets | 28,858 | 28,373 |
| Current liabilities: | ||
| Short-term debt and current portion of long-term debt | 55 | 911 |
| Accounts payable | 2,427 | 2,443 |
| Customer advances and deposits | 3,862 | 4,154 |
| Other current liabilities | 2,916 | 2,852 |
| Total current liabilities | 9,260 | 10,360 |
| Noncurrent liabilities: | ||
| Long-term debt | 3,860 | 3,113 |
| Other liabilities | 4,737 | 4,847 |
| Commitments and contingencies (See Note K) | 0 | 0 |
| Total noncurrent liabilities | 8,597 | 7,960 |
| Shareholders' equity: | ||
| Common stock | 482 | 482 |
| Surplus | 1,414 | 1,346 |
| Retained earnings | 14,201 | 13,287 |
| Treasury stock | (3,437) | (3,349) |
| Accumulated other comprehensive loss | (1,659) | (1,713) |
| Total shareholders' equity | 11,001 | 10,053 |
| Total liabilities and shareholders' equity | $28,858 | $28,373 |
| Statement Of Income Alternative (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jul. 05, 2009 | 3 Months Ended
Jun. 29, 2008 | 6 Months Ended
Jul. 05, 2009 | 6 Months Ended
Jun. 29, 2008 |
| Revenues: | ||||
| Products | $5,593 | $5,104 | $11,337 | $9,964 |
| Services | 2,507 | 2,199 | 5,027 | 4,344 |
| Revenues, Total | 8,100 | 7,303 | 16,364 | 14,308 |
| Operating costs and expenses: | ||||
| Products | 4,891 | 4,404 | 9,939 | 8,614 |
| Services | 2,264 | 1,978 | 4,575 | 3,912 |
| Costs and Expenses, Total | 7,155 | 6,382 | 14,514 | 12,526 |
| Operating earnings | 945 | 921 | 1,850 | 1,782 |
| Interest, net | (38) | (12) | (77) | (31) |
| Other, net | 0 | 0 | 3 | 3 |
| Earnings from continuing operations before income taxes | 907 | 909 | 1,776 | 1,754 |
| Provision for income taxes, net | 286 | 268 | 562 | 540 |
| Earnings from continuing operations | 621 | 641 | 1,214 | 1,214 |
| Discontinued operations, net of tax | (3) | 0 | (6) | (1) |
| Net earnings | 618 | 641 | 1,208 | 1,213 |
| Basic: | ||||
| Continuing operations | 1.61 | 1.61 | 3.15 | 3.04 |
| Discontinued operations | -0.01 | $0 | -0.02 | $0 |
| Net earnings | 1.6 | 1.61 | 3.13 | 3.04 |
| Diluted: | ||||
| Continuing operations | 1.61 | 1.6 | 3.14 | 3.01 |
| Discontinued operations | -0.01 | $0 | -0.02 | $0 |
| Net earnings | 1.6 | 1.6 | 3.12 | 3.01 |
| Supplemental information: | ||||
| General and administrative expenses included in operating costs and expenses | $509 | $451 | $1,019 | $881 |
| Dividends per share | 0.38 | 0.35 | 0.76 | 0.7 |
| Statement Of Cash Flows Indirect (USD $) | ||
| In Millions | 6 Months Ended
Jul. 05, 2009 | 6 Months Ended
Jun. 29, 2008 |
| Cash flows from operating activities: | ||
| Net earnings | $1,208 | $1,213 |
| Adjustments to reconcile net earnings to net cash provided by operating activities - | ||
| Depreciation of property, plant and equipment | 171 | 146 |
| Amortization of intangible assets | 108 | 67 |
| Stock-based compensation expense | 58 | 50 |
| Excess tax benefit from stock-based compensation | (1) | (24) |
| Deferred income tax provision | 86 | 26 |
| Discontinued operations, net of tax | 6 | 1 |
| (Increase) decrease in assets, net of effects of business acquisitions - | ||
| Accounts receivable | (149) | (83) |
| Contracts in process | (77) | (163) |
| Inventories | (115) | (73) |
| Increase (decrease) in liabilities, net of effects of business acquisitions - | ||
| Accounts payable | (18) | (207) |
| Customer advances and deposits | (430) | 548 |
| Other current liabilities | (163) | (27) |
| Other, net | 79 | (18) |
| Net cash provided by operating activities from continuing operations | 763 | 1,456 |
| Net cash used by discontinued operations - operating activities | (9) | (5) |
| Net cash provided by operating activities | 754 | 1,451 |
| Cash flows from investing activities: | ||
| Capital expenditures | (170) | (200) |
| Business acquisitions, net of cash acquired | (165) | (66) |
| Sales/maturities of available-for-sale securities | 154 | 1,186 |
| Purchases of available-for-sale securities | (107) | (1,247) |
| Other, net | 1 | 31 |
| Net cash used by investing activities | (287) | (296) |
| Cash flows from financing activities: | ||
| Repayment of commercial paper, net | (853) | 0 |
| Proceeds from fixed-rate notes, net | 747 | 0 |
| Dividends paid | (283) | (257) |
| Purchases of common stock | (109) | (660) |
| Proceeds from option exercises | 30 | 89 |
| Repayment of fixed-rate notes | 0 | (500) |
| Other, net | (6) | 22 |
| Net cash used by financing activities | (474) | (1,306) |
| Net decrease in cash and equivalents | (7) | (151) |
| Cash and equivalents at beginning of period | 1,621 | 2,891 |
| Cash and equivalents at end of period | 1,614 | 2,740 |
| Cash payments for: | ||
| Income taxes | 470 | 516 |
| Interest | $51 | $66 |
| Notes to Financial Statements | |
| 6 Months Ended
Jul. 05, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| A.Basis of Preparation | A. Basis of Preparation Basis of Consolidation and Classification The unaudited Consolidated Financial Statements included in this Form 10-Q include the accounts of General Dynamics Corporation and our wholly owned and majority-owned subsidiaries. We eliminate all inter-company balances and transactions in the consolidated statements. Consistent with defense industry practice, we classify assets and liabilities related to long-term production contracts as current, even though some of these amounts are not expected to be realized within one year. In addition, some prior-year amounts have been reclassified among financial statement accounts to conform to the current-year presentation. Interim Financial Statements The unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. These rules and regulations permit some of the information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) to be condensed or omitted. Operating results for the three- and six-month periods ended July5, 2009, are not necessarily indicative of the results that may be expected for the year ending December31, 2009. In our opinion, the unaudited Consolidated Financial Statements contain all adjustments, that are of a normal recurring nature, necessary for a fair presentation of our results for the three- and six-month periods ended July5, 2009, and June29, 2008. We have evaluated material events and transactions that have occurred after the balance sheet date and concluded that no subsequent events have occurred through August4, 2009, that require adjustment to or disclosure in this Form 10-Q. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December31, 2008. |
| B.Acquisitions, Intangible Assets and Goodwill | B. Acquisitions, Intangible Assets and Goodwill In 2009, we paid approximately $165 in cash to acquire one business in the Information Systems and Technology group that performs work for our classified customers. In 2008, we acquired five businesses for an aggregate of approximately $3.2 billion in cash. Aerospace Jet Aviation of Zurich, Switzerland, on November5. Jet Aviation performs aircraft completions and refurbishments for business jets and commercial aircraft, aircraft support services, and management and fixed-base operations (FBO) services for a broad global customer base. Combat Systems AxleTech International (AxleTech) of Troy, Michigan, on December19. AxleTech is a global manufacturer and supplier of highly engineered drive train components and aftermarket parts for heavy-payload military and commercial customers. Marine Systems HSI Electric, Inc. (HSI), of Honolulu, Hawaii, on July23. HSI is a marine and industrial electrical company specializing in electrical apparatus installation, maintenance, troubleshooting and repair. Information Systems and Technology ViPS, Inc. (ViPS), a wholly owned subsidiary of HLTH Corporation, of Towson, Maryland, on July22. ViPS is a leading provider of high-end healthcare technology solutions, including data management, analytics, decision support and process automation, that support both U.S. federal government agencies and commercial healthcare organizations. Integrated Defense Systems, Inc. (IDSI), of Glen Rock, Pennsylvania, on February29. IDSI produces advanced filtering technologies and broadband power amplifiers for tactical communications applications for military and other government customers. We funded the above acquisitions using cash on hand and commercial paper borrowings. The operating results of these businesses have been included with our reported results since the respective closing dates of the acquisitions. The purchase prices of these businesses have been allocated to the estimated fair value of net tangible and intangible assets acquired, with any excess purchase price recorded as goodwill. Some of the estimates related to the Jet Aviation and AxleTech acquisitions were still preliminary at July5, 2009. We are in the process of identifying and valuing intangible and other assets acquired. The completion of these analyses could result in an increase or decrease to the preliminary value assigned to these acquired assets, as well as to future periods amortization expense. We expect the analyses to be completed during 2009 without any material adjustments. Intangible assets consisted of the following: July5 2009 December31 2008 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contract and program intangible assets $ 1,613 $ (676 ) $ 937 $ 1,580 $ (613 ) $ 967 Other intangible assets 915 (286 ) 629 892 (242 ) 650 Total intangible assets $ 2,528 $ (962 ) $ 1,566 $ |
| C.Earnings per Share and Comprehensive Income | C. Earnings per Share and Comprehensive Income Earnings per Share We compute basic earnings per share using net earnings for the period and the weighted average number of common shares outstanding during the period. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options and the issuance of restricted shares. Basic and diluted weighted average shares outstanding were as follows (in thousands): Three Months Ended Six Months Ended July5 2009 June29 2008 July5 2009 June29 2008 Basic weighted average shares outstanding 385,035 398,491 385,440 399,625 Dilutive effect of stock options and restricted stock 1,978 3,280 1,337 3,189 Diluted weighted average shares outstanding 387,013 401,771 386,777 402,814 On January1, 2009, we adopted FASB Staff Position (FSP) EITF 03-06-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. FSP EITF 03-06-1 states that unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities that require calculation of earnings per share under the two-class method as specified in Statement of Financial Accounting Standards (SFAS) No.128, Earnings Per Share. The two-class method is an earnings allocation methodology that determines earnings per share separately for each class of stock and participating security. Participants in our equity compensation plans who are granted restricted stock are allowed to retain cash dividends paid on nonvested shares. Therefore, our nonvested restricted stock awards qualify as participating securities under FSP EITF 03-06-1, and we are required to calculate earnings per share using the two-class method. However, the application of the two-class method had no measurable impact on our earnings per share for the three- and six-month periods ended July5, 2009, and June29, 2008. Comprehensive Income Our comprehensive income was $844 and $1.3 billion for the three- and six month periods ended July5, 2009, respectively, and $628 and $1.2 billion for the three- and six month periods ended June29, 2008, respectively. The primary components of our comprehensive income are net earnings and foreign currency translation adjustments of $209 and $46 for the three- and six month periods ended July5, 2009, respectively, and $3 and $52 for the three- and six month periods ended June29, 2008, respectively. |
| D.Fair Value of Financial Instruments | D. Fair Value of Financial Instruments Our financial instruments include cash and equivalents, marketable securities and other investments; accounts receivable and accounts payable; short- and long-term debt; and derivative financial instruments. We did not have any significant non-financial assets or liabilities measured at fair value on July5, 2009. The carrying values of cash and equivalents, accounts receivable and payable, and short-term debt (commercial paper) on the Consolidated Balance Sheet approximate their fair value. The following table presents the fair values of our other financial assets and liabilities on July5, 2009, and December31, 2008, and the basis for determining their fair values: Financial assets (liabilities) Fair Value QuotedPrices in Active Markets for IdenticalAssets Significant Other Observable Inputs July5, 2009 Marketable securities* $ 88 $ 88 $ Other investments* 104 104 Derivatives* (37 ) (37 ) Long-term debt (4,033 ) (4,033 ) December31, 2008 Marketable securities* $ 143 $ 143 $ Other investments* 98 98 Derivatives* (77 ) (77 ) Long-term debt (3,168 ) (3,168 ) * Reported on the Consolidated Balance Sheet at fair value. |
| E. Contracts in Process | E. Contracts in Process Contracts in process represents recoverable costs and, where applicable, accrued profit related to long-term contracts that have been inventoried until the customer is billed, and consisted of the following: July5 2009 December31 2008 Contract costs and estimated profits $ 14,187 $ 12,904 Other contract costs 1,051 1,078 15,238 13,982 Less advances and progress payments 10,830 9,641 Total contracts in process $ 4,408 $ 4,341 Contract costs consist primarily of labor and material costs and related overhead and general and administrative (GA) expenses. Contract costs also include contract recoveries for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs, which totaled approximately $30 on July5, 2009, and approximately $40 on December31, 2008. We record revenue associated with these matters only when recovery can be estimated reliably and realization is probable. Contract costs on December31, 2008, included approximately $215 associated with our contract to provide Pandur II wheeled vehicles to the Czech Republic. In the first quarter of 2009, we signed a renegotiated contract with the Czech Republic for the purchase of 107 vehicles, including 17 previously completed vehicles. Under the terms of the revised contract, we billed and collected the majority of the December31, 2008, contracts-in-process balance and expect to recover the remaining balance over the course of the revised contract. Other contract costs represent amounts recorded under GAAP that are not currently allocable to government contracts, such as a portion of our estimated workers compensation, other insurance-related assessments, pension and other post-retirement benefits, and environmental expenses. Some of these liabilities are discounted at contractual rates agreed to with our U.S. government customers. These costs will become allocable to contracts generally when they are paid. We expect to recover these costs through ongoing business, including existing backlog and probable follow-on contracts. This business base includes numerous contracts for which we are the sole source or are one of two suppliers on long-term U.S. defense programs. However, if the backlog in the future does not support the continued deferral of these costs, the profitability of our remaining contracts could be adversely affected. We expect to bill substantially all of our July5, 2009, contracts-in-process balance, with the exception of these other contract costs, during the next 12 months. |
| F.Inventories | F. Inventories Inventories represent primarily commercial aircraft components and consisted of the following: July5 2009 December31 2008 Raw materials $ 1,138 $ 1,001 Work in process 831 876 Pre-owned aircraft 125 100 Other 44 52 Total inventories $ 2,138 $ 2,029 |
| G.Debt | G. Debt Debt consisted of the following: InterestRate July5 2009 December31 2008 Fixed-rate notes due: August 2010 4.500 % $ 700 $ 700 July 2011 1.800 % 747 May 2013 4.250 % 999 999 February 2014 5.250 % 996 995 August 2015 5.375 % 400 400 Commercial paper, net of unamortized discount 0.270 % 50 905 Other Various 23 25 Total debt 3,915 4,024 Less current portion 55 911 Long-term debt $ 3,860 $ 3,113 Fixed-rate Notes On July5, 2009, we had outstanding $3.8 billion aggregate principal amount of fixed-rate notes. This included $750 of two-year fixed-rate notes issued on June24, 2009, and $1 billion of five-year fixed-rate notes issued on December15, 2008, pursuant to a Form S-3 Registration Statement filed with the Securities and Exchange Commission under the Securities Act of 1933 on December8, 2008. The fixed-rate notes are fully and unconditionally guaranteed by several of our 100-percent-owned subsidiaries. We have the option to redeem the notes prior to their maturity in whole or in part at 100 percent of the principal plus any accrued but unpaid interest and any applicable make-whole amounts. See Note N for condensed consolidating financial statements. Commercial Paper On July5, 2009, we had $50 of commercial paper outstanding at an average yield of approximately 0.27 percent with an average maturity of five days. We have approximately $1.8 billion in bank credit facilities that provide backup liquidity to our commercial paper program. These credit facilities consist of an $815 million 364-day facility expiring in July 2010 and a $975 multi-year facility expiring in December 2011. These facilities are required by rating agencies to support the A1/P1 rating of our commercial paper issuances. Our commercial paper issuances and the bank credit facilities are guaranteed by several of our 100-percent-owned subsidiaries. Additionally, a number of our international subsidiaries have available local bank credit facilities aggregating approximately $1.2 billion. Other On July5, 2009, other debt consisted primarily of a capital lease arrangement and debt assumed in connection with our acquisitions of SNC TEC in January 2007 and AxleTech in December 2008. Our financing arrangements contain a number of customary covenants and restrictions. We were in compliance with all material covenants on July5, 2009. |
| H.Liabilities | H. Liabilities A summary of significant liabilities, by balance sheet caption, follows: July5 2009 December31 2008 Salaries and wages $ 627 $ 613 Retirement benefits 594 566 Workers compensation 499 469 Other (a) 1,196 1,204 Total other current liabilities $ 2,916 $ 2,852 Retirement benefits $ 3,098 $ 3,063 Customer deposits on commercial contracts 1,036 1,174 Deferred income taxes 107 99 Other (b) 496 511 Total other liabilities $ 4,737 $ 4,847 (a) Consists primarily of income tax liabilities, dividends payable, environmental remediation reserves, warranty reserves, liabilities of discontinued operations and insurance-related costs. (b) Consists primarily of liabilities for warranty reserves and workers compensation. |
| I.Income Taxes | I. Income Taxes Our net deferred tax asset (liability) was included in the Consolidated Balance Sheet as follows: July5 2009 December31 2008 Current deferred tax asset $ 56 $ 57 Current deferred tax liability (48 ) (62 ) Noncurrent deferred tax asset 42 111 Noncurrent deferred tax liability (107 ) (99 ) Net deferred tax (liability) asset $ (57 ) $ 7 On November27, 2001, we filed a refund suit in the U.S. Court of Federal Claims, titled General Dynamics v. United States, for the years 1991 to 1993. We added the years 1994 to 1998 to the litigation on June23, 2004. The suit sought recovery of refund claims that were disallowed by the Internal Revenue Service (IRS) at the administrative level. On December30, 2005, the court issued its opinion regarding one of the matters in the case. The court held that we could not treat the A-12 contract as complete for federal income tax purposes in 1991, the year the contract was terminated. (See Note K for more information regarding the A-12 contract.) On the other issues in the case, we reached a settlement in 2008 with the U.S. Department of Justice acting on behalf of the United States. As a result of the settlement, we reduced our tax provision in the second quarter of 2008 by $35, or $0.09 per share. In the fourth quarter of 2008, we received a refund of $45, including taxable interest, and the court dismissed the case. The IRS has examined all of our consolidated federal income tax returns through 2004. The IRS commenced its examination of our 2005 and 2006 income tax returns in October 2007, and we expect this examination to conclude in the third quarter of 2009. We have recorded liabilities for tax contingencies for all years that remain open to review. We do not expect the resolution of tax matters for these years to have a material impact on our results of operations, financial condition or cash flows. With respect to income tax uncertainties, based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on July5, 2009, is not material to our results of operations, financial condition or cash flows. We also believe that the total amount of unrecognized tax benefits on July5, 2009, if recognized, would not have a material impact on our effective tax rate. We further believe that there are no tax positions for which it is reasonably possible that the unrecognized tax benefits will significantly increase or decrease over the next 12 months producing, individually or in the aggregate, a material effect on our results of operations, financial condition or cash flows. |
| J.Derivative Instruments and Hedging Activities | J. Derivative Instruments and Hedging Activities On January1, 2009, we adopted SFAS 161, Disclosures about Derivative Instruments and Hedging Activities an Amendment of FASB Statement No.133. SFAS 161 requires enhanced disclosures related to these financial instruments, including qualitative disclosures about our hedging objectives and strategies. We are exposed to market risk, primarily from foreign currency exchange rates, interest rates, commodity prices and investments. We may use derivative financial instruments to hedge some of these risks as described below. We do not use derivatives for trading or speculative purposes. Foreign Currency Risk Our foreign currency exchange rate risk relates to receipts from customers, payments to suppliers and inter-company transactions denominated in foreign currencies. We periodically enter into derivative financial instruments, principally foreign currency forward purchase and sale contracts with terms of less than three years. These instruments are designed to fix, or limit the adverse impact on, the amount of firmly committed and forecasted foreign currency-denominated payments, receipts and inter-company transactions related to our ongoing business and operational financing activities. Interest Rate Risk Our financial instruments subject to interest rate risk include variable-rate commercial paper and short-term investments. However, the risk associated with these instruments is not material. Commodity Price Risk We are subject to risk of rising labor and commodity prices, primarily on long-term fixed-price contracts. To the extent possible, we include terms in our contracts that are designed to protect us from this risk. Some of the protective terms included in our contracts are considered derivatives but are not accounted for separately because they are clearly and closely related to the host contract. We have not entered into any material commodity hedging contracts but may do so as circumstances warrant. We do not believe that changes in labor or commodity prices will have a material impact on our results of operations or cash flows. Investment Risk Our investment policy allows for purchases of fixed-income securities with an investment-grade rating and a maximum maturity of one year. We held $1.7 billion in cash and equivalents and marketable securities to be used for general corporate purposes on July5, 2009. Our marketable securities have an average duration of one month and an average credit rating of AA. Historically, we have not experienced material gains or losses on these instruments due to changes in interest rates or market values. Hedging Activities On July5, 2009, and December31, 2008, we had $2.1 billion and $2.4 billion, respectively, in notional forward foreign exchange contracts outstanding. We recognize derivative financial instruments on the Consolidated Balance Sheet at fair value (see Note D). The fair value of these derivative contracts recognized in the Consolidated Balance Sheet consisted of the following: July5 2009 December31 2008 Other current assets: Designated as cash flow hedges un |
| K.Commitments and Contingencies | K. Commitments and Contingencies Litigation Termination of A-12 Program. In January1991, the U.S. Navy terminated our A-12 aircraft contract for default. The A-12 contract was a fixed-price incentive contract for the full-scale development and initial production of the Navys carrier-based Advanced Tactical Aircraft. We and McDonnell Douglas, the contractors, were parties to the contract with the Navy. (McDonnell Douglas is now owned by The Boeing Company.) Both contractors had full responsibility to the Navy for performance under the contract, and both are jointly and severally liable for potential liabilities arising from the termination. As a consequence of the termination for default, the Navy demanded the contractors repay $1.4billion in unliquidated progress payments. The Navy agreed to defer collection of that amount pending a decision by the U.S. Court of Federal Claims (the trial court) on the contractors challenge to the termination for default, or a negotiated settlement. On December19, 1995, the trial court issued an order converting the termination for default to a termination for convenience. On March31, 1998, a final judgment was entered in favor of the contractors for $1.2billion plus interest. On July1, 1999, the U.S. Court of Appeals for the Federal Circuit (the appeals court) remanded the case to the trial court for determination of whether the governments default termination was justified. On August31, 2001, following the trial on remand, the trial court upheld the default termination of the A-12 contract. In its opinion, the trial court rejected all of the governments arguments to sustain the default termination except for the governments schedule arguments, as to which the trial court held that the schedule the government unilaterally imposed was reasonable and enforceable, and that the government had not waived that schedule. On the sole ground that the contractors were not going to deliver the first aircraft on the date provided in the unilateral schedule, the trial court upheld the default termination and entered judgment for the government. On January9, 2003, an appeal was argued before a three-judge panel of the appeals court. On March17, 2003, the appeals court vacated the trial courts judgment and remanded the case to the trial court for further proceedings. The appeals court found that the trial court had misapplied the controlling legal standard in concluding the termination for default could be sustained solely on the basis of the contractors inability to complete the first flight of the first test aircraft by December1991. Rather, the appeals court held that to uphold a termination for default, the trial court would have to determine that there was no reasonable likelihood that the contractors could perform the entire contract effort within the time remaining for performance. On May3, 2007, the trial court issued a decision upholding the governments default termination. We appealed the trial courts decision. On June2, 2009, a three-judge panel of the appeals court affirmed the trial courts decision. We intend to petition the appeals court for a rehearing of its decision, either by the |
| L.Retirement Plans | L. Retirement Plans We provide defined-benefit pension and other post-retirement benefits, as well as defined-contribution benefits, to eligible employees. Net periodic pension and other post-retirement benefit costs for the three- and six-month periods ended July5, 2009, and June29, 2008, consisted of the following: Pension Benefits Other Post-retirementBenefits Three Months Ended July5 2009 June29 2008 July5 2009 June29 2008 Service cost $ 52 $ 51 $ 2 $ 4 Interest cost 122 111 16 17 Expected return on plan assets (143 ) (149 ) (8 ) (7 ) Recognized net actuarial loss (gain) 7 1 (2 ) Amortization of prior service credit (11 ) (12 ) Net periodic cost $ 27 $ 2 $ 8 $ 14 Pension Benefits Other Post-retirementBenefits Six Months Ended July 5 2009 June 29 2008 July 5 2009 June 29 2008 Service cost $ 104 $ 102 $ 4 $ 8 Interest cost 245 222 32 33 Expected return on plan assets (287 ) (298 ) (16 ) (14 ) Recognized net actuarial loss (gain) 14 2 (4 ) 1 Amortization of prior service (credit) cost (23 ) (24 ) 1 Net periodic cost $ 53 $ 4 $ 16 $ 29 Our contractual arrangements with the U.S. government provide for the recovery of contributions to our pension plans covering employees working in our government contracting businesses. With respect to post-retirement benefit plans, our government contracts provide for the recovery of contributions to a Voluntary Employees Beneficiary Association trust and, for non-funded plans, recovery of claims paid. The cumulative pension and post-retirement benefit cost for some of these plans exceeds our cost currently allocable to contracts. To the extent recovery of the cost is considered probable based on our backlog, we defer the excess in contracts in process on the Consolidated Balance Sheet until the cost is paid, charged to contracts and included in revenues. For other plans, the amount contributed to the plans, charged to contracts and included in revenues has exceeded the plans cumulative benefit cost. We have deferred recognition of these excess earnings to provide a better matching of revenues and expenses. These deferrals have been classified against the prepaid benefit cost related to these plans. (See Note E for discussion of our deferred contract costs.) |
| M.Business Group Information | M. Business Group Information We operate in four business groups: Aerospace, Combat Systems, Marine Systems and Information Systems and Technology. We organize and measure our business groups in accordance with the nature of products and services offered. These business groups derive their revenues from business aviation; combat vehicles, weapons systems and munitions; shipbuilding design and construction; and information systems, technologies and services, respectively. We measure each groups profit based on operating earnings. As a result, we do not allocate net interest, other income and expense items, and income taxes to our business groups. Summary operating results for each of our business groups follows: Revenues Operating Earnings Three Months Ended July 5 2009 June 29 2008 July 5 2009 June 29 2008 Aerospace $ 1,415 $ 1,329 $ 215 $ 240 Combat Systems 2,405 2,015 300 282 Marine Systems 1,625 1,394 168 127 Information Systems and Technology 2,655 2,565 284 292 Corporate* (22 ) (20 ) $ 8,100 $ 7,303 $ 945 $ 921 Revenues Operating Earnings Six Months Ended July 5 2009 June 29 2008 July 5 2009 June 29 2008 Aerospace $ 2,870 $ 2,608 $ 415 $ 476 Combat Systems 4,812 4,012 579 541 Marine Systems 3,294 2,772 331 249 Information Systems and Technology 5,388 4,916 573 552 Corporate* (48 ) (36 ) $ 16,364 $ 14,308 $ 1,850 $ 1,782 * Corporate operating results include our stock option expense and a portion of the operating results of our commercial pension plans. |
| N.Condensed Consolidating Financial Statements | N. Condensed Consolidating Financial Statements The fixed-rate notes described in Note G are fully and unconditionally guaranteed on an unsecured, joint and several basis by certain of our 100-percent-owned subsidiaries (the guarantors). The following condensed consolidating financial statements illustrate the composition of the parent, the guarantors on a combined basis (each guarantor together with its majority-owned subsidiaries) and all other subsidiaries on a combined basis. Condensed Consolidating Statement of Earnings Three Months Ended July5, 2009 Parent Guarantors on a Combined Basis Other Subsidiaries on a Combined Basis Consolidating Adjustments Total Consolidated Revenues $ $ 6,563 $ 1,537 $ $ 8,100 Cost of sales 1 5,364 1,281 6,646 General and administrative expenses 21 386 102 509 Operating earnings (22 ) 813 154 945 Interest expense (39 ) (4 ) (43 ) Interest income 1 4 5 Other, net (1 ) 1 Earnings from continuing operations before income taxes (61 ) 813 155 907 Provision for income taxes (28 ) 275 39 286 Discontinued operations, net of tax (3 ) (3 ) Equity in net earnings of subsidiaries 651 (651 ) Net earnings $ 618 $ 538 $ 113 $ (651 ) $ 618 Three Months Ended June29, 2008 Revenues $ $ 6,428 $ 875 $ $ 7,303 Cost of sales 5,218 713 5,931 General and administrative expenses 20 373 58 451 Operating earnings (20 ) 837 104 921 Interest expense (28 ) (5 ) (33 ) Interest income 11 1 9 21 Other, net (1 ) 1 Earnings from continuing operations before income taxes (38 ) 838 109 909 Provision for income taxes (46 ) 289 25 268 Equity in net earnings of subsidiaries 633 (633 ) Net earnings $ 641 $ 549 $ 84 $ (633 ) $ 641 Condensed Consolidating Statement of Earnings Six Months Ended July5, 2009 Parent Guarantors on a Combined Basis Other Subsidiaries on a Combined Basis Consolidating Adjustments Total Consolidated Revenues $ $ 13,226 $ 3,138 $ $ 16,364 Cost of sales 8 10,851 2,636 13,495 General and administrative expenses 40 774 205 1,019 Operating earnings (48 ) 1,601 297 1,850 Interest expense (80 ) (5 ) (85 ) Interest income 2 1 5 8 Other, net |
| Document Information | |
| 6 Months Ended
Jul. 05, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-07-05 |
| Entity Information (USD $) | ||
| 6 Months Ended
Jul. 05, 2009 | Jun. 29, 2008
| |
| Entity [Text Block] | ||
| Trading Symbol | GD | |
| Entity Registrant Name | GENERAL DYNAMICS CORP | |
| Entity Central Index Key | 0000040533 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Current Reporting Status | Yes | |
| Entity Voluntary Filers | No | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 385,090,596 | |
| Entity Public Float | $31,518,272,489 |
