1
ADDITIONAL EXHIBIT 99(d) TO
ANNUAL REPORT ON FORM 10-K
OF GENERAL DYNAMICS CORPORATION
SEC FILE NO. 1-3671
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993
A. Full title of the Plan and the address of the Plan, if different from
the issuer named below:
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
B. Name of the issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
GENERAL DYNAMICS CORPORATION
3190 FAIRVIEW PARK DRIVE
FALLS CHURCH, VIRGINIA 22042-4523
2
GENERAL DYNAMICS CORPORATION
INDEX OF FINANCIAL STATEMENTS AND EXHIBITS
Pages of this
Form 11-K
----------
(a) FINANCIAL STATEMENTS
Statements of Financial Condition, December 31, 1993 and 1992 5-6
Statements of Income and Changes in Plan Equity - Fiscal
Years Ended December 31, 1993, December 31, 1992
and December 31, 1991 7-9
Schedule I - Combined Statement of Investments
of Master Trust Funds 10-18
Notes to Financial Statements 19-25
Report of Independent Public Accountants 26
(b) SIGNATURE 3
(c) EXHIBITS
Consent of Independent Public Accountants 3
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan Administrator has caused this Annual Report to be signed by the
undersigned thereunto duly authorized.
GENERAL DYNAMICS CORPORATION
As Plan Administrator of the General
Dynamics Corporation Savings
and Stock Investment Plan
by /s/ E. A. Klobasa
---------------------------
E. A. Klobasa
Secretary
June 29, 1994
As independent public accountants, we hereby consent to the
incorporation of our report included in this Form 11-K, into General Dynamics
Corporation's previously filed Registration Statement on Form S-8, File No.
2-23904.
by /s/ Arthur Andersen & Co.
---------------------------
ARTHUR ANDERSEN & CO.
Washington, D.C.,
June 29, 1994
4
1993 FINANCIAL STATEMENTS
OF THE
GENERAL DYNAMICS CORPORATION
SAVINGS
AND STOCK INVESTMENT PLAN
5
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1993
FUNDS
----------------------------------------------------
COMPANY GOVERNMENT DIVERSIFIED FIXED
TOTAL STOCK BONDS PORTFOLIO INCOME
----- ----- ----- --------- -------
ASSETS
Investment in common stock of
General Dynamics Corporation,
at market value - 5,351,622
shares (Cost $113,300,179)
(Note 6)
Participant-directed . . . . . $ 132,336,643 $ 132,336,643 $ - $ - $ -
Non-participant-directed . . . 114,506,924 114,506,924 - - -
Investments in securities of
unaffiliated issuers, at market
value - (Schedule I) (Note 6)
U.S. Government bonds
(Cost $173,797,308) . . . 172,048,842 - 172,048,842 - -
Other securities
(Cost $335,076,607) . . . 370,517,163 - - 336,073,582 -
Insurance company contracts, at
contract value (Schedule I) 1,387,331,460 - - - 1,387,331,460
Loans receivable (payable) . . . . 39,831,476 62,565 6,444 54,354 40,981
Amounts receivable from (payable to)
General Dynamics Corporation 112,969 304,601 5,258 (39,908) (140,556)
-------------- ------------- ------------- ------------ -------------
Total Assets . . . . . . . $2,216,685,477 $ 247,210,733 $ 172,060,544 $336,088,028 $1,387,231,885
============== ============= ============= ============ ==============
LIABILITIES AND PLAN EQUITY
Fund transfers . . . . . . . . $ - $ 1,554,007 $ 4,925,397 $ (2,273,621) $ (4,346,665)
Administrative fees
payable . . . . . . . . . 327,335 27,515 76,935 56,751 161,342
Loans payable (receivable) . . - 91,417 254,657 464,935 1,386,523
Plan equity . . . . . . . . . 2,216,358,142 245,537,794 166,803,555 337,839,963 1,390,030,685
------------- ------------- ------------- ----------- --------------
Total Liabilities and Plan
Equity . . . . . . . . $2,216,685,477 $ 247,210,733 $ 172,060,544 $336,088,028 $1,387,231,885
============== ============= ============= ============ ==============
FUNDS
-------------------------
SPECIAL
DISTRIBUTION LOAN
------------ ----
ASSETS
Investment in common stock of
General Dynamics Corporation,
at market value - 5,351,622
shares (Cost $113,300,179)
(Note 6)
Participant-directed . . . . . $ - $ -
Non-participant-directed . . . - -
Investments in securities of
unaffiliated issuers, at market
value - (Schedule I) (Note 6)
U.S. Government bonds
(Cost $173,797,308) . . . - -
Other securities
(Cost $335,100,369) . . . 34,443,581 -
Insurance company contracts, at
contract value (Schedule I) . . - -
Loans receivable (payable) . . . . - 39,667,132
Amounts receivable from (payable to
General Dynamics Corporation . (16,426) -
----------- -----------
Total Assets . . . . . . . $34,427,155 $39,667,132
=========== ===========
LIABILITIES AND PLAN EQUITY
Fund transfers . . . . . . . . $ 140,882 $ -
Administrative fees
payable . . . . . . . . . 4,792 -
Loans payable (receivable) . . 78,268 (2,275,800)
Plan equity . . . . . . . . . 34,203,213 41,942,932
----------- -----------
Total Liabilities and Plan
Equity . . . . . . . . $34,427,155 $39,667,132
=========== ===========
The accompanying notes are an integral part of this statement.
6
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1992
FUNDS
------------------------------------------------------
COMPANY GOVERNMENT DIVERSIFIED FIXED
TOTAL STOCK BONDS PORTFOLIO INCOME
----- ----- ----- --------- ------
ASSETS
Investment in common stock of
General Dynamics Corporation,
at market value -- 5,049,704
shares (Cost $135,022,413)
(Note 6)
Participant-directed . . . $ 167,481,053 $ 167,481,053 $ - $ - $ -
Non-participant-directed . 94,156,711 94,156,711 - - -
Investments in securities of
unaffiliated issuers, at
market value -- (Note 6)
U.S. Government bonds
(Cost $244,883,758) . 245,850,635 - 219,034,585 - -
Other securities
(Cost $286,354,199) . 328,127,247 - - 328,127,247 -
Insurance company contracts, at
contract value . . . . . . 1,455,546,918 - - - 1,455,546,918
Loans receivable (payable) . . 56,487,774 161,296 (183,000) (19,570) 66,941
Amounts receivable from (payable
to) General Dynamics
Corporation . . . . . . 629,977 428,334 (3,015) 8,720 202,027
-------------- ------------- ------------- ------------- --------------
Total Assets . . . . . $2,348,280,315 $ 262,227,394 $ 218,848,570 $ 328,116,397 $1,455,815,886
============== ============= ============= ============= ==============
LIABILITIES AND PLAN EQUITY
Fund transfers . . . . . . . . $ - $ 211,130 $ 837,958 $ (1,490,440) $ (3,674,328)
Administrative fees
payable . . . . . . . . . 561,237 46,902 76,579 191,697 241,684
Loans payable (receivable) . . - 59,053 324,846 418,820 1,368,236
Plan equity . . . . . . . . . 2,347,719,078 261,910,309 217,609,187 328,996,320 1,457,880,294
------------- ------------- ------------- ------------- --------------
Total Liabilities and Plan
Equity . . . . . . . . $2,348,280,315 $ 262,227,394 $ 218,848,570 $ 328,116,397 $1,455,815,886
============== ============= ============= ============= ==============
FUNDS
---------------------
SPECIAL
DISTRIBUTION LOAN
------------ ----
ASSETS
Investment in common stock of
General Dynamics Corporation,
at market value -- 5,049,704
shares (Cost $135,022,413)
(Note 6)
Participant-directed . . . $ - $ -
Non-participant-directed . - -
Investments in securities of
unaffiliated issuers, at market
value -- (Note 6)
U.S. Government bonds
(Cost $244,883,758) . 26,816,050 -
Other securities
(Cost $286,354,199) . - -
Insurance company contracts, at
contract value . . . . . . - -
Loans receivable (payable) . . - 56,462,107
Amounts receivable from (payable
to) General Dynamics
Corporation . . . . . . . . . (6,089) -
------------ ------------
Total Assets . . . . . $ 26,809,961 $ 56,462,107
============ ============
LIABILITIES AND PLAN EQUITY
Fund transfers . . . . . . . . $ 4,115,680 $ -
Administrative fees
payable . . . . . . . . . 4,375 -
Loans payable (receivable) . . 13,745 (2,184,700)
Plan equity . . . . . . . . . 22,676,161 58,646,807
------------ ------------
Total Liabilities and Plan
Equity . . . . . . . . $ 26,809,961 $ 56,462,107
============ ============
The accompanying notes are an integral part of this statement.
7
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
YEAR ENDED DECEMBER 31, 1993
FUNDS
-------------------------------------------------------------------
COMPANY STOCK
------------------------
PARTICIPANT- NON-PARTICIPANT- GOVERNMENT DIVERSIFIED FIXED
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO INCOME
----- -------- -------- ----- --------- ------
Investment Income --
Dividends . . . . . . . . . $ 11,200,461 $ 2,664,001 $ 1,418,161 $ - $ 7,118,299 $ -
Interest . . . . . . . . . . 128,273,433 39,850 21,214 11,549,129 418,249 114,417,883
------------- ------------ ----------- ------------- ------------ --------------
139,473,894 2,703,851 1,439,375 11,549,129 7,536,548 114,417,883
Add (deduct) --
Net realized gain (loss) on
assets sold or distributed
(Note 4) . . . . . . . . . . 58,960,545 16,622,301 8,848,754 976,965 30,955,487 1,946,511
Unrealized appreciation
(depreciation)
of assets (Note 6) . . . . . (1,176,379) 5,170,811 2,752,640 (2,822,877) (6,332,493) (28,232)
Net gain from Special Distribution
(Note 5) . . . . . . . . . . 61,228,410 38,573,898 22,654,512 - - -
Rollover contributions . . . . 268,253 14,536 - 9,833 101,073 141,770
Deposits by participants . . . 48,312,194 23,829,608 - 2,400,830 5,412,697 16,669,055
Contributions by General Dynamics
Corporation (Note 7) . . . . 31,912,199 (4,691) 32,209,443 (9,548) (95,856) (110,243)
Loan repayments . . . . . . . . 3,253,909 9,619,030 - 2,028,645 4,065,270 12,023,808
Loans issued . . . . . . . . . - (269,065) - (2,153,006) (3,956,009) (11,267,446)
Transfer between investment
funds (Note 1) . . . . . . . - (69,796,128) (45,936,310) (12,347,075) 47,358,473 53,668,575
Distributions to withdrawn
participants (Note 7) . . . (469,627,619) (38,973,389) (25,620,868) (50,040,266) (74,127,643) (254,073,122)
Plan expenses . . . . . . . . . (3,966,342) (210,823) - (398,262) (2,073,904) (1,238,168)
------------- ------------ ----------- ------------- ------------ --------------
Increase (decrease) in
plan equity . . . . . . . (131,360,936) (12,720,061) (3,652,454) (50,805,632) 8,843,643 (67,849,609)
Plan equity at December 31, 1992 2,347,719,078 165,058,436 96,851,873 217,609,187 328,996,320 1,457,880,294
------------- ------------ ----------- ------------- ------------ --------------
Plan equity at December 31, 1993 $2,216,358,142 $152,338,375 $93,199,419 $ 166,803,555 $337,839,963 $1,390,030,685
============== ============ =========== ============= ============ ==============
FUNDS
-----
SPECIAL
DISTRIBUTION LOAN
------------ ----
Investment Income --
Dividends . . . . . . . . . $ - $ -
Interest . . . . . . . . . . 1,827,108 -
----------- ------------
1,827,108 -
Add (deduct) --
Net realized gain (loss) on assets
sold or distributed
(Note 4) . . . . . . . . . . (389,473) -
Unrealized appreciation
(depreciation)
of assets (Note 6) . . . . . 83,772 -
Net gain from Special Distribution
(Note 5) . . . . . . . . . . - -
Rollover contributions . . . . 1,041 -
Deposits by participants . . . 4 -
Contributions by General Dynamics
Corporation (Note 7) . . . . (76,906) -
Loan repayments . . . . . . . . - (24,482,844)
Loans issued . . . . . . . . . (849,574) 18,495,100
Transfer between investment
funds (Note 1) . . . . . . . 27,052,465 -
Distributions to withdrawn
participants (Note 7) . . . (16,076,200) (10,716,131)
Plan expenses . . . . . . . . . (45,185) -
----------- ------------
Increase (decrease) in
plan equity . . . . . . . 11,527,052 (16,703,875)
Plan equity at December 31, 1992 22,676,161 58,646,807
----------- ------------
Plan equity at December 31, 1993 $34,203,213 $ 41,942,932
=========== ============
The accompanying notes are an integral part of this statement.
8
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
YEAR ENDED DECEMBER 31, 1992
FUNDS
------------------------------------------------------------------------------
COMPANY STOCK
------------------------
PARTICIPANT- NON-PARTICIPANT- GOVERNMENT DIVERSIFIED FIXED
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO INCOME
----- -------- -------- ----- --------- ------
Investment Income --
Dividends . . . . . . . . . $ 13,867,211 $ 4,585,479 $ 1,998,338 $ - $ 7,283,394 $ -
Interest . . . . . . . . . . 150,288,772 111,645 48,740 15,801,423 483,902 132,018,064
-------------- -------------- ------------ ------------- ------------ --------------
164,155,983 4,697,124 2,047,078 15,801,423 7,767,296 132,018,064
Add (deduct) --
Net realized gain (loss) on
securities sold or distributed
(Note 4) . . . . . . . . . . 138,956,153 74,510,448 32,471,644 1,170,040 24,472,378 6,103,437
Unrealized appreciation
(depreciation)
of investments (Note 6) . . 60,920,562 45,049,422 19,636,788 (3,588,822) 1,796,803 (1,866,095)
Rollover contributions . . . . 1,025,620 30,460 - 108,248 169,196 717,716
Deposits by participants . . . 96,382,961 43,785,006 - 5,674,246 10,479,801 36,444,029
Contributions by General Dynamics
Corporation (Note 7) . . . . 62,691,234 (79,674) 63,310,258 (23,592) (165,016) (269,771)
Loan repayments . . . . . . . . 3,995,027 12,872,208 - 2,654,839 3,085,913 13,360,384
Loans issued . . . . . . . . . - (593,578) - (5,173,307) (6,958,388) (23,933,025)
Transfer between investment funds
(Note 1) . . . . . . . . . . . - (167,131,859) (67,740,787) 23,541,416 73,378,240 99,087,457
Distributions to withdrawn
participants (Note 7) . . . (440,782,210) (50,736,351) (20,858,110) (45,192,318) (60,140,616) (238,485,893)
Plan expenses . . . . . . . . (2,845,622) (296,670) - (391,882) (692,622) (1,437,079)
-------------- -------------- ------------ ------------- ------------ --------------
Increase (decrease) in plan
equity . . . . . . . . 84,499,708 (37,893,464) 28,866,871 (5,419,709) 53,192,985 21,739,224
Plan equity at December 31, 1991 2,263,219,370 202,951,900 67,985,002 223,028,896 275,803,335 1,436,141,070
-------------- -------------- ------------ ------------- ------------ --------------
Plan equity at December 31, 1992 $2,347,719,078 $ 165,058,436 $ 96,851,873 $ 217,609,187 $328,996,320 $1,457,880,294
============== ============== ============ ============= ============ ==============
FUNDS
-------------------------
SPECIAL
DISTRIBUTION LOAN
------------ ----
Investment Income --
Dividends . . . . . . . . . $ - $ -
Interest . . . . . . . . . . 1,824,998 -
------------ -------------
1,824,998 -
Add (deduct) --
Net realized gain (loss) on
securities sold or distributed
(Note 4) 228,206 -
Unrealized appreciation
(depreciation)
of investments (Note 6) . . (107,534) -
Rollover contributions . . . . - -
Deposits by participants . . . (121) -
Contributions by General Dynamics
Corporation (Note 7) . . . . (80,971) -
Loan repayments . . . . . . . . - (27,978,317)
Loans issued . . . . . . . . . (887,002) 37,545,300
Transfer between investment funds
(Note 1) . . . . . . . . . . . 38,865,533 -
Distributions to withdrawn
participants (Note 7) . . . (17,139,579) (8,229,343)
Plan expenses . . . . . . . . (27,369) -
------------ -------------
Increase (decrease) in plan equity 22,676,161 1,337
Plan equity at December 31, 1991 - 57,309,167
------------ -------------
Plan equity at December 31, 1992 $ 22,676,161 $ 58,646,807
============ =============
The accompanying notes are an integral part of this statement.
9
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
YEAR ENDED DECEMBER 31, 1991
FUNDS
-------------------------------------------------------------------------------
COMPANY STOCK
------------------------
PARTICIPANT- NON-PARTICIPANT- GOVERNMENT DIVERSIFIED FIXED
TOTAL DIRECTED DIRECTED BONDS PORTFOLIO INCOME
----- -------- -------- ----- --------- ------
Investment Income --
Dividends . . . . . . . . . $ 11,000,232 $ 3,135,719 $ 394,407 $ - $ 7,470,106 $ -
Interest . . . . . . . . . . 151,500,441 110,904 13,949 17,544,269 1,024,792 132,806,527
-------------- -------------- ----------- ------------- ------------ --------------
162,500,673 3,246,623 408,356 17,544,269 8,494,898 132,806,527
Add (deduct) --
Net realized gain (loss) on
securities sold or
distributed (Note 4) . . . . 30,754,242 (731,432) (91,998) 2,011,663 26,567,212 2,998,797
Unrealized appreciation
of investments (Note 6) . . 143,193,694 92,702,884 11,660,048 3,221,351 33,711,098 1,898,313
Rollover contributions . . . . 913,689 28,214 - 44,174 112,131 729,170
Deposits by participants . . . 116,854,721 40,061,850 - 7,637,861 14,226,167 54,928,843
Contributions by General Dynamics
Corporation (Note 7) . . . . 75,813,858 1,006,171 57,404,201 1,800,203 3,313,180 12,290,103
Loan repayments . . . . . . . . 3,876,824 9,270,712 - 2,482,400 2,855,666 15,122,812
Loans issued . . . . . . . . . - (977,031) - (5,033,348) (5,359,478) (22,449,160)
Transfer between investment funds
(Note 1) . . . . . . . . . . - (1,226,572) - (6,178,461) (9,458,608) 16,863,641
Distributions to withdrawn
participants (Note 7) . . . (219,676,546) (15,156,908) (1,395,605) (24,950,823) (26,201,134) (144,859,116)
Plan expenses . . . . . . . . (3,850,901) (209,657) - (463,775) (1,259,737) (1,917,732)
-------------- -------------- ----------- ------------- ------------ --------------
Increase (decrease) in plan
equity . . . . . . . . . . . 310,380,254 128,014,854 67,985,002 (1,884,486) 47,001,395 68,412,198
Plan equity at December 31, 1990 1,952,839,116 74,937,046 - 224,913,382 228,801,940 1,367,728,872
-------------- -------------- ----------- ------------- ------------ --------------
Plan equity at December 31, 1991 $2,263,219,370 $ 202,951,900 $67,985,002 $ 223,028,896 $275,803,335 $1,436,141,070
============== ============== =========== ============= ============ ==============
FUNDS
-------------------------
SPECIAL
DISTRIBUTION LOAN
------------ ----
Investment Income --
Dividends . . . . . . . . . $ - $ -
Interest . . . . . . . . . . - -
- -
- -
Add (deduct) --
Net realized gain (loss) on
securities sold or
distributed (Note 4) . . . . - -
Unrealized appreciation
of investments (Note 6) . . - -
Rollover contributions . . . . - -
Deposits by participants . . . - -
Contributions by General Dynamics
Corporation (Note 7) . . . . - -
Loan repayments . . . . . . . . - (25,854,766)
Loans issued . . . . . . . . . - 33,819,017
Transfer between investment funds
(Note 1) . . . . . . . . . . - -
Distributions to withdrawn
participants (Note 7) . . . - (7,112,960)
Plan expenses . . . . . . . . - -
- -
------------- -------------
Increase (decrease) in plan
equity . . . . . . . . - 851,291
Plan equity at December 31, 1990 - 56,457,876
------------- -------------
Plan equity at December 31, 1991 $ - $ 57,309,167
============= =============
The accompanying notes are an integral part of this statement.
10
SCHEDULE I
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
COMBINED STATEMENT OF INVESTMENTS OF MASTER TRUST FUNDS
DECEMBER 31, 1993
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
GOVERNMENT BONDS FUND:
U.S. TREASURY INVESTMENTS
U.S. Treasury Notes 5.750% due March 31, 1994 . . . . . . 15,000,000 $15,104,883 $ 15,093,750
U.S. Treasury Notes 7.000% due May 15, 1994 . . . . . . . 10,000,000 10,264,453 10,129,700
U.S. Treasury Notes 8.625% due August 15, 1994 . . . . . 10,000,000 10,653,516 10,310,900
U.S. Treasury Notes 6.875% due August 15, 1994 . . . . . 25,000,000 25,607,031 25,515,500
U.S. Treasury Notes 4.000% due September 30, 1994 . . . . 10,000,000 10,056,250 10,034,400
U.S. Treasury Notes 8.500% due September 30, 1994 . . . . 5,000,000 5,285,000 5,179,700
U.S. Treasury Notes 4.250% due October 31, 1994 . . . . . 9,900,000 9,988,945 9,954,153
U.S. Treasury Notes 4.250% due January 31, 1995 . . . . . 19,900,000 20,043,602 20,005,669
U.S. Treasury Notes 3.875% due April 30, 1995 . . . . . . 9,900,000 9,937,125 9,893,763
U.S. Treasury Notes 3.875% due September 30, 1995 . . . . 10,000,000 10,019,140 9,959,400
U.S. Treasury Notes 4.250% due May 15, 1996 . . . . . . . 10,000,000 9,993,750 9,968,700
U.S. Treasury Notes 6.875% due October 31, 1996 . . . . . 16,000,000 17,086,250 16,982,560
U.S. Treasury Notes 6.875% due April 30, 1997 . . . . . . 16,000,000 17,030,000 17,052,480
U.S. Treasury Notes 5.750% due October 31, 1997 . . . . . 22,000,000 22,488,125 22,642,840
U.S. Treasury Notes 5.125% due April 30, 1998 . . . . . . 13,800,000 13,995,433 13,830,222
U.S. Treasury Notes 4.750% due August 31, 1998 . . . . . 14,000,000 13,950,938 13,768,160
U.S. Treasury Notes 6.375% due January 15, 1999 . . . . . 13,300,000 14,182,888 13,958,749
---------- ----------
Total U.S. Treasury Investments . . . . . . . . . . . . $ 235,687,329 $ 234,280,646
---------------- ----------------
U.S. TREASURY BONDS
U.S. Treasury Bond 4.250% due July 31, 1995 . . . . . . . 9,900,000 $ 9,993,973 $ 9,926,334
---------------- ----------------
MORTGAGE
U.S. Dept. Veterans Mtg. Trust 7.000%
due September 15, 2015 . . . . . . . . . . . . . 10,000,000 $ 9,710,938 $ 10,315,600
---------------- ----------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund . . . . . . . 15,720,680 $ 15,720,680 $ 15,720,680
U.S. Treasury Bills due January 27, 1994 . . . . . . . . 10,000,000 9,970,800 9,981,100
---------------- -----------------
Total Temporary Investments . . . . . . . . . . . . . . . $ 25,691,480 $ 25,701,780
---------------- -----------------
INCOME RECEIVABLE . . . . . . . . . . . . . . . . . . . $ 3,792,818 $ 3,792,818
---------------- -----------------
TOTAL GOVERNMENT BONDS FUND . . . . . . . . . . . . . . $ 284,876,538 $ 284,017,178
================ =================
PROPORTIONATE INTEREST . . . . . . . . . . . . . . . . . $ 173,797,308 $ 172,048,842
================ =================
11
SCHEDULE I (Continued)
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ----------------- ----------------
DIVERSIFIED PORTFOLIO FUND:
COMMON STOCKS
AEROSPACE
Allied Signal Incorporated . . . . . . . . . . . . . . . 45,500 $ 2,451,159 $ 3,594,500
Grumman Corporation . . . . . . . . . . . . . . . . . . . 1,800 66,253 71,100
Lockheed Corporation . . . . . . . . . . . . . . . . . . 1,000 69,096 68,250
McDonnell Douglas Corporation . . . . . . . . . . . . . . 200 18,356 21,400
Raytheon Company . . . . . . . . . . . . . . . . . . . . 12,400 557,341 818,400
Rockwell International Corporation . . . . . . . . . . . 20,100 524,003 746,213
---------------- ----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 3,686,208 $ 5,319,863
---------------- ----------------
AUTOMOTIVE
Chrysler Corporation . . . . . . . . . . . . . . . . . . 115,300 $ 5,876,111 $ 6,139,725
Ford Motor Company . . . . . . . . . . . . . . . . . . . 11,900 510,967 767,550
General Motors Corporation . . . . . . . . . . . . . . . 60,200 2,140,160 3,303,475
---------------- ----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 8,527,238 $ 10,210,750
---------------- ----------------
BUILDING
Masco Corporation . . . . . . . . . . . . . . . . . . . 40,400 $ 1,064,436 $ 1,494,800
---------------- ----------------
CHEMICALS
Du Pont (E.I.) De Nemours & Company . . . . . . . . . . 42,300 $ 2,027,113 $ 2,040,975
Eastman Kodak Company . . . . . . . . . . . . . . . . . . 30,800 1,578,132 1,732,500
Ethyl Corporation . . . . . . . . . . . . . . . . . . . 35,500 671,427 621,250
Union Carbide Corporation . . . . . . . . . . . . . . . 75,376 1,322,627 1,599,814
---------------- ----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 5,599,299 $ 5,994,539
---------------- ----------------
ELECTRONICS
Advanced Micro Devices, Incorporated . . . . . . . . . . 61,800 $ 1,351,049 $ 1,096,950
General Electric Company . . . . . . . . . . . . . . . . 12,800 1,033,169 1,342,400
General Signal Corporation . . . . . . . . . . . . . . . 29,200 892,388 1,003,750
Harris Corporation . . . . . . . . . . . . . . . . . . . 4,500 167,974 204,750
TSL Hldgs Incorporated . . . . . . . . . . . . . . . . . 330 0 10
---------------- ----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 3,444,580 $ 3,647,860
---------------- ----------------
ENERGY
Baker Hughes Incorporated . . . . . . . . . . . . . . . 48,100 $ 1,014,197 $ 962,000
Centerior Energy Corporation . . . . . . . . . . . . . . 47,000 877,001 622,750
Chevron Corporation . . . . . . . . . . . . . . . . . . . 7,200 651,813 627,300
Enron Corporation . . . . . . . . . . . . . . . . . . . . 21,700 704,175 629,300
Exxon Corporation . . . . . . . . . . . . . . . . . . . 64,200 4,028,736 4,052,625
Mobil Corporation . . . . . . . . . . . . . . . . . . . . 23,100 1,750,157 1,827,788
Phillips Petroleum Company . . . . . . . . . . . . . . . 10,400 330,304 301,600
12
SCHEDULE I (Continued)
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
ENERGY
Royal Dutch Petroleum Company . . . . . . . . . . . . . . 28,500 $ 2,735,267 $ 2,974,688
Schlumberger Limited . . . . . . . . . . . . . . . . . . 60,300 3,630,835 3,565,238
Tenneco, Incorporated . . . . . . . . . . . . . . . . . . 36,800 1,387,522 1,936,600
Ultramar Corporation . . . . . . . . . . . . . . . . . . 6,900 121,689 175,088
Western Resorts Incorporated . . . . . . . . . . . . . . 8,800 304,128 306,900
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . $ 17,535,824 $ 17,981,877
---------------- -----------------
FINANCIAL SERVICES
Aetna Life & Casualty Company . . . . . . . . . . . . . 7,100 $ 321,258 $ 428,663
AMBAC Incorporated . . . . . . . . . . . . . . . . . . . 3,600 163,624 151,200
American Express Company . . . . . . . . . . . . . . . . 39,900 1,152,449 1,231,913
American International Group, Incorporated . . . . . . . 57,800 4,566,095 5,071,950
Bank America Corporation . . . . . . . . . . . . . . . . 18,440 720,496 855,155
Banker's Trust New York Corporation . . . . . . . . . . . 800 55,606 63,300
Capital Holding Corporation . . . . . . . . . . . . . . 20,000 752,269 742,500
Central Fidelity Banks, Incorporated . . . . . . . . . . 17,100 479,988 474,525
Chemical Banking Corporation . . . . . . . . . . . . . . 98,200 3,954,602 3,940,275
Citicorp . . . . . . . . . . . . . . . . . . . . . . . . 70,400 2,527,414 2,596,000
Comerica, Incorporated . . . . . . . . . . . . . . . . . 16,900 449,056 449,963
Dean Witter Discover & Company . . . . . . . . . . . . . 7,600 293,295 263,150
Dreyfus Corporation . . . . . . . . . . . . . . . . . . 9,500 376,942 427,500
Federal National Mortgage Association . . . . . . . . . 145,100 10,237,446 11,390,350
First Bank System, Incorporated . . . . . . . . . . . . 101,800 3,073,939 3,130,350
First Chicago Corporation . . . . . . . . . . . . . . . . 12,100 508,756 523,325
First Commerce Corporation . . . . . . . . . . . . . . . 200 7,300 6,281
First Tennessee National Corporation . . . . . . . . . . 800 30,000 30,800
First Union Corporation . . . . . . . . . . . . . . . . . 28,400 1,151,193 1,171,500
Fleet Financial Group Incorporated . . . . . . . . . . . 28,100 841,879 937,838
General RE Corporation . . . . . . . . . . . . . . . . . 26,700 3,002,118 2,856,900
Golden West Financial Corporation . . . . . . . . . . . 12,700 529,033 495,300
Mercantile Bankshares Corporation . . . . . . . . . . . . 31,200 612,102 596,700
Mercury General Corporation . . . . . . . . . . . . . . . 4,300 127,925 129,000
Merrill Lynch & Company, Incorporated . . . . . . . . . 294,000 9,499,960 12,348,000
Morgan Stanley Group Incorporated . . . . . . . . . . . 40,500 2,383,392 2,865,375
Nations Bank Corporation . . . . . . . . . . . . . . . . 68,700 3,268,974 3,366,300
Norwest Corporation . . . . . . . . . . . . . . . . . . 353,600 7,748,644 8,619,000
Primerica Corporation . . . . . . . . . . . . . . . . . . 125,900 4,627,612 3,918,638
Progressive Corporation . . . . . . . . . . . . . . . . . 51,900 2,188,587 2,101,950
Southtrust Corporation . . . . . . . . . . . . . . . . . 10,600 198,767 201,400
Student Loan Marketing Association . . . . . . . . . . . 194,900 11,425,062 8,746,138
Travelers Incorporated . . . . . . . . . . . . . . . . . 7,800 363,394 303,225
UNUM Corporation . . . . . . . . . . . . . . . . . . . . 29,100 1,516,940 1,527,750
Wilmington Trust Corporation . . . . . . . . . . . . . . 32,400 891,997 850,500
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 80,048,114 $ 82,812,714
---------------- -----------------
13
SCHEDULE I (Continued)
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
FOOD
CPC International Incorporated . . . . . . . . . . . . . 23,800 $ 1,013,429 $ 1,133,475
General Mills, Incorporated . . . . . . . . . . . . . . . 4,700 285,931 285,525
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 1,299,360 $ 1,419,000
---------------- -----------------
HEALTH/PERSONAL CARE
Abbott Laboratories . . . . . . . . . . . . . . . . . . . 83,600 $ 2,094,601 $ 2,476,650
Alza Corporation . . . . . . . . . . . . . . . . . . . . 35,600 1,226,011 1,005,700
American Home Products Corporation . . . . . . . . . . . 18,500 1,235,159 1,197,875
Chiron Corporation . . . . . . . . . . . . . . . . . . . 5,800 454,724 487,200
Columbia/HCA Healthcare Corporation . . . . . . . . . . . 100 2,856 3,313
Gensia Pharmaceuticals Incorporated . . . . . . . . . . 27,200 860,609 673,200
International Flavors & Fragrances Incorporated . . . . 14,400 1,528,339 1,638,000
Johnson & Johnson . . . . . . . . . . . . . . . . . . . 31,200 1,490,458 1,400,100
Merck & Company Incorporated . . . . . . . . . . . . . . 117,400 3,616,855 4,035,625
Pfizer Incorporated . . . . . . . . . . . . . . . . . . 31,900 2,225,708 2,201,100
Schering-Plough Corporation . . . . . . . . . . . . . . . 26,500 1,573,050 1,815,250
United Healthcare Corporation . . . . . . . . . . . . . 111,800 5,163,886 8,482,825
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 21,472,256 $ 25,416,838
---------------- -----------------
HOUSEHOLD PRODUCTS
Black & Decker Corporation . . . . . . . . . . . . . . . 23,500 $ 460,163 $ 464,125
Coca Cola Company . . . . . . . . . . . . . . . . . . . 117,800 4,845,300 5,256,825
Pepsico, Incorporated . . . . . . . . . . . . . . . . . 79,100 2,853,383 3,233,213
Philip Morris Companies Incorporated . . . . . . . . . . 88,900 5,698,800 4,945,063
Procter & Gamble Company . . . . . . . . . . . . . . . . 53,400 2,466,366 3,043,800
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 16,324,012 $ 16,943,026
---------------- -----------------
LEISURE/COMMUNICATIONS
CBS Incorporated . . . . . . . . . . . . . . . . . . . . 4,900 $ 1,302,853 $ 1,413,650
Capital Cities, ABC, Incorporated . . . . . . . . . . . . 4,100 1,809,542 2,539,950
Carnival Corporation . . . . . . . . . . . . . . . . . . 19,200 546,453 909,600
Comcast Corporation . . . . . . . . . . . . . . . . . . . 63,500 1,809,761 2,286,000
General Instr Corporation . . . . . . . . . . . . . . . . 13,800 730,944 779,700
LIN Broadcasting Corporation . . . . . . . . . . . . . . 14,700 1,645,126 1,624,350
Mirage Resorts Incorporated . . . . . . . . . . . . . . . 111,550 2,467,921 2,663,256
QUALCOMM Incorporated . . . . . . . . . . . . . . . . . . 500 29,337 26,500
Synoptics Communications Incorporated . . . . . . . . . . 17,800 486,664 496,175
Tele-Communications, Incorporated . . . . . . . . . . . 132,900 2,274,388 4,020,225
Time Warner Incorporated . . . . . . . . . . . . . . . . 41,500 1,672,075 1,836,375
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 14,775,064 $ 18,595,781
---------------- -----------------
14
SCHEDULE I (Continued)
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
MACHINERY
Caterpillar Incorporated . . . . . . . . . . . . . . . . 4,100 $ 234,008 $ 364,900
---------------- -----------------
MERCHANDISING
Autozone Incorporated . . . . . . . . . . . . . . . . . . 26,900 $ 1,318,064 $ 1,540,025
Charming Shoppes, Incorporated . . . . . . . . . . . . . 27,300 377,762 324,188
Circuit City Stores, Incorporated . . . . . . . . . . . . 161,000 4,056,077 3,501,750
Dayton - Hudson Corporation . . . . . . . . . . . . . . 19,400 1,353,335 1,292,525
Dillard Department Stores, Incorporated . . . . . . . . . 16,800 628,299 638,400
Home Depot Incorporated . . . . . . . . . . . . . . . . . 181,000 7,225,736 7,149,500
Limited Incorporated . . . . . . . . . . . . . . . . . . 176,900 4,110,424 3,007,300
May Department Stores Company . . . . . . . . . . . . . . 72,100 3,037,083 2,838,938
Melville Corporation . . . . . . . . . . . . . . . . . . 73,900 3,347,503 3,002,188
TJX Cos Incorporated . . . . . . . . . . . . . . . . . . 21,400 610,665 623,275
Wal-Mart Stores, Incorporated . . . . . . . . . . . . . 43,200 1,173,860 1,080,000
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 27,238,808 $ 24,998,089
---------------- -----------------
METALS
Aluminum Company of America . . . . . . . . . . . . . . . 17,300 $ 1,205,774 $ 1,200,188
Freeport McMoran Copper Incorporated . . . . . . . . . . 53,900 1,097,001 1,347,500
Phelps Dodge Corporation . . . . . . . . . . . . . . . . 5,800 253,246 282,750
Reynolds Metals Company . . . . . . . . . . . . . . . . . 1,900 84,992 86,213
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 2,641,013 $ 2,916,651
---------------- -----------------
MISCELLANEOUS
Aviall Incorporated . . . . . . . . . . . . . . . . . . . 1,300 $ 14,892 $ 19,825
Cooper Industries, Incorporated . . . . . . . . . . . . . 31,400 1,573,879 1,546,450
Crown Cork & Seal Company, Incorporated . . . . . . . . 35,700 1,227,091 1,494,938
Astra . . . . . . . . . . . . . . . . . . . . . . . . . . 37,500 738,015 856,200
ITT Corporation . . . . . . . . . . . . . . . . . . . . 18,200 1,487,673 1,660,750
Omnicom Group Incorporated . . . . . . . . . . . . . . . 2,100 79,401 97,125
Owens Corning Fiberglass Corporation . . . . . . . . . . 12,600 528,707 559,125
Ryder System, Incorporated . . . . . . . . . . . . . . . 5,200 88,896 137,800
Simon PPTY Group Incorporated . . . . . . . . . . . . . . 68,000 1,513,000 1,538,500
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 7,251,554 $ 7,910,713
---------------- -----------------
OFFICE EQUIPMENT
International Business Machines Corporation . . . . . . . 7,800 $ 412,257 $ 440,700
Microsoft Corporation . . . . . . . . . . . . . . . . . . 65,225 5,096,940 5,258,766
Novell Incorporated . . . . . . . . . . . . . . . . . . . 76,900 1,890,193 1,595,675
Office Depot Incorporated . . . . . . . . . . . . . . . . 29,600 970,773 995,300
Sun Microsystems Incorporated . . . . . . . . . . . . . . 59,700 1,569,088 1,738,763
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 9,939,251 $ 10,029,204
---------------- -----------------
15
SCHEDULE I (Continued)
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
PAPER PRODUCTS
Champion International Corporation . . . . . . . . . . . 23,700 $ 725,968 $ 790,988
Georgia-Pacific Corporation . . . . . . . . . . . . . . . 11,700 712,089 804,375
International Paper Company . . . . . . . . . . . . . . 1,400 91,348 94,850
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 1,529,405 $ 1,690,213
---------------- -----------------
PRINTING AND PUBLISHING
Bowater Incorporated . . . . . . . . . . . . . . . . . . 23,000 $ 459,673 $ 529,000
Gannett Company, Incorporated . . . . . . . . . . . . . . 18,100 891,671 1,036,225
Knight-Ridder Incorporated . . . . . . . . . . . . . . . 10,600 574,918 633,350
Times Mirror Company . . . . . . . . . . . . . . . . . . 5,500 170,830 183,563
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 2,097,092 $ 2,382,138
---------------- -----------------
PUBLIC UTILITIES
American Electric Power Company, Incorporated . . . . . . 35,600 $ 1,321,214 $ 1,321,650
American Telephone & Telegraph Company . . . . . . . . . 78,700 3,791,757 4,131,750
Ameritech Corporation . . . . . . . . . . . . . . . . . . 12,500 1,052,067 959,375
Baltimore Gas and Electric Company . . . . . . . . . . . 9,100 228,346 230,913
GTE Corporation . . . . . . . . . . . . . . . . . . . . . 41,000 1,508,841 1,435,000
Gulf States Utilities Company . . . . . . . . . . . . . 61,700 852,636 1,249,425
MCI Communications Corporation . . . . . . . . . . . . . 230,700 5,375,029 6,517,275
Southern Company . . . . . . . . . . . . . . . . . . . . 30,500 1,302,971 1,345,813
Sonat Incorporated . . . . . . . . . . . . . . . . . . . 23,600 680,445 681,450
Sprint Corporation . . . . . . . . . . . . . . . . . . . 44,300 1,514,047 1,539,425
Texas Utilities Company . . . . . . . . . . . . . . . . . 40,100 1,747,394 1,734,325
U.S. West . . . . . . . . . . . . . . . . . . . . . . . . 74,400 2,817,032 3,413,100
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 22,191,779 $ 24,559,501
---------------- -----------------
RUBBER
Cooper Tire & Rubber Company . . . . . . . . . . . . . . 32,700 $ 763,312 $ 817,500
Goodyear Tire & Rubber Company . . . . . . . . . . . . . 10,500 436,957 480,375
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 1,200,269 $ 1,297,875
---------------- -----------------
SERVICE INDUSTRIES
ADR Vodafone Group PLC Sponsored . . . . . . . . . . . . 28,800 $ 2,333,665 $ 2,570,400
ADT Limited . . . . . . . . . . . . . . . . . . . . . . . 14,900 367,229 132,238
ADT Limited Warrants . . . . . . . . . . . . . . . . . . 2,483 15,048 2,016
Browning-Ferris Industries, Inc. . . . . . . . . . . . . 64,800 1,570,783 1,668,600
Chemical Waste Management Incorporated . . . . . . . . . 56,200 1,006,853 463,650
IMC Fertilizer Group Incorporated . . . . . . . . . . . 13,200 616,370 598,950
Service Corporation International . . . . . . . . . . . . 27,700 681,497 727,125
SPS Transaction Services Incorporated . . . . . . . . . . 100 5,838 6,025
Walt Disney Company . . . . . . . . . . . . . . . . . . . 49,600 2,071,663 2,114,200
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 8,668,946 $ 8,283,204
---------------- -----------------
16
SCHEDULE I (Continued)
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
TECHNOLOGY
Amgen Incorporated . . . . . . . . . . . . . . . . . . . 11,300 $ 438,759 $ 559,350
Cisco System Incorporated . . . . . . . . . . . . . . . . 65,700 3,202,205 4,245,863
Electronic Arts . . . . . . . . . . . . . . . . . . . . . 4,900 165,778 147,000
Hewlett-Packard Company . . . . . . . . . . . . . . . . . 30,800 2,374,732 2,433,200
Intel Corporation . . . . . . . . . . . . . . . . . . . . 223,300 9,353,544 13,844,600
Motorola Incorporated . . . . . . . . . . . . . . . . . . 124,900 8,629,009 11,522,025
Northern Telecom Limited . . . . . . . . . . . . . . . . 27,900 725,740 861,413
Oracle Systems Corporation . . . . . . . . . . . . . . . 99,000 3,019,900 2,846,250
Xilinx Incorporated . . . . . . . . . . . . . . . . . . . 4,200 144,146 200,550
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 28,053,813 $ 36,660,251
---------------- -----------------
TRANSPORTATION
AMR Corporation . . . . . . . . . . . . . . . . . . . . 2,700 $ 190,043 $ 180,900
CSX Corporation . . . . . . . . . . . . . . . . . . . . . 12,700 958,722 1,039,813
MESA Airlines . . . . . . . . . . . . . . . . . . . . . . 30,100 602,457 534,275
Southwest Airlines Company . . . . . . . . . . . . . . . 54,600 1,685,991 2,040,675
Union Pacific Corporation . . . . . . . . . . . . . . . 14,200 881,671 889,261
---------------- -----------------
Total . . . . . . . . . . . . . . . . . . . . . $ 4,318,884 $ 4,684,924
---------------- -----------------
Total Common Stocks . . . . . . . . . . . . . . . . . . $ 289,141,213 $ 315,614,711
---------------- -----------------
COMMINGLED FUNDS
Wells Fargo Bank Index Fund . . . . . . . . . . . . . . 726,970 $ 54,126,701 $ 74,852,410
---------------- -----------------
TOTAL EQUITIES . . . . . . . . . . . . . . . . . . . . . $ 343,267,914 $ 390,467,121
---------------- -----------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund . . . . . . . 9,489,021 $ 9,489,021 $ 9,489,021
Wells Fargo Bank Money Market Fund . . . . . . . . . . . 39 39 39
Tandon Computer Purchase Coupon . . . . . . . . . . . . 5,248 - 1,837
---------------- -----------------
Total Temporary Investments . . . . . . . . . . $ 9,489,060 $ 9,490,897
---------------- -----------------
INCOME RECEIVABLE . . . . . . . . . . . . . . . . . . . $ 437,954 $ 437,954
---------------- -----------------
TOTAL DIVERSIFIED PORTFOLIO FUND . . . . . . . . . . . . $ 353,194,928 $ 400,395,972
================ =================
PROPORTIONATE INTEREST . . . . . . . . . . . . . . . . . $ 300,633,026 $ 336,073,582
================ =================
17
SCHEDULE I (Continued)
FIXED INCOME FUND:
QUOTED
INTEREST RATE MATURITY MARKET
INVESTMENT CONTRACTS AS OF 12/31/93 DATE VALUE
-------------------- -------------- ---- -----
Aetna Life and Casualty Company . . . . . . . . . . . . . . 10.0% 1/3/00 $ 84,944,607
Aetna Life and Casualty Company . . . . . . . . . . . . . . 7.1% Open 359,638,776
Metropolitan Life Insurance Company . . . . . . . . . . . . 7.8% Open 373,685,311
The Prudential Insurance Company of America . . . . . . . . 9.9% 5/1/98 83,091,023
The Prudential Insurance Company of America . . . . . . . . 9.7% 8/31/00 41,250,835
The Prudential Insurance Company of America . . . . . . . . 9.8% 8/31/00 61,904,532
The Prudential Insurance Company of America . . . . . . . . 10.3% 6/5/99 55,597,953
The Prudential Insurance Company of America . . . . . . . . 7.3% Open 361,402,231
The Travelers Insurance Company . . . . . . . . . . . . . . 12.6% 7/1/95 180,605,141
The Travelers Insurance Company . . . . . . . . . . . . . . 14.0% 1/31/94 1,324,661
The Travelers Insurance Company . . . . . . . . . . . . . . 8.2% 2/1/97 3,985,763
The Travelers Insurance Company . . . . . . . . . . . . . . 9.7% 2/1/96 3,265,367
The Travelers Insurance Company . . . . . . . . . . . . . . 9.3% 2/1/98 3,438,265
-----------------
Total Insurance Contracts . . . . . . . . . . . . . . . . . $ 1,614,134,465
-----------------
TEMPORARY INVESTMENTS
The Northern Trust Company
Collective Short-Term Investment Fund . . . . . . . . . . . $ 14,667,411
-----------------
INCOME RECEIVABLE . . . . . . . . . . . . . . . . . . . . . $ 28,461
-----------------
TOTAL FIXED INCOME FUND . . . . . . . . . . . . . . . . . $ 1,628,830,337
=================
PROPORTIONATE INTEREST . . . . . . . . . . . . . . . . . . $ 1,387,331,460
=================
18
SCHEDULE I (Continued)
SPECIAL DISTRIBUTION FUND:
NUMBER OF
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
The Northern Trust Company
Collective Short-team Investment Fund . . . . . . . 47,509,803 $ 47,509,803 $ 47,509,803
INCOME RECEIVABLE . . . . . . . . . . . . . . . . . . . . 126,119 126,119
--------------- ----------------
TOTAL SPECIAL DISTRIBUTION FUND . . . . . . . . . . . . . $ 47,635,922 $ 47,635,922
=============== ================
PROPORTIONATE INTEREST . . . . . . . . . . . . . . . . . $ 34,443,581 $ 34,443,581
=============== ================
19
GENERAL DYNAMICS CORPORATION
SAVINGS AND STOCK INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
(1) INVESTMENT OPTIONS
The General Dynamics Corporation Savings and Stock Investment Plan (the
"Plan") has eight (8) investment options:
(i) 33 1/3% Government Bonds Fund, 33 1/3% Diversified Portfolio
Fund (equity securities of issues other than General Dynamics
Corporation) and 33 1/3% Company Stock Fund (General Dynamics
Corporation common stock).
(ii) 33 1/3% Government Bonds Fund and 66 2/3% Company Stock Fund.
(iii) 33 1/3% Government Bonds Fund and 66 2/3% Diversified Portfolio
Fund.
(iv) 100% Government Bonds Fund.
(v) 33 1/3% Fixed Income Fund (consists primarily of
investment contracts with one or more insurance companies
which guarantee a minimum rate of return over a specified
period) and 66 2/3% Diversified Portfolio Fund.
(vi) 33 1/3% Fixed Income Fund and 66 2/3% Company Stock Fund.
(vii) 100% Fixed Income Fund.
(viii) 100% Company Stock Fund.
The Plan permits active participants and employed inactive participants
to borrow up to 50% of the vested amount in their accounts (as limited by the
Plan) and to repay the loan by regular payroll deductions over a period of up to
five years.
Prior to April 1, 1991, General Dynamics Corporation (the "Company")
matched participant contributions at a rate of $.75 for each $1.00 of such
participant contributions. Both participant and related Company
contributions to the Plan were invested in the same investment option. Any
amounts forfeited in accordance with provisions of the Plan are applied to
reduce subsequent Company contributions.
Effective April 1, 1991, all Company matching contributions
provisions of the Plan were changed to provide that all matching
contributions made thereafter would be invested in Company Stock. In
addition, a new investment option, Option 8, was added, under which the
Company will match participant contributions at a rate of $1.00 for each
$1.00 of participant contributions if the participant chooses to invest
100% of the participant's contributions in the Company Stock Fund.
Contributions invested in the Company Stock Fund must be maintained in that
fund for five years before becoming eligible for transfer to any other fund.
Participants who do not elect Option 8 receive 50% matching contributions in
Company Stock.
Prior to December 3, 1991, if the Company made any distributions with
respect to Company Stock held under the Plan, all such distributions would
have been used to acquire additional shares of Company Stock for the accounts
of those members with interests in the Company Stock Fund. Effective
December 3, 1991, the Plan was amended to provide that any Special
Distributions payable with respect to Company Stock allocated to participant
accounts would be credited to the participants in a new investment fund, the
Special Distribution Fund, rather than being automatically reinvested in
additional shares of Company Stock. Participants are entitled to transfer
amounts credited to their accounts in the Special Distribution Fund to other
investment funds. Special Distributions include all proceeds received from
tenders or sales of Company Stock and other distributions, except regular
quarterly dividends which will continue to be invested in Company Stock.
Funds credited to these accounts in the Special Distribution Fund are invested
in high quality securities.
In addition, the Plan was amended to permit participants who have
shares of Company Stock allocated to their accounts to direct the trustee with
respect to tender of shares pursuant to any Company Stock repurchase program
or tender offer. Any proceeds realized from such share repurchase will be
treated as a Special Distribution.
20
On June 8, 1992, the Company announced an offer to purchase 26,000,000
shares of its common stock, par value $1 per share (including the associated
series A Junior Participating Preferred Stock Purchase Rights) at a price not
less than $32 11/16 per share nor greater than $37 1/2 per share through a
Self-Tender Offer. The Offer became effective June 10, 1992, and expired on
July 8, 1992. The Company actually purchased 26,499,782 shares of its common
stock at $36 1/8 per share. Plan participants were permitted to participate
in this Offer under the terms of the Plan and tendered approximately
6,425,932 shares. Proceeds received by the Plan ($232,136,794) for allocated
shares tendered and accepted under the Offer were credited to accounts created
in the Special Distribution Fund for participants who directed that such shares
be tendered. Participants are permitted to transfer amounts to their credit in
the Special Distribution Fund to other funds, including the Company Stock
Fund. These transfers are reflected in the Statement of Income and Changes
in Plan Equity as transfers between investment funds. During the pendency of
the Offer and the succeeding tabulation period, the Plan did not purchase
any Company Stock, but held amounts invested in the Company Stock Fund for
later investment in Company Stock. Company Stock purchases were resumed on
July 30, 1992.
Prior to January 1, 1988, investments purchased with each year's
Company contributions did not vest in the member until they had remained in
the member's account for three full calendar years or upon earlier termination
of employment by reason of death, retirement, layoff, permanent or total
disability, discharge without fault or involuntary entry into military
service. Effective January 1, 1988, all members actively employed on or after
January 1, 1988, will become fully vested in all Company contributions made to
their accounts upon the earlier of completion of five years of continuous
service with the Company or death, retirement, layoff, permanent or total
disability, discharge without fault or involuntary entry into military service.
Investment fund transfer rules were expanded on April 1, 1991, to
allow all Plan members to elect one fund transfer per calendar year.
Participants may transfer both their contributions and the Company's
contributions invested in any fund to any other investment fund, except as
follows:
- transfers may not be made from the Fixed Income Fund,
- funds may not be transferred into and out of the same
investment fund during a transfer, and
- all investments in Company common stock must be held for
five plan years before they may be transferred.
Transfers from the Company Stock Fund may only be initiated after
January 1, 1993.
In addition, all investments made in the Company Stock Fund after March
31, 1991, must be held for five plan years before they may be withdrawn or
borrowed. Also, the amount of any loan made after March 31, 1991, is limited
to vested non-Company Stock Fund investments, pre-April 1, 1991 Company
common stock and Company common stock which has been held for five plan
years. Loans are first sourced from non-Company Stock Fund investments.
21
The number of participants in each investment option was as follows:
PARTICIPATING EMPLOYEES
----------------------------------------
AS OF AS OF AS OF
OPTION 12/31/93 12/31/92 12/31/91
-------- -------- --------
(i) . . . . . . . . . . . . . . . . . . . . . . . . 1,017 1,367 1,840
(ii) . . . . . . . . . . . . . . . . . . . . . . . . 220 296 397
(iii) . . . . . . . . . . . . . . . . . . . . . . . . 1,175 1,407 1,394
(iv) . . . . . . . . . . . . . . . . . . . . . . . . 1,083 1,653 1,869
(v) . . . . . . . . . . . . . . . . . . . . . . . . 3,727 4,483 4,804
(vi) . . . . . . . . . . . . . . . . . . . . . . . . 388 490 697
(vii) . . . . . . . . . . . . . . . . . . . . . . . . 11,365 14,645 17,526
(viii) . . . . . . . . . . . . . . . . . . . . . . . . 8,603 10,941 13,728
(2) FEDERAL INCOME TAXES
The Company has received a determination from the Internal Revenue
Service that the Plan, including all amendments through August 31, 1985, is
a qualified profit sharing plan under Section 401(a) of the Internal Revenue
Code (the "Code"), and that the Trust formed thereunder is exempt from Federal
income tax under Section 501(a). Effective September 1, 1983, the Plan was
amended to permit participants to make future contributions to the Plan on
a before-tax basis through salary deferral, subject to the provisions and
limitations of Section 401(k) of the Code. The Plan has been amended since
receiving the determination letter. However, the Plan Administrator and the
Plan's tax counsel believe that the Plan is currently designed and being
operated in compliance with the applicable requirements of the Code.
Therefore, they believe that the Plan was qualified and the related trust was
tax exempt as of the financial statement date.
On June 20, 1994, the Plan was restated effective as of April 1, 1988,
to comply with the Tax Reform Act of 1986 and subsequent legislation. General
Dynamics Corporation, with the assistance of legal counsel, has requested a
determination letter for the restated plan from the Internal Revenue Service.
The Company believes that the IRS will issue a favorable determination letter
indicating that the Restated Plan is in compliance with the IRS and ERISA
requirements.
Under a qualified profit sharing plan, a member of the Plan is not
subject to income tax on contributions made by the Company on the member's
behalf, or on dividends, interest or profits from sales of securities
credited to the member's account, until the contributions or income credited
to the member's account are withdrawn by the member. Secondly, the Trust is
not subject to income tax on dividends, interest or profits from sales of
securities received by The Chase Manhattan Bank, N.A. , the trustee of the Plan
through August 31, 1991, or by The Northern Trust Company, the trustee of the
Plan for the two years and four months ended December 31, 1993. Lastly, the
Company is entitled to a current deduction for its contributions to the Plan.
Under the Tax Reform Act of 1986 (the "Act"), different tax treatments
are accorded undistributed amounts of pre-January 1, 1987 after-tax
contributions as opposed to after-tax contributions made thereafter.
Distributions made after January 1, 1987 are considered to be allocable,
first, to undistributed pre-January 1, 1987 after-tax contributions.
Distributions will be nontaxable until amounts equal to those contributions
have been recovered. Thereafter, a pro rata portion of each distribution
will be considered to be a return of post-January 1, 1987 after-tax
contributions, if any.
(3) Master Trust Funds
For investment purposes, the assets of the Plan are combined in Master
Trust Funds with the assets of the General Dynamics Corporation Hourly Employees
Savings and Stock Investment Plan and the Amended and Restated Hourly Employee
Investment Plan of the Cessna Aircraft Company. The value shown in the
accompanying financial statements represents the Plan's proportionate interest
in the reported market value of the assets in the Master Trust Funds.
Investment income, realized gains or losses and unrealized appreciation or
depreciation are
22
allocated monthly to the respective plans based on their proportionate
interest in the Master Trust at market value.
(4) NET REALIZED GAIN (LOSS) ON SECURITIES SOLD OR DISTRIBUTED
The cost of securities sold or distributed is based on average cost.
Gains and losses are recognized on Company common stock forfeited by or
distributed to participants. The following is a summary of the net realized
gain (loss) on disposition of securities for the years ended December 31, 1993,
1992 and 1991:
MASTER TRUST
------------------------------------------------------------------------------
NET PROPORTIONATE
FUND COST PROCEEDS GAIN (LOSS) INTEREST
--------------- ---------------- --------------- --------------
1993
Company stock . . . . . . . . . . . . . . . $ 31,889,522 $ 63,626,462 $ 31,736,940 $ 25,471,055
Government bonds . . . . . . . . . . . . . 316,764,926 318,337,717 1,572,791 976,965
Diversified portfolio . . . . . . . . . . . 378,111,420 415,031,520 36,920,100 30,955,487
Fixed income . . . . . . . . . . . . . . . 200,148,747 202,422,664 2,273,917 1,946,511
Special distribution . . . . . . . . . . . 25,523,438 25,032,891 (490,547) (389,473)
--------------- ---------------- --------------- --------------
$ 952,438,053 $ 1,024,451,254 $ 72,013,201 $ 58,960,545
=============== ================ =============== ==============
1992
Company stock . . . . . . . . . . . . . . . $ 209,440,229 $ 333,713,328 $ 124,273,099 $ 106,982,092
Government bonds . . . . . . . . . . . . . 191,809,837 193,741,338 1,931,501 1,170,040
Diversified portfolio . . . . . . . . . . . 385,683,834 415,322,023 29,638,189 24,472,378
Fixed income . . . . . . . . . . . . . . . 1,062,539,917 1,069,640,439 7,100,522 6,103,437
Special distribution . . . . . . . . . . . 214,796,875 215,041,016 244,141 228,206
--------------- ---------------- --------------- --------------
$ 2,064,270,692 $ 2,227,458,144 $ 163,187,452 $ 138,956,153
=============== ================ =============== ==============
1991
Company stock . . . . . . . . . . . . . . . $ 72,558,883 $ 71,303,834 $ (1,255,049) $ (823,430)
Government bonds . . . . . . . . . . . . . 419,671,280 422,956,248 3,284,968 2,011,663
Diversified portfolio . . . . . . . . . . . 482,408,848 514,890,477 32,481,629 26,567,212
Fixed income . . . . . . . . . . . . . . . 1,067,648,505 1,071,111,958 3,463,453 2,998,797
--------------- ---------------- --------------- --------------
$ 2,042,287,516 $ 2,080,262,517 $ 37,975,001 $ 30,754,242
=============== ================ =============== ==============
(5) NET GAIN FROM SPECIAL DISTRIBUTION
During 1993, the Company's Board of Directors declared the following
special distributions to its shareholders:
Date of
Date Date Shareholder Distribution
Declared Payable Record per Share Proceeds
-------- ------- ------ --------- --------
March 18 April 12 April 5 $10 $ 50,858,255
June 2 July 12 June 21 $9 $ 43,150,385
September 15 October 12 September 28 $6 $ 30,143,548
All distributions were deposited into the Special Distribution Fund.
Each participant was entitled to a one-time transfer of each distribution to any
other fund in the Plan. A portion of these distributions represented a return
of capital. The proportionate interest in the gain attributable to the Plan was
$61,228,410.
23
(6) UNREALIZED APPRECIATION (DEPRECIATION)
The unrealized appreciation (depreciation) of investments for the
years ended December 31, 1993, 1992 and 1991 is as follows:
UNREALIZED APPRECIATION
(DEPRECIATION)
-------------------------------------------------
BEGINNING END OF INCREASE
FUND OF YEAR YEAR (DECREASE)
---- ------- ---- ----------
1993
Company stock . . . . . . . . . . . . . . . . . . . . . . . $ 126,615,458 $ 134,538,909 $ 7,923,451
Government bonds . . . . . . . . . . . . . . . . . . . . . 1,074,412 (1,748,465) (2,822,877)
Diversified portfolio . . . . . . . . . . . . . . . . . . . 41,173,609 34,841,116 (6,332,493)
Fixed income . . . . . . . . . . . . . . . . . . . . . . . 32,218 3,986 (28,232)
Special distribution . . . . . . . . . . . . . . . . . . . (107,534) (23,762) 83,772
-------------- --------------- ---------------
$ 168,788,163 $ 167,611,784 $ (1,176,379)
============== =============== ===============
1992
Company stock . . . . . . . . . . . . . . . . . . . . . . . $ 61,929,248 $ 126,615,458 $ 64,686,210
Government bonds . . . . . . . . . . . . . . . . . . . . . 4,663,234 1,074,412 (3,588,822)
Diversified portfolio . . . . . . . . . . . . . . . . . . . 39,376,806 41,173,609 1,796,803
Fixed income . . . . . . . . . . . . . . . . . . . . . . . 1,898,313 32,218 (1,866,095)
Special distribution . . . . . . . . . . . . . . . . . . . - (107,534) (107,534)
-------------- --------------- ---------------
$ 107,867,601 $ 168,788,163 $ 60,920,562
============== =============== ===============
1991
Company stock . . . . . . . . . . . . . . . . . . . . . . . $ (42,433,684) $ 61,929,248 $ 104,362,932
Government bonds . . . . . . . . . . . . . . . . . . . . . 1,441,883 4,663,234 3,221,351
Diversified portfolio . . . . . . . . . . . . . . . . . . . 5,665,708 39,376,806 33,711,098
Fixed income . . . . . . . . . . . . . . . . . . . . . . . - 1,898,313 1,898,313
-------------- --------------- ---------------
$ (35,326,093) $ 107,867,601 $ 143,193,694
============== =============== ===============
24
(7) WITHDRAWALS AND FORFEITURES
The following is a summary of amounts withdrawn during the years ended
December 31, 1993, 1992 and 1991. The amounts forfeited have been reflected
as reductions in the Company's contributions on the accompanying
statements of income and changes in plan equity:
BALANCE OF AMOUNT
PARTICIPANTS' DISBURSED ON AMOUNT
FUND ACCOUNTS SETTLEMENT FORFEITED
---- -------- ---------- ---------
1993
Company stock . . . . . . . . . . . . . . . . . . . . . . . $ 64,922,493 $ 64,594,257 $ 328,236
Government bonds . . . . . . . . . . . . . . . . . . . . . 50,049,814 50,040,266 9,548
Diversified portfolio . . . . . . . . . . . . . . . . . . . 74,223,499 74,127,643 95,856
Fixed income . . . . . . . . . . . . . . . . . . . . . . . 254,183,365 254,073,122 110,243
Special distribution . . . . . . . . . . . . . . . . . . . 16,153,109 16,076,200 76,909
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,716,131 10,716,131 -
-------------- --------------- ---------------
$ 470,248,411 $ 469,627,619 $ 620,792
============== =============== ===============
1992
Company stock . . . . . . . . . . . . . . . . . . . . . . . $ 72,017,427 $ 71,594,461 $ 422,966
Government bonds . . . . . . . . . . . . . . . . . . . . . 45,215,910 45,192,318 23,592
Diversified portfolio . . . . . . . . . . . . . . . . . . . 60,305,632 60,140,616 165,016
Fixed income . . . . . . . . . . . . . . . . . . . . . . . 238,755,617 238,485,893 269,724
Special distribution . . . . . . . . . . . . . . . . . . . 17,220,430 17,139,579 80,851
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,229,343 8,229,343 -
-------------- --------------- ---------------
$ 441,744,359 $ 440,782,210 $ 962,149
============== =============== ===============
1991
Company stock . . . . . . . . . . . . . . . . . . . . . . . $ 16,854,321 $ 16,552,513 $ 301,808
Government bonds . . . . . . . . . . . . . . . . . . . . . 25,052,638 24,950,823 101,815
Diversified portfolio . . . . . . . . . . . . . . . . . . . 26,680,261 26,201,134 479,127
Fixed income . . . . . . . . . . . . . . . . . . . . . . . 145,915,098 144,859,116 1,055,982
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,112,960 7,112,960 -
-------------- --------------- ---------------
$ 221,615,278 $ 219,676,546 $ 1,938,732
============== =============== ===============
(8) DEPARTMENT OF LABOR RECONCILIATION
In accordance with generally accepted accounting principles, amounts
allocated to accounts of participants who have elected to withdraw from the Plan
but have not yet been paid as of year-end are not reported as liabilities on the
Statements of Financial Condition. However, the Department of Labor requires
that these amounts be reported as liabilities on Form 5500. At December 31,
1993 and 1992, amounts payable on withdrawals and distributions were
$44,262,758 and $36,427,349, respectively. In addition, on the Statement of
Income and Changes in Plan Equity, 1993 distributions to withdrawn participants
would have been $477,463,028 instead of $469,627,619 if the December 31 amounts
payable on withdrawals and distributions had been included.
On the Statement of Income and Changes in Plan Equity, net realized gain
(loss) on assets sold or distributed and unrealized appreciation (depreciation)
of assets are reported in accordance with generally accepted accounting
principles. The following restatement is necessary to comply with the
Department of Labor's rules which require that realized and unrealized
appreciation (depreciation) of plan assets be based on the value of the assets
at the beginning of the plan year or at time of purchase during the year. In
addition, the Department of Labor's regulations require that both the net
realized gain (loss) and the unrealized appreciation (depreciation) on the
Plan's investments in various commingled funds be classified as a net investment
gain (loss) from common/collective trusts.
Generally Accepted Department of
Accounting Principles Labor's Regulations
--------------------- -------------------
Net realized gain (loss) on
assets sold or distributed $ 58,960,545 $ 68,306,785
Unrealized depreciation of assets (1,176,379) (15,399,705)
Net investment gain from
common/collective trusts - 4,877,086
--------------------- ----------------------
$ 57,784,166 $ 57,784,166
===================== ======================
25
(9) PLAN EXPENSES
Administrative expenses of the Plan are principally paid by the Plan and
may be paid by the Company.
(10) PRIOR YEAR RESTATEMENT
Certain items on the 1992 and 1991 financial statements have been
restated in order to conform with the 1993 presentation.
(11) DISCONTINUED OPERATIONS
During 1992, the Company completed the sales of The Cessna Aircraft
Company to Textron, Inc., its Missile Systems business to Hughes Aircraft
Company and its Electronics business to The Carlyle Group. During 1993, the
Company completed the sale of its Tactical Military Aircraft business to
Lockheed Corporation and its Electronic Manufacturing Center to EFW, Inc.
Contributions to the Plan were terminated for the participants at these
sold-off businesses. Participants may elect to receive total account balance
distributions from the Plan at any time. All participants at these sold-off
businesses are fully vested in the Plan.
(12) SUBSEQUENT EVENTS
The Company closed the sale of the lime and brick operations of its
Material Service business to Calcitherm Netherlands N.V. on February 28, 1994.
Additionally, the Company also closed the sale of its Space Launch Systems
business to Martin Marietta Corporation on May 2, 1994. Plan contributions
for the participants were terminated as of the sale date. All participants
were fully vested and may elect to receive total account balance distributions
from the Plan at any time.
On March 4, 1994, the Company's Board of Directors authorized a
two-for-one stock split effected in the form of a 100% stock dividend to be
distributed on April 11, 1994 to shareholders of record on March 21, 1994. All
references in the financial statements to number of shares, per share amounts
and market prices of the Company's common stock have been restated.
26
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To General Dynamics Corporation:
We have audited the accompanying statements of financial condition of
the General Dynamics Corporation Savings and Stock Investment Plan as of
December 31, 1993 and 1992, and the related statements of income and changes in
plan equity for each of the three years in the period ended December 31,
1993. These financial statements and the schedule referred to below are the
responsibility of the Plan Administrator. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial condition of the General
Dynamics Corporation Savings and Stock Investment Plan as of December 31,
1993 and 1992, and the income and changes in plan equity for each of the
three years in the period ended December 31, 1993, in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The Combined Statement of
Investments of Master Trust Funds (Schedule I) is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements, but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. This information has been subjected
to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Washington, D.C. ARTHUR ANDERSEN & CO.
June 29, 1994