000004053312/312023Q3falseP91D1.50200000405332023-01-012023-10-0100000405332023-10-01xbrli:shares0000040533us-gaap:ProductMember2023-07-032023-10-01iso4217:USD0000040533us-gaap:ProductMember2022-07-042022-10-020000040533us-gaap:ServiceMember2023-07-032023-10-010000040533us-gaap:ServiceMember2022-07-042022-10-0200000405332023-07-032023-10-0100000405332022-07-042022-10-02iso4217:USDxbrli:shares0000040533us-gaap:ProductMember2023-01-012023-10-010000040533us-gaap:ProductMember2022-01-012022-10-020000040533us-gaap:ServiceMember2023-01-012023-10-010000040533us-gaap:ServiceMember2022-01-012022-10-0200000405332022-01-012022-10-0200000405332022-12-3100000405332021-12-3100000405332022-10-020000040533us-gaap:CommonStockMember2023-07-020000040533us-gaap:AdditionalPaidInCapitalMember2023-07-020000040533us-gaap:RetainedEarningsMember2023-07-020000040533us-gaap:TreasuryStockCommonMember2023-07-020000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-0200000405332023-07-020000040533us-gaap:RetainedEarningsMember2023-07-032023-10-010000040533us-gaap:AdditionalPaidInCapitalMember2023-07-032023-10-010000040533us-gaap:TreasuryStockCommonMember2023-07-032023-10-010000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-032023-10-010000040533us-gaap:CommonStockMember2023-10-010000040533us-gaap:AdditionalPaidInCapitalMember2023-10-010000040533us-gaap:RetainedEarningsMember2023-10-010000040533us-gaap:TreasuryStockCommonMember2023-10-010000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-010000040533us-gaap:CommonStockMember2022-07-030000040533us-gaap:AdditionalPaidInCapitalMember2022-07-030000040533us-gaap:RetainedEarningsMember2022-07-030000040533us-gaap:TreasuryStockCommonMember2022-07-030000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-0300000405332022-07-030000040533us-gaap:RetainedEarningsMember2022-07-042022-10-020000040533us-gaap:AdditionalPaidInCapitalMember2022-07-042022-10-020000040533us-gaap:TreasuryStockCommonMember2022-07-042022-10-020000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-042022-10-020000040533us-gaap:CommonStockMember2022-10-020000040533us-gaap:AdditionalPaidInCapitalMember2022-10-020000040533us-gaap:RetainedEarningsMember2022-10-020000040533us-gaap:TreasuryStockCommonMember2022-10-020000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-020000040533us-gaap:CommonStockMember2022-12-310000040533us-gaap:AdditionalPaidInCapitalMember2022-12-310000040533us-gaap:RetainedEarningsMember2022-12-310000040533us-gaap:TreasuryStockCommonMember2022-12-310000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000040533us-gaap:RetainedEarningsMember2023-01-012023-10-010000040533us-gaap:AdditionalPaidInCapitalMember2023-01-012023-10-010000040533us-gaap:TreasuryStockCommonMember2023-01-012023-10-010000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-10-010000040533us-gaap:CommonStockMember2021-12-310000040533us-gaap:AdditionalPaidInCapitalMember2021-12-310000040533us-gaap:RetainedEarningsMember2021-12-310000040533us-gaap:TreasuryStockCommonMember2021-12-310000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000040533us-gaap:RetainedEarningsMember2022-01-012022-10-020000040533us-gaap:AdditionalPaidInCapitalMember2022-01-012022-10-020000040533us-gaap:TreasuryStockCommonMember2022-01-012022-10-020000040533us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-10-020000040533us-gaap:TransferredOverTimeMember2023-07-032023-10-01xbrli:pure0000040533us-gaap:TransferredOverTimeMember2023-01-012023-10-010000040533us-gaap:TransferredOverTimeMember2022-07-042022-10-020000040533us-gaap:TransferredOverTimeMember2022-01-012022-10-020000040533us-gaap:TransferredAtPointInTimeMember2023-07-032023-10-010000040533us-gaap:TransferredAtPointInTimeMember2023-01-012023-10-010000040533us-gaap:TransferredAtPointInTimeMember2022-07-042022-10-020000040533us-gaap:TransferredAtPointInTimeMember2022-01-012022-10-0200000405332023-10-022023-10-0100000405332024-01-012023-10-010000040533us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2023-07-032023-10-010000040533us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2022-07-042022-10-020000040533us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2023-01-012023-10-010000040533us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2022-01-012022-10-02gd:contract0000040533gd:AerospaceMembergd:AircraftManufacturingMember2023-07-032023-10-010000040533gd:AerospaceMembergd:AircraftManufacturingMember2022-07-042022-10-020000040533gd:AerospaceMembergd:AircraftManufacturingMember2023-01-012023-10-010000040533gd:AerospaceMembergd:AircraftManufacturingMember2022-01-012022-10-020000040533gd:AerospaceMembergd:AircraftServicesMember2023-07-032023-10-010000040533gd:AerospaceMembergd:AircraftServicesMember2022-07-042022-10-020000040533gd:AerospaceMembergd:AircraftServicesMember2023-01-012023-10-010000040533gd:AerospaceMembergd:AircraftServicesMember2022-01-012022-10-020000040533gd:AerospaceMember2023-07-032023-10-010000040533gd:AerospaceMember2022-07-042022-10-020000040533gd:AerospaceMember2023-01-012023-10-010000040533gd:AerospaceMember2022-01-012022-10-020000040533gd:NuclearPoweredSubmarinesMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:NuclearPoweredSubmarinesMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:NuclearPoweredSubmarinesMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:NuclearPoweredSubmarinesMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:SurfaceshipsMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:SurfaceshipsMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:SurfaceshipsMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:SurfaceshipsMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:MarineSystemsMembergd:RepairandOtherServicesMember2023-07-032023-10-010000040533gd:MarineSystemsMembergd:RepairandOtherServicesMember2022-07-042022-10-020000040533gd:MarineSystemsMembergd:RepairandOtherServicesMember2023-01-012023-10-010000040533gd:MarineSystemsMembergd:RepairandOtherServicesMember2022-01-012022-10-020000040533gd:MarineSystemsMember2023-07-032023-10-010000040533gd:MarineSystemsMember2022-07-042022-10-020000040533gd:MarineSystemsMember2023-01-012023-10-010000040533gd:MarineSystemsMember2022-01-012022-10-020000040533gd:MilitaryvehiclesMembergd:CombatSystemsMember2023-07-032023-10-010000040533gd:MilitaryvehiclesMembergd:CombatSystemsMember2022-07-042022-10-020000040533gd:MilitaryvehiclesMembergd:CombatSystemsMember2023-01-012023-10-010000040533gd:MilitaryvehiclesMembergd:CombatSystemsMember2022-01-012022-10-020000040533gd:WeaponsSystemsandMunitionsMembergd:CombatSystemsMember2023-07-032023-10-010000040533gd:WeaponsSystemsandMunitionsMembergd:CombatSystemsMember2022-07-042022-10-020000040533gd:WeaponsSystemsandMunitionsMembergd:CombatSystemsMember2023-01-012023-10-010000040533gd:WeaponsSystemsandMunitionsMembergd:CombatSystemsMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:EngineeringandOtherServicesMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:EngineeringandOtherServicesMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:EngineeringandOtherServicesMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:EngineeringandOtherServicesMember2022-01-012022-10-020000040533gd:CombatSystemsMember2023-07-032023-10-010000040533gd:CombatSystemsMember2022-07-042022-10-020000040533gd:CombatSystemsMember2023-01-012023-10-010000040533gd:CombatSystemsMember2022-01-012022-10-020000040533gd:InformationTechnologyServicesMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:InformationTechnologyServicesMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:InformationTechnologyServicesMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:InformationTechnologyServicesMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:C5ISRSolutionsMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:C5ISRSolutionsMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:C5ISRSolutionsMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:C5ISRSolutionsMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:TechnologiesMember2023-07-032023-10-010000040533gd:TechnologiesMember2022-07-042022-10-020000040533gd:TechnologiesMember2023-01-012023-10-010000040533gd:TechnologiesMember2022-01-012022-10-020000040533gd:AerospaceMemberus-gaap:FixedPriceContractMember2023-07-032023-10-010000040533us-gaap:FixedPriceContractMembergd:MarineSystemsMember2023-07-032023-10-010000040533us-gaap:FixedPriceContractMembergd:CombatSystemsMember2023-07-032023-10-010000040533us-gaap:FixedPriceContractMembergd:TechnologiesMember2023-07-032023-10-010000040533us-gaap:FixedPriceContractMember2023-07-032023-10-010000040533gd:AerospaceMembergd:CostReimbursementMember2023-07-032023-10-010000040533gd:CostReimbursementMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:CostReimbursementMember2023-07-032023-10-010000040533gd:CostReimbursementMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:CostReimbursementMember2023-07-032023-10-010000040533gd:AerospaceMemberus-gaap:TimeAndMaterialsContractMember2023-07-032023-10-010000040533us-gaap:TimeAndMaterialsContractMembergd:MarineSystemsMember2023-07-032023-10-010000040533us-gaap:TimeAndMaterialsContractMembergd:CombatSystemsMember2023-07-032023-10-010000040533us-gaap:TimeAndMaterialsContractMembergd:TechnologiesMember2023-07-032023-10-010000040533us-gaap:TimeAndMaterialsContractMember2023-07-032023-10-010000040533gd:AerospaceMemberus-gaap:FixedPriceContractMember2022-07-042022-10-020000040533us-gaap:FixedPriceContractMembergd:MarineSystemsMember2022-07-042022-10-020000040533us-gaap:FixedPriceContractMembergd:CombatSystemsMember2022-07-042022-10-020000040533us-gaap:FixedPriceContractMembergd:TechnologiesMember2022-07-042022-10-020000040533us-gaap:FixedPriceContractMember2022-07-042022-10-020000040533gd:AerospaceMembergd:CostReimbursementMember2022-07-042022-10-020000040533gd:CostReimbursementMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:CostReimbursementMember2022-07-042022-10-020000040533gd:CostReimbursementMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:CostReimbursementMember2022-07-042022-10-020000040533gd:AerospaceMemberus-gaap:TimeAndMaterialsContractMember2022-07-042022-10-020000040533us-gaap:TimeAndMaterialsContractMembergd:MarineSystemsMember2022-07-042022-10-020000040533us-gaap:TimeAndMaterialsContractMembergd:CombatSystemsMember2022-07-042022-10-020000040533us-gaap:TimeAndMaterialsContractMembergd:TechnologiesMember2022-07-042022-10-020000040533us-gaap:TimeAndMaterialsContractMember2022-07-042022-10-020000040533gd:AerospaceMemberus-gaap:FixedPriceContractMember2023-01-012023-10-010000040533us-gaap:FixedPriceContractMembergd:MarineSystemsMember2023-01-012023-10-010000040533us-gaap:FixedPriceContractMembergd:CombatSystemsMember2023-01-012023-10-010000040533us-gaap:FixedPriceContractMembergd:TechnologiesMember2023-01-012023-10-010000040533us-gaap:FixedPriceContractMember2023-01-012023-10-010000040533gd:AerospaceMembergd:CostReimbursementMember2023-01-012023-10-010000040533gd:CostReimbursementMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:CostReimbursementMember2023-01-012023-10-010000040533gd:CostReimbursementMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:CostReimbursementMember2023-01-012023-10-010000040533gd:AerospaceMemberus-gaap:TimeAndMaterialsContractMember2023-01-012023-10-010000040533us-gaap:TimeAndMaterialsContractMembergd:MarineSystemsMember2023-01-012023-10-010000040533us-gaap:TimeAndMaterialsContractMembergd:CombatSystemsMember2023-01-012023-10-010000040533us-gaap:TimeAndMaterialsContractMembergd:TechnologiesMember2023-01-012023-10-010000040533us-gaap:TimeAndMaterialsContractMember2023-01-012023-10-010000040533gd:AerospaceMemberus-gaap:FixedPriceContractMember2022-01-012022-10-020000040533us-gaap:FixedPriceContractMembergd:MarineSystemsMember2022-01-012022-10-020000040533us-gaap:FixedPriceContractMembergd:CombatSystemsMember2022-01-012022-10-020000040533us-gaap:FixedPriceContractMembergd:TechnologiesMember2022-01-012022-10-020000040533us-gaap:FixedPriceContractMember2022-01-012022-10-020000040533gd:AerospaceMembergd:CostReimbursementMember2022-01-012022-10-020000040533gd:CostReimbursementMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:CostReimbursementMember2022-01-012022-10-020000040533gd:CostReimbursementMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:CostReimbursementMember2022-01-012022-10-020000040533gd:AerospaceMemberus-gaap:TimeAndMaterialsContractMember2022-01-012022-10-020000040533us-gaap:TimeAndMaterialsContractMembergd:MarineSystemsMember2022-01-012022-10-020000040533us-gaap:TimeAndMaterialsContractMembergd:CombatSystemsMember2022-01-012022-10-020000040533us-gaap:TimeAndMaterialsContractMembergd:TechnologiesMember2022-01-012022-10-020000040533us-gaap:TimeAndMaterialsContractMember2022-01-012022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentDepartmentofDefenseMember2023-07-032023-10-010000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentDepartmentofDefenseMember2023-07-032023-10-010000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:U.S.GovernmentDepartmentofDefenseMember2023-07-032023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-07-032023-10-010000040533gd:MarineSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-07-032023-10-010000040533gd:TechnologiesMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-07-032023-10-010000040533gd:U.S.GovernmentNonDepartmentofDefenseMember2023-07-032023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentForeignMilitarySalesMember2023-07-032023-10-010000040533gd:MarineSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2023-07-032023-10-010000040533gd:TechnologiesMembergd:U.S.GovernmentForeignMilitarySalesMember2023-07-032023-10-010000040533gd:U.S.GovernmentForeignMilitarySalesMember2023-07-032023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentMember2023-07-032023-10-010000040533gd:U.S.GovernmentMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentMember2023-07-032023-10-010000040533gd:U.S.GovernmentMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:U.S.GovernmentMember2023-07-032023-10-010000040533gd:AerospaceMembergd:U.S.CommercialMember2023-07-032023-10-010000040533gd:U.S.CommercialMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:CombatSystemsMembergd:U.S.CommercialMember2023-07-032023-10-010000040533gd:U.S.CommercialMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:U.S.CommercialMember2023-07-032023-10-010000040533gd:AerospaceMembergd:NonUSGovernmentMember2023-07-032023-10-010000040533gd:NonUSGovernmentMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:NonUSGovernmentMembergd:CombatSystemsMember2023-07-032023-10-010000040533gd:NonUSGovernmentMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:NonUSGovernmentMember2023-07-032023-10-010000040533gd:AerospaceMembergd:NonU.S.CommercialMember2023-07-032023-10-010000040533gd:NonU.S.CommercialMembergd:MarineSystemsMember2023-07-032023-10-010000040533gd:NonU.S.CommercialMembergd:CombatSystemsMember2023-07-032023-10-010000040533gd:NonU.S.CommercialMembergd:TechnologiesMember2023-07-032023-10-010000040533gd:NonU.S.CommercialMember2023-07-032023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentDepartmentofDefenseMember2022-07-042022-10-020000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentDepartmentofDefenseMember2022-07-042022-10-020000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:U.S.GovernmentDepartmentofDefenseMember2022-07-042022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-07-042022-10-020000040533gd:MarineSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-07-042022-10-020000040533gd:TechnologiesMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-07-042022-10-020000040533gd:U.S.GovernmentNonDepartmentofDefenseMember2022-07-042022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentForeignMilitarySalesMember2022-07-042022-10-020000040533gd:MarineSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2022-07-042022-10-020000040533gd:TechnologiesMembergd:U.S.GovernmentForeignMilitarySalesMember2022-07-042022-10-020000040533gd:U.S.GovernmentForeignMilitarySalesMember2022-07-042022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentMember2022-07-042022-10-020000040533gd:U.S.GovernmentMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentMember2022-07-042022-10-020000040533gd:U.S.GovernmentMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:U.S.GovernmentMember2022-07-042022-10-020000040533gd:AerospaceMembergd:U.S.CommercialMember2022-07-042022-10-020000040533gd:U.S.CommercialMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:CombatSystemsMembergd:U.S.CommercialMember2022-07-042022-10-020000040533gd:U.S.CommercialMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:U.S.CommercialMember2022-07-042022-10-020000040533gd:AerospaceMembergd:NonUSGovernmentMember2022-07-042022-10-020000040533gd:NonUSGovernmentMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:NonUSGovernmentMembergd:CombatSystemsMember2022-07-042022-10-020000040533gd:NonUSGovernmentMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:NonUSGovernmentMember2022-07-042022-10-020000040533gd:AerospaceMembergd:NonU.S.CommercialMember2022-07-042022-10-020000040533gd:NonU.S.CommercialMembergd:MarineSystemsMember2022-07-042022-10-020000040533gd:NonU.S.CommercialMembergd:CombatSystemsMember2022-07-042022-10-020000040533gd:NonU.S.CommercialMembergd:TechnologiesMember2022-07-042022-10-020000040533gd:NonU.S.CommercialMember2022-07-042022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentDepartmentofDefenseMember2023-01-012023-10-010000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentDepartmentofDefenseMember2023-01-012023-10-010000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:U.S.GovernmentDepartmentofDefenseMember2023-01-012023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-01-012023-10-010000040533gd:MarineSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-01-012023-10-010000040533gd:TechnologiesMembergd:U.S.GovernmentNonDepartmentofDefenseMember2023-01-012023-10-010000040533gd:U.S.GovernmentNonDepartmentofDefenseMember2023-01-012023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentForeignMilitarySalesMember2023-01-012023-10-010000040533gd:MarineSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2023-01-012023-10-010000040533gd:TechnologiesMembergd:U.S.GovernmentForeignMilitarySalesMember2023-01-012023-10-010000040533gd:U.S.GovernmentForeignMilitarySalesMember2023-01-012023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentMember2023-01-012023-10-010000040533gd:U.S.GovernmentMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:U.S.GovernmentMember2023-01-012023-10-010000040533gd:U.S.GovernmentMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:U.S.GovernmentMember2023-01-012023-10-010000040533gd:AerospaceMembergd:U.S.CommercialMember2023-01-012023-10-010000040533gd:U.S.CommercialMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:CombatSystemsMembergd:U.S.CommercialMember2023-01-012023-10-010000040533gd:U.S.CommercialMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:U.S.CommercialMember2023-01-012023-10-010000040533gd:AerospaceMembergd:NonUSGovernmentMember2023-01-012023-10-010000040533gd:NonUSGovernmentMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:NonUSGovernmentMembergd:CombatSystemsMember2023-01-012023-10-010000040533gd:NonUSGovernmentMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:NonUSGovernmentMember2023-01-012023-10-010000040533gd:AerospaceMembergd:NonU.S.CommercialMember2023-01-012023-10-010000040533gd:NonU.S.CommercialMembergd:MarineSystemsMember2023-01-012023-10-010000040533gd:NonU.S.CommercialMembergd:CombatSystemsMember2023-01-012023-10-010000040533gd:NonU.S.CommercialMembergd:TechnologiesMember2023-01-012023-10-010000040533gd:NonU.S.CommercialMember2023-01-012023-10-010000040533gd:AerospaceMembergd:U.S.GovernmentDepartmentofDefenseMember2022-01-012022-10-020000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentDepartmentofDefenseMember2022-01-012022-10-020000040533gd:U.S.GovernmentDepartmentofDefenseMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:U.S.GovernmentDepartmentofDefenseMember2022-01-012022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-01-012022-10-020000040533gd:MarineSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-01-012022-10-020000040533gd:TechnologiesMembergd:U.S.GovernmentNonDepartmentofDefenseMember2022-01-012022-10-020000040533gd:U.S.GovernmentNonDepartmentofDefenseMember2022-01-012022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentForeignMilitarySalesMember2022-01-012022-10-020000040533gd:MarineSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentForeignMilitarySalesMember2022-01-012022-10-020000040533gd:TechnologiesMembergd:U.S.GovernmentForeignMilitarySalesMember2022-01-012022-10-020000040533gd:U.S.GovernmentForeignMilitarySalesMember2022-01-012022-10-020000040533gd:AerospaceMembergd:U.S.GovernmentMember2022-01-012022-10-020000040533gd:U.S.GovernmentMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:U.S.GovernmentMember2022-01-012022-10-020000040533gd:U.S.GovernmentMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:U.S.GovernmentMember2022-01-012022-10-020000040533gd:AerospaceMembergd:U.S.CommercialMember2022-01-012022-10-020000040533gd:U.S.CommercialMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:CombatSystemsMembergd:U.S.CommercialMember2022-01-012022-10-020000040533gd:U.S.CommercialMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:U.S.CommercialMember2022-01-012022-10-020000040533gd:AerospaceMembergd:NonUSGovernmentMember2022-01-012022-10-020000040533gd:NonUSGovernmentMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:NonUSGovernmentMembergd:CombatSystemsMember2022-01-012022-10-020000040533gd:NonUSGovernmentMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:NonUSGovernmentMember2022-01-012022-10-020000040533gd:AerospaceMembergd:NonU.S.CommercialMember2022-01-012022-10-020000040533gd:NonU.S.CommercialMembergd:MarineSystemsMember2022-01-012022-10-020000040533gd:NonU.S.CommercialMembergd:CombatSystemsMember2022-01-012022-10-020000040533gd:NonU.S.CommercialMembergd:TechnologiesMember2022-01-012022-10-020000040533gd:NonU.S.CommercialMember2022-01-012022-10-020000040533gd:StockOptionsAndRestrictedStockMember2023-07-032023-10-010000040533gd:StockOptionsAndRestrictedStockMember2023-01-012023-10-010000040533gd:StockOptionsAndRestrictedStockMember2022-07-042022-10-020000040533gd:StockOptionsAndRestrictedStockMember2022-01-012022-10-020000040533gd:LargeInternationalCustomerMembergd:CombatSystemsMember2023-10-010000040533gd:LargeInternationalCustomerMembergd:CombatSystemsMember2022-12-310000040533gd:AerospaceMember2022-12-310000040533gd:MarineSystemsMember2022-12-310000040533gd:CombatSystemsMember2022-12-310000040533gd:TechnologiesMember2022-12-310000040533gd:AerospaceMember2023-10-010000040533gd:MarineSystemsMember2023-10-010000040533gd:CombatSystemsMember2023-10-010000040533gd:TechnologiesMember2023-10-010000040533gd:ContractAndProgramIntangibleAssetsMember2023-10-010000040533gd:ContractAndProgramIntangibleAssetsMember2022-12-310000040533gd:TradenamesAndTrademarksMember2023-10-010000040533gd:TradenamesAndTrademarksMember2022-12-310000040533gd:TechnologyAndSoftwareMember2023-10-010000040533gd:TechnologyAndSoftwareMember2022-12-310000040533us-gaap:OtherIntangibleAssetsMember2023-10-010000040533us-gaap:OtherIntangibleAssetsMember2022-12-310000040533gd:FixedRateNotesDueMayTwoThousandTwentyThreeMember2023-10-010000040533gd:FixedRateNotesDueMayTwoThousandTwentyThreeMember2022-12-310000040533gd:FixedRateNotesDueAugustTwoThousandTwentyThreeMember2023-10-010000040533gd:FixedRateNotesDueAugustTwoThousandTwentyThreeMember2022-12-310000040533gd:FixedRateNotesDueNovemberTwoThousandTwentyFourMember2023-10-010000040533gd:FixedRateNotesDueNovemberTwoThousandTwentyFourMember2022-12-310000040533gd:FixedRateNotesDueAprilTwoThousandTwentyFiveMember2023-10-010000040533gd:FixedRateNotesDueAprilTwoThousandTwentyFiveMember2022-12-310000040533gd:FixedRateNotesDueMayTwoThousandTwentyFiveMember2023-10-010000040533gd:FixedRateNotesDueMayTwoThousandTwentyFiveMember2022-12-310000040533gd:FixedRateNotesDueJuneTwoThousandTwentySixMember2023-10-010000040533gd:FixedRateNotesDueJuneTwoThousandTwentySixMember2022-12-310000040533gd:FixedRateNotesDueAugustTwoThousandTwentySixMember2023-10-010000040533gd:FixedRateNotesDueAugustTwoThousandTwentySixMember2022-12-310000040533gd:FixedRateNotesDueAprilTwoThousandTwentySevenMember2023-10-010000040533gd:FixedRateNotesDueAprilTwoThousandTwentySevenMember2022-12-310000040533gd:FixedRateNotesDueNovemberTwoThousandTwentySevenMember2023-10-010000040533gd:FixedRateNotesDueNovemberTwoThousandTwentySevenMember2022-12-310000040533gd:FixedRateNotesDueMayTwoThousandTwentyEightMember2023-10-010000040533gd:FixedRateNotesDueMayTwoThousandTwentyEightMember2022-12-310000040533gd:FixedRateNotesDueAprilTwoThousandThirtyMember2023-10-010000040533gd:FixedRateNotesDueAprilTwoThousandThirtyMember2022-12-310000040533gd:FixedRateNotesDueJuneTwoThousandThirtyOneMember2023-10-010000040533gd:FixedRateNotesDueJuneTwoThousandThirtyOneMember2022-12-310000040533gd:FixedRateNotesDueAprilTwoThousandFortyMember2023-10-010000040533gd:FixedRateNotesDueAprilTwoThousandFortyMember2022-12-310000040533gd:FixedRateNotesDueJuneTwoThousandFortyOneMember2023-10-010000040533gd:FixedRateNotesDueJuneTwoThousandFortyOneMember2022-12-310000040533gd:FixedRateNotesDueNovemberTwoThousandFortyTwoMember2023-10-010000040533gd:FixedRateNotesDueNovemberTwoThousandFortyTwoMember2022-12-310000040533gd:FixedRateNotesDueAprilTwoThousandFiftyMember2023-10-010000040533gd:FixedRateNotesDueAprilTwoThousandFiftyMember2022-12-310000040533us-gaap:OtherDebtSecuritiesMember2023-01-012023-10-010000040533us-gaap:OtherDebtSecuritiesMember2023-10-010000040533us-gaap:OtherDebtSecuritiesMember2022-12-3100000405332023-05-012023-05-3100000405332023-08-012023-08-310000040533us-gaap:CommercialPaperMember2023-10-010000040533gd:AerospaceMembersrt:MaximumMember2023-01-012023-10-010000040533us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-12-310000040533us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000040533us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000040533us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-01-012023-10-010000040533us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-10-010000040533us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-10-010000040533us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-10-010000040533us-gaap:AccumulatedTranslationAdjustmentMember2023-10-010000040533us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-10-010000040533us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-310000040533us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000040533us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000040533us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-01-012022-10-020000040533us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-10-020000040533us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-10-020000040533us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-10-020000040533us-gaap:AccumulatedTranslationAdjustmentMember2022-10-020000040533us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-02gd:segment0000040533gd:AerospaceMemberus-gaap:OperatingSegmentsMember2023-07-032023-10-010000040533gd:AerospaceMemberus-gaap:OperatingSegmentsMember2022-07-042022-10-020000040533us-gaap:OperatingSegmentsMembergd:MarineSystemsMember2023-07-032023-10-010000040533us-gaap:OperatingSegmentsMembergd:MarineSystemsMember2022-07-042022-10-020000040533us-gaap:OperatingSegmentsMembergd:CombatSystemsMember2023-07-032023-10-010000040533us-gaap:OperatingSegmentsMembergd:CombatSystemsMember2022-07-042022-10-020000040533us-gaap:OperatingSegmentsMembergd:TechnologiesMember2023-07-032023-10-010000040533us-gaap:OperatingSegmentsMembergd:TechnologiesMember2022-07-042022-10-020000040533us-gaap:CorporateNonSegmentMember2023-07-032023-10-010000040533us-gaap:CorporateNonSegmentMember2022-07-042022-10-020000040533gd:AerospaceMemberus-gaap:OperatingSegmentsMember2023-01-012023-10-010000040533gd:AerospaceMemberus-gaap:OperatingSegmentsMember2022-01-012022-10-020000040533us-gaap:OperatingSegmentsMembergd:MarineSystemsMember2023-01-012023-10-010000040533us-gaap:OperatingSegmentsMembergd:MarineSystemsMember2022-01-012022-10-020000040533us-gaap:OperatingSegmentsMembergd:CombatSystemsMember2023-01-012023-10-010000040533us-gaap:OperatingSegmentsMembergd:CombatSystemsMember2022-01-012022-10-020000040533us-gaap:OperatingSegmentsMembergd:TechnologiesMember2023-01-012023-10-010000040533us-gaap:OperatingSegmentsMembergd:TechnologiesMember2022-01-012022-10-020000040533us-gaap:CorporateNonSegmentMember2023-01-012023-10-010000040533us-gaap:CorporateNonSegmentMember2022-01-012022-10-020000040533us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-10-010000040533us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-10-010000040533us-gaap:FairValueInputsLevel1Member2023-10-010000040533us-gaap:FairValueInputsLevel2Member2023-10-010000040533us-gaap:FairValueInputsLevel3Member2023-10-010000040533us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-10-010000040533us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-10-010000040533us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-10-010000040533us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000040533us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000040533us-gaap:FairValueInputsLevel1Member2022-12-310000040533us-gaap:FairValueInputsLevel2Member2022-12-310000040533us-gaap:FairValueInputsLevel3Member2022-12-310000040533us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000040533us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2022-12-310000040533us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2022-12-310000040533srt:MaximumMember2023-01-012023-10-010000040533us-gaap:PensionPlansDefinedBenefitMember2023-07-032023-10-010000040533us-gaap:PensionPlansDefinedBenefitMember2022-07-042022-10-020000040533us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-07-032023-10-010000040533us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-042022-10-020000040533us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-10-010000040533us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-10-020000040533us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-10-010000040533us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-10-02


gdlogo-20200927.gif
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)
[] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 1, 2023
OR
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 1-3671
    
GENERAL DYNAMICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
13-1673581
State or other jurisdiction of incorporation or organizationI.R.S. Employer Identification No.
11011 Sunset Hills RoadReston,Virginia20190
Address of principal executive officesZip code
(703) 876-3000
Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockGDNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ü No ___
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ü No ___
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ü Accelerated filer ___ Non-accelerated filer ___
Smaller reporting company___ Emerging growth company___
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ___
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes___ No ü
272,896,860 shares of the registrant’s common stock, $1 par value per share, were outstanding on October 1, 2023.




INDEX

PART I -PAGE
Item 1 -

Item 2 -
Item 3 -
Item 4 -
PART II -
Item 1 -
Item 1A -
Item 2 -
Item 5 -
Item 6 -
    
        
2


PART I – FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)

Three Months Ended
(Dollars in millions, except per-share amounts)October 1, 2023October 2, 2022
Revenue:
Products$6,163 $5,935 
Services4,408 4,040 
10,571 9,975 
Operating costs and expenses:
Products(5,148)(4,905)
Services(3,765)(3,405)
General and administrative (G&A)(601)(567)
(9,514)(8,877)
Operating earnings1,057 1,098 
Other, net19 41 
Interest, net(85)(86)
Earnings before income tax991 1,053 
Provision for income tax, net(155)(151)
Net earnings$836 $902 
Earnings per share
Basic$3.07 $3.29 
Diluted$3.04 $3.26 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.
3


CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)

Nine Months Ended
(Dollars in millions, except per-share amounts)October 1, 2023October 2, 2022
Revenue:
Products$17,473 $16,201 
Services13,131 12,355 
30,604 28,556 
Operating costs and expenses:
Products(14,704)(13,386)
Services(11,151)(10,379)
G&A(1,792)(1,807)
(27,647)(25,572)
Operating earnings2,957 2,984 
Other, net65 120 
Interest, net(265)(279)
Earnings before income tax2,757 2,825 
Provision for income tax, net(447)(427)
Net earnings$2,310 $2,398 
Earnings per share
Basic$8.45 $8.70 
Diluted$8.39 $8.61 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.

4


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months EndedNine Months Ended
(Dollars in millions)October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Net earnings$836 $902 $2,310 $2,398 
Changes in unrealized cash flow hedges(14)(67)(33)(223)
Foreign currency translation adjustments(128)(311)63 (500)
Changes in retirement plans’ funded status169 45 526 134 
Other comprehensive income (loss), pretax27 (333)556 (589)
(Provision) benefit for income tax, net(30)8 (102)31 
Other comprehensive (loss) income, net of tax(3)(325)454 (558)
Comprehensive income$833 $577 $2,764 $1,840 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.

5


CONSOLIDATED BALANCE SHEET

(Unaudited)
(Dollars in millions)October 1, 2023December 31, 2022
ASSETS
Current assets:
Cash and equivalents$1,352 $1,242 
Accounts receivable3,132 3,008 
Unbilled receivables8,453 8,795 
Inventories8,282 6,322 
Other current assets1,560 1,696 
Total current assets22,779 21,063 
Noncurrent assets:
Property, plant and equipment, net6,013 5,900 
Intangible assets, net1,681 1,824 
Goodwill20,386 20,334 
Other assets2,666 2,464 
Total noncurrent assets30,746 30,522 
Total assets$53,525 $51,585 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt$7 $1,253 
Accounts payable3,315 3,398 
Customer advances and deposits9,351 7,436 
Other current liabilities3,289 3,254 
Total current liabilities15,962 15,341 
Noncurrent liabilities:
Long-term debt9,248 9,243 
Other liabilities8,358 8,433 
Commitments and contingencies (see Note J)
Total noncurrent liabilities17,606 17,676 
Shareholders’ equity:
Common stock482 482 
Surplus3,671 3,556 
Retained earnings38,626 37,403 
Treasury stock(21,124)(20,721)
Accumulated other comprehensive loss(1,698)(2,152)
Total shareholders’ equity19,957 18,568 
Total liabilities and shareholders equity
$53,525 $51,585 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.
6


CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

Nine Months Ended
(Dollars in millions)October 1, 2023October 2, 2022
Cash flows from operating activities – continuing operations:
Net earnings$2,310 $2,398 
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment446 420 
Amortization of intangible and finance lease right-of-use assets195 224 
Equity-based compensation expense136 140 
Deferred income tax benefit(158)(132)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable(89)259 
Unbilled receivables448 422 
Inventories(1,904)(915)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable(83)(68)
Customer advances and deposits2,171 1,598 
Other, net42 (436)
Net cash provided by operating activities 3,514 3,910 
Cash flows from investing activities:
Capital expenditures(600)(620)
Other, net(8)(378)
Net cash used by investing activities(608)(998)
Cash flows from financing activities:
Repayment of fixed-rate notes(1,250) 
Dividends paid(1,068)(1,024)
Purchases of common stock(434)(1,119)
Other, net(40)103 
Net cash used by financing activities(2,792)(2,040)
Net cash (used) provided by discontinued operations(4)21 
Net increase in cash and equivalents110 893 
Cash and equivalents at beginning of period1,242 1,603 
Cash and equivalents at end of period$1,352 $2,496 
Supplemental cash flow information:
Income tax payments, net$(493)$(767)
Interest payments$(224)$(206)
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.

7


CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (UNAUDITED)

Three Months Ended
 Common StockRetainedTreasuryAccumulated
Other 
Comprehensive
Total
Shareholders’
(Dollars in millions)ParSurplusEarningsStockLossEquity
July 2, 2023$482 $3,614 $38,154 $(21,077)$(1,695)$19,478 
Net earnings— — 836 — — 836 
Cash dividends declared— — (364)— — (364)
Equity-based awards— 57 — 9 — 66 
Shares purchased— — — (56)— (56)
Other comprehensive loss— — — — (3)(3)
October 1, 2023$482 $3,671 $38,626 $(21,124)$(1,698)$19,957 
July 3, 2022$482 $3,466 $36,218 $(20,632)$(2,153)$17,381 
Net earnings— — 902 — — 902 
Cash dividends declared— — (346)— — (346)
Equity-based awards— 45 — (6)— 39 
Other comprehensive loss— — — — (325)(325)
October 2, 2022$482 $3,511 $36,774 $(20,638)$(2,478)$17,651 
Nine Months Ended
Common StockRetainedTreasuryAccumulated
Other 
Comprehensive
Total
Shareholders’
(Dollars in millions)ParSurplusEarningsStockLossEquity
December 31, 2022$482 $3,556 $37,403 $(20,721)$(2,152)$18,568 
Net earnings— — 2,310 — — 2,310 
Cash dividends declared— — (1,087)— — (1,087)
Equity-based awards— 115 — 31 — 146 
Shares purchased— — — (434)— (434)
Other comprehensive income— — — — 454 454 
October 1, 2023$482 $3,671 $38,626 $(21,124)$(1,698)$19,957 
December 31, 2021$482 $3,278 $35,420 $(19,619)$(1,920)$17,641 
Net earnings— — 2,398 — — 2,398 
Cash dividends declared— — (1,044)— — (1,044)
Equity-based awards— 233 — 78 — 311 
Shares purchased— — — (1,097)— (1,097)
Other comprehensive loss— — — — (558)(558)
October 2, 2022$482 $3,511 $36,774 $(20,638)$(2,478)$17,651 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.
8


NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except share and per-share amounts or unless otherwise noted)

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services.
The following is a discussion of certain significant accounting policies, and further discussion is contained in other notes to these financial statements.
Basis of Consolidation and Classification. The unaudited Consolidated Financial Statements include the accounts of General Dynamics Corporation and our wholly owned and majority-owned subsidiaries. We eliminate all intercompany balances and transactions in the unaudited Consolidated Financial Statements.
Consistent with industry practice, we classify assets and liabilities related to long-term contracts as current, even though some of these amounts may not be realized within one year.
Interim Financial Statements. The unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These rules and regulations permit some of the information and footnote disclosures included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) to be condensed or omitted.
Our fiscal quarters are typically 13 weeks in length. Because our fiscal year ends on December 31, the number of days in our first and fourth quarters varies slightly from year to year. Operating results for the three- and nine-month periods ended October 1, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
The unaudited Consolidated Financial Statements contain all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations and financial condition for the three- and nine-month periods ended October 1, 2023, and October 2, 2022.
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 December 31, 2022.
Property, Plant and Equipment, Net. Property, plant and equipment (PP&E) is carried at historical cost, net of accumulated depreciation. Net PP&E consisted of the following:
October 1, 2023December 31, 2022
PP&E$12,745 $12,292 
Accumulated depreciation(6,732)(6,392)
PP&E, net$6,013 $5,900 
Accounting Standards Updates. There are accounting standards that have been issued by the Financial Accounting Standards Board (FASB) but are not yet effective. These standards are not expected to have a material impact on our results of operations, financial condition or cash flows.
9



B. REVENUE
Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account for revenue. A contract’s transaction price is allocated to each distinct performance obligation within that contract and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and is, therefore, not distinct. Some of our contracts have multiple performance obligations, most commonly due to the contract covering multiple phases of the product life cycle (development, production, maintenance and support). For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service.
Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract.
Our performance obligations are satisfied over time as work progresses or at a point in time. Revenue from products and services transferred to customers over time accounted for 79% and 80% of our revenue for the three- and nine-month periods ended October 1, 2023, and 75% and 78% of our revenue for the three- and nine-month periods ended October 2, 2022, respectively. Substantially all of our revenue in the defense segments is recognized over time because control is transferred continuously to our customers. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, overhead and, when appropriate, G&A expenses.
Revenue from goods and services transferred to customers at a point in time accounted for 21% and 20% of our revenue for the three- and nine-month periods ended October 1, 2023, and 25% and 22% of our revenue for the three- and nine-month periods ended October 2, 2022, respectively. Most of our revenue recognized at a point in time is for the manufacture of business jet aircraft in our Aerospace segment. Revenue on these contracts is recognized when the customer obtains control of the asset, which is generally upon delivery and acceptance by the customer of the fully outfitted aircraft.
On October 1, 2023, we had $95.6 billion of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 45% of our remaining performance obligations as revenue by year-end 2024, an additional 35% by year-end 2026 and the balance thereafter.
Contract Estimates. The majority of our revenue is derived from long-term contracts and programs that can span several years. Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract.
10


Contract estimates are based on various assumptions to project the outcome of future events that often span several years. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer.
The nature of our contracts gives rise to several types of variable consideration, including claims, award fees and incentive fees. We include in our contract estimates additional revenue for contract modifications or claims against the customer when we believe we have an enforceable right to the modification or claim, the amount can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual/legal basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim. We include award fees or incentive fees in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee. These estimates are based on historical award experience, anticipated performance and our best judgment at the time.
As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date on a contract is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified.
The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. The aggregate impact of adjustments in contract estimates increased our revenue, operating earnings and diluted earnings per share as follows:
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Revenue$27 $67 $179 $286 
Operating earnings11 115 98 321 
Diluted earnings per share$0.03 $0.33 $0.28 $0.91 
While no adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three- and nine-month periods ended October 1, 2023, or October 2, 2022, our Marine Systems segment’s 2023 results were affected negatively by supply chain impacts to the Virginia-class submarine schedule and cost growth on the Arleigh Burke-class (DDG-51) guided-missile destroyer program, offset partially by improved performance on the John Lewis-class (T-AO-205) fleet replenishment oiler program.
Our Virginia-class submarine contracts include provisions for various equitable adjustments, which is a process for obtaining contract modifications (see discussion above on variable consideration). We have included in our contract estimates additional revenue on the Virginia-class contract for the estimated value of these adjustments. It is reasonably possible that the actual amount sustained in this process could be less than our estimate, which could have a material unfavorable impact on our results of operations.
11


Revenue by Category. Our portfolio of products and services consists of approximately 10,000 active contracts. The following series of tables presents our revenue disaggregated by several categories.
Revenue by major products and services was as follows:
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Aircraft manufacturing$1,348 $1,712 $3,715 $4,086 
Aircraft services684 635 2,162 2,031 
Total Aerospace2,032 2,347 5,877 6,117 
Nuclear-powered submarines2,027 1,785 6,186 5,257 
Surface ships697 701 2,016 1,905 
Repair and other services278 283 851 909 
Total Marine Systems3,002 2,769 9,053 8,071 
Military vehicles1,280 1,134 3,707 3,313 
Weapons systems, armament and munitions739 480 1,650 1,314 
Engineering and other services205 174 547 502 
Total Combat Systems2,224 1,788 5,904 5,129 
Information technology (IT) services2,149 2,038 6,445 6,188 
C5ISR* solutions1,164 1,033 3,325 3,051 
Total Technologies3,313 3,071 9,770 9,239 
Total revenue$10,571 $9,975 $30,604 $28,556 
*Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance














12


Revenue by contract type was as follows:
Three Months Ended October 1, 2023AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$1,816 $1,513 $1,992 $1,428 $6,749 
Cost-reimbursement 1,489 220 1,408 3,117 
Time-and-materials216  12 477 705 
Total revenue$2,032 $3,002 $2,224 $3,313 $10,571 
Three Months Ended October 2, 2022
Fixed-price$2,127 $1,670 $1,575 $1,315 $6,687 
Cost-reimbursement 1,099 199 1,272 2,570 
Time-and-materials220  14 484 718 
Total revenue$2,347 $2,769 $1,788 $3,071 $9,975 
Nine Months Ended October 1, 2023AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$5,145 $4,687 $5,204 $4,255 $19,291 
Cost-reimbursement 4,365 651 4,118 9,134 
Time-and-materials732 1 49 1,397 2,179 
Total revenue$5,877 $9,053 $5,904 $9,770 $30,604 
Nine Months Ended October 2, 2022
Fixed-price$5,414 $4,880 $4,481 $3,939 $18,714 
Cost-reimbursement 3,191 607 3,856 7,654 
Time-and-materials703  41 1,444 2,188 
Total revenue$6,117 $8,071 $5,129 $9,239 $28,556 
Our segments operate under fixed-price, cost-reimbursement and time-and-materials contracts. Our production contracts are primarily fixed-price. Under these contracts, we agree to perform a specific scope of work for a fixed amount. Contracts for research, engineering, repair and maintenance, and other services are typically cost-reimbursement or time-and-materials. Under cost-reimbursement contracts, the customer reimburses contract costs incurred and pays a fixed, incentive or award-based fee. The amount for an incentive or award fee is determined by our ability to achieve targets set in the contract, such as cost, quality, schedule and performance. Under time-and-materials contracts, the customer pays a fixed hourly rate for direct labor and generally reimburses us for the cost of materials.
Each of these contract types presents advantages and disadvantages. Typically, we assume more risk with fixed-price contracts. However, these types of contracts offer additional profits when we complete the work for less than originally estimated. Cost-reimbursement contracts generally subject us to lower risk. Accordingly, the associated base fees are usually lower than fees earned on fixed-price contracts. Under time-and-materials contracts, our profit may vary if actual labor-hour rates vary significantly from the negotiated rates. Also, because these contracts may provide little or no fee for managing material costs, the content mix can impact profitability.
13


Revenue by customer was as follows:
Three Months Ended October 1, 2023AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
Department of Defense (DoD)$46 $2,970 $1,309 $1,914 $6,239 
Non-DoD 1 3 1,212 1,216 
Foreign military sales (FMS)14 31 143 14 202 
Total U.S. government60 3,002 1,455 3,140 7,657 
U.S. commercial1,375  53 49 1,477 
Non-U.S. government67  692 105 864 
Non-U.S. commercial530  24 19 573 
Total revenue$2,032 $3,002 $2,224 $3,313 $10,571 
Three Months Ended October 2, 2022
U.S. government:
DoD$61 $2,723 $1,029 $1,716 $5,529 
Non-DoD  2 1,182 1,184 
FMS20 45 82 7 154 
Total U.S. government81 2,768 1,113 2,905 6,867 
U.S. commercial1,418 1 62 56 1,537 
Non-U.S. government123  592 95 810 
Non-U.S. commercial725  21 15 761 
Total revenue$2,347 $2,769 $1,788 $3,071 $9,975 
Nine Months Ended October 1, 2023AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
DoD$241 $8,948 $3,184 $5,654 $18,027 
Non-DoD 2 8 3,582 3,592 
FMS53 101 435 33 622 
Total U.S. government294 9,051 3,627 9,269 22,241 
U.S. commercial3,558 1 159 151 3,869 
Non-U.S. government317 1 2,044 297 2,659 
Non-U.S. commercial1,708  74 53 1,835 
Total revenue$5,877 $9,053 $5,904 $9,770 $30,604 
Nine Months Ended October 2, 2022
U.S. government:
DoD$221 $7,948 $2,824 $5,134 $16,127 
Non-DoD 1 7 3,603 3,611 
FMS102 118 201 23 444 
Total U.S. government323 8,067 3,032 8,760 20,182 
U.S. commercial3,616 2 167 159 3,944 
Non-U.S. government422 2 1,867 290 2,581 
Non-U.S. commercial1,756  63 30 1,849 
Total revenue$6,117 $8,071 $5,129 $9,239 $28,556 
14


Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. In our defense segments, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers, particularly on our international contracts, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period. In our Aerospace segment, we generally receive deposits from customers upon contract execution and upon achievement of contractual milestones. These deposits are liquidated when revenue is recognized. Changes in the contract asset and liability balances during the nine-month period ended October 1, 2023, were not materially impacted by any other factors.
Revenue recognized for the three- and nine-month periods ended October 1, 2023, and October 2, 2022, that was included in the contract liability balance at the beginning of each year was $869 and $3.5 billion, and $908 and $3.5 billion, respectively. This revenue represented primarily the sale of business jet aircraft.

C. EARNINGS PER SHARE
We compute basic earnings per share (EPS) using net earnings for the period and the weighted average number of common shares outstanding during the period. Basic weighted average shares outstanding have decreased in 2023 and 2022 due to share repurchases. See Note K for further discussion of our share repurchases. Diluted EPS incorporates the additional shares issuable upon the assumed exercise of stock options and the release of restricted stock and restricted stock units (RSUs).
Basic and diluted weighted average shares outstanding were as follows (in thousands):
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Basic weighted average shares outstanding272,585 273,916 273,242 275,752 
Dilutive effect of stock options and restricted stock/RSUs*2,160 2,466 2,204 2,615 
Diluted weighted average shares outstanding274,745 276,382 275,446 278,367 
*    Excludes outstanding options to purchase shares of common stock that had exercise prices in excess of the average market price of our common stock during the period and, therefore, the effect of including these options would be antidilutive. These options totaled 4,464 and 4,101 for the three- and nine-month periods ended October 1, 2023, and 1,724 and 1,393 for the three- and nine-month periods ended October 2, 2022, respectively.

D. INCOME TAXES
Net Deferred Tax Liability. Our deferred tax assets and liabilities are included in other noncurrent assets and liabilities on the Consolidated Balance Sheet. Our net deferred tax liability consisted of the following:
15


October 1, 2023December 31, 2022
Deferred tax asset$45 $39 
Deferred tax liability(633)(685)
Net deferred tax liability$(588)$(646)
Tax Uncertainties. We participate in the Internal Revenue Service (IRS) Compliance Assurance Process (CAP), a real-time audit of our consolidated federal corporate income tax return. The IRS has examined our consolidated federal income tax returns through 2022.
For all periods open to examination by tax authorities, we periodically assess our liabilities and contingencies based on the latest available information. Where we believe there is more than a 50% chance that our tax position will not be sustained, we record our best estimate of the resulting tax liability, including interest, in the Consolidated Financial Statements. We include any interest or penalties incurred in connection with income taxes as part of income tax expense.
Based on all known facts and circumstances and applicable tax law, we believe the total amount of any unrecognized tax benefits on October 1, 2023, was not material to our results of operations, financial condition or cash flows. In addition, there are no tax positions for which it is reasonably possible that the unrecognized tax benefits will vary significantly over the next 12 months, producing, individually or in the aggregate, a material effect on our results of operations, financial condition or cash flows.

E. UNBILLED RECEIVABLES
Unbilled receivables represent revenue recognized on long-term contracts (contract costs and estimated profits) less associated advances and progress billings. These amounts will be billed in accordance with the agreed-upon contractual terms. Unbilled receivables consisted of the following:
October 1, 2023December 31, 2022
Unbilled revenue$40,973 $39,482 
Advances and progress billings(32,520)(30,687)
Net unbilled receivables$8,453 $8,795 
On October 1, 2023, and December 31, 2022, net unbilled receivables included $1.3 billion and $1.7 billion, respectively, associated with a large international tracked vehicle contract in our Combat Systems segment. The contract, signed in 2010, had been experiencing an unbilled receivable build-up since 2021. Based on ongoing discussions with the customer and continued successful program activity, the customer resumed payments on the contract in the first quarter of 2023.

F. INVENTORIES
The majority of our inventories are for business jet aircraft. Our inventories are stated at the lower of cost or net realizable value. Work in process represents largely labor, material and overhead costs associated with aircraft in the manufacturing process and is based primarily on the estimated average unit cost in a production lot. Substantially all of our raw materials are valued on either the average cost or the first-in, first-out method. We record pre-owned aircraft acquired in connection with the sale of new aircraft at the lower of the trade-in value or the estimated net realizable value.
16


Inventories consisted of the following:
October 1, 2023December 31, 2022
Work in process$5,714 $4,182 
Raw materials2,491 2,072 
Finished goods39 17 
Pre-owned aircraft38 51 
Total inventories$8,282 $6,322 
The increase in total inventories during the nine-month period ended October 1, 2023, was due primarily to the ramp-up in production of new Gulfstream aircraft models, including the G700 in anticipation of its certification from the U.S. Federal Aviation Administration in the fourth quarter of 2023, as well as increased production of in-service aircraft reflecting strong customer demand. Customer deposits associated with firm orders for these aircraft, which are reflected in customer advances and deposits and other noncurrent liabilities on the Consolidated Balance Sheet, have correspondingly increased.
G. GOODWILL AND INTANGIBLE ASSETS
Goodwill. The changes in the carrying amount of goodwill by reporting unit were as follows:
AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Goodwill
December 31, 2022 (a)
$3,019 $297 $2,766 $14,252 $20,334 
Acquisitions (b)   16 16 
Other (c)25  9 2 36 
October 1, 2023 (a)
$3,044 $297 $2,775 $14,270 $20,386 
(a)Goodwill in the Technologies reporting unit was net of $1.8 billion of accumulated impairment losses.
(b)Included adjustments during the purchase price allocation period.
(c)Consisted primarily of adjustments for foreign currency translation.
Intangible Assets. Intangible assets consisted of the following:
Gross Carrying Amount (a)Accumulated AmortizationNet Carrying AmountGross Carrying Amount (a)Accumulated AmortizationNet Carrying Amount
October 1, 2023December 31, 2022
Contract and program intangible assets (b)$3,246 $(1,818)$1,428 $3,247 $(1,688)$1,559 
Trade names and trademarks503 (264)239 496 (248)248 
Technology and software64 (50)14 64 (48)16 
Other intangible assets64 (64) 64 (63)1 
Total intangible assets$3,877 $(2,196)$1,681 $3,871 $(2,047)$1,824 
(a)Changes in gross carrying amounts consisted primarily of adjustments for foreign currency translation.
(b)Consisted of acquired backlog and probable follow-on work and associated customer relationships.
Amortization expense is included in operating costs and expenses in the Consolidated Statement of Earnings. Amortization expense for intangible assets was $47 and $147 for the three- and nine-month
17


periods ended October 1, 2023, and $53 and $152 for the three- and nine-month periods ended October 2, 2022, respectively.

H. DEBT
Debt consisted of the following:
October 1, 2023December 31, 2022
Fixed-rate notes due:Interest rate:
May 20233.375%$ $750 
August 20231.875% 500 
November 20242.375%500 500 
April 20253.250%750 750 
May 20253.500%750 750 
June 20261.150%500 500 
August 20262.125%500 500 
April 20273.500%750 750 
November 20272.625%500 500 
May 20283.750%1,000 1,000 
April 20303.625%1,000 1,000 
June 20312.250%500 500 
April 20404.250%750 750 
June 20412.850%500 500 
November 20423.600%500 500 
April 20504.250%750 750 
OtherVarious87 90 
Total debt principal9,337 10,590 
Less unamortized debt issuance costs and discounts82 94 
Total debt9,255 10,496 
Less current portion7 1,253 
Long-term debt$9,248 $9,243 
In May and August of 2023, we repaid fixed-rate notes of $750 and $500, respectively, at their respective scheduled maturities using cash on hand. On October 1, 2023, we had no commercial paper outstanding, but we maintain the ability to access the commercial paper market in the future. Separately, we have a $4 billion committed bank credit facility for general corporate purposes and working capital needs and to support our commercial paper issuances. This credit facility expires in March 2027. We may renew or replace this credit facility in whole or in part at or prior to its expiration date. We also have an effective shelf registration on file with the SEC that allows us to access the debt markets.
Our financing arrangements contain a number of customary covenants and restrictions. We were in compliance with all covenants and restrictions on October 1, 2023.

18


I. OTHER LIABILITIES
A summary of significant other liabilities by balance sheet caption follows:
October 1, 2023December 31, 2022
Salaries and wages$1,118 $1,116 
Dividends payable362 347 
Lease liabilities312 288 
Workers’ compensation245 215 
Other1,252 1,288 
Total other current liabilities$3,289 $3,254 
Customer deposits on commercial contracts$2,545 $2,175 
Retirement benefits2,294 2,453 
Lease liabilities1,430 1,330 
Other2,089 2,475 
Total other liabilities$8,358 $8,433 

J. COMMITMENTS AND CONTINGENCIES
Litigation
In 2015, Electric Boat Corporation, a subsidiary of General Dynamics Corporation, received a civil investigative demand from the U.S. Department of Justice regarding an investigation of potential False Claims Act violations relating to alleged failures of Electric Boat’s quality system with respect to allegedly non-conforming parts purchased from a supplier. In 2016, Electric Boat was made aware that it is a defendant in a lawsuit related to this matter which had been filed under seal in U.S. district court. Also in 2016, the Suspending and Debarring Official for the U.S. Department of the Navy issued a show cause letter to Electric Boat requesting that Electric Boat respond to the official’s concerns regarding Electric Boat’s oversight and management with respect to its quality assurance systems for subcontractors and suppliers. Electric Boat responded to the show cause letter and engaged in discussions with the U.S. government.
In the third quarter of 2019, the Department of Justice declined to intervene in the qui tam action, noting that its investigation continues, and the court unsealed the relator’s complaint. In the fourth quarter of 2020, the relator filed a second amended complaint. In the third quarter of 2021, the court dismissed the relator’s complaint with prejudice. The relator appealed the dismissal of the complaint to the United States Court of Appeals. In the third quarter of 2023, the Court of Appeals affirmed dismissal of the relator’s complaint with prejudice. The relator thereafter filed a petition for rehearing with the Court of Appeals. Given the current status of these matters, we are unable to express a view regarding the ultimate outcome or, if the outcome is adverse, to estimate an amount or range of reasonably possible loss. Depending on the outcome of these matters, there could be a material impact on our results of operations, financial condition and cash flows.
Additionally, various other claims and legal proceedings incidental to the normal course of business are pending or threatened against us. These other matters relate to such issues as government investigations and claims, the protection of the environment, asbestos-related claims and employee-related matters. The nature of litigation is such that we cannot predict the outcome of these other matters. However, based on information currently available, we believe any potential liabilities in these
19


other proceedings, individually or in the aggregate, will not have a material impact on our results of operations, financial condition or cash flows.
Environmental
We are subject to and affected by a variety of federal, state, local and foreign environmental laws and regulations. We are directly or indirectly involved in environmental investigations or remediation at some of our current and former facilities and third-party sites that we do not own but where we have been designated a potentially responsible party (PRP) by the U.S. Environmental Protection Agency or a state environmental agency. Based on historical experience, we expect that a significant percentage of the total remediation and compliance costs associated with these facilities will continue to be allowable contract costs and, therefore, recoverable under U.S. government contracts.
As required, we provide financial assurance for certain sites undergoing or subject to investigation or remediation. We accrue environmental costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. Where applicable, we seek insurance recovery for costs related to environmental liabilities. We do not record insurance recoveries before collection is considered probable. Based on all known facts and analyses, we do not believe that our liability at any individual site, or in the aggregate, arising from such environmental conditions will be material to our results of operations, financial condition or cash flows. We also do not believe that the range of reasonably possible additional loss beyond what has been recorded would be material to our results of operations, financial condition or cash flows.
Other
Government Contracts. As a government contractor, we are subject to U.S. government audits and investigations relating to our operations, including claims for fines, penalties, and compensatory and treble damages. We believe the outcome of such ongoing government audits and investigations will not have a material impact on our results of operations, financial condition or cash flows.
In the performance of our contracts, we routinely request contract modifications that require additional funding from the customer. Most often, these requests are due to customer-directed changes in the scope of work. While we are entitled to recovery of these costs under our contracts, the administrative process with our customer may be protracted. Based on the circumstances, we periodically file requests for equitable adjustment (REAs) that are sometimes converted into claims. In some cases, these requests are disputed by our customer. We believe our outstanding modifications, REAs and other claims will be resolved without material impact to our results of operations, financial condition or cash flows.
Letters of Credit and Guarantees. In the ordinary course of business, we have entered into letters of credit, bank guarantees, surety bonds and other similar arrangements with financial institutions and insurance carriers totaling approximately $1.3 billion on October 1, 2023. In addition, from time to time and in the ordinary course of business, we contractually guarantee the payment or performance of our subsidiaries arising under certain contracts.
Aircraft Trade-ins. In connection with orders for new aircraft in contract backlog, some Gulfstream customers hold options to trade in aircraft as partial consideration in their new-aircraft transaction. These trade-in commitments are generally structured to establish the fair market value of the trade-in aircraft at a date generally 45 or fewer days preceding delivery of the new aircraft to the customer. At that time, the customer is required to either exercise the option or allow its expiration. Other trade-in commitments are structured to guarantee a predetermined trade-in value. These commitments present more risk in the event of an adverse change in market conditions. In either case, any excess of the preestablished trade-in
20


price above the fair market value at the time the new aircraft is delivered is treated as a reduction of revenue in the new-aircraft sales transaction. As of October 1, 2023, the estimated change in fair market values from the date of the commitments was not material.
Product Warranties. We provide warranties to our customers associated with certain product sales. We record estimated warranty costs in the period in which the related products are delivered. The warranty liability recorded at each balance sheet date is based generally on the number of months of warranty coverage remaining for the products delivered and the average historical monthly warranty payments. Warranty obligations incurred in connection with long-term production contracts are accounted for within the contract estimates at completion. Our other warranty obligations, primarily for business jet aircraft, are included in other current and noncurrent liabilities on the Consolidated Balance Sheet.
The changes in the carrying amount of warranty liabilities for the nine-month periods ended October 1, 2023, and October 2, 2022, were as follows:
Nine Months EndedOctober 1, 2023October 2, 2022
Beginning balance$603 $641 
Warranty expense57 67 
Payments(74)(84)
Adjustments5 (21)
Ending balance$591 $603 

K. SHAREHOLDERS EQUITY
Share Repurchases. Our board of directors (Board), from time to time, authorizes management to repurchase outstanding shares of our common stock on the open market. In the nine-month period ended October 1, 2023, we repurchased 2 million of our outstanding shares for $434. On October 1, 2023, 4.7 million shares remained authorized by our Board for repurchase, representing 1.7% of our total shares outstanding. We repurchased 4.9 million shares for $1.1 billion in the nine-month period ended October 2, 2022.
Dividends per Share. Our Board declared dividends per share of $1.32 and $3.96 for the three- and nine-month periods ended October 1, 2023, and $1.26 and $3.78 for the three- and nine-month periods ended October 2, 2022, respectively. We paid cash dividends of $363 and $1.1 billion for the three- and nine-month periods ended October 1, 2023, and $345 and $1 billion for the three- and nine-month periods ended October 2, 2022, respectively.
21


Accumulated Other Comprehensive Loss. The changes, pretax and net of tax, in each component of accumulated other comprehensive loss (AOCL) consisted of the following:
<
Changes in Unrealized Cash Flow HedgesForeign Currency Translation AdjustmentsChanges in Retirement Plans’ Funded StatusAOCL
December 31, 2022$4 $260 $(2,416)$(2,152)
Other comprehensive income, pretax(33)63