SEC Info - General Dynamics Corp - ‘11-K’ for 12/31/19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________

FORM 11-K

_____________________

FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)



ý	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019



o	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-3671



A.	Full title of the plan and the address of the plan, if different from that of the issuer named below:

GENERAL DYNAMICS CORPORATION

401(K) PLAN 6.0



B.	Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

GENERAL DYNAMICS CORPORATION

11011 Sunset Hills Road

Reston, Virginia 20190

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Table of Contents



	Page(s)
Report of Independent Registered Public Accounting Firm	1
Statements of Net Assets Available for Benefits as of December 31, 2019 and 2018	2
Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2019	3
Notes to Financial Statements	4 - 14
Schedule H, Line 4(a) – Schedule of Delinquent Participant Contributions for the year ended December 31, 2019	15
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year) as of December 31, 2019	16

Report of Independent Registered Public Accounting Firm

To the Plan Participants and Plan Administrator

General Dynamics Corporation 401(k) Plan 6.0:

Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits of the General Dynamics Corporation 401(k) Plan 6.0 (the Plan) as of December 31, 2019 and 2018, the related statement of changes in net assets available for benefits for the year ended December 31, 2019, and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2019 and 2018, and the changes in net assets available for benefits for the year ended December 31, 2019, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Accompanying Supplemental Information

The Schedule H, Line 4(a) - Schedule of Delinquent Participant Contributions for the year ended December 31, 2019 and Schedule H, Line 4(i) - Schedule of Assets (Held at End of Year) as of December 31, 2019 have been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ KPMG LLP

We have served as the Plan’s auditor since 2016.

McLean, Virginia

June 18, 2020

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Statements of Net Assets Available for Benefits

December 31, 2019 and 2018



	2019		2018
Assets:
Investments in Master Trust at fair value	$	6,606,103,746	$	1,560,987,843
Investments in Master Trust at contract value	918,449,589		278,350,030
Notes receivable from participants	142,648,059		63,270,602
Contributions receivable – employer	10,017,925		2,211,720
Total assets	7,677,219,319		1,904,820,195
Liabilities:
Accrued administrative expenses	287,558		183,606
Net assets available for benefits	$	7,676,931,761	$	1,904,636,589

See accompanying notes to financial statements.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Statement of Changes in Net Assets Available for Benefits

Year ended December 31, 2019




Additions to net assets attributed to:
Participation in net income of Master Trust	$	1,147,552,234
Interest income from notes receivable from participants	6,673,778
Contributions:
Rollovers	27,457,281
Participant	297,232,559
Employer	194,325,360
Total contributions	519,015,200
Total additions	1,673,241,212
Deductions from net assets attributed to:
Benefits paid to participants	541,399,152
Administrative expenses	3,559,138
Total deductions	544,958,290
Net increase prior to transfers	1,128,282,922
Net transfers within the Master Trust	4,637,260,950
Net transfers from other plans	6,751,300
Net increase	5,772,295,172
Net assets available for benefits:
Beginning of year	1,904,636,589
End of year	$	7,676,931,761

See accompanying notes to financial statements.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018


(1)	Plan Description

The following description of the General Dynamics Corporation 401(k) Plan 6.0 (the Plan) provides only general information. Participants should refer to the Plan Document for a more complete description of the Plan’s provisions.


(a)	General

The Plan is a defined contribution plan covering eligible employees of General Dynamics Corporation (the Company, Employer, Plan Administrator, or the Plan Sponsor) and its subsidiaries. Employees subject to a collective bargaining agreement are not eligible to participate in this Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan is one of six plans that participate in the General Dynamics Corporation 401(k) Plan Master Trust Agreement (Master Trust).


(b)	Plan Administration

Fidelity Management Trust Company (Fidelity) holds the Plan’s assets as the Plan’s trustee and Fidelity Workplace Services, LLC is the Plan’s recordkeeper.


(c)	Contributions

Participants are eligible to participate in the Plan upon hire. As described in the supplements to the Plan Document, participants may contribute from 1% up to 50% of eligible compensation as pre-tax deferrals, Roth deferrals or after-tax contributions, up to the statutory limits defined by the Internal Revenue Code (IRC). The Plan has an automatic enrollment feature under which new employees who do not make a contrary election as described in the Plan document will automatically be enrolled in the Plan. The Plan's automatic enrollment deferral rate is 6%. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified plans (rollovers). The Plan has an Employer matching contribution of 100% of the first 6% of eligible compensation contributed to the Plan. The Plan is intended to be a safe harbor plan as defined in the IRC.

Effective January 1, 2019, participants at certain business units may be eligible to receive an Employer discretionary contribution based on a percentage of their eligible compensation or other applicable formula. At December 31, 2019 $2,482,984 of such discretionary contributions were included as a receivable in the Plan’s financial statements.


(d)	Participant Accounts

Each participant directs his or her contributions to be invested in various funds. Changes to investment elections can be made according to rules set by the Company in the Plan Document. Each participant’s account is credited with the participant’s contribution and allocations of (a) the Employer’s contribution and (b) Plan earnings and losses, less an allocation of administrative expenses. The benefit to which a participant is entitled is the vested balance of his or her account.

The assets of the Plan that are invested in the General Dynamics Corporation Common Stock are in a separate fund (the GD Stock Fund) which constitutes an Employee Stock Ownership Plan (an ESOP) under certain sections of the IRC, as amended. Participants are given the right to take a distribution of regularly scheduled dividends of the General Dynamics Corporation Common Stock held in the GD Stock Fund in cash or leave the funds in the Plan to be invested in General Dynamics Corporation Common Stock, as provided by the Plan.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018


(e)	Vesting

Participants’ contributions and safe harbor Employer contributions and actual earnings thereon are always 100% vested. Vesting in any Employer matching or discretionary contributions varies by business unit, but does not exceed six years.


(f)	Notes Receivable from Participants

The Plan permits active participants to borrow the lesser of $50,000 less the highest outstanding note receivable (or participant loans or loan) balance during the last 12 months, or 50% of the vested amount in their accounts (subject to limits defined in the Plan Document and by the IRC). Loans are secured by the remaining balance in the participants’ accounts. Participants are required to repay the loan by regular payroll deductions over a period of up to five years. The Plan also offers primary residence loans (with terms up to 20 years). Loans are issued at the U.S. prime rate of interest plus 1%. Participant loans are recorded at amortized cost, which is the remaining unpaid principal balance plus any accrued but unpaid interest. Delinquent loans are reclassified as distributions based upon the terms of the Plan Document.


(g)	Payment of Benefits

Participants are eligible to receive benefit payments upon retirement, death, disability or termination of employment. On termination of service, a participant (or designated beneficiary) may elect to (a) receive a lump‑sum amount equal to the value of the participant’s vested interest in his or her account, (b) roll over the value of the participant’s vested interest in his or her account into an eligible retirement plan, (c) receive annual or monthly fixed-amount installment payments, or (d) receive a partial distribution of his or her total vested account balance. Active participants may be eligible to receive in‑service or hardship withdrawals, or withdrawals allowed under the IRC for participants that reach age 59½, subject to the provisions in the Plan Document.


(h)	Forfeited Accounts

Forfeitures are used to reduce Employer contributions. At December 31, 2019, participants’ forfeited nonvested accounts were not significant. Forfeitures used during 2019 to reduce Employer contributions were not significant.


(i)	Net Transfers Within Master Trust

Effective January 1, 2019, employees of General Dynamics Mission Systems, General Dynamics SATCOM Technologies, and General Dynamics Global Imaging Technologies, formerly eligible for General Dynamics Corporation 401(k) Plan 4.5 (Plan 4.5), became eligible for the Plan. The account balances and loans of these participants were transferred to the Plan in the amount of $3,027,809,986 and $34,720,323, respectively.

Effective January 1, 2019, employees of Bath Iron Works Corporation, formerly eligible for General Dynamics Corporation 401(k) Plan 5.0, became eligible for the Plan. The account balances and loans of these participants were transferred into the Plan in the amount of $310,361,248 and $6,437,819, respectively.

Effective April 1, 2019, certain employees of Gulfstream Aerospace, formerly eligible for Plan 4.5, became eligible for the Plan. The account balances and loans of these participants were transferred to the Plan in the amount of $1,218,970,266 and $33,073,305, respectively.

The remaining net transfers to and from plans within the Master Trust are a result of individual participants transferring jobs which causes them to become a participant in a different plan that also participates in the Master Trust.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018


(j)	Net Transfers from Other Plans

Effective January 1, 2019, the GPS Source 401(k) Plan and the Janteq, Inc. 401(k) Profit Sharing Plan merged into the Plan. The account balances and loans of the participants in these plans were transferred to the Plan in the amount of $6,751,300.


(k)	Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, liquidity, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits.


(2)	Summary of Significant Accounting Policies


(a)	Basis of Accounting

The accompanying financial statements are prepared on the accrual basis of accounting.


(b)	New Accounting Pronouncement

In February 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2017-06, Employee Benefit Plan Master Trust Reporting (ASU 2017-06). ASU 2017-06 requires the disclosure of the Plan's interest in the Master Trust on the face of the financial statements as a single line item. ASU 2017-06 further requires disclosure of the Plan's divided interest in the Master Trust's other assets and liabilities and the balances related to the Plan as well as disclosure of the Master Trust's investments by general type and by dollar amount of the Plan's interest in each type. ASU 2017-06 is effective for the fiscal years beginning after December 15, 2018, with early adoption permitted. The standard requires the use of the retrospective transition method. Plan management adopted ASU 2017-06 effective January 1, 2019. The adoption of this standard did not impact the Plan’s Statements of Net Assets Available for Benefits or Statement of Changes in Net Assets Available for Benefits. See Note 4 for the impact of the adoption of the standard on the disclosures.


(c)	Investment Valuation and Income Recognition

The Plan’s investments other than fully benefit-responsive investment contracts (referred to herein as guaranteed investment contracts or GICs) are reported at fair value. Fair value is the price that would be received by the Plan for an asset or paid by the Plan to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date in the Plan’s principal or most advantageous market for the asset or liability. Contract value is the relevant measure for the Plan’s GICs, because contract value is the amount Plan participants generally receive when executing transactions under the terms of the contract and Plan provisions.

Purchases and sales of investments are recorded on the trade date. Participation in net income of Master Trust and investment income consists of dividend income, interest income, and net appreciation (depreciation) in the fair value of investments. Dividends are recognized on the ex‑dividend date, the date on which an entity or an individual must own the stock to receive the pending dividend. Interest income is recorded on an accrual basis. Net appreciation (depreciation) includes the gains and losses on investments bought and sold as well as held during the year.


(d)	Investment Concentrations

Through its investment in the Master Trust, the Plan holds shares of General Dynamics Corporation Common Stock representing approximately 17% and 23% of its investments as of December 31, 2019 and 2018, respectively.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018


(e)	Payment of Benefits

Benefits are recorded when paid.


(f)	Use of Estimates

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP) requires Plan management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein. Actual results could differ from those estimates.


(g)	Administrative Expenses

The Master Trust generally pays the administrative expenses of the Plan. The Plan Document provides that the Company may reimburse the Plan for administrative expenses. Administrative expenses reimbursed by the Company were not material.

Company employees perform certain administrative functions that are not reimbursed by the Master Trust. The Plan Document provides that the Company is entitled to reimbursement for these and certain other costs incurred on behalf of the Plan. The Company did not seek reimbursement for any costs in 2019.

Administrative expenses included in the Statement of Changes in Net Assets Available for Benefits are expenses that have been specifically identified as expenses of this Plan. Fees related to the administration of notes receivable from participants are charged directly to the participant’s account and are included in administrative expenses.

(3)Tax Status

The Internal Revenue Service (IRS) issued a favorable determination letter on December 13, 2017, indicating that the Plan is a qualified plan under Section 401(a) of the IRC. The Plan is exempt from federal income tax under Section 501(a) of the IRC. Although the Plan has been amended subsequent to the date of the latest determination from the IRS, the Plan Sponsor and the Plan’s counsel believe the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC.

U.S. GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2019 and 2018, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions. There are currently no audits in progress for any tax periods.


(4)	Investments


(a)	General

The Plan’s investments are held by the Master Trust, which was established for the investment of the Plan’s assets and the assets of the General Dynamics Corporation 401(k) Plan 3.0, the General Dynamics Corporation 401(k) Plan 3.5, the General Dynamics Corporation 401(k) Plan 4.5, the General Dynamics Corporation 401(k) Plan 5.0, and the General Dynamics Corporation 401(k) Plan for Represented Employees, collectively the Plans. Net assets and participation in the net income (loss) of the Master Trust are allocated to the Plans according to each Plan’s participants’ investment elections and earnings and losses thereon.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018

The following table presents the net assets of the Master Trust and the Plan's interest in the Master Trust as of December 31, 2019:



	Master Trust Balances		Plan's Interest in Master Trust Balances
Investments, at fair value
Participant-Directed brokerage accounts	$	420,050,867	$	252,727,549
General Dynamics Corporation common stock	3,506,550,180		1,296,027,073
Investments in other equity securities	1,377,325,785		755,371,508
Registered investment companies	513,741,569		275,413,190
Interest bearing cash	46,700,285		18,424,586
Overnight deposit accounts	29,893,267		16,395,745
Collective trusts	7,582,959,189		3,915,650,871
Fixed-income securities:
US government and municipal	60,366,634		33,516,901
Mortgage and asset-backed	72,624,848		40,322,938
Foreign government	10,585,238		5,877,161
Corporate debt	2,211,689		1,227,979
Total investments, at fair value	13,623,009,551		6,610,955,501
Investments, at contract value
Synthetic GICs	2,296,691,061		918,449,589
Non-interest bearing accounts	1,499,800		820,325
Total assets	15,921,200,412		7,530,225,415

Pending trades payable and accrued expenses	10,168,096		5,672,080
Total liabilities	10,168,096		5,672,080
Net assets of Master Trust	$	15,911,032,316	$	7,524,553,335

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018

The following table presents the net assets of the Master Trust and the Plan's interest in the Master Trust as of December 31, 2018:



	Master Trust Balances		Plan's Interest in Master Trust Balances
Investments, at fair value
Participant-Directed brokerage accounts	$	320,228,424	$	59,081,624
General Dynamics Corporation common stock	3,252,198,600		419,091,771
Investments in other equity securities	1,050,843,937		152,889,424
Registered investment companies	360,739,470		47,063,200
Interest bearing cash	64,750,625		7,960,954
Overnight deposit accounts	27,538,441		3,724,209
Collective trusts	6,204,537,673		863,786,710
Fixed-income securities:
US government and municipal	49,025,194		3,653,362
Mortgage and asset-backed	44,583,492		3,322,365
Foreign government	5,268,631		392,619
Corporate debt	3,504,841		261,181
Total investments, at fair value	11,383,219,328		1,561,227,419
Investments, at contract value
Synthetic GICs	2,341,450,707		278,350,030
Non-interest bearing accounts	237,273		34,523
Total assets	13,724,907,308		1,839,611,972

Pending trades payable and accrued expenses	2,241,838		274,099
Total liabilities	2,241,838		274,099
Net assets of Master Trust	$	13,722,665,470	$	1,839,337,873

The following table presents the changes in net assets of the Master Trust for the year ended December 31, 2019:



Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments	$	2,350,233,860
Interest and dividends	195,812,085
Net investment income	2,546,045,945

Deductions from net assets attributed to:
Net transfers	357,679,099
Total deductions	357,679,099
Net increase	2,188,366,846

Net assets:
Beginning of year	13,722,665,470
End of year	$	15,911,032,316

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018

The net appreciation for the Master Trust is net of investment manager fees.


(b)	Fully Benefit-Responsive Investment Contracts

The Master Trust holds two fully benefit-responsive synthetic investment contracts that are reported at contract value, which is generally the amount a participant would receive if he or she would initiate a withdrawal or transfer from the contract under the provisions of the Plan. Contract value represents contributions made to the contract, plus earnings, less participant withdrawals and administrative expenses. Each synthetic investment contract consists of a wrapper with Metropolitan Life Insurance Company (MetLife) (the Issuer) and underlying investments primarily in debt securities. The wrapper contracts provide participants with a stable, fixed-rate of return on investments, and protection of principal from changes in market interest rates. MetLife’s financial strength rating from Standard & Poor’s at December 31, 2019 was AA‑. The crediting interest rate resets semi-annually and is based on an agreed‑upon formula with the Issuer, but cannot be less than zero. The key factors that influence future interest crediting rates could include the following: the level of market interest rates; the difference between the fully benefit-responsive investment contracts' book and market values; the amount and timing of Participant contributions; transfers and withdrawals into/out of the fully benefit-responsive investment contracts; and the duration of the underlying investments backing the fully benefit-responsive investment contracts. Participants will receive the principal and accrued interest upon withdrawal for events such as transfers to other Plan investment options or payments for retirement, termination of employment, disability, death and in‑service withdrawals as permitted by the Plan.

The investment contracts specify certain conditions under which distributions from each contract would be payable at amounts below contract value. Such circumstances include Plan termination, Plan merger, premature contract termination initiated by the Company, and certain other Company‑initiated events that result in distributions exceeding a set amount. The contracts limit the circumstances under which the Issuer may terminate the contract. Examples of circumstances which would allow the Issuer to terminate the contract include the Plan’s loss of its qualified status, uncured material breaches of responsibilities, or material and adverse changes to the provisions of the Plan. If one of these events were to occur, the Issuer could terminate the contract at an amount less than contract value. Currently, Plan management believes that the occurrence of an event that would cause the Plan to transact contract distributions at less than contract value is not probable.


(c)	Reclassifications

During 2019, Plan management re-evaluated the fair value measurement inputs used for the assets of the Master Trust. Plan management determined that measurement inputs for certain investment types were similar enough to be included within the same category. Also, certain prior year Master Trust receivable amounts were reclassified to conform to current year presentation. These reclassifications did not affect any recorded values or fair value measurement levels.


(d)	Fair Value Measurements

The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:


•	Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.


•	Level 2 - Inputs to the valuation methodology include:


•	Quoted prices for similar assets or liabilities in active markets;

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018


•	Quoted prices for identical or similar assets or liabilities in inactive markets;


•	Inputs other than quoted prices that are observable for the assets or liabilities;


•	Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.


•	Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019 and 2018:

General Dynamics Corporation Common Stock, Investments in Other Equity Securities, Interest Bearing Cash and Overnight Deposit Accounts: Valued at the closing price reported on the active market in which the individual securities are traded (Level 1).

Registered Investment Companies: Valued at the closing price reported on the active market in which the individual securities are traded (Level 1). The fair values of private mutual funds are determined using the net asset value as provided by the fund managers (Level 2). Investments in the private mutual funds are redeemable daily at net asset value and there are no restrictions on redemptions.

Participant-Directed Brokerage Accounts: Accounts primarily consist of interest-bearing cash, mutual funds, common stocks, and units of exchange traded funds that are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1).

Corporate Debt and Mortgage and Asset-Backed Securities: Valued at their most recent bid prices (sales prices if their principal market is an exchange) in the principal market in which such securities are traded, as determined by recognized dealers in such securities, or are valued on the basis of information provided by a pricing service (Level 2).

Government Securities: These securities are valued based on institutional bid evaluations (Level 2).

Units of Collective Trusts: The fair values of these private investment securities are determined using the net asset value as provided by the fund managers (Level 2). Investments in collective trusts are redeemable daily at net asset value and there are no restrictions on redemptions.

The following table sets forth by level, within the fair value hierarchy, the Master Trust’s assets at fair value as of December 31, 2019 and 2018:

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018



	Fair value		Quoted price in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
December 31, 2019:
Participant-Directed brokerage accounts	$	420,050,867	$	420,050,867	$	—	$	—
General Dynamics
Corporation common stock	3,506,550,180		3,506,550,180		—		—
Investments in other equity securities	1,377,325,785		1,377,325,785		—		—
Registered investment companies	513,741,569		316,784,419		196,957,150		—
Interest bearing cash	46,700,285		46,700,285		—		—
Overnight deposit accounts	29,893,267		29,893,267		—		—
Collective trusts	7,582,959,189		—		7,582,959,189		—
Fixed-income securities:
US government and municipal	60,366,634		—		60,366,634		—
Mortgage and asset-backed	72,624,848		—		72,624,848		—
Foreign government	10,585,238		—		10,585,238		—
Corporate debt	2,211,689		—		2,211,689		—
Total investments, at fair value	$	13,623,009,551	$	5,697,304,803	$	7,925,704,748	$	—



	Fair value		Quoted price in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
December 31, 2018:
Participant-Directed brokerage accounts	$	320,228,424	$	320,228,424	$	—	$	—
General Dynamics
Corporation common stock	3,252,198,600		3,252,198,600		—		—
Investments in other equity securities	1,050,843,937		1,050,843,937		—		—
Registered investment companies	360,739,470		243,750,383		116,989,087		—
Interest bearing cash	64,750,625		64,750,625		—		—
Overnight deposit accounts	27,538,441		27,538,441		—		—
Collective trusts	6,204,537,673		—		6,204,537,673		—
Fixed-income securities:
US government and municipal	49,025,194		—		49,025,194		—
Mortgage and asset-backed	44,583,492		—		44,583,492		—
Foreign government	5,268,631		—		5,268,631		—
Corporate debt	3,504,841		—		3,504,841		—
Total investments, at fair value	$	11,383,219,328	$	4,959,310,410	$	6,423,908,918	$	—


(5)	Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event the Plan is terminated, each participant will automatically become vested in his or her unvested Employer contributions.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018

(6)Party‑in‑Interest Transactions

The Plan may, at the discretion of the Plan’s participants or via the Employer matching contribution, invest through the Master Trust an unlimited amount of its assets in the Company’s common stock. The Master Trust held 19,883,546 and 20,686,608 shares of the Company’s common stock as of December 31, 2019 and 2018, respectively. Dividends earned by the Master Trust on the Company’s common stock were $81,622,381 for the year ended December 31, 2019.

The Plan also invests, through the Master Trust, in investment funds managed by the trustee or affiliates of the trustee of the Plan or by one of its investment managers. The Northern Trust Company provides certain investment management and consulting services to the Plan. The Plan also invests, through the Master Trust, in investment funds managed by The Northern Trust Company, or its affiliates. These funds are considered party-in-interest investments. In addition, the Plan invests, through the Master Trust, in common stocks and fixed-income securities of certain of its service providers which are also considered party-in-interest investments. These transactions qualify as exempt party-in-interest transactions. Fees paid to other service providers also qualify as exempt party-in-interest transactions.

Notes receivable from participants are also considered exempt party-in-interest transactions.

(7)Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets available for benefits at December 31, 2019 and 2018, as reported in the financial statements to the Form 5500:



	2019			2018
Net assets available for benefits as reported in the financial statements	$	7,676,931,761		$	1,904,636,589
Delinquent notes receivable in financial statements recorded as deemed distributions in the Form 5500	(2,745,957		)	(507,536		)
Net assets available for benefits as reported in the Form 5500	$	7,674,185,804		$	1,904,129,053

The following is a reconciliation of the change in net assets available for benefits for the year ended December 31, 2019, as reported in the financial statements to the net increase in net assets reported in the Form 5500:



Net increase in net assets per financial statements	$	5,772,295,172
Deemed distributions of participant loans reported in the 2019 Form 5500	(2,745,957		)
Deemed distributions of participant loans reported in the 2018 Form 5500	507,536
Net increase in net assets per the Form 5500	$	5,770,056,751


(8)	Subsequent Events

Plan management has evaluated subsequent events for recognition and disclosure through June 18, 2020. The following item was noted:

In late 2019, an outbreak of Coronavirus (COVID-19) surfaced in Wuhan, China with the resulting pandemic causing economic and social disruption. The extent of the adverse impact of the COVID-19 fallout on the Plan's participants' account balances and the amounts reported in the 2019 statement of net assets available for benefits resulting from market impacts cannot be predicted at this time.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Notes to Financial Statements

December 31, 2019 and 2018

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress. Among other things, the CARES Act provides immediate and temporary relief for retirement plan participants with respect to distributions and participant loans. The provisions of the CARES Act may be effective and operationalized immediately, prior to amending the plan document. Plan management has adopted certain relief provisions included in the CARES Act and continues to evaluate other provisions.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Schedule H, Line 4(a) – Schedule of Delinquent Participant Contributions

Year ended December 31, 2019



Participant contributions transferred late to plan	Total that constitute nonexempt prohibited transactions: $378						Total fully corrected under VFCP and PTE 2002-51
Check here if late participant loan repayments are included [x]	Contributions not corrected		Contributions corrected outside VFCP		Contributions pending correction in VFCP		Total fully corrected under VFCP and PTE 2002-51
2019	$	—	$	378	$	—	$	—

See accompanying Report of Independent Registered Public Accounting Firm.

GENERAL DYNAMICS CORPORATION

401(k) PLAN 6.0

Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)

December 31, 2019




(a)	(b) Identity of issuer, borrower, lessor or similar party	(c) Description of investment including maturity date, rate of interest, collateral par or maturity date	(d) Cost	(e) Current value
*	Participant Loans	Interest Rates (3.23-8.25%)	#	$	139,902,102



*	Party-in-interest
#	Cost information omitted for participant directed investments

See accompanying Report of Independent Registered Public Accounting Firm.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.



		GENERAL DYNAMICS CORPORATION

		As Plan Administrator of the General Dynamics Corporation 401(k) Plan 6.0

by		/s/ *John M. Ohrnberger*
		John M. Ohrnberger Staff Vice President, Executive Compensation & Benefits

Dated: June 18, 2020

This ‘11-K’ Filing	Date	Other Filings

Filed on:	6/18/20	11-K
	3/27/20
For Period end:	12/31/19	10-K, 11-K
	4/1/19
	1/1/19	3
	12/31/18	10-K, 11-K, SD
	12/15/18
	12/13/17
		List all Filings

General Dynamics Corp – ‘11-K’ for 12/31/19

On: Thursday, 6/18/20, at 11:01am ET · For: 12/31/19 · Accession #: 40533-20-51 · File #: 1-03671

Previous ‘11-K’: ‘11-K’ on 6/18/20 for 12/31/19 · Next: ‘11-K’ on 6/17/21 for 12/31/20 · Latest: ‘11-K’ on 6/20/23 for 12/31/22 · 1 Reference: By: General Dynamics Corp. – ‘S-8’ on 10/29/20

Annual Report by an Employee Stock Purchase, Savings or Similar Plan — Form 11-K
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General Dynamics Corp – ‘11-K’ for 12/31/19

On: Thursday, 6/18/20, at 11:01am ET · For: 12/31/19 · Accession #: 40533-20-51 · File #: 1-03671

Previous ‘11-K’: ‘11-K’ on 6/18/20 for 12/31/19 · Next: ‘11-K’ on 6/17/21 for 12/31/20 · Latest: ‘11-K’ on 6/20/23 for 12/31/22 · 1 Reference: By: General Dynamics Corp. – ‘S-8’ on 10/29/20

Annual Report by an Employee Stock Purchase, Savings or Similar Plan — Form 11-KFiling Table of Contents

‘11-K’ — Annual Report by an Employee Stock Purchase, Savings or Similar Plan

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Annual Report by an Employee Stock Purchase, Savings or Similar Plan — Form 11-K
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