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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 September 29, 2024
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
274,968,619 shares of the registrant’s common stock, $1 par value per share, were outstanding on September 29, 2024.



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)September 29, 2024October 1, 2023
Revenue:
Products$6,767 $6,163 
Services4,904 4,408 
11,671 10,571 
Operating costs and expenses:
Products(5,760)(5,148)
Services(4,095)(3,765)
General and administrative (G&A)(635)(601)
(10,490)(9,514)
Operating earnings1,181 1,057 
Other, net15 19 
Interest, net(82)(85)
Earnings before income tax1,114 991 
Provision for income tax, net(184)(155)
Net earnings$930 $836 
Earnings per share
Basic$3.39 $3.07 
Diluted$3.35 $3.04 
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)September 29, 2024October 1, 2023
Revenue:
Products$20,061 $17,473 
Services14,317 13,131 
34,378 30,604 
Operating costs and expenses:
Products(17,074)(14,704)
Services(12,025)(11,151)
G&A(1,906)(1,792)
(31,005)(27,647)
Operating earnings3,373 2,957 
Other, net47 65 
Interest, net(248)(265)
Earnings before income tax3,172 2,757 
Provision for income tax, net(538)(447)
Net earnings$2,634 $2,310 
Earnings per share
Basic$9.61 $8.45 
Diluted$9.49 $8.39 
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)September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Net earnings$930 $836 $2,634 $2,310 
Changes in unrealized cash flow hedges31 (14)(31)(33)
Foreign currency translation adjustments279 (128)(16)63 
Changes in retirement plans’ funded status44 169 125 526 
Other comprehensive income, pretax354 27 78 556 
Provision for income tax, net(19)(30)(18)(102)
Other comprehensive income (loss), net of tax335 (3)60 454 
Comprehensive income$1,265 $833 $2,694 $2,764 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these financial statements.

5

CONSOLIDATED BALANCE SHEET

(Unaudited)
(Dollars in millions)September 29, 2024December 31, 2023
ASSETS
Current assets:
Cash and equivalents$2,101 $1,913 
Accounts receivable3,165 3,004 
Unbilled receivables8,852 7,997 
Inventories10,141 8,578 
Other current assets1,484 2,123 
Total current assets25,743 23,615 
Noncurrent assets:
Property, plant and equipment, net6,324 6,198 
Intangible assets, net1,583 1,656 
Goodwill20,757 20,586 
Other assets2,905 2,755 
Total noncurrent assets31,569 31,195 
Total assets$57,312 $54,810 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt$2,005 $507 
Accounts payable3,290 3,095 
Customer advances and deposits10,925 9,564 
Other current liabilities3,337 3,266 
Total current liabilities19,557 16,432 
Noncurrent liabilities:
Long-term debt7,262 8,754 
Other liabilities7,520 8,325 
Commitments and contingencies (see Note J)
Total noncurrent liabilities14,782 17,079 
Shareholders’ equity:
Common stock482 482 
Surplus3,997 3,760 
Retained earnings40,730 39,270 
Treasury stock(21,137)(21,054)
Accumulated other comprehensive loss(1,099)(1,159)
Total shareholders’ equity22,973 21,299 
Total liabilities and shareholders’ equity$57,312 $54,810 
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)September 29, 2024October 1, 2023
Cash flows from operating activities – continuing operations:
Net earnings$2,634 $2,310 
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment469 446 
Amortization of intangible and finance lease right-of-use assets177 195 
Equity-based compensation expense137 136 
Deferred income tax benefit(107)(158)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable(172)(89)
Unbilled receivables(874)448 
Inventories(1,612)(1,904)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable193 (83)
Customer advances and deposits628 2,171 
Other, net479 42 
Net cash provided by operating activities 1,952 3,514 
Cash flows from investing activities:
Capital expenditures(561)(600)
Other, net(27)(8)
Net cash used by investing activities(588)(608)
Cash flows from financing activities:
Dividends paid(1,140)(1,068)
Purchases of common stock(183)(434)
Repayment of fixed-rate notes— (1,250)
Other, net150 (40)
Net cash used by financing activities(1,173)(2,792)
Net cash used by discontinued operations(3)(4)
Net increase in cash and equivalents188 110 
Cash and equivalents at beginning of period1,913 1,242 
Cash and equivalents at end of period$2,101 $1,352 
Supplemental cash flow information:
Income tax payments, net$(125)$(493)
Interest payments$(213)$(224)
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
June 30, 2024$482 $3,925 $40,191 $(21,128)$(1,434)$22,036 
Net earnings— — 930 — — 930 
Cash dividends declared— — (391)— — (391)
Equity-based awards— 72 — 35 — 107 
Shares purchased— — — (44)— (44)
Other comprehensive income— — — — 335 335 
September 29, 2024$482 $3,997 $40,730 $(21,137)$(1,099)$22,973 
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 
Nine Months Ended
Common StockRetainedTreasuryAccumulated
Other 
Comprehensive		Total
Shareholders’
(Dollars in millions)ParSurplusEarningsStockLossEquity
December 31, 2023$482 $3,760 $39,270 $(21,054)$(1,159)$21,299 
Net earnings— — 2,634 — — 2,634 
Cash dividends declared— — (1,174)— — (1,174)
Equity-based awards— 237 — 100 — 337 
Shares purchased— — — (183)— (183)
Other comprehensive income— — — — 60 60 
September 29, 2024$482 $3,997 $40,730 $(21,137)$(1,099)$22,973 
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 
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 September 29, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
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 September 29, 2024, and October 1, 2023.
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, 2023.
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:
September 29, 2024December 31, 2023
PP&E$13,393 $13,000 
Accumulated depreciation(7,069)(6,802)
PP&E, net$6,324 $6,198 
Recent Accounting Pronouncements. For a discussion of accounting standards that have been issued by the Financial Accounting Standards Board (FASB) but are not yet effective, refer to the Recent Accounting Pronouncements section in our Annual Report on Form 10-K for the year ended
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December 31, 2023. These standards are not expected to have a material impact on our results of operations, financial condition or cash flows.

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 customer 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 78% of our revenue for the three- and nine-month periods ended September 29, 2024, respectively, and 79% and 80% for the three- and nine-month periods ended October 1, 2023, 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 22% of our revenue for the three- and nine-month periods ended September 29, 2024, respectively, and 21% and 20% for the three- and nine-month periods ended October 1, 2023, 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 September 29, 2024, we had $92.6 billion of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately 55% of our remaining performance obligations as revenue by year-end 2025, an additional 30% by year-end 2027 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. We estimate the profit on a contract as the
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difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract.
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 informed 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 changed our revenue, operating earnings and diluted earnings per share as follows:
Three Months EndedNine Months Ended
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Revenue$62 $27 $211 $179 
Operating earnings(12)11 101 98 
Diluted earnings per share$(0.03)$0.03 $0.29 $0.28 
No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three- and nine-month periods ended September 29, 2024, or October 1, 2023.
We have large, long-term contracts with the U.S. Navy for Virginia-class submarines and an international customer for tracked vehicles in which our estimates for contract revenue include variable consideration from anticipated contract modifications. For both contracts, it is reasonably possible that the actual amount of variable consideration realized could be less than our estimate, which could have a material unfavorable impact on our results of operations.
In addition, during the quarter the Navy was informed of deficiencies in welding procedures conducted by our teammate and subcontractor on our Columbia-class and Virginia-class submarine programs. It is reasonably possible that addressing these deficiencies could potentially impose costs or
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schedule delays not accounted for in our estimates related to our long-term contracts with the Navy for the construction of submarines.
Revenue by Category. Our portfolio of products and services consists of more than 9,000 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
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Aircraft manufacturing$1,686 $1,348 $5,014 $3,715 
Aircraft services796 684 2,492 2,162 
Total Aerospace2,482 2,032 7,506 5,877 
Nuclear-powered submarines2,630 2,027 7,496 6,186 
Surface ships658 697 2,023 2,016 
Repair and other services311 278 864 851 
Total Marine Systems3,599 3,002 10,383 9,053 
Military vehicles1,295 1,280 3,850 3,707 
Weapons systems, armament and munitions658 739 2,033 1,650 
Engineering and other services259 205 719 547 
Total Combat Systems2,212 2,224 6,602 5,904 
Information technology (IT) services2,220 2,149 6,556 6,445 
C5ISR* solutions1,158 1,164 3,331 3,325 
Total Technologies3,378 3,313 9,887 9,770 
Total revenue$11,671 $10,571 $34,378 $30,604 
*Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance

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Revenue by contract type was as follows:
Three Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$2,250 $1,666 $1,957 $1,359 $7,232 
Cost-reimbursement— 1,933 238 1,503 3,674 
Time-and-materials232 — 17 516 765 
Total revenue$2,482 $3,599 $2,212 $3,378 $11,671 
Three Months Ended October 1, 2023
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 
Nine Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$6,772 $4,893 $5,844 $4,033 $21,542 
Cost-reimbursement— 5,489 706 4,350 10,545 
Time-and-materials734 1 52 1,504 2,291 
Total revenue$7,506 $10,383 $6,602 $9,887 $34,378 
Nine Months Ended October 1, 2023
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 
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.
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Revenue by customer was as follows:
Three Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
Department of Defense (DoD)$83 $3,571 $1,274 $1,981 $6,909 
Non-DoD— — 1 1,238 1,239 
Foreign military sales (FMS)9 28 211 7 255 
Total U.S. government92 3,599 1,486 3,226 8,403 
U.S. commercial1,586 — 61 48 1,695 
Non-U.S. government294 — 631 98 1,023 
Non-U.S. commercial510 — 34 6 550 
Total revenue$2,482 $3,599 $2,212 $3,378 $11,671 
Three Months Ended October 1, 2023
U.S. government:
DoD$46 $2,970 $1,309 $1,914 $6,239 
Non-DoD— 1 3 1,212 1,216 
FMS14 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 
Nine Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
DoD$187 $10,280 $3,742 $5,767 $19,976 
Non-DoD— 1 6 3,586 3,593 
FMS30 98 675 28 831 
Total U.S. government217 10,379 4,423 9,381 24,400 
U.S. commercial4,225 2 180 146 4,553 
Non-U.S. government989 2 1,890 326 3,207 
Non-U.S. commercial2,075 — 109 34 2,218 
Total revenue$7,506 $10,383 $6,602 $9,887 $34,378 
Nine Months Ended October 1, 2023
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 
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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 September 29, 2024, were not materially impacted by any other factors.
Revenue recognized for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, that was included in the contract liability balance at the beginning of each year was $1.1 billion and $4.5 billion, and $869 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. 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
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Basic weighted average shares outstanding274,393 272,585 274,004 273,242 
Dilutive effect of stock options and restricted stock/RSUs*3,495 2,160 3,514 2,204 
Diluted weighted average shares outstanding277,888 274,745 277,518 275,446 
*    Excludes unvested stock options, and vested stock options 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 1,277 and 962 for the three- and nine-month periods ended September 29, 2024, and 4,464 and 4,101 for the three- and nine-month periods ended October 1, 2023, respectively.

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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:
September 29, 2024December 31, 2023
Deferred tax asset$28 $28 
Deferred tax liability(581)(655)
Net deferred tax liability$(553)$(627)
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 tax years ending December 31, 2023, and December 31, 2024, the IRS placed us in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant the continual use of IRS examination resources.
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 September 29, 2024, 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.
The Organization for Economic Co-operation and Development has issued “Pillar Two” model rules introducing a new global minimum tax of 15% on a country-by-country basis, with certain aspects intended to be effective on January 1, 2024, and other aspects on January 1, 2025. Although it is uncertain whether the U.S. will adopt any Pillar Two rules, some countries have enacted, introduced, or are considering implementing legislation. Because we generally do not have material operations in jurisdictions with tax rates lower than the proposed Pillar Two minimum, any legislation enacted consistent with the Pillar Two model rules is not expected to have a material effect on our results of operations, financial condition or cash flows.

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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:
September 29, 2024December 31, 2023
Unbilled revenue$41,814 $40,552 
Advances and progress billings(32,962)(32,555)
Net unbilled receivables$8,852 $7,997 
On September 29, 2024, and December 31, 2023, net unbilled receivables included $1.4 billion and $1.2 billion, respectively, associated with a large international tracked vehicle contract in our Combat Systems segment. The contract, signed in 2010, experienced an unbilled receivable build-up in 2021 and 2022. 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.
Inventories consisted of the following:
September 29, 2024December 31, 2023
Work in process$6,767 $5,655 
Raw materials3,283 2,886 
Finished goods29 22 
Pre-owned aircraft62 15 
Total inventories$10,141 $8,578 
The increase in total inventories during the nine-month period ended September 29, 2024, was due primarily to the ramp-up in production of new Gulfstream aircraft models, including the G700 that began deliveries in the second quarter of 2024, as well as increased production of in-service aircraft reflecting strong customer demand. Customer deposits associated with firm orders for these aircraft, which are reported in customer advances and deposits and other noncurrent liabilities on the Consolidated Balance Sheet, also increased.

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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, 2023 (a)
$3,199 $297 $2,812 $14,278 $20,586 
Acquisitions (b)7 — 39 156 202 
Other (c)(6)— (22)(3)(31)
September 29, 2024 (a)
$3,200 $297 $2,829 $14,431 $20,757 
(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
September 29, 2024December 31, 2023
Contract and program intangible assets (b)$3,295 $(1,960)$1,335 $3,256 $(1,868)$1,388 
Trade names and trademarks540 (302)238 542 (288)254 
Technology and software62 (52)10 65 (51)14 
Other intangible assets60 (60)— 64 (64)— 
Total intangible assets$3,957 $(2,374)$1,583 $3,927 $(2,271)$1,656 
(a)Changes in gross carrying amounts consisted primarily of adjustments for acquired and divested intangible assets and 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 $45 and $134 for the three- and nine-month periods ended September 29, 2024, and $47 and $147 for the three- and nine-month periods ended October 1, 2023, respectively.

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H. DEBT
Debt consisted of the following:
September 29, 2024December 31, 2023
Fixed-rate notes due:Interest rate:
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 
OtherVarious85 90 
Total debt principal9,335 9,340 
Less unamortized debt issuance costs and discounts68 79 
Total debt9,267 9,261 
Less current portion2,005 507 
Long-term debt$7,262 $8,754 
On September 29, 2024, 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 September 29, 2024.

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I. OTHER LIABILITIES
A summary of significant other liabilities by balance sheet caption follows:
September 29, 2024December 31, 2023
Salaries and wages$1,180 $1,191 
Dividends payable391 362 
Lease liabilities324 325 
Workers’ compensation247 237 
Other1,195 1,151 
Total other current liabilities$3,337 $3,266 
Retirement benefits$2,058 $2,219 
Customer deposits on commercial contracts1,847 2,576 
Lease liabilities1,576 1,497 
Other2,039 2,033 
Total other liabilities$7,520 $8,325 

J. COMMITMENTS AND CONTINGENCIES
Litigation
On October 6, 2023, a putative class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against General Dynamics Corporation, certain of its subsidiaries and various other companies alleging that they conspired, in violation of the Sherman Act, not to solicit naval architects and marine engineers from each other. The named plaintiffs purport to represent a class of individuals consisting of all naval architects and marine engineers employed by the shipyard and consultancy defendants, their predecessors, their subsidiaries and/or their related entities in the United States at any time since January 1, 2000. The plaintiffs allege that the conspiracy suppressed compensation paid to the putative class members, and the plaintiffs seek trebled monetary damages, attorneys’ fees, injunctive and other equitable relief. We are defending the matter. On April 19, 2024, the District Court dismissed the plaintiffs’ complaint. Plaintiffs initiated an appeal of the dismissal of their complaint to the U.S. Court of Appeals for the Fourth Circuit on May 20, 2024. Given the current status of this matter, 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 this matter, 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 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
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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 $1.8 billion on September 29, 2024. 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 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 September 29, 2024, 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
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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 September 29, 2024, and October 1, 2023, were as follows:
Nine Months EndedSeptember 29, 2024October 1, 2023
Beginning balance$597 $603 
Warranty expense84 57 
Payments(76)(74)
Adjustments9 5 
Ending balance$614 $591 

K. SHAREHOLDERS’ EQUITY
Share Repurchases. In the nine-month period ended September 29, 2024, we repurchased 0.7 million of our outstanding shares for $183. On September 29, 2024, 4 million shares remained authorized by our board of directors (Board) for repurchase, representing 1.5% of our total shares outstanding. We repurchased 2 million shares for $434 in the nine-month period ended October 1, 2023.
Dividends per Share. Our Board declared dividends per share of $1.42 and $4.26 for the three- and nine-month periods ended September 29, 2024, and $1.32 and $3.96 for the three- and nine-month periods ended October 1, 2023, respectively. We paid cash dividends of $390 and $1.1 billion for the three- and nine-month periods ended September 29, 2024, and $363 and $1.1 billion for the three- and nine-month periods ended October 1, 2023, respectively.
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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, 2023$11 $673 $(1,843)$(1,159)
Other comprehensive income, pretax(31)(16)125 78 
Provision for income tax, net7 — (25)(18)
Other comprehensive income, net of tax(24)(16)100 60 
September 29, 2024$(13)$657 $(1,743)$(1,099)
December 31, 2022$4 $260 $(2,416)$(2,152)
Other comprehensive income, pretax(33)63 526 556 
Provision for income tax, net8 — (110)(102)
Other comprehensive income, net of tax(25)63 416 454 
October 1, 2023$(21)$323 $(2,000)$(1,698)
Amounts reclassified out of AOCL related primarily to changes in our retirement plans’ funded status and included pretax recognized net actuarial losses and amortization of prior service credit. See Note O for these amounts, which are included in our net periodic pension and other post-retirement benefit cost (credit).

L. SEGMENT INFORMATION
We have four operating segments: Aerospace, Marine Systems, Combat Systems and Technologies. We organize our segments in accordance with the nature of products and services offered. We measure each segment’s profitability based on operating earnings. As a result, we do not allocate net interest, other income and expense items, and income taxes to our segments.
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Summary financial information for each of our segments follows:
Revenue (a)Operating Earnings
Three Months EndedSeptember 29, 2024October 1, 2023September 29, 2024October 1, 2023
Aerospace$2,482 $2,032 $305 $268 
Marine Systems3,599 3,002 258 211 
Combat Systems2,212 2,224 325 300 
Technologies3,378 3,313 326 315 
Corporate (b)— — (33)(37)
Total$11,671 $10,571 $1,181 $1,057 
Nine Months Ended
Aerospace$7,506 $5,877 $879 $733 
Marine Systems10,383 9,053 735 657 
Combat Systems6,602 5,904 920 796 
Technologies9,887 9,770 941 897 
Corporate (b)— — (102)(126)
Total$34,378 $30,604 $3,373 $2,957 
(a)See Note B for additional revenue information by segment.
(b)Corporate operating costs consisted primarily of equity-based compensation expense.
M. FAIR VALUE
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels:
•Level 1 – quoted prices in active markets for identical assets or liabilities.
•Level 2 – inputs, other than quoted prices, observable by a marketplace participant either directly or indirectly.
•Level 3 – unobservable inputs significant to the fair value measurement.
We did not have any significant non-financial assets or liabilities measured at fair value on September 29, 2024, or December 31, 2023.
Our financial instruments include cash and equivalents, accounts receivable and payable, marketable securities held in trust and other investments, short- and long-term debt, and derivative financial instruments. The carrying values of cash and equivalents and accounts receivable and payable on the Consolidated Balance Sheet approximate their fair value. The following tables present the fair values of our other financial assets and liabilities on September 29, 2024, and December 31, 2023, and the basis for determining their fair values:
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Carrying
Value		Fair
Value		Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Financial Assets (Liabilities)September 29, 2024
Measured at fair value:
Marketable securities held in trust:
Cash and equivalents$3 $3 $— $3 $— 
Available-for-sale debt securities132 132 — 132 — 
Commingled equity funds50 50 50 — — 
Commingled fixed-income funds6 6 6 — — 
Other investments45 45 28 — 17 
Cash flow hedge assets64 64 — 64 — 
Cash flow hedge liabilities(65)(65)— (65)— 
Measured at amortized cost:
Short- and long-term debt principal(9,335)(8,876)— (8,876)— 
December 31, 2023
Measured at fair value:
Marketable securities held in trust:
Cash and equivalents$21 $21 $— $21 $— 
Available-for-sale debt securities115 115 — 115 — 
Commingled equity funds49 49 49 — — 
Commingled fixed-income funds6 6 6 — — 
Other investments40 40 23 — 17 
Cash flow hedge assets109 109 — 109 — 
Cash flow hedge liabilities(61)(61)— (61)— 
Measured at amortized cost:
Short- and long-term debt principal(9,340)(8,764)— (8,764)— 
Our Level 1 assets include commingled equity and fixed-income funds that are valued using a unit price or net asset value (NAV). These funds are actively traded and valued using quoted prices for identical securities from the market exchanges. The fair value of our Level 2 assets and liabilities, which consist primarily of fixed-income securities, cash flow hedges and our fixed-rate notes, is determined under a market approach using valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. Our Level 3 assets include direct private equity investments that are measured using inputs unobservable to a marketplace participant.

N. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
We are exposed to market risk, primarily from foreign currency exchange rates, commodity prices and investments. We may use derivative financial instruments to hedge some of these risks as described below. We do not use derivative financial instruments for trading or speculative purposes.
Foreign Currency Risk. Our foreign currency exchange rate risk relates to receipts from customers, payments to suppliers and intercompany transactions denominated in foreign currencies. To the extent possible, we include terms in our contracts that are designed to protect us from this risk. Otherwise, we
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enter into derivative financial instruments, principally foreign currency forward purchase and sale contracts, designed to offset and minimize our risk. The dollar-weighted one-year average maturity of these instruments generally matches the duration of the activities that are at risk.
Commodity Price Risk. We are subject to commodity price risk, primarily on long-term, fixed-price contracts. To the extent possible, we include terms in our contracts that are designed to protect us from these risks. Some of the protective terms included in our contracts are considered derivative financial instruments but are not accounted for separately, because they are clearly and closely related to the host contract. We have not entered into any material commodity hedging contracts but may do so as circumstances warrant. We do not believe that changes in commodity prices will have a material impact on our results of operations or cash flows.
Investment Risk. Our investment policy allows for purchases of fixed-income securities with an investment-grade rating and a maximum maturity of up to five years. On September 29, 2024, and December 31, 2023, we held $2.1 billion and $1.9 billion in cash and equivalents, respectively, but held no material marketable securities other than those held in trust to meet some of our obligations under workers’ compensation and non-qualified pension plans. On September 29, 2024, and December 31, 2023, we held marketable securities in trust of $191. These marketable securities are reflected at fair value on the Consolidated Balance Sheet in other current and noncurrent assets. See Note M for additional details.
Hedging Activities. We had notional forward exchange contracts outstanding of $7.1 billion and $5.7 billion on September 29, 2024, and December 31, 2023, respectively. These derivative financial instruments are cash flow hedges, and are reflected at fair value on the Consolidated Balance Sheet in other current assets and liabilities. See Note M for additional details.
Changes in fair value (gains and losses) related to derivative financial instruments that qualify as cash flow hedges are deferred in AOCL until the underlying transaction is reflected in earnings. Alternatively, gains and losses on derivative financial instruments that do not qualify for hedge accounting are recorded each period in earnings. All gains and losses from derivative financial instruments recognized in the Consolidated Statement of Earnings are presented in the same line item as the underlying transaction, generally operating costs and expenses.
Net gains and losses recognized in earnings on derivative financial instruments that do not qualify for hedge accounting were not material to our results of operations for the three- and nine-month periods ended September 29, 2024, and October 1, 2023. Net gains and losses reclassified to earnings from AOCL related to qualified hedges were also not material to our results of operations for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, and we do not expect the amount of these gains and losses that will be reclassified to earnings during the next 12 months to be material.
We had no material derivative financial instruments designated as fair value or net investment hedges on September 29, 2024, and December 31, 2023.
Foreign Currency Financial Statement Translation. We translate foreign currency balance sheets from our international businesses’ functional currency (generally the respective local currency) to U.S. dollars at the end-of-period exchange rates, and statements of earnings at the average exchange rates for each period. The resulting foreign currency translation adjustments are a component of AOCL.
We do not hedge the fluctuation in reported revenue and earnings resulting from the translation of these international operations’ results into U.S. dollars. The impact of translating our non-U.S. operations’ revenue and earnings into U.S. dollars was not material to our results of operations for the
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three- and nine-month periods ended September 29, 2024, and October 1, 2023. In addition, the effect of changes in foreign exchange rates on non-U.S. cash balances was not material for the nine-month periods ended September 29, 2024, and October 1, 2023.

O. RETIREMENT PLANS
We provide retirement benefits to eligible employees through a variety of plans:
•Defined contribution
•Defined benefit
◦Pension (qualified and non-qualified)
◦Other post-retirement benefit
For our defined benefit plans, net periodic benefit cost (credit) for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, consisted of the following:
Pension BenefitsOther Post-retirement Benefits
Three Months EndedSeptember 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Service cost$19 $17 $1 $1 
Interest cost157 163 7 7 
Expected return on plan assets(206)(207)(8)(8)
Net actuarial loss (gain)48 183 (7)(7)
Prior service (credit) cost(2)(4)1 1 
Net periodic benefit cost (credit) $16 $152 $(6)$(6)
Nine Months Ended
Service cost$56 $50 $3 $3 
Interest cost471 488 21 22 
Expected return on plan assets(617)(622)(25)(24)
Net actuarial loss (gain)146 550 (23)(23)
Prior service (credit) cost(5)(11)2 2 
Net periodic benefit cost (credit)$51 $455 $(22)$(20)
Our contractual arrangements with the U.S. government provide for the recovery of pension and other post-retirement benefit costs related to employees working on government contracts. The amount allocated to U.S. government contracts is determined in accordance with the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS), which may result in a timing difference with the amount determined under GAAP. We defer this difference on the Consolidated Balance Sheet. At this time, cumulative benefit costs exceed the amount allocated to contracts, and the difference is reported in other current assets. To the extent there is a non-service component of net periodic benefit cost (credit) for our defined benefit plans, it is reported in other income (expense) in the Consolidated Statement of Earnings.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(Dollars in millions, except per-share amounts or unless otherwise noted)

BUSINESS OVERVIEW
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.
Our company is organized into four operating segments: Aerospace, Marine Systems, Combat Systems and Technologies. We refer to the latter three collectively as our defense segments. Our primary customer is the U.S. government, including the Department of Defense (DoD), the intelligence community and other U.S. government agencies. We also have significant business with non-U.S. governments and a diverse base of corporate and individual buyers of business jet aircraft and related services. The following discussion should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023, and with the unaudited Consolidated Financial Statements included in this Form 10-Q.

BUSINESS ENVIRONMENT
With approximately 70% of our revenue from work for the U.S. government, government spending levels — particularly defense spending — influence our financial performance. The Congress has not yet passed a defense appropriations bill for the government’s fiscal year 2025 even though the new year began on October 1, 2024. However, on September 26, 2024, a continuing resolution (CR) was signed into law, providing funding for federal agencies through December 20, 2024. When the government operates under a CR, all programs of record are funded at the prior year’s appropriated levels until the current year appropriations bill is signed into law. Therefore, the DoD is prohibited from starting new programs or increasing funding on existing programs unless there is an exception for the program included in the CR. We do not anticipate the current CR having a material impact on our results of operations, financial condition or cash flows. However, the impact to our business from an extended CR or government shutdown that may result from any continuing delay by Congress to pass a new defense appropriations bill is currently uncertain and would depend on the duration and government implementation of the CR or shutdown. For additional information, see the Risk Factors in Part I, Item 1A, in our most recent Form 10-K filing.
The coronavirus (COVID-19) pandemic caused significant disruptions to national and global economies and government activities, including supply chain and staffing challenges. Additionally, in response to the Russian invasion of Ukraine, the United States and several other countries imposed economic and trade sanctions, export controls and other restrictions targeting Russia and Belarus. Lastly, the impact of the conflict in the Middle East continues to evolve. The disruptions caused by these events continue to impact global economies and businesses. The primary impact to our business is supply chain challenges, including inflationary pressures.
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In our Aerospace segment, supply chain challenges have paced our ability to ramp up production at the rate we would have liked, in response to strong customer demand for our aircraft and have caused out-of-sequence manufacturing, which increases costs and decreases operational efficiency. In addition, the conflict in the Middle East has impacted the delivery schedule for our Israel-based supplier of mid-cabin aircraft. Within our defense segments, the COVID-19 pandemic resulted in supply chain challenges that continue to impact our Marine Systems segment. The Russia-Ukraine conflict and increased threat environment have created additional demand for certain of our products and services, particularly in our Combat Systems segment.
Earlier this year, our ultra-long-range, ultra-large-cabin G700 aircraft received U.S. Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) type certification, which paved the way for customer deliveries in the second quarter of 2024. Deliveries were impacted in the third quarter by late supply chain deliveries, additional type certification procedures due to complex interiors, a quality escape from a vendor that was identified and rectified and timing of regional weather events. These impacts are largely behind us and we expect to deliver about 42 G700 aircraft in all this year.

RESULTS OF OPERATIONS

INTRODUCTION
The following paragraphs explain how we recognize revenue and operating costs in our operating segments and the terminology we use to describe our operating results.
In the Aerospace segment, we record revenue on contracts for new aircraft when the customer obtains control of the asset, which is generally upon delivery and acceptance by the customer of the fully outfitted aircraft. Revenue associated with the segment’s services businesses is recognized as work progresses or upon delivery of services. Fluctuations in revenue from period to period result from the number and mix of new aircraft deliveries, and the level and type of aircraft services performed during the period.
The majority of the Aerospace segment’s operating costs relates to new aircraft production on firm orders and consists of labor, material, subcontractor and overhead costs. The costs are accumulated in production lots, recorded in inventory and recognized as operating costs at aircraft delivery based on the estimated average unit cost in a production lot. While changes in the estimated average unit cost for a production lot impact the level of operating costs, the amount of operating costs reported in a given period is based largely on the number and type of aircraft delivered. Operating costs in the Aerospace segment’s services businesses are recognized generally as incurred.
For new aircraft, operating earnings and margin are a function of the prices of our aircraft, our operational efficiency in manufacturing and outfitting the aircraft, and the mix of ultra-large-cabin, large-cabin and mid-cabin aircraft deliveries. Aircraft mix can also refer to the stage of program maturity for our aircraft models. A new aircraft model typically has lower margins in its initial production lots, and then margins generally increase as we realize efficiencies in the production process. Additional factors affecting the segment’s earnings and margin include the volume, mix and profitability of services work performed, the market for pre-owned aircraft, and the level of general and administrative (G&A) and net research and development (R&D) costs incurred by the segment.
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In the defense segments, revenue on long-term government contracts is recognized generally over time as the work progresses, either as products are produced or as services are rendered. 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. Variances in costs recognized from period to period reflect primarily increases and decreases in production or activity levels on individual contracts. Because costs are used as a measure of progress, year-over-year variances in costs result in corresponding variances in revenue, which we generally refer to as volume.
Operating earnings and margin in the defense segments are driven by changes in volume, performance or contract mix. Performance refers to changes in profitability based on adjustments to estimates at completion on individual contracts. These adjustments result from increases or decreases to the estimated value of the contract, the estimated costs to complete the contract or both. Therefore, changes in costs incurred in the period compared with prior periods do not necessarily impact profitability. It is only when total estimated costs at completion on a given contract change without a corresponding change in the contract value (or vice versa) that the profitability of that contract may be impacted. Contract mix refers to changes in the volume of higher- versus lower-margin work. Higher or lower margins can result from a number of factors, including contract type (e.g., fixed-price/cost-reimbursable) and type of work (e.g., development/production). Contract mix can also refer to the stage of program maturity for our long-term production contracts. New long-term production contracts typically have lower margins initially, and then margins generally increase as we achieve learning curve improvements or realize other cost reductions.

CONSOLIDATED OVERVIEW
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$11,671 $10,571 $1,100 10.4 %
Operating costs and expenses(10,490)(9,514)(976)10.3 %
Operating earnings1,181 1,057 124 11.7 %
Operating margin10.1 %10.0 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$34,378 $30,604 $3,774 12.3 %
Operating costs and expenses(31,005)(27,647)(3,358)12.1 %
Operating earnings3,373 2,957 416 14.1 %
Operating margin9.8 %9.7 %
We had strong growth in consolidated revenue during 2024, including double digit percentage growth in our Aerospace, Marine Systems and Combat Systems segments over the first nine months. Operating margin increased 10 basis points in both the third quarter and the first nine months of 2024.

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REVIEW OF OPERATING SEGMENTS
Following is a discussion of operating results for each of our operating segments. For the Aerospace segment, results are analyzed by specific types of products and services, consistent with how the segment is managed. For the defense segments, the discussion is based on markets and the lines of products and services offered with a supplemental discussion of specific contracts and programs when significant to the results. Additional information regarding our segments can be found in Note L to the unaudited Consolidated Financial Statements in Part I, Item 1.
AEROSPACE
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$2,482 $2,032 $450 22.1 %
Operating earnings305 268 37 13.8 %
Operating margin12.3 %13.2 %
Gulfstream aircraft deliveries (in units)28 27 1 3.7 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$7,506 $5,877 $1,629 27.7 %
Operating earnings879 733 146 19.9 %
Operating margin11.7 %12.5 %
Gulfstream aircraft deliveries (in units)89 72 17 23.6 %
Operating Results
The increase in the Aerospace segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
Aircraft manufacturing$315 $1,299 
Aircraft services135 330 
Total increase$450 $1,629 
Aircraft manufacturing revenue increased in the third quarter and first nine months of 2024 due primarily to the number and mix of aircraft deliveries, including initial deliveries of our ultra-long-range, ultra-large-cabin G700 aircraft. Aircraft services revenue was up in the third quarter and first nine months of 2024 due to increased customer demand for aircraft maintenance based on established maintenance cycles, a larger installed base and customer flight activity.
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The increase in the segment’s operating earnings in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
Aircraft services$53 $105 
Aircraft manufacturing(5)76 
G&A/other expenses(11)(35)
Total increase$37 $146 
Aircraft services operating earnings increased in the third quarter and first nine months of 2024 due to higher volume. Although aircraft manufacturing revenue increased in 2024, operating earnings have not increased at the same rate, reflecting additional costs associated with the first lot of G700 aircraft and out of station work caused by late supply chain deliveries. G&A/other expenses have increased in 2024 due in part to the R&D efforts supporting the extended FAA certification processes. In total, the Aerospace segment’s operating margin decreased 90 basis points in the third quarter and 80 basis points in the first nine months of 2024 compared with the prior-year periods.
2024 Outlook
We expect the Aerospace segment’s 2024 revenue to be approximately $12.3 billion, with operating margin of approximately 13.2%.
MARINE SYSTEMS
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$3,599 $3,002 $597 19.9 %
Operating earnings258 211 47 22.3 %
Operating margin7.2 %7.0 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$10,383 $9,053 $1,330 14.7 %
Operating earnings735 657 78 11.9 %
Operating margin7.1 %7.3 %
Operating Results
The increase in the Marine Systems segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
U.S. Navy ship construction$470 $959 
U.S. Navy ship engineering, repair and other services127 371 
Total increase$597 $1,330 
Revenue from U.S. Navy ship construction and engineering was up in the third quarter and first nine months of 2024 due primarily to increased volume on the Columbia-class and Virginia-class submarine programs. The Marine Systems segment’s operating margin continues to reflect the impact of supply chain challenges.
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2024 Outlook
We expect the Marine Systems segment’s 2024 revenue to be approximately $13.9 billion with operating margin of approximately 6.9%.
COMBAT SYSTEMS
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$2,212 $2,224 $(12)(0.5)%
Operating earnings325 300 25 8.3 %
Operating margin14.7 %13.5 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$6,602 $5,904 $698 11.8  %
Operating earnings920 796 124 15.6  %
Operating margin13.9 %13.5 %
Operating Results
The change in the Combat Systems segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
Weapons systems and munitions$(63)$429 
U.S military vehicles57 222 
International military vehicles(6)47 
Total change$(12)$698 
Weapons systems and munitions revenue increased in the first nine months of 2024 due to heightened demand for artillery products, including facility expansion efforts to achieve higher production rates. In the third quarter, revenue was down due to program timing. Revenue from U.S. military vehicles was up in the third quarter and first nine months due primarily to higher volume on the U.S. Army’s M10 Booker combat vehicle program.
Overall, the Combat Systems segment’s operating margin increased 120 basis points in the third quarter and 40 basis points in the first nine months of 2024 driven by favorable contract mix and strong operating performance.
2024 Outlook
We expect the Combat Systems segment’s 2024 revenue to be approximately $8.7 billion with operating margin of approximately 14.4%.
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TECHNOLOGIES
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$3,378 $3,313 $65 2.0 %
Operating earnings326 315 11 3.5 %
Operating margin9.7 %9.5 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$9,887 $9,770 $117 1.2 %
Operating earnings941 897 44 4.9 %
Operating margin9.5 %9.2 %
Operating Results
The increase in the Technologies segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
Information technology (IT) services$71 $111 
C5ISR* solutions(6)6 
Total increase$65 $117 
*Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance
The Technologies segment’s revenue was up in the third quarter and first nine months of 2024 due to higher volume of IT services, including the ramp-up of new programs. Overall, the Technologies segment’s operating margin increased 20 basis points in the third quarter and 30 basis points in the first nine months of 2024 due to strong operating performance.
2024 Outlook
We expect the Technologies segment’s 2024 revenue to be approximately $13 billion with operating margin of approximately 9.5%.
CORPORATE
Corporate operating costs totaled $33 in the third quarter and $102 in the first nine months of 2024 compared with $37 in the third quarter and $126 in the first nine months of 2023 and consisted primarily of equity-based compensation expense. Corporate operating costs are expected to be approximately $140 in 2024.

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OTHER INFORMATION
PRODUCT REVENUE AND OPERATING COSTS
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$6,767 $6,163 $604 9.8 %
Operating costs(5,760)(5,148)(612)11.9 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$20,061 $17,473 $2,588 14.8 %
Operating costs(17,074)(14,704)(2,370)16.1 %
The increase in product revenue in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
Aircraft manufacturing$315 $1,299 
Ship construction470 959 
Weapons systems and munitions(63)429 
Other, net(118)(99)
Total increase$604 $2,588 
Aircraft manufacturing revenue increased in the third quarter and first nine months of 2024 due to additional aircraft deliveries. Ship construction revenue increased due primarily to higher volume on the Columbia-class and Virginia-class submarine programs. Weapons systems and munitions revenue increased in the first nine months of 2024 due to heightened demand for artillery products. The primary drivers of the increase in product operating costs were the changes in volume on the programs described above.
SERVICE REVENUE AND OPERATING COSTS
Three Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$4,904 $4,408 $496 11.3 %
Operating costs(4,095)(3,765)(330)8.8 %
Nine Months EndedSeptember 29, 2024October 1, 2023Variance
Revenue$14,317 $13,131 $1,186 9.0 %
Operating costs(12,025)(11,151)(874)7.8 %
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The increase in service revenue in the third quarter and first nine months of 2024 consisted of the following:
Third QuarterNine Months
Ship services$127 $371 
Aircraft services135 330 
C5ISR solutions/IT services123 264 
Other, net111 221 
Total increase$496 $1,186 
Ship services revenue increased in the third quarter and first nine months of 2024 due to higher volume on the Columbia-class submarine program. Aircraft services revenue was up due to additional maintenance work. C5ISR solutions and IT services revenue was up due to higher volume, including the ramp-up of new programs. The primary drivers of the increase in service operating costs were the changes in volume on the programs described above.
G&A EXPENSES
As a percentage of revenue, G&A expenses decreased to 5.5% in the first nine months of 2024 compared with 5.9% in the first nine months of 2023. We expect G&A expenses as a percentage of revenue in 2024 to be generally consistent with 2023.
OTHER, NET
Net other income was $47 in the first nine months of 2024 compared with $65 in the first nine months of 2023, and represents primarily the non-service components of pension and other post-retirement benefits. In 2024, we expect net other income to be approximately $60.
INTEREST, NET
Net interest expense was $248 in the first nine months of 2024 compared with $265 in the prior-year period, reflecting the repayment of our scheduled debt maturities in 2023. See Note H to the unaudited Consolidated Financial Statements in Part I, Item 1, for additional information regarding our debt obligations, including interest rates. We expect 2024 net interest expense to be approximately $320.
PROVISION FOR INCOME TAX, NET
Our effective tax rate was 17.0% in the first nine months of 2024 compared with 16.2% in the prior-year period. For 2024, based on increased U.S. and foreign tax credits, tax benefits from equity-based compensation and other timing items, we anticipate a full-year effective tax rate of approximately 17.0%.

BACKLOG AND ESTIMATED POTENTIAL CONTRACT VALUE
Our total backlog, including funded and unfunded portions, was $92.6 billion at the end of the third quarter of 2024 compared with $91.3 billion at the end of the second quarter. Our total backlog is equal to our remaining performance obligations under contracts with customers as discussed in Note B to the unaudited Consolidated Financial Statements in Part I, Item 1. Our total estimated contract value, which combines total backlog with estimated potential contract value, was $137.6 billion on September 29, 2024.
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The following table details the backlog and estimated potential contract value of each segment at the end of the third and second quarters of 2024:
FundedUnfundedTotal BacklogEstimated Potential Contract ValueTotal
Estimated Contract Value
September 29, 2024
Aerospace$18,859 $937 $19,796 $254 $20,050 
Marine Systems29,008 11,463 40,471 9,578 50,049 
Combat Systems17,289 682 17,971 8,016 25,987 
Technologies9,794 4,602 14,396 27,093 41,489 
Total$74,950 $17,684 $92,634 $44,941 $137,575 
June 30, 2024
Aerospace$19,126 $911 $20,037 $372 $20,409 
Marine Systems29,912 11,436 41,348 3,983 45,331 
Combat Systems16,003 673 16,676 5,816 22,492 
Technologies9,365 3,875 13,240 28,283 41,523 
Total$74,406 $16,895 $91,301 $38,454 $129,755 

AEROSPACE
Aerospace funded backlog represents primarily new aircraft orders for which we have definitive purchase contracts and deposits from customers. Unfunded backlog consists of agreements to provide future aircraft maintenance and support services. The Aerospace segment ended the third quarter of 2024 with backlog of $19.8 billion.
Orders for new Gulfstream aircraft reflected strong demand, yielding a segment book-to-bill ratio (orders divided by revenue) of 1-to-1 for the first nine months of 2024, even as revenue grew by nearly 30% year over year.
Beyond total backlog, estimated potential contract value represents primarily options and other agreements with existing customers to purchase new aircraft and long-term aircraft services agreements. On September 29, 2024, estimated potential contract value in the Aerospace segment was $254.

DEFENSE SEGMENTS
The total backlog in our defense segments represents the estimated remaining sales value of work to be performed under firm contracts. The funded portion of total backlog includes items that have been authorized and appropriated by the U.S. Congress and funded by customers, as well as commitments by international customers that are approved and funded similarly by their governments. The unfunded portion of total backlog includes the amounts we believe are likely to be funded, but there is no guarantee that future budgets and appropriations will provide the same funding level currently anticipated for a given program.
Estimated potential contract value in our defense segments includes unexercised options associated with existing firm contracts and unfunded work on indefinite delivery, indefinite quantity (IDIQ) contracts. Contract options represent agreements to perform additional work under existing contracts at the election of the customer. We recognize options in backlog when the customer exercises the option
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and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. This amount is often less than the total IDIQ contract value, particularly when the contract has multiple awardees. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.
Total backlog in our defense segments was $72.8 billion on September 29, 2024. In the third quarter of 2024, the Combat Systems and Technologies segments achieved book-to-bill ratios of 1.5-to-1 and 1.3-to-1, respectively. Overall, the total book-to-bill ratio in our defense segments was 1.1-to-1 in the third quarter of 2024. Estimated potential contract value in our defense segments was $44.7 billion on September 29, 2024. We received the following significant contract awards during the third quarter of 2024:
MARINE SYSTEMS
•$780 from the U.S. Navy for the construction of an additional John Lewis-class (T-AO-205) fleet replenishment oiler. The contract including options for an additional seven T-AO-205 oilers has a maximum potential value of more than $6.7 billion.
•$1.5 billion from the Navy for long-lead materials for Block VI Virginia-class submarines.
•$100 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.
•$85 from the Navy for maintenance and modernization on the USS Chung-Hoon, an Arleigh Burke-class (DDG-51) guided missile destroyer.
•$80 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
COMBAT SYSTEMS
•$885 for various munitions and ordnance. These contracts have a maximum potential value of $1.7 billion.
•$465 for two contracts from the U.S. Army for the production of 155mm artillery projectile metal parts. These contracts have a maximum potential value of $1.7 billion.
•$395 from the Army for the production of 155mm propelling bag charges.
•$190 from the Army to produce Iron Fist Active Protection System kits.
•$180 from the Army to produce Stryker Sgt. Stout vehicles.
•$100 from the Army for long-lead materials to support the future retrofit of Stryker Sgt. Stout vehicles to a dual Stinger Vehicle Universal Launcher (SVUL) configuration.
TECHNOLOGIES
•$840 for several key contracts for classified customers. These contracts have a maximum potential value of $1 billion.
•$605 for multiple awards from the U.S. Space Development Agency to develop and integrate ground systems for the low-Earth orbit satellite network.
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•$105 from the U.S. Defense Information Systems Agency (DISA) to continue operating and maintaining Pentagon and regional government-furnished network infrastructures. The contract including options has a maximum potential value of $300.
•$185 from the U.S. Department of State (DoS) to manage its global technical security supply chain.
•$135 to provide equipment and tools to the National Oceanic Atmospheric Administration (NOAA) to augment its High-Performance Computing Systems.
•$130 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services.
•$120 from the DoS to provide overseas consular services to support visa application and issuance at U.S. embassies and consulates throughout the world under the Global Support Strategy (GSS) program.

LIQUIDITY AND CAPITAL RESOURCES
We place a strong emphasis on cash flow generation, which is underpinned by an operating discipline focused on cost control and working capital management. This emphasis gives us the flexibility for prudent capital deployment, while allowing us to step down debt over time, and preserves a strong balance sheet for future opportunities.
We evaluate a variety of capital deployment options based on current market conditions and our long-term outlook, and we believe agility is a key component of our capital deployment strategy as market conditions change over time. Our capital deployment priorities include investments in our products and services to drive long-term growth, a predictable dividend, strategic acquisitions and opportunistic share repurchases.
We believe cash generated by operating activities, supplemented by commercial paper issuances, is sufficient to satisfy our short- and long-term liquidity needs. An additional potential source of capital is the issuance of long-term debt in capital market transactions.
We ended the third quarter of 2024 with a cash and equivalents balance of $2.1 billion compared with $1.9 billion at the end of 2023. The following is a discussion of our major operating, investing and financing activities in the first nine months of 2024 and 2023, as classified on the Consolidated Statement of Cash Flows in Part I, Item 1:
Nine Months EndedSeptember 29, 2024October 1, 2023
Net cash provided by operating activities$1,952 $3,514 
Net cash used by investing activities(588)(608)
Net cash used by financing activities(1,173)(2,792)

OPERATING ACTIVITIES
Cash provided by operating activities was $2 billion in the first nine months of 2024 compared with $3.5 billion in the same period in 2023. The primary driver of cash flows in both periods was net earnings. Cash flows in the first nine months of 2024 were affected negatively by growth in operating working capital, particularly driven by the ramp-up in production of new Gulfstream aircraft models in our Aerospace segment and timing in our Combat Systems segment. Cash flows in the first nine months of
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2023 were affected positively by a decrease in unbilled receivables due to the receipt of progress payments on large international vehicle contracts in our Combat Systems segment and an increase in customer deposits driven by Gulfstream aircraft orders, offset partially by an increase in inventory due primarily to the ramp-up in production of new Gulfstream aircraft models.

INVESTING ACTIVITIES
Cash used by investing activities was $588 in the first nine months of 2024 compared with $608 in the same period in 2023. Our investing activities include cash paid for capital expenditures and business acquisitions; purchases, sales and maturities of marketable securities; and proceeds from asset sales. The primary use of cash for investing activities in both periods was capital expenditures. Capital expenditures were $561 in the first nine months of 2024 compared with $600 in the same period in 2023.

FINANCING ACTIVITIES
Cash used by financing activities was $1.2 billion in the first nine months of 2024 compared with $2.8 billion in the same period in 2023. Financing activities include the use of cash for repurchases of common stock, payment of dividends, and debt and commercial paper repayments. Our financing activities also include proceeds received from debt and commercial paper issuances and employee stock option exercises.
On March 6, 2024, our board of directors (Board) declared an increased quarterly dividend of $1.42 per share, the 27th consecutive annual increase. Previously, the Board had increased the quarterly dividend to $1.32 per share in March 2023. Cash dividends paid were $1.1 billion in the first nine months of 2024 and 2023.
We paid $183 and $434 in the first nine months of 2024 and 2023, respectively, to repurchase our outstanding shares. On September 29, 2024, 4 million shares remained authorized by our Board for repurchase, representing 1.5% of our total shares outstanding.
Fixed-rate notes of $500 mature in November 2024. We currently plan to repay these notes at maturity using cash on hand. For additional information regarding our debt obligations, including scheduled debt maturities and interest rates, see Note H to the unaudited Consolidated Financial Statements in Part I, Item 1.
On September 29, 2024, 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. We also have an effective shelf registration on file with the Securities and Exchange Commission (SEC) that allows us to access the debt markets.

NON-GAAP FINANCIAL MEASURE - FREE CASH FLOW
We emphasize the efficient conversion of net earnings into cash and the deployment of that cash to maximize shareholder returns. As described below, we use free cash flow to measure our performance in these areas. While we believe this metric provides useful information, it is not a defined operating measure under U.S. generally accepted accounting principles (GAAP), and there are limitations associated with its use. Our calculation of this metric may not be completely comparable to similarly
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titled measures of other companies due to potential differences in the method of calculation. As a result, the use of this metric should not be considered in isolation from, or as a substitute for, GAAP measures.
We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management. The following table reconciles free cash flow with net cash from operating activities, as classified on the Consolidated Statement of Cash Flows in Part I, Item 1:
Nine Months EndedSeptember 29, 2024October 1, 2023
Net cash provided by operating activities$1,952 $3,514 
Capital expenditures(561)(600)
Free cash flow$1,391 $2,914 
Cash flows as a percentage of net earnings:
Net cash provided by operating activities74 %152 %
Free cash flow53 %126 %

ADDITIONAL FINANCIAL INFORMATION

ENVIRONMENTAL MATTERS AND OTHER CONTINGENCIES
For a discussion of environmental matters and other contingencies, see Note J to the unaudited Consolidated Financial Statements in Part I, Item 1. Except as otherwise noted in Note J, we do not expect our aggregate liability with respect to these matters to have a material impact on our results of operations, financial condition or cash flows.

APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Management’s Discussion and Analysis of Financial Condition and Results of Operations is based on the unaudited Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of financial statements in accordance with GAAP requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. We employ judgment in making our estimates, but they are based on historical experience, currently available information and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. We believe our judgment is applied consistently and produces financial information that fairly depicts our results of operations for all periods presented.
Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. 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. The aggregate impact of adjustments in
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contract estimates decreased our operating earnings (and diluted earnings per share) by $12 ($0.03) for the three-month period ended September 29, 2024, and increased our operating earnings (and diluted earnings per share) by $101 ($0.29) for the nine-month period ended September 29, 2024, and $11 ($0.03) and $98 ($0.28) for the three- and nine-month periods ended October 1, 2023, respectively. No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three- and nine-month periods ended September 29, 2024, or October 1, 2023.
Other critical accounting policies and estimates include long-lived assets and goodwill, commitments and contingencies, and retirement plans. For a full discussion of our critical accounting policies and estimates, see our Annual Report on Form 10-K for the year ended December 31, 2023.

GUARANTOR FINANCIAL INFORMATION
The outstanding notes described in Note H to the unaudited Consolidated Financial Statements in Part I, Item 1, issued by General Dynamics Corporation (the parent), are fully and unconditionally guaranteed on an unsecured, joint and several basis by several of the parent’s 100%-owned subsidiaries (the guarantors). The guarantee of each guarantor ranks equally in right of payment with all other existing and future senior unsecured indebtedness of such guarantor. A listing of the guarantors is included in an exhibit to this Form 10-Q.
Because the parent is a holding company, its cash flow and ability to service its debt, including the outstanding notes, depends on the performance of its subsidiaries and the ability of those subsidiaries to distribute cash to the parent, whether by dividends, loans or otherwise. Holders of the outstanding notes have a direct claim only against the parent and the guarantors.
Under the relevant indenture, the guarantee of each guarantor is limited to the maximum amount that can be guaranteed without rendering the guarantee voidable under applicable laws relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally. Each indenture also provides that, in the event (1) of a merger, consolidation or sale or disposition of all or substantially all of the assets of a guarantor (other than a transaction with the parent or any of its subsidiaries) or (2) there occurs a transfer, sale or other disposition of the voting stock of a guarantor so that the guarantor is no longer a subsidiary of the parent, then the guarantor or the entity acquiring the assets (in the event of a sale or other disposition of all or substantially all of the assets of a guarantor) will be released and relieved of any obligations under the guarantee.
The following summarized financial information presents the parent and guarantors (collectively, the combined obligor group) on a combined basis. The summarized financial information of the combined obligor group excludes net investment in and earnings of subsidiaries related to interests held by the combined obligor group in subsidiaries that are not guarantors of the notes.
STATEMENT OF EARNINGS INFORMATION - COMBINED OBLIGOR GROUP
Nine Months Ended September 29, 2024Year Ended
December 31, 2023
Revenue$13,569 $16,276 
Operating costs and expenses, excluding G&A(12,018)(14,316)
Net earnings615 773 
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BALANCE SHEET INFORMATION - COMBINED OBLIGOR GROUP
September 29, 2024December 31, 2023
Cash and equivalents$1,111 $986 
Other current assets4,709 5,012 
Noncurrent assets4,681 4,506 
Total assets$10,501 $10,504 
Short-term debt and current portion of long-term debt$2,002 $503 
Other current liabilities2,987 2,890 
Long-term debt7,207 8,700 
Other noncurrent liabilities3,154 3,281 
Total liabilities$15,350 $15,374 
The summarized balance sheet information presented above includes the funded status of the company’s primary qualified U.S. government pension plans as the parent has the ultimate obligation for the plans.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes with respect to this item from the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES
Our management, under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of September 29, 2024. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, on September 29, 2024, our disclosure controls and procedures were effective.
There were no changes in our internal control over financial reporting that occurred during the quarter ended September 29, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
The certifications of the company’s Chief Executive Officer and Chief Financial Officer required under Section 302 of the Sarbanes-Oxley Act have been filed as Exhibits 31.1 and 31.2 to this report.

FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q contains forward-looking statements, which are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify forward-looking statements. Examples include projections of revenue, earnings, operating margin, segment performance, cash flows, contract awards, aircraft production, deliveries and backlog. In making these statements, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions
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and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. These factors include, among others:
•general U.S. and international political and economic conditions;
•decreases in U.S. government defense spending or changing priorities within the defense budget;
•termination of government contracts due to unilateral government action;
•differences in anticipated and actual program performance, including the ability to perform within estimated costs, and performance issues with key suppliers;
•expected recovery on contract claims and requests for equitable adjustment;
•changing customer demand for business aircraft, including the effects of economic conditions on the business-aircraft market;
•changing prices for energy and raw materials;
•the negative impact of the COVID-19 pandemic, or other similar outbreaks;
•the status or outcome of legal and/or regulatory proceedings;
•potential effects of audits and reviews by government agencies of our government contract performance, compliance and internal control systems and policies;
•cybersecurity events and other disruptions;
•risks and uncertainties relating to our acquisitions and joint ventures; and
•potential for increased regulation related to global climate change.
All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to General Dynamics or any person acting on our behalf are qualified by the cautionary statements in this section. We do not undertake any obligation to update or publicly release revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this report. These factors may be revised or supplemented in future SEC filings.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
For information relating to legal proceedings, see Note J to the unaudited Consolidated Financial Statements in Part I, Item 1.

ITEM 1A. RISK FACTORS
There have been no material changes with respect to this item from the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table provides information about our third-quarter purchases of equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended:
PeriodTotal Number of SharesAverage Price per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramMaximum Number of Shares That May Yet Be Purchased Under the Program
Shares Purchased Pursuant to Share Buyback Program
7/1/24-7/28/2417,300 $288.77 17,300 4,159,557 
7/29/24-8/25/24132,533 287.31 132,533 4,027,024 
8/26/24-9/29/241,892 290.00 1,892 4,025,132 
Shares Delivered or Withheld Pursuant to Restricted Stock Vesting*
7/1/24-7/28/24527 289.80 
7/29/24-8/25/24806 296.57 
8/26/24-9/29/241,256 296.38 
154,314 $287.64 
*Represents shares withheld by, or delivered to, us pursuant to provisions in agreements with recipients of restricted stock granted under our equity compensation plans that allow us to withhold, or the recipient to deliver to us, the number of shares with a fair value equal to the statutory tax withholding due upon vesting of the restricted shares.
We did not make any unregistered sales of equity securities in the third quarter of 2024.

ITEM 5. OTHER INFORMATION
During the quarter ended September 29, 2024, none of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as such terms are defined under Item 408 of Regulation S-K).
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ITEM 6. EXHIBITS

101.INS    Inline eXtensible Business Reporting Language (XBRL) Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH    Inline XBRL Taxonomy Extension Schema Document*
101.CAL    Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF    Inline XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB    Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE    Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104    Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)

*    Filed or furnished electronically herewith.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GENERAL DYNAMICS CORPORATION
by/s/ William A. Moss
William A. Moss
Vice President and Controller
(Authorized Officer and Chief Accounting Officer)
Dated: October 23, 2024

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Exhibit 31.1
CERTIFICATION BY CEO PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Phebe N. Novakovic, certify that:
1.I have reviewed this quarterly report on Form 10-Q of General Dynamics Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 
Date:October 23, 2024/s/ Phebe N. Novakovic
Phebe N. Novakovic
Chairman and Chief Executive Officer


 


Exhibit 31.2
CERTIFICATION BY CFO PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Kimberly A. Kuryea, certify that:
1.I have reviewed this quarterly report on Form 10-Q of General Dynamics Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:October 23, 2024/s/ Kimberly A. Kuryea
Kimberly A. Kuryea
Senior Vice President and Chief Financial Officer



Exhibit 32.1
CERTIFICATION BY CEO PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of General Dynamics Corporation (the Company) on Form 10-Q for the quarter ended September 29, 2024, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Phebe N. Novakovic, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Date:October 23, 2024/s/ Phebe N. Novakovic
Phebe N. Novakovic
Chairman and Chief Executive Officer







Exhibit 32.2
CERTIFICATION BY CFO PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of General Dynamics Corporation (the Company) on Form 10-Q for the quarter ended September 29, 2024, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Kimberly A. Kuryea, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Date:October 23, 2024/s/  Kimberly A. Kuryea
Kimberly A. Kuryea
Senior Vice President and Chief Financial Officer





v3.24.3
Cover
 9 Months Ended
Sep. 29, 2024
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Sep. 29, 2024
Document Transition Report false
Entity File Number 1-3671
Entity Registrant Name GENERAL DYNAMICS CORPORATION
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 13-1673581
Entity Address, Address Line One 11011 Sunset Hills Road
Entity Address, City or Town Reston,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 20190
City Area Code 703
Local Phone Number 876-3000
Title of 12(b) Security Common Stock
Trading Symbol GD
Security Exchange Name NYSE
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 274,968,619
Entity Central Index Key 0000040533
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q3
Amendment Flag false
v3.24.3
Consolidated Statement of Earnings (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Revenue:        
Total revenue $ 11,671 $ 10,571 $ 34,378 $ 30,604
Operating costs and expenses:        
General and administrative (G&A) (635) (601) (1,906) (1,792)
Operating costs and expenses, total (10,490) (9,514) (31,005) (27,647)
Operating earnings 1,181 1,057 3,373 2,957
Other, net 15 19 47 65
Interest, net (82) (85) (248) (265)
Earnings before income tax 1,114 991 3,172 2,757
Provision for income tax, net (184) (155) (538) (447)
Net earnings $ 930 $ 836 $ 2,634 $ 2,310
Earnings per share        
Basic (in dollars per share) $ 3.39 $ 3.07 $ 9.61 $ 8.45
Diluted (in dollars per share) $ 3.35 $ 3.04 $ 9.49 $ 8.39
Products        
Revenue:        
Total revenue $ 6,767 $ 6,163 $ 20,061 $ 17,473
Operating costs and expenses:        
Cost of sales (5,760) (5,148) (17,074) (14,704)
Services        
Revenue:        
Total revenue 4,904 4,408 14,317 13,131
Operating costs and expenses:        
Cost of sales $ (4,095) $ (3,765) $ (12,025) $ (11,151)
v3.24.3
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Statement of Comprehensive Income [Abstract]        
Net earnings $ 930 $ 836 $ 2,634 $ 2,310
Changes in unrealized cash flow hedges 31 (14) (31) (33)
Foreign currency translation adjustments 279 (128) (16) 63
Changes in retirement plans’ funded status 44 169 125 526
Other comprehensive income, pretax 354 27 78 556
Provision for income tax, net (19) (30) (18) (102)
Other comprehensive income (loss), net of tax 335 (3) 60 454
Comprehensive income $ 1,265 $ 833 $ 2,694 $ 2,764
v3.24.3
Consolidated Balance Sheet - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Current assets:    
Cash and equivalents $ 2,101 $ 1,913
Accounts receivable 3,165 3,004
Unbilled receivables 8,852 7,997
Inventories 10,141 8,578
Other current assets 1,484 2,123
Total current assets 25,743 23,615
Noncurrent assets:    
Property, plant and equipment, net 6,324 6,198
Intangible assets, net 1,583 1,656
Goodwill [1] 20,757 20,586
Other assets 2,905 2,755
Total noncurrent assets 31,569 31,195
Total assets 57,312 54,810
Current liabilities:    
Short-term debt and current portion of long-term debt 2,005 507
Accounts payable 3,290 3,095
Customer advances and deposits 10,925 9,564
Other current liabilities 3,337 3,266
Total current liabilities 19,557 16,432
Noncurrent liabilities:    
Long-term debt 7,262 8,754
Other liabilities 7,520 8,325
Commitments and contingencies (see Note J)
Total noncurrent liabilities 14,782 17,079
Shareholders’ equity:    
Common stock 482 482
Surplus 3,997 3,760
Retained earnings 40,730 39,270
Treasury stock (21,137) (21,054)
Accumulated other comprehensive loss (1,099) (1,159)
Total shareholders’ equity 22,973 21,299
Total liabilities and shareholders’ equity $ 57,312 $ 54,810
[1] Goodwill in the Technologies reporting unit was net of $1.8 billion of accumulated impairment losses.
v3.24.3
Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Cash flows from operating activities – continuing operations:    
Net earnings $ 2,634 $ 2,310
Adjustments to reconcile net earnings to net cash from operating activities:    
Depreciation of property, plant and equipment 469 446
Amortization of intangible and finance lease right-of-use assets 177 195
Equity-based compensation expense 137 136
Deferred income tax benefit (107) (158)
(Increase) decrease in assets, net of effects of business acquisitions:    
Accounts receivable (172) (89)
Unbilled receivables (874) 448
Inventories (1,612) (1,904)
Increase (decrease) in liabilities, net of effects of business acquisitions:    
Accounts payable 193 (83)
Customer advances and deposits 628 2,171
Other, net 479 42
Net cash provided by operating activities 1,952 3,514
Cash flows from investing activities:    
Capital expenditures (561) (600)
Other, net (27) (8)
Net cash used by investing activities (588) (608)
Cash flows from financing activities:    
Dividends paid (1,140) (1,068)
Purchases of common stock (183) (434)
Repayment of fixed-rate notes 0 (1,250)
Other, net 150 (40)
Net cash used by financing activities (1,173) (2,792)
Net cash used by discontinued operations (3) (4)
Net increase in cash and equivalents 188 110
Cash and equivalents at beginning of period 1,913 1,242
Cash and equivalents at end of period 2,101 1,352
Supplemental cash flow information:    
Income tax payments, net (125) (493)
Interest payments $ (213) $ (224)
v3.24.3
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock, Par
Common Stock, Surplus
Retained Earnings
Treasury Stock, Common
Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2022 $ 18,568 $ 482 $ 3,556 $ 37,403 $ (20,721) $ (2,152)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 2,310     2,310    
Cash dividends declared (1,087)     (1,087)    
Equity-based awards 146   115   31  
Shares purchased (434)       (434)  
Other comprehensive income (loss) 454         454
Ending balance at Oct. 01, 2023 19,957 482 3,671 38,626 (21,124) (1,698)
Beginning balance at Jul. 02, 2023 19,478 482 3,614 38,154 (21,077) (1,695)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 836     836    
Cash dividends declared (364)     (364)    
Equity-based awards 66   57   9  
Shares purchased (56)       (56)  
Other comprehensive income (loss) (3)         (3)
Ending balance at Oct. 01, 2023 19,957 482 3,671 38,626 (21,124) (1,698)
Beginning balance at Dec. 31, 2023 21,299 482 3,760 39,270 (21,054) (1,159)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 2,634     2,634    
Cash dividends declared (1,174)     (1,174)    
Equity-based awards 337   237   100  
Shares purchased (183)       (183)  
Other comprehensive income (loss) 60         60
Ending balance at Sep. 29, 2024 22,973 482 3,997 40,730 (21,137) (1,099)
Beginning balance at Jun. 30, 2024 22,036 482 3,925 40,191 (21,128) (1,434)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 930     930    
Cash dividends declared (391)     (391)    
Equity-based awards 107   72   35  
Shares purchased (44)       (44)  
Other comprehensive income (loss) 335         335
Ending balance at Sep. 29, 2024 $ 22,973 $ 482 $ 3,997 $ 40,730 $ (21,137) $ (1,099)
v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 29, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies 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 September 29, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
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 September 29, 2024, and October 1, 2023.
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, 2023.
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:
September 29, 2024December 31, 2023
PP&E$13,393 $13,000 
Accumulated depreciation(7,069)(6,802)
PP&E, net$6,324 $6,198 
Recent Accounting Pronouncements. For a discussion of accounting standards that have been issued by the Financial Accounting Standards Board (FASB) but are not yet effective, refer to the Recent Accounting Pronouncements section in our Annual Report on Form 10-K for the year ended
December 31, 2023. These standards are not expected to have a material impact on our results of operations, financial condition or cash flows.
v3.24.3
Revenue
 9 Months Ended
Sep. 29, 2024
Revenue Recognition [Abstract]  
Revenue 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 customer 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 78% of our revenue for the three- and nine-month periods ended September 29, 2024, respectively, and 79% and 80% for the three- and nine-month periods ended October 1, 2023, 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 22% of our revenue for the three- and nine-month periods ended September 29, 2024, respectively, and 21% and 20% for the three- and nine-month periods ended October 1, 2023, 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 September 29, 2024, we had $92.6 billion of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately 55% of our remaining performance obligations as revenue by year-end 2025, an additional 30% by year-end 2027 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. 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.
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 informed 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 changed our revenue, operating earnings and diluted earnings per share as follows:
Three Months EndedNine Months Ended
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Revenue$62 $27 $211 $179 
Operating earnings(12)11 101 98 
Diluted earnings per share$(0.03)$0.03 $0.29 $0.28 
No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three- and nine-month periods ended September 29, 2024, or October 1, 2023.
We have large, long-term contracts with the U.S. Navy for Virginia-class submarines and an international customer for tracked vehicles in which our estimates for contract revenue include variable consideration from anticipated contract modifications. For both contracts, it is reasonably possible that the actual amount of variable consideration realized could be less than our estimate, which could have a material unfavorable impact on our results of operations.
In addition, during the quarter the Navy was informed of deficiencies in welding procedures conducted by our teammate and subcontractor on our Columbia-class and Virginia-class submarine programs. It is reasonably possible that addressing these deficiencies could potentially impose costs or
schedule delays not accounted for in our estimates related to our long-term contracts with the Navy for the construction of submarines.
Revenue by Category. Our portfolio of products and services consists of more than 9,000 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
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Aircraft manufacturing$1,686 $1,348 $5,014 $3,715 
Aircraft services796 684 2,492 2,162 
Total Aerospace2,482 2,032 7,506 5,877 
Nuclear-powered submarines2,630 2,027 7,496 6,186 
Surface ships658 697 2,023 2,016 
Repair and other services311 278 864 851 
Total Marine Systems3,599 3,002 10,383 9,053 
Military vehicles1,295 1,280 3,850 3,707 
Weapons systems, armament and munitions658 739 2,033 1,650 
Engineering and other services259 205 719 547 
Total Combat Systems2,212 2,224 6,602 5,904 
Information technology (IT) services2,220 2,149 6,556 6,445 
C5ISR* solutions1,158 1,164 3,331 3,325 
Total Technologies3,378 3,313 9,887 9,770 
Total revenue$11,671 $10,571 $34,378 $30,604 
*Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance
Revenue by contract type was as follows:
Three Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$2,250 $1,666 $1,957 $1,359 $7,232 
Cost-reimbursement— 1,933 238 1,503 3,674 
Time-and-materials232 — 17 516 765 
Total revenue$2,482 $3,599 $2,212 $3,378 $11,671 
Three Months Ended October 1, 2023
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 
Nine Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$6,772 $4,893 $5,844 $4,033 $21,542 
Cost-reimbursement— 5,489 706 4,350 10,545 
Time-and-materials734 1 52 1,504 2,291 
Total revenue$7,506 $10,383 $6,602 $9,887 $34,378 
Nine Months Ended October 1, 2023
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 
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.
Revenue by customer was as follows:
Three Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
Department of Defense (DoD)$83 $3,571 $1,274 $1,981 $6,909 
Non-DoD— — 1 1,238 1,239 
Foreign military sales (FMS)9 28 211 7 255 
Total U.S. government92 3,599 1,486 3,226 8,403 
U.S. commercial1,586 — 61 48 1,695 
Non-U.S. government294 — 631 98 1,023 
Non-U.S. commercial510 — 34 6 550 
Total revenue$2,482 $3,599 $2,212 $3,378 $11,671 
Three Months Ended October 1, 2023
U.S. government:
DoD$46 $2,970 $1,309 $1,914 $6,239 
Non-DoD— 1 3 1,212 1,216 
FMS14 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 
Nine Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
DoD$187 $10,280 $3,742 $5,767 $19,976 
Non-DoD— 1 6 3,586 3,593 
FMS30 98 675 28 831 
Total U.S. government217 10,379 4,423 9,381 24,400 
U.S. commercial4,225 2 180 146 4,553 
Non-U.S. government989 2 1,890 326 3,207 
Non-U.S. commercial2,075 — 109 34 2,218 
Total revenue$7,506 $10,383 $6,602 $9,887 $34,378 
Nine Months Ended October 1, 2023
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 
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 September 29, 2024, were not materially impacted by any other factors.
Revenue recognized for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, that was included in the contract liability balance at the beginning of each year was $1.1 billion and $4.5 billion, and $869 and $3.5 billion, respectively. This revenue represented primarily the sale of business jet aircraft.
v3.24.3
Earnings Per Share
 9 Months Ended
Sep. 29, 2024
Earnings Per Share [Abstract]  
Earnings Per Share 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. 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
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Basic weighted average shares outstanding274,393 272,585 274,004 273,242 
Dilutive effect of stock options and restricted stock/RSUs*3,495 2,160 3,514 2,204 
Diluted weighted average shares outstanding277,888 274,745 277,518 275,446 
*    Excludes unvested stock options, and vested stock options 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 1,277 and 962 for the three- and nine-month periods ended September 29, 2024, and 4,464 and 4,101 for the three- and nine-month periods ended October 1, 2023, respectively.
v3.24.3
Income Taxes
 9 Months Ended
Sep. 29, 2024
Income Tax Disclosure [Abstract]  
Income Taxes 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:
September 29, 2024December 31, 2023
Deferred tax asset$28 $28 
Deferred tax liability(581)(655)
Net deferred tax liability$(553)$(627)
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 tax years ending December 31, 2023, and December 31, 2024, the IRS placed us in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant the continual use of IRS examination resources.
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 September 29, 2024, 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.
The Organization for Economic Co-operation and Development has issued “Pillar Two” model rules introducing a new global minimum tax of 15% on a country-by-country basis, with certain aspects intended to be effective on January 1, 2024, and other aspects on January 1, 2025. Although it is uncertain whether the U.S. will adopt any Pillar Two rules, some countries have enacted, introduced, or are considering implementing legislation. Because we generally do not have material operations in jurisdictions with tax rates lower than the proposed Pillar Two minimum, any legislation enacted consistent with the Pillar Two model rules is not expected to have a material effect on our results of operations, financial condition or cash flows.
v3.24.3
Unbilled Receivables
 9 Months Ended
Sep. 29, 2024
Contractors [Abstract]  
Unbilled Receivables 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:
September 29, 2024December 31, 2023
Unbilled revenue$41,814 $40,552 
Advances and progress billings(32,962)(32,555)
Net unbilled receivables$8,852 $7,997 
On September 29, 2024, and December 31, 2023, net unbilled receivables included $1.4 billion and $1.2 billion, respectively, associated with a large international tracked vehicle contract in our Combat Systems segment. The contract, signed in 2010, experienced an unbilled receivable build-up in 2021 and 2022. The customer resumed payments on the contract in the first quarter of 2023.
v3.24.3
Inventories
 9 Months Ended
Sep. 29, 2024
Inventory Disclosure [Abstract]  
Inventories 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.
Inventories consisted of the following:
September 29, 2024December 31, 2023
Work in process$6,767 $5,655 
Raw materials3,283 2,886 
Finished goods29 22 
Pre-owned aircraft62 15 
Total inventories$10,141 $8,578 
The increase in total inventories during the nine-month period ended September 29, 2024, was due primarily to the ramp-up in production of new Gulfstream aircraft models, including the G700 that began deliveries in the second quarter of 2024, as well as increased production of in-service aircraft reflecting strong customer demand. Customer deposits associated with firm orders for these aircraft, which are reported in customer advances and deposits and other noncurrent liabilities on the Consolidated Balance Sheet, also increased.
v3.24.3
Goodwill and Intangible Assets
 9 Months Ended
Sep. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets 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, 2023 (a)
$3,199 $297 $2,812 $14,278 $20,586 
Acquisitions (b)7 — 39 156 202 
Other (c)(6)— (22)(3)(31)
September 29, 2024 (a)
$3,200 $297 $2,829 $14,431 $20,757 
(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
September 29, 2024December 31, 2023
Contract and program intangible assets (b)$3,295 $(1,960)$1,335 $3,256 $(1,868)$1,388 
Trade names and trademarks540 (302)238 542 (288)254 
Technology and software62 (52)10 65 (51)14 
Other intangible assets60 (60)— 64 (64)— 
Total intangible assets$3,957 $(2,374)$1,583 $3,927 $(2,271)$1,656 
(a)Changes in gross carrying amounts consisted primarily of adjustments for acquired and divested intangible assets and 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 $45 and $134 for the three- and nine-month periods ended September 29, 2024, and $47 and $147 for the three- and nine-month periods ended October 1, 2023, respectively.
v3.24.3
Debt
 9 Months Ended
Sep. 29, 2024
Debt Disclosure [Abstract]  
Debt DEBT
Debt consisted of the following:
September 29, 2024December 31, 2023
Fixed-rate notes due:Interest rate:
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 
OtherVarious85 90 
Total debt principal9,335 9,340 
Less unamortized debt issuance costs and discounts68 79 
Total debt9,267 9,261 
Less current portion2,005 507 
Long-term debt$7,262 $8,754 
On September 29, 2024, 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 September 29, 2024.
v3.24.3
Other Liabilities
 9 Months Ended
Sep. 29, 2024
Other Liabilities Disclosure [Abstract]  
Other Liabilities OTHER LIABILITIES
A summary of significant other liabilities by balance sheet caption follows:
September 29, 2024December 31, 2023
Salaries and wages$1,180 $1,191 
Dividends payable391 362 
Lease liabilities324 325 
Workers’ compensation247 237 
Other1,195 1,151 
Total other current liabilities$3,337 $3,266 
Retirement benefits$2,058 $2,219 
Customer deposits on commercial contracts1,847 2,576 
Lease liabilities1,576 1,497 
Other2,039 2,033 
Total other liabilities$7,520 $8,325 
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 29, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Litigation
On October 6, 2023, a putative class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against General Dynamics Corporation, certain of its subsidiaries and various other companies alleging that they conspired, in violation of the Sherman Act, not to solicit naval architects and marine engineers from each other. The named plaintiffs purport to represent a class of individuals consisting of all naval architects and marine engineers employed by the shipyard and consultancy defendants, their predecessors, their subsidiaries and/or their related entities in the United States at any time since January 1, 2000. The plaintiffs allege that the conspiracy suppressed compensation paid to the putative class members, and the plaintiffs seek trebled monetary damages, attorneys’ fees, injunctive and other equitable relief. We are defending the matter. On April 19, 2024, the District Court dismissed the plaintiffs’ complaint. Plaintiffs initiated an appeal of the dismissal of their complaint to the U.S. Court of Appeals for the Fourth Circuit on May 20, 2024. Given the current status of this matter, 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 this matter, 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 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 $1.8 billion on September 29, 2024. 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 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 September 29, 2024, 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 September 29, 2024, and October 1, 2023, were as follows:
Nine Months EndedSeptember 29, 2024October 1, 2023
Beginning balance$597 $603 
Warranty expense84 57 
Payments(76)(74)
Adjustments9 5 
Ending balance$614 $591 
v3.24.3
Shareholders' Equity
 9 Months Ended
Sep. 29, 2024
Equity [Abstract]  
Shareholders' Equity SHAREHOLDERS’ EQUITY
Share Repurchases. In the nine-month period ended September 29, 2024, we repurchased 0.7 million of our outstanding shares for $183. On September 29, 2024, 4 million shares remained authorized by our board of directors (Board) for repurchase, representing 1.5% of our total shares outstanding. We repurchased 2 million shares for $434 in the nine-month period ended October 1, 2023.
Dividends per Share. Our Board declared dividends per share of $1.42 and $4.26 for the three- and nine-month periods ended September 29, 2024, and $1.32 and $3.96 for the three- and nine-month periods ended October 1, 2023, respectively. We paid cash dividends of $390 and $1.1 billion for the three- and nine-month periods ended September 29, 2024, and $363 and $1.1 billion for the three- and nine-month periods ended October 1, 2023, respectively.
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, 2023$11 $673 $(1,843)$(1,159)
Other comprehensive income, pretax(31)(16)125 78 
Provision for income tax, net7 — (25)(18)
Other comprehensive income, net of tax(24)(16)100 60 
September 29, 2024$(13)$657 $(1,743)$(1,099)
December 31, 2022$4 $260 $(2,416)$(2,152)
Other comprehensive income, pretax(33)63 526 556 
Provision for income tax, net8 — (110)(102)
Other comprehensive income, net of tax(25)63 416 454 
October 1, 2023$(21)$323 $(2,000)$(1,698)
Amounts reclassified out of AOCL related primarily to changes in our retirement plans’ funded status and included pretax recognized net actuarial losses and amortization of prior service credit. See Note O for these amounts, which are included in our net periodic pension and other post-retirement benefit cost (credit).
v3.24.3
Segment Information
 9 Months Ended
Sep. 29, 2024
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We have four operating segments: Aerospace, Marine Systems, Combat Systems and Technologies. We organize our segments in accordance with the nature of products and services offered. We measure each segment’s profitability based on operating earnings. As a result, we do not allocate net interest, other income and expense items, and income taxes to our segments.
Summary financial information for each of our segments follows:
Revenue (a)Operating Earnings
Three Months EndedSeptember 29, 2024October 1, 2023September 29, 2024October 1, 2023
Aerospace$2,482 $2,032 $305 $268 
Marine Systems3,599 3,002 258 211 
Combat Systems2,212 2,224 325 300 
Technologies3,378 3,313 326 315 
Corporate (b)— — (33)(37)
Total$11,671 $10,571 $1,181 $1,057 
Nine Months Ended
Aerospace$7,506 $5,877 $879 $733 
Marine Systems10,383 9,053 735 657 
Combat Systems6,602 5,904 920 796 
Technologies9,887 9,770 941 897 
Corporate (b)— — (102)(126)
Total$34,378 $30,604 $3,373 $2,957 
(a)See Note B for additional revenue information by segment.
(b)Corporate operating costs consisted primarily of equity-based compensation expense.
v3.24.3
Fair Value
 9 Months Ended
Sep. 29, 2024
Fair Value Disclosures [Abstract]  
Fair Value FAIR VALUE
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels:
•Level 1 – quoted prices in active markets for identical assets or liabilities.
•Level 2 – inputs, other than quoted prices, observable by a marketplace participant either directly or indirectly.
•Level 3 – unobservable inputs significant to the fair value measurement.
We did not have any significant non-financial assets or liabilities measured at fair value on September 29, 2024, or December 31, 2023.
Our financial instruments include cash and equivalents, accounts receivable and payable, marketable securities held in trust and other investments, short- and long-term debt, and derivative financial instruments. The carrying values of cash and equivalents and accounts receivable and payable on the Consolidated Balance Sheet approximate their fair value. The following tables present the fair values of our other financial assets and liabilities on September 29, 2024, and December 31, 2023, and the basis for determining their fair values:
Carrying
Value		Fair
Value		Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Financial Assets (Liabilities)September 29, 2024
Measured at fair value:
Marketable securities held in trust:
Cash and equivalents$3 $3 $— $3 $— 
Available-for-sale debt securities132 132 — 132 — 
Commingled equity funds50 50 50 — — 
Commingled fixed-income funds6 6 6 — — 
Other investments45 45 28 — 17 
Cash flow hedge assets64 64 — 64 — 
Cash flow hedge liabilities(65)(65)— (65)— 
Measured at amortized cost:
Short- and long-term debt principal(9,335)(8,876)— (8,876)— 
December 31, 2023
Measured at fair value:
Marketable securities held in trust:
Cash and equivalents$21 $21 $— $21 $— 
Available-for-sale debt securities115 115 — 115 — 
Commingled equity funds49 49 49 — — 
Commingled fixed-income funds6 6 6 — — 
Other investments40 40 23 — 17 
Cash flow hedge assets109 109 — 109 — 
Cash flow hedge liabilities(61)(61)— (61)— 
Measured at amortized cost:
Short- and long-term debt principal(9,340)(8,764)— (8,764)— 
Our Level 1 assets include commingled equity and fixed-income funds that are valued using a unit price or net asset value (NAV). These funds are actively traded and valued using quoted prices for identical securities from the market exchanges. The fair value of our Level 2 assets and liabilities, which consist primarily of fixed-income securities, cash flow hedges and our fixed-rate notes, is determined under a market approach using valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. Our Level 3 assets include direct private equity investments that are measured using inputs unobservable to a marketplace participant.
v3.24.3
Derivative Financial Instruments and Hedging Activities
 9 Months Ended
Sep. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Hedging Activities DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
We are exposed to market risk, primarily from foreign currency exchange rates, commodity prices and investments. We may use derivative financial instruments to hedge some of these risks as described below. We do not use derivative financial instruments for trading or speculative purposes.
Foreign Currency Risk. Our foreign currency exchange rate risk relates to receipts from customers, payments to suppliers and intercompany transactions denominated in foreign currencies. To the extent possible, we include terms in our contracts that are designed to protect us from this risk. Otherwise, we
enter into derivative financial instruments, principally foreign currency forward purchase and sale contracts, designed to offset and minimize our risk. The dollar-weighted one-year average maturity of these instruments generally matches the duration of the activities that are at risk.
Commodity Price Risk. We are subject to commodity price risk, primarily on long-term, fixed-price contracts. To the extent possible, we include terms in our contracts that are designed to protect us from these risks. Some of the protective terms included in our contracts are considered derivative financial instruments but are not accounted for separately, because they are clearly and closely related to the host contract. We have not entered into any material commodity hedging contracts but may do so as circumstances warrant. We do not believe that changes in commodity prices will have a material impact on our results of operations or cash flows.
Investment Risk. Our investment policy allows for purchases of fixed-income securities with an investment-grade rating and a maximum maturity of up to five years. On September 29, 2024, and December 31, 2023, we held $2.1 billion and $1.9 billion in cash and equivalents, respectively, but held no material marketable securities other than those held in trust to meet some of our obligations under workers’ compensation and non-qualified pension plans. On September 29, 2024, and December 31, 2023, we held marketable securities in trust of $191. These marketable securities are reflected at fair value on the Consolidated Balance Sheet in other current and noncurrent assets. See Note M for additional details.
Hedging Activities. We had notional forward exchange contracts outstanding of $7.1 billion and $5.7 billion on September 29, 2024, and December 31, 2023, respectively. These derivative financial instruments are cash flow hedges, and are reflected at fair value on the Consolidated Balance Sheet in other current assets and liabilities. See Note M for additional details.
Changes in fair value (gains and losses) related to derivative financial instruments that qualify as cash flow hedges are deferred in AOCL until the underlying transaction is reflected in earnings. Alternatively, gains and losses on derivative financial instruments that do not qualify for hedge accounting are recorded each period in earnings. All gains and losses from derivative financial instruments recognized in the Consolidated Statement of Earnings are presented in the same line item as the underlying transaction, generally operating costs and expenses.
Net gains and losses recognized in earnings on derivative financial instruments that do not qualify for hedge accounting were not material to our results of operations for the three- and nine-month periods ended September 29, 2024, and October 1, 2023. Net gains and losses reclassified to earnings from AOCL related to qualified hedges were also not material to our results of operations for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, and we do not expect the amount of these gains and losses that will be reclassified to earnings during the next 12 months to be material.
We had no material derivative financial instruments designated as fair value or net investment hedges on September 29, 2024, and December 31, 2023.
Foreign Currency Financial Statement Translation. We translate foreign currency balance sheets from our international businesses’ functional currency (generally the respective local currency) to U.S. dollars at the end-of-period exchange rates, and statements of earnings at the average exchange rates for each period. The resulting foreign currency translation adjustments are a component of AOCL.
We do not hedge the fluctuation in reported revenue and earnings resulting from the translation of these international operations’ results into U.S. dollars. The impact of translating our non-U.S. operations’ revenue and earnings into U.S. dollars was not material to our results of operations for the
three- and nine-month periods ended September 29, 2024, and October 1, 2023. In addition, the effect of changes in foreign exchange rates on non-U.S. cash balances was not material for the nine-month periods ended September 29, 2024, and October 1, 2023.
v3.24.3
Retirement Plans
 9 Months Ended
Sep. 29, 2024
Retirement Benefits [Abstract]  
Retirement Plans RETIREMENT PLANS
We provide retirement benefits to eligible employees through a variety of plans:
•Defined contribution
•Defined benefit
◦Pension (qualified and non-qualified)
◦Other post-retirement benefit
For our defined benefit plans, net periodic benefit cost (credit) for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, consisted of the following:
Pension BenefitsOther Post-retirement Benefits
Three Months EndedSeptember 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Service cost$19 $17 $1 $1 
Interest cost157 163 7 7 
Expected return on plan assets(206)(207)(8)(8)
Net actuarial loss (gain)48 183 (7)(7)
Prior service (credit) cost(2)(4)1 1 
Net periodic benefit cost (credit) $16 $152 $(6)$(6)
Nine Months Ended
Service cost$56 $50 $3 $3 
Interest cost471 488 21 22 
Expected return on plan assets(617)(622)(25)(24)
Net actuarial loss (gain)146 550 (23)(23)
Prior service (credit) cost(5)(11)2 2 
Net periodic benefit cost (credit)$51 $455 $(22)$(20)
Our contractual arrangements with the U.S. government provide for the recovery of pension and other post-retirement benefit costs related to employees working on government contracts. The amount allocated to U.S. government contracts is determined in accordance with the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS), which may result in a timing difference with the amount determined under GAAP. We defer this difference on the Consolidated Balance Sheet. At this time, cumulative benefit costs exceed the amount allocated to contracts, and the difference is reported in other current assets. To the extent there is a non-service component of net periodic benefit cost (credit) for our defined benefit plans, it is reported in other income (expense) in the Consolidated Statement of Earnings.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Pay vs Performance Disclosure        
Net earnings $ 930 $ 836 $ 2,634 $ 2,310
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 29, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 29, 2024
Accounting Policies [Abstract]  
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 September 29, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
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 September 29, 2024, and October 1, 2023.
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, 2023.
Recent Accounting Pronouncements For a discussion of accounting standards that have been issued by the Financial Accounting Standards Board (FASB) but are not yet effective, refer to the Recent Accounting Pronouncements section in our Annual Report on Form 10-K for the year ended December 31, 2023. These standards are not expected to have a material impact on our results of operations, financial condition or cash flows.
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 customer 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. 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.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.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. 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.
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 informed 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.Our portfolio of products and services consists of more than 9,000 active contracts. The following series of tables presents our revenue disaggregated by several categories.
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.
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.
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. 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).
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 tax years ending December 31, 2023, and December 31, 2024, the IRS placed us in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant the continual use of IRS examination resources.
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 September 29, 2024, 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.
The Organization for Economic Co-operation and Development has issued “Pillar Two” model rules introducing a new global minimum tax of 15% on a country-by-country basis, with certain aspects intended to be effective on January 1, 2024, and other aspects on January 1, 2025. Although it is uncertain whether the U.S. will adopt any Pillar Two rules, some countries have enacted, introduced, or are considering implementing legislation. Because we generally do not have material operations in jurisdictions with tax rates lower than the proposed Pillar Two minimum, any legislation enacted consistent with the Pillar Two model rules is not expected to have a material effect on our results of operations, financial condition or cash flows.
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.
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.
Commitments and Contingencies
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 $1.8 billion on September 29, 2024. 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 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 September 29, 2024, 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.
Segment Information We organize our segments in accordance with the nature of products and services offered. We measure each segment’s profitability based on operating earnings. As a result, we do not allocate net interest, other income and expense items, and income taxes to our segments.
Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels:
•Level 1 – quoted prices in active markets for identical assets or liabilities.
•Level 2 – inputs, other than quoted prices, observable by a marketplace participant either directly or indirectly.
•Level 3 – unobservable inputs significant to the fair value measurement.
Our financial instruments include cash and equivalents, accounts receivable and payable, marketable securities held in trust and other investments, short- and long-term debt, and derivative financial instruments. The carrying values of cash and equivalents and accounts receivable and payable on the Consolidated Balance Sheet approximate their fair value.
Our Level 1 assets include commingled equity and fixed-income funds that are valued using a unit price or net asset value (NAV). These funds are actively traded and valued using quoted prices for identical securities from the market exchanges. The fair value of our Level 2 assets and liabilities, which consist primarily of fixed-income securities, cash flow hedges and our fixed-rate notes, is determined under a market approach using valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. Our Level 3 assets include direct private equity investments that are measured using inputs unobservable to a marketplace participant.
Derivative Financial Instruments and Hedging Activities
We are exposed to market risk, primarily from foreign currency exchange rates, commodity prices and investments. We may use derivative financial instruments to hedge some of these risks as described below. We do not use derivative financial instruments for trading or speculative purposes.
Our foreign currency exchange rate risk relates to receipts from customers, payments to suppliers and intercompany transactions denominated in foreign currencies. To the extent possible, we include terms in our contracts that are designed to protect us from this risk. Otherwise, we enter into derivative financial instruments, principally foreign currency forward purchase and sale contracts, designed to offset and minimize our risk. The dollar-weighted one-year average maturity of these instruments generally matches the duration of the activities that are at risk.We are subject to commodity price risk, primarily on long-term, fixed-price contracts. To the extent possible, we include terms in our contracts that are designed to protect us from these risks. Some of the protective terms included in our contracts are considered derivative financial instruments but are not accounted for separately, because they are clearly and closely related to the host contract. We have not entered into any material commodity hedging contracts but may do so as circumstances warrant. We do not believe that changes in commodity prices will have a material impact on our results of operations or cash flows.Our investment policy allows for purchases of fixed-income securities with an investment-grade rating and a maximum maturity of up to five years.Changes in fair value (gains and losses) related to derivative financial instruments that qualify as cash flow hedges are deferred in AOCL until the underlying transaction is reflected in earnings. Alternatively, gains and losses on derivative financial instruments that do not qualify for hedge accounting are recorded each period in earnings. All gains and losses from derivative financial instruments recognized in the Consolidated Statement of Earnings are presented in the same line item as the underlying transaction, generally operating costs and expenses.
Foreign Currency and Financial Statement Translation We translate foreign currency balance sheets from our international businesses’ functional currency (generally the respective local currency) to U.S. dollars at the end-of-period exchange rates, and statements of earnings at the average exchange rates for each period. The resulting foreign currency translation adjustments are a component of AOCL.We do not hedge the fluctuation in reported revenue and earnings resulting from the translation of these international operations’ results into U.S. dollars.
Retirement Plans
We provide retirement benefits to eligible employees through a variety of plans:
•Defined contribution
•Defined benefit
◦Pension (qualified and non-qualified)
◦Other post-retirement benefit
Our contractual arrangements with the U.S. government provide for the recovery of pension and other post-retirement benefit costs related to employees working on government contracts. The amount allocated to U.S. government contracts is determined in accordance with the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS), which may result in a timing difference with the amount determined under GAAP. We defer this difference on the Consolidated Balance Sheet. At this time, cumulative benefit costs exceed the amount allocated to contracts, and the difference is reported in other current assets. To the extent there is a non-service component of net periodic benefit cost (credit) for our defined benefit plans, it is reported in other income (expense) in the Consolidated Statement of Earnings.
v3.24.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 29, 2024
Accounting Policies [Abstract]  
Schedule of 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:
September 29, 2024December 31, 2023
PP&E$13,393 $13,000 
Accumulated depreciation(7,069)(6,802)
PP&E, net$6,324 $6,198 
v3.24.3
Revenue (Tables)
 9 Months Ended
Sep. 29, 2024
Revenue Recognition [Abstract]  
Schedule of Impact of Adjustments in Contract Estimates The aggregate impact of adjustments in contract estimates changed our revenue, operating earnings and diluted earnings per share as follows:
Three Months EndedNine Months Ended
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Revenue$62 $27 $211 $179 
Operating earnings(12)11 101 98 
Diluted earnings per share$(0.03)$0.03 $0.29 $0.28 
Revenue by Major Product Line
Revenue by major products and services was as follows:
Three Months EndedNine Months Ended
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Aircraft manufacturing$1,686 $1,348 $5,014 $3,715 
Aircraft services796 684 2,492 2,162 
Total Aerospace2,482 2,032 7,506 5,877 
Nuclear-powered submarines2,630 2,027 7,496 6,186 
Surface ships658 697 2,023 2,016 
Repair and other services311 278 864 851 
Total Marine Systems3,599 3,002 10,383 9,053 
Military vehicles1,295 1,280 3,850 3,707 
Weapons systems, armament and munitions658 739 2,033 1,650 
Engineering and other services259 205 719 547 
Total Combat Systems2,212 2,224 6,602 5,904 
Information technology (IT) services2,220 2,149 6,556 6,445 
C5ISR* solutions1,158 1,164 3,331 3,325 
Total Technologies3,378 3,313 9,887 9,770 
Total revenue$11,671 $10,571 $34,378 $30,604 
*Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance
Revenue by Contract Type
Revenue by contract type was as follows:
Three Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$2,250 $1,666 $1,957 $1,359 $7,232 
Cost-reimbursement— 1,933 238 1,503 3,674 
Time-and-materials232 — 17 516 765 
Total revenue$2,482 $3,599 $2,212 $3,378 $11,671 
Three Months Ended October 1, 2023
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 
Nine Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
Fixed-price$6,772 $4,893 $5,844 $4,033 $21,542 
Cost-reimbursement— 5,489 706 4,350 10,545 
Time-and-materials734 1 52 1,504 2,291 
Total revenue$7,506 $10,383 $6,602 $9,887 $34,378 
Nine Months Ended October 1, 2023
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 
Revenue by Customer
Revenue by customer was as follows:
Three Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
Department of Defense (DoD)$83 $3,571 $1,274 $1,981 $6,909 
Non-DoD— — 1 1,238 1,239 
Foreign military sales (FMS)9 28 211 7 255 
Total U.S. government92 3,599 1,486 3,226 8,403 
U.S. commercial1,586 — 61 48 1,695 
Non-U.S. government294 — 631 98 1,023 
Non-U.S. commercial510 — 34 6 550 
Total revenue$2,482 $3,599 $2,212 $3,378 $11,671 
Three Months Ended October 1, 2023
U.S. government:
DoD$46 $2,970 $1,309 $1,914 $6,239 
Non-DoD— 1 3 1,212 1,216 
FMS14 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 
Nine Months Ended September 29, 2024AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Revenue
U.S. government:
DoD$187 $10,280 $3,742 $5,767 $19,976 
Non-DoD— 1 6 3,586 3,593 
FMS30 98 675 28 831 
Total U.S. government217 10,379 4,423 9,381 24,400 
U.S. commercial4,225 2 180 146 4,553 
Non-U.S. government989 2 1,890 326 3,207 
Non-U.S. commercial2,075 — 109 34 2,218 
Total revenue$7,506 $10,383 $6,602 $9,887 $34,378 
Nine Months Ended October 1, 2023
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 
v3.24.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 29, 2024
Earnings Per Share [Abstract]  
Basic and Diluted Weighted Average Shares Outstanding
Basic and diluted weighted average shares outstanding were as follows (in thousands):
Three Months EndedNine Months Ended
September 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Basic weighted average shares outstanding274,393 272,585 274,004 273,242 
Dilutive effect of stock options and restricted stock/RSUs*3,495 2,160 3,514 2,204 
Diluted weighted average shares outstanding277,888 274,745 277,518 275,446 
*    Excludes unvested stock options, and vested stock options 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 1,277 and 962 for the three- and nine-month periods ended September 29, 2024, and 4,464 and 4,101 for the three- and nine-month periods ended October 1, 2023, respectively.
v3.24.3
Income Taxes (Tables)
 9 Months Ended
Sep. 29, 2024
Income Tax Disclosure [Abstract]  
Net Deferred Tax Assets and Liabilities Our net deferred tax liability consisted of the following:
September 29, 2024December 31, 2023
Deferred tax asset$28 $28 
Deferred tax liability(581)(655)
Net deferred tax liability$(553)$(627)
v3.24.3
Unbilled Receivables (Tables)
 9 Months Ended
Sep. 29, 2024
Contractors [Abstract]  
Schedule of Unbilled Receivables Unbilled receivables consisted of the following:
September 29, 2024December 31, 2023
Unbilled revenue$41,814 $40,552 
Advances and progress billings(32,962)(32,555)
Net unbilled receivables$8,852 $7,997 
v3.24.3
Inventories (Tables)
 9 Months Ended
Sep. 29, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consisted of the following:
September 29, 2024December 31, 2023
Work in process$6,767 $5,655 
Raw materials3,283 2,886 
Finished goods29 22 
Pre-owned aircraft62 15 
Total inventories$10,141 $8,578 
v3.24.3
Goodwill and Intangible Assets (Tables)
 9 Months Ended
Sep. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill By Reporting Unit The changes in the carrying amount of goodwill by reporting unit were as follows:
AerospaceMarine SystemsCombat SystemsTechnologiesTotal
Goodwill
December 31, 2023 (a)
$3,199 $297 $2,812 $14,278 $20,586 
Acquisitions (b)7 — 39 156 202 
Other (c)(6)— (22)(3)(31)
September 29, 2024 (a)
$3,200 $297 $2,829 $14,431 $20,757 
(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
September 29, 2024December 31, 2023
Contract and program intangible assets (b)$3,295 $(1,960)$1,335 $3,256 $(1,868)$1,388 
Trade names and trademarks540 (302)238 542 (288)254 
Technology and software62 (52)10 65 (51)14 
Other intangible assets60 (60)— 64 (64)— 
Total intangible assets$3,957 $(2,374)$1,583 $3,927 $(2,271)$1,656 
(a)Changes in gross carrying amounts consisted primarily of adjustments for acquired and divested intangible assets and foreign currency translation.
(b)Consisted of acquired backlog and probable follow-on work and associated customer relationships.
v3.24.3
Debt (Tables)
 9 Months Ended
Sep. 29, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
Debt consisted of the following:
September 29, 2024December 31, 2023
Fixed-rate notes due:Interest rate:
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 
OtherVarious85 90 
Total debt principal9,335 9,340 
Less unamortized debt issuance costs and discounts68 79 
Total debt9,267 9,261 
Less current portion2,005 507 
Long-term debt$7,262 $8,754 
v3.24.3
Other Liabilities (Tables)
 9 Months Ended
Sep. 29, 2024
Other Liabilities Disclosure [Abstract]  
Summary of Significant Other Liabilities by Balance Sheet Caption
A summary of significant other liabilities by balance sheet caption follows:
September 29, 2024December 31, 2023
Salaries and wages$1,180 $1,191 
Dividends payable391 362 
Lease liabilities324 325 
Workers’ compensation247 237 
Other1,195 1,151 
Total other current liabilities$3,337 $3,266 
Retirement benefits$2,058 $2,219 
Customer deposits on commercial contracts1,847 2,576 
Lease liabilities1,576 1,497 
Other2,039 2,033 
Total other liabilities$7,520 $8,325 
v3.24.3
Commitments and Contingencies (Tables)
 9 Months Ended
Sep. 29, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Changes in Carrying Amount of Warranty Liabilities
The changes in the carrying amount of warranty liabilities for the nine-month periods ended September 29, 2024, and October 1, 2023, were as follows:
Nine Months EndedSeptember 29, 2024October 1, 2023
Beginning balance$597 $603 
Warranty expense84 57 
Payments(76)(74)
Adjustments9 5 
Ending balance$614 $591 
v3.24.3
Shareholders' Equity (Tables)
 9 Months Ended
Sep. 29, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (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, 2023$11 $673 $(1,843)$(1,159)
Other comprehensive income, pretax(31)(16)125 78 
Provision for income tax, net7 — (25)(18)
Other comprehensive income, net of tax(24)(16)100 60 
September 29, 2024$(13)$657 $(1,743)$(1,099)
December 31, 2022$4 $260 $(2,416)$(2,152)
Other comprehensive income, pretax(33)63 526 556 
Provision for income tax, net8 — (110)(102)
Other comprehensive income, net of tax(25)63 416 454 
October 1, 2023$(21)$323 $(2,000)$(1,698)
v3.24.3
Segment Information (Tables)
 9 Months Ended
Sep. 29, 2024
Segment Reporting [Abstract]  
Summary of Financial Information for Each of Our Segments
Summary financial information for each of our segments follows:
Revenue (a)Operating Earnings
Three Months EndedSeptember 29, 2024October 1, 2023September 29, 2024October 1, 2023
Aerospace$2,482 $2,032 $305 $268 
Marine Systems3,599 3,002 258 211 
Combat Systems2,212 2,224 325 300 
Technologies3,378 3,313 326 315 
Corporate (b)— — (33)(37)
Total$11,671 $10,571 $1,181 $1,057 
Nine Months Ended
Aerospace$7,506 $5,877 $879 $733 
Marine Systems10,383 9,053 735 657 
Combat Systems6,602 5,904 920 796 
Technologies9,887 9,770 941 897 
Corporate (b)— — (102)(126)
Total$34,378 $30,604 $3,373 $2,957 
(a)See Note B for additional revenue information by segment.
(b)Corporate operating costs consisted primarily of equity-based compensation expense.
v3.24.3
Fair Value (Tables)
 9 Months Ended
Sep. 29, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Values of Other Financial Assets and Liabilities The following tables present the fair values of our other financial assets and liabilities on September 29, 2024, and December 31, 2023, and the basis for determining their fair values:
Carrying
Value		Fair
Value		Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Financial Assets (Liabilities)September 29, 2024
Measured at fair value:
Marketable securities held in trust:
Cash and equivalents$3 $3 $— $3 $— 
Available-for-sale debt securities132 132 — 132 — 
Commingled equity funds50 50 50 — — 
Commingled fixed-income funds6 6 6 — — 
Other investments45 45 28 — 17 
Cash flow hedge assets64 64 — 64 — 
Cash flow hedge liabilities(65)(65)— (65)— 
Measured at amortized cost:
Short- and long-term debt principal(9,335)(8,876)— (8,876)— 
December 31, 2023
Measured at fair value:
Marketable securities held in trust:
Cash and equivalents$21 $21 $— $21 $— 
Available-for-sale debt securities115 115 — 115 — 
Commingled equity funds49 49 49 — — 
Commingled fixed-income funds6 6 6 — — 
Other investments40 40 23 — 17 
Cash flow hedge assets109 109 — 109 — 
Cash flow hedge liabilities(61)(61)— (61)— 
Measured at amortized cost:
Short- and long-term debt principal(9,340)(8,764)— (8,764)— 
v3.24.3
Retirement Plans (Tables)
 9 Months Ended
Sep. 29, 2024
Retirement Benefits [Abstract]  
Net Periodic Defined-Benefit Pension and Other Post-Retirement Benefit Cost
For our defined benefit plans, net periodic benefit cost (credit) for the three- and nine-month periods ended September 29, 2024, and October 1, 2023, consisted of the following:
Pension BenefitsOther Post-retirement Benefits
Three Months EndedSeptember 29, 2024October 1,
2023		September 29, 2024October 1,
2023
Service cost$19 $17 $1 $1 
Interest cost157 163 7 7 
Expected return on plan assets(206)(207)(8)(8)
Net actuarial loss (gain)48 183 (7)(7)
Prior service (credit) cost(2)(4)1 1 
Net periodic benefit cost (credit) $16 $152 $(6)$(6)
Nine Months Ended
Service cost$56 $50 $3 $3 
Interest cost471 488 21 22 
Expected return on plan assets(617)(622)(25)(24)
Net actuarial loss (gain)146 550 (23)(23)
Prior service (credit) cost(5)(11)2 2 
Net periodic benefit cost (credit)$51 $455 $(22)$(20)
v3.24.3
Summary of Significant Accounting Policies - Additional Information (Details)
 9 Months Ended
Sep. 29, 2024
Accounting Policies [Abstract]  
Length of fiscal quarters, weeks 91 days
v3.24.3
Summary of Significant Accounting Policies - Property, Plant, and Equipment, Net (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
PP&E $ 13,393 $ 13,000
Accumulated depreciation (7,069) (6,802)
PP&E, net $ 6,324 $ 6,198
v3.24.3
Revenue - Additional Information (Details)
contract in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
USD ($)
Oct. 01, 2023
USD ($)
Sep. 29, 2024
USD ($)
contract
Oct. 01, 2023
USD ($)
Disaggregation of Revenue [Line Items]        
Number of active contracts | contract     9  
Revenue recognized in contract liability balance | $ $ 1,100 $ 869 $ 4,500 $ 3,500
Transferred over Time        
Disaggregation of Revenue [Line Items]        
Revenue, percentage from products and services transferred to customers 79.00% 79.00% 78.00% 80.00%
Transferred at Point in Time        
Disaggregation of Revenue [Line Items]        
Revenue, percentage from products and services transferred to customers 21.00% 21.00% 22.00% 20.00%
v3.24.3
Revenue - Remaining Performance Obligations to be Recognized as Revenue (Details)
$ in Billions
Sep. 29, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-30  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligations $ 92.6
Revenue, remaining performance obligation percentage 55.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year 3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation percentage 30.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
v3.24.3
Revenue - Impact of Adjustments in Contract Estimates (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Change in Accounting Estimate [Line Items]        
Total revenue $ 11,671 $ 10,571 $ 34,378 $ 30,604
Operating Earnings 1,181 1,057 3,373 2,957
Contracts Accounted for under Percentage of Completion        
Change in Accounting Estimate [Line Items]        
Total revenue 62 27 211 179
Operating Earnings $ (12) $ 11 $ 101 $ 98
Diluted earnings per share (in dollars per share) $ (0.03) $ 0.03 $ 0.29 $ 0.28
v3.24.3
Revenue - Revenue by Products and Services (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Revenue [Line Items]        
Total revenue $ 11,671 $ 10,571 $ 34,378 $ 30,604
Aerospace        
Revenue [Line Items]        
Total revenue 2,482 2,032 7,506 5,877
Aerospace | Aircraft manufacturing        
Revenue [Line Items]        
Total revenue 1,686 1,348 5,014 3,715
Aerospace | Aircraft services        
Revenue [Line Items]        
Total revenue 796 684 2,492 2,162
Marine Systems        
Revenue [Line Items]        
Total revenue 3,599 3,002 10,383 9,053
Marine Systems | Nuclear-powered submarines        
Revenue [Line Items]        
Total revenue 2,630 2,027 7,496 6,186
Marine Systems | Surface ships        
Revenue [Line Items]        
Total revenue 658 697 2,023 2,016
Marine Systems | Repair and other services        
Revenue [Line Items]        
Total revenue 311 278 864 851
Combat Systems        
Revenue [Line Items]        
Total revenue 2,212 2,224 6,602 5,904
Combat Systems | Military vehicles        
Revenue [Line Items]        
Total revenue 1,295 1,280 3,850 3,707
Combat Systems | Weapons systems, armament and munitions        
Revenue [Line Items]        
Total revenue 658 739 2,033 1,650
Combat Systems | Engineering and other services        
Revenue [Line Items]        
Total revenue 259 205 719 547
Technologies        
Revenue [Line Items]        
Total revenue 3,378 3,313 9,887 9,770
Technologies | Information technology (IT) services        
Revenue [Line Items]        
Total revenue 2,220 2,149 6,556 6,445
Technologies | C5ISR* solutions        
Revenue [Line Items]        
Total revenue [1] $ 1,158 $ 1,164 $ 3,331 $ 3,325
[1] Command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance
v3.24.3
Revenue - Revenue by Contract Type (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Revenue [Line Items]        
Total revenue $ 11,671 $ 10,571 $ 34,378 $ 30,604
Fixed-price        
Revenue [Line Items]        
Total revenue 7,232 6,749 21,542 19,291
Cost-reimbursement        
Revenue [Line Items]        
Total revenue 3,674 3,117 10,545 9,134
Time-and-materials        
Revenue [Line Items]        
Total revenue 765 705 2,291 2,179
Aerospace        
Revenue [Line Items]        
Total revenue 2,482 2,032 7,506 5,877
Aerospace | Fixed-price        
Revenue [Line Items]        
Total revenue 2,250 1,816 6,772 5,145
Aerospace | Cost-reimbursement        
Revenue [Line Items]        
Total revenue 0 0 0 0
Aerospace | Time-and-materials        
Revenue [Line Items]        
Total revenue 232 216 734 732
Marine Systems        
Revenue [Line Items]        
Total revenue 3,599 3,002 10,383 9,053
Marine Systems | Fixed-price        
Revenue [Line Items]        
Total revenue 1,666 1,513 4,893 4,687
Marine Systems | Cost-reimbursement        
Revenue [Line Items]        
Total revenue 1,933 1,489 5,489 4,365
Marine Systems | Time-and-materials        
Revenue [Line Items]        
Total revenue 0 0 1 1
Combat Systems        
Revenue [Line Items]        
Total revenue 2,212 2,224 6,602 5,904
Combat Systems | Fixed-price        
Revenue [Line Items]        
Total revenue 1,957 1,992 5,844 5,204
Combat Systems | Cost-reimbursement        
Revenue [Line Items]        
Total revenue 238 220 706 651
Combat Systems | Time-and-materials        
Revenue [Line Items]        
Total revenue 17 12 52 49
Technologies        
Revenue [Line Items]        
Total revenue 3,378 3,313 9,887 9,770
Technologies | Fixed-price        
Revenue [Line Items]        
Total revenue 1,359 1,428 4,033 4,255
Technologies | Cost-reimbursement        
Revenue [Line Items]        
Total revenue 1,503 1,408 4,350 4,118
Technologies | Time-and-materials        
Revenue [Line Items]        
Total revenue $ 516 $ 477 $ 1,504 $ 1,397
v3.24.3
Revenue - Revenue by Customer (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Revenue [Line Items]        
Total revenue $ 11,671 $ 10,571 $ 34,378 $ 30,604
U.S. Government - DoD        
Revenue [Line Items]        
Total revenue 6,909 6,239 19,976 18,027
U.S. Government - Non-DoD        
Revenue [Line Items]        
Total revenue 1,239 1,216 3,593 3,592
U.S. Government - Foreign Military Sales (FMS)        
Revenue [Line Items]        
Total revenue 255 202 831 622
Total U.S. government        
Revenue [Line Items]        
Total revenue 8,403 7,657 24,400 22,241
U.S. commercial        
Revenue [Line Items]        
Total revenue 1,695 1,477 4,553 3,869
Non-U.S. government        
Revenue [Line Items]        
Total revenue 1,023 864 3,207 2,659
Non-U.S. commercial        
Revenue [Line Items]        
Total revenue 550 573 2,218 1,835
Aerospace        
Revenue [Line Items]        
Total revenue 2,482 2,032 7,506 5,877
Aerospace | U.S. Government - DoD        
Revenue [Line Items]        
Total revenue 83 46 187 241
Aerospace | U.S. Government - Non-DoD        
Revenue [Line Items]        
Total revenue 0 0 0 0
Aerospace | U.S. Government - Foreign Military Sales (FMS)        
Revenue [Line Items]        
Total revenue 9 14 30 53
Aerospace | Total U.S. government        
Revenue [Line Items]        
Total revenue 92 60 217 294
Aerospace | U.S. commercial        
Revenue [Line Items]        
Total revenue 1,586 1,375 4,225 3,558
Aerospace | Non-U.S. government        
Revenue [Line Items]        
Total revenue 294 67 989 317
Aerospace | Non-U.S. commercial        
Revenue [Line Items]        
Total revenue 510 530 2,075 1,708
Marine Systems        
Revenue [Line Items]        
Total revenue 3,599 3,002 10,383 9,053
Marine Systems | U.S. Government - DoD        
Revenue [Line Items]        
Total revenue 3,571 2,970 10,280 8,948
Marine Systems | U.S. Government - Non-DoD        
Revenue [Line Items]        
Total revenue 0 1 1 2
Marine Systems | U.S. Government - Foreign Military Sales (FMS)        
Revenue [Line Items]        
Total revenue 28 31 98 101
Marine Systems | Total U.S. government        
Revenue [Line Items]        
Total revenue 3,599 3,002 10,379 9,051
Marine Systems | U.S. commercial        
Revenue [Line Items]        
Total revenue 0 0 2 1
Marine Systems | Non-U.S. government        
Revenue [Line Items]        
Total revenue 0 0 2 1
Marine Systems | Non-U.S. commercial        
Revenue [Line Items]        
Total revenue 0 0 0 0
Combat Systems        
Revenue [Line Items]        
Total revenue 2,212 2,224 6,602 5,904
Combat Systems | U.S. Government - DoD        
Revenue [Line Items]        
Total revenue 1,274 1,309 3,742 3,184
Combat Systems | U.S. Government - Non-DoD        
Revenue [Line Items]        
Total revenue 1 3 6 8
Combat Systems | U.S. Government - Foreign Military Sales (FMS)        
Revenue [Line Items]        
Total revenue 211 143 675 435
Combat Systems | Total U.S. government        
Revenue [Line Items]        
Total revenue 1,486 1,455 4,423 3,627
Combat Systems | U.S. commercial        
Revenue [Line Items]        
Total revenue 61 53 180 159
Combat Systems | Non-U.S. government        
Revenue [Line Items]        
Total revenue 631 692 1,890 2,044
Combat Systems | Non-U.S. commercial        
Revenue [Line Items]        
Total revenue 34 24 109 74
Technologies        
Revenue [Line Items]        
Total revenue 3,378 3,313 9,887 9,770
Technologies | U.S. Government - DoD        
Revenue [Line Items]        
Total revenue 1,981 1,914 5,767 5,654
Technologies | U.S. Government - Non-DoD        
Revenue [Line Items]        
Total revenue 1,238 1,212 3,586 3,582
Technologies | U.S. Government - Foreign Military Sales (FMS)        
Revenue [Line Items]        
Total revenue 7 14 28 33
Technologies | Total U.S. government        
Revenue [Line Items]        
Total revenue 3,226 3,140 9,381 9,269
Technologies | U.S. commercial        
Revenue [Line Items]        
Total revenue 48 49 146 151
Technologies | Non-U.S. government        
Revenue [Line Items]        
Total revenue 98 105 326 297
Technologies | Non-U.S. commercial        
Revenue [Line Items]        
Total revenue $ 6 $ 19 $ 34 $ 53
v3.24.3
Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Basic weighted average shares outstanding (shares) 274,393 272,585 274,004 273,242
Dilutive effect of stock options and restricted stock/RSUs (shares) [1] 3,495 2,160 3,514 2,204
Diluted weighted average shares outstanding (shares) 277,888 274,745 277,518 275,446
Stock/RSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (shares) 1,277 4,464 962 4,101
[1] Excludes unvested stock options, and vested stock options 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 1,277 and 962 for the three- and nine-month periods ended September 29, 2024, and 4,464 and 4,101 for the three- and nine-month periods ended October 1, 2023, respectively.
v3.24.3
Income Taxes - Net Deferred Tax Liability (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Deferred tax asset $ 28 $ 28
Deferred tax liability (581) (655)
Net deferred tax liability $ (553) $ (627)
v3.24.3
Income Taxes - Additional Information (Details)
Sep. 29, 2024
USD ($)
Income Tax Disclosure [Abstract]  
Amount of unrecorded tax benefit that will vary significantly over the next 12 months $ 0
v3.24.3
Unbilled Receivables (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Contractors [Abstract]    
Unbilled revenue $ 41,814 $ 40,552
Advances and progress billings (32,962) (32,555)
Net unbilled receivables $ 8,852 $ 7,997
v3.24.3
Unbilled Receivables - Additional Information (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Contracts In Process [Line Items]    
Net unbilled receivables $ 8,852 $ 7,997
Combat Systems | Large International Contract    
Contracts In Process [Line Items]    
Net unbilled receivables $ 1,400 $ 1,200
v3.24.3
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Work in process $ 6,767 $ 5,655
Raw materials 3,283 2,886
Finished goods 29 22
Pre-owned aircraft 62 15
Total inventories $ 10,141 $ 8,578
v3.24.3
Goodwill and Intangible Assets - Changes In Carrying Amount of Goodwill by Reporting Unit (Details)
$ in Millions
 9 Months Ended
Sep. 29, 2024
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning of period $ 20,586 [1]
Acquisitions 202
Other (31) [2]
Goodwill, end of period 20,757 [1]
Aerospace  
Goodwill [Roll Forward]  
Goodwill, beginning of period 3,199 [1]
Acquisitions 7
Other (6) [2]
Goodwill, end of period 3,200 [1]
Marine Systems  
Goodwill [Roll Forward]  
Goodwill, beginning of period 297 [1]
Acquisitions 0
Other 0 [2]
Goodwill, end of period 297 [1]
Combat Systems  
Goodwill [Roll Forward]  
Goodwill, beginning of period 2,812 [1]
Acquisitions 39
Other (22) [2]
Goodwill, end of period 2,829 [1]
Technologies  
Goodwill [Roll Forward]  
Goodwill, beginning of period 14,278 [1]
Acquisitions 156
Other (3) [2]
Goodwill, end of period 14,431 [1]
Accumulated impairment losses $ 1,800
[1] Goodwill in the Technologies reporting unit was net of $1.8 billion of accumulated impairment losses.
[2] Consisted primarily of adjustments for foreign currency translation.
v3.24.3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Intangible Assets [Line Items]    
Gross Carrying Amount [1] $ 3,957 $ 3,927
Accumulated Amortization (2,374) (2,271)
Intangible assets, net 1,583 1,656
Contract and program intangible assets    
Intangible Assets [Line Items]    
Gross Carrying Amount [1],[2] 3,295 3,256
Accumulated Amortization [2] (1,960) (1,868)
Intangible assets, net 1,335 1,388
Trade names and trademarks    
Intangible Assets [Line Items]    
Gross Carrying Amount [1] 540 542
Accumulated Amortization (302) (288)
Intangible assets, net 238 254
Technology and software    
Intangible Assets [Line Items]    
Gross Carrying Amount [1] 62 65
Accumulated Amortization (52) (51)
Intangible assets, net 10 14
Other intangible assets    
Intangible Assets [Line Items]    
Gross Carrying Amount [1] 60 64
Accumulated Amortization (60) (64)
Intangible assets, net $ 0 $ 0
[1] Changes in gross carrying amounts consisted primarily of adjustments for acquired and divested intangible assets and foreign currency translation.
[2] Consisted of acquired backlog and probable follow-on work and associated customer relationships.
v3.24.3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense of intangibles $ 45 $ 47 $ 134 $ 147
v3.24.3
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 29, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Total debt principal $ 9,335 $ 9,340
Less unamortized debt issuance costs and discounts 68 79
Total debt 9,267 9,261
Less current portion 2,005 507
Long-term debt $ 7,262 8,754
Fixed Rate Notes Due November 2024    
Debt Instrument [Line Items]    
Interest rate: 2.375%  
Long term debt $ 500 500
Fixed Rate Notes Due April 2025    
Debt Instrument [Line Items]    
Interest rate: 3.25%  
Long term debt $ 750 750
Fixed Rate Notes Due May 2025    
Debt Instrument [Line Items]    
Interest rate: 3.50%  
Long term debt $ 750 750
Fixed Rate Notes Due June 2026    
Debt Instrument [Line Items]    
Interest rate: 1.15%  
Long term debt $ 500 500
Fixed Rate Notes Due August 2026    
Debt Instrument [Line Items]    
Interest rate: 2.125%  
Long term debt $ 500 500
Fixed Rate Notes Due April 2027    
Debt Instrument [Line Items]    
Interest rate: 3.50%  
Long term debt $ 750 750
Fixed Rate Notes Due November 2027    
Debt Instrument [Line Items]    
Interest rate: 2.625%  
Long term debt $ 500 500
Fixed Rate Notes Due May 2028    
Debt Instrument [Line Items]    
Interest rate: 3.75%  
Long term debt $ 1,000 1,000
Fixed Rate Notes Due April 2030    
Debt Instrument [Line Items]    
Interest rate: 3.625%  
Long term debt $ 1,000 1,000
Fixed Rate Notes Due June 2031    
Debt Instrument [Line Items]    
Interest rate: 2.25%  
Long term debt $ 500 500
Fixed Rate Notes Due April 2040    
Debt Instrument [Line Items]    
Interest rate: 4.25%  
Long term debt $ 750 750
Fixed Rate Notes Due June 2041    
Debt Instrument [Line Items]    
Interest rate: 2.85%  
Long term debt $ 500 500
Fixed Rate Notes Due November 2042    
Debt Instrument [Line Items]    
Interest rate: 3.60%  
Long term debt $ 500 500
Fixed Rate Notes Due April 2050    
Debt Instrument [Line Items]    
Interest rate: 4.25%  
Long term debt $ 750 750
Other    
Debt Instrument [Line Items]    
Other Interest rate Various  
Long term debt $ 85 $ 90
v3.24.3
Debt - Additional Information (Details)
Sep. 29, 2024
USD ($)
Debt Instrument [Line Items]  
Credit facility, maximum borrowing capacity $ 4,000,000,000
Commercial paper  
Debt Instrument [Line Items]  
Commercial paper outstanding $ 0
v3.24.3
Other Liabilities (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]    
Salaries and wages $ 1,180 $ 1,191
Dividends payable 391 362
Lease liabilities 324 325
Workers’ compensation 247 237
Other 1,195 1,151
Total other current liabilities 3,337 3,266
Retirement benefits 2,058 2,219
Customer deposits on commercial contracts 1,847 2,576
Lease liabilities 1,576 1,497
Other 2,039 2,033
Total other liabilities $ 7,520 $ 8,325
v3.24.3
Commitments and Contingencies - Additional Information (Details)
$ in Billions
 9 Months Ended
Sep. 29, 2024
USD ($)
Other Commitments [Line Items]  
Letters of credit and guarantees $ 1.8
Aerospace | Maximum  
Other Commitments [Line Items]  
Period preceding delivery of aircraft to customer fair market value of trade-in aircraft is established, days, maximum 45 days
v3.24.3
Commitments and Contingencies - Product Guarantee (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]    
Beginning balance $ 597 $ 603
Warranty expense 84 57
Payments (76) (74)
Adjustments 9 5
Ending balance $ 614 $ 591
v3.24.3
Shareholders' Equity - Additional Information (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Equity [Abstract]        
Stock repurchased during the period (shares)     0.7 2.0
Stock repurchased during the period, value     $ 183 $ 434
Remaining number of shares authorized to be repurchased (shares) 4.0   4.0  
Shares remaining to be repurchased as a percent of total shares outstanding 1.50%   1.50%  
Dividends declared per share $ 1.42 $ 1.32 $ 4.26 $ 3.96
Dividends paid in cash $ 390 $ 363 $ 1,140 $ 1,068
v3.24.3
Shareholders' Equity - Changes in AOCI (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Beginning Balance $ (1,159)  
Ending Balance (1,099)  
Changes in Unrealized Cash Flow Hedges    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Beginning Balance 11 $ 4
Other comprehensive income, pretax (31) (33)
Provision for income tax, net 7 8
Other comprehensive income, net of tax (24) (25)
Ending Balance (13) (21)
Foreign Currency Translation Adjustments    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Beginning Balance 673 260
Other comprehensive income, pretax (16) 63
Provision for income tax, net 0 0
Other comprehensive income, net of tax (16) 63
Ending Balance 657 323
Changes in Retirement Plans’ Funded Status    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Beginning Balance (1,843) (2,416)
Other comprehensive income, pretax 125 526
Provision for income tax, net (25) (110)
Other comprehensive income, net of tax 100 416
Ending Balance (1,743) (2,000)
AOCL    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Beginning Balance (1,159) (2,152)
Other comprehensive income, pretax 78 556
Provision for income tax, net (18) (102)
Other comprehensive income, net of tax 60 454
Ending Balance $ (1,099) $ (1,698)
v3.24.3
Segment Information - Additional Information (Details)
 9 Months Ended
Sep. 29, 2024
segment
Segment Reporting [Abstract]  
Number of operating segments 4
v3.24.3
Segment Information - Summary of Financial Information (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Segment Reporting Information [Line Items]        
Total revenue $ 11,671 $ 10,571 $ 34,378 $ 30,604
Operating Earnings 1,181 1,057 3,373 2,957
Aerospace        
Segment Reporting Information [Line Items]        
Total revenue 2,482 2,032 7,506 5,877
Marine Systems        
Segment Reporting Information [Line Items]        
Total revenue 3,599 3,002 10,383 9,053
Combat Systems        
Segment Reporting Information [Line Items]        
Total revenue 2,212 2,224 6,602 5,904
Technologies        
Segment Reporting Information [Line Items]        
Total revenue 3,378 3,313 9,887 9,770
Operating Segments | Aerospace        
Segment Reporting Information [Line Items]        
Total revenue 2,482 2,032 7,506 5,877
Operating Earnings 305 268 879 733
Operating Segments | Marine Systems        
Segment Reporting Information [Line Items]        
Total revenue 3,599 3,002 10,383 9,053
Operating Earnings 258 211 735 657
Operating Segments | Combat Systems        
Segment Reporting Information [Line Items]        
Total revenue 2,212 2,224 6,602 5,904
Operating Earnings 325 300 920 796
Operating Segments | Technologies        
Segment Reporting Information [Line Items]        
Total revenue 3,378 3,313 9,887 9,770
Operating Earnings 326 315 941 897
Corporate        
Segment Reporting Information [Line Items]        
Total revenue 0 [1] 0 [1] 0 0
Operating Earnings $ (33) [1] $ (37) [1] $ (102) $ (126)
[1]
(a)See Note B for additional revenue information by segment.
(b)Corporate operating costs consisted primarily of equity-based compensation expense.
v3.24.3
Fair Value (Details) - USD ($)
$ in Millions
Sep. 29, 2024
Dec. 31, 2023
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Marketable securities held in trust:    
Cash and equivalents $ 0 $ 0
Available-for-sale debt securities 0 0
Other investments 28 23
Cash flow hedge assets 0 0
Cash flow hedge liabilities 0 0
Short- and long-term debt principal 0 0
Significant Other Observable Inputs (Level 2)    
Marketable securities held in trust:    
Cash and equivalents 3 21
Available-for-sale debt securities 132 115
Other investments 0 0
Cash flow hedge assets 64 109
Cash flow hedge liabilities (65) (61)
Short- and long-term debt principal (8,876) (8,764)
Significant Unobservable Inputs (Level 3)    
Marketable securities held in trust:    
Cash and equivalents 0 0
Available-for-sale debt securities 0 0
Other investments 17 17
Cash flow hedge assets 0 0
Cash flow hedge liabilities 0 0
Short- and long-term debt principal 0 0
Carrying Value    
Marketable securities held in trust:    
Cash and equivalents 3 21
Available-for-sale debt securities 132 115
Commingled equity funds 50 49
Commingled fixed-income funds 6 6
Other investments 45 40
Cash flow hedge assets 64 109
Cash flow hedge liabilities (65) (61)
Short- and long-term debt principal (9,335) (9,340)
Fair Value    
Marketable securities held in trust:    
Cash and equivalents 3 21
Available-for-sale debt securities 132 115
Commingled equity funds 50 49
Commingled fixed-income funds 6 6
Other investments 45 40
Cash flow hedge assets 64 109
Cash flow hedge liabilities (65) (61)
Short- and long-term debt principal (8,876) (8,764)
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Marketable securities held in trust:    
Commingled equity funds 50 49
Commingled fixed-income funds 6 6
Fair Value | Significant Other Observable Inputs (Level 2)    
Marketable securities held in trust:    
Commingled equity funds 0 0
Commingled fixed-income funds 0 0
Fair Value | Significant Unobservable Inputs (Level 3)    
Marketable securities held in trust:    
Commingled equity funds 0 0
Commingled fixed-income funds $ 0 $ 0
v3.24.3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 29, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]    
Average maturity of foreign currency forward contracts, in years 1 year  
Cash and equivalents $ 2,101 $ 1,913
Marketable securities held in trust 191 191
Notional forward foreign exchange contracts outstanding $ 7,100 $ 5,700
Maximum    
Derivative Instruments, Gain (Loss) [Line Items]    
Maturity of fixed-income securities, in years 5 years  
v3.24.3
Retirement Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2024
Oct. 01, 2023
Sep. 29, 2024
Oct. 01, 2023
Pension Benefits        
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 19 $ 17 $ 56 $ 50
Interest cost 157 163 471 488
Expected return on plan assets (206) (207) (617) (622)
Net actuarial loss (gain) 48 183 146 550
Prior service (credit) cost (2) (4) (5) (11)
Net periodic benefit cost (credit) 16 152 51 455
Other Post-retirement Benefits        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 1 1 3 3
Interest cost 7 7 21 22
Expected return on plan assets (8) (8) (25) (24)
Net actuarial loss (gain) (7) (7) (23) (23)
Prior service (credit) cost 1 1 2 2
Net periodic benefit cost (credit) $ (6) $ (6) $ (22) $ (20)
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