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General Dynamics Reports Second-Quarter 2014 Results

Companies mentioned in this article: General Dynamics

FALLS CHURCH, Va., July 23, 2014 /PRNewswire/ -- General Dynamics (NYSE: GD) today reported 2014 second-quarter earnings from continuing operations of $646 million, or $1.88 per share on a diluted basis, compared to second-quarter earnings from continuing operations in 2013 of $640 million, or $1.81 per diluted share. Second-quarter 2014 revenues were $7.5 billion.

http://photos.prnewswire.com/prnvar/20140428/81320

There is a charge in the quarter of $105 million in discontinued operations for the sale of a business within Combat Systems, which results in net earnings for the second quarter of $541 million, or $1.58 fully diluted earnings per share.

Margins

Company-wide operating margins for the second quarter of 2014 were 12.7 percent, a 40 basis-point improvement when compared to 12.3 percent in second-quarter 2013.

Cash

Net cash provided by operating activities in the quarter totaled $866 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $791 million in second-quarter 2014, or 122 percent of earnings from continuing operations.

Capital Deployment

The company repurchased 10.7 million outstanding shares in the second quarter, for $1.2 billion. Year-to-date, the company has repurchased 25 million outstanding shares, for $2.7 billion.

Backlog

Total backlog at the end of second-quarter 2014 was $71.1 billion. Estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $28.4 billion. At the end of the quarter, total potential contract value, the sum of all backlog components, was $99.5 billion.

Orders in the Aerospace group were strong in the quarter, including healthy activity across the group's portfolio. Additional significant awards received include a $17.8 billion multi-year contract from the U.S. Navy for the construction of 10 additional Virginia-class submarines, $645 million for support on the Canadian Maritime Helicopter Project, $425 million from the Centers for Medicare & Medicaid Services for contact-center services, $290 million from the U.S. Army for the production of 93 Stryker double-V-hulled vehicles and contractor logistics support, and $125 million for the construction of an additional product carrier from an affiliate of American Petroleum Tankers.

"General Dynamics' strong second quarter performance reflects our continued focus on program execution and operational improvements," said Phebe N. Novakovic, chairman and chief executive officer. "We have a solid building block for the future with an increased defense backlog and robust order activity across the portfolio of Gulfstream business jets."

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 89,600 people worldwide. The company is a market leader in business aviation; combat vehicles, weapons systems and munitions; shipbuilding; and communication and information technology systems and solutions. More information about the company is available at www.generaldynamics.com.

Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.

All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

WEBCAST INFORMATION: General Dynamics will webcast its second-quarter securities analyst conference call, scheduled for 9 a.m. EDT on Wednesday, July 23, 2014. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 12 p.m. EDT on July 23 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 66081812. The phone replay will be available from 12 p.m. July 23 through July 30, 2014.


                                                                                                                                        EXHIBIT A


                                                                                                                    CONSOLIDATED STATEMENTS OF EARNINGS - (UNAUDITED)

                                                                                                                      DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS


                                                                                                                 Second Quarter                            Variance

                                                                                                                              2013                               2014         $   %
                                                                                                                              ----                               ----       ---  ---


    Revenues                                                                                                                $7,834                             $7,474    $(360)  (4.6)%

    Operating costs and expenses                                                                                             6,873                              6,525       348
                                                                                                                             -----                              -----       ---


    Operating earnings                                                                                                         961                                949      (12)  (1.2)%


    Interest, net                                                                                                             (18)                              (24)      (6)
                                                                                                                               ---                                ---       ---


    Earnings before income taxes                                                                                               943                                925      (18)  (1.9)%


    Provision for income taxes                                                                                                 303                                279        24
                                                                                                                               ---                                ---       ---


    Earnings from continuing operations                                                                                       $640                               $646        $6    0.9 %
                                                                                                                              ====                               ====       ===


    Discontinued operations, net of tax                                                                                          -                             (105)    (105)
                                                                                                                               ---                              ----      ----


    Net earnings                                                                                                              $640                               $541     $(99) (15.5)%
                                                                                                                              ====                               ====      ====


    Earnings per share - basic

        Continuing operations                                                                                                $1.82                              $1.92     $0.10    5.5 %

        Discontinued operations                                                                                $                 -                           $(0.31)  $(0.31)
                                                                                                                    --------------                            ------    ------

    Earnings per share - basic                                                                                               $1.82                              $1.61   $(0.21) (11.5)%
                                                                                                                             =====                              =====    ======


    Basic weighted average shares outstanding                                                                                351.1                              336.7
                                                                                                                             =====                              =====


    Earnings per share - diluted

        Continuing operations                                                                                                $1.81                              $1.88     $0.07    3.9 %

        Discontinued operations                                                                               $                  -                           $(0.30)  $(0.30)
                                                                                                                    --------------                            ------    ------

    Earnings per share - diluted                                                                                             $1.81                              $1.58   $(0.23) (12.7)%
                                                                                                                             =====                              =====    ======


    Diluted weighted average shares outstanding                                                                              352.9                              342.8
                                                                                                                             =====                              =====



    Note: Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                                                                  EXHIBIT B


                                                                                                              CONSOLIDATED STATEMENTS OF EARNINGS - (UNAUDITED)

                                                                                                                DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS


                                                                                                                      Six Months                                Variance

                                                                                                                                         2013                                2014         $  %
                                                                                                                                         ----                                ----       --- ---


    Revenues                                                                                                                          $15,148                             $14,739    $(409)     (2.7)%

    Operating costs and expenses                                                                                                       13,344                              12,916       428
                                                                                                                                       ------                              ------       ---


    Operating earnings                                                                                                                  1,804                               1,823        19       1.1 %


    Interest, net                                                                                                                        (41)                               (46)      (5)

    Other, net                                                                                                                              -                                  1         1
                                                                                                                                          ---                                ---       ---


    Earnings before income taxes                                                                                                        1,763                               1,778        15       0.9 %


    Provision for income taxes                                                                                                            553                                 536        17
                                                                                                                                          ---                                 ---       ---


    Earnings from continuing operations                                                                                                $1,210                              $1,242       $32       2.6 %
                                                                                                                                       ======                              ======       ===


    Discontinued operations, net of tax                                                                                                     1                               (106)    (107)
                                                                                                                                          ---                                ----      ----


    Net earnings                                                                                                                       $1,211                              $1,136     $(75)     (6.2)%
                                                                                                                                       ======                              ======      ====


    Earnings per share - basic

        Continuing operations                                                                                                           $3.45                               $3.66     $0.21       6.1 %

        Discontinued operations                                                                                          $                  -                            $(0.31)  $(0.31)
                                                                                                                         --------------------                             ------    ------

        Net earnings                                                                                                                    $3.45                               $3.35   $(0.10)     (2.9)%
                                                                                                                                        =====                               =====    ======


    Basic weighted average shares outstanding                                                                                           351.5                               339.5
                                                                                                                                        =====                               =====


    Earnings per share - diluted

        Continuing operations                                                                                                           $3.43                               $3.60     $0.17       5.0 %

        Discontinued operations                                                                                          $                  -                            $(0.31)  $(0.31)
                                                                                                                         --------------------                             ------

        Net earnings                                                                                                                    $3.43                               $3.29   $(0.14)     (4.1)%
                                                                                                                                        =====                               =====    ======


    Diluted weighted average shares outstanding                                                                                         353.2                               345.4
                                                                                                                                        =====                               =====



    Note: Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                                                                    EXHIBIT C


                                                                                                             REVENUES AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

                                                                                                                               DOLLARS IN MILLIONS


                                                                                                                Second Quarter                                        Variance

                                                                                                                                     2013                                          2014       $  %
                                                                                                                                     ----                                          ----     --- ---

    Revenues:
    ---------


    Aerospace                                                                                                                      $2,053                                        $1,995   $(58)       (2.8)%


    Combat Systems                                                                                                                  1,472                                         1,465     (7)       (0.5)%


    Marine Systems                                                                                                                  1,759                                         1,851      92         5.2 %


    Information Systems and Technology                                                                                            2,550                                         2,163   (387)      (15.2)%
                                                                                                                                  -----                                         -----    ----


    Total                                                                                                                          $7,834                                        $7,474  $(360)       (4.6)%
                                                                                                                                   ======                                        ======   =====


    Operating earnings:
    -------------------


    Aerospace                                                                                                                        $389                                          $384    $(5)       (1.3)%


    Combat Systems                                                                                                                    219                                           220       1         0.5 %


    Marine Systems                                                                                                                    178                                           174     (4)       (2.2)%


    Information Systems and Technology                                                                                              198                                           188    (10)       (5.1)%


    Corporate                                                                                                                        (23)                                         (17)      6        26.1 %


    Total                                                                                                                            $961                                          $949   $(12)       (1.2)%
                                                                                                                                     ====                                          ====    ====


    Operating margins:
    ------------------


    Aerospace                                                                                                                      18.9 %                                       19.2 %


    Combat Systems                                                                                                                 14.9 %                                       15.0 %


    Marine Systems                                                                                                                 10.1 %                                        9.4 %


    Information Systems and Technology                                                                                            7.8 %                                        8.7 %


    Total                                                                                                                          12.3 %                                       12.7 %



    Note:  Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                                                                    EXHIBIT D


                                                                                                             REVENUES AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

                                                                                                                               DOLLARS IN MILLIONS


                                                                                                                  Six Months                                          Variance

                                                                                                                                     2013                                          2014       $  %
                                                                                                                                     ----                                          ----     --- ---

    Revenues:
    ---------


    Aerospace                                                                                                                      $3,831                                        $4,120    $289         7.5 %


    Combat Systems                                                                                                                  2,935                                         2,723   (212)       (7.2)%


    Marine Systems                                                                                                                  3,385                                         3,452      67         2.0 %


    Information Systems and Technology                                                                                            4,997                                         4,444   (553)      (11.1)%
                                                                                                                                  -----                                         -----    ----


    Total                                                                                                                         $15,148                                       $14,739  $(409)       (2.7)%
                                                                                                                                  =======                                       =======   =====


    Operating earnings:
    -------------------


    Aerospace                                                                                                                        $699                                          $788     $89        12.7 %


    Combat Systems                                                                                                                    430                                           359    (71)      (16.5)%


    Marine Systems                                                                                                                    337                                           340       3         0.9 %


    Information Systems and Technology                                                                                              383                                           371    (12)       (3.1)%


    Corporate                                                                                                                        (45)                                         (35)     10        22.2 %


    Total                                                                                                                          $1,804                                        $1,823     $19         1.1 %
                                                                                                                                   ======                                        ======     ===


    Operating margins:
    ------------------


    Aerospace                                                                                                                      18.2 %                                       19.1 %


    Combat Systems                                                                                                                 14.7 %                                       13.2 %


    Marine Systems                                                                                                                 10.0 %                                        9.8 %


    Information Systems and Technology                                                                                            7.7 %                                        8.3 %


    Total                                                                                                                          11.9 %                                       12.4 %



    Note:  Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                                                               EXHIBIT E


                                                                                                               CONSOLIDATED BALANCE SHEETS - (UNAUDITED)

                                                                                                                          DOLLARS IN MILLIONS


                                                                                                                                                         December 31, 2013         June 29, 2014
                                                                                                                                                         -----------------         -------------

    ASSETS

    Current assets:

    Cash and equivalents                                                                                                                                                    $5,301                 $3,841

    Accounts receivable                                                                                                                                                      4,370                  4,474

    Contracts in process                                                                                                                                                     4,780                  4,934

    Inventories                                                                                                                                                              2,890                  3,158

    Other current assets                                                                                                                                                       821                    776
    --------------------

    Total current assets                                                                                                                                                    18,162                 17,183
    --------------------                                                                                                                                                    ------                 ------


    Noncurrent assets:

    Property, plant and equipment, net                                                                                                                                       3,359                  3,327

    Intangible assets, net                                                                                                                                                   1,044                    983

    Goodwill                                                                                                                                                                11,932                 11,927

    Other assets                                                                                                                                                               997                    912
    ------------

    Total noncurrent assets                                                                                                                                                 17,332                 17,149
    -----------------------                                                                                                                                                 ------                 ------

    Total assets                                                                                                                                                           $35,494                $34,332
                                                                                                                                                                           -------                -------

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:

    Short-term debt and current portion of long-term debt                                                                                                                       $1                   $501

    Accounts payable                                                                                                                                                         2,216                  2,486

    Customer advances and deposits                                                                                                                                           6,584                  6,694

    Other current liabilities                                                                                                                                                3,458                  3,541
    -------------------------

    Total current liabilities                                                                                                                                               12,259                 13,222
    -------------------------                                                                                                                                               ------                 ------


    Noncurrent liabilities:

    Long-term debt                                                                                                                                                           3,908                  3,409

    Other liabilities                                                                                                                                                        4,826                  4,582
    -----------------                                                                                                                                                        -----                  -----

    Total noncurrent liabilities                                                                                                                                             8,734                  7,991
    ----------------------------                                                                                                                                             -----                  -----


    Shareholders' equity:

    Common stock                                                                                                                                                               482                    482

    Surplus                                                                                                                                                                  2,226                  2,415

    Retained earnings                                                                                                                                                       19,428                 20,142

    Treasury stock                                                                                                                                                         (6,450)               (8,816)

    Accumulated other comprehensive loss                                                                                                                                   (1,185)               (1,104)
    ------------------------------------

    Total shareholders' equity                                                                                                                                              14,501                 13,119
    --------------------------                                                                                                                                              ------                 ------

    Total liabilities and shareholders' equity                                                                                                                             $35,494                $34,332
    ------------------------------------------                                                                                                                             -------                -------



    Note:  Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                   EXHIBIT F


                                                              CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)

                                                                              DOLLARS IN MILLIONS


                                                                           Six Months Ended
                                                                           ----------------

                                                                            June 30, 2013                         June 29, 2014
                                                                            -------------                         -------------

    Cash flows from operating
     activities -continuing
     operations:

    Net earnings                                                                                     $1,211                       $1,136

    Adjustments to reconcile net
     earnings to net cash provided by

    operating activities:

    Depreciation of property, plant and
     equipment                                                                                          186                          191

    Amortization of intangible assets                                                                    79                           61

    Stock-based compensation expense                                                                     61                           64

    Excess tax benefit from stock-
     based compensation                                                                                (16)                        (54)

    Deferred income tax provision                                                                        47                           64

    Discontinued operations, net of tax                                                                 (1)                         106

    Increase in assets, net of effects
     of business acquisitions:

    Accounts receivable                                                                               (102)                       (104)

    Contracts in process                                                                              (125)                       (130)

    Inventories                                                                                       (161)                       (278)

    Increase (decrease) in liabilities,
     net of effects of business
     acquisitions:

    Accounts payable                                                                                   (10)                         270

    Customer advances and deposits                                                                     (54)                          25

    Income taxes payable                                                                                 50                          188

    Other current liabilities                                                                         (149)                        (81)

    Other, net                                                                                           71                        (164)
    ----------                                                                                          ---                         ----

    Net cash provided by operating
     activities                                                                                       1,087                        1,294
    ------------------------------                                                                    -----                        -----


    Cash flows from investing
     activities -continuing
     operations:

    Capital expenditures                                                                              (165)                       (162)

    Other, net                                                                                            4                           17
    ----------                                                                                          ---                          ---

    Net cash used by investing
     activities                                                                                       (161)                       (145)
    --------------------------                                                                         ----                         ----


    Cash flows from financing
     activities -continuing
     operations:

    Purchases of common stock                                                                         (485)                     (2,691)

    Proceeds from option exercises                                                                      212                          415

    Dividends paid                                                                                    (198)                       (411)

    Excess tax benefit from stock-
     based compensation                                                                                  16                           54
    ------------------------------                                                                      ---                          ---

    Net cash used by financing
     activities                                                                                       (455)                     (2,633)
    --------------------------                                                                         ----                       ------


    Net cash (used) provided by
     discontinued operations                                                                           (10)                          24
    ---------------------------                                                                         ---                          ---


    Net increase (decrease) in cash and
     equivalents                                                                                        461                      (1,460)

    Cash and equivalents at beginning
     of period                                                                                        3,296                        5,301
    ---------------------------------                                                                 -----                        -----

    Cash and equivalents at end of
     period                                                                                          $3,757                       $3,841
    ------------------------------                                                                   ------                       ------


    Note:  Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                                                                                                                 EXHIBIT G


                                                                                                                                                              PRELIMINARY FINANCIAL INFORMATION - (UNAUDITED)

                                                                                                                                                         DOLLARS IN MILLIONS EXCEPT PER SHARE AND EMPLOYEE AMOUNTS


                                                                                                                                                     Second Quarter                                                                                                       Second Quarter

                                                                                                                                                                             2013                                                                                                                   2014
                                                                                                                                                                             ----                                                                                                                   ----

    Other Financial Information (g):
    --------------------------------

    Debt-to-equity (a)                                                                                                                                                   33.2%                                                                                                                 29.8%


    Debt-to-capital (b)                                                                                                                                                  24.9%                                                                                                                 23.0%


    Book value per share (c)                                                                                                                                            $33.60                                                                                                                 $39.24


    Total taxes paid                                                                                                                                                      $442                                                                                                                   $214


    Company-sponsored research and development (d)

                                                                                                                                                                           $77                                                                                                                    $98


    Employment                                                                                                                                                          90,100                                                                                                                 89,600


    Sales per employee (e)                                                                                                                                            $339,500                                                                                                               $327,100


    Shares outstanding                                                                                                                                             349,867,839                                                                                                            334,315,950


    Non-GAAP Financial Measures (g):
    --------------------------------


    Free cash flow from operations:                                                                                                                   Quarter                                                  Year-to-date                                                Quarter                                             Year-to-date
                                                                                                                                                      -------                                                 ------------                                                 -------                                            ------------

    Net cash provided by operating activities                                                                                                                             $582                                                      $1,087                                                        $866                                        $1,294

    Capital expenditures                                                                                                                                                  (92)                                                      (165)                                                       (75)                                        (162)

    Free cash flow from operations (f)                                                                                                                                    $490                                                        $922                                                        $791                                        $1,132
                                                                                                                                                                          ====                                                        ====                                                        ====                                        ======


    (a) Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.

    (b) Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of the end of the period.

    (c) Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.

    (d) Includes independent research and development and Gulfstream product-development costs.

    (e) Sales per employee is calculated by dividing revenues for the latest 12-month period by our average number of employees during that period.

    (f) We believe free cash flow from operations is a measurement that is useful to investors because it portrays our ability to generate cash from our core businesses for such purposes as repaying maturing debt, funding business acquisitions and paying dividends. We use free cash flow from operations to assess the
     quality of our earnings and as a performance measure in evaluating management.  The most directly comparable GAAP measure to free cash flow from operations is net cash provided by operating activities.

    (g) Prior period information has been restated to reflect our axle business in discontinued operations.


                                                                                                                                                            EXHIBIT H


                                                                                                                                                      BACKLOG - (UNAUDITED)

                                                                                                                                                       DOLLARS IN MILLIONS


                                                                                                                                                                                                                                                Estimated

                                                                                                                                                                                                   Total                                        Potential                                Total Potential

    Second Quarter 2014                                                                                    Funded                                      Unfunded                                   Backlog                                    Contract Value*                             Contract Value
    -------------------                                                                                    ------                                      --------                                   -------                                    --------------                              --------------

    Aerospace                                                                                                         $12,556                                            $172                                 $12,728                                                 $1,920                              $14,648


    Combat Systems                                                                                                     15,363                                             852                                  16,215                                                  8,074                               24,289


    Marine Systems                                                                                                     15,458                                          17,747                                  33,205                                                  1,938                               35,143


    Information Systems and Technology

                                                                                                                        7,343                                           1,602                                   8,945                                                 16,477                               25,422
                                                                                                                        -----                                           -----                                   -----                                                 ------                               ------


    Total                                                                                                             $50,720                                         $20,373                                 $71,093                                                $28,409                              $99,502
                                                                                                                      =======                                         =======                                 =======                                                =======                              =======



    First Quarter 2014
    ------------------

    Aerospace                                                                                                         $12,747                                            $199                                 $12,946                                                 $2,000                              $14,946


    Combat Systems                                                                                                     15,870                                             885                                  16,755                                                  8,143                               24,898


    Marine Systems                                                                                                     12,447                                           5,248                                  17,695                                                  2,046                               19,741


    Information Systems and Technology

                                                                                                                        7,134                                           1,343                                   8,477                                                 16,494                               24,971
                                                                                                                        -----                                           -----                                   -----                                                 ------                               ------


    Total                                                                                                             $48,198                                          $7,675                                 $55,873                                                $28,683                              $84,556
                                                                                                                      =======                                          ======                                 =======                                                =======                              =======



    Second Quarter 2013
    -------------------

    Aerospace                                                                                                         $14,480                                            $183                                 $14,663                               $                      -                             $14,663


    Combat Systems                                                                                                      5,790                                           1,129                                   6,919                                                  3,025                                9,944


    Marine Systems                                                                                                     12,771                                           5,149                                  17,920                                                  3,900                               21,820


    Information Systems and Technology

                                                                                                                        7,943                                           1,856                                   9,799                                                 20,788                               30,587
                                                                                                                        -----                                           -----                                   -----                                                 ------                               ------


    Total                                                                                                             $40,984                                          $8,317                                 $49,301                                                $27,713                              $77,014
                                                                                                                      =======                                          ======                                 =======                                                =======                              =======



    *  The estimated potential contract value represents management's estimate of our future contract value under unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options to purchase new
     aircraft and long-term agreements with fleet customers, as applicable.  Because the value in the unfunded IDIQ arrangements is subject to the customer's future exercise of an indeterminate quantity of orders, we recognize these contracts in backlog only when they are funded.
     Unexercised options are recognized in backlog when the customer exercises the option and establishes a firm order.


    Note:  Prior period information has been restated to reflect our axle business in discontinued operations.

http://photos.prnewswire.com/prnvar/20140722/129536

Photo - http://photos.prnewswire.com/prnh/20140722/129536

Note: Prior period information has been restated to reflect our axle business in discontinued operations.


                 EXHIBIT I


      SECOND QUARTER 2014 SIGNIFICANT
             ORDERS (UNAUDITED)

            DOLLARS IN MILLIONS

We received the following significant orders during the second quarter of 2014:

Combat Systems

    --  $290 from the U.S. Army under the Stryker wheeled armored vehicle
        program for the production of 93 double-V-hulled vehicles and for
        contractor logistics support.
    --  $50 from the U.S. Marine Corps for production of seven light armored
        vehicle (LAV) upgrade kits, testing and customer support.

Marine Systems

    --  $17.8 billion from the U.S. Navy for the construction of 10
        Virginia-class submarines under the multi-year Block IV contract,
        including $1.2 billion that was previously recognized as orders for
        long-lead material.
    --  $125 for the construction of a Jones Act product carrier from an
        affiliate of American Petroleum Tankers.
    --  $85 from the Navy for design work, including advanced nuclear plant
        studies, for the next-generation ballistic-missile submarine.
    --  $65 from the Navy for long-lead material for the fourth Mobile Landing
        Platform (MLP), configured as an Afloat Forward Staging Base (AFSB).

Information Systems and Technology

    --  $645 to extend the period of performance for support on the Canadian
        Maritime Helicopter Project (MHP).
    --  $425 from the Centers for Medicare & Medicaid Services (CMS) for
        contact-center services.
    --  $105 from the Navy for the procurement of material to support production
        of guidance and missile hardware.
    --  $80 from the Army under the Warfighter Information Network-Tactical
        (WIN-T) program for equipment and support services.
    --  $75 to provide design and support services on the U.S. Air Force's Space
        Fence program.
    --  $70 from the Army for ruggedized computing equipment under the Common
        Hardware Systems-4 (CHS-4) program.
    --  $60 from the U.K. Ministry of Defence for tactical communication systems
        spares and services.
    --  An indefinite delivery, indefinite quantity (IDIQ) contract from the
        Department of Homeland Security (DHS) to enhance mission effectiveness
        and create economies of scale through enhanced integration and
        consolidation. The program has a maximum potential value of $700 over
        seven years.


                                       EXHIBIT J


                       AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)


                Second  Quarter                 Six Months

                            2013                           2014  2013 2014
                            ----                           ----  ---- ----

    Gulfstream
     Green
     Deliveries
     (units):
    -----------


    Large-cabin
     aircraft                 30                             26    55   55


    Mid-cabin
     aircraft                  5                              7    10   13
                             ---                            ---   ---  ---


    Total                     35                             33    65   68
                             ===                            ===   ===  ===


    Gulfstream
     Outfitted
     Deliveries
     (units):
    -----------


    Large-cabin
     aircraft                 30                             26    55   59


    Mid-cabin
     aircraft                  6                             12    10   18
                             ---                            ---   ---  ---


    Total                     36                             38    65   77
                             ===                            ===   ===  ===


    Pre-owned
     Deliveries
     (units):                  3                              -    5    -
    -----------              ===                            ===  ===  ===

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SOURCE General Dynamics