Financial Analysis

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. On May 9, 2025, the U.S. Court of Appeals for the Fourth Circuit reversed an earlier decision of the District Court dismissing the plaintiffs complaint and remanded the case for further proceedings. On September 11, 2025, the defendants filed a petition for a writ of certiorari with the U.S. Supreme Court. 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 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Debt consisted of the following: December 31 2025 2024 Fixed-rate notes due: Interest rate: April 2025 3.250% $ $ 750 May 2025 3.500% 750 June 2026 1.150% 500 500 August 2026 2.125% 500 500 April 2027 3.500% 750 750 November 2027 2.625% 500 500 May 2028 3.750% 1,000 1,000 April 2030 3.625% 1,000 1,000 June 2031 2.250% 500 500 August 2035 4.950% 750 April 2040 4.250% 750 750 June 2041 2.850% 500 500 November 2042 3.600% 500 500 April 2050 4.250% 750 750 Other Various 74 76 Total debt principal 8,074 8,826 Less unamortized debt issuance costs and discounts 61 64 Total debt 8,013 8,762 Less current portion 1,006 1,502 Long-term debt $ 7,007 $ 7,260 In March 2025, we repaid fixed-rate notes of $750 with cash on hand and commercial paper issuances. In May 2025, we issued $750 of fixed-rate notes that mature in August 2035. The proceeds were used to repay fixed-rate notes of $750 that matured in May 2025. Interest payments associated with our debt were $376 in 2025, $385 in 2024 and $378 in 2023. The aggregate amounts of scheduled principal maturities of our debt are as follows: Year Ended December 31 Debt Principal 2026 $ 1,006 2027 1,257 2028 1,007 2029 7 2030 1,007 Thereafter 3,790 Total debt principal $ 8,074 On December 31, 2025, we had no commercial paper outstanding, but we maintain the ability to access the commercial paper market in the future. In addition, we have a $5 billion committed bank credit facility for general corporate purposes and working capital needs and …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

EQUITY COMPENSATION PLANS Equity Compensation Overview. We have equity compensation plans for employees, as well as for non-employee members of our Board. The equity compensation plans seek to provide an effective means of attracting and retaining directors, officers and key employees, and to provide them with incentives to enhance our growth and profitability. Under the equity compensation plans, awards may be granted to officers, employees or non-employee directors in common stock, options to purchase common stock, restricted shares of common stock, participation units (including RSUs, stock appreciation rights and phantom stock units) or any combination of these. Annually, we grant awards of stock options, restricted stock and RSUs to participants in our equity compensation plans in early March. Additionally, we may make limited ad hoc grants on a quarterly basis for new hires or promotions. We issue common stock under our equity compensation plans from treasury stock. On December 31, 2025, in addition to the shares reserved for issuance upon the exercise of outstanding stock options, approximately 13 million shares have been authorized for awards that may be granted in the future. Equity-based Compensation Expense. Equity-based compensation expense is included in G&A expenses. The following table details the components of equity-based compensation expense recognized in net earnings in each of the past three years: Year Ended December 31 2025 2024 2023 Stock options $ …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 December 31, 2025 or 2024. 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 December 31, 2025 and 2024, 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 Inpu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS Goodwill. The changes in the carrying amount of goodwill by reporting unit were as follows: Aerospace Marine Systems Combat Systems Technologies Total Goodwill December 31, 2023 (a) $ 3,199 $ 297 $ 2,812 $ 14,278 $ 20,586 Acquisitions (b) 9 39 158 206 Other (c) (123) (93) (20) (236) December 31, 2024 (a) 3,085 297 2,758 14,416 20,556 Acquisitions (b) 20 2 92 114 Other (c) 259 65 15 339 December 31, 2025 (a) $ 3,364 $ 297 $ 2,825 $ 14,523 $ 21,009 (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 Amortization Net Carrying Amount Gross Carrying Amount (a) Accumulated Amortization Net Carrying Amount December 31 2025 2024 Contract and program intangible assets (b) $ 3,241 $ (2,119) $ 1,122 $ 3,278 $ (1,989) $ 1,289 Trade names and trademarks 575 (345) 230 511 (289) 222 Technology and software 77 (54) 23 61 (52) 9 Other intangible assets 60 (60) 60 (60) Total intangible assets $ 3,953 $ (2,578) $ 1,375 $ 3,910 $ (2,390) $ 1,520 (a) Changes in gross carrying amounts consisted primarily of foreign currency translation and adjustments for divested intangible assets. (b) Consisted of acquired backlog and probable follow-on work and associated customer relat …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income Tax Provision. We calculate our provision for federal, state and foreign income taxes based on current tax law. The following is a summary of our net provision for income taxes for continuing operations: Year Ended December 31 2025 2024 2023 Current: U.S. federal $ 357 $ 622 $ 619 State 3 32 27 Foreign 277 190 200 Total current 637 844 846 Deferred: U.S. federal 282 (90) (131) State 16 (4) 7 Foreign (42) 8 (53) Total deferred 256 (86) (177) Provision for income taxes, net: U.S. federal 639 532 488 State 19 28 34 Foreign 235 198 147 Provision for income taxes, net $ 893 $ 758 $ 669 Net income tax payments $ 568 $ 560 $ 1,100 The reported tax provision differs from the amounts paid because some income and expense items are recognized in different time periods for financial reporting than for income tax purposes. This includes the impact of the requirement, effective January 1, 2022, through December 31, 2024, to capitalize and amortize over five years certain R&D expenditures that were previously deductible immediately for tax purposes. Among other changes, the Budget Reconciliation Act of 2025 (Act) allows for the immediate deduction of domestic research and development expenditures beginning January 1, 2025, and permits the accelerated deduction of amounts capitalized under prior law. We otherwise do not expect the Act to have a material effect on our tax provision. State and local income taxes allocable to U.S. government contracts are included in ope …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES We determine at its inception whether an arrangement that provides us control over the use of an asset is a lease. We recognize at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. We have elected not to recognize an ROU asset and lease liability for leases with terms of 12 months or less. Some of our leases include options to extend the term of the lease for up to 40 years or to terminate the lease within one year. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term for purposes of determining total future lease payments. As most of our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate on the commencement date to calculate the present value of future payments. Certain of our leases include variable payments, which may be calculated based on the Consumer Price Index (CPI) or similar indices at the lease commencement date. To the extent these variable payments are not considered fixed, we exclude such payments from the ROU asset and lease liability and expense as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions. In addition to the base rent, real estate leases typically …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements. In 2025, we adopted Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, using the prospective method of adoption. The ASU modifies our disclosure for income tax expense. In November 2024, the FASB issued ASU 2024-03, Disaggregation - Income Statement Expenses. The ASU requires disclosure of certain disaggregated costs and expenses on an annual and interim basis in the notes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, using the prospective or retrospective methods of adoption, with early adoption permitted. Although we have not determined the method or period of adoption, we expect to disclose additional information as required by the standard. There are other ASUs that have been issued by the FASB but are not yet effective. We do not expect that the adoption of these standards will have a material impact on our results of operations, financial condition or cash flows.

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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 Substantially all of our plans use a December 31 measurement date, consistent with our fiscal year. Defined Contribution Plans We provide eligible employees the opportunity to participate in defined contribution plans (commonly known as 401(k) plans), which permit contributions on a before-tax and after-tax basis. Employees may contribute to various investment alternatives. In most of these plans, we match a portion of the employees contributions. Our contributions to these plans totaled $560 in 2025, $517 in 2024 and $462 in 2023. On December 31, 2025 and 2024, the defined-contribution plans held approximately 14 million and 15 million shares of our common stock respectively, each representing approximately 5% and 6% of our outstanding shares, on December 31, 2025 and 2024, respectively. Defined Benefit Plans Plan Descriptions. We have trusteed, qualified pension plans covering eligible employees aligned with the markets in our business: U.S. government, non-U.S. government and commercial. Some of these plans require employees to make contributions to the plan. We also sponsor several non-qualified pension plans, which provide eligible executives with additional benefits, including excess benefits over limits imposed on qualified plans by federal tax law. The principal factor …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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 contracts 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 contracts 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. We classify revenue as products or services based on the predominant attributes of the associated performance obligation. Contract modifications are routine in the performance of our contracts. Contracts are often mod …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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. Our chief operating decision maker is our Chairman and Chief Executive Officer (CEO). We measure each segments profitability based on operating earnings. Segment operating earnings exclude net interest and other income and expense items. The Chairman and CEO uses segment operating earnings as an input when assessing segment performance and when making decisions to allocate financial resources between segments. The Chairman and CEO uses operating earnings in assessing segment performance by comparing operating earnings to prior period results and plan-to-actual variances. The Chairman and CEO also uses forecasted expense information for each segment to manage operations. Summary financial information for each of our segments follows: Revenue (a) Other Segment Items (b) Operating Earnings Year Ended December 31 2025 2024 2023 2025 2024 2023 2025 2024 2023 Aerospace $ 13,110 $ 11,249 $ 8,621 $ (11,364) $ (9,785) $ (7,439) $ 1,746 $ 1,464 $ 1,182 Marine Systems 16,723 14,343 12,461 (15,546) (13,408) (11,587) 1,177 935 874 Combat Systems 9,246 8,997 8,268 (7,915) (7,721) (7,121) 1,331 1,276 1,147 Technologies 13,471 13,127 12,922 (12,194) (11,867) (11,720) 1,277 1,260 1,202 Corporate (c) (175) (139) (160) Total $ 52,550 $ 47,716 $ 42,272 $ (47,019) $ (42,781) $ (37,867) $ 5,356 $ 4, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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, weapon 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 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 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. Use of Estimates. The nature of our business requires that we make estimates and assumptions in accordance with U.S. generally accepted accounting principles (GAAP). These estimates and assumptions 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 base our estimates on historical experience, currently available information and various other assumptions that we believe are reasonable …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Authorized Stock. Our authorized capital stock consists of 500 million shares of $1 per share par value common stock and 50 million shares of $1 per share par value preferred stock. The preferred stock is issuable in series, with the rights, preferences and limitations of each series to be determined by our board of directors (Board). Shares Issued and Outstanding. On December 31, 2025, we had 481,880,634 shares of common stock issued and 270,389,759 shares of common stock outstanding, including unvested restricted stock of 406,995 shares. On December 31, 2024, we had 481,880,634 shares of common stock issued and 270,340,502 shares of common stock outstanding. No shares of our preferred stock were outstanding on either date. The only changes in our shares outstanding during 2025 and 2024 resulted from shares repurchased in the open market and share activity under our equity compensation plans. See Note R for additional details. Share Repurchases. On December 4, 2024, the Board authorized management to repurchase up to 10 million additional shares of the companys outstanding stock. In 2025, we repurchased 2.5 million of our outstanding shares for $637 to cover dilution. On December 31, 2025, 6.8 million shares remained authorized by our Board for repurchase, representing 2.5% of our total shares outstanding. We repurchased 5.4 million shares for $1.5 billion in 2024 and 2 million shares for $434 in 2023. Dividends per Share. Our Board declared dividends per …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

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 purported 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 alleged that the conspiracy suppressed compensation paid to the putative class members, and the plaintiffs sought trebled monetary damages, attorneys fees, injunctive and other equitable relief. On May 9, 2025, the U.S. Court of Appeals for the Fourth Circuit reversed an earlier decision of the District Court dismissing the plaintiffs complaint and remanded the case for further proceedings. On September 11, 2025, the defendants filed a petition for a writ of certiorari with the U.S. Supreme Court. On May 18, 2026, the plaintiffs dismissed with prejudice the case against General Dynamics and its subsidiaries. Additionally, various other claims and legal proceedings incidental to the normal course of business are pending or threatened against us. These other matters relate …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Debt consisted of the following: July 5, 2026 December 31, 2025 Fixed-rate notes due: Interest rate: June 2026 1.150% $ $ 500 August 2026 2.125% 500 500 April 2027 3.500% 750 750 November 2027 2.625% 500 500 May 2028 3.750% 1,000 1,000 April 2030 3.625% 1,000 1,000 June 2031 2.250% 500 500 August 2035 4.950% 750 750 April 2040 4.250% 750 750 June 2041 2.850% 500 500 November 2042 3.600% 500 500 April 2050 4.250% 750 750 Other Various 72 74 Total debt principal 7,572 8,074 Less unamortized debt issuance costs and discounts 56 61 Total debt 7,516 8,013 Less current portion 1,256 1,006 Long-term debt $ 6,260 $ 7,007 In June 2026, we repaid fixed-rate notes of $500 at the scheduled maturity using cash on hand. Fixed-rate notes of $500 mature in August 2026. We currently plan to repay these notes using cash on hand but will continue to monitor market conditions as well as the need for future borrowings. On July 5, 2026, 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 the expiration date. We also have an effective shelf registration on file with the SEC that allows us to access the debt markets. Our financing arrangeme …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 July 5, 2026, or December 31, 2025. 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 July 5, 2026, and December 31, 2025, 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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS Goodwill. The changes in the carrying amount of goodwill by reporting unit were as follows: Aerospace Marine Systems Combat Systems Technologies Total Goodwill December 31, 2025 (a) $ 3,364 $ 297 $ 2,825 $ 14,523 $ 21,009 Acquisitions (b) (1) (1) Other (c) (39) (35) (7) (81) July 5, 2026 (a) $ 3,325 $ 297 $ 2,790 $ 14,515 $ 20,927 (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 Amortization Net Carrying Amount Gross Carrying Amount (a) Accumulated Amortization Net Carrying Amount July 5, 2026 December 31, 2025 Contract and program intangible assets (b) $ 3,239 $ (2,186) $ 1,053 $ 3,241 $ (2,119) $ 1,122 Trade names and trademarks 571 (351) 220 575 (345) 230 Technology and software 62 (55) 7 77 (54) 23 Other intangible assets 61 (60) 1 60 (60) Total intangible assets $ 3,933 $ (2,652) $ 1,281 $ 3,953 $ (2,578) $ 1,375 (a) Changes in gross carrying amounts consisted primarily of foreign currency translation and adjustments for acquired and divested intangible assets. (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 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

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: July 5, 2026 December 31, 2025 Deferred tax asset $ 19 $ 19 Deferred tax liability (1,329) (956) Net deferred tax liability $ (1,310) $ (937) Tax Uncertainties. We participate in the Internal Revenue Service (IRS) Compliance Assurance Process (CAP), a real-time review of our consolidated federal corporate income tax return. The IRS has examined our consolidated federal income tax returns through 2024. We are currently in a CAP phase (Bridge Plus) in which the IRS considers certain tax return information in advance to expedite their risk assessment and review of our return. 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 July 5, 2026, was not material to our results of operations, financial condit …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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 December31, 2025. These standards are not expected to have a material impact on our results of operations, financial condition or cash flows. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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 benefits For our defined benefit plans, net periodic benefit cost (credit) for the three- and six-month periods ended July 5, 2026, and June 29, 2025, consisted of the following: Pension Benefits Other Post-retirement Benefits Three Months Ended July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 Service cost $ 17 $ 17 $ 1 $ 1 Interest cost 137 150 6 6 Expected return on plan assets (179) (185) (8) (9) Net actuarial loss (gain) 50 27 (7) (8) Prior service (credit) cost (2) (2) 1 Net periodic benefit cost (credit) $ 23 $ 7 $ (8) $ (9) Six Months Ended Service cost $ 34 $ 35 $ 2 $ 2 Interest cost 274 299 12 13 Expected return on plan assets (358) (369) (16) (18) Net actuarial loss (gain) 100 54 (14) (16) Prior service (credit) cost (3) (3) 1 1 Net periodic benefit cost (credit) $ 47 $ 16 $ (15) $ (18) 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 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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 recognizing revenue. A contracts 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 several phases of the product life cycle (development, production, maintenance and support). For contracts with multiple performance obligations, we allocate the contracts 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. We classify revenue as products or services based on the predominant attributes of the associated performance obligation. Contract modifications are routine in the performance of our contracts. Contracts ar …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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. Our chief operating decision maker is our Chairman and Chief Executive Officer (CEO). We measure each segments profitability based on operating earnings. Segment operating earnings exclude net interest and other income and expense items. The Chairman and CEO uses segment operating earnings as an input when assessing segment performance and when making decisions to allocate financial resources between segments. The Chairman and CEO uses operating earnings in assessing segment performance by comparing operating earnings to prior period results and plan-to-actual variances. The Chairman and CEO also uses forecasted expense information for each segment to manage operations. Summary financial information for each of our segments follows: Revenue (a) Other Segment Items (b) Operating Earnings Three Months Ended July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 Aerospace $ 3,525 $ 3,062 $ (3,015) $ (2,659) $ 510 $ 403 Marine Systems 4,660 4,220 (4,318) (3,929) 342 291 Combat Systems 2,290 2,283 (1,972) (1,959) 318 324 Technologies 3,619 3,476 (3,280) (3,144) 339 332 Corporate (c) (49) (45) Total $ 14,094 $ 13,041 $ (12,585) $ (11,691) $ 1,460 $ 1,305 Six Months Ended Aerospace $ 6,804 $ 6,088 $ (5,801) $ (5,253) $ 1,003 $ 835 Marine Systems 9,003 7,809 ( …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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, weapon 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 qua …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Share Repurchases. In the six-month period ended July 5, 2026, we repurchased 0.9 million of our outstanding shares for $319 to cover dilution. On July 5, 2026, 5.8 million shares remained authorized by our board of directors (Board) for repurchase, representing 2.2% of our total shares outstanding. We repurchased 2.4 million shares for $600 in the six-month period ended June 29, 2025. Dividends per Share. Our Board declared dividends per share of $1.59 and $3.18 for the three- and six-month periods ended July 5, 2026, and $1.50 and $3.00 for the three- and six-month periods ended June 29, 2025, respectively. We paid cash dividends of $429 and $834 for the three- and six-month periods ended July 5, 2026 and, $402 and $785 for the three- and six-month periods ended June 29, 2025, 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 Hedges Foreign Currency Translation Adjustments Changes in Retirement Plans Funded Status AOCL December 31, 2025 $ 10 $ 873 $ (1,366) $ (483) Other comprehensive loss, pretax (14) (159) 87 (86) Provision for income tax, net 3 (17) (14) Other comprehensive loss, net of tax (11) (159) 70 (100) July 5, 2026 $ (1) $ 714 $ (1,296) $ (583) December 31, 2024 $ (76) $ 235 $ (1,677) $ (1,518) Other comprehensive income, pretax 119 607 34 760 Provision for income tax, net (30) (7) ( …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing