General Dynamics 2010 Annual Report Download - page 73

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Asummary ofrestrictedstock and restrictedstock unitactivity during
2010follows:
The total fair valueofshares vestedwas$51in2008, $29 in 2009
and $30 in 2010.
P. R E TIREMENT PLANS
We providedefined-benefitpensionandotherpost-retirementbenefits,
aswell asdefined-contributionbenefits, to eligibleemployees.
RetirementPlan Summary Information
PensionBenefits. We havesix noncontributory and six contributory
trusteed,qualifieddefined-benefitpensionplanscovering eligible
governmentbusiness employees, and two noncontributory and four
contributory planscovering eligiblecommercial business employees,
including someemployees ofour international operations. Theprimary
factorsaffecting thebenefits earnedbyparticipants in our pension plans
areemployees’yearsofserviceand compensationlevels.
We also sponsorseveral unfundedandonefundednon-qualified
supplemental executiveplans, which provideparticipants with additional
benefits, including excess benefits overlimits imposedon qualifiedplans
by federal tax law.
OtherPost-retirement Benefits. We maintain plansthatprovide
post-retirementhealthcarecoveragefor many ofour currentand former
employees and post-retirementlifeinsurancebenefits forcertain
retirees. These benefits vary by employmentstatus, age, serviceand
salary levelatretirement. Thecoverageprovidedandtheextenttowhich
theretirees sharein thecost oftheprogram vary throughoutthe
company.Theplansprovidehealth and lifeinsurancebenefits only to
those employees whoretiredirectly fromour serviceand not to those
whoterminate service/senioritypriorto eligibilityforretirement.
Defined-contributionBenefits. In additionto thedefined-benefit
plans, we provideeligibleemployees theopportunityto participate in
defined-contributionsavingsplans(commonly knownas401(k)plans),
which permitcontributionsonbothabefore-tax and after-tax basis.
Generally,salariedemployees and certain hourly employees areeligibleto
participate in theplans. Undermost plans, theemployee may contribute to
variousinvestmentalternatives, including investmentin our commonstock.
In someofthese plans, we matchaportionoftheemployees’
contributions. Our contributionstothese defined-contributionplanstotaled
$190 in 2008, $192 in 2009 and $195 in 2010. Thedefined-contribution
plansheld approximately 37 millionand36 millionshares ofour common
stock onDecember31, 2009 and 2010, respectively,representing
approximately 10percentofour outstanding shares onbothdates.
Contributionsand BenefitPayments
Itisour policy to fund our defined-benefitretirementplansinamannerthat
optimizes thetax deductibilityandcontractrecovery ofcontributions,
consideredwithin our framework ofcapital deploymentopportunities. We
makebothdiscretionary and requiredcontributionstoour pension plans
to providenot only forbenefits attributedto servicetodate, butalso for
benefits to beearnedinthefuture. Our requiredcontributionsaredetermined
in accordancewithIRSregulations.
We contributed$300 to our pensionplansin 2010, including a
voluntary $270contributionto our primary governmentpensionplan.We
expecttocontribute approximately $350 to our plansin 2011.Weare
subjecttothePensionProtectionActof2006 (PPA)beginning in 2011.
Whilethecontributionstoour pension plansdepend on a varietyof
factors, including theannual returnsonour plan assets, we expectour
contributionsin futureyearstoincrease underthePPA.
We maintain several tax-advantagedaccounts, primarily Voluntary
Employees’Beneficiary Association(VEBA)trusts, to fund theobligations
forsomeofour post-retirementbenefitplans. Fornon-fundedplans, claims
arepaid asreceived.Wecontributed$35 to our otherpost-retirement
plansin 2010and expecttocontribute approximately $30 in 2011.
We expectthefollowing benefits to bepaid fromour retirementplans
overthenext10years:
General Dynamics Annual Report • 201053
Shares/WeightedAverage
Share-EquivalentUnits Grant-Date Fair Value
NonvestedatDecember31, 2009 2,199,378$59.60
Granted532,723 73.44
Vested(441,359) 62.42
Forfeited(28,752) 54.16
NonvestedatDecember31,2010 2,261,990 $62.38
OtherPost-retirement
Benefits
2011 $ 430 $83
201244883
201347384
2014 493 84
201552184
2016-2020 3,044 414
Pension
Benefits