General Dynamics 4Q 2012 Non-GAAP Earnings down 31% and Annual 2012 Earnings down 13%

Below here are reconciliations of General Dynamics' Earnings as Reported and its Non-GAAP Adjusted Earnings for both the 4Qs of 2012 and 2011 and for annual 2012 and 2011:

	4Q	4Q	%		Annual	Annual	%
	2012	2011	Decrease		2012	2011	Decrease
	mil $s	mil $s			mil $s	mil $s
Net Income (Loss) to Common Shareholders, as Reported	(2,130)	603	-453%		(332)	2,552	-113%
Adjustments:
Goodwill Impairment	1,994				1,994
Other Intangible Asset Impairment	301	111			301	111
Contract Dispute Accruals	292				292
Debt Retirement Charge	123				123
Restructuring-related Charges	98				98
Inventory-related Charges	53				78
Tax Effect of Above Pretax Charges	(240)				(249)
Non-GAAP Adjusted Net Income	491	714	-31%		2,305	2,663	-13%

And from the most recent 2011 Proxy Statement filed with the SEC, below here is the executive compensation information for Jay Johnson, the Chairman and CEO of General Dynamics:

						All
				Stock	Option	Other	Total
	Year	Salary	Bonus	Awards	Awards	Compensation	Compensation
Johnson	2011	1,400,000	3,600,000	3,525,047	7,049,856	483,177	16,058,080

Included in the above $483,177 of Johnson's All Other Compensation for 2011 were the following items:

The aggregate incremental cost to General Dynamics for Mr. Johnson’s personal travel aboard aircraft owned by the company (products of subsidiary Gulfstream Aerospace Corporation), as required by the Board to help ensure Mr. Johnson’s security and accessibility, was $291,516.

Perquisites that exceeded the greater of $25,000 or 10 percent of the total amount of perquisites were as follows: Mr. Johnson –$58,931 relates to home security systems and $27,200 relates to club memberships.

Amounts contributed by General Dynamics to the SSIP and allocations by General Dynamics to the Supplemental SSIP for 2011 were as follows: Mr. Johnson – $63,000.

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General Dynamics gets a substantial portion of its Revenues and Earnings from the US Government.  Thus the huge Goodwill and Other Intangible Asset Impairments totaling $2.3 bil in just the 4Q 2012 is indirectly being financed by the US taxpayer.

When you review many of the above extravagant compensation elements, it's difficult for me to understand why the Business Roundtable is now strongly lobbying for both Social Security and Medicare Benefits for retirees to be delayed until Age 70, especially when US Government spending to US Defense Contractors like General Dynamics has been so excessive.