Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) (“Elbit Systems” or the “Company”) announced today that it expects to record non-cash expenses of approximately $52 million in the fourth quarter of 2023. The expenses are related to the write-off of inventory due to the closing of an underperforming subsidiary with limited synergies to the Company, and of contract assets related to a discontinued project managed under the subsidiary.
Approximately $34 million of the expenses are related to an uncollectible balance of contract assets under the discontinued project. These expenses will be recorded in the “general and administrative” line item in the consolidated statement of income.
Approximately $18 million of the expenses are related to the restructuring and discontinuing of the subsidiary’s activities. The restructuring expenses will be recorded in the “cost of revenues” line item in the consolidated statement of income and will be eliminated in the non-GAAP results due to their non-recurring nature.
The overall impact of these expenses on the Company’s financial results for the fourth quarter and full year 2023 will be included in the Company’s earnings release, which is planned to be released in March 2024.
