Cover page
Cover page | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Entity File Number | 0-28998 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | ELBIT SYSTEMS LTD. |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | Advanced Technology Center |
Entity Address, City or Town | Haifa |
Entity Address, Postal Zip Code | 3100401 |
Entity Address, Country | IL |
Title of 12(b) Security | Ordinary Shares, nominal value 1.0 New Israeli Shekel per share |
Trading Symbol | ESLT |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 44,344,206 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001027664 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Advanced Technology Center |
Entity Address, City or Town | Haifa |
Entity Address, Postal Zip Code | 3100401 |
Entity Address, Country | IL |
Contact Personnel Name | Dr. Yaacov Kagan |
Contact Personnel Email Address | kobi.kagan@elbitsystems.com |
Country Region | 972 |
City Area Code | 77 |
Local Phone Number | 294-6663 |
Phone Fax Number Description | 8316659 |
Entity Address, Address Line Two | P.O. Box 539 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Kost Forer Gabbay & Kasierer |
Auditor Location | Tel Aviv, Israel |
Auditor Firm ID | 1281 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 197,429 | $ 211,108 |
Short-term bank deposits | 10,518 | 1,040 |
Trade and unbilled receivables and contract assets, net | 2,716,762 | 2,574,605 |
Other receivables and prepaid expenses | 285,352 | 298,698 |
Inventories, net | 2,298,019 | 1,946,326 |
Total current assets | 5,508,080 | 5,031,777 |
LONG-TERM INVESTMENTS AND RECEIVABLES: | ||
Investments in affiliated companies and other companies | 145,350 | 159,604 |
Long-term trade and unbilled receivables and contract assets | 364,719 | 374,054 |
Long-term bank deposits and other receivables | 87,648 | 112,525 |
Deferred income taxes, net | 23,423 | 20,025 |
Severance pay fund | 206,943 | 227,786 |
Total long-term investments and receivables | 828,083 | 893,994 |
OPERATING LEASE RIGHT OF USE ASSETS | 425,884 | 405,446 |
PROPERTY, PLANT AND EQUIPMENT, NET | 1,087,950 | 949,207 |
GOODWILL | 1,499,065 | 1,502,494 |
OTHER INTANGIBLE ASSETS, NET | 390,520 | 432,733 |
TOTAL ASSETS | 9,739,582 | 9,215,651 |
CURRENT LIABILITIES: | ||
Short-term credit and loans | 576,594 | 115,076 |
Current maturities of long-term loans and Series B, C and D Notes | 75,286 | 76,555 |
Operating lease liabilities | 67,390 | 69,322 |
Trade payables | 1,254,126 | 1,067,818 |
Other payables and accrued expenses | 1,194,347 | 1,171,357 |
Contract liabilities | 1,656,103 | 1,777,161 |
Total current liabilities | 4,823,846 | 4,277,289 |
LONG-TERM LIABILITIES: | ||
Long-term loans, net of current maturities | 41,227 | 264,541 |
Series B, C and D Notes, net of current maturities | 342,847 | 415,537 |
Employee benefit liabilities | 510,416 | 618,088 |
Deferred income taxes and tax liabilities, net | 55,240 | 72,965 |
Contract liabilities | 354,319 | 217,075 |
Operating lease liabilities | 363,100 | 344,585 |
Other long-term liabilities | 298,296 | 247,896 |
Total long-term liabilities | 1,965,445 | 2,180,687 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Share Capital: | ||
Ordinary shares of 1 New Israeli Shekels (“NIS”) par value each; Authorized – 80,000,000 shares as of December 31, 2023 and 2022; Issued and outstanding 44,453,850 and 44,344,206 shares as of December 31, 2023 and 2022, respectively. | 12,816 | 12,786 |
Additional paid-in capital | 443,570 | 431,429 |
Accumulated other comprehensive loss | (17,797) | (71,558) |
Retained earnings | 2,508,914 | 2,382,564 |
Total Elbit Systems Ltd. equity | 2,947,503 | 2,755,221 |
Non-controlling interests | 2,788 | 2,454 |
Total equity | 2,950,291 | 2,757,675 |
TOTAL LIABILITIES AND EQUITY | $ 9,739,582 | $ 9,215,651 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share (in shekels per share) | ₪ 1 | ₪ 1 |
Common Stock, Shares Authorized (in shares) | 80,000,000 | 80,000,000 |
Common Stock, Shares Issued (in shares) | 44,453,850 | 44,344,206 |
Common Stock, Shares, Outstanding (in shares) | 44,453,850 | 44,344,206 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 5,974,744 | $ 5,511,549 | $ 5,278,521 |
Cost of revenues | 4,491,790 | 4,138,266 | 3,920,473 |
Gross profit | 1,482,954 | 1,373,283 | 1,358,048 |
Operating expenses: | |||
Research and development, net | 424,420 | 435,650 | 395,087 |
Marketing and selling, net | 359,141 | 326,020 | 291,751 |
General and administrative, net | 330,285 | 313,047 | 267,362 |
Other operating income, net | 0 | (68,918) | (14,660) |
Total operating expenses | 1,113,846 | 1,005,799 | 939,540 |
Operating income | 369,108 | 367,484 | 418,508 |
Financial expenses, net | (137,827) | (51,364) | (40,393) |
Other income (expenses), net | (4,787) | (23,562) | 5,336 |
Income before income taxes | 226,494 | 292,558 | 383,451 |
Income taxes | (22,913) | (24,131) | (131,387) |
Net income after taxes | 203,581 | 268,427 | 252,064 |
Equity in net earnings of affiliated companies and partnerships | 12,275 | 7,042 | 22,599 |
Net income | 215,856 | 275,469 | 274,663 |
Less: net income attributable to non-controlling interests | (725) | (21) | (313) |
Net income attributable to Elbit Systems Ltd.’s shareholders | $ 215,131 | $ 275,448 | $ 274,350 |
Earnings Per Share [Abstract] | |||
Basic net earnings per share (in usd per share) | $ 4.85 | $ 6.21 | $ 6.21 |
Diluted net earnings per share (in usd per share) | $ 4.82 | $ 6.18 | $ 6.20 |
Weighted average number of shares used in computation of basic earnings per share (in shares) | 44,375 | 44,322 | 44,204 |
Weighted average number of shares used in computation of diluted earnings per share (in shares) | 44,592 | 44,581 | 44,278 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Net income | $ 215,856 | $ 275,469 | $ 274,663 | |
Other comprehensive income, (loss) net of tax: | ||||
Foreign currency translation differences | [1] | 4,572 | (17,946) | (4,193) |
Unrealized gains (losses) on derivative instruments | [1] | (15,197) | (87,004) | 71,245 |
Pension and other post-retirement benefit plans | [1] | 64,517 | 130,329 | 47,915 |
Other Comprehensive Income (Loss), Net of Tax | [1] | 53,892 | 25,379 | 114,967 |
Total comprehensive income | 269,748 | 300,848 | 389,630 | |
Less: comprehensive income attributable to non-controlling interest | 856 | 899 | (1,915) | |
Comprehensive income attributable to Elbit Systems Ltd.’s shareholders | $ 270,604 | $ 301,747 | $ 387,715 | |
[1] Other comprehensive income (loss), net of tax expenses (tax benefit) in the amounts of $132, $1,419 and $(6,186) for the years 2023, 2022 and 2021, respectively. |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) allocated to other comprehensive income (loss) | $ 132 | $ 1,419 | $ (6,186) |
Statements Of Changes In Equity
Statements Of Changes In Equity - USD ($) $ in Thousands | Total | Share Capital | Additional paid–in capital | Accumulated other comprehensive income (loss) | Retained earnings | Non– controlling interest | |
Beginning balance, shares at Dec. 31, 2020 | 44,198,330 | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 2,231,367 | $ 12,742 | $ 415,654 | $ (211,222) | $ 2,000,980 | $ 13,213 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of options | 20 | $ 20 | |||||
Stock-based compensation | 5,312 | 5,312 | |||||
Deconsolidation of a subsidiary | 0 | ||||||
Dividends paid and declared | (80,066) | (79,566) | (500) | ||||
Other comprehensive income, net of tax expense | 114,967 | [1] | 113,365 | 1,602 | |||
Less: net income attributable to non-controlling interests | 313 | 313 | |||||
Net income attributable to Elbit Systems Ltd.'s shareholders | 274,350 | 274,350 | |||||
Ending balance, shares at Dec. 31, 2021 | 44,260,868 | ||||||
Ending balance, value at Dec. 31, 2021 | 2,546,263 | $ 12,762 | 420,966 | (97,857) | 2,195,764 | 14,628 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of options (in shares) | 62,538 | ||||||
Exercise of options | 24 | $ 24 | |||||
Stock-based compensation | 10,463 | 10,463 | |||||
Deconsolidation of a subsidiary | (11,275) | (11,275) | |||||
Dividends paid and declared | (88,648) | (88,648) | |||||
Other comprehensive income, net of tax expense | 25,379 | [1] | 26,299 | (920) | |||
Less: net income attributable to non-controlling interests | 21 | 21 | |||||
Net income attributable to Elbit Systems Ltd.'s shareholders | $ 275,448 | 275,448 | |||||
Ending balance, shares at Dec. 31, 2022 | 44,344,206 | 44,344,206 | |||||
Ending balance, value at Dec. 31, 2022 | $ 2,757,675 | $ 12,786 | 431,429 | (71,558) | 2,382,564 | 2,454 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of options (in shares) | 83,338 | ||||||
Exercise of options | 30 | $ 30 | |||||
Stock-based compensation | 12,141 | 12,141 | |||||
Deconsolidation of a subsidiary | 0 | ||||||
Dividends paid and declared | (89,303) | (88,781) | (522) | ||||
Other comprehensive income, net of tax expense | 53,892 | [1] | 53,761 | 131 | |||
Less: net income attributable to non-controlling interests | 725 | 725 | |||||
Net income attributable to Elbit Systems Ltd.'s shareholders | $ 215,131 | 215,131 | |||||
Ending balance, shares at Dec. 31, 2023 | 44,453,850 | 44,453,850 | |||||
Ending balance, value at Dec. 31, 2023 | $ 2,950,291 | $ 12,816 | $ 443,570 | $ (17,797) | $ 2,508,914 | $ 2,788 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of options (in shares) | 109,644 | ||||||
[1] Other comprehensive income (loss), net of tax expenses (tax benefit) in the amounts of $132, $1,419 and $(6,186) for the years 2023, 2022 and 2021, respectively. |
Statements Of Changes In Equi_2
Statements Of Changes In Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax expense (benefit) allocated to other comprehensive income (loss) | $ 132 | $ 1,419 | $ (6,186) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 215,856 | $ 275,469 | $ 274,663 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 164,799 | 161,290 | 153,091 |
Stock-based compensation | 12,141 | 10,463 | 5,312 |
Amortization of Series B, C and D related issuance costs, net | 579 | 773 | 399 |
Deferred income taxes and reserve, net | (13,165) | (2,219) | 39,095 |
Gain on sale of property, plant and equipment | (651) | (18,995) | (14,457) |
Gain on sale of investments, remeasurement of investments held under fair value method | 4,990 | (7,360) | (15,153) |
Equity in net earnings of affiliated companies and partnerships, net of dividend received(*) | 10,046 | 11,368 | 7,724 |
Changes in operating assets and liabilities, net of amounts acquired: | |||
Decrease (increase) in short and long-term trade and unbilled receivables and contract assets, net and prepaid expenses | (96,594) | 97,151 | (430,296) |
Increase in inventories, net | (351,594) | (305,058) | (336,221) |
Increase (decrease) in trade payables, other payables and accrued expenses | 175,446 | (123,289) | 105,201 |
Severance, pension and termination indemnities, net | (24,331) | (51,689) | 9,834 |
Increase in contract liabilities | 16,187 | 192,164 | 617,740 |
Net cash provided by operating activities | 113,709 | 240,068 | 416,932 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property, plant and equipment and other assets | (187,037) | (205,110) | (188,624) |
Acquisitions of subsidiaries and business operations, net of cash assumed (Schedule A) | (10,380) | (12,430) | (385,011) |
Investments in affiliated companies and other companies, net | (5,416) | (4,466) | (1,828) |
Deferred payment on acquisition | 0 | 81,487 | 0 |
Deferred payment on acquisition | 0 | 50,749 | 60,560 |
Proceeds from sale of property, plant and equipment | 1,466 | 24,882 | 25,745 |
Proceeds from sale of investments | 151 | 11,651 | 16,177 |
Proceeds from sale of long-term deposits, net | 83 | 186 | 481 |
Payments to acquire short-term investments | (9,467) | ||
Proceeds from sale, maturity and collection of short-term investments | 2,567 | 5,899 | |
Net cash used in investing activities | (210,600) | (151,982) | (587,721) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from exercise of options | 30 | 24 | 20 |
Issuance of commercial paper | 313,620 | 0 | 0 |
Repayment of long-term loans | (246,231) | (122,353) | (536,062) |
Proceeds from long-term loans | 20,000 | 39,547 | 476,273 |
Issuance of Series B, C, D Notes, net of issuance costs | 0 | 0 | 575,249 |
Repayment of Series B, C and D Notes | (62,434) | (65,379) | 0 |
Dividends paid | (89,248) | (86,813) | (79,175) |
Change in short-term bank credit and loans, net | 147,475 | 99,003 | (285,317) |
Net cash provided by (used in) financing activities | 83,212 | (135,971) | 150,988 |
Net decrease in cash and cash equivalents | (13,679) | (47,885) | (19,801) |
Cash and cash equivalents at the beginning of the year | 211,108 | 258,993 | 278,794 |
Cash and cash equivalents at the end of the year | 197,429 | 211,108 | 258,993 |
Supplemental Cash Flow Information [Abstract] | |||
Dividends received from affiliated companies and partnerships | 22,321 | 18,409 | 30,323 |
Income taxes, net | 30,708 | 75,593 | 38,168 |
Interest | 66,766 | 25,579 | 18,990 |
Estimated net fair value of assets acquired and liabilities assumed at the date of acquisition was as follows: | |||
Working capital (deficit), net (excluding cash and cash equivalents) | 246 | 5,085 | (55,589) |
Property, plant and equipment | 19 | 5,163 | 32,094 |
Other long-term assets | 77 | 0 | 1,612 |
Goodwill and other intangible assets | 16,220 | 38,017 | 451,101 |
Purchase price | 0 | (8,191) | 0 |
Deferred income taxes | 0 | (171) | (33,088) |
Employee benefit liabilities, net | 0 | (269) | (653) |
Long-term liabilities | (6,182) | (27,204) | (10,466) |
Purchase price | 10,380 | 12,430 | 385,011 |
Estimated net fair value of assets and liabilities that exited consolidation scope was as follows: | |||
Working capital (deficit), net (excluding cash and cash equivalents) | 0 | (35,901) | 0 |
Property, plant and equipment | 0 | (48,365) | 0 |
Other long-term assets | 0 | (4,254) | 0 |
Other long-term liabilities | 0 | 12,870 | 0 |
Other comprehensive income | 0 | (3,177) | 0 |
Non-controlling interest | 0 | 11,275 | 0 |
Gain from deconsolidation | 0 | (13,935) | 0 |
Recognized Identifiable Net Assets (Liabilities) Deconsolidated, Less Noncontrolling Interest | 0 | (81,487) | 0 |
Purchase of property and equipment with accounts payable | $ 82,515 | $ 41,272 | $ 0 |
Long-Term Loans, Net Of Current
Long-Term Loans, Net Of Current Maturities | 12 Months Ended |
Dec. 31, 2023 | |
Loans Payable, Noncurrent [Abstract] | |
Long-Term Loans, Net Of Current Maturities | LONG-TERM LOANS, NET OF CURRENT MATURITIES Currency Interest % Years of maturity December 31, 2023 December 31, 2022 Long-term loans USD L + 1.35% - 1.75% 2024-2026 $ 1,504 $ 213,559 EURO 2.02% - 2.50% 2024-2028 51,333 60,190 Other — 1,954 52,837 275,703 Less: current maturities 11,610 11,162 $ 41,227 $ 264,541 For covenants see Note 21E. As of December 31, 2023, the LIBOR quarterly interest rate for long-term loans denominated in U.S. dollars was 5.59% . The maturities of these loans for periods after December 31, 2023, are as follows: 2024 - current maturities 11,610 2025 11,844 2026 11,959 2027 and thereafter 17,424 $ 52,837 |
General
General | 12 Months Ended |
Dec. 31, 2023 | |
General [Abstract] | |
General | GENERAL A. GENERAL Elbit Systems Ltd. (“Elbit Systems”) is an Israeli corporation that is approximately 44.05% owned by Federmann Enterprises Ltd. Elbit Systems’ shares are traded on the Nasdaq Global Select Market in the United States (“Nasdaq”) and on the Tel-Aviv Stock Exchange (“TASE”). Elbit Systems and its subsidiaries (collectively the “Company”) are engaged mainly in the fields of defense, homeland security and commercial aviation. Elbit Systems' major wholly-owned subsidiaries are Elbit Systems of America, LLC (“ESA”), Elbit Systems Electro-Optics Elop Ltd. (“Elop”), Elbit Systems C4I and Cyber Ltd. (“C4I and Cyber”), Elbit Systems EW and SIGINT - Elisra Ltd. (“Elisra”), Elbit Systems Land Ltd. (“ELS”) and IMI Systems Ltd. (“IMI”). The Company reports segment information in five segments. The Company’s segments are organized based on a combination of the nature of products and services offered, together with a organizational structure. (See Note 2AC and Note 23). The Company’s five reportable segments are: – Aerospace – mainly provides products and systems for airborne platforms, unmanned aerial solutions, precision guided munition (PGM) sensors, aerostructures, training and simulator systems, flight academy solutions, as well as commercial aviation systems. – C4I and Cyber – mainly provides C4ISR systems, data links and radio communication systems and equipment, cyber intelligence solutions, autonomous solutions and homeland security solutions. – Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) and Electronic Warfare (EW) – mainly provides a wide range of electro-optic and laser systems and products and also provides a wide range of EW systems and SIGINT systems. – Land – mainly provides land-based systems and products for armored and other military vehicles, artillery and mortar systems, munitions for land, air and sea applications including PGM, armored vehicle and other platforms’ survivability and protection systems. – Elbit Systems of America (“ESA”) – mainly provides products and systems solutions principally to U.S. military, foreign military sales (FMS/FMF), homeland security (HLS), medical instrumentation and commercial aviation customers. B. SALES TO GOVERNMENTAL AGENCIES The Company derives a majority of its revenues from direct or indirect sales to governments or governmental agencies. As a result, these sales are subject to the special risks associated with sales to governments or governmental agencies. These risks include, among others, dependence on the resources allocated by governments to defense programs, changes in governmental priorities, anti-corruption regulations, changes in governmental regulations, cyber security and information assurance requirements and changes in governmental approvals regarding export licenses required for the Company’s products and for its suppliers. As for major customers, refer to Note 23B. Note 1 - GENERAL C. "SWORDS OF IRON" WAR On October 7, 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of brutal attacks on civilian and military targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located along Israel’s border with the Gaza Strip and in many other parts of Israel. Israel has also been attacked by other terrorist organizations on different fronts, including from Lebanon, which have prompted military responses from Israel. Following the attacks, the State of Israel declared a state of war, which is ongoing. Since the commencement of hostilities, Elbit Systems has experienced a material increased demand for our products and solutions from the IMOD compared to the demand levels prior to the war. We have also increased our support to the IMOD, mainly through deliveries of our systems and the dedicated efforts of our employees. The developments related to the war are difficult to predict. Subject to future developments, the IMOD's increased demand for the Company's products and solutions may continue and could generate additional material orders to the Company. At the same time, the Company continues to support its international customers. While the vast majority of our facilities in Israel continue to operate uninterrupted, some of our operations have experienced disruptions due to supply chain and operational constraints, the relocation of certain production lines, evacuation of employees and mobilization of our employees for reserve duty. As of December 31, 2023, approximately 15% of our work force in Israel had been mobilized. As of March 15, 2024, the number of employees mobilized has decreased to approximately 7%, and could fluctuate depending on future developments. Elbit Systems has taken a number of steps to protect the safety and security of our employees, support our increased production, mitigate potential supply chain disruptions and maintain business continuity, among them relocation of production lines from facilities in areas of the country that have been evacuated to other facilities; recruitment of additional employees; increased monitoring of our global supply chain to identify delays, shortages and bottlenecks; rescheduled deliveries to certain of our customers as necessary; and increased inventories. The extent of the effects of the war on the Company's performance will depend on the future developments of the war that are difficult to predict at this time, including its duration and scope. We continue to monitor the situation closely. D. ACQUISITIONS AND INVESTMENTS 1. On April 1, 2023, ESA completed the acquisition of 100% of Pacific Electronics Enterprises Inc. ("PEE") for a purchase price of approximately $10,000. PEE is located in Huntington beach, California, and specializes in the overhaul and repair of a wide spectrum of avionic equipment (communication, navigation, radar) and ground-based electronic systems. 2. On April 1, 2022, the Company completed the acquisition of 100% of an Israeli affiliated company, Opgal Industries Ltd. previously held by the Company at 50%, for a purchase price of an amount of approximately $8,000. 3. On November 1, 2022 , the Company completed the acquisition of 100% of a Swiss company, for a purchase price of approximately $24,000, of which approximately $21,000 is contingent consideration, which may become payable on the occurrence of certain future events. As of December 31, 2023, the contingent consideration was approximately $22,100 (See Note 20). . Note 1 - GENERAL (Cont.) D. ACQUISITIONS AND INVESTMENTS (Cont.) 4. On November 25, 2018, the Company completed the acquisition of 100% of the interests in an Israeli company, IMI Systems Ltd. and its subsidiaries (collectively: “IMI”), for a total nominal consideration of approximately $520,000 (approximately NIS 1,900 million). The consideration was comprised of the following: approximately $380,000 (approximately NIS 1,400 million) paid in cash, approximately $24,000 (approximately NIS 90 million) is contingent consideration recorded at fair value subject to IMI achieving agreed performance goals, which may become payable on the occurrence of certain future events. As of December 31, 2023, the contingent consideration was approximately $15,300 (See Note 20). Further to the acquisition agreement, the Company was entitled to premises evacuation compensation in the amount of approximately $365,000 (approximately NIS 1,365 million), upon the relocation of certain of IMI's facilities. During 2019, the Company sold the premises evacuation receivable for the amount of approximately $345,000 to an Israeli bank and accounted for the transaction as a true sale under ASC 860. The Company is still entitled to receive building inputs index adjustments on the base premises evacuation receivable, which is recorded as a financial asset measured at fair value and as of December 31, 2023 amounted to approximately $55,700 (See Note 8). During 2022, the Company sold IMI's holdings in 84.98%-owned subsidiary, Ashot Ashkelon Industries Ltd. (TASE: ASHO), for approximately $81,487. As a result the Company recognized a gain of approximately $7,053. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). A. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The most significant assumptions are employed in estimates used in determining values of business combinations, impairment of long-lived assets and goodwill, useful lives of long-lived assets, income taxes including the valuation of deferred tax assets and uncertain tax positions, stock-based compensation expenses, post-employment benefits liabilities (including the actuarial assumptions), as well as in estimates used in applying the Company's revenue recognition policies. Actual results may differ from estimated results. B. FUNCTIONAL CURRENCY The Company’s revenues are generated mainly in U.S. dollars. In addition, most of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances of the Company and certain subsidiaries that are denominated in other currencies have been remeasured into U.S. dollars in accordance with principles set forth in ASC 830, “Foreign Currency Matters”. All exchange gains and losses from the remeasurement mentioned above are reflected in the statement of income as financial expenses or income, as appropriate. For those Israeli and non-Israeli subsidiaries and investees whose functional currency has been determined to be other than the U.S. dollar, assets and liabilities are translated at year-end exchange rates, and statement of income items are translated at average exchange rates prevailing during the year. Resulting translation differences are recorded as a separate component of accumulated other comprehensive income (loss) in equity. C. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Elbit Systems and its wholly and majority-owned subsidiaries and variable interest entities that are required to be consolidated. Intercompany transactions and balances, including profit from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) D. COMPREHENSIVE INCOME The Company accounts for comprehensive income in accordance with ASC 220, “Comprehensive Income”. This statement establishes standards for the reporting and display of comprehensive income and its components. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. Accordingly, the Company presents a separate statement of consolidated comprehensive income. The following table displays the changes in accumulated other comprehensive income (loss), net of taxes, in the amount of $53,761, $26,299 and $113,365, for the years ended December 31, 2023, 2022 and 2021, respectively, by components: Unrealized gains (losses) on derivative instruments Unrealized gains (losses) with respect to pension and post-retirement benefit plans Foreign currency translation differences Total Balance as of January 1, 2021 $ (20,675) $ (147,096) $ (43,451) $ (211,222) Other comprehensive income (loss) 100,900 47,229 (5,795) 111,519 Amount reclassified from accumulated other comprehensive income (loss) (29,655) 686 — 1,846 Net current-period other comprehensive income (loss) 71,245 47,915 (5,795) 113,365 Balance as of January 1, 2022 $ 50,570 $ (99,181) $ (49,246) $ (97,857) Other comprehensive income (loss) before reclassifications (138,485) 127,673 (15,743) (26,555) Amount reclassified from accumulated other comprehensive income (loss) 51,481 2,656 (1,283) 52,854 Net current-period other comprehensive income (loss) (87,004) 130,329 (17,026) 26,299 Balance as of January 1, 2023 $ (36,434) $ 31,148 $ (66,272) $ (71,558) Other comprehensive income (loss) before reclassifications (112,641) 88,686 4,441 (19,514) Amount reclassified from accumulated other comprehensive income (loss) 97,444 (24,169) — 73,275 Net current-period other comprehensive income (loss) (15,197) 64,517 4,441 53,761 Balance as of December 31, 2023 $ (51,631) $ 95,665 $ (61,831) $ (17,797) Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) E. BUSINESS COMBINATIONS The Company applies ASC 805, “Business Combinations”. ASC 805 requires recognition of assets acquired, liabilities assumed and non-controlling interest in the acquired entity at the acquisition date, measured at their fair values as of that date. This ASC also requires the fair value of acquired in-process research and development (“IPR&D”) to be recorded as intangibles with indefinite lives, contingent consideration to be recorded on the acquisition date and restructuring and acquisition-related deal costs to be expensed as incurred. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. F. CASH AND CASH EQUIVALENTS Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, when purchased. G. SHORT-TERM BANK DEPOSITS Short-term bank deposits are deposits with original maturities of more than three months but less than one year. The short-term bank deposits are presented at their cost, which approximates fair value. H. INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventory write-offs are provided to cover risks arising from slow-moving items or technological obsolescence for which recoverability is not probable. Cost is determined as follows: • Raw materials using the average or FIFO cost method. • Work in progress: • Costs incurred on certain long-term contracts in progress, but for which control has not transferred to the customer, include direct labor, material, subcontractors, other direct costs and an allocation of overheads, which represent recoverable costs incurred for production, allocable operating overhead cost and, where appropriate, research and development costs (See Note 2(U)). • Labor overhead is generally included on the basis of updated hourly rates and is allocated to each project according to the amount of hours expended. Material overhead is generally allocated to each project based on the value of direct material that is charged to the project. Pre-contract costs are generally expensed, but can be deferred and included in inventory only when such costs can be directly associated with a specific anticipated contract and if their recoverability from the specific anticipated contract is probable according to the guidelines of ASC 606. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) I. INVESTMENT IN AFFILIATED COMPANIES, PARTNERSHIPS AND OTHER COMPANIES Investments in affiliated companies and partnerships that are not controlled but over which the Company can exercise significant influence (generally, entities in which the Company holds approximately between 20% to 50% of the voting rights of the investee) are presented using the equity method of accounting. Profits on inter-company sales, not realized outside the Company, are eliminated. The Company discontinues applying the equity method when its investment (including advances and loans) is reduced to zero and the Company has not guaranteed obligations of the affiliate or otherwise committed to provide further financial support to the affiliate. For certain investments, the Company elected to measure the investments at fair value. Such elections are irrevocable. Under the fair value method, investments are recorded at fair value and any changes in fair value are reported in the consolidated statements of operations. All costs (other than purchase price) directly associated with the acquisition of an investment to be accounted for using the fair value method are expensed as incurred. Investments in preferred shares, which do not result in significant influence and without readily determinable fair value, are measured at cost, less impairments, plus or minus observable price changes. Equity investments without readily determinable fair value are assessed for impairment periodically. Management evaluates investments in affiliated companies, partnerships and other non-marketable equity securities for evidence of other-than-temporary declines in value. Such evaluation is dependent on the specific facts and circumstances. Accordingly, in determining whether other-than-temporary declines exist, management evaluates various indicators for other-than-temporary declines and evaluates financial information (e.g, budgets, business plans, financial statements, etc.) . D uring 2023, 2022 and 2021 no impairment was recorded. J. VARIABLE INTEREST ENTITIES ASC 810-10, “Consolidation”, provides a framework for identifying variable interest entities (“VIEs”) and determining when a company should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statements. According to ASC 810-10, the Company consolidates a VIE when it has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The determination of whether the Company should consolidate a VIE is evaluated continuously as existing relationships change or future transactions occur. The Company’s assessment of whether an entity is a VIE and the determination of the primary beneficiary is judgmental in nature and involves the use of significant estimates and assumptions. Those include, among others, forecasted cash flows, their respective probabilities and the economic value of certain preference rights. In addition, such assessment also involves estimates of whether an entity can finance its current activities, until it reaches profitability, without additional subordinated financial support. Also according to ASC 810, a non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as a separate component of equity in the consolidated financial statements. As such, changes in the parent’s ownership interest with no change of control are treated as equity transactions, rather than acquisitions achieved in stages or dilution gains or losses. Losses of partially-owned consolidated subsidiaries will continue to be allocated to the non-controlling interests even when the investment in the subsidiary was already reduced to zero. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) J. VARIABLE INTEREST ENTITIES (Cont.) A 51%-held subsidiary in the U.K. (the “UK Subsidiary”) is considered to be a VIE. As Elbit Systems is the primary beneficiary and has both the power to direct its activities and absorb the majority of its losses or the right to the majority of its earnings based upon holding the 51% economic interest, the UK Subsidiary is consolidated in the Company’s financial statements. The Company holds 50% of the contractual rights in, and is the primary beneficiary of, an Israeli limited partnership, which is considered to be a VIE and is consolidated in the Company’s financial statements. K. LONG-TERM RECEIVABLES Long-term trade, unbilled (contract assets) and other receivables, with payment terms in excess of one year that are considered collectible, are recorded at their estimated present values (determined based on the market interest rates at the date of initial recognition). L. LONG-TERM BANK DEPOSITS Long-term bank deposits are deposits with maturities of more than one year. These deposits are presented at cost and earn interest at market rates. Accumulated interest to be received over the next year is recorded as a current asset. The deposits and accumulated interest approximate fair value. M. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, net of accumulated depreciation and investment grants. For equipment produced for the Company’s own use, cost includes materials, labor and overhead (including interest costs, when applicable) but not in excess of the fair value of the equipment. Depreciation is calculated by the straight-line method over the estimated useful life of the assets at the following annual rates: % Buildings and leasehold improvements (*) 2%-19% Instruments, machinery and equipment 7%-32% Office furniture and other 7%-13% Motor vehicles and airplanes 13%-18% (Mainly 15%) (*) Leasehold improvements are amortized generally over the term of the lease or the useful life of the assets, whichever is shorter. The Company capitalizes direct costs (internal and external) of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of 3 to 12 years and are reported as a component of property and equipment. The Company is advancing in the process of developing and implementing a new Enterprise Resource Planning (“ERP”) system. Certain costs incurred during the application development stage have been capitalized in accordance with authoritative accounting guidance related to accounting for the cost of computer software developed or obtained for internal use. The capitalized costs for this ERP system were approximately $15,273 and $29,524, for the years ended December 31, 2023 and 2022, respectively. These costs are amortized over the system's estimated useful life, over a period not to exceed 12 years in the aggregate, as the ERP system is placed in service. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) N. OTHER INTANGIBLE ASSETS Other identifiable intangible assets mainly consist of purchased technology, customer relations and trademarks. These intangible assets are stated at cost, net of accumulated amortization and impairments, and are amortized over their useful life using the straight-line method or the accelerated method, whichever better reflects the applicable expected utilization pattern. O. IMPAIRMENT OF LONG-LIVED ASSETS The Company’s long-lived assets and finite-lived intangible assets are reviewed for impairment in accordance with ASC 360 “Property, Plant and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets (or assets group) to be held and used is determined by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If the carrying amount is higher, an asset is deemed to be impaired and the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. For the years ended December 31, 2023, 2022 and 2021, no impairment was recognized. P. GOODWILL IMPAIRMENT Goodwill is subject to an impairment test at the reporting unit level on an annual basis during the fourth quarter of the year (or more frequently if impairment indicators arise). The Company identified several reporting units based on the guidance of ASC 350, “Intangibles – Goodwill and Other”. The impairment test compares carrying values of the reporting units to its estimated fair values. If the carrying value exceeds the fair value, then the Company recognizes an impairment of goodwill for the amount of this excess. For each of the three years in the period ended December 31, 2023, no impairment was identified. As required by ASC 820, “Fair Value Measurement”, the Company applies assumptions that market place participants would consider in determining the fair value of each reporting unit. Q. SEVERANCE PAY Elbit Systems’ and its Israeli subsidiaries’ obligations for severance pay are calculated pursuant to Israel’s Severance Pay Law, based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date and are presented on an undiscounted basis (the “Shut Down Method”). Subject to certain conditions, employees are entitled to one month’s salary for each year of employment or a portion thereof. The obligation is funded by monthly deposits through insurance policies and by an accrual. The value of these policies is recorded as an asset on the Company’s balance sheet. The deposited funds may be withdrawn only upon the fulfillment of the obligation, pursuant to the Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrender value of these policies and includes profits (or losses) accumulated to the balance sheet date. Elbit Systems and its Israeli subsidiaries have entered into an agreement with some of its employees implementing Section 14 of the Severance Pay Law and the General Approval of the Labor Minister dated June 30, 1998, issued in accordance with such Section 14. The agreement mandates that upon termination of such employees’ employment, all the amounts accrued in their insurance policies will be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet, as the severance pay risks have been irrevocably transferred to the severance funds. Severance pay expenses for the years ended December 31, 2023, 2022 and 2021, amounted to approximately $78,659, $71,627 and $72,309, respectively. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) R. PENSION AND OTHER POSTRETIREMENT BENEFITS The Company accounts for its obligations for pension and other post-retirement benefits in accordance with ASC 715, “Compensation – Retirement Benefits”. The Company reports the service cost component of net retirement benefit cost separately from the other components of net retirement benefit cost in the Consolidated Statement of Income (see Note 17). S. REVENUE RECOGNITION The Company generates revenues primarily from fixed-price long-term contracts involving the design, development, manufacture and integration of defense systems and products. To a lesser extent, the Company generates revenues from short-term contracts or support and services which could be either fixed-price or cost-reimbursement contracts. Revenues from our contracts are recognized using the five-step model in ASC 606, “Revenue from Contracts with Customers”. At first, the Company determines if an agreement with a customer is considered a contract to the extent it has a commercial substance, it is approved in writing by both parties, all rights and obligations including payment terms are identifiable, the agreement between the parties creates enforceable rights and obligations, and collectability in exchange for goods and services that will be transferred to the customer is considered probable. The Company then assesses the transaction price for a contract in order to determine the consideration the Company expects to receive for satisfying the performance obligations called for in the contract. At contract inception, the Company also assesses the timing of transfer of goods and services to the customer as compared to the timing of payments, to determine whether a significant financing component exists. In certain limited instances, we may provide our customers with long-term financing arrangements which are assessed if they meet the criteria to become a significant financing component. To the extent such long-term financing creates a significant financing component, it is reflected as a reduction to the transaction price with a corresponding interest income pro-rata over the credit period. A payment received from customers in advance of the satisfaction of the corresponding performance obligation for a period extending 12 months or more that is deemed significant may also be considered to be a significant financing component. To the extent such an advance payment create a significant financing component, it is reflected as an addition to the transaction price, with a corresponding interest expense over the period the performance obligation is satisfied. As a practical expedient, the Company does not assess the existence of a significant financing component when the difference between payment and transfer of control is less than one year. To the extent the transaction price includes variable consideration (e.g., contract penalties, economic price adjustments, unpriced change orders or like measures), the Company usually estimates the most likely amount that should be included in the transaction price subject to constraints based on the specific facts and circumstances. At the inception of a contract, the Company also evaluates the products and services promised by it in order to determine if the contract should be separated into more than one performance obligation. The products and services in the Company's contracts are often not distinct from one another due to a customer defined interrelated operational performance requirement, a highly complex interrelated and integrated system or solutions design and significant contract management requirements. To a lesser extent, such performance obligations could be for performance of services, or other distinct performance obligations such as indirect buy-back transactions (see Note 21B), which may be distinct and separated into a performance obligation. Following the determination of the performance obligations in the contract, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Standalone selling price is the price at which the Company would sell a promised good or service separately to a customer. Standalone selling prices for the Company’s products and services are generally not observable, and consequently the Company would use the “Expected Cost plus a Margin” approach to determine a standalone selling price. Expected costs are typically derived from our performance cost forecast information. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) S. REVENUE RECOGNITION (Cont.) The Company recognizes revenues for each of the identified performance obligations when its customer obtains control of the products or services. The assessment of when the customer obtains control involves significant judgments, which consider, among other things, whether there is an alternative use for a product, the contract terms, assessment of the enforceable rights for payments and technical or contractual constraints. As a practical expedient we may occasionally account for a group of performance obligations or contracts collectively, as opposed to individually by using the “portfolio approach”. Under the “portfolio approach” practical expedient, the Company may combine individual performance obligations, if the goods or services of the individual performance obligations have similar characteristics and the Company reasonably expects that the effect on the financial statements of applying this practical expedient would not differ materially from applying the expedient to the individual contracts or performance obligations within that portfolio. For most of the Company's long-term contracts, where the Company's performance does not create an asset with an alternative use, the Company recognizes revenue over time as it performs because of continuous transfer of control to the customer. For Israeli, U.S. and some other government contracts, this continuous transfer of control to the customer is supported by the governing law or clauses in the contract that typically allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit and take control of any work-in-process. Similarly, for other government contracts, the customer typically controls the work-in-process as evidenced either by contractual termination for convenience clauses or by the Company's rights to payment for work performed to date plus a reasonable profit for products or services that do not have an alternative use to the Company. For these performance obligations that are satisfied over time, the Company generally recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. The Company believes that costs incurred as a portion of total estimated costs is an appropriate measure of progress towards satisfaction of the performance obligation since this measure reasonably depicts the progress of the work effort. Revenue for performance obligations that are not recognized over time are recognized at the point in time when control transfers to the customer (which is generally upon delivery and acceptance). For performance obligations that are satisfied at a point in time, the Company evaluates the point in time when the customer can direct the use of, and obtain the benefits from, the products and services. Shipping and handling costs are not considered performance obligations and are included in cost of sales as incurred. Service revenues include contracts primarily for the provision of supplies and services other than those associated with design, development or manufacturing or delivery of products. It may be a standalone service contract or a service performance obligation, which is distinct from a contract or performance obligation for the design, development or delivery of products. Our service contracts include contracts in which the customer simultaneously receives and consumes the benefits provided as the performance obligations are satisfied. Our service contracts primarily include operation-type contracts, outsourcing-type arrangements, maintenance contracts, training and similar activities. Revenues from service contracts or performance obligations were less than 10% of total revenues in each of the years ended December 31, 2023, 2022 and 2021. Accounting for long-term contracts involves the use of various techniques to estimate total contract revenue and performance costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated transaction price and the total expected performance costs of the contract and recognizes revenue and costs over the life of the contract. Changes to performance cost estimates under a contract may occur in a situation where: (a) identified contract risks cannot be resolved within the cost estimates included in a contract's estimated costs at completion (“EAC”); or (b) new or unforeseen risks or changes in the performance cost estimates must be incorporated into the contract's EAC. The nature of the Company's numerous contracts is such that refinements of the estimated performance costs or revenues for a project may occur for various reasons, including: contract change orders, option exercise, changes in labor costs, change in subcontractors and other procurement costs, efficiency variances, customer specifications and testing requirement, economic price adjustments, significant technical and development matters encountered during performance and provision for loss. Changes to performance cost or revenues estimates on contracts are considered in estimating sales and profit margins and are recorded when they are probable and reasonably determinable by management. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) S. REVENUE RECOGNITION (Cont.) Changes in estimated revenues and/or estimated project costs which are related to an existing performance obligation, and that are not distinct from those goods and services already provided, and therefore form part of single performance obligation, are recorded in the period the change is reasonably determinable, with the full amount of the inception-to-date effect of such changes recorded in such period on a “cumulative catch-up” basis. For contracts that are deemed to be loss contracts, the Company establishes forward loss reserves for total estimated costs that are in excess of total estimated consideration under a contract in the period in which they become probable. If any of the above factors were to change, or if different assumptions were used in estimating progress cost and measuring progress towards completion, it is possible that materially different amounts would be reported in the Company’s consolidated financial statements. Management periodically reviews the estimates of progress towards completion and contract costs. These estimates are determined, based on engineering estimates and past experience, by personnel having the appropriate authority and expertise to make reasonable estimates of the related costs. Such engineering estimates are reviewed for each specific contract by professional personnel from various disciplines within the organization. These estimates take into consideration the probability of achievement of certain milestones, as well as other factors that might impact the contract’s completion and projected cost. During the year ended December 31, 2023, the Company has recognized lease revenues of $178,000 from sale-type lease in accordance with ASC 842. As of December 31, 2023 the Company's lease receivables balance were zero as the amount paid in advance. The aggregate cumulative catch-up adjustment in EAC estimates on significant contracts had the following favorable/ (unfavorable) impact on the Company's operating results: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cost of revenues, net $ (51,000) $ (38,000) $ (8,300) Percentage of cost of revenues (*) (1.14) % (0.92) % (0.21) % Net income $ (44,700) $ (32,700) $ (7,200) Diluted earning per share $ (1.00) $ (0.73) $ (0.16) In addition, the net impact of these EAC adjustments on revenue recognized from the Company's performance obligations was approximately $(23,300), $(32,800) and $(19,600) for the years ended December 31, 2023, 2022 and 2021, respectively. Disaggregation of revenue: Revenue by products and services was as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2020 Revenue from sale of products $ 5,412,455 $ 5,105,921 $ 4,845,020 Service revenue 562,289 405,628 433,501 $ 5,974,744 $ 5,511,549 $ 5,278,521 Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) S. REVENUE RECOGNITION (Cont.) Revenue by transfer type was as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2020 Over time $ 3,987,097 $ 3,478,768 $ 3,418,605 Point in time 1,987,647 2,032,781 1,859,916 $ 5,974,744 $ 5,511,549 $ 5,278,521 Revenue by customers was as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Israel Government Authorities (1,2) $ 1,000,541 $ 998,123 US Government (2) 1,018,811 1,041,843 Other Governments 3,457,021 2,933,560 Commercial sales and other 498,371 538,023 $ 5,974,744 $ 5,511,549 (1) Including U.S. Foreign Military Financing sales (2) Including indirect sales See Note 23 for disaggregation of revenues by segments and geographic areas. Remaining performance obligations (“Backlog”): Backlog represents the future revenues expected to be recognized on firm orders received by the Company and is equivalent to the Company’s remaining performance obligations at the end of each period for a remaining period of more than a year. Unexercised contract options and indefinite delivery indefinite quantity (“IDIQ”) contracts are not included in backlog until the time an option or specific task order is authorized, exercised or awarded. The Company's backlog as of December 31, 2023 was $17.8 billion. The Company expects to recognize approximately 60% as revenues in 2024 and 2025, with the remainder to be recognized thereafter. T . WARRANTY The Company estimates the costs that may be incurred under its basic warranty. Such costs are estimated as part of the total contract’s cost and are recorded as a liability at the time revenue is recognized. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company |
Trade And Unbilled Receivables,
Trade And Unbilled Receivables, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Trade And Unbilled Receivables And Contract Assets, Net | TRADE AND UNBILLED RECEIVABLES AND CONTRACT ASSETS, NET The following table presents the components of trade receivables and contract assets, net as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Trade and unbilled receivables (1) $ 767,089 $ 983,291 Contract assets (2) 1,957,697 1,599,055 Less – allowance for credit loss (3) (8,024) (7,741) $ 2,716,762 $ 2,574,605 (1) Trade and unbilled receivables balances represents amounts for which the Company's right for consideration is unconditional. The balance also includes receivables from affiliated companies in the amounts of $92,721 and $82,271, as of December 31, 2023 and 2022, respectively. Trade receivables and contract assets are expected to be billed and collected during 2024. (2) Contract assets (unbilled receivables) include unbilled amounts typically resulting from sales under contracts for which over-time method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. Short and long-term trade receivables and contract assets include amounts related to contracts with the Israeli Ministry of Defense (“IMOD”) in the aggregate amounts of $746,816 and $821,547, as of December 31, 2023 and 2022, respectively. (3) Allowance for credit losses reflects its current estimate of credit losses expected to be incurred over the life of the trade receivables based on historical experience, current conditions and reasonable and supportable forecasts. The changes in the allowance for credit losses were as follows: 2023 2022 Balance as of January 1, $ 9,162 $ 10,307 Current period provision for expected credit loss 674 301 Write-off charges against the allowance for expected credit losses (664) (1,446) Balance as of December 31, $ 9,172 $ 9,162 As for long-term trade and unbilled receivables. (see Note 7). |
Other Receivables And Prepaid E
Other Receivables And Prepaid Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Other Receivables And Prepaid Expenses | OTHER RECEIVABLES AND PREPAID EXPENSES The following table presents the components of other receivables and prepaid expenses as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Cost to obtain $ 20,141 $ 26,742 Prepaid IT support services 2,624 9,554 Prepaid Insurance 5,938 5,589 Other prepaid expenses 96,505 90,240 Government institutions 87,864 87,203 Derivative instruments 36,070 47,187 Right to use land and buildings 2,214 2,328 Other 33,996 29,855 Total $ 285,352 $ 298,698 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES, NET The following table presents the components of inventories, net of customer advances as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Cost incurred on long-term contracts in progress (*) $ 911,055 $ 772,311 Raw materials 1,155,579 939,331 Advances to suppliers and subcontractors 266,205 251,584 2,332,839 1,963,226 Less: Provision for losses on long-term contracts (34,820) (16,900) $ 2,298,019 $ 1,946,326 (*) Costs incurred to fulfill a contract in advance of the contract being awarded are included in inventories as work-in-process if the Company determines that those costs relate directly to a contract or to an anticipated contract that can be specifically identified and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of revenues consistent with the transfer of control of the products and services to the customer. All other pre-contract costs, including start-up costs, are expensed as incurred. As of December 31, 2023 and 2022 pre-contract costs were included in inventory in the amount of , $216,036 and $186,738 , respectively. |
Investments In Affiliated Compa
Investments In Affiliated Companies, Partnerships And Other Companies | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Investments In Affiliated Companies, Partnerships And Other Companies | INVESTMENTS IN AFFILIATED COMPANIES AND OTHER COMPANIES A. INVESTMENTS IN AFFILIATED COMPANIES: December 31, 2023 December 31, 2022 Companies accounted for under the equity method (1) $ 90,252 $ 105,135 Companies accounted for under the fair value method and other investments (2) 55,098 54,469 $ 145,350 $ 159,604 (1) See Note 6B. (2) See Note 6C. B. INVESTMENTS IN COMPANIES ACCOUNTED FOR UNDER THE EQUITY METHOD: December 31, 2023 December 31, 2022 Company A (1) $ 79,285 $ 77,632 Company B (2) 3,496 18,140 Company C (3) — 1,546 Company D (4) — 558 Other 7,471 7,259 $ 90,252 $ 105,135 (1) Company A is an Israeli company, held 50% by the Company and 50% by Rafael Advanced Defense Systems Ltd. (“Rafael”). Company A is engaged in the development and production of various thermal detectors and laser diodes. Company A is jointly controlled and therefore is not consolidated in the Company’s financial statements. During 2023 and 2022, the Company received dividends in the amount of approximately $8,900 and $6,100, respectively, from Company A. (2) Company B is a U.K. joint venture held 50% by a wholly-owned U.K. subsidiary of the Company and 50% by Kellogg Brown & Root Limited. During 2023 and 2022, the Company received dividends in the amount of approximately $13,100 and $4,100, respectively, from Company B. (3) Company C is an Israeli company held 25% by the Company. During 2023, the Company sold its holdings in Company C for the amount of approximate $1,000. as a result the Company recognized a loss of approximately $500 (4) Company D is a European company held 33% by the Company. Company D is engaged in the area of composite aerostructure parts manufacturing for commercial aircraft. Note 6 - INVESTMENTS IN AFFILIATED COMPANIES AND OTHER COMPANIES (Cont.) B. INVESTMENTS IN COMPANIES ACCOUNTED FOR UNDER THE EQUITY METHOD (Cont.): Equity in net earnings of affiliated companies and partnerships is as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Company A $ 10,526 $ 9,622 $ 10,933 Company B 1,822 2,230 3,063 Company C 9 3 (256) Company D (558) (2,087) (1,546) Other 476 (2,726) 10,405 $ 12,275 $ 7,042 $ 22,599 The summarized aggregate financial information of companies accounted for under the equity method is as follows: Balance Sheet Information: December 31, 2023 December 31, 2022 Current assets $ 465,442 $ 422,370 Non-current assets 136,783 135,218 Total assets $ 602,225 $ 557,588 Current liabilities $ 166,359 $ 138,113 Non-current liabilities 237,399 346,777 Shareholders' equity 198,467 72,698 Total liabilities and equity $ 602,225 $ 557,588 Income Statement Information: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Revenues $ 328,138 $ 294,120 $ 317,763 Gross profit $ 111,698 $ 111,023 $ 129,374 Net income $ 10,391 $ 24,416 $ 15,715 Note 6 - INVESTMENTS IN AFFILIATED COMPANIES AND OTHER COMPANIES (Cont.) C. INVESTMENTS ACCOUNTED FOR UNDER THE FAIR VALUE METHOD AND OTHER INVESTMENTS: Investments accounted for under the fair value method are evaluated by applying relevant methods as the market approach with the use of an option pricing method or the earning approach using discounted future cash flows, as follows: December 31, 2023 December 31, 2022 Company F (1) $ 17,155 $ 17,155 Company G (2) 19,410 17,165 Company H (3) 972 2,472 Company I (4) 13,561 13,677 Company J (5) 4,000 4,000 $ 55,098 $ 54,469 (1) Company F engages in the field of commercial cybersecurity. During 2021, the Company re-evaluated its holdings in Company F and increased its value in the amount of approximately $11,100. During 2022 the Company re-evaluated its investment in Company F and decreased its value in the amount of approximately $6,900 (see Note 26). (2) Company G engages in developing surgeon-centered visualization technologies. During 2021, following a third party investments, the Company re-evaluated the fair value of its holdings in Company G and recognized in other income a gain of approximately $4,800. During 2022, the Company invested in Company G $1,400 and following third parties investments, the Company re-evaluated the fair value of its holdings in Company G and recognized in other income a gain of approximately $3,200. During 2023, the Company invested in Company G $3,600 and following third parties investments, the Company re-evaluated the fair value of its holdings in Company G and recognized in other income a loss of approximately $1,300 (See Note 26). (3) Company H is an Israeli company held 35% by the Company. During 2021, the Company estimated the fair value of its holdings in Company H and recorded a gain of approximately $400 in its fair value. During 2022 the Company re-evaluated its investment in Company H and decreased its value in the amount of approximately $2,500. During 2023 the Company re-evaluated its investment in Company H and recognized in other income a loss of approximately $1,500(see Note 26). (4) Company I is an Israeli Company held 7% by the Company. During 2020, the Company invested approximately $5,000 in Company I. As a result, the Company re-evaluated its investment in Company I and increased its value in the amount of approximately $4,100. During 2021, due to shareholders investment, the Company estimated the fair value of its holdings in Company I and recorded a gain of approximately $1,000 in its fair value. During 2023, due to shareholders investment, the Company estimated the fair value of its holdings in Company I and recorded a loss of approximately $118 in its fair value (see Note 26). (5) Company J is an Israeli company of which the Company owns 25% of the outstanding share capital, which is engaged in the field of tactical ground robotic systems. During 2021, the Company invested in Company J $1,000. During the first quarter of 2022 the Company invested $2,000 in Company J. During the last quarter of 2022 the Company re-evaluated its investment in Company J and decreased its value in the amount of approximately $4,000. |
Long-Term Trade And Unbilled Re
Long-Term Trade And Unbilled Receivables And Contract Assets | 12 Months Ended |
Dec. 31, 2023 | |
Billed and Unbilled Contract Claims Subject to Uncertainty [Abstract] | |
Long-Term Trade And Unbilled Receivables And Contract Assets | LONG-TERM TRADE AND UNBILLED RECEIVABLES AND CONTRACT ASSETS The following table presents the components of long-term trade and unbilled receivables and contract assets as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Trade and unbilled receivables $ 71,763 $ 130,901 Contract assets 294,104 244,574 Less - allowance for credit loss (1,148) (1,421) Total $ 364,719 $ 374,054 The majority of the long-term contract assets are expected to be billed and collected during the years 2025-2031. L ong-term trade receivables and contract assets are mainly related to contracts with the IMOD. |
Long-Term Bank Deposits And Oth
Long-Term Bank Deposits And Other Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments and Receivables, Net [Abstract] | |
Long-Term Bank Deposits And Other Receivables | LONG-TERM BANK DEPOSITS AND OTHER RECEIVABLES The following table presents the components of long-term bank deposits and other receivables as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Premises evacuation building input index receivable (1) $ 55,747 $ 57,447 Derivative financial instruments (2) 14,279 36,572 Prepaid expenses for land rights — 2,328 Long term balances of Non-qualified deferred compensation plan (3) 10,492 9,183 Deposits with banks and other long-term receivables 7,130 6,995 $ 87,648 $ 112,525 (1) During 2019, the Company sold the premises evacuation receivable to an Israeli bank and is still entitled to receive building inputs index adjustments on the base premises evacuation receivable, which is recorded as a financial asset measured at fair value (see Note 1D(4)). (2) Derivative financial instruments related to long term projects. (3) Includes long-term balances of a non-qualified deferred compensation plan structured under Section 409A of the U.S. Internal Revenue Code in the amount of $10,492 and $9,183 as of December 31, 2023 and 2022, respectively (see Note 17). |
Property, Plant And Equipment,
Property, Plant And Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant And Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET The following table presents the components of property, plant and equipment, net as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Cost (1) : Land, buildings and leasehold improvements (2) $ 940,704 $ 841,988 Instruments, machinery and equipment (3) 1,480,007 1,352,749 Office furniture and other 85,988 84,361 Motor vehicles and airplanes 50,131 51,287 Total cost 2,556,830 2,330,385 Accumulated depreciation (1,468,880) (1,381,178) Depreciated cost $ 1,087,950 $ 949,207 Depreciation expenses for the years ended December 31, 2023, 2022 and 2021 amounted to $120,895, $112,063 and $106,068, respectively. (1) Net of investment grants received (mainly for instruments, machinery and equipment) in the amounts of $39,250 and $39,121 as of December 31, 2023 and 2022, respectively. (2) Set forth below is additional information regarding the real estate owned or leased by the Company (square feet): Israel (A) U.S. (B) Other Countries (C) Owned 2,066,738 894,735 1,039,287 Leased 7,035,265 861,043 635,479 a. Includes offices, development and engineering facilities, manufacturing facilities, maintenance facilities, hangar facilities and landing strips in various locations in Israel. b. Includes mainly offices, development and engineering facilities, manufacturing facilities and maintenance facilities of Elbit Systems of America, primarily in Texas, New Hampshire, South Carolina Florida, Alabama and Virginia. The facilities in New Hampshire, Florida and Alabama are located on owned land totaling approximately 109 acres. Universal Avionics Systems Corporation's facilities are located in Arizona, Washington and Georgia, of which 166,000 square feet are owned and 83,000 square feet are leased. c. Includes offices, design and engineering facilities and manufacturing facilities in Europe, Latin America, Canada and Asia-Pacific. (3) Includes equipment produced by the Company for its own use in the aggregate amount of $127,301 and $119,892 as of December 31, 2023 and 2022, respectively, and capitalized costs related to the new ERP system (see Note 2M). As for liens on assets – see Notes 21G. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease Commitments | LEASES The Company's leases mainly include buildings for its facilities worldwide and vehicles leases, which are all classified as operating leases. Certain lease agreements include rental payments that are adjusted periodically for the consumer price index ( “ CPI ” ). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted unless the liability is reassessed. Certain leases include renewal options that are exercisable in the Company's sole discretion. The renewal options were included in the ROU and include renewal options that are under the Company's sole discretion. A. Supplemental Consolidated Statement of Financial Position information related to leases was as follows: December 31, 2023 December 31, 2022 Operating lease right of use assets $ 425,884 $ 405,446 Current portion of operating lease liabilities 67,390 69,322 Non-current portion of operating lease liabilities 363,100 344,585 Total operating lease liabilities $ 430,490 $ 413,907 Weighted average remaining lease term (years) 4.58 4.70 Weighted average discount rate 4.02% 3.71% B. For the years ended December 31, 2023, 2022 and 2021, cash payments against operating lease liabilities totaled approximately $89,251, $90,848 and $87,604, respectively, and non-cash transactions to recognize operating assets and liabilities for new leases totaled approximately $101,971, $79,357 and $58,103, respectively. Maturities of o perating lease liabilities for the next five years are as follows: December 31, 2023 2024 $ 82,085 2025 69,950 2026 55,942 2027 42,081 2028 36,220 2029 and thereafter $ 251,493 Total lease payments $ 537,771 Less imputed interest 107,281 Total $ 430,490 C. Lease expenses for the years ended December 31, 2023, 2022 and 2021 amounted to $94,296, $90,134 and $84,216, respectively. D. During 2022, the Company recognized a gain of approximately $18,950 related to sale and lease back of buildings by the Company's subsidiaries in Israel. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET A. COMPOSITION OF IDENTIFIABLE INTANGIBLE ASSETS: December 31, 2023 December 31, 2022 Original cost: Technology $ 406,391 $ 402,592 Customer relations 390,511 392,584 Trademarks and other 207,375 224,110 1,004,277 1,019,286 Accumulated amortization: Technology 259,956 246,126 Customer relations 162,728 147,104 Trademarks and other 191,073 193,323 613,757 586,553 Amortized cost $ 390,520 $ 432,733 B. EXPENSES Amortization expenses amounted to $43,903, $49,227 and $47,023 for the years ended December 31, 2023, 2022 and 2021, respectively. C. AMORTIZATION EXPENSES FOR FIVE SUCCEEDING YEARS The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: 2024 $ 35,847 2025 34,111 2026 34,413 2027 31,854 2028 and thereafter 254,295 $ 390,520 D. CHANGES IN GOODWILL Changes in goodwill during 2023 were as follows: Aerospace C4I and Cyber ISTAR and EW Land ESA 2023 Balance, at January 1 $ 61,933 $ 316,655 $ 130,379 $ 592,871 $ 400,656 $ 1,502,494 PPA and PPA adjustment (1) — — — — 13,472 13,472 Net translation differences (2) 1,255 — 2,849 (21,005) — (16,901) Balance, at December 31 $ 63,188 $ 316,655 $ 133,228 $ 571,866 $ 414,128 $ 1,499,065 (1) PPA adjustment related to preliminary PPA of a subsidiary acquired in 2022, and PPA related to acquisition during 2023. See Note 1D(1). (2) Foreign currency translation differences resulting from goodwill allocated to reporting units, whose functional currency has been determined to be other than the U.S. dollar. |
Short-Term Bank Credit And Loan
Short-Term Bank Credit And Loans | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Debt [Abstract] | |
Short-term Bank Credit and Loans | SHORT-TERM CREDIT AND LOANS Interest % December 31, 2023 December 31, 2022 Loans SOFR + 1.2% - 1.5% $ 162,034 $ 21,772 Commercial securities (1) SOFR + 1.0% 313,620 — Bank credit SOFR + 1.2% - 1.5% 100,940 93,304 $ 576,594 $ 115,076 As of December 31, 2023 the SOFR rate of short-term loans was 5.38% . |
Other Payables And Accrued Expe
Other Payables And Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities [Abstract] | |
Other Payables and Accrued Expenses | OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2023 December 31, 2022 Payroll and related expenses $ 329,249 $ 336,830 Provision for vacation pay (1) 83,393 80,529 Provision for income tax, net of advances 28,387 30,210 Other income tax liabilities 40,006 32,048 Value added tax (“VAT”) payable 29,599 19,212 Provision for royalties 66,540 62,152 Provision for warranty and cost 92,138 95,708 Derivative instruments 69,036 107,581 Contingent purchase obligations 3,033 3,126 Provision for losses on long-term contracts 60,630 64,062 Provision for vendors on accrued expenses 133,376 95,058 Other (2) 258,960 244,841 $ 1,194,347 $ 1,171,357 (1) Long-term provision for vacation pay - see Note 20. (2) Includes provisions for estimated future costs in respect of (1) unbilled services of certain third parties, (2) probable loss from claims (legal or asserted) in the ordinary course of business and (3) damages caused by the items sold and claims as to the specific products ordered. The following table presents the components of other long-term liabilities as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Provision for vacation pay $ 42,073 $ 42,188 Contingent purchase obligation 37,421 49,282 Accrued expenses on evacuation 11,028 20,482 Provision for losses on long-term contracts — 3,090 Derivative financial instruments 47,376 54,480 Accounts payables 123,787 41,272 Compensated absences 11,341 13,056 Other 25,270 24,046 $ 298,296 $ 247,896 |
Contract Liabilities (Customer
Contract Liabilities (Customer Advances) | 12 Months Ended |
Dec. 31, 2023 | |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | |
Contract Liabilities (Customer Advances) | CONTRACT LIABILITIES (CUSTOMER ADVANCES) December 31, 2023 December 31, 2022 Contract liabilities $ 2,010,422 $ 1,994,236 Less: Contract liabilities presented under long-term liabilities 354,319 217,075 $ 1,656,103 $ 1,777,161 During the year ended December 31, 2023, the Company recognized approximately $858,965 of its contract liabilities. As for guarantees and liens, see Notes 21D, 21G. |
Series B,C And D Notes, Net Of
Series B,C And D Notes, Net Of Current Maturities | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Series B,C And D Notes, Net Of Current Maturities | SERIES B, C AND D NOTES, NET OF CURRENT MATURITIES December 31, 2023 December 31, 2022 Series B, C and D Notes $ 408,199 $ 483,185 Less – Current maturities (63,676) (65,393) Premium (discount) on Series B, C and D Notes, net (1,676) (2,255) $ 342,847 $ 415,537 In July 2021, the Company issued Series B, C and D Notes in the aggregate principal amount of NIS 1.9 billion (approximately $579,000) as follow: Series B Notes in the amount of NIS 1.5 billion (approximately $457,000) that are paid in eight equal annual installments on June 30 of each of the years 2022 through 2029 (inclusive). The Series B Not es bear a fixed interest rate of 1.08% per annum and will not be adjusted to any currency or index changes. Series C Notes in the amount of NIS 200 million (approximately $61,000) that are paid in eight equal annual installments on June 30 of each of the years 2022 through 2029 (inclusive). The Series C Notes bear a fixed U. S. dollar interest rate of 2.12% per annum and will be adjusted to the changes of the NIS versus U.S. dollar currency exchange rate. Series D Notes in the amount of NIS 200 million (approximately $61,000) that are paid in fourteen annual installments as follows: thirteen equal annual installments in an amount equal to 7.14% of the nominal value of the principal on June 30 of each of the years 2022 through 2034 (inclusive) and the final annual installment in an amount equal to 7.18% of the nominal value of the principal on June 30, 2035. They bear a fixed interest rate of 2.67% per annum and will be adjusted to changes in the NIS versus U.S. dollar currency exchange rate. During the year ended December 31, 2023, the Company record ed $9,537, as interest expense s and $579 as amortization of debt issuance costs a nd premium, net, on the Series B, C and D Notes. The Company also entered into eight cross-currency interest swap transactions of 8 years to effectively hedge the effect of interest and exchange rate differences resulting from Series B Notes. Under the cross-currency interest rate swaps, the Company receives a fixed NIS rate of 1.08% on the NIS of 1.5 billion and pays an average fixed U.S dollar interest rate of 1.92% on $463,000. Both the debt and the swap instruments pay semi-annual interest - on June 30 and December 31. During 2023 , the Company paid the second installment of Notes B, C and D in the amount of approximately $62,434. Future principle payments for Series B, C and D Notes, including the effect of cross-currency interest rate swap transactions, are as follows: Future principal payments for Series B, C and D Notes: 2024 Current maturities $ 69,917 2025 69,917 2026 69,917 2027 69,917 2028 and thereafter 165,974 $ 445,642 |
Benefit Plans And Obligations F
Benefit Plans And Obligations For Termination Indemnity | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans And Obligations For Termination Indemnity | BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY The Company’s subsidiaries ESA, IMI and its subsidiaries in Israel, a German subsidiary (the “German Subsidiary”) and a Belgian subsidiary (the “Belgian Subsidiary”) sponsor benefit plans for their employees in the U.S., Israel, Germany and Belgium, respectively, as follows: 1. Defined Benefit Retirement Plan based on Employer’s Contributions a) ESA has five defined benefit pension plans (the “Plans”) which cover the employees of ESA’s three largest subsidiaries. In April 2021, following the acquisition of Sparton, ESA accepted the transfer of sponsorship of the Pension Plan for Employees in Sparton Bargaining Unit which covers represented employees of Sparton. Monthly benefits are based on years of service and annual compensation. Annual contributions to the Plans are determined using the unit credit actuarial cost method and are equal to or exceed the minimum required by law. Pension fund assets of the Plans are invested primarily in stocks, bonds and cash by a financial institution, as the investment manager of the Plans’ assets. The service cost component of net periodic pension and other post-retirement benefit plan expense is recorded in operating profit and is allocated between the cost of sales and general and administrative expenses, depending on the responsibilities of the employees. The non-service cost components of net periodic pension and other post-retirement benefit plan expense (i.e., interest cost, expected return on plan assets and net actuarial gains or losses) are included in the line item Other (income) expense, net in the income statement. The measurement date for ESA subsidiaries' benefit obligation is December 31. Participation in ESA’s qualified defined benefit plans was frozen as of December 31, 2020, for all employees. b) IMI and its subsidiaries have several post-employment benefit arrangements, which are based on collective agreements concluded with certain groups of employees before the privatization of IMI. According to these agreements, some groups of employees possess special retirement conditions and preferable rights for post-employment benefits that apply to employees who will terminate their employment in the event of relocation of plants as part of the post privatization restructuring of IMI and subsidiaries. The arrangements are determined according to the various existing formats of employment, seniority and other factors. The liabilities recognized in respect of these arrangements are calculated on an actuarial basis. c) The German Subsidiary, which is wholly-owned by the Company, has mainly one defined benefit pension plan (the “P3-plan”) which covers all employees. The P3-plan provides for yearly cash balance credits equal to a percentage of a participant’s compensation, which accumulates together with the respective interest credits on the employee’s cash balance accounts. In case of an insured event (retirement, death or disability) the benefits can be paid as a lump sum, in installments or as a life-long annuity. The P3-plan is an unfunded plan. d) The Belgian Subsidiary, which is wholly-owned by the Company, has a defined benefit pension plan, which is divided into two categories: 1) Normal retirement benefit plan, with eligibility at age 65. The lump sum is based on employee contributions of 2% of the final pensionable salary up to a certain breakpoint, plus 6% exceeding the breakpoint at a maximum of 5% of pensionable salary, and the employer contributions, with a maximum of 40 years. The vested benefit is equal to the retirement benefit calculated with the pensionable salary and pensionable service observed at the date of leaving service. 2) Pre-retirement death benefit to employees. The plan is funded and includes profit sharing. Note 17 - BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY (Cont.) The following table sets forth the Plans’ funded status and amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Changes in benefit obligation: Benefit obligation at beginning of year $ 646,023 $ 918,209 Benefit obligation related to acquired companies — (23,851) Service cost 5,578 7,598 Interest cost 29,429 16,800 Exchange rate differences (8,516) (47,181) Actuarial gain (62,183) (191,292) Benefits paid (35,705) (34,260) Effect of settlement commitment $ (7,840) $ — Benefit obligation at end of year $ 566,786 $ 646,023 Changes in the Plans’ assets: Fair value of Plans’ assets at beginning of year $ 280,225 $ 348,804 Actual return on Plans’ assets (net of expenses) 38,316 (55,441) Employer contribution 947 1,057 Benefits paid (21,654) (14,195) Effect of settlement commitment (7,826) — Fair value of Plans’ assets at end of year $ 290,008 $ 280,225 Accrued benefit cost, end of year: Funded (unfunded) status $ (276,738) $ (365,798) Unrecognized net actuarial loss (84,210) (20,910) $ (360,948) $ (386,708) Amount recognized in the statement of financial position: Accrued benefit liability, current $ (28,279) $ (39,478) Accrued benefit liability, non-current (248,459) (326,320) Accumulated other comprehensive income, pre-tax (84,210) (20,910) $ (360,948) $ (386,708) Note 17 - BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY (Cont.) Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Components of the Plans’ net periodic pension cost: Service cost $ 5,578 $ 7,598 $ 14,926 Interest cost 29,429 16,800 15,741 Expected return on Plans’ assets (17,825) (22,678) (20,892) Amortization of prior service cost (1,246) — (3) Amortization of net actuarial loss — 18,596 16,158 Recognition of net actuarial gain $ (5,098) $ — $ — Total net periodic benefit cost $ 10,838 $ 20,316 $ 25,930 Additional information Accumulated benefit obligation $ 561,350 $ 643,617 $ 912,944 December 31, 2023 December 31, 2022 Weighted average assumptions: Discount rate as of December 31 4.9 % 5.2 % Expected long-term rate of return on Plans’ assets 7.0 % 6.8 % Rate of compensation increase 1.5 % 1.8 % Asset allocation by category as of December 31: 2023 2022 Asset Category: Equity Securities 53.1 % 65.4 % Debt Securities 44.0 % 32.7 % Other 2.9 % 1.9 % Total 100.0 % 100.0 % The investment policy of ESA is directed toward a broad range of securities. The diversified portfolio seeks to maximize investment return while minimizing the risk levels associated with investing. The investment policy is structured to consider the Plans' obligations and the expected timing of benefit payments. The target asset allocation for the Plans' years presented is as follows: 2023 2022 Asset Category: Equity Securities 53.0 % 67.0 % Debt Securities 47.0 % 33.0 % Total 100.0 % 100.0 % Note 17 - BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY (Cont.) The fair value of the asset values by category at December 31, 2023, was as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset Category Cash $ 4,262 $ 4,262 — — Cash Equivalents: Money Market Funds (a) 4,193 4,193 — — Fixed Income Securities: Mutual Funds (b) 60,309 60,309 — — U.S treasuries 19,856 14,138 5,718 — corporate bonds 47,259 — 47,259 — Equity Securities: International Companies (c) 8,274 8,274 — — Mutual Funds (d) 145,855 145,855 — — Total $ 290,008 $ 237,031 $ 52,977 $ — (a) This category includes highly liquid daily traded cash-like vehicles. (b) This category invests in highly liquid mutual funds representing a diverse offering of debt issuance. (c) This category represents common stocks of companies domiciled outside of the U.S.; they can be represented by ordinary shares or ADRs. (d) This category represents highly liquid diverse equity mutual funds of varying asset classes and styles. In developing the overall expected long-term rate of return on assets assumption, ESA used a building block approach in which rates of return in excess of inflation were considered separately for equity securities, debt securities, real estate and all other assets. The excess returns were weighted by the representative target allocation and added along with an approximate rate of inflation to develop the overall expected long-term rate of return. It is the policy of ESA to meet the ERISA minimum contribution requirements for a Plan year. The minimum contribution requirements for the 2023 Plan year have been satisfied as of December 31, 2023. Benefit payments over the next five years are expected to be $16,749 in 2024, $17,434 in 2025, $18,218 in 2026, $18,806 in 2027 and $19,258 in 2028. Note 17 - BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY (Cont.) 2. Retiree Medical Plan ESA offers retiree medical benefits to a limited number of retirees. The measurement date for ESA's benefit obligation is December 31. The following table sets forth the retiree medical plans’ funded status and amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Change in Benefit Obligation: Benefit obligation at beginning of period $ 867 $ 1,597 Service cost 86 149 Interest cost 43 38 Actuarial (gain) loss 271 (880) Employee contribution 9 11 Benefits paid (45) (48) Benefit obligation at end of period $ 1,231 $ 867 Change in Plan Assets: Employer contribution $ 36 $ 37 Employee contribution 9 11 Benefits paid (45) (48) Fair value of Plan assets at end of period $ — $ — Year Ended December 31, 2023 Year Ended December 31, 2022 Accrued benefit cost, end of period: Funded (unfunded) status $ (1,231) $ (867) Unrecognized net actuarial gain (1,616) (2,073) Accrued benefit cost, end of period $ (2,847) $ (2,940) Amounts recognized in the statement of financial position: Accrued benefit liability, current $ (71) $ (137) Accrued benefit liability, non-current (1,159) (730) Accumulated other comprehensive gain, pretax (1,617) (2,073) Net amount recognized $ (2,847) $ (2,940) Components of net periodic pension cost (for period): Year Ended December 31, 2023 Year Ended December 31, 2022 Service cost $ 86 $ 149 Interest cost 43 38 Amortization of net actuarial gain (186) (111) Total net periodic benefit cost $ (57) $ 76 Note 17 - BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY (Cont.) 2. Retiree Medical Plan (Cont.) Assumptions as of end of period: Year Ended December 31, 2023 Year Ended December 31, 2022 Discount rate 4.90 % 5.10 % Health care cost trend rate assumed for next year 6.00 % 6.50 % Ultimate health care cost trend rate 4.00 % 4.10 % The effect of a 1% change in the health care cost trend rate at December 31, 2023 was as follows: 1% increase 1% decrease Net periodic benefit cost $ 14 $ (13) Benefit obligation $ 98 $ (88) 3. Defined Contribution Plan The 401(k) savings plan (“401(k) plan”) is a defined contribution retirement plan that covers all eligible ESA employees, as defined in section 401(k) of the U.S. Internal Revenue Code. Employees may elect to contribute a percentage of their annual gross compensation to the 401(k) plan. ESA may make discretionary matching contributions as determined by ESA. Total expense under the 401(k) plan amounted to $16,961, $16,329 and $15,951 for the years ended December 31, 2023, 2022 and 2021, respectively. Expense for the deferred 401(k) plan is allocated between cost of sales and general and administrative expenses depending on the responsibilities of the related employees. 4. Non-Qualified Defined Contribution Plan ESA has two benefit plans for the executives of the organization. The non-qualified, defined contribution plan is structured under Section 409(A). The plan provides the employees at vice president level and above the opportunity to defer up to 100% of their salary to the 409(A) plan. ESA provides a match of 0.5 cents on the dollar up to 10% of the employees’ total salary and incentive-based compensation. The contribution can be made into the 401(k) plan, the 409(A) plan or both plans. The purpose is to provide comparable defined contribution plan benefits for the senior management across ESA locations. The 409(A) plan funds are contributed to several life insurance policies. Participant contributions to the plan were $2,418, $3,067 and $2,762 for the years ended December 31, 2023, 2022 and 2021, respectively, and the total ESA contribution to the plan was $411 for 2023. The cash surrender value of these life insurance policies at December 31, 2023 was $6,556. The total liability related to the 409(A) plan was $22,988 at December 31, 2023. The second plan implemented is a non-qualified, defined benefit plan for certain executives of ESA. The plan provides the executives with a calculated, guaranteed payment in addition to their regular pension through the company upon retirement. The plan is funded with several life insurance policies. The policies are not segregated into a trust or otherwise effectively restricted. These policies are corporate owned assets that are subject to the claims of general creditors and cannot be considered as formal plan assets. The defined benefit plan put in place meets the ERISA definition of an unfunded deferred compensation plan maintained for the benefit of a select group of management or highly compensated employees. The plan assets of life insurance policies had a cash surrender of $3,936 at December 31, 2023. Related liability for the pension payments was $12,363 at December 31, 2023. As of December 31, 2023, all executives had partially vested balances in the plan. |
Taxes On Income
Taxes On Income | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Taxes On Income | TAXES ON INCOME A. APPLICABLE TAX LAWS (1) Israeli Corporate Income Tax Rates Generally, regular corporate tax rates and real capital gain tax rates in Israel effective as of January 1, 2018 and onwards is 23%. The Company is also eligible for tax benefits as further described below. (2) Tax benefits under Israel’s Law for the Encouragement of Industry (Taxes), 1969: Elbit Systems and most of its subsidiaries in Israel currently qualify as “Industrial Companies”, as defined by the Law for the Encouragement of Industry (Taxes), 1969, and as such, are entitled to certain tax benefits, mainly amortization of costs relating to know-how and patents over eight years, accelerated depreciation, the right to deduct public issuance expenses for tax purposes and an election under certain conditions to file a consolidated tax returns with additional related Israeli Industrial Companies. Elbit Systems and several of its Israeli subsidiaries (also industrial companies) submitted an election to the Israel Tax Authority to file a consolidated tax return. (3) Tax benefits under Israel’s Law for the Encouragement of Capital Investments, 1959: The operations of Elbit Systems and certain of its Israeli subsidiaries (“the Companies”) have been granted “Privileged Enterprise” status under Israel’s Law for the Encouragement of Capital Investments, 1959 (the “Law”). Accordingly, certain income of the Companies derived from the Privileged Enterprise programs is tax exempt for two years and subject to reduced tax rates of 25% for five-year to eight-year periods or tax exempt for a ten-year period, commencing in the first year in which the companies had taxable income (limited to twelve years from commencement of production or fourteen years from the date of approval, whichever is earlier). At least 25% of the Privileged Enterprise program’s income must be derived from exports. Tax-exempt income generated by the Company and certain of its Israeli subsidiaries’ Privileged Enterprises will be subject to tax upon dividend distribution or complete liquidation. The entitlement to the above benefits is subject to the Companies’ fulfilling the conditions specified in the Law, and the regulations promulgated thereunder. In the event of failure to comply with these conditions, the benefits may be canceled and the companies may be required to refund the amount of the benefits, in whole or in part, including interest. As of December 31, 2023, the Company’s management believes that the Company and its Israeli subsidiaries met all conditions of the Law and letters of approval. Note 18 - TAXES ON INCOME (Cont.) A. APPLICABLE TAX LAWS (Cont.) (3) Tax benefits under Israel’s Law for the Encouragement of Capital Investments, 1959 (Cont.): On November 15, 2021, the Israeli government approved the Economic Efficiency Bill (Legislative Amendments for Attaining Budgetary Objectives for the 2021 and 2022 Budget Years) - 2021 (the Economic Efficiency Bill) regarding repatriations of retained exempt earnings from Approved Enterprises and Privileged Enterprises (Exempt Earnings). The Economic Efficiency Bill includes a temporary provision, offering relief of 30%-60% on the amount of tax which would otherwise have been required to be paid on attributable earnings, in order to encourage companies to pay the reduced taxes during the next 12 months (the Temporary Provision). The Temporary Provision provides partial relief from Israeli corporate income tax for companies that elect the offered benefit, on a linear basis, which is a greater release of Exempt Earnings, resulting in a higher relief from corporate income tax. According to the new linear statutory formula, the corporate income tax to be paid, on Exempt Earnings accumulated until December 31, 2020 that were not yet distributed as a dividend (Selected Accumulated Income) would vary from 6% to 17.5% effective tax rate (depending on the company’s corporate tax rate in the year in which the income was derived and the amount of Exempt Earnings elected to be relieved), without taking into account the 15% dividend withholding tax (which should be levied only upon actual distribution, if any). The reduced corporate tax is payable within 30 days of making the election. The Temporary Provision does not require the actual distribution of the Selected Accumulated Income, nor does it provide any relief from the 15% dividend withholding tax. The partial corporate income tax relief was available to companies that elected to implement the temporary reduced tax relief by November 15, 2022 in respect of Exempt Earnings accrued up to December 31, 2020, provided that up to 30% (the exact rate is calculated according to a new statutory formula) of the “released” Selected Earnings Income are re-invested in Israel though at least one of the following: industrial activities, research and development activities, assets used by the company or salaries of newly recruited employees. As part of the Temporary Provision, Article 74 of the Investment Law was amended and as a result, starting August 15, 2021, a company with Exempt Earnings that distributes dividends will have to attribute a portion of the distributed sum to Exempt Earnings, and a portion to non-exempt earnings, on a pro-rata basis. The Company elected to implement the Temporary Provision to “release” approximately $784 million of Exempt Earnings, and included in its 2021 results, in taxes on income, a provision for corporate tax in an amount of approximately $80 million. The amount was paid in 2022. As a result of the Company's election, the Company is required to invest approximately $58 million in its industrial enterprise by the end of 2026. As of December 31, 2023, the Company's management believes that Elbit Systems will meet this criteria. Enhancement of Current Tax Incentives Regime: Tax incentives in Israel are also available to certain Israeli industrial companies and to R&D centers (operating on a cost plus basis) under two tracks: (i) a Preferred Enterprise and (ii) a Special Preferred Enterprise, aimed at large enterprises that meet certain investment requirements. Accordingly, a Preferred Enterprise is eligible for a reduced corporate income tax rate of 16%. However, if the company is located in Jerusalem or in certain northern or southern parts of Israel, the tax rate was further reduced to 9%. On December 15, 2016, the Finance Committee approved a further 1.5% reduction in the tax rate for such locations, from 9% to 7.5%. A flat rate tax applies to companies eligible for the Preferred Enterprise status. In order to be eligible for a Preferred Enterprise status, a company must meet minimum requirements to establish that it contributes to the country’s economic growth and is a competitive factor for the Gross Domestic Product (a competitive enterprise). Note 18 - TAXES ON INCOME (Cont.) A. APPLICABLE TAX LAWS (Cont.) (3) Tax benefits under Israel’s Law for the Encouragement of Capital Investments, 1959 (Cont.): Enhancement of Current Tax Incentives Regime (cont.): Israeli companies that currently benefit from Privileged Enterprise status and meet the criteria for qualification as a Preferred Enterprise can elect to apply the Preferred Enterprise benefits by waiving their benefits under the Privileged Enterprise status. The Company and several of its Israeli subsidiaries have elected the Preferred Enterprise status. Benefits granted to a Preferred Enterprise include a reduced tax rate of 9% in the Development Area A regions and 16% in other regions. Preferred Enterprises in peripheral regions are eligible for Investment Center grants, as well as the applicable reduced tax rates. A distribution from a Preferred Enterprise out of “Preferred Income” is subject to 20% withholding tax for Israeli-resident individuals and non-Israeli residents (subject to applicable treaty rates). In December 2016, the Knesset (Israeli Parliament) approved amendments to the Law that introduced an innovation box regime for intellectual property (IP)-based companies, enhanced tax incentives for certain industrial companies and reduced the standard corporate tax rate and certain withholding rates starting in 2017. Note 18 - TAXES ON INCOME (Cont.) A. APPLICABLE TAX LAWS (Cont.) (3) Tax benefits under Israel’s Law for the Encouragement of Capital Investments, 1959 (Cont.): Innovation Box Regime Special Technological Preferred Enterprise The regime was tailored by the Israeli government to a post BEPS world, encouraging multinationals to consolidate IP ownership and profits in Israel along with existing Israeli research and development (“R&D”) functions. Tax benefits created to achieve this goal include a reduced corporate income tax rate of 6% on IP-based income and on capital gains from future sale of IP. The 6% tax rate applies to qualifying Israeli companies that are part of a group with global consolidated revenue of over NIS 10 billion (approximately US $2.8 billion). Other qualifying companies with global consolidated revenue below NIS 10 billion are subject to a 12% tax rate. However, if the Israeli company is located in Jerusalem or in certain northern or southern parts of Israel, the tax rate is further reduced to 7.5%. Additionally, withholding tax on dividends for foreign investors is subject to a reduced rate of 4% for all qualifying companies (unless further reduced by a treaty). Entering into the regime is not conditioned on making additional investments in Israel, and a company could qualify if it invested at least 7% of the last three years’ revenue in R&D (or incurred NIS 75 million in R&D expense per year) and met one of the following three conditions: 1. At least 20% of its employees are R&D employees engaged in R&D (or more than 200 R&D employees); 2. Venture capital investments of NIS 8 million were previously made in the company; or 3. Average annual growth over three years of 25% in sales or employees. A company that does not meet the above conditions may still be considered as a qualified company at the discretion of the Israeli Innovation Authority of the Ministry of Economy and Industry (formerly, the Office of the Chief Scientist). Companies wishing to exit from the regime in the future will not be subject to clawback of tax benefits. The Knesset also approved a stability clause in order to encourage multinationals to invest in Israel. Accordingly, companies will be able to confirm the applicability of tax incentives for a 10-year period under a pre-ruling process. Further, in line with the Organization for Economic Co-operation and Development (“OECD”) Nexus Approach, in 2017 the Israeli Finance Minister promulgated regulations to ensure companies are benefiting from the regime to the extent qualifying R&D expenditures are incurred. As of December 31, 2023, the Company's management believes that Elbit Systems' and certain of its Israeli subsidiaries' meet the conditions and qualify as a “Special Preferred Technological Enterprise” tax regime. Since the Company and its Israeli subsidiaries are operating under more than one program or incentive segment, and since part of their taxable income is not entitled to tax benefits under the Law and is taxed at the regular tax rates, the effective tax rate is the result of a weighted combination of the various applicable rates and tax exemptions, and the computation is made for income derived from each program on the basis of formulas specified in the Law. Note 18 - TAXES ON INCOME (Cont.) B. NON-ISRAELI SUBSIDIARIES Non-Israeli subsidiaries are generally taxed based upon tax laws applicable in their countries of residence. C. INCOME FROM CONTINUING OPERATIONS BEFORE TAXES ON INCOME Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Income before taxes on income: Domestic $ 250,831 $ 268,446 $ 310,134 Foreign (24,337) 24,112 73,317 $ 226,494 $ 292,558 $ 383,451 D. TAXES ON INCOME Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Current taxes: Domestic $ 41,553 $ 40,357 $ 36,888 Foreign 4,045 6,593 9,635 45,598 46,950 46,523 Adjustment for previous years: Domestic (*) (19,404) (10,681) 82,407 Foreign (330) (124) 16 (19,734) (10,805) 82,423 Deferred income taxes: Domestic (5,434) (6,607) 342 Foreign 2,483 (5,407) 2,099 (2,951) (12,014) 2,441 Total taxes on income $ 22,913 $ 24,131 $ 131,387 Total: Domestic $ 16,715 $ 23,069 $ 119,637 Foreign 6,198 1,062 11,750 Total taxes on income $ 22,913 $ 24,131 $ 131,387 -- (*) In 2021, mainly related to the release of the Selected Accumulated Income under the Temporary Provision. (See Note 18A). Note 18 - TAXES ON INCOME (Cont.) E. UNCERTAIN TAX POSITIONS A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 Balance at the beginning of the year $ 86,176 $ 82,380 Additions (reductions) related to interest and currency translation 1,810 (4,758) Additions based on tax positions related to prior period 28 552 Reductions related to tax positions taken during a prior period (11,059) (5,624) Reductions related to settlement of tax matters (11,258) (5,874) Additions based on tax positions taken during the current period 16,511 19,844 Reductions related to a lapse of applicable statute of limitation (1,150) (344) Balance at the end of the year $ 81,058 $ 86,176 On December 31, 2023 a nd 2022, the Company had a provision for unrecognized tax benefits of $81,058 and $86,176 , respectively, including an accru al of $2,303 and $2,394 for the payment of related interest and penalties, respectively. The Company recognized interest and penalties related to unrecognized tax benefits in the provision for income taxes. During 2023 and 2022, the Company and certain of its subsidiaries settled certain income tax matters pertaining to multiple years in Israel and Europe. As a result of the settlement of the tax matters, the Company recorded tax benefits of approximately $11,258 and $5,874 during the years 2023 and 2022, respec tively, in the statements of income in “taxes on income”. Following the examination by the Israeli Tax Authority, the Company applied some of the items for which a settlement was reached for subsequent outstanding years. The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign authorities. Certain Israeli Companies are currently undergoing tax audits by the Israeli Tax Authority. As a result of ongoing examinations, tax proceedings in certain countries and additions to unrecognized tax benefits for positions taken and interest and penalties, if any, arising in 2023 , it is not possible to estimate the potential net increase or decrease to the Company’s unrecognized tax benefits during the next twelve months. Note 18 - TAXES ON INCOME (Cont.) F. DEFERRED INCOME TAXES Significant components of net deferred tax assets and liabilities are based on separate tax jurisdictions as follows: December 31, 2023 December 31, 2022 Deferred tax assets: Reserves and allowances $ 61,945 $ 80,746 Inventory allowances 18,007 19,860 Property, plant and equipment 2,751 4,152 Operating lease right of use assets 19,913 44,341 Other assets 116,524 93,252 Net operating loss carry-forwards 94,776 87,490 313,916 329,841 Valuation allowance (165,199) (164,906) 148,717 164,935 Deferred tax liabilities: Intangible assets (74,892) (77,661) Property, plant and equipment (35,956) (28,767) Operating lease liabilities (19,479) (43,596) Reserves and allowances (9,155) (13,723) (139,482) (163,747) Net deferred tax assets $ 9,235 $ 1,188 Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. G. CARRY-FORWARD TAX LOSSES As of December 3 1, 2023 the Company and its Israeli subsidiaries had estimated total available carry-forward operating tax losses of approximately $441,636, and its non-Israeli subsidiaries had estimated available carry-forward operating tax losses of approximately $53,292. The Company has carry-forward capital losses of approximately $61,092, out of which a valuation allowance was provided on the sum of approximately $56,979. Note 18 - TAXES ON INCOME (Cont.) H. RECONCILIATION Reconciliation of the actual tax expense as reported in the statements of operations to the amount computed by applying the Israeli statutory tax rate is as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Income before taxes as reported in the consolidated statements of income $ 226,494 $ 292,558 $ 383,451 Statutory tax rate 23 % 23 % 23 % Theoretical tax expense $ 52,094 $ 67,288 $ 88,194 Tax benefit arising from reduced rate as "Preferred Enterprise” and other tax benefits (*) (27,741) (26,281) (36,043) Tax adjustment in respect of different tax rates for foreign subsidiaries (3,508) (17,946) 4,813 Changes in carry-forward losses and valuation allowances 12,714 27,905 (7,243) Taxes resulting from non-deductible expenses 2,299 795 5,272 Difference in basis of measurement for financial reporting and tax return purposes 8,339 (15,060) (5,851) Taxes in respect of prior years (see Note 18D above) (19,734) (10,805) 82,423 Other differences, net (1,550) (1,765) (178) Actual tax expenses $ 22,913 $ 24,131 $ 131,387 Effective tax rate 10.12 % 8.25 % 34.26 % (*) Net earnings per share – amounts of the benefit resulting from the Approved, Privileged and Preferred Enterprises: Basic and diluted $ 0.63 $ 0.59 $ 0.82 I. FINAL TAX ASSESSMENTS Final income tax assessments have been received by the Company up to and including the tax year 2017 and by certain subsidiaries up to 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS A. FAIR VALUE OF DERIVATIVE INSTRUMENTS Derivative financial instruments are presented as other assets or other payables. For asset derivatives and liability derivatives, the fair values of the Company’s outstanding derivative instruments as of December 31, 2023 and December 31, 2022 are summarized below: Asset Derivatives as of December 31, 2023 (*) Asset Derivatives as of December 31, 2022 (*) Liability Derivatives as of December 31, 2023 (**) Liability Derivatives as of December 31, 2022 (**) Derivatives designated as hedging instruments Foreign exchange contracts 50,348 75,397 77,819 130,604 Cross-currency interest rate swaps — — 35,159 26,018 $ 50,348 $ 75,397 $ 112,978 $ 156,622 Derivatives not designated as hedging instruments Foreign exchange contracts — 8,362 3,435 5,439 $ 50,348 $ 83,759 $ 116,413 $ 162,061 (*) Presented as part of other receivables and long-term other receivables. (**) Presented as part of other payables and long-term other payables. B. EFFECT ON CASH FLOW HEDGING The effect of derivative instruments on cash flow hedging and the relationship between income and other comprehensive income for the years ended December 31, 2023 and 2022, are summarized below: Gain (Loss) Recognized in Other Comprehensive Income, net as of December 31, 2023 Gain (Loss) Recognized in Other Comprehensive Income, net as of December 31, 2022 Gain (Loss) on of Derivative Reclassified from Accumulated Other Comprehensive Income (*) as of December 31, 2023 Gain (Loss) on of Derivative Reclassified from Accumulated Other Comprehensive Income (*) as of December 31, 2022 Foreign exchange contracts $ (119,781) $ (152,143) $ (103,621) $ (57,201) (*) Presented as part of revenues/cost of revenue and equity in net earnings of affiliated companies and partnerships. Note 19 - DERIVATIVE FINANCIAL INSTRUMENTS (Cont.) B. EFFECT ON CASH FLOW HEDGING (Cont.) Amount Excluded from Effectiveness Testing Recognized in Income (*) : as of December 31, 2023 as of December 31, 2022 Foreign exchange contracts $ 13,791 $ 9,413 Derivatives not designated as hedging instruments: Foreign exchange contracts and other derivatives instruments $ (3,906) $ (926) (*) Presented as part of revenues/cost of revenue and equity in net earnings of affiliated companies and partnerships. C. NET EFFECT OF CROSS-CURRENCY SWAPS The net effect on earnings from the cross-currency swaps in 2023 was a loss of approximately $15,748, of which approximately $12,126 was offset against exchange rate differences related to Series B Notes and approximately $3,622 increased the interest expenses. D. FORWARD CONTRACTS The notional amounts of outstanding foreign exchange forward contracts at December 31, 2023 is summarized below: Buy December 31, 2023 Buy December 31, 2022 Sell December 31, 2023 Sell December 31, 2022 Euro $ 407,849 $ 498,879 $ 1,400,118 $ 1,032,654 GBP 52,267 1,326 81,061 138,077 NIS 1,782,959 1,359,105 — 286,192 Other 6,204 13,168 285,514 433,585 $ 2,249,279 $ 1,872,478 $ 1,766,693 $ 1,890,508 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2023 December 31, 2022 Payroll and related expenses $ 329,249 $ 336,830 Provision for vacation pay (1) 83,393 80,529 Provision for income tax, net of advances 28,387 30,210 Other income tax liabilities 40,006 32,048 Value added tax (“VAT”) payable 29,599 19,212 Provision for royalties 66,540 62,152 Provision for warranty and cost 92,138 95,708 Derivative instruments 69,036 107,581 Contingent purchase obligations 3,033 3,126 Provision for losses on long-term contracts 60,630 64,062 Provision for vendors on accrued expenses 133,376 95,058 Other (2) 258,960 244,841 $ 1,194,347 $ 1,171,357 (1) Long-term provision for vacation pay - see Note 20. (2) Includes provisions for estimated future costs in respect of (1) unbilled services of certain third parties, (2) probable loss from claims (legal or asserted) in the ordinary course of business and (3) damages caused by the items sold and claims as to the specific products ordered. The following table presents the components of other long-term liabilities as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Provision for vacation pay $ 42,073 $ 42,188 Contingent purchase obligation 37,421 49,282 Accrued expenses on evacuation 11,028 20,482 Provision for losses on long-term contracts — 3,090 Derivative financial instruments 47,376 54,480 Accounts payables 123,787 41,272 Compensated absences 11,341 13,056 Other 25,270 24,046 $ 298,296 $ 247,896 |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES A. ROYALTY COMMITMENTS Elbit Systems and certain Israeli subsidiaries partially finance their research and development expenditures under grant programs sponsored by the Israel Innovation Authority (“IIA”) of the Ministry of Economy and Industry (formerly the Office of Chief Scientist) for the support of research and development activities conducted in Israel. At the time the grants were received from the IIA, successful development of the related projects was not assured. In exchange for participation in the programs by the IIA, Elbit Systems and the subsidiaries agreed to pay 2% - 5% of total sales of products developed within the framework of these programs. The royalties will be paid up to a maximum amount equaling 100% to 150% of the grants provided by the IIA, linked to the dollar, bearing annual interest at a rate based on LIBOR \ SOFR (SOFR only commencing 2023). The obligation to pay these royalties is contingent on actual sales of the products, and in the absence of such sales payment of royalties is not required. In some cases, the Government of Israel’s participation (through the IIA) is subject to export sales or other conditions. The maximum amount of royalties is increased in the event of production outside of Israel. Elbit Systems and certain of its subsidiaries may also be obligated to pay certain amounts to the IMOD and others on certain sales including sales resulting from the development of certain technologies. Royalties expenses amounted to $19,878, $30,610 and $8,216 in 2023, 2022 and 2021, respectively. B. COMMITMENTS IN RESPECT OF LONG-TERM PROJECTS In connection with projects in certain countries, Elbit Systems and some of its subsidiaries have entered and may enter in the future into “buy-back” or “offset” agreements, required by a number of the Company’s customers for these projects as a condition to the Company obtaining orders for its products and services. These agreements are customary in the Company’s industry and are designed to facilitate economic flow back (buy-back) and/or technology transfer to businesses or government agencies in the applicable country. These commitments may be satisfied by the Company’s placement of direct work or vendor orders for supplies and/or services, transfer of technology, investments or other forms of assistance in the applicable country. The buy-back rules and regulations, as well as the underlying contracts, may differ from one country to another. The ability to fulfill the buy-back obligations may depend, among other things, on the availability of local suppliers with sufficient capability to meet the Company's requirements and which are competitive in cost, quality and schedule. In certain cases, the Company’s commitments may also be satisfied through transactions conducted by other parties. The Company does not commit to buy-back agreements until orders for its products or services are definitive, but in some cases the orders for the Company’s products or services may become effective only after the Company’s corresponding buy-back commitments are in effect. Buy-back programs generally extend at least over the relevant commercial contract period and may provide for penalties in the event the Company fails to perform in accordance with buy-back requirements. In some cases the Company provides guarantees in connection with the performance of its buy-back obligations. Should the Company be unable to meet such obligations it may be subject to contractual penalties, the Company's guarantees may be drawn upon, and the Company's chances of receiving additional business from the applicable customers could be reduced or, in certain cases, eliminated. At December 31, 2023, the Company had outstanding buy-back obligations totaling approximately $2,500,000 that extend through 2033 . Note 21 - COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) C. LEGAL CLAIMS The Company and its subsidiaries are involved in legal claims arising in the ordinary course of business. The Company’s management, based on the opinion of its legal counsel, believes that any financial impact from the settlement of such claims in excess of the accruals recorded in the financial statements will not have a material adverse effect on the financial position or results of operations of the Company . As of December 31, 2023 , the Company was not involved in significant legal proceedings. D. GUARANTEES As of December 31, 2023, guarantees in the amount of approximately $4,358,456 were issued by banks and other financial institutions on behalf of the Company and certain of its subsidiaries mainly in order to secure certain contract liabilities (advances from customers) and performance obligation and employee benefit plans. E. COVENANTS In connection with Series B, C and D Notes, commercial paper, bank credits and loans, including performance guarantees issued by banks and bank guarantees in order to secure certain advances from customers, the Company and certain subsidiaries are obligated to meet certain financial covenants. Such covenants include requirements for shareholders’ equity, current ratio, operating profit margin, tangible net worth, EBITDA, interest coverage ratio and total leverage. In respect of each of the 12 month periods ending December 31, 2023 and 2022, the Company was in material compliance with its loan obligations. F. CONTRACTUAL OBLIGATIONS Substantially all of the Company’s purchase commitments relate to obligations under purchase orders and subcontracts entered into by the Company. These purchase orders and subcontracts are typically in standard formats proposed by the Company, with the subcontracts and purchase orders also reflecting provisions from the Company’s applicable prime contract that apply on a flow down basis to subcontractors and vendors. The terms typically included in these purchase orders and subcontracts are consistent with Uniform Commercial Code provisions in the United States for sales of goods, as well as with specific terms called for by its customers in various countries. These terms include the Company’s right to terminate the purchase order or subcontract in the event of the vendor’s or subcontractor’s default, and typically include the Company’s right to terminate the order or subcontract for the Company’s convenience (or if the Company’s prime contractor has so terminated the prime contract). Such purchase orders and subcontracts typically are not subject to variable price provisions. As of December 31, 2023 and 2022, the purchase commitments were $3,856,034 and $3,028,988 , respectively. The Company's purchase commitments are expected to be realized during the years 2024 - 2030. G. FIXED LIENS In order to secure bank loans and bank and other financial institutions guarantees in the amount of approximately $222,807 as of December 31, 2023, certain Company entities recorded fixed liens on most of their machinery and equipment, mortgages on most of their real estate and floating charges on most of their assets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY A. SHARE CAPITAL Ordinary shares confer upon their holders voting rights and the right to receive dividends. B. EQUITY INCENTIVE PLANS 2018 Equity incentive plan for executive officers: In 2018 the Company's Board of Directors approved the 2018 Equity Incentive Plan for Executive Officers (the “2018 Equity Incentive Plan”). The purpose of this plan is to link the compensation and benefits of the Company's executive officers with the future growth and success of the Company and its affiliates and with long-term shareholder value. The 2018 Equity Incentive Plan consisted of a pool of 1,500,000 options (the "Options") to be exercised using a “Net-Exercise Mechanism”, which entitles the recipients to exercise the Options for an amount of shares reflecting only the benefit factor. The Options were allocated out of the option pool, subject to the required approvals, to the Company's Israeli executive officers. The exercise price of an Option is determined in U.S dollars and is the higher of: (i) the average closing share price of Elbit Systems' ordinary shares on the TASE, during the period of thirty (30) trading days preceding the date on which the Company's Board of Directors approves the granting of the respective Options, converted into U.S. dollars by applying the average representative U.S. dollar - NIS exchange rate during such thirty (30) trading days period; or (ii) the closing share price of our ordinary shares on the TASE on the last trading date preceding the date on which the Company's Board of Directors approves the granting of the respective Options, converted into the U.S. dollars by applying the representative U.S. dollar - NIS exchange rate. Under the 2018 Equity Incentive Plan, the Options become vested and are eligible to be exercised in accordance with the following vesting schedule: (1) Forty percent (40%) of the Options are vested and exercisable from the second anniversary of the grant date; (2) An additional twenty percent (20%) of the Options are vested and exercisable from the third anniversary of the grant date; (3) An additional twenty percent (20%) of the Options are vested and exercisable from the fourth anniversary of the grant date; and (4) The remaining twenty (20%) of the Options are vested and exercisable from the fifth anniversary of the grant date. The Options generally expire after 63 months from the date of grant. As of December 31, 2023, there were approximately 64,000 Options available for future grants under the 2018 Equity Incentive Plan. 2022 Equity incentive plan for employees: On January 16, 2022, our Board of Directors approved the 2022 Equity Incentive Plan for Employees (the “Employees Plan”). The purpose of the Employees Plan is to enable Elbit Systems to link the compensation and benefits of its employees with the future growth and success of Elbit Systems and its affiliates and with long-term shareholder value, through the creation of a long-term incentive for employees. Our Board of Directors has also approved the appointment of our Compensation Committee as the administrator of the Employees Plan. Under the Employees Plan, the Company may allocate options to employees of Elbit Systems and its wholly owned subsidiaries, to be exercised using a “Net-Exercise Mechanism”, which entitles the recipients to exercise the options for an amount of shares reflecting only the benefit factor. The Board of Directors approved an option pool of 1,100,000 options under the Employees Plan. The options were allocated out of the option pool, subject to the required approvals. Note 22 - SHAREHOLDERS’ EQUITY (Cont.) B. EQUITY INCENTIVE PLANS (Cont.) The exercise price of an option is denominated in U.S. dollars and is the higher of: (i) the average of the closing share price of Elbit Systems ordinary shares on the TASE, during the period of thirty (30) trading days preceding, but not including, the Grant Date (as defined below), converted into U.S. dollars by applying the average representative U.S. dollar - NIS exchange rate during such thirty (30) trading days period; or (ii) the closing share price of our ordinary shares on the TASE on the last trading date preceding the Grant Date, converted into U.S. dollars by applying the representative U.S. dollar - NIS exchange rate most recently published by the Bank of Israel prior to the Grant Date. The Grant Date of options to a recipient is determined to be the later of: (i) the date on which the grant of the options to a participant was approved by the administrator of the plan; or (ii) the first trading day after a period of thirty (30) days has elapsed from the date the Employees Plan is filed with the Israeli Tax Authorities; unless otherwise determined by the Board or required under applicable law. Granted options vest, subject to continued employment of the participant with the Company or a subsidiary, as follows: (1) Forty percent (40%) of the options are vested and exercisable from the second anniversary of the Grant Date; (2) An additional thirty percent (30%) of the options are vested and exercisable from the third anniversary of the Grant Date; and (3) The remaining thirty percent (30%) of the options are vested and exercisable from the fourth anniversary of the Grant Date. The options generally expire after 51 months from the date of grant. As of December 31, 2023, there were approximately 170,000 Options available for future grants under the Employees Plan. The fair value based cost of employee stock options is estimated at the grant date using a lattice-based option valuation model. During the years ended 2023 and 2022, the Company granted 76,100 and 1,028,100 options, respectively. The valuation includes the following weighted average assumptions: Year Ended December 31, 2023 Year Ended December 31, 2022 Dividend yield 1.97 % 2.10 % Expected volatility 28.02 % 25.79 % Risk-free interest rate 4.15 % 2.10 % Expected life 4.25 years 4.25 years Forfeiture rate 10.00 % 10.00 % Suboptimal factor 1.25 1.25 Because lattice-based option valuation models incorporate ranges of assumptions for inputs, the average of those ranges are disclosed. Expected volatilities are based on implied volatilities from the historical volatility of Elbit Systems Ltd.’s stock and other factors. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The average of the range, given above, results from certain groups of employees exhibiting different behavior. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the contractual life of the option. The dividend yield assumption is based on historical dividends. Note 22 - SHAREHOLDERS’ EQUITY (Cont.) B. EQUITY INCENTIVE PLANS (Cont.) The following is a summary of Elbit Systems' options activity under the Equity Incentive Plans: Number of Options 2023 Weighted average exercise price 2023 Number of Options 2022 Weighted average exercise price 2022 Outstanding - beginning of the year 1,728,106 156.66 1,076,750 131.37 Granted 76,100 182.06 1,028,100 185.30 Exercised (312,085) 129.04 (241,844) 128.76 Forfeited (39,300) 180.54 (134,900) 223.12 Outstanding - end of the year 1,452,821 163.30 1,728,106 156.66 The aggregate intrinsic value represents the total intrinsic value (the difference between Elbit Systems’ closing stock price on the last trading day of the fourth quarter of the applicable fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2023. This amount changes, based on the market price of the Company’s stock and the average exercise price of in-the-money options. Aggregate intrinsic value of outstanding options as of December 31, 2023 , was $66,356. As of December 31, 2023, there was $26,639 of total unrecognized compensation cost related to share-based compensation arrangements granted under the Equity Incentive Plans. That cost is expected to be recognized over a weighted average period of 3 years. As of December 31, 2023 , 1,452,821 options were vested and expected to be vested at a weighted average exercise price of $163.30 per share. The weighted a verage remaining contractual life of exercisable options as of December 31, 2023, is approximate ly 3 years . C. OUTSTANDING OPTIONS AND COMPENSATION EXPENSES The options outstanding as of December 31, 2023, have been separated into ranges of exercise prices, as follows: Options outstanding: Exercise price Number of Options Weighted average Weighted average 121.42 - 216.32 1,452,821 2.64 $ 163.30 Compensation expenses related to the Equity Incentive Plans amounted to $12,141, $10,463 and $5,312 for the three years ended December 31, 2023, 2022 and 2021 respectively, which were recognized, as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cost of revenues $ 10,319 $ 8,893 $ 4,515 General and administration expenses 1,822 1,570 797 $ 12,141 $ 10,463 $ 5,312 Note 22 - SHAREHOLDERS’ EQUITY (Cont.) D. COMPUTATION OF EARNINGS PER SHARE Computation of basic and diluted net earnings per share: Net income to shareholders of ordinary shares Year Ended December 31, 2023 Weighted Per Share amount Year Ended December 31, 2023 Net income Weighted average number of shares (*) Year Ended December 31, 2022 Per Share amount Year Ended December 31, 2022 Basic net earnings $ 215,131 44,375 $ 4.85 $ 275,448 44,322 $ 6.21 Effect of dilutive securities: Employee stock options — 217 (0.03) — 259 (0.03) Diluted net earnings $ 215,131 44,592 $ 4.82 $ 275,448 44,581 $ 6.18 (*) In thousands. E. 2018 PHANTOM BONUS RETENTION PLAN In 2018, the Company’s Board of Directors approved a “Phantom Bonus Retention Plan” for Senior Managers (the “2018 Phantom Plan”). The 2018 Phantom Plan provides for phantom bonus units which entitle the recipients to receive payment in cash of an amount reflecting the “benefit factor”, which is linked to the performance of Elbit Systems’ stock price in the TASE over the applicable periods (tranches) under the 2018 Phantom Plan. As of December 31, 2023, 678,100 phantom bonus units of the Plan were granted with a weighted average basic price per unit, as defined in the Plan, of $139.51. The benefit earned for each year of a tranche is the difference between the basic price and the closing price of the Company’s share for that year, as defined in the 2018 Phantom Plan, not to exceed an increase of 100% in the Company's share price from the basic price of the first year of a tranche. The Company recorded an amount of approximately $10,589, $62,090 and $18,431, during the three years ended December 31, 2023, 2022 and 2021, respectively, as compensation costs related to the phantom bonus units granted under the 2018 Phantom Plan, as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cost of revenues $ 6,164 $ 34,778 $ 10,522 General and administration expenses 2,635 15,537 4,584 Marketing and selling 1,790 11,775 3,325 $ 10,589 $ 62,090 $ 18,431 F. DIVIDEND POLICY |
Major Customer And Geographic I
Major Customer And Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Major Customer And Geographic Information [Abstract] | |
Segment Disclosure, Major Customer And Geographic Information | SEGMENT DISCLOSURE, MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION A. SEGMENT DISCLOSURE: The Company reports segment information based on a management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s President and Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM assesses the performance of each operating segment using information about revenue and segment operating income that is defined as operating income generated at the segment level, excluding unallocated corporate income or expense and other operating income (expenses), net, such as sale of buildings or shares. The Company’s CODM does not regularly review assets and liabilities information by reportable segments. Therefore, the Company does not report assets and liabilities information by segment. The segments are encouraged to cooperate on a range of common projects performed by the Company. It is common for the reportable segments to provide their products to the same customers either through joint projects or by marketing and offering a combined and integrated solution containing a variety of capabilities, products, and technologies of the Company’s portfolio from various businesses or subsidiaries, all tailored to satisfy the customer’s or project’s specific requirements. Intersegment transactions are sales between segments and are eliminated in consolidation. The following tables present information about the Company’s reported segment revenues and operating income for the periods indicated: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Revenues: Aerospace External customers $ 1,613,137 $ 1,471,093 $ 1,281,407 Intersegment revenue 260,144 262,089 301,905 Total $ 1,873,281 $ 1,733,182 $ 1,583,312 C4I and Cyber External customers $ 668,414 $ 631,297 $ 590,095 Intersegment revenue 52,702 47,098 34,601 Total $ 721,116 $ 678,395 $ 624,696 ISTAR and EW External customers $ 996,927 $ 882,200 $ 888,206 Intersegment revenue 182,500 163,449 138,089 Total $ 1,179,427 $ 1,045,649 $ 1,026,295 Land External customers $ 1,241,023 $ 1,075,846 $ 1,028,121 Intersegment revenue 65,174 92,737 88,801 Total $ 1,306,197 $ 1,168,583 $ 1,116,922 ESA External customers $ 1,455,243 $ 1,451,113 $ 1,490,692 Intersegment revenue 9,695 5,559 2,115 Total $ 1,464,938 $ 1,456,672 $ 1,492,807 Revenues Total revenues (external customers and intersegment) for reportable segments $ 6,544,959 $ 6,082,481 $ 5,844,032 Less -Intersegment revenue (570,215) (570,932) (565,511) Total consolidated revenues $ 5,974,744 $ 5,511,549 $ 5,278,521 Note 23 - SEGMENT DISCLOSURE, MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION A. SEGMENT DISCLOSURE (Cont.): The following tables present information about the Company’s reported operating income for the periods indicated: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Operating income: Aerospace $ 125,455 $ 106,760 $ 129,213 C4I and Cyber 50,653 48,964 44,350 ISTAR and EW 134,882 49,120 66,001 Land 80,610 28,554 35,567 ESA (4,687) 74,978 124,259 Segment operating income 386,913 308,376 399,390 Unallocated corporate income (expense) (17,805) (9,810) 4,458 Other operating income — 68,918 14,660 Operating income 369,108 367,484 418,508 Financial expenses, net (137,827) (51,364) (40,393) Other income (expenses), net (see note 26) (4,787) (23,562) 5,336 Income before income taxes $ 226,494 $ 292,558 $ 383,451 Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Depreciation and amortization by segment: Aerospace $ 36,284 $ 34,353 $ 35,084 C4I and Cyber 12,551 13,651 16,054 ISTAR and EW 29,001 24,992 23,452 Land 34,747 38,560 41,901 ESA 50,526 46,540 34,962 Unallocated corporate expenses 1,690 3,194 1,638 Total depreciation and amortization $ 164,799 $ 161,290 $ 153,091 Note 23 - SEGMENT DISCLOSURE, MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION A. SEGMENT DISCLOSURE (Cont.): REVENUES ARE ATTRIBUTED TO GEOGRAPHIC AREAS BASED ON LOCATION OF THE END CUSTOMERS AS FOLLOWS: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 North America $ 1,417,742 $ 1,489,685 $ 1,608,582 Asia-Pacific 1,263,771 1,405,473 1,443,505 Israel 1,167,228 1,071,945 1,094,662 Europe 1,776,412 1,243,550 884,504 Latin America 120,700 119,860 126,686 Other 228,891 181,036 120,582 $ 5,974,744 $ 5,511,549 $ 5,278,521 B. MAJOR CUSTOMER DATA AS A PERCENTAGE OF TOTAL REVENUES: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 IMOD 16% 17% 18% U.S. Government 17% 19% 21% C. LONG-LIVED ASSETS BY GEOGRAPHIC AREAS: The Company's long-lived assets for the year ended December 31, 2023 and 2022, commencing current year presentation, includes property plant and equipment and operating lease right of use assets, as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Israel $ 1,098,074 $ 968,450 U.S. 307,239 280,687 Other 108,521 105,516 $ 1,513,834 $ 1,354,653 |
Research And Development, Net
Research And Development, Net | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development Expense [Abstract] | |
Research And Development, Net | RESEARCH AND DEVELOPMENT, NET Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Total expenses $ 502,654 $ 501,777 $ 447,852 Less - grants and participations (78,234) (66,127) (52,765) $ 424,420 $ 435,650 $ 395,087 |
Financial Expenses, Net
Financial Expenses, Net | 12 Months Ended |
Dec. 31, 2023 | |
Interest and Debt Expense [Abstract] | |
Financial Expenses, Net | FINANCIAL EXPENSES, NET Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Expenses: Interest on long-term bank debt $ (8,677) $ (12,392) $ (10,821) Interest on Series B, C and D Notes, net (9,537) (11,683) (5,758) Interest on short-term bank credit and loans (58,253) (14,857) (7,683) Guarantees (22,339) (17,356) (13,908) Gain (loss) from revaluation of lease liabilities and exchange rate differences, net (11,962) 10,542 (10,178) Other (33,136) (8,670) 6,080 (143,904) (54,416) (42,268) Income: Interest on cash, cash equivalents and bank deposits 2,359 383 469 Other 3,718 2,669 1,406 6,077 3,052 1,875 $ (137,827) $ (51,364) $ (40,393) |
Other Income (Expenses), Net
Other Income (Expenses), Net | 12 Months Ended |
Dec. 31, 2023 | |
Nonoperating Income (Expense) [Abstract] | |
Other Income, Net | OTHER INCOME (EXPENSES), NET Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Pension non-service cost $ (6,596) $ (4,555) $ (11,715) Gain (loss) on sale of investments (1) — (10,619) — Revaluation of investments (2) (2,963) (10,175) 17,282 Insurance compensation 5,200 — — Other (428) 1,787 (231) $ (4,787) $ (23,562) $ 5,336 (1) During 2022 the company recognized a gain (loss) resulting from the sales of holdings in affiliated companies in Israel to third parties (see Note 6B). (2) During 2023, 2022 and 2021, the Company recognized gains and losses as a result of revaluation of its investments accounted for under the fair value method (see Note 6C). |
Related Parties' Transactions A
Related Parties' Transactions And Balances | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties' Transactions And Balances | RELATED PARTIES' TRANSACTIONS AND BALANCES Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Income - Sales to related-party companies (*) $ 147,807 $ 155,728 $ 169,834 Participation in expenses $ — $ 85 $ 394 Cost and expenses - Supplies from related parties (**) $ 15,877 $ 2,143 $ 6,240 Balances: December 31, 2023 December 31, 2022 Trade receivables and other receivables (*) $ 102,075 $ 86,535 Trade payables and advances (**) $ 35,363 $ 33,167 The sales to the Company’s related parties in respect of U.S. government defense contracts are made on the basis of cost. (*) A significant portion of the sales and balances include sales of helmet mounted cueing systems purchased from the Company by a 50%-owned affiliate of ESA. (**) Includes mainly electro-optics components and sensors, purchased by the Company from a 50%-owned Israeli company, and in 2021 , includes also electro-optics products purchased by the Company from another 50%-owned Israeli affiliate. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Schedule I – Valuation and Qualifying Accounts (In thousands of U.S. dollars) Column A Column B Column C Column D Column E Description Balance at Beginning of Period Additions (Charged to Costs and Expenses) Deductions (Write-Offs and Actual Losses Incurred) Additions Resulting from Acquisitions Balance at End of Period Year ended December 31, 2023: Provisions for Losses on Long-Term Contracts (*) 80,962 38,560 24,072 — 95,450 Provisions for Claims and Potential Contractual Penalties and Others 2,557 1,244 140 — 3,661 Credit risk (**) 9,162 674 664 — 9,172 Valuation Allowance on Deferred Taxes 164,906 293 — — 165,199 Year ended December 31, 2022: Provisions for Losses on Long-Term Contracts (*) 89,509 20,944 33,102 3,611 80,962 Provisions for Claims and Potential Contractual Penalties and Others 2,343 385 171 — 2,557 Credit risk (**) 10,307 301 1,446 — 9,162 Valuation Allowance on Deferred Taxes 192,811 — 27,905 — 164,906 Year ended December 31, 2021: Provisions for Losses on Long-Term Contracts (*) 108,281 9,384 36,696 8,540 89,509 Provisions for Claims and Potential Contractual Penalties and Others 2,233 338 228 — 2,343 Credit risk (**) 16,192 65 5,950 — 10,307 Valuation Allowance on Deferred Taxes 172,833 7,243 — 12,735 192,811 (*) As of December 31, 2023, 2022 and 2021 an amount of $34,820, $16,900 and $13,584, respectively, is presented as a deduction from inventories. As of December 31, 2023, 2022 and 2021 an amount of $60,630, $64,062 and $75,925, respectively, is presented as part of other payables and accrued expenses. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Use Of Estimates | USE OF ESTIMATESThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The most significant assumptions are employed in estimates used in determining values of business combinations, impairment of long-lived assets and goodwill, useful lives of long-lived assets, income taxes including the valuation of deferred tax assets and uncertain tax positions, stock-based compensation expenses, post-employment benefits liabilities (including the actuarial assumptions), as well as in estimates used in applying the Company's revenue recognition policies. Actual results may differ from estimated results. |
Functional Currency | FUNCTIONAL CURRENCY The Company’s revenues are generated mainly in U.S. dollars. In addition, most of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances of the Company and certain subsidiaries that are denominated in other currencies have been remeasured into U.S. dollars in accordance with principles set forth in ASC 830, “Foreign Currency Matters”. All exchange gains and losses from the remeasurement mentioned above are reflected in the statement of income as financial expenses or income, as appropriate. For those Israeli and non-Israeli subsidiaries and investees whose functional currency has been determined to be other than the U.S. dollar, assets and liabilities are translated at year-end exchange rates, and statement of income items are translated at average exchange rates prevailing during the year. Resulting translation differences are recorded as a separate component of accumulated other comprehensive income (loss) in equity. |
Principles Of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Elbit Systems and its wholly and majority-owned subsidiaries and variable interest entities that are required to be consolidated. Intercompany transactions and balances, including profit from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. |
Comprehensive Income | COMPREHENSIVE INCOME The Company accounts for comprehensive income in accordance with ASC 220, “Comprehensive Income”. This statement establishes standards for the reporting and display of comprehensive income and its components. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. Accordingly, the Company presents a separate statement of consolidated comprehensive income. |
Business Combinations | BUSINESS COMBINATIONS The Company applies ASC 805, “Business Combinations”. ASC 805 requires recognition of assets acquired, liabilities assumed and non-controlling interest in the acquired entity at the acquisition date, measured at their fair values as of that date. This ASC also requires the fair value of acquired in-process research and development (“IPR&D”) to be recorded as intangibles with indefinite lives, contingent consideration to be recorded on the acquisition date and restructuring and acquisition-related deal costs to be expensed as incurred. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. |
Cash And Cash Equivalents | CASH AND CASH EQUIVALENTS Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, when purchased. |
Short-Term Bank Deposits and Restricted Cash | SHORT-TERM BANK DEPOSITS |
Inventories | INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventory write-offs are provided to cover risks arising from slow-moving items or technological obsolescence for which recoverability is not probable. Cost is determined as follows: • Raw materials using the average or FIFO cost method. • Work in progress: • Costs incurred on certain long-term contracts in progress, but for which control has not transferred to the customer, include direct labor, material, subcontractors, other direct costs and an allocation of overheads, which represent recoverable costs incurred for production, allocable operating overhead cost and, where appropriate, research and development costs (See Note 2(U)). • Labor overhead is generally included on the basis of updated hourly rates and is allocated to each project according to the amount of hours expended. Material overhead is generally allocated to each project based on the value of direct material that is charged to the project. Pre-contract costs are generally expensed, but can be deferred and included in inventory only when such costs can be directly associated with a specific anticipated contract and if their recoverability from the specific anticipated contract is probable according to the guidelines of ASC 606. |
Investment In Affiliated Companies, Partnerships And Other Companies | INVESTMENT IN AFFILIATED COMPANIES, PARTNERSHIPS AND OTHER COMPANIES Investments in affiliated companies and partnerships that are not controlled but over which the Company can exercise significant influence (generally, entities in which the Company holds approximately between 20% to 50% of the voting rights of the investee) are presented using the equity method of accounting. Profits on inter-company sales, not realized outside the Company, are eliminated. The Company discontinues applying the equity method when its investment (including advances and loans) is reduced to zero and the Company has not guaranteed obligations of the affiliate or otherwise committed to provide further financial support to the affiliate. For certain investments, the Company elected to measure the investments at fair value. Such elections are irrevocable. Under the fair value method, investments are recorded at fair value and any changes in fair value are reported in the consolidated statements of operations. All costs (other than purchase price) directly associated with the acquisition of an investment to be accounted for using the fair value method are expensed as incurred. Investments in preferred shares, which do not result in significant influence and without readily determinable fair value, are measured at cost, less impairments, plus or minus observable price changes. Equity investments without readily determinable fair value are assessed for impairment periodically. Management evaluates investments in affiliated companies, partnerships and other non-marketable equity securities for evidence of other-than-temporary declines in value. Such evaluation is dependent on the specific facts and circumstances. Accordingly, in determining whether other-than-temporary declines exist, management evaluates various indicators for other-than-temporary declines and evaluates financial information (e.g, budgets, business plans, financial statements, etc.) . D uring 2023, 2022 and 2021 no impairment was recorded. |
Variable Interest Entities | VARIABLE INTEREST ENTITIES ASC 810-10, “Consolidation”, provides a framework for identifying variable interest entities (“VIEs”) and determining when a company should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statements. According to ASC 810-10, the Company consolidates a VIE when it has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The determination of whether the Company should consolidate a VIE is evaluated continuously as existing relationships change or future transactions occur. The Company’s assessment of whether an entity is a VIE and the determination of the primary beneficiary is judgmental in nature and involves the use of significant estimates and assumptions. Those include, among others, forecasted cash flows, their respective probabilities and the economic value of certain preference rights. In addition, such assessment also involves estimates of whether an entity can finance its current activities, until it reaches profitability, without additional subordinated financial support. Also according to ASC 810, a non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as a separate component of equity in the consolidated financial statements. As such, changes in the parent’s ownership interest with no change of control are treated as equity transactions, rather than acquisitions achieved in stages or dilution gains or losses. Losses of partially-owned consolidated subsidiaries will continue to be allocated to the non-controlling interests even when the investment in the subsidiary was already reduced to zero. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) J. VARIABLE INTEREST ENTITIES (Cont.) A 51%-held subsidiary in the U.K. (the “UK Subsidiary”) is considered to be a VIE. As Elbit Systems is the primary beneficiary and has both the power to direct its activities and absorb the majority of its losses or the right to the majority of its earnings based upon holding the 51% economic interest, the UK Subsidiary is consolidated in the Company’s financial statements. The Company holds 50% of the contractual rights in, and is the primary beneficiary of, an Israeli limited partnership, which is considered to be a VIE and is consolidated in the Company’s financial statements. |
Long-Term Receivables | LONG-TERM RECEIVABLESLong-term trade, unbilled (contract assets) and other receivables, with payment terms in excess of one year that are considered collectible, are recorded at their estimated present values (determined based on the market interest rates at the date of initial recognition). |
Long-Term Bank Deposits | LONG-TERM BANK DEPOSITS Long-term bank deposits are deposits with maturities of more than one year. These deposits are presented at cost and earn interest at market rates. Accumulated interest to be received over the next year is recorded as a current asset. The deposits and accumulated interest approximate fair value. |
Property, Plant And Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, net of accumulated depreciation and investment grants. For equipment produced for the Company’s own use, cost includes materials, labor and overhead (including interest costs, when applicable) but not in excess of the fair value of the equipment. Depreciation is calculated by the straight-line method over the estimated useful life of the assets at the following annual rates: % Buildings and leasehold improvements (*) 2%-19% Instruments, machinery and equipment 7%-32% Office furniture and other 7%-13% Motor vehicles and airplanes 13%-18% (Mainly 15%) (*) Leasehold improvements are amortized generally over the term of the lease or the useful life of the assets, whichever is shorter. The Company capitalizes direct costs (internal and external) of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of 3 to 12 years and are reported as a component of property and equipment. The Company is advancing in the process of developing and implementing a new Enterprise Resource Planning (“ERP”) system. Certain costs incurred during the application development stage have been capitalized in accordance with authoritative accounting guidance related to accounting for the cost of computer software developed or obtained for internal use. The capitalized costs for this ERP system were approximately $15,273 and $29,524, for the years ended December 31, 2023 and 2022, respectively. These costs are amortized over the system's estimated useful life, over a period not to exceed 12 years in the aggregate, as the ERP system is placed in service. |
Other Intangible Assets | OTHER INTANGIBLE ASSETS Other identifiable intangible assets mainly consist of purchased technology, customer relations and trademarks. These intangible assets are stated at cost, net of accumulated amortization and impairments, and are amortized over their useful life using the straight-line method or the accelerated method, whichever better reflects the applicable expected utilization pattern. |
Impairment Of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS The Company’s long-lived assets and finite-lived intangible assets are reviewed for impairment in accordance with ASC 360 “Property, Plant and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets (or assets group) to be held and used is determined by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If the carrying amount is higher, an asset is deemed to be impaired and the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. For the years ended December 31, 2023, 2022 and 2021, no impairment was recognized. |
Goodwill Impairment | GOODWILL IMPAIRMENT Goodwill is subject to an impairment test at the reporting unit level on an annual basis during the fourth quarter of the year (or more frequently if impairment indicators arise). The Company identified several reporting units based on the guidance of ASC 350, “Intangibles – Goodwill and Other”. The impairment test compares carrying values of the reporting units to its estimated fair values. If the carrying value exceeds the fair value, then the Company recognizes an impairment of goodwill for the amount of this excess. For each of the three years in the period ended December 31, 2023, no impairment was identified. As required by ASC 820, “Fair Value Measurement”, the Company applies assumptions that market place participants would consider in determining the fair value of each reporting unit. |
Severance Pay | SEVERANCE PAY Elbit Systems’ and its Israeli subsidiaries’ obligations for severance pay are calculated pursuant to Israel’s Severance Pay Law, based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date and are presented on an undiscounted basis (the “Shut Down Method”). Subject to certain conditions, employees are entitled to one month’s salary for each year of employment or a portion thereof. The obligation is funded by monthly deposits through insurance policies and by an accrual. The value of these policies is recorded as an asset on the Company’s balance sheet. The deposited funds may be withdrawn only upon the fulfillment of the obligation, pursuant to the Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrender value of these policies and includes profits (or losses) accumulated to the balance sheet date. Elbit Systems and its Israeli subsidiaries have entered into an agreement with some of its employees implementing Section 14 of the Severance Pay Law and the General Approval of the Labor Minister dated June 30, 1998, issued in accordance with such Section 14. The agreement mandates that upon termination of such employees’ employment, all the amounts accrued in their insurance policies will be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet, as the severance pay risks have been irrevocably transferred to the severance funds. Severance pay expenses for the years ended December 31, 2023, 2022 and 2021, amounted to approximately $78,659, $71,627 and $72,309, respectively. |
Pension And Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS The Company accounts for its obligations for pension and other post-retirement benefits in accordance with ASC 715, “Compensation – Retirement Benefits”. The Company reports the service cost component of net retirement benefit cost separately from the other components of net retirement benefit cost in the Consolidated Statement of Income (see Note 17). |
Revenue Recognition | Remaining performance obligations (“Backlog”): Backlog represents the future revenues expected to be recognized on firm orders received by the Company and is equivalent to the Company’s remaining performance obligations at the end of each period for a remaining period of more than a year. Unexercised contract options and indefinite delivery indefinite quantity (“IDIQ”) contracts are not included in backlog until the time an option or specific task order is authorized, exercised or awarded. |
Warranty | WARRANTY The Company estimates the costs that may be incurred under its basic warranty. Such costs are estimated as part of the total contract’s cost and are recorded as a liability at the time revenue is recognized. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Factors that affect the Company’s warranty cost include the number of delivered products, engineering estimates and anticipated rates of warranty claims. The Company periodically assesses the adequacy of its recorded warranty cost and adjusts the amount as necessary. |
Research And Development Costs | Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) U. RESEARCH AND DEVELOPMENT COSTS Research and development costs, net of participation grants, include costs incurred for independent research and development and bid and proposal efforts and are expensed as incurred unless the costs are related to certain contractual arrangements, which are recorded as part of cost of revenues over the period that revenue is recognized, consistent with the Company’s revenue recognition accounting policy. The Company does not perform significant standalone research and development for others. The Company has certain research and development contractual arrangements that meet the requirements for best efforts research and development accounting. Accordingly, the amounts funded by the customer are recognized as an offset to its research and development expenses rather than as contract revenues. |
Income Taxes | V. INCOME TAXES The Company accounts for income taxes and uncertain tax positions in accordance with ASC 740, “Income Taxes”. This guidance prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that are more likely than not to be realized. The Company establishes reserves for uncertain tax positions based on an evaluation of whether the tax position is “more likely than not” to be sustained upon examination. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense. |
Concentration Of Credit Risks | W. CONCENTRATION OF CREDIT RISKS Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short and long-term deposits and accounts receivables. The majority of the Company’s cash and cash equivalents and short and long-term deposits are invested with major banks, mainly in Israel and the United States. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company’s investments have a high credit rating. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) W. CONCENTRATION OF CREDIT RISKS (Cont.) The Company’s trade receivables are derived primarily from sales to large and stable customers and governments located mainly in Israel, the United States, Europe and Asia-Pacific. The Company performs ongoing credit evaluations of its customers and has not experienced in recent years any unexpected material losses. An allowance for credit risk is recognized with respect to those amounts that the Company has determined to be doubtful of collection. The Company entered into foreign exchange forward contracts and cross currency interest rate swaps (together “derivative instruments”) intended to protect against the increase in the dollar equivalent value of forecasted non-dollar currency cash flows and interest as applicable. These derivative instruments are designed to effectively hedge the Company’s non-dollar currency and interest rates exposures (see Note 2X). X. DERIVATIVE FINANCIAL INSTRUMENTS |
Derivative Financial Instruments | For derivative instruments that do not meet the definition of a hedge, the changes in fair value are included immediately in earnings in “Financial expenses, net” in each reporting period (see Note 25). As part of its hedging strategy, the Company enters into forward exchange contracts in order to protect the Company from the risk that the eventual dollar cash flows from the sale to international customers and purchase of products from international vendors will be adversely affected by changes in exchange rates. The Company also may enter into forward exchange contracts and options strategies in order to limit the exposure to exchange rate fluctuation associated with payroll expenses mainly incurred in NIS. In connection with the issuance of Series B Notes in 2021 on the Tel Aviv Stock Exchange (see Note 16), the Company entered into cross-currency interest rate swap transactions with a notional principal of NIS 1.5 billion, to effectively hedge the effect of interest and exchange rate difference from the NIS Series B Notes. The cross-currency interest rate swap instruments effectively convert the NIS fixed interest rate of the debt to U.S. dollar fixed interest rate. The terms of the swap agreements substantially match the terms of the debt. Under the terms of the swap agreements, the Company pays interest semi-annually in U.S. dollars at an annual weighted rate of 1.92% . The swap agreements are designated as a cash flow hedge. |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company accounts for share-based arrangements under ASC 718, “Compensation – Stock Compensation”, which requires all share-based payments, including grants of employee stock options to be recognized in the income statement based on their fair values. |
Fair Value Of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of cash and cash equivalents, short-term bank deposits, trade and unbilled receivables and contract assets, net, short-term bank credit and loans and trade payables approximate their fair values due to the short-term maturities of such instruments. The fair value of long-term loans is estimated by discounting the future cash flows using current interest rates for loans of similar terms and maturities. The carrying amount of the long-term loans approximates their fair value. The Company accounts for certain assets and liabilities at fair value under ASC 820, “Fair Value Measurement”. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of inputs that may be used to measure fair value are as follows: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and Level 3 - Unobservable inputs that are supported by little or no market activity. Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) Z. FAIR VALUE OF FINANCIAL INSTRUMENTS (Cont.) The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instruments are categorized as Level 3. Under FASB ASC 825-10, the Company may elect to report certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the time an eligible financial asset or financial liability or firm commitment is acquired or incurred, as applicable, or when certain specified reconsideration events occur. The fair value election, with respect to an item, may not be revoked o nce an election is made. The Company has elected to account for certain investments that would otherwise be accounted for under the equity method using the fair value method (see Note 6). For these investments the Company will also measure any guarantee at fair value, with changes in fair value reported through earnings. Such investments are categorized as level 3. The Company’s cross-currency interest rate swaps are valued under an income approach using industry-standard models that consider various assumptions, including time value, volatility factors, current market and contractual prices for the underlying and counterparty non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instruments, and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Accordingly, such instruments are categorized as Level 2. The Company’s foreign currency derivative instruments are classified as Level 2 because valuation inputs are based on quoted prices and market observable data of similar instruments. Investments elected to be accounted for using the fair value method classified under Level 3, evaluated by applying relevant methods as the market approach with the use of an option pricing method or the earning approach using discounted future cash flows. Contingent purchase obligations and deferred payments related to acquisitions accounted under Level 3 are accounted for under the discounted cash flow method. |
Transfers and Servicing of Financial Assets | TRANSFERS OF FINANCIAL ASSETS ASC 860, “Transfers and Servicing”, establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company's arrangements are such that the underlying conditions are met for transfers of financial assets to qualify for accounting as a true sale. Transfers of financial assets typically consist of the factoring of receivables to Israeli and European financial institutions. The Company sold rights to receive payments from customers, and as of December 2023 and 2022 the remaining outstanding amounts were approximately $715,000 and $120,000, respectively. Financial expenses related to the sold rights were $17,474, $2,218 and $3,617 for the years ended December 31, 2023, 2022 and 2021, respectively. The Company's agreement pursuant to which the Company sells its trade receivables is structured such that the Company (i) transfers the proprietary rights in the receivable from the Company to the financial institution, (ii) legally isolates the receivable from the Company's other assets, and presumptively puts the receivable beyond the lawful reach of the Company and its creditors, even in bankruptcy or other receivership, (iii) confers on the financial institution the right to further pledge or exchange the receivable and (iv) eliminates the Company's effective control over the receivable, in the sense that the Company is not entitled and will not be obligated to repurchase the receivable other than in case of failure by the Company to fulfill its commercial obligation under the contract giving rise to the receivable. |
Basic And Diluted Net Earnings Per Share | BASIC AND DILUTED NET EARNINGS PER SHARE Basic earnings per share are computed based on the weighted average number of outstanding ordinary shares during each year. Diluted earnings per share are computed based on the weighted average number of outstanding ordinary shares during each year, plus dilutive potential ordinary shares outstanding during the year. Outstanding stock options are excluded from the calculation of the diluted earnings per share when their effect is anti-dilutive. The weighted average number of shares related to outstanding anti-dilutive stock options excluded from the calculations of diluted net earnings per share was not material in each of the three years ended December 31, 2023 . |
Segment Reporting | SEGMENT REPORTING The Company reports segment information based on a management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments (See Note 23). |
Recent Accounting Pronouncements | Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) AD. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS 1. The Company adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, on January 1, 2022. This ASU requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. The adoption of this standard did not have a material impact on the consolidated financial statements. 2. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires that an entity (acquirer) recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted, and should be adopted prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted this standard in the first quarter of 2023, and the adoption of this standard did not have a significant impact on the Company’s consolidated financial statements. 3. In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information for the relevant obligations, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements. As of December 31, 2023 and 2022 the amount of supplier finance obligation was not material. AE. RECENT ACCOUNTING PRONOUNCEMENTS 1. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. The ASU is effective for annual periods beginning after 15 December 2024. Early adoption is permitted. The ASU should be applied retrospectively to each period in which a balance sheet is presented. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. 2. In December 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, which requires entities to disclose for each reportable segment, on an interim and annual basis, the significant expense categories and amounts that are regularly provided to the chief operating decision-maker (CODM) and included in each reported measure of a segment’s profit or loss. Additionally, it requires a public entity to disclose the title and position of the individual or the name of the group or committee identified as the CODM. The ASU is effective for fiscal years beginning after 15 December 2023, and for interim periods beginning after 15 December 2024. Early adoption is permitted. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. |
Reclassifications | RECLASSIFICATIONS Certain financial statement data for prior years has been reclassified to conform to current year financial statement presentation. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Changes In Accumulated Other Comprehensive Income By Components | The following table displays the changes in accumulated other comprehensive income (loss), net of taxes, in the amount of $53,761, $26,299 and $113,365, for the years ended December 31, 2023, 2022 and 2021, respectively, by components: Unrealized gains (losses) on derivative instruments Unrealized gains (losses) with respect to pension and post-retirement benefit plans Foreign currency translation differences Total Balance as of January 1, 2021 $ (20,675) $ (147,096) $ (43,451) $ (211,222) Other comprehensive income (loss) 100,900 47,229 (5,795) 111,519 Amount reclassified from accumulated other comprehensive income (loss) (29,655) 686 — 1,846 Net current-period other comprehensive income (loss) 71,245 47,915 (5,795) 113,365 Balance as of January 1, 2022 $ 50,570 $ (99,181) $ (49,246) $ (97,857) Other comprehensive income (loss) before reclassifications (138,485) 127,673 (15,743) (26,555) Amount reclassified from accumulated other comprehensive income (loss) 51,481 2,656 (1,283) 52,854 Net current-period other comprehensive income (loss) (87,004) 130,329 (17,026) 26,299 Balance as of January 1, 2023 $ (36,434) $ 31,148 $ (66,272) $ (71,558) Other comprehensive income (loss) before reclassifications (112,641) 88,686 4,441 (19,514) Amount reclassified from accumulated other comprehensive income (loss) 97,444 (24,169) — 73,275 Net current-period other comprehensive income (loss) (15,197) 64,517 4,441 53,761 Balance as of December 31, 2023 $ (51,631) $ 95,665 $ (61,831) $ (17,797) |
Schedule Of Estimated Useful Life Of Assets | Depreciation is calculated by the straight-line method over the estimated useful life of the assets at the following annual rates: % Buildings and leasehold improvements (*) 2%-19% Instruments, machinery and equipment 7%-32% Office furniture and other 7%-13% Motor vehicles and airplanes 13%-18% (Mainly 15%) (*) |
Income Statement Impact of Cumulative Catch-Up Adjustments | The aggregate cumulative catch-up adjustment in EAC estimates on significant contracts had the following favorable/ (unfavorable) impact on the Company's operating results: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cost of revenues, net $ (51,000) $ (38,000) $ (8,300) Percentage of cost of revenues (*) (1.14) % (0.92) % (0.21) % Net income $ (44,700) $ (32,700) $ (7,200) Diluted earning per share $ (1.00) $ (0.73) $ (0.16) |
Schedule of Disaggregation of Revenue | Disaggregation of revenue: Revenue by products and services was as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2020 Revenue from sale of products $ 5,412,455 $ 5,105,921 $ 4,845,020 Service revenue 562,289 405,628 433,501 $ 5,974,744 $ 5,511,549 $ 5,278,521 Note 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.) S. REVENUE RECOGNITION (Cont.) Revenue by transfer type was as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2020 Over time $ 3,987,097 $ 3,478,768 $ 3,418,605 Point in time 1,987,647 2,032,781 1,859,916 $ 5,974,744 $ 5,511,549 $ 5,278,521 Revenue by customers was as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Israel Government Authorities (1,2) $ 1,000,541 $ 998,123 US Government (2) 1,018,811 1,041,843 Other Governments 3,457,021 2,933,560 Commercial sales and other 498,371 538,023 $ 5,974,744 $ 5,511,549 (1) Including U.S. Foreign Military Financing sales (2) Including indirect sales |
Schedule Of Warranty Liability | Changes in the Company’s provision for warranty, which is included mainly in other payables and accrued expenses in the balance sheet, are as follows: 2023 2022 Balance, at January 1 $ 93,150 $ 198,938 Warranties issued during the year 32,038 20,250 Reduction due to expired warranties or claims during the year (38,940) (122,022) Additions resulting from acquisitions 2,227 468 Reduction due to deconsolidation of a subsidiary — (4,484) Balance, at December 31 $ 88,475 $ 93,150 |
Schedule Of Assets And Liabilities Measured At Fair Value On Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair value measurement at December 31, 2023 using: Quoted Prices Significant Significant Description of Assets Foreign currency derivatives $ — $ 50,348 $ — Premises evacuation building input index receivable — — 55,747 Investments elected to be accounted for using the fair value method — — 55,098 Liabilities Contingent purchase obligation — — (40,460) Foreign currency derivatives — (81,254) — Cross-currency interest rate swap (35,159) — Total $ — $ (66,065) $ 70,385 Fair value measurement at December 31, 2022 using: Quoted Prices Significant Significant Description of Assets Foreign currency derivatives $ — $ 83,759 $ — Premises evacuation building input index receivable — — 57,447 Investments elected to be accounted for using the fair value method — — 54,469 Liabilities Contingent purchase obligation — — (49,591) Foreign currency derivatives — (136,043) — Cross-currency interest rate swap — (26,018) — Total $ — $ (78,302) $ 62,325 |
Trade And Unbilled Receivables
Trade And Unbilled Receivables And Contract Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of trade and unbilled receivables, net | December 31, 2023 December 31, 2022 Trade and unbilled receivables (1) $ 767,089 $ 983,291 Contract assets (2) 1,957,697 1,599,055 Less – allowance for credit loss (3) (8,024) (7,741) $ 2,716,762 $ 2,574,605 |
Schedule of changes in the allowance for credit losses | The changes in the allowance for credit losses were as follows: 2023 2022 Balance as of January 1, $ 9,162 $ 10,307 Current period provision for expected credit loss 674 301 Write-off charges against the allowance for expected credit losses (664) (1,446) Balance as of December 31, $ 9,172 $ 9,162 |
Other Receivables And Prepaid_2
Other Receivables And Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule Of Other Receivables And Prepaid Expenses | December 31, 2023 December 31, 2022 Cost to obtain $ 20,141 $ 26,742 Prepaid IT support services 2,624 9,554 Prepaid Insurance 5,938 5,589 Other prepaid expenses 96,505 90,240 Government institutions 87,864 87,203 Derivative instruments 36,070 47,187 Right to use land and buildings 2,214 2,328 Other 33,996 29,855 Total $ 285,352 $ 298,698 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory, Net [Abstract] | |
Schedule Of Inventories | The following table presents the components of inventories, net of customer advances as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Cost incurred on long-term contracts in progress (*) $ 911,055 $ 772,311 Raw materials 1,155,579 939,331 Advances to suppliers and subcontractors 266,205 251,584 2,332,839 1,963,226 Less: Provision for losses on long-term contracts (34,820) (16,900) $ 2,298,019 $ 1,946,326 (*) Costs incurred to fulfill a contract in advance of the contract being awarded are included in inventories as work-in-process if the Company determines that those costs relate directly to a contract or to an anticipated contract that can be specifically identified and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of revenues consistent with the transfer of control of the products and services to the customer. All other pre-contract costs, including start-up costs, are expensed as incurred. As of December 31, 2023 and 2022 pre-contract costs were included in inventory in the amount of , $216,036 and $186,738 , respectively. |
Investments In Affiliated Com_2
Investments In Affiliated Companies, Partnerships And Other Companies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Investments In Affiliated Companies | December 31, 2023 December 31, 2022 Companies accounted for under the equity method (1) $ 90,252 $ 105,135 Companies accounted for under the fair value method and other investments (2) 55,098 54,469 $ 145,350 $ 159,604 (1) See Note 6B. (2) See Note 6C. |
Schedule of investments in companies accounted for under the equity method | December 31, 2023 December 31, 2022 Company A (1) $ 79,285 $ 77,632 Company B (2) 3,496 18,140 Company C (3) — 1,546 Company D (4) — 558 Other 7,471 7,259 $ 90,252 $ 105,135 |
Schedule Of Equity In Net Earnings Of Affiliated Companies | Equity in net earnings of affiliated companies and partnerships is as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Company A $ 10,526 $ 9,622 $ 10,933 Company B 1,822 2,230 3,063 Company C 9 3 (256) Company D (558) (2,087) (1,546) Other 476 (2,726) 10,405 $ 12,275 $ 7,042 $ 22,599 |
Balance Sheet Information | The summarized aggregate financial information of companies accounted for under the equity method is as follows: Balance Sheet Information: December 31, 2023 December 31, 2022 Current assets $ 465,442 $ 422,370 Non-current assets 136,783 135,218 Total assets $ 602,225 $ 557,588 Current liabilities $ 166,359 $ 138,113 Non-current liabilities 237,399 346,777 Shareholders' equity 198,467 72,698 Total liabilities and equity $ 602,225 $ 557,588 |
Income Statement Information | Income Statement Information: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Revenues $ 328,138 $ 294,120 $ 317,763 Gross profit $ 111,698 $ 111,023 $ 129,374 Net income $ 10,391 $ 24,416 $ 15,715 |
Investments accounted for under the fair value method | Investments accounted for under the fair value method are evaluated by applying relevant methods as the market approach with the use of an option pricing method or the earning approach using discounted future cash flows, as follows: December 31, 2023 December 31, 2022 Company F (1) $ 17,155 $ 17,155 Company G (2) 19,410 17,165 Company H (3) 972 2,472 Company I (4) 13,561 13,677 Company J (5) 4,000 4,000 $ 55,098 $ 54,469 (1) Company F engages in the field of commercial cybersecurity. During 2021, the Company re-evaluated its holdings in Company F and increased its value in the amount of approximately $11,100. During 2022 the Company re-evaluated its investment in Company F and decreased its value in the amount of approximately $6,900 (see Note 26). (2) Company G engages in developing surgeon-centered visualization technologies. During 2021, following a third party investments, the Company re-evaluated the fair value of its holdings in Company G and recognized in other income a gain of approximately $4,800. During 2022, the Company invested in Company G $1,400 and following third parties investments, the Company re-evaluated the fair value of its holdings in Company G and recognized in other income a gain of approximately $3,200. During 2023, the Company invested in Company G $3,600 and following third parties investments, the Company re-evaluated the fair value of its holdings in Company G and recognized in other income a loss of approximately $1,300 (See Note 26). (3) Company H is an Israeli company held 35% by the Company. During 2021, the Company estimated the fair value of its holdings in Company H and recorded a gain of approximately $400 in its fair value. During 2022 the Company re-evaluated its investment in Company H and decreased its value in the amount of approximately $2,500. During 2023 the Company re-evaluated its investment in Company H and recognized in other income a loss of approximately $1,500(see Note 26). (4) Company I is an Israeli Company held 7% by the Company. During 2020, the Company invested approximately $5,000 in Company I. As a result, the Company re-evaluated its investment in Company I and increased its value in the amount of approximately $4,100. During 2021, due to shareholders investment, the Company estimated the fair value of its holdings in Company I and recorded a gain of approximately $1,000 in its fair value. During 2023, due to shareholders investment, the Company estimated the fair value of its holdings in Company I and recorded a loss of approximately $118 in its fair value (see Note 26). (5) Company J is an Israeli company of which the Company owns 25% of the outstanding share capital, which is engaged in the field of tactical ground robotic systems. During 2021, the Company invested in Company J $1,000. During the first quarter of 2022 the Company invested $2,000 in Company J. During the last quarter of 2022 the Company re-evaluated its investment in Company J and decreased its value in the amount of approximately $4,000. |
Long-Term Trade And Unbilled _2
Long-Term Trade And Unbilled Receivables And Contract Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Billed and Unbilled Contract Claims Subject to Uncertainty [Abstract] | |
Schedule Of Long-Term Trade And Unbilled Receivables | The following table presents the components of long-term trade and unbilled receivables and contract assets as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Trade and unbilled receivables $ 71,763 $ 130,901 Contract assets 294,104 244,574 Less - allowance for credit loss (1,148) (1,421) Total $ 364,719 $ 374,054 |
Long-Term Bank Deposits And O_2
Long-Term Bank Deposits And Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments and Receivables, Net [Abstract] | |
Schedule Of Long-Term Bank Deposits And Other Receivables | The following table presents the components of long-term bank deposits and other receivables as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Premises evacuation building input index receivable (1) $ 55,747 $ 57,447 Derivative financial instruments (2) 14,279 36,572 Prepaid expenses for land rights — 2,328 Long term balances of Non-qualified deferred compensation plan (3) 10,492 9,183 Deposits with banks and other long-term receivables 7,130 6,995 $ 87,648 $ 112,525 (1) During 2019, the Company sold the premises evacuation receivable to an Israeli bank and is still entitled to receive building inputs index adjustments on the base premises evacuation receivable, which is recorded as a financial asset measured at fair value (see Note 1D(4)). (2) Derivative financial instruments related to long term projects. (3) Includes long-term balances of a non-qualified deferred compensation plan structured under Section 409A of the U.S. Internal Revenue Code in the amount of $10,492 and $9,183 as of December 31, 2023 and 2022, respectively (see Note 17). |
Property, Plant And Equipment_2
Property, Plant And Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule Of Property, Plant And Equipment, Net | The following table presents the components of property, plant and equipment, net as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Cost (1) : Land, buildings and leasehold improvements (2) $ 940,704 $ 841,988 Instruments, machinery and equipment (3) 1,480,007 1,352,749 Office furniture and other 85,988 84,361 Motor vehicles and airplanes 50,131 51,287 Total cost 2,556,830 2,330,385 Accumulated depreciation (1,468,880) (1,381,178) Depreciated cost $ 1,087,950 $ 949,207 Israel (A) U.S. (B) Other Countries (C) Owned 2,066,738 894,735 1,039,287 Leased 7,035,265 861,043 635,479 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Consolidated Statement of Financial Position information Related to Leases | Supplemental Consolidated Statement of Financial Position information related to leases was as follows: December 31, 2023 December 31, 2022 Operating lease right of use assets $ 425,884 $ 405,446 Current portion of operating lease liabilities 67,390 69,322 Non-current portion of operating lease liabilities 363,100 344,585 Total operating lease liabilities $ 430,490 $ 413,907 Weighted average remaining lease term (years) 4.58 4.70 Weighted average discount rate 4.02% 3.71% |
Schedule of Maturities of Operating Lease Liabilities | Maturities of o perating lease liabilities for the next five years are as follows: December 31, 2023 2024 $ 82,085 2025 69,950 2026 55,942 2027 42,081 2028 36,220 2029 and thereafter $ 251,493 Total lease payments $ 537,771 Less imputed interest 107,281 Total $ 430,490 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Aggregate Goodwill And Other Intangible Assets | COMPOSITION OF IDENTIFIABLE INTANGIBLE ASSETS: December 31, 2023 December 31, 2022 Original cost: Technology $ 406,391 $ 402,592 Customer relations 390,511 392,584 Trademarks and other 207,375 224,110 1,004,277 1,019,286 Accumulated amortization: Technology 259,956 246,126 Customer relations 162,728 147,104 Trademarks and other 191,073 193,323 613,757 586,553 Amortized cost $ 390,520 $ 432,733 |
Estimated Aggregate Amortization Expense | The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: 2024 $ 35,847 2025 34,111 2026 34,413 2027 31,854 2028 and thereafter 254,295 $ 390,520 |
Schedule Of Goodwill | Changes in goodwill during 2023 were as follows: Aerospace C4I and Cyber ISTAR and EW Land ESA 2023 Balance, at January 1 $ 61,933 $ 316,655 $ 130,379 $ 592,871 $ 400,656 $ 1,502,494 PPA and PPA adjustment (1) — — — — 13,472 13,472 Net translation differences (2) 1,255 — 2,849 (21,005) — (16,901) Balance, at December 31 $ 63,188 $ 316,655 $ 133,228 $ 571,866 $ 414,128 $ 1,499,065 (1) PPA adjustment related to preliminary PPA of a subsidiary acquired in 2022, and PPA related to acquisition during 2023. See Note 1D(1). (2) Foreign currency translation differences resulting from goodwill allocated to reporting units, whose functional currency has been determined to be other than the U.S. dollar. |
Short-Term Bank Credit And Lo_2
Short-Term Bank Credit And Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Debt [Abstract] | |
Schedule Of Short-Term Bank Credit And Loans | Interest % December 31, 2023 December 31, 2022 Loans SOFR + 1.2% - 1.5% $ 162,034 $ 21,772 Commercial securities (1) SOFR + 1.0% 313,620 — Bank credit SOFR + 1.2% - 1.5% 100,940 93,304 $ 576,594 $ 115,076 As of December 31, 2023 the SOFR rate of short-term loans was 5.38% . (1) During August and September 2023, the Company issued commercial paper in Israel denominated in U.S. Dollar in an amount of approximately $315 million par value. The commercial paper bearing an annual interest of the three-months SOFR interest rate and an additional 1%. The commercial paper is for a term of 90 days, which may be extended by additional periods of 90 days each, up to a maximum period of five years, and is also subject to early repayment at the request of an investor with a seven business days notice, or at the Company's discretion, with a twenty-one days prior notice. The commercial paper is not listed on any stock exchange. |
Other Payables And Accrued Ex_2
Other Payables And Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities [Abstract] | |
Schedule Of Other Payables And Accrued Expenses | December 31, 2023 December 31, 2022 Payroll and related expenses $ 329,249 $ 336,830 Provision for vacation pay (1) 83,393 80,529 Provision for income tax, net of advances 28,387 30,210 Other income tax liabilities 40,006 32,048 Value added tax (“VAT”) payable 29,599 19,212 Provision for royalties 66,540 62,152 Provision for warranty and cost 92,138 95,708 Derivative instruments 69,036 107,581 Contingent purchase obligations 3,033 3,126 Provision for losses on long-term contracts 60,630 64,062 Provision for vendors on accrued expenses 133,376 95,058 Other (2) 258,960 244,841 $ 1,194,347 $ 1,171,357 (1) Long-term provision for vacation pay - see Note 20. (2) Includes provisions for estimated future costs in respect of (1) unbilled services of certain third parties, (2) probable loss from claims (legal or asserted) in the ordinary course of business and (3) damages caused by the items sold and claims as to the specific products ordered. |
Contract Liabilities (Custome_2
Contract Liabilities (Customer Advances) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | |
Schedule Of Customer Advances | December 31, 2023 December 31, 2022 Contract liabilities $ 2,010,422 $ 1,994,236 Less: Contract liabilities presented under long-term liabilities 354,319 217,075 $ 1,656,103 $ 1,777,161 |
Long-Term Loans, Net Of Curre_2
Long-Term Loans, Net Of Current Maturities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans Payable, Noncurrent [Abstract] | |
Summary Of Long-Term Loans, Net Of Current Maturities | Currency Interest % Years of maturity December 31, 2023 December 31, 2022 Long-term loans USD L + 1.35% - 1.75% 2024-2026 $ 1,504 $ 213,559 EURO 2.02% - 2.50% 2024-2028 51,333 60,190 Other — 1,954 52,837 275,703 Less: current maturities 11,610 11,162 $ 41,227 $ 264,541 |
Summary Of Maturities Of Long-Term Loans | The maturities of these loans for periods after December 31, 2023, are as follows: 2024 - current maturities 11,610 2025 11,844 2026 11,959 2027 and thereafter 17,424 $ 52,837 Future principle payments for Series B, C and D Notes, including the effect of cross-currency interest rate swap transactions, are as follows: Future principal payments for Series B, C and D Notes: 2024 Current maturities $ 69,917 2025 69,917 2026 69,917 2027 69,917 2028 and thereafter 165,974 $ 445,642 |
Series B,C And D Notes, Net O_2
Series B,C And D Notes, Net Of Current Maturities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule Of Series A Notes, Net Of Current Maturities | December 31, 2023 December 31, 2022 Series B, C and D Notes $ 408,199 $ 483,185 Less – Current maturities (63,676) (65,393) Premium (discount) on Series B, C and D Notes, net (1,676) (2,255) $ 342,847 $ 415,537 |
Schedule of Maturities of Notes | The maturities of these loans for periods after December 31, 2023, are as follows: 2024 - current maturities 11,610 2025 11,844 2026 11,959 2027 and thereafter 17,424 $ 52,837 Future principle payments for Series B, C and D Notes, including the effect of cross-currency interest rate swap transactions, are as follows: Future principal payments for Series B, C and D Notes: 2024 Current maturities $ 69,917 2025 69,917 2026 69,917 2027 69,917 2028 and thereafter 165,974 $ 445,642 |
Benefit Plans And Obligations_2
Benefit Plans And Obligations For Termination Indemnity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Plans' Funded Status And Amounts Recognized In The Consolidated Financial Statements | The following table sets forth the Plans’ funded status and amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Changes in benefit obligation: Benefit obligation at beginning of year $ 646,023 $ 918,209 Benefit obligation related to acquired companies — (23,851) Service cost 5,578 7,598 Interest cost 29,429 16,800 Exchange rate differences (8,516) (47,181) Actuarial gain (62,183) (191,292) Benefits paid (35,705) (34,260) Effect of settlement commitment $ (7,840) $ — Benefit obligation at end of year $ 566,786 $ 646,023 Changes in the Plans’ assets: Fair value of Plans’ assets at beginning of year $ 280,225 $ 348,804 Actual return on Plans’ assets (net of expenses) 38,316 (55,441) Employer contribution 947 1,057 Benefits paid (21,654) (14,195) Effect of settlement commitment (7,826) — Fair value of Plans’ assets at end of year $ 290,008 $ 280,225 Accrued benefit cost, end of year: Funded (unfunded) status $ (276,738) $ (365,798) Unrecognized net actuarial loss (84,210) (20,910) $ (360,948) $ (386,708) Amount recognized in the statement of financial position: Accrued benefit liability, current $ (28,279) $ (39,478) Accrued benefit liability, non-current (248,459) (326,320) Accumulated other comprehensive income, pre-tax (84,210) (20,910) $ (360,948) $ (386,708) |
Components Of Net Periodic Pension Cost | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Components of the Plans’ net periodic pension cost: Service cost $ 5,578 $ 7,598 $ 14,926 Interest cost 29,429 16,800 15,741 Expected return on Plans’ assets (17,825) (22,678) (20,892) Amortization of prior service cost (1,246) — (3) Amortization of net actuarial loss — 18,596 16,158 Recognition of net actuarial gain $ (5,098) $ — $ — Total net periodic benefit cost $ 10,838 $ 20,316 $ 25,930 Additional information Accumulated benefit obligation $ 561,350 $ 643,617 $ 912,944 |
Weighted Average Assumptions | December 31, 2023 December 31, 2022 Weighted average assumptions: Discount rate as of December 31 4.9 % 5.2 % Expected long-term rate of return on Plans’ assets 7.0 % 6.8 % Rate of compensation increase 1.5 % 1.8 % |
Asset Allocation By Category | Asset allocation by category as of December 31: 2023 2022 Asset Category: Equity Securities 53.1 % 65.4 % Debt Securities 44.0 % 32.7 % Other 2.9 % 1.9 % Total 100.0 % 100.0 % |
Target Asset Allocation For The Plan | The investment policy of ESA is directed toward a broad range of securities. The diversified portfolio seeks to maximize investment return while minimizing the risk levels associated with investing. The investment policy is structured to consider the Plans' obligations and the expected timing of benefit payments. The target asset allocation for the Plans' years presented is as follows: 2023 2022 Asset Category: Equity Securities 53.0 % 67.0 % Debt Securities 47.0 % 33.0 % Total 100.0 % 100.0 % |
Fair Value Of The Asset Values By Category | The fair value of the asset values by category at December 31, 2023, was as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset Category Cash $ 4,262 $ 4,262 — — Cash Equivalents: Money Market Funds (a) 4,193 4,193 — — Fixed Income Securities: Mutual Funds (b) 60,309 60,309 — — U.S treasuries 19,856 14,138 5,718 — corporate bonds 47,259 — 47,259 — Equity Securities: International Companies (c) 8,274 8,274 — — Mutual Funds (d) 145,855 145,855 — — Total $ 290,008 $ 237,031 $ 52,977 $ — (a) This category includes highly liquid daily traded cash-like vehicles. (b) This category invests in highly liquid mutual funds representing a diverse offering of debt issuance. (c) This category represents common stocks of companies domiciled outside of the U.S.; they can be represented by ordinary shares or ADRs. (d) This category represents highly liquid diverse equity mutual funds of varying asset classes and styles. |
Effect Of A 1% Change In The Health Care Cost Trend Rate | The effect of a 1% change in the health care cost trend rate at December 31, 2023 was as follows: 1% increase 1% decrease Net periodic benefit cost $ 14 $ (13) Benefit obligation $ 98 $ (88) |
Retiree Medical Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Plans' Funded Status And Amounts Recognized In The Consolidated Financial Statements | The following table sets forth the retiree medical plans’ funded status and amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Change in Benefit Obligation: Benefit obligation at beginning of period $ 867 $ 1,597 Service cost 86 149 Interest cost 43 38 Actuarial (gain) loss 271 (880) Employee contribution 9 11 Benefits paid (45) (48) Benefit obligation at end of period $ 1,231 $ 867 Change in Plan Assets: Employer contribution $ 36 $ 37 Employee contribution 9 11 Benefits paid (45) (48) Fair value of Plan assets at end of period $ — $ — Year Ended December 31, 2023 Year Ended December 31, 2022 Accrued benefit cost, end of period: Funded (unfunded) status $ (1,231) $ (867) Unrecognized net actuarial gain (1,616) (2,073) Accrued benefit cost, end of period $ (2,847) $ (2,940) Amounts recognized in the statement of financial position: Accrued benefit liability, current $ (71) $ (137) Accrued benefit liability, non-current (1,159) (730) Accumulated other comprehensive gain, pretax (1,617) (2,073) Net amount recognized $ (2,847) $ (2,940) Components of net periodic pension cost (for period): Year Ended December 31, 2023 Year Ended December 31, 2022 Service cost $ 86 $ 149 Interest cost 43 38 Amortization of net actuarial gain (186) (111) Total net periodic benefit cost $ (57) $ 76 Note 17 - BENEFIT PLANS AND OBLIGATIONS FOR TERMINATION INDEMNITY (Cont.) 2. Retiree Medical Plan (Cont.) Assumptions as of end of period: Year Ended December 31, 2023 Year Ended December 31, 2022 Discount rate 4.90 % 5.10 % Health care cost trend rate assumed for next year 6.00 % 6.50 % Ultimate health care cost trend rate 4.00 % 4.10 % |
Taxes On Income (Tables)
Taxes On Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Schedule Of Income Before Taxes On Income | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Income before taxes on income: Domestic $ 250,831 $ 268,446 $ 310,134 Foreign (24,337) 24,112 73,317 $ 226,494 $ 292,558 $ 383,451 |
Schedule Of Taxes On Income | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Current taxes: Domestic $ 41,553 $ 40,357 $ 36,888 Foreign 4,045 6,593 9,635 45,598 46,950 46,523 Adjustment for previous years: Domestic (*) (19,404) (10,681) 82,407 Foreign (330) (124) 16 (19,734) (10,805) 82,423 Deferred income taxes: Domestic (5,434) (6,607) 342 Foreign 2,483 (5,407) 2,099 (2,951) (12,014) 2,441 Total taxes on income $ 22,913 $ 24,131 $ 131,387 Total: Domestic $ 16,715 $ 23,069 $ 119,637 Foreign 6,198 1,062 11,750 Total taxes on income $ 22,913 $ 24,131 $ 131,387 -- |
Schedule Of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 Balance at the beginning of the year $ 86,176 $ 82,380 Additions (reductions) related to interest and currency translation 1,810 (4,758) Additions based on tax positions related to prior period 28 552 Reductions related to tax positions taken during a prior period (11,059) (5,624) Reductions related to settlement of tax matters (11,258) (5,874) Additions based on tax positions taken during the current period 16,511 19,844 Reductions related to a lapse of applicable statute of limitation (1,150) (344) Balance at the end of the year $ 81,058 $ 86,176 |
Schedule Of Deferred Income Taxes | Significant components of net deferred tax assets and liabilities are based on separate tax jurisdictions as follows: December 31, 2023 December 31, 2022 Deferred tax assets: Reserves and allowances $ 61,945 $ 80,746 Inventory allowances 18,007 19,860 Property, plant and equipment 2,751 4,152 Operating lease right of use assets 19,913 44,341 Other assets 116,524 93,252 Net operating loss carry-forwards 94,776 87,490 313,916 329,841 Valuation allowance (165,199) (164,906) 148,717 164,935 Deferred tax liabilities: Intangible assets (74,892) (77,661) Property, plant and equipment (35,956) (28,767) Operating lease liabilities (19,479) (43,596) Reserves and allowances (9,155) (13,723) (139,482) (163,747) Net deferred tax assets $ 9,235 $ 1,188 |
Schedule Of Effective Income Tax Rate Reconciliation | Reconciliation of the actual tax expense as reported in the statements of operations to the amount computed by applying the Israeli statutory tax rate is as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Income before taxes as reported in the consolidated statements of income $ 226,494 $ 292,558 $ 383,451 Statutory tax rate 23 % 23 % 23 % Theoretical tax expense $ 52,094 $ 67,288 $ 88,194 Tax benefit arising from reduced rate as "Preferred Enterprise” and other tax benefits (*) (27,741) (26,281) (36,043) Tax adjustment in respect of different tax rates for foreign subsidiaries (3,508) (17,946) 4,813 Changes in carry-forward losses and valuation allowances 12,714 27,905 (7,243) Taxes resulting from non-deductible expenses 2,299 795 5,272 Difference in basis of measurement for financial reporting and tax return purposes 8,339 (15,060) (5,851) Taxes in respect of prior years (see Note 18D above) (19,734) (10,805) 82,423 Other differences, net (1,550) (1,765) (178) Actual tax expenses $ 22,913 $ 24,131 $ 131,387 Effective tax rate 10.12 % 8.25 % 34.26 % (*) Net earnings per share – amounts of the benefit resulting from the Approved, Privileged and Preferred Enterprises: Basic and diluted $ 0.63 $ 0.59 $ 0.82 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | For asset derivatives and liability derivatives, the fair values of the Company’s outstanding derivative instruments as of December 31, 2023 and December 31, 2022 are summarized below: Asset Derivatives as of December 31, 2023 (*) Asset Derivatives as of December 31, 2022 (*) Liability Derivatives as of December 31, 2023 (**) Liability Derivatives as of December 31, 2022 (**) Derivatives designated as hedging instruments Foreign exchange contracts 50,348 75,397 77,819 130,604 Cross-currency interest rate swaps — — 35,159 26,018 $ 50,348 $ 75,397 $ 112,978 $ 156,622 Derivatives not designated as hedging instruments Foreign exchange contracts — 8,362 3,435 5,439 $ 50,348 $ 83,759 $ 116,413 $ 162,061 (*) Presented as part of other receivables and long-term other receivables. (**) Presented as part of other payables and long-term other payables. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The effect of derivative instruments on cash flow hedging and the relationship between income and other comprehensive income for the years ended December 31, 2023 and 2022, are summarized below: Gain (Loss) Recognized in Other Comprehensive Income, net as of December 31, 2023 Gain (Loss) Recognized in Other Comprehensive Income, net as of December 31, 2022 Gain (Loss) on of Derivative Reclassified from Accumulated Other Comprehensive Income (*) as of December 31, 2023 Gain (Loss) on of Derivative Reclassified from Accumulated Other Comprehensive Income (*) as of December 31, 2022 Foreign exchange contracts $ (119,781) $ (152,143) $ (103,621) $ (57,201) (*) Presented as part of revenues/cost of revenue and equity in net earnings of affiliated companies and partnerships. |
Schedule of Amounts Excluded from Derivatives Effectiveness Testing | Amount Excluded from Effectiveness Testing Recognized in Income (*) : as of December 31, 2023 as of December 31, 2022 Foreign exchange contracts $ 13,791 $ 9,413 Derivatives not designated as hedging instruments: Foreign exchange contracts and other derivatives instruments $ (3,906) $ (926) (*) Presented as part of revenues/cost of revenue and equity in net earnings of affiliated companies and partnerships. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts of outstanding foreign exchange forward contracts at December 31, 2023 is summarized below: Buy December 31, 2023 Buy December 31, 2022 Sell December 31, 2023 Sell December 31, 2022 Euro $ 407,849 $ 498,879 $ 1,400,118 $ 1,032,654 GBP 52,267 1,326 81,061 138,077 NIS 1,782,959 1,359,105 — 286,192 Other 6,204 13,168 285,514 433,585 $ 2,249,279 $ 1,872,478 $ 1,766,693 $ 1,890,508 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | The following table presents the components of other long-term liabilities as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Provision for vacation pay $ 42,073 $ 42,188 Contingent purchase obligation 37,421 49,282 Accrued expenses on evacuation 11,028 20,482 Provision for losses on long-term contracts — 3,090 Derivative financial instruments 47,376 54,480 Accounts payables 123,787 41,272 Compensated absences 11,341 13,056 Other 25,270 24,046 $ 298,296 $ 247,896 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stock Options Activity | The following is a summary of Elbit Systems' options activity under the Equity Incentive Plans: Number of Options 2023 Weighted average exercise price 2023 Number of Options 2022 Weighted average exercise price 2022 Outstanding - beginning of the year 1,728,106 156.66 1,076,750 131.37 Granted 76,100 182.06 1,028,100 185.30 Exercised (312,085) 129.04 (241,844) 128.76 Forfeited (39,300) 180.54 (134,900) 223.12 Outstanding - end of the year 1,452,821 163.30 1,728,106 156.66 |
Options Outstanding Separated into Ranges of Exercise Prices | The options outstanding as of December 31, 2023, have been separated into ranges of exercise prices, as follows: Options outstanding: Exercise price Number of Options Weighted average Weighted average 121.42 - 216.32 1,452,821 2.64 $ 163.30 |
Compensation Expenses Before Tax | Compensation expenses related to the Equity Incentive Plans amounted to $12,141, $10,463 and $5,312 for the three years ended December 31, 2023, 2022 and 2021 respectively, which were recognized, as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cost of revenues $ 10,319 $ 8,893 $ 4,515 General and administration expenses 1,822 1,570 797 $ 12,141 $ 10,463 $ 5,312 The Company recorded an amount of approximately $10,589, $62,090 and $18,431, during the three years ended December 31, 2023, 2022 and 2021, respectively, as compensation costs related to the phantom bonus units granted under the 2018 Phantom Plan, as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cost of revenues $ 6,164 $ 34,778 $ 10,522 General and administration expenses 2,635 15,537 4,584 Marketing and selling 1,790 11,775 3,325 $ 10,589 $ 62,090 $ 18,431 |
Computation Of Basic And Diluted Net Earnings Per Share | Computation of basic and diluted net earnings per share: Net income to shareholders of ordinary shares Year Ended December 31, 2023 Weighted Per Share amount Year Ended December 31, 2023 Net income Weighted average number of shares (*) Year Ended December 31, 2022 Per Share amount Year Ended December 31, 2022 Basic net earnings $ 215,131 44,375 $ 4.85 $ 275,448 44,322 $ 6.21 Effect of dilutive securities: Employee stock options — 217 (0.03) — 259 (0.03) Diluted net earnings $ 215,131 44,592 $ 4.82 $ 275,448 44,581 $ 6.18 |
Major Customer And Geographic_2
Major Customer And Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Major Customer And Geographic Information [Abstract] | |
Schedule of Revenues and Operating Profit (Loss) per Segment | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Revenues: Aerospace External customers $ 1,613,137 $ 1,471,093 $ 1,281,407 Intersegment revenue 260,144 262,089 301,905 Total $ 1,873,281 $ 1,733,182 $ 1,583,312 C4I and Cyber External customers $ 668,414 $ 631,297 $ 590,095 Intersegment revenue 52,702 47,098 34,601 Total $ 721,116 $ 678,395 $ 624,696 ISTAR and EW External customers $ 996,927 $ 882,200 $ 888,206 Intersegment revenue 182,500 163,449 138,089 Total $ 1,179,427 $ 1,045,649 $ 1,026,295 Land External customers $ 1,241,023 $ 1,075,846 $ 1,028,121 Intersegment revenue 65,174 92,737 88,801 Total $ 1,306,197 $ 1,168,583 $ 1,116,922 ESA External customers $ 1,455,243 $ 1,451,113 $ 1,490,692 Intersegment revenue 9,695 5,559 2,115 Total $ 1,464,938 $ 1,456,672 $ 1,492,807 Revenues Total revenues (external customers and intersegment) for reportable segments $ 6,544,959 $ 6,082,481 $ 5,844,032 Less -Intersegment revenue (570,215) (570,932) (565,511) Total consolidated revenues $ 5,974,744 $ 5,511,549 $ 5,278,521 |
Schedule Of Revenues By Geographic Areas | Note 23 - SEGMENT DISCLOSURE, MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION A. SEGMENT DISCLOSURE (Cont.): The following tables present information about the Company’s reported operating income for the periods indicated: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Operating income: Aerospace $ 125,455 $ 106,760 $ 129,213 C4I and Cyber 50,653 48,964 44,350 ISTAR and EW 134,882 49,120 66,001 Land 80,610 28,554 35,567 ESA (4,687) 74,978 124,259 Segment operating income 386,913 308,376 399,390 Unallocated corporate income (expense) (17,805) (9,810) 4,458 Other operating income — 68,918 14,660 Operating income 369,108 367,484 418,508 Financial expenses, net (137,827) (51,364) (40,393) Other income (expenses), net (see note 26) (4,787) (23,562) 5,336 Income before income taxes $ 226,494 $ 292,558 $ 383,451 Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Depreciation and amortization by segment: Aerospace $ 36,284 $ 34,353 $ 35,084 C4I and Cyber 12,551 13,651 16,054 ISTAR and EW 29,001 24,992 23,452 Land 34,747 38,560 41,901 ESA 50,526 46,540 34,962 Unallocated corporate expenses 1,690 3,194 1,638 Total depreciation and amortization $ 164,799 $ 161,290 $ 153,091 Note 23 - SEGMENT DISCLOSURE, MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION A. SEGMENT DISCLOSURE (Cont.): REVENUES ARE ATTRIBUTED TO GEOGRAPHIC AREAS BASED ON LOCATION OF THE END CUSTOMERS AS FOLLOWS: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 North America $ 1,417,742 $ 1,489,685 $ 1,608,582 Asia-Pacific 1,263,771 1,405,473 1,443,505 Israel 1,167,228 1,071,945 1,094,662 Europe 1,776,412 1,243,550 884,504 Latin America 120,700 119,860 126,686 Other 228,891 181,036 120,582 $ 5,974,744 $ 5,511,549 $ 5,278,521 |
Schedule Of Revenues By Areas Of Operations | |
Schedule Of Major Customer Data | MAJOR CUSTOMER DATA AS A PERCENTAGE OF TOTAL REVENUES: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 IMOD 16% 17% 18% U.S. Government 17% 19% 21% |
Schedule Of Long Lived Assets By Geographic Areas | LONG-LIVED ASSETS BY GEOGRAPHIC AREAS: The Company's long-lived assets for the year ended December 31, 2023 and 2022, commencing current year presentation, includes property plant and equipment and operating lease right of use assets, as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Israel $ 1,098,074 $ 968,450 U.S. 307,239 280,687 Other 108,521 105,516 $ 1,513,834 $ 1,354,653 |
Research And Development, Net (
Research And Development, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development Expense [Abstract] | |
Schedule Of Research And Development Expenses, Net | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Total expenses $ 502,654 $ 501,777 $ 447,852 Less - grants and participations (78,234) (66,127) (52,765) $ 424,420 $ 435,650 $ 395,087 |
Financial Expenses, Net (Tables
Financial Expenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest and Debt Expense [Abstract] | |
Schedule Of Financial Expenses, Net | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Expenses: Interest on long-term bank debt $ (8,677) $ (12,392) $ (10,821) Interest on Series B, C and D Notes, net (9,537) (11,683) (5,758) Interest on short-term bank credit and loans (58,253) (14,857) (7,683) Guarantees (22,339) (17,356) (13,908) Gain (loss) from revaluation of lease liabilities and exchange rate differences, net (11,962) 10,542 (10,178) Other (33,136) (8,670) 6,080 (143,904) (54,416) (42,268) Income: Interest on cash, cash equivalents and bank deposits 2,359 383 469 Other 3,718 2,669 1,406 6,077 3,052 1,875 $ (137,827) $ (51,364) $ (40,393) |
Other Income (Expenses), Net (T
Other Income (Expenses), Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule Of Other Income, Net | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Pension non-service cost $ (6,596) $ (4,555) $ (11,715) Gain (loss) on sale of investments (1) — (10,619) — Revaluation of investments (2) (2,963) (10,175) 17,282 Insurance compensation 5,200 — — Other (428) 1,787 (231) $ (4,787) $ (23,562) $ 5,336 (1) During 2022 the company recognized a gain (loss) resulting from the sales of holdings in affiliated companies in Israel to third parties (see Note 6B). (2) During 2023, 2022 and 2021, the Company recognized gains and losses as a result of revaluation of its investments accounted for under the fair value method (see Note 6C). |
Related Parties' Transactions_2
Related Parties' Transactions And Balances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule Of Related Parties Transactions And Balances | Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Income - Sales to related-party companies (*) $ 147,807 $ 155,728 $ 169,834 Participation in expenses $ — $ 85 $ 394 Cost and expenses - Supplies from related parties (**) $ 15,877 $ 2,143 $ 6,240 Balances: December 31, 2023 December 31, 2022 Trade receivables and other receivables (*) $ 102,075 $ 86,535 Trade payables and advances (**) $ 35,363 $ 33,167 The sales to the Company’s related parties in respect of U.S. government defense contracts are made on the basis of cost. (*) A significant portion of the sales and balances include sales of helmet mounted cueing systems purchased from the Company by a 50%-owned affiliate of ESA. (**) Includes mainly electro-optics components and sensors, purchased by the Company from a 50%-owned Israeli company, and in 2021 , includes also electro-optics products purchased by the Company from another 50%-owned Israeli affiliate. |
General - Narrative (Details)
General - Narrative (Details) ₪ in Millions | 12 Months Ended | |||||||||
Apr. 01, 2023 USD ($) | Nov. 01, 2022 USD ($) | Apr. 01, 2022 USD ($) | Nov. 25, 2018 USD ($) | Nov. 25, 2018 ILS (₪) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 | Nov. 25, 2018 ILS (₪) | |
Business Acquisition [Line Items] | ||||||||||
Number of reportable segments | segment | 5 | |||||||||
Purchase price | $ 0 | $ 8,191,000 | $ 0 | |||||||
Ashot Ashkelon Industries Limited | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership Interest Sold | 0.8498 | |||||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 81,487,000 | |||||||||
Gain (Loss) on Disposition of Business | $ 7,053,000 | |||||||||
Elbit Systems Limited | Federmann Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage | 44.05% | |||||||||
Pacific Electronics Enterprises Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest acquired | 100% | |||||||||
Purchase price | $ 10,000 | |||||||||
Opgal Industries Ltd | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest acquired | 100% | |||||||||
Purchase price | $ 8,000 | |||||||||
Opgal Industries Ltd | Opgal Industries Ltd | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage | 50% | |||||||||
Swiss affiliated company | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 24,000 | |||||||||
Purchase price contingent consideration | $ 21,000 | $ 22,100,000 | ||||||||
Swiss affiliated company | Swiss company | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage | 100% | |||||||||
IMI Systems Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest acquired | 100% | 100% | ||||||||
Purchase price | $ 520,000,000 | ₪ 1,900 | ||||||||
Purchase price contingent consideration | 380,000,000 | ₪ 1,400 | ||||||||
Deferred payments | 24,000,000 | $ 15,300,000 | ₪ 90 | |||||||
Premises evacuation grants | $ 365,000,000 | ₪ 1,365 | ||||||||
Evacuation receivable sold | $ 345,000 | |||||||||
Evacuation receivable fair value | $ 55,700,000 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) $ / shares in Units, ₪ in Billions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2023 ILS (₪) | Jul. 31, 2021 USD ($) | Jul. 31, 2021 ILS (₪) | |
Significant Accounting Policies [Line Items] | ||||||
Proceeds from Sale of Lease Receivables | $ 178,000 | |||||
Sales-type Lease, Lease Receivable | 0 | |||||
Adjustments on revenue recognized from performance obligations | (23,300,000) | $ (32,800,000) | $ (19,600,000) | |||
Revenue | 5,974,744,000 | 5,511,549,000 | 5,278,521,000 | |||
Backlog amount | $ 17,800,000,000 | |||||
Backlog percentage | 60% | 60% | ||||
Issuance amount of Series A Note | $ 408,199,000 | 483,185,000 | $ 579,000,000 | ₪ 1.9 | ||
Rights sold to receive payments from the Israeli Ministry of Defense | 715,000,000 | 120,000,000 | ||||
Financial expenses related to sold rights | 17,474,000 | 2,218,000 | 3,617,000 | |||
Impairment on affiliated company | 0 | |||||
Net book value of capitalized ERP system development costs | 15,273,000 | 29,524,000 | ||||
Impairment of long-lived assets | 0 | |||||
Severance expenses | 78,659,000 | 71,627,000 | 72,309,000 | |||
Cost of revenue sold, change in estimate | $ (51,000,000) | $ (38,000,000) | $ (8,300,000) | |||
Percentage of cost of revenue sold | (1.14%) | (0.92%) | (0.21%) | |||
Cost of revenue sold, increase (decrease) to net income | $ (44,700,000) | $ (32,700,000) | $ (7,200,000) | |||
Cost of revenue sold, increase (decrease) in earnings per share, diluted | $ / shares | $ (1) | $ (0.73) | $ (0.16) | |||
Number of options granted | shares | 76,100 | 1,028,100 | ||||
OPERATING LEASE RIGHT OF USE ASSETS | $ 425,884,000 | $ 405,446,000 | ||||
Operating lease liability | 430,490,000 | 413,907,000 | ||||
Proceeds from Sale of Property, Plant, and Equipment | 1,466,000 | 24,882,000 | $ 25,745,000 | |||
Service revenue | ||||||
Significant Accounting Policies [Line Items] | ||||||
Revenue | 562,289,000 | $ 405,628,000 | $ 433,501,000 | |||
Series B Notes | ||||||
Significant Accounting Policies [Line Items] | ||||||
Issuance amount of Series A Note | $ 463,000,000 | ₪ 1.5 | ₪ 1.5 | |||
Received interest payments semi-annually in NIS | 1.08% | 1.08% | ||||
Subsidiary D | ||||||
Significant Accounting Policies [Line Items] | ||||||
Voting rights | 51% | |||||
Subsidiary E | ||||||
Significant Accounting Policies [Line Items] | ||||||
Contractual rights percentage | 50% | |||||
Cross Currency Interest Rate Swaps | United States of America, Dollars | ||||||
Significant Accounting Policies [Line Items] | ||||||
Derivative, fixed interest rate (in percentage) | 1.92% | 1.92% | ||||
Software and Software Development Costs | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Amortization period of capitalized direct software development costs | 3 years | 3 years | ||||
Software and Software Development Costs | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Amortization period of capitalized direct software development costs | 12 years | 12 years |
Significant Accounting Polici_5
Significant Accounting Policies (Changes In Accumulated Other Comprehensive Income By Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ (71,558) | |||||
Net current-period other comprehensive income (loss) | [1] | (53,892) | $ (25,379) | $ (114,967) | ||
Ending balance | (17,797) | (71,558) | ||||
Unrealized gains (losses) on derivative instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (36,434) | 50,570 | (20,675) | |||
Other comprehensive income (loss) before reclassifications | (112,641) | (138,485) | 100,900 | |||
Amount reclassified from accumulated other comprehensive income (loss) | 97,444 | 51,481 | (29,655) | |||
Net current-period other comprehensive income (loss) | 15,197 | 87,004 | (71,245) | |||
Ending balance | $ 50,570 | (51,631) | (36,434) | 50,570 | ||
Unrealized gains (losses) with respect to pension and post-retirement benefit plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 31,148 | (99,181) | (147,096) | |||
Other comprehensive income (loss) before reclassifications | 88,686 | 127,673 | (47,229) | |||
Amount reclassified from accumulated other comprehensive income (loss) | 686 | (24,169) | 2,656 | |||
Net current-period other comprehensive income (loss) | (64,517) | (130,329) | (47,915) | |||
Ending balance | (99,181) | 95,665 | 31,148 | (99,181) | ||
Foreign currency translation differences | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (66,272) | (49,246) | (43,451) | |||
Other comprehensive income (loss) before reclassifications | 4,441 | [1] | (15,743) | (5,795) | ||
Amount reclassified from accumulated other comprehensive income (loss) | 0 | (1,283) | 0 | |||
Net current-period other comprehensive income (loss) | (4,441) | 17,026 | 5,795 | |||
Ending balance | (49,246) | (61,831) | (66,272) | (49,246) | ||
Accumulated other comprehensive income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (71,558) | (97,857) | (211,222) | |||
Other comprehensive income (loss) before reclassifications | (19,514) | (26,555) | 111,519 | |||
Amount reclassified from accumulated other comprehensive income (loss) | 73,275 | 52,854 | 1,846 | |||
Net current-period other comprehensive income (loss) | (53,761) | (26,299) | (113,365) | |||
Ending balance | $ (97,857) | $ (17,797) | $ (71,558) | $ (97,857) | ||
[1] Other comprehensive income (loss), net of tax expenses (tax benefit) in the amounts of $132, $1,419 and $(6,186) for the years 2023, 2022 and 2021, respectively. |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule Of Estimated Useful Life Of Assets) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | Buildings And Leasehold Improvements [Member] | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 2% |
Minimum | Instruments, Machinery And Equipment | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 7% |
Minimum | Office Furniture And Other | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 7% |
Minimum | Motor Vehicles [Member] | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 13% |
Maximum | Buildings And Leasehold Improvements [Member] | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 19% |
Maximum | Instruments, Machinery And Equipment | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 32% |
Maximum | Office Furniture And Other | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 13% |
Maximum | Motor Vehicles [Member] | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 18% |
Weighted Average | Motor Vehicles [Member] | |
Property, Plant and Equipment, Net [Line Items] | |
Percentage Of Depreciation Over Estimated Useful Life Of Assets | 15% |
Significant Accounting Polici_7
Significant Accounting Policies (Effect of Cumulative Catch-Up Adjustment) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Cost of revenue sold, change in estimate | $ (51,000) | $ (38,000) | $ (8,300) |
Percentage of cost of revenue sold | (1.14%) | (0.92%) | (0.21%) |
Cost of revenue sold, increase (decrease) to net income | $ (44,700) | $ (32,700) | $ (7,200) |
Cost of revenue sold, increase (decrease) in earnings per share, diluted | $ (1) | $ (0.73) | $ (0.16) |
Significant Accounting Polici_8
Significant Accounting Policies (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 5,974,744 | $ 5,511,549 | $ 5,278,521 |
Backlog percentage | 60% | ||
Backlog amount | $ 17,800,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Backlog timing satisfaction, period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Backlog timing satisfaction, period | 2 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Backlog timing satisfaction, period | 3 years | ||
Israel Government Authorities | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,000,541 | 998,123 | |
United States Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,018,811 | 1,041,843 | |
Other Governments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,457,021 | 2,933,560 | |
Commercial sales and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 498,371 | 538,023 | |
Over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,987,097 | 3,478,768 | 3,418,605 |
Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,987,647 | 2,032,781 | 1,859,916 |
Revenue from sale of products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,412,455 | 5,105,921 | 4,845,020 |
Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 562,289 | $ 405,628 | $ 433,501 |
Significant Accounting Polici_9
Significant Accounting Policies (Schedule Of Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, at January 1 | $ 93,150 | $ 198,938 |
Warranties issued during the year | 32,038 | 20,250 |
Reduction due to expired warranties or claims during the year | (38,940) | (122,022) |
Additions resulting from acquisitions | 0 | (4,484) |
Reduction due to deconsolidation of a subsidiary | 2,227 | 468 |
Balance, at December 31 | $ 88,475 | $ 93,150 |
Significant Accounting Polic_10
Significant Accounting Policies (Schedule Of Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 0 | $ 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Cross Currency Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Premises Evacuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Investment Elected To Be Accounted For Using The Fair Value Method | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Contingent purchase obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Cross-currency interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | ||
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | (66,065) | (78,302,000) |
Significant Observable Inputs (Level 2) | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 50,348 | 83,759,000 |
Liabilities | 81,254 | 136,043,000 |
Significant Observable Inputs (Level 2) | Cross Currency Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 26,018,000 | |
Significant Observable Inputs (Level 2) | Premises Evacuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Significant Observable Inputs (Level 2) | Investment Elected To Be Accounted For Using The Fair Value Method | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Significant Observable Inputs (Level 2) | Contingent purchase obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Significant Observable Inputs (Level 2) | Cross-currency interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 35,159 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 70,385 | 62,325,000 |
Significant Unobservable Inputs (Level 3) | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cross Currency Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Significant Unobservable Inputs (Level 3) | Premises Evacuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 55,747 | 57,447,000 |
Significant Unobservable Inputs (Level 3) | Investment Elected To Be Accounted For Using The Fair Value Method | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 55,098 | 54,469,000 |
Significant Unobservable Inputs (Level 3) | Contingent purchase obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 40,460 | $ 49,591,000 |
Significant Unobservable Inputs (Level 3) | Cross-currency interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 0 |
Trade And Unbilled Receivable_2
Trade And Unbilled Receivables And Contract Assets, Net - Schedule of trade and unbilled receivables, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade and unbilled receivables | $ 767,089 | $ 983,291 |
Contract assets | 1,957,697 | 1,599,055 |
Current period provision for expected credit loss | 8,024 | 7,741 |
Trade and unbilled receivables and contract assets, net | 2,716,762 | 2,574,605 |
Israeli Ministry Of Defense | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Short and long-term trade and unbilled receivables | 746,816 | 821,547 |
Affiliated companies | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade and unbilled receivables | $ 92,721 | $ 82,271 |
Trade And Unbilled Receivable_3
Trade And Unbilled Receivables And Contract Assets, Net - Schedule of changes in the allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, allowance for credit loss, beginning balance | $ 9,162 | $ 10,307 |
Current period provision for expected credit loss | 674 | 301 |
Write-off charges against the allowance for expected credit losses | (664) | (1,446) |
Accounts receivable, allowance for credit loss, ending balance | $ 9,172 | $ 9,162 |
Other Receivables And Prepaid_3
Other Receivables And Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets [Abstract] | ||
Cost to obtain | $ 20,141 | $ 26,742 |
Prepaid IT support services | 2,624 | 9,554 |
Prepaid Insurance | 5,938 | 5,589 |
Other prepaid expenses | 96,505 | 90,240 |
Government institutions | 87,864 | 87,203 |
Derivative instruments | 36,070 | 47,187 |
Right to use land and buildings | 2,214 | 2,328 |
Other | 33,996 | 29,855 |
Total | $ 285,352 | $ 298,698 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Capitalized Contract Cost [Line Items] | ||
Cost incurred on long-term contracts in progress | $ 911,055 | $ 772,311 |
Raw materials | 1,155,579 | 939,331 |
Advances to suppliers and subcontractors | 266,205 | 251,584 |
Inventory, gross | 2,332,839 | 1,963,226 |
Less: Provision for losses on long-term contracts | (34,820) | (16,900) |
Inventories, net | 2,298,019 | 1,946,326 |
Pre-contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Cost incurred on long-term contracts in progress | $ 216,036 | $ 186,738 |
Investments In Affiliated Com_3
Investments In Affiliated Companies, Partnerships And Other Companies (Investments In Affiliated Companies) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Investment in Company accounted for under the equity method | $ 90,252 | $ 105,135 |
Investment Owned, at Fair Value | 55,098 | 54,469 |
Investments in affiliated companies | $ 145,350 | $ 159,604 |
Investments In Affiliated Com_4
Investments In Affiliated Companies, Partnerships And Other Companies (Investments In Companies Accounted For Under The Equity Method) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Investment in Company accounted for under the equity method | $ 90,252 | $ 105,135 | ||
Purchase price | 10,380 | 12,430 | $ 385,011 | |
Subsidiary B | Wholly-Owned U.K Subsidiary | Corporate Joint Venture | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Joint Venture, Ownership Percentage | 50% | |||
Subsidiary B | Kellogg Brown & Root Limited | Corporate Joint Venture | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Joint Venture, Ownership Percentage | 50% | |||
Subsidiary A | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Investment in Company accounted for under the equity method | $ 79,285 | 77,632 | ||
Ownership percentage | 50% | |||
Proceeds from Dividends Received | $ 8,900 | 6,100 | ||
Subsidiary A | Rafael Advanced Defense Systems Ltd | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Ownership percentage | 50% | |||
Subsidiary B | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Investment in Company accounted for under the equity method | $ 3,496 | 18,140 | ||
Proceeds from Dividends Received | 13,100 | 4,100 | ||
Subsidiary C | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Investment in Company accounted for under the equity method | 0 | 1,546 | ||
Purchase price | 1 | |||
Loss on Sale of Investments | $ 500 | |||
Subsidiary C | Elbit Systems Limited | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 25% | |||
Subsidiary D | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Investment in Company accounted for under the equity method | $ 0 | 558 | ||
Subsidiary D | Elbit Systems Limited | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 33% | |||
Others | ||||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | ||||
Investment in Company accounted for under the equity method | $ 7,471 | $ 7,259 |
Investments In Affiliated Com_5
Investments In Affiliated Companies, Partnerships And Other Companies (Schedule Of Equity In Net Earnings Of Affiliated Companies) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | |||
Equity in net earnings of affiliated companies and partnerships | $ 12,275 | $ 7,042 | $ 22,599 |
Realized gain on disposal of equity method investment | 0 | (10,619) | 0 |
Subsidiary A | |||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | |||
Equity in net earnings of affiliated companies and partnerships | 10,526 | 9,622 | 10,933 |
Subsidiary B | |||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | |||
Equity in net earnings of affiliated companies and partnerships | 1,822 | 2,230 | 3,063 |
Subsidiary C | |||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | |||
Equity in net earnings of affiliated companies and partnerships | 9 | 3 | (256) |
Subsidiary D | |||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | |||
Equity in net earnings of affiliated companies and partnerships | (558) | (2,087) | (1,546) |
Others | |||
Investments In Affiliated Companies, Partnership And Other Companies [Line Items] | |||
Equity in net earnings of affiliated companies and partnerships | $ 476 | $ (2,726) | $ 10,405 |
Investments In Affiliated Com_6
Investments In Affiliated Companies, Partnerships And Other Companies (Balance Sheet Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 5,508,080 | $ 5,031,777 |
Total assets | 9,739,582 | 9,215,651 |
Current liabilities | 4,823,846 | 4,277,289 |
Non-current liabilities | 1,965,445 | 2,180,687 |
Shareholders' equity | 2,947,503 | 2,755,221 |
Total liabilities and equity | 9,739,582 | 9,215,651 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 465,442 | 422,370 |
Non-current assets | 136,783 | 135,218 |
Total assets | 602,225 | 557,588 |
Current liabilities | 166,359 | 138,113 |
Non-current liabilities | 237,399 | 346,777 |
Shareholders' equity | 198,467 | 72,698 |
Total liabilities and equity | $ 602,225 | $ 557,588 |
Investments In Affiliated Com_7
Investments In Affiliated Companies, Partnerships And Other Companies (Income Statement Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 5,974,744 | $ 5,511,549 | $ 5,278,521 |
Gross profit | 1,482,954 | 1,373,283 | 1,358,048 |
Net income | 215,856 | 275,469 | 274,663 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 328,138 | 294,120 | 317,763 |
Gross profit | 111,698 | 111,023 | 129,374 |
Net income | $ 10,391 | $ 24,416 | $ 15,715 |
Investments In Affiliated Com_8
Investments In Affiliated Companies, Partnerships And Other Companies Investment in affiliated companies, Partnership and Other Companies (Investment Under Fair Value Method) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Owned, at Fair Value | $ 54,469,000 | $ 55,098,000 | $ 54,469,000 | |||
Company F | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net gain related to revaluation | 6,900,000 | $ (11,100,000) | ||||
Investment Owned, at Fair Value | 17,155,000 | 17,155,000 | 17,155,000 | |||
Company G | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net gain related to revaluation | 1,300,000 | (3,200,000) | (4,800,000) | |||
Investment Owned At Fair Value, Additional Investment | 1,400,000 | 3,600,000 | 1,400,000 | |||
Investment Owned, at Fair Value | 17,165,000 | 19,410,000 | 17,165,000 | |||
Company H | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net gain related to revaluation | 1,500,000 | 2,500,000 | (400,000) | |||
Investment Owned, at Fair Value | 2,472,000 | $ 972,000 | 2,472,000 | |||
Company H | Company H | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 35% | |||||
Company I | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net gain related to revaluation | $ (118,000) | (1,000,000) | $ (4,100,000) | |||
Investment Owned, at Fair Value | 13,677,000 | $ 13,561,000 | 13,677,000 | $ 5,000,000 | ||
Company I | Company I | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 7% | |||||
Company J | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net gain related to revaluation | 4,000,000 | $ (2,000,000) | $ (1,000,000) | |||
Investment Owned, at Fair Value | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | |||
Company J | Company J | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 25% |
Long-Term Trade And Unbilled _3
Long-Term Trade And Unbilled Receivables And Contract Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Billed and Unbilled Contract Claims Subject to Uncertainty [Abstract] | ||
Trade and unbilled receivables | $ 71,763 | $ 130,901 |
Less - allowance for credit loss | 294,104 | 244,574 |
Accounts Receivable, Allowance for Credit Loss, Noncurrent | (1,148) | (1,421) |
Long-term trade and unbilled receivables and contract assets | $ 364,719 | $ 374,054 |
Long-Term Bank Deposits And O_3
Long-Term Bank Deposits And Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-Term Investments and Receivables, Net [Abstract] | ||
Premises evacuation building input index receivable | $ 55,747 | $ 57,447 |
Derivative financial instruments | 14,279 | 36,572 |
Prepaid expenses for land rights | 0 | 2,328 |
Long-term balances of non-qualified deferred compensation plan | 10,492 | 9,183 |
Deposits with banks and other long-term receivables | 7,130 | 6,995 |
Long-term bank deposits and other receivables | $ 87,648 | $ 112,525 |
Property, Plant And Equipment_3
Property, Plant And Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation expenses | $ 120,895 | $ 112,063 | $ 106,068 |
Grants received | 39,250 | 39,121 | |
Equipment produced for self use | $ 127,301 | $ 119,892 |
Property, Plant And Equipment_4
Property, Plant And Equipment, Net (Schedule Of Property, Plant And Equipment, Net) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) ft² | Dec. 31, 2022 USD ($) | |
Property, Plant and Equipment, Net [Line Items] | ||
Property, plant and equipment, gross | $ 2,556,830 | $ 2,330,385 |
Accumulated depreciation | (1,468,880) | (1,381,178) |
Depreciated cost | 1,087,950 | 949,207 |
Land, Buildings And Leasehold Improvements | ||
Property, Plant and Equipment, Net [Line Items] | ||
Property, plant and equipment, gross | 940,704 | 841,988 |
Instruments, Machinery And Equipment | ||
Property, Plant and Equipment, Net [Line Items] | ||
Property, plant and equipment, gross | 1,480,007 | 1,352,749 |
Office Furniture And Other | ||
Property, Plant and Equipment, Net [Line Items] | ||
Property, plant and equipment, gross | 85,988 | 84,361 |
Motor Vehicles And Airplanes | ||
Property, Plant and Equipment, Net [Line Items] | ||
Property, plant and equipment, gross | $ 50,131 | $ 51,287 |
Israel | ||
Property, Plant and Equipment, Net [Line Items] | ||
Real estate owned, square feet | ft² | 2,066,738 | |
Real estate leased, square feet | ft² | 7,035,265 | |
U.S. | ||
Property, Plant and Equipment, Net [Line Items] | ||
Real estate owned, square feet | ft² | 894,735 | |
Real estate leased, square feet | ft² | 861,043 | |
Other Countries | ||
Property, Plant and Equipment, Net [Line Items] | ||
Real estate owned, square feet | ft² | 1,039,287 | |
Real estate leased, square feet | ft² | 635,479 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease, payments | $ 89,251 | $ 90,848 | $ 87,604 |
Non-cash transactions to recognize operating assets and liabilities for new leases | 101,971 | 79,357 | 58,103 |
Operating lease right of use assets | 425,884,000 | 405,446,000 | |
Operating lease liability | 430,490,000 | 413,907,000 | |
Operating lease, expense | 94,296,000 | $ 90,134,000 | |
Operating lease, expense | $ 84,216,000 | ||
Gain related to sale and lease back of buildings | $ 18,950,000 |
Lease Commitments (Schedule of
Lease Commitments (Schedule of Supplemental Consolidated Statement of Financial Position information Related to Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right of use assets | $ 425,884 | $ 405,446 |
Current portion of operating lease liabilities | 67,390 | 69,322 |
Non-current portion of operating lease liabilities | 363,100 | 344,585 |
Total operating lease liabilities | $ 430,490 | $ 413,907 |
Weighted average remaining lease term (years) | 4 years 6 months 29 days | 4 years 8 months 12 days |
Weighted average discount rate | 4.02% | 3.71% |
Lease Commitments (Schedule o_2
Lease Commitments (Schedule of Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 82,085 | |
2025 | 69,950 | |
2026 | 55,942 | |
2027 | 42,081 | |
2028 | 36,220 | |
2029 and thereafter | 251,493 | |
Total lease payments | 537,771 | |
Less imputed interest | 107,281 | |
Operating lease liability | $ 430,490 | $ 413,907 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets, Net (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expenses | $ 43,903,000 | $ 49,227,000 | $ 47,023,000 | |
Impairment of long-lived assets | $ 0 | |||
Elbit Systems Limited | Federmann Group | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Ownership percentage | 44.05% | |||
Opgal Industries Ltd | Opgal Industries Ltd | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Ownership percentage | 50% |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets, Net (Schedule Of Aggregate Goodwill And Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible asset, net | $ 1,004,277 | $ 1,019,286 |
Accumulated amortization | 613,757 | 586,553 |
Amortized cost | 390,520 | 432,733 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible asset, net | 406,391 | 402,592 |
Accumulated amortization | 259,956 | 246,126 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible asset, net | 390,511 | 392,584 |
Accumulated amortization | 162,728 | 147,104 |
Trademarks and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible asset, net | 207,375 | 224,110 |
Accumulated amortization | $ 191,073 | $ 193,323 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets, Net (Estimated Aggregate Amortization Expense) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 35,847 |
2025 | 34,111 |
2026 | 34,413 |
2027 | 31,854 |
2028 | 254,295 |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | $ 390,520 |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets, Net (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance, at January 1, | $ 1,502,494 | |
PPA and PPA adjustment (1) | $ 13,472 | |
Net translation differences | (16,901) | |
Balance, at December 31, | 1,499,065 | |
Finite-Lived Intangible Assets [Line Items] | ||
GOODWILL | 1,499,065 | 1,502,494 |
PPA and PPA adjustment (1) | 13,472 | |
Net translation differences | (16,901) | |
Aerospace | ||
Goodwill [Roll Forward] | ||
Balance, at January 1, | 61,933 | |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | 1,255 | |
Balance, at December 31, | 63,188 | |
Finite-Lived Intangible Assets [Line Items] | ||
GOODWILL | 63,188 | 61,933 |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | 1,255 | |
C4I and Cyber | ||
Goodwill [Roll Forward] | ||
Balance, at January 1, | 316,655 | |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | 0 | |
Balance, at December 31, | 316,655 | |
Finite-Lived Intangible Assets [Line Items] | ||
GOODWILL | 316,655 | 316,655 |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | 0 | |
ISTAR and EW | ||
Goodwill [Roll Forward] | ||
Balance, at January 1, | 130,379 | |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | 2,849 | |
Balance, at December 31, | 133,228 | |
Finite-Lived Intangible Assets [Line Items] | ||
GOODWILL | 133,228 | 130,379 |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | 2,849 | |
Land | ||
Goodwill [Roll Forward] | ||
Balance, at January 1, | 592,871 | |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | (21,005) | |
Balance, at December 31, | 571,866 | |
Finite-Lived Intangible Assets [Line Items] | ||
GOODWILL | 571,866 | 592,871 |
PPA and PPA adjustment (1) | 0 | |
Net translation differences | (21,005) | |
ESA | ||
Goodwill [Roll Forward] | ||
Balance, at January 1, | 400,656 | |
PPA and PPA adjustment (1) | 13,472 | |
Net translation differences | 0 | |
Balance, at December 31, | 414,128 | |
Finite-Lived Intangible Assets [Line Items] | ||
GOODWILL | 414,128 | 400,656 |
PPA and PPA adjustment (1) | $ 13,472 | |
Net translation differences | $ 0 |
Short-Term Bank Credit And Lo_3
Short-Term Bank Credit And Loans (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 01, 2023 | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Short-term Debt [Line Items] | ||||
Short-term credit and loans | $ 576,594 | $ 115,076 | ||
Commercial paper | $ 315,000 | |||
Commercial paper, term | 90 days | |||
Commercial paper, term extension | 90 days | |||
Commercial paper, maximum term | 5 years | |||
Short-term loans | ||||
Short-term Debt [Line Items] | ||||
Short-term credit and loans | 162,034 | 21,772 | ||
Short-term commercial securities | ||||
Short-term Debt [Line Items] | ||||
Short-term credit and loans | 313,620 | 0 | ||
Short-term bank credit | ||||
Short-term Debt [Line Items] | ||||
Short-term credit and loans | $ 100,940 | $ 93,304 | ||
SOFR | ||||
Short-term Debt [Line Items] | ||||
Interest percentage spread | 5.38% | |||
SOFR | Short-term commercial securities | ||||
Short-term Debt [Line Items] | ||||
Interest percentage spread | 100% | |||
Three Month SOFR | ||||
Short-term Debt [Line Items] | ||||
Commercial paper, basis spread on variable rate | 0.01 | |||
Minimum | SOFR | Short-term loans | ||||
Short-term Debt [Line Items] | ||||
Interest percentage spread | 1.20% | |||
Minimum | SOFR | Short-term bank credit | ||||
Short-term Debt [Line Items] | ||||
Interest percentage spread | 120% | |||
Maximum | SOFR | Short-term loans | ||||
Short-term Debt [Line Items] | ||||
Interest percentage spread | 1.50% | |||
Maximum | SOFR | Short-term bank credit | ||||
Short-term Debt [Line Items] | ||||
Interest percentage spread | 150% |
Other Payables And Accrued Ex_3
Other Payables And Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities [Abstract] | ||
Payroll and related expenses | $ 329,249 | $ 336,830 |
Provision for vacation pay | 83,393 | 80,529 |
Provision for income tax, net of advances | 28,387 | 30,210 |
Other income tax liabilities | 40,006 | 32,048 |
Value added tax (“VAT”) payable | 29,599 | 19,212 |
Provision for royalties | 66,540 | 62,152 |
Provision for warranty and cost | 92,138 | 95,708 |
Derivative instruments | 69,036 | 107,581 |
Contingent purchase obligations | 3,033 | 3,126 |
Provision for losses on long-term contracts | 60,630 | 64,062 |
Provision for vendors on accrued expenses | 133,376 | 95,058 |
Other | 258,960 | 244,841 |
Other payables and accrued expenses | $ 1,194,347 | $ 1,171,357 |
Contract Liabilities (Custome_3
Contract Liabilities (Customer Advances) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2020 | |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | ||||
Contract liabilities | $ 2,010,422,000 | $ 1,994,236,000 | $ 858,965,000 | |
Less: Contract liabilities presented under long-term liabilities | 354,319,000 | 217,075,000 | ||
Contract liabilities | 1,656,103,000 | 1,777,161,000 | ||
Increase in contract liabilities | $ 16,187,000 | $ 192,164,000 | $ 617,740,000 |
Long-Term Loans, Net Of Curre_3
Long-Term Loans, Net Of Current Maturities (Summary Of Long-Term Loans, Net Of Current Maturities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Long-term debt noncurrent | $ 41,227 | $ 264,541 |
SOFR | ||
Debt Instrument [Line Items] | ||
Interest percentage spread | 5.38% | |
United States of America, Dollars | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 52,837 | |
United States of America, Dollars | SOFR | ||
Debt Instrument [Line Items] | ||
Interest percentage spread | 5.59% | |
Long-Term Bank Loans | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 52,837 | 275,703 |
Less: current maturities | 11,610 | 11,162 |
Long-term debt noncurrent | 41,227 | 264,541 |
Long-Term Bank Loans | United States of America, Dollars | ||
Debt Instrument [Line Items] | ||
Long-term loans | 1,504 | 213,559 |
Long-Term Bank Loans | Other | ||
Debt Instrument [Line Items] | ||
Long-term loans | 0 | 1,954 |
Long-Term Bank Loans | Euro | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 51,333 | $ 60,190 |
Long-Term Bank Loans | Minimum | United States of America, Dollars | ||
Debt Instrument [Line Items] | ||
Interest percentage spread | 1.35% | |
Long-Term Bank Loans | Minimum | NIS | ||
Debt Instrument [Line Items] | ||
Interest percentage spread | 2.02% | |
Long-Term Bank Loans | Maximum | United States of America, Dollars | ||
Debt Instrument [Line Items] | ||
Interest percentage spread | 1.75% | |
Long-Term Bank Loans | Maximum | NIS | ||
Debt Instrument [Line Items] | ||
Interest percentage spread | 2.50% |
Long-Term Loans, Net Of Curre_4
Long-Term Loans, Net Of Current Maturities (Summary Of Maturities Of Long-Term Loans) (Details) - United States of America, Dollars $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 11,610 |
2025 | 11,844 |
2026 | 11,959 |
2027 and thereafter | 17,424 |
Long-term loans | $ 52,837 |
Series B,C And D Notes, Net O_3
Series B,C And D Notes, Net Of Current Maturities (Schedule Of Series A Notes, Net Of Current Maturities) (Details) $ in Thousands, ₪ in Billions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2021 ILS (₪) |
Debt Disclosure [Abstract] | ||||
Series B, C and D Notes | $ 408,199 | $ 483,185 | $ 579,000 | ₪ 1.9 |
Less – Current maturities | (63,676) | (65,393) | ||
Premium (discount) on Series B, C and D Notes, net | (1,676) | (2,255) | ||
Series B, C and D Notes, net of current maturities | $ 342,847 | $ 415,537 |
Series B,C And D Notes, Net O_4
Series B,C And D Notes, Net Of Current Maturities (Narrative) (Details) $ in Thousands, ₪ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 USD ($) installment | Dec. 31, 2023 USD ($) swap | Dec. 31, 2023 ILS (₪) | Dec. 31, 2022 USD ($) | Jul. 31, 2021 ILS (₪) | |
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 579,000 | $ 408,199 | $ 483,185 | ₪ 1,900 | |
Interest expense on notes | $ | 9,537 | ||||
Amortization of deferred issuance costs | $ | 579 | ||||
Series B Notes | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | 463,000 | ₪ 1,500 | ₪ 1,500 | ||
Debt Instrument, face amount, value at time of IPO | $ | $ 457,000 | ||||
Number of equal annual installments associated with note, in installments | installment | 8 | ||||
Fixed interest rate (in percentage) | 1.08% | 1.08% | |||
Series C Notes | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 61,000 | ₪ 200 | |||
Number of equal annual installments associated with note, in installments | installment | 8 | ||||
Fixed interest rate (in percentage) | 2.12% | 2.12% | |||
Series D Notes | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 61,000 | ₪ 200 | |||
Number of equal annual installments associated with note, in installments | installment | 14 | ||||
Fixed interest rate (in percentage) | 2.67% | 2.67% | |||
Number of equal annual installments associated with note, with same installment payment rate, in installments | installment | 13 | ||||
Annual installment amount, recurring (in percentage) | 7.14% | ||||
Annual installment amount, final installment (in percentage) | 7.18% | ||||
Notes Payable | |||||
Derivative [Line Items] | |||||
Debt Instrument, Annual Principal Payment | $ | $ 62,434 | ||||
Cross Currency Interest Rate Swaps | |||||
Derivative [Line Items] | |||||
Number of cross-currency interest swap transactions | swap | 8 | ||||
Derivative, term of contract | 8 years | ||||
Cross Currency Interest Rate Swaps | NIS | |||||
Derivative [Line Items] | |||||
Derivative, fixed interest rate (in percentage) | 1.08% | 1.08% | |||
Cross Currency Interest Rate Swaps | United States of America, Dollars | |||||
Derivative [Line Items] | |||||
Derivative, fixed interest rate (in percentage) | 1.92% | 1.92% |
Series B,C And D Notes, Net O_5
Series B,C And D Notes, Net Of Current Maturities (Schedule Of Future Principal Payments For The Series A Notes) (Details) - Notes Payable $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 69,917 |
2025 | 69,917 |
2026 | 69,917 |
2027 | 69,917 |
2028 and thereafter | 165,974 |
Long-term loans | $ 445,642 |
Benefit Plans And Obligations_3
Benefit Plans And Obligations For Termination Indemnity (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Number Of Plans | plan | 5 | ||
Defined Benefit Plan, Number of Subsidiaries | subsidiary | 3 | ||
Eligibility age for normal retirement benefit plan, in years | 65 years | ||
Lump sum based on employee contribution percentage to certain breakpoint | 2% | ||
Additional percentage exceeding the breakpoint | 6% | ||
Maximum percentage of pensionable salary | 5% | ||
Maximum employer contributions, in years | 40 years | ||
Expected benefit payments, 2014 | $ 16,749,000 | ||
Expected benefit payments, 2015 | 17,434,000 | ||
Expected benefit payments, 2016 | 18,218,000 | ||
Expected benefit payments, 2017 | 18,806,000 | ||
Expected benefit payments, 2018 | 19,258,000 | ||
Total expense | $ 16,961,000 | $ 16,329,000 | $ 15,951,000 |
Salary and bonus defer percentage under the plan | 100% | ||
Amount on the dollar ESA matches up to 10% of employees total salary | $ 0.005 | ||
ESA offers, maximum percentage | 10% | ||
Participant contributions transferred into the plan | $ 2,418,000 | $ 3,067,000 | $ 2,762,000 |
ESA contribution to the plan | 411,000 | ||
Cash surrender value of the life insurance policies | 6,556,000 | ||
Non-qualified defined contribution plan liabilitiy | 22,988,000 | ||
Plan assets of life insurance policies, cash surrender | 3,936,000 | ||
Related liability, pension payments | $ 12,363,000 |
Benefit Plans And Obligations_4
Benefit Plans And Obligations For Termination Indemnity (Plans' Funded Status And Amounts Recognized In The Consolidated Financial Statements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 646,023 | $ 918,209 | |
Benefit obligation related to acquired companies and deconsolidation of a subsidiary | 0 | (23,851) | |
Service cost | 5,578 | 7,598 | $ 14,926 |
Interest cost | 29,429 | 16,800 | 15,741 |
Exchange rate differences | (8,516) | (47,181) | |
Actuarial (gain) losses | (62,183) | (191,292) | |
Benefits paid | 35,705 | 34,260 | |
Effect of curtailment | (7,840) | 0 | |
Benefit obligation at end of year | 566,786 | 646,023 | 918,209 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of Plans assets at beginning of year | 280,225 | 348,804 | |
Actual return on Plans' assets (net of expenses) | 38,316 | (55,441) | |
Employer contribution | 947 | 1,057 | |
Benefits paid | 21,654 | 14,195 | |
Effect of settlement commitment | 7,826 | 0 | |
Fair value of Plans' assets at end of year | 290,008 | 280,225 | 348,804 |
Funded status | (276,738) | (365,798) | |
Unrecognized net actuarial loss | (84,210) | (20,910) | |
Net amount recognized | (360,948) | (386,708) | |
Accrued benefit liability, current | (28,279) | (39,478) | |
Accrued benefit liability, non-current | (248,459) | (326,320) | |
Accumulated other comprehensive income (loss), pre-tax | (84,210) | (20,910) | |
Retiree Medical Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 867 | 1,597 | |
Service cost | 86 | 149 | |
Interest cost | 43 | 38 | |
Actuarial (gain) losses | 271 | (880) | |
Employee contribution | 9 | 11 | |
Benefits paid | 45 | 48 | |
Benefit obligation at end of year | 1,231 | 867 | $ 1,597 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of Plans assets at beginning of year | 0 | ||
Employer contribution | 36 | 37 | |
Employee contribution | 9 | 11 | |
Benefits paid | 45 | 48 | |
Fair value of Plans' assets at end of year | 0 | 0 | |
Funded status | (1,231) | (867) | |
Unrecognized net actuarial loss | (1,616) | (2,073) | |
Net amount recognized | (2,847) | (2,940) | |
Accrued benefit liability, current | (71) | (137) | |
Accrued benefit liability, non-current | (1,159) | (730) | |
Accumulated other comprehensive income (loss), pre-tax | $ (1,617) | $ (2,073) |
Benefit Plans And Obligations_5
Benefit Plans And Obligations For Termination Indemnity (Components Of The Plans Net Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5,578 | $ 7,598 | $ 14,926 |
Interest cost | 29,429 | 16,800 | 15,741 |
Expected return on Plans’ assets | (17,825) | (22,678) | (20,892) |
Amortization of prior service cost | (1,246) | 0 | (3) |
Amortization of net actuarial loss | $ 0 | 18,596 | 16,158 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | ||
Recognition of net actuarial gain | $ 5,098 | 0 | 0 |
Total net periodic benefit cost | 10,838 | 20,316 | 25,930 |
Accumulated benefit obligation | 561,350 | 643,617 | $ 912,944 |
Retiree Medical Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 86 | 149 | |
Interest cost | 43 | 38 | |
Amortization of net actuarial loss | (186) | (111) | |
Total net periodic benefit cost | $ (57) | $ 76 |
Benefit Plans And Obligations_6
Benefit Plans And Obligations For Termination Indemnity (Weighted Average Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.90% | 5.20% |
Expected long-term rate of return on Plans' assets | 7% | 6.80% |
Rate of compensation increase | 1.50% | 1.80% |
Retiree Medical Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.90% | 5.10% |
Health care cost trend rate assumed for next year | 6% | 6.50% |
Ultimate health care cost trend rate | 4% | 4.10% |
Benefit Plans And Obligations_7
Benefit Plans And Obligations For Termination Indemnity (Asset Allocation By Category) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities | 100% | 100% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities | 53.10% | 65.40% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities | 44% | 32.70% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities | 2.90% | 1.90% |
Benefit Plans And Obligations_8
Benefit Plans And Obligations For Termination Indemnity (Target Asset Allocation For The Plan) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation | 100% | 100% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation | 53% | 67% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation | 47% | 33% |
Benefit Plans And Obligations_9
Benefit Plans And Obligations For Termination Indemnity (Fair Value Of The Asset Values By Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | $ 290,008 | $ 280,225 | $ 348,804 |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 4,262 | ||
Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 4,193 | ||
Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 60,309 | ||
US Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 19,856 | ||
Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 47,259 | ||
International Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 8,274 | ||
Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 145,855 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 237,031 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 4,262 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 4,193 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 60,309 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | US Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 14,138 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | International Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 8,274 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 145,855 | ||
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 52,977 | ||
Significant Observable Inputs (Level 2) | Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Observable Inputs (Level 2) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Observable Inputs (Level 2) | US Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 5,718 | ||
Significant Observable Inputs (Level 2) | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 47,259 | ||
Significant Observable Inputs (Level 2) | International Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Observable Inputs (Level 2) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | US Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | International Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | 0 | ||
Significant Unobservable Inputs (Level 3) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the asset | $ 0 |
Benefit Plans And Obligation_10
Benefit Plans And Obligations For Termination Indemnity (Effect Of A 1% Change In The Health Care Cost Trend Rate) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Retirement Benefits [Abstract] | |
Net periodic benefit cost, 1% increase | $ 14 |
Net periodic benefit cost, 1% decrease | (13) |
Benefit obligation, 1% increase | 98 |
Benefit obligation, 1% decrease | $ (88) |
Taxes On Income (Narrative) (De
Taxes On Income (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Line Items] | ||||
Theoretical tax expense | $ 52,094 | $ 67,288 | $ 88,194 | |
Corporate tax rates | 23% | 23% | 23% | |
Period for certain income from approved enterprise program to be tax exempt, in years | 2 years | |||
Tax rate for certain income from approved enterprise program | 25% | |||
Commencement of production maximum period for tax exempt income, in years | 12 years | |||
Period after date of approval which income is not longer tax exempt, in years | 14 years | |||
Tax benefit, temporary provision, exempt earnings released | $ 784,000 | |||
Tax benefit, temporary provision, provision for corporate tax | $ 80,000 | |||
Special preferred enterprise minimum tax rate | 6% | |||
Special preferred enterprise tax rate on dividends for foreign private investors | 4% | |||
Special preferred enterprise qualifications, minimum percentage of revenue invested in R&D | 7% | |||
Liability for unrecognized tax benefits | $ 81,058 | $ 86,176 | $ 82,380 | |
Accrued interest and penalties | 2,303 | $ 2,394 | ||
Available carry forward tax losses | 441,636 | |||
Available carry forward tax losses non-Israeli subsidiaries | 53,292 | |||
Tax Credit Carryforward, Amount | 61,092 | |||
Tax Credit Carryforward, Valuation Allowance | $ 56,979 |
Taxes On Income (Schedule Of In
Taxes On Income (Schedule Of Income Before Taxes On Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Domestic | $ 250,831 | $ 268,446 | $ 310,134 |
Foreign | (24,337) | 24,112 | 73,317 |
Income before income taxes | $ 226,494 | $ 292,558 | $ 383,451 |
Taxes On Income (Schedule Of Ta
Taxes On Income (Schedule Of Taxes On Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current taxes: Domestic | $ 41,553 | $ 40,357 | $ 36,888 |
Current taxes: Foreign | 4,045 | 6,593 | 9,635 |
Taxes on income, current | 45,598 | 46,950 | 46,523 |
Adjustment for previous years: Domestic | (19,404) | (10,681) | 82,407 |
Adjustment for previous years: Foreign | (330) | (124) | 16 |
Adjustment for previous years, total | (19,734) | (10,805) | 82,423 |
Deferred income tax: Domestic | (5,434) | (6,607) | 342 |
Deferred income tax: Foreign | 2,483 | (5,407) | 2,099 |
Deferred income tax expense (benefit), total | (2,951) | (12,014) | 2,441 |
Domestic | 16,715 | 23,069 | 119,637 |
Foreign | 6,198 | 1,062 | 11,750 |
Actual tax expenses | $ 22,913 | $ 24,131 | $ 131,387 |
Taxes On Income (Schedule Of Un
Taxes On Income (Schedule Of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at the beginning of the year | $ 86,176 | $ 82,380 |
Additions (reductions) related to interest and currency translation | 1,810 | |
Additions (reductions) related to interest and currency translation | (4,758) | |
Additions based on tax positions related to prior period | 28 | 552 |
Reductions related to tax positions taken during a prior period | (11,059) | (5,624) |
Reductions related to settlement of tax matters | (11,258) | (5,874) |
Additions based on tax positions taken during the current period () | 16,511 | 19,844 |
Reductions related to a lapse of applicable statute of limitation | (1,150) | (344) |
Balance at the end of the year | $ 81,058 | $ 86,176 |
Taxes On Income (Schedule Of De
Taxes On Income (Schedule Of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Reserves and allowances | $ 61,945 | $ 80,746 |
Inventory allowances | 18,007 | 19,860 |
Property, plant and equipment | 2,751 | 4,152 |
Operating lease right of use assets | 19,913 | 44,341 |
Other assets | 116,524 | 93,252 |
Net operating loss carry-forwards | 94,776 | 87,490 |
Gross deferred tax assets | 313,916 | 329,841 |
Valuation allowance | (165,199) | (164,906) |
Deferred tax assets, net of valuation allowance | 148,717 | 164,935 |
Intangible assets | (74,892) | (77,661) |
Property, plant and equipment | (35,956) | (28,767) |
Operating lease liabilities | (19,479) | (43,596) |
Reserves and allowances | (9,155) | (13,723) |
Deferred tax liabilities, gross | (139,482) | (163,747) |
Net deferred tax assets | $ 9,235 | $ 1,188 |
Taxes On Income (Schedule Of Ef
Taxes On Income (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Income before taxes as reported in the consolidated statements of income | $ 226,494 | $ 292,558 | $ 383,451 |
Statutory tax rate | 23% | 23% | 23% |
Theoretical tax expense | $ 52,094 | $ 67,288 | $ 88,194 |
Tax benefit arising from reduced rate as an “Approved and Privileged Enterprise” and other tax benefits | (27,741) | (26,281) | (36,043) |
Tax adjustment in respect of different tax rates for foreign subsidiaries | (3,508) | (17,946) | 4,813 |
Changes in carry-forward losses and valuation allowances | 12,714 | 27,905 | (7,243) |
Taxes resulting from non-deductible expenses | 2,299 | 795 | 5,272 |
Difference in basis of measurement for financial reporting and tax return purposes | 8,339 | (15,060) | (5,851) |
Taxes in respect of prior years (see Note 18D above) | (19,734) | (10,805) | 82,423 |
Other differences, net | (1,550) | (1,765) | (178) |
Actual tax expenses | $ 22,913 | $ 24,131 | $ 131,387 |
Effective tax rate | 10.12% | 8.25% | 34.26% |
Basic | $ 0.63 | $ 0.59 | $ 0.82 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net effect of the cross-currency swaps | $ 15,748 |
Amount offset against exchange rate difference | 12,126 |
Amount offset against interest expenses | $ 3,622 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 50,348 | $ 75,397 |
Liability derivatives | 112,978 | 156,622 |
Foreign exchange contracts and other derivatives instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 50,348 | 83,759 |
Liability derivatives | 116,413 | 162,061 |
Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 50,348 | 75,397 |
Liability derivatives | 77,819 | 130,604 |
Foreign exchange contracts | Foreign exchange contracts and other derivatives instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 8,362 |
Liability derivatives | 3,435 | 5,439 |
Cross Currency Interest Rate Swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | $ 35,159 | $ 26,018 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Effect Of Derivative Instruments On Cash Flow Hedging And Relationship Between Income And Other Comprehensive Income) (Details) - Derivatives designated as hedging instruments - Foreign exchange contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income, net as of December 31, 2023 | $ (119,781) | $ (152,143) |
Gain (Loss) on Effective Portion of Derivative Reclassified from Accumulated Other Comprehensive Income | $ (103,621) | $ (57,201) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Excluded from effectiveness testing (Details) - Foreign exchange contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Ineffective Portion of Gain (Loss) of Derivative and Amount Excluded from Effectiveness Testing Recognized in Income | $ 13,791 | $ 9,413 |
Foreign exchange contracts and other derivatives instruments | ||
Derivative [Line Items] | ||
Ineffective Portion of Gain (Loss) of Derivative and Amount Excluded from Effectiveness Testing Recognized in Income | $ (3,906) | $ (926) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Notional Amounts Of Outstanding Foreign Exchange Forward Contracts) (Details) - Forward Contracts - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,249,279 | $ 1,872,478 |
Short | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,766,693 | 1,890,508 |
Euro | Long | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 407,849 | 498,879 |
Euro | Short | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,400,118 | 1,032,654 |
United Kingdom, Pounds | Long | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 52,267 | 1,326 |
United Kingdom, Pounds | Short | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 81,061 | 138,077 |
NIS | Long | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,782,959 | 1,359,105 |
NIS | Short | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 286,192 |
Other | Long | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,204 | 13,168 |
Other | Short | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 285,514 | $ 433,585 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Provision for vacation pay | $ 42,073 | $ 42,188 |
Contingent purchase obligation | 37,421 | 49,282 |
Accrued expenses on evacuation | 0 | 20,482 |
Provision for losses on long-term contracts | 11,028 | 3,090 |
Derivative financial instruments | 47,376 | 54,480 |
Accounts payables | 123,787 | 41,272 |
Compensated absences | 11,341 | 13,056 |
Other | 25,270 | 24,046 |
Other long-term liabilities | $ 298,296 | $ 247,896 |
Commitments And Contingent Li_2
Commitments And Contingent Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | |||
Royalties expenses | $ 19,878 | $ 30,610 | $ 8,216 |
Outstanding buy-back obligations | 2,500,000 | ||
Guarantees issued by banks to secure certain advances from customers and performance bonds | 4,358,456 | ||
Purchase commitments | 3,856,034 | $ 3,028,988 | |
Fixed liens issued by banks to secure bank loans and bank and other financial institutions guarantees | $ 222,807 | ||
2018 Equity Incentive Plan | |||
Loss Contingencies [Line Items] | |||
Shares authorized under plan | 1,500,000 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Percentage of total sales of products developed within framework of research and development activity program | 5% | ||
Maximum amount of royalties paid, percentage | 150% | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Percentage of total sales of products developed within framework of research and development activity program | 2% | ||
Maximum amount of royalties paid, percentage | 100% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Granted, number of options (in shares) | 76,100 | 1,028,100 | |
Aggregate intrinsic value | $ | $ 66,356 | ||
Total unrecognized compensation cost related to share-based compensation arrangements granted | $ | $ 26,639 | ||
Expected cost recognition period, in years | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 163.30 | $ 156.66 | $ 131.37 |
Granted, weighted average exercise price | $ / shares | $ 182.06 | $ 185.30 | |
121.42 - 216.32 | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,452,821 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 163.30 | ||
2018 Equity Incentive Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Shares authorized under plan | 1,500,000 | ||
Period measuring the average closing price, in days | 30 days | ||
Percent vested and exercisable from the second anniversary of the commencement date | 40% | ||
Additional percentage vested and exercisable from the third anniversary of the commencement date | 20% | ||
Additional percentage vested and exercisable from the fourth anniversary of the commencement date | 20% | ||
Remaining percentage vested and exercisable from the fifth anniversary of the commencement date | 20% | ||
Expiration period | 63 months | ||
Options available for future grants under plan | 64,000 | ||
2022 Equity Incentive Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Shares authorized under plan | 1,100,000 | ||
Percent vested and exercisable from the second anniversary of the commencement date | 40% | ||
Additional percentage vested and exercisable from the third anniversary of the commencement date | 30% | ||
Remaining percentage vested and exercisable from the fifth anniversary of the commencement date | 30% | ||
Expiration period | 51 months | ||
Options available for future grants under plan | 170,000 | ||
2018 Phantom Bonus Retention Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Granted, number of options (in shares) | 678,100 | ||
Granted, weighted average exercise price | $ / shares | $ 139.51 | ||
2018 Phantom Bonus Retention Plan | Maximum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Benefit As A Percentage of Company Share Price Increase | 1 |
Shareholders' Equity (Weighted
Shareholders' Equity (Weighted Average Assumptions) (Details) - Share-Based Payment Arrangement, Option | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Dividend yield | 1.97% | 2.10% |
Expected volatility | 28.02% | 25.79% |
Risk-free interest rate | 4.15% | 2.10% |
Expected life | 4 years 3 months | 4 years 3 months |
Forfeiture rate | 10% | 10% |
Suboptimal factor | 1.25 | 1.25 |
Shareholders' Equity (Summary O
Shareholders' Equity (Summary Of Share Option Activity Under The Stock Option Plan) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding-beginning of the year, Number of options (in shares) | 1,728,106 | 1,076,750 |
Granted, number of options (in shares) | 76,100 | 1,028,100 |
Exercise of options (in shares) | (312,085) | (241,844) |
Forfeited, number of options (in shares) | (39,300) | (134,900) |
Outstanding-end of the year, Number of options (in shares) | 1,452,821 | 1,728,106 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding-beginning of the year, Weighted average exercise price | $ 156.66 | $ 131.37 |
Granted, weighted average exercise price | 182.06 | 185.30 |
Exercises, weighted average exercise price | 129.04 | 128.76 |
Forfeited, weighted average exercise price | 180.54 | 223.12 |
Outstanding-end of the year, Weighted average exercise price | $ 163.30 | $ 156.66 |
Shareholders' Equity (Summary_2
Shareholders' Equity (Summary Of Options Outstanding Separated Into Ranges Of Exercise Prices) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Options outstanding, Number of options | 1,452,821 | 1,728,106 | 1,076,750 |
Options outstanding, Weighted average exercise price per share | $ 163.30 | $ 156.66 | $ 131.37 |
121.42 - 216.32 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Options outstanding, Number of options | 1,452,821 | ||
Options outstanding, Weighted average remaining contractual life (years) | 2 years 7 months 20 days | ||
Options outstanding, Weighted average exercise price per share | $ 163.30 | ||
Exercise price, Lower limit | 121.42 | ||
Exercise price, Upper limit | $ 216.32 |
Shareholders' Equity (Compensat
Shareholders' Equity (Compensation Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2018 Equity Incentive Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | $ 12,141 | $ 10,463 | $ 5,312 |
2018 Equity Incentive Plan | Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 10,319 | 8,893 | 4,515 |
2018 Equity Incentive Plan | General and administration expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 1,822 | 1,570 | 797 |
2018 Phantom Bonus Retention Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 10,589 | 62,090 | 18,431 |
2018 Phantom Bonus Retention Plan | Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 6,164 | 34,778 | 10,522 |
2018 Phantom Bonus Retention Plan | General and administration expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 2,635 | 15,537 | 4,584 |
2018 Phantom Bonus Retention Plan | Marketing and selling | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | $ 1,790 | $ 11,775 | $ 3,325 |
Shareholders' Equity (Computati
Shareholders' Equity (Computation Of Basic And Diluted Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |||
Basic net earnings | $ 215,131 | $ 275,448 | $ 274,350 |
Weighted average number of shares, basic net earnings | 44,375 | 44,322 | 44,204 |
Employee stock options, Per Share amount | 217 | 259 | |
Weighted average number of shares, diluted net earnings | 44,592 | 44,581 | 44,278 |
Basic net earnings per share (in usd per share) | $ 4.85 | $ 6.21 | $ 6.21 |
Earnings Per Share, Dilution Effect, Employee Stock Option | (0.03) | (0.03) | |
Diluted net earnings per share (in usd per share) | $ 4.82 | $ 6.18 | $ 6.20 |
Major Customer And Geographic_3
Major Customer And Geographic Information - Segment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 5,974,744 | $ 5,511,549 | $ 5,278,521 |
Total revenues (external customers and intersegment) for reportable segments | 6,544,959 | 6,082,481 | 5,844,032 |
Operating income | 369,108 | 367,484 | 418,508 |
Other operating income | 0 | 68,918 | 14,660 |
Financial expenses, net | (137,827) | (51,364) | (40,393) |
Other income (expenses), net | (4,787) | (23,562) | 5,336 |
Income before income taxes | 226,494 | 292,558 | 383,451 |
Total depreciation and amortization | 164,799 | 161,290 | 153,091 |
Aerospace | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,613,137 | 1,471,093 | 1,281,407 |
Total revenues (external customers and intersegment) for reportable segments | 1,873,281 | 1,733,182 | 1,583,312 |
C4I and Cyber | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 668,414 | 631,297 | 590,095 |
Total revenues (external customers and intersegment) for reportable segments | 721,116 | 678,395 | 624,696 |
ISTAR and EW | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 996,927 | 882,200 | 888,206 |
Total revenues (external customers and intersegment) for reportable segments | 1,179,427 | 1,045,649 | 1,026,295 |
Land | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,241,023 | 1,075,846 | 1,028,121 |
Total revenues (external customers and intersegment) for reportable segments | 1,306,197 | 1,168,583 | 1,116,922 |
ESA | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,455,243 | 1,451,113 | 1,490,692 |
Total revenues (external customers and intersegment) for reportable segments | 1,464,938 | 1,456,672 | 1,492,807 |
Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating income | 386,913 | 308,376 | 399,390 |
Other operating income | 0 | 68,918 | 14,660 |
Operating Segments | Aerospace | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 260,144 | 262,089 | 301,905 |
Operating income | 125,455 | 106,760 | 129,213 |
Total depreciation and amortization | 36,284 | 34,353 | 35,084 |
Operating Segments | C4I and Cyber | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 52,702 | 47,098 | 34,601 |
Operating income | 50,653 | 48,964 | 44,350 |
Total depreciation and amortization | 12,551 | 13,651 | 16,054 |
Operating Segments | ISTAR and EW | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 182,500 | 163,449 | 138,089 |
Operating income | 134,882 | 49,120 | 66,001 |
Total depreciation and amortization | 29,001 | 24,992 | 23,452 |
Operating Segments | Land | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 65,174 | 92,737 | 88,801 |
Operating income | 80,610 | 28,554 | 35,567 |
Total depreciation and amortization | 34,747 | 38,560 | 41,901 |
Operating Segments | ESA | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 9,695 | 5,559 | 2,115 |
Operating income | (4,687) | 74,978 | 124,259 |
Total depreciation and amortization | 50,526 | 46,540 | 34,962 |
Intersegment revenue | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 570,215 | 570,932 | 565,511 |
Unallocated corporate income (expense) | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating income | (17,805) | (9,810) | 4,458 |
Total depreciation and amortization | $ 1,690 | $ 3,194 | $ 1,638 |
Major Customer And Geographic_4
Major Customer And Geographic Information (Schedule Of Revenue By Geographic Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 5,974,744 | $ 5,511,549 | $ 5,278,521 |
North America | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,417,742 | 1,489,685 | 1,608,582 |
Asia Pacific | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,263,771 | 1,405,473 | 1,443,505 |
Israel | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,167,228 | 1,071,945 | 1,094,662 |
Europe | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,776,412 | 1,243,550 | 884,504 |
Latin America | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 120,700 | 119,860 | 126,686 |
Other Areas | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 228,891 | $ 181,036 | $ 120,582 |
Major Customer And Geographic_5
Major Customer And Geographic Information (Schedule Of Major Customer Data) (Details) - Customer Concentration Risk - Revenue Benchmark | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Israeli Ministry Of Defense | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total revenues | 16% | 17% | 18% |
U.S. Government | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total revenues | 17% | 19% | 21% |
Major Customer And Geographic_6
Major Customer And Geographic Information (Schedule Of Long-Lived Assets By Geographic Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,513,834 | $ 1,354,653 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,098,074 | 968,450 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 307,239 | 280,687 |
Others | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 108,521 | $ 105,516 |
Research And Development, Net_2
Research And Development, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research and Development Expense [Abstract] | |||
Total expenses | $ 502,654 | $ 501,777 | $ 447,852 |
Less - grants and participations | (78,234) | (66,127) | (52,765) |
Research and development, net | $ 424,420 | $ 435,650 | $ 395,087 |
Financial Expenses, Net (Detail
Financial Expenses, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and Debt Expense [Abstract] | |||
Interest on long-term bank debt | $ (8,677) | $ (12,392) | $ (10,821) |
Interest on Series B, C and D Notes, net | (9,537) | (11,683) | (5,758) |
Interest on short-term bank credit and loans | (58,253) | (14,857) | (7,683) |
Guarantees | (22,339) | (17,356) | (13,908) |
Gain (loss) from revaluation of lease liabilities and exchange rate differences, net | (11,962) | 10,542 | (10,178) |
Interest Expense, Other | (33,136) | (8,670) | |
Interest Income, Other | 6,080 | ||
Interest Expense | (143,904) | (54,416) | (42,268) |
Interest on cash, cash equivalents and bank deposits | 2,359 | 383 | 469 |
Other | 3,718 | 2,669 | 1,406 |
Investment Income, Nonoperating | 6,077 | 3,052 | 1,875 |
Financial expenses, net | $ (137,827) | $ (51,364) | $ (40,393) |
Other Income (Expenses), Net (D
Other Income (Expenses), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Nonoperating Income (Expense) [Abstract] | |||
Pension non-service cost | $ (6,596) | $ (4,555) | $ (11,715) |
Realized gain on disposal of equity method investment | 0 | (10,619) | 0 |
Other Nonoperating Income (Loss), Revaluation On Investments | (2,963) | (10,175) | 17,282 |
Insurance compensation | 5,200 | 0 | 0 |
Capital gain | (428) | 1,787 | (231) |
Other income, net | $ (4,787) | $ (23,562) | $ 5,336 |
Related Parties' Transactions_3
Related Parties' Transactions And Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Sales to affiliated companies | $ 5,974,744 | $ 5,511,549 | $ 5,278,521 |
Related Party | |||
Related Party Transaction [Line Items] | |||
Sales to affiliated companies | 147,807 | 155,728 | 169,834 |
Operating Costs and Expenses | 0 | 85 | 394 |
Supplies from affiliated companies | 15,877 | 2,143 | $ 6,240 |
Trade receivables and other receivables | 102,075 | 86,535 | |
Trade payables and advances | $ 35,363 | $ 33,167 | |
Israeli Partnership | Related Party | |||
Related Party Transaction [Line Items] | |||
Joint venture, ownership percentage | 50% | ||
Israeli Subsidiary | Related Party | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50% | ||
Elbit Systems of America, LLC | Related Party | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50% |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Retained earnings | $ 2,508,914,000 | $ 2,382,564,000 | |
Corporate Customer | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Retained earnings | 7,650,000 | ||
Government Customer | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Retained earnings | 1,522,000 | ||
Provisions For Losses On Long Term Contracts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 80,962,000 | 89,509,000 | $ 108,281,000 |
Additions (Charged to Costs and Expenses) | 38,560,000 | 20,944,000 | 9,384,000 |
Deductions (Write-Offs and Actual Losses Incurred) | 24,072,000 | 33,102,000 | 36,696,000 |
Balance at End of Period | 95,450,000 | 80,962,000 | 89,509,000 |
Deduction from inventories | 34,820,000 | 16,900,000 | 13,584,000 |
Other accrued expenses | 60,630,000 | 64,062,000 | 75,925,000 |
Additions Resulting from Acquisitions | 0 | 3,611,000 | 8,540,000 |
Provisions for Claims and Potential Contractual Penalties and Others | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,557,000 | 2,343,000 | 2,233,000 |
Additions (Charged to Costs and Expenses) | 1,244,000 | 385,000 | 338,000 |
Deductions (Write-Offs and Actual Losses Incurred) | 140,000 | 171,000 | 228,000 |
Balance at End of Period | 3,661,000 | 2,557,000 | 2,343,000 |
Additions Resulting from Acquisitions | 0 | 0 | 0 |
Allowance For Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 9,162,000 | 10,307,000 | 16,192,000 |
Additions (Charged to Costs and Expenses) | 674,000 | 301,000 | 65,000 |
Deductions (Write-Offs and Actual Losses Incurred) | 664,000 | 1,446,000 | 5,950,000 |
Balance at End of Period | 9,172,000 | 9,162,000 | 10,307,000 |
Additions Resulting from Acquisitions | 0 | 0 | 0 |
Valuation Allowance On Deferred Taxes | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 164,906,000 | 192,811,000 | 172,833,000 |
Additions (Charged to Costs and Expenses) | 293,000 | 0 | 7,243,000 |
Deductions (Write-Offs and Actual Losses Incurred) | 0 | 27,905,000 | 0 |
Balance at End of Period | 165,199,000 | 164,906,000 | 192,811,000 |
Additions Resulting from Acquisitions | $ 0 | $ 0 | $ 12,735,000 |