HAIFA, Israel, Feb. 22, 2022 /PRNewswire/ -- Elbit Systems
Ltd. (NASDAQ: ESLT) (TASE:
ESLT) ("Elbit Systems" or the "Company") announced
today that as a result of an amendment to the Law for the
Encouragement of Capital Investments and the implementation of an
arrangement to pay reduced tax on selected accumulated income, the
Company will include a one-time expense of approximately
$80 million (approximately
NIS 250 million) in its financial
results for the fourth quarter of 2021, which are planned to be
published in March, 2022.
On November 15, 2021, the Israeli
Government published the Economic Efficiency Bill (Legislative
Amendments for Attaining Budgetary Objectives for the 2021 and 2022
Budget Years)- 2021 that included an amendment (the
"Amendment") to the Law for the Encouragement of Capital
Investments-1959 (the "Law"), according to which any distribution
of a dividend on or after August 15,
2021 by a company that has income that was exempt from tax
under the Law ("Exempt Earnings") will include an amount of
Exempt Earnings, and an amount of non-exempt earnings, according to
the proportion between them. The amount distributed from Exempt
Earnings will be subject to payment of full corporate tax. The
Amendment includes a temporary provision that allows payment of
reduced corporate tax on Exempt Earnings accumulated until
December 31, 2020 that were not yet
distributed as a dividend ("Selected Accumulated Income").
After reviewing the matter, the Company decided to implement the
temporary provision and as a result pay the reduced corporate tax
in an amount of approximately $80
million (approximately NIS 250
million). This one-time expense will be recorded in the
fourth quarter and full year 2021 financial results in accordance
with U.S. GAAP under "Taxes on Income" and will be adjusted in the
non-GAAP results. The tax amount will be paid during
2022.
Dividends distributed in the future will include Selected
Accumulated Income and the withholding tax rate on them will be
calculated according to the proportion between the Selected
Accumulated Income and the total accumulated earnings as of
December 31, 2020. Accordingly, the
aggregated withholding tax rate on those dividends for individuals
and non-residents is expected to be approximately 17%.
For purposes of clarification the above does not constitute any
obligation by Elbit Systems to distribute dividends.
About Elbit Systems
Elbit Systems Ltd. is an international high technology company
engaged in a wide range of defense, homeland security and
commercial programs throughout the world. The Company, which
includes Elbit Systems and its subsidiaries, operates in the areas
of aerospace, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned aircraft systems, advanced
electro-optics, electro-optic space systems, EW suites, signal
intelligence systems, data links and communications systems,
radios, cyber-based systems and munitions. The Company also focuses
on the upgrading of existing platforms, developing new technologies
for defense, homeland security and commercial applications and
providing a range of support services, including training and
simulation systems.
For additional information, visit: https://elbitsystems.com,
follow us on Twitter or visit our official Facebook, Youtube and
LinkedIn Channels.
Company
Contact:
Joseph Gaspar,
Executive VP & CFO
Tel:
+972-4-8316663
j.gaspar@elbitsystems.com
Rami Myerson,
Director, Investor Relations
Tel:
+972-77-2948984
rami.myerson@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel:
+972-77-2946691
david.vaaknin@elbitsystems.com
|
IR
Contact:
Ehud
Helft
Kenny
Green
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.com
|
This press release may contain forward–looking statements
(within the meaning of Section 27A of the Securities Act of 1933,
as amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Israeli Securities Law, 1968) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to
the extent such statements do not relate to historical or current
facts. Forward-looking statements are based on management's current
expectations, estimates, projections and assumptions about future
events. Forward–looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, as amended. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions about the Company, which are difficult to predict,
including projections of the Company's future financial results,
its anticipated growth strategies and anticipated trends in its
business. Therefore, actual future results, performance and
trends may differ materially from these forward–looking statements
due to a variety of factors, including, without limitation: scope
and length of customer contracts; governmental regulations and
approvals; changes in governmental budgeting priorities; general
market, political and economic conditions in the countries in which
the Company operates or sells, including Israel and the
United States among others; changes in global health and
macro-economic conditions; differences in anticipated and actual
program performance, including the ability to perform under
long-term fixed-price contracts; changes in the competitive
environment; and the outcome of legal and/or regulatory
proceedings. The factors listed above are not all-inclusive,
and further information is contained in Elbit Systems Ltd.'s latest
annual report on Form 20-F, which is on file with the U.S.
Securities and Exchange Commission. All forward–looking statements
speak only as of the date of this release. Although the Company
believes the expectations reflected in
the forward-looking statements contained herein are
reasonable, it cannot guarantee future results, level of activity,
performance or achievements. Moreover, neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of any of these forward-looking statements.
The Company does not undertake to update its forward-looking
statements.
Elbit Systems Ltd., its logo, brand, product, service and
process names appearing in this Press Release are the trademarks or
service marks of Elbit Systems Ltd. or its affiliated
companies. All other brand, product, service and process
names appearing are the trademarks of their respective
holders. Reference to or use of a product, service or process
other than those of Elbit Systems Ltd. does not imply
recommendation, approval, affiliation or sponsorship of that
product, service or process by Elbit Systems Ltd. Nothing contained
herein shall be construed as conferring by implication, estoppel or
otherwise any license or right under any patent, copyright,
trademark or other intellectual property right of Elbit Systems
Ltd. or any third party, except as expressly granted herein.
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SOURCE Elbit Systems Ltd.