2.2.0.25falsefalse10101 - Disclosure - Generaltruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
$Duration_1_1_2010_To_12_31_2010http://www.sec.gov/CIK0001027664duration2010-01-01T00:00:002010-12-31T00:00:00Unit12Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit1Standardhttp://www.xbrl.org/2003/instancesharesxbrli0Unit13Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0eslt_GeneralAbstractesltfalsenadurationGeneral [Abstract]falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringGeneral [Abstract]falsefalse3false0us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt">Note 1 -</font></div></td>
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<div align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt">GENERAL</font></div></td></tr></table></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">A.</font></div></td>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Elbit Systems Ltd. ("Elbit Systems") is an Israeli corporation, 45.4% owned by the Federmann Group. Elbit Systems' shares are traded on the Nasdaq National 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 field of defense electronics, homeland security and commercial aviation. Elbit Systems' principal wholly-owned subsidiaries are the Elbit Systems of America, LLC ("ESA") companies, Elbit Systems Electro-Optics Industries Elop Ltd. ("Elop") and Elbit Systems Land and C<font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">4</font>I Ltd. ("ESLC"). Elbit Systems also owns 70% of Elisra Electronic Systems Ltd. ("Elisra"). See Note 27.</font></font></div></div></td></tr></table></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">B.</font></div></td>
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<div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">A majority of the Company's revenues are derived from direct or indirect sales to governments or to governmental agencies. As a result, a substantial portion of the Company's sales is subject to the special risks associated with sales to governments or to governmental agencies. These risks include, among others, the dependency on the resources allocated<font style="display: inline; font-family: Times New Roman;" class="_mt"> </font>by governments to defense programs, changes in governmental priorities, changes in governmental registration, changes in governmental regulations 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 22(C).</font></div></td></tr></table></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">C.</font></div></td>
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<div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On June 9, 2010, the Company completed a public offering on the Tel-Aviv Stock Exchange of NIS 1.1 billion (approximately $283,000) Series A Notes (the "Series A Notes"). The Series A Notes were offered and sold in 2010 pursuant to a shelf prospectus that the Company filed in May 2010 with the Israeli Securities Authority and the Tel-Aviv Stock Exchange. The shelf prospectus allows the Company to offer and sell debt in Israel, from time to time, subject to a supplemental shelf offering report describing the terms of the securities offered and the specific details of the offering. The Series A Notes were not and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to U.S. Persons (as defined in Regulation "S" promulgated under the Securities Act) without registration under the Securities Act or an exemption from the registration requirements of the Securities Act. See Note 16.</font></div></td></tr></table></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">D.</font></div></td>
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<div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">During 2010, the Company completed the following acquisitions and investments:</font></div></td></tr></table></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(1)</font></div></td>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On May 11, 2010, the Company's subsidiary, Elbit Security Systems Ltd. ("Elsec"), completed the acquisition of the balance of shares (81%) in Azimuth Technologies Ltd. ("Azimuth"), an Israeli based company, pursuant to the merger agreement signed by Azimuth and Elsec in January 2010. In November 2008, the Company purchased 19% of Azimuth shares. The aggregate purchase price for the 81% balance of Azimuth's shares was approximately $50,000, comprised of $41,500 in cash, and the remeasurement of its previously held 19% equity interest in Azimuth at its acquisition date fair value, using the quoted share price of Azimuth on Tel-Aviv Stock Exchange, to $8,500, and recognized gain of approximately $4,756 net of acquisition related in the amount of approximately $1,600, included in "Other income, net" as part of operating results. Azimuth and its wholly-owned U.K. subsidiary, specialize in the development of military systems that provide for improved target acquisition, fire coordination, navigation and orientation. The acquisition was accounted for using the purchase method as a business combination achieved in stages. The results of Azimuth were consolidated in the Company's financial statements commencing the date of acquisition. Revenues and earnings from the acquisition date through December 31, 2010, were immaterial to the consolidated results of the Company.</font></font></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(2)</font></div></td>
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<div style="text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On October 14, 2010, the Company's subsidiaries Kinetics Ltd. ("Kinetics") and Elsec completed the acquisition of all the shares of Soltam Systems Ltd. ("Soltam"), Saymar Ltd. ("Saymar") and ITL Optronics Ltd. ("ITL"), that were held by Mikal Ltd. ("Mikal") and its subsidiaries. The Company's above-mentioned subsidiaries completed the acquisition of an 100% interest in Soltam and Saymar, and a 87.85% interest in ITL for a total consideration of approximately $80,500, of which $10,200 is contingent consideration on the occurrence of future events. Simultaneously with the completion of the acquisition, Kinetics sold its holding in Mikal (approximately 19%). See Note 6(B)(2)</font></font></div></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"> </font> </div>
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On February 9, 2011, Elsec completed its cash tender offer for the balance of the ordinary shares of ITL, held by the public, in consideration of $5,900 (See Note 27(A)).</font></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Based on the preliminary purchase price allocation ("PPA") performed by an independent advisor, the PPA was attributed to the fair value of assets and liabilities assumed as follows:</font></div></div></td></tr></table></div></div></div></div></div></div></div></div></div></div></div></div></div>
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<tr><td style="padding-bottom: 2px;" valign="bottom" width="73%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Fair value</font></div></div></td>
<td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Expected useful lives</font></div></div></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Working capital, net</font></div></td>
<td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">$</font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">(59,650</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">)</font> </td>
<td valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Long-term assets and investments</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">8,166</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Property, plant and equipment</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">50,750</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Long-term liabilities</font></div></td>
<td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">(44,948</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">)</font> </td>
<td valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Technology</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">17,300</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">10 years</font></div></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">IPR&D</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">8,900</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">10 years</font></div></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Customer relationships and backlog</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">11,400</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">5-10 years</font></div></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Trade name</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">3,100</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">8 years</font></div></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Licenses</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">1,020</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">7 years</font></div></td></tr>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Non-competition</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">700</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="15%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">4 years</font></div></td></tr>
<tr bgcolor="#cceeff"><td valign="bottom" width="73%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Non-controlling interest</font></div></td>
<td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">(4,592</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">)</font> </td>
<td valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="white"><td valign="bottom" width="73%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Deferred taxes</font></div></td>
<td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">(5,866</font> </td>
<td style="text-align: left;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">)</font> </td>
<td valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="#cceeff"><td style="padding-bottom: 2px;" valign="bottom" width="73%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Goodwill</font></div></td>
<td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">94,292</font> </td>
<td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="padding-bottom: 2px;" valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="white"><td style="padding-bottom: 4px;" valign="bottom" width="73%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td>
<td style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 3px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">$</font> </td>
<td style="border-bottom: black 3px double; text-align: right;" valign="bottom" width="8%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">80,572</font> </td>
<td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="2%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="padding-bottom: 4px;" valign="bottom" width="15%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr></table></div></div>
<div> </div>
<div>
<table style="font-family: times new roman; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr valign="top"><td style="width: 94pt;">
<div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"> </font></div></td>
<td style="width: 27pt;">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(3)</font></div></td>
<td>
<div align="justify">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On December 1, 2010, the Company completed the acquisition of Ares Aerospacial e Defesa S.A ("Ares") and Periscopio Equipamentos Optronicos S.A ("Periscopio") for a purchase price of approximately $38,000. Ares and Perscopio are involved in the area of defense electronic systems and are located in Brazil. Revenues and earnings from the acquisition date through December 31, 2010, were immaterial to the consolidated results of the Company. The Company allocated the acquired assets and liabilities assumed based on a preliminary PPA performed by an independent advisor.</font></font></div></div></td></tr></table></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div>
<table style="font-family: times new roman; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr valign="top"><td style="width: 94pt;">
<div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"> </font></div></td>
<td style="width: 27pt;">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(4)</font></div></td>
<td>
<div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On December 15, 2010, the Company's U.S. subsidiary ESA acquired all the shares of M7 Aerospace LP ("M7 Aerospace") for a purchase price of approximately $85,000. M7 Aerospace is an integrated service company, offering a full suite of aviation services in the areas of Aerostructures Manufacturing, Government Logistics Support Services, Maintenance, Repair and Overhaul, Engineering Services, Aircraft Parts and Support, Supply Chain Management and Purchasing.</font></div>
<div align="justify"> </div></td></tr></table></div></div></div></div></div></div>
<div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<div style="text-indent: 0pt; display: block;">
<div>
<div>
<div style="text-indent: 0pt; display: block; margin-left: 117pt; margin-right: -11.6pt;" align="justify">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Based on the preliminary PPA performed by an independent advisor, the PPA was attributed to the fair value of assets and liabilities assumed as follows:</font></font></div><br /></div>
<div align="right">
<table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="84%">
<tr><td style="padding-bottom: 2px;" valign="bottom" width="77%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td>
<td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 2px solid;" valign="bottom" width="8%" colspan="2">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Fair Value</font></div></div></td>
<td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 2px solid;" valign="bottom" width="13%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Expected useful lives</font></div></div></td></tr>
<tr bgcolor="#cceeff"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Working capital</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">$</font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">30,959</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="13%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="white"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Long-term assets and investments</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">17</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="13%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Property, plant and equipment</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2,654</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="13%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="white"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Long-term liabilities</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">(1,925</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">)</font> </td>
<td valign="bottom" width="13%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Technology</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">13,800</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="13%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">15 years</font></div></td></tr>
<tr bgcolor="white"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Customer relationships and backlog</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">7,100</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="13%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">5 years</font></div></td></tr>
<tr bgcolor="#cceeff"><td valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Brand name</font></div></td>
<td valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">1,900</font> </td>
<td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td valign="bottom" width="13%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 3.4pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2 years</font></div></td></tr>
<tr bgcolor="white"><td style="padding-bottom: 2px;" valign="bottom" width="77%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Goodwill</font></div></td>
<td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">29,911</font> </td>
<td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="padding-bottom: 2px;" valign="bottom" width="13%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr bgcolor="#cceeff"><td style="padding-bottom: 4px;" valign="bottom" width="77%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td>
<td style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="border-bottom: black 3px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">$</font> </td>
<td style="border-bottom: black 3px double; text-align: right;" valign="bottom" width="7%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">84,416</font> </td>
<td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font> </td>
<td style="padding-bottom: 4px;" valign="bottom" width="13%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr></table></div>
<div style="text-indent: 0pt; display: block;"> </div>
<div>
<table style="font-family: times new roman; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr valign="top"><td style="width: 56.7pt;">
<div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"> </font></div></td>
<td style="width: 36pt;">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">E.</font></div></td>
<td>
<div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">During 2009, the Company completed the following acquisitions and investments:</font></div></td></tr></table></div>
<div style="text-indent: 0pt; display: block;"> </div>
<div style="text-indent: 0pt; display: block;">
<div> </div></div>
<div>
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<table style="font-family: times new roman; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top"><td style="width: 90pt;"> </td>
<td style="width: 27pt;" align="right">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(1)</font></div></td>
<td style="text-align: justify;">
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On February 24, 2009, the Company's subsidiary ESLC acquired all of the shares of Shiron Satellite Communications (1996) Ltd. ("Shiron"), a private-owned Israeli company engaged in the broadband communication market, for a purchase price of approximately $16,000. The results of Shiron were consolidated in the Company's financial statements commencing the date of acquisition.</font></font></div></div></td></tr></table></div></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"><br /></div>
<div style="text-align: justify;">
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<table style="text-align: justify; font-family: times new roman; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="text-align: justify;" valign="top"><td style="text-align: justify; width: 90pt;"> </td>
<td style="text-align: justify; width: 27pt;">
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(2)</font></div></td>
<td style="text-align: justify;">
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On April 7, 2009, Elbit Systems completed the purchase of the additional shares of its previously 51%-owned subsidiary Kinetics Ltd. ("Kinetics"). Elbit Systems purchased the remaining 49% of the shares from Kinetics' non-controlling shareholders for a maximum total consideration of $118,000, of which $110,250 was paid in cash upon closing, and the remaining balance was subject to Kinetics' 2009 financial results<font style="display: inline; font-size: 10pt;" class="_mt">. </font>Based on Kinetics 2009 actual results, the final purchase price was set as $110,250 and the additional amount will not be paid. As this was an equity transaction between the parent and Kinetics' non-controlling shareholders, the Company reduced its shareholders' equity for the excess costs over book value related to minority interest in Kinetics (which amounted to approximately $43,000), as required in accordance with ASC 810, "Consolidation".</font></div></td></tr></table></div></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify;">
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">
<table style="text-align: justify; font-family: times new roman; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="text-align: justify;" valign="top"><td style="text-align: justify; width: 90pt;"> </td>
<td style="text-align: justify; width: 27pt;">
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(3)</font></div></td>
<td style="text-align: justify;">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On June 15, 2009, the Company signed an agreement with Mikal Ltd. ("Mikal") and its shareholders. The transaction provided for two stages. In the initial stage, the Company loaned to Mikal $18,000. On September 14, 2009, after receiving authorization from the Israeli Antitrust Authority, the loan was converted to ordinary shares. The Mikal group was engaged in the fields of artillery, armored fighting vehicles and optronics.<font style="display: inline; font-size: 10pt;" class="_mt"> </font>See Note 1(D)(2).</font></div></td></tr></table></div></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">(4)</font></div></td>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On November 19, 2009, Elbit Systems completed the acquisition of the assets and business of BVR Systems (1998) Ltd. ("BVR") for a purchase price of approximately $35,000. BVR was engaged in the development and production of training, simulation and debriefing systems for air, sea and ground forces.</font></div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">F.</font></div></td>
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<div style="text-align: justify;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On December 22, 2008, the Company's 41.3%-owned subsidiary (on a fully diluted basis), MediGuide Inc. ("Mediguide"), signed a definitive agreement with St. Jude Medical to sell to St. Jude Medical all of the outstanding shares of MediGuide for $283,000 in cash and the assumption of net liabilities totaling approximately $17,000. Under the transaction, St. Jude Medical paid $138,000 of the purchase price in December 2008 and $110,000 in November 2009, with the balance due in a payment of up to $35,000 in April 2010.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-size: 10pt;" class="_mt">As a result of the above, the Company included in its 2008 results a gain, before income taxes, of $100,031. The gain was included in "Other Income, net". In 2009, the Company recorded an additional gain of $1,105 resulting from the second payment deduction of the expected transaction expenses. In 2010, upon the payment of the Company's share in the contingent proceeds in March 2010, the Company recorded a gain before income taxes of approximately $12,800.</font> The gain from the sale included in other income, net (See Note 25).</font></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Proceeds received by the Company amounted to $50,254, $50,878 and $12,800 in 2008, 2009 and 2010, respectively.</font></div></div></td></tr></table></div></div></div></div></div></div> </div>Note 1 -
GENERAL
A.
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-Publisher FASB
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-Name FASB Interpretation (FIN)
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-Paragraph 4, 14, 15
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