Leonardo DRS, Inc. — Form 8-K Summary
Business context and reporting period
Leonardo DRS, Inc. filed this Current Report on March 23, 2022, reporting an auditor change approved on March 18, 2022. The change applies to the fiscal year ending December 31, 2022. The filing does not provide operating or financial results.
Auditor change
- The Audit Committee selected Ernst & Young LLP (EY) as the company’s independent registered public accounting firm for fiscal 2022, subject to EY’s standard client acceptance procedures and execution of an engagement letter.
- KPMG LLP will be dismissed after completing its audit of the company’s consolidated financial statements for the year ended December 31, 2021 and issuing its audit report.
- The selection was related to Leonardo S.p.A.’s selection of an EY affiliate as its independent auditor, in connection with European mandatory audit firm rotation rules.
Financial metrics and material changes
The filing contains no revenue, profit, cash flow, margin, debt, liquidity, or other operating metrics. It does not report a change in the company’s financial condition versus a prior comparable period.
Audit history, outlook, and risks
- KPMG’s reports for fiscal years 2019 and 2020 contained unqualified opinions. Each report included an emphasis-of-matter paragraph regarding the company’s adoption of ASC Topic 842, Leases, effective January 1, 2019.
- The company reported no disagreements with KPMG regarding accounting principles, financial statement disclosure, or audit scope or procedures during fiscal 2019 or 2020 and subsequent interim periods through March 18, 2022.
- The company reported no reportable events during those periods.
- The company stated that it had not consulted EY during the relevant periods regarding accounting principles for specific transactions, potential audit opinions, disagreements, or reportable events.
- The filing provides no management guidance, business outlook, contingencies, or unusual operating items.
Investor verification points
- Verify completion of KPMG’s audit of the 2021 consolidated financial statements and issuance of its report.
- Verify EY’s completion of client acceptance procedures and execution of the engagement letter for fiscal 2022.
- Review Exhibit 16.1, KPMG’s letter to the SEC, for its confirmation or response regarding the company’s statements about the auditor change.
- Consider the auditor transition separately from operating performance, as this filing does not present financial results or guidance.