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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2014
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
NOTE 18 -
SEGMENT REPORTING

 

 
A.
General information:

 

The operations of the Group are conducted through two different core activities: Location based services and Wireless communications products.  These activities also represent the reportable segments of the Group.

 

The reportable segments are viewed and evaluated separately by Company management, since the marketing strategies, processes and expected long term financial performances of the segments are different.

 

Location based services:

 

The Location based services segment consists predominantly of regionally- based stolen vehicle recovery (SVR) services, fleet management services and value-added services comprised of personal advanced locater services and concierge services.

 

The Group provides Location based services in Israel, Brazil, Argentina and the United States.

 

Wireless communications products:

 

The wireless communications product segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location, and automatic vehicle identification.  The Group sells products to customers in Israel, United States, and others.

 

 
B.
Information about reported segment profit or loss and assets:

 

  

US dollars

 

(in thousands)

  

Location based
services

  

Wireless
communications
products

  

Total

 
       

Year ended December 31, 2014

        

Revenues

  133,692   48,435   182,127  

Operating income

   42,603   3,267   45,870  

Assets

  63,795   11,094   74,889  

Goodwill

  1,544   2,497   4,041  

Expenditures for assets

  12,574   598   13,172  

Depreciation and amortization

  8,920   148   9,068  

Impairment of goodwill and intangible assets

  34   888   922  

Year ended December 31, 2013

        

Revenues

  126,951   43,216   170,167  

Operating income (loss)

   38,470   (540 )  37,930  

Assets

  66,300   10,564   76,864  

Goodwill

  1,730   3,703   5,433  

Expenditures for assets

  12,312   264   12,576  

Depreciation and amortization

  9,360   358   9,718  

Impairment of goodwill and intangible assets

  2,816   1,804   4,620  

Year ended December 31, 2012

        

Revenues

  114,565   35,753   150,318  

Operating income

  29,850   97   29,947  

Assets

  65,332   10,629   75,961  

Goodwill

  3,692   4,351   8,043  

Expenditures for assets

  7,636   77   7,713  

Depreciation and amortization

  11,471   130   11,601  

 

 
C.
Information about reported segment profit or loss and assets:

 

The evaluation of performance is based on the operating income of each of the two reportable segments.

 

Accounting policies of the segments are the same as those described in the accounting policies applied in the consolidated financial statements.

 

Due to the nature of the reportable segments, there have been no inter-segment sales or transfers during the reported periods.

 

Financing expenses, net, non-operating other expenses, net, taxes on income and the share of the Company in losses of affiliated companies were not allocated to the reportable segments, since these items are carried and evaluated on the enterprise level.

 

 
D.
Reconciliations of reportable segment revenues, profit or loss, and assets, to the enterprise's consolidated totals:

 

  

US dollars

 

 

  

Year ended December 31,

 

(in thousands)

  

2014

  

2013

 

2012

 
       

Total revenues of reportable segment and consolidated revenues

   182,127   170,167   150,318  
       

Operating income

        

Total operating income for reportable segments

  45,870   37,930   29,947  

Unallocated amounts:

       

Other income (expenses) income

  -   (166 )  6,755  

Financing income, net

  1,704   238   987  

Consolidated income before taxes on income

  47,574   38,002   37,689  
       

Assets

        

Total assets for reportable segments (*)

  78,930   82,297   84,004  

Other unallocated amounts:

       

Current assets

  57,159   61,530   48,512  

Investments in affiliated and other companies

  1,095   1,511   242  

Property and equipment, net

  7,786   8,644   9,187  

Other unallocated amounts

  7,367   6,560   5,394  

Consolidated total assets (at year end)

  152,337   160,542   147,339  
       

Other significant items

        

Total expenditures for assets of reportable segments

  13,172   12,576   7,713  

Unallocated amounts

  2,021   1,387   2,320  

Consolidated total expenditures for assets

  15,193   13,963   10,033  
       

Total depreciation, amortization and impairment for reportable segments

  9,990   14,338   11,601  

Unallocated amounts

  2,229   1,858   3,070  

Consolidated total depreciation and amortization

  12,219   16,196   14,671  

 

(*)
Including goodwill.

 

 
E.
Geographic information
 

Revenues

 
 

Year ended December 31,

 

(in thousands)

 

2014

 

2013

 

2012

 
       

Israel

 

90,061

 

83,331

 

70,595

 

United States

 

7,568

 

4,876

 

4,749

 

Brazil

 

66,462

 

63,454

 

58,242

 

Argentina

 

13,792

 

15,190

 

13,546

 

Others

 

4,244

 

3,316

 

3,186

 

Total

 

182,127

 

170,167

 

150,318

 

 

Property and equipment, net

 
 

December 31,

 

(in thousands)

 

2014

 

2013

 

2012

 
       

Israel

 

8,563

 

9,051

 

9,440

 

United States

 

120

 

155

 

146

 

Brazil

 

17,801

 

19,178

 

20,132

 

Argentina

 

5,424

 

4,162

 

4,438

 

Total

 

31,908

 

32,546

 

34,156

 

 

 
-
Revenues were attributed to countries based on customer location.
 
-
Property and equipment were classified based on major geographic areas in which the Company operates.

 

 
F.
Major customers

 

During 2014, 2013 and 2012 there were no sales exceeding 10% of total revenues to none of our customers.