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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2015
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.

 

 
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, 2015

        

Revenues

  127,683   47,945   175,628  

Operating income

   38,328   2,316   40,644  

Assets

  62,236   10,463   72,699  

Goodwill

  1,539   1,817   3,356  

Expenditures for assets

  14,478   393   14,871  

Depreciation and amortization

  8,636   152   8,788  

Impairment of goodwill and intangible assets

  -   929   929  

Year ended December 31, 2014

        

Revenues

  133,692   48,435   182,127  

Operating income (loss)

   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

   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  

 

 
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)

  

2015

  

2014

 

2013

 
       

Total revenues of reportable segment and consolidated revenues

   175,628   182,127   170,167  
       

Operating income

        

Total operating income for reportable segments

  40,644   45,870   37,930  

Unallocated amounts:

       

Other income (expenses) income

  -   -   (166 ) 

Financing income, net

  1,189   1,704   238  

Consolidated income before taxes on income

  41,833   47,574   38,002  
       

Assets

        

Total assets for reportable segments (*)

  76,055   78,930   82,297  

Other unallocated amounts:

       

Current assets

  46,119   57,159   61,530  

Investments in affiliated and other companies

  4,783   1,095   1,511  

Property and equipment, net

  8,730   7,786   8,644  

Other unallocated amounts

  6,316   7,367   6,560  

Consolidated total assets (at year end)

  142,003   152,337   160,542  
       

Other significant items

        

Total expenditures for assets of reportable segments

  14,871   13,172   12,576  

Unallocated amounts

  3,676   2,021   1,387  

Consolidated total expenditures for assets

  18,547   15,193   13,963  
       

Total depreciation, amortization and impairment for reportable segments

  9,717   9,990   14,338  

Unallocated amounts

  2,245   2,229   1,858  

Consolidated total depreciation and amortization

  11,962   12,219   16,196  

 

(*)
Including goodwill.

 

 
E.
Geographic information

 

 

Revenues

 
 

Year ended December 31,

 

(in thousands)

 

2015

 

2014

 

2013

 
       

Israel

 

88,556

 

90,061

 

83,331

 

United States

 

7,811

 

7,568

 

4,876

 

Brazil

 

58,403

 

66,462

 

63,454

 

Argentina

 

17,324

 

13,792

 

15,190

 

Others

 

3,534

 

4,244

 

3,316

 

Total

 

175,628

 

182,127

 

170,167

 

 

Property and equipment, net

 
 

December 31,

 

(in thousands)

 

2015

 

2014

 

2013

 
       

Israel

 

9,934

 

8,563

 

9,051

 

United States

 

73

 

120

 

155

 

Brazil

 

17,228

 

17,801

 

19,178

 

Argentina

 

4,279

 

5,424

 

4,162

 

Total

 

31,514

 

31,908

 

32,546

 

 

 
-
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 2015, 2014 and 2013 there were no sales exceeding 10% of total revenues to none of our customers.