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.

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 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.

	US dollars
(in thousands)	Location based services		Wireless communications products		Total

Six month period ended June 30, 2018 (unaudited)
Revenues		87,189		33,605		120,794
Operating income		29,433		898		30,331
Expenditures for assets		6,802		282		7,084
Depreciation and amortization		4,517		218		4,735

Six month period ended June 30, 2017 (unaudited)
Revenues		81,437		32,010		113,447
Operating income		25,487		2,482		27,969
Expenditures for assets		2,846		250		3,096
Depreciation and amortization		4,847		133		4,980

As of June 30, 2018 (unaudited)
Assets	77,364	17,666	95,030
Goodwill	1,645	1,942	3,587

As of December 31, 2017
Assets	95,384	17,192	112,576
Goodwill	1,732	2,045	3,777

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, 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.

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

	US dollars
	Six month period ended June 30,
(in thousands)	2018		2017
	(unaudited)
Total revenues of reportable segment and consolidated revenues		120,794		113,447

Operating income
Total operating income for reportable segments		30,331		27,969
Unallocated amounts:
Financing income, net		568		841
Consolidated income before taxes on income		30,899		28,810

	US dollars
	Six month period ended June 30,
(in thousands)	2018		2017
	(unaudited)
Other significant items
Total expenditures for assets of reportable segments		7,084		3,096
Unallocated amounts		2,717		3,159
Consolidated total expenditures for assets		9,801		6,255

Total depreciation and amortization for reportable segments		4,735		4,980
Unallocated amounts		1,954		1,487
Consolidated total depreciation and amortization		6,689		6,467

	US dollars
	June 30,		December 31,
(in thousands)	2018		2017
	(unaudited)
Assets
Total assets for reportable segments (*)		98,617		116,353
Other unallocated amounts:
Current assets		68,350		59,412
Investments in affiliated and other companies		15,960		16,221
Property and equipment, net		15,005		15,092
Other unallocated amounts		9,236		8,081
Consolidated total assets (at period end)		207,168		215,159

	Revenues
	US dollars
	Six month period ended June 30,
(in thousands)	2018		2017
	(unaudited)
Israel		62,410		56,859
United States		4,184		4,040
Brazil		45,198		42,333
Argentina		6,307		7,906
Others		2,695		2,309
Total		120,794		113,447

	Property and equipment, net
	US dollars
	June 30,		December 31,
(in thousands)	2018		2017
	(unaudited)
Israel		16,580		16,757
United States		169		118
Brazil		17,813		17,969
Argentina		2,670		4,203
Total		37,232		39,047

During the six month periods ended June 30, 2018 and 2017, there were no sales exceeding 10% of total revenues to any of the Company's customers.