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GOODWILL
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL
NOTE 10
 -
 GOODWILL

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows:
 
   
US dollars
  
   
Telematics
services
    
Telematics products
    
Total
  
(in thousands)
      
Balance as of January 1, 2018
    
1,732
      
2,045
      
3,777
  
Changes during 2018:
                        
Acquisition of subsidiary (See Note 3)
    
53,584
      
5,818
      
59,402
  
Translation differences
    
(247
)
    
(36
)
    
(283
)
Balance as of December 31, 2018 (*)
    
55,069
      
7,827
      
62,896
  
Changes during 2019:
                        
Reimbursement (***)
    
(733
)
    
(80
)
    
(813
)
Impairment (**)
    
(11,088
)
    
(1,204
)
    
(12,292
)
Translation differences
    
135
      
160
      
295
  
Balance as of December 31, 2019 (*)
    
43,383
      
6,703
      
50,086
  


(*)
The accumulated amount of goodwill impairment loss as of December 31, 2019, and 2018 was US$ 19.4 million and US$ 7.1million, respectively.
 

 (**)
As a result of the circumstances described in note 9 the company recorded a goodwill impairment in the total amount of US$ 12.3 million in connection with two reporting units (both units related to Road track operations, see Note 3). One reporting unit within the Telematics services and the other reporting unit within the Telematics product's segments. The impairment was based on valuation performed by the management using the assistance of a third party appraiser in accordance with the income approach. The significant assumptions used for the assessment were discount rate of 14.9% and a long-term growth rate of 0.5%.


(***)
During 2019, the company received an indemnification in an amount of US$ 0.8 million related to the acquisition described in note 3. The amount was charged to the balance of goodwill.

See also Note 1N.