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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 20 -      SEGMENT REPORTING

A. General information:

The operations of the Group (including the companies the company acquired control over on September 2018 as describe in notes 3) are conducted through two different core activities: Location based services ("Telematics services") and Wireless communications products ("Telematics 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.

F - 46

ITURAN LOCATION AND CONTROL LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)

NOTE 20 -      SEGMENT REPORTING (cont.)

A. General information (cont.):

Telematics services:

The telematics services segment consists predominantly of regionally- based stolen vehicle recovery (SVR) services, fleet management services and value-added services that include among others, connected car, UBI (usage base insurance), personal advanced locater services and concierge services.

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

Telematics products:

The telematics product segment consists mainly 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)

Telematics services

Telematics products

Total

 

Year ended December 31, 2020

Revenues

182,944

62,683

245,627

Operating income

28,666

(835

)

27,831

Assets

89,939

22,425

112,364

Goodwill

34,152

5,710

39,862

Expenditures for assets

6,116

1,142

7,258

Depreciation and amortization

12,471

2,008

14,479

Impairment of goodwill

9,479

1,029

10,508

Impairment of intangible assets

1,869

1,792

3,661

Year ended December 31, 2019

Revenues

204,728

74,604

279,332

Operating income

26,092

(3,438

)

22,654

Assets

118,361

28,114

146,475

Goodwill

43,383

6,703

50,086

Expenditures for assets

11,050

1,890

12,940

Depreciation and amortization

14,671

2,483

17,154

Impairment of goodwill

11,088

1,204

12,292

Impairment of intangible assets

10,914

2,948

13,862

Year ended December 31, 2018

Revenues

181,357

71,978

253,335

Operating income

56,913

5,465

62,378

Assets

101,305

36,355

137,660

Goodwill

55,069

7,827

62,896

Expenditures for assets

15,677

537

16,214

Depreciation and amortization

8,630

486

9,116

F - 47

ITURAN LOCATION AND CONTROL LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)

NOTE 20 -      SEGMENT REPORTING (cont.)

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)

2020

2019

2018

 

Total revenues of reportable segment and consolidated revenues

245,627

279,332

253,335

 

Operating income

Total operating income for reportable segments

27,831

22,654

62,378

Unallocated amounts:

Financing income, net

1,480

576

717

Other income, net

(272

)

(26

)

13,138

Consolidated income before taxes on income

29,039

23,204

76,233

 

Assets

Total assets for reportable segments (*)

152,226

196,561

200,556

Other unallocated amounts:

Current assets

117,295

88,777

103,994

Investments in affiliated and other companies

2,171

4,926

7,644

Property and equipment, net

17,180

20,877

20,074

Other unallocated amounts

23,600

28,094

41,524

Consolidated total assets (at year end)

312,472

339,235

373,792

 

Other significant items

Total expenditures for assets of reportable segments

7,258

12,940

16,214

Unallocated amounts

2,976

5,359

5,168

Consolidated total expenditures for assets

10,234

18,299

21,382

 

Total depreciation, amortization and impairment for reportable segments

28,648

43,308

9,116

Unallocated amounts

4,352

5,689

5,492

Consolidated total depreciation, amortization and impairment

33,000

48,997

14,608

(*) Including goodwill.

F - 48

ITURAN LOCATION AND CONTROL LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)

NOTE 20 -      SEGMENT REPORTING (cont.)

E. Geographic information

Revenues

Year ended December 31,

(in thousands)

2020

2019

2018

 

Israel

120,515

110,102

116,186

Brazil

61,470

98,020

90,842

Others

63,642

71,210

46,307

Total

245,627

279,332

253,335

Property and equipment, net

December 31,

(in thousands)

2020

2019

2018

 

Israel

13,784

14,967

16,478

Brazil

14,462

21,218

24,562

Others

9,407

9,715

9,420

Total

37,653

45,900

50,460

- 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 2018, there were no sales exceeding 10% of total revenues to none of our customers.

During 2019, we had one costumer (global world vehicles manufacturer) which represent 15.8% of our total sales.

During 2020, there were no sales exceeding 10% of total revenues to none of our customers.

G.Major product lines and timing of revenue recognition

In the following table, revenue is disaggregated by primary major product lines, and timing of revenue recognition for the years ended December 31, 2019 and 2020:

US dollars

Reportable segments result of operations

(in thousands)

Year ended December 31, 2019

Year ended December 31, 2020

Telematics services

Telematics products

Total

Telematics services

Telematics products

Total

At a point of time

-

72,626

72,626

-

60,953

60,953

Over a period of time

204,728

1,978

206,706

182,944

1,730

184,674

204,728

74,604

279,332

182,944

62,683

245,627