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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2021
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 ("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 the Company's Chief Operating Decision Maker (the Company's Co-Chief Executive Officers), since the marketing strategies, processes and expected long term financial performances of the segments are different. 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. F - 43 ITURAN LOCATION AND CONTROL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.) NOTE 18 - SEGMENT REPORTING (cont.) B. Information about reported segment profit or loss and assets:
|  | US dollars |
(in thousands) |  | Telematics services |  |  | Telematics products |  |  | Total |
Year ended December 31, 2021 |  |  |  |  |  |  |  |  |
Revenues |  |  | 189,649 |  |  |  | 81,235 |  |  |  | 270,884 |
Operating income |  |  | 48,072 |  |  |  | 6,543 |  |  |  | 54,615 |
Assets |  |  | 79,535 |  |  |  | 38,312 |  |  |  | 117,847 |
Goodwill |  |  | 34,216 |  |  |  | 5,783 |  |  |  | 39,999 |
Expenditures for assets |  |  | 9,057 |  |  |  | 1,053 |  |  |  | 10,110 |
Depreciation and amortization |  |  | 11,411 |  |  |  | 2,142 |  |  |  | 13,553 |
Year ended December 31, 2020 |  |  |  |  |  |  |  |  |
Revenues |  |  | 182,944 |  |  |  | 62,683 |  |  |  | 245,627 |
Operating income (loss) |  |  | 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 (loss) |  |  | 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 |
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. F - 44 ITURAN LOCATION AND CONTROL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.) NOTE 18 - SEGMENT REPORTING (cont.) 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) |  | 2021 |  |  | 2020 |  |  | 2019 |
Total revenues of reportable segment and consolidated revenues |  |  | 270,884 |  |  |  | 245,627 |  |  |  | 279,332 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |
Total operating income for reportable segments |  |  | 54,615 |  |  |  | 27,831 |  |  |  | 22,654 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |
Financing income, net |  |  | (5,538 | ) |  |  | 1,480 |  |  |  | 576 |
Other expense, net |  |  | (109 | ) |  |  | (272 | ) |  |  | (26 | )
Consolidated income before taxes on income |  |  | 48,968 |  |  |  | 29,039 |  |  |  | 23,204 |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Total assets for reportable segments (*) |  |  | 157,846 |  |  |  | 152,226 |  |  |  | 196,561 |
Other unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  | 93,244 |  |  |  | 117,295 |  |  |  | 88,777 |
Investments in affiliated and other companies |  |  | 2,751 |  |  |  | 2,171 |  |  |  | 4,926 |
Property and equipment, net |  |  | 15,783 |  |  |  | 17,180 |  |  |  | 20,877 |
Other unallocated amounts |  |  | 23,397 |  |  |  | 23,600 |  |  |  | 28,094 |
Consolidated total assets (at year end) |  |  | 293,021 |  |  |  | 312,472 |  |  |  | 339,235 |
Other significant items |  |  |  |  |  |  |  |  |  |  |  |
Total expenditures for assets of reportable segments |  |  | 10,110 |  |  |  | 7,258 |  |  |  | 12,940 |
Unallocated amounts |  |  | 6,516 |  |  |  | 2,976 |  |  |  | 5,359 |
Consolidated total expenditures for assets |  |  | 16,626 |  |  |  | 10,234 |  |  |  | 18,299 |
Total depreciation, amortization and impairment for reportable segments |  |  | 13,553 |  |  |  | 28,648 |  |  |  | 43,308 |
Unallocated amounts |  |  | 4,543 |  |  |  | 4,352 |  |  |  | 5,689 |
Consolidated total depreciation, amortization and impairment |  |  | 18,096 |  |  |  | 33,000 |  |  |  | 48,997 |
(*) Including goodwill. F - 45 ITURAN LOCATION AND CONTROL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.) NOTE 18 - SEGMENT REPORTING (cont.) E. Geographic information
|  | Revenues |
|  | Year ended December 31, |
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Israel |  |  | 140,569 |  |  |  | 120,515 |  |  |  | 110,102 |
Brazil |  |  | 57,764 |  |  |  | 61,470 |  |  |  | 98,020 |
Others |  |  | 72,551 |  |  |  | 63,642 |  |  |  | 71,210 |
Total |  |  | 270,884 |  |  |  | 245,627 |  |  |  | 279,332 |
|  | Property and equipment, net |
|  | December 31, |
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Israel |  |  | 14,524 |  |  |  | 13,784 |  |  |  | 14,967 |
Brazil |  |  | 13,617 |  |  |  | 14,462 |  |  |  | 21,218 |
Others |  |  | 7,511 |  |  |  | 9,407 |  |  |  | 9,715 |
Total |  |  | 35,652 |  |  |  | 37,653 |  |  |  | 45,900 |
- 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 2019, the Company had one costumer (global world vehicles manufacturer) which represent 15.8% of the Company's total sales. During 2020, and 2021 there were no sales exceeding 10% of total revenues to none of the Company 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, 2020 and 2021:
|  | US dollars
|  | Reportable segments result of operations
(in thousands) |  | Year ended December 31, 2020 |  |  | Year ended December 31, 2021 |
|  | Telematics services |  |  | Telematics products |  |  | Total |  |  | Telematics services |  |  | Telematics products |  |  | Total |
At a point of time |  |  | - |  |  |  | 60,953 |  |  |  | 60,953 |  |  |  | - |  |  |  | 78,947 |  |  |  | 78,947 |
Over a period of time |  |  | 182,944 |  |  |  | 1,730 |  |  |  | 184,674 |  |  |  | 189,649 |  |  |  | 2,288 |  |  |  | 191,937 |
|  |  | 182,944 |  |  |  | 62,683 |  |  |  | 245,627 |  |  |  | 189,649 |  |  |  | 81,235 |  |  |  | 270,884 |
F - 46 ITURAN LOCATION AND CONTROL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.) NOTE 18 - SEGMENT REPORTING (cont.) G.Major product lines and timing of revenue recognition (cont.) In the following table, revenue is disaggregated by primary major product lines, and timing of revenue recognition for the year ended December 31, 2019:
|  | US dollars |
|  | Reportable segments result of operations |
(in thousands) |  | Year ended December 31, 2019 |
|  | Telematics services |  |  | Telematics products |  |  | Total |
At a point of time |  | - |  |  | 72,626 |  |  | 72,626 |
Over a period of time |  | 204,728 |  |  | 1,978 |  |  | 206,706 |
|  | 204,728 |  |  | 74,604 |  |  | 279,332 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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