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SEGMENT REPORTING
 12 Months Ended
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