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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 18   -   SEGMENT REPORTING
 
  A.
General information:
 
The operations of the Company 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 Company.
 
The reportable segments are viewed and evaluated separately by 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 Company 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, 2022
                  
Revenues
    
209,558
      
83,514
      
293,072
  
Operating income
    
56,287
      
2,487
      
58,774
  
Assets
    
97,244
      
35,436
      
132,680
  
Goodwill
    
33,990
      
5,520
      
39,510
  
Expenditures for assets
    
18,705
      
1,320
      
20,025
  
Depreciation and amortization
    
12,679
      
1,959
      
14,638
  
                         
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
    
34,215
      
5,784
      
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
  
 
  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)
  
2022
    
2021
    
2020
  
                   
Total revenues of reportable segment and consolidated revenues
    
293,072
      
270,884
      
245,627
  
                         
Operating income
                        
Total operating income for reportable segments
    
58,774
      
54,615
      
27,831
  
Unallocated amounts:
                        
Financing income, net
    
(5,944
)
    
(5,538
)
    
1,480
  
Other expense, net
    
-
      
(109
)
    
(272
)
Consolidated income before taxes on income
    
52,830
      
48,968
      
29,039
  
                         
Assets
                        
Total assets for reportable segments (*)
    
172,190
      
157,846
      
152,226
  
Other unallocated amounts:
                        
Current assets
    
72,190
      
93,244
      
117,295
  
Investments in affiliated and other companies
    
2,967
      
2,751
      
2,171
  
Property and equipment, net
    
14,795
      
15,783
      
17,180
  
Other unallocated amounts
    
28,785
      
23,397
      
23,600
  
Consolidated total assets (at year end)
    
290,927
      
293,021
      
312,472
  
                         
Other significant items
                        
Total expenditures for assets of reportable segments
    
20,025
      
10,110
      
7,258
  
Unallocated amounts
    
6,480
      
6,516
      
2,976
  
Consolidated total expenditures for assets
    
26,505
      
16,626
      
10,234
  
                         
Total depreciation, amortization and impairment for reportable segments
    
14,638
      
13,553
      
28,648
  
Unallocated amounts
    
5,496
      
4,543
      
4,352
  
Consolidated total depreciation, amortization and impairment
    
20,134
      
18,096
      
33,000
  
 
  (*)
Including goodwill.

 

 

E.

Geographic information
   

Revenues

  
   

Year ended December 31,

  

(in thousands)

  

2022

    

2021

    

2020

  

 

                        

Israel

    

150,423

      

140,569

      

120,515

  

Brazil

    

69,091

      

57,764

      

61,470

  

Others

    

73,558

      

72,551

      

63,642

  

Total

    

293,072

      

270,884

      

245,627

  
   

Property and equipment, net

  
   

December 31,

  

(in thousands)

  

2022

    

2021

    

2020

  

 

                        

Israel

    

13,138

      

14,524

      

13,784

  

Brazil

    

23,488

      

13,617

      

14,462

  

Others

    

8,972

      

7,511

      

9,407

  

Total

    

45,598

      

35,652

      

37,653

  

 

  - 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 2020, 2021 and 2022 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, 2021 and 2022:

   

US dollars

  
   

Reportable segments result of operations

(in thousands)

  

Year ended December 31, 2021

    

Year ended December 31, 2022

  
   

Telematics

services

    

Telematics

products

    

Total

    

Telematics

services

    

Telematics

products

    

Total

  

At a point of time

    

-

      

78,947

      

78,947

      

-

      

81,342

      

81,342

  

Over a period of time

    

189,649

      

2,288

      

191,937

      

209,558

      

2,172

      

211,730

  
     

189,649

      

81,235

      

270,884

      

209,558

      

83,514

      

293,072

  

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

     

US dollars

  
   

Reportable segments result of operations

  

(in thousands)

  

Year ended December 31, 2020

  
   

Telematics

services

    

Telematics

products

    

Total

  

At a point of time

    

-

      

60,953

      

60,953

  

Over a period of time

    

182,944

      

1,730

      

184,674

  
     

182,944

      

62,683

      

245,627