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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2015
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION [Abstract] |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION |
NOTE 14:- | CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
The Group applies ASC 280, "Segment Reporting" ("ASC 280"). Segments are managed separately and can be described as follows: The Company's business is managed and reported as three separate reportable segments, comprised of the Company's named Commercial, Mobility and Services Divisions: Commercial Division - provides VSAT networks, satellite communication products, small cell solutions and associated professional services and comprehensive turnkey solutions. The Commercial Division's customers are: service providers, satellite operators, mobile network operators, telecommunication companies, and large enterprises worldwide. Mobility Division - provides on-the-Move/on-the-Pause satellite communication products and solutions to in flight connectivity (“IFC”) service providers, system integrators, defense and homeland security organizations, as well as to other commercial entities worldwide. The division provides solutions on land, sea and air. In addition, the division includes the operations of Wavestream, whose sales are primarily to IFC integrators as well as defense integrators. Services Division – provides managed network and services for rural broadband access through the Company's subsidiaries in Peru and Colombia. The Company's connectivity solutions have been implemented in large and national scale projects. Gilat's terrestrial and satellite networks provide Internet and telephony services to rural communities. The Company's turnkey solutions start with supplying network infrastructure, continue through, providing connectivity and include full network support and maintenance, as well as support for applications that run on the installed network. a. Information on the reportable segments: The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements which includes certain corporate overhead allocations. During 2014, the Company revised the measurement of each segment, due to a new allocation of corporate overhead that was based on new key performance indicators determined by Company's management as reviewed by the Chief Operating Decision Maker (“CODM”). Applying the same method of corporate overhead allocations used in 2014 to the results of the year ended December 31, 2013 would have resulted in an operating income (loss) of $ (2,292), $ (10,738) and $ 8,937 for the Commercial, Mobility and Services Divisions, respectively. 2. Financial data relating to reportable operating segments:
|  | Year ended December 31, 2015 |
|  | Commercial |  |  | Mobility |  |  | Services |  |  | Total |
Revenues |  |  | 100,935 |  |  |  | 41,112 |  |  |  | 55,496 |  |  |  | 197,543 |
Cost of Revenues |  |  | 63,425 |  |  |  | 30,715 |  |  |  | 49,178 |  |  |  | 143,318 |
Impairment of long lived assets |  |  | - |  |  |  | - |  |  |  | 10,137 |  |  |  | 10,137 |
Gross profit (loss) |  |  | 37,510 |  |  |  | 10,397 |  |  |  | (3,819) |  |  |  | 44,088 |
Research and development, net |  |  | 14,175 |  |  |  | 8,237 |  |  |  | - |  |  |  | 22,412 |
Selling and marketing |  |  | 16,839 |  |  |  | 6,947 |  |  |  | 1,037 |  |  |  | 24,823 |
General and administrative |  |  | 6,622 |  |  |  | 6,271 |  |  |  | 5,751 |  |  |  | 18,644 |
Restructuring costs |  |  | 1,078 |  |  |  | 421 |  |  |  | 9 |  |  |  | 1,508 |
Goodwill impairment |  |  | - |  |  |  | 20,402 |  |  |  | - |  |  |  | 20,402 |
Operating loss |  |  | (1,204) |  |  |  | (31,881) |  |  |  | (10,616) |  |  |  | (43,701) |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7,243) |
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (50,944) |
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,190 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (52,134) |
Loss from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (200) |
Loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (52,334) |
Depreciation and amortization expenses |  |  | 4,546 |  |  |  | 7,322 |  |  |  | 3,204 |  |  |  | 15,072 |
|  | Year ended December 31, 2014 |
|  | Commercial |  |  | Mobility |  |  | Services |  |  | Total |
Revenues |  |  | 130,306 |  |  |  | 54,817 |  |  |  | 50,010 |  |  |  | 235,133 |
Cost of Revenues |  |  | 77,587 |  |  |  | 37,023 |  |  |  | 36,888 |  |  |  | 151,498 |
Gross profit |  |  | 52,719 |  |  |  | 17,794 |  |  |  | 13,122 |  |  |  | 83,635 |
Research and development, net |  |  | 17,084 |  |  |  | 8,074 |  |  |  | - |  |  |  | 25,158 |
Selling and marketing |  |  | 23,401 |  |  |  | 7,809 |  |  |  | 1,327 |  |  |  | 32,537 |
General and administrative |  |  | 7,808 |  |  |  | 5,961 |  |  |  | 7,134 |  |  |  | 20,903 |
Operating income (loss) |  |  | 4,426 |  |  |  | (4,050 | ) |  |  | 4,661 |  |  |  | 5,037 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,837 | )
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,200 |
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,901 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (701 | )
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (795 | )
Loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1496 | )
Depreciation and amortization expenses |  |  | 4,885 |  |  |  | 8,220 |  |  |  | 2,846 |  |  |  | 15,951 |
|  | Year ended December 31, 2013 |
|  | Commercial |  |  | Mobility |  |  | Services |  |  | Total |
Revenues |  |  | 141,576 |  |  |  | 48,211 |  |  |  | 45,079 |  |  |  | 234,866 |
Cost of Revenues |  |  | 94,966 |  |  |  | 33,773 |  |  |  | 26,471 |  |  |  | 155,210 |
Gross profit |  |  | 46,610 |  |  |  | 14,438 |  |  |  | 18,608 |  |  |  | 79,656 |
Research and development. net |  |  | 17,200 |  |  |  | 10,700 |  |  |  | - |  |  |  | 27,900 |
Selling and marketing |  |  | 22,759 |  |  |  | 8,139 |  |  |  | 1,316 |  |  |  | 32,214 |
General and administrative |  |  | 9,973 |  |  |  | 7,744 |  |  |  | 5,354 |  |  |  | 23,071 |
Restructuring costs |  |  | 406 |  |  |  | 158 |  |  |  | - |  |  |  | 564 |
Operating income (loss) |  |  | (3,728 | ) |  |  | (12,303 | ) |  |  | 11,938 |  |  |  | (4,093 | )
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,239 | )
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (10,332 | )
Tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (755 | )
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (9,577 | )
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (8,320 | )
Loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (17,897 | )
Depreciation and amortization expenses |  |  | 4,996 |  |  |  | 8,469 |  |  |  | 4,094 |  |  |  | 17,559 |
b. Revenues by geographic areas: Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows:
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
South America and Central America |  | $ | 100,443 |  |  | $ | 110,825 |  |  | $ | 84,048 |
Asia and Asia Pacific |  |  | 47,843 |  |  |  | 51,983 |  |  |  | 91,616 |
North America |  |  | 28,242 |  |  |  | 41,951 |  |  |  | 26,155 |
Europe |  |  | 16,101 |  |  |  | 16,393 |  |  |  | 23,096 |
Africa |  |  | 4,914 |  |  |  | 13,981 |  |  |  | 9,951 |
|  | $ | 197,543 |  |  | $ | 235,133 |  |  | $ | 234,866 |
c. R evenues from a major Service Division customer located in Peru accounted for 11% of the total consolidated revenues for the year ended December 31, 2015. During 2014, the Group did not have any customer generating revenues exceeding 10% of the Group's total revenues. Revenues from a major Commercial Division customer located in Australia accounted for 21% of total consolidated revenues for the year ended December 31, 201 3. d. The Group's long-lived assets are located as follows: Property and Equipment, net:
|  | December 31, |
|  | 2015 |  |  | 2014 |
Israel |  | $ | 64,628 |  |  | $ | 66,457 |
Latin America |  |  | 4,524 |  |  |  | 11,932 |
United States |  |  | 1,721 |  |  |  | 1,999 |
Europe |  |  | 9,987 |  |  |  | 9,486 |
Other |  |  | 1,103 |  |  |  | 1,019 |
|  | $ | 81,963 |  |  | $ | 90,893 |
| *) | In addition, as of December 31, 2014, the Company had other long-lived assets in Latin America in the amount of $11,834, which are presented as “Other Long-Term Receivables” in the balance sheet. These assets, along with property and equipment related to the Company's project in Colombia, were fully impaired during the year ended December 31, 2015 (see note 1c).

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