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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION The Company applies ASC 280, "Segment Reporting" ("ASC 280"). Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker. Segments are managed separately as follows: Fixed Networks provides advanced fixed broadband satellite communication networks, satellite communication systems and associated professional services and comprehensive turnkey solutions and fully managed satellite network services solutions. The Company’s customers are service providers, satellite operators, mobile network operators, or MNOs, telecommunication companies, or Telco, large enterprises and governments worldwide. In addition, it includes the Company’s network operation and managed networks and services in Peru. Mobility Solutions provides advanced on-the-move satellite communications equipment, systems and solutions, including airborne, maritime and ground-mobile satellite systems and solutions. This segment provides solutions for land, sea and air connectivity, while placing major focus on the high-growth market of IFC, with the Company’s unique leading technology as well as defense and homeland security activities. Terrestrial Infrastructure Projects includes the Company's construction of fiber and wireless network in Peru. F - 52 GILAT SATELLITE NETWORKS LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (cont.) a.Information on the reportable segments: 1.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. 2.Financial data relating to reportable operating segments:
|  | Year ended December 31, 2020 |
|  | Fixed Networks |  |  | Mobility Solutions |  |  | Terrestrial Infrastructure Projects |  |  | Unallocated |  |  | Total |
Revenues |  | $ | 92,671 |  |  | $ | 54,169 |  |  | $ | 19,045 |  |  | $ | - |  |  | $ | 165,885 |
Cost of revenues |  |  | 61,939 |  |  |  | 37,728 |  |  |  | 25,003 |  |  |  | - |  |  |  | 124,670 |
Gross profit (loss) |  |  | 30,732 |  |  |  | 16,441 |  |  |  | (5,958 | ) |  |  | - |  |  |  | 41,215 |
Research and development, net |  |  | 7,350 |  |  |  | 18,953 |  |  |  | - |  |  |  | - |  |  |  | 26,303 |
Selling and marketing |  |  | 12,388 |  |  |  | 4,448 |  |  |  | 35 |  |  |  | - |  |  |  | 16,871 |
General and administrative |  |  | 8,520 |  |  |  | 4,002 |  |  |  | 1,541 |  |  |  | - |  |  |  | 14,063 |
Merger, acquisition and related litigation income, net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (53,633 | ) |  |  | (53,633 | )
Operating income (loss) |  |  | 2,474 |  |  |  | (10,962 | ) |  |  | (7,534 | ) |  |  | 53,633 |  |  |  | 37,611 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,907 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35,704 |
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 793 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 34,911 |
Depreciation and amortization expenses |  | $ | 5,953 |  |  | $ | 4,259 |  |  | $ | 79 |  |  | $ | - |  |  | $ | 10,291 |
F - 53 GILAT SATELLITE NETWORKS LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Cont.)
|  | Year ended December 31, 2019 |
|  | Fixed Networks |  |  | Mobility Solutions |  |  | Terrestrial Infrastructure Projects |  |  |  | Unallocated |  | Total |
Revenues |  | $ | 127,265 |  |  | $ | 104,665 |  |  | $ | 31,562 |  |  | $ | - |  |  | $ | 263,492 |
Cost of revenues |  |  | 80,038 |  |  |  | 53,263 |  |  |  | 34,314 |  |  |  | - |  |  |  | 167,615 |
Gross profit (loss) |  |  | 47,227 |  |  |  | 51,402 |  |  |  | (2,752 | ) |  |  | - |  |  |  | 95,877 |
Research and development, net |  |  | 10,919 |  |  |  | 19,265 |  |  |  | - |  |  |  | - |  |  |  | 30,184 |
Selling and marketing |  |  | 14,955 |  |  |  | 6,485 |  |  |  | 48 |  |  |  | - |  |  |  | 21,488 |
General and administrative |  |  | 11,279 |  |  |  | 5,914 |  |  |  | 1,322 |  |  |  | - |  |  |  | 18,515 |
Merger, acquisition and related litigation expenses, net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 118 |  |  |  | 118 |
Operating income (loss) |  |  | 10,074 |  |  |  | 19,738 |  |  |  | (4,122 | ) |  |  | (118 | ) |  |  | 25,572 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,617 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22,955 |
Taxes on income (benefit) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13,583 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 36,538 |
Depreciation and amortization expenses |  | $ | 7,032 |  |  | $ | 3,871 |  |  | $ | 75 |  |  | $ | - |  |  | $ | 10,978 |
|  | Year ended December 31, 2018 |
|  | Fixed Networks |  |  | Mobility Solutions |  |  | Terrestrial Infrastructure Projects |  |  | Total |
Revenues |  | $ | 144,208 |  |  | $ | 97,180 |  |  | $ | 25,003 |  |  | $ | 266,391 |
Cost of revenues |  |  | 93,745 |  |  |  | 47,995 |  |  |  | 30,614 |  |  |  | 172,354 |
Gross profit (loss) |  |  | 50,463 |  |  |  | 49,185 |  |  |  | (5,611 | ) |  |  | 94,037 |
Research and development, net |  |  | 11,764 |  |  |  | 21,259 |  |  |  | - |  |  |  | 33,023 |
Selling and marketing |  |  | 16,106 |  |  |  | 6,421 |  |  |  | 179 |  |  |  | 22,706 |
General and administrative |  |  | 11,302 |  |  |  | 4,436 |  |  |  | 1,286 |  |  |  | 17,024 |
Operating income (loss) |  |  | 11,291 |  |  |  | 17,069 |  |  |  | (7,076 | ) |  |  | 21,284 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,298 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16,986 |
Taxes on income (benefit) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,423 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 18,409 |
Depreciation and amortization expenses |  | $ | 6,811 |  |  | $ | 6,128 |  |  | $ | 210 |  |  | $ | 13,149 |
F - 54 GILAT SATELLITE NETWORKS LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Cont.) b.Geographic information: 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, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Latin America |  | $ | 58,622 |  |  | $ | 81,622 |  |  | $ | 94,707 |
Asia Pacific |  |  | 25,265 |  |  |  | 44,181 |  |  |  | 39,381 |
North America |  |  | 59,819 |  |  |  | 107,520 |  |  |  | 97,122 |
Europe, the Middle East and Africa |  |  | 22,179 |  |  |  | 30,169 |  |  |  | 35,181 |
|  | $ | 165,885 |  |  | $ | 263,492 |  |  | $ | 266,391 |
c.The Company's long-lived assets (property and equipment, net and operating lease right-of-use asset) are located as follows:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Israel |  | $ | 59,554 |  |  | $ | 62,897 |
Latin America |  |  | 3,657 |  |  |  | 5,878 |
United States |  |  | 8,737 |  |  |  | 7,820 |
Europe |  |  | 8,593 |  |  |  | 9,500 |
Other |  |  | 1,510 |  |  |  | 1,700 |
|  | $ | 82,051 |  |  | $ | 87,795 |
d.The table below represents the revenues from major customers:
|  | Year ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Customer A |  |  | 20 | % |  |  | 16 | % |  |  | 10 | %
Customer B |  |  | 11 | % |  |  | 12 | % |  |  | 15 | %
Customer C |  |  | * | ) |  |  | 11 | % |  |  | * | )
Customer D |  |  | - |  |  |  | * | ) |  |  | 13 | %
*)Less than 10% Customer A is located in Peru, Customers B and C are located in North America and Customer D is located in Colombia.

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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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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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