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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2021
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 - 58 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 operating segments: 1.The measurement of the reportable operating segments is based on the same accounting principles applied in these consolidated financial statements which includes certain corporate overhead allocations. 2.Financial information relating to reportable operating segments:
|  | Year ended December 31, 2021 |
|  | Fixed Networks |  |  | Mobility Solutions |  |  | Terrestrial Infrastructure Projects |  |  | Unallocated |  | Total |
Revenues |  | $ | 114,398 |  |  | $ | 77,614 |  |  | $ | 22,958 |  |  | $ | - |  | $ | 214,970 |
Cost of revenues |  |  | 72,885 |  |  |  | 45,665 |  |  |  | 25,153 |  |  |  | - |  |  | 143,703 |
Gross profit (loss) |  |  | 41,513 |  |  |  | 31,949 |  |  |  | (2,195 | ) |  |  | - |  |  | 71,267 |
Research and development, net |  |  | 9,943 |  |  |  | 21,393 |  |  |  | - |  |  |  | - |  |  | 31,336 |
Selling and marketing |  |  | 15,305 |  |  |  | 6,169 |  |  |  | 38 |  |  |  | - |  |  | 21,512 |
General and administrative |  |  | 8,943 |  |  |  | 5,059 |  |  |  | 1,585 |  |  |  | - |  |  | 15,587 |
Impairment of held for sale asset |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 651 |  |  | 651 |
Operating income (loss) |  |  | 7,322 |  |  |  | (672 | ) |  |  | (3,818 | ) |  |  | (651 | ) |  | 2,181 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,722 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 459 |
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,492 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (3,033 | )
Depreciation and amortization expenses |  | $ | 5,740 |  |  | $ | 5,138 |  |  | $ | 113 |  |  | $ | - |  | $ | 10,991 |
F - 59 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, 2020 |
|  | Fixed Networks |  |  | Mobility Solutions |  |  | Terrestrial Infrastructure Projects |  |  | Unallocated |  |  | Total |
|  | As Restated (1) |  |  |  |  |  | As Restated (1) |  |  |  |  |  | As Restated (1) |
Revenues |  | $ | 92,496 |  |  | $ | 54,169 |  |  | $ | 19,470 |  |  | $ | - |  |  | $ | 166,135 |
Cost of revenues |  |  | 61,939 |  |  |  | 37,728 |  |  |  | 25,088 |  |  |  | - |  |  |  | 124,755 |
Gross profit (loss) |  |  | 30,557 |  |  |  | 16,441 |  |  |  | (5,618 | ) |  |  | - |  |  |  | 41,380 |
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) |  |  | 2,299 |  |  |  | (10,962 | ) |  |  | (7,194 | ) |  |  | 53,633 |  |  |  | 37,776 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,907 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35,869 |
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 793 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 35,076 |
Depreciation and amortization expenses |  | $ | 5,953 |  |  | $ | 4,259 |  |  | $ | 79 |  |  | $ | - |  |  | $ | 10,291 |
|  | Year ended December 31, 2019 |
|  | Fixed Networks |  |  | Mobility Solutions |  |  | Terrestrial Infrastructure Projects |  |  |  | Unallocated |  | Total |
|  | As Restated (1) |  |  |  |  |  | As Restated (1) |  |  |  |  |  | As Restated (1) |
Revenues |  | $ | 127,142 |  |  | $ | 104,665 |  |  | $ | 25,527 |  |  | $ | - |  |  | $ | 257,334 |
Cost of revenues |  |  | 80,038 |  |  |  | 53,263 |  |  |  | 27,836 |  |  |  | - |  |  |  | 161,137 |
Gross profit (loss) |  |  | 47,104 |  |  |  | 51,402 |  |  |  | (2,309 | ) |  |  | - |  |  |  | 96,197 |
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) |  |  | 9,951 |  |  |  | 19,738 |  |  |  | (3,679 | ) |  |  | (118 | ) |  |  | 25,892 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,617 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 23,275 |
Tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13,583 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 36,858 |
Depreciation and amortization expenses |  | $ | 7,032 |  |  | $ | 3,871 |  |  | $ | 75 |  |  | $ | - |  |  | $ | 10,978 |
(1) The Company restated previously issued consolidated financial statements. See Note 2 and Note 17 for additional information. F - 60 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, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  |  |  |  | As Restated (1) |
Latin America *) |  | $ | 70,421 |  |  | $ | 58,872 |  |  | $ | 75,464 |
Asia Pacific |  |  | 45,512 |  |  |  | 25,265 |  |  |  | 44,181 |
United States and Canada |  |  | 71,468 |  |  |  | 59,819 |  |  |  | 107,520 |
Europe, the Middle East and Africa **) |  |  | 27,569 |  |  |  | 22,179 |  |  |  | 30,169 |
|  | $ | 214,970 |  |  | $ | 166,135 |  |  | $ | 257,334 |
*)Revenues attributed to Peru in 2021 amounted to $ 49,511. **)Revenues attributed to Israel in 2021 amounted to $ 5,923. (1) The Company restated previously issued consolidated financial statements. See Note 2 and Note 17 for additional information. c.The Company's long-lived assets (property and equipment, net and operating lease right-of-use assets) are located as follows:
|  | December 31, |
|  | 2021 |  |  | 2020 |
Israel |  | $ | 58,435 |  |  | $ | 59,554 |
Latin America |  |  | 5,518 |  |  |  | 3,657 |
United States |  |  | 8,448 |  |  |  | 8,737 |
Europe |  |  | 3,179 |  |  |  | 8,593 |
Other |  |  | 1,289 |  |  |  | 1,510 |
|  | $ | 76,869 |  |  | $ | 82,051 |
d.The table below represents the revenues from major customers and their segments:
|  | Year ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  |  |  |  |  |  | As Restated (1) |
Customer A – Terrestrial and Fixed |  |  | 19 | % |  |  | 20 | % |  |  | 14 | %
Customer D – Mobility |  |  | 12 | % |  |  | * | ) |  |  | * | )
Customer B – Mobility |  |  | * | ) |  |  | 11 | % |  |  | 13 | %
Customer C – Mobility |  |  | * | ) |  |  | * | ) |  |  | 11 | %
*)Less than 10% Customer A is located in Peru, Customers B, C and D are located in the United States. (1) The Company restated previously issued consolidated financial statements. See Note 2 and Note 17 for additional information. F - 61 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.) e.Commencing in the first quarter of 2022, in order to reflect the Company’s new management’s approach in the management of the Company’s operations, organizational alignment, customer base and end markets, the Company  operates in three new operating segments, as follows: • Satellite Networks is focused on the development and supply of networks that are used as the platform that enables the latest satellite constellations of HTS, VHTS and NGSO opportunities worldwide. The Segment provides advanced broadband satellite communication networks and associated professional services and comprehensive turnkey solutions and managed satellite network services solutions. Segment’s customers are service providers, satellite operators, MNOs, Telcos, large enterprises, system integrators, defense, homeland security organizations and governments worldwide. Principal applications include In-Flight-Connectivity, cellular backhaul, maritime, social inclusion solutions, government, defense and enterprise networks and are driving meaningful partnerships with satellite operators to leverage Segment’s technology and breadth of services to deploy and operate the ground-based satellite communication networks. Segment’s product portfolio includes a leading satellite network platform with high-speed VSATs, high performance on-the-move antennas, BUCs and transceivers. • Integrated Solutions is focused on the development, manufacturing and supply of products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems and solutions, including airborne, ground-mobile satellite systems and solutions. The Segment product portfolio comprises of leading high-efficiency, high-power SSPAs, BUCs and transceivers with a field-proven, high-performance variety of frequency bands. The segment’s customers are satellite operators, In-Flight Connectivity service providers, defense and homeland security system integrators, and NGSO gateway integrators. • Network Infrastructure and Services is focused on telecom operation and implementation of large-scale networks projects in Peru. The Segment provides terrestrial (fiber optic and wireless network) and satellite network construction and operation. The Segment serves customers through technology integration, managed networks and services, connectivity services, internet access and telephony over the Segment’s networks. The Segment implements projects using various technologies (including the Company’s equipment), mainly based on BOT and BOO contracts. The Company is still evaluating whether the change in its operating segments, as described above, affects goodwill assignment to reporting units.

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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