CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

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.