CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

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:

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. 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)
Lossbefore 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.      Revenues 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 December31, 2013.

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).