Annual report pursuant to Section 13 and 15(d)

NOTE 16: - SEGMENT INFORMATION

v2.4.1.9
NOTE 16: - SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 16:–                      SEGMENT INFORMATION

a.                 General:

The Company operates in two continuing business segments (see Note 1.a. for a brief description of the Company’s business).

The Company’s reportable segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on two primary factors: the segment’s operating income and the segment’s contribution to the Company’s future strategic growth.

b.                 The following is information about reportable segment gains, losses and assets:

   
Training and
Simulation
Division
   
Power Systems
Division
   
Corporate
Expenses
   
Discontinued
operations
   
Total
Company
 
2014
                             
Revenues from outside customers
 
$
56,404,498
   
$
47,157,851
   
$
   
$
   
$
103,562,349
 
Depreciation and amortization expenses (1)
   
(756,939
)
   
(3,477,855
)
   
(20,452
)
   
     
(4,255,246
)
Direct expenses (2)
   
(45,313,956
)
   
(41,089,191
)
   
(6,839,636
)
   
     
(93,242,783
)
Segment net income (loss)
   
10,333,603
     
2,590,805
     
(6,860,088
)
   
     
6,064,320
 
Financial expense
   
(50,975
)
   
(215,453
)
   
(1,287,094
)
   
     
(1,553,522
)
Income tax (expense) benefit
   
(133,692
)
   
61,777
     
(951,922
)
   
     
(1,023,837
)
Net income (loss)
 
$
10,148,936
   
$
2,437,129
   
$
(9,099,104
)
 
$
   
$
3,486,961
 
Segment assets
 
$
58,090,953
   
$
65,781,686
   
$
866,708
   
$
   
$
124,739,347
 
Additions to long-lived assets (3)
 
$
1,533,371
   
$
29,159,805
   
$
13,344
   
$
   
$
30,706,520
 

2013
                             
Revenues from outside customers
 
$
63,425,319
   
$
25,146,109
   
$
   
$
   
$
88,571,428
 
Depreciation and amortization expenses (1)
   
(988,893
)
   
(1,272,399
)
   
(26,259
)
   
     
(2,287,551
)
Direct expenses (2)
   
(53,143,411
)
   
(23,665,489
)
   
(5,649,015
)
   
     
(82,457,915
)
Segment net income (loss)
   
9,293,015
     
208,221
     
(5,675,274
)
   
     
3,825,962
 
Financial expense
   
(44,146
)
   
(30,733
)
   
(424,393
)
   
     
(499,272
)
Income tax expense
   
(319,225
)
   
(134,995
)
   
(598,500
)
   
     
(1,052,720
)
Net income (loss) – continuing operations
   
8,929,644
     
42,493
     
(6,698,167
)
   
     
2,273,970
 
Net loss – discontinued operations
   
     
     
     
(121,619
)
   
(121,619
)
Net income (loss)
 
$
8,929,644
   
$
42,493
   
$
(6,698,167
)
 
$
(121,619
)
 
$
2,152,351
 
Segment assets
 
$
53,424,900
   
$
26,346,840
   
$
882,902
   
$
   
$
80,654,642
 
Additions to long-lived assets
 
$
409,805
   
$
1,294,980
   
$
   
$
   
$
1,704,785
 

(1)
Includes depreciation of property and equipment and amortization expenses of intangible assets.

(2)
Including, inter alia, sales and marketing, general and administrative, research and development and other income.

(3)
Includes intangible assets and all other long lived assets associated with the acquisition of UEC.

c.                 Summary information about geographic areas:

The following discloses total revenues according to the locations of the Company’s end customers and long-lived assets as of and for the years ended December 31, 2014 and 2013:

   
2014
   
2013
 
   
Total
revenues
   
Long-lived
assets
   
Total
revenues
   
Long-lived
assets
 
U.S.A.
 
$
83,739,406
   
$
55,970,370
   
$
73,973,996
   
$
28,506,630
 
Israel
   
11,428,427
     
7,755,163
     
9,109,921
     
8,504,224
 
Saudi Arabia
   
2,469,988
     
     
424,444
     
 
Korea
   
1,994,634
     
     
51,920
     
 
Germany
   
1,117,094
     
     
372,446
     
 
Canada
   
651,846
     
     
790,363
     
 
U.A.E.
   
518,634
     
     
     
 
Australia
   
459,153
     
     
     
 
China
   
305,800
     
     
203,563
     
 
Hong Kong
   
48,331
     
     
1,460,000
     
 
India
   
14,865
     
     
325,782
     
 
Mexico
   
2,300
     
     
94,595
     
 
Greece
   
     
     
249,500
     
 
Taiwan
   
     
     
231,267
     
 
Slovenia
   
     
     
191,163
     
 
Other
   
811,871
     
     
1,092,468
     
 
   
$
103,562,349
   
$
63,725,533
   
$
88,571,428
   
$
37,010,854
 

d.                 Revenues from major customers (as a percentage of consolidated revenues):

Other than for sales to various branches of the United States Military, which accounted for 56% and 55% of consolidated continuing revenues for 2014 and 2013, respectively, no single customer accounted for more than 10% of revenues for either year.

e.                 Revenues from major products:

   
Year ended December 31,
 
   
2014
   
2013
 
Simulators
 
$
56,404,498
   
$
63,425,319
 
Batteries and charging systems
   
42,930,497
     
21,073,942
 
Water activated batteries
   
4,227,354
     
4,072,167
 
Total
 
$
103,562,349
   
$
88,571,428