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SEGMENT INFORMATION (TAT Technologies Ltd [Member])
 12 Months Ended
Dec. 31, 2011
TAT Technologies Ltd [Member]
  
SEGMENT INFORMATION
NOTE 17 -
SEGMENT INFORMATION

 
a.
Segment Activities Disclosure:

TAT operates under four segments: (i) Original Equipment Manufacturing or "OEM" of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or "MRO" services for Aviation Components and (iv) OEM of Electric Motion Systems. Until December 31, 2010, TAT operated under three segments. As of January 1, 2011, TAT began reporting its operations based on four operating segments, after dividing its MRO Services operating segment into two separate segments: Heat Transfer Services and Products; and MRO services for Aviation Components. Accordingly, the revenues and costs reported for the year ended December 31, 2010 and 2009 for MRO Services operating segment were divided between these two new operating segments. Additionally, the operating segment name of 'OEM of Heat Transfer Products' was changed to 'OEM of Heat Management Solutions'.

 
-
OEM of Heat Management Solutions primarily includes the design, development, manufacture and sale of (i) a broad range of heat transfer components (such as heat exchangers, pre-coolers and oil/fuel hydraulic coolers) used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.

 
-
Heat Transfer Services and Products primarily includes the maintenance, repair and overhaul of heat transfer equipment and in a lesser extent, the manufacturing of certain heat transfer products. TAT's Limco subsidiary operates an FAA certified repair station, which provides heat transfer MRO services and products for airlines, air cargo carriers, maintenance service centers and the military.

 
-
MRO services for Aviation Components primarily includes the maintenance, repair and overhaul of APUs, landing gear and other aircraft components. TAT's Piedmont subsidiary operates an FAA certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

 
-
OEM of Electric Motion Systems primarily includes the design, development, manufacture and sale of a broad range of electrical motor applications for airborne and ground systems.

The Group's chief operating decision-maker (CEO of the Company) evaluates performance, makes operating decisions and allocates resources based on financial data consistent with the presentation in the accompanying financial statements.

TAT evaluates segment performance based on revenue and operating income.  The operating income reported in TAT's segments excludes other unallocated amounts.  Although such amounts are excluded from the business segment results, they are included in reported consolidated earnings.  Unallocated amounts include executive level expenses and certain expenses related to accounting and finance, human resources and information technology departments.

During 2005 through December 1, 2009, TAT managed also another segment - the Parts segment, which focused on sales of parts of APU's, propellers, landing gears and other aviation components. This segment was transferred as a part of the transaction mentioned in note 3(b).

The OEM of electrical motion systems segment was added with the consolidation of Bental, following its acquisition on August 18, 2008.

 
b.
Segments statement operations disclosure:

The following financial information is the information that management uses for analyzing the segment results. The figures are presented in consolidated method as presented to management.

The following financial information is a summary of the operating income of each operational segment:

   
Year ended December 31, 2011
  
   
OEM of Heat Management Solutions
    
OEM - Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Elimination from inter companies sale
    
Consolidated
  
                                           
Revenues
                                          
Sale of products and services
   $ 25,993     $ 11,658     $ 27,600     $ 20,146     $ -     $ -     $ 85,397  
Intersegment revenues
     4,027       -       3       -       -       (4,030 )     -  
Total revenues
     30,020       11,658       27,603       20,146       -       (4,030 )     85,397  
                                                         
Cost of revenues
     22,660       9,388       20,173       17,882       -       (3,884 )     66,219  
Write down of inventory and impairment charges of  long lived assets
     -       298       -       5,465       -       -       5,763  
Gross profit
     7,360       1,972       7,430       (3,201 )     -       (146 )     13,415  
                                                         
Research and development expenses
     455       331       -       -       -       -       786  
Selling and marketing expenses
     1,203       619       1,026       591       -       -       3,439  
General and administrative expenses
     3,787       1,501       2,574       2,029       1,058       -       10,949  
Other expense (income)
     (190 )     21       -       -       -       -       (169 )
Operating income (loss)
     2,105       (500 )     3,830       (5,821 )     (1,058 )     (146 )     (1,590 )
                                                         
Financial expense, net
     -       -       -       -       (380 )     -       (380 )
Loss before income taxes
                                                   $ (1,970 )

   
Year ended December 31, 2010
  
   
OEM of Heat Management Solutions
    
OEM - Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Elimination from inter companies sale
    
Consolidated
  
                                           
Revenues
                                          
Sale of products and services
   $ 26,012     $ 13,046     $ 24,365     $ 16,332     $ -     $ -     $ 79,755  
Intersegment revenues
     3,639       -       104       -       -       (3,743 )     -  
Total revenues
     29,651       13,046       24,469       16,332       -       (3,743 )     79,755  
                                                         
Cost of revenues
     22,425       10,092       18,005       14,631       -       (3,965 )     61,188  
Write down of inventory
     -       -       -       3,500       -       -       3,500  
Gross profit
     7,226       2,954       6,464       (1,799 )     -       222       15,067  
                                                         
Research and development expenses
     274       377       -       -       -       -       651  
Selling and marketing expenses
     1,186       526       1,014       749       -       -       3,475  
General and administrative expenses
     3,598       1,572       2,049       4,413       1,200       -       12,832  
Impairment of goodwill and intangible assets
     -       -       456       4,248       -       -       4,704  
Operating income (loss)
     2,168       479       2,945       (11,209 )     (1,200 )     222       (6,595 )
                                                         
Financial expense, net
     -       -       -       -       (111 )     -       (111 )
Other expenses
     -       -       -       -       (200 )     -       (200 )
Loss before income taxes
                                                   $ (6,906 )

   
Year ended December 31, 2009
  
   
OEM of Heat Management Solutions
    
OEM - Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Parts (*)
    
Amounts not allocated to segments
    
Eliminaetion from inter companies sale
    
Consolidated
  
                                                 
Revenues
                                                
Sale of products and services
   $ 24,090     $ 11,321     $ 16,835     $ 24,788     $ 6,057     $ -     $ -     $ 83,091  
Intersegment revenues
     4,527       -       660       -       -       -       (5,187 )     -  
Total revenues
     28,617       11,321       17,495       24,788       6,057       -       (5,187 )     83,091  
                                                                 
Cost of revenues
     19,809       8,021       20,173       17,727       5,879       -       (4,714 )     66,895  
Gross profit
     8,808       3,300       (2,678 )     7,061       178       -       (473 )     16,196  
                                                                 
Research and development expenses
     408       272       -       -       -       -       -       680  
Selling and marketing expenses
     1,063       629       441       1,227       359       -       -       3,719  
General and administrative expenses
     3,767       1,176       2,417       3,779       516       3,324       -       14,979  
Capital gain
     -       -       -       (4,400 )     -       -       -       (4,400 )
Operating income (loss)
     3,570       1,223       (5,536 )     6,455       (697 )     (3,324 )     (473 )     1,218  
                                                                 
Financial income, net
     -       -       -       -       -       149       -       149  
Loss before income taxes
                                                           $ 1,367  
 
 
(*)
For the period of January 1, 2009 through November 30, 2009.

 
c.
The following financial information identifies the assets to segment:

   
As of December 31, 2011
  
   
OEM of Heat Management Solutions
    
OEM - Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Assets
   $ 33,984     $ 12,890     $ 26,654     $ 20,380     $ 19,783     $ 113,691  
Depreciation and amortization
     1,137       653       756       721       -       3,267  
Expenditure for segment assets
     924       352       638       1,391       -       3,305  
Goodwill
     -       1,042       -       -       -       1,042  
 
   
As of December 31, 2010
  
   
OEM of Heat Management Solutions
    
OEM - Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Assets
   $ 36,949     $ 17,501     $ 21,559     $ 23,588     $ 21,830     $ 121,427  
Depreciation and amortization
     1,220       671       704       787       -       3,382  
Expenditure for segment assets
     739       826       625       896       -       3,086  
Goodwill
     -       1,156       -       -       -       1,156  
 
   
As of December 31, 2009
  
   
OEM of Heat Management Solutions
    
OEM - Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Assets
   $ 38,354     $ 13,888     $ 17,998     $ 33,222     $ 21,029     $ 124,491  
Depreciation and amortization
     1,050       507       756       657       -       2,970  
Expenditure for segment assets
     846       960       563       2,489       -       4,858  
Goodwill
     -       1,055       456       3,800       -       5,311