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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2013
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 18 -
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.

 
-
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. 

On February 18, 2014 TAT entered into an agreement to sell its entire interest in Bental, the OEM of Electric Motion Systems operating segment, constituting 70% of Bental's issued and outstanding share capital (for additional information see note 4).

 

 
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, 2013
  
   
OEM of Heat Management Solutions
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Elimination of inter-company sales
    
Consolidated
  
                                     
Revenues
                                    
Sale of products and services
   $ 27,326     $ 29,796     $ 22,429     $ -     $ -     $ 79,551  
Intersegment revenues
     3,812       111       -       -       (3,923 )     -  
Total revenues
     31,138       29,907       22,429       -       (3,923 )     79,551  
                                                 
Cost of revenues
     24,141       21,600       19,224       -       (4,086 )     60,879  
Gross profit
     6,997       8,307       3,205       -       163       18,672  
                                                 
Research and development
     415       298       -       -       -       713  
Selling and marketing
     1,520       1,145       485       -       -       3,150  
General and administrative
     3,158       3,093       3,261       -       -       9,512  
Other expense (income)
     (20 )     -       -       -       -       (20 )
Operating income (loss)
     1,924       3,771       (541 )     -       163       5,317  
                                                 
Financial expense, net
     -       -       -       (50 )     -       (50 )
Income before taxes on income
                                           $ 5,267  

 

   
Year ended December 31, 2012
  
   
OEM of Heat Management Solutions
    
OEM of Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Elimination of inter-company sales
    
Adjustment to the consolidated financial statements
    
Consolidated
  
                                                 
Revenues
                                                
Sale of products and services
   $ 27,944     $ 10,008     $ 27,529     $ 22,442     $ -     $ -     $ (10,008 )   $ 77,915  
Intersegment revenues
     3,088       -       180       -       -       (3,268 )     -       -  
Total revenues
     31,032       10,008       27,709       22,442       -       (3,268 )     (10,008 )     77,915  
                                                                 
Cost of revenues
     23,105       8,043       19,671       19,044       -       (3,281 )     (8,043 )     58,539  
Gross profit
     7,927       1,965       8,038       3,398       -       13       (1,965 )     19,376  
                                                                 
Research and development
     581       157       414       -       -       -       (157 )     995  
Selling and marketing
     1,476       527       1,049       374       -       -       (527 )     2,899  
General and administrative
     3,530       1,377       3,270       3,310       -       -       (1,377 )     10,110  
Other expense (income)
     (13 )     21       -       -       -       -       (21 )     (13 )
Operating income (loss)
     2,353       (117 )     3,305       (286 )     -       13       117       5,385  
                                                                 
Financial expense, net
     -       -       -       -       (106 )     -       -       (106 )
Income before taxes on income
                                                           $ 5,279  

 
 
   
Year ended December 31, 2011
  
   
OEM of Heat Management Solutions
    
OEM of Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Elimination of inter-company sales
    
Adjustment to the consolidated financial statements
    
Consolidated
  
                                                 
Revenues
                                                
Sale of products and services
   $ 25,993     $ 11,658     $ 27,600     $ 20,146     $ -     $ -     $ (11,658 )   $ 73,739  
Intersegment revenues
     4,027       -       3       -       -       (4,030 )     -       -  
Total revenues
     30,020       11,658       27,603       20,146       -       (4,030 )     (11,658 )     73,739  
                                                                 
Cost of revenues
     22,662       9,388       20,173       17,882       -       (4,009 )     (9,388 )     56,708  
Write down of inventory and impairment charges of  long lived assets
     -       -       -       5,465       -       -       -       5,465  
Gross profit
     7,358       2,270       7,430       (3,201 )     -       (21 )     (2,270 )     11,566  
                                                                 
Research and development
     455       331       -       -       -       -       (331 )     455  
Selling and marketing
     1,202       619       1,026       591       -       -       (619 )     2,819  
General and administrative
     3,789       1,499       3,035       2,626       -       -       (1,499 )     9,450  
Other expense (income)
     (190 )     21       -       -       -       -       (21 )     (190 )
Operating income (loss)
     2,102       (200 )     3,369       (6,418 )     -       (21 )     200       (968 )
                                                                 
Financial expense, net
     -       -       -       -       (420 )     -       -       (420 )
Income before taxes on income
                                                           $ (1,388 )

 

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

   
Year ended December 31, 2013
  
   
OEM of Heat Management Solutions
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Consolidated
  
                               
Assets
   $ 45,518     $ 28,806     $ 18,137     $ 16,419     $ 108,880  
Depreciation and amortization (*)
     991       603       265       -       1,859  
Expenditure for segment assets (*)
     992       664       584       -       2,240  
 
   
Year ended December 31, 2012
  
   
OEM of Heat Management Solutions
    
OEM of Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Assets
   $ 34,315     $ 12,707     $ 27,093     $ 18,473     $ 16,354     $ 108,942  
Depreciation and amortization (*)
     974       -       735       197       -       1,906  
Expenditure for segment assets (*)
     1,047       -       756       344       -       2,147  
 
   
Year ended December 31, 2011
  
   
OEM of Heat Management Solutions
    
OEM of Electric Motion Systems
    
Heat Transfer Services and Products
    
MRO services for Aviation Components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Assets
   $ 34,055     $ 13,941     $ 27,464     $ 21,068     $ 19,783     $ 116,311  
Depreciation and amortization (*)
     1,139       -       758       721       -       2,618  
Expenditure for segment assets (*)
     924       -       638       1,391       -       2,953  
Goodwill
     -       1,042       -       -       -       1,042  

 (*) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011.