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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2015
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 16 -
SEGMENT INFORMATION

 

 
a.
Segment Activities Disclosure:

 

TAT operates under four segments: (i) Original Equipment Manufacturing or “OEM” of Heat Transfer Solutions and Aviation Components (ii) Heat Transfer Services and Products and (iii) Maintenance, Repair and Overhaul or “MRO” services for Aviation Components in the area of landing gears and APUs (iv) overhaul and coating of jet engine components.

 

-OEM of Heat Transfer Solutions and Aviation Components primarily includes the design, development, manufacture and sale of (i) a broad range of heat transfer products (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 include 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 include 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.

-      TAT's activities in the area of jet engine overhaul includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components (see note 3) . This operating segment started operating in 2015 with the Turbochrom acquisition. See note 3.


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.

 

 
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, 2015
 

OEM of Heat 

Transfer Solutions 

and Aviation 

Components

  

Heat Transfer

Services and

Products

  

MRO services

for Aviation

Components

      

Overhaul and

coating of jet

engine components 

     Other    

Elimination of

inter-company

sales

    

Consolidated
                                  

Revenues

                                  

Sale of products and services

  $ 23,511     $ 30,526     $ 29,665     $  1,905             $ -    
85,607

Intersegment revenues

  3,840     475     -       -              (4,315 )    -

Total revenues

  27,351     31,001     29,665       1,905             (4,315 )    85,607
                                 

Cost of revenues

  23,,887     22,541     28,474       1,485             (4,445 )    71,942

Gross profit

  3,464     8,460     1,191       420             130     13,665
                                 

Research and development

  619     264     -       7             -     890

Selling and marketing

  1,270     961     608       64             -     2,903

General and administrative

  1,880     3,000     3,303       286             -     8,469

Other expenses

  
   
   
     
      631    
     631

Gain on bargain purchase

    

   
     
     
      (4,833 )    
      (4,833)

Operating income (loss)

  (305 )    4,235     (2,720 )      63       (4,202 )   130     5,605

 

Year ended December 31, 2014

OEM of Heat 

Transfer Solutions 

and Aviation 

Components

Heat Transfer

Services and

Products

MRO services

for Aviation

Components

Elimination of

inter-company

sales

 Consolidated


Revenues

Sale of products and services


$ 22,871     $ 30,121     $ 27,734     $ -     $ 80,726

Intersegment revenues


5,314     229     -     (5,543 )    -

Total revenues


28,185     30,350     27,734     (5,543 )    80,726

               

Cost of revenues


23,249     23,101     23,502     (5,330 )    64,522

Gross profit


4,936     7,249     4,232     (213 )    16,204

               

Research and development


841     229     -     -     1,070

Selling and marketing


1,538     1,058     607     -     3,203

General and administrative


2,717     2,417     2,989     -     8,123

Other income


(11 )    -     -     -     (11)

Operating income (loss)


(149 )    3,545     636     (213 )    3,819

 

Year ended December 31, 2013
 

OEM of Heat 

Transfer Solutions and Aviation 

Components

  

Heat Transfer

Services and

Products

    

MRO services

for Aviation

Components

    

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   22,464     19,224     (4,086 )  61,743

Gross profit

  6,997   7,443     3,205     163   17,808
             

Research and development

  415   298     -     -   713

Selling and marketing

  1,520   1,145     485     -   3,150

General and administrative

  3,158   2,249     3,261     -   8,668

Other income

  (20 )  -     -     -   (20)

Operating income (loss)

  1,924  

3,751

     (541 )    163   5,297

 

 
c.
The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments:

             


Year ended December 31, 2015
 

OEM of Heat Tansfer Solutions 

and Aviation 

Components

  

Heat Transfer

Services and

Products

    

MRO services

for Aviation

Components

    

Overhaul and

coating of jet

engine components

    

Amounts not

allocated to

segments

    

Consolidated
                            

Total assets

  
29,440  
28,400    
24,170       11,635    
15,938    
109,583

Depreciation and amortization

   1,127     789     669       196         2,781

Expenditure for segment assets

   1,075     1,400     821       51         3,347

 

Year ended December 31, 2014
 

OEM of Heat

Transfer Solutions

and Aviation 

Components

  

Heat Transfer
Services and
Products

    

MRO services for
Aviation
Components

    

Amounts not
allocated to

segments

    

Consolidated
                     

Total assets

   $ 32,808   $ 26,889     $ 23,044     $ 16,435     $ 99,176

Depreciation and amortization

  1,027     675     367     -     2,069

Expenditure for segment assets 

   1,126     810     539     -     2,475

 

Year ended December 31, 2013
 

OEM of Heat 
Transfer Solutions
and Aviation Components

  

Heat Transfer Services and Products

    

MRO services for
Aviation Components

    

Amounts not allocated to segments

    

Consolidated
                       

Depreciation and amortization (*)

  991   603     265     -     1,859

Expenditure for segment assets (*)

  1,032     664     1,134     -     2,830

 

(*)
Excluding discontinued operations for the year ended on December 31, 2013.