XML 38 R23.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2017
Segment Reporting [Abstract] |
SEGMENT INFORMATION |
NOTE 15 - | SEGMENT INFORMATION
TAT does not intend to distribute tax-exempt earnings deriving from its Approved Enterprise aggregating approximately $1,936 as of December 31, 2017, and accordingly, no deferred tax liability has been established related to these earnings. If such tax-exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such profits (23%) and an income tax liability of up to approximately $445 would be incurred as of December 31, 2017.
| a. | Segment Activities Disclosure:
TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary.
| - | OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
| - | MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.
| - | MRO services for aviation components include the MRO of APUs, landing gears 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 overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps (see note 3). This operating segment started operating in 2015 with the Turbochrome 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. CODM reviews revenue, gross profit, operating income and the following assets: Cash, accounts receivable and inventory.
| 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, 2017 |
|  | OEM of Heat Transfer Solutions and Aviation Accessories |  |  | MRO Services for heat transfer components and OEM of heat transfer solutions |  |  | MRO services for Aviation Components |  |  | Overhaul and coating of jet engine components |  |  | Elimination of inter-company sales |  |  | Consolidated |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sale of products and services |  | $ | 27,898 |  |  | $ | 34,615 |  |  | $ | 33,009 |  |  | $ | 11,005 |  |  | $ | - |  |  | $ | 106,527 |
Intersegment revenues |  |  | 3,339 |  |  |  | 197 |  |  |  | - |  |  |  | - |  |  |  | (3,536 | ) |  |  | - |
Total revenues |  |  | 31,237 |  |  |  | 34,812 |  |  |  | 33,009 |  |  |  | 11,005 |  |  |  | (3,536 | ) |  |  | 106,527 |
Cost of revenues |  |  | 25,535 |  |  |  | 26,085 |  |  |  | 29,026 |  |  |  | 9,057 |  |  |  | (3,620 | ) |  |  | 86,083 |
Gross profit |  |  | 5,702 |  |  |  | 8,727 |  |  |  | 3,983 |  |  |  | 1,948 |  |  |  | 84 |  |  |  | 20,444 |
Research and development |  |  | 398 |  |  |  | 169 |  |  |  |  |  |  |  | 164 |  |  |  | - |  |  |  | 731 |
Selling and marketing |  |  | 1,968 |  |  |  | 1,358 |  |  |  | 1,213 |  |  |  | 435 |  |  |  | - |  |  |  | 4,974 |
General and administrative |  |  | 2,072 |  |  |  | 3,182 |  |  |  | 3,049 |  |  |  | 1,106 |  |  |  | - |  |  |  | 9,409 |
Other expenses |  |  | - |  |  |  | - |  |  |  | 53 |  |  |  | - |  |  |  | - |  |  |  | 53 |
Operating income (loss) |  | $ | 1,264 |  |  | $ | 4,018 |  |  | $ | (332 | ) |  | $ | 243 |  |  | $ | 84 |  |  | $ | 5,277 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 338 |
Income before taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,939 |
|  | Year ended December 31, 2016 |
|  | OEM of Heat Transfer Solutions and Aviation Accessories |  |  | MRO Services for heat transfer components and OEM of heat transfer solutions |  |  | 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 |  | $ | 23,515 |  |  | $ | 31,440 |  |  | $ | 31,630 |  |  | $ | 9,209 |  |  | $ | - |  |  | $ | - |  |  | $ | 95,794 |
Intersegment revenues |  |  | 4,740 |  |  |  | 989 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (5,729 | ) |  |  | - |
Total revenues |  |  | 28,255 |  |  |  | 32,429 |  |  |  | 31,630 |  |  |  | 9,209 |  |  |  |  |  |  |  | (5,729 | ) |  |  | 95,794 |
Cost of revenues |  |  | 24,028 |  |  |  | 23,440 |  |  |  | 27,423 |  |  |  | 7,610 |  |  |  | - |  |  |  | (5,744 | ) |  |  | 76,757 |
Gross profit |  |  | 4,227 |  |  |  | 8,989 |  |  |  | 4,207 |  |  |  | 1,599 |  |  |  | - |  |  |  | 15 |  |  |  | 19,037 |
Research and development |  |  | 758 |  |  |  | 210 |  |  |  | 29 |  |  |  | 143 |  |  |  | - |  |  |  | - |  |  |  | 1,140 |
Selling and marketing |  |  | 1,544 |  |  |  | 1,105 |  |  |  | 792 |  |  |  | 435 |  |  |  | - |  |  |  | - |  |  |  | 3,876 |
General and administrative |  |  | 2,539 |  |  |  | 2,915 |  |  |  | 3,473 |  |  |  | 1,096 |  |  |  | - |  |  |  | - |  |  |  | 10,023 |
Other expenses (income) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (138 | ) |  |  | - |  |  |  | (138 | )
Operating income (loss) |  | $ | (614 | ) |  | $ | 4,759 |  |  | $ | (87 | ) |  | $ | (75 | ) |  | $ | 138 |  |  | $ | 15 |  |  | $ | 4,136 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 154 |
Income before taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,982 |
|  | Year ended December 31, 2015 |
|  | OEM of Heat Transfer Solutions and Aviation Accessories |  |  | MRO Services for heat transfer components and OEM of heat transfer solutions |  |  | 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 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 349 |
Income before taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,256 |
| c. | The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments:
|  | Year ended December 31, 2017 |
|  | OEM of Heat Transfer Solutions and Aviation Accessories |  |  | MRO Services for heat transfer components and OEM of heat transfer solutions |  |  | MRO services for Aviation Components |  |  | Overhaul and coating of jet engine components |  |  | Amounts not allocated to segments |  |  | Consolidated |
Total assets |  |  | 29,411 |  |  |  | 35,067 |  |  |  | 27,276 |  |  |  | 11,915 |  |  |  | 8,326 |  |  |  | 111,995 |
Depreciation and amortization |  |  | 1,299 |  |  |  | 1,029 |  |  |  | 653 |  |  |  | 960 |  |  |  |  |  |  |  | 3,941 |
Expenditure for segment assets |  |  | 1,769 |  |  |  | 866 |  |  |  | 847 |  |  |  | 402 |  |  |  |  |  |  |  | 3,884 |
|  | Year ended December 31, 2016 |
|  | OEM of Heat Transfer Solutions and Aviation Accessories |  |  | MRO Services for heat transfer components and OEM of heat transfer solutions |  |  | MRO services for Aviation Components |  |  | Overhaul and coating of jet engine components |  |  | Amounts not allocated to segments |  |  | Consolidated |
Total assets |  |  | 28,885 |  |  |  | 34,729 |  |  |  | 27,246 |  |  |  | 11,616 |  |  |  | 9,500 |  |  |  | 111,976 |
Depreciation and amortization |  |  | 1,199 |  |  |  | 898 |  |  |  | 542 |  |  |  | 997 |  |  |  | - |  |  |  | 3,636 |
Expenditure for segment assets |  |  | 1,437 |  |  |  | 1,266 |  |  |  | 2,686 |  |  |  | 505 |  |  |  | - |  |  |  | 5,894 |
|  | Year ended December 31, 2015 |  |  |  |  |
|  | OEM of Heat Transfer Solutions and Aviation Accessories |  |  | MRO Services for heat transfer components and OEM of heat transfer solutions |  |  | MRO services for Aviation C omponents |  |  | Overhaul and coating of jet engine components |  |  | Consolidated |  |  |  |  |
Depreciation and amortization |  |  | 1,127 |  |  |  | 789 |  |  |  | 669 |  |  |  | 196 |  |  |  | 2,781 |  |  |  |  |
Expenditure for segment assets |  |  | 1,075 |  |  |  | 1,400 |  |  |  | 821 |  |  |  | 51 |  |  |  | 3,347 |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration