RESTRUCTURING COST

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

NOTE 9 -

RESTRUCTURING COST

In 2022, the Company completed the restructuring plan announced in 2021, pursuant to which, the Company transferred its operations from its leased facility in Gedera to its facilities in Tulsa, Oklahoma and Kiryat Gat.

This transfer enables TAT to concentrate on heat exchanges activity in the United States allowing for better operational flow, getting closer to TAT’s customer base, and cutting fixed costs.

The restructuring plan has a material impact on the Company's financial statements for the year 2022 and 2021 as follows:

Restructuring Items	December 31, 2022		December 31, 2021
Balance sheet
Other Provisions	$	190	$	657
Investment in building and infrastructures		4,571		2,382
Investment in machinery (**)		7,799		3,478
Total	$	12,560	$	6,517
Profit and loss
Restructuring expenses, net
Forfeited guarantee	$	975	$	-
Employee’s termination cost		-		686
Restructuring income from lease modification		-		(1,315	)
Restructuring expenses from asset’s impairment		-		1,800
Other restructuring expenses		740		584
	$	1,715	$	1,755
Cost of sales
Acceleration of assets depreciation expenses		-	$	1,200
Total	$	1,715	$	2,955

* Net cash used in operating activity for restructuring expenses in 2022 was $1.7 million.

** Investment in machinery was offset by a grant of $2.7 million ($1.2 and $1.5 million in 2021 and 2022 respectively) received from the State of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years.