SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE 18 -  SEGMENT INFORMATION

a.Segment Activities Disclosure:

TAT operates under three segments: (i) Original Equipment Manufacturing or “OEM” of Heat Management Solutions (ii) Heat Transfer Services and Products and (iii) Maintenance, Repair and Overhaul or “MRO” services for Aviation Components.

-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 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.

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. Closing of the transaction took place on March 27, 2014 after receiving all required approvals to consummate the closing. (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, 2014
	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	$	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		22,205		23,502		-		(5,330)		63,626
Gross profit		4,936		8,145		4,232				(213)		17,100
Research and development		841		229		-		-		-		1,070
Selling and marketing		1,538		1,058		607		-		-		3,203
General and administrative		2,717		3,313		2,989		-		-		9,019
Other income		(11)		-		-		-		-		(11)
Operating income (loss)		(149)		3,545		636				(213)		3,819
Financial expense, net		-		-		-		(1,294)		-		(1,294)
Income before taxes on income											$	2,525

	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 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		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	$	27,944	$	27,529	$	22,442	$	-	$	-	$	77,915
Intersegment revenues		3,088		180		-		-		(3,268)		-
Total revenues		31,032		27,709		22,442		-		(3,268)		77,915
Cost of revenues		23,105		19,671		19,044		-		(3,281)		58,539
Gross profit		7,927		8,038		3,398		-		13		19,376
Research and development		581		414		-		-		-		995
Selling and marketing		1,476		1,049		374		-		-		2,899
General and administrative		3,530		3,270		3,310		-		-		10,110
Other income		(13)		-		-		-		-		(13)
Operating income (loss)		2,353		3,305		(286)		-		13		5,385
Financial expense, net		-		-		-		(106)		-		(106)
Income before taxes on income											$	5,279

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

	Year ended December 31, 2014
	OEM of Heat Management Solutions		Heat Transfer Services and Products		MRO services for Aviation Components		Amounts not allocated to segments		Consolidated
Assets	$	33,072	$	28,917	$	23,044	$	16,435	$	101,468
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 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 (*)		1,032		664		1,134		-		2,830

	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
Depreciation and amortization (*)		974		-		735		197		-		1,906
Expenditure for segment assets (*)		1,047		-		756		344		-		2,147

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