SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 15 - SEGMENT INFORMATION

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 exchangersand oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems onboard 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.

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, 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

	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

	Year ended December 31, 2014
	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		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

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

	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 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 Accessories		MRO Services for heat transfer components and OEM of heat transfer solutions		MRO services for Aviation Components		Amounts not allocated to segments		Consolidated
Depreciation and amortization		1,027		675		367		-		2,069
Expenditure for segment assets		1,126		810		539		-		2,475