XML 45 R23.htm IDEA: XBRL DOCUMENT v3.20.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 16 -
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 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.

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, 2019
  
   
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
  
$
20,552
    
$
34,183
    
$
38,687
    
$
8,610
    
$
-
    
$
102,032
  
Intersegment revenues
    
6,037
      
250
      
-
      
-
      
(6,287
)
    
-
  
Total revenues
    
26,589
      
34,433
      
38,687
      
8,610
      
(6,287
)
    
102,032
  
                                                 
Cost of revenues
    
23,998
      
27,852
      
33,337
      
7,751
      
(6,468
)
    
86,470
  
Gross profit
    
2,591
      
6,581
      
5,350
      
859
      
181
      
15,562
  
                                                 
Research and development
    
58
      
83
      
7
      
(74
)
    
-
      
74
  
Selling and marketing
    
1,530
      
1,638
      
1,334
      
757
      
-
      
5,259
  
General and administrative
    
1,978
      
2,734
      
2,408
      
1,131
      
-
      
8,251
  
                                                 
Operating income (loss)
  
$
(975
)
  
$
2,126
    
$
1,601
    
$
(955
)
  
$
181
    
$
1,978
  
Financial expenses, net
                                            
451
  
Income before taxes on income
                                            
1,527
  

   
Year ended December 31, 2018
  
   
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
  
$
20,065
    
$
30,929
    
$
32,487
    
$
9,697
    
$
-
    
$
93,178
  
Intersegment revenues
    
4,642
      
415
      
-
      
-
      
(5,057
)
    
-
  
Total revenues
    
24,707
      
31,344
      
32,487
      
9,697
      
(5,057
)
    
93,178
  
                                                 
Cost of revenues
    
25,612
      
27,659
      
28,561
      
8,298
      
(5,343
)
    
84,787
  
Gross profit (loss)
    
(905
)
    
3,685
      
3,926
      
1,399
      
286
      
8,391
  
                                                 
Research and development
    
287
      
98
      
-
      
168
      
-
      
553
  
Selling and marketing
    
1,512
      
1,660
      
1,324
      
417
      
-
      
4,913
  
General and administrative
    
2,384
      
2,375
      
2,631
      
1,169
      
-
      
8,559
  
Other income
    
(2
)
    
-
      
(2
)
    
-
      
-
      
(4
)
                                                 
Operating income (loss)
  
$
(5,086
)
  
$
(448
)
  
$
(27
)
  
$
(355
)
  
$
286
    
$
(5,630
)
Financial expenses, net
                                            
102
  
Loss before taxes on income
                                            
(5,732
)


   
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
  



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

   
Year ended December 31, 2019
  
   
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
    
29,149
      
31,031
      
34,264
      
10,194
      
10,037
      
114,675
  
Depreciation and amortization
    
1,601
      
1,031
      
786
      
954
      
-
      
4,372
  
Expenditure for segment assets
    
1,600
      
1,180
      
803
      
239
      
-
      
3,822
  

   
Year ended December 31, 2018
  
   
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
    
26,171
      
33,794
      
27,687
      
11,100
      
4,535
      
103,287
  
Depreciation and amortization
    
1,476
      
1,044
      
705
      
960
      
-
      
4,185
  
Expenditure for segment assets
    
2,665
      
588
      
764
      
144
      
-
      
4,161
  

   
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