SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 20 -SEGMENT INFORMATION

a.Segment Activities Disclosure:

TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories mainly through our Gedera facility and our Limco subsidiary; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components (mainly APU and LG) 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 of 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, as well as APU lease activity. 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 discontinued operation regarding to the JT8D activity is part of the coating jet engines component segment thus the numbers for this segment were reclassified due to discontinued operation for the year 2019.

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 and cash equivalents, accounts receivable and inventory.

During 2021 TAT executed and continue to work on the company's plan to consolidate the Company’s operations from four to three production sites by consolidating its production sites in Israel “OEM of heat transfer solutions and aviation accessories” with the “overhaul and coating of jet engine activity” and transferring the heat exchanges cores production operations from Israel to the Company’s production site in Tulsa, Oklahoma.

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TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 20 -SEGMENT INFORMATION (CONT)

b.Segments statement operations disclosure:

The following financial information is the information that CODM uses for analyzing the segment results. The figures are presented in consolidated method as presented to CODM.

The following financial information is a summary of the operating income of each operational segment:

	Year ended December 31, 2021
	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 and Lease			Overhaul and coating of jet engine components			Elimination of inter-company sales			Consolidated
Revenues
Sale of products and services	$	22,238		$	18,669		$	33,232		$	3,834		$	-		$	77,973
Intersegment revenues		3,739			177			-			-			(3,916	)		-
Total revenues		25,977			18,846			33,232			3,834			(3,916	)		77,973
Cost of revenues		24,044			16,922			26,444			2,978			(3,685	)		66,703
Gross profit		1,933			1,924			6,788			856			(231	)		11,270
Research and development		122			80			202			160			(47	)		517
Selling and marketing		2,040			1,015			1,961			220			(89	)		5,147
General and administrative		3,128			1,855			3,004			558			(191	)		8,354
Other expenses (income)		(913	)		-			(432	)		(19	)		896			(468	)
Restructuring expenses, net		1,338			386			-			31			-			1,755
Operating income (loss)	$	(3,782	)	$	(1,412	)	$	2,053		$	(94	)	$	(800	)	$	(4,035	)
Financial expenses, net																	540
Loss before tax benefits																	(4,575	)

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TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 20 -SEGMENT INFORMATION (CONT)

b.Segments statement operations disclosure (cont.)

	Year ended December 31, 2020
	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 and lease			Overhaul and coating of jet engine components			Elimination of inter-company sales			Consolidated
Revenues
Sale of products and services	$	20,179		$	20,445		$	31,189		$	3,546		$	-		$	75,359
Intersegment revenues		2,946			195			-			-			(3,141	)		-
Total revenues		23,125			20,640			31,189			3,546			(3,141	)		75,359
Cost of revenues		21,703			17,885			26,961			3,312			(2,937	)		66,924
Gross profit (loss)		1,422			2,755			4,228			234			(204	)		8,435
Research and development		(3	)		(2	)		7			183			-			185
Selling and marketing		1,429			1,152			1,527			261			-			4,369
General and administrative		2,183			2,054			2,732			643			-			7,612
Other expenses (income)		-			21			-			294			-			315
Operating income (loss)	$	(2,187	)	$	(470	)	$	(38	)	$	(1,147	)	$	(204	)	$	(4,046	)
Financial expenses, net																	770
Loss before taxes on income																	(4,816	)

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TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 20 -SEGMENT INFORMATION (CONT)

b.Segments statement operations disclosure (cont.)

	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 and lease		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	$	4,057		$	-		$	97,479
Intersegment revenues		6,037			250		-		-			(6,287	)		-
Total revenues		26,589			34,433		38,687		4,057			(6,287	)		97,479
Cost of revenues		23,998			27,852		33,337		3,460			(6,468	)		82,179
Gross profit		2,591			6,581		5,350		597			181			15,300
Research and development		58			83		7		(35	)		-			113
Selling and marketing		1,530			1,638		1,334		427			-			4,929
General and administrative		1,978			2,734		2,408		534			-			7,654
Operating income (loss)	$	(975	)	$	2,126	$	1,601	$	(329	)	$	181		$	2,604
Financial expenses, net															422
Income before taxes on income															2,182

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TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 20 -SEGMENT INFORMATION (CONT)

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

	Year ended December 31, 2021
	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 and Lease		Discontinued operation		Overhaul and coating of jet engine components		Amounts not allocated to segments		Consolidated
Total assets		27,271		27,267		45,112		-		7,128		4,055		110,833
Depreciation and amortization		2,174		740		1,683		-		284		-		4,881
Asset’s impairment		1,800		-		-		-		-		-		1,800
Expenditure for segment assets		271		4,831		5,624		-		1,604		-		12,330

	Year ended December 31, 2020
	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 and Lease		Discontinued operation		Overhaul and coating of jet engine components		Amounts not allocated to segments		Consolidated
Total assets		32,536		21,525		41,433		-		6,073		14,554		116,121
Depreciation and amortization		1,400		1,020		799		-		846		-		4,065
Expenditure for segment assets		765		556		9,410		-		309		-		11,040