Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | TAT TECHNOLOGIES LTD |
Entity Central Index Key | 808439 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 20-F |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 8,808,344 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | $22,894 | $19,814 | |
Short-term bank deposits | 5,089 | 10,059 | |
Accounts receivable-trade, net | 15,657 | 18,387 | |
Other accounts receivable and prepaid expenses | 4,298 | 3,314 | [1] |
Inventories, net | 35,404 | 29,395 | [1] |
Assets held for sale | 9,959 | ||
Total current assets | 83,342 | 90,928 | |
INVESTMENT AND OTHER NON CURRENT ASSETS: | |||
Investment in an affiliated company | 2,556 | 2,289 | |
Funds in respect of employee rights upon retirement | 2,496 | 2,900 | |
Deferred income taxes | 1,550 | 1,616 | |
Total investment and other non current assets | 6,602 | 6,805 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 11,524 | 11,147 | [1] |
Total long-term assets | 18,126 | 17,952 | |
Total assets | 101,468 | 108,880 | |
CURRENT LIABILITIES: | |||
Short term bank loan and current maturities of long-term loans | 910 | ||
Accounts payable trade | 5,886 | 6,941 | |
Other accounts payable and accrued expenses | 5,651 | 5,815 | [1] |
Liabilities held for sale | 3,428 | ||
Total current liabilities | 11,537 | 17,094 | |
NON CURRENT LIABILITIES: | |||
Other long-term liabilities | 34 | 58 | |
Liability in respect of employee rights upon retirement | 2,655 | 3,140 | |
Deferred income taxes | 1,774 | 1,058 | |
Total long-term liabilities | 4,463 | 4,256 | |
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 14) | |||
Total liabilities | 16,000 | 21,350 | |
EQUITY: | |||
Authorized: 10,000,000 shares at December 31, 2014 and 2013; Issued: 9,082,817 and 9,079,709 shares at December 31, 2014 and 2013, respectively; Outstanding: 8,808,344 and 8,805,236 shares at December 31, 2014 and 2013, respectively | 2,793 | 2,792 | |
Additional paid-in capital | 64,491 | 64,454 | |
Treasury stock, at cost, 274,473 shares at December 31, 2014 and 2013 | -2,088 | -2,088 | |
Accumulated other comprehensive loss | -429 | ||
Retained earnings | 20,272 | 20,840 | |
Total shareholders' equity | 85,468 | 85,569 | |
Non-controlling interest | 1,961 | ||
Total equity | 85,468 | 87,530 | |
Total liabilities and equity | $101,468 | $108,880 | |
[1] | (*) Excluding held for sale assets at December 31, 2013 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (ILS) | Dec. 31, 2014 | Dec. 31, 2013 |
Ordinary shares, par value per share | 0.9 | 0.9 |
Ordinary shares, shares authorized | 10,000,000 | 10,000,000 |
Ordinary shares, shares issued | 9,082,817 | 9,079,709 |
Ordinary shares, shares outstanding | 8,808,344 | 8,805,236 |
Treasury stock, shares | 274,473 | 274,473 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenues: | |||||
Products | $31,363 | $34,364 | [1] | $36,263 | [1] |
Services | 49,363 | 45,187 | [1] | 41,652 | [1] |
Total revenues | 80,726 | 79,551 | 77,915 | ||
Cost of revenues: | |||||
Products | 23,340 | 24,892 | 25,177 | ||
Services | 40,286 | 35,987 | 33,362 | ||
Total cost of revenues | 63,626 | 60,879 | 58,539 | ||
Gross profit | 17,100 | 18,672 | 19,376 | ||
Operating expenses: | |||||
Research and development, net | 1,070 | 713 | 995 | ||
Selling and marketing | 3,203 | 3,150 | 2,899 | ||
General and administrative | 9,019 | 9,512 | 10,110 | ||
Other income | -11 | -20 | -13 | ||
Total operating expenses | 13,281 | 13,355 | 13,991 | ||
Operating income from continuing operations | 3,819 | 5,317 | 5,385 | ||
Financial expenses | -2,510 | -947 | -2,094 | ||
Financial income | 1,216 | 897 | 1,988 | ||
Income from continuing operations before taxes on income | 2,525 | 5,267 | 5,279 | ||
Taxes on income | 1,360 | 1,041 | 2,090 | ||
Net income from continuing operations after taxes on income | 1,165 | 4,226 | 3,189 | ||
Share in results of affiliated company and impairment of share in affiliated company | 267 | 1,025 | -3,756 | ||
Net income (loss) from continuing operations | 1,432 | 5,251 | -567 | ||
Net loss from discontinued operations, net of tax | -2,429 | -1,147 | |||
Net income (loss) attributable to TAT Technologies Ltd. shareholders | $1,432 | $2,822 | ($1,714) | ||
Basic and diluted income (loss) per share: | |||||
Net income (loss) from continuing operations per share attributable to controlling interest | $0.16 | $0.60 | ($0.06) | ||
Loss from discontinued operations per share attributable to controlling interest | ($0.28) | ($0.13) | |||
Basic and diluted net loss per share attributable to controlling interest | $0.16 | $0.32 | ($0.19) | ||
Basic | 8,805,495 | 8,799,237 | 8,808,075 | ||
Diluted | 8,826,542 | 8,808,920 | 8,808,075 | ||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income (loss) | $1,432 | $1,780 | ($1,772) |
Other comprehensive income | |||
Foreign currency translation adjustments | 429 | 668 | 209 |
Total other comprehensive income | 429 | 668 | 209 |
Comprehensive income (loss) | 1,861 | 2,448 | -1,563 |
Comprehensive loss (income) attributable to non-controlling interest | 842 | -12 | |
Comprehensive income (loss) attributable to shareholders | $1,861 | $3,290 | ($1,575) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Share capital [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury shares [Member] | Retained earnings [Member] | Non-controlling interest [Member] | |
In Thousands, except Share data | ||||||||
Balance at Dec. 31, 2011 | $89,161 | $2,790 | $64,402 | ($1,036) | ($2,018) | $22,232 | $2,791 | |
Balance, shares at Dec. 31, 2011 | 9,073,043 | |||||||
Comprehensive income (loss) | -1,563 | 139 | -1,714 | 12 | ||||
Dividend distributed | -2,500 | -2,500 | ||||||
Purchase of treasury shares | -70 | -70 | ||||||
Purchase of treasury shares, shares | ||||||||
Share based compensation expenses | 8 | 8 | ||||||
Balance at Dec. 31, 2012 | 85,036 | 2,790 | 64,410 | -897 | -2,088 | 18,018 | 2,803 | |
Balance, shares at Dec. 31, 2012 | 9,073,043 | |||||||
Comprehensive income (loss) | 2,448 | 468 | 2,822 | -842 | ||||
Share based compensation expenses | 3 | 3 | ||||||
Exercise of options | 43 | 2 | 41 | |||||
Exercise of options, shares | 6,666 | |||||||
Balance at Dec. 31, 2013 | 87,530 | 2,792 | 64,454 | -429 | -2,088 | 20,840 | 1,961 | |
Balance, shares at Dec. 31, 2013 | 9,079,709 | |||||||
Comprehensive income (loss) | 1,861 | 429 | 1,432 | |||||
Dividend distributed | -2,000 | -2,000 | ||||||
Sale of subsidiary | -1,961 | -1,961 | ||||||
Share based compensation expenses | 38 | 38 | ||||||
Exercise of options | 1 | -1 | ||||||
Exercise of options, shares | 85,000 | [1] | 3,108 | |||||
Balance at Dec. 31, 2014 | $85,468 | $2,793 | $64,491 | ($2,088) | $20,272 | |||
Balance, shares at Dec. 31, 2014 | 9,082,817 | |||||||
[1] | The aggregate intrinsic value for the options exercised by employees during 2014 was approximately $21. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) attributable to TAT Technologies Ltd. shareholders | $1,432 | $2,822 | ($1,714) | ||
Net loss from discontinued operations | 2,429 | 1,147 | |||
Net income (loss) from continuing operations | 1,432 | 5,251 | -567 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation and amortization | 2,069 | 1,859 | [1] | 1,906 | [1] |
Exchange differentials of loans | -1 | 23 | 16 | ||
Write down of inventory | 67 | ||||
Gain (loss) on sale of property and equipment | 10 | -20 | -12 | ||
Gain from change in fair value of derivatives | -27 | -399 | |||
Interest from short-term bank deposits and restricted deposits | -128 | -11 | -48 | ||
Provision for doubtful accounts | 17 | 258 | |||
Share in results of affiliated company and impairment of share in affiliated company | -267 | -1,025 | 3,756 | ||
Share based compensation expenses | 38 | 3 | 8 | ||
Liability in respect of employee rights upon retirement | -485 | 286 | 396 | ||
Deferred income taxes, net | 1,229 | 71 | 1,712 | ||
Changes in operating assets and liabilities: | |||||
Amounts due to (from) related parties, net | 5 | -63 | 711 | ||
Decrease (increase) in trade accounts receivable | 2,730 | -1,001 | -979 | ||
Decrease (increase) in other accounts receivable, prepaid expenses and other | -833 | 1,195 | 266 | ||
Decrease (increase) in inventories, net | -6,009 | 659 | -2,908 | ||
Increase (decrease) in trade accounts payable | -509 | 278 | 581 | ||
Increase (decrease) in other accounts payable and accrued expenses | -715 | -417 | 1,197 | ||
Increase (decrease) in other long-term liabilities | -24 | 58 | -2 | ||
Net cash provided by (used in) operating activities | -1,458 | 7,203 | 5,892 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Proceeds from sale of marketable securities | 1,900 | ||||
Proceeds from sale of subsidiary (A) | 2,176 | ||||
Funds in respect of employee rights upon retirement | 352 | -48 | -457 | ||
Proceeds from sale of property and equipment | 19 | 51 | 50 | ||
Purchase of property and equipment | -3,021 | -2,240 | -2,147 | ||
Investment in short-term deposit | -10,000 | ||||
Maturities of short-term deposits | 5,098 | ||||
Proceeds released from restricted deposits | 2,307 | 947 | |||
Net cash provided by (used in) investing activities | 4,624 | 70 | -9,707 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Repayments of long-term loans | -883 | -2,286 | -776 | ||
Dividend paid | -2,000 | -2,500 | |||
Repayments of short-term loans | -26 | -719 | -4,542 | ||
Short-term credit received from a bank | 26 | 627 | |||
Repurchase of treasury shares | -70 | ||||
Exercise of options | 43 | ||||
Net cash used in financing activities | -2,909 | -2,936 | -7,261 | ||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | |||||
Cash provided by operating activities of discontinued operations | 685 | 2,054 | |||
Cash provided by investing activities of discontinued operations | -31 | -226 | |||
Cash used in financing activities of discontinued operations | -304 | -285 | |||
Effect of exchange rate changes on cash and cash equivalents of discontinued operations | 164 | 90 | |||
Net cash provided by discontinued operations | 514 | 1,633 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 257 | 4,851 | -9,443 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 22,637 | 17,786 | 27,229 | ||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 22,894 | 22,637 | 17,786 | ||
LESS - CASH AND CASH EQUIVALENT OF DISCONTINUED OPERATIONS AT END OF YEAR | 2,823 | 2,309 | |||
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS AT END OF YEAR | 22,894 | 19,814 | 15,477 | ||
Supplementary information on investing activities not involving cash flows: | |||||
Purchase of property and equipment on credit | 44 | 590 | |||
Supplemental disclosure of cash flow information: | |||||
Interest paid | -15 | -89 | -209 | ||
Interest received | 221 | 177 | 265 | ||
Income taxes paid | -571 | -961 | -813 | ||
Income taxes refunds | $613 | $1,383 | $780 | ||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
(A) Proceeds from sale of subsidiary | |||
Assets held for sale (excluding cash in the amount of $2,823) | $7,136 | ||
Liabilities held for sale | -3,428 | ||
Non-controlling interest | -1,532 | ||
Proceeds from sale of subsidiary | 2,176 | ||
Assets held for sale, cash amount | $2,823 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2014 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1 - GENERAL |
a. TAT Technologies Ltd., (“TAT” or the “Company”) an Israeli corporation, incorporated in 1985, is a leading provider of services and products to the commercial and military aerospace and ground defense industries. Together with its subsidiaries, 100% held, Limco-Piedmont Inc. (“Limco-Piedmont”), 70% held, Bental Industries Ltd. (“Bental”) (with respect to the sale of the entire interest in Bental see note 1(d) and 4) and 100% held, TAT Gal Inc. (“TAT Gal”) hereinafter collectively referred to as the “Group”, it is principally engaged in the following activities: | |
Design, development, manufacture and sale of a broad range of heat transfer equipment and solutions; | |
Remanufacture, overhaul and repair of heat transfer equipment; | |
Maintenance, repair and overhaul of auxiliary power units, landing gears and related components; | |
Design, development and manufacture of aviation and flow control accessories including fuel components, secondary power systems, and various instrumentation and electronic assemblies and | |
Design, development and manufacture of environmental control and cooling systems. | |
The products developed, repaired, and maintained by the Group are primarily used for airborne systems on commercial and military aircrafts as well as for defense ground systems. The principal markets of TAT are in Israel, Europe and the United States. | |
As of December 31, 2014, Limco-Piedmont holds 100% of Limco-Airepair Inc. (“Limco”), of Piedmont Aviation Component Services LLC. (“Piedmont”) and holds, through Piedmont, 28.08% in First Aviation Services Inc. (“FAvS”), a world-wide service provider to the aerospace industry and a one-stop-shop for maintenance, repair and overhaul services (for propellers and landing gear) for the General Aviation Industry. | |
b. TAT's shares are listed on both the NASDAQ (TATT) and Tel-Aviv stock exchange. | |
c. In October 2012 two lenders to TAT's then controlling shareholders, KMN Industries and TAT Industries (herein “Controlling Shareholders”), filed separate petitions to the court to enforce certain liens granted to such lenders by each of the Controlling Shareholders. Such liens consisted of KMN Industries' holdings of an approximately 80% ownership interest in TAT Industries (which in turn owned approximately 43% of the issued share capital of TAT) and KMN Industries' direct holdings in TAT (which represented approximately 10% of the issued share capital of TAT). On December 18, 2012 the court appointed permanent receivers on behalf of the two lenders mentioned above for the purpose of jointly realizing the liens granted to such lenders. On March 15, 2013 the receivers of TAT's shares initiated a bid process for the sale of such shares. On August 7, 2013 the receivers informed TAT that a transaction for the sale of 4,732,351 Ordinary shares of TAT, constituting 53.8% of TAT's outstanding Ordinary shares as of the date of the transaction, closed after receiving all required approvals and transfer of the agreed consideration by FIMI Israel Opportunity FIVE, Limited Partnership and FIMI Opportunity V, L.P. (“FIMI Funds”). | |
d. On February 18, 2014 TAT entered into an agreement to sell its entire interest in Bental, constituting 70% of Bental's issued and outstanding share capital, to Bental Investments Agshah Ltd. (“Bental Investments”), for an aggregate consideration of $5,000, reflecting an impairment of $3,319 (out of which $2,323 attributed to controlling interest), which is reported in Income (loss) from discontinued operations in the consolidated statement of operations for the year ended December 31, 2013 (see also note 4). | |
The Company determined Bental met the criteria for held for sale and discontinued operations as of December 31, 2013. | |
Closing of the transaction occurred on March 27, 2014 after receiving all required approvals to consummate the closing. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | ||
Accounting principles | |||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), applied on a consistent basis, unless otherwise indicated below. | |||
a. Use of estimates in the preparation of financial statement | |||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose the nature of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. | |||
As applicable to these financial statements, the most significant estimates and assumptions relate to: revenue recognition, recoverability of inventory, provision for doubtful accounts, impairment of long lived assets, impairment of investment in affiliated company, contingencies, provision for taxes and the realizability of deferred tax assets. | |||
b. Functional currency | |||
The majority of the TAT's revenues are generated in U.S. dollars ("dollars") and a substantial portion of TAT's costs are incurred in dollars. In addition, a significant portion of the TAT's financing has been obtained in dollars. Accordingly, the dollar is the currency of the primary economic environment in which TAT operates and accordingly its functional and reporting currency is the dollar. | |||
Limco's and Piedmont's (“U.S. subsidiaries”) revenues are generated in dollars and its costs are incurred in dollars. In addition, the U.S. subsidiaries financing has been obtained in dollars. Accordingly, the dollar is the currency of the primary economic environment in which the U.S. subsidiaries operate and accordingly its functional and reporting currency is the dollar. | |||
Monetary accounts maintained in currencies other than the dollar are re-measured using the representative foreign exchange rate at the balance sheet date. Operational accounts and non-monetary balance sheet accounts are measured and recorded at the rate in effect at the date of the transaction. The effects of foreign currency re-measurement are recorded in financial income (expenses), net. | |||
c. Principles of consolidation | |||
The consolidated financial statements include the accounts of TAT and its subsidiaries. In these financial statements, “subsidiaries” are companies over which TAT has over 50% voting control and the financial statements of which are consolidated with those of the Company. | |||
Intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. Non-controlling interests are included in equity. | |||
d. Cash and Cash equivalents | |||
All highly liquid investments, which include short-term bank deposits and money market accounts, that are not restricted as to withdrawal or use, and short-term debentures, the period to maturity of which do not exceed three months at the time of investment, are considered to be cash equivalents. | |||
e. Short-term bank deposits | |||
Bank deposits with maturities of more than three months but less than one year are included in short-term deposits. Such short-term deposits are in Dollars and bear interest at an average annual rate of approximately 0.6%. in 2014 and 2013. | |||
f. Accounts receivable-trade, net | |||
The Group's accounts receivable balances are due from customers primarily in the airline and defense industries. Credit is extended based on evaluation of a customer's financial condition and generally, collateral is not required. Trade accounts receivable from sales of services and products are typically due from customers within 30 - 90 days. Trade accounts receivable balances are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than their original contractual payment terms are considered past due. The Group determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Group's previous loss history from such customers, customer's current ability to pay its obligation to TAT and the condition of the general economy and the industry as a whole. The Group writes-off accounts receivable when they become uncollectible. Payments subsequently received on such receivables are credited against earnings. The allowance for doubtful accounts is determined with respect to specific debts that are doubtful of collection. | |||
g. Inventories | |||
Inventories are measured at the lower of cost or market. | |||
Cost of inventories is determined as follows: | |||
On the basis of actual cost | - | Raw materials and parts | |
On the basis of actual cost which takes into account materials, labor and other direct and indirect manufacturing costs, or identifiable direct costs. | - | Work in progress and Finished goods | |
Since the Group sells products and services related to airplane accessories (heat transfer equipment, defined in note 1, APU's, landing gears etc.) for airplanes that can be in service for 20 to 50 years, it must keep a supply of such products and parts on hand while the airplanes are in use. The Group writes down its inventory for estimated obsolescence and unmarketable inventory equal to the difference between the cost of inventory and estimated market value based upon assumptions for future demand and market conditions. | |||
h. Property, plant and equipment | |||
Property, plant and equipment are stated at cost, after deduction of the related investment grants, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: | |||
years | |||
Buildings | 25 | ||
Machinery and equipment | 4 - 10 (mainly 10) | ||
Motor vehicles | 6 - 7 | ||
Office furniture and equipment | 3 - 17 (mainly 7) | ||
Software | 3 | ||
Leasehold improvements are included in buildings and amortized using the straight line method over the period of the lease contract, or the estimated useful life of the asset, whichever is shorter. | |||
i. Grants from Office of the Chief Scientist of Israel ("OCS"): | |||
Grants received from the OCS for approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the costs incurred and included as a deduction from research and development expenses. Due the fact that the Company is defined as "Traditional Industry Company", under the OCS regulations, these grants are non-royalty bearing. | |||
j. Investment in company accounted for using the Equity Method | |||
Investment in which the Group exercises significant influence and which is not considered a subsidiary ("affiliate") is accounted for using the equity method, whereby the Group recognizes its proportionate share of the affiliated company's net income or loss after the date of investment. Significant influence is presumed to exist when the Group holds 20% to 50% of an affiliated company's voting instruments. | |||
The Group reviews this investment for impairment whenever events indicate the carrying amount may not be recoverable. See note 3(b). | |||
k. Impairment of long-lived assets | |||
Long-lived assets, including definite life intangible assets, held and used by an entity are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized, and the assets (or asset group) would be written down to their estimated fair values (see also notes 6 and 9). | |||
l. Treasury Shares | |||
Company shares held by the Company are presented as a reduction of equity at their cost to the Company. | |||
m. Revenue recognition | |||
The Group generates its revenues from the sale of OEM products and systems, providing MRO services (remanufacture, maintenance, repair and overhaul services and long-term service contracts) and parts services. | |||
Revenues from the sale of products are recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, provided the collection of the resulting receivable is reasonably assured, the price is fixed or determinable and no significant obligation exists. The Group does not grant a right of return. | |||
Revenues from multi-year, fixed price contracts for OEM customers are recognized when a product is shipped (and title passed) to the customer. Management provides for losses as soon as a loss is expected for the remaining portion of such contracts. For the years ended December 31, 2014, 2013 and 2012, no losses have been recognized for such fixed price contracts. | |||
Revenues from MRO services are recognized when services are completed and the item is shipped back to the customer. | |||
Revenues from some maintenance contracts are recognized over the contract period in proportion to the costs expected to be incurred in performing services under the contract. The Group estimates the costs that are expected to be incurred based on its experience with the aggregate costs incurred and to be incurred on contracts of this nature. The costs incurred related to the maintenance contracts are not incurred on a straight-line basis, as the timing to provide the maintenance services is dependent on when parts under these contracts require maintenance. Therefore, the Group accrues revenue as costs are incurred. These revenues are then compared to actual results and adjusted to either deferred revenue for results greater than historical estimates or recognized in those cases of performance less than historical estimates. These accounts are reviewed on a timely basis and adjusted (if required) based on cost structures. | |||
Revenues from royalties from sales of products developed with the Group's intellectual property, technology and technical assistance are recognized when the related sales are made. | |||
n. Shipping and handling costs | |||
Shipping and handling costs billed to customers are included in revenue. The cost of shipping and handling products is included in costs of revenues. | |||
o. Warranty costs | |||
The Group provides warranties for its products and services ranging from one to three years, which vary with respect to each contract and in accordance with the nature of each specific product. | |||
The Group estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. The Group periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. | |||
p. Research and development | |||
Research and development costs, net of grants, are charged to expenses as incurred. | |||
q. Fair value measurement | |||
The Group measures fair value and discloses fair value measurements for financial and non-financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data for similar but not identical assets or liabilities. | |||
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||
In determining fair value, the Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. | |||
r. Concentrations of credit risk | |||
Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. | |||
Cash and cash equivalents are deposited with major banks in Israel and the United States. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold Group's cash and cash equivalents are financially sound. Accordingly, minimal credit risk exists with respect to these financial instruments. | |||
The Group's accounts receivable are derived mainly from sales to customers in the United States, Israel and Europe. The Group generally does not require collateral; however, in certain circumstances the Group may require letters of credit. Management believes that credit risks relating to accounts receivable are minimal since the majority of the Group's customers are world-leading manufacturers of aviation systems and aircrafts, international airlines, governments and air-forces, and world-leading manufacturers and integrators of defense and ground systems. In addition, the Group has relatively a large number of customers with wide geographic spread which mitigates the credit risk. The Group performs ongoing credit evaluation of its customers' financial condition. | |||
s. Income taxes | |||
Income taxes are accounted for in accordance with ASC 740 "Income Taxes". This statement prescribes the use of the asset and liability method, whereby deferred tax assets and liabilities account balances are determined based on temporary differences between financial reporting and tax basis of assets and liabilities and for tax loss carry-forwards. Deferred taxes are measured using the enacted laws and tax rates that will be in effect when the differences are expected to reverse. The Group provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value, see note 17(h). | |||
Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. | |||
Taxes which would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing the deferred taxes, when the Group's intention is to hold, and not to realize the investments. | |||
Following the recognition of Bental as held for sale and discontinued operations as of December 31, 2013, (see note 4) the Company computed the deferred tax asset derived from the estimated loss for tax purposes, incurred on the sale of its entire interest in Bental. For such capital loss as of December 31, 2014 and 2013 the Company provided a full valuation allowance as it cannot predict its future realization. | |||
The Group records deferred taxes related to its share in results of its affiliated company. | |||
With regard to dividends distributable from the income of foreign subsidiaries: as the Group intends to permanently reinvest retained earnings and has no intention to declare dividends out of such earnings in the foreseeable future it does not record deferred taxes in respect of taxes that would have been paid in such event. | |||
The Group did not provide for deferred taxes attributable to dividend distribution out of retained tax-exempt earnings from "Approved/Benefited Enterprise" plans (see note 17(a)), since it intends to permanently reinvest them and has no intention to declare dividends out of such tax exempt income in the foreseeable future. Management considers such retained earnings to be essentially permanent in duration. The payment of dividend in 2014 was paid from earnings from regular income of the Israeli company. | |||
Results for tax purposes for TAT's Israeli subsidiary are measured and reflected in NIS and for TAT's U.S. subsidiaries are measured and reflected in dollars. As explained in (b) above, the consolidated financial statements are presented in dollars. In accordance with ASC 740, TAT has not provided deferred income taxes on the differences resulting from changes in exchange rate and indexation. | |||
The Group follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Group's policy is to include interest and penalties related to unrecognized tax benefits within financial income (expense). Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date. | |||
t. Held for sale classification and Discontinued operations | |||
A business is reported as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying value of the business exceeds its estimated fair value, a loss is recognized. | |||
Assets and liabilities related to a business classified as held for sale are segregated in the consolidated balance sheet in the period in which the business is classified as held for sale. | |||
Operations of a business are reported as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in discontinued operations in the consolidated statement of operations for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. | |||
Depreciation is not recorded on assets of a business while it is classified as held for sale. | |||
At December 31, 2013, held for sale assets and liabilities consisted of Bental, the OEM of Electric Motion Systems operating segment, and its results of operations are presented as discontinued operations in the consolidated statement of operations (see also note 4). | |||
u. Basic and diluted net Earnings per share | |||
Earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings (loss) per share includes the potential effect of stock options outstanding during the year, in accordance with ASC 260 "Earnings per Share", using the treasury stock method. | |||
v. Share-based compensation | |||
The Group applies ASC 718 "Stock Based Compensation" with respect to employees options, which requires awards classified as equity awards to be accounted for using the grant-date fair value method. The fair value of share-based awards is estimated using the Black-Scholes valuation model, the payment transaction is recognized as expense over the requisite service period, net of estimated forfeitures. The Group estimates forfeitures based on historical experience and anticipated future conditions. | |||
The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method over the requisite service period for the entire award. For an award with performance conditions that has a graded vesting schedule, compensation cost is recognized upon meeting such conditions, using the accelerated method over the requisite service period for the entire award. | |||
w. Comprehensive income | |||
Comprehensive income, net of related taxes where applicable, includes, in addition to net income, Currency translation adjustments. The accumulated other compressive income related entirely to Bental and was reclassified from AOCI to discontinued operation upon the sale of Bantal. | |||
x. Contingencies | |||
Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group but which will only be resolved when one or more future events occur or fail to occur. The Group's management assesses such contingent liabilities and estimated legal fees, if any, and accrues for these costs. Such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group's management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. | |||
Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. | |||
y. Recently Issued Accounting Principles | |||
(1) In May 2014, the Financial Accounting Standards Board of the United States (the “FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for the Company in the first quarter of 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | |||
(2) In August 2014, the FASB issued amended guidance related to disclosure of uncertainties about an entity's ability to continue as a going concern. The new guidance requires management to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern and, as necessary, to provide related footnote disclosures. The guidance has an effective date of December 31, 2016. The Company believes that the adoption of this new standard will not have a material impact on its consolidated financial statements. | |||
z. Derivative Instruments | |||
The Company uses derivative financial instruments to manage exposure to movement in exchange rate. The use of these financial instruments reduces the exposure of these risks. The Company recognizes the fair value of all derivative instruments as either assets or liabilities at fair value on the consolidated balance sheets with changes in fair value recorded directly to the statement of operations. Fair value is based on market quotes for similar instruments with the same duration. | |||
INVESTMENT_IN_AN_AFFILIATED_CO
INVESTMENT IN AN AFFILIATED COMPANY | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
INVESTMENT IN AN AFFILIATED COMPANY [Abstract] | ||||||||||||||||
INVESTMENT IN AN AFFILIATED COMPANY | NOTE 3 - INVESTMENT IN AN AFFILIATED COMPANY | |||||||||||||||
a. FAvS | ||||||||||||||||
As of December 31, 2014 and 2013, the company has 28.08% and 29.36% of First Aviation Services, a provider of repair and overhaul, rotables management and related engineering services to the aviation industry worldwide. | ||||||||||||||||
b. Financial information | ||||||||||||||||
Condensed financial information from FAvS consolidated balance sheets as of December 31, 2014 and 2013: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Current assets | $ | 10,596 | $ | 10,179 | ||||||||||||
Long-term assets | 8,927 | 8,954 | ||||||||||||||
Total assets | 19,523 | 19,133 | ||||||||||||||
Current liabilities | 5,964 | 6,522 | ||||||||||||||
Long-term liabilities | 4,624 | 4,471 | ||||||||||||||
Total liabilities | $ | 10,588 | $ | 10,993 | ||||||||||||
Condensed financial information from FAvS consolidated statements of operations for each of the three years in the period ended December 31, 2014: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net sales | $ | 24,442 | $ | 23,445 | $ | 21,579 | ||||||||||
Gross profit | 7,342 | 6,182 | 9,202 | |||||||||||||
Income (loss) from continuing operations | 827 | (341 | ) | (1,476 | ) | |||||||||||
Net income (loss) | 727 | 3,158 | (12,979 | ) | ||||||||||||
Income (loss) attributable to common stockholders | $ | 336 | $ | 2,821 | $ | (13,271 | ) | |||||||||
A reconciliation of the share in results of affiliated company and impairment of share in affiliated company for each of the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Share in income (loss) related to common stockholders | $ | 49 | $ | 838 | $ | (653 | ) | |||||||||
Share in income related to preferred stock | 218 | 187 | 197 | |||||||||||||
Impairment in affiliated company | - | - | (3,300 | ) | ||||||||||||
Net income (loss) | $ | 267 | $ | 1,025 | $ | (3,756 | ) |
HELD_FOR_SALE_CLASSIFICATION_A
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
HELD FOR SALE CLASSIFICATION AND DISCONTINUED [Abstract] | |||||||||||
HELD FOR SALE CLASSIFICATION AND DISCONTINUED | NOTE 4 - HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | ||||||||||
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, to Bental Investments Agshah Ltd. (“Bental Investments”), for an aggregate consideration of $5,000, reflecting an impairment of $3,319 (out of which $2,323 attributed to controlling interest), which is reported in Income (loss) from discontinued operations in the consolidated statement of operations for the year ended December 31, 2013. In addition the Company recorded a loss from discontinued operations of $152 for the year ended on December 31, 2013 (out of which $106 attributed to controlling interest). | |||||||||||
The impairment amount is based on the selling price, which is categorized as level 2 measurement. | |||||||||||
Closing of the transaction took place on March 27, 2014 after receiving all required approvals to consummate the the transaction. | |||||||||||
The following table summarizes the components of assets and liabilities held-for-sale in the consolidated balance sheet as of December 31, 2013: | |||||||||||
December 31, | |||||||||||
2013 | |||||||||||
:Assets | |||||||||||
2,823 | $ | Cash and cash equivalents | |||||||||
4,067 | Trade accounts receivable | ||||||||||
196 | Other accounts receivable and prepaid expenses | ||||||||||
2,983 | Inventories, net | ||||||||||
778 | Funds in respect of employee right upon retirement | ||||||||||
29 | Deferred income taxes | ||||||||||
2,402 | $ | Property, plant and equipment, net | |||||||||
13,278 | Assets of businesses held for sale | ||||||||||
-3,319 | Less: impairment | ||||||||||
9,959 | $ | Total assets held for sale | |||||||||
:Liabilities | |||||||||||
946 | Trade accounts payables | ||||||||||
1,109 | Other accounts payable and accrued expenses | ||||||||||
248 | Long-term loans, net of current maturities | ||||||||||
1,070 | Liability in respect of employee rights upon retirement | ||||||||||
55 | Deferred income taxes | ||||||||||
3,428 | $ | Total liabilities held for sale | |||||||||
The following are amounts related to Bental included in net loss from discontinued operations: | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Revenues | $ | 9,589 | $ | 10,008 | |||||||
Loss before taxes on income (tax benefit) | $ | (148 | ) | $ | (191 | ) | |||||
Loss from discontinued operations, net of tax ($5 and $3 in 2013 and 2012, respectively) | $ | (3,471 | ) | $ | (1,205 | ) | |||||
Loss from discontinued operations attributable to non-controlling interest | 1,042 | 58 | |||||||||
Loss from discontinued operations attributable to TAT Technologies Ltd. shareholders | $ | (2,429 | ) | $ | (1,147 | ) |
AVAILABLEFORSALE_MARKETABLE_SE
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES [Abstract] | |||||||||||||||||||||||
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES | NOTE 5 - AVAILABLE-FOR-SALE - MARKETABLE SECURITIES | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Amortized Cost | Gross | ||||||||||||||||||||||
Unrealized | Fair | ||||||||||||||||||||||
Gains | Value | ||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | 1,136 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
Amortized Cost | Gross | ||||||||||||||||||||||
Unrealized | Fair | ||||||||||||||||||||||
Gains | Value | ||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | 1,136 |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | |||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | NOTE 6 - FAIR VALUE MEASUREMENT | ||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||||||||||||||
The Group measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||||||||||||||||||||
The Company's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments: | |||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | - | $ | 1,136 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Forward transactions | $ | - | $ | 463 | $ | - | $ | 463 | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | - | $ | 1,136 | |||||||||||||||||||||||||||
As of December 31, 2014, the company has six open forward contracts with a notional total amount of $4,800. | |||||||||||||||||||||||||||||||||||
The carrying amounts of financial instruments, include cash and cash equivalents, short-term bank deposits, accounts receivable, accounts payable, forward transactions and accrued liabilities, approximate fair value because of their generally short maturities. | |||||||||||||||||||||||||||||||||||
The fair value of the Group's long-term loan was estimated by using level 3 inputs based on discounted future cash flows, using the rate currently available for liabilities of similar terms and maturity. The carrying amount of the Group's long-term loan approximates its fair value since the interest rate reflects current market rates. | |||||||||||||||||||||||||||||||||||
Non-Recurring Fair Value Measurements | |||||||||||||||||||||||||||||||||||
As for the fair value measurement related to the impairment of Bental as of December 31, 2013, see note 4. | |||||||||||||||||||||||||||||||||||
The following table presents the Group's assets measured at fair value on a non-recurring basis for the year ended December 31 2012: | |||||||||||||||||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||||||||||||||||
As of | Quoted prices | Significant | Significant | Total | |||||||||||||||||||||||||||||||
December 31, | in active | other | unobservable | losses for the | |||||||||||||||||||||||||||||||
2012 | markets for | observable | inputs | year ended December 31, | |||||||||||||||||||||||||||||||
identical assets | inputs | (Level 3) | 2012 | ||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||||
Goodwill (1) (*) | $ | - | $ | - | $ | - | $ | - | $ | 1,015 | |||||||||||||||||||||||||
Investment in affiliated company (2) | $ | 1,264 | $ | - | $ | - | $ | 1,264 | $ | 3,300 | |||||||||||||||||||||||||
(*) | Excluding discontinued operations for the year ended on December 31, 2012 | ||||||||||||||||||||||||||||||||||
(1) During the second quarter ended June 30, 2012, management believed that there were indicators of impairment of goodwill in its OEM of Electric Motion Systems reporting unit and accordingly performed interim goodwill impairment testing as of June 30, 2012, primarily due to a decline in future forecasted sales levels and profitability margins resulting from the continued weakness in the defense industry. Accordingly, the Company performed an impairment test of goodwill for this reporting unit, with the assistance of a third party valuation firm. Based on the results of this test, the Company determined that the entire balance of goodwill included in this reporting unit was impaired and recorded an impairment charge of $1,015. | |||||||||||||||||||||||||||||||||||
(2) In June 2012, FAvS entered into a transaction with its CEO, pursuant to which FAvS borrowed $3 million from FAvS CEO, secured by a third lien on the assets of FAvS. The loan bears interest at 10% and in addition FAvS CEO was issued warrants to purchase shares of Class A Common Stock of FAvS, representing 15% of FAvS post-exercise shareholders' equity, at an exercise price of $7.00 per share. | |||||||||||||||||||||||||||||||||||
Pursuant to the terms and conditions of the transaction, management believed that there were indicators of impairment with respect to TAT's investment in FAvS. Accordingly, the Company performed an impairment test of its investment in FAvS, with the assistance of a third party valuation firm. Based on the results of this test the Company determined that its investment in FAvS was impaired by $3,300. The impairment was due to a decline in FAvS' profitability margins and future forecasted sales levels. | |||||||||||||||||||||||||||||||||||
INVENTORIES_NET
INVENTORIES, NET | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INVENTORIES [Abstract] | ||||||||||||
INVENTORIES | NOTE 7 - | INVENTORIES, NET | ||||||||||
Inventories are composed of the following: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013(*) | |||||||||||
Raw materials and components | $ | 11,333 | $ | 9,648 | ||||||||
Work in process | 14,600 | 14,044 | ||||||||||
Spare parts | 8,956 | 4,742 | ||||||||||
Finished goods | 515 | 961 | ||||||||||
$ | 35,404 | $ | 29,395 | |||||||||
(*) Excluding held for sale assets at December 31, 2013 | ||||||||||||
In 2014, 2013 and 2012, approximately $202, $350 and $1,892, respectively, of inventory previously written-down were used or sold in the course of providing MRO services. |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 8 - PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||||
Composition of assets, grouped by major classifications, is as follows: | |||||||||||
December 31, | |||||||||||
2014 | 2013(*) | ||||||||||
Cost: | |||||||||||
Land and buildings | 6,232 | $ | 5,582 | ||||||||
Machinery and equipment | 36,299 | 34,696 | |||||||||
Motor vehicles | 334 | 418 | |||||||||
Office furniture and equipment | 1,646 | 1,559 | |||||||||
Software | 1,197 | 1,166 | |||||||||
45,708 | 43,421 | ||||||||||
Less: Accumulated depreciation | 34,184 | 32,274 | |||||||||
Depreciated cost | 11,524 | $ | 11,147 | ||||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||||
Depreciation and amortization expenses amounted to $2,069, $1,859 and $1,906 for the years ended December 31, 2014, 2013 and 2012, respectively (depreciation and amortization expenses do not include impairment charges). |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||||||||||
GOODWILL AND INTANGIBLE ASSETS | NOTE 9 - GOODWILL AND INTANGIBLE ASSETS | |||||||||
a. Intangible assets: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
License for service center | ||||||||||
Cost | $ | 2,050 | $ | 2,050 | ||||||
Accumulated amortization and impairment charges | -2,050 | -2,050 | ||||||||
Amortized cost | $ | - | $ | - | ||||||
b. Impairment Assessments | ||||||||||
During the quarter ended June 30, 2012, management believed that there were indicators of impairment of goodwill in its OEM of Electric Motion System reporting unit as of June 30, 2012, primarily due to a decline in future forecasted sales levels and profitability margins resulting from the continued weakness in the defense industry. Accordingly, the Company performed an impairment test of goodwill for this reporting unit, with the assistance of a third party valuation firm. Based on the results of this test, the Company determined that the entire balance of goodwill included in this reporting unit was impaired and recorded an impairment charge of $1,015. | ||||||||||
The Company determined the fair value of the OEM of Electric Motion Systems reporting unit using the discounted cash flows method. The material assumptions used for 2012 annual test were five years of projected net cash flows (in accordance with the Company's budget), a discount rate of 17.72% and a long-term growth rate of 2.0%. The Company considered historical rates and current market conditions when determining the discount and growth rates to use in its analyses. | ||||||||||
OTHER_BALANCE_SHEET_SUPPLEMENT
OTHER BALANCE SHEET SUPPLEMENTALS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
OTHER BALANCE SHEETS SUPPLEMENTAL [Abstract] | |||||||||||
OTHER BALANCE SHEETS SUPPLEMENTAL | NOTE 10 - OTHER BALANCE SHEETS SUPPLEMENTALS | ||||||||||
Other accounts receivable and prepaid expenses: | |||||||||||
December 31, | |||||||||||
2014 | 2013 (*) | ||||||||||
Deferred tax asset | $ | 1,694 | $ | 1,589 | |||||||
Government authorities | 1,568 | 1,154 | |||||||||
Prepaid expenses | 971 | 498 | |||||||||
Amounts due from related parties | - | 5 | |||||||||
Other | 65 | 68 | |||||||||
$ | 4,298 | $ | 3,314 | ||||||||
(*) | Excluding held for sale assets at December 31, 2013 | ||||||||||
Other account payable and accrued expenses: | |||||||||||
December 31, | |||||||||||
2014 | 2013 (*) | ||||||||||
Employees and payroll accruals | $ | 2,149 | $ | 3,077 | |||||||
Accrued expenses | 535 | 732 | |||||||||
Government authorities | 428 | 483 | |||||||||
Advances from customers | 741 | 840 | |||||||||
Warranty provision | 251 | 229 | |||||||||
Accrued royalties | 368 | 336 | |||||||||
Deferred tax liability | 592 | 40 | |||||||||
Forward transactions | 463 | - | |||||||||
Other accrued expenses | 124 | 78 | |||||||||
$ | 5,651 | $ | 5,815 | ||||||||
(*) | Excluding held for sale assets at December 31, 2013 |
TRANSACTIONS_WITH_RELATED_PART
TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
TRANSACTIONS WITH RELATED PARTIES [Abstract] | ||||||||||||||||
TRANSACTIONS WITH RELATED PARTIES | NOTE 11 - TRANSACTIONS WITH RELATED PARTIES | |||||||||||||||
a. Transactions with TAT Industries LTD. (“TAT Industries”): | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Management fees (1) | - | $ | 29 | $ | 50 | |||||||||||
Lease expenses (2) | - | $ | 424 | $ | 416 | |||||||||||
-1 | According to the agreement between TAT and TAT Industries, TAT Industries will pay the Company an annual management fee in the amount of $50. The management fees are recorded as a reduction of general and administration expenses. Such services provided to TAT Industries until the purchase of TAT's shares by FIMI Funds on August 7, 2013 (see also note 1). | |||||||||||||||
-2 | During 2000, TAT entered into a lease agreement with TAT Industries, pursuant to which the Company leases from TAT Industries approximately 344,000 square feet, including 90,000 square feet of manufacturing, office and storage space, for a period of 24 years and eleven months for an annual rental fee which is subject to revaluation every fifth year by a real estate appraiser, with an additional incremental payment of 2% per year. | |||||||||||||||
In 2010, following a revaluation by a real estate appraiser, the rental fee was increased to $400 per year with an additional incremental payment of 2% per year. The rental fee will be revaluated again in 2015 (the "Next Revaluation"). The Company's Audit Committee has reapproved the said agreement until the Next Revaluation. | ||||||||||||||||
As of August 7, 2013, following the sale of TAT's shares to FIMI, TAT Industries is no longer considered as related party. | ||||||||||||||||
b. Balances with related parties: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
FAVS - current asset | - | 5 | ||||||||||||||
Total asset | $ | - | $ | 5 | ||||||||||||
c. Transactions with related parties: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Management fees to shareholders (see item e below) | $ | - | $ | - | $ | 359 | ||||||||||
d. Bental was engaged in various agreements with the Non-controlling interest and other related parties for the rental, maintenance and other services provided to it, in connection with its plant and operations. Total amount paid by Bental for these services in 2013 and 2012 was $432, $505 , respectively. See also note 1(d). | ||||||||||||||||
e. In March 2012, the audit committee and the board of directors of TAT approved a new | ||||||||||||||||
three-year management agreement with Isal Amlat Investment (1993) Ltd. (“Isal Amlat”) commencing as of February 8, 2012 (the "New Management Agreement"). Each of TAT and Isal Amlat shall be entitled to terminate the New Management Agreement subject to a prior written notice of 4 months. Pursuant to the New Management Agreement, in consideration of the management services provided by Isal Amlat, TAT pays Isal Amlat management fees in a total annual amount of NIS 1,500,000 (approximately $400), linked to the Consumer Price Index to be paid on a monthly basis, plus VAT. In addition, Isal Amlat is entitled to repayment of expenses actually borne as part of providing the management services. The audit committee and board of directors of the Company will examine on a yearly basis, the management services actually provided to the Company, and shall examine whether a material change has occurred justifying the update of the management fees and/or the conditions of the New Management Agreement. The New Management Agreement was approved by the shareholders of TAT on June 28, 2012. | ||||||||||||||||
On August 21, 2012, the board of directors of TAT approved, following an approval of TAT's audit committee, a change to the New Management Agreement with Isal Amlat, effective from such date according to which the scope of the services provided by Isal Amlat to TAT were reduced and the annual management fees were also reduced by a total amount of NIS 570,000 (approximately $150 - the “reduced amount”). | ||||||||||||||||
Total amount paid by TAT for the management services in 2012, was $359. | ||||||||||||||||
In addition, the Company received management services from a private company (“Management company”) controlled by Mr. Nathan Galili (“Galili”), CEO of KNM Industries Ltd. (a private company through which Isal Amlat indirectly holding control in the Company). The management services will consist of a half-time of Galili, which value is more than the reduced amount, and will additionally include its services as active chairman of Bental. For those services the Company will pay the Management company annual management fees equal to the reduced amount, in addition to NIS 7,000 (approximately $2, plus VAT), as a monthly remuneration for travelling expenses to Bental. In addition, if during the service period or within a twelve month period from the end of the service period the Company will sell its holding in Bental, for more than $6,600 (“low threshold”), then the Management company will be eligible for a bonus which will be determined as follows: | ||||||||||||||||
2% out of the 1st million above the low threshold, the Company will receive for its holding in Bental, plus an additional 3% out of the 2nd million above the low threshold the Company will receive for its holding in Bental, plus an additional 5% out of the 3rd million above the low threshold the Company will receive for its holding in Bental. It is clarified that in any event the amount of the bonus shall not exceed $100. | ||||||||||||||||
Such management services will be provided until February 8, 2015 (the end of term of the new management agreement with Isal Amlat). Each of the parties (TAT and the Management company) may terminate the agreement with a prior written notice of four months. | ||||||||||||||||
On January 27, 2013, TAT informed Isal Amlat that no management services had been provided by Isal Amlat to TAT during the preceding months, and that TAT decided to immediately terminate the Management Agreement. At that date TAT ceased paying management fees. | ||||||||||||||||
On February 8, 2013, Mr. Galili informed TAT on the termination of the engagement with TAT, effectively immediately while management fees will be paid throughout June 8, 2013 at the end of the four-month notice period. | ||||||||||||||||
f. On June 14, 2010, TAT and Bental signed a management services agreement. TAT agreed to provide Bental with various services including investor relations, business development, marketing and advertising consulting, legal services and the appointing of TAT personnel in Bental board of directors. The agreement was effective since January 1, 2010 and the annual management fees were in the amount of $120. Such management fees were paid until June 30, 2013, following which the extent of such services reduced significantly together with the intent of the Company to sell its entire interest in Bental (see also note 4). | ||||||||||||||||
g. In December 2009, Piedmont provided a guarantee for a period of one year up to $7,000 in respect of FAvS' debt taken in connection with the acquisition of AeTR. As of December 31, 2012, the guarantee amount is $4,600 (such guarantee was released on March 18, 2013, see also note 3(a)). | ||||||||||||||||
h. On September 7, 2011, TAT received a loan from Bental for the total amount of NIS 2.5 million (approximately $700), to be repaid in whole at the end of a 24 month period (the “Term”). The principal amount bears interest of Prime + 1% payable on a quarterly basis and may be repaid at any time during the term upon TAT's discretion. Simultaneously with such loan, Bental received a loan from an Israeli bank for similar amount under similar terms and conditions. Such loan amount was repaid by TAT to Bental on September 8, 2013, which in turn Bental made, on the same date, an on time repayment of the loan in the total amount of NIS2.5 million (approximately $693). | ||||||||||||||||
SHORT_TERM_BANK_CREDIT_AND_LON
SHORT TERM BANK CREDIT AND LONG TERM LOANS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SHORT TERM BANK CREDIT AND LONG TERM LOANS [Abstract] | ||||||||||
SHORT TERM BANK CREDIT AND LONG TERM LOANS | NOTE 12 - SHORT TERM BANK CREDIT AND LONG TERM LOANS | |||||||||
a. Terms of the long-term loans and balances: | ||||||||||
As of December 31, 2014, there were no long-term loans and balances. | ||||||||||
Interest Rate | ||||||||||
Currency | 31-Dec-13 | Years of | December 31, | |||||||
of loan | ||||||||||
Maturity | 2013 | |||||||||
Current maturities of long-term loan (*) | $ | 2.50%-3.50% | 2009-2014 | $ | 884 | |||||
* | Loans received by TAT from an Israeli bank in a total amount of $6,250 out of which $5,000 were received during year 2008 and additional $1,250 were received during year 2009. The loans amount was to be repaid in four annual installments commencing 2011. These loans bear quarterly interest of Libor + 3.5% and Libor + 1.85%, respectively. Through November, 2012 TAT prepaid $3,775, following which the remaining balance was $2,477. In September, 2011, TAT reached agreement with its lending bank to adjust certain financial covenants related to the said loans it was failing to meet at the time. On May 1, 2013, the Company made a payment of $1,593 in accordance with its payment schedule following which the remaining balance was $884. As of December 31, 2013 the Company met all financial covenants related to such loans (see also note 14(f)(2)). | |||||||||
Group provided certain guarantees and covenants to secure its long-term loans, see note 14(e) and 14(f). | ||||||||||
b. As of December 31, 2014 and 2013 TAT's short-term bank credit balance amounted to $0 and $26, respectively. | ||||||||||
LONGTERM_EMPLOYEERELATED_OBLIG
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS [Abstract] | |||||||||||||
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | NOTE 13 - LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | ||||||||||||
Severance pay: | |||||||||||||
TAT's liability for severance pay, for their Israeli employees, is calculated pursuant to Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. The liability is presented on the undiscounted basis. The Israeli company records an expense for the net increase in its severance liability. | |||||||||||||
TAT's liability for all of its Israeli employees is fully covered for by monthly deposits with severance pay funds, insurance policies, Mivtahim Social Insurance Institution Ltd. ("Mivtahim"). The liability covered by deposits with Mivtahim is irrevocably transferred to Mivtahim. Accordingly, neither the amounts accumulated with Mivtahim, nor the corresponding liabilities for severance pay are reflected in the consolidated balance sheet. | |||||||||||||
The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrender value of these policies and includes profits (or loss) accumulated through the balance sheet date. | |||||||||||||
Severance pay expenses for TAT were $555, $555 and $495 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Limco-Piedmont sponsors a 401(K) profit sharing plan covering substantially all of its employees. The plan permits the employer to contribute a discretionary amount for a plan year, which the employer designates a qualified non-elective contribution. Contributions to plan by Limco-Piedmont were $251, $253 and $209 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Group (excluding discontinued operation) expects to contribute approximately $820 in 2015 to the pension funds and insurance companies in respect of their severance and pension pay obligations. | |||||||||||||
The Israeli company is required to make severance payment upon dismissal of an employee or upon termination of employment in certain circumstances. The severance payment liability to the employees is recorded on the Company's balance sheets under “Employee rights upon retirement.” The liability is recorded as if it were payable at each balance sheet date on an undiscounted basis. | |||||||||||||
The liability is funded in part from the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the balance sheets under “Liability in respect of employee rights upon retirement.” These policies are the Company's assets. However, under employment agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. | |||||||||||||
According to Section 14 of the Israeli Severance Pay Law, the Israeli company liability for certain employees, according to their employment agreements, make regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee's rights upon retirement. The Israeli company is fully relieved from any severance pay liability with respect to each such employee after they make the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Israeli Company balance sheets, as the amounts funded are not under the control and management of the Israeli company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plans”). | |||||||||||||
The amounts of severance payments, actually paid to retired employees, by TAT were $568, $226 and $26 for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
TAT expects to pay $1,538 in future benefits to their employees during 2015 to 2024 upon their normal retirement age - see breakdown below. The amount was determined based on the employee's current salary rates and the number of service years that will be accumulated upon the retirement date. These amounts do not include amounts that might be paid to employees that will cease working for the Israeli company before their normal retirement age. | |||||||||||||
Year | Amount | ||||||||||||
2015 | $ | 201 | |||||||||||
2016 | 132 | ||||||||||||
2017 | 152 | ||||||||||||
2018 | 298 | ||||||||||||
2019 | 168 | ||||||||||||
Thereafter (through 2024) | 587 | ||||||||||||
$ | 1,538 |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 14 - COMMITMENTS AND CONTINGENT LIABILITIES | |||||
a.Commissions arrangements: | ||||||
The Group is committed to pay marketing commissions to sale agents at a range of 1% to 12% of total sales contracts which were received through promotion and distribution carried out by them. Commission expenses were $701, $781 and $670 for the years ended December 31, 2014, 2013 and 2012, respectively. The commissions were recorded as part of the selling and marketing expenses. | ||||||
b.Royalty commitments: | ||||||
(1)TAT is committed to pay royalties to third parties through 2014, ranging from 12% to 17% of sales of products developed by the third parties. Royalty expenses were $270, $177 and $202 for the years ended December 31, 2014, 2013 and 2012, respectively. The royalties were recorded as part of the cost of revenues. | ||||||
(2) Limco-Piedmont is committed to pay royalties to a third party, ranging between 3% to 5% of sales of products purchased from the third party, after deducting related costs incurred by Limco-Piedmont. That third party is the exclusive manufacturer of the products for which Limco-Piedmont provide MRO services. In addition, Limco-Piedmont is committed to pay said third party royalties, ranging 1.5% to 10% of sales of additional products exclusively manufactured by the third party. In addition, Limco-Piedmont is committed to pay said third party royalties, ranging from 10% to 20%, on parts reclaimed to use in MRO services or sold to our customers when they are manufactured by the third party. Royalty expenses were $680, $400 and $232 for the years ended December 31, 2014, 2013 and 2012, respectively. The royalties were recorded as part of the cost of revenues. | ||||||
c.Lease commitments: | ||||||
Limco-Piedmont leases some of its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2017. Certain leases contain renewal options as defined in the agreements. Lease expense (excluding related parties) totaled $271, $215 and $233 for the years ended December 31, 2014, 2013, and 2012 respectively. | ||||||
TAT leases its factory from TAT Industries until 2020; (see also note 11(a)). | ||||||
As of December 31, 2014, future minimum rental payments under non-cancelable operating leases are as follows: | ||||||
Year | Amount | |||||
2015 | $ | 814 | ||||
2016 | 814 | |||||
2017 | 762 | |||||
2018 | 700 | |||||
2019 | 714 | |||||
2020 | 729 | |||||
Total | $ | 4,533 | ||||
d.Legal claims contingencies: | ||||||
(1)On November 29, 2011, a Factoring company ("the plaintiff"), filed a claim with the magistrates court in Tel-Aviv against the Company, and eleven others ("the respondents"), jointly and severally, for the amount of NIS6,151 thousand (approximately $1,620). The plaintiff's case against the Company is based on invoices that were presented to the plaintiff by supplier of the Company (“the supplier”), by virtue of assignment of rights, which were originally issued to the Company by the supplier for certain alleged services. On February 5, 2012, the Company filed for its statement of defense, in which it denied the plaintiff's claims and clarified that it acted according to the deed of assignment of rights, and that the invoices neither represent nor reflect real transactions and/or real services which were rendered. The Company its legal advisor are of the opinion that its exposure due to the claim filed is not probable and thus no provision was recorded in regard of that claim of December 31, 2014. | ||||||
e.Guarantees : | ||||||
(1)In order to secure TAT's liability to the Israeli customs, the Company provided a bank guarantee in the amount of $215. The guarantee is linked to the consumer price index and is valid until September 2015. | ||||||
(2)In order to secure the TAT's liability to the lessor of its premises, the Company provided a bank guarantee in the amount of $383. The guarantee is linked to the consumer price index and is valid until June 2015. | ||||||
f. Covenants and liens on assets: | ||||||
In order to secure bank loans in the amount of $884 as of December 31, 2013, TAT granted a specific lien on Bental's shares held by TAT - see also note 12(a). In addition, TAT is obligated to meet certain covenants, all of which have been met. Such covenants were released during 2014, as the remaining amount of the loan has been fully repaid. | ||||||
g. Vehicle Lease and Maintenance Agreements: | ||||||
The Company entered into several three-year lease and maintenance agreements for vehicles which are regularly amended as new vehicles are leased. The current monthly lease fees aggregate approximately $35,000. The expected lease payments for the years ending December 31, 2015, 2016 and 2017 are approximately $414,000, $110,000 and $12,000, respectively. | ||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||
SHAREHOLDERS' EQUITY | NOTE 15 - SHAREHOLDERS' EQUITY | ||||||||||||||
a.TAT's Ordinary shares confer upon their holders voting rights, the right to receive dividends, if declared, and any amounts payable upon the dissolution, liquidation or winding up of the affairs of TAT. | |||||||||||||||
b.Treasury purchase plan | |||||||||||||||
TAT's Board of Directors approved a stock repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934. The plan was for a period of 6 months and provided for the purchase of shares in an aggregate amount of up to $500. Such plan replaced and superseded a prior repurchase plan approved by TAT's Board of Directors on February 21, 2012. On November 21, 2012, the term of such stock repurchase plan ended. As of such date, the Company had purchased 16,433 shares for approximately $70 (average of $4.29 per share) constituting less than 0.1% of TAT's issued shares. | |||||||||||||||
The repurchased shares became dormant as defined in the Israeli Companies Law. | |||||||||||||||
A reconciliation of opening and closing balances of the number of ordinary shares outstanding is presented below: | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Balance outstanding at beginning of year | 8,805,236 | 8,798,570 | 8,815,003 | ||||||||||||
Purchase of treasury shares | - | - | -16,433 | ||||||||||||
Exercise of options | 3,108 | 6,666 | - | ||||||||||||
Balance outstanding at end of year | 8,808,344 | 8,805,236 | 8,798,570 | ||||||||||||
c. Stock option plans: | |||||||||||||||
(1) Following the approval of TAT's Audit committee and Board of Directors, on June 28, 2012, the Company's shareholders approved the 2012 stock option plan (the “2012 Plan”) to grant up to 380,000 options to purchase Ordinary shares, 0.9 NIS par value, of the Company to senior executives and certain members of the Board of Directors, at an exercise price as determined in the stock option plan. The Options vest over a three -year period (one-third each year), the vesting of 50% of the Options is subject, in addition, to certain minimum shareholders' equity during a period of 4 years from the grant date, unless the employee is no longer employed by the Company, in which case the options will be considered forfeited within 30 days. | |||||||||||||||
(2) On August 21, 2012, pursuant to the 2012 Plan, TAT's Board of Directors approved the grant of 330,000 Options, which were granted on October 4, 2012. (which is also considered the grant date). | |||||||||||||||
(3)On March 19, 2014, pursuant to the 2012 Plan, TAT's Board of Directors approved the grant of 195,000 Options, at an exercise price of $8.79 per share, to senior executives, which were granted on June 23, 2014 (which is also considered the grant date). | |||||||||||||||
(4)On November 30, 2014, pursuant to the 2012 Plan, TAT's Board of Directors approved the grant of 20,000 Options, at an exercise price of $7.34 per share, to senior executives, which were granted on November 30, 2014. | |||||||||||||||
The fair value of the Company's stock options granted under the 2012 plan for the year ended December 31, 2014 and 2012 (for the year ended December 31, 2013, no options were granted) was estimated using the following assumptions: | |||||||||||||||
2014 | 2012 | ||||||||||||||
Expected stock price volatility | 37.23 % - 39.14 % | 41.57% - 43.4% | |||||||||||||
Expected option life (in years) | 2.87 - 4 | 2.23 - 3.23 | |||||||||||||
Risk free interest rate | 0.48 % - 1.34 % | 0.23% - 0.32% | |||||||||||||
Dividend yield | 5 % - 4.6 % | 9.8% | |||||||||||||
The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of options. The volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations. The expected term of options is based on the simplified method. The Company is able to use the simplified method as the options qualify as “plain vanilla” options as defined by ASC 718-10-S99 and since the Company does not have sufficient historical exercise data to provide a reasonable basis to estimate expected term. Expected dividend yield is based upon historical and projected dividend activity and the risk-free interest rate assumption is based on observed interest rates appropriate for the expected term of the stock options granted. | |||||||||||||||
(5)The following table is a summary of the activity of TAT's stock Option plan: | |||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | |||||||||||||||
Number | Weighted | ||||||||||||||
of | average | ||||||||||||||
options | exercise | ||||||||||||||
price | |||||||||||||||
Outstanding at the beginning of the year | 145,000 | $ | 6.5 | ||||||||||||
Granted | 215,000 | 8.66 | |||||||||||||
Expired | |||||||||||||||
Forfeited | -40,000 | 8.79 | |||||||||||||
Exercised (*) | -85,000 | 6.5 | |||||||||||||
Outstanding at the end of the year | 235,000 | 8.28 | |||||||||||||
Exercisable options | 20,000 | $ | 6.5 | ||||||||||||
(*) | The aggregate intrinsic value for the options exercised by employees during 2014 was approximately $21. | ||||||||||||||
The weighted-average grant-date fair value of options granted in 2014 was $1.13 and $0.19 in 2012. The aggregate intrinsic value for the options outstanding as of December 31, 2014, 2013 and 2012 was $0, $212 and $0,respectively. | |||||||||||||||
As of December 31, 2014 total unrecognized compensation cost was $70.8 and is expected to be recognized over a weighted-average period of 1.41 years. | |||||||||||||||
d.Market Maker for TAT shares traded in Tel Aviv Stock Exchange | |||||||||||||||
On August 15, 2011, TAT entered into a Market Making agreement for its shares traded on the Tel Aviv Stock Exchange (TASE) with Harel Finance Trade & Securities Ltd. for the purpose of improving liquidity of TAT shares. The agreement is for a 12 month period, subject for TASE's approval. The agreement will be automatically extended in 12 month periods, unless otherwise terminated by either of the parties giving 30 days notice or in accordance with certain regulatory circumstances. TAT will pay an immaterial fee in connection with the said agreement. | |||||||||||||||
e.Dividends | |||||||||||||||
On March 19, 2014, TAT's Board declared a cash dividend in the total amount of $2 million (approximately NIS 6.9 million), or $0.22 per share (approximately NIS 0.76 per share), for all of the shareholders of TAT. The dividend was paid on May 7, 2014 to shareholders of record on April 21, 2014. | |||||||||||||||
f.Accumulated other comprehensive loss | |||||||||||||||
As of December 31, 2013, the entire amount of accumulated other comprehensive loss consists of amounts derived from foreign currency translation and is related to Bental. On March 27, 2014 after receiving all required approvals to consummate the closing, TAT sold its entire interest in Bental (see also note 4). | |||||||||||||||
EARNINGS_LOSS_PER_SHARE_EPS
EARNINGS (LOSS) PER SHARE ("EPS") | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
EARNINGS (LOSS) PER SHARE ("EPS")[Abstract] | |||||||||||||||
EARNINGS (LOSS) PER SHARE ("EPS") | NOTE 16 - EARNINGS (LOSS) PER SHARE (“EPS”) | ||||||||||||||
Basic and diluted earnings (loss) per share are based on the weighted average number of ordinary shares outstanding. Diluted EPS is based on those shares used in basic EPS plus shares that would have been outstanding assuming issuance of ordinary shares for all dilutive potential ordinary shares outstanding. | |||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Numerator for EPS: | |||||||||||||||
Net income (loss) from continuing operations | $ | 1,432 | $ | 5,251 | $ | -567 | |||||||||
Net loss from discontinued operations, net of tax | - | -2,429 | -1,147 | ||||||||||||
Denominator for EPS: | |||||||||||||||
Weighted average shares outstanding – basic | 8,805,495 | 8,799,237 | 8,808,075 | ||||||||||||
Dilutive shares | 21,047 | 9,683 | - | ||||||||||||
Weighted average shares outstanding – diluted | 8,826,542 | 8,808,920 | 8,808,075 | ||||||||||||
EPS attributable to controlling interest: | |||||||||||||||
Basic and diluted | |||||||||||||||
Net income (loss) from continuing operations | $ | 0.16 | $ | 0.6 | $ | -0.06 | |||||||||
Loss from discontinued operations | $ | - | $ | -0.28 | $ | -0.13 | |||||||||
Diluted income (loss) per share does not include 175,000, 0 and 330,000 options, for the years ended December 31, 2014, 2013 and 2012 respectively because the options are anti-dilutive. | |||||||||||||||
Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans. | |||||||||||||||
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
TAXES ON INCOME [Abstract] | ||||||||||||||||
INCOME TAXES | NOTE 17 - TAXES ON INCOME | |||||||||||||||
a.Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): | ||||||||||||||||
Some facilities of the Israeli company in Israel have been granted approved enterprise status under the above law. | ||||||||||||||||
The main tax benefits available are: | ||||||||||||||||
In respect of income derived from the approved enterprise, the Israeli company were entitled to reduced tax rates during a period of up to seven years from the year in which such enterprise first earn taxable income (limited to twelve years from commencement of production or fourteen years from the date of approval, whichever is earlier). | ||||||||||||||||
Income derived from the approved enterprise is tax exempt during the first two years of the seven year tax benefit period as above, and is subject to a reduced tax rate not exceeding 25% during the remaining years of benefits. | ||||||||||||||||
In the event of distribution of a cash dividend from income which was tax exempt as above, the Company would have to pay the 25% tax in respect of the amount distributed. Company has policy not to distribute cash dividends from such exempt income. As of December 31, 2014, the Company had accumulated a total amount of approximately $1,728 of exempt income. | ||||||||||||||||
Conditions for the entitlement of benefits | ||||||||||||||||
The above mentioned benefits were subject to the fulfillment of the terms specified in the Law, the related regulations and the approval plans as specified above. Failure to fulfill these terms might result the cancellation of the tax benefits (all or some), in which case the Israeli companies will be required to repay all benefits including interest and fines. Management estimates that the Israeli companies comply with all terms as mentioned above. | ||||||||||||||||
Preferred Enterprises | ||||||||||||||||
Additional amendments to the Law became effective in January 2011 (the “2011 Amendment”). Under the 2011 Amendment, income derived by ‘Preferred Companies' from ‘Preferred Enterprises' (both as defined in the 2011 Amendment) would be subject to a uniform rate of corporate tax as opposed to the current incentives that are limited to income from Approved or Benefiting Enterprises during their benefits period. According to the 2011 Amendment, the uniform tax rate on such income, referred to as ‘Preferred Income', would be 10% in areas in Israel that are designated as Development Zone A and 15% elsewhere in Israel during 2011-2012, 7% and 12.5%, respectively, in 2013-2014, and 6% and 12%, respectively, thereafter. Income derived by a Preferred Company from a ‘Special Preferred Enterprise' (as defined in the Approved Enterprise) would enjoy further reduced tax rates for a period of ten years of 5% in Zone A and 8% elsewhere. As with dividends distributed from taxable income derived from an Approved Enterprise or Benefiting Enterprise during the applicable benefits period, dividends distributed from Preferred Income would be subject to a 15% tax (or lower, if so provided under an applicable tax treaty), which would generally be withheld by the distributing company. While the Company may incur additional tax liability in the event of distribution of dividends from tax exempt income generated from its Approved and Benefiting Enterprises, no additional tax liability will be incurred by the Company in the event of distribution of dividends from income taxed in accordance with the 2011 Amendment. | ||||||||||||||||
Under the transitional provisions of the 2011 Amendment, the Company elected to irrevocably implement the 2011 Amendment, commencing 2011 and thereafter, and be regarded as a "Preferred Enterprise" with respect to its existing Approved and Benefiting Enterprises while waiving benefits provided under the legislation prior to the 2011 Amendment. | ||||||||||||||||
Under a recent amendment, announced in August 2013, beginning in 2014, dividends paid out of income attributed to a Preferred Enterprise will be subject to a withholding tax rate of 20% (instead of 15%). In addition, tax rates under the Preferred Enterprise were also raised effective as of January 1, 2014 to 9% in Zone A and 16% elsewhere (instead of the 6% and 12%, respectively). | ||||||||||||||||
TAT is located in area in Israel that is designated as elsewhere and as such entitled to reduce tax rates of 15% during 2011-2012, 12.5% in 2013, and 16% in 2014 and thereafter. | ||||||||||||||||
b.Corporate tax rate in Israel | ||||||||||||||||
The corporate tax rate for Israel is 26.5%, 25%, and 25%. for the year ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
c.U.S. subsidiaries | ||||||||||||||||
U.S. subsidiaries are taxed based on federal and state tax laws. The statutory tax rate for 2014, 2013, and 2012 was 38%. | ||||||||||||||||
d.Tax assessments | ||||||||||||||||
TAT's income tax assessments are considered final through 2011. | ||||||||||||||||
Limco-piedmont income tax assessments are considered final through 2009. | ||||||||||||||||
TAT-GAL which was incorporated in 2008 has not received final tax assessment yet. | ||||||||||||||||
e. Income tax reconciliation: | ||||||||||||||||
A reconciliation of the theoretical tax expense assuming all income is taxed at the statutory rate to taxes on income (tax benefit) as reported in the statements of income: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Income before taxes on income as reported in the statements of income | $ | 2,525 | $ | 5,267 | $ | 5,279 | ||||||||||
Statutory tax rate in Israel | 26.50% | 25% | 25% | |||||||||||||
Theoretical taxes on income | $ | 669 | $ | 1,317 | $ | 1,320 | ||||||||||
Increase (decrease) in taxes on income resulting from: | ||||||||||||||||
Tax adjustment for foreign subsidiaries subject to a different tax rate | 457 | 453 | 434 | |||||||||||||
Reduced tax rate on income derived from "Preferred Enterprises" plans | 156 | -255 | -143 | |||||||||||||
Change in enacted tax rates | - | 34 | - | |||||||||||||
Exempt income | - | - | -4 | |||||||||||||
Valuation allowance | -100 | 294 | 499 | |||||||||||||
Tax in respect of prior years | -44 | -342 | -83 | |||||||||||||
Permanent differences | 222 | -460 | 67 | |||||||||||||
Taxes on income as reported in the statements of income | $ | 1,360 | $ | 1,041 | $ | 2,090 | ||||||||||
f.Income (loss) before taxes on income (tax benefit) is comprised as follows: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Domestic (Israel) | $ | -1,659 | $ | 1,942 | $ | 2,046 | ||||||||||
Foreign (United States) | 4,184 | 3,325 | 3,233 | |||||||||||||
$ | 2,525 | $ | 5,267 | $ | 5,279 | |||||||||||
g.Taxes on income (tax benefit) included in the statements of income: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Current: | ||||||||||||||||
Domestic (Israel) | $ | -94 | $ | 160 | $ | 282 | ||||||||||
Foreign (United States) | 237 | 334 | 295 | |||||||||||||
143 | 494 | 577 | ||||||||||||||
Deferred: | ||||||||||||||||
Domestic (Israel) | -36 | 15 | 115 | |||||||||||||
Foreign (United States) | 1,297 | 874 | 1,481 | |||||||||||||
1,261 | 889 | 1,596 | ||||||||||||||
Previous years: | ||||||||||||||||
Domestic (Israel) | - | -209 | -45 | |||||||||||||
Foreign (United States) | -44 | -133 | -38 | |||||||||||||
-44 | -342 | -83 | ||||||||||||||
$ | 1,360 | $ | 1,041 | $ | 2,090 | |||||||||||
h.Deferred income taxes: | ||||||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of TAT's deferred tax liabilities and assets are as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Deferred tax assets (liabilities): | ||||||||||||||||
Allowance for doubtful accounts | $ | 47 | $ | 47 | ||||||||||||
Unrealized gains | 174 | 146 | ||||||||||||||
Provisions for employee benefits | 259 | 277 | ||||||||||||||
Inventory | 957 | 920 | ||||||||||||||
Other temporary differences | 257 | 199 | ||||||||||||||
Deferred tax assets - short-term- other accounts receivables | $ | 1,694 | $ | 1,589 | ||||||||||||
Goodwill and intangible assets | $ | 533 | $ | 671 | ||||||||||||
Property, plant and equipment | 21 | 18 | ||||||||||||||
Provisions for employee benefits and other temporary differences | 26 | 38 | ||||||||||||||
Tax credits carryforward | 558 | 447 | ||||||||||||||
Capital and state tax losses carryforward | 3,574 | 3,306 | ||||||||||||||
Net operating losses carryforward | 373 | 419 | ||||||||||||||
Other | 39 | 23 | ||||||||||||||
Deferred tax assets, before valuation allowance – Long-term | 5,124 | 4,922 | ||||||||||||||
Valuation allowance | -3,574 | -3,306 | ||||||||||||||
Deferred tax assets, net – long-term | $ | 1,550 | $ | 1,616 | ||||||||||||
Other temporary differences deferred tax liabilities – short-term- other accounts receivable | $ | -592 | $ | -40 | ||||||||||||
Property, plant and equipment and intangible assets | -1,736 | -1,003 | ||||||||||||||
Other | -38 | -55 | ||||||||||||||
Deferred tax Liabilities - Long-term | $ | -1,774 | $ | -1,058 | ||||||||||||
As of December 31, 2014, TAT did not provide a valuation allowance in respect of deferred tax assets related to capital losses and state tax losses, since management currently believes that it is more likely than not that the deferred tax asset will be realized in the future. For capital losses and state tax losses, incurred by the U.S. subsidiaries, the Company provides valuation allowance as it cannot predict its future realization. | ||||||||||||||||
The following table summarizes the changes in the valuation allowance for deferred tax assets: | ||||||||||||||||
Balance, January 1, 2012 | $ | 184 | ||||||||||||||
Addition charged to expenses | 1,639 | |||||||||||||||
Balance, December 31, 2012 | 1,823 | |||||||||||||||
Addition charged to expenses | 1,483 | |||||||||||||||
Balance, December 31,2013 | 3,306 | |||||||||||||||
Addition charged to expenses | 268 | |||||||||||||||
Balance, December 31,2014 | $ | 3,574 | ||||||||||||||
TAT does not intend to distribute earnings of a foreign subsidiary aggregating up to approximately $10,849 (tax earnings and profits) as of December 31, 2014, and accordingly, no deferred tax liability has been established relative to these earnings. If such profits and earnings are distributed by cash dividend, it would be taxed at tax rate applicable to such distribution (25%) and an income tax liability of up to approximately $2,712 would be incurred as of December 31, 2014. | ||||||||||||||||
TAT does not intend to distribute tax-exempt earnings deriving from Approved Enterprise aggregating approximately $1,728 as of December 31, 2014, and accordingly, no deferred tax liability has been established related to these earnings. If such tax-exempt income is distributed by cash dividend (including a liquidation dividend), it would be taxed at the reduced corporate tax rate applicable to such profits (25%) and an income tax liability of up to approximately $432 would be incurred as of December 31, 2014 . | ||||||||||||||||
i.A reconciliation of the beginning and ending amount of unrecognized provision is as follows: | ||||||||||||||||
Amount | ||||||||||||||||
Balance at January 1, 2012 | $ | 86 | ||||||||||||||
Exchange rate differences | -2 | |||||||||||||||
Balance at December 31, 2012 | 84 | |||||||||||||||
Exchange rate differences | 6 | |||||||||||||||
Utilization upon assessment | -90 | |||||||||||||||
Balance at December 31, 2013 | - | |||||||||||||||
Exchange rate differences | - | |||||||||||||||
Utilization upon assessment | - | |||||||||||||||
Balance at December 31, 2014 | $ | - | ||||||||||||||
SEGMENT_INFORMATION
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 | Heat Transfer | MRO services | Amounts not | Elimination | Consolidated | ||||||||||||||||||||||||||
Management | Services and | for Aviation | allocated to | of inter- | |||||||||||||||||||||||||||
Solutions | Products | Components | segments | company | |||||||||||||||||||||||||||
sales | |||||||||||||||||||||||||||||||
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 | Heat Transfer | MRO services | Amounts not | Elimination | Consolidated | ||||||||||||||||||||||||||
Management | Services and | for Aviation | allocated to | of inter- | |||||||||||||||||||||||||||
Solutions | Products | Components | segments | company | |||||||||||||||||||||||||||
sales | |||||||||||||||||||||||||||||||
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 | MRO services | Amounts not | Elimination | Consolidated | ||||||||||||||||||||||||||
Services and | for Aviation Components | allocated to | of inter- | ||||||||||||||||||||||||||||
Products | segments | company | |||||||||||||||||||||||||||||
sales | |||||||||||||||||||||||||||||||
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 | Heat Transfer | MRO services for | Amounts not | Consolidated | |||||||||||||||||||||||||||
Management | Services and | Aviation | allocated to | ||||||||||||||||||||||||||||
Solutions | Products | Components | segments | ||||||||||||||||||||||||||||
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 | Heat Transfer | MRO services for | Amounts not | Consolidated | |||||||||||||||||||||||||||
Management | Services and | Aviation | allocated to | ||||||||||||||||||||||||||||
Solutions | Products | Components | segments | ||||||||||||||||||||||||||||
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 | Amounts not allocated to | Consolidated | ||||||||||||||||||||||||||
for Aviation Components | segments | ||||||||||||||||||||||||||||||
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. |
ENTITYWIDE_DISCLOSURE
ENTITY-WIDE DISCLOSURE | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
ENTITY-WIDE DISCLOSURE [Abstract] | ||||||||||||||||||||||||||
ENTITY-WIDE DISCLOSURE | NOTE 19 - ENTITY-WIDE DISCLOSURE | |||||||||||||||||||||||||
a. Total revenues and long-lived assets - by geographical location were as follows: | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Total revenues | Long-lived assets | Total revenues (**) | Long-lived assets (*) | Total revenues (**) | ||||||||||||||||||||||
Sale of products | ||||||||||||||||||||||||||
Israel | $ | 4,807 | $ | 5,830 | $ | 6,248 | $ | 5,748 | $ | 9,147 | ||||||||||||||||
United states | 18,886 | - | 18,016 | - | 16,475 | |||||||||||||||||||||
France | 3,642 | - | 5,482 | - | 4,604 | |||||||||||||||||||||
Rest of Europe | 2,257 | - | 2,292 | - | 1,966 | |||||||||||||||||||||
Other | 1,771 | - | 2,326 | - | 4,071 | |||||||||||||||||||||
$ | 31,363 | $ | 5,830 | $ | 34,364 | $ | 5,748 | $ | 36,263 | |||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Total revenues | Long-lived assets | Total revenues (**) | Long-lived assets (*) | Total revenues (**) | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
Israel | $ | 834 | $ | - | $ | 612 | $ | - | $ | 468 | ||||||||||||||||
United states | 31,267 | 5,694 | 27,639 | 5,399 | 25,648 | |||||||||||||||||||||
Netherland | 1,734 | - | 1,553 | - | 3,303 | |||||||||||||||||||||
Rest of Europe | 8,786 | - | 7,658 | - | 4,624 | |||||||||||||||||||||
Other | 6,742 | - | 7,725 | - | 7,609 | |||||||||||||||||||||
$ | 49,363 | $ | 5,694 | $ | 45,187 | $ | 5,399 | $ | 41,652 | |||||||||||||||||
(*) | Excluding held for sale assets at December 31, 2013 | |||||||||||||||||||||||||
(**) | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. | |||||||||||||||||||||||||
b. Major Customers | ||||||||||||||||||||||||||
No single customer accounted for 10% or more of Group's total net revenue in any year presented. | ||||||||||||||||||||||||||
SELECTED_STATEMENTS_OF_INCOME_
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | |||||||||||||||
SELECTED STATEMENTS OF INCOME DATA | NOTE 20 - SELECTED STATEMENTS OF INCOME DATA | ||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Financial expenses, net (*): | |||||||||||||||
Financial income: | |||||||||||||||
Foreign currency gains | $ | 975 | $ | 661 | $ | 1,294 | |||||||||
Derivatives | 27 | 399 | |||||||||||||
Interest on tax refund | 150 | 95 | 53 | ||||||||||||
Interest on cash equivalents, short-term bank deposits and others | 91 | 114 | 242 | ||||||||||||
1,216 | 897 | 1,988 | |||||||||||||
Financial expenses (*): | |||||||||||||||
Bank charges | -97 | -77 | -71 | ||||||||||||
Interest on short-term loans | -8 | -18 | -98 | ||||||||||||
Interest on long-term loans | -8 | -66 | -120 | ||||||||||||
Foreign currency losses | -1,028 | -786 | -1,376 | ||||||||||||
Forward transactions losses | -1,369 | - | - | ||||||||||||
Derivatives | - | - | -321 | ||||||||||||
Others | - | - | -108 | ||||||||||||
-2,510 | -947 | -2,094 | |||||||||||||
$ | -1,294 | $ | -50 | $ | -106 | ||||||||||
(*) Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. | |||||||||||||||
SUPPLEMENTAL_CONSOLIDATED_BALA
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION [Abstract] | |||||||||||
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | NOTE 21 - SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | ||||||||||
Allowance for | |||||||||||
Warranty provision | Doubtful Accounts | ||||||||||
Balance, as of January 1, 2012 | $ | 288 | $ | 190 | |||||||
Additions | 196 | 258 | |||||||||
Deductions | -208 | -72 | |||||||||
Balance, as of December 31, 2012 | 276 | 376 | |||||||||
Additions | 186 | 17 | |||||||||
Deductions | -190 | -270 | |||||||||
Less: Held for sale | -43 | - | |||||||||
Balance, as of December 31, 2013 | 229 | 123 | |||||||||
Additions | 286 | 107 | |||||||||
Deductions | -264 | -105 | |||||||||
Balance, as of December 31, 2014 | $ | 251 | $ | 125 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Dec. 31, 2014 | ||
SUBSEQUENT EVENTS [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 22 - SUBSEQUENT EVENTS | |
(1) | On March 11, 2015, Piedmont Aviation Component Services, LLC , an indirect subsidiary of TAT, entered into an agreement to sell 237,932 shares of Class B Common Stock of FAvS representing 23.18% of FAvS' share capital and its entire holdings (16,253) of FAvS' Series A Preferred stock. The purchase price for the Class B Shares is $8.40 per Class B Shares, for an aggregate purchase price of $1,999, and the purchase price for the Series A Preferred stock is $100 per Preferred Share, for an aggregate purchase price of $1,625. The total gain from the sale of FAvS' stock is $1,395. The company owns 5% of FAvS' after the transaction. | |
(2) | On November 29, 2011, a factoring company ("the plaintiff"), filed a claim with the magistrates court in Tel-Aviv against the Company and eleven others ("the respondents"), jointly and severally, for the amount of NIS6,151 (approximately $1,620 thousand). The plaintiff and the Company have reached a settlement agreement pursuant to which the court proceedings against the Company would be terminated. The court confirmed such settlement agreement on March 9, 2015. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Use of estimates in the preparation of financial statement | a. Use of estimates in the preparation of financial statement | ||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose the nature of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. | |||
As applicable to these financial statements, the most significant estimates and assumptions relate to: revenue recognition, recoverability of inventory, provision for doubtful accounts, impairment of long lived assets, impairment of investment in affiliated company, contingencies, provision for taxes and the realizability of deferred tax assets. | |||
Functional currency | b. Functional currency | ||
The majority of the TAT's revenues are generated in U.S. dollars ("dollars") and a substantial portion of TAT's costs are incurred in dollars. In addition, a significant portion of the TAT's financing has been obtained in dollars. Accordingly, the dollar is the currency of the primary economic environment in which TAT operates and accordingly its functional and reporting currency is the dollar. | |||
Limco's and Piedmont's (“U.S. subsidiaries”) revenues are generated in dollars and its costs are incurred in dollars. In addition, the U.S. subsidiaries financing has been obtained in dollars. Accordingly, the dollar is the currency of the primary economic environment in which the U.S. subsidiaries operate and accordingly its functional and reporting currency is the dollar. | |||
Monetary accounts maintained in currencies other than the dollar are re-measured using the representative foreign exchange rate at the balance sheet date. Operational accounts and non-monetary balance sheet accounts are measured and recorded at the rate in effect at the date of the transaction. The effects of foreign currency re-measurement are recorded in financial income (expenses), net. | |||
Principles of consolidation | c. Principles of consolidation | ||
The consolidated financial statements include the accounts of TAT and its subsidiaries. In these financial statements, “subsidiaries” are companies over which TAT has over 50% voting control and the financial statements of which are consolidated with those of the Company. | |||
Intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. Non-controlling interests are included in equity. | |||
Cash and Cash equivalents | d. Cash and Cash equivalents | ||
All highly liquid investments, which include short-term bank deposits and money market accounts, that are not restricted as to withdrawal or use, and short-term debentures, the period to maturity of which do not exceed three months at the time of investment, are considered to be cash equivalents. | |||
Short-term bank deposits | e. Short-term bank deposits | ||
Bank deposits with maturities of more than three months but less than one year are included in short-term deposits. Such short-term deposits are in Dollars and bear interest at an average annual rate of approximately 0.6%. in 2014 and 2013. | |||
Accounts receivable-trade, net | f. Accounts receivable-trade, net | ||
The Group's accounts receivable balances are due from customers primarily in the airline and defense industries. Credit is extended based on evaluation of a customer's financial condition and generally, collateral is not required. Trade accounts receivable from sales of services and products are typically due from customers within 30 - 90 days. Trade accounts receivable balances are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than their original contractual payment terms are considered past due. The Group determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Group's previous loss history from such customers, customer's current ability to pay its obligation to TAT and the condition of the general economy and the industry as a whole. The Group writes-off accounts receivable when they become uncollectible. Payments subsequently received on such receivables are credited against earnings. The allowance for doubtful accounts is determined with respect to specific debts that are doubtful of collection. | |||
Inventories | g. Inventories | ||
Inventories are measured at the lower of cost or market. | |||
Cost of inventories is determined as follows: | |||
On the basis of actual cost | - | Raw materials and parts | |
On the basis of actual cost which takes into account materials, labor and other direct and indirect manufacturing costs, or identifiable direct costs. | - | Work in progress and Finished goods | |
Since the Group sells products and services related to airplane accessories (heat transfer equipment, defined in note 1, APU's, landing gears etc.) for airplanes that can be in service for 20 to 50 years, it must keep a supply of such products and parts on hand while the airplanes are in use. The Group writes down its inventory for estimated obsolescence and unmarketable inventory equal to the difference between the cost of inventory and estimated market value based upon assumptions for future demand and market conditions. | |||
Property, plant and equipment | h. Property, plant and equipment | ||
Property, plant and equipment are stated at cost, after deduction of the related investment grants, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: | |||
years | |||
Buildings | 25 | ||
Machinery and equipment | 4 - 10 (mainly 10) | ||
Motor vehicles | 6 - 7 | ||
Office furniture and equipment | 3 - 17 (mainly 7) | ||
Software | 3 | ||
Leasehold improvements are included in buildings and amortized using the straight line method over the period of the lease contract, or the estimated useful life of the asset, whichever is shorter. | |||
Grants from Office of the Chief Scientist of Israel ("OCS"): | i. Grants from Office of the Chief Scientist of Israel ("OCS"): | ||
Grants received from the OCS for approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the costs incurred and included as a deduction from research and development expenses. Due the fact that the Company is defined as "Traditional Industry Company", under the OCS regulations, these grants are non-royalty bearing. | |||
Investment in Company Accounted for using the Equity Method | j. Investment in company accounted for using the Equity Method | ||
Investment in which the Group exercises significant influence and which is not considered a subsidiary ("affiliate") is accounted for using the equity method, whereby the Group recognizes its proportionate share of the affiliated company's net income or loss after the date of investment. Significant influence is presumed to exist when the Group holds 20% to 50% of an affiliated company's voting instruments. | |||
The Group reviews this investment for impairment whenever events indicate the carrying amount may not be recoverable. See note 3(b). | |||
Impairment of long-lived assets | k. Impairment of long-lived assets | ||
Long-lived assets, including definite life intangible assets, held and used by an entity are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized, and the assets (or asset group) would be written down to their estimated fair values (see also notes 6 and 9). | |||
Treasury Shares | l. Treasury Shares | ||
Company shares held by the Company are presented as a reduction of equity at their cost to the Company. | |||
Revenue recognition | m. Revenue recognition | ||
The Group generates its revenues from the sale of OEM products and systems, providing MRO services (remanufacture, maintenance, repair and overhaul services and long-term service contracts) and parts services. | |||
Revenues from the sale of products are recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, provided the collection of the resulting receivable is reasonably assured, the price is fixed or determinable and no significant obligation exists. The Group does not grant a right of return. | |||
Revenues from multi-year, fixed price contracts for OEM customers are recognized when a product is shipped (and title passed) to the customer. Management provides for losses as soon as a loss is expected for the remaining portion of such contracts. For the years ended December 31, 2014, 2013 and 2012, no losses have been recognized for such fixed price contracts. | |||
Revenues from MRO services are recognized when services are completed and the item is shipped back to the customer. | |||
Revenues from some maintenance contracts are recognized over the contract period in proportion to the costs expected to be incurred in performing services under the contract. The Group estimates the costs that are expected to be incurred based on its experience with the aggregate costs incurred and to be incurred on contracts of this nature. The costs incurred related to the maintenance contracts are not incurred on a straight-line basis, as the timing to provide the maintenance services is dependent on when parts under these contracts require maintenance. Therefore, the Group accrues revenue as costs are incurred. These revenues are then compared to actual results and adjusted to either deferred revenue for results greater than historical estimates or recognized in those cases of performance less than historical estimates. These accounts are reviewed on a timely basis and adjusted (if required) based on cost structures. | |||
Revenues from royalties from sales of products developed with the Group's intellectual property, technology and technical assistance are recognized when the related sales are made. | |||
Shipping and handling costs | n. Shipping and handling costs | ||
Shipping and handling costs billed to customers are included in revenue. The cost of shipping and handling products is included in costs of revenues. | |||
Warranty costs | o. Warranty costs | ||
The Group provides warranties for its products and services ranging from one to three years, which vary with respect to each contract and in accordance with the nature of each specific product. | |||
The Group estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. The Group periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. | |||
Research and development | p. Research and development | ||
Research and development costs, net of grants, are charged to expenses as incurred. | |||
Fair value measurement | q. Fair value measurement | ||
The Group measures fair value and discloses fair value measurements for financial and non-financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data for similar but not identical assets or liabilities. | |||
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||
In determining fair value, the Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. | |||
Concentrations of credit risk | r. Concentrations of credit risk | ||
Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. | |||
Cash and cash equivalents are deposited with major banks in Israel and the United States. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold Group's cash and cash equivalents are financially sound. Accordingly, minimal credit risk exists with respect to these financial instruments. | |||
The Group's accounts receivable are derived mainly from sales to customers in the United States, Israel and Europe. The Group generally does not require collateral; however, in certain circumstances the Group may require letters of credit. Management believes that credit risks relating to accounts receivable are minimal since the majority of the Group's customers are world-leading manufacturers of aviation systems and aircrafts, international airlines, governments and air-forces, and world-leading manufacturers and integrators of defense and ground systems. In addition, the Group has relatively a large number of customers with wide geographic spread which mitigates the credit risk. The Group performs ongoing credit evaluation of its customers' financial condition. | |||
Income taxes | s. Income taxes | ||
Income taxes are accounted for in accordance with ASC 740 "Income Taxes". This statement prescribes the use of the asset and liability method, whereby deferred tax assets and liabilities account balances are determined based on temporary differences between financial reporting and tax basis of assets and liabilities and for tax loss carry-forwards. Deferred taxes are measured using the enacted laws and tax rates that will be in effect when the differences are expected to reverse. The Group provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value, see note 17(h). | |||
Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. | |||
Taxes which would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing the deferred taxes, when the Group's intention is to hold, and not to realize the investments. | |||
Following the recognition of Bental as held for sale and discontinued operations as of December 31, 2013, (see note 4) the Company computed the deferred tax asset derived from the estimated loss for tax purposes, incurred on the sale of its entire interest in Bental. For such capital loss as of December 31, 2014 and 2013 the Company provided a full valuation allowance as it cannot predict its future realization. | |||
The Group records deferred taxes related to its share in results of its affiliated company. | |||
With regard to dividends distributable from the income of foreign subsidiaries: as the Group intends to permanently reinvest retained earnings and has no intention to declare dividends out of such earnings in the foreseeable future it does not record deferred taxes in respect of taxes that would have been paid in such event. | |||
The Group did not provide for deferred taxes attributable to dividend distribution out of retained tax-exempt earnings from "Approved/Benefited Enterprise" plans (see note 17(a)), since it intends to permanently reinvest them and has no intention to declare dividends out of such tax exempt income in the foreseeable future. Management considers such retained earnings to be essentially permanent in duration. The payment of dividend in 2014 was paid from earnings from regular income of the Israeli company. | |||
Results for tax purposes for TAT's Israeli subsidiary are measured and reflected in NIS and for TAT's U.S. subsidiaries are measured and reflected in dollars. As explained in (b) above, the consolidated financial statements are presented in dollars. In accordance with ASC 740, TAT has not provided deferred income taxes on the differences resulting from changes in exchange rate and indexation. | |||
The Group follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Group's policy is to include interest and penalties related to unrecognized tax benefits within financial income (expense). Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date. | |||
Held for sale classification and Discontinued operations | t. Held for sale classification and Discontinued operations | ||
A business is reported as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying value of the business exceeds its estimated fair value, a loss is recognized. | |||
Assets and liabilities related to a business classified as held for sale are segregated in the consolidated balance sheet in the period in which the business is classified as held for sale. | |||
Operations of a business are reported as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in discontinued operations in the consolidated statement of operations for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. | |||
Depreciation is not recorded on assets of a business while it is classified as held for sale. | |||
At December 31, 2013, held for sale assets and liabilities consisted of Bental, the OEM of Electric Motion Systems operating segment, and its results of operations are presented as discontinued operations in the consolidated statement of operations (see also note 4). | |||
Basic and diluted net Earnings per share | u. Basic and diluted net Earnings per share | ||
Earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings (loss) per share includes the potential effect of stock options outstanding during the year, in accordance with ASC 260 "Earnings per Share", using the treasury stock method. | |||
Share-based compensation | v. Share-based compensation | ||
The Group applies ASC 718 "Stock Based Compensation" with respect to employees options, which requires awards classified as equity awards to be accounted for using the grant-date fair value method. The fair value of share-based awards is estimated using the Black-Scholes valuation model, the payment transaction is recognized as expense over the requisite service period, net of estimated forfeitures. The Group estimates forfeitures based on historical experience and anticipated future conditions. | |||
The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method over the requisite service period for the entire award. For an award with performance conditions that has a graded vesting schedule, compensation cost is recognized upon meeting such conditions, using the accelerated method over the requisite service period for the entire award. | |||
Comprehensive income | w. Comprehensive income | ||
Comprehensive income, net of related taxes where applicable, includes, in addition to net income, Currency translation adjustments. The accumulated other compressive income related entirely to Bental and was reclassified from AOCI to discontinued operation upon the sale of Bantal. | |||
Contingencies | x. Contingencies | ||
Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group but which will only be resolved when one or more future events occur or fail to occur. The Group's management assesses such contingent liabilities and estimated legal fees, if any, and accrues for these costs. Such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group's management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. | |||
Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. | |||
Recently Issued Accounting Principles | y. Recently Issued Accounting Principles | ||
(1) In May 2014, the Financial Accounting Standards Board of the United States (the “FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for the Company in the first quarter of 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | |||
(2) In August 2014, the FASB issued amended guidance related to disclosure of uncertainties about an entity's ability to continue as a going concern. The new guidance requires management to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern and, as necessary, to provide related footnote disclosures. The guidance has an effective date of December 31, 2016. The Company believes that the adoption of this new standard will not have a material impact on its consolidated financial statements. | |||
Derivative Instruments | z. Derivative Instruments | ||
The Company uses derivative financial instruments to manage exposure to movement in exchange rate. The use of these financial instruments reduces the exposure of these risks. The Company recognizes the fair value of all derivative instruments as either assets or liabilities at fair value on the consolidated balance sheets with changes in fair value recorded directly to the statement of operations. Fair value is based on market quotes for similar instruments with the same duration. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Property, Plant and Equipment Estimated Useful Lives | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: |
INVESTMENT_IN_AN_AFFILIATED_CO1
INVESTMENT IN AN AFFILIATED COMPANY (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
INVESTMENT IN AN AFFILIATED COMPANY [Abstract] | ||||||||||||||||
Reconciliation of the Share in Income (Loss), Impairment of Investment in FAvS and Gain from Dilution | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Share in income (loss) related to common stockholders | $ | 49 | $ | 838 | $ | (653 | ) | |||||||||
Share in income related to preferred stock | 218 | 187 | 197 | |||||||||||||
Impairment in affiliated company | - | - | (3,300 | ) | ||||||||||||
Net income (loss) | $ | 267 | $ | 1,025 | $ | (3,756 | ) | |||||||||
Schedule of Summarized Balance Sheets Financial Information for Equity Method Investment | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Current assets | $ | 10,596 | $ | 10,179 | ||||||||||||
Long-term assets | 8,927 | 8,954 | ||||||||||||||
Total assets | 19,523 | 19,133 | ||||||||||||||
Current liabilities | 5,964 | 6,522 | ||||||||||||||
Long-term liabilities | 4,624 | 4,471 | ||||||||||||||
Total liabilities | $ | 10,588 | $ | 10,993 | ||||||||||||
Schedule of Summarized Statement of Operations Financial Information for Equity Method Investment | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net sales | $ | 24,442 | $ | 23,445 | $ | 21,579 | ||||||||||
Gross profit | 7,342 | 6,182 | 9,202 | |||||||||||||
Income (loss) from continuing operations | 827 | (341 | ) | (1,476 | ) | |||||||||||
Net income (loss) | 727 | 3,158 | (12,979 | ) | ||||||||||||
Income (loss) attributable to common stockholders | $ | 336 | $ | 2,821 | $ | (13,271 | ) |
HELD_FOR_SALE_CLASSIFICATION_A1
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
HELD FOR SALE CLASSIFICATION AND DISCONTINUED [Abstract] | |||||||||||
Schedule of Held for Sale Classification and Discontinued Operations | The following table summarizes the components of assets and liabilities held-for-sale in the consolidated balance sheet as of December 31, 2013: | ||||||||||
December 31, | |||||||||||
2013 | |||||||||||
:Assets | |||||||||||
2,823 | $ | Cash and cash equivalents | |||||||||
4,067 | Trade accounts receivable | ||||||||||
196 | Other accounts receivable and prepaid expenses | ||||||||||
2,983 | Inventories, net | ||||||||||
778 | Funds in respect of employee right upon retirement | ||||||||||
29 | Deferred income taxes | ||||||||||
2,402 | $ | Property, plant and equipment, net | |||||||||
13,278 | Assets of businesses held for sale | ||||||||||
-3,319 | Less: impairment | ||||||||||
9,959 | $ | Total assets held for sale | |||||||||
:Liabilities | |||||||||||
946 | Trade accounts payables | ||||||||||
1,109 | Other accounts payable and accrued expenses | ||||||||||
248 | Long-term loans, net of current maturities | ||||||||||
1,070 | Liability in respect of employee rights upon retirement | ||||||||||
55 | Deferred income taxes | ||||||||||
3,428 | $ | Total liabilities held for sale | |||||||||
The following are amounts related to Bental included in net loss from discontinued operations: | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Revenues | $ | 9,589 | $ | 10,008 | |||||||
Loss before taxes on income (tax benefit) | $ | (148 | ) | $ | (191 | ) | |||||
Loss from discontinued operations, net of tax ($5 and $3 in 2013 and 2012, respectively) | $ | (3,471 | ) | $ | (1,205 | ) | |||||
Loss from discontinued operations attributable to non-controlling interest | 1,042 | 58 | |||||||||
Loss from discontinued operations attributable to TAT Technologies Ltd. shareholders | $ | (2,429 | ) | $ | (1,147 | ) |
AVAILABLEFORSALE_MARKETABLE_SE1
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||
Schedule of Available-For-Sale Securities | 31-Dec-14 | ||||||||||||||||||||||
Amortized Cost | Gross | ||||||||||||||||||||||
Unrealized | Fair | ||||||||||||||||||||||
Gains | Value | ||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | 1,136 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
Amortized Cost | Gross | ||||||||||||||||||||||
Unrealized | Fair | ||||||||||||||||||||||
Gains | Value | ||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | 1,136 |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | |||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | - | $ | 1,136 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Forward transactions | $ | - | $ | 463 | $ | - | $ | 463 | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | - | $ | 1,136 | |||||||||||||||||||||||||||
Schedule of Non-Recurring Fair Value Measurements | |||||||||||||||||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||||||||||||||||
As of | Quoted prices | Significant | Significant | Total | |||||||||||||||||||||||||||||||
December 31, | in active | other | unobservable | losses for the | |||||||||||||||||||||||||||||||
2012 | markets for | observable | inputs | year ended December 31, | |||||||||||||||||||||||||||||||
identical assets | inputs | (Level 3) | 2012 | ||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||||
Goodwill (1) (*) | $ | - | $ | - | $ | - | $ | - | $ | 1,015 | |||||||||||||||||||||||||
Investment in affiliated company (2) | $ | 1,264 | $ | - | $ | - | $ | 1,264 | $ | 3,300 | |||||||||||||||||||||||||
(*) | Excluding discontinued operations for the year ended on December 31, 2012 |
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INVENTORIES [Abstract] | ||||||||||||
Schedule of Inventories | December 31, | |||||||||||
2014 | 2013(*) | |||||||||||
Raw materials and components | $ | 11,333 | $ | 9,648 | ||||||||
Work in process | 14,600 | 14,044 | ||||||||||
Spare parts | 8,956 | 4,742 | ||||||||||
Finished goods | 515 | 961 | ||||||||||
$ | 35,404 | $ | 29,395 | |||||||||
(*) Excluding held for sale assets at December 31, 2013 |
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |||||||||||
Schedule of Property, Plant and Equipment | December 31, | ||||||||||
2014 | 2013(*) | ||||||||||
Cost: | |||||||||||
Land and buildings | 6,232 | $ | 5,582 | ||||||||
Machinery and equipment | 36,299 | 34,696 | |||||||||
Motor vehicles | 334 | 418 | |||||||||
Office furniture and equipment | 1,646 | 1,559 | |||||||||
Software | 1,197 | 1,166 | |||||||||
45,708 | 43,421 | ||||||||||
Less: Accumulated depreciation | 34,184 | 32,274 | |||||||||
Depreciated cost | 11,524 | $ | 11,147 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||||||||||
Schedule of Intangible Assets | December 31, | |||||||||
2014 | 2013 | |||||||||
License for service center | ||||||||||
Cost | $ | 2,050 | $ | 2,050 | ||||||
Accumulated amortization and impairment charges | -2,050 | -2,050 | ||||||||
Amortized cost | $ | - | $ | - |
OTHER_BALANCE_SHEET_SUPPLEMENT1
OTHER BALANCE SHEET SUPPLEMENTALS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
OTHER BALANCE SHEETS SUPPLEMENTAL [Abstract] | |||||||||||
Schedule of Other Accounts Receivable and Prepaid Expenses | December 31, | ||||||||||
2014 | 2013 (*) | ||||||||||
Deferred tax asset | $ | 1,694 | $ | 1,589 | |||||||
Government authorities | 1,568 | 1,154 | |||||||||
Prepaid expenses | 971 | 498 | |||||||||
Amounts due from related parties | - | 5 | |||||||||
Other | 65 | 68 | |||||||||
$ | 4,298 | $ | 3,314 | ||||||||
(*) | Excluding held for sale assets at December 31, 2013 | ||||||||||
Schedule of Other Account Payable and Accrued Expenses | Other account payable and accrued expenses: |
TRANSACTIONS_WITH_RELATED_PART1
TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
TRANSACTIONS WITH RELATED PARTIES [Abstract] | ||||||||||||||||
Schedule of Transactions with TAT Industries | Transactions with TAT Industries LTD. (“TAT Industries”): | |||||||||||||||
Schedule of Balances with Related Parties | Balances with related parties: | |||||||||||||||
Schedule of Transactions with Related Parties | Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Management fees to shareholders (see item e below) | $ | - | $ | - | $ | 359 | ||||||||||
SHORT_TERM_BANK_CREDIT_AND_LON1
SHORT TERM BANK CREDIT AND LONG TERM LOANS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SHORT TERM BANK CREDIT AND LONG TERM LOANS [Abstract] | ||||||||||
Schedule of Required Principal Payments | Interest Rate | |||||||||
Currency | 31-Dec-13 | Years of | December 31, | |||||||
of loan | ||||||||||
Maturity | 2013 | |||||||||
Current maturities of long-term loan (*) | $ | 2.50%-3.50% | 2009-2014 | $ | 884 | |||||
* | Loans received by TAT from an Israeli bank in a total amount of $6,250 out of which $5,000 were received during year 2008 and additional $1,250 were received during year 2009. The loans amount was to be repaid in four annual installments commencing 2011. These loans bear quarterly interest of Libor + 3.5% and Libor + 1.85%, respectively. Through November, 2012 TAT prepaid $3,775, following which the remaining balance was $2,477. In September, 2011, TAT reached agreement with its lending bank to adjust certain financial covenants related to the said loans it was failing to meet at the time. On May 1, 2013, the Company made a payment of $1,593 in accordance with its payment schedule following which the remaining balance was $884. As of December 31, 2013 the Company met all financial covenants related to such loans (see also note 14(f)(2)). |
LONGTERM_EMPLOYEERELATED_OBLIG1
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS [Abstract] | |||||||||||||
Schedule of Expected Future Benefits | Year | Amount | |||||||||||
2015 | $ | 201 | |||||||||||
2016 | 132 | ||||||||||||
2017 | 152 | ||||||||||||
2018 | 298 | ||||||||||||
2019 | 168 | ||||||||||||
Thereafter (through 2024) | 587 | ||||||||||||
$ | 1,538 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ||||||
Schedule of Operating Leases | ||||||
Year | Amount | |||||
2015 | $ | 814 | ||||
2016 | 814 | |||||
2017 | 762 | |||||
2018 | 700 | |||||
2019 | 714 | |||||
2020 | 729 | |||||
Total | $ | 4,533 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||
Reconciliation of Ordinary Shares | 2014 | 2013 | 2012 | ||||||||||||
Balance outstanding at beginning of year | 8,805,236 | 8,798,570 | 8,815,003 | ||||||||||||
Purchase of treasury shares | - | - | -16,433 | ||||||||||||
Exercise of options | 3,108 | 6,666 | - | ||||||||||||
Balance outstanding at end of year | 8,808,344 | 8,805,236 | 8,798,570 | ||||||||||||
Schedule of Stock Options Assumptions | |||||||||||||||
2014 | 2012 | ||||||||||||||
Expected stock price volatility | 37.23 % - 39.14 % | 41.57% - 43.4% | |||||||||||||
Expected option life (in years) | 2.87 - 4 | 2.23 - 3.23 | |||||||||||||
Risk free interest rate | 0.48 % - 1.34 % | 0.23% - 0.32% | |||||||||||||
Dividend yield | 5 % - 4.6 % | 9.8% | |||||||||||||
Schedule of Stock Option Activity | The following table is a summary of the activity of TAT's stock Option plan: |
EARNINGS_LOSS_PER_SHARE_EPS_Ta
EARNINGS (LOSS) PER SHARE ("EPS") (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
EARNINGS (LOSS) PER SHARE ("EPS")[Abstract] | |||||||||||||||
Schedule of Earnings per Share | Year ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Numerator for EPS: | |||||||||||||||
Net income (loss) from continuing operations | $ | 1,432 | $ | 5,251 | $ | -567 | |||||||||
Net loss from discontinued operations, net of tax | - | -2,429 | -1,147 | ||||||||||||
Denominator for EPS: | |||||||||||||||
Weighted average shares outstanding – basic | 8,805,495 | 8,799,237 | 8,808,075 | ||||||||||||
Dilutive shares | 21,047 | 9,683 | - | ||||||||||||
Weighted average shares outstanding – diluted | 8,826,542 | 8,808,920 | 8,808,075 | ||||||||||||
EPS attributable to controlling interest: | |||||||||||||||
Basic and diluted | |||||||||||||||
Net income (loss) from continuing operations | $ | 0.16 | $ | 0.6 | $ | -0.06 | |||||||||
Loss from discontinued operations | $ | - | $ | -0.28 | $ | -0.13 | |||||||||
Diluted income (loss) per share does not include 175,000, 0 and 330,000 options, for the years ended December 31, 2014, 2013 and 2012 respectively because the options are anti-dilutive. | |||||||||||||||
Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans. | |||||||||||||||
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
TAXES ON INCOME [Abstract] | |||||||||||||||
Schedule of Reconciliation of Tax Provisions to the Domestic and Effective Tax Rate | |||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Income before taxes on income as reported in the statements of income | $ | 2,525 | $ | 5,267 | $ | 5,279 | |||||||||
Statutory tax rate in Israel | 26.50% | 25% | 25% | ||||||||||||
Theoretical taxes on income | $ | 669 | $ | 1,317 | $ | 1,320 | |||||||||
Increase (decrease) in taxes on income resulting from: | |||||||||||||||
Tax adjustment for foreign subsidiaries subject to a different tax rate | 457 | 453 | 434 | ||||||||||||
Reduced tax rate on income derived from "Preferred Enterprises" plans | 156 | -255 | -143 | ||||||||||||
Change in enacted tax rates | - | 34 | - | ||||||||||||
Exempt income | - | - | -4 | ||||||||||||
Valuation allowance | -100 | 294 | 499 | ||||||||||||
Tax in respect of prior years | -44 | -342 | -83 | ||||||||||||
Permanent differences | 222 | -460 | 67 | ||||||||||||
Taxes on income as reported in the statements of income | $ | 1,360 | $ | 1,041 | $ | 2,090 | |||||||||
Schedule of Income (Loss) from Continuing Operations Before Income Tax Domestic and Foreign | Income (loss) before taxes on income (tax benefit) is comprised as follows: | ||||||||||||||
Schedule of Components of Income Tax Provision | Taxes on income (tax benefit) included in the statements of income: | ||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of TAT's deferred tax liabilities and assets are as follows: | ||||||||||||||
Schedule of changes in valuation allowance for deferred tax assets | |||||||||||||||
Balance, January 1, 2012 | $ | 184 | |||||||||||||
Addition charged to expenses | 1,639 | ||||||||||||||
Balance, December 31, 2012 | 1,823 | ||||||||||||||
Addition charged to expenses | 1,483 | ||||||||||||||
Balance, December 31,2013 | 3,306 | ||||||||||||||
Addition charged to expenses | 268 | ||||||||||||||
Balance, December 31,2014 | $ | 3,574 | |||||||||||||
Reconciliation of the Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized provision is as follows: |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
SEGMENT INFORMATION [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Operating Income by Segment | Year ended December 31, 2014 | ||||||||||||||||||||||||||||||
OEM of Heat | Heat Transfer | MRO services | Amounts not | Elimination | Consolidated | ||||||||||||||||||||||||||
Management | Services and | for Aviation | allocated to | of inter- | |||||||||||||||||||||||||||
Solutions | Products | Components | segments | company | |||||||||||||||||||||||||||
sales | |||||||||||||||||||||||||||||||
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 | Heat Transfer | MRO services | Amounts not | Elimination | Consolidated | ||||||||||||||||||||||||||
Management | Services and | for Aviation | allocated to | of inter- | |||||||||||||||||||||||||||
Solutions | Products | Components | segments | company | |||||||||||||||||||||||||||
sales | |||||||||||||||||||||||||||||||
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 | MRO services | Amounts not | Elimination | Consolidated | ||||||||||||||||||||||||||
Services and | for Aviation Components | allocated to | of inter- | ||||||||||||||||||||||||||||
Products | segments | company | |||||||||||||||||||||||||||||
sales | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Schedule of Assets, Depreciation and Amortization, and Capital Expenditures by Segment | Year ended December 31, 2014 | ||||||||||||||||||||||||||||||
OEM of Heat | Heat Transfer | MRO services for | Amounts not | Consolidated | |||||||||||||||||||||||||||
Management | Services and | Aviation | allocated to | ||||||||||||||||||||||||||||
Solutions | Products | Components | segments | ||||||||||||||||||||||||||||
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 | Heat Transfer | MRO services for | Amounts not | Consolidated | |||||||||||||||||||||||||||
Management | Services and | Aviation | allocated to | ||||||||||||||||||||||||||||
Solutions | Products | Components | segments | ||||||||||||||||||||||||||||
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 | Amounts not allocated to | Consolidated | ||||||||||||||||||||||||||
for Aviation Components | segments | ||||||||||||||||||||||||||||||
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. |
ENTITYWIDE_DISCLOSURE_Tables
ENTITY-WIDE DISCLOSURE (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
ENTITY-WIDE DISCLOSURE [Abstract] | ||||||||||||||||||||||||||
Schedule of Total Revenues and Long-lived Assets by Geographical Location | Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Total revenues | Long-lived assets | Total revenues (**) | Long-lived assets (*) | Total revenues (**) | ||||||||||||||||||||||
Sale of products | ||||||||||||||||||||||||||
Israel | $ | 4,807 | $ | 5,830 | $ | 6,248 | $ | 5,748 | $ | 9,147 | ||||||||||||||||
United states | 18,886 | - | 18,016 | - | 16,475 | |||||||||||||||||||||
France | 3,642 | - | 5,482 | - | 4,604 | |||||||||||||||||||||
Rest of Europe | 2,257 | - | 2,292 | - | 1,966 | |||||||||||||||||||||
Other | 1,771 | - | 2,326 | - | 4,071 | |||||||||||||||||||||
$ | 31,363 | $ | 5,830 | $ | 34,364 | $ | 5,748 | $ | 36,263 | |||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Total revenues | Long-lived assets | Total revenues (**) | Long-lived assets (*) | Total revenues (**) | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
Israel | $ | 834 | $ | - | $ | 612 | $ | - | $ | 468 | ||||||||||||||||
United states | 31,267 | 5,694 | 27,639 | 5,399 | 25,648 | |||||||||||||||||||||
Netherland | 1,734 | - | 1,553 | - | 3,303 | |||||||||||||||||||||
Rest of Europe | 8,786 | - | 7,658 | - | 4,624 | |||||||||||||||||||||
Other | 6,742 | - | 7,725 | - | 7,609 | |||||||||||||||||||||
$ | 49,363 | $ | 5,694 | $ | 45,187 | $ | 5,399 | $ | 41,652 | |||||||||||||||||
(*) | Excluding held for sale assets at December 31, 2013 | |||||||||||||||||||||||||
(**) | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. |
SELECTED_STATEMENTS_OF_INCOME_1
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | |||||||||||||||
Schedule of Financial Income (Expenses), Net | Year ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Financial expenses, net (*): | |||||||||||||||
Financial income: | |||||||||||||||
Foreign currency gains | $ | 975 | $ | 661 | $ | 1,294 | |||||||||
Derivatives | 27 | 399 | |||||||||||||
Interest on tax refund | 150 | 95 | 53 | ||||||||||||
Interest on cash equivalents, short-term bank deposits and others | 91 | 114 | 242 | ||||||||||||
1,216 | 897 | 1,988 | |||||||||||||
Financial expenses (*): | |||||||||||||||
Bank charges | -97 | -77 | -71 | ||||||||||||
Interest on short-term loans | -8 | -18 | -98 | ||||||||||||
Interest on long-term loans | -8 | -66 | -120 | ||||||||||||
Foreign currency losses | -1,028 | -786 | -1,376 | ||||||||||||
Forward transactions losses | -1,369 | - | - | ||||||||||||
Derivatives | - | - | -321 | ||||||||||||
Others | - | - | -108 | ||||||||||||
-2,510 | -947 | -2,094 | |||||||||||||
$ | -1,294 | $ | -50 | $ | -106 | ||||||||||
(*) Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. | |||||||||||||||
SUPPLEMENTAL_CONSOLIDATED_BALA1
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION [Abstract] | |||||||||||
Schedule of Supplemental Consolidated Balance Sheets Information | Allowance for | ||||||||||
Warranty provision | Doubtful Accounts | ||||||||||
Balance, as of January 1, 2012 | $ | 288 | $ | 190 | |||||||
Additions | 196 | 258 | |||||||||
Deductions | -208 | -72 | |||||||||
Balance, as of December 31, 2012 | 276 | 376 | |||||||||
Additions | 186 | 17 | |||||||||
Deductions | -190 | -270 | |||||||||
Less: Held for sale | -43 | - | |||||||||
Balance, as of December 31, 2013 | 229 | 123 | |||||||||
Additions | 286 | 107 | |||||||||
Deductions | -264 | -105 | |||||||||
Balance, as of December 31, 2014 | $ | 251 | $ | 125 |
GENERAL_Details
GENERAL (Details) (USD $) | 1 Months Ended | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 18, 2014 | Aug. 07, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Limco Piedmont Inc Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 100.00% | |||
Bental Industries Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 70.00% | |||
Tat Gal Inc Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 100.00% | |||
TAT Industries Ltd. Parent [Member] | Tat Technologies Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Ownership percentage | 43.00% | |||
KMN Industries Ltd. [Member] | Tat Technologies Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Ownership percentage | 10.00% | |||
KMN Industries Ltd. [Member] | Tat Industries Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 80.00% | |||
Tat Technologies Ltd Parent [Member] | Bental Industries Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Sale of ownerhsip interest, percentage | 70.00% | |||
Cash received from sale of affiliate | $5,000 | |||
Loss on sale of discontinued operation | -2,323 | |||
Impariment | $3,319 | |||
Limco Piedmont Inc Parent [Member] | Limco Airepair Inc Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 100.00% | |||
Limco Piedmont Inc Parent [Member] | Piedmont Aviation Component Services LLC Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 100.00% | |||
Limco Piedmont Inc Parent [Member] | First Aviation Services Inc Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Ownership percentage | 28.08% | |||
FIMI Funds [Member] | Tat Technologies Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Investee ownership percentage | 53.80% | |||
Number ordinary shares sold in transaction | 4,732,351 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Short term bank deposit average interest rate | 0.60% | 0.60% | |
Derivative financial instruments | |||
Notional amount of contracts | $4,800 | ||
Share-based Compensation | |||
Share based compensation expenses (income) | $38 | $3 | $8 |
Buildings [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 25 years | ||
Machinery and Equipment [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 10 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 4 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 10 years | ||
Motor Vehicles [Member] | Minimum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 6 years | ||
Motor Vehicles [Member] | Maximum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 7 years | ||
Office Furniture and Equipment [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 7 years | ||
Office Furniture and Equipment [Member] | Minimum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 3 years | ||
Office Furniture and Equipment [Member] | Maximum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 17 years | ||
Software [Member] | |||
Property, plant and equipment | |||
Estimated useful lives, years | 3 years |
INVESTMENT_IN_AN_AFFILIATED_CO2
INVESTMENT IN AN AFFILIATED COMPANY (Acquisition of Stocks of FAvS) (Narrative) (Details) (First Aviation Services, Inc. [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
First Aviation Services, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Investee ownership percentage | 28.08% | 29.36% |
INVESTMENT_IN_AN_AFFILIATED_CO3
INVESTMENT IN AN AFFILIATED COMPANY (Condensed Financial Information From FAvS Consolidated Balance Sheets and Statements of Operations) (Details) (First Aviation Services, Inc. [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
First Aviation Services, Inc. [Member] | |||
Condensed financial information, balance sheets: | |||
Current assets | $10,596 | $10,179 | |
Long-term assets | 8,927 | 8,954 | |
Total assets | 19,523 | 19,133 | |
Current liabilities | 5,964 | 6,522 | |
Long-term liabilities | 4,624 | 4,471 | |
Total liabilities | 10,588 | 10,993 | |
Condensed financial information, statements of operations: | |||
Net sales | 24,442 | 23,445 | 21,579 |
Gross profit | 7,342 | 6,182 | 9,202 |
Income (loss) from continuing operations | 827 | -341 | -1,476 |
Net loss | 727 | 3,158 | -12,979 |
Loss attributable to common stockholders | $336 | $2,821 | ($13,271) |
INVESTMENT_IN_AN_AFFILIATED_CO4
INVESTMENT IN AN AFFILIATED COMPANY (Reconciliation of the Share in Income (Loss), Impairment of Investment in FAvS and Gain from Dilution) (Details) (First Aviation Services, Inc. [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
First Aviation Services, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Share in income (loss) related to common stockholders | $49 | $838 | ($653) |
Share in income related to preferred stock | 218 | 187 | 197 |
Impairment in affiliated company | -3,300 | ||
Total | $267 | $1,025 | ($3,756) |
HELD_FOR_SALE_CLASSIFICATION_A2
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 18, 2014 | Dec. 31, 2013 |
Bental Industries Ltd. [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale of ownerhsip interest, percentage | 70.00% | |
Cash received from sale of affiliate | $5,000 | |
Impariment | 3,319 | |
Loss on sale of discontinued operation | -152 | |
Controlling Interest [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impariment | 2,323 | |
Loss on sale of discontinued operation | ($106) |
HELD_FOR_SALE_CLASSIFICATION_A3
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Schedule of Components of Assets and Liabilities Held-For-Sale) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Cash and cash equivalents | $2,823 | $2,309 | |
Total assets held for sale | 9,959 | ||
Bental Industries Ltd. [Member] | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Cash and cash equivalents | 2,823 | ||
Trade accounts receivable | 4,067 | ||
Other accounts receivable and prepaid expenses | 196 | ||
Inventories | 2,983 | ||
Funds in respect of employee right upon retirement | 778 | ||
Deferred income taxes | 29 | ||
Property, plant and equipment, net | 2,402 | ||
Assets of businesses held for sale | 13,278 | ||
Less: impairment | -3,319 | ||
Total assets held for sale | 9,959 | ||
Liabilities | |||
Trade accounts payables | 946 | ||
Other accounts payable and accrued expenses | 1,109 | ||
Long-term loans, net of current maturities | 248 | ||
Liability in respect of employee rights upon retirement | 1,070 | ||
Deferred income taxes | 55 | ||
Total liabilities held for sale | $3,428 |
HELD_FOR_SALE_CLASSIFICATION_A4
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Schedule of Net Loss from Discontinued Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss from discontinued operations, net of tax ($5 and $3 in 2013 and 2012, respectively) | ($2,429) | ($1,147) | |
Bental Industries Ltd. [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | 9,589 | 10,008 | |
Loss before taxes on income (tax benefit) | -148 | -191 | |
Loss from discontinued operations, net of tax ($5 and $3 in 2013 and 2012, respectively) | -3,471 | -1,205 | |
Loss from discontinued operations attributable to non-controlling interest | 1,042 | 58 | |
Loss from discontinued operations attributable to TAT Technologies Ltd. shareholders | -2,429 | -1,147 | |
Discontinued operations, tax | $5 | $3 |
AVAILABLEFORSALE_MARKETABLE_SE2
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES (Details) (Money Market [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Money Market [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $1,136 | $1,136 |
Gross unrealized gains | ||
Fair Value | $1,136 | $1,136 |
FAIR_VALUE_MEASUREMENT_Schedul
FAIR VALUE MEASUREMENT (Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Money market | $1,136 | $1,136 |
Liabilities: | ||
Forward transactions | 463 | |
Level 1 [Member] | ||
Assets: | ||
Money market | 1,136 | 1,136 |
Liabilities: | ||
Forward transactions | ||
Level 2 [Member] | ||
Assets: | ||
Money market | ||
Liabilities: | ||
Forward transactions | 463 | |
Level 3 [Member] | ||
Assets: | ||
Money market | ||
Liabilities: | ||
Forward transactions |
FAIR_VALUE_MEASUREMENT_Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ITEM |
FAIR VALUE MEASUREMENT [Abstract] | |
Number of open forward contracts | 6 |
Notional amount of open forward contracts | $4,800 |
FAIR_VALUE_MEASUREMENT_RollFor
FAIR VALUE MEASUREMENT (Roll-Forward of Level 3 Assets) (Details) (First Aviation Services, Inc. [Member], USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of equity method investment | $3,300 | |||
Convertible Subordinated Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Original amount of debt instrument | $3,000 | |||
Interest rate | 10.00% | |||
Exercise price of warrants issued | $7 | |||
Percentage of post-exercise shareholders' equity callable by warrant | 15.00% |
FAIR_VALUE_MEASUREMENT_Schedul1
FAIR VALUE MEASUREMENT (Schedule of Non-Recurring Fair Value Measurements) (Details) (USD $) | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | $1,015 | [1] |
Investment in affiliated company | 3,300 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | ||
Investment in affiliated company | 1,264 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | ||
Investment in affiliated company | ||
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | ||
Investment in affiliated company | ||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | ||
Investment in affiliated company | $1,264 | |
[1] | Excluding discontinued operations for the year ended on December 31, 2012 |
INVENTORIES_NET_Details
INVENTORIES, NET (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Inventory [Line Items] | ||||
Raw materials and components | $11,333 | $9,648 | [1] | |
Work in process | 14,600 | 14,044 | [1] | |
Spare parts | 8,956 | 4,742 | [1] | |
Finished goods | 515 | 961 | [1] | |
Total inventories | 35,404 | 29,395 | [1] | |
MRO Services for Aviation Components [Member] | ||||
Schedule of Inventory [Line Items] | ||||
Inventory previously written down used in provision | $202 | $350 | $1,892 | |
[1] | (*) Excluding held for sale assets at December 31, 2013 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | $45,708 | $43,421 | [1] | ||
Less: Accumulated depreciation | 34,184 | 32,274 | [1] | ||
Depreciated cost | 11,524 | 11,147 | [1] | ||
Depreciation and amortization | 2,069 | 1,859 | [2] | 1,906 | [2] |
Land and Buildings [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 6,232 | 5,582 | [1] | ||
Machinery and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 36,299 | 34,696 | [1] | ||
Motor Vehicles [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 334 | 418 | [1] | ||
Office Furniture and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 1,646 | 1,559 | [1] | ||
Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | $1,197 | $1,166 | [1] | ||
[1] | (*) Excluding held for sale assets at December 31, 2013 | ||||
[2] | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) (License for Service Center [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
License for Service Center [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost: | $2,050 | $2,050 |
Less: accumulated amortization | -2,050 | -2,050 |
Amortized cost |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Intangible Assets and Goodwill) (Narrative) (Details) (OEM Electric Motion Systems [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2012 |
OEM Electric Motion Systems [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charge to goodwill | $1,015 | |
Discount rate | 17.72% | |
Long-term growth rate | 2.00% |
OTHER_BALANCE_SHEET_SUPPLEMENT2
OTHER BALANCE SHEET SUPPLEMENTALS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Other accounts receivable and prepaid expenses: | |||
Deferred tax asset | $1,694 | $1,589 | [1] |
Government authorities | 1,568 | 1,154 | [1] |
Prepaid expenses | 971 | 498 | [1] |
Amounts due from related parties | 5 | [1] | |
Other | 65 | 68 | [1] |
Total other accounts receivable and prepaid expenses | 4,298 | 3,314 | [1] |
Other account payable and accrued expenses: | |||
Employees and payroll accruals | 2,149 | 3,077 | [1] |
Accrued expenses | 535 | 732 | [1] |
Government authorities | 428 | 483 | [1] |
Advances from customers | 741 | 840 | [1] |
Warranty provision | 251 | 229 | [1] |
Accrued royalties | 368 | 336 | [1] |
Deferred tax liability | 592 | 40 | [1] |
Forward transactions | 463 | [1] | |
Other accrued expenses | 124 | 78 | [1] |
Total other account payable and accrued expenses | $5,651 | $5,815 | [1] |
[1] | (*) Excluding held for sale assets at December 31, 2013 |
TRANSACTIONS_WITH_RELATED_PART2
TRANSACTIONS WITH RELATED PARTIES (Transactions with TAT Industries) (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |||
Related Party Transaction [Line Items] | |||||||
Management fees | [1] | $29 | [1] | $50 | [1] | ||
Lease expenses | [2] | 424 | [2] | 416 | [2] | ||
Buildings [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Lease expenses | $400 | ||||||
Area of property leased | 344,000 | ||||||
Length of lease contract | 24 years 11 months | ||||||
Annual incremental increase in lease payment | 2.00% | 2.00% | |||||
Manufacturing, Office and Storage Space [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Area of property leased | 90,000 | ||||||
[1] | According to the agreement between TAT and TAT Industries, TAT Industries will pay the Company an annual management fee in the amount of $50. The management fees are recorded as a reduction of general and administration expenses. Such services provided to TAT Industries until the purchase of TAT's shares by FIMI Funds on August 7, 2013 (see also note 1). | ||||||
[2] | During 2000, TAT entered into a lease agreement with TAT Industries, pursuant to which the Company leases from TAT Industries approximately 344,000 square feet, including 90,000 square feet of manufacturing, office and storage space, for a period of 24 years and eleven months for an annual rental fee which is subject to revaluation every fifth year by a real estate appraiser, with an additional incremental payment of 2% per year. |
TRANSACTIONS_WITH_RELATED_PART3
TRANSACTIONS WITH RELATED PARTIES (Balances with Related Parties) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Related Party Transaction [Line Items] | |||
Current asset | $5 | [1] | |
First Aviation Services, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Current asset | $5 | ||
[1] | (*) Excluding held for sale assets at December 31, 2013 |
TRANSACTIONS_WITH_RELATED_PART4
TRANSACTIONS WITH RELATED PARTIES (Other Transactions with Related Parties) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 04, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 21, 2012 | Aug. 21, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 08, 2013 | Sep. 08, 2013 | Sep. 07, 2011 | Sep. 07, 2011 | Sep. 07, 2011 | Sep. 07, 2011 | |
USD ($) | Payment Guarantee [Member] | Payment Guarantee [Member] | Shareholders [Member] | Shareholders [Member] | Shareholders [Member] | Bental Non Controlling Interest [Member] | Bental Non Controlling Interest [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ILS | USD ($) | ILS | USD ($) | ILS | Long Term Loan Three [Member] | Long Term Loan Three [Member] | Long Term Loan Three [Member] | Long Term Loan Three [Member] | Long Term Loan Three [Member] | Long Term Loan Three [Member] | ||
USD ($) | ILS | USD ($) | ILS | USD ($) | ILS | |||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Amount of transactions | $359,000 | $359,000 | $432,000 | $505,000 | $400,000 | 1,500,000 | $120,000 | |||||||||||||
Amount of reduction in annual management fees | 150,000 | 570,000 | ||||||||||||||||||
Maximum guarantee | 4,600,000 | 7,000,000 | ||||||||||||||||||
Interest rate spread | 1.00% | 1.00% | ||||||||||||||||||
Debt instrument, variable interest reference rate | Prime | Prime | ||||||||||||||||||
Additional management fees owed for traveling expenses | 2,000 | 7,000 | ||||||||||||||||||
Minimum threshold that allows management company to be eligible for bonus | 6,600,000 | |||||||||||||||||||
The bonus percentage owed to the management company on the first million dollars earned | 2.00% | |||||||||||||||||||
The bonus percentage owed to the management company on the second million dollars | 3.00% | |||||||||||||||||||
The bonus percentage owed to the management company on the third million dollars earned | 5.00% | |||||||||||||||||||
Maximum allowable bonus that can be paid to management company | 100,000 | |||||||||||||||||||
Original amount of debt instrument | 700,000 | 2,500,000 | 700,000 | 2,500,000 | ||||||||||||||||
Debt term | 24 months | 24 months | ||||||||||||||||||
Repayment of related party debt | $693,000 | 2,500,000 |
SHORT_TERM_BANK_CREDIT_AND_LON2
SHORT TERM BANK CREDIT AND LONG TERM LOANS (Details) (USD $) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2010 | ||
Debt Instrument [Line Items] | ||||||||
Repayments of lLong-term debt | $883 | $2,286 | $776 | |||||
TAT Technologies Ltd [Member] | Long-term loan Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term loans | 0 | 884 | [1] | 2,477 | ||||
Interest rate, minimum | 2.50% | [1] | ||||||
Interest rate, maximum | 3.50% | [1] | ||||||
Interest rate spread | 1.85% | 3.50% | ||||||
Debt instrument, variable interest reference rate | Libor | Libor | ||||||
Maturity date range, start | 1-Jan-09 | [1] | ||||||
Maturity date range, end | 31-Dec-14 | [1] | ||||||
Original amount of debt instrument | 1,250 | 5,000 | 6,250 | |||||
Currency of loan | USD | [1] | ||||||
Repayments of lLong-term debt | 1,593 | |||||||
Prepaid amount of principal balance on long-term loan | 3,775 | |||||||
TAT Technologies Ltd [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, amount outstanding | $0 | $26 | ||||||
[1] | Loans received by TAT from an Israeli bank in a total amount of $6,250 out of which $5,000 were received during year 2008 and additional $1,250 were received during year 2009. The loans amount was to be repaid in four annual installments commencing 2011. These loans bear quarterly interest of Libor + 3.5% and Libor + 1.85%, respectively. Through November, 2012 TAT prepaid $3,775, following which the remaining balance was $2,477. In September, 2011, TAT reached agreement with its lending bank to adjust certain financial covenants related to the said loans it was failing to meet at the time. On May 1, 2013, the Company made a payment of $1,593 in accordance with its payment schedule following which the remaining balance was $884. As of December 31, 2013 the Company met all financial covenants related to such loans (see also note 14(f)(2)). |
LONGTERM_EMPLOYEERELATED_OBLIG2
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Severance payments actually paid | $568 | $226 | $26 |
Severance pay expenses | 555 | 555 | 495 |
Expected deposits to be made in the next fiscal year for severance and pension payment obligations | 820 | ||
2015 | 201 | ||
2016 | 132 | ||
2017 | 152 | ||
2018 | 298 | ||
2019 | 168 | ||
Thereafter (through 2024) | 587 | ||
Total | 1,538 | ||
Limco Piedmont Inc [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(K) profit sharing plan contributions made by company | $251 | $253 | $209 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Commissions and Royalty Commitments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commissions arrangements: | |||
Commission expenses | $701 | $781 | $670 |
Royalty commitments: | |||
Royalty expense | 270 | 177 | 202 |
TAT Technologies Ltd [Member] | Minimum [Member] | |||
Commissions arrangements: | |||
Percentage rate paid to sales agents for marketing commissions | 1.00% | ||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 12.00% | ||
TAT Technologies Ltd [Member] | Maximum [Member] | |||
Commissions arrangements: | |||
Percentage rate paid to sales agents for marketing commissions | 12.00% | ||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 17.00% | ||
Limco Piedmont Inc [Member] | |||
Royalty commitments: | |||
Royalty expense | $680 | $400 | $232 |
Limco Piedmont Inc [Member] | Minimum [Member] | |||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 3.00% | ||
Royalties percentage rate for sales of additional products developed by third parties | 1.50% | ||
Royalties percentage rate for sales of parts use in MRO services developed by third parties | 10.00% | ||
Limco Piedmont Inc [Member] | Maximum [Member] | |||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 5.00% | ||
Royalties percentage rate for sales of additional products developed by third parties | 10.00% | ||
Royalties percentage rate for sales of parts use in MRO services developed by third parties | 20.00% |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Lease Commitments) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Lease commitments: | |||
2015 | $814,000 | ||
2016 | 814,000 | ||
2017 | 762,000 | ||
2018 | 700,000 | ||
2019 | 714,000 | ||
2020 | 729,000 | ||
Total | 4,533,000 | ||
TAT Technologies Ltd [Member] | Maximum [Member] | |||
Lease commitments: | |||
Lease expiration date | 31-Dec-20 | ||
Limco Piedmont Inc [Member] | |||
Lease commitments: | |||
Lease expense | $271,000 | $215,000 | $233,000 |
Limco Piedmont Inc [Member] | Maximum [Member] | |||
Lease commitments: | |||
Lease expiration date | 31-Dec-17 |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES (Legal Claims Contingencies) (Details) | 0 Months Ended | 12 Months Ended | ||
Nov. 29, 2011 | Nov. 29, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | ILS | USD ($) | ILS | |
Legal claims contingencies | ||||
Damages being sought in litigation matter | $1,620 | 6,151 | $1,620,000 | 6,151,000 |
COMMITMENTS_AND_CONTINGENT_LIA5
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
TAT Technologies Ltd [Member] | |
Guarantees: | |
Bank guarantee to secure liability to Israeli customs | $215 |
Limco Piedmont Inc [Member] | |
Guarantees: | |
Bank guarantee to secure liability to lessor | $383 |
COMMITMENTS_AND_CONTINGENT_LIA6
COMMITMENTS AND CONTINGENT LIABILITIES (Covenants and Liens on Assets) (Details) (Bental Industries Ltd. [Member], Long-term loan Two [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Bental Industries Ltd. [Member] | Long-term loan Two [Member] | |
Covenants And Liens On Assets [Line Items] | |
Current loan balance | $884 |
COMMITMENTS_AND_CONTINGENT_LIA7
COMMITMENTS AND CONTINGENT LIABILITIES (Vehicle Lease and Maintenance Agreements) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |
2015 | $814,000 |
2016 | 814,000 |
2017 | 762,000 |
Vehicle lease and maintenance agreements [Member] | Vehicles [Member] | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years |
Monthly lease fees | 35,000 |
2015 | 414,000 |
2016 | 110,000 |
2017 | $12,000 |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) | 1 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 19, 2014 | Mar. 19, 2014 |
USD ($) | ILS | ||
Shareholders Equity [Line Items] | |||
Cash dividend declared, amount | $2 | 6.9 | |
Cash dividend declared, value per share | $0.22 | 0.76 | |
Cash dividend declared, declaration date | 19-Mar-14 | ||
Cash dividend declared, record date | 21-Apr-14 | ||
Cash dividend declared, payment date | 7-May-14 |
SHAREHOLDERS_EQUITY_Treasury_P
SHAREHOLDERS' EQUITY (Treasury Purchase Plan) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Nov. 21, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Total consideration paid for shares repurchased | -70 | ||||
Exercise of options, shares | 85,000 | [1] | |||
Treasury Purchase Plan One [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Value of shares authorized to be repurchased | 500 | ||||
Total consideration paid for shares repurchased | ($70) | ||||
Shares repurchased during period, average cost per share | $4.29 | ||||
Balance, shares | 8,805,236 | 8,798,570 | 8,815,003 | ||
Purchase of treasury shares | 16,433 | -16,433 | |||
Exercise of options, shares | 3,108 | 6,666 | |||
Balance, shares | 8,808,344 | 8,805,236 | 8,798,570 | ||
[1] | The aggregate intrinsic value for the options exercised by employees during 2014 was approximately $21. |
SHAREHOLDERS_EQUITY_Stock_Opti
SHAREHOLDERS' EQUITY (Stock Option Plans TAT Technology) (Details) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2014 | Mar. 19, 2014 | Aug. 21, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 28, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | ||
USD ($) | USD ($) | ILS | ILS | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Number of shares authorized for the plan | 380,000 | ||||||||||||||||
Vesting period for plan | 3 years | ||||||||||||||||
Ordinary shares, par value per share | 0.9 | 0.9 | $0.90 | ||||||||||||||
Expected volatility | 37.23% | 41.57% | 39.14% | 43.40% | |||||||||||||
Expected life of option, years | 2 years 10 months 13 days | 2 years 2 months 23 days | 4 years | 3 years 2 months 23 days | |||||||||||||
Average risk-free interest rate | 0.48% | 0.23% | 1.34% | 0.32% | |||||||||||||
Expected dividend yield | 9.80% | 5.00% | 4.60% | ||||||||||||||
Number of options | |||||||||||||||||
Options, beginning | 145,000 | ||||||||||||||||
Options, Granted | 215,000 | 20,000 | 195,000 | 330,000 | |||||||||||||
Options, Forfeited | -40,000 | ||||||||||||||||
Exercised | -85,000 | [1] | |||||||||||||||
Options, ending | 235,000 | ||||||||||||||||
Exercisable at end of year | 20,000 | ||||||||||||||||
Weighted average exercise price | |||||||||||||||||
Options, beginning | $6.50 | ||||||||||||||||
Options, Granted | $8.66 | $7.34 | $8.79 | ||||||||||||||
Options, Forfeited | $8.79 | ||||||||||||||||
Exercised | $6.50 | [1] | |||||||||||||||
Options, ending | $8.28 | ||||||||||||||||
Exercisable at end of year | $6.50 | ||||||||||||||||
Aggregate intrinsic value for the options exercised by employees | $21 | ||||||||||||||||
Weighted-average grant-date fair value of options granted | $1.13 | $0.19 | |||||||||||||||
Aggregate intrinsic value | 0 | 0 | 212,000 | ||||||||||||||
Unrecognized compensation cost related to non-vested stock options | $70,800 | ||||||||||||||||
Unrecognized compensation weighted average period of recognition, years | 1 year 4 months 28 days | ||||||||||||||||
Period in which equity exceeds threshold | 4 years | ||||||||||||||||
[1] | The aggregate intrinsic value for the options exercised by employees during 2014 was approximately $21. |
EARNINGS_LOSS_PER_SHARE_EPS_De
EARNINGS (LOSS) PER SHARE ("EPS") (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator for EPS: | |||
Income (loss) from continuing operations | $1,432 | $5,251 | ($567) |
Net loss from discontinued operations, net of tax | ($2,429) | ($1,147) | |
Denominator for EPS: | |||
Weighted average number of shares outstanding - Basic | 8,805,495 | 8,799,237 | 8,808,075 |
Dilutive shares | 21,047 | 9,683 | |
Weighted average number of shares outstanding - Diluted | 8,826,542 | 8,808,920 | 8,808,075 |
EPS attributable to controlling interest: Basic and diluted | |||
Net income (loss) from continuing operations | $0.16 | $0.60 | ($0.06) |
Loss from discontinued operations | ($0.28) | ($0.13) | |
Anti-dilutive options excluded from calculation of diluted income (loss) per share | 175,000 | 0 | 330,000 |
TAXES_ON_INCOME_Narrative_Deta
TAXES ON INCOME (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes Line Items | ||||||
Period of tax benefit for approved enterprise, maximum | 7 years | |||||
Preferred Income tax rate not within Development Zone A | 12.00% | 16.00% | 12.50% | 15.00% | 15.00% | |
Period of tax benefit for approved enterprise, commencement of production, maximum | 12 years | |||||
Period of tax beneift for approved enterprise, since date of approval, maximum. | 14 years | |||||
Tax exempt period for income, approved enterprise | 2 years | |||||
Preferred Income tax rate for Development Zone A | 6.00% | 9.00% | 7.00% | 10.00% | 10.00% | |
Special Preferred Enterprise income tax rate for Development Zone A | 5.00% | |||||
Special Preferred Enterprise tax rate not within Development Zone A | 8.00% | |||||
The period of Special Preferred Enterprise tax rates apply | 10 years | |||||
Maximum tax rate on dividends distributed from Preferred Income. | 20.00% | 15.00% | ||||
Corporate tax rate for Israel | 26.50% | 25.00% | 25.00% | |||
U.S. subsidiaries tax rate, federal and state | 38.00% | 38.00% | 38.00% | |||
TAT Technologies Ltd [Member] | ||||||
Income Taxes Line Items | ||||||
Preferred Income tax rate not within Development Zone A | 16.00% | 12.50% | 15.00% | 15.00% | ||
Tax rate on transactions | 25.00% | |||||
Accumulated tax exempt income | 1,728 | |||||
Tat Technologies Ltd and Bental Industries Ltd [Member] | ||||||
Income Taxes Line Items | ||||||
Tax rate on transactions | 25.00% |
TAXES_ON_INCOME_Schedule_of_Re
TAXES ON INCOME (Schedule of Reconciliation of Tax Provisions to the Domestic and Effective Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Income before Income Taxes | $2,525 | $5,267 | $5,279 |
Statutory tax rate in Israel | 26.50% | 25.00% | 25.00% |
Theoretical taxes on income | 669 | 1,317 | 1,320 |
Increase (decrease) in taxes on income resulting from: | |||
Tax adjustment for foreign subsidiaries subject to a different tax rate | 457 | 453 | 434 |
Reduced tax rate on income derived from "Preferred Enterprises" plans | 156 | -255 | -143 |
Change in enacted tax rates | 34 | ||
Exempt income | -4 | ||
Valuation allowance | -100 | 294 | 499 |
Tax in respect of prior years | -44 | -342 | -83 |
Permanent differences | 222 | -460 | 67 |
Taxes on income as reported in the statements of income | $1,360 | $1,041 | $2,090 |
TAXES_ON_INCOME_Schedule_of_In
TAXES ON INCOME (Schedule of Income (Loss) from Continuing Operations Before Income Tax Domestic and Foreign) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Domestic (Israel) | ($1,659) | $1,942 | $2,046 |
Foreign (United States) | 4,184 | 3,325 | 3,233 |
Loss before taxes on income | $2,525 | $5,267 | $5,279 |
TAXES_ON_INCOME_Schedule_of_Co
TAXES ON INCOME (Schedule of Components of Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Domestic (Israel) | ($94) | $160 | $282 |
Foreign (United States) | 237 | 334 | 295 |
Total current | 143 | 494 | 577 |
Deferred: | |||
Domestic (Israel) | -36 | 15 | 115 |
Foreign (United States) | 1,297 | 874 | 1,481 |
Total deferred | 1,261 | 889 | 1,596 |
Previous Years: | |||
Domestic (Israel) | -209 | -45 | |
Foreign (United States) | -44 | -133 | -38 |
Total previous years | -44 | -342 | -83 |
Taxes on income as reported in the statements of income | $1,360 | $1,041 | $2,090 |
TAXES_ON_INCOME_Schedule_of_De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||
Deferred tax assets (liabilities): | |||||
Allowance for doubtful accounts | $47 | $47 | |||
Unrealized gains | 174 | 146 | |||
Provisions for employee benefits | 259 | 277 | |||
Inventory | 957 | 920 | |||
Other temporary differences | 257 | 199 | |||
Deferred tax assets - short-term- other accounts receivables | 1,694 | 1,589 | [1] | ||
Goodwill and intangible assets | 533 | 671 | |||
Property, plant and equipment | 21 | 18 | |||
Provisions for employee benefits and other temporary differences | 26 | 38 | |||
Tax credits carryforward | 558 | 447 | |||
Capital and state tax losses carryforward | 3,574 | 3,306 | |||
Net operating losses carryforward | 373 | 419 | |||
Other | 39 | 23 | |||
Deferred tax assets, before valuation allowance - Long-term | 5,124 | 4,922 | |||
Valuation allowance | -3,574 | -3,306 | -1,823 | -184 | |
Deferred tax assets, net - Long-term | 1,550 | 1,616 | |||
Other temporary differences deferred tax liabilities - short-term- other accounts payable | -592 | -40 | [1] | ||
Property, plant and equipment and intangible assets | -1,736 | -1,003 | |||
Other | -38 | -55 | |||
Deferred tax Liabilities - Long-term | ($1,774) | ($1,058) | |||
[1] | (*) Excluding held for sale assets at December 31, 2013 |
TAXES_ON_INCOME_Schedule_of_Ch
TAXES ON INCOME (Schedule of Changes in Valuation Allowance) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in Valuation Allowance | |||
Balance | $3,306 | $1,823 | $184 |
Addition charged to expenses (Deductions) | 268 | 1,483 | 1,639 |
Balance | 3,574 | 3,306 | 1,823 |
Investments In Foreign Subsidiaries And Foreign Corporate Joint Ventures That Are Permanent In Nature [Member] | |||
Changes in Valuation Allowance | |||
Undistributed earnings of foreign subsidiaries | 10,849 | ||
The amount of deferred tax liability that would be recorded if foreign earnings were distributed by cash dividend | 2,712 | ||
Tax rate on recognized foreign earnings dividends | 25.00% | ||
Approved Enterprise [Member] | |||
Changes in Valuation Allowance | |||
Undistributed earnings of foreign subsidiaries | 1,728 | ||
The amount of deferred tax liability that would be recorded if foreign earnings were distributed by cash dividend | $432 | ||
Tax rate on recognized foreign earnings dividends | 25.00% |
TAXES_ON_INCOME_Reconciliation
TAXES ON INCOME (Reconciliation of the Amount of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Unrecognized tax benefits, beginning | $84 | $86 | |
Exchange rate differences | -2 | ||
Exchange rate differences | 6 | ||
Utilization upon assessment | -90 | ||
Unrecognized tax benefits, ending | $84 |
SEGMENT_INFORMATION_Schedule_o
SEGMENT INFORMATION (Schedule of Operating Income By Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | $80,726 | $79,551 | $77,915 |
Cost of revenues | 63,626 | 60,879 | 58,539 |
Gross profit | 17,100 | 18,672 | 19,376 |
Research and development, net | 1,070 | 713 | 995 |
Selling and marketing | 3,203 | 3,150 | 2,899 |
General and administrative | 9,019 | 9,512 | 10,110 |
Other income | -11 | -20 | -13 |
Operating income from continuing operations | 3,819 | 5,317 | 5,385 |
Financial income (expenses), net | -1,294 | -50 | -106 |
Income from continuing operations before taxes on income | 2,525 | 5,267 | 5,279 |
Sale of Products and Services [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 80,726 | 79,551 | 77,915 |
Intersegment Revenues [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | |||
OEM of Heat Management Solutions [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 28,185 | 31,138 | 31,032 |
Cost of revenues | 23,249 | 24,141 | 23,105 |
Gross profit | 4,936 | 6,997 | 7,927 |
Research and development, net | 841 | 415 | 581 |
Selling and marketing | 1,538 | 1,520 | 1,476 |
General and administrative | 2,717 | 3,158 | 3,530 |
Other income | -11 | -20 | -13 |
Operating income from continuing operations | -149 | 1,924 | 2,353 |
Financial income (expenses), net | |||
OEM of Heat Management Solutions [Member] | Sale of Products and Services [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 22,871 | 27,326 | 27,944 |
OEM of Heat Management Solutions [Member] | Intersegment Revenues [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 5,314 | 3,812 | 3,088 |
Heat Transfer Services and Products [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 30,350 | 29,907 | 27,709 |
Cost of revenues | 22,205 | 21,600 | 19,671 |
Gross profit | 8,145 | 8,307 | 8,038 |
Research and development, net | 229 | 298 | 414 |
Selling and marketing | 1,058 | 1,145 | 1,049 |
General and administrative | 3,313 | 3,093 | 3,270 |
Other income | |||
Operating income from continuing operations | 3,545 | 3,771 | 3,305 |
Financial income (expenses), net | |||
Heat Transfer Services and Products [Member] | Sale of Products and Services [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 30,121 | 29,796 | 27,529 |
Heat Transfer Services and Products [Member] | Intersegment Revenues [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 229 | 111 | 180 |
MRO services for Aviation Components [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 27,734 | 22,429 | 22,442 |
Cost of revenues | 23,502 | 19,224 | 19,044 |
Gross profit | 4,232 | 3,205 | 3,398 |
Research and development, net | |||
Selling and marketing | 607 | 485 | 374 |
General and administrative | 2,989 | 3,261 | 3,310 |
Other income | |||
Operating income from continuing operations | 636 | -541 | -286 |
Financial income (expenses), net | |||
MRO services for Aviation Components [Member] | Sale of Products and Services [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | 27,734 | 22,429 | 22,442 |
MRO services for Aviation Components [Member] | Intersegment Revenues [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | |||
Amounts not allocated to segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | |||
Cost of revenues | |||
Gross profit | |||
Research and development, net | |||
Selling and marketing | |||
General and administrative | |||
Other income | |||
Operating income from continuing operations | |||
Financial income (expenses), net | -1,294 | -50 | -106 |
Amounts not allocated to segments [Member] | Sale of Products and Services [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | |||
Amounts not allocated to segments [Member] | Intersegment Revenues [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | |||
Elimination from inter companies sale [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | -5,543 | -3,923 | -3,268 |
Cost of revenues | -5,330 | -4,086 | -3,281 |
Gross profit | -213 | 163 | 13 |
Research and development, net | |||
Selling and marketing | |||
General and administrative | |||
Other income | |||
Operating income from continuing operations | -213 | 13 | |
Financial income (expenses), net | |||
Elimination from inter companies sale [Member] | Sale of Products and Services [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | |||
Elimination from inter companies sale [Member] | Intersegment Revenues [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues | ($5,543) | ($3,923) | ($3,268) |
SEGMENT_INFORMATION_Schedule_o1
SEGMENT INFORMATION (Schedule of Assets, Depreciation and Amortization, and Capital Expenditures by Segment) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | $101,468 | $108,880 | |||
Depreciation and amortization | 2,069 | 1,859 | [1] | 1,906 | [1] |
Expenditure for segment assets | 2,475 | 2,830 | [1] | 2,147 | [1] |
OEM of Heat Management Solutions [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 33,072 | 45,518 | |||
Depreciation and amortization | 1,027 | 991 | [1] | 974 | [1] |
Expenditure for segment assets | 1,126 | 1,032 | [1] | 1,047 | [1] |
OEM - Electric Motion Systems [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Depreciation and amortization | [1] | ||||
Expenditure for segment assets | [1] | ||||
Heat Transfer Services and Products [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 28,917 | 28,806 | |||
Depreciation and amortization | 675 | 603 | [1] | 735 | [1] |
Expenditure for segment assets | 810 | 664 | [1] | 756 | [1] |
MRO services for Aviation Components [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 23,044 | 18,137 | |||
Depreciation and amortization | 367 | 265 | [1] | 197 | [1] |
Expenditure for segment assets | 539 | 1,134 | [1] | 344 | [1] |
Amounts not allocated to segments [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 16,435 | 16,419 | |||
Depreciation and amortization | [1] | [1] | |||
Expenditure for segment assets | [1] | [1] | |||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. |
ENTITYWIDE_DISCLOSURE_Details
ENTITY-WIDE DISCLOSURE (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - sales of products | $31,363 | $34,364 | [1] | $36,263 | [1] |
Total revenues - services | 49,363 | 45,187 | [1] | 41,652 | [1] |
Long-lived assets - sale of products | 5,830 | 5,748 | [2] | ||
Long-lived assets - service revenues | 5,694 | 5,399 | [2] | ||
Number of customers accounting for more than 10% of total net revenue | |||||
Israel [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - sales of products | 4,807 | 6,248 | [1] | 9,147 | [1] |
Total revenues - services | 834 | 612 | [1] | 468 | [1] |
Long-lived assets - sale of products | 5,830 | 5,748 | [2] | ||
Long-lived assets - service revenues | [2] | ||||
Unites States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - sales of products | 18,886 | 18,016 | [1] | 16,475 | [1] |
Total revenues - services | 31,267 | 27,639 | [1] | 25,648 | [1] |
Long-lived assets - sale of products | [2] | ||||
Long-lived assets - service revenues | 5,694 | 5,399 | [2] | ||
France [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - sales of products | 3,642 | 5,482 | [1] | 4,604 | [1] |
Long-lived assets - sale of products | [2] | ||||
Netherland [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - services | 1,734 | 1,553 | [1] | 3,303 | [1] |
Long-lived assets - service revenues | [2] | ||||
Rest of Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - sales of products | 2,257 | 2,292 | [1] | 1,966 | [1] |
Total revenues - services | 8,786 | 7,658 | [1] | 4,624 | [1] |
Long-lived assets - sale of products | [2] | ||||
Long-lived assets - service revenues | [2] | ||||
Other [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenues - sales of products | 1,771 | 2,326 | [1] | 4,071 | [1] |
Total revenues - services | 6,742 | 7,725 | [1] | 7,609 | [1] |
Long-lived assets - sale of products | [2] | ||||
Long-lived assets - service revenues | [2] | ||||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013 and 2012. | ||||
[2] | Excluding held for sale assets at December 31, 2013 |
SELECTED_STATEMENTS_OF_INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial income: | |||
Foreign currency gains | $975 | $661 | $1,294 |
Derivatives | 27 | 399 | |
Interest on tax refund | 150 | 95 | 53 |
Interest on cash equivalents, short-term bank deposits and others | 91 | 114 | 242 |
Total financial income | 1,216 | 897 | 1,988 |
Financial expenses: | |||
Bank charges | -97 | -77 | -71 |
Interest on short-term loans | -8 | -18 | -98 |
Interest on long-term loans | -8 | -66 | -120 |
Foreign currency losses | -1,028 | -786 | -1,376 |
Forward transactions losses | -1,369 | ||
Derivatives | -321 | ||
Others | -108 | ||
Total financial expenses | -2,510 | -947 | -2,094 |
Financial income (expenses), net | ($1,294) | ($50) | ($106) |
SUPPLEMENTAL_CONSOLIDATED_BALA2
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Deductions | ($105) | ($270) | ($72) |
Warranty provision [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | 229 | 276 | 288 |
Additions | 286 | 186 | 196 |
Deductions | -264 | -190 | -208 |
Less: Held for sale | -43 | ||
Balance, ending | 251 | 229 | 276 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | 123 | 376 | 190 |
Additions | 107 | 17 | 258 |
Less: Held for sale | |||
Balance, ending | $125 | $123 | $376 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Nov. 29, 2011 | Nov. 29, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 11, 2015 | Mar. 11, 2015 | Mar. 11, 2015 | |
USD ($) | ILS | USD ($) | ILS | FAvS [Member] | FAvS [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Piedmont Aviation Component Services, LLC [Member] | Piedmont Aviation Component Services, LLC [Member] | Piedmont Aviation Component Services, LLC [Member] | |||||||
FAvS [Member] | FAvS [Member] | FAvS [Member] | |||||||
USD ($) | Class B Common Stock [Member] | Series A Preferred stock [Member] | |||||||
USD ($) | USD ($) | ||||||||
Subsequent Event [Line Items] | |||||||||
Number of shares sold | 237,932 | -16,253 | |||||||
Ownership percentage before transaction | 23.18% | ||||||||
Purchase price per share | $8.40 | $100 | |||||||
Aggregate purchase price | $1,999 | $1,625 | |||||||
Gain from sale of shares | 1,395 | ||||||||
Ownership percentage | 28.08% | 29.36% | 5.00% | ||||||
Damages being sought in litigation matter | $1,620 | 6,151 | $1,620,000 | 6,151,000 |