Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information Abstract | ' |
Entity Registrant Name | 'TAT TECHNOLOGIES LTD |
Entity Central Index Key | '0000808439 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Document Type | '20-F |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Entity Common Stock, Shares Outstanding | 8,805,236 |
Entity Well-known Seasoned Issuer | 'No |
Entity Current Reporting Status | 'Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS: | ' | ' | |
Cash and cash equivalents | $19,814 | $17,786 | |
Short-term bank deposits | 10,059 | 10,048 | |
Short-term restricted deposits | ' | 2,307 | |
Accounts receivable-trade, net | 18,387 | 21,156 | |
Other accounts receivable and prepaid expenses | 3,314 | [1] | 4,587 |
Inventories, net | 29,395 | [1] | 33,031 |
Assets held for sale | 9,959 | ' | |
Total current assets | 90,928 | 88,915 | |
INVESTMENT AND OTHER NON CURRENT ASSETS: | ' | ' | |
Investment in an affiliated company | 2,289 | 1,264 | |
Funds in respect of employee rights upon retirement | 2,900 | 3,318 | |
Deferred income taxes | 1,616 | 2,535 | |
Total investment and other non current assets | 6,805 | 7,117 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 11,147 | [1] | 12,910 |
Total long-term assets | 17,952 | 20,027 | |
Total assets | 108,880 | 108,942 | |
CURRENT LIABILITIES: | ' | ' | |
Short term bank loan and current maturities of long-term loans | 910 | 3,274 | |
Accounts payable trade | 6,941 | 6,804 | |
Other accounts payable and accrued expenses | 5,815 | [1] | 7,407 |
Liabilities held for sale | 3,428 | ' | |
Total current liabilities | 17,094 | 17,485 | |
NON CURRENT LIABILITIES: | ' | ' | |
Long-term loans, net of current maturities | ' | 1,116 | |
Other long-term liabilities | 58 | ' | |
Liability in respect of employee rights upon retirement | 3,140 | 3,815 | |
Deferred income taxes | 1,058 | 1,490 | |
Total long-term liabilities | 4,256 | 6,421 | |
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 14) | ' | ' | |
Total liabilities | 21,350 | 23,906 | |
EQUITY: | ' | ' | |
Ordinary shares of NIS 0.9 par value : Authorized: 10,000,000 shares at December 31, 2013 and 2012; Issued: 9,079,709 and 9,073,043 shares at December 31, 2013 and 2012, respectively; Outstanding: 8,805,236 and 8,798,570 shares at December 31, 2013 and 2012, respectively | 2,792 | 2,790 | |
Additional paid-in capital | 64,454 | 64,410 | |
Treasury stock, at cost, 274,473 shares at December 31, 2013 and 2012 | -2,088 | -2,088 | |
Accumulated other comprehensive loss | -429 | -897 | |
Retained earnings | 20,840 | 18,018 | |
Total shareholders' equity | 85,569 | 82,233 | |
Non-controlling interest | 1,961 | 2,803 | |
Total equity | 87,530 | 85,036 | |
Total liabilities and equity | $108,880 | $108,942 | |
[1] | Excluding held for sale assets at December 31, 2013 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (ILS) | Dec. 31, 2013 | Dec. 31, 2012 |
Ordinary shares, par value per share | 0.9 | 0.9 |
Ordinary shares, shares authorized | 10,000,000 | 10,000,000 |
Ordinary shares, shares issued | 9,079,709 | 9,073,043 |
Ordinary shares, shares outstanding | 8,805,236 | 8,798,570 |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues: | ' | ' | ' | |||
Products | $34,364 | [1] | $36,263 | [1] | $36,837 | [1] |
Services | 45,187 | 41,652 | 36,902 | |||
Total revenues | 79,551 | 77,915 | 73,739 | |||
Cost of revenues: | ' | ' | ' | |||
Products | 24,892 | 25,177 | 24,914 | |||
Services | 35,987 | 33,362 | 31,794 | |||
Write down of inventory and impairment charges of long lived assets | ' | ' | 5,465 | |||
Total cost of revenues | 60,879 | 58,539 | 62,173 | |||
Gross profit | 18,672 | 19,376 | 11,566 | |||
Operating expenses: | ' | ' | ' | |||
Research and development, net | 713 | 995 | 455 | |||
Selling and marketing | 3,150 | 2,899 | 2,819 | |||
General and administrative | 9,512 | 10,110 | 9,450 | |||
Other income | -20 | -13 | -190 | |||
Total operating expenses | 13,355 | 13,991 | 12,534 | |||
Operating income (loss) from continuing operations | 5,317 | 5,385 | -968 | |||
Financial expenses, net | -947 | -2,094 | -2,123 | |||
Financial income | 897 | 1,988 | 1,703 | |||
Gain from dilution of interests in affiliated company | ' | ' | 240 | |||
Income (loss) from continuing operations before taxes on income | 5,267 | 5,279 | -1,148 | |||
Taxes on income (tax benefit) | 1,041 | 2,090 | -335 | |||
Net income (loss) from continuing operations after taxes on income | 4,226 | 3,189 | -813 | |||
Share in results of affiliated company and impairment of share in affiliated company | 1,025 | -3,756 | 331 | |||
Net income (loss) from continuing operations | 5,251 | -567 | -482 | |||
Loss from discontinued operations, net of tax ($5, $3 and $19 in 2013, 2012 and 2011, respectively) | -2,429 | -1,147 | -548 | |||
Net loss attributable to TAT Technologies Ltd. shareholders | $2,822 | ($1,714) | ($1,030) | |||
EPS attributable to controlling interest: Basic and diluted | ' | ' | ' | |||
Net income (loss) from continuing operations per share attributable to controlling interest | $0.60 | ($0.06) | ($0.05) | |||
Loss from discontinued operations per share attributable to controlling interest | ($0.28) | ($0.13) | ($0.07) | |||
Basic and diluted net loss per share attributable to controlling interest | $0.32 | ($0.19) | ($0.12) | |||
Weighted average number of shares outstanding - Basic | 8,799,237 | 8,808,075 | 8,815,003 | |||
Weighted average number of shares outstanding - Diluted | 8,808,920 | [2] | 8,808,075 | [2] | 8,815,003 | [2] |
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. | |||||
[2] | Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Net income (loss) | $1,780 | ($1,772) | ($1,083) |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 668 | 209 | -819 |
Unrealized loss on marketable securities, net of tax | ' | ' | -11 |
Total other comprehensive income (loss) | 668 | 209 | -830 |
Comprehensive income (loss) | 2,448 | -1,563 | -1,913 |
Comprehensive loss (income) attributable to non controlling interest | 842 | -12 | 261 |
Comprehensive income (loss) attributable to shareholders | $3,290 | ($1,575) | ($1,652) |
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, 2010 | $91,111 | $2,790 | $64,439 | ($414) | ($2,018) | $23,262 | $3,052 |
Balance, shares at Dec. 31, 2010 | ' | 9,073,043 | ' | ' | ' | ' | ' |
Net income (loss) | -1,083 | ' | ' | ' | ' | -1,030 | -53 |
Foreign currency translation | -819 | ' | ' | -614 | ' | ' | -205 |
Adjustment on marketable securities | -11 | ' | ' | -8 | ' | ' | -3 |
Share based compensation (income) expense | -37 | ' | -37 | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' |
Net income (loss) | -1,772 | ' | ' | ' | ' | -1,714 | -58 |
Foreign currency translation | 209 | ' | ' | 139 | ' | ' | 70 |
Adjustment on marketable securities | ' | ' | ' | ' | ' | ' | ' |
Dividend distributed | -2,500 | ' | ' | ' | ' | -2,500 | ' |
Purchase of treasury shares | -70 | ' | ' | ' | ' | ' | ' |
Purchase of treasury shares, shares | ' | ' | ' | ' | -70 | ' | ' |
Share based compensation (income) expense | 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 | ' | ' | ' | ' | ' |
Net income (loss) | 1,780 | ' | ' | ' | ' | 2,822 | -1,042 |
Foreign currency translation | 668 | ' | ' | 468 | ' | ' | 200 |
Adjustment on marketable securities | ' | ' | ' | ' | ' | ' | ' |
Share based compensation (income) expense | 3 | ' | 3 | ' | ' | ' | ' |
Exercise of options | 43 | 2 | 41 | ' | ' | ' | ' |
Exercise of options, shares | 6,666 | 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 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' | |||
Net income (loss) attributable to TAT Technologies Ltd. shareholders | $2,822 | ($1,714) | ($1,030) | |||
Net loss from discontinued operations | 2,429 | 1,147 | 548 | |||
Net income (loss) from continuing operations | 5,251 | -567 | -482 | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' | ' | |||
Depreciation and amortization | 1,859 | [1] | 1,906 | [1] | 2,618 | [1] |
Exchange differentials of loans | 23 | 16 | -19 | |||
Write down of inventory | 67 | ' | 2,500 | |||
Impairment of goodwill, intangible assets and other long lived assets | ' | ' | 2,965 | |||
Gain on sale of property and equipment | -20 | -12 | -190 | |||
Loss (gain) from change in fair value of derivatives | -27 | -399 | 372 | |||
Interest from short-term bank deposits and restricted deposits | -11 | -48 | ' | |||
Provision for doubtful accounts | 17 | 258 | 31 | |||
Share in results of affiliated company and impairment of share in affiliated company | -1,025 | 3,756 | -331 | |||
Gain from dilution of interests in affiliated company | ' | ' | -240 | |||
Share based compensation expenses (income) | 3 | 8 | -37 | |||
Liability in respect of employee rights upon retirement | 286 | 396 | -86 | |||
Deferred income taxes, net | 71 | 1,712 | -863 | |||
Changes in operating assets and liabilities: | ' | ' | ' | |||
Amounts due to (from) related parties, net | -63 | 711 | -674 | |||
Increase in trade accounts receivable | -1,001 | -979 | -1,717 | |||
Decrease in other accounts receivable, prepaid expenses and other | 1,195 | 266 | 1,161 | |||
Decrease (increase) in inventories, net | 659 | -2,908 | -2,021 | |||
Increase (decrease) in trade accounts payable | 278 | 581 | -82 | |||
Increase (decrease) in other accounts payable and accrued expenses | -417 | 1,197 | -1,498 | |||
Increase (decrease) in other long-term liabilities | 58 | -2 | ' | |||
Net cash provided by operating activities | 7,203 | 5,892 | 1,407 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' | |||
Proceeds from sale of marketable securities | ' | 1,900 | 50 | |||
Funds in respect of employee rights upon retirement | -48 | -457 | 103 | |||
Proceeds from sale of property and equipment | 51 | 50 | 217 | |||
Purchase of property and equipment | -2,240 | -2,147 | -2,953 | |||
Investment in short-term deposit | ' | -10,000 | ' | |||
Proceeds released from restricted deposits | 2,307 | 947 | 1,822 | |||
Net cash provided by (used in) investing activities | 70 | -9,707 | -761 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' | |||
Repayments of long-term loans | -2,286 | -776 | -3,021 | |||
Proceeds from long-term loans received | ' | ' | 674 | |||
Dividend paid | ' | -2,500 | ' | |||
Repayments of short-term loans | -719 | -4,542 | -796 | |||
Short-term credit received from a bank | 26 | 627 | 2,645 | |||
Repurchase of treasury shares | ' | -70 | ' | |||
Exercise of options | 43 | ' | ' | |||
Net cash used in financing activities | -2,936 | -7,261 | -498 | |||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ' | ' | ' | |||
Cash provided by operating activities of discontinued operations | 685 | 2,054 | 148 | |||
Cash provided by (used in) investing activities of discontinued operations | -31 | -226 | 272 | |||
Cash used in financing activities of discontinued operations | -304 | -285 | -351 | |||
Effect of exchange rate changes on cash and cash equivalents of discontinued operations | 164 | 90 | -29 | |||
Net cash provided by discontinued operations | 514 | 1,633 | 40 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,851 | -9,443 | 188 | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 17,786 | 27,229 | 27,041 | |||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 22,637 | 17,786 | 27,229 | |||
Cash and cash equivalents | 2,823 | 2,309 | 676 | |||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 19,814 | 17,786 | ' | |||
Supplementary information on investing activities not involving cash flows: | ' | ' | ' | |||
Purchase of property and equipment on credit | 590 | ' | ' | |||
Supplemental disclosure of cash flow information: | ' | ' | ' | |||
Interest paid | -89 | -209 | -184 | |||
Income taxes paid | -961 | -813 | -966 | |||
Income taxes refunds | $1,383 | $780 | $1,793 | |||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. |
GENERAL
GENERAL | 12 Months Ended | ||
Dec. 31, 2013 | |||
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; | ||
· | Design, development and manufacture of environmental control and cooling systems; and | ||
· | Production and development of precision electric motion systems, mainly earmarked for the defense industries. | ||
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, 2013, Limco-Piedmont holds 100% of Limco-Airepair Inc. ("Limco"), of Piedmont Aviation Component Services LLC. ("Piedmont") and holds, through Piedmont, 29.36% 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. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2013 | |||
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 goodwill, intangible assets and 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. | |||
Most of Bental's revenues are generated in New Israeli Shekel ("NIS") and a substantial portion of Bental's costs are incurred in NIS. In addition, Bental's financing has been obtained in NIS. Accordingly, the NIS is the currency of the primary economic environment in which Bental operates and accordingly its functional and reporting currency is the NIS. For Bental whose functional currency has been determined to be the NIS, assets and liabilities are translated at year-end exchange rates, and statement of operations items are translated at average exchange rates prevailing during the year. Resulting translation differences are recorded as a separate component of accumulated other comprehensive income (loss) in equity. Although Bental has been accounted for as a discontinued operation, the currency impact of its business is not removed from other comprehensive income (loss). | |||
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 0.60%. | |||
f. | Restricted deposits | ||
Restricted deposits primarily consisted of cash deposits which secured a guarantee provided by the Group to an affiliated company and a loan provided to the Company by a financial institution; see note 14(f)(5) for additional information. Classification of restricted deposits as current or non-current assets takes into consideration the expected release date. | |||
g. | 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. | |||
h. | Inventories | ||
Inventories are measured at the lower of cost or market. | |||
Cost of inventories is determined as follows: | |||
Raw materials and parts | - | On the basis of actual cost or standard cost. | |
Work in progress and Finished goods | - | On the basis of actual cost or standard cost which takes into account materials, labor and other direct and indirect manufacturing costs, or identifiable direct costs. | |
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. | |||
i. | 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 | 7-Jun | ||
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. | |||
j. | 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. | |||
k. | 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 between 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). | |||
l. | 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 8 and 9). | |||
m. | Treasury Shares | ||
Company shares held by the Company are presented as a reduction of equity at their cost to the Company. | |||
n. | 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, 2013, 2012 and 2011, 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. | |||
o. | 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. | |||
p. | 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. | |||
q. | Research and development | ||
Research and development costs, net of grants, are charged to expenses as incurred. | |||
r. | 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. | |||
s. | 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. | |||
t. | 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(i). | |||
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 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, the Company computed deferred tax asset derived from estimated loss for tax purposes, incurred in the sale of its entire interest in Bental. For such capital loss the Company provides 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 non-Israeli 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(b)), 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. | |||
Results for tax purposes for the Company and 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 income tax expense. Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date. | |||
u. | 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). | |||
w. | 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. | |||
x. | 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. | |||
The total share-based compensation expenses (income) recognized in the years ended December 31, 2013, 2012 and 2011 in the statements of operations were $3, $8 and $(37), respectively. | |||
y. | Comprehensive income (loss) | ||
Comprehensive income (loss), net of related taxes where applicable, includes, in addition to net income (loss): (i) currency translation adjustments; and (ii) unrealized holding gains and losses on available-for-sale securities. | |||
z. | 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. | |||
aa. | Reclassifications: | ||
Certain comparative amounts previously reported as cash and cash equivalents have been reclassified to accounts payable and accounts receivable. | |||
ab. | Recently Issued Accounting Principles | ||
In February 2013, the FASB issued accounting standard update ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Previously, information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income had been presented in separate places throughout the financial statements. ASU No. 2013-02 requires entities to present this information in one centralized disclosure in the financial statements; however, it emphasized that there is no change in the current requirements for reporting net income or other comprehensive income in financial statements. The adoption of ASU No. 2013-02 did not have a material effect on Company's consolidated financial statements. |
INVESTMENT_IN_AN_AFFILIATED_CO
INVESTMENT IN AN AFFILIATED COMPANY | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INVESTMENT IN AN AFFILIATED COMPANY [Abstract] | ' | ||||||||||||
INVESTMENT IN AN AFFILIATED COMPANY | ' | ||||||||||||
NOTE 3 - INVESTMENT IN AN AFFILIATED COMPANY | |||||||||||||
a. | Acquisition of stocks of FAvS | ||||||||||||
On December 4, 2009, the Company, through its subsidiary Piedmont, signed an investment agreement with FAvS. According to the agreement Piedmont was issued 288,334 shares of Class B Common stock of FAvS representing 37% of FAvS' then share capital and $ 750 of FAvS Preferred stocks (entitled to cash dividends at an annual rate of 12% payable quarterly or to additional Preferred stocks at an annual rate of 15%) in return for Piedmont's propeller and parts businesses. | |||||||||||||
On the date of the above mentioned transaction, FAvS also signed an agreement to purchase all the assets and liabilities of Aerospace Turbine Rotables ("AeTR"). AeTR specializes in renovation and repair of landing gear, safety equipment and hydraulic and electrical components for corporate, regional and military aircraft. Piedmont also provided a guarantee for a period of one year (later renewed for additional periods until finally released on March 2013 as described further below) of up to $ 7,000 with respect to FAvS' debt in connection with the acquisition of AeTR (see also note 14(e)). | |||||||||||||
On October 1, 2010, Piedmont agreed to extend the guarantee for $6,600, by renewing the guarantee to the lender of FAvS. The renewed guarantee was for a period of 15 months that ended on December 31, 2011, and Piedmont was also granted a second lien on the assets of FAvS to secure the repayment obligations of FAvS in the event that the letter of credit is drawn upon. Piedmont also entered into an inter creditor agreement with the lender to FAvS which subordinated Piedmont's claims if the letter of credit is drawn upon to the obligations of FAvS to the lender. | |||||||||||||
FAvS' shares are quoted over the counter (OTC) at the PINKSHEET stock market (PINKSHEET: FAVS.PK). FAvS' share value as of December 31, 2013, 2012 and 2011 was $6.60, $7.0 and $5.45, respectively. The Company believes that the share value does not reflect the fair value of FAvS' share, due to very low trading volume in FAvS' shares that do not comprise an active market. | |||||||||||||
A commercial dispute existed between Piedmont and FAvS relating to the propeller maintenance business which had been contributed to FAvS by Piedmont, as part of the transaction discussed above. The commercial dispute began in April 2010 when a customer of the propeller maintenance business requested reimbursement from FAvS for damages to certain propellers. FAvS then sought reimbursement from Piedmont for such amounts. | |||||||||||||
In order to settle the commercial dispute that existed between TAT's subsidiary, Piedmont and FAvS, on June 30, 2011, Piedmont and FAvS entered into a Settlement Agreement and Release (the "Settlement Agreement"). Pursuant to the Settlement Agreement, each party fully released the other party and acknowledged that the settlement was a compromise of disputed claims and was not to be construed as an admission of liability or wrongdoing. In addition, each party agreed not to disparage the other and Piedmont paid an aggregate amount of $1,400 to FAvS (which amount had been fully reserved during 2010). | |||||||||||||
Simultaneously with the execution of the Settlement Agreement, the Chief Executive Officer and controlling stockholder of FAvS ("FAvS CEO"), purchased 166,113 shares of Class A Common Stock of FAvS at a price of $18.06 per share, for an aggregate amount of $3,000, while diluting Piedmont's interest in FAvS from 36.6% to 30.3% (29.36% as of December 31, 2013). In addition, Piedmont agreed to extend its guarantee to the bank debt incurred by FAvS to fund the AeTR transaction through June 30, 2013 and to continue to provide a letter of credit to secure such guarantee. The amortization schedule for such debt was revised so that no amortization will occur until June 30, 2012. Thereafter the debt will amortize at the rate of $200 per month. On March 18, 2013, the guarantee was released with the completion of the transaction, as described further below. | |||||||||||||
The Stockholders Agreement initially entered into in 2009 between Piedmont and FAvS CEO was also amended to delete the reciprocal drag along rights and to provide that Piedmont may designate one member to the Board of Directors of FAvS (rather than the two members provided in the original agreement). Finally, the Rights Agreement entered into in 2009 between Piedmont and FAvS was amended so that Piedmont's right to approve certain material corporate actions by FAvS has been limited to the right to approve contracts or agreements with affiliates of FAvS. The amendment also provided that the approval of Piedmont would not be required if FAvS seeks to raise additional capital from FAvS CEO as long as the consideration that was paid by FAvS CEO was not less than the consideration that would have been paid by a third-party in an arms-length transaction and would have been a fair, equitable and reasonable consideration under the circumstances. | |||||||||||||
In connection with the Settlement Agreement and the dilution in Piedmont's interest in FAvS, the Company recorded, on June 30, 2011, a gain in the amount of $240 related to the $3,000 capital investment in FAvS by FAvS CEO which was at a higher share price than recorded at Piedmont books. | |||||||||||||
In June 2012, FAvS entered into another transaction with FAvS CEO, pursuant to which FAvS borrowed $3,000 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. 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. | |||||||||||||
On March 18, 2013, FAvS closed a transaction according to which it sold the majority of the stock of API, one of its subsidiaries, for a total purchase price of $16,500, out of which $15,900 were used to pay-off the outstanding balance of FAvS' Revolving Line of Credit as of the transaction date. The sale resulted in FAvS retaining a 3% equity interest in the API business. The transaction resulted in a loss from discontinued operations on FAvS books and a write-down of the API business of $11,500 (the "Write Down") which is included in the FAvS loss for the year ended December 31, 2012. As mentioned above, on June 30, 2012, as a result of certain indications of impairment, the Company recorded an impairment charge of $3,300 in its investment in FAvS (which approximates its share in the said Write-Down). The Company also recorded its share in the losses of FAvS for the year ended on December 31, 2012 in the amount of $456. As such, no additional impairment was required to be recorded by Piedmont at the time of the closing of the sale of API. Simultaneously with the transaction, FAvS paid-off its Term Loan in the amount of $4,000 on March 18, 2013, thereby releasing the guarantee issued to the lending bank by the Piedmont. Accordingly the restricted deposit associated with the above guarantee, was released as well as of March 18, 2013. | |||||||||||||
b. | Financial information | ||||||||||||
The FAvS audited consolidated financial statements as of December 31, 2012, which were signed on March 20, 2013, included a restatement for their 2011 consolidated financial statements for the correction of errors in its previously reported amounts. | |||||||||||||
Company's management reviewed the restatement and its effect on the consolidated financial statements of the Company and found it to be immaterial to the Company's financial statements for all periods reported. Accordingly, no restatement was recorded in the Company's consolidated financial statements. | |||||||||||||
Condensed financial information from FAvS consolidated balance sheets as of December 31, 2013 and 2012: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 10,179 | $ | 31,090 | |||||||||
Long-term assets | 8,954 | 9,742 | |||||||||||
Total assets | 19,133 | 40,832 | |||||||||||
Current liabilities | 6,522 | 31,476 | |||||||||||
Long-term liabilities | 4,471 | 4,196 | |||||||||||
Total liabilities | $ | 10,993 | $ | 35,672 | |||||||||
Condensed financial information from FAvS consolidated statements of operations for each of the three years in the period ended December 31, 2013: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales | $ | 23,445 | $ | 21,579 | $ | 20,515 | |||||||
Gross profit | 6,182 | 9,202 | 8,626 | ||||||||||
Loss from continuing operations | (341 | ) | (1,476 | ) | 630 | ||||||||
Net income (loss) | 3,158 | (12,979 | ) | (94 | ) | ||||||||
Income (loss) attributable to common stockholders | $ | 2,821 | $ | (13,271 | ) | $ | (345 | ) | |||||
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, 2013, 2012 and 2011: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Share in income (loss) related to common stockholders | $ | 837 | $ | (653 | ) | $ | 192 | ||||||
Share in income related to preferred stock | 187 | 197 | 139 | ||||||||||
Impairment of in affiliated company | - | (3,300 | ) | - | |||||||||
Gain from dilution of interests in affiliated company | - | - | 240 | ||||||||||
Net income (loss) | $ | 1,024 | $ | (3,756 | ) | $ | 571 |
HELD_FOR_SALE_CLASSIFICATION_A
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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 million, 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 3 measurement. | |||||||||||||
Closing of the transaction is expected to take place within the next several weeks. | |||||||||||||
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: | |||||||||||||
Cash and cash equivalents | $ | 2,823 | |||||||||||
Trade accounts receivable | 4,067 | ||||||||||||
Other accounts receivable and prepaid expenses | 196 | ||||||||||||
Inventories, net | 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 | |||||||||||
The following are amounts related to Bental included in net loss from discontinued operations: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 9,589 | $ | 10,008 | $ | 11,658 | |||||||
Loss before taxes on income (tax benefit) | $ | (148 | ) | $ | (191 | ) | $ | (158 | ) | ||||
Loss from discontinued operations, net of tax ($5, $3 and $19 in 2013, 2012 and 2011, respectively) | $ | (3,471 | ) | $ | (1,205 | ) | $ | (601 | ) | ||||
Loss from discontinued operations attributable to non-controlling interest | 1,042 | 58 | 53 | ||||||||||
Loss from discontinued operations attributable to TAT Technologies Ltd. shareholders | $ | (2,429 | ) | $ | (1,147 | ) | $ | (548 | ) |
AVAILABLEFORSALE_MARKETABLE_SE
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES [Abstract] | ' | ||||||||||||
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES | ' | ||||||||||||
NOTE 5 - AVAILABLE-FOR-SALE - MARKETABLE SECURITIES | |||||||||||||
31-Dec-13 | |||||||||||||
Amortized Cost | Gross | Fair | |||||||||||
Unrealized | Value | ||||||||||||
Gains | |||||||||||||
Available-for-sale: | |||||||||||||
Money Market | $ | 1,136 | $ | - | $ | 1,136 | |||||||
31-Dec-12 | |||||||||||||
Amortized Cost | Gross | Fair | |||||||||||
Unrealized | Value | ||||||||||||
Gains | |||||||||||||
Available-for-sale: | |||||||||||||
Money Market | $ | 3,341 | $ | - | $ | 3,341 |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
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 measured at fair value on a recurring basis, consisted of the following types of instruments: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | - | $ | 1,136 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Money Market | $ | 3,341 | $ | - | $ | - | $ | 3,341 | |||||||||||||
Derivatives | - | 27 | - | 27 | |||||||||||||||||
Total | $ | 3,341 | $ | 27 | $ | - | $ | 3,368 | |||||||||||||
The carrying amounts of financial instruments, include cash and cash equivalents, short-term bank deposits, accounts receivable, accounts payable and accrued liabilities, approximate fair value because of their generally short maturities. | |||||||||||||||||||||
The fair values of long-term liabilities were 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 liabilities approximates their fair value since 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 December 31, 2012 | Quoted prices | Significant | Significant | Total | |||||||||||||||||
in active | other | unobservable | losses for the year ended December 31, 2012 | ||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||||
(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 System 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, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 7 - | INVENTORIES, NET | ||||||||
Inventories are composed of the following: | |||||||||
December 31, | |||||||||
2013 (*) | 2012 | ||||||||
Raw materials and components | $ | 9,648 | $ | 12,321 | |||||
Work in process | 14,044 | 16,145 | |||||||
Spare parts | 4,742 | 3,897 | |||||||
Finished goods | 961 | 668 | |||||||
$ | 29,395 | $ | 33,031 | ||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
Inventories are net of reserve for slow moving. | |||||||||
Write down of inventory (as mentioned below) is in the amount of $1,147 and $1,430 at December 31, 2013 and 2012, respectively. | |||||||||
During the year ended December 31, 2011, the Company recorded a write down of inventory in the amount of $2,500 attributable to inventory of the MRO services for aviation components segment. The write down was due to management's estimation of the continued decline in future forecasted sales levels and decline in profitability margins in certain product lines in this operating segment, which were lower than previously anticipated, resulting from the weakness in these areas of business, and was recorded under cost of revenues. | |||||||||
In 2013, 2012 and 2011, approximately $350, $1,892 and $1,501, 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, 2013 | |||||||||
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, | |||||||||
2013 (*) | 2012 | ||||||||
Cost: | |||||||||
Land and buildings | $ | 5,582 | $ | 6,929 | |||||
Machinery and equipment (1) | 34,696 | 36,849 | |||||||
Motor vehicles | 418 | 676 | |||||||
Office furniture and equipment | 1,559 | 2,293 | |||||||
Software | 1,166 | 1,166 | |||||||
43,421 | 47,913 | ||||||||
Less: Accumulated depreciation | 32,274 | 35,003 | |||||||
Depreciated cost | $ | 11,147 | $ | 12,910 | |||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
-1 | The cost is net of investment grants received by Bental in the amount of $274 as of December 31, 2012. | ||||||||
Depreciation and amortization expenses amounted to $1,859, $1,906 and $2,618 for the years ended December 31, 2013, 2012 and 2011, respectively (depreciation and amortization expenses do not include impairment charges). | |||||||||
During the year ended December 31, 2011, the Company recorded impairment of property, plant and equipment in the amount of $1,865, attributable to certain property and equipment items of the MRO services for aviation components segment, based on estimations of the fair value of these assets. The impairment charge was recorded under the cost of revenues item in the consolidated statements of operations. | |||||||||
Liens on property, plant and equipment are discussed at note 14(f). |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ' | ||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||
NOTE 9 - GOODWILL AND INTANGIBLE ASSETS | |||||||||
a. | Intangible assets: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
License for service center | |||||||||
Cost | $ | 2,050 | $ | 2,050 | |||||
Accumulated amortization and impairment charges | (2,050 | ) | (2,050 | ) | |||||
Amortized cost | $ | - | $ | - | |||||
Amortization expenses amounted to $539 for the year ended December 31, 2011 (amortization expenses do not include impairment charges). | |||||||||
For the year ended December 31, 2011, due to decrease in the anticipated profit margins the Company recorded an impairment charge for its intangible assets in the total amount of $1,398, under cost of revenues. This amount is comprised of impairment charge in the amount of $1,100 (the entire asset was written off) in connection with the "Authorized service center" intangible asset at the MRO services for Aviation Components operating segment and $298 (the entire asset was written off) in connection with the 'Customer Relations' intangible asset at its OEM of Electric Motion Systems operating segment (see also note 6(2)). | |||||||||
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. | |||||||||
During the year ended December 31, 2011, the Company determined under the first step of its annual test that the fair value of the OEM of Electric Motion Systems reporting unit is greater than its carrying amount. Based on the results of this test the Company determined that the goodwill related to the said reporting unit was not impaired. | |||||||||
In 2011, the fair value of the OEM of Electric Motion Systems reporting unit exceeded its carrying value by approximately $100, or 1.1% and thus was at risk of failing step one of the goodwill impairment test, and was therefore at risk of a future impairment in the event of unfavorable changes in the forecasted cash flows or the key assumptions used in the analysis, including the weighted average cost of capital (discount rate) and growth rates utilized in the discounted cash flow analysis. | |||||||||
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 2011 annual test were three years of projected net cash flows (in accordance with the Company's budget), a discount rate of 18% and a long-term growth rate of 1.95%. 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, 2013 | |||||||||
OTHER BALANCE SHEETS SUPPLEMENTAL [Abstract] | ' | ||||||||
OTHER BALANCE SHEETS SUPPLEMENTAL | ' | ||||||||
NOTE 10 - OTHER BALANCE SHEETS SUPPLEMENTALS | |||||||||
a. | Other accounts receivable and prepaid expenses: | ||||||||
December 31, | |||||||||
2013 (*) | 2012 | ||||||||
Deferred tax asset | $ | 1,589 | $ | 2,122 | |||||
Government authorities | 1,154 | 1,424 | |||||||
Prepaid expenses | 498 | 831 | |||||||
Income receivables and grants | - | 33 | |||||||
Derivatives | - | 27 | |||||||
Amounts due from related parties | 5 | 54 | |||||||
Other | 68 | 96 | |||||||
$ | 3,314 | $ | 4,587 | ||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
b. | Other account payable and accrued expenses: | ||||||||
December 31, | |||||||||
2013(*) | 2012 | ||||||||
Employees and payroll accruals | $ | 3,077 | $ | 3,358 | |||||
Accrued expenses (**) | 732 | 1,757 | |||||||
Government authorities | 483 | 673 | |||||||
Advances from customers | 840 | 731 | |||||||
Warranty provision | 229 | 276 | |||||||
Accrued royalties | 336 | 268 | |||||||
Deferred tax liability | 40 | 126 | |||||||
Amounts due to related parties | - | 112 | |||||||
Other accrued expenses | 78 | 106 | |||||||
$ | 5,815 | $ | 7,407 | ||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
(**) Includes $750 royalties payable to a supplier in the MRO business, at December 31, 2013, following a reconciliation of an audit. |
TRANSACTIONS_WITH_RELATED_PART
TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
TRANSACTIONS WITH RELATED PARTIES [Abstract] | ' | ||||||||||||
TRANSACTIONS WITH RELATED PARTIES | ' | ||||||||||||
NOTE 11 - | TRANSACTIONS WITH RELATED PARTIES | ||||||||||||
a. | Transactions with TAT Industries: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Management fees (1) | $ | 29 | $ | 50 | $ | 50 | |||||||
Lease expenses (2) | $ | 424 | $ | 416 | $ | 408 | |||||||
-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. | |||||||||||||
b. | Balances with related parties: | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
TAT Industries - current asset (1) | $ | - | $ | 54 | |||||||||
FAVS - current asset | 5 | - | |||||||||||
Total asset | $ | 5 | $ | 54 | |||||||||
Bental Non-controlling interest - current liability | $ | - | $ | (60 | ) | ||||||||
FAVS - current liability | - | (29 | ) | ||||||||||
Isal Amlat Investment (1993) Ltd. | - | (23 | ) | ||||||||||
Total liability | $ | - | $ | (112 | ) | ||||||||
-1 | Results from certain expenses incurred by TAT Industries and borne by the Company. The debt bears interest at the rate equal to the interest rate agreed between TAT Industries and its lending banks. | ||||||||||||
c. | Transactions with related parties: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Management fees to shareholders (see item e below) | $ | - | $ | 359 | $ | 400 | |||||||
d. | Bental is 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, 2012 and 2011 was $432, $505 and $526, respectively. | ||||||||||||
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 and 2011, was $359 and $397, respectively. | |||||||||||||
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, 2013 | ||||||||||||||
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: | |||||||||||||
Interest Rate | ||||||||||||||
Currency | 31-Dec-13 | Years of | December 31, | |||||||||||
of loan | Maturity | 2013 | ||||||||||||
Current maturities of long-term loan (2) | $ | 2.50%-3.50 | % | 2009-2014 | $ | 884 | ||||||||
Interest Rate | ||||||||||||||
Currency | 31-Dec-12 | Years of | December 31, | |||||||||||
of loan | Maturity | 2012 | ||||||||||||
Long-term loan (1) | NIS | 5.25 | % | 2012-2014 | $ | 523 | ||||||||
Long-term loan (2) | $ | 2.50%-3.50 | % | 2009-2014 | 2,477 | |||||||||
Long-term loan (3) | NIS | Prime + 1 | % | 2013 | 670 | |||||||||
3,670 | ||||||||||||||
Less - current maturities (1) | (290 | ) | ||||||||||||
Less - current maturities (2) | (1,594 | ) | ||||||||||||
Less - current maturities (3) | (670 | ) | ||||||||||||
$ | 1,116 | |||||||||||||
-1 | The original loan was received by Bental in 2009 from an Israeli bank in the amount of $1,400 to be repaid in quarterly installments over a five year period, commencing 2010. On June 30, 2010, the remaining balance of the original loan, in the amount of $1,185, was repaid and a new loan in the same amount was taken. This new loan bears annual fixed interest of 5.25% and will be repaid until August 2014 in quarterly installments. The loan balance as of December 31, 2013 and 2012 was $248 (presented as part of the liabilities held for sale) and $523, respectively (with regard to covenants related to such loan see note 14(f)(3)). | |||||||||||||
-2 | 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)). | |||||||||||||
-3 | On September 7, 2011, Bental received a loan from an Israeli bank in a total amount of NIS2.5 million (approximately $700), to be repaid in full 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 Bental's discretion. On September 8, 2013 Bental made an on time repayment of the loan in the total amount of NIS2.5 million (approximately $693) (see also note 11(h)). | |||||||||||||
Group provided certain guarantees and covenants to secure its long-term loans, see note 14(e) and 14(f). | ||||||||||||||
b. | As of December 31, 2013 TAT's short-term bank credit balance amounted to $26. | |||||||||||||
c. | Line of credit | |||||||||||||
On November 15, 2011, Limco-Piedmont renewed its line of credit with a U.S bank for an additional 21 month period ending on August 31, 2013 (not renewed further in 2013), for borrowings of up to $10,000 under certain conditions. $5,000 of this amount will stand for Limco and $5,000 will stand for Piedmont. The line of credit bears interest of Libor + 1.5%, and its utilization is subject to compliance with financial covenants agreed between the parties. As of December 31, 2012, approximately $688 of the total line of credit was utilized by Limco and Piedmont. In addition, as of December 31, 2012 Limco-Piedmont met all financial covenants related to such line of credit (see also note 14(f)(1)). |
LONGTERM_EMPLOYEERELATED_OBLIG
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS [Abstract] | ' | ||||
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | ' | ||||
NOTE 13 - | LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | ||||
Severance pay: | |||||
TAT's and Bental's (the "Israeli companies") 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 companies record 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, $495 and $425 for the years ended December 31, 2013, 2012 and 2011, 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 $253, $209 and $188 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
The Group (excluding discontinued operation) expects to contribute approximately $820 in 2014 to the pension funds and insurance companies in respect of their severance and pension pay obligations. | |||||
The Israeli companies are 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 (based upon length of service and the latest monthly salary - one month's salary for each year employed) 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. In the years ended | |||||
In accordance with the current employment agreements with certain employees, the Israeli companies 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 companies are 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 Companies balance sheets, as the amounts funded are not under the control and management of the Israeli companies 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 $226, $26 and $23 for the years ended December 31, 2013, 2012 and 2011. | |||||
TAT expect to pay $1,868 in future benefits to their employees during 2014 to 2022 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 companies before their normal retirement age. | |||||
Year | Amount | ||||
2014 | $ | 282 | |||
2015 | 189 | ||||
2016 | 261 | ||||
2017 | 198 | ||||
2018 | 248 | ||||
Thereafter (through 2023) | 800 | ||||
$ | 1,978 |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
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 $781, $670 and $579 for the years ended December 31, 2013, 2012 and 2011, 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 2013, of ranging between 9% to 17% of sales of products developed by the third parties. Royalty expenses were $177 and $202 for the years ended December 31, 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 between 1.5% to 10% of sales of additional products exclusively manufactured by the third party. Royalty expenses were $400, $232 and $201 for the years ended December 31, 2013, 2012 and 2011, respectively. The royalties were recorded as part of the cost of revenues. | ||||
-3 | Bental is committed to pay royalties to the Israeli government on proceeds from the sales of products, in the research and development of which the Israeli government participated by way of grants. Under the terms of Bental's funding from the Office of the Chief Scientist, royalty payments are computed on the portion of sales from such products at a rate of 2% and 3.5%. The commitment to the Chief Scientist is limited to the amount of the received participation (U.S. dollar linked), with the addition of an annual interest rate based on Libor. As of December 31, 2012 the total amount of royalty bearing grants due by Bental to the Chief Scientist was approximately $86. | ||||
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. The monthly rental expense ranges from approximately $3.5 to $8. Certain leases contain renewal options as defined in the agreements. Lease expense (excluding related parties) totaled $215, $233 and $239 for the years ended December 31, 2013, 2012, and 2011 respectively. | |||||
TAT leases its factory from TAT Industries until 2020; (related party rent expense of $424 for the year ended December 31, 2013, see also note 11(a)). | |||||
As of December 31, 2013, future minimum rental payments under non-cancelable operating leases are as follows: | |||||
Year | Amount | ||||
2014 | $ | 636 | |||
2015 | 646 | ||||
2016 | 623 | ||||
2017 | 534 | ||||
2018 | 468 | ||||
2019 and thereafter | 964 | ||||
Total | $ | 3,871 | |||
d. | Legal claims contingencies | ||||
-1 | For details about the settlement of the commercial dispute between Piedmont and FAvS See note 3(a). | ||||
-2 | On November 29, 2011, a Factoring company ("the plaintiff"), filed a claim with the magistrates court in Tel-Aviv against the Company, Bental and ten others ("the respondents"), jointly and severally, for the amount of NIS6,151 thousand (approximately $1,620). The plaintiff's case against the Company and Bental is based on invoices that were presented to the plaintiff by supplier of the Company and Bental ("the supplier"), by virtue of assignment of rights, which were originally issued to the Company and Bental by the supplier for certain alleged services. On February 5, 2012, the Company and Bental 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 and Bental and their legal advisor are of the opinion that their exposure due to the claim filed is not probable and thus no provision was recorded in regard of that claim of December 31, 2013. | ||||
e. | Guarantees: | ||||
-1 | In order to secure TAT's liability to the Israeli customs, the Company provided a bank guarantee in the amount of $241. The guarantee is linked to the consumer price index and is valid until December 2014. | ||||
-2 | See also note 14(f) for restricted cash deposit against certain loans and guarantees. | ||||
-3 | See also note 11(g) for details of a guarantee provided by Piedmont in respect of FAvS' debt. As of December 31, 2012, the amount of this guarantee was $4,600 (such guarantee was released on March 18, 2013, see also note 3(a)). | ||||
f. | Covenants and liens on assets: | ||||
1) | In connection with its line of credit, Limco-Piedmont was obligated to meet minimal borrowing base and certain financial covenants. The utilization of the credit line was subject to compliance with the following financial covenants as agreed with the lending U.S bank: | ||||
(i) | Tangible net worth of not less than $51,500 (on August 20, 2012 concluded with the U.S bank to set this covenant at $49,500). As of December 31, 2012 Limco-Piedmont's tangible net worth was $51,533; | ||||
(ii) | Total liabilities to tangible net worth ratio of less than 1.0. As of December 31, 2012 Limco-Piedmont's leverage was 0.18; and | ||||
(iii) | Net financial assets of not less than $10,000. As of December 31, 2012 Limco-Piedmont's net financial assets amount was $20,667. | ||||
Accordingly, as of December 31, 2012 Limco-Piedmont met all financial covenants (such credit line not renewed further in 2013 - see also note 12(c)). | |||||
2) | In order to secure bank loans in the remaining 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)(2)). In addition, TAT is obligated to meet certain covenants, all of which have been met. | ||||
3) | In order to secure bank loans in the amount of $1,185 (remaining balance of $248 as of December 31, 2013) , Bental granted floating liens on all of its property and assets, fixed lien on its unpaid share capital and goodwill and first priority liens on its property, plant and equipment, checks and other trading instruments. In addition, Bental is obligated to certain covenants including: | ||||
(i) | Bental's debt to EBITDA ratio will be less than 3.0. As of December 31, 2013 and 2012 the ratio was (7.2) and (2.4), respectively; and | ||||
(ii) | Bental's tangible shareholders' equity will not be less than NIS 20 million (approximately $5,760) and not less than 30% of its total assets. As of December 31, 2013 and 2012 Bental's tangible shareholders' equity was NIS 34.0 million (approximately $9,789) and NIS 34.8 million (approximately $9,335), representing 74% and 70%, respectively of its total assets. | ||||
Accordingly, as of December 31, 2013, Bental met all financial covenants as agreed. | |||||
4) | A lien on Bental Approved Enterprise has been registered in favor of the State of Israel (see note 17(b) below). | ||||
5) | In order to secure the guarantee Piedmont provided to FAvS as mentioned on note 11(g), Piedmont granted a lien on a bank deposit in the amount of $2,300, which is recorded as restricted deposit in the balance sheet as of December 31, 2012. Such guarantee and restricted deposit were released on March 18, 2013(see also note 3(a)). |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance outstanding at beginning of year | 8,798,570 | 8,815,003 | 8,815,003 | ||||||||||
Purchase of treasury shares | - | (16,433 | ) | - | |||||||||
Exercise of options | 6,666 | - | - | ||||||||||
Balance outstanding at end of year | 8,805,236 | 8,798,570 | 8,815,003 | ||||||||||
c. | Stock option plans: | ||||||||||||
-1 | On August 14, 2008, TAT's Board of Directors approved the grant of 65,477 unregistered options in three Series A, B and C to its Chief Executive Officer. Each option of Series A, B and C vests over two, three and four years commencing May 19, 2008, respectively, and expires three years after vesting. Each Series A, B and C option can be exercised into one Ordinary share NIS 0.9 par value, for an exercise price of $6.15 (adjusted for dividend distribution and other equity changes as defined in the option grant terms). Alternatively, the Chief Executive Officer can opt to receive TAT's Ordinary shares based on the value of the appreciation over the exercise price. | ||||||||||||
The weighted average fair value of stock options granted at the grant date, is $2.69, $2.9 and $3.15, for Series A, B and C, respectively, based on Black-Scholes option-pricing model. | |||||||||||||
Following the resignation of Mr. Fledel, the Company's Chief Executive Officer on December 7, 2011 the 21,825 unvested stock options forfeited and the remaining 43,652 stock options expired on March 6, 2012. As result, the Company recorded for the year ended December 31, 2011 an income from the expiration of such options, in the total amount of $37. | |||||||||||||
-2 | 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 of $6.5 per share. 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 optionee is no longer employed by the Company, in which case the options will be considered forfeited within 30 days. 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. | ||||||||||||
The fair value of the Company's stock options granted under the 2012 plan for the year ended December 31, 2012 was estimated using the following assumptions: | |||||||||||||
2012 | |||||||||||||
Expected stock price volatility | 41.57% - 43.4% | ||||||||||||
Expected option life (in years) | 2.23 - 3.23 | ||||||||||||
Risk free interest rate | 0.23% - 0.32% | ||||||||||||
Dividend yield | 9.80% | ||||||||||||
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. | |||||||||||||
-3 | The following table is a summary of the activity of TAT's stock Option plan: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | |||||||||||||
Number | Weighted | ||||||||||||
of | average | ||||||||||||
options | exercise | ||||||||||||
price | |||||||||||||
Outstanding at the beginning of the year | 285,000 | $ | 6.5 | ||||||||||
Granted | - | - | |||||||||||
Expired | - | - | |||||||||||
Forfeited | (133,334 | ) | 6.5 | ||||||||||
Exercised | (6,666 | ) | 6.5 | ||||||||||
Outstanding at the end of the year | 145,000 | $ | 6.5 | ||||||||||
Exercisable options | 24,167 | $ | 6.5 | ||||||||||
The weighted-average grant-date fair value of options granted in 2012 was $0.19. The aggregate intrinsic value for the options outstanding as of December 31, 2013, 2012 and 2011 was $212, $0 and $0, respectively. | |||||||||||||
Compensation expenses (income) attributable to outstanding stock options were $3, $8 and $(37) for the years ended December 31, 2013, 2012 and 2011, respectively. Compensation expense is recognized in the statement of income as an operating expense based on the fair value of the option over the requisite service period. As of December 31, 2013 and 2012 total unrecognized compensation cost related to nonvested Share based compensation arrangements granted under the Company's 2012 plan was $17.8 and $46.9, respectively. That cost is expected to be recognized over a weighted-average period of 1.04 years. | |||||||||||||
e. | 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. | |||||||||||||
f. | Dividends | ||||||||||||
On April 22, 2012, TAT's Board declared a cash dividend in the total amount of $2.5 million (approximately NIS 9.4 million), or $0.283 per share (approximately NIS 1.065 per share), for all of the shareholders of TAT. The dividend was paid on May 17, 2012 to shareholders of record on May 3, 2012. | |||||||||||||
g. | 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. |
EARNINGS_LOSS_PER_SHARE_EPS
EARNINGS (LOSS) PER SHARE ("EPS") | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator for EPS: | |||||||||||||
Net income (loss) from continuing operations | $ | 5,251 | $ | (567 | ) | $ | (482 | ) | |||||
Net loss from discontinued operations, net of tax | (2,429 | ) | (1,147 | ) | (548 | ) | |||||||
Denominator for EPS: | |||||||||||||
Weighted average shares outstanding - basic | 8,799,237 | 8,808,075 | 8,815,003 | ||||||||||
Dilutive shares | 9,683 | - | - | ||||||||||
Weighted average shares outstanding - diluted (*) | 8,808,920 | 8,808,075 | 8,815,003 | ||||||||||
EPS attributable to controlling interest: | |||||||||||||
Basic and diluted | |||||||||||||
Net income (loss) from continuing operations | $ | 0.6 | $ | (0.06 | ) | $ | (0.05 | ) | |||||
Loss from discontinued operations | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.07 | ) | ||||
(*) 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, 2013 | |||||||||||||
TAXES ON INCOME [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
NOTE 17 - | TAXES ON INCOME | ||||||||||||
a. | Measurement of taxable income under the Income Tax (Inflationary Adjustments) Law, 1985 (the "Inflationary Adjustments Law") | ||||||||||||
In accordance with the Inflationary Adjustments Law, the results for tax purposes have been measured through 2007, and reflected in real terms in accordance with the changes in the Israeli Consumer Price Index (CPI). Under the Inflationary Adjustments Law (Amendment No. 20, 2008, ("the amendment"), that was enacted in the Israeli Parliament on February 26, 2008, the provisions of the Inflationary adjustments law will no longer apply to the Company and Bental in 2008 and thereafter. The amendment specifies transitional provisions regarding the discontinuance of the provisions of the Inflationary adjustments law that have applied to the Company and Bental through the end of 2007. | |||||||||||||
b. | Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): | ||||||||||||
Some facilities of the Israeli companies 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 companies 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 and Bental 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, 2013, the Company had accumulated a total amount of approximately $9,700 of exempt income (out of which $7,750 relates to Bental which determined as discontinued operation as of December 31, 2013). | |||||||||||||
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 and Bental 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). | |||||||||||||
Bental is located in area in Israel that is designated as Development Zone A and as such entitled to reduce tax rates of 10% during 2011-2012, 7% in 2013, and 9% in 2014 and thereafter. | |||||||||||||
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. | |||||||||||||
c. | Corporate tax rate in Israel | ||||||||||||
The statutory rate of the Israeli corporate tax is as follows: 2013 and 2012 - 25%, 2011- 24%. In July 2009, the "Knesset" (Israeli Parliament) passed the Law for Economic Efficiency (Amended Legislation for Implementing the Economic Plan for 2009 and 2010), 2009, which prescribed, among others, an additional gradual reduction in the rates of the Israeli corporate tax and real capital gains tax starting 2011. | |||||||||||||
On December 6, 2011, the Knesset (Israel's Parliament) passed a law for changing the tax burden (Legislative Amendments), which cancels, among others, the gradual reduction in the corporate tax rates in Israel. In addition, the corporate tax in Israel was increased to 25% from 2012 and thereafter. | |||||||||||||
On July 30, 2013, the Israeli Parliament (the Knesset) approved the second and third readings of the Economic Plan for 2013-2014 ("Amended Budget Law") which consists, among others, of fiscal changes whose main aim is to enhance long-term collection of taxes. These changes include, among others, raising the Israeli corporate tax rate from 25% to 26.5%. | |||||||||||||
The effect of the abovementioned change on the financial statements is immaterial. | |||||||||||||
d. | U.S. subsidiaries | ||||||||||||
U.S. subsidiaries are taxed based on federal and state tax laws. The statutory tax rate for 2013, 2012, and 2011 was 38%. | |||||||||||||
e. | Tax assessments | ||||||||||||
TAT's income tax assessments are considered final through 2011. In 2013, a tax assessment for the years 2008 through 2011 was finalized by the Israeli tax authorities. | |||||||||||||
Bental income tax assessments are considered final through 2009. | |||||||||||||
Limco-piedmont income tax assessments are considered final through 2009. | |||||||||||||
TAT-GAL which was incorporated in 2008 has not received final tax assessment yet. | |||||||||||||
f. | 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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income (loss) before taxes on income (tax benefit) as reported in the statements of income | $ | 5,267 | $ | 5,279 | $ | (1,148 | ) | ||||||
Statutory tax rate in Israel | 25 | % | 25 | % | 24 | % | |||||||
Theoretical taxes on income (tax benefit) | $ | 1,317 | $ | 1,320 | $ | (276 | ) | ||||||
Increase (decrease) in taxes on income resulting from: | |||||||||||||
Tax adjustment for foreign subsidiaries subject to a different tax rate | 453 | 434 | (73 | ) | |||||||||
Reduced tax rate on income derived from "Preferred Enterprises" plans | (255 | ) | (143 | ) | 103 | ||||||||
Change in enacted tax rates | 34 | - | - | ||||||||||
Exempt income | - | (4 | ) | (10 | ) | ||||||||
Valuation allowance | 294 | 499 | - | ||||||||||
Tax in respect of prior years | (342 | ) | (83 | ) | (24 | ) | |||||||
Permanent differences | (460 | ) | 67 | (55 | ) | ||||||||
Taxes on income (tax benefit) as reported in the statements of income (loss) | $ | 1,041 | $ | 2,090 | $ | (335 | ) | ||||||
g. | Income (loss) before taxes on income (tax benefit) is comprised as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic (Israel) | $ | 1,942 | $ | 2,046 | $ | 1,547 | |||||||
Foreign (United States) | 3,325 | 3,233 | (2,695 | ) | |||||||||
$ | 5,267 | $ | 5,279 | $ | (1,148 | ) | |||||||
h. | Taxes on income (tax benefit) included in the statements of income: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Domestic (Israel) | $ | 160 | $ | 282 | $ | 373 | |||||||
Foreign (United States) | 334 | 295 | 213 | ||||||||||
494 | 577 | 586 | |||||||||||
Deferred: | |||||||||||||
Domestic (Israel) | 15 | 115 | 245 | ||||||||||
Foreign (United States) | 874 | 1,481 | (1,142 | ) | |||||||||
889 | 1,596 | (897 | ) | ||||||||||
Previous years: | |||||||||||||
Domestic (Israel) | (209 | ) | (45 | ) | (71 | ) | |||||||
Foreign (United States) | (133 | ) | (38 | ) | 47 | ||||||||
(342 | ) | (83 | ) | (24 | ) | ||||||||
$ | 1,041 | $ | 2,090 | $ | (335 | ) | |||||||
i. | 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, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Allowance for doubtful accounts | $ | 47 | $ | 133 | |||||||||
Unrealized gains | 146 | 131 | |||||||||||
Provisions for employee benefits | 277 | 270 | |||||||||||
Inventory | 920 | 1,171 | |||||||||||
Other temporary differences | 199 | 417 | |||||||||||
Deferred tax assets - short-term- other accounts receivables | $ | 1,589 | $ | 2,122 | |||||||||
Goodwill and intangible assets | $ | 671 | $ | 884 | |||||||||
Property, plant and equipment | 18 | 707 | |||||||||||
Provisions for employee benefits and other temporary differences | 38 | 64 | |||||||||||
Tax credits carryforward | 447 | 274 | |||||||||||
Capital and state tax losses carryforward | 3,306 | 1,823 | |||||||||||
Net operating losses carryforward | 419 | 606 | |||||||||||
Other | 23 | - | |||||||||||
Deferred tax assets, before valuation allowance - Long-term | 4,922 | 4,358 | |||||||||||
Valuation allowance | (3,306 | ) | (1,823 | ) | |||||||||
Deferred tax assets, net - long-term | $ | 1,616 | $ | 2,535 | |||||||||
Other temporary differences deferred tax liabilities - short-term- other accounts receivable | $ | (40 | ) | $ | (126 | ) | |||||||
Property, plant and equipment and intangible assets | (1,003 | ) | (1,457 | ) | |||||||||
Other | (55 | ) | (33 | ) | |||||||||
Deferred tax Liabilities - Long-term | $ | (1,058 | ) | $ | (1,490 | ) | |||||||
As of December 31, 2013, TAT did not provide a valuation allowance in respect of deferred tax assets, 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 certain 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, 2011 | $ | 200 | |||||||||||
Addition charged to expenses | (16 | ) | |||||||||||
Balance, December 31, 2011 | 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 | |||||||||||
TAT does not intend to distribute earnings of a foreign subsidiary aggregating up to approximately $11,400 (tax earnings and profits) as of December 31, 2013, 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 $2,850 would be incurred as of December 31, 2013. | |||||||||||||
TAT does not intend to distribute tax-exempt earnings deriving from Approved Enterprise aggregating approximately $9,700 as of December 31, 2013, 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 $2,425 would be incurred as of December 31, 2013 (See also note 17(b)). | |||||||||||||
j. | A reconciliation of the beginning and ending amount of unrecognized provision is as follows: | ||||||||||||
Amount | |||||||||||||
Balance at January 1, 2011 | $ | 84 | |||||||||||
Exchange rate differences | 2 | ||||||||||||
Balance at December 31, 2011 | 86 | ||||||||||||
Exchange rate differences | (2 | ) | |||||||||||
Balance at December 31, 2012 | 84 | ||||||||||||
Exchange rate differences | 6 | ||||||||||||
Utilization upon assessment | (90 | ) | |||||||||||
Balance at December 31, 2013 | $ | - | |||||||||||
Unrecognized tax benefits, mainly of a long-term nature, at December 31, 2013, 2012 and 2011 amounted to $(84), $(2) and $2, respectively. All of the above amounts of unrecognized tax benefits would affect the effective tax rate if recognized. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||||||||||||
NOTE 18 - | SEGMENT INFORMATION | ||||||||||||||||||||||||||||||||
a. | Segment Activities Disclosure: | ||||||||||||||||||||||||||||||||
TAT operates under four segments: (i) Original Equipment Manufacturing or "OEM" of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or "MRO" services for Aviation Components and (iv) OEM of Electric Motion Systems. | |||||||||||||||||||||||||||||||||
- | 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 includes 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 includes 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. | ||||||||||||||||||||||||||||||||
- | OEM of Electric Motion Systems primarily includes the design, development, manufacture and sale of a broad range of electrical motor applications for airborne and ground systems. | ||||||||||||||||||||||||||||||||
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 (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, 2013 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Elimination of inter-company sales | Consolidated | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Sale of products and services | $ | 27,326 | $ | 29,796 | $ | 22,429 | $ | - | $ | - | $ | 79,551 | |||||||||||||||||||||
Intersegment revenues | 3,812 | 111 | - | - | (3,923 | ) | - | ||||||||||||||||||||||||||
Total revenues | 31,138 | 29,907 | 22,429 | - | (3,923 | ) | 79,551 | ||||||||||||||||||||||||||
Cost of revenues | 24,141 | 21,600 | 19,224 | - | (4,086 | ) | 60,879 | ||||||||||||||||||||||||||
Gross profit | 6,997 | 8,307 | 3,205 | - | 163 | 18,672 | |||||||||||||||||||||||||||
Research and development | 415 | 298 | - | - | - | 713 | |||||||||||||||||||||||||||
Selling and marketing | 1,520 | 1,145 | 485 | - | - | 3,150 | |||||||||||||||||||||||||||
General and administrative | 3,158 | 3,093 | 3,261 | - | - | 9,512 | |||||||||||||||||||||||||||
Other expense (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 | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Elimination of inter-company sales | Adjustment to the consolidated financial statements | Consolidated | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Sale of products and services | $ | 27,944 | $ | 10,008 | $ | 27,529 | $ | 22,442 | $ | - | $ | - | $ | (10,008 | ) | $ | 77,915 | ||||||||||||||||
Intersegment revenues | 3,088 | - | 180 | - | - | (3,268 | ) | - | - | ||||||||||||||||||||||||
Total revenues | 31,032 | 10,008 | 27,709 | 22,442 | - | (3,268 | ) | (10,008 | ) | 77,915 | |||||||||||||||||||||||
Cost of revenues | 23,105 | 8,043 | 19,671 | 19,044 | - | (3,281 | ) | (8,043 | ) | 58,539 | |||||||||||||||||||||||
Gross profit | 7,927 | 1,965 | 8,038 | 3,398 | - | 13 | (1,965 | ) | 19,376 | ||||||||||||||||||||||||
Research and development | 581 | 157 | 414 | - | - | - | (157 | ) | 995 | ||||||||||||||||||||||||
Selling and marketing | 1,476 | 527 | 1,049 | 374 | - | - | (527 | ) | 2,899 | ||||||||||||||||||||||||
General and administrative | 3,530 | 1,377 | 3,270 | 3,310 | - | - | (1,377 | ) | 10,110 | ||||||||||||||||||||||||
Other expense (income) | (13 | ) | 21 | - | - | - | - | (21 | ) | (13 | ) | ||||||||||||||||||||||
Operating income (loss) | 2,353 | (117 | ) | 3,305 | (286 | ) | - | 13 | 117 | 5,385 | |||||||||||||||||||||||
Financial expense, net | - | - | - | - | (106 | ) | - | - | (106 | ) | |||||||||||||||||||||||
Income before taxes on income | $ | 5,279 | |||||||||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Elimination of inter-company sales | Adjustment to the consolidated financial statements | Consolidated | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Sale of products and services | $ | 25,993 | $ | 11,658 | $ | 27,600 | $ | 20,146 | $ | - | $ | - | $ | (11,658 | ) | $ | 73,739 | ||||||||||||||||
Intersegment revenues | 4,027 | - | 3 | - | - | (4,030 | ) | - | - | ||||||||||||||||||||||||
Total revenues | 30,020 | 11,658 | 27,603 | 20,146 | - | (4,030 | ) | (11,658 | ) | 73,739 | |||||||||||||||||||||||
Cost of revenues | 22,662 | 9,388 | 20,173 | 17,882 | - | (4,009 | ) | (9,388 | ) | 56,708 | |||||||||||||||||||||||
Write down of inventory and impairment charges of long lived assets | - | - | - | 5,465 | - | - | - | 5,465 | |||||||||||||||||||||||||
Gross profit | 7,358 | 2,270 | 7,430 | (3,201 | ) | - | (21 | ) | (2,270 | ) | 11,566 | ||||||||||||||||||||||
Research and development | 455 | 331 | - | - | - | - | (331 | ) | 455 | ||||||||||||||||||||||||
Selling and marketing | 1,202 | 619 | 1,026 | 591 | - | - | (619 | ) | 2,819 | ||||||||||||||||||||||||
General and administrative | 3,789 | 1,499 | 3,035 | 2,626 | - | - | (1,499 | ) | 9,450 | ||||||||||||||||||||||||
Other expense (income) | (190 | ) | 21 | - | - | - | - | (21 | ) | (190 | ) | ||||||||||||||||||||||
Operating income (loss) | 2,102 | (200 | ) | 3,369 | (6,418 | ) | - | (21 | ) | 200 | (968 | ) | |||||||||||||||||||||
Financial expense, net | - | - | - | - | (420 | ) | - | - | (420 | ) | |||||||||||||||||||||||
Income before taxes on income | $ | (1,388 | ) | ||||||||||||||||||||||||||||||
c. | The following financial information identifies the assets to segment: | ||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Consolidated | |||||||||||||||||||||||||||||
Assets | $ | 45,518 | $ | 28,806 | $ | 18,137 | $ | 16,419 | $ | 108,880 | |||||||||||||||||||||||
Depreciation and amortization (*) | 991 | 603 | 265 | - | 1,859 | ||||||||||||||||||||||||||||
Expenditure for segment assets (*) | 992 | 664 | 584 | - | 2,240 | ||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Consolidated | ||||||||||||||||||||||||||||
Assets | $ | 34,315 | $ | 12,707 | $ | 27,093 | $ | 18,473 | $ | 16,354 | $ | 108,942 | |||||||||||||||||||||
Depreciation and amortization (*) | 974 | - | 735 | 197 | - | 1,906 | |||||||||||||||||||||||||||
Expenditure for segment assets (*) | 1,047 | - | 756 | 344 | - | 2,147 | |||||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Consolidated | ||||||||||||||||||||||||||||
Assets | $ | 34,055 | $ | 13,941 | $ | 27,464 | $ | 21,068 | $ | 19,783 | $ | 116,311 | |||||||||||||||||||||
Depreciation and amortization (*) | 1,139 | - | 758 | 721 | - | 2,618 | |||||||||||||||||||||||||||
Expenditure for segment assets (*) | 924 | - | 638 | 1,391 | - | 2,953 | |||||||||||||||||||||||||||
Goodwill | - | 1,042 | - | - | - | 1,042 | |||||||||||||||||||||||||||
(*) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. |
ENTITYWIDE_DISCLOSURE
ENTITY-WIDE DISCLOSURE | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
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, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Total revenues (**) | Long-lived assets (*) | Total revenues (**) | Long-lived assets | Total revenues (**) | Long-lived assets | ||||||||||||||||||||
Sale of products | |||||||||||||||||||||||||
Israel | $ | 6,248 | $ | 5,748 | $ | 9,147 | $ | 8,417 | $ | 8,218 | $ | 8,528 | |||||||||||||
United states | 18,016 | - | 16,475 | - | 21,495 | - | |||||||||||||||||||
France | 5,482 | - | 4,604 | - | 3,264 | - | |||||||||||||||||||
Rest of Europe | 2,292 | - | 1,966 | - | 2,507 | - | |||||||||||||||||||
Other | 2,326 | - | 4,071 | - | 1,353 | - | |||||||||||||||||||
$ | 34,364 | $ | 5,748 | $ | 36,263 | $ | 8,417 | $ | 36,837 | $ | 8,528 | ||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Total revenues | Long-lived assets | Total revenues | Long-lived assets | Total revenues | Long-lived assets | ||||||||||||||||||||
Services | |||||||||||||||||||||||||
Israel | $ | 612 | $ | - | $ | 468 | $ | - | $ | 384 | $ | - | |||||||||||||
United states | 27,639 | 5,399 | 25,648 | 4,493 | 25,416 | 4,325 | |||||||||||||||||||
Netherland | 1,553 | - | 3,303 | - | 4,378 | - | |||||||||||||||||||
Rest of Europe | 7,658 | - | 4,624 | - | 3,875 | - | |||||||||||||||||||
Other | 7,725 | - | 7,609 | - | 2,849 | - | |||||||||||||||||||
$ | 45,187 | $ | 5,399 | $ | 41,652 | $ | 4,493 | $ | 36,902 | $ | 4,325 | ||||||||||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||||||||||||||||||
(**) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
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, 2013 | |||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ||||||||||||
SELECTED STATEMENTS OF INCOME DATA | ' | ||||||||||||
NOTE 20 - SELECTED STATEMENTS OF INCOME DATA | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Financial income (expenses), net (*): | |||||||||||||
Financial income: | |||||||||||||
Foreign currency gains | $ | 661 | $ | 1,294 | $ | 1,108 | |||||||
Derivatives | 27 | 399 | 352 | ||||||||||
Tax refund | 95 | 53 | 71 | ||||||||||
Interest on cash equivalents, short-term bank deposits and others | 114 | 242 | 172 | ||||||||||
897 | 1,988 | 1,703 | |||||||||||
Financial expenses (*): | |||||||||||||
Bank charges | (77 | ) | (71 | ) | (74 | ) | |||||||
Interest on short-term loans | (18 | ) | (98 | ) | (98 | ) | |||||||
Interest on long-term loans | (66 | ) | (120 | ) | (148 | ) | |||||||
Foreign currency losses | (786 | ) | (1,376 | ) | (1,149 | ) | |||||||
Derivatives | - | (321 | ) | (642 | ) | ||||||||
Others | - | (108 | ) | (12 | ) | ||||||||
(947 | ) | (2,094 | ) | (2,123 | ) | ||||||||
$ | (50 | ) | $ | (106 | ) | $ | (420 | ) | |||||
(*) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. |
SUPPLEMENTAL_CONSOLIDATED_BALA
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION [Abstract] | ' | ||||||||
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | ' | ||||||||
NOTE 21 - SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | |||||||||
Warranty provision | Allowance for Doubtful Accounts | ||||||||
Balance, as of January 1, 2011 | 341 | 2,419 | |||||||
Additions | 169 | 31 | |||||||
Utilization | (222 | ) | - | ||||||
Write-offs, net of recoveries | - | (2,260 | ) | ||||||
Balance, as of December 31, 2011 | 288 | 190 | |||||||
Additions | 196 | 258 | |||||||
Utilization | (208 | ) | - | ||||||
Write-offs, net of recoveries | - | (72 | ) | ||||||
Balance, as of December 31, 2012 | $ | 276 | $ | 376 | |||||
Additions | 186 | 17 | |||||||
Utilization | (190 | ) | - | ||||||
Write-offs, net of recoveries | - | (270 | ) | ||||||
Less: Held for sale | (43 | ) | - | ||||||
Balance, as of December 31, 2013 | $ | 229 | $ | 123 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUBSEQUENT EVENTS [Abstract] | ' | ||
SUBSEQUENT EVENTS | ' | ||
NOTE 22 - SUBSEQUENT EVENTS | |||
a. | On March 19, 2014, subsequent to the balance sheet date, TAT's board of directors declared a cash dividend in the total amount of $2,000 (approximately NIS6.97 million), or $0.23 per share (approximately NIS0.79 per share), for all of the shareholders of TAT. The dividend will be paid to shareholders of record on April 21, 2014. TAT will pay the dividend on May 7, 2014. | ||
b. | On March 19, 2014, pursuant to the 2012 stock option 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. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
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 goodwill, intangible assets and 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. | |||
Most of Bental's revenues are generated in New Israeli Shekel ("NIS") and a substantial portion of Bental's costs are incurred in NIS. In addition, Bental's financing has been obtained in NIS. Accordingly, the NIS is the currency of the primary economic environment in which Bental operates and accordingly its functional and reporting currency is the NIS. For Bental whose functional currency has been determined to be the NIS, assets and liabilities are translated at year-end exchange rates, and statement of operations items are translated at average exchange rates prevailing during the year. Resulting translation differences are recorded as a separate component of accumulated other comprehensive income (loss) in equity. Although Bental has been accounted for as a discontinued operation, the currency impact of its business is not removed from other comprehensive income (loss). | |||
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 0.60%. | |||
Restricted deposits | ' | ||
f. | Restricted deposits | ||
Restricted deposits primarily consisted of cash deposits which secured a guarantee provided by the Group to an affiliated company and a loan provided to the Company by a financial institution; see note 14(f)(5) for additional information. Classification of restricted deposits as current or non-current assets takes into consideration the expected release date. | |||
Accounts receivable-trade, net | ' | ||
g. | 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 | ' | ||
h. | Inventories | ||
Inventories are measured at the lower of cost or market. | |||
Cost of inventories is determined as follows: | |||
Raw materials and parts | - | On the basis of actual cost or standard cost. | |
Work in progress and Finished goods | - | On the basis of actual cost or standard cost which takes into account materials, labor and other direct and indirect manufacturing costs, or identifiable direct costs. | |
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 | ' | ||
i. | 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 | 7-Jun | ||
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"): | ' | ||
j. | 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 | ' | ||
k. | 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 between 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 | ' | ||
l. | 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 8 and 9). | |||
Treasury Shares | ' | ||
m. | Treasury Shares | ||
Company shares held by the Company are presented as a reduction of equity at their cost to the Company. | |||
Revenue recognition | ' | ||
n. | 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, 2013, 2012 and 2011, 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 | ' | ||
o. | 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 | ' | ||
p. | 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 | ' | ||
q. | Research and development | ||
Research and development costs, net of grants, are charged to expenses as incurred. | |||
Fair value measurement | ' | ||
r. | 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 | ' | ||
s. | 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 | ' | ||
t. | 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(i). | |||
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 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, the Company computed deferred tax asset derived from estimated loss for tax purposes, incurred in the sale of its entire interest in Bental. For such capital loss the Company provides 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 non-Israeli 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(b)), 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. | |||
Results for tax purposes for the Company and 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 income tax 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 | ' | ||
u. | 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 | ' | ||
w. | 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 | ' | ||
x. | 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. | |||
The total share-based compensation expenses (income) recognized in the years ended December 31, 2013, 2012 and 2011 in the statements of operations were $3, $8 and $(37), respectively. | |||
Comprehensive income (loss) | ' | ||
y. | Comprehensive income (loss) | ||
Comprehensive income (loss), net of related taxes where applicable, includes, in addition to net income (loss): (i) currency translation adjustments; and (ii) unrealized holding gains and losses on available-for-sale securities. | |||
Contingencies | ' | ||
z. | 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. | |||
Reclassification | ' | ||
aa. | Reclassifications: | ||
Certain comparative amounts previously reported as cash and cash equivalents have been reclassified to accounts payable and accounts receivable. | |||
Recently Issued Accounting Principles Not Yet Adopted | ' | ||
ab. | Recently Issued Accounting Principles | ||
In February 2013, the FASB issued accounting standard update ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Previously, information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income had been presented in separate places throughout the financial statements. ASU No. 2013-02 requires entities to present this information in one centralized disclosure in the financial statements; however, it emphasized that there is no change in the current requirements for reporting net income or other comprehensive income in financial statements. The adoption of ASU No. 2013-02 did not have a material effect on Company's consolidated financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
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: | |||
years | |||
Buildings | 25 | ||
Machinery and equipment | 4 - 10 (mainly 10) | ||
Motor vehicles | 7-Jun | ||
Office furniture and equipment | 3 - 17 (mainly 7) | ||
Software | 3 |
INVESTMENT_IN_AN_AFFILIATED_CO1
INVESTMENT IN AN AFFILIATED COMPANY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INVESTMENT IN AN AFFILIATED COMPANY [Abstract] | ' | ||||||||||||
Reconciliation of the Share in Income (Loss), Impairment of Investment in FAvS and Gain from Dilution | ' | ||||||||||||
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, 2013, 2012 and 2011: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Share in income (loss) related to common stockholders | $ | 837 | $ | (653 | ) | $ | 192 | ||||||
Share in income related to preferred stock | 187 | 197 | 139 | ||||||||||
Impairment of in affiliated company | - | (3,300 | ) | - | |||||||||
Gain from dilution of interests in affiliated company | - | - | 240 | ||||||||||
Net income (loss) | $ | 1,024 | $ | (3,756 | ) | $ | 571 | ||||||
Schedule of Summarized Balance Sheets Financial Information for Equity Method Investment | ' | ||||||||||||
Condensed financial information from FAvS consolidated balance sheets as of December 31, 2013 and 2012: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 10,179 | $ | 31,090 | |||||||||
Long-term assets | 8,954 | 9,742 | |||||||||||
Total assets | 19,133 | 40,832 | |||||||||||
Current liabilities | 6,522 | 31,476 | |||||||||||
Long-term liabilities | 4,471 | 4,196 | |||||||||||
Total liabilities | $ | 10,993 | $ | 35,672 | |||||||||
Schedule of Summarized Statement of Operations Financial Information for Equity Method Investment | ' | ||||||||||||
Condensed financial information from FAvS consolidated statements of operations for each of the three years in the period ended December 31, 2013: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales | $ | 23,445 | $ | 21,579 | $ | 20,515 | |||||||
Gross profit | 6,182 | 9,202 | 8,626 | ||||||||||
Loss from continuing operations | (341 | ) | (1,476 | ) | 630 | ||||||||
Net income (loss) | 3,158 | (12,979 | ) | (94 | ) | ||||||||
Income (loss) attributable to common stockholders | $ | 2,821 | $ | (13,271 | ) | $ | (345 | ) |
HELD_FOR_SALE_CLASSIFICATION_A1
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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: | |||||||||||||
Cash and cash equivalents | $ | 2,823 | |||||||||||
Trade accounts receivable | 4,067 | ||||||||||||
Other accounts receivable and prepaid expenses | 196 | ||||||||||||
Inventories, net | 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 | |||||||||||
The following are amounts related to Bental included in net loss from discontinued operations: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 9,589 | $ | 10,008 | $ | 11,658 | |||||||
Loss before taxes on income (tax benefit) | $ | (148 | ) | $ | (191 | ) | $ | (158 | ) | ||||
Loss from discontinued operations, net of tax ($5, $3 and $19 in 2013, 2012 and 2011, respectively) | $ | (3,471 | ) | $ | (1,205 | ) | $ | (601 | ) | ||||
Loss from discontinued operations attributable to non-controlling interest | 1,042 | 58 | 53 | ||||||||||
Loss from discontinued operations attributable to TAT Technologies Ltd. shareholders | $ | (2,429 | ) | $ | (1,147 | ) | $ | (548 | ) |
AVAILABLEFORSALE_MARKETABLE_SE1
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||
Schedule of Available-For-Sale Securities | ' | ||||||||||||
31-Dec-13 | |||||||||||||
Amortized Cost | Gross | Fair | |||||||||||
Unrealized | Value | ||||||||||||
Gains | |||||||||||||
Available-for-sale: | |||||||||||||
Money Market | $ | 1,136 | $ | - | $ | 1,136 | |||||||
31-Dec-12 | |||||||||||||
Amortized Cost | Gross | Fair | |||||||||||
Unrealized | Value | ||||||||||||
Gains | |||||||||||||
Available-for-sale: | |||||||||||||
Money Market | $ | 3,341 | $ | - | $ | 3,341 |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | ' | ||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||
The Company's financial assets measured at fair value on a recurring basis, consisted of the following types of instruments: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Money Market | $ | 1,136 | $ | - | $ | - | $ | 1,136 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Money Market | $ | 3,341 | $ | - | $ | - | $ | 3,341 | |||||||||||||
Derivatives | - | 27 | - | 27 | |||||||||||||||||
Total | $ | 3,341 | $ | 27 | $ | - | $ | 3,368 | |||||||||||||
Schedule of Non-Recurring Fair Value Measurements | ' | ||||||||||||||||||||
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 December 31, 2012 | Quoted prices | Significant | Significant | Total | |||||||||||||||||
in active | other | unobservable | losses for the year ended December 31, 2012 | ||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
Goodwill (1) (*) | $ | - | $ | - | $ | - | $ | - | $ | 1,015 | |||||||||||
Investment in affiliated company (2) | $ | 1,264 | $ | - | $ | - | $ | 1,264 | $ | 3,300 |
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
Inventories are composed of the following: | |||||||||
December 31, | |||||||||
2013 (*) | 2012 | ||||||||
Raw materials and components | $ | 9,648 | $ | 12,321 | |||||
Work in process | 14,044 | 16,145 | |||||||
Spare parts | 4,742 | 3,897 | |||||||
Finished goods | 961 | 668 | |||||||
$ | 29,395 | $ | 33,031 | ||||||
(*) 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, 2013 | |||||||||
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | ' | ||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||
Composition of assets, grouped by major classifications, is as follows: | |||||||||
December 31, | |||||||||
2013 (*) | 2012 | ||||||||
Cost: | |||||||||
Land and buildings | $ | 5,582 | $ | 6,929 | |||||
Machinery and equipment (1) | 34,696 | 36,849 | |||||||
Motor vehicles | 418 | 676 | |||||||
Office furniture and equipment | 1,559 | 2,293 | |||||||
Software | 1,166 | 1,166 | |||||||
43,421 | 47,913 | ||||||||
Less: Accumulated depreciation | 32,274 | 35,003 | |||||||
Depreciated cost | $ | 11,147 | $ | 12,910 | |||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
-1 | The cost is net of investment grants received by Bental in the amount of $274 as of December 31, 2012. |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ' | ||||||||
Schedule of Intangible Assets | ' | ||||||||
Intangible assets: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
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, 2013 | |||||||||
OTHER BALANCE SHEETS SUPPLEMENTAL [Abstract] | ' | ||||||||
Schedule of Other Accounts Receivable and Prepaid Expenses | ' | ||||||||
Other accounts receivable and prepaid expenses: | |||||||||
December 31, | |||||||||
2013 (*) | 2012 | ||||||||
Deferred tax asset | $ | 1,589 | $ | 2,122 | |||||
Government authorities | 1,154 | 1,424 | |||||||
Prepaid expenses | 498 | 831 | |||||||
Income receivables and grants | - | 33 | |||||||
Derivatives | - | 27 | |||||||
Amounts due from related parties | 5 | 54 | |||||||
Other | 68 | 96 | |||||||
$ | 3,314 | $ | 4,587 | ||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
Schedule of Other Account Payable and Accrued Expenses | ' | ||||||||
Other account payable and accrued expenses: | |||||||||
December 31, | |||||||||
2013(*) | 2012 | ||||||||
Employees and payroll accruals | $ | 3,077 | $ | 3,358 | |||||
Accrued expenses (**) | 732 | 1,757 | |||||||
Government authorities | 483 | 673 | |||||||
Advances from customers | 840 | 731 | |||||||
Warranty provision | 229 | 276 | |||||||
Accrued royalties | 336 | 268 | |||||||
Deferred tax liability | 40 | 126 | |||||||
Amounts due to related parties | - | 112 | |||||||
Other accrued expenses | 78 | 106 | |||||||
$ | 5,815 | $ | 7,407 | ||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||
(**) Includes $750 royalties payable to a supplier in the MRO business, at December 31, 2013, following a reconciliation of an audit. |
TRANSACTIONS_WITH_RELATED_PART1
TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
TRANSACTIONS WITH RELATED PARTIES [Abstract] | ' | ||||||||||||
Schedule of Transactions with TAT Industries | ' | ||||||||||||
Transactions with TAT Industries: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Management fees (1) | $ | 29 | $ | 50 | $ | 50 | |||||||
Lease expenses (2) | $ | 424 | $ | 416 | $ | 408 | |||||||
-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. | |||||||||||||
Schedule of Balances with Related Parties | ' | ||||||||||||
Balances with related parties: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
TAT Industries - current asset (1) | $ | - | $ | 54 | |||||||||
FAVS - current asset | 5 | - | |||||||||||
Total asset | $ | 5 | $ | 54 | |||||||||
Bental Non-controlling interest - current liability | $ | - | $ | (60 | ) | ||||||||
FAVS - current liability | - | (29 | ) | ||||||||||
Isal Amlat Investment (1993) Ltd. | - | (23 | ) | ||||||||||
Total liability | $ | - | $ | (112 | ) | ||||||||
-1 | Results from certain expenses incurred by TAT Industries and borne by the Company. The debt bears interest at the rate equal to the interest rate agreed between TAT Industries and its lending banks. | ||||||||||||
Schedule of Transactions with Related Parties | ' | ||||||||||||
Transactions with related parties: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Management fees to shareholders (see item e below) | $ | - | $ | 359 | $ | 400 |
SHORT_TERM_BANK_CREDIT_AND_LON1
SHORT TERM BANK CREDIT AND LONG TERM LOANS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SHORT TERM BANK CREDIT AND LONG TERM LOANS [Abstract] | ' | |||||||||||||
Schedule of Long-Term Debt | ' | |||||||||||||
Terms of the 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) | $ | 2.50%-3.50 | % | 2009-2014 | $ | 884 | ||||||||
Schedule of Required Principal Payments | ' | |||||||||||||
Interest Rate | ||||||||||||||
Currency | 31-Dec-12 | Years of | December 31, | |||||||||||
of loan | Maturity | 2012 | ||||||||||||
Long-term loan (1) | NIS | 5.25 | % | 2012-2014 | $ | 523 | ||||||||
Long-term loan (2) | $ | 2.50%-3.50 | % | 2009-2014 | 2,477 | |||||||||
Long-term loan (3) | NIS | Prime + 1 | % | 2013 | 670 | |||||||||
3,670 | ||||||||||||||
Less - current maturities (1) | (290 | ) | ||||||||||||
Less - current maturities (2) | (1,594 | ) | ||||||||||||
Less - current maturities (3) | (670 | ) | ||||||||||||
$ | 1,116 | |||||||||||||
-1 | The original loan was received by Bental in 2009 from an Israeli bank in the amount of $1,400 to be repaid in quarterly installments over a five year period, commencing 2010. On June 30, 2010, the remaining balance of the original loan, in the amount of $1,185, was repaid and a new loan in the same amount was taken. This new loan bears annual fixed interest of 5.25% and will be repaid until August 2014 in quarterly installments. The loan balance as of December 31, 2013 and 2012 was $248 (presented as part of the liabilities held for sale) and $523, respectively (with regard to covenants related to such loan see note 14(f)(3)). | |||||||||||||
-2 | 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)). | |||||||||||||
-3 | On September 7, 2011, Bental received a loan from an Israeli bank in a total amount of NIS2.5 million (approximately $700), to be repaid in full 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 Bental's discretion. On September 8, 2013 Bental made an on time repayment of the loan in the total amount of NIS2.5 million (approximately $693) (see also note 11(h)). |
LONGTERM_EMPLOYEERELATED_OBLIG1
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS [Abstract] | ' | ||||
Schedule of Expected Future Benefits | ' | ||||
Year | Amount | ||||
2014 | $ | 282 | |||
2015 | 189 | ||||
2016 | 261 | ||||
2017 | 198 | ||||
2018 | 248 | ||||
Thereafter (through 2023) | 800 | ||||
$ | 1,978 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||
Schedule of Operating Leases | ' | ||||
As of December 31, 2013, future minimum rental payments under non-cancelable operating leases are as follows: | |||||
Year | Amount | ||||
2014 | $ | 636 | |||
2015 | 646 | ||||
2016 | 623 | ||||
2017 | 534 | ||||
2018 | 468 | ||||
2019 and thereafter | 964 | ||||
Total | $ | 3,871 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||||||
Reconciliation of Ordinary Shares | ' | ||||||||||||
A reconciliation of opening and closing balances of the number of ordinary shares outstanding is presented below: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance outstanding at beginning of year | 8,798,570 | 8,815,003 | 8,815,003 | ||||||||||
Purchase of treasury shares | - | (16,433 | ) | - | |||||||||
Exercise of options | 6,666 | - | - | ||||||||||
Balance outstanding at end of year | 8,805,236 | 8,798,570 | 8,815,003 | ||||||||||
Schedule of Stock Options Assumptions | ' | ||||||||||||
The fair value of the Company's stock options granted under the 2012 plan for the year ended December 31, 2012 was estimated using the following assumptions: | |||||||||||||
2012 | |||||||||||||
Expected stock price volatility | 41.57% - 43.4% | ||||||||||||
Expected option life (in years) | 2.23 - 3.23 | ||||||||||||
Risk free interest rate | 0.23% - 0.32% | ||||||||||||
Dividend yield | 9.80% | ||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||
The following table is a summary of the activity of TAT's stock Option plan: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | |||||||||||||
Number | Weighted | ||||||||||||
of | average | ||||||||||||
options | exercise | ||||||||||||
price | |||||||||||||
Outstanding at the beginning of the year | 285,000 | $ | 6.5 | ||||||||||
Granted | - | - | |||||||||||
Expired | - | - | |||||||||||
Forfeited | (133,334 | ) | 6.5 | ||||||||||
Exercised | (6,666 | ) | 6.5 | ||||||||||
Outstanding at the end of the year | 145,000 | $ | 6.5 | ||||||||||
Exercisable options | 24,167 | $ | 6.5 |
EARNINGS_LOSS_PER_SHARE_EPS_Ta
EARNINGS (LOSS) PER SHARE ("EPS") (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EARNINGS (LOSS) PER SHARE (?EPS?)[Abstract] | ' | ||||||||||||
Schedule of Earnings per Share | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator for EPS: | |||||||||||||
Net income (loss) from continuing operations | $ | 5,251 | $ | (567 | ) | $ | (482 | ) | |||||
Net loss from discontinued operations, net of tax | (2,429 | ) | (1,147 | ) | (548 | ) | |||||||
Denominator for EPS: | |||||||||||||
Weighted average shares outstanding - basic | 8,799,237 | 8,808,075 | 8,815,003 | ||||||||||
Dilutive shares | 9,683 | - | - | ||||||||||
Weighted average shares outstanding - diluted (*) | 8,808,920 | 8,808,075 | 8,815,003 | ||||||||||
EPS attributable to controlling interest: | |||||||||||||
Basic and diluted | |||||||||||||
Net income (loss) from continuing operations | $ | 0.6 | $ | (0.06 | ) | $ | (0.05 | ) | |||||
Loss from discontinued operations | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.07 | ) | ||||
(*) 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, 2013 | |||||||||||||
TAXES ON INCOME [Abstract] | ' | ||||||||||||
Schedule of Reconciliation of Tax Provisions to the Domestic and Effective Tax Rate | ' | ||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income (loss) before taxes on income (tax benefit) as reported in the statements of income | $ | 5,267 | $ | 5,279 | $ | (1,148 | ) | ||||||
Statutory tax rate in Israel | 25 | % | 25 | % | 24 | % | |||||||
Theoretical taxes on income (tax benefit) | $ | 1,317 | $ | 1,320 | $ | (276 | ) | ||||||
Increase (decrease) in taxes on income resulting from: | |||||||||||||
Tax adjustment for foreign subsidiaries subject to a different tax rate | 453 | 434 | (73 | ) | |||||||||
Reduced tax rate on income derived from "Preferred Enterprises" plans | (255 | ) | (143 | ) | 103 | ||||||||
Change in enacted tax rates | 34 | - | - | ||||||||||
Exempt income | - | (4 | ) | (10 | ) | ||||||||
Valuation allowance | 294 | 499 | - | ||||||||||
Tax in respect of prior years | (342 | ) | (83 | ) | (24 | ) | |||||||
Permanent differences | (460 | ) | 67 | (55 | ) | ||||||||
Taxes on income (tax benefit) as reported in the statements of income (loss) | $ | 1,041 | $ | 2,090 | $ | (335 | ) | ||||||
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: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic (Israel) | $ | 1,942 | $ | 2,046 | $ | 1,547 | |||||||
Foreign (United States) | 3,325 | 3,233 | (2,695 | ) | |||||||||
$ | 5,267 | $ | 5,279 | $ | (1,148 | ) | |||||||
Schedule of Components of Income Tax Provision | ' | ||||||||||||
Taxes on income (tax benefit) included in the statements of income: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Domestic (Israel) | $ | 160 | $ | 282 | $ | 373 | |||||||
Foreign (United States) | 334 | 295 | 213 | ||||||||||
494 | 577 | 586 | |||||||||||
Deferred: | |||||||||||||
Domestic (Israel) | 15 | 115 | 245 | ||||||||||
Foreign (United States) | 874 | 1,481 | (1,142 | ) | |||||||||
889 | 1,596 | (897 | ) | ||||||||||
Previous years: | |||||||||||||
Domestic (Israel) | (209 | ) | (45 | ) | (71 | ) | |||||||
Foreign (United States) | (133 | ) | (38 | ) | 47 | ||||||||
(342 | ) | (83 | ) | (24 | ) | ||||||||
$ | 1,041 | $ | 2,090 | $ | (335 | ) | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of TAT's deferred tax liabilities and assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Allowance for doubtful accounts | $ | 47 | $ | 133 | |||||||||
Unrealized gains | 146 | 131 | |||||||||||
Provisions for employee benefits | 277 | 270 | |||||||||||
Inventory | 920 | 1,171 | |||||||||||
Other temporary differences | 199 | 417 | |||||||||||
Deferred tax assets - short-term- other accounts receivables | $ | 1,589 | $ | 2,122 | |||||||||
Goodwill and intangible assets | $ | 671 | $ | 884 | |||||||||
Property, plant and equipment | 18 | 707 | |||||||||||
Provisions for employee benefits and other temporary differences | 38 | 64 | |||||||||||
Tax credits carryforward | 447 | 274 | |||||||||||
Capital and state tax losses carryforward | 3,306 | 1,823 | |||||||||||
Net operating losses carryforward | 419 | 606 | |||||||||||
Other | 23 | - | |||||||||||
Deferred tax assets, before valuation allowance - Long-term | 4,922 | 4,358 | |||||||||||
Valuation allowance | (3,306 | ) | (1,823 | ) | |||||||||
Deferred tax assets, net - long-term | $ | 1,616 | $ | 2,535 | |||||||||
Other temporary differences deferred tax liabilities - short-term- other accounts receivable | $ | (40 | ) | $ | (126 | ) | |||||||
Property, plant and equipment and intangible assets | (1,003 | ) | (1,457 | ) | |||||||||
Other | (55 | ) | (33 | ) | |||||||||
Deferred tax Liabilities - Long-term | $ | (1,058 | ) | $ | (1,490 | ) | |||||||
Reconciliation of the Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized provision is as follows: | |||||||||||||
Amount | |||||||||||||
Balance at January 1, 2011 | $ | 84 | |||||||||||
Exchange rate differences | 2 | ||||||||||||
Balance at December 31, 2011 | 86 | ||||||||||||
Exchange rate differences | (2 | ) | |||||||||||
Balance at December 31, 2012 | 84 | ||||||||||||
Exchange rate differences | 6 | ||||||||||||
Utilization upon assessment | (90 | ) | |||||||||||
Balance at December 31, 2013 | $ | - | |||||||||||
Schedule of Supplemental Consolidated Balance Sheets Information | ' | ||||||||||||
Warranty provision | Allowance for Doubtful Accounts | ||||||||||||
Balance, as of January 1, 2011 | 341 | 2,419 | |||||||||||
Additions | 169 | 31 | |||||||||||
Utilization | (222 | ) | - | ||||||||||
Write-offs, net of recoveries | - | (2,260 | ) | ||||||||||
Balance, as of December 31, 2011 | 288 | 190 | |||||||||||
Additions | 196 | 258 | |||||||||||
Utilization | (208 | ) | - | ||||||||||
Write-offs, net of recoveries | - | (72 | ) | ||||||||||
Balance, as of December 31, 2012 | $ | 276 | $ | 376 | |||||||||
Additions | 186 | 17 | |||||||||||
Utilization | (190 | ) | - | ||||||||||
Write-offs, net of recoveries | - | (270 | ) | ||||||||||
Less: Held for sale | (43 | ) | - | ||||||||||
Balance, as of December 31, 2013 | $ | 229 | $ | 123 | |||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Assets by Segment | ' | ||||||||||||||||||||||||||||||||
The following financial information identifies the assets to segment: | |||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Consolidated | |||||||||||||||||||||||||||||
Assets | $ | 45,518 | $ | 28,806 | $ | 18,137 | $ | 16,419 | $ | 108,880 | |||||||||||||||||||||||
Depreciation and amortization (*) | 991 | 603 | 265 | - | 1,859 | ||||||||||||||||||||||||||||
Expenditure for segment assets (*) | 992 | 664 | 584 | - | 2,240 | ||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Consolidated | ||||||||||||||||||||||||||||
Assets | $ | 34,315 | $ | 12,707 | $ | 27,093 | $ | 18,473 | $ | 16,354 | $ | 108,942 | |||||||||||||||||||||
Depreciation and amortization (*) | 974 | - | 735 | 197 | - | 1,906 | |||||||||||||||||||||||||||
Expenditure for segment assets (*) | 1,047 | - | 756 | 344 | - | 2,147 | |||||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Consolidated | ||||||||||||||||||||||||||||
Assets | $ | 34,055 | $ | 13,941 | $ | 27,464 | $ | 21,068 | $ | 19,783 | $ | 116,311 | |||||||||||||||||||||
Depreciation and amortization (*) | 1,139 | - | 758 | 721 | - | 2,618 | |||||||||||||||||||||||||||
Expenditure for segment assets (*) | 924 | - | 638 | 1,391 | - | 2,953 | |||||||||||||||||||||||||||
Goodwill | - | 1,042 | - | - | - | 1,042 | |||||||||||||||||||||||||||
(*) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||
Schedule of Operating Income by Segment | ' | ||||||||||||||||||||||||||||||||
The following financial information is a summary of the operating income of each operational segment: | |||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Elimination of inter-company sales | Consolidated | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Sale of products and services | $ | 27,326 | $ | 29,796 | $ | 22,429 | $ | - | $ | - | $ | 79,551 | |||||||||||||||||||||
Intersegment revenues | 3,812 | 111 | - | - | (3,923 | ) | - | ||||||||||||||||||||||||||
Total revenues | 31,138 | 29,907 | 22,429 | - | (3,923 | ) | 79,551 | ||||||||||||||||||||||||||
Cost of revenues | 24,141 | 21,600 | 19,224 | - | (4,086 | ) | 60,879 | ||||||||||||||||||||||||||
Gross profit | 6,997 | 8,307 | 3,205 | - | 163 | 18,672 | |||||||||||||||||||||||||||
Research and development | 415 | 298 | - | - | - | 713 | |||||||||||||||||||||||||||
Selling and marketing | 1,520 | 1,145 | 485 | - | - | 3,150 | |||||||||||||||||||||||||||
General and administrative | 3,158 | 3,093 | 3,261 | - | - | 9,512 | |||||||||||||||||||||||||||
Other expense (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 | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Elimination of inter-company sales | Adjustment to the consolidated financial statements | Consolidated | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Sale of products and services | $ | 27,944 | $ | 10,008 | $ | 27,529 | $ | 22,442 | $ | - | $ | - | $ | (10,008 | ) | $ | 77,915 | ||||||||||||||||
Intersegment revenues | 3,088 | - | 180 | - | - | (3,268 | ) | - | - | ||||||||||||||||||||||||
Total revenues | 31,032 | 10,008 | 27,709 | 22,442 | - | (3,268 | ) | (10,008 | ) | 77,915 | |||||||||||||||||||||||
Cost of revenues | 23,105 | 8,043 | 19,671 | 19,044 | - | (3,281 | ) | (8,043 | ) | 58,539 | |||||||||||||||||||||||
Gross profit | 7,927 | 1,965 | 8,038 | 3,398 | - | 13 | (1,965 | ) | 19,376 | ||||||||||||||||||||||||
Research and development | 581 | 157 | 414 | - | - | - | (157 | ) | 995 | ||||||||||||||||||||||||
Selling and marketing | 1,476 | 527 | 1,049 | 374 | - | - | (527 | ) | 2,899 | ||||||||||||||||||||||||
General and administrative | 3,530 | 1,377 | 3,270 | 3,310 | - | - | (1,377 | ) | 10,110 | ||||||||||||||||||||||||
Other expense (income) | (13 | ) | 21 | - | - | - | - | (21 | ) | (13 | ) | ||||||||||||||||||||||
Operating income (loss) | 2,353 | (117 | ) | 3,305 | (286 | ) | - | 13 | 117 | 5,385 | |||||||||||||||||||||||
Financial expense, net | - | - | - | - | (106 | ) | - | - | (106 | ) | |||||||||||||||||||||||
Income before taxes on income | $ | 5,279 | |||||||||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
OEM of Heat Management Solutions | OEM of Electric Motion Systems | Heat Transfer Services and Products | MRO services for Aviation Components | Amounts not allocated to segments | Elimination of inter-company sales | Adjustment to the consolidated financial statements | Consolidated | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Sale of products and services | $ | 25,993 | $ | 11,658 | $ | 27,600 | $ | 20,146 | $ | - | $ | - | $ | (11,658 | ) | $ | 73,739 | ||||||||||||||||
Intersegment revenues | 4,027 | - | 3 | - | - | (4,030 | ) | - | - | ||||||||||||||||||||||||
Total revenues | 30,020 | 11,658 | 27,603 | 20,146 | - | (4,030 | ) | (11,658 | ) | 73,739 | |||||||||||||||||||||||
Cost of revenues | 22,662 | 9,388 | 20,173 | 17,882 | - | (4,009 | ) | (9,388 | ) | 56,708 | |||||||||||||||||||||||
Write down of inventory and impairment charges of long lived assets | - | - | - | 5,465 | - | - | - | 5,465 | |||||||||||||||||||||||||
Gross profit | 7,358 | 2,270 | 7,430 | (3,201 | ) | - | (21 | ) | (2,270 | ) | 11,566 | ||||||||||||||||||||||
Research and development | 455 | 331 | - | - | - | - | (331 | ) | 455 | ||||||||||||||||||||||||
Selling and marketing | 1,202 | 619 | 1,026 | 591 | - | - | (619 | ) | 2,819 | ||||||||||||||||||||||||
General and administrative | 3,789 | 1,499 | 3,035 | 2,626 | - | - | (1,499 | ) | 9,450 | ||||||||||||||||||||||||
Other expense (income) | (190 | ) | 21 | - | - | - | - | (21 | ) | (190 | ) | ||||||||||||||||||||||
Operating income (loss) | 2,102 | (200 | ) | 3,369 | (6,418 | ) | - | (21 | ) | 200 | (968 | ) | |||||||||||||||||||||
Financial expense, net | - | - | - | - | (420 | ) | - | - | (420 | ) | |||||||||||||||||||||||
Income before taxes on income | $ | (1,388 | ) |
ENTITYWIDE_DISCLOSURE_Tables
ENTITY-WIDE DISCLOSURE (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
ENTITY-WIDE DISCLOSURE [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Total Revenues and Long-lived Assets by Geographical Location | ' | ||||||||||||||||||||||||
Total revenues and long-lived assets - by geographical location were as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Total revenues (**) | Long-lived assets (*) | Total revenues (**) | Long-lived assets | Total revenues (**) | Long-lived assets | ||||||||||||||||||||
Sale of products | |||||||||||||||||||||||||
Israel | $ | 6,248 | $ | 5,748 | $ | 9,147 | $ | 8,417 | $ | 8,218 | $ | 8,528 | |||||||||||||
United states | 18,016 | - | 16,475 | - | 21,495 | - | |||||||||||||||||||
France | 5,482 | - | 4,604 | - | 3,264 | - | |||||||||||||||||||
Rest of Europe | 2,292 | - | 1,966 | - | 2,507 | - | |||||||||||||||||||
Other | 2,326 | - | 4,071 | - | 1,353 | - | |||||||||||||||||||
$ | 34,364 | $ | 5,748 | $ | 36,263 | $ | 8,417 | $ | 36,837 | $ | 8,528 | ||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Total revenues | Long-lived assets | Total revenues | Long-lived assets | Total revenues | Long-lived assets | ||||||||||||||||||||
Services | |||||||||||||||||||||||||
Israel | $ | 612 | $ | - | $ | 468 | $ | - | $ | 384 | $ | - | |||||||||||||
United states | 27,639 | 5,399 | 25,648 | 4,493 | 25,416 | 4,325 | |||||||||||||||||||
Netherland | 1,553 | - | 3,303 | - | 4,378 | - | |||||||||||||||||||
Rest of Europe | 7,658 | - | 4,624 | - | 3,875 | - | |||||||||||||||||||
Other | 7,725 | - | 7,609 | - | 2,849 | - | |||||||||||||||||||
$ | 45,187 | $ | 5,399 | $ | 41,652 | $ | 4,493 | $ | 36,902 | $ | 4,325 | ||||||||||||||
(*) Excluding held for sale assets at December 31, 2013 | |||||||||||||||||||||||||
(**) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. |
SELECTED_STATEMENTS_OF_INCOME_1
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ||||||||||||
Schedule of Financial Income (Expenses), Net | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Financial income (expenses), net (*): | |||||||||||||
Financial income: | |||||||||||||
Foreign currency gains | $ | 661 | $ | 1,294 | $ | 1,108 | |||||||
Derivatives | 27 | 399 | 352 | ||||||||||
Tax refund | 95 | 53 | 71 | ||||||||||
Interest on cash equivalents, short-term bank deposits and others | 114 | 242 | 172 | ||||||||||
897 | 1,988 | 1,703 | |||||||||||
Financial expenses (*): | |||||||||||||
Bank charges | (77 | ) | (71 | ) | (74 | ) | |||||||
Interest on short-term loans | (18 | ) | (98 | ) | (98 | ) | |||||||
Interest on long-term loans | (66 | ) | (120 | ) | (148 | ) | |||||||
Foreign currency losses | (786 | ) | (1,376 | ) | (1,149 | ) | |||||||
Derivatives | - | (321 | ) | (642 | ) | ||||||||
Others | - | (108 | ) | (12 | ) | ||||||||
(947 | ) | (2,094 | ) | (2,123 | ) | ||||||||
$ | (50 | ) | $ | (106 | ) | $ | (420 | ) | |||||
(*) Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. |
SUPPLEMENTAL_CONSOLIDATED_BALA1
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION [Abstract] | ' | ||||||||
Schedule of Supplemental Consolidated Balance Sheets Information | ' | ||||||||
Warranty provision | Allowance for Doubtful Accounts | ||||||||
Balance, as of January 1, 2011 | 341 | 2,419 | |||||||
Additions | 169 | 31 | |||||||
Utilization | (222 | ) | - | ||||||
Write-offs, net of recoveries | - | (2,260 | ) | ||||||
Balance, as of December 31, 2011 | 288 | 190 | |||||||
Additions | 196 | 258 | |||||||
Utilization | (208 | ) | - | ||||||
Write-offs, net of recoveries | - | (72 | ) | ||||||
Balance, as of December 31, 2012 | $ | 276 | $ | 376 | |||||
Additions | 186 | 17 | |||||||
Utilization | (190 | ) | - | ||||||
Write-offs, net of recoveries | - | (270 | ) | ||||||
Less: Held for sale | (43 | ) | - | ||||||
Balance, as of December 31, 2013 | $ | 229 | $ | 123 | |||||
GENERAL_Details
GENERAL (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 18, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 07, 2013 |
Limco Piedmont Inc Subsidiary [Member] | Bental Industries Ltd Subsidiary [Member] | Tat Gal Inc Subsidiary [Member] | TAT Industries Ltd. Parent [Member] | KMN Industries Ltd. [Member] | KMN Industries Ltd. [Member] | Tat Technologies Ltd Parent [Member] | Limco Piedmont Inc Parent [Member] | Limco Piedmont Inc Parent [Member] | Limco Piedmont Inc Parent [Member] | Piedmont Aviation Component Services Llc Parent [Member] | FIMI Funds [Member] | |
Tat Technologies Ltd Subsidiary [Member] | Tat Technologies Ltd Subsidiary [Member] | Tat Industries Ltd Subsidiary [Member] | Bental Industries Ltd Subsidiary [Member] | Limco Airepair Inc Subsidiary [Member] | Piedmont Aviation Component Services LLC Subsidiary [Member] | First Aviation Services Inc Subsidiary [Member] | First Aviation Services Inc Subsidiary [Member] | Tat Technologies Ltd Subsidiary [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investee ownership percentage | 100.00% | 70.00% | 100.00% | ' | ' | 80.00% | ' | 100.00% | 100.00% | ' | 0.00% | 53.80% |
Ownership percentage | ' | ' | ' | 43.00% | 10.00% | ' | ' | ' | ' | 29.36% | ' | ' |
Sale of ownerhsip interest, percentage | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' |
Cash received from sale of affiliate | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' |
Loss on sale of discontinued operation | ' | ' | ' | ' | ' | ' | 2,323,000 | ' | ' | ' | ' | ' |
Impariment | ' | ' | ' | ' | ' | ' | $3,319 | ' | ' | ' | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Short term bank deposit average interest rate | 60.00% | ' | ' |
Share-based Compensation | ' | ' | ' |
Share based compensation expenses (income) | $3 | $8 | ($37) |
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) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Dec. 31, 2012 | Oct. 01, 2010 | Dec. 04, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 04, 2009 | Mar. 18, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2013 | |
Payment Guarantee [Member] | Payment Guarantee [Member] | Payment Guarantee [Member] | Payment Guarantee [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | First Aviation Services, Inc. [Member] | |||||
API [Member] | Convertible Debt [Member] | Chief Executive Officer [Member] | Term Loan [Member] | |||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of investee acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 288,334 | ' | ' | ' | ' |
Investee ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | 29.36% | ' | 30.30% | 36.60% | ' | 37.00% | ' | ' | ' | ' |
Value of preferred stocks owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $750,000 | ' | ' | ' | ' |
Preferred stock, cash dividend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' |
Preferred stock, stock dividend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' |
Investment in affiliated company | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum guarantee | ' | ' | ' | ' | ' | 4,600,000 | 6,600,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of guarantee secured | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly amortization related to guarantee agreement | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for settlement | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,113 | ' |
Market price of stock | ' | ' | ' | ' | ' | ' | ' | ' | $6.60 | $7 | $5.45 | ' | ' | ' | ' | ' | $18.06 | ' |
Shares issued to directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' |
Gain from dilution of interests in affiliated company | ' | ' | ' | 240,000 | ' | ' | ' | ' | ' | ' | 240,000 | ' | ' | ' | ' | ' | ' | ' |
Impairment of equity method investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,300,000 | ' | 1,813,000 | ' | ' | ' | ' | ' | ' |
Loss from equity method investments | ' | 1,025,000 | -3,756,000 | 331,000 | ' | ' | ' | ' | ' | -456,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,900 | ' | ' | 4,000,000 |
Original amount of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Exercise price of warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000 | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,500 | ' | ' | ' |
Percentage of post-exercise shareholders' equity callable by warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' |
Write down | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,500 | ' | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
First Aviation Services, Inc. [Member] | ' | ' | ' |
Condensed financial information, balance sheets: | ' | ' | ' |
Current assets | $10,179 | $31,090 | ' |
Long-term assets | 8,954 | 9,742 | ' |
Total assets | 19,133 | 40,832 | ' |
Current liabilities | 6,522 | 31,476 | ' |
Long-term liabilities | 4,471 | 4,196 | ' |
Total liabilities | 10,993 | 35,672 | ' |
Condensed financial information, statements of operations: | ' | ' | ' |
Net sales | 23,445 | 21,579 | 20,515 |
Gross profit | 6,182 | 9,202 | 8,626 |
Income (loss) from continuing operations | -341 | -1,476 | 630 |
Net loss | 3,158 | -12,979 | -94 |
Loss attributable to common stockholders | $2,821 | ($13,271) | ($345) |
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) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Gain from dilution of interests in affiliated company | ' | ' | $240 | ' |
First Aviation Services, Inc. [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Share in income (loss) related to common stockholders | 837 | -653 | 192 | ' |
Share in income related to preferred stock | 187 | 197 | 139 | ' |
Impairment of equity method investment | ' | -3,300 | ' | 1,813 |
Gain from dilution of interests in affiliated company | ' | ' | 240 | ' |
Total | $1,024 | ($3,756) | $571 | ' |
HELD_FOR_SALE_CLASSIFICATION_A2
HELD FOR SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended |
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 | $5,000,000 | ' |
Impariment | ' | 3,319,000 |
Loss on sale of discontinued operation | ' | 152,000 |
Controlling Interest [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Impariment | ' | 2,323,000 |
Loss on sale of discontinued operation | ' | $106,000 |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' | ' |
Cash and cash equivalents | $2,823,000 | $2,309,000 | $676,000 |
Total assets held for sale | 9,959,000 | ' | ' |
Bental Industries Ltd. [Member] | ' | ' | ' |
Assets of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' | ' |
Cash and cash equivalents | 2,823,000 | ' | ' |
Trade accounts receivable | 4,067,000 | ' | ' |
Other accounts receivable and prepaid expenses | 196,000 | ' | ' |
Inventories | 2,983,000 | ' | ' |
Funds in respect of employee right upon retirement | 778,000 | ' | ' |
Deferred income taxes | 29,000 | ' | ' |
Property, plant and equipment, net | 2,402,000 | ' | ' |
Assets of businesses held for sale | 13,278,000 | ' | ' |
Less: impairment | -3,319,000 | ' | ' |
Total assets held for sale | 9,959,000 | ' | ' |
Liabilities | ' | ' | ' |
Trade accounts payables | 946,000 | ' | ' |
Other accounts payable and accrued expenses | 1,109,000 | ' | ' |
Long-term loans, net of current maturities | 248,000 | ' | ' |
Liability in respect of employee rights upon retirement | 1,070,000 | ' | ' |
Deferred income taxes | 55,000 | ' | ' |
Total liabilities held for sale | $3,428,000 | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Loss from discontinued operations, net of tax ($5, $3 and $19 in 2013, 2012 and 2011, respectively) | ($2,429) | ($1,147) | ($548) |
Bental Industries Ltd. [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenues | 9,589 | 10,008 | 11,658 |
Loss before taxes on income (tax benefit) | -148 | -191 | -158 |
Loss from discontinued operations, net of tax ($5, $3 and $19 in 2013, 2012 and 2011, respectively) | -3,471 | -1,205 | -601 |
Loss from discontinued operations attributable to non-controlling interest | 1,042 | 58 | 53 |
Loss from discontinued operations attributable to TAT Technologies Ltd. shareholders | -2,429 | -1,147 | -548 |
Discontinued operations, tax | $5 | $3 | $19 |
AVAILABLEFORSALE_MARKETABLE_SE2
AVAILABLE-FOR-SALE - MARKETABLE SECURITIES (Details) (Money Market [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Money Market [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $1,136 | $3,341 |
Fair value | $1,136 | $3,341 |
FAIR_VALUE_MEASUREMENT_Schedul
FAIR VALUE MEASUREMENT (Schedule of Financial Assets Measured at Fair Value on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Money market | $1,136 | $3,341 |
Derivatives | ' | 27 |
Total | 1,136 | 3,368 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Money market | 1,136 | 3,341 |
Derivatives | ' | ' |
Total | ' | 3,341 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Money market | ' | ' |
Derivatives | ' | 27 |
Total | ' | 27 |
Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Money market | ' | ' |
Derivatives | ' | ' |
Total | ' | ' |
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, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2012 |
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 | ' | ' | ' | ' | 7,000 |
Impairment of equity method investment | ' | $3,300 | ' | ($1,813) | ' |
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 $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |
Goodwill | ' | $1,015 | [1] | ' |
Investment in affiliated company | ' | 3,300 | ' | |
Impairment of goodwill, intangible assets and other long lived assets | ' | ' | 2,965 | |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Inventory [Line Items] | ' | ' | ' | |
Raw materials and components | $9,648 | [1] | $12,321 | ' |
Work in process | 14,044 | [1] | 16,145 | ' |
Spare parts | 4,742 | [1] | 3,897 | ' |
Finished goods | 961 | [1] | 668 | ' |
Total inventories | 29,395 | [1] | 33,031 | ' |
Reserve for slow moving and surplus production and write down of inventory | 1,147 | [1] | 1,430 | ' |
Write down of inventory | 67 | ' | 2,500 | |
MRO Services for Aviation Components [Member] | ' | ' | ' | |
Schedule of Inventory [Line Items] | ' | ' | ' | |
Write down of inventory | ' | ' | 2,500 | |
Inventory previously written down used in provision | $350 | $1,892 | $1,501 | |
[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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Total property and equipment, gross | $43,421 | [1] | $47,913 | ' | ||
Less: Accumulated depreciation | 32,274 | [1] | 35,003 | ' | ||
Depreciated cost | 11,147 | [1] | 12,910 | ' | ||
Investment grants | ' | 274 | ' | |||
Depreciation and amortization | 1,859 | [2] | 1,906 | [2] | 2,618 | [2] |
MRO Services for Aviation Components [Member] | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Depreciation and amortization | 265 | [2] | 197 | [2] | 721 | [2] |
Impairment charges | ' | ' | 1,865 | |||
Land and Buildings [Member] | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Total property and equipment, gross | 5,582 | [1] | 6,929 | ' | ||
Machinery and Equipment [Member] | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Total property and equipment, gross | 34,696 | [1],[3] | 36,849 | [3] | ' | |
Motor Vehicles [Member] | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Total property and equipment, gross | 418 | [1] | 676 | ' | ||
Office Furniture and Equipment [Member] | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Total property and equipment, gross | 1,559 | [1] | 2,293 | ' | ||
Software [Member] | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | |||
Total property and equipment, gross | $1,166 | [1] | $1,166 | ' | ||
[1] | Excluding held for sale assets at December 31, 2013 | |||||
[2] | Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. | |||||
[3] | The cost is net of investment grants received by Bental in the amount of $274 as of December 31, 2012. |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) (License for Service Center [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 |
Customer Relationship [Member] | Customer Relationship [Member] | License for Service Center [Member] | ||
MRO Services for Aviation Components [Member] | OEM Electric Motion Systems [Member] | MRO Services for Aviation Components [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | $539 | ' | ' | ' |
Impairment of intangible assets | $1,398 | $481 | $298 | $1,100 |
OTHER_BALANCE_SHEET_SUPPLEMENT2
OTHER BALANCE SHEET SUPPLEMENTALS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Other accounts receivable and prepaid expenses: | ' | ' | ||
Deferred tax asset | $1,589 | [1] | $2,122 | |
Government authorities | 1,154 | [1] | 1,424 | |
Prepaid expenses | 498 | [1] | 831 | |
Income receivables and grants | ' | [1] | 33 | |
Derivatives | ' | [1] | 27 | |
Amounts due from related parties | 5 | 54 | ||
Other | 68 | [1] | 96 | |
Total other accounts receivable and prepaid expenses | 3,314 | [1] | 4,587 | |
Other account payable and accrued expenses: | ' | ' | ||
Employees and payroll accruals | 3,077 | [1] | 3,358 | |
Accrued expenses | 732 | [1],[2] | 1,757 | [2] |
Government authorities | 483 | [1] | 673 | |
Advances from customers | 840 | [1] | 731 | |
Warranty provision | 229 | [1] | 276 | |
Accrued royalties | 336 | [1] | 268 | |
Deferred tax liability | 40 | [1] | 126 | |
Amounts due to related parties | ' | 112 | ||
Other accrued expenses | 78 | [1] | 106 | |
Total other account payable and accrued expenses | 5,815 | [1] | 7,407 | |
MRO Services for Aviation Components [Member] | ' | ' | ||
Other account payable and accrued expenses: | ' | ' | ||
Accrued royalties | ' | $750 | ||
[1] | Excluding held for sale assets at December 31, 2013 | |||
[2] | Includes $750 royalties payable to a supplier in the MRO business, at December 31, 2013, following a reconciliation of an audit. |
TRANSACTIONS_WITH_RELATED_PART2
TRANSACTIONS WITH RELATED PARTIES (Transactions with TAT Industries) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 |
Buildings [Member] | Buildings [Member] | Manufacturing, Office and Storage Space [Member] | ||||
sqft | sqft | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Management fees | $29 | $50 | $50 | ' | ' | ' |
Lease expenses | $424 | $416 | $408 | ' | $400 | ' |
Area of property leased | ' | ' | ' | 344,000 | ' | 90,000 |
Length of lease contract | ' | ' | ' | '24 years 11 months | ' | ' |
Annual incremental increase in lease payment | ' | ' | ' | 2.00% | 2.00% | ' |
TRANSACTIONS_WITH_RELATED_PART3
TRANSACTIONS WITH RELATED PARTIES (Balances with Related Parties) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ' | ' | ||
Current asset | $5 | $54 | ||
Current liability | ' | -112 | ||
Total liability | ' | -112 | ||
TAT Industries [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Current asset | ' | [1] | 54 | [1] |
Bental Non Controlling Interest [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Current liability | ' | -60 | ||
First Aviation Services, Inc. [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Current asset | 5 | ' | ||
Current liability | ' | -29 | ||
Isal Amlat Investment (1993) Ltd. [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Current liability | ' | ($23) | ||
[1] | Results from certain expenses incurred by TAT Industries and borne by the Company. The debt bears interest at the rate equal to the interest rate agreed between TAT Industries and its lending banks. |
TRANSACTIONS_WITH_RELATED_PART4
TRANSACTIONS WITH RELATED PARTIES (Other Transactions with Related Parties) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Oct. 01, 2010 | Dec. 04, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 21, 2012 | Aug. 21, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 08, 2013 | Sep. 08, 2013 | Sep. 07, 2011 | Sep. 07, 2011 |
USD ($) | USD ($) | Payment Guarantee [Member] | Payment Guarantee [Member] | Payment Guarantee [Member] | Shareholders [Member] | Shareholders [Member] | Shareholders [Member] | Bental Non Controlling Interest [Member] | Bental Non Controlling Interest [Member] | Bental Non Controlling Interest [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Isal Amlat Investment (1993) Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ILS | USD ($) | ILS | USD ($) | ILS | Long Term Loan Three [Member] | Long Term Loan Three [Member] | Long Term Loan Three [Member] | Long Term Loan Three [Member] | |||
USD ($) | ILS | USD ($) | ILS | ||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of transactions | $359 | $397 | ' | ' | ' | ' | $359 | $400 | $432 | $505 | $526 | $400 | 1,500 | ' | ' | $120 | ' | ' | ' | ' | ' |
Amount of reduction in annual management fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | 570 | ' | ' | ' | ' | ' | ' |
Maximum guarantee | ' | ' | 4,600 | 6,600 | 7,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% |
Debt instrument, variable interest reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Prime | 'Prime |
Additional management fees owed for traveling expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 7 | ' | ' | ' | ' |
Minimum threshold that allows management company to be eligible for bonus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,600 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' |
Original amount of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700 | 2,500 |
Debt term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | '24 months |
Repayment of related party debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $693 | 2,500 | ' | ' |
SHORT_TERM_BANK_CREDIT_AND_LON2
SHORT TERM BANK CREDIT AND LONG TERM LOANS (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Nov. 06, 2012 | Nov. 07, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2009 | Sep. 08, 2013 | Sep. 08, 2013 | Sep. 07, 2011 | Sep. 07, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | TAT Technologies Ltd [Member] | Limco Piedmont Inc [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Bental Industries Ltd. [Member] | Piedmont [Member] | Piedmont [Member] | Limco [Member] | |
Long-term loan One [Member] | Long-term loan One [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Three [Member] | Line of Credit [Member] | Line of Credit [Member] | Long-term loan One [Member] | Long-term loan Three [Member] | Long-term loan Three [Member] | Long-term loan Three [Member] | Long-term loan Three [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ILS | USD ($) | ILS | USD ($) | USD ($) | USD ($) | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term loans | $884 | $3,670 | $4,702 | $523 | $248 | ' | $884 | $2,477 | ' | ' | ' | ' | ' | $670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less - current maturities | ' | ' | ' | -290 | ' | ' | ' | -1,594 | ' | ' | ' | ' | ' | -670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term loans, excluding current maturities | ' | 1,116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, minimum | ' | ' | ' | ' | ' | ' | ' | 2.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, maximum | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.85% | 3.50% | ' | ' | ' | ' | 1.50% | ' | ' | ' | 1.00% | 1.00% | ' | ' | ' |
Debt instrument, variable interest reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Libor | 'Libor | ' | ' | ' | ' | 'Libor | ' | ' | ' | 'Prime | 'Prime | ' | ' | ' |
Frequency of payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Quarterly | ' | ' | 'Quarterly | 'Quarterly | ' | ' | ' |
Debt term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '21 months | '5 years | ' | ' | '24 months | '24 months | ' | ' | ' |
Maturity date range, start | ' | ' | ' | 1-Jan-12 | ' | ' | ' | 1-Jan-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date range, end | ' | ' | ' | 31-Dec-14 | ' | ' | ' | 31-Dec-14 | ' | ' | ' | ' | ' | 31-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original amount of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | 6,250 | 1,250 | 5,000 | ' | ' | ' | ' | ' | 1,400 | ' | ' | 700 | 2,500,000 | ' | ' | ' |
Currency of loan | ' | ' | ' | 'NIS | ' | ' | ' | 'USD | ' | ' | ' | ' | ' | 'NIS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of lLong-term debt | 2,286 | 776 | 3,021 | ' | ' | ' | 1,593 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 693 | 2,500 | ' | ' | ' | ' | ' |
Principal payment made on loan | ' | ' | ' | ' | ' | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid amount of principal balance on long-term loan | ' | ' | ' | ' | ' | ' | ' | 3,775 | ' | ' | ' | 775 | 2,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, initiation date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Nov-11 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | 5,000 | 5,000 |
Line of credit, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26 | $688 | ' | ' | ' | ' | ' | $32 | ' | ' |
LONGTERM_EMPLOYEERELATED_OBLIG2
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Severance payments actually paid | $226 | $26 | $23 |
Severance pay expenses | 555 | 495 | 425 |
Expected deposits to be made in the next fiscal year for severance and pension payment obligations | 820 | ' | ' |
2014 | 282 | ' | ' |
2015 | 189 | ' | ' |
2016 | 261 | ' | ' |
2017 | 198 | ' | ' |
2018 | 248 | ' | ' |
Thereafter (through 2023) | 800 | ' | ' |
Total | 1,978 | ' | ' |
Limco Piedmont Inc [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
401(K) profit sharing plan contributions made by company | $253 | $209 | $188 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Commissions and Royalty Commitments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commissions arrangements: | ' | ' | ' |
Commission expenses | $781 | $670 | $579 |
Royalty commitments: | ' | ' | ' |
Royalty expense | ' | 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 | 9.00% | ' | ' |
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 | 400 | 232 | 201 |
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% | ' | ' |
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% | ' | ' |
Bental Industries Ltd. [Member] | ' | ' | ' |
Royalty commitments: | ' | ' | ' |
Amount of royalty bearing grants due to the Chief Scientist | ' | $86 | ' |
Bental Industries Ltd. [Member] | Minimum [Member] | ' | ' | ' |
Royalty commitments: | ' | ' | ' |
Royalties percentage rate owed to the Israeli government | 2.00% | ' | ' |
Bental Industries Ltd. [Member] | Maximum [Member] | ' | ' | ' |
Royalty commitments: | ' | ' | ' |
Royalties percentage rate owed to the Israeli government | 3.50% | ' | ' |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Lease Commitments) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Lease commitments: | ' | ' | ' |
Lease expenses | $424,000 | $416,000 | $408,000 |
Future minimum rental payments under non-cancelable operating leases, due 2014 | 636,000 | ' | ' |
Future minimum rental payments under non-cancelable operating leases, due 2015 | 646,000 | ' | ' |
Future minimum rental payments under non-cancelable operating leases, due 2016 | 623,000 | ' | ' |
Future minimum rental payments under non-cancelable operating leases, due 2017 | 534,000 | ' | ' |
Future minimum rental payments under non-cancelable operating leases, due 2018 | 468,000 | ' | ' |
Future minimum rental payments under non-cancelable operating leases, due 2019 and thereafter | 964,000 | ' | ' |
Total future minimum rental payments under non-cancelable operating leases | 3,871,000 | ' | ' |
TAT Technologies Ltd [Member] | Maximum [Member] | ' | ' | ' |
Lease commitments: | ' | ' | ' |
Lease expiration date | 31-Dec-20 | ' | ' |
Limco Piedmont Inc [Member] | ' | ' | ' |
Lease commitments: | ' | ' | ' |
Lease expense | 215,000 | 233,000 | 239,000 |
Limco Piedmont Inc [Member] | Minimum [Member] | ' | ' | ' |
Lease commitments: | ' | ' | ' |
Monthly rent payments owed on leased properties | 3,500 | ' | ' |
Limco Piedmont Inc [Member] | Maximum [Member] | ' | ' | ' |
Lease commitments: | ' | ' | ' |
Monthly rent payments owed on leased properties | $8,000 | ' | ' |
Lease expiration date | 31-Dec-17 | ' | ' |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES (Legal Claims Contingencies) (Details) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | ILS | |
Legal claims contingencies | ' | ' |
Damages being sought in litigation matter | $1,620 | 6,151 |
COMMITMENTS_AND_CONTINGENT_LIA5
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
TAT Technologies Ltd [Member] | ' |
Guarantees: | ' |
Bank guarantee to secure liability to Israeli customs | $241 |
Limco Piedmont Inc [Member] | ' |
Guarantees: | ' |
Guarantee provided by Piedmont in respect of FAVS debt | $4,600 |
COMMITMENTS_AND_CONTINGENT_LIA6
COMMITMENTS AND CONTINGENT LIABILITIES (Covenants and Liens on Assets) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | TAT Technologies Ltd [Member] | Limco Piedmont Inc [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] |
Long-term loan Two [Member] | USD ($) | Long-term loan One [Member] | Long-term loan One [Member] | Long-term loan One [Member] | Long-term loan One [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | Long-term loan Two [Member] | ||||
USD ($) | USD ($) | ILS | USD ($) | ILS | USD ($) | USD ($) | ILS | |||||
Covenants And Liens On Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum tangible net worth required by line of credit covenants | ' | ' | ' | ' | $51,500 | ' | ' | ' | ' | ' | ' | ' |
Actual tangible net worth for the period | ' | ' | ' | ' | 51,533 | ' | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio required by line of credit covenants | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Actual maximum leverage ratio for the period | ' | ' | ' | ' | 0.18 | ' | ' | ' | ' | ' | ' | ' |
Minimum net financial assets required by line of credit covenants | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Actual net financial assets for the period | ' | ' | ' | ' | 20,667 | ' | ' | ' | ' | ' | ' | ' |
Original value of loans secured by bank | ' | ' | ' | ' | ' | 1,185 | ' | ' | ' | ' | ' | ' |
Current loan balance | 884 | 3,670 | 4,702 | 2,477 | ' | 248 | ' | 523 | ' | 884 | ' | ' |
Restricted deposits | ' | ' | ' | ' | 2,300 | ' | ' | ' | ' | ' | ' | ' |
Actual shareholders' equity for the period | 85,569 | 82,233 | ' | ' | ' | ' | ' | ' | ' | ' | 9,335 | 34,800 |
Maximum EBITDA ratio required by the secured bank loan covenants | ' | ' | ' | ' | ' | 3 | 3 | 3 | 3 | ' | ' | ' |
Actual EBITDA ratio for the period | ' | ' | ' | ' | ' | 7.2 | 7.2 | -2.4 | -2.4 | ' | ' | ' |
Minimum tangible shareholders' equity required under secured bank loan covenants | ' | ' | ' | ' | ' | 5,760 | 20,000 | 5,300 | 20,000 | ' | ' | ' |
Minimum tangible shareholders' equity to total assets ratio required by secured bank loan covenants | ' | ' | ' | ' | ' | 30.00% | 30.00% | 30.00% | 30.00% | ' | ' | ' |
Actual tangible shareholders' equity for the period | ' | ' | ' | ' | ' | $9,789 | 34,000 | $9,335 | 34,800 | ' | ' | ' |
Actual tangible shareholders' equity to total assets ratio for the period | ' | ' | ' | ' | ' | 74.00% | 74.00% | 70.00% | 70.00% | ' | ' | ' |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) | 1 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Apr. 30, 2012 | Apr. 22, 2012 | Apr. 22, 2012 |
USD ($) | ILS | ||
Shareholders Equity [Line Items] | ' | ' | ' |
Cash dividend declared, amount | ' | $2.50 | 9.4 |
Cash dividend declared, value per share | ' | $0.28 | 1.065 |
Cash dividend declared, declaration date | 22-Apr-12 | ' | ' |
Cash dividend declared, record date | 3-May-12 | ' | ' |
Cash dividend declared, payment date | 17-May-12 | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Total consideration paid for shares repurchased | ' | ' | -70 | ' |
Exercise of options, shares | ' | 6,666 | ' | ' |
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 | $4.29 | ' | ' | ' |
Balance, shares | ' | 8,798,570 | 8,815,003 | 8,815,003 |
Exercise of options, shares | ' | 6,666 | ' | ' |
Purchase of treasury shares | 16,433 | ' | -16,433 | ' |
Balance, shares | ' | 8,805,236 | 8,798,570 | 8,815,003 |
SHAREHOLDERS_EQUITY_Stock_Opti
SHAREHOLDERS' EQUITY (Stock Option Plans TAT Technology) (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Aug. 14, 2008 | Aug. 14, 2008 | Aug. 14, 2008 | Aug. 14, 2008 | Aug. 14, 2008 | Aug. 14, 2008 | Oct. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 28, 2012 | Jun. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | ILS | ILS | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer Series A [Member] | Chief Executive Officer Series A [Member] | Chief Executive Officer Series B [Member] | Chief Executive Officer Series B [Member] | Chief Executive Officer Series C [Member] | Chief Executive Officer Series C [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | 2012 Plan [Member] | |
USD ($) | ILS | USD ($) | ILS | USD ($) | ILS | USD ($) | USD ($) | USD ($) | USD ($) | ILS | Minimum [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 380,000 | 380,000 | ' | ' |
Vesting period for plan | ' | ' | ' | ' | ' | ' | '2 years | ' | '3 years | ' | '4 years | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, par value per share | ' | ' | 0.9 | 0.9 | ' | ' | ' | 0.9 | ' | 0.9 | ' | 0.9 | ' | ' | ' | ' | ' | ' | 0.9 | ' | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.50 | ' | ' | ' |
Expected volatility | ' | ' | ' | ' | ' | ' | 6.15% | ' | 6.15% | ' | 6.15% | ' | ' | ' | ' | ' | ' | ' | ' | 41.57% | 43.40% |
Expected life of option, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 2 months 23 days | '3 years 2 months 23 days |
Average risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.23% | 0.32% |
Expected dividend yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.80% | ' | ' | ' | ' | ' |
Number of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Expired | ' | ' | ' | ' | -43,652 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Forfeited | -133,334 | ' | ' | ' | ' | -21,825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | -6,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, ending | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of year | 24,167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Forfeited | $6.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | $6.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, ending | $6.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of year | $6.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted | ' | $0.19 | ' | ' | ' | ' | $2.69 | ' | $2.90 | ' | $3.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $212,000 | $0 | $0 | ' | ' | ' | ' |
Plan compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | 8,000 | -37,000 | ' | ' | ' | ' |
Unrecognized compensation cost related to non-vested stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17,800 | $46,900 | ' | ' | ' | ' | ' |
Unrecognized compensation weighted average period of recognition, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 15 days | ' | ' | ' | ' | ' | ' |
Period in which equity exceeds threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Numerator for EPS: | ' | ' | ' | |||
Income (loss) from continuing operations | $5,251 | ($567) | ($482) | |||
Net loss from discontinued operations, net of tax | ($2,429) | ($1,147) | ($548) | |||
Denominator for EPS: | ' | ' | ' | |||
Weighted average number of shares outstanding - Basic | 8,799,237 | 8,808,075 | 8,815,003 | |||
Dilutive shares | 9,683 | ' | ' | |||
Weighted average number of shares outstanding - Diluted | 8,808,920 | [1] | 8,808,075 | [1] | 8,815,003 | [1] |
EPS attributable to controlling interest: Basic and diluted | ' | ' | ' | |||
Net income (loss) from continuing operations | $0.60 | ($0.06) | ($0.05) | |||
Loss from discontinued operations | ($0.28) | ($0.13) | ($0.07) | |||
[1] | Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans. |
TAXES_ON_INCOME_Narrative_Deta
TAXES ON INCOME (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2013 | Dec. 31, 2016 | 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% | ' | ' |
Statutory tax rate in Israel | ' | ' | ' | 26.50% | 25.00% | 25.00% | 24.00% |
Amended provision (benefit) at domestic statutory rate | ' | 18.00% | 20.00% | 21.00% | 22.00% | 23.00% | ' |
Statutory tax rate changes | ' | ' | ' | ' | 25.00% | ' | ' |
U.S. subsidiaries tax rate, federal and state | ' | ' | ' | 38.00% | 38.00% | 38.00% | ' |
Accumulated tax exempt income | ' | ' | ' | ' | $0 | ' | ' |
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 | ' | ' | ' | ' | 9,700,000 | ' | ' |
Tat Technologies Ltd and Bental Industries Ltd [Member] | ' | ' | ' | ' | ' | ' | ' |
Income Taxes Line Items | ' | ' | ' | ' | ' | ' | ' |
Tax rate on transactions | ' | ' | ' | ' | 25.00% | ' | ' |
Bental Industries Ltd. [Member] | ' | ' | ' | ' | ' | ' | ' |
Income Taxes Line Items | ' | ' | ' | ' | ' | ' | ' |
Preferred Income tax rate for Development Zone A | ' | ' | ' | 9.00% | 7.00% | 10.00% | 10.00% |
Accumulated tax exempt income | ' | ' | ' | ' | $7,750,000 | ' | ' |
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 | Dec. 31, 2011 |
TAXES ON INCOME [Abstract] | ' | ' | ' | ' |
Income / (Loss) before Income Taxes | ' | $5,267 | $5,279 | ($1,148) |
Statutory tax rate in Israel | 26.50% | 25.00% | 25.00% | 24.00% |
Theoretical taxes on income (tax benefit) | ' | 1,317 | 1,320 | -276 |
Increase (decrease) in taxes on income resulting from: | ' | ' | ' | ' |
Tax adjustment for foreign subsidiaries subject to a different tax rate | ' | 453 | 434 | -73 |
Reduced tax rate on income derived from "Preferred Enterprises" plans | ' | -255 | -143 | 103 |
Change in enacted tax rates | ' | 34 | ' | ' |
Exempt income | ' | ' | -4 | -10 |
Valuation allowance | ' | 294 | 499 | ' |
Tax in respect of prior years | ' | -342 | -83 | -24 |
Permanent differences | ' | -460 | 67 | -55 |
Taxes on income (tax benefit) as reported in the statements of income (loss) | ' | $1,041 | $2,090 | ($335) |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXES ON INCOME [Abstract] | ' | ' | ' |
Domestic (Israel) | $1,942 | $2,046 | $1,547 |
Foreign (United States) | 3,325 | 3,233 | -2,695 |
Loss before taxes on income | $5,267 | $5,279 | ($1,148) |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Domestic (Israel) | $160 | $282 | $373 |
Foreign (United States) | 334 | 295 | 213 |
Total current | 494 | 577 | 586 |
Deferred: | ' | ' | ' |
Domestic (Israel) | 15 | 115 | 245 |
Foreign (United States) | 874 | 1,481 | -1,142 |
Total deferred | 889 | 1,596 | -897 |
Previous Years: | ' | ' | ' |
Domestic (Israel) | -209 | -45 | -71 |
Foreign (United States) | -133 | -38 | 47 |
Total previous years | -342 | -83 | -24 |
Taxes on income (tax benefit) as reported in the statements of income (loss) | $1,041 | $2,090 | ($335) |
TAXES_ON_INCOME_Schedule_of_De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
In Thousands, unless otherwise specified | |||||
Deferred tax assets (liabilities): | ' | ' | ' | ' | |
Allowance for doubtful accounts | $47 | $133 | ' | ' | |
Unrealized gains | 146 | 131 | ' | ' | |
Provisions for employee benefits | 277 | 270 | ' | ' | |
Inventory | 920 | 1,171 | ' | ' | |
Other temporary differences | 199 | 417 | ' | ' | |
Deferred tax assets - short-term- other accounts receivables | 1,589 | [1] | 2,122 | ' | ' |
Goodwill and intangible assets | 671 | 884 | ' | ' | |
Property, plant and equipment | 18 | 707 | ' | ' | |
Provisions for employee benefits and other temporary differences | 38 | 64 | ' | ' | |
Tax credits carryforward | 447 | 274 | ' | ' | |
Capital and state tax losses carryforward | 3,306 | 1,823 | ' | ' | |
Net operating losses carryforward | 419 | 606 | ' | ' | |
Other | 23 | ' | ' | ' | |
Deferred tax assets, before valuation allowance - Long-term | 4,922 | 4,358 | ' | ' | |
Valuation allowance | -3,306 | -1,823 | -184 | -200 | |
Deferred tax assets, net - Long-term | 1,616 | 2,535 | ' | ' | |
Other temporary differences deferred tax liabilities - short-term- other accounts payable | -40 | [1] | -126 | ' | ' |
Property, plant and equipment and intangible assets | -1,003 | -1,457 | ' | ' | |
Other | -55 | -33 | ' | ' | |
Deferred tax Liabilities - Long-term | ($1,058) | ($1,490) | ' | ' | |
[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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in Valuation Allowance | ' | ' | ' |
Balance | $1,823 | $184 | $200 |
Addition charged to expenses (Deductions) | 1,483 | 1,639 | -16 |
Balance | 3,306 | 1,823 | 184 |
Investments In Foreign Subsidiaries And Foreign Corporate Joint Ventures That Are Permanent In Nature [Member] | ' | ' | ' |
Changes in Valuation Allowance | ' | ' | ' |
Undistributed earnings of foreign subsidiaries | 11,400 | ' | ' |
The amount of deferred tax liability that would be recorded if foreign earnings were distributed by cash dividend | 2,850 | ' | ' |
Tax rate on recognized foreign earnings dividends | 25.00% | ' | ' |
Approved Enterprise [Member] | ' | ' | ' |
Changes in Valuation Allowance | ' | ' | ' |
Undistributed earnings of foreign subsidiaries | 9,700 | ' | ' |
The amount of deferred tax liability that would be recorded if foreign earnings were distributed by cash dividend | $2,425 | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXES ON INCOME [Abstract] | ' | ' | ' |
Unrecognized tax benefits, beginning | $84 | $86 | $84 |
Exchange rate differences | ' | -2 | 2 |
Exchange rate differences | 6 | ' | ' |
Utilization upon assessment | -90 | ' | ' |
Unrecognized tax benefits, ending | ' | 84 | 86 |
Unrecognized tax benefits that would impact effective tax rate, if recognized | ($84) | ($2) | $2 |
SEGMENT_INFORMATION_Schedule_o
SEGMENT INFORMATION (Schedule of Operating Income By Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | $79,551 | $77,915 | $73,739 |
Cost of revenues | 60,879 | 58,539 | 56,708 |
Write down of inventory and impairment charges of long lived assets | ' | ' | 5,465 |
Gross profit | 18,672 | 19,376 | 11,566 |
Research and development, net | 713 | 995 | 455 |
Selling and marketing | 3,150 | 2,899 | 2,819 |
General and administrative | 9,512 | 10,110 | 9,450 |
Other income | -20 | -13 | -190 |
Operating income (loss) from continuing operations | 5,317 | 5,385 | -968 |
Income (loss) from continuing operations before taxes on income | 5,267 | 5,279 | -1,148 |
Sale of Products and Services [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | 79,551 | 77,915 | 85,397 |
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 | 31,138 | 31,032 | 30,020 |
Cost of revenues | 24,141 | 23,105 | 22,662 |
Write down of inventory and impairment charges of long lived assets | ' | ' | ' |
Gross profit | 6,997 | 7,927 | 7,358 |
Research and development, net | 415 | 581 | 455 |
Selling and marketing | 1,520 | 1,476 | 1,202 |
General and administrative | 3,158 | 3,530 | 3,789 |
Other income | -20 | -13 | -190 |
Operating income (loss) from continuing operations | 1,924 | 2,353 | 2,102 |
Financial income (expenses), net | ' | ' | ' |
Other expenses | ' | ' | ' |
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 | 27,326 | 27,944 | 25,993 |
OEM of Heat Management Solutions [Member] | Intersegment Revenues [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | 3,812 | 3,088 | 4,027 |
OEM - Electric Motion Systems [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | ' | 10,008 | 11,658 |
Cost of revenues | ' | 8,043 | 9,388 |
Gross profit | ' | 1,965 | 2,270 |
Research and development, net | ' | 157 | 331 |
Selling and marketing | ' | 527 | 619 |
General and administrative | ' | 1,377 | 1,499 |
Other income | ' | 21 | 21 |
Operating income (loss) from continuing operations | ' | -117 | -200 |
OEM - Electric Motion Systems [Member] | Sale of Products and Services [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | ' | 10,008 | 11,658 |
OEM - Electric Motion Systems [Member] | Intersegment Revenues [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | ' | ' | ' |
Heat Transfer Services and Products [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | 29,907 | 27,709 | 27,603 |
Cost of revenues | 21,600 | 19,671 | 20,173 |
Write down of inventory and impairment charges of long lived assets | ' | ' | ' |
Gross profit | 8,307 | 8,038 | 7,430 |
Research and development, net | 298 | 414 | ' |
Selling and marketing | 1,145 | 1,049 | 1,026 |
General and administrative | 3,093 | 3,270 | 3,035 |
Impairment of goodwill and other intangible assets | ' | ' | ' |
Other income | ' | ' | ' |
Operating income (loss) from continuing operations | 3,771 | 3,305 | 3,369 |
Financial income (expenses), net | ' | ' | ' |
Other expenses | ' | ' | ' |
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 | 29,706 | 27,529 | 27,600 |
Heat Transfer Services and Products [Member] | Intersegment Revenues [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | 111 | 180 | 3 |
MRO services for Aviation Components [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | 22,429 | 22,442 | 20,146 |
Cost of revenues | 19,224 | 19,044 | 17,882 |
Write down of inventory and impairment charges of long lived assets | ' | ' | 5,465 |
Gross profit | 3,205 | 3,398 | -3,201 |
Research and development, net | ' | ' | ' |
Selling and marketing | 485 | 374 | 591 |
General and administrative | 3,261 | 3,310 | 2,626 |
Impairment of goodwill and other intangible assets | ' | ' | ' |
Other income | ' | ' | ' |
Operating income (loss) from continuing operations | -541 | -286 | -6,418 |
Financial income (expenses), net | ' | ' | ' |
Other expenses | ' | ' | ' |
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 | 22,429 | 22,442 | 20,146 |
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 | ' | ' | ' |
Write down of inventory and impairment charges of long lived assets | ' | ' | ' |
Gross profit | ' | ' | ' |
Research and development, net | ' | ' | ' |
Selling and marketing | ' | ' | ' |
General and administrative | ' | ' | ' |
Impairment of goodwill and other intangible assets | ' | ' | ' |
Other income | ' | ' | ' |
Operating income (loss) from continuing operations | ' | ' | ' |
Financial income (expenses), net | 50 | -106 | -420 |
Other expenses | ' | ' | ' |
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 | -3,923 | -3,268 | -4,030 |
Cost of revenues | -4,086 | -3,281 | -4,009 |
Write down of inventory and impairment charges of long lived assets | ' | ' | ' |
Gross profit | 163 | 13 | -21 |
Research and development, net | ' | ' | ' |
Selling and marketing | ' | ' | ' |
General and administrative | ' | ' | ' |
Impairment of goodwill and other intangible assets | ' | ' | ' |
Other income | ' | ' | ' |
Operating income (loss) from continuing operations | 163 | 13 | -21 |
Financial income (expenses), net | ' | ' | ' |
Other expenses | ' | ' | ' |
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 | -3,923 | -3,268 | -4,030 |
Adjustment To Consolidated Financial Statements [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | ' | -10,008 | -11,658 |
Cost of revenues | ' | -8,043 | -9,388 |
Gross profit | ' | -1,965 | -2,270 |
Research and development, net | ' | -157 | -331 |
Selling and marketing | ' | -527 | -619 |
General and administrative | ' | -1,377 | -1,499 |
Impairment of goodwill and other intangible assets | ' | ' | ' |
Other income | ' | -21 | -21 |
Operating income (loss) from continuing operations | ' | 117 | 200 |
Adjustment To Consolidated Financial Statements [Member] | Sale of Products and Services [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | ' | -10,008 | -11,658 |
Adjustment To Consolidated Financial Statements [Member] | Intersegment Revenues [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Revenues | ' | ' | ' |
SEGMENT_INFORMATION_Schedule_o1
SEGMENT INFORMATION (Schedule of Assets By Segment) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | $108,880,000 | $108,942,000 | $116,311,000 | |||
Assets less assets held for sale | 98,889,000 | ' | ' | |||
Depreciation and amortization | 1,859,000 | [1] | 1,906,000 | [1] | 2,618,000 | [1] |
Expenditure for segment assets | 2,830,000 | [1] | 2,147,000 | [1] | 2,953,000 | [1] |
OEM of Heat Management Solutions [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 45,518,000 | 34,315,000 | 34,055,000 | |||
Depreciation and amortization | 991,000 | [1] | 974,000 | [1] | 1,139,000 | [1] |
Expenditure for segment assets | 992 | [1] | 1,047,000 | [1] | 924,000 | [1] |
Goodwill | ' | ' | ' | |||
OEM - Electric Motion Systems [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | ' | 12,707,000 | 13,941,000 | |||
Depreciation and amortization | ' | [1] | ' | [1] | ' | [1] |
Expenditure for segment assets | ' | [1] | ' | [1] | ' | [1] |
Heat Transfer Services and Products [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 28,806,000 | 27,093,000 | 27,464,000 | |||
Depreciation and amortization | 603,000 | [1] | 735,000 | [1] | 758,000 | [1] |
Expenditure for segment assets | 664,000 | [1] | 756,000 | [1] | 638,000 | [1] |
MRO services for Aviation Components [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 18,137,000 | 18,473,000 | 21,068,000 | |||
Depreciation and amortization | 265,000 | [1] | 197,000 | [1] | 721,000 | [1] |
Expenditure for segment assets | 584,000 | [1] | 344,000 | [1] | 1,391,000 | [1] |
Amounts not allocated to segments [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 16,419,000 | 16,354,000 | 19,783,000 | |||
Depreciation and amortization | ' | [1] | ' | [1] | ' | [1] |
Expenditure for segment assets | ' | [1] | ' | [1] | ' | [1] |
Goodwill | ' | ' | ' | |||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. |
ENTITYWIDE_DISCLOSURE_Details
ENTITY-WIDE DISCLOSURE (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Total revenues - sales of products | $34,364 | [1] | $36,263 | [1] | $36,837 | [1] |
Total revenues - services | 45,187 | 41,652 | 36,902 | |||
Long-lived assets - sale of products | 5,748 | [2] | 8,417 | 8,528 | ||
Long-lived assets - service revenues | 5,399 | 4,493 | 4,325 | |||
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 | 6,248 | [1] | 9,147 | [1] | 8,218 | [1] |
Total revenues - services | 612 | 468 | 384 | |||
Long-lived assets - sale of products | 5,748 | [2] | 8,417 | 8,528 | ||
Long-lived assets - service revenues | ' | ' | ' | |||
Unites States [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Total revenues - sales of products | 18,016 | [1] | 16,475 | [1] | 21,495 | [1] |
Total revenues - services | 27,639 | 25,648 | 25,416 | |||
Long-lived assets - sale of products | ' | ' | ' | |||
Long-lived assets - service revenues | 5,399 | 4,493 | 4,325 | |||
France [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Total revenues - sales of products | 5,482 | [1] | 4,604 | [1] | 3,264 | [1] |
Long-lived assets - sale of products | ' | ' | ' | |||
Netherland [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Total revenues - services | 1,553 | 3,303 | 4,378 | |||
Long-lived assets - service revenues | ' | ' | ' | |||
Rest of Europe [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Total revenues - sales of products | 2,292 | [1] | 1,966 | [1] | 2,507 | [1] |
Total revenues - services | 7,658 | 4,624 | 3,875 | |||
Long-lived assets - sale of products | ' | ' | ' | |||
Long-lived assets - service revenues | ' | ' | ' | |||
Other [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Total revenues - sales of products | 2,326 | [1] | 4,071 | [1] | 1,353 | [1] |
Total revenues - services | 7,725 | 7,609 | 2,849 | |||
Long-lived assets - sale of products | ' | ' | ' | |||
Long-lived assets - service revenues | ' | ' | ' | |||
[1] | Excluding discontinued operations for each of the years ended on December 31, 2013, 2012 and 2011. | |||||
[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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial income: | ' | ' | ' |
Foreign currency gains | $661 | $1,294 | $1,108 |
Derivatives | 27 | 399 | 352 |
Tax refund | 95 | 53 | 71 |
Interest on cash equivalents, short-term bank deposits and others | 114 | 242 | 172 |
Total financial income | 897 | 1,988 | 1,703 |
Financial expenses: | ' | ' | ' |
Bank charges | -77 | -71 | -74 |
Interest on short-term loans | -18 | -98 | -98 |
Interest on long-term loans | -66 | -120 | -148 |
Foreign currency losses | -786 | -1,376 | -1,149 |
Derivatives | ' | -321 | -642 |
Others | ' | -108 | -12 |
Total financial expenses | -947 | -2,094 | -2,123 |
Financial income (expenses), net | ($50) | ($106) | ($420) |
SUPPLEMENTAL_CONSOLIDATED_BALA2
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Warranty provision [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance, beginning | $276 | $288 | $341 |
Additions | 186 | 196 | 169 |
Utilization | -190 | 208 | 222 |
Write-offs, net of recoveries | ' | ' | ' |
Less: Held for sale | -43 | ' | ' |
Balance, ending | 229 | 276 | 288 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance, beginning | 376 | 190 | 2,419 |
Additions | 17 | 258 | 31 |
Utilization | ' | ' | ' |
Write-offs, net of recoveries | -270 | -72 | 2,260 |
Balance, ending | $123 | $376 | $190 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2012 | Dec. 31, 2013 | Apr. 22, 2012 | Apr. 22, 2012 | Mar. 19, 2014 | Mar. 19, 2014 |
USD ($) | USD ($) | ILS | Subsequent Event [Member] | Subsequent Event [Member] | ||
USD ($) | ILS | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Cash dividend declared, value per share | ' | ' | $0.28 | 1.065 | $0.23 | 0.79 |
Cash dividend declared, declaration date | 22-Apr-12 | ' | ' | ' | 19-Mar-14 | ' |
Cash dividend declared, record date | 3-May-12 | ' | ' | ' | 21-Apr-14 | ' |
Cash dividend declared, payment date | 17-May-12 | ' | ' | ' | 7-May-14 | ' |
Cash dividend declared, amount | ' | ' | $2,500 | 9,400 | $2,000 | 6,970 |
Granted, shares | ' | ' | ' | ' | 195,000 | ' |
Stock options granted, exercise price | ' | ' | ' | ' | $8.79 | ' |