TAT Technologies (TATT) 20-F 14 Mar 22 2021 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2021shares
Entity Addresses [Line Items]
Entity Central Index Key	0000808439
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	0-16050
Entity Registrant Name	TAT TECHNOLOGIES LTD
Entity Incorporation, State or Country Code	IL
Entity Address, Address Line One	Giborei Israel 7
Entity Address, City or Town	Netanya
Entity Address, Postal Zip Code	4250407
Entity Address Country	IL
Title of 12(b) Security	Ordinary Shares, NIS 0.90 Par Value
Trading Symbol	TATT
Name of Exchange on which Security is Registered	NASDAQ
Entity Common Stock, Shares Outstanding	8,874,696
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Auditor Attestation Flag	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Name	Kesselman & Kesselman
Auditor Location	Tel-Aviv, Israel
Auditor Firm Id	1309
Business Contact [Member]
Entity Addresses [Line Items]
Contact Personnel Name	Ehud Ben-Yair
Contact Personnel Email Address	ehudb@tat-technologies.com
Entity Address, Address Line One	7 Giborei Israel St
Entity Address, City or Town	Natanya
Entity Address, Postal Zip Code	4250407
Entity Address Country	IL
City Area Code	972
Local Phone Number	54-4522565

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents		$ 12,872	$ 24,128
Accounts receivable, net of allowance for credit losses of $389 and $306 thousands as of December 31, 2021 and December 31, 2020 respectively		13,887	11,355
Inventory, net	[1]	41,003	41,223
Other current assets and prepaid expenses		4,219	2,737
Total current assets		71,981	79,443
NON-CURRENT ASSETS:
Restricted deposit		343	176
Investment in affiliates		695	771
Funds in respect of employee rights upon retirement		1,157	1,186
Deferred income taxes		1,252	566
Property, plant and equipment, net		30,462	25,737
Operating lease right of use assets		3,114	6,767
Intangible assets, net		1,829	1,475
Total non-current assets		38,852	36,678
Total assets		110,833	116,121
CURRENT LIABILITIES:
Current maturities of long-term loans		691	1,477
Credit line from bank		6,008	3,000
Accounts payable		9,093	12,222
Accrued expenses		6,959	6,691
Operating lease liabilities		1,169	1,614
Provision for restructuring plan		657
Liabilities belong to discontinued operation			179
Total current liabilities		24,577	25,183
NON-CURRENT LIABILITIES:
Long-term loans		5,979	3,489
Liability in respect of employee rights upon retirement		1,504	1,410
Operating lease liabilities		1,989	5,758
Total non-current liabilities		9,472	10,657
COMMITMENTS AND CONTINGENCIES (NOTE 15)
Total liabilities		34,049	35,840
EQUITY:
Ordinary shares of NIS 0.9 par value: Authorized: 13,000,000 shares at December 31, 2021 and at December 31, 2020; Issued: 9,149,169 shares at December 31, 2021 and at December 31, 2020; Outstanding: 8,874,696 shares at December 31, 2021 and at December 31, 2020		2,809	2,809
Additional paid-in capital		65,871	65,711
Treasury shares, at cost, 274,473 shares at December 31, 2021 and 2020		(2,088)	(2,088)
Accumulated other comprehensive income		33	128
Retained earnings		10,159	13,721
Total shareholders' equity		76,784	80,281
Total liabilities and shareholders' equity		$ 110,833	$ 116,121
[1]	The total amount of Rotables included in the company spare parts inventory for the years ended December 31, 2021 and 2020 were $8,623 and $9,183, respectively.

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) $ in Thousands	Dec. 31, 2021USD ($)shares	Dec. 31, 2020USD ($)shares
Statement of Financial Position [Abstract]
Allowance for credit loss, current | $	$ 389	$ 306
Ordinary shares, shares authorized	13,000,000	13,000,000
Ordinary shares, shares issued	9,149,169	9,149,169
Ordinary shares, shares outstanding	8,874,696	8,874,696
Treasury shares, shares	274,473	274,473

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue:
Total revenues	$ 77,973	$ 75,359	$ 97,479
Cost of revenue:
Total cost of revenues	66,703	66,924	82,179
Gross profit	11,270	8,435	15,300
Operating expenses:
Research and development, net	517	185	113
Selling and marketing	5,147	4,369	4,929
General and administrative	8,354	7,612	7,654
Other (income) expenses	(468)	315
Restructuring expenses, net	1,755
Total operating expenses	15,305	12,481	12,696
Operating income (loss)	(4,035)	(4,046)	2,604
Financial expenses	(683)	(999)	(1,270)
Financial income	143	229	848
Income (loss) before taxes on income (tax benefit)	(4,575)	(4,816)	2,182
Taxes on income (tax benefit)	(662)	(1,517)	589
Income (loss) before share of equity investment	(3,913)	(3,299)	1,593
Share in results of equity investment of affiliated companies	(76)	(185)	(132)
Net income (loss) from continued operation	(3,989)	(3,484)	1,461
Net income (loss) from discontinued operation	427	(1,845)	(655)
Net income (loss)	$ (3,562)	$ (5,329)	$ 806
Net income (loss) per share basic and diluted from continued operation	$ (0.45)	$ (0.39)	$ 0.17
Net income (loss) per share basic and diluted from discontinued operation	0.05	(0.21)	(0.07)
Net income (loss) per share basic and diluted	$ (0.4)	$ (0.6)	$ 0.1
Weighted average number of shares outstanding:
Basic and diluted	8,874,696	8,874,696	8,874,696
Product [Member]
Revenue:
Total revenues	$ 25,870	$ 22,739	$ 25,019
Cost of revenue:
Total cost of revenues	23,761	20,751	21,557
Service [Member]
Revenue:
Total revenues	52,103	52,620	72,460
Cost of revenue:
Total cost of revenues	$ 42,942	$ 46,173	$ 60,622

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (3,562)	$ (5,329)	$ 806
Other comprehensive income (loss), net
Net unrealized gains (losses) from derivatives	(76)	232	372
Reclassification adjustments for gains from derivatives included in net income	(19)	(130)	(140)
Total other comprehensive income (loss)	(95)	102	232
Total comprehensive income (loss)	$ (3,657)	$ (5,227)	$ 1,038

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) $ in Thousands	Ordinary shares [Member]	Additional paid-in capital [Member]	Accumulated other comprehensive income (loss) [Member]	Treasury shares [Member]	Retained earnings [Member]	Total
Balance at Dec. 31, 2018	$ 2,809	$ 65,535	$ (206)	$ (2,088)	$ 18,244	$ 84,294
Balance, shares at Dec. 31, 2018	9,122,501
Comprehensive income (loss)			232		806	1,038
Share based compensation		38				38
Balance at Dec. 31, 2019	$ 2,809	65,573	26	(2,088)	19,050	85,370
Balance, shares at Dec. 31, 2019	9,149,169
Comprehensive income (loss)			102		(5,329)	(5,227)
Share based compensation		138				138
Balance at Dec. 31, 2020	$ 2,809	65,711	128	(2,088)	13,721	80,281
Balance, shares at Dec. 31, 2020	9,149,169
Comprehensive income (loss)			(95)		(3,562)	(3,657)
Share based compensation		160				160
Balance at Dec. 31, 2021	$ 2,809	$ 65,871	$ 33	$ (2,088)	$ 10,159	$ 76,784
Balance, shares at Dec. 31, 2021	9,149,169

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) from continued operations	$ (3,989)	$ (3,484)	$ 1,461
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,881	4,065	4,292
Gain from change in fair value of derivatives	(19)	(34)	(311)
Non cash finance expense	(73)	566	354
Lease modification	(1,315)
Provision for restructuring expenses (see note 9)	657
Change in provision for doubtful accounts	248	(8)	38
Share in results of affiliated companies	76	185	132
Share based compensation	160	138	38
Liability in respect of employee rights upon retirement	94	(341)	(897)
Impairment of intangible assets		298
Impairment of fixed assets	1,820
Capital gain from sale of fixed assets	(468)
Deferred income taxes, net	(686)	(1,438)	(450)
Government loan forgiveness	(1,442)
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivable	(2,934)	9,472	(2,037)
Decrease (increase) in other current assets and prepaid expenses	(959)	310	2,500
Decrease (increase) in inventory	(681)	1,868	(5,740)
Increase (decrease) in trade accounts payable	2,571	(5,336)	3,349
Increase (decrease) in accrued expenses	(218)	(252)	982
Increase (decrease) in other long-term liabilities	8	(62)	(118)
Net cash provided by (used in) operating activities from continued operation	(2,269)	5,947	3,593
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in affiliated company			(10)
Proceeds from sale of property and equipment	1,163
Purchase of property and equipment	(16,247)	(3,894)	(3,269)
Purchase of intangible assets	(555)	(1,513)
Net cash used in continued investing activities	(15,639)	(5,407)	(3,279)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term credit received from banks	3,000	3,960
Proceeds from long-term loans received	3,042	3,692
Net cash provided by continued financing activities	6,042	7,652
CASH FLOWS FROM DISCONTINUED ACTIVITIES:
Net cash provided by operating activities	777	153	(171)
Net cash used in investing activities			(134)
Net cash provided by (used in) discontinued activities	777	153	(305)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(11,089)	8,345	9
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR	24,304	15,959	15,950
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	13,215	24,304	15,959
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
Purchase of property, plant and equipment on credit	199	6,575	942
Additions of operating lease right-of-use assets and operating lease liabilities	399	1,756	648
Classification inventory to fixed assets	829
Supplemental disclosure of cash flow information:
Interest paid	(251)	(3)	(28)
Income taxes received (paid), net		$ (3)	$ 673

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2021
GENERAL [Abstract]
GENERAL	NOTE 1 - GENERAL a. TAT Technologies Ltd., (“TAT” or the “Company”) an Israeli corporation, incorporated in 1985, is a leading In June 2020, the Company's management decided to discontinue the JT8D engine blades reconditioning activity which belong to “overhaul and coating of jet engine components” segment as part of a strategic change, see note 18. In March 2021, the Company announced on restructuring plan which include transfer the transfer of the company's activity of “OEM of heat transfer solutions and aviation accessories” to our activity of “MRO services for heat transfer components and OEM of heat transfer solutions” in Tulsa, Oklahoma and to our “overhaul and coating of jet engine components” activity in Kiryat Gat, see note 9. The ongoing COVID-19 pandemic outbreak continued to have an adverse effect in 2021 on TAT’s industry and the markets in which TAT operates. The COVID-19 outbreak has significantly impacted the aviation market in which TAT’s customers operate and has resulted in a reduction of TAT’s business with some of these customers. As new variants of COVID-19 emerge, certain countries continue to place restrictions on businesses and travel. Global supply shortages emerged for certain products, leading to delays in delivery schedule. We actively monitor and respond to the changing conditions created by the pandemic, with focus on prioritizing the health and safety of our employees, dedicating resources to support our communities, and innovating to address our customers’ needs. In order to mitigate the impact of the decline in business as a result of the pandemic, TAT implemented measures to reduce its expenses, including a reduction in its headcount as well as other cost savings measures. The company's submitted and received government grants as part of the government support in business that affected from the Covid-19 pandemic. TAT remains cautious as new variants of the virus emerge and many factors remain unpredictable. Given the uncertainties regarding the continued impact of COVID-19 on TAT’s business, there can be no assurance that TAT’s estimates and assumptions used in the measurement of various assets and liabilities in the financial statements will prove to be accurate predictions of the future. b. TAT has the following wholly owned subsidiaries: Limco-Piedmont Inc. (“Limco-Piedmont”), and Turbochrome c. On November 25, 2015, the Company signed an agreement with Russian-based Engineering Holding of Moscow

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES a. Basis of Presentation The Group's financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). b. 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: recoverability of inventory, provision for current expected credit loss and income taxes. F - 13 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) c. Functional currency The majority of the revenues of each subsidiary in the Group are generated in U.S. dollars ("dollars") and a substantial portion of the costs of each subsidiary in the Group are incurred in dollars. Accordingly, the dollar is the currency of the primary economic environment in which the Group operates and accordingly its functional and reporting currency is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in currencies other than the U.S. dollar are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the statements of income (indicated below), the following exchange rates are used: (i) for transactions – exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) – historical exchange rates. Currency transaction gains and losses are carried to financial income or expenses, as appropriate. d. Principles of consolidation The consolidated financial statements include the accounts of TAT and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. e. Cash and Cash equivalents All highly liquid investments, which include short-term bank deposits, 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. F - 14 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) f. Accounts receivable, 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 a provision for current expected losses. Accounts outstanding longer than their original contractual payment terms are considered past due. The Company’s accounts receivables accounting policy until December 31, 2019, prior to the adoption of the new CECL standard Accounts receivables are stated at their net realizable value. The allowance against gross accounts receivables reflects the best estimate of losses inherent in the receivable’s portfolio determined based on historical experience, specific allowances for known troubled accounts and other currently available information. An allowance for doubtful debts is reflected in net accounts receivables. Account’s receivables are written off after all reasonable means to collect the full amount have been exhausted. The Company’s accounts receivables accounting policy from January 1, 2020, following the adoption of the new CECL standard Accounts receivable have been reduced by an allowance for current expected losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-off activity and recoveries for the periods presented were not material. F - 15 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) g. Inventory Inventory is measured at the lower of cost and net realizable value. Inventories include raw materials, parts, work in progress and finished products. Cost of raw material and parts is determined using the “moving average” basis. Cost of work in progress and finished products is calculated based on actual costs. Capitalized production costs components, mainly labor and overhead, are determined on average basis over the production period. If actual market prices are less favorable than those projected by management, inventory write-downs may be required. When inventory written-down, a new lower cost basis for that inventory is established. Since the Group sells products and services related to airplane accessories 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 net realizable value, which includes costs to sell based upon assumptions for future demand and market conditions. F - 16 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) h. Property, plant and equipment Property, plant and equipment are stated at cost, after deduction of the related investment grants, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: Years Buildings and leasehold improvements 15 – 39 Machinery and equipment 15 – 20 Motor vehicles 7 Office furniture and equipment 3 – 5 Software 7 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. During 2021 the Company's management reassessed and updated the useful life of each one of the groups of fixed assets. The change in the estimated useful life was accounted for prospectively in accordance with ASC 250-10. i. Grants from Israel Innovation Authority (IIA): Grants received from the IIA for approved research and development projects are recognized at the time the Company is reasonably assured that it will be entitled to such grants, on the basis of the costs incurred and included as a deduction from research and development expenses. Due to the fact that the Company is defined as a "Traditional Industry Company", under the IIA regulations, the majority of grants are non-royalty bearing. j. Investment in affiliates and share in results of equity investment of affiliated companies 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. See Note 5. The Group reviews those investments for impairment whenever events indicate the carrying amount may not be recoverable. See Note 1(c). On consolidation, transactions between the Group and the affiliate are eliminated in the amount which related to the Group's proportionate share of the affiliate. F - 17 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) k. Leases The Company determines if an arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets are recognized as the lease liability, adjusted for lease incentives received and prepayments made. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term (see also note 2aa). Revenue from Leasing Transactions under ASC 842 The Company accounts for certain leasing revenues in accordance with ASC 842, which qualify for operating lease treatment. For operating leases in which the Company is the lessor, lease payments are recognized as leasing revenue over the lease term on a straight-line basis. APUs engines subject to operating leases are classified as property, plant, and equipment and depreciated on a straight-line basis over the useful life, see Note 7. l. Identified intangible assets Identifiable intangible assets are comprised of definite lived intangible assets - customer relationships and commercial license which are amortized over 7 and 10 years respectively, using the straight-line method over their estimated period of useful life as determined by identifying the period in which substantially all of the cash flows are expected to be generated. Amortization of customer relationships is recorded under selling and marketing expenses (this intangible asset was fully impaired during the year ended December 31, 2020, see note 8) and the amortization of the commercial license is recorded in the cost of sales. m. Impairment of long-lived assets Long-lived assets, including property, plant and equipment, operating lease right of use assets and definite life intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized and the assets (or asset group) would be written down to their estimated fair values (see also notes 6 and 7). n. Treasury Shares Company shares held by the Company are presented as a reduction of equity at their cost to the Company. The treasury shares have no rights. F - 18 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) o. 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. A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. F - 19 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) p. Revenue recognition (cont.) The Company has adopted the following exemptions and accounting policies: a. The Company has chosen to account for shipping as a fulfillment costs, in cases in which the shipping occurs after the customer has obtained control of a good. b. The Company has chosen not to adjust the promised amount of consideration for the effects of a significant financing component, in cases in which the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. c. The Company has chosen to present all sales taxes collected from customers on a net basis. The group recognizes revenues from the sale of OEM products when it satisfies a performance obligation, i.e. when or as the customer obtains control upon product shipment. The Group does not grant a right of return. The Group recognizes revenues from MRO services over time as it satisfies its performance obligations. The Group satisfies its performance, according to required milestones. Contract liabilities Contract liabilities are mainly comprised of deferred revenues which are included under other payables. F - 20 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) q. 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. According to company's experience, most of the warranty costs incur during the first year of the contract. 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 revenue is recognized under accrued expenses on the company’s balance sheet. The Group periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. r. Research and development Research and development costs, net of grants, are charged to expenses as incurred. s. Fair value measurement 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 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. F - 21 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) s. Fair value measurement (cont.) 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. t. Concentrations of credit risk Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, derivatives 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 the 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. As part of the risk management, the company purchased a credit insurance policy from a well-known insurance company. u. 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 it is more likely than not that a portion of the deferred income tax assets will not be realized, see note 17(h). Taxes which would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing the deferred taxes, when the Group’s intention is to hold, and not to realize the investments. Taxes which would apply in the event of distribution of earnings from foreign subsidiaries of the Company, have been taken into account in computing the deferred taxes, when there is a possibility of future distribution of earnings from such foreign subsidiaries. F - 22 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) u. Income taxes (cont.) 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 13(a)), since it intends to permanently reinvest them and has no intention to declare dividends out of such tax exempt income in the foreseeable future. Management considers such retained earnings to be essentially permanent in duration. Results for tax purposes for TAT’s Israeli subsidiaries are measured and reflected in NIS. As explained in (c) above, the consolidated financial statements are measured and presented in U.S. dollars. In accordance with ASC 740, TAT has not provided deferred income taxes on the differences resulting from changes in exchange rate and indexation. The Group follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Group’s policy is to include interest and penalties related to unrecognized tax benefits within financial income (expense). Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date. v. Earnings per share Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of the Company's Ordinary Shares, par value NIS 0.9 per share outstanding for each period. Diluted earnings (loss) per share are calculated by dividing the net income by the fully-diluted weighted-average number of ordinary shares outstanding during each period. Potentially dilutive shares include outstanding options granted to employees and directors, using the treasury stock method. w. Share-based compensation The Group applies ASC 718 "Stock Based Compensation" with respect to employees and directors’ 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 Company estimates forfeitures based on historical experience and anticipated future conditions. F - 23 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) w. Share-based compensation (cont) 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. x. Comprehensive income (loss) Comprehensive income in 2021, 2020 and 2019 includes, in addition to net income or loss, gains and losses of derivatives designated for cash flow hedge accounting (net of related taxes where applicable). Reclassification adjustments for gain or loss of derivatives are included in the relevant line item in the statement of income. See also note 2 (z). F - 24 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) y. 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. Management applies the guidance in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. z. Derivatives and hedging The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. If a derivative does not meet the definition of a cash flow hedge, the changes in the fair value are included in "financial expense (income), net". For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. F - 25 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) aa. Restructuring Costs Restructuring costs have been recorded in connection with TAT’s restructuring plan announced in March 2021. Following this decision and in anticipation of ongoing efficiency measures in our business, TAT’s management has made estimates and judgments regarding future plans, mainly related to employee termination benefit costs. Management also assesses the recoverability of long-lived assets employed in the business. In certain instances, asset lives have been shortened based on changes in the expected useful lives of the affected assets. Asset-related impairments and employee's severance and other related costs are reflected within asset impairments of fixed assets, provision for restructuring plan and restructuring expenses. bb. Recently Issued Accounting Principles: Recently adopted accounting pronouncements: (1) In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes. (Topic In addition, this Update also simplify the accounting for income taxes in certain topics as follows: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2. Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction;3. Specifying that an entity can elect (rather than required to) allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements;4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The new standard does not have a material effect on the Company's financial statements upon adoption. Accounting pronouncements issued but not yet adopted: (1) In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which increases the

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 3 - FAIR VALUE MEASUREMENT Recurring Fair Value Measurements The Group measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments: December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Derivative financial instruments - $ 51 - $ 51 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Derivative financial instruments - $ 128 - $ 128 a. Derivative financial instruments: The company hedges the foreign currency risk arising from probable forecasted Israeli Shekel ("ILS") expenses as part of its risk management policy. The risk management objective is to hedge the foreign currency exchange rate fluctuations associated with ILS denominated forecasted probable expenses according to the company's hedging policy. The majority of the ILS exposure arises from expected related salary expenses. The Company enters into contracts for derivative financial instruments forward contracts in order to execute its policy. Such derivatives are recognized at fair value. The fair value of forward contracts is calculated as the difference between the forward rate on valuation date and the forward rate on the original forward contract, multiplied by the transaction's notional amount. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The hedge effectiveness is assessed at the end of each reporting period. The effective portion and the ineffective portion of the gain or loss on the hedging instrument is recognized as other comprehensive income (loss). The effective portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses-net. F - 27 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 3 - FAIR VALUE MEASUREMENT (CONT) For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. As of December 31, 2021, and 2020, the Company has open forward contracts with a notional total amount of $0 and $3,345, respectively. As of December 31, 2021, the company has open call options and open put options with a notional total amount of $8,458 and $8,858, respectively. The carrying amounts of financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short maturities.

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
INVENTORY	NOTE 4 - INVENTORY Inventory is composed of the following: December 31, 2021 2020 Raw materials and components $ 13,741 $ 11,281 Work in progress 11,985 15,432 Spare parts 13,462 13,147 Finished goods 1,815 1,363 Total inventory (**) $ 41,003 $ 41,223 (**) The total amount of Rotables included in the company spare parts inventory for the years ended December 31, 2021 and 2020 were $8,623 and $9,183, respectively. Inventories write down expenses due to slow inventory amounted to $624, $769 and $490 for the years ended December 31, 2021, 2020 and 2019, respectively. The company maintains a wide range of exchangeable units and other spare parts related to its products and services in various locations. Due to the long lead time of its suppliers and manufacturing cycles, the company needs to forecast demand and commit significant resources towards these inventories. As such, the Company is subject to risks including excess inventory no longer relevant.

INVESTMENT IN AFFILIATES

INVESTMENT IN AFFILIATES	12 Months Ended
	Dec. 31, 2021
Investments in and Advances to Affiliates [Abstract]
INVESTMENT IN AFFILIATES	NOTE 5 - INVESTMENT IN AFFILIATES On November 25, 2015, the Company signed an agreement with Russian-based Engineering Holding of Moscow (“Engineering”), to establish a new facility for the provision of services for heat transfer products. The new company, TAT-Engineering LLC, is based in Novosibirsk’s Tolmachevo airport. TAT-Engineering, LLC shall provide services for heat transfer products. 51% of TAT-Engineering LLC's shares are held by TAT and the remaining 49% are held by Engineering. The accounting treatment of the joint venture is based on the equity method due to variable participating rights granted to Engineering. The new entity was established in January 2016. Summarized financial information of TAT-Engineering LLC: December 31, 2021 2020 Balance sheets: Current assets $ 358 $ 320 Non-current assets 1,091 1,211 Current liabilities 1,154 1,088 Year ended December 31, 2021 2020 2019 Statements of operation: Revenues $ 501 $ 413 $ 877 Gross loss (22 ) (153 ) (228 ) Net loss (148 ) (365 ) (291 ) Net losses attributable to the Company (76 ) (185 ) (132 )

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET Composition of assets, grouped by major classifications, is as follows: December 31, 2021 2020 Cost: Land and buildings $ 18,031 $ 15,762 Machinery and equipment 63,875 57,245 Motor vehicles 302 313 Office furniture and equipment 1,906 1,895 Software 2,123 2,048 86,237 77,263 Less: Accumulated depreciation 55,775 51,526 Depreciated cost $ 30,462 $ 25,737 Depreciation expenses amounted to $4,718 $3,960 and $4,238 for the years ended December 31, 2021, 2020 and 2019, respectively. During 2021, as part of the Company's restructuring plan and departure from Gedera's facility, the company wrote off leasehold improvement assets in total amount of $1.8 million, out of this amount $600 was recognized as restructuring expenses due to impairment in OEM of heat transfer solutions and aviation accessories CGU which exanimated following the company's restructuring plan announcement in March 2021. $1.2 million recognized in cost of sales as an acceleration of amortization due to change in useful life of leasehold improvements assets.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2021
Lessee Disclosure [Abstract]
LEASES	NOTE 7 - LEASES 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 2030 TAT leases its factory in Gedera from TAT Industries until the end of 2024 The lease cost was as follows: Year ended December 31, 2021 Year ended December 31, 2020 Operating lease expenses 2,080 2,158 Supplemental cash flow information related to leases was as follows: Year ended December 31, 2021 Year ended December 31, 2020 Operating cash flows from operating leases 2,226 2,158 Right-of-use assets obtained in exchange for lease obligations (non-cash) 399 1,756 During 2021 the company established a new business unit which provided to the company’s customers leasing services of APU engines. The result of this business unit is reported as part of the company's activity in MRO services for aviation components. F - 30 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 7 - LEASES (CONT) Supplemental balance sheet information related to operating leases is as follows: December 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets 3,114 6,767 Current operating lease liabilities 1,169 1,614 Non-current operating lease liabilities 1,989 5,758 Total operating lease liabilities 3,158 7,372 Weighted Average Remaining Lease Term Operating leases - Israel 2 years 4 years Operating leases – United States 5 years 5 years Weighted Average discount rate Operating leases - Israel 4.5 % 4.5 % Operating leases – United States 4.84 % 4.84 % As of December 31, 2021, the maturities of lease liabilities were as follows: Year Amount 2022 $ 1,221 2023 757 2024 643 2025 241 2026 241 2027 and after 182 Total lease payments 3,285 Less imputed interest (127 ) Total $ 3,158

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 8 - INTANGIBLE ASSETS Intangible assets: December 31, 2021 2020 Customer relationships Cost $ - $ 671 Impairment - (298 ) Accumulated amortization - (373 ) Amortized cost $ - $ - The COVID-19 pandemic and the significant reduction in the reconditioning and coating segment (“Turbochrome”) business during 2020 were a trigger event for impairment of the customer relationships asset. The Company believes there will be no future economic benefits that will be derived from the customers attributed to this intangible asset. Therefore, the Company wrote off the amortized cost related to the customer relationships. The write off expenses recorded in 2020 P&L under Other Expenses. December 31, 2021 2020 Commercial license Cost $ 2,030 $ 1,513 Accumulated amortization (201 ) (38 ) Amortized cost $ 1,829 $ 1,475 On September 2020 Piedmont signed a 10 years agreement for the commercial MRO services for aviation components. Under this contract Honeywell licensed Piedmont as an authorized MRO station of APU 331-20X. Estimated amortization expenses for the five succeeding years is $160 per year.

RESTRUCTURING COST

RESTRUCTURING COST	12 Months Ended
	Dec. 31, 2021
Restructuring and Related Activities [Abstract]
RESTRUCTURING COST	NOTE 9 - RESTRUCTURING COST In March 2021, the Company announced a restructuring plan, pursuant to which, the Company will transfer the Company's operations from its leased facility in Gedera to its facility in Tulsa, Oklahoma and to its facility in Kiryat Gat. This will enable TAT to concentrate on heat exchanges activity in the United States allowing for better operational flow, getting closer to TAT’s customer base, and cutting fixed costs. During 2021 the company started executing the plan which will mature during 2022. The restructuring plan has a material impact on the company's financial statements for the year 2021 as follows: Restructuring Items December 31, 2021 Balance sheet Provision for employee’s termination expenses $ 657 Investment in building and infrastructures $ 2,382 Investment in machineries (**) $ 3,478 Total $ 6,517 Profit and loss Restructuring expenses, net Employee’s termination cost $ 686 Restructuring income from lease modification $ (1,315 ) Restructuring expenses from asset’s impairment $ 1,800 Other restructuring expenses $ 584 Cost of sales Acceleration of assets depreciation expenses $ 1,200 Total $ 2,955 * Net cash used in operating activity for restructuring expenses in 2021 was $580. ** Investment in machineries were offset by a grant of $1.2 million received from the State Of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years.

LONG TERM LOANS

LONG TERM LOANS	12 Months Ended
	Dec. 31, 2021
Long-term Debt, by Current and Noncurrent [Abstract]
LONG TERM LOANS	NOTE 10 - LONG TERM LOANS During 2021, TAT received loans from commercial banks in an aggregate amount of $3 million. These new loans are in addition to three previous loans received in 2020 in an aggregate amount of $3.3 million. An amount of $691 was classified to short-term loan as of December 31, 2021. These loans are guaranteed by the Israeli government. The loans bear annual interest of 3.1% (Prime Rate+1.5%) which are paid in equal monthly instalments as of April 2021 through February 2031.Repayment of the principal amount of the loans will begin on 2022. During 2020 TAT received a loan of approximately $3.1 million under the U.S. Small Business Administration Payroll Protection Program (“PPP”) which was created under the Coronavirus Aid, Relief and Economic Security Act. Under the PPP, repayment of the loan, including interest, may be forgiven based on payroll expenses, rent, utilities and other qualifying expenses incurred during a certain period following receipt of the loan, provided that TAT will adhere to specific requirements outlined in the PPP. Based on SBA's forgiveness approval notice, an amount of $1.7M has been recognized as a grant in 2020 and $1.4 million has been recognized as a grant in 2021. The grant was recognized as a deduction from cost of revenues and the related operating expenses. In March 2021 TAT received a short-term credit line of $3 million from a commercial bank in the US. This new credit line is in addition to a previous credit line received in 2020 in an aggregate amount of $3 million with the same conditions. The loans bear an annual interest rate of 3.6% and can be renewed by the end of the year for additional 12-month period. The carrying amounts of the short-term credit line is approximate fair value because of its short maturities. The loans have financial covenants such as a) tangible net worth to funded debt ratio of not less than 3 to 1, b) positive EBITDA, and c) minimum eligible accounts receivable of $6 million. The company satisfied such covenants as of December 31, 2021 and 2020. Maturities on long term loans are as follows: Year Amount 2022 $ 691 2023 877 2024 877 2025 738 2026 and after 3,487 $ 6,670

GOVERNMENT GRANTS

GOVERNMENT GRANTS	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
GOVERNMENT GRANTS	NOTE 11 - GOVERNMENT GRANTS During 2021, TAT received government grants as part of the Coronavirus Aid and Relief in total amount of $3.6 million which was recognized as a deduction from payroll and overhead cost of revenues and operating expenses. As of December 31, 2021, the “other current assets and prepaid expenses” included government grant receivable in the amount of $982.

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE 12 - ACCRUED EXPENSES December 31, 2021 2020 Employees and payroll accruals $ 3,463 $ 2,714 Accrued expenses 315 716 Authorities 327 415 Advances from customers 1,739 1,263 Warranty provision 243 250 Accrued royalties and rebate sales commissions 421 1,200 Other 451 133 $ 6,959 $ 6,691

RELATED PARTIES' TRANSACTIONS A

RELATED PARTIES' TRANSACTIONS AND BALANCES	12 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
RELATED PARTIES' TRANSACTIONS AND BALANCES	NOTE 13 - RELATED PARTIES’ TRANSACTIONS AND BALANCES The amounts in the table below refer to TAT-Engineering joint venture and affiliates. Transactions: Year ended December 31, 2021 2020 2019 Revenue - Sales to related-party company (*) $ 88 $ 173 $ 596 Cost and expenses - Supplies from related party (*) $ 654 $ 362 $ 552 Balances: December 31, 2021 2020 Trade receivables and other receivables (*) $ 799 $ 740 Trade payables and other payables (*) $ 95 $ 122 (*) includes mainly transactions with TAT-Engineering affiliated companies.

LONG-TERM EMPLOYEE-RELATED OBLI

LONG-TERM EMPLOYEE-RELATED OBLIGATIONS	12 Months Ended
	Dec. 31, 2021
Retirement Benefits [Abstract]
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS	NOTE 14 - LONG-TERM EMPLOYEE-RELATED OBLIGATIONS Severance pay: The Company and its Israeli subsidiary are required to make severance payments 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 sheet under “Liability in respect of employees rights upon retirement.” The liability is recorded as if it were payable at each balance sheet date on an undiscounted basis. According to Section 14 of the Israeli Severance Pay Law, the Israeli company’s liability for certain employees, according to their employment agreements, make regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s retirement benefit obligation. The Company and its Israeli subsidiary are fully relieved from any severance pay liability with respect to each such employee after it makes 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 Company balance sheet, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plan”). With regard to the employees that are not under the “Contribution Plan”, 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 “Funds in respect of employee rights upon retirement.” These policies are the Company’s assets. In the years ended December 31, 2021, 2020 and 2019 the Company deposited $778, $830 and $1,096 respectively, with pension funds and insurance companies in connection with its severance payment obligations. Limco-Piedmont sponsors a 401(K) safe harbor profit sharing plan covering substantially all of its employees. The plan requires the employer to contribute a match which is currently done on a payroll period basis, matching 100% of the first 2% and 50% of all salary deferrals made up to the next 3%. In addition, the plan allows for a discretionary qualified non-elective contribution for the plan year. Contributions to the plan by Limco-Piedmont were $349, $156 and $367 for the years ended December 31, 2021, 2020 and 2019, respectively. The Group expects to contribute approximately $600 in 2022 to the pension funds and insurance companies in respect of their severance and pension pay obligations. The amounts of severance payments, actually paid to retired employees, by TAT were $97, $380 and $689 for the years ended December 31, 2021, 2020 and 2019. F - 36 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 14 - LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (CONT) TAT expects to pay $1,504 in future benefits to their employees during 2022 through 2031 upon their normal retirement age. The amount was determined based on the employee’s current salary rates and the number of service years that will be accumulated upon the retirement date. These amounts do not include amounts that might be paid to employees that will cease working for the Israeli company before their normal retirement age. Year Amount 2022 $ 215 2023 63 2024 49 2025 55 2026 77 Thereafter (through 2030) 1,045 Total $ 1,504

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 15 - COMMITMENTS AND CONTINGENCIES a. Commissions arrangements: The Group is committed to pay marketing commissions ranging 1% to 10% to sale agents of total sales contracts. Commission expenses were $423, $528 and $694 for the years ended December 31, 2021, 2020 and 2019, 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, ranging from (2) Piedmont is committed to pay royalties to a third party, ranging In addition, Piedmont is committed to pay another third party royalties of c. Guarantees: (1) In order to secure TAT's liability to the Israeli customs, the Company provided bank guarantees in amounts (2) To secure TAT's liability to the lessor of its premises, the Company provided a bank guarantee in the amount

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 16 - SHAREHOLDERS' EQUITY a. TAT's Ordinary shares confer upon their holders voting rights, the right to receive dividends, if declared, and any TAT's Treasure shares have no rights. b. Stock option plans: Following the approval of TAT's Audit Committee and Board of Directors, on June 28, 2012, the Company’s shareholders approved the 2012 stock option plan (the “2012 Plan”) to grant up to 380,000 options to purchase Ordinary shares, 0.9 NIS par value, of the Company to senior executives and certain members of the Board of Directors, at an exercise price as determined in the stock option plan. The option pool was increased twice by 300,000 to an aggregate option pool of 980,000(*) options following the approvals of the Company's Audit Committee, Board of Directors and shareholders. In general, the Options vest over a period of 4 years as follows: 25% of the Options vest upon the lapse of 12 months following the date of grant and the remaining 75% vest on a quarterly basis over the remaining 3-year period. The grant of options to Israeli employees under the Plan is subject to the terms stipulated by Sections 102 and 102A of the Israeli Income Tax Ordinance. Each option grant is subject to the track chosen by the Company, either Section 102 or Section 102A of the Israeli Income Tax Ordinance, and pursuant to the terms thereof, the Company is not allowed to claim as an expense for tax purposes the amounts credited to employees as benefits, including amounts recorded as salary benefits in the Company’s accounts, in respect of options granted to employees under the Plan, with the exception of the work income benefit component, if any, determined on grant date. For nonemployees and for non-Israeli employees, the share option plan is subject to Section 3(i) of the Israeli Income Tax Ordinance. (*) of which 821,982 options are approved by the Tel Aviv Stock Exchange to be allocated to grantees. F - 38 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 16 - SHAREHOLDERS' EQUITY (CONT) b. Stock option plans (cont.): On August 30, 2018 the Company's compensation committee, followed by the Board of Directors, approved the amended and restated company's 2012 Plan. On October 4, 2018 the company's amended and restated 2012 stock plan was approved at the annual general meeting of shareholders. As part of the company's 2012 Plan’s amendments it was determined that if the Company declares a cash dividend to its shareholders, and the distribution date of such dividend will precede the exercise date of an Option, including for the avoidance of doubt, Options that have yet to become vested and Options which have been granted prior to the adoption of such amendment to the plan, the exercise price of the Option shall be reduced in the amount equal to the cash dividend per share distributed by the Company. The result of the modification was an incremental cost of $74 in the financial statement for 2018. During 2018 the option pool was increased by 300,000 to an aggregate option pool of 980,000(*) options following the approvals of the Company's Audit Committee, Board of Directors and shareholders of the company. (1) On August 29, 2019, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (2) On September 22, 2019, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (3) On September 26, 2019, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (4) On October 15, 2020, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (5) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (6) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (7) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (8) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (9) On July 25, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of (10) On August 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of F - 39 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 16 - SHAREHOLDERS' EQUITY (CONT) b. Stock option plans (cont.): The fair value of the Company’s stock options granted under the 2012 plan for the years ended December 31, 2021, 2020 and 2019 was estimated using the following assumptions: 2021 2020 2019 Expected stock price volatility 45.6% – 52% 44.7% – 43.5% 34.2% – 36.8% Expected option life (in years) 3.5-5 3.5-5 3.5-5 Risk free interest rate 0.1% – 0.64% 0.12% – 0.25% 1.44% – 1.63% Dividend yield 0% 0% 0% 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. Following the company's amended and restated 2012 stock plan related to the adjustment of the exercise price in respect of dividend distribution, the dividend yield was amended to 0%. F - 40 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 16 - SHAREHOLDERS' EQUITY (CONT) b. Stock option plans (cont.): The following table is a summary of the activity of TAT's Stock Option plan: Year ended December 31, Year ended December 31, Year ended December 31, 2021 2020 2019 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at the beginning of the year   621,460 $ 7.26 571,460 $ 7.53 528,268 $ 9.03 Granted 220,000 6.45 50,000 4.58 170,000 5.44 Forfeited (121,460 ) 8.9 - - (126,808 ) 11.19 Exercised - - - - - - Outstanding at the end of the year 720,000 6.8 621,460 7.26 571,460 7.53 Exercisable at the end of the year 379,375 $ 7.44 381,629 $ 7.91 264,389 $ 7.74 The weighted-average grant-date fair value of options granted was $1.92 in 2021, $1.41 in 2020 and $1.35 in 2019. The aggregate intrinsic value for the options outstanding as of December 31, 2021, 2020 and 2019 was $0, $0 and $0, respectively. As of December 31, 2021, total unrecognized compensation cost was $632 and is expected to be recognized over a weighted-average period of 3.97 years.

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	12 Months Ended
	Dec. 31, 2021
Weighted average number of shares outstanding:
EARNINGS PER SHARE ("EPS")	NOTE 17 - EARNINGS PER SHARE (“EPS”) Basic and diluted earnings 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, 2021 2020 2019 Numerator for EPS: Net income (loss) $ (3,562 ) $ (5,329 ) $ 806 Denominator for EPS: Weighted average shares outstanding – basic 8,874,696 8,874,696 8,874,696 Dilutive shares - - - Weighted average shares outstanding – diluted 8,874,696 8,874,696 8,874,696 EPS: Basic and diluted $ (0.4 ) $ (0.6 ) $ 0.1 Diluted income per share does not include 720,000, 621,460 and 482,282 options, for the years ended December 31, 2021, 2020 and 2019 respectively because the options are anti-dilutive. Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans.

DISCONTINUED OPERATION

DISCONTINUED OPERATION	12 Months Ended
	Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATION	NOTE 18 - DISCONTINUED OPERATION In June 2020, the company's management decided to discontinue the JT8D engine blades reconditioning activity as part of a strategic change in its business to focus on new capabilities to provide services to newer types of engines. The discontinued operation is related to the JT8D engine blades reconditioning activity in Turbochrome, which constitute a material portion of Turbochrome’s revenues. 2021 2020 Assets: Account receivables $ - $ - Inventory - - Fixed assets, net - - Costumers’ relationship - - Total Assets $ - $ - Liability: Account payables $ - $ 179 Total Liabilities $ - $ 179 F - 42 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 18 - DISCONTINUED OPERATION (CONT) Year ended December 31, 2021 2020 2019 Revenue: Services $ 440 $ 955 $ 4,553 Cost of revenue: Services 429 1,062 4,291 Gross profit (loss) 11 (107 ) 262 Operating expenses: Research and development, net 16 42 (39 ) Selling and marketing 29 90 330 General and administrative 68 191 598 113 323 889 Operating income (loss) (102 ) (430 ) (627 ) Financial expenses (income) - - 28 Income (loss) on disposal of discontinued operation (1) 529 (1,415 ) - Net Income (loss) $ 427 $ (1,845 ) $ (655 ) (1) During 2020, the Company wrote off the following assets belonging to the discontinued operation: Inventory of $464, Accounts receivable of $233, Fixed assets of $363 and Customers' relationships of $355. During 2021 the company was succeeded to collect and sell some of the account receivable and inventory that were written off in total amount of $529.

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 19 - TAXES ON INCOME a. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): Until December 31, 2010, TAT and Turbochrome has elected to participate in the alternative package of tax benefits for its approved and benefited enterprise under the law. Pursuant to such Law, the income derived from those enterprises will be exempt from Israeli corporate tax for a specified benefit period (except to the extent that dividends are distributed during the tax-exemption period other than upon liquidation) and subject to reduced corporate tax rates for an additional period. In addition pursuant to a recent amendment of the Law, any distribution of dividend as of August 15, 2021 will be prorated between exempt income and taxable income. As such, upon dividend distribution, in case the company has accumulated exempt income, the company will be obligated to pay the corporate income tax it was exempted from with respect to the exempt profits portion. 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 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 6% in areas in Israel that are designated as Development Zone A and 12% elsewhere in Israel. Dividends distributed from taxable income derived from Preferred Enterprise would be subject to a 15% tax (or lower, if so provided under an applicable tax treaty), which would generally be withheld by the distributing company. While the Company may incur additional tax liability in the event of distribution of dividends from tax exempt income generated from its Approved and Benefiting Enterprises, no additional tax liability will be incurred by the Company in the event of distribution of dividends from income taxed in accordance with the 2011 Amendment. Under the transitional provisions of the 2011 Amendment, the Company elected to irrevocably implement the 2011 Amendment, commencing 2011 and thereafter, and be regarded as a "Preferred Enterprise" with respect to its existing Approved and Benefited Enterprises while waiving benefits provided under the legislation prior to the 2011 Amendment. F - 44 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 19 - TAXES ON INCOME (CONT) a. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law") (cont.): 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%. The uniform tax rate for Development Zone A, as of January 1, 2017, is 7.5% (as part of changes enacted in Amendment 73). TAT is located in an area in Israel that is designated as elsewhere and as such entitled to reduce tax rates of 16%. Turbochrome is in an area in Israel that is designated as Zone A and as such entitled to reduce tax rates of 7.5%. b. Corporate tax rate in Israel The taxable income of TAT, not subject to benefits as detailed above, is taxed at the standard Israeli corporate tax rate, which was 23% for all years included in these financial statements. Capital gain is subject to capital gain tax according to corporate tax rate in the year which the assets are sold c. U.S. subsidiaries U.S. subsidiaries are taxed based on federal and state tax laws. The Federal statutory tax rate for 2021, 2020 and 2019 was 21% plus 3%-6% for state taxes. F - 45 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 19 - TAXES ON INCOME (CONT) d. Tax assessments TAT’s income tax assessments are considered final through 2016. Turbochrome income tax assessments are considered final through 2016. Limco-Piedmont income tax assessments are considered final through 2017. e. Income tax reconciliation: A reconciliation of the theoretical tax expense assuming all income is taxed at the statutory rate to taxes on income (tax benefit) as reported in the statements of income: Year ended December 31, 2021 2020 2019 Income (loss) before taxes on income (tax benefit) from continued operationas reported in the statements of income   $ (4,575 ) $ (4,816 ) $ 2,182 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income (tax benefit) $ (1,052 ) $ (1,108 ) $ 501 Increase (decrease) in taxes on income resulting from: Tax adjustment for foreign subsidiaries subject to a different tax rate   75 50 (26 ) Reduced tax rate on income derived from "Preferred Enterprises" plans   149 580 204 Earnings from foreign subsidiaries (1) - (2,338 ) 91 Valuation allowance for exchange rates differences on deferred taxes not recorded on capital losses   - - (125 ) Deferred tax assets from discontinued operation profit (loss) 98 (138 ) (49 ) Reduced deferred tax asset from expecting utilization of carryforward losses   - 1,984 - Tax in respect of prior years 24 (345 ) - Temporary differences for which no deferred taxes were recorded - (377 ) (55 ) Permanent differences 71 24 55 Other adjustments (27 ) 151 (7 ) Taxes on income (tax benefit) as reported in the statements of income   $ (662 ) $ (1,517 ) $ 589 (1) The Company record an accrual that related to a deferred tax liability due to the possibility of future During 2020 and 2021, the Company received loans from commercial banks in the US and Israel in total amount of $6 million. As part of the loan terms, the company cannot distribute dividends to its shareholders during the next five years. Therefore, the company wrote off the differed tax liability in 2020. F - 46 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 19 - TAXES ON INCOME (CONT) f. Income (loss) before taxes on income (tax benefit) is comprised as follows: Year ended December 31, 2021 2020 2019 Domestic (Israel) $ (5,139 ) $ (4,499 ) $ (1,931 ) Foreign (United States) 564 (317 ) 4,113 $ (4,575 ) $ (4,816 ) $ 2,182 g. Taxes on income (tax benefit) included in the statements of income: Year ended December 31, 2021 2020 2019 Current: Domestic (Israel) $ - $ - $ - Foreign (United States) - - 181 - - 181 Deferred: Domestic (Israel) (579 ) (683 ) (397 ) Foreign (United States) (107 ) (489 ) 805 (686 ) (1,172 ) 408 Previous years: Domestic (Israel) - (134 ) Foreign (United States) 24 (211 ) - - (345 ) - $ (662 ) $ (1,517 ) $ 589 F - 47 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 19 - TAXES ON INCOME (CONT) h. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of TAT's deferred tax liabilities and assets are as follows: December 31, 2021 2020 Deferred tax assets: Provision for current expected credit losses $ 95 $ 41 Provisions for employee benefits 495 272 Inventory 1,212 987 Capital tax losses carryforward 3,500 3,500 Net operating losses carryforward 3,084 3,017 Other 326 224 Deferred tax assets, before valuation allowance $ 8,712 $ 8,041 Valuation allowance (5,484 ) (5,484 ) Deferred tax assets, net $ 3,228 $ 2,557 Deferred tax liabilities: Property, plant and equipment (1,542 ) (1,647 ) Intangible assets (434 ) (318 ) Other temporary differences deferred tax liabilities - (26 ) Deferred tax liabilities $ (1,976 ) $ (1,991 ) Net $ 1,252 $ 566 F - 48 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 19 - TAXES ON INCOME (CONT) h. Deferred income taxes (cont.): The following table summarizes the changes in the valuation allowance for deferred tax assets: Balance, December 31, 2018 $ 3,375 Additions during the year 125 Balance, December 31,2019 $ 3,500 Additions during the year 1,984 Balance, December 31,2020 $ 5,484 Additions during the year - Balance, December 31,2021 $ 5,484 Valuation allowances are mainly related to (i) U.S. subsidiary for which valuation allowance was provided in respect of deferred tax assets resulting from carryforward of State tax losses in the amount of $ 1,519. That amount is expected to expire gradually starting from 2024 and (ii) Capital losses attributed to the Company in the amount of $ 1,502. (iii) corporate income tax losses carryforward incurred in TAT Gedera in amount of $2,434.

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 20 - SEGMENT INFORMATION a. Segment Activities Disclosure: TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories mainly through our Gedera facility and our Limco subsidiary; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components (mainly APU and LG) through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. - OEM of heat transfer solutions and aviation accessories primarily include the design, development and - MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO - MRO services for aviation components include the MRO of APUs, landing gears and other aircraft - TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and The Group’s chief operating decision-maker (CEO of the Company) evaluates performance, makes operating decisions and allocates resources based on financial data, consistent with the presentation in the accompanying financial statements. CODM reviews revenue, gross profit, operating income and the following assets: cash and cash equivalents, accounts receivable and inventory. During 2021 TAT executed and continue to work on the company's plan to consolidate the Company’s operations from four to three production sites by consolidating its production sites in Israel “OEM of heat transfer solutions and aviation accessories” with the “overhaul and coating of jet engine activity” and transferring the heat exchanges cores production operations from Israel to the Company’s production site in Tulsa, Oklahoma. F - 50 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 20 - SEGMENT INFORMATION (CONT) b. Segments statement operations disclosure: The following financial information is the information that CODM uses for analyzing the segment results. The figures are presented in consolidated method as presented to CODM. The following financial information is a summary of the operating income of each operational segment: Year ended December 31, 2021 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Elimination of inter-company sales Consolidated Revenues Sale of products and services $ 22,238 $ 18,669 $ 33,232 $ 3,834 $ - $ 77,973 Intersegment revenues 3,739 177 - - (3,916 ) - Total revenues 25,977 18,846 33,232 3,834 (3,916 ) 77,973 Cost of revenues 24,044 16,922 26,444 2,978 (3,685 ) 66,703 Gross profit 1,933 1,924 6,788 856 (231 ) 11,270 Research and development 122 80 202 160 (47 ) 517 Selling and marketing 2,040 1,015 1,961 220 (89 ) 5,147 General and administrative 3,128 1,855 3,004 558 (191 ) 8,354 Other expenses (income) (913 ) - (432 ) (19 ) 896 (468 ) Restructuring expenses, net 1,338 386 - 31 - 1,755 Operating income (loss) $ (3,782 ) $ (1,412 ) $ 2,053 $ (94 ) $ (800 ) $ (4,035 ) Financial expenses, net 540 Loss before tax benefits (4,575 ) F - 51 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 20 - SEGMENT INFORMATION (CONT) b. Segments statement operations disclosure (cont.) Year ended December 31, 2020 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and lease Overhaul and coating of jet engine components Elimination of inter-company sales Consolidated Revenues Sale of products and services $ 20,179 $ 20,445 $ 31,189 $ 3,546 $ - $ 75,359 Intersegment revenues 2,946 195 - - (3,141 ) - Total revenues 23,125 20,640 31,189 3,546 (3,141 ) 75,359 Cost of revenues 21,703 17,885 26,961 3,312 (2,937 ) 66,924 Gross profit (loss) 1,422 2,755 4,228 234 (204 ) 8,435 Research and development (3 ) (2 ) 7 183 - 185 Selling and marketing 1,429 1,152 1,527 261 - 4,369 General and administrative 2,183 2,054 2,732 643 - 7,612 Other expenses (income) - 21 - 294 - 315 Operating income (loss) $ (2,187 ) $ (470 ) $ (38 ) $ (1,147 ) $ (204 ) $ (4,046 ) Financial expenses, net 770 Loss before taxes on income (4,816 ) F - 52 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 20 - SEGMENT INFORMATION (CONT) b. Segments statement operations disclosure (cont.) Year ended December 31, 2019 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and lease Overhaul and coating of jet engine components Elimination of inter-company sales Consolidated Revenues Sale of products and services $ 20,552 $ 34,183 $ 38,687 $ 4,057 $ - $ 97,479 Intersegment revenues 6,037 250 - - (6,287 ) - Total revenues 26,589 34,433 38,687 4,057 (6,287 ) 97,479 Cost of revenues 23,998 27,852 33,337 3,460 (6,468 ) 82,179 Gross profit 2,591 6,581 5,350 597 181 15,300 Research and development 58 83 7 (35 ) - 113 Selling and marketing 1,530 1,638 1,334 427 - 4,929 General and administrative 1,978 2,734 2,408 534 - 7,654 Operating income (loss) $ (975 ) $ 2,126 $ 1,601 $ (329 ) $ 181 $ 2,604 Financial expenses, net 422 Income before taxes on income 2,182 F - 53 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 20 - SEGMENT INFORMATION (CONT) c. The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments: Year ended December 31, 2021 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Discontinued operation Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 27,271 27,267 45,112 - 7,128 4,055 110,833 Depreciation and amortization 2,174 740 1,683 - 284 - 4,881 Asset’s impairment 1,800 - - - - - 1,800 Expenditure for segment assets 271 4,831 5,624 - 1,604 - 12,330 Year ended December 31, 2020 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Discontinued operation Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 32,536 21,525 41,433 - 6,073 14,554 116,121 Depreciation and amortization 1,400 1,020 799 - 846 - 4,065 Expenditure for segment assets 765 556 9,410 - 309 - 11,040

ENTITY-WIDE DISCLOSURE

ENTITY-WIDE DISCLOSURE	12 Months Ended
	Dec. 31, 2021
Segments, Geographical Areas [Abstract]
ENTITY-WIDE DISCLOSURE	NOTE 21 - ENTITY-WIDE DISCLOSURE a. Total revenues - by geographical location were attributed according to customer residential country as follows: Year ended December 31, 2021 2020 2019 Total revenues Total revenues Total revenues Sale of products Israel $ 5,532 $ 3,355 $ 3,464 United States 13,716 12,284 14,181 Other 6,622 7,100 7,374 $ 25,870 $ 22,739 $ 25,019 Year ended December 31, 2021 2020 2019 Total revenues Total revenues Total revenues Sale of Services Israel $ 2,213 $ 3,543 $ 3,624 United States 34,231 34,765 43,196 Other 15,659 14,312 25,640 $ 52,103 $ 52,620 $ 72,460 b. Total long-lived assets - by geographical location were as follows: December 31, 2021 2020 2019 Israel $ 8,427 $ 15,071 $ 16,692 United States 26,978 18,908 11,354 Total $ 35,405 $ 33,979 $ 28,046 c. Major Customers The company has a single costumer which his annual sales in 2021 constitute 12.8% from the total group sales.

SUPPLEMENTAL CONSOLIDATED BALAN

SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION	12 Months Ended
	Dec. 31, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION	NOTE 22 - SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION Warranty provision Provision for current expected credit losses Balance, as of December 31, 2018 $ 285 $ 276 Additions 115 84 Deductions (165 ) (46 ) Balance, as of December 31, 2019 $ 235 $ 314 Additions 80 194 Deductions (65 ) (202 ) Balance, as of December 31, 2020 $ 250 $ 306 Additions 80 269 Deductions (87 ) (186 ) Balance, as of December 31, 2021 $ 243 $ 389

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 23 - SUBSEQUENT EVENTS Following the Company's announcement in 2021 regarding to the intention to transfer Company's activity from our leased facility in Gedera to a facility in Tulsa, Oklahoma and to a facility in Kiryat Gat as part of the company restructuring plan, in December 2021 the TAT and the landlord agreed on the settlement conditions which signed on January 10, 2022. TAT will vacate the property on March 31, 2022 and pay the rent fees until this termination date without any exit penalty or additional evacuation cost, see note 7.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	a. Basis of Presentation The Group's financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP").
Use of estimates in the preparation of financial statement	b. 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: recoverability of inventory, provision for current expected credit loss and income taxes.
Functional currency	c. Functional currency The majority of the revenues of each subsidiary in the Group are generated in U.S. dollars ("dollars") and a substantial portion of the costs of each subsidiary in the Group are incurred in dollars. Accordingly, the dollar is the currency of the primary economic environment in which the Group operates and accordingly its functional and reporting currency is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in currencies other than the U.S. dollar are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the statements of income (indicated below), the following exchange rates are used: (i) for transactions – exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) – historical exchange rates. Currency transaction gains and losses are carried to financial income or expenses, as appropriate.
Principles of consolidation	d. Principles of consolidation The consolidated financial statements include the accounts of TAT and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation.
Cash and Cash equivalents	e. Cash and Cash equivalents All highly liquid investments, which include short-term bank deposits, 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.
Accounts receivable, net	f. Accounts receivable, 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 a provision for current expected losses. Accounts outstanding longer than their original contractual payment terms are considered past due. The Company’s accounts receivables accounting policy until December 31, 2019, prior to the adoption of the new CECL standard Accounts receivables are stated at their net realizable value. The allowance against gross accounts receivables reflects the best estimate of losses inherent in the receivable’s portfolio determined based on historical experience, specific allowances for known troubled accounts and other currently available information. An allowance for doubtful debts is reflected in net accounts receivables. Account’s receivables are written off after all reasonable means to collect the full amount have been exhausted. The Company’s accounts receivables accounting policy from January 1, 2020, following the adoption of the new CECL standard Accounts receivable have been reduced by an allowance for current expected losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-off activity and recoveries for the periods presented were not material.
Inventory	g. Inventory Inventory is measured at the lower of cost and net realizable value. Inventories include raw materials, parts, work in progress and finished products. Cost of raw material and parts is determined using the “moving average” basis. Cost of work in progress and finished products is calculated based on actual costs. Capitalized production costs components, mainly labor and overhead, are determined on average basis over the production period. If actual market prices are less favorable than those projected by management, inventory write-downs may be required. When inventory written-down, a new lower cost basis for that inventory is established. Since the Group sells products and services related to airplane accessories 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 net realizable value, which includes costs to sell based upon assumptions for future demand and market conditions.
Property, plant and equipment	h. Property, plant and equipment Property, plant and equipment are stated at cost, after deduction of the related investment grants, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: Years Buildings and leasehold improvements 15 – 39 Machinery and equipment 15 – 20 Motor vehicles 7 Office furniture and equipment 3 – 5 Software 7 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. During 2021 the Company's management reassessed and updated the useful life of each one of the groups of fixed assets. The change in the estimated useful life was accounted for prospectively in accordance with ASC 250-10.
Grants from Israel Innovation Authority (IIA):	i. Grants from Israel Innovation Authority (IIA): Grants received from the IIA for approved research and development projects are recognized at the time the Company is reasonably assured that it will be entitled to such grants, on the basis of the costs incurred and included as a deduction from research and development expenses. Due to the fact that the Company is defined as a "Traditional Industry Company", under the IIA regulations, the majority of grants are non-royalty bearing.
Investment in affiliates and share in results of equity investment of affiliated companies	j. Investment in affiliates and share in results of equity investment of affiliated companies 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. See Note 5. The Group reviews those investments for impairment whenever events indicate the carrying amount may not be recoverable. See Note 1(c). On consolidation, transactions between the Group and the affiliate are eliminated in the amount which related to the Group's proportionate share of the affiliate.
Leases	k. Leases The Company determines if an arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets are recognized as the lease liability, adjusted for lease incentives received and prepayments made. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term (see also note 2aa). Revenue from Leasing Transactions under ASC 842 The Company accounts for certain leasing revenues in accordance with ASC 842, which qualify for operating lease treatment. For operating leases in which the Company is the lessor, lease payments are recognized as leasing revenue over the lease term on a straight-line basis. APUs engines subject to operating leases are classified as property, plant, and equipment and depreciated on a straight-line basis over the useful life, see Note 7.
Identified intangible assets	l. Identified intangible assets Identifiable intangible assets are comprised of definite lived intangible assets - customer relationships and commercial license which are amortized over 7 and 10 years respectively, using the straight-line method over their estimated period of useful life as determined by identifying the period in which substantially all of the cash flows are expected to be generated. Amortization of customer relationships is recorded under selling and marketing expenses (this intangible asset was fully impaired during the year ended December 31, 2020, see note 8) and the amortization of the commercial license is recorded in the cost of sales.
Impairment of long-lived assets	m. Impairment of long-lived assets Long-lived assets, including property, plant and equipment, operating lease right of use assets and definite life intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized and the assets (or asset group) would be written down to their estimated fair values (see also notes 6 and 7).
Treasury Shares	n. Treasury Shares Company shares held by the Company are presented as a reduction of equity at their cost to the Company. The treasury shares have no rights.
Revenue recognition	o. 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. A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. F - 19 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) p. Revenue recognition (cont.) The Company has adopted the following exemptions and accounting policies: a. The Company has chosen to account for shipping as a fulfillment costs, in cases in which the shipping occurs after the customer has obtained control of a good. b. The Company has chosen not to adjust the promised amount of consideration for the effects of a significant financing component, in cases in which the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. c. The Company has chosen to present all sales taxes collected from customers on a net basis. The group recognizes revenues from the sale of OEM products when it satisfies a performance obligation, i.e. when or as the customer obtains control upon product shipment. The Group does not grant a right of return. The Group recognizes revenues from MRO services over time as it satisfies its performance obligations. The Group satisfies its performance, according to required milestones. Contract liabilities Contract liabilities are mainly comprised of deferred revenues which are included under other payables.
Warranty costs	q. 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. According to company's experience, most of the warranty costs incur during the first year of the contract. 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 revenue is recognized under accrued expenses on the company’s balance sheet. The Group periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.
Research and development	r. Research and development Research and development costs, net of grants, are charged to expenses as incurred.
Fair value measurement	s. Fair value measurement 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 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. F - 21 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) s. Fair value measurement (cont.) 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	t. Concentrations of credit risk Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, derivatives 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 the 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. As part of the risk management, the company purchased a credit insurance policy from a well-known insurance company.
Income taxes	u. 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 it is more likely than not that a portion of the deferred income tax assets will not be realized, see note 17(h). Taxes which would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing the deferred taxes, when the Group’s intention is to hold, and not to realize the investments. Taxes which would apply in the event of distribution of earnings from foreign subsidiaries of the Company, have been taken into account in computing the deferred taxes, when there is a possibility of future distribution of earnings from such foreign subsidiaries. F - 22 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) u. Income taxes (cont.) 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 13(a)), since it intends to permanently reinvest them and has no intention to declare dividends out of such tax exempt income in the foreseeable future. Management considers such retained earnings to be essentially permanent in duration. Results for tax purposes for TAT’s Israeli subsidiaries are measured and reflected in NIS. As explained in (c) above, the consolidated financial statements are measured and presented in U.S. dollars. In accordance with ASC 740, TAT has not provided deferred income taxes on the differences resulting from changes in exchange rate and indexation. The Group follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Group’s policy is to include interest and penalties related to unrecognized tax benefits within financial income (expense). Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date.
Earnings per share	v. Earnings per share Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of the Company's Ordinary Shares, par value NIS 0.9 per share outstanding for each period. Diluted earnings (loss) per share are calculated by dividing the net income by the fully-diluted weighted-average number of ordinary shares outstanding during each period. Potentially dilutive shares include outstanding options granted to employees and directors, using the treasury stock method.
Share-based compensation	w. Share-based compensation The Group applies ASC 718 "Stock Based Compensation" with respect to employees and directors’ 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 Company estimates forfeitures based on historical experience and anticipated future conditions. F - 23 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONT) w. Share-based compensation (cont) 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.
Comprehensive income (loss)	x. Comprehensive income (loss) Comprehensive income in 2021, 2020 and 2019 includes, in addition to net income or loss, gains and losses of derivatives designated for cash flow hedge accounting (net of related taxes where applicable). Reclassification adjustments for gain or loss of derivatives are included in the relevant line item in the statement of income. See also note 2 (z).
Contingencies	y. 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. Management applies the guidance in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.
Derivatives and hedging	z. Derivatives and hedging The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. If a derivative does not meet the definition of a cash flow hedge, the changes in the fair value are included in "financial expense (income), net". For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Restructuring Costs	aa. Restructuring Costs Restructuring costs have been recorded in connection with TAT’s restructuring plan announced in March 2021. Following this decision and in anticipation of ongoing efficiency measures in our business, TAT’s management has made estimates and judgments regarding future plans, mainly related to employee termination benefit costs. Management also assesses the recoverability of long-lived assets employed in the business. In certain instances, asset lives have been shortened based on changes in the expected useful lives of the affected assets. Asset-related impairments and employee's severance and other related costs are reflected within asset impairments of fixed assets, provision for restructuring plan and restructuring expenses.
Recently Issued Accounting Principles:	bb. Recently Issued Accounting Principles: Recently adopted accounting pronouncements: (1) In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes. (Topic In addition, this Update also simplify the accounting for income taxes in certain topics as follows: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2. Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction;3. Specifying that an entity can elect (rather than required to) allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements;4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The new standard does not have a material effect on the Company's financial statements upon adoption. Accounting pronouncements issued but not yet adopted: (1) In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which increases the

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Schedule of Property, Plant and Equipment Estimated Useful Lives	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 and leasehold improvements 15 – 39 Machinery and equipment 15 – 20 Motor vehicles 7 Office furniture and equipment 3 – 5 Software 7

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	The Company's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments: December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Derivative financial instruments - $ 51 - $ 51 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Derivative financial instruments - $ 128 - $ 128

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory, Net	Inventory is composed of the following: December 31, 2021 2020 Raw materials and components $ 13,741 $ 11,281 Work in progress 11,985 15,432 Spare parts 13,462 13,147 Finished goods 1,815 1,363 Total inventory (**) $ 41,003 $ 41,223 (**) The total amount of Rotables included in the company spare parts inventory for the years ended December 31, 2021 and 2020 were $8,623 and $9,183, respectively.

INVESTMENT IN AFFILIATES (Table

INVESTMENT IN AFFILIATES (Tables)	12 Months Ended
	Dec. 31, 2021
Investments in and Advances to Affiliates [Abstract]
Summary of Financial Information	Summarized financial information of TAT-Engineering LLC: December 31, 2021 2020 Balance sheets: Current assets $ 358 $ 320 Non-current assets 1,091 1,211 Current liabilities 1,154 1,088 Year ended December 31, 2021 2020 2019 Statements of operation: Revenues $ 501 $ 413 $ 877 Gross loss (22 ) (153 ) (228 ) Net loss (148 ) (365 ) (291 ) Net losses attributable to the Company (76 ) (185 ) (132 )

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Composition of assets, grouped by major classifications, is as follows: December 31, 2021 2020 Cost: Land and buildings $ 18,031 $ 15,762 Machinery and equipment 63,875 57,245 Motor vehicles 302 313 Office furniture and equipment 1,906 1,895 Software 2,123 2,048 86,237 77,263 Less: Accumulated depreciation 55,775 51,526 Depreciated cost $ 30,462 $ 25,737

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2021
Lessee Disclosure [Abstract]
Schedule of Lease Cost	The lease cost was as follows: Year ended December 31, 2021 Year ended December 31, 2020 Operating lease expenses 2,080 2,158
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Year ended December 31, 2021 Year ended December 31, 2020 Operating cash flows from operating leases 2,226 2,158 Right-of-use assets obtained in exchange for lease obligations (non-cash) 399 1,756
Schedule of Operating Cash Flows	Supplemental balance sheet information related to operating leases is as follows: December 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets 3,114 6,767 Current operating lease liabilities 1,169 1,614 Non-current operating lease liabilities 1,989 5,758 Total operating lease liabilities 3,158 7,372 Weighted Average Remaining Lease Term Operating leases - Israel 2 years 4 years Operating leases – United States 5 years 5 years Weighted Average discount rate Operating leases - Israel 4.5 % 4.5 % Operating leases – United States 4.84 % 4.84 %
Schedule of Maturities of Lease Liabilities	As of December 31, 2021, the maturities of lease liabilities were as follows: Year Amount 2022 $ 1,221 2023 757 2024 643 2025 241 2026 241 2027 and after 182 Total lease payments 3,285 Less imputed interest (127 ) Total $ 3,158

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2021
Schedule of Intangible Assets	Intangible assets: December 31, 2021 2020 Customer relationships Cost $ - $ 671 Impairment - (298 ) Accumulated amortization - (373 ) Amortized cost $ - $ -
Commercial license [Member]
Schedule of Intangible Assets	December 31, 2021 2020 Commercial license Cost $ 2,030 $ 1,513 Accumulated amortization (201 ) (38 ) Amortized cost $ 1,829 $ 1,475

RESTRUCTURING COST (Tables)

RESTRUCTURING COST (Tables)	12 Months Ended
	Dec. 31, 2021
Restructuring and Related Activities [Abstract]
Schedule of Restructuring plan	The restructuring plan has a material impact on the company's financial statements for the year 2021 as follows: Restructuring Items December 31, 2021 Balance sheet Provision for employee’s termination expenses $ 657 Investment in building and infrastructures $ 2,382 Investment in machineries (**) $ 3,478 Total $ 6,517 Profit and loss Restructuring expenses, net Employee’s termination cost $ 686 Restructuring income from lease modification $ (1,315 ) Restructuring expenses from asset’s impairment $ 1,800 Other restructuring expenses $ 584 Cost of sales Acceleration of assets depreciation expenses $ 1,200 Total $ 2,955 * Net cash used in operating activity for restructuring expenses in 2021 was $580. ** Investment in machineries were offset by a grant of $1.2 million received from the State Of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years.

LONG TERM LOANS (Tables)

LONG TERM LOANS (Tables)	12 Months Ended
	Dec. 31, 2021
Long-term Debt, by Current and Noncurrent [Abstract]
Schedule of Maturities on Long Term Loans	Maturities on long term loans are as follows: Year Amount 2022 $ 691 2023 877 2024 877 2025 738 2026 and after 3,487 $ 6,670

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
Schedule of Other Account Payable and Accrued Expenses	December 31, 2021 2020 Employees and payroll accruals $ 3,463 $ 2,714 Accrued expenses 315 716 Authorities 327 415 Advances from customers 1,739 1,263 Warranty provision 243 250 Accrued royalties and rebate sales commissions 421 1,200 Other 451 133 $ 6,959 $ 6,691

RELATED PARTIES' TRANSACTIONS_2

RELATED PARTIES' TRANSACTIONS AND BALANCES (Tables)	12 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
Schedule of Transactions with Related Parties	Transactions: Year ended December 31, 2021 2020 2019 Revenue - Sales to related-party company (*) $ 88 $ 173 $ 596 Cost and expenses - Supplies from related party (*) $ 654 $ 362 $ 552
Schedule of Balances with Related Parties	Balances: December 31, 2021 2020 Trade receivables and other receivables (*) $ 799 $ 740 Trade payables and other payables (*) $ 95 $ 122 (*) includes mainly transactions with TAT-Engineering affiliated companies.

LONG-TERM EMPLOYEE-RELATED OB_2

LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2021
Retirement Benefits [Abstract]
Schedule of Expected Future Benefits	TAT expects to pay $1,504 in future benefits to their employees during 2022 through 2031 upon their normal retirement age. The amount was determined based on the employee’s current salary rates and the number of service years that will be accumulated upon the retirement date. These amounts do not include amounts that might be paid to employees that will cease working for the Israeli company before their normal retirement age. Year Amount 2022 $ 215 2023 63 2024 49 2025 55 2026 77 Thereafter (through 2030) 1,045 Total $ 1,504

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
Schedule of Stock Options Assumptions	b. Stock option plans (cont.): The fair value of the Company’s stock options granted under the 2012 plan for the years ended December 31, 2021, 2020 and 2019 was estimated using the following assumptions: 2021 2020 2019 Expected stock price volatility 45.6% – 52% 44.7% – 43.5% 34.2% – 36.8% Expected option life (in years) 3.5-5 3.5-5 3.5-5 Risk free interest rate 0.1% – 0.64% 0.12% – 0.25% 1.44% – 1.63% Dividend yield 0% 0% 0%
Schedule of Stock Option Activity	The following table is a summary of the activity of TAT's Stock Option plan: Year ended December 31, Year ended December 31, Year ended December 31, 2021 2020 2019 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at the beginning of the year   621,460 $ 7.26 571,460 $ 7.53 528,268 $ 9.03 Granted 220,000 6.45 50,000 4.58 170,000 5.44 Forfeited (121,460 ) 8.9 - - (126,808 ) 11.19 Exercised - - - - - - Outstanding at the end of the year 720,000 6.8 621,460 7.26 571,460 7.53 Exercisable at the end of the year 379,375 $ 7.44 381,629 $ 7.91 264,389 $ 7.74

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	12 Months Ended
	Dec. 31, 2021
Weighted average number of shares outstanding:
Schedule of Earnings per Share	Basic and diluted earnings 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, 2021 2020 2019 Numerator for EPS: Net income (loss) $ (3,562 ) $ (5,329 ) $ 806 Denominator for EPS: Weighted average shares outstanding – basic 8,874,696 8,874,696 8,874,696 Dilutive shares - - - Weighted average shares outstanding – diluted 8,874,696 8,874,696 8,874,696 EPS: Basic and diluted $ (0.4 ) $ (0.6 ) $ 0.1

DISCONTINUED OPERATION (Tables)

DISCONTINUED OPERATION (Tables)	12 Months Ended
	Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Balance Sheets Information of Discontinued Operations	2021 2020 Assets: Account receivables $ - $ - Inventory - - Fixed assets, net - - Costumers’ relationship - - Total Assets $ - $ - Liability: Account payables $ - $ 179 Total Liabilities $ - $ 179
Schedule of Operations Information of Discontinued Operations	Year ended December 31, 2021 2020 2019 Revenue: Services $ 440 $ 955 $ 4,553 Cost of revenue: Services 429 1,062 4,291 Gross profit (loss) 11 (107 ) 262 Operating expenses: Research and development, net 16 42 (39 ) Selling and marketing 29 90 330 General and administrative 68 191 598 113 323 889 Operating income (loss) (102 ) (430 ) (627 ) Financial expenses (income) - - 28 Income (loss) on disposal of discontinued operation (1) 529 (1,415 ) - Net Income (loss) $ 427 $ (1,845 ) $ (655 ) (1) During 2020, the Company wrote off the following assets belonging to the discontinued operation: Inventory of $464, Accounts receivable of $233, Fixed assets of $363 and Customers' relationships of $355. During 2021 the company was succeeded to collect and sell some of the account receivable and inventory that were written off in total amount of $529.

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [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, 2021 2020 2019 Income (loss) before taxes on income (tax benefit) from continued operationas reported in the statements of income   $ (4,575 ) $ (4,816 ) $ 2,182 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income (tax benefit) $ (1,052 ) $ (1,108 ) $ 501 Increase (decrease) in taxes on income resulting from: Tax adjustment for foreign subsidiaries subject to a different tax rate   75 50 (26 ) Reduced tax rate on income derived from "Preferred Enterprises" plans   149 580 204 Earnings from foreign subsidiaries (1) - (2,338 ) 91 Valuation allowance for exchange rates differences on deferred taxes not recorded on capital losses   - - (125 ) Deferred tax assets from discontinued operation profit (loss) 98 (138 ) (49 ) Reduced deferred tax asset from expecting utilization of carryforward losses   - 1,984 - Tax in respect of prior years 24 (345 ) - Temporary differences for which no deferred taxes were recorded - (377 ) (55 ) Permanent differences 71 24 55 Other adjustments (27 ) 151 (7 ) Taxes on income (tax benefit) as reported in the statements of income   $ (662 ) $ (1,517 ) $ 589
Schedule of Income (Loss) from Continuing Operations Before Income Tax Domestic and Foreign	f. Income (loss) before taxes on income (tax benefit) is comprised as follows: Year ended December 31, 2021 2020 2019 Domestic (Israel) $ (5,139 ) $ (4,499 ) $ (1,931 ) Foreign (United States) 564 (317 ) 4,113 $ (4,575 ) $ (4,816 ) $ 2,182
Schedule of Components of Income Tax Provision	g. Taxes on income (tax benefit) included in the statements of income: Year ended December 31, 2021 2020 2019 Current: Domestic (Israel) $ - $ - $ - Foreign (United States) - - 181 - - 181 Deferred: Domestic (Israel) (579 ) (683 ) (397 ) Foreign (United States) (107 ) (489 ) 805 (686 ) (1,172 ) 408 Previous years: Domestic (Israel) - (134 ) Foreign (United States) 24 (211 ) - - (345 ) - $ (662 ) $ (1,517 ) $ 589
Schedule of Deferred Tax Assets and Liabilities	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, 2021 2020 Deferred tax assets: Provision for current expected credit losses $ 95 $ 41 Provisions for employee benefits 495 272 Inventory 1,212 987 Capital tax losses carryforward 3,500 3,500 Net operating losses carryforward 3,084 3,017 Other 326 224 Deferred tax assets, before valuation allowance $ 8,712 $ 8,041 Valuation allowance (5,484 ) (5,484 ) Deferred tax assets, net $ 3,228 $ 2,557 Deferred tax liabilities: Property, plant and equipment (1,542 ) (1,647 ) Intangible assets (434 ) (318 ) Other temporary differences deferred tax liabilities - (26 ) Deferred tax liabilities $ (1,976 ) $ (1,991 ) Net $ 1,252 $ 566
Schedule of changes in valuation allowance for deferred tax assets	h. Deferred income taxes (cont.): The following table summarizes the changes in the valuation allowance for deferred tax assets: Balance, December 31, 2018 $ 3,375 Additions during the year 125 Balance, December 31,2019 $ 3,500 Additions during the year 1,984 Balance, December 31,2020 $ 5,484 Additions during the year - Balance, December 31,2021 $ 5,484

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Schedule of Operating Income by Segment	The following financial information is the information that CODM uses for analyzing the segment results. The figures are presented in consolidated method as presented to CODM. The following financial information is a summary of the operating income of each operational segment: Year ended December 31, 2021 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Elimination of inter-company sales Consolidated Revenues Sale of products and services $ 22,238 $ 18,669 $ 33,232 $ 3,834 $ - $ 77,973 Intersegment revenues 3,739 177 - - (3,916 ) - Total revenues 25,977 18,846 33,232 3,834 (3,916 ) 77,973 Cost of revenues 24,044 16,922 26,444 2,978 (3,685 ) 66,703 Gross profit 1,933 1,924 6,788 856 (231 ) 11,270 Research and development 122 80 202 160 (47 ) 517 Selling and marketing 2,040 1,015 1,961 220 (89 ) 5,147 General and administrative 3,128 1,855 3,004 558 (191 ) 8,354 Other expenses (income) (913 ) - (432 ) (19 ) 896 (468 ) Restructuring expenses, net 1,338 386 - 31 - 1,755 Operating income (loss) $ (3,782 ) $ (1,412 ) $ 2,053 $ (94 ) $ (800 ) $ (4,035 ) Financial expenses, net 540 Loss before tax benefits (4,575 ) F - 51 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 20 - SEGMENT INFORMATION (CONT) b. Segments statement operations disclosure (cont.) Year ended December 31, 2020 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and lease Overhaul and coating of jet engine components Elimination of inter-company sales Consolidated Revenues Sale of products and services $ 20,179 $ 20,445 $ 31,189 $ 3,546 $ - $ 75,359 Intersegment revenues 2,946 195 - - (3,141 ) - Total revenues 23,125 20,640 31,189 3,546 (3,141 ) 75,359 Cost of revenues 21,703 17,885 26,961 3,312 (2,937 ) 66,924 Gross profit (loss) 1,422 2,755 4,228 234 (204 ) 8,435 Research and development (3 ) (2 ) 7 183 - 185 Selling and marketing 1,429 1,152 1,527 261 - 4,369 General and administrative 2,183 2,054 2,732 643 - 7,612 Other expenses (income) - 21 - 294 - 315 Operating income (loss) $ (2,187 ) $ (470 ) $ (38 ) $ (1,147 ) $ (204 ) $ (4,046 ) Financial expenses, net 770 Loss before taxes on income (4,816 ) F - 52 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands NOTE 20 - SEGMENT INFORMATION (CONT) b. Segments statement operations disclosure (cont.) Year ended December 31, 2019 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and lease Overhaul and coating of jet engine components Elimination of inter-company sales Consolidated Revenues Sale of products and services $ 20,552 $ 34,183 $ 38,687 $ 4,057 $ - $ 97,479 Intersegment revenues 6,037 250 - - (6,287 ) - Total revenues 26,589 34,433 38,687 4,057 (6,287 ) 97,479 Cost of revenues 23,998 27,852 33,337 3,460 (6,468 ) 82,179 Gross profit 2,591 6,581 5,350 597 181 15,300 Research and development 58 83 7 (35 ) - 113 Selling and marketing 1,530 1,638 1,334 427 - 4,929 General and administrative 1,978 2,734 2,408 534 - 7,654 Operating income (loss) $ (975 ) $ 2,126 $ 1,601 $ (329 ) $ 181 $ 2,604 Financial expenses, net 422 Income before taxes on income 2,182
Schedule of Assets, Depreciation and Amortization, and Capital Expenditures by Segment	c. The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments: Year ended December 31, 2021 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Discontinued operation Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 27,271 27,267 45,112 - 7,128 4,055 110,833 Depreciation and amortization 2,174 740 1,683 - 284 - 4,881 Asset’s impairment 1,800 - - - - - 1,800 Expenditure for segment assets 271 4,831 5,624 - 1,604 - 12,330 Year ended December 31, 2020 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Discontinued operation Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 32,536 21,525 41,433 - 6,073 14,554 116,121 Depreciation and amortization 1,400 1,020 799 - 846 - 4,065 Expenditure for segment assets 765 556 9,410 - 309 - 11,040

ENTITY-WIDE DISCLOSURE (Tables)

ENTITY-WIDE DISCLOSURE (Tables)	12 Months Ended
	Dec. 31, 2021
Segments, Geographical Areas [Abstract]
Schedule of total revenues by geographical location	a. Total revenues - by geographical location were attributed according to customer residential country as follows: Year ended December 31, 2021 2020 2019 Total revenues Total revenues Total revenues Sale of products Israel $ 5,532 $ 3,355 $ 3,464 United States 13,716 12,284 14,181 Other 6,622 7,100 7,374 $ 25,870 $ 22,739 $ 25,019 Year ended December 31, 2021 2020 2019 Total revenues Total revenues Total revenues Sale of Services Israel $ 2,213 $ 3,543 $ 3,624 United States 34,231 34,765 43,196 Other 15,659 14,312 25,640 $ 52,103 $ 52,620 $ 72,460
Schedule of long-lived assets by geographical location	b. Total long-lived assets - by geographical location were as follows: December 31, 2021 2020 2019 Israel $ 8,427 $ 15,071 $ 16,692 United States 26,978 18,908 11,354 Total $ 35,405 $ 33,979 $ 28,046

SUPPLEMENTAL CONSOLIDATED BAL_2

SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule of Supplemental Consolidated Balance Sheets Information	Warranty provision Provision for current expected credit losses Balance, as of December 31, 2018 $ 285 $ 276 Additions 115 84 Deductions (165 ) (46 ) Balance, as of December 31, 2019 $ 235 $ 314 Additions 80 194 Deductions (65 ) (202 ) Balance, as of December 31, 2020 $ 250 $ 306 Additions 80 269 Deductions (87 ) (186 ) Balance, as of December 31, 2021 $ 243 $ 389

GENERAL (Details)

GENERAL (Details)	Dec. 31, 2021
TAT-Engineering [Member]
Subsidiary or Equity Method Investee [Line Items]
Percentage of Ownerhsip held	51.00%
TAT [Member]
Subsidiary or Equity Method Investee [Line Items]
Percentage of Ownerhsip held	49.00%

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - ₪ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share, Basic and Diluted [Abstract]
Ordinary shares, par value per share	₪ 0.9	₪ 0.9
Customer relationships [Member]
Earnings Per Share, Basic and Diluted [Abstract]
Estimated lived intangible assets useful lives, years	7 years
Commercial license [Member]
Earnings Per Share, Basic and Diluted [Abstract]
Estimated lived intangible assets useful lives, years	10 years
Buildings and leasehold improvements [Member] | Minimum [Member]
Property, plant and equipment
Estimated useful lives, years	15 years
Buildings and leasehold improvements [Member] | Maximum [Member]
Property, plant and equipment
Estimated useful lives, years	39 years
Machinery and Equipment [Member] | Minimum [Member]
Property, plant and equipment
Estimated useful lives, years	15 years
Machinery and Equipment [Member] | Maximum [Member]
Property, plant and equipment
Estimated useful lives, years	20 years
Motor Vehicles [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	5 years
Software [Member]
Property, plant and equipment
Estimated useful lives, years	7 years

FAIR VALUE MEASUREMENT (Narrati

FAIR VALUE MEASUREMENT (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Notional amount of open forward contracts	$ 0	$ 3,345
Notional amount of open call options	8,458
Notional amount of open put options	$ 8,858

FAIR VALUE MEASUREMENT (Schedul

FAIR VALUE MEASUREMENT (Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Derivative financial instruments	$ 51	$ 128
Level 1 [Member]
Assets:
Derivative financial instruments
Level 2 [Member]
Assets:
Derivative financial instruments	51	128
Level 3 [Member]
Assets:
Derivative financial instruments

INVENTORY (Narrative) (Details)

INVENTORY (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Total amount of Rotables	$ 8,623	$ 9,183
Slow moving inventory write-down	$ 624	$ 769	$ 490

INVENTORY (Schedule of Inventor

INVENTORY (Schedule of Inventory, Net) (Details) - USD ($) $ in Thousands		Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials and components		$ 13,741	$ 11,281
Work in progress		11,985	15,432
Spare parts		13,462	13,147
Finished goods		1,815	1,363
Total inventory	[1]	$ 41,003	$ 41,223
[1]	The total amount of Rotables included in the company spare parts inventory for the years ended December 31, 2021 and 2020 were $8,623 and $9,183, respectively.

INVESTMENT IN AFFILIATES (Narra

INVESTMENT IN AFFILIATES (Narrative) (Details)	Dec. 31, 2021
TAT-Engineering [Member]
Investments in and Advances to Affiliates [Line Items]
Percentage of Ownerhsip held	51.00%
TAT [Member]
Investments in and Advances to Affiliates [Line Items]
Percentage of Ownerhsip held	49.00%

INVESTMENT IN AFFILIATES (Summa

INVESTMENT IN AFFILIATES (Summary of Financial Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Balance sheets:
Current assets	$ 71,981	$ 79,443
Non-current assets	35,405	33,979	$ 28,046
Current liabilities	24,577	25,183
Statements of operation:
Revenues	77,973	75,359	97,479
Gross loss	11,270	8,435	15,300
Net losses attributable to the Company	(3,562)	(5,329)	806
TAT-Engineering LLC [Member]
Balance sheets:
Current assets	358	320
Non-current assets	1,091	1,211
Current liabilities	1,154	1,088
Statements of operation:
Revenues	501	413	877
Gross loss	(22)	(153)	(228)
Net loss	(148)	(365)	(291)
Net losses attributable to the Company	$ (76)	$ (185)	$ (132)

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 86,237	$ 77,263
Less: Accumulated depreciation	55,775	51,526
Depreciated cost	30,462	25,737
Depreciation expenses	4,718	3,960	$ 4,238
Restructuring expense	1,755
Land and Buildings [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	18,031	15,762
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	63,875	57,245
Motor Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	302	313
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,906	1,895
Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,123	$ 2,048
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Acceleration of amortization	1,200
Impairment charges	1,800
OEM [Member]
Property, Plant and Equipment [Line Items]
Restructuring expense	$ 600

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021USD ($)
Lease expiration date	Dec. 31, 2030
Write off Operating ROU assets	$ 1.8
Write off Operating Lease liability	$ 3.3
TAT Industries [Member]
Lease expiration date	Dec. 31, 2024

LEASES (Schedule of Lease Cost)

LEASES (Schedule of Lease Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Lessee Disclosure [Abstract]
Operating lease expenses	$ 2,080	$ 2,158

LEASES (Schedule of Supplementa

LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lessee Disclosure [Abstract]
Operating cash flows from operating leases	$ 2,226	$ 2,158
Right-of-use assets obtained in exchange for lease obligations (non-cash)	$ 399	$ 1,756	$ 648

LEASES (Schedule of Operating C

LEASES (Schedule of Operating Cash Flows) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
Operating lease right-of-use assets	$ 3,114	$ 6,767
Current operating lease liabilities	1,169	1,614
Non-current operating lease liabilities	1,989	5,758
Total operating lease liabilities	$ 3,158	$ 7,372
Israel [Member]
Operating Leases
Weighted Average Remaining Lease Term	2 years	4 years
Weighted Average discount rate percentage	4.50%	4.50%
United States [Member]
Operating Leases
Weighted Average Remaining Lease Term	5 years	5 years
Weighted Average discount rate percentage	4.84%	4.84%

LEASES (Schedule of Maturities

LEASES (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Lessee Disclosure [Abstract]
2022	$ 1,221
2023	757
2024	643
2025	241
2026	241
2027 and after	182
Total lease payments	3,285
Less imputed interest	(127)
Total	$ 3,158	$ 7,372

INTANGIBLE ASSETS (Narrative) (

INTANGIBLE ASSETS (Narrative) (Details) $ in Thousands	Dec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Year one	$ 160
Year Two	160
Year Three	160
Year Four	160
Year Five	$ 160

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost		$ 671
Impairment		(298)
Accumulated amortization		(373)
Amortized cost
Commercial license [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	2,030	1,513
Accumulated amortization	(201)	(38)
Amortized cost	$ 1,829	$ 1,475

RESTRUCTURING COST (Schedule of

RESTRUCTURING COST (Schedule of Restructuring plan) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020
Balance sheet
Provision for employee's termination expenses		$ 657
Investment in building and infrastructures		2,382
Investment in machineries	[1]	3,478
Total		6,517
Restructuring expenses, net
Employee's termination cost		686
Restructuring income from lease modification		(1,315)
Restructuring expenses from asset's impairment		1,800
Other restructuring expenses		584
Cost of sales
Acceleration of assets depreciation expenses		1,200
Total		2,955
Net cash used in operating activity for restructuring expenses		580
Government incentives [Member]
Balance sheet
Investment in machineries		$ 1,200
[1]	Investment in machineries were offset by a grant of $1.2 million received from the State Of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years.

LONG TERM LOANS (Narrative) (De

LONG TERM LOANS (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Current maturities of long-term loans		$ 691	$ 1,477
Short-term credit line		6,008	3,000
TAT Industries [Member]
Debt Instrument [Line Items]
Long-term debt, face amount		3,000
Current maturities of long-term loans		$ 691
Long term debt, interest rate		3.10%
Long-term debt, interest rate above LIBOR		1.50%
Long-term debt, frequency of payment		equal monthly instalments as of April 2021 through February 2031
Short-term credit line	$ 3,000		3,000
Interest rate on short-term credit line	3.60%
Short-term credit line convenant terms		The loans have financial covenants such as a) tangible net worth to funded debt ratio of not less than 3 to 1, b) positive EBITDA, and c) minimum eligible accounts receivable of $6 million.
TAT Industries [Member] | Payroll Protection Program [Member]
Debt Instrument [Line Items]
Long-term debt, face amount			3,100
TAT Industries [Member] | Payroll Protection Program [Member] | Grant [Member]
Debt Instrument [Line Items]
Long-term debt, face amount		$ 1,400	$ 1,700
TAT Industries [Member] | Aggregate [Member]
Debt Instrument [Line Items]
Long-term debt, face amount		$ 3,300

LONG TERM LOANS (Schedule of Ma

LONG TERM LOANS (Schedule of Maturities on Long Term Loans) (Details) $ in Thousands	Dec. 31, 2021USD ($)
Long-term Debt, by Current and Noncurrent [Abstract]
2022	$ 691
2023	877
2024	877
2025	738
2026 and after	3,487
Total	$ 6,670

GOVERNMENT GRANTS (Details)

GOVERNMENT GRANTS (Details) $ in Thousands	Dec. 31, 2021USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Government grants receivable	$ 982
TAT Industries [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Government grants receivable	$ 3,600

ACCRUED EXPENSES (Schedule of O

ACCRUED EXPENSES (Schedule of Other Account Payable and Accrued Expenses) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Other account payable and accrued expenses:
Employees and payroll accruals	$ 3,463	$ 2,714
Accrued expenses	315	716
Authorities	327	415
Advances from customers	1,739	1,263
Warranty provision	243	250
Accrued royalties and rebate sales commissions	421	1,200
Other	451	133
Total other account payable and accrued expenses	$ 6,959	$ 6,691

RELATED PARTIES' TRANSACTIONS_3

RELATED PARTIES' TRANSACTIONS AND BALANCES (Schedule of Transactions and Balances with Related Parties) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Transactions:
Income - Sales to related-party company	[1]	$ 88	$ 173	$ 596
Cost and expenses - Supplies from related party	[1]	654	362	$ 552
Balances:
Trade receivables and other receivables	[1]	799	740
Trade payables and other payables	[1]	$ 95	$ 122
[1]	includes mainly transactions with TAT-Engineering affiliated companies.

LONG-TERM EMPLOYEE-RELATED OB_3

LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Severance payments actually paid	$ 97	$ 380	$ 689
Expected deposits to be made in the next fiscal year for severance and pension payment obligations	600
2022	215
2023	63
2024	49
2025	55
2026	77
Thereafter (through 2030)	1,045
Total	1,504
TAT and Turbochrome [Member]
Defined Benefit Plan Disclosure [Line Items]
Severance pay expenses	778	830	1,096
Limco Piedmont Inc [Member]
Defined Benefit Plan Disclosure [Line Items]
401(K) profit sharing plan contributions made by company	$ 349	$ 156	$ 367
Percentage of employees contribution matched by employer	100.00%
Percentage of employees contribution	2.00%
Percentage of employees contribution matched by employer, two	50.00%
Percentage of employees contribution, two	3.00%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Commissions and Royalty Commitments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Commissions arrangements:
Commission expenses	$ 423	$ 528	$ 694
Royalty commitments:
Royalty expense	95	174	42
Limco Piedmont Inc [Member]
Royalty commitments:
Royalty expense	$ 2,245	$ 1,648	$ 2,310
Limco Piedmont Inc [Member] | Minimum [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%
Limco Piedmont Inc [Member] | Maximum [Member]
Royalty commitments:
Royalties percentage rate for sales of products developed by third parties	13.00%
Royalties percentage rate for sales of additional products developed by third parties	20.00%
TAT Technologies Ltd [Member] | Minimum [Member]
Commissions arrangements:
Percentage rate paid to sales agents for marketing commissions	1.00%
Royalty commitments:
Royalties percentage rate for sales of products developed by third parties	12.00%
TAT Technologies Ltd [Member] | Maximum [Member]
Commissions arrangements:
Percentage rate paid to sales agents for marketing commissions	10.00%
Royalty commitments:
Royalties percentage rate for sales of products developed by third parties	20.00%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Guarantees) (Details) $ in Thousands	Dec. 31, 2021USD ($)
TAT Technologies Ltd [Member]
Guarantees:
Bank guarantee to secure liability to Israeli customs	$ 40
TAT Technologies Ltd One [Member]
Guarantees:
Bank guarantee to secure liability to Israeli customs	64
TAT Technologies Ltd Two [Member]
Guarantees:
Bank guarantee to secure liability to Israeli customs	32
Limco Piedmont Inc [Member]
Guarantees:
Bank guarantee to secure liability to lessor	$ 930

SHAREHOLDERS' EQUITY (Stock Opt

SHAREHOLDERS' EQUITY (Stock Option Plans TAT Technology) (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
		Jun. 28, 2012₪ / sharesshares	Dec. 31, 2021₪ / shares$ / sharesshares	Dec. 31, 2020₪ / shares$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2021USD ($)$ / sharesshares	Aug. 30, 2021$ / sharesshares	Jul. 25, 2021$ / sharesshares	Mar. 30, 2021$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares	Oct. 15, 2020$ / sharesshares	Sep. 26, 2019$ / sharesshares	Sep. 22, 2019$ / sharesshares	Aug. 29, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares, par value per share | ₪ / shares			₪ 0.9	₪ 0.9
Incremental cost | $						$ 74
Number of options
Options, beginning			621,460	571,460	528,268
Options, Granted			220,000	50,000	170,000
Options, Forfeited			(121,460)		(126,808)
Options, Exercised
Options, ending			720,000	621,460	571,460	528,268
Exercisable at end of year					264,389		379,375				381,629
Weighted average exercise price
Options, beginning | $ / shares			₪ 7.26	₪ 7.53	$ 9.03
Options, Granted | $ / shares			6.45	4.58	5.44
Options, Forfeited | $ / shares			8.9		11.19
Options, Exercised | $ / shares
Options, ending | $ / shares			6.8	7.26	7.53	$ 9.03
Exercisable at end of year | $ / shares					7.74		$ 7.44				$ 7.91
Weighted-average grant-date fair value of options granted | $ / shares			₪ 1.92	₪ 1.41	$ 1.35
2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for the plan		380,000						100,000	20,000	25,000		50,000	50,000	50,000	50,000
Vesting period for plan		4 years
Ordinary shares, par value per share | ₪ / shares		₪ 0.9
Exercise price | $ / shares								$ 7	$ 6.41	$ 5.91		$ 4.58	$ 5.26	$ 5.32	$ 5.65
Dividend yield			0.00%	0.00%	0.00%
Weighted average exercise price
Aggregate intrinsic value | $					$ 0		$ 0				$ 0
Unrecognized compensation cost related to non-vested stock options | $							$ 632
Unrecognized compensation weighted average period of recognition, years				3 years 11 months 19 days
2012 Plan [Member] | Tel Aviv Stock Exchange [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares approved allocated to grantees			821,982
2012 Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for the plan		300,000				300,000
Expected stock price volatility			45.60%	44.70%	34.20%
Expected option life (in years)			3 years 6 months	3 years 6 months	3 years 6 months
Risk free interest rate			0.10%	0.12%	1.44%
2012 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for the plan	[1]	980,000				980,000
Expected stock price volatility			52.00%	43.50%	36.80%
Expected option life (in years)			5 years	5 years	5 years
Risk free interest rate			0.64%	0.25%	1.63%
2012 Plan [Member] | Vest upon the lapse of 12 months [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
2012 Plan [Member] | Vest on a quarterly basis [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for plan		3 years
Vesting percentage		75.00%
2012 Plan One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for the plan										25,000
Exercise price | $ / shares										$ 5.91
2012 Plan Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for the plan										25,000
Exercise price | $ / shares										$ 5.91
2012 Plan Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for the plan										25,000
Exercise price | $ / shares										$ 5.91
[1]	of which 821,982 options are approved by the Tel Aviv Stock Exchange to be allocated to grantees.

EARNINGS PER SHARE (EPS) (Detai

EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator for EPS:
Net income (loss)	$ (3,562)	$ (5,329)	$ 806
Denominator for EPS:
Weighted average shares outstanding - basic	8,874,696	8,874,696	8,874,696
Dilutive shares
Weighted average shares outstanding - diluted	8,874,696	8,874,696	8,874,696
EPS:
Basic and diluted	$ (0.4)	$ (0.6)	$ 0.1
Anti-dilutive options excluded from calculation of diluted income (loss) per share	720,000	621,460	482,282

DISCONTINUED OPERATION (Schedul

DISCONTINUED OPERATION (Schedule of Balance Sheets Information of Discontinued Operations) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Account receivables
Inventory
Fixed assets, net
Customers' relationship
Total Assets
Liability:
Account payables		179
Total Liabilities		$ 179

DISCONTINUED OPERATION (Sched_2

DISCONTINUED OPERATION (Schedule of Operations Information of Discontinued Operations) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross profit (loss)		$ 11	$ (107)	$ 262
Operating expenses:
Research and development, net		16	42	(39)
Selling and marketing		29	90	330
General and administrative		68	191	598
Total operating expenses		113	323	889
Operating income (loss)		(102)	(430)	(627)
Financial expenses (income)				28
Income (loss) on disposal of discontinued operation	[1]	529	(1,415)
Net Income (loss)		427	(1,845)	(655)
Inventory write off		624	769	490
Accounts receivable write off		248	(8)	38
Discontinued Operation [Member]
Operating expenses:
Inventory write off		529	464
Accounts receivable write off		529	233
Fixed assets write off			363
Customer relationships write off			355
Service [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue		440	955	4,553
Cost of revenue		$ 429	$ 1,062	$ 4,291
[1]	During 2020, the Company wrote off the following assets belonging to the discontinued operation: Inventory of $464, Accounts receivable of $233, Fixed assets of $363 and Customers' relationships of $355. During 2021 the company was succeeded to collect and sell some of the account receivable and inventory that were written off in total amount of $529.

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jan. 31, 2017	Aug. 31, 2013	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2014
Income Taxes [Line Items]
Preferred Income tax rate not within Development Zone A			12.00%			16.00%
Preferred Income tax rate for Development Zone A			6.00%			9.00%
Maximum tax rate on dividends distributed from Preferred Income.		20.00%	15.00%
Corporate tax rate for Israel			23.00%	23.00%	23.00%
Uniform tax rate for Development Zone A	7.50%
Deferred tax asset, state operating loss carryforward			$ 3,500	$ 3,500
United States [Member]
Income Taxes [Line Items]
Corporate tax rate for Israel			21.00%	21.00%	21.00%
United States [Member] | Minimum [Member]
Income Taxes [Line Items]
Corporate tax rate for Israel			3.00%	3.00%	3.00%
United States [Member] | Maximum [Member]
Income Taxes [Line Items]
Corporate tax rate for Israel			6.00%	6.00%	6.00%
U.S. Subsidiary [Member]
Income Taxes [Line Items]
Deferred tax asset, state operating loss carryforward			$ 1,519
TAT Technologies Ltd [Member]
Income Taxes [Line Items]
Preferred Income tax rate not within Development Zone A			16.00%
Deferred tax asset, capital loss carryforward			$ 1,502
TAT Gedera [Member]
Income Taxes [Line Items]
Deferred tax asset, capital loss carryforward			$ 2,434
Turbo chrome [Member]
Income Taxes [Line Items]
Preferred Income tax rate for Development Zone A			7.50%
US and Israel [Member]
Income Taxes [Line Items]
Loan received			$ 6,000	$ 6,000

TAXES ON INCOME (Schedule of Re

TAXES ON INCOME (Schedule of Reconciliation of Tax Provisions to the Domestic and Effective Tax Rate) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income (loss) before taxes on income (tax benefit) from continued operationas reported in the statements of income		$ (4,575)	$ (4,816)	$ 2,182
Statutory tax rate in Israel		23.00%	23.00%	23.00%
Theoretical taxes on income (tax benefit)		$ (1,052)	$ (1,108)	$ 501
Increase (decrease) in taxes on income resulting from:
Tax adjustment for foreign subsidiaries subject to a different tax rate		75	50	(26)
Reduced tax rate on income derived from "Preferred Enterprises" plans		149	580	204
Earnings from foreign subsidiaries	[1]		(2,338)	91
Valuation allowance for exchange rates differences on deferred taxes not recorded on capital losses				(125)
Deferred tax assets from discontinued operation profit (loss)		98	(138)	(49)
Reduced deferred tax asset from expecting utilization of carryforward losses			1,984
Tax in respect of prior years		24	(345)
Temporary differences for which no deferred taxes were recorded			(377)	(55)
Permanent differences		71	24	55
Other adjustments		(27)	151	(7)
Taxes on income (tax benefit)		$ (662)	$ (1,517)	$ 589
[1]	The Company record an accrual that related to a deferred tax liability due to the possibility of future

TAXES ON INCOME (Schedule of In

TAXES ON INCOME (Schedule of Income (Loss) from Continuing Operations Before Income Tax Domestic and Foreign) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic (Israel)	$ (5,139)	$ (4,499)	$ (1,931)
Foreign (United States)	564	(317)	4,113
Income before taxes on income	$ (4,575)	$ (4,816)	$ 2,182

TAXES ON INCOME (Schedule of Co

TAXES ON INCOME (Schedule of Components of Income Tax Provision) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Domestic (Israel)
Foreign (United States)			181
Total current			181
Deferred:
Domestic (Israel)	(579)	(683)	(397)
Foreign (United States)	(107)	(489)	805
Total deferred	(686)	(1,172)	408
Previous Years:
Domestic (Israel)		(134)
Foreign (United States)	24	(211)
Total previous years	24	(345)
Taxes on income (tax benefit)	$ (662)	$ (1,517)	$ 589

TAXES ON INCOME (Schedule of De

TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Provision for current expected credit losses	$ 95	$ 41
Provisions for employee benefits	495	272
Inventory	1,212	987
Capital tax losses carryforward	3,500	3,500
Net operating losses carryforward	3,084	3,017
Other	326	224
Deferred tax assets, before valuation allowance	8,712	8,041
Valuation allowance	(5,484)	(5,484)	$ (3,500)	$ (3,375)
Deferred tax assets, net	3,228	2,557
Deferred tax liabilities:
Property, plant and equipment	(1,542)	(1,647)
Intangible assets	(434)	(318)
Other temporary differences deferred tax liabilities		(26)
Deferred tax liabilities	(1,976)	(1,991)
Net	$ 1,252	$ 566

TAXES ON INCOME (Schedule of Ch

TAXES ON INCOME (Schedule of Changes in Valuation Allowance) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in Valuation Allowance
Balance	$ 5,484	$ 3,500	$ 3,375
Additions during the year		1,984	125
Balance	$ 5,484	$ 5,484	$ 3,500

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Operating Income By Segment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	$ 77,973	$ 75,359	$ 97,479
Cost of revenues	66,703	66,924	82,179
Gross profit	11,270	8,435	15,300
Research and development	517	185	113
Selling and marketing	5,147	4,369	4,929
General and administrative	8,354	7,612	7,654
Other expenses (income)	(468)	315
Restructuring expenses, net	1,755
Operating income (loss)	(4,035)	(4,046)	2,604
Financial expense, net	540	770	422
Loss before tax benefits	(4,575)	(4,816)	2,182
Sale of Products and Services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	77,973	75,359	97,479
Intersegment Revenues [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues
Elimination of inter-company sales [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	(3,916)	(3,141)	(6,287)
Cost of revenues	(3,685)	(2,937)	(6,468)
Gross profit	(231)	(204)	181
Research and development	(47)
Selling and marketing	(89)
General and administrative	(191)
Other expenses (income)	896
Restructuring expenses, net
Operating income (loss)	(800)	(204)	181
Elimination of inter-company sales [Member] | Sale of Products and Services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues
Elimination of inter-company sales [Member] | Intersegment Revenues [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	(3,916)	(3,141)	(6,287)
OEM of Heat Transfer Solutions and Aviation Accessories [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	25,977	23,125	26,589
Cost of revenues	24,044	21,703	23,998
Gross profit	1,933	1,422	2,591
Research and development	122	(3)	58
Selling and marketing	2,040	1,429	1,530
General and administrative	3,128	2,183	1,978
Other expenses (income)	(913)
Restructuring expenses, net	1,338
Operating income (loss)	(3,782)	(2,187)	(975)
OEM of Heat Transfer Solutions and Aviation Accessories [Member] | Sale of Products and Services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	22,238	20,179	20,552
OEM of Heat Transfer Solutions and Aviation Accessories [Member] | Intersegment Revenues [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	3,739	2,946	6,037
MRO Services for heat transfer components and OEM of heat transfer solutions [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	18,846	20,640	34,433
Cost of revenues	16,922	17,885	27,852
Gross profit	1,924	2,755	6,581
Research and development	80	(2)	83
Selling and marketing	1,015	1,152	1,638
General and administrative	1,855	2,054	2,734
Other expenses (income)		21
Restructuring expenses, net	386
Operating income (loss)	(1,412)	(470)	2,126
MRO Services for heat transfer components and OEM of heat transfer solutions [Member] | Sale of Products and Services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	18,669	20,445	34,183
MRO Services for heat transfer components and OEM of heat transfer solutions [Member] | Intersegment Revenues [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	177	195	250
MRO services for Aviation Components and Lease [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	33,232	31,189	38,687
Cost of revenues	26,444	26,961	33,337
Gross profit	6,788	4,228	5,350
Research and development	202	7	7
Selling and marketing	1,961	1,527	1,334
General and administrative	3,004	2,732	2,408
Other expenses (income)	(432)
Restructuring expenses, net
Operating income (loss)	2,053	(38)	1,601
MRO services for Aviation Components and Lease [Member] | Sale of Products and Services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	33,232	31,189	38,687
MRO services for Aviation Components and Lease [Member] | Intersegment Revenues [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues
Overhaul and coating of jet engine components [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	3,834	3,546	4,057
Cost of revenues	2,978	3,312	3,460
Gross profit	856	234	597
Research and development	160	183	(35)
Selling and marketing	220	261	427
General and administrative	558	643	534
Other expenses (income)	(19)	294
Restructuring expenses, net	31
Operating income (loss)	(94)	(1,147)	(329)
Overhaul and coating of jet engine components [Member] | Sale of Products and Services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	3,834	3,546	4,057
Overhaul and coating of jet engine components [Member] | Intersegment Revenues [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues

SEGMENT INFORMATION (Schedule_2

SEGMENT INFORMATION (Schedule of Assets, Depreciation and Amortization, and Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 110,833	$ 116,121
Depreciation and amortization	4,881	4,065	$ 4,292
Expenditure for segment assets	12,330	11,040
Discontinued Operation [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets
Depreciation and amortization
Asset's impairment
Expenditure for segment assets
OEM of Heat Transfer Solutions and Aviation Accessories [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	27,271	32,536
Depreciation and amortization	2,174	1,400
Asset's impairment	1,800
Expenditure for segment assets	271	765
MRO Services for heat transfer components and OEM of heat transfer solutions [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	27,267	21,525
Depreciation and amortization	740	1,020
Expenditure for segment assets	4,831	556
MRO services for Aviation Components and Lease [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	45,112	41,433
Depreciation and amortization	1,683	799
Expenditure for segment assets	5,624	9,410
Overhaul and coating of jet engine components [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	7,128	6,073
Depreciation and amortization	284	846
Expenditure for segment assets	1,604	309
Amounts not allocated to segments [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	4,055	14,554
Depreciation and amortization
Expenditure for segment assets

ENTITY-WIDE DISCLOSURE (Narrati

ENTITY-WIDE DISCLOSURE (Narrative) (Details)	12 Months Ended
	Dec. 31, 2021
Sales [Member] | Customer Concentration Risk [Member] | Single Customer [Member]
Product Information [Line Items]
Concentration Risk, Percentage	12.80%

ENTITY-WIDE DISCLOSURE (Schedul

ENTITY-WIDE DISCLOSURE (Schedule of Total Revenues by Geographical Location) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 77,973	$ 75,359	$ 97,479
Product [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	25,870	22,739	25,019
Service [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	52,103	52,620	72,460
Israel [Member] | Product [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	5,532	3,355	3,464
Israel [Member] | Service [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	2,213	3,543	3,624
United States [Member] | Product [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	13,716	12,284	14,181
United States [Member] | Service [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	34,231	34,765	43,196
Other [Member] | Product [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	6,622	7,100	7,374
Other [Member] | Service [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 15,659	$ 14,312	$ 25,640

ENTITY-WIDE DISCLOSURE (Sched_2

ENTITY-WIDE DISCLOSURE (Schedule of Long-Lived Assets by Geographical Location) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 35,405	$ 33,979	$ 28,046
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	8,427	15,071	16,692
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 26,978	$ 18,908	$ 11,354

SUPPLEMENTAL CONSOLIDATED BAL_3

SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Warranty provision [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning	$ 250	$ 235	$ 285
Additions	80	80	115
Deductions	(87)	(65)	(165)
Balance, ending	243	250	235
Provision for current expected credit losses [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning	306	314	276
Additions	269	194	84
Deductions	(186)	(202)	(46)
Balance, ending	$ 389	$ 306	$ 314