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LEASES
12 Months Ended
Dec. 31, 2022
Lessee Disclosure [Abstract]  
LEASES
NOTE 7 -
LEASES
 
During 2021 the Company start to provided to the Company’s customers leasing services of APU engines. The results are reported as part of the Company's activity in MRO services for aviation components. The revenues from the lease services amounted to $6.8 and $2.7 million for the years ended December 31, 2022 and 2021 respectively.
 
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, certain leases contain renewal options as defined in the agreements.
 
TAT leases its factory in Gedera from TAT Industries until the end of 2024. In December 2021 the TAT and the landlord agreed on the settlement conditions which signed on January 10, 2022. Pursuant to such agreement, it was agreed that TAT will vacate the facility in Gedera on March 31, 2022. Due to the execution of such agreement, the Company wrote off operating ROU assets of $1.8 million and lease liability of $3.3 million as of December 31, 2021. Net income resulting from the write-off of such lease assets and liability was recognized as operating restructuring expenses.

The lease cost was as follows:

 

   

Year ended

December 31,

2022

   

Year ended

December 31,

2021

 
                 

Operating lease expenses

   

1,316

     

2,080

 

Supplemental cash flow information related to leases was as follows:

 

   

Year ended

December 31,

2022

   

Year ended

December 31,

2021

 
                 

Operating cash flows from operating leases

   

1,316

     

2,226

 

Right-of-use assets obtained in exchange for lease obligations (non-cash)

   

318

     

399

 

 

Supplemental balance sheet information related to operating leases is as follows:

 

   

December 31,

2022

   

December 31,

2021

 

Operating Leases

           

Operating lease right-of-use assets

   

2,477

     

3,114

 

 

               

Current operating lease liabilities

   

904

     

1,169

 

Non-current operating lease liabilities

   

1,535

     

1,989

 

Total operating lease liabilities

   

2,439

     

3,158

 

 

               

Weighted Average Remaining Lease Term

               

Operating leases - Israel

 

2 years

   

2 years

 

Operating leases – United States

 

4 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, 2022, the maturities of lease liabilities were as follows:

 

Year

 

Amount

 

2023

 

 

938

 

2024

   

835

 

2025

   

454

 

2026

   

246

 

2027 and after

   

-

 

Total lease payments

   

2,473

 

Less imputed interest

   

(34

)

Total

 

$

2,439