Segment Reporting

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

Note 4 – Segment Reporting

Segment information is used by management for making operating decisions and assessing the performance of the Company. Management evaluates the performance of its segments based primarily on operating income.

The Company’s reportable segments are as follows:

• Climate Control Seats (CCS) – variable temperature seat climate control system designed to improve the temperature comfort of automobile passengers. This segment also includes the heated and cooled cup holder and heated and cooled mattress divisions.

• Advanced Technology – a division engaged in research and development efforts to improve the efficiency of thermoelectric devices and to develop, market and distribute products based on this new technology. It includes U.S. Department of Energy sponsored research projects, such as the development of a commercially viable thermoelectric generator.

• W.E.T. Automotive AG (W.E.T.) –W.E.T. is being evaluated currently as an individual segment until such time as Gentherm is able to fully evaluate and implement its future integration plans and strategy.

The tables below present segment information about the reported product revenues and operating income of the Company for the three months and nine month periods ended September 30, 2012 and 2011. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level at this time. Goodwill as of September 30, 2012 and 2011 pertained entirely to our W.E.T. segment.

Three Months Ended September 30,	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2012:
Product revenues	$	33,966	$	—		$	107,092	$	—		$	141,058
Depreciation and amortization		333		133			6,692		342			7,500
Operating income (loss)		9,328		(1,475	)		8,249		(5,908	)		10,194
2011:
Product revenues	$	30,418	$	99		$	95,122	$	—		$	125,639
Depreciation and amortization		309		143			8,637		271			9,360
Operating income (loss)		7,527		(1,551	)		3,745		(3,907	)		5,814

The Advanced Technology operating loss for the three months ended September 30, 2012 and 2011 is net of $656 and $235, respectively, of reimbursed research and development costs. Reconciling items include historical Gentherm’s corporate selling, general and administrative costs and, for 2011 only, acquisition transaction costs. W.E.T. product revenues include the effect of the first historical Gentherm vehicle program to be produced in a W.E.T. facility totaling $6,534 and $4,426 for the three months ending September 30, 2012 and 2011, respectively.

Nine Months Ended September 30,	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2012:
Product revenues	$	96,117	$	—		$	310,620	$	—		$	406,737
Depreciation and amortization		941		399			20,697		865			22,902
Operating income (loss)		25,066		(4,605	)		22,274		(14,962	)		27,773
2011:
Product revenues	$	97,663	$	609		$	140,300	$	—		$	238,572
Depreciation and amortization		778		428			13,967		551			15,454
Operating income (loss)		24,933		(4,576	)		5,579		(14,847	)		11,089

The Advanced Technology operating loss for the nine months ended September 30, 2012 and 2011 is net of $1,763 and $581, respectively, of reimbursed research and development costs. Reconciling items include historical Gentherm’s corporate selling, general and administrative costs and, for 2011 only, acquisition transaction costs. W.E.T. product revenues include the effect of the first historical Gentherm vehicle program to be produced in a W.E.T. facility totaling $20,650 and $4,426 for the nine months ending September 30, 2012 and 2011, respectively.

Total revenues information by geographic area:

	Three Months Ended September 30,
	2012				2011
United States	$	60,012	42	%	$	46,962	37	%
China		17,773	13	%		12,619	10	%
Germany		15,694	11	%		15,397	12	%
Japan		10,716	8	%		7,539	6	%
South Korea		10,294	7	%		8,922	7	%
Canada		4,375	3	%		3,504	3	%
Hungary		3,581	3	%		3,674	3	%
Czech Republic		3,407	2	%		4,853	4	%
Mexico		2,782	2	%		5,675	5	%
Other		12,424	9	%		16,494	13	%
Total product revenues	$	141,058	100	%	$	125,639	100	%

	Nine Months Ended September 30,
	2012				2011
United States	$	173,233	43	%	$	82,569	35	%
Germany		49,405	12	%		24,024	10	%
China		43,510	11	%		18,761	8	%
South Korea		31,213	8	%		28,246	12	%
Japan		24,014	6	%		16,618	7	%
Canada		12,959	3	%		7,705	3	%
Czech Republic		12,102	3	%		7,601	3	%
Mexico		11,467	3	%		18,677	8	%
Hungary		9,527	2	%		5,363	2	%
Other		39,307	10	%		29,008	12	%
Total product revenues	$	406,737	100	%	$	238,572	100	%