Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting

Note 13 — Segment Reporting

Segment information is used by management for making operating decisions and assessing the performance of the Company. Essentially, management evaluates the performance of its segments based primarily on operating income. Such accounting policies are the same as those described in Note 2.

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 produced by historical Gentherm. This segment also includes the heated and cooled cup holder and heated and cooled mattress divisions to which results individually are not currently significant.

• Advanced Technology (formerly BSST) — 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 technology.

• W.E.T. — The W.E.T. acquisition 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 years ended December 31, 2012, 2011 and 2010. Asset information by segment is not reported since the Company does not manage assets at a segment level at this time.

	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2012:
Product revenues	$	132,265	$	—		$	422,714	$	—		$	554,979
Depreciation and amortization		1,215		478			27,747		1,187			30,627
Operating income (loss)		11,479		(6,571	)		50,980		(19,830	)		36,058
2011:
Product revenues	$	131,732	$	608		$	237,248	$	—		$	369,588
Depreciation and amortization		1,032		560			20,900		790			23,282
Operating income (loss)		33,025		(6,872	)		10,866		(19,211	)		17,808
2010:
Product revenues	$	111,669	$	734		$	—	$	—		$	112,403
Depreciation and amortization		514		524			—		260			1,298
Operating income (loss)		28,817		(6,505	)		—		(10,955	)		11,357

The Advanced Technology operating loss is net of reimbursement for developmental expense of $2,239, $932 and $2,269 for the years ended 2012, 2011 and 2010, respectively. Reconciling items include selling, general and administrative costs of $19,830, $13,895 and $10,955, respectively, for years ended December 31, 2012, 2011 and 2010 and costs associated with the acquisition of W.E.T. of $5,316 for the year ended December 31, 2011.

Revenue (based on shipment destination) by geographic area is as follows:

	2012		%			2011		%			2010		%
United States	$	233,737		42	%	$	134,010		36	%	$	41,907		37	%
Germany		67,132		12	%		40,833		11	%		705		1	%
China		55,674		10	%		31,193		9	%		1,178		1	%
Korea		42,878		8	%		37,913		10	%		18,691		16	%
Japan		35,279		6	%		25,295		7	%		21,058		19	%
Canada		17,582		3	%		12,305		3	%		4,246		4	%
Czech Republic		15,361		3	%		11,722		3	%		—		—	%
Mexico		14,988		3	%		21,529		6	%		15,970		14	%
United Kingdom		13,194		2	%		10,686		3	%		8,595		8	%
Other		59,154		11	%		44,102		12	%		53		—	%
Total Foreign		321,242		58	%		235,578		64	%		70,496		63	%
	$	554,979		100	%	$	369,588		100	%	$	112,403		100	%

In 2012, two domestic (Johnson Controls and Lear) and one foreign (Bosch) represented 22%, 18% and 10%, respectively, of the Company’s total revenues. In 2011, two domestic (Johnson Controls and Lear) and one foreign (Bosch) represented 20%, 20% and 9%, respectively, of the Company’s total revenues. In 2010, three domestic customers (Lear, Bridgewater and Johnson Controls) represented 34%, 15% and 13%, respectively, of the Company’s product revenues.