Segment Reporting

3 Months Ended

Mar. 31, 2013

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 month period ended March 31, 2013 and 2012. 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 March 31, 2013 and 2012 pertained entirely to our W.E.T. segment.

Three Months Ended March 31,	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2013:
Product revenues	$	32,978	$	—		$	115,112	$	—		$	148,090
Depreciation and amortization		333		114			7,203		284			7,934
Operating income (loss)		8,901		(1,790	)		9,274		(6,594	)		9,791
2012:
Product revenues	$	28,998	$	—		$	100,528	$	—		$	129,526
Depreciation and amortization		287		82			6,890		262			7,521
Operating income (loss)		6,972		(1,815	)		7,322		(4,029	)		8,450

The Advanced Technology operating loss for the three months ended March 30, 2013 and 2012 is net of $610 and $442, respectively, of reimbursed research and development costs. Reconciling items include historical Gentherm’s corporate selling, general and administrative costs and, for March 31, 2013 only, acquisition transaction costs.

Total revenues information by geographic area:

	Three Months Ended March 31,
	2013				2012
United States	$	63,312	43	%	$	55,711	43	%
Germany		19,985	13	%		17,941	14	%
China		14,129	10	%		11,176	9	%
South Korea		11,488	8	%		7,945	6	%
Japan		9,007	6	%		6,039	5	%
United Kingdom		4,131	3	%		3,683	3	%
Czech Republic		3,658	2	%		4,592	3	%
Canada		3,518	2	%		4,156	3	%
Mexico		3,441	2	%		4,436	3	%
Other		15,421	11	%		13,847	11	%
Total product revenues	$	148,090	100	%	$	129,526	100	%