Segment Reporting

6 Months Ended

Jun. 30, 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. This segment represents historical Gentherm business only.  It does not include seat climate control products of historicalW.E.T.

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.

Note 4 – Segment Reporting – Continued

The tables below present segment information about the reported product revenues and operating income of the Company for the three month period ended June30, 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 June30, 2013 and 2012 pertained entirely to our W.E.T. segment.

Three Months EndedJune30,	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2013:
Product revenues	$	32,785	$	—		$	127,735	$	—		$	160,520
Depreciation and amortization		345		113			7,070		268			7,796
Operating income (loss)		8,900		(1,840	)		7,836		(6,477	)		8,419
2012:
Product revenues	$	33,153	$	—		$	103,000	$	—		$	136,153
Depreciation and amortization		313		82			7,115		261			7,771
Operating income (loss)		8,738		(1,815	)		6,703		(5,025	)		8,601

The Advanced Technology operating loss for the three months ended June30, 2013 and 2012 is net of $612 and $665, respectively, of reimbursed research and development costs. Reconciling items include historical Gentherm’s corporate selling, general and administrative costs and acquisition transaction costs.

Six Months EndedJune30,	CCS		Advanced Technology			W.E.T.			Reconciling Items				Consolidated Total
2013:
Product revenues	$	65,763	$	—		$	242,847	$		—		$		308,610
Depreciation and amortization		678		227			14,273			552				15,730
Operating income (loss)		17,801		(3,630	)		17,110			(13,071	)			18,210
2012:
Product revenues	$	62,151	$	—		$	203,528	$		—		$		265,679
Depreciation and amortization		506		258			14,005			523				15,292
Operating income (loss)		15,710		(3,630	)		14,025			(9,054	)			17,051

The Advanced Technology operating loss for the six months ended June30, 2013 and 2012 is net of $1,222 and $1,107, respectively, of reimbursed research and development costs. Reconciling items include historical Gentherm’s corporate selling, general and administrative costs and acquisition transaction costs.

Note 4 – Segment Reporting – Continued

Total revenues information by geographic area:

	Three Months Ended June30,
	2013					2012
United States	$	71,569	45	%	$		57,510	42	%
Germany		20,492	13	%			15,770	12	%
China		15,548	10	%			14,561	11	%
South Korea		14,028	9	%			12,975	10	%
Japan		9,299	6	%			7,259	5	%
Czech Republic		4,118	3	%			4,103	3	%
Mexico		4,023	2	%			4,249	3	%
United Kingdom		4,007	2	%			2,865	2	%
Canada		3,582	2	%			4,428	3	%
Other		13,854	8	%			12,433	9	%
Total product revenues	$	160,520	100	%	$		136,153	100	%

	Six Months Ended June30,
	2013					2012
United States	$	134,627	44	%	$		113,221	43	%
Germany		40,365	13	%			33,711	13	%
China		29,600	10	%			25,737	10	%
South Korea		25,487	8	%			20,919	8	%
Japan		18,272	6	%			13,298	5	%
United Kingdom		8,131	3	%			6,548	2	%
Czech Republic		7,756	2	%			8,695	3	%
Mexico		7,450	2	%			8,685	3	%
Canada		7,085	2	%			8,584	3	%
Other		29,837	10	%			26,281	10	%
Total product revenues	$	308,610	100	%	$		265,679	100	%