Segment Reporting

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Note 5 – Segment Reporting

Segment information is used by management for making strategic operating decisions for the Company. As discussed in Note 3, Gentherm acquired CSZ on April 1, 2016.  The acquisition enhances key elements of our business strategy by expanding the breadth of products derived from core thermal technologies and the markets in which they are applied, such as medical equipment and environmental chamber testing.  

Management evaluates the performance of the Company’s segments based primarily on operating income or loss.

The Company’s reportable segments are as follows:

● Automotive – this segment represents the design, development, manufacturing and sales of automotive seat comfort systems, specialized automotive cable systems and certain automotive and non-automotive thermal convenience products.

• Industrial – the combined operating results of Gentherm Global Power Technologies (“GPT”), CSZ and Gentherm’s advanced research and development division.  Advanced research and development includes efforts focused on improving the efficiency of thermoelectric technologies and advanced heating wire technology as well as other applications.  The segment includes government sponsored research projects.

● Reconciling Items – include corporate selling, general and administrative costs and acquisition transaction costs.

The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three and nine month periods ended September 30, 2016 and 2015. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of September 30, 2016, goodwill assigned to our Automotive and Industrial segments were $22,362 and $30,573, respectively. As of September 30, 2015, goodwill assigned to our Automotive and Industrial segments were $22,218 and $6,305, respectively.

Three Months Ended September 30,	Automotive		Industrial			Reconciling Items			Consolidated Total
2016:
Product revenues	$	212,566	$	20,059		$	—		$	232,625
Depreciation and amortization		8,631		989			557			10,177
Operating income (loss)		54,408		(4,899	)		(22,094	)		27,415
2015:
Product revenues	$	202,734	$	21,084		$	—		$	223,818
Depreciation and amortization		6,956		450			394			7,800
Operating income (loss)		42,123		3,871			(8,545	)		37,449

Nine Months Ended September 30,	Automotive		Industrial			Reconciling Items			Consolidated Total
2016:
Product revenues	$	634,642	$	46,417		$	—		$	681,059
Depreciation and amortization		23,566		2,578			1,580			27,724
Operating income (loss)		133,271		(14,628	)		(38,990	)		79,653
2015:
Product revenues	$	603,131	$	41,037		$	—		$	644,168
Depreciation and amortization		20,157		1,343			1,623			23,123
Operating income (loss)		124,875		959			(34,638	)		91,196

Note 5 – Segment Reporting – Continued

Total product revenues information by geographic area is as follows:

	Three Months Ended September 30,
	2016				2015
United States	$	117,815	51	%	$	99,833	45	%
China		21,573	9	%		24,092	11	%
Germany		17,670	8	%		18,449	8	%
South Korea		16,295	7	%		18,271	8	%
Japan		10,532	4	%		10,965	5	%
Canada		9,440	4	%		7,353	3	%
Czech Republic		9,302	4	%		7,522	3	%
United Kingdom		6,824	3	%		6,199	3	%
Mexico		5,288	2	%		12,441	6	%
Other		17,886	8	%		18,693	8	%
Total Non U.S.		114,810	49	%		123,985	55	%
	$	232,625	100	%	$	223,818	100	%

	Nine Months Ended September 30,
	2016				2015
United States	$	332,693	49	%	$	293,904	45	%
China		57,983	9	%		58,452	9	%
South Korea		56,443	8	%		62,347	10	%
Germany		54,261	8	%		56,088	9	%
Japan		32,545	5	%		33,482	5	%
Czech Republic		29,264	4	%		20,757	3	%
Canada		28,513	4	%		18,928	3	%
United Kingdom		20,561	3	%		19,825	3	%
Mexico		16,848	2	%		23,200	4	%
Other		51,948	8	%		57,185	9	%
Total Non U.S.		348,366	51	%		350,264	55	%
	$	681,059	100	%	$	644,168	100	%