Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Note 11 — Segment Reporting

Segment information is used by management for making operating decisions for the Company. Management evaluates the performance of the Company’s segments based primarily on operating income or loss (see Note 2). As discussed in Note 4, 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 testing chambers.

The Company’s reportable segments are as follows:

1. 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.

2. Industrial — the combined operating results of 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.

3. Reconciling Items — include corporate selling, general and administrative costs and acquisition transaction costs.

Note 11 — Segment Reporting (Continued)

The tables below present segment information about the reported product revenues and operating income of the Company for years ended December 31, 2016, 2015 and 2014. 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 December 31, 2016, goodwill assigned to our Automotive and Industrial segments were $20,962 and $30,773, respectively.  As of December 31, 2015, goodwill assigned to our Automotive and Industrial segments were  $21,614 and $6,151, respectively.  

	Automotive		Industrial			Reconciling Items			Consolidated Total
2016:
Product revenues	$	847,436	$	70,164		$	—		$	917,600
Depreciation and amortization		31,826		3,789			2,149			37,764
Operating income (loss)		174,035		(16,710	)		(51,206	)		106,119
2015:
Product revenues	$	810,567	$	45,878		$	—		$	856,445
Depreciation and amortization		27,251		1,726			2,052			31,029
Operating income (loss)		170,358		(2,461	)		(46,578	)		121,319
2014:
Product revenues	$	787,065	$	24,235		$	—		$	811,300
Depreciation and amortization		30,016		2,114			2,899			35,029
Operating income (loss)		144,645		(9,661	)		(36,550	)		98,434

The Industrial operating loss is net of reimbursement for developmental expense of $241, $2,483 and $2,383 for the years ended 2016, 2015 and 2014, respectively. Reconciling items include selling, general and administrative costs of $39,059, $32,116 and $24,433, respectively, for the years ended December 31, 2016, 2015 and 2014 and acquisition costs of  $743, $0 and $1,075 for the years ended December 31, 2016, 2015 and 2014, respectively.

Note 11 — Segment Reporting (Continued)

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

	2016		%			2015		%			2014		%
United States	$	449,065		49	%	$	393,206		46	%	$	361,706		45	%
China		80,493		9	%		76,864		9	%		69,910		9	%
South Korea		75,396		8	%		84,758		10	%		89,515		11	%
Germany		70,258		8	%		74,003		9	%		90,243		11	%
Japan		45,103		5	%		46,058		5	%		47,528		6	%
Czech Republic		38,164		4	%		28,273		3	%		25,738		3	%
Canada		37,954		4	%		27,076		3	%		20,293		2	%
United Kingdom		28,540		3	%		25,952		3	%		24,712		3	%
Mexico		22,767		2	%		28,274		3	%		19,590		2	%
Other		69,860		8	%		71,981		9	%		62,065		8	%
Total Non U.S.		468,535		51	%		463,239		54	%		449,594		56	%
	$	917,600		100	%	$	856,445		100	%	$	811,300		100	%

We rely on three customers, two domestic and one foreign, to derive a significant portion of our product revenues.  The table below lists the percentage of total product revenues generated from sales to these customers:

	2016			2015			2014
Adient (domestic)		21	%		23	%		24	%
Lear (domestic)		21	%		22	%		21	%
Bosch (foreign)		8	%		9	%		9	%