Assets and Liabilities Held for Sale

9 Months Ended

Sep. 30, 2018

Discontinued Operations And Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

Note 12 – Assets and Liabilities Held for Sale

As of September 30, 2018, Gentherm determined GPT and CSZ-IC met the held for sale criteria and recorded an impairment on assets as held for sale of $2,190 in impairment loss to adjust net book value to fair value less costs to sell. See Note 2 for information about the Company’s held for sale accounting policy, including a description of the criteria necessary for a disposal group to qualify for classification as held for sale. GPT and CSZ-IC did not meet the criteria to be classified as a discontinued operation.

Note 12 – Assets and Liabilities Held for Sale – Continued

The assets and liabilities of the disposal group classified as held for sale as of September 30, 2018 are as follows:

Accounts receivable, less allowance of $89	$	11,562
Inventory, net		14,435
Prepaid expenses and other assets		533
Property and equipment, net		13,259
Goodwill		6,844
Other intangible assets, net		6,552
Deferred income tax assets		4,798
Other non-current assets		391
Impairment loss		(2,190	)
Total assets held for sale	$	56,184
Accounts payable	$	3,124
Accrued liabilities		10,349
Total liabilities held for sale	$	13,473

Losses before income taxes from GPT and CSZ-IC during the three- and nine-month periods ended September 30, 2018, including $2,190 in impairment loss recognized on held for sale assets, $6,151 in impairment loss on goodwill and $3,135 in impairment loss recognized on other intangible assets, was $12,894 and $15,378, respectively. Losses before income taxes from GPT and CSZ-IC during the three- and nine-month periods ended September 30, 2017, was $2,660 and $1,551, respectively. Management’s estimates used to record impairment expense are inherently uncertain and may change in future periods.