Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

Note 20 — 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.

The Company’s reportable segments are as follows:

• Automotive — this segment represents the design, development, manufacturing and sales of automotive climate comfort systems, automotive cable systems, battery performance solutions, and automotive electronic and software systems.

• Medical — this segment represents the combined results from our Medical business, GPT (through October 1, 2019), CSZ-IC (through February 1, 2019) and non-automotive expenses from Gentherm’s advanced research and development division (through December 31, 2019). The operating results from these businesses and division are presented together as one reporting segment because of their historical joint concentration on identifying new markets and product applications based on thermal management technologies. With the remaining temperature management business being the primary focus now in this segment, we have renamed it to reflect the strategic direction of this segment.

• Corporate — includes corporate costs, selling, general and administrative costs and acquisition transaction costs. This segment has been renamed this year to better align with the costs allocated to this segment.  It was previously named ‘Reconciling Items’.

In 2018 and 2019, our Industrial reporting segment represented the combined results from our patient temperature management systems business, GPT (through its divestiture on October 1, 2019), CSZ-IC (through its divestiture on February 1, 2019) and non-automotive expenses from our advanced research and development division (through December 31, 2019). The operating results from these businesses and division previously were presented together as one reporting segment because of their historical joint concentration on identifying new markets and product applications based on thermal management technologies.

In 2020, the Industrial reporting segment was renamed the Medical reporting segment to reflect the patient temperature management business as the focus and strategic direction of this segment. Also, during 2020, the advanced research and development costs not associated with the Medical segment were moved to the Automotive segment, as this organization now primarily supports the Automotive related development activities following the divestitures of GPT and CSZ-IC.  For comparability to the prior years, we have moved the portion of advanced research and development costs to the Automotive segment that were focused on technologies related to automotive in 2018 and 2019 in both the Depreciation and amortization and Operating income (loss) lines in the table below.

The tables below present segment information about the reported product revenues and operating income of the Company for years ended December 31, 2020, 2019 and 2018. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level.

	Automotive		Medical			Corporate			Total
2020:
Product revenues	$	869,998	$	43,100		$	—		$	913,098
Depreciation and amortization		37,662		2,366			1,086		$	41,114
Operating income (loss)		138,410		971			(50,164	)	$	89,217
2019:
Product revenues	$	920,225	$	51,459		$	—		$	971,684
Depreciation and amortization		40,923		1,621			1,702		$	44,246
Operating income (loss)		141,206		(5,735	)		(51,211	)	$	84,260
2018:
Product revenues	$	957,824	$	90,681		$	—		$	1,048,505
Depreciation and amortization		44,246		3,759			2,633		$	50,638
Operating income (loss)		136,421		(6,900	)		(56,733	)	$	72,788

Automotive and Medical segment product revenues by product category for each of the years ended December 31, 2020, 2019 and 2018 are as follows:

	Year Ended December 31,
	2020		2019		2018
Climate Control Seat (CCS)	$	342,550	$	359,355	$	373,945
Seat Heaters		249,665		284,174		305,337
Steering Wheel Heaters		76,272		65,426		69,845
Automotive Cables		73,997		88,031		98,931
Electronics		53,238		47,542		56,783
Battery Performance Solutions (BPS)(a)		50,901		41,498		28,472
Other Automotive		23,375		34,199		24,511
Subtotal Automotive segment		869,998		920,225		957,824
Medical		43,100		36,860		30,108
GPT		—		11,181		19,520
CSZ-IC		—		3,418		41,053
Subtotal Medical segment		43,100		51,459		90,681
Total Company	$	913,098	$	971,684	$	1,048,505

(a) Battery Performance Solutions (BPS) was renamed from Battery Thermal Management (BTM), to better represent our product offerings included within this product category.

Revenue (based on shipment destination) by geographic area for each of the years ended December 31, 2020, 2019 and 2018 is as follows:

	Year Ended December 31,
	2020		2019		2018
United States	$	377,577	$	440,316	$	488,926
China		101,039		71,461		93,628
South Korea		88,745		63,339		58,717
Germany		58,536		81,315		88,366
Japan		57,785		76,197		62,633
Czech Republic		37,542		38,888		42,665
Other		191,874		200,168		213,570
Total Non-U.S.		535,521		531,368		559,579
Total Company	$	913,098	$	971,684	$	1,048,505

The table below lists the percentage of total product revenues generated from sales to customers which contributed 10% or more to the Company’s total consolidated product revenue for the years ended December 31, 2020, 2019 and 2018:

	Year Ended December 31,
	2020			2019			2018
Lear		15	%		16	%		17	%
Adient		14	%		15	%		16	%

Property and equipment, net, for each of the geographic areas in which the Company operates as of December 31, 2020 and 2019 is as follows:

	December 31,
Property and equipment, net	2020		2019
Macedonia	$	38,273	$	38,989
Vietnam		21,080		21,452
China		20,375		23,721
United States		19,011		21,280
Mexico		16,034		19,982
Germany		15,641		10,515
Ukraine		9,364		11,727
Hungary		8,401		6,803
Other		4,402		6,136
Total	$	152,581	$	160,605