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Segment Reporting
 3 Months Ended
Mar. 31, 2014
Segment Reporting

Note 4 – Segment Reporting

Segment information is used by management for making operating decisions and assessing the performance of the Company. As part of the initiative to integrate the operations of historical Gentherm and W.E.T. Automotive Systems AG (“W.E.T.”) (now known as Gentherm GmbH), changes were made to Gentherm’s structure of internal organization.  The financial information used by our chief operating decision maker to assess performance and allocate resources reflects the changes brought about through this initiative.  

Gentherm’s internal structure of organization no longer treats the operations of historical Gentherm and W.E.T. separately.  The integration initiative also expanded the scope of research and development activities classified within the advanced technology segment.   In addition to research and development efforts to improve the efficiency and application of thermoelectric devices, the new advanced technology segment includes research and development spent on Gentherm’s advanced heating wire technology, which had previously been reflected in the W.E.T. segment.  Corporate reconciling items include certain selling, general and administrative costs previously reflected in the W.E.T. segment.

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  – the aggregated operating results from Gentherm’s three geographic operating segments: North America, Europe and Asia.  

—

Advanced Technology – a division engaged in research and development efforts to improve the efficiency of thermoelectric devices, advanced heating wire technology and other applications, and to develop, market and distribute products based on these technologies. The segment includes governmental sponsored research projects, including those sponsored by the U.S. Department of Energy, the German Ministry of Economics and Technology and the European Union.  

—

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

Note 4 – Segment Reporting – Continued

The following table presents segment information about the reported product revenues and operating income of the Company for the three-month periods ended March 31, 2014 and 2013. Information presented for March 31, 2013 has been restated to conform with our new segment reporting structure.  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 March 31, 2014 and 2013 pertained entirely to our automotive segment. 

 

Three Months Ended March 31,

  

Automotive

 

  

Advanced
Technology

 

  

Reconciling
Items

 

 

Consolidated
Total

 

 

  

 

2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

193,938

 

 

$

—

 

 

$

—

 

 

$

193,938

 

Depreciation and amortization

 

 

6,655

 

 

 

177

 

 

 

641

 

 

 

7,473

 

Operating income (loss)

 

 

30,704

 

 

 

(1,713

)

 

 

(4,175

)

 

 

24,816

 

2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

148,090

 

 

$

—

 

 

$

—

 

 

$

148,090

 

Depreciation and amortization

 

 

7,432

 

 

 

133

 

 

 

369

 

 

 

7,934

 

Operating income (loss)

 

 

17,008

 

 

 

(2,257

)

 

 

(4,960

)

 

 

9,791

 

 

Total product revenues information by geographic area is as follows:

 

 

Three Months Ended March 31,

 

 

2014

 

 

2013

 

United States

$

85,067

 

 

 

44

%

 

$

63,312

 

 

 

43

%

Germany

 

22,476

 

 

 

12

%

 

 

19,985

 

 

 

13

%

South Korea

 

21,915

 

 

 

11

%

 

 

11,488

 

 

 

8

%

China

 

15,944

 

 

 

8

%

 

 

14,129

 

 

 

10

%

Japan

 

10,465

 

 

 

6

%

 

 

9,007

 

 

 

6

%

United Kingdom

 

6,600

 

 

 

3

%

 

 

4,131

 

 

 

3

%

Czech Republic

 

6,086

 

 

 

3

%

 

 

3,658

 

 

 

2

%

Mexico

 

4,703

 

 

 

2

%

 

 

3,441

 

 

 

2

%

Canada

 

3,162

 

 

 

2

%

 

 

3,518

 

 

 

2

%

Other

 

17,520

 

 

 

9

%

 

 

15,421

 

 

 

11

%

         Total Foreign

 

108,871

 

 

 

56

%

 

 

84,778

 

 

 

57

%

 

$

193,938

 

 

 

100

%

 

$

148,090

 

 

 

100

%