XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Debt | 12 Months Ended
--- | ---
Dec. 31, 2015
Debt Disclosure [Abstract] |
Debt | Note 5 — Debt Credit Agreement The Company, together with certain direct and indirect subsidiaries, have an outstanding Credit Agreement (the “Credit Agreement”) with a syndicate of banks led by Bank of America, N.A. The Credit Agreement provides for a $50,000 secured term loan facility for Gentherm (the “U.S. Term Loan”), a €20,000 secured term loan facility for Gentherm GmbH (the “Europe Term Loan”), and a $100,000 secured revolving credit facility (the “U.S. Revolving Note”) with specific borrowing limits for foreign subsidiaries party to such agreement. The Credit Agreement allows the Company to increase the revolving credit facility or incur additional secured term loans in an aggregate amount of $50,000, subject to specified conditions. The term loans were fully drawn in 2014 and no additional amounts are available under such facilities. As of December 31, 2015, we had $86,100 available under the U.S. Revolving Note. All obligations under the Credit Agreement (including all the obligations of any U.S. or non-U.S. loan party) are unconditionally guaranteed by Gentherm and specified U.S. subsidiaries. Additionally, such parties entered into a pledge and security agreement, granting a security interest in substantially all of their personal property to secure their respective obligations under the Credit Agreement, including the stock and membership interests of specified subsidiaries (limited to 66% of the stock in the case of certain non-U.S. subsidiaries). Further, specified foreign subsidiaries guarantee all obligations of the non-U.S. loan parties under the Credit Agreement. The Company must maintain certain financial ratios consisting of a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Consolidated Leverage Ratio as defined by the Credit Agreement. The Credit Agreement places specific restrictions on the amount of dividend payments to shareholders. Under the Credit Agreement, U.S. Dollar denominated loans bear interest at either a base rate (“Base Rate Loans”) or Eurocurrency rate (“Eurocurrency Rate Loans”), plus a margin (“Applicable Rate”). The base rate is equal to the highest of the Federal Funds Rate (0.20% at December 31, 2015) plus 0.50%, Bank of America’s prime rate (3.50% as of December 31, 2015), or a one month Eurocurrency rate plus 1.00%. The eurocurrency rate is equal to the London Interbank Offered Rate or the Canadian Dealer Offered Rate, for Canadian Dollar loans. All loans denominated in a currency other than the U.S. Dollar must be Eurocurrency Rate Loans. Interest is payable at least quarterly. The Applicable Rate varies based on the Consolidated Leverage Ratio of the Company, as defined by the Credit Agreement. As long as the Company is not in default of the terms and conditions of the Credit Agreement, the lowest and highest possible Applicable Rate is 1.50% and 2.00%, respectively, for Eurocurrency Rate Loans and 0.50% and 1.00%, respectively, for Base Rate Loans. Our leverage ratio as of December 31, 2015 qualified us for the lowest Applicable Rate available. The Company also has two fixed interest rate loans with the German Investment Corporation (“DEG”), a subsidiary of KfW banking group, a German government-owned development bank. DEG China Loan The first, a loan we used to fund capital investments in China (the “DEG China Loan”), is subject to semi-annual principal payments that began March, 2015 and end September, 2019. Under the terms of the DEG China Loan, the Company must maintain a minimum Debt-to-Equity Ratio, Current Ratio and Debt Service Coverage Ratio, as defined by the DEG China Loan agreement, based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Automotive Systems (China) Ltd. DEG Vietnam Loan The Company’s second fixed interest rate senior loan agreement with DEG was used to finance the construction and set up of the Vietnam production facility (“DEG Vietnam Loan”). The DEG Vietnam Loan is subject to semi-annual principal payments beginning November, 2017 and ending May, 2023. Under the terms of the DEG Vietnam Loan, the Company must maintain a minimum Currency Ratio, Equity Ratio and Enhanced Equity Ratio, as defined by the DEG Vietnam Loan agreement, based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Vietnam Co. Ltd. Note 5 — Debt (Continued) As of December 31, 2015, we were in compliance with all terms as outlined in the Credit Agreement, DEG China Loan and DEG Vietnam Loan. The following table summarizes the Company’s debt at December 31, 2015.
| Interest Rate |  |  | Principal Balance |
Credit Agreement: |  |  |  |  |  |  |
U.S. Term Loan |  | 2.11 | % |  | $ | 46,875 |
Europe Term Loan |  | 1.50 | % |  |  | 20,369 |
U.S. Revolving Note |  | 1.92 | % |  |  | 12,000 |
DEG China Loan |  | 4.25 | % |  |  | 3,497 |
DEG Vietnam Loan |  | 5.21 | % |  |  | 15,000 |
Total debt |  |  |  |  | $ | 97,741 |
Current portion |  |  |  |  |  | (4,909 | )
Long-term debt, less current maturities |  |  |  |  | $ | 92,832 |
The following table summarizes the Company’s debt at December 31, 2014.
| Interest Rate |  |  | Principal Balance |
Credit Agreements: |  |  |  |  |  |  |
U.S. Term Loan |  | 2.00 | % |  | $ | 49,375 |
Europe Term Loan |  | 1.81 | % |  |  | 23,963 |
U.S. Revolving Note |  | 1.92 | % |  |  | 12,000 |
DEG China Loan |  | 4.25 | % |  |  | 4,805 |
Capital lease |  | 4.20 | % |  |  | 632 |
Total debt |  |  |  |  | $ | 90,775 |
Current portion |  |  |  |  |  | (5,306 | )
Long-term debt, less current maturities |  |  |  |  | $ | 85,469 |
The scheduled principal maturities of our debt as of December 31, 2015 is as follows:
Year |  | U.S. Term Loan |  |  | Europe Term Loan |  |  | U.S. Revolving Note |  |  | DEG China Loan |  |  | DEG Vietnam Loan |  |  | Total |
2016 |  | $ | 2,813 |  |  | $ | 1,222 |  |  | $ | — |  |  | $ | 874 |  |  | $ | — |  |  | $ | 4,909 |
2017 |  |  | 3,750 |  |  |  | 1,630 |  |  |  | — |  |  |  | 874 |  |  |  | 1,250 |  |  |  | 7,504 |
2018 |  |  | 4,062 |  |  |  | 1,765 |  |  |  | — |  |  |  | 874 |  |  |  | 2,500 |  |  |  | 9,201 |
2019 |  |  | 36,250 |  |  |  | 15,752 |  |  |  | 12,000 |  |  |  | 875 |  |  |  | 2,500 |  |  |  | 67,377 |
2020 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,500 |  |  |  | 2,500 |
Thereafter |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,250 |  |  |  | 6,250 |
Total |  | $ | 46,875 |  |  | $ | 20,369 |  |  | $ | 12,000 |  |  | $ | 3,497 |  |  | $ | 15,000 |  |  | $ | 97,741 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration