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Segment Reporting
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting

Note 5 – Segment Reporting

Segment information is used by management for making strategic operating decisions for the Company. As discussed in Note 3, 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 chamber testing.  

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 seat comfort systems, specialized automotive cable systems and certain automotive and non-automotive thermal convenience products.

 

·

Industrial – the combined operating results of Gentherm Global Power Technologies (“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.

 

●

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

The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three and six month periods ended June 30, 2016 and 2015. 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 June 30, 2016, goodwill assigned to our Automotive and Industrial segments were $22,119 and $28,890, respectively. As of June 30, 2015, goodwill assigned to our Automotive and Industrial segments were $22,167 and $6,305, respectively.

 

Three Months Ended June 30,

  

Automotive

 

  

Industrial

 

  

Reconciling
Items

 

 

Consolidated
Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

211,640

 

 

$

21,080

 

 

$

—

 

 

$

232,720

 

Depreciation and amortization

 

 

7,652

 

 

 

1,199

 

 

 

532

 

 

 

9,383

 

Operating income (loss)

 

 

36,162

 

 

 

(7,113

)

 

 

(6,696

)

 

 

22,353

 

2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

200,954

 

 

$

12,487

 

 

$

—

 

 

$

213,441

 

Depreciation and amortization

 

 

6,885

 

 

 

404

 

 

 

575

 

 

 

7,864

 

Operating income (loss)

 

 

42,070

 

 

 

(1,987

)

 

 

(13,413

)

 

 

26,670

 

 

Six Months Ended June 30,

  

Automotive

 

  

Industrial

 

  

Reconciling
Items

 

 

Consolidated
Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

 

422,076

 

 

 

26,358

 

 

 

—

 

 

 

448,434

 

Depreciation and amortization

 

 

14,935

 

 

 

1,589

 

 

 

1,023

 

 

 

17,547

 

Operating income (loss)

 

 

78,863

 

 

 

(9,729

)

 

 

(16,896

)

 

 

52,238

 

2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

400,397

 

 

$

19,953

 

 

$

—

 

 

$

420,350

 

Depreciation and amortization

 

 

13,201

 

 

 

893

 

 

 

1,229

 

 

 

15,323

 

Operating income (loss)

 

 

82,752

 

 

 

(3,274

)

 

 

(25,731

)

 

 

53,747

 


Note 5 – Segment Reporting – Continued

Total product revenues information by geographic area is as follows:

 

 

Three Months Ended June 30,

 

 

2016

 

 

2015

 

United States

$

113,138

 

 

 

49

%

 

$

98,767

 

 

 

46

%

South Korea

 

21,053

 

 

 

9

%

 

 

21,213

 

 

 

10

%

China

 

18,988

 

 

 

8

%

 

 

16,390

 

 

 

8

%

Germany

 

18,424

 

 

 

8

%

 

 

18,799

 

 

 

9

%

Czech Republic

 

10,290

 

 

 

4

%

 

 

7,076

 

 

 

3

%

Canada

 

10,091

 

 

 

4

%

 

 

6,090

 

 

 

3

%

Japan

 

9,779

 

 

 

4

%

 

 

11,332

 

 

 

5

%

United Kingdom

 

7,071

 

 

 

3

%

 

 

6,638

 

 

 

3

%

Mexico

 

5,980

 

 

 

3

%

 

 

5,326

 

 

 

3

%

Other

 

17,906

 

 

 

8

%

 

 

21,810

 

 

 

10

%

Total Non U.S.

 

119,582

 

 

 

51

%

 

 

114,674

 

 

 

54

%

 

$

232,720

 

 

 

100

%

 

$

213,441

 

 

 

100

%

 

 

 

Six Months Ended June 30,

 

 

2016

 

 

2015

 

United States

$

214,878

 

 

 

48

%

 

$

194,071

 

 

 

46

%

South Korea

 

40,149

 

 

 

9

%

 

 

44,076

 

 

 

10

%

Germany

 

36,591

 

 

 

8

%

 

 

37,639

 

 

 

9

%

China

 

36,410

 

 

 

8

%

 

 

34,360

 

 

 

8

%

Japan

 

22,013

 

 

 

5

%

 

 

22,517

 

 

 

5

%

Czech Republic

 

19,961

 

 

 

4

%

 

 

13,235

 

 

 

3

%

Canada

 

19,073

 

 

 

4

%

 

 

11,575

 

 

 

3

%

United Kingdom

 

13,738

 

 

 

3

%

 

 

13,626

 

 

 

3

%

Mexico

 

11,561

 

 

 

3

%

 

 

10,759

 

 

 

3

%

Other

 

34,060

 

 

 

8

%

 

 

38,492

 

 

 

10

%

Total Non U.S.

 

233,556

 

 

 

52

%

 

 

226,279

 

 

 

54

%

 

$

448,434

 

 

 

100

%

 

$

420,350

 

 

 

100

%