Note 4 – Segment Reporting

Segment information is used by management for making strategic 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:

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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”), Cincinnati Sub-Zero Products, LLC (“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.

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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, 2017 and 2016. 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, 2017, goodwill assigned to our Automotive and Industrial segments were $22,724 and $30,773, respectively. As of June 30, 2016, goodwill assigned to our Automotive and Industrial segments were $22,119 and $28,890, respectively.

Three Months Ended June 30,	Automotive		Industrial			Reconciling Items			Consolidated Total

2017:
Product revenues	$	215,812	$	27,566		$	—		$	243,378
Depreciation and amortization		9,048		1,288			663			10,999
Operating income (loss)		40,082		(2,648	)		(12,211	)		25,223
2016:
Product revenues	$	211,833	$	20,887		$	—		$	232,720
Depreciation and amortization		7,652		1,199			532			9,383
Operating income (loss)		36,162		(7,113	)		(6,696	)		22,353

Six Months Ended June 30,	Automotive		Industrial			Reconciling Items			Consolidated Total

2017:
Product revenues	$	437,645	$	55,000		$	—		$	492,645
Depreciation and amortization		17,179		2,706			1,306			21,191
Operating income (loss)		90,839		(5,134	)		(25,633	)		60,072
2016:
Product revenues	$	422,267	$	26,167		$	—		$	448,434
Depreciation and amortization		14,935		1,589			1,023			17,547
Operating income (loss)		78,863		(9,729)			(16,896	)		52,238

Note 4 – Segment Reporting – Continued

Total product revenues information by geographic area is as follows:

	Three Months Ended June 30,
	2017				2016
United States	$	114,141	47	%	$	113,138	49	%
China		19,962	8	%		18,988	8	%
Germany		17,694	7	%		18,424	8	%
South Korea		17,754	7	%		21,053	9	%
Japan		13,093	5	%		9,779	4	%
Canada		11,113	5	%		10,091	4	%
Czech Republic		9,944	4	%		10,290	4	%
United Kingdom		8,439	4	%		7,071	3	%
Mexico		5,322	2	%		5,980	3	%
Other		25,916	11	%		17,906	8	%
Total Non U.S.		129,237	53	%		119,582	51	%
	$	243,378	100	%	$	232,720	100	%

	Six Months Ended June 30,
	2017				2016
United States	$	233,664	47	%	$	214,878	48	%
China		40,427	8	%		36,410	8	%
Germany		35,562	7	%		36,591	8	%
South Korea		34,145	7	%		40,149	9	%
Japan		27,376	6	%		22,013	5	%
Canada		22,042	5	%		19,073	4	%
Czech Republic		20,651	4	%		19,961	4	%
United Kingdom		18,107	4	%		13,738	3	%
Mexico		10,692	2	%		11,561	3	%
Other		49,979	10	%		34,060	8	%
Total Non U.S.		258,981	53	%		233,556	52	%
	$	492,645	100	%	$	448,434	100	%