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Segment Reporting | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Reporting | Note 5 – 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:
| ● | Automotive – this segment represents the design, development, manufacturing and sales of automotive climate control seat (CCS) products, seat heaters, steering wheel heaters, automotive cables, battery thermal management (BTM), electronics and other automotive products.
| • | Industrial – the combined operating results of GPT, Gentherm Medical and Gentherm’s advanced research and development division. We perform advanced research and development on thermal management systems, including those that utilize new proprietary comfort software algorithms, to enhance the efficiency and functionality of our automotive heating and cooling products. Unlike research and development that relates to a specific product application for a customer, advanced research and development activities affect products and technologies that are not currently generating product revenues. 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 period ended June 30, 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. As of June 30, 2019, goodwill assigned to our Automotive and Industrial segments were $37,466 and $27,648, respectively. As of June 30, 2018, goodwill assigned to our Automotive and Industrial segments were $38,072 and $30,773, respectively.
Three Months Ended June 30, | Automotive |  |  | Industrial(1) |  |  | Reconciling Items |  |  | Consolidated Total |
2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues | $ | 229,700 |  |  | $ | 13,626 |  |  | $ | — |  |  | $ | 243,326 |
Depreciation and amortization |  | 10,327 |  |  |  | 416 |  |  |  | 422 |  |  |  | 11,165 |
Operating income (loss) |  | 37,931 |  |  |  | (4,121 | ) |  |  | (13,753 | ) |  |  | 20,057 |
2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues(1) | $ | 243,150 |  |  | $ | 23,250 |  |  | $ | — |  |  | $ | 266,400 |
Depreciation and amortization |  | 11,263 |  |  |  | 1,008 |  |  |  | 660 |  |  |  | 12,931 |
Operating income (loss) |  | 37,240 |  |  |  | (7,881 | ) |  |  | (13,766 | ) |  |  | 15,593 |
| (1) | Industrial segment includes $10,418 in product revenue, $635 in depreciation and amortization, and $237 in operating income from CSZ-IC for the three-month period ended June 30, 2018. On February 1, 2019, we completed the sale of CSZ-IC.
Note 5 – Segment Reporting – Continued
Six Months Ended June 30, | Automotive |  |  | Industrial(1) |  |  | Reconciling Items |  |  | Consolidated Total |
2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues | $ | 472,057 |  |  | $ | 29,190 |  |  | $ | — |  |  | $ | 501,247 |
Depreciation and amortization |  | 20,490 |  |  |  | 839 |  |  |  | 888 |  |  |  | 22,217 |
Operating income (loss) |  | 77,827 |  |  |  | (8,635 | ) |  |  | (27,290 | ) |  |  | 41,902 |
2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues(1) | $ | 485,571 |  |  | $ | 45,415 |  |  | $ | — |  |  | $ | 530,986 |
Depreciation and amortization |  | 22,368 |  |  |  | 2,063 |  |  |  | 1,392 |  |  |  | 25,823 |
Operating income (loss) |  | 78,404 |  |  |  | (14,561 | ) |  |  | (27,601 | ) |  |  | 36,242 |
| (1) | Industrial segment includes $3,418 and $20,631 in product revenues, $0 and $1,260 in depreciation and amortization, and $198 and $837 in operating income from CSZ-IC for the six-month periods ended June 30, 2019 and 2018, respectively.
Automotive and Industrial segment product revenues by product category for the three- and six-month periods ended June 30, 2019 and 2018 are as follows:
|  | Three Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | % Change
Climate Control Seats (CCS) |  | $ | 88,437 |  |  | $ | 90,395 |  |  |  | (2.1 | ) | %
Seat Heaters |  |  | 73,628 |  |  |  | 80,176 |  |  |  | (8.2 | ) | %
Steering Wheel Heaters |  |  | 16,029 |  |  |  | 17,540 |  |  |  | (8.6 | ) | %
Automotive Cables |  |  | 22,205 |  |  |  | 25,645 |  |  |  | (13.4 | ) | %
Battery Thermal Management (BTM)(a) |  |  | 8,897 |  |  |  | 7,241 |  |  |  | 22.9 |  | %
Electronics |  |  | 11,454 |  |  |  | 15,842 |  |  |  | (27.6 | ) | %
Other Automotive |  |  | 9,050 |  |  |  | 6,311 |  |  |  | 43.4 |  | %
Subtotal Automotive |  | $ | 229,700 |  |  | $ | 243,150 |  |  |  | (5.5 | ) | %
Remote Power Generation (GPT) |  |  | 3,745 |  |  |  | 5,270 |  |  |  | (28.9 | ) | %
Industrial Chambers |  |  | — |  |  |  | 10,418 |  |  |  | (100.0 | ) | %
Gentherm Medical |  |  | 9,881 |  |  |  | 7,562 |  |  |  | 30.7 |  | %
Subtotal Industrial |  | $ | 13,626 |  |  | $ | 23,250 |  |  |  | (41.4 | ) | %
Total Company |  | $ | 243,326 |  |  | $ | 266,400 |  |  |  | (8.7 | ) | %
| a) | Battery Thermal Management or BTM product revenues include Gentherm’s automotive grade, low cost, heat resistant fans and blowers used by customer for battery cooling through ventilation and production level shipments of the advanced TED based active cool system.
Note 5 – Segment Reporting – Continued
|  | Six Months Ended June 30, |  |
|  | 2019 |  |  | 2018 |  |  | % Change
Climate Control Seats (CCS) |  | $ | 182,791 |  |  | $ | 178,613 |  |  |  | 2.3 |  | %
Seat Heaters |  |  | 147,548 |  |  |  | 164,396 |  |  |  | (10.2 | ) | %
Steering Wheel Heaters |  |  | 32,999 |  |  |  | 35,097 |  |  |  | (6.0 | ) | %
Automotive Cables |  |  | 45,955 |  |  |  | 52,510 |  |  |  | (12.5 | ) | %
Battery Thermal Management (BTM) |  |  | 19,641 |  |  |  | 11,402 |  |  |  | 72.3 |  | %
Electronics |  |  | 24,306 |  |  |  | 31,819 |  |  |  | (23.6 | ) | %
Other Automotive |  |  | 18,817 |  |  |  | 11,734 |  |  |  | 60.4 |  | %
Subtotal Automotive |  | $ | 472,057 |  |  | $ | 485,571 |  |  |  | (2.8 | ) | %
Remote Power Generation (GPT) |  |  | 7,704 |  |  |  | 9,932 |  |  |  | (22.4 | ) | %
Industrial Chambers |  |  | 3,418 |  |  |  | 20,631 |  |  |  | (83.4 | ) | %
Gentherm Medical |  |  | 18,068 |  |  |  | 14,852 |  |  |  | 21.7 |  | %
Subtotal Industrial |  | $ | 29,190 |  |  | $ | 45,415 |  |  |  | (35.7 | ) | %
Total Company |  | $ | 501,247 |  |  | $ | 530,986 |  |  |  | (5.6 | ) | %
Total product revenues information by geographic area is as follows (based on shipment destination):
| Three Months Ended June 30, |
| 2019 |  |  | 2018 |
United States | $ | 110,632 |  |  |  | 45.5 | % |  | $ | 123,512 |  |  |  | 46.4 | % |  |
Germany |  | 20,300 |  |  |  | 8.3 | % |  |  | 23,626 |  |  |  | 8.9 | % |  |
Japan |  | 20,003 |  |  |  | 8.2 | % |  |  | 13,275 |  |  |  | 5.0 | % |  |
China |  | 16,410 |  |  |  | 6.7 | % |  |  | 24,927 |  |  |  | 9.4 | % |  |
South Korea |  | 15,577 |  |  |  | 6.4 | % |  |  | 15,783 |  |  |  | 5.9 | % |  |
Czech Republic |  | 10,009 |  |  |  | 4.1 | % |  |  | 11,106 |  |  |  | 4.2 | % |  |
Canada |  | 10,102 |  |  |  | 4.2 | % |  |  | 12,590 |  |  |  | 4.7 | % |  |
United Kingdom |  | 6,833 |  |  |  | 2.8 | % |  |  | 8,467 |  |  |  | 3.2 | % |  |
Other |  | 33,460 |  |  |  | 13.8 | % |  |  | 33,114 |  |  |  | 12.4 | % |  |
Total Non-U.S. | $ | 132,694 |  |  |  | 54.5 | % |  | $ | 142,888 |  |  |  | 53.6 | % |  |
| $ | 243,326 |  |  |  | 100.0 | % |  | $ | 266,400 |  |  |  | 100.0 | % |  |
| Six Months Ended June 30, |
| 2019 |  |  | 2018 |
United States | $ | 229,086 |  |  |  | 45.7 | % |  | $ | 243,862 |  |  |  | 45.9 | %
Germany |  | 43,510 |  |  |  | 8.7 | % |  |  | 45,988 |  |  |  | 8.7 | %
Japan |  | 38,594 |  |  |  | 7.7 | % |  |  | 26,848 |  |  |  | 5.1 | %
China |  | 32,007 |  |  |  | 6.4 | % |  |  | 49,131 |  |  |  | 9.3 | %
South Korea |  | 30,555 |  |  |  | 6.1 | % |  |  | 29,605 |  |  |  | 5.6 | %
Czech Republic |  | 22,151 |  |  |  | 4.4 | % |  |  | 22,821 |  |  |  | 4.3 | %
Canada |  | 20,393 |  |  |  | 4.1 | % |  |  | 25,703 |  |  |  | 4.8 | %
United Kingdom |  | 15,665 |  |  |  | 3.1 | % |  |  | 19,312 |  |  |  | 3.6 | %
Other |  | 69,286 |  |  |  | 13.8 | % |  |  | 67,716 |  |  |  | 12.8 | %
Total Non-U.S. | $ | 272,161 |  |  |  | 54.3 | % |  | $ | 287,124 |  |  |  | 54.1 | %
| $ | 501,247 |  |  |  | 100.0 | % |  | $ | 530,986 |  |  |  | 100.0 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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