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Segment Reporting

6 Months Ended

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

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