XML 33 R17.htm IDEA: XBRL DOCUMENT v3.22.0.1
Pension and Other Post Retirement Benefit Plans
 12 Months Ended
Dec. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Pension and Other Post Retirement Benefit Plans

Note 10 — Pension and Other Post Retirement Benefit Plans

The Company maintains a U.S. defined benefit pension plan covering its former Chief Executive Officer (“U.S. Plan”) and a German defined benefit pension plan covering certain retired executive employees of the Company’s wholly owned subsidiary, Gentherm GmbH (“German Plan”).

The components of net periodic benefit cost for the Company’s defined benefit plans for the years ended December 31, 2021, 2020 and 2019 were as follows:

 

 

U.S. Plan

 

 

German Plan

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Interest cost

 

 

42

 

 

 

85

 

 

 

127

 

 

 

91

 

 

 

88

 

 

 

147

 

Expected return on plan assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(120

)

 

 

(121

)

 

 

(126

)

Amortization of prior service cost and actuarial loss

 

 

26

 

 

 

7

 

 

 

—

 

 

 

133

 

 

 

124

 

 

 

72

 

Net periodic benefit cost

 

$

68

 

 

$

92

 

 

$

127

 

 

$

104

 

 

$

91

 

 

$

93

 

Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

1.20

%

 

 

2.40

%

 

 

3.65

%

 

 

1.08

%

 

 

1.06

%

 

 

1.06

%

Long-term return on assets

 

N/A

 

 

N/A

 

 

N/A

 

 

 

2.90

%

 

 

3.10

%

 

 

3.10

%

 

 

A reconciliation of the change in benefit obligation and the change in plan assets for the years ended December 31, 2021 and 2020 is as follows:

 

 

U.S. Plan

 

 

German Plan

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

$

3,847

 

 

$

3,871

 

 

$

8,934

 

 

$

8,353

 

Interest cost

 

 

42

 

 

 

85

 

 

 

91

 

 

 

88

 

Paid pension distributions

 

 

(342

)

 

 

(342

)

 

 

(310

)

 

 

(294

)

Actuarial (gain) loss

 

 

(101

)

 

 

233

 

 

 

9

 

 

 

40

 

Exchange rate impact

 

 

—

 

 

 

—

 

 

 

(622

)

 

 

747

 

Balance at end of year

 

$

3,446

 

 

$

3,847

 

 

$

8,102

 

 

$

8,934

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

—

 

 

 

—

 

 

 

4,276

 

 

 

3,825

 

Actual return on plan assets

 

 

—

 

 

 

—

 

 

 

98

 

 

 

96

 

Contributions

 

 

—

 

 

 

—

 

 

 

310

 

 

 

294

 

Paid pension distributions

 

 

—

 

 

 

—

 

 

 

(310

)

 

 

(294

)

Exchange rate impact

 

 

—

 

 

 

—

 

 

 

(305

)

 

 

355

 

Balance at end of year

 

$

—

 

 

$

—

 

 

$

4,069

 

 

$

4,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underfunded Status

 

$

(3,446

)

 

$

(3,847

)

 

$

(4,033

)

 

$

(4,658

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet classification:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(342

)

 

$

(342

)

 

$

(306

)

 

$

—

 

Pension benefit obligation

 

 

(3,104

)

 

 

(3,505

)

 

 

(3,727

)

 

 

(4,658

)

Accumulated other comprehensive loss (pre-tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses

 

 

575

 

 

 

701

 

 

 

3,288

 

 

 

3,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

1.80

%

 

 

1.20

%

 

 

1.25

%

 

 

1.08

%

Pre-tax amounts included in AOCI that are expected to be recognized in net periodic benefit cost during the year ended December 31, 2022 are as follows:

 

 

U.S Plan

 

 

German Plan

 

Actuarial losses

 

$

21

 

 

$

124

 

 

The accumulated benefit obligations were as follows:

 

 

U.S. Plan

 

 

German Plan

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Accumulated benefit obligation

 

$

3,446

 

 

$

3,847

 

 

$

8,102

 

 

$

8,934

 

 

Interest costs are recognized in Selling, general and administrative expenses in the consolidated statements of income and actuarial gains and losses are included the consolidated balance sheet as part of Accumulated other comprehensive loss within shareholders’ equity. Actuarial gains or losses are amortized to Selling, general and administrative expense in the consolidated statements of income based on the average future life of the Plan using the corridor method. Prior service cost is included in Selling, general and administrative expenses in the consolidated statements of income.

 

 

Plan assets – German Plan

Plan assets are comprised of Gentherm GmbH’s pension insurance policies and are pledged to the beneficiaries of the German Plan. A market valuation technique, based on observable underlying insurance charges, is used to determine the fair value of the pension plan assets (Level 2).

The expected return on plan assets assumption used to calculate Gentherm GmbH’s pension benefit obligation was determined using actual returns realized on plan assets in the prior year.

Contributions

We do not expect contributions to be paid to the U.S. Plan or the German Plan during the next fiscal year.

The schedule of future expected pension payments is as follows:

 

 

Projected Pension

Benefit Payments

 

Year

 

U.S Plan

 

 

German Plan

 

2022

 

$

342

 

 

$

306

 

2023

 

 

342

 

 

 

316

 

2024

 

 

342

 

 

 

309

 

2025

 

 

342

 

 

 

301

 

2026

 

 

342

 

 

 

292

 

2027-2031

 

 

1,710

 

 

 

2,988

 

Total

 

$

3,420

 

 

$

4,512

 

 

Defined contribution plans

The Company also sponsors defined contribution plans for eligible employees. On a discretionary basis, the Company matches a portion of the employee contributions and or makes additional discretionary contributions. Gentherm recognized costs of $1,724, $1,275 and $1,384 related to contributions to its defined contribution plans during the years ended December 31, 2021, 2020 and 2019, respectively.