Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | THRM | |
Entity Registrant Name | GENTHERM INCORPORATED | |
Entity Central Index Key | 0000903129 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 33,127,634 | |
Entity Shell Company | false | |
Entity File Number | 0-21810 | |
Entity Tax Identification Number | 95-4318554 | |
Entity Address, Address Line One | 21680 Haggerty Road | |
Entity Address, City or Town | Northville | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48167 | |
City Area Code | 248 | |
Local Phone Number | 504-0500 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | MI | |
Document Quarterly Report | true | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, no par value | |
Document Transition Report | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 166,630 | $ 153,891 |
Accounts receivable, net | 256,715 | 247,131 |
Inventory: | ||
Raw materials | 137,829 | 136,217 |
Work in process | 17,091 | 17,695 |
Finished goods | 63,543 | 64,336 |
Inventory, net | 218,463 | 218,248 |
Other current assets | 69,691 | 64,597 |
Total current assets | 711,499 | 683,867 |
Property and equipment, net | 242,143 | 244,480 |
Goodwill | 120,955 | 119,774 |
Other intangible assets, net | 72,051 | 73,933 |
Operating lease right-of-use assets | 31,024 | 29,945 |
Deferred income tax assets | 73,004 | 69,840 |
Other non-current assets | 18,070 | 17,461 |
Total assets | 1,268,746 | 1,239,300 |
Current Liabilities: | ||
Accounts payable | 207,887 | 182,225 |
Current lease liabilities | 8,093 | 7,143 |
Current maturities of long-term debt | 1,996 | 2,443 |
Other current liabilities | 88,896 | 93,814 |
Total current liabilities | 306,872 | 285,625 |
Long-term debt, less current maturities | 232,558 | 232,653 |
Non-current lease liabilities | 19,740 | 20,538 |
Pension benefit obligation | 3,326 | 3,638 |
Other non-current liabilities | 25,932 | 24,573 |
Total liabilities | 588,428 | 567,027 |
Common Stock: | ||
No par value; 55,000,000 shares authorized 33,126,702 and 33,202,082 issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 112,420 | 122,658 |
Paid-in capital | 5,379 | 5,447 |
Accumulated other comprehensive loss | (36,101) | (46,489) |
Accumulated earnings | 598,620 | 590,657 |
Total shareholders’ equity | 680,318 | 672,273 |
Total liabilities and shareholders’ equity | $ 1,268,746 | $ 1,239,300 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value | ||
Common Stock, shares authorized | 55,000,000 | 55,000,000 |
Common Stock, shares issued | 33,126,702 | 33,202,082 |
Common Stock, shares outstanding | 33,126,702 | 33,202,082 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Product revenues | $ 363,625 | $ 267,657 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of sales | $ 282,495 | $ 203,544 |
Gross margin | 81,130 | 64,113 |
Operating expenses: | ||
Net research and development expenses | 25,145 | 20,434 |
Selling, general and administrative expenses | 37,042 | 29,308 |
Restructuring expenses | 1,269 | 181 |
Total operating expenses | 63,456 | 49,923 |
Operating income | 17,674 | 14,190 |
Interest expense, net | (4,144) | (569) |
Foreign currency (loss) gain | (2,069) | 2,217 |
Other income | 230 | 204 |
Earnings before income tax | 11,691 | 16,042 |
Income tax expense | 3,728 | 4,295 |
Net income | $ 7,963 | $ 11,747 |
Basic earnings per share | $ 0.24 | $ 0.36 |
Diluted earnings per share | $ 0.24 | $ 0.35 |
Weighted average number of shares – basic | 33,181,828 | 33,034,872 |
Weighted average number of shares – diluted | 33,386,134 | 33,376,764 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 7,963 | $ 11,747 |
Other comprehensive income: | ||
Pension benefit obligations | 4 | 29 |
Foreign currency translation adjustments | 8,255 | (9,294) |
Unrealized gain on foreign currency derivative securities, net of tax | 2,129 | 464 |
Unrealized loss on commodity derivative securities, net of tax | (5) | |
Other comprehensive income (loss), net of tax | 10,388 | (8,806) |
Comprehensive income | $ 18,351 | $ 2,941 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities: | ||
Net income | $ 7,963 | $ 11,747 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 13,583 | 9,577 |
Deferred income taxes | (1,786) | (778) |
Stock based compensation | 2,023 | 2,279 |
Loss on disposition of property and equipment | 16 | 107 |
Provisions for inventory | 1,704 | 747 |
Other | (44) | 256 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (8,237) | (25,788) |
Inventory | (1,137) | (18,863) |
Other assets | (6,417) | (10,716) |
Accounts payable | 24,289 | 34,097 |
Other liabilities | (6,848) | (3,349) |
Net cash provided by (used in) operating activities | 25,109 | (684) |
Investing Activities: | ||
Purchases of property and equipment | (6,294) | (5,659) |
Proceeds from the sale of property and equipment | 17 | 52 |
Proceeds from deferred purchase price of factored receivables | 3,728 | |
Cost of technology investments | (350) | |
Net cash used in investing activities | (2,549) | (5,957) |
Financing Activities: | ||
Repayments of debt | (564) | |
Proceeds from the exercise of Common Stock options | 263 | 569 |
Taxes withheld and paid on employees' share-based payment awards | (2,667) | (4,319) |
Cash paid for the repurchase of Common Stock | (9,997) | |
Net cash used in financing activities | (12,965) | (3,750) |
Foreign currency effect | 3,144 | (2,298) |
Net increase (decrease) in cash and cash equivalents | 12,739 | (12,689) |
Cash and cash equivalents at beginning of period | 153,891 | 190,606 |
Cash and cash equivalents at end of period | 166,630 | 177,917 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | 5,536 | 3,267 |
Cash paid for interest | 3,235 | 421 |
Non-Cash Investing Activities: | ||
Period-end balance of accounts payable for property and equipment | 2,370 | $ 2,437 |
Deferred purchase price of receivables factored in the period | $ 4,739 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings |
Beginning Balance at Dec. 31, 2021 | $ 653,806 | $ 118,646 | $ 5,866 | $ (36,922) | $ 566,216 |
Beginning Balance (in shares) at Dec. 31, 2021 | 33,008,000 | ||||
Net income | 11,747 | 11,747 | |||
Other comprehensive income (loss) | (8,806) | (8,806) | |||
Stock compensation, net | (960) | $ (814) | (146) | ||
Stock compensation, net, shares | 119,000 | ||||
Ending Balance at Mar. 31, 2022 | 655,787 | $ 117,832 | 5,720 | (45,728) | 577,963 |
Ending Balance (in shares) at Mar. 31, 2022 | 33,127,000 | ||||
Beginning Balance at Dec. 31, 2022 | $ 672,273 | $ 122,658 | 5,447 | (46,489) | 590,657 |
Beginning Balance (in shares) at Dec. 31, 2022 | 33,202,082 | 33,202,000 | |||
Net income | $ 7,963 | 7,963 | |||
Other comprehensive income (loss) | 10,388 | 10,388 | |||
Stock compensation, net | (309) | $ (241) | (68) | ||
Stock compensation, net, shares | 94,000 | ||||
Stock repurchase | (9,997) | $ (9,997) | |||
Stock repurchase (in shares) | (169,000) | ||||
Ending Balance at Mar. 31, 2023 | $ 680,318 | $ 112,420 | $ 5,379 | $ (36,101) | $ 598,620 |
Ending Balance (in shares) at Mar. 31, 2023 | 33,126,702 | 33,127,000 |
Overview
Overview | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | Note 1 – Overview Gentherm Incorporated, a Michigan corporation, and its consolidated subsidiaries (“Gentherm”, “we”, “us”, “our” or the “Company”) is the global market leader of innovative thermal management and pneumatic comfort technologies for the automotive and medical industries. Automotive products include variable temperature Climate Control Seats, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems, lumbar and massage comfort solutions, valve systems, and other electronic devices. Our automotive products can be found on vehicles manufactured by nearly all the major original equipment manufacturers (“OEMs”) operating in North America and Europe, and several major OEMs in Asia. We operate in locations aligned with our major customers’ product strategies to provide locally enhanced design, integration and production capabilities. Medical products include patient temperature management systems. Our medical products can be found in hospitals throughout the world, primarily in the US, China, Germany and Brazil. The Company is also developing a number of new technologies and products that will help enable improvements to existing products, improve health, wellness and patient outcomes and will lead to new product applications for existing and new and adjacent markets. Basis of Presentation and Significant Accounting Policies The unaudited consolidated condensed financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations. The information furnished in the consolidated condensed financial statements include all adjustments (consisting of only normal, recurring adjustments) considered necessary to present fairly the results of operations, financial position and cash flows of the Company. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. In preparing these financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other outside sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur and additional information is obtained. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements. Principles of Consolidation The consolidated condensed financial statements include the accounts of the Company, its wholly owned subsidiaries and those entities in which it has a controlling financial interest. The Company evaluates its relationship with other entities for consolidation and to identify whether such entities are variable interest entities (“VIE”) and to assess whether the Company is the primary beneficiary of such entities. Investments in entities in which Gentherm does not have control but does have the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. When Gentherm does not have the ability to exercise significant influence (generally when ownership interest is less than 20 %), investments in entities are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. Variable Interest Entities The Company maintains an ownership interest in a VIE, Carrar Ltd. (“Carrar”). Carrar is a technology developer of advanced thermal management systems for the electric mobility market. The Company determined that Carrar is a VIE; however, the Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of the investment. Therefore, the Company has concluded that it is not the primary beneficiary. Gentherm’s investment in Carrar is measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Carrar investment was $ 5,200 as of March 31, 2023 and December 31, 2022 , and is recorded in Other non-current assets in the consolidated condensed balance sheets. Revenue Recognition The Company has no material contract assets or contract liabilities as of March 31, 2023. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the benefits of those costs are expected to be realized for a period greater than one year . Total capitalized costs to obtain a contract were $ 3,029 and $ 2,239 as of March 31, 2023 and December 31, 2022 , respectively. These amounts are recorded in Other non-current assets and are being amortized into Product revenues over the expected production life of the applicable program. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions Alfmeier Präzision SE On August 1, 2022 , the Company acquired 100 % of the equity interests of Alfmeier, a global leader in automotive lumbar and massage comfort solutions and a leading provider of advanced valve systems, integrated electronics and software. The acquisition further expanded the Company's value proposition beyond thermal in comfort, health, wellness, and energy efficiency and aligned with global consumer demand for expanded offerings in vehicle passenger comfort. The total consideration transferred was $ 170,700 . The results of Alfmeier's operations are reported within the Automotive segment from the acquisition date. The acquisition was accounted for as a business combination. The following table summarizes the purchase consideration and preliminary estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments: Initial Allocation Measurement Period Adjustments Revised Allocation Purchase price, cash consideration, net of cash acquired $ 164,887 $ 5,813 $ 170,700 — Accounts receivable 24,988 ( 121 ) 24,867 Inventory 36,026 ( 106 ) 35,920 Prepaid expenses and other assets 20,920 ( 74 ) 20,846 Operating lease right-of-use assets 4,608 — 4,608 Property and equipment 89,942 1,242 91,184 Other intangible assets 22,668 8,791 31,459 Goodwill 43,678 ( 9,184 ) 34,494 Assumed liabilities ( 55,994 ) 975 ( 55,019 ) Deferred tax liabilities ( 21,949 ) 4,290 ( 17,659 ) Net assets acquired $ 164,887 $ 5,813 $ 170,700 During the three months ended March 31, 2023 , the Company did no t record any measurement period adjustments. The preliminary fair values of assets acquired and liabilities assumed are subject to change as the Company completes its analysis of the fair values as of the date of acquisition. The following table summarizes the preliminary allocation of the purchase consideration to the other intangible assets acquired: Preliminary Fair Value Weighted Average Life (in years) Definite-lived: Customer related $ 19,812 14 Technology 11,647 9 Total $ 31,459 Assets acquired and liabilities assumed were recorded at estimated fair values based on third-party valuations, management’s estimates, available information, and supportable assumptions that management considered reasonable. The fair value of the intangible assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to the Company’s expected future economic benefits from combining operations to offer more compelling and high-value solutions across complementary customer relationships as well as expected future synergies. The goodwill is not expected to be deductible for tax purposes. The following unaudited pro forma information represents our product revenues as if the acquisition of Alfmeier had occurred as of January 1, 2022: Three Months Ended March 31, 2022 Product revenues $ 333,756 Net income 8,567 Jiangmen Dacheng Medical Equipment Co. Ltd On July 13, 2022 , the Company acquired 100 % of the equity interests of Dacheng and its wholly owned subsidiary, IOB Medical, Inc. Dacheng, a privately held manufacturer of medical materials and medical equipment, including patient temperature management solutions, for numerous local and international customers. The acquisition provided Gentherm Medical a local presence in China’s high-growth market for patient warming devices and other medical device products, and expanded overall manufacturing capacity to include a low-cost manufacturing site. The total consideration transferred was $ 35,048 . The purchase agreement also included potential cash payments contingent upon the achievement of certain performance metrics and continued employment of the former majority shareholder through a series of defined dates. The achievement of these performance metrics resulted in cash payments of $ 500 . These cash payments were accounted for as compensation expense and recorded as a component of selling, general and administrative expense ratably over the service period. The acquisition was accounted for as a business combination. The following table summarizes the purchase consideration and preliminary estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments: Initial Allocation Measurement Period Adjustments Revised Allocation Purchase price, cash consideration, net of cash acquired $ 35,048 $ — $ 35,048 — Accounts receivable 746 ( 84 ) 662 Inventory 1,942 ( 177 ) 1,765 Prepaid expenses and other assets 152 22 174 Operating lease right-of-use assets 841 — 841 Property and equipment 684 — 684 Other intangible assets 19,094 965 20,059 Goodwill 22,995 ( 3,979 ) 19,016 Assumed liabilities ( 2,799 ) ( 40 ) ( 2,839 ) Deferred tax liabilities ( 8,607 ) 3,293 ( 5,314 ) Net assets acquired $ 35,048 $ — $ 35,048 During the three months ended March 31, 2023 , the Company did no t record any measurement period adjustments. The preliminary fair values of assets acquired and liabilities assumed are subject to change as the Company completes its analysis of the fair values as of the date of acquisition. The following table summarizes the preliminary allocation of the purchase consideration to the other intangible assets acquired: Preliminary Fair Value Weighted Average Life (in years) Definite-lived: Customer related $ 12,837 12 Technology 4,749 12 Indefinite-lived: Tradenames 2,473 — Total $ 20,059 Assets acquired and liabilities assumed were recorded at estimated fair values based on third-party valuations, management’s estimates, available information, and supportable assumptions that management considered reasonable. The fair value of the intangible assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to the Company’s expected future economic benefits from the enhanced access to high-growth markets including private label opportunities through Dacheng’s innovative patient temperature management devices. The goodwill is not expected to be deductible for tax purposes. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements are presented. |
Restructuring and Impairments
Restructuring and Impairments | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairments | Note 3 – Restructuring and Impairments The Company continuously monitors market developments, industry trends and changing customer needs and in response, may undertake restructuring actions, as necessary, to execute management’s strategy, streamline operations and optimize the Company’s cost structure. Restructuring actions may include the realignment of existing manufacturing footprint, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly statutory requirements or other contractual agreements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination. Manufacturing Footprint Rationalization During 2019, the Company committed to a restructuring plan (“Plan”) to improve the Company’s manufacturing productivity and rationalize its footprint. Under this Plan, the Company relocated and consolidated certain automotive electronics manufacturing plants in North America and China. During the three months ended March 31, 2023 , the Company did no t recognize any restructuring expense. During the three months ended March 31, 2022 , the Company recognized restructuring expense of $ 50 for employee separation costs and $ 101 for other costs. The Company has recorded approximately $ 10,359 of restructuring expenses since the inception of this program and as of March 31, 2023 , $ 588 remains accrued. Other Restructuring Activities The Company has undertaken several discrete restructuring actions. During the three months ended March 31, 2023 , the Company recognized $ 1,206 for employee separation costs and $ 63 of other costs. During the three months ended March 31, 2022 , the Company recognized $ 30 for other costs. These restructuring expenses were primarily associated with restructuring actions focused on the reduction of global overhead costs. Restructuring Expenses By Reporting Segment The following table summarizes restructuring expense for the three months ended March 31, 2023 and 2022 by reporting segment: Three Months Ended March 31, 2023 2022 Automotive $ 1,074 $ 181 Medical — — Corporate 195 — Total $ 1,269 $ 181 Restructuring Liability Restructuring liabilities are classified as other current liabilities in the consolidated condensed balance sheets. The following table summarizes restructuring liability for the three months ended March 31, 2023: Employee Separation Costs Other Related Costs Total Balance at December 31, 2022 $ 588 $ — $ 588 Additions, charged to restructuring expenses 1,206 63 1,269 Cash payments — ( 63 ) ( 63 ) Currency translation 16 — 16 Balance at March 31, 2023 $ 1,810 $ — $ 1,810 Impairments – Non-Automotive Electronics Business On December 31, 2022, the Company approved a plan to exit its non-automotive electronics business to strengthen the Company’s core business and focus its resources and equipment with businesses and investments that are more strategic and profitable. The Company will continue to sell certain non-automotive electronics products until the exit is complete. During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $ 9,378 , $ 5,601 and $ 690 for write downs of inventory, intangible assets and property and equipment, respectively, within the Automotive segment. During the three months ended March 31, 2023 , the Company recorded non-cash impairment charges of $ 1,419 for the write down of inventory within the Automotive segment. This charge is recorded in Cost of sales. The Company is no longer pursuing a sale of the business and intends to wind-down the operations of the business by the end of 2023, subject to discussions with customers and suppliers. |
Details of Certain Balance Shee
Details of Certain Balance Sheet Components | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Components [Abstract] | |
Details of Certain Balance Sheet Components | Note 4 – Details of Certain Balance Sheet Components March 31, 2023 December 31, 2022 Other current assets: Billable tooling $ 16,296 $ 15,267 Income tax and other tax receivable 14,048 15,041 Notes receivable 13,075 12,127 Prepaid expenses 8,800 6,239 Short-term derivative financial instruments 8,548 6,564 Receivables due from factor 5,987 5,490 Other 2,937 3,869 Total other current assets $ 69,691 $ 64,597 Other current liabilities: Accrued employee liabilities $ 29,119 $ 32,031 Liabilities from discounts and rebates 26,148 26,640 Income tax and other taxes payable 16,413 14,459 Accrued warranty 2,821 2,380 Restructuring 1,810 588 Other 12,585 17,716 Total other current liabilities $ 88,896 $ 93,814 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Note 5 – Goodwill and Other Intangibles Goodwill Changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2023 was as follows: Automotive Medical Total Balance as of December 31, 2022 $ 73,069 $ 46,705 $ 119,774 Currency translation 949 232 1,181 Balance as of March 31, 2023 $ 74,018 $ 46,937 $ 120,955 Other Intangible Assets Other intangible assets and accumulated amortization balances as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Definite-lived: Customer relationships $ 113,909 $ ( 68,795 ) $ 45,114 $ 112,286 $ ( 65,748 ) $ 46,538 Technology 45,340 ( 26,696 ) 18,644 44,745 ( 25,709 ) 19,036 Product development costs 19,051 ( 18,884 ) 167 18,774 ( 18,456 ) 318 Software development 1,007 — 1,007 1,007 — 1,007 Indefinite-lived: Tradenames 7,119 — 7,119 7,034 — 7,034 Total $ 186,426 $ ( 114,375 ) $ 72,051 $ 183,846 $ ( 109,913 ) $ 73,933 In addition to annual impairment testing, which is performed in the fourth quarter of each fiscal year, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions used in determining fair value and therefore require interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. We are not presently aware of any events or circumstances that would require us to revise the carrying value of our assets or liabilities as of March 31, 2023 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 – Debt The following table summarizes the Company’s debt as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Interest Principal Interest Principal Credit Agreement: Revolving Credit Facility (U.S. Dollar denominations) 6.28 % $ 232,000 5.80 % $ 232,000 Other loans 3.90 % - 5.21 % 1,555 3.89 % - 5.21 % 2,011 Finance leases N/A 999 N/A 1,085 Total debt 234,554 235,096 Current maturities ( 1,996 ) ( 2,443 ) Long-term debt, less current maturities $ 232,558 $ 232,653 Credit Agreement On June 10, 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) with a consortium of lenders and Bank of America, N.A. as administrative agent (the “Agent”). The Second Amended and Restated Credit Agreement provides for a $ 500,000 secured revolving credit facility (the “Revolving Credit Facility”), with a $ 50,000 sublimit for swing line loans and a $ 15,000 sublimit for the issuance of standby letters of credit. Any amount of the facility utilized for swing line loans or letters of credit outstanding will reduce the amount available under the Second Amended and Restated Credit Agreement. The Company had no ou tstanding letters of credit issued as of March 31, 2023 and December 31, 2022. Subject to specified conditions, Gentherm can increase the Revolving Credit Facility or incur secured term loans in an aggregate amount of up to $ 200,000 . The Second Amended and Restated Credit Agreement matures on June 10, 2027 . The U.S. borrowers and guarantors participating in the Second Amended and Restated Credit Agreement also entered into a Second Amended and Restated Pledge and Security Agreement (the “Second Amended and Restated Security Agreement”). The Second Amended and Restated Security Agreement grants a security interest to the Agent in substantially all of the personal property of the Company and its U.S. subsidiaries designated as borrowers to secure their respective obligations under the Second Amended and Restated Security Agreement, including the stock and membership interests of specified subsidiaries (limited to 66 % of the stock in the case of certain non-U.S. subsidiaries). In addition to the security obligations, all obligations under the Second Amended and Restated Credit Agreement (including all obligations of any U.S. or non-U.S. loan party) are unconditionally guaranteed by certain of Gentherm’s domestic subsidiaries, and the German subsidiary borrowers and certain other foreign subsidiaries guarantee all obligations of the non-U.S. loan parties under the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement restricts, among other things, the amount of dividend payments the Company can make to shareholders. The Second Amended and Restated Credit Agreement contains covenants, that, among other things, (i) prohibit or limit the ability of the borrowers and any material subsidiary to incur additional indebtedness, create liens, pay dividends, make certain types of investments (including acquisitions), enter into certain types of transactions with affiliates, prepay other indebtedness, sell assets or enter into certain other transactions outside the ordinary course of business, and (ii) require that Gentherm maintain a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Net Leverage Ratio (based on consolidated EBITDA for the applicable trailing four fiscal quarters) as of the end of any fiscal quarter. The Second Amended and Restated Credit Agreement also contains customary events of default. As of March 31, 2023, the Company was in compliance with the terms of the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement additionally contains customary events of default. Upon the occurrence of an event of default, the amounts outstanding under the Revolving Credit Facility may be accelerated and may become immediately due and payable. Under the Second Amended and Restated Credit Agreement, U.S. Dollar denominated loans bear interest at either a base rate (“Base Rate Loans”) or Term SOFR rate (“Term SOFR Rate Loans”), plus a margin (“Applicable Rate”). The rate for Base Rate Loans is equal to the highest of the Federal Funds Rate plus 0.50 %, Bank of America’s prime rate, or the Term SOFR rate plus 1.00 %. The rate for Term SOFR Rate Loans denominated in U.S. Dollars is equal to the forward-looking Secured Overnight Financing Rate (“SOFR”) term rate administered by the CME with a term of one month. All loans denominated in a currency other than the U.S. Dollar must be Term SOFR Rate Loans. Interest is payable at least quarterly. Additionally, a commitment fee of between 0.175 % to 0.300 %, which will vary based on the Consolidated Net Leverage Ratio, as defined in the Second Amended and Restated Credit Agreement, is payable on the average daily unused amounts under the Revolving Credit Facility. The Applicable Rate varies based on the Consolidated Net Leverage Ratio reported by the Company. As long as the Company is not in default of the terms and conditions of the Second Amended and Restated Credit Agreement, the lowest and highest possible Applicable Rate is 1.125 % and 2.125 %, respectively, for Term SOFR Rate Loans and 0.125 % and 1.125 %, respectively, for Base Rate Loans. Borrowing availability is subject to, among other things, the Company’s compliance with the minimum Consolidated Interest Coverage Ratio and the maximum Consolidated Net Leverage Ratio as of the end of any fiscal quarter. Based upon consolidated EBITDA for the trailing four fiscal quarters calculated for purposes of the Consolidated Net Leverag e Ratio, $ 266,444 r emained available as of March 31, 2023 for additional borrowings under the Second Amended and Restated Credit Agreement subject to specified conditions that Gentherm currently satisfies. In connection with the Second Amended and Restated Credit Agreement, the Company incurred debt issuance costs of $ 1,417 , which have been capitalized and will be amortized into interest expense over the term of the credit facility. The scheduled principal maturities of our debt as of March 31, 2023 were as follows: U.S. Other Debt Total 2023 $ — $ 1,892 $ 1,892 2024 — 440 440 2025 — 152 152 2026 — 70 70 2027 232,000 — 232,000 2028 — — — Total $ 232,000 $ 2,554 $ 234,554 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies Legal and other contingencies The Company may be subject to various legal actions and claims in the ordinary course of its business, including those arising out of breach of contracts, intellectual property rights, environmental matters, regulatory matters and employment-related matters. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimated. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse effect on its consolidated condensed results of operations or financial position. Product liability and warranty reserves are recorded separately from legal reserves. Product Liability and Warranty Matters In the event that the Company’s products fail to perform as expected or result in alleged bodily injury or property damage, our products may subject us to warranty claims and product liability. If any of our products are or are alleged to be defective, we may be required to participate in a recall or other corrective action involving such products. The Company maintains liability insurance coverage at levels based on commercial norms and historical claims experience. The Company can provide no assurances that it will not experience material claims or liabilities in the future or that it will not incur significant costs to defend such claims. The Company accrues warranty obligations for products sold based on management estimates of future failure rates and current claim cost experience, with support from the sales, engineering, quality and legal functions. Using historical information available to the Company, including any claims filed by customers, the warranty accrual is adjusted quarterly to reflect management’s estimate of future claims. The following is a reconciliation of the changes in accrued warranty costs: Three Months Ended March 31, 2023 2022 Balance at the beginning of the period $ 2,380 $ 1,916 Warranty claims paid ( 559 ) ( 334 ) Warranty expense for products shipped during the current period 988 354 Adjustments to warranty estimates from prior periods ( 6 ) ( 152 ) Adjustments due to currency translation 18 ( 12 ) Balance at the end of the period $ 2,821 $ 1,772 Other matters Purchase commitments for materials, supplies, services and capital expenditures, as part of the normal course of business, are generally consistent from year to year. In addition, due to supply shortages of semiconductors, the Company has entered into agreements with various suppliers to reserve the right to purchase certain semiconductor chips over rolling periods of 12 - 24 months , with volume commitments determined based on our anticipated production requirements. As of March 31, 2023 , the Company’s total commitments for these semiconductor chip agreements was $ 40,593 . Such agreements provide the Company with priority access to semiconductor chips as they become available, however, these agreements do not guarantee that our suppliers will meet the timing and quantities requested by Gentherm. All other purchase commitments as of March 31, 2023 were immaterial. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 8 – Earnings Per Share Basic earnings per share are computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. The Company’s diluted earnings per share give effect to all potential shares of Common Stock outstanding during a period that do not have an anti-dilutive impact to the calculation. In computing the diluted earnings per share, the treasury stock method is used in determining the number of shares assumed to be issued from the exercise of Common Stock equivalents. The following table illustrates earnings per share and the weighted average shares outstanding used in calculating basic and diluted earnings per share: Three Months Ended March 31, 2023 2022 Net income $ 7,963 $ 11,747 Basic weighted average shares of Common Stock outstanding 33,181,828 33,034,872 Dilutive effect of stock options, restricted stock awards and restricted stock units 204,306 341,892 Diluted weighted average shares of Common Stock outstanding 33,386,134 33,376,764 Basic earnings per share $ 0.24 $ 0.36 Diluted earnings per share $ 0.24 $ 0.35 There were no shares excluded from the Company’s diluted earnings per share for the three months ended March 31, 2023 and 2022 on the basis that their inclusion would have an anti-dilutive impact on the calculation. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 9 – Financial Instruments Derivative Financial Instruments The Company is exposed to various market risks including, but not limited to, changes in foreign currency exchange rates, changes in interest rates and price fluctuations of certain material commodities such as copper. Market risks for changes in interest rates relate primarily to its debt obligations under the Second Amended and Restated Credit Agreement. Foreign currency exchange risks are attributable to sales to foreign customers and purchases from foreign suppliers not denominated in a location’s functional currency, foreign plant operations, intercompany indebtedness, intercompany investments and include exposures to the Euro, Mexican Peso, Canadian Dollar, Hungarian Forint, North Macedonian Denar, Ukrainian Hryvnia, Japanese Yen, Chinese Renminbi, Korean Won, Czech Koruna and Vietnamese Dong. The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. The decision of whether and when to execute derivative financial instruments, along with the duration of the instrument, may vary from period to period depending on market conditions, the relative costs of the instruments and capacity to hedge. The duration is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. The Company does not enter into derivative financial instruments for speculative or trading purposes. Some derivative contracts do not qualify for hedge accounting; for other derivative contracts, we elect to not apply hedge accounting. The Company’s designated hedging relationships are formally documented at the inception of the hedge, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions both at the inception of a hedge and on an ongoing basis to be designated for hedge accounting treatment. For derivative contracts which can be classified as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded to Accumulated other comprehensive loss in the consolidated condensed balance sheets. When the underlying hedge transaction is realized, the gain or loss included in Accumulated other comprehensive loss is recorded in earnings in the consolidated condensed statements of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. The Company records the ineffective portion of designated foreign currency and copper commodity hedging instruments, if any, to cost of sales in the consolidated condensed statements of income. Cash flows associated with derivatives are reported in net cash provided by (used in) operating activities in the Company’s consolidated condensed statements of cash flows. The Company uses an income approach to value derivative instruments, analyzing quoted market prices to calculate the forward values and then discounting such forward values to the present value using benchmark rates at commonly quoted intervals for the instrument’s full term. The Company is party to a floating-to-fixed interest rate swap agreement with a notional amount of $ 100,000 and a maturity date of July 2025 . This interest rate swap is an undesignated hedge of the Company’s exposure to interest payment fluctuations on a portion of the Revolving Credit Facility borrowings that were drawn for the acquisitions of Alfmeier and Dacheng. The periodic changes in fair value is recognized in Interest expense, net. Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of March 31, 2023 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Asset/ Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 69,108 Other current assets $ 6,474 Other current liabilities $ — $ 6,474 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,073 Other current liabilities $ — $ 2,073 Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of December 31, 2022 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Asset/ Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 40,063 Other current assets $ 3,791 Other current liabilities $ — $ 3,791 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,772 Other current liabilities $ — $ 2,772 Information relating to the effect of derivative instruments on our consolidated condensed statements of income and the consolidated condensed statements of comprehensive income is as follows: Three Months Ended March 31, Location 2023 2022 Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Cost of sales – income $ 1,059 $ 153 Other comprehensive income 2,683 610 Total foreign currency derivatives $ 3,742 $ 763 Commodity derivatives Cost of sales – income $ — $ 19 Other comprehensive loss — ( 6 ) Total commodity derivatives $ — $ 13 Derivatives Not Designated as Hedging Instruments Interest rate contracts Interest income, net $ ( 699 ) $ — Total interest rate derivatives $ ( 699 ) $ — The Company did no t incur any hedge ineffectiveness during the three months ended March 31, 2023 and 2022. Accounts Receivable Factoring The Company sells certain customer trade receivables on a non-recourse basis under factoring arrangements with designated financial institutions. The sale of receivables under these agreements is considered an off-balance sheet arrangement to the Company and is accounted for as a true sale and excluded from accounts receivable in the consolidated condensed balance sheets. These factoring arrangements include a deferred purchase price component in which a portion of the purchase price for the receivable is paid by the financial institution in cash upon sale and the remaining portion is recorded as a deferred purchase price receivable and paid at a later date. Deferred purchase price receivables are recorded in Other current assets within the consolidated condensed balance sheets. Cash proceeds received upon the sale of the receivables are included in net cash provided by (used in) operating activities and the cash proceeds received on the deferred purchase price receivables are included in cash provided by investing activities. All factoring arrangements incorporate customary representations, including representations as to validity of amounts due, completeness of performance obligations and absence of commercial disputes. Receivables factored and availability under receivables factoring agreements balances as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Receivables factored and outstanding $ 21,034 $ 19,108 Amount available under the credit limit 3,321 5,034 Collective factoring limit $ 24,355 $ 24,142 Trade receivables sold and factoring fees incurred during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Trade receivables sold $ 38,540 $ — Factoring fees incurred 161 — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on one or more of the following three valuation techniques: Market : This approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income : This approach uses valuation techniques to convert future amounts to a single present value amount based on current market expectations. Cost : This approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). The Company uses the following fair value hierarchy to measure fair value into three broad levels, which are described below: Level 1 : Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 : Inputs, other than quoted market prices included in Level 1, that are observable either directly or indirectly for the asset or liability. Level 3 : Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Items Measured at Fair Value on a Recurring Basis Except for derivative instruments (see Note 9) and pension plan assets, the Company had no material financial assets and liabilities that were carried at fair value at March 31, 2023 and December 31, 2022. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and also considers counterparty credit risk in its assessment of fair value. Items Measured at Fair Value on a Nonrecurring Basis The Company measures certain assets and liabilities at fair value on a non-recurring basis. As these nonrecurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. The Company utilized a third-party to assist in the Level 3 fair value estimates of other intangible assets for recent acquisitions (see Note 2). The estimated fair values of these assets were based on third-party valuations and management’s estimates, generally utilizing income and market approaches. As of March 31, 2023, and December 31, 2022 , there were no other significant assets or liabilities measured at fair value on a non-recurring basis. Items Not Carried at Fair Value The Company uses an income valuation technique to measure the fair values of its debt instruments by converting amounts of future cash flows to a single present value amount using rates based on current market expectations (Level 2 inputs). As of March 31, 2023, and December 31, 2022 , the carrying values of the indebtedness under the Company’s Second Amended and Restated Credit Agreement were not materially different than the estimated fair values because the interest rates on variable rate debt approximated rates currently available to the Company (see Note 6). |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 11 – Equity In December 2020, the Board of Directors of Gentherm Incorporated (“Board of Directors”) authorized a stock repurchase program (the “2020 Stock Repurchase Program”). Under the 2020 Stock Repurchase Program, the Company is authorized to repurchase up to $ 150,000 of its issued and outstanding common stock over a three-year period, expiring December 15, 2023 . Repurchases may be made, from time to time, in amounts and at prices the Company deems appropriate, subject to market conditions, applicable legal requirements, debt covenants and other considerations. Any such repurchases may be executed using open market purchases, privately negotiated agreements or other transactions. Repurchases may be funded from cash on hand, available borrowings or proceeds from potential debt or other capital markets sources. During the three months ended March 31, 2023 , the Company repurchased $ 9,997 of shares under the 2020 Stock Repurchase Program with an average price paid per share of $ 59.27 . The 2020 Stock Repurchase Program had $ 120,003 of repurchase authorization remaining as of March 31, 2023 . |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Note 12 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Reclassification adjustments and other activities impacting Accumulated other comprehensive loss during the three months ended March 31, 2023 and 2022 were as follows: Defined Foreign Foreign Commodity Hedge Total Balance at December 31, 2022 $ ( 1,067 ) $ ( 48,269 ) $ 2,847 $ — $ ( 46,489 ) Other comprehensive income before reclassifications — 8,191 3,742 — 11,933 Income tax effect of other comprehensive income before reclassifications — 64 ( 815 ) — ( 751 ) Amounts reclassified from accumulated other comprehensive income into net income 6 — ( 1,059 ) a — a ( 1,053 ) Income taxes reclassified into net income ( 2 ) — 261 — 259 Net current period other comprehensive income 4 8,255 2,129 — 10,388 Balance at March 31, 2023 $ ( 1,063 ) $ ( 40,014 ) $ 4,976 $ — $ ( 36,101 ) (a) The amounts reclassified from accumulated other comprehensive loss were included in cost of sales. Defined Foreign Foreign Commodity Hedge Total Balance at December 31, 2021 $ ( 2,893 ) $ ( 34,188 ) $ 154 $ 5 $ ( 36,922 ) Other comprehensive (loss) income before reclassifications — ( 9,154 ) 763 13 ( 8,378 ) Income tax effect of other comprehensive loss before reclassifications — ( 140 ) ( 179 ) ( 3 ) ( 322 ) Amounts reclassified from accumulated other comprehensive loss into net income 35 — ( 153 ) a ( 19 ) a ( 137 ) Income taxes reclassified into net income ( 6 ) — 33 4 31 Net current period other comprehensive income (loss) 29 ( 9,294 ) 464 ( 5 ) ( 8,806 ) Balance at March 31, 2022 $ ( 2,864 ) $ ( 43,482 ) $ 618 $ — $ ( 45,728 ) (a) The amounts reclassified from accumulated other comprehensive loss were included in cost of sales. The Company expects all of the existing gains and losses related to foreign currency derivatives reported in Accumulated other comprehensive loss as of March 31, 2023 to be reclassified into earnings during the next twelve months. See Note 9 for additional information about derivative financial instruments and the effects from reclassification to net income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 – Income Taxes At the end of each interim period, the Company makes an estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to unusual or infrequent items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or income tax contingencies is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in respective jurisdictions, permanent and temporary differences, and the likelihood of the realizability of deferred tax assets generated in the current year. Jurisdictions with a projected loss for the year for which no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the composition and timing of actual earnings compared to annual projections. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained or as our tax environment changes. To the extent that the expected annual effective income tax rate changes, the effect of the change on prior interim periods is included in the income tax provision in the period in which the change in estimate occurs. A summary of the provision for income taxes and the corresponding effective tax rate for the three months ended March 31, 2023 and 2022, is shown below: Three Months Ended March 31, 2023 2022 Income tax expense $ 3,728 $ 4,295 Earnings before income tax $ 11,691 $ 16,042 Effective tax rate 31.9 % 26.8 % Income tax expense was $ 3,728 for the three months ended March 31, 2023 on earnings before income tax of $ 11,691 , representing an effective tax rate of 31.9 % . The tax amount included the effect of the settlement and closure of a multi-year state audit of $ 454 . Adjusted for the audit impacts, the effective rate was 28.0 %. The effective tax rate differed from the U.S. Federal statutory rate of 21.0 % primarily due to the impact of income taxes on foreign earnings taxed at rates varying from the U.S. statutory rate, the unfavorable impact of the global intangible low-tax income (“GILTI”), and the quarterly accrual for uncertain tax positions, partially offset by the impact of research and development credits in various jurisdictions and certain favorable tax effects on stock compensation vesting. Income tax expense was $ 4,295 for the three months ended March 31, 2022 on earnings before income tax of $ 16,042 representing an effective tax rate of 26.8 %. The effective tax rate differed from the U.S. Federal statutory rate of 21.0 % primarily due to the impact of income taxes on foreign earnings taxed at rates varying from the U.S. statutory rate, the unfavorable impact of the GILTI, and the quarterly accrual for uncertain tax positions, partially offset by the impact of certain favorable tax effects on stock compensation vesting. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 14 – Segment Reporting Segment information is used by management for making 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 comfort systems, automotive cable systems, lumbar and massage comfort solutions, valve systems, battery performance solutions, and automotive electronic and software systems. • Medical – this segment represents the results from our patient temperature management business within the medical industry. The Corporate category includes unallocated costs related to our corporate headquarter activities, including selling, general and administrative costs and acquisition transaction costs, which do not meet the requirements for being classified as an operating segment. The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three months ended March 31, 2023 and 2022. Three Months Ended March 31, Automotive Medical Corporate Total 2023 Product revenues $ 352,692 $ 10,933 $ — $ 363,625 Depreciation and amortization 12,290 978 265 $ 13,583 Operating income (loss) 38,379 ( 493 ) ( 20,212 ) $ 17,674 2022 Product revenues $ 257,864 $ 9,793 $ — $ 267,657 Depreciation and amortization 8,667 604 306 $ 9,577 Operating income (loss) 31,275 ( 851 ) ( 16,234 ) $ 14,190 Automotive and Medical segment product revenues by product category for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Climate Control Seat $ 114,753 $ 102,734 Seat Heaters 75,636 68,896 Lumbar and Massage Comfort Solutions (a) 38,738 — Steering Wheel Heaters 36,347 28,736 Valve Systems (a) 26,994 — Battery Performance Solutions 20,309 17,613 Automotive Cables 20,220 22,045 Electronics 10,970 10,828 Other Automotive 8,725 7,012 Subtotal Automotive segment 352,692 257,864 Medical segment (b) 10,933 9,793 Total Company $ 363,625 $ 267,657 (a) Represents product revenues from Alfmeier (acquired on August 1, 2022) - (see Note 2) (b) Includes product revenues of $ 1,279 from Dacheng (acquired on July 13, 2022) - (see Note 2) Total product revenues information by geographic area for the three months ended March 31, 2023 and 2022 is as follows (based on shipment destination): Three Months Ended March 31, 2023 2022 United States $ 141,452 $ 104,122 China 46,654 38,353 South Korea 28,738 21,175 Germany 26,512 19,786 Czech Republic 17,650 10,808 Japan 15,222 11,816 Romania 12,533 12,755 Slovakia 11,596 8,536 Finland 10,133 7,893 Mexico 9,094 4,547 Other 44,041 27,866 Total Non-U.S. 222,173 163,535 Total Company $ 363,625 $ 267,657 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The unaudited consolidated condensed financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations. The information furnished in the consolidated condensed financial statements include all adjustments (consisting of only normal, recurring adjustments) considered necessary to present fairly the results of operations, financial position and cash flows of the Company. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. In preparing these financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other outside sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur and additional information is obtained. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated condensed financial statements include the accounts of the Company, its wholly owned subsidiaries and those entities in which it has a controlling financial interest. The Company evaluates its relationship with other entities for consolidation and to identify whether such entities are variable interest entities (“VIE”) and to assess whether the Company is the primary beneficiary of such entities. Investments in entities in which Gentherm does not have control but does have the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. When Gentherm does not have the ability to exercise significant influence (generally when ownership interest is less than 20 %), investments in entities are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. |
Variable Interest Entities | Variable Interest Entities The Company maintains an ownership interest in a VIE, Carrar Ltd. (“Carrar”). Carrar is a technology developer of advanced thermal management systems for the electric mobility market. The Company determined that Carrar is a VIE; however, the Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of the investment. Therefore, the Company has concluded that it is not the primary beneficiary. Gentherm’s investment in Carrar is measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Carrar investment was $ 5,200 as of March 31, 2023 and December 31, 2022 , and is recorded in Other non-current assets in the consolidated condensed balance sheets. |
Revenue Recognition | Revenue Recognition The Company has no material contract assets or contract liabilities as of March 31, 2023. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the benefits of those costs are expected to be realized for a period greater than one year . Total capitalized costs to obtain a contract were $ 3,029 and $ 2,239 as of March 31, 2023 and December 31, 2022 , respectively. These amounts are recorded in Other non-current assets and are being amortized into Product revenues over the expected production life of the applicable program. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Alfmeier | |
Business Acquisition [Line Items] | |
Summary of Purchase Consideration and Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase consideration and preliminary estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments: Initial Allocation Measurement Period Adjustments Revised Allocation Purchase price, cash consideration, net of cash acquired $ 164,887 $ 5,813 $ 170,700 — Accounts receivable 24,988 ( 121 ) 24,867 Inventory 36,026 ( 106 ) 35,920 Prepaid expenses and other assets 20,920 ( 74 ) 20,846 Operating lease right-of-use assets 4,608 — 4,608 Property and equipment 89,942 1,242 91,184 Other intangible assets 22,668 8,791 31,459 Goodwill 43,678 ( 9,184 ) 34,494 Assumed liabilities ( 55,994 ) 975 ( 55,019 ) Deferred tax liabilities ( 21,949 ) 4,290 ( 17,659 ) Net assets acquired $ 164,887 $ 5,813 $ 170,700 |
Summary of Preliminary Allocation of Purchase Consideration to Other Intangible Assets Acquired | The following table summarizes the preliminary allocation of the purchase consideration to the other intangible assets acquired: Preliminary Fair Value Weighted Average Life (in years) Definite-lived: Customer related $ 19,812 14 Technology 11,647 9 Total $ 31,459 |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma information represents our product revenues as if the acquisition of Alfmeier had occurred as of January 1, 2022: Three Months Ended March 31, 2022 Product revenues $ 333,756 Net income 8,567 |
Dacheng | |
Business Acquisition [Line Items] | |
Summary of Purchase Consideration and Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase consideration and preliminary estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments: Initial Allocation Measurement Period Adjustments Revised Allocation Purchase price, cash consideration, net of cash acquired $ 35,048 $ — $ 35,048 — Accounts receivable 746 ( 84 ) 662 Inventory 1,942 ( 177 ) 1,765 Prepaid expenses and other assets 152 22 174 Operating lease right-of-use assets 841 — 841 Property and equipment 684 — 684 Other intangible assets 19,094 965 20,059 Goodwill 22,995 ( 3,979 ) 19,016 Assumed liabilities ( 2,799 ) ( 40 ) ( 2,839 ) Deferred tax liabilities ( 8,607 ) 3,293 ( 5,314 ) Net assets acquired $ 35,048 $ — $ 35,048 |
Summary of Preliminary Allocation of Purchase Consideration to Other Intangible Assets Acquired | The following table summarizes the preliminary allocation of the purchase consideration to the other intangible assets acquired: Preliminary Fair Value Weighted Average Life (in years) Definite-lived: Customer related $ 12,837 12 Technology 4,749 12 Indefinite-lived: Tradenames 2,473 — Total $ 20,059 |
Restructuring and Impairments (
Restructuring and Impairments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Expense by Reportable Segment | The following table summarizes restructuring expense for the three months ended March 31, 2023 and 2022 by reporting segment: Three Months Ended March 31, 2023 2022 Automotive $ 1,074 $ 181 Medical — — Corporate 195 — Total $ 1,269 $ 181 |
Summary of Restructuring Liability | Restructuring liabilities are classified as other current liabilities in the consolidated condensed balance sheets. The following table summarizes restructuring liability for the three months ended March 31, 2023: Employee Separation Costs Other Related Costs Total Balance at December 31, 2022 $ 588 $ — $ 588 Additions, charged to restructuring expenses 1,206 63 1,269 Cash payments — ( 63 ) ( 63 ) Currency translation 16 — 16 Balance at March 31, 2023 $ 1,810 $ — $ 1,810 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Components [Abstract] | |
Summary of Certain Balance Sheet Components | March 31, 2023 December 31, 2022 Other current assets: Billable tooling $ 16,296 $ 15,267 Income tax and other tax receivable 14,048 15,041 Notes receivable 13,075 12,127 Prepaid expenses 8,800 6,239 Short-term derivative financial instruments 8,548 6,564 Receivables due from factor 5,987 5,490 Other 2,937 3,869 Total other current assets $ 69,691 $ 64,597 Other current liabilities: Accrued employee liabilities $ 29,119 $ 32,031 Liabilities from discounts and rebates 26,148 26,640 Income tax and other taxes payable 16,413 14,459 Accrued warranty 2,821 2,380 Restructuring 1,810 588 Other 12,585 17,716 Total other current liabilities $ 88,896 $ 93,814 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in the Carrying Amount of Goodwill, By Reportable Segment | Changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2023 was as follows: Automotive Medical Total Balance as of December 31, 2022 $ 73,069 $ 46,705 $ 119,774 Currency translation 949 232 1,181 Balance as of March 31, 2023 $ 74,018 $ 46,937 $ 120,955 |
Summary of Other Intangible Assets and Accumulated Amortization Balances | Other intangible assets and accumulated amortization balances as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Definite-lived: Customer relationships $ 113,909 $ ( 68,795 ) $ 45,114 $ 112,286 $ ( 65,748 ) $ 46,538 Technology 45,340 ( 26,696 ) 18,644 44,745 ( 25,709 ) 19,036 Product development costs 19,051 ( 18,884 ) 167 18,774 ( 18,456 ) 318 Software development 1,007 — 1,007 1,007 — 1,007 Indefinite-lived: Tradenames 7,119 — 7,119 7,034 — 7,034 Total $ 186,426 $ ( 114,375 ) $ 72,051 $ 183,846 $ ( 109,913 ) $ 73,933 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Company's Debt | The following table summarizes the Company’s debt as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Interest Principal Interest Principal Credit Agreement: Revolving Credit Facility (U.S. Dollar denominations) 6.28 % $ 232,000 5.80 % $ 232,000 Other loans 3.90 % - 5.21 % 1,555 3.89 % - 5.21 % 2,011 Finance leases N/A 999 N/A 1,085 Total debt 234,554 235,096 Current maturities ( 1,996 ) ( 2,443 ) Long-term debt, less current maturities $ 232,558 $ 232,653 |
Principal Maturities of Debt | The scheduled principal maturities of our debt as of March 31, 2023 were as follows: U.S. Other Debt Total 2023 $ — $ 1,892 $ 1,892 2024 — 440 440 2025 — 152 152 2026 — 70 70 2027 232,000 — 232,000 2028 — — — Total $ 232,000 $ 2,554 $ 234,554 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reconciliation of Changes in Accrued Warranty Costs | The following is a reconciliation of the changes in accrued warranty costs: Three Months Ended March 31, 2023 2022 Balance at the beginning of the period $ 2,380 $ 1,916 Warranty claims paid ( 559 ) ( 334 ) Warranty expense for products shipped during the current period 988 354 Adjustments to warranty estimates from prior periods ( 6 ) ( 152 ) Adjustments due to currency translation 18 ( 12 ) Balance at the end of the period $ 2,821 $ 1,772 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share and Weighted Average Shares Outstanding Used in Calculating Basic and Diluted Earnings per Share | The following table illustrates earnings per share and the weighted average shares outstanding used in calculating basic and diluted earnings per share: Three Months Ended March 31, 2023 2022 Net income $ 7,963 $ 11,747 Basic weighted average shares of Common Stock outstanding 33,181,828 33,034,872 Dilutive effect of stock options, restricted stock awards and restricted stock units 204,306 341,892 Diluted weighted average shares of Common Stock outstanding 33,386,134 33,376,764 Basic earnings per share $ 0.24 $ 0.36 Diluted earnings per share $ 0.24 $ 0.35 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Information Related to Recurring Fair Value Measurement of Derivative Instruments in Our Consolidated Condensed Balance Sheet | Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of March 31, 2023 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Asset/ Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 69,108 Other current assets $ 6,474 Other current liabilities $ — $ 6,474 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,073 Other current liabilities $ — $ 2,073 Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of December 31, 2022 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Asset/ Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 40,063 Other current assets $ 3,791 Other current liabilities $ — $ 3,791 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,772 Other current liabilities $ — $ 2,772 |
Information Related to Effect of Derivative Instruments on Our Consolidated Condensed Statements of Income and Consolidated Condensed Statements of Comprehensive Income (Loss) | Information relating to the effect of derivative instruments on our consolidated condensed statements of income and the consolidated condensed statements of comprehensive income is as follows: Three Months Ended March 31, Location 2023 2022 Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Cost of sales – income $ 1,059 $ 153 Other comprehensive income 2,683 610 Total foreign currency derivatives $ 3,742 $ 763 Commodity derivatives Cost of sales – income $ — $ 19 Other comprehensive loss — ( 6 ) Total commodity derivatives $ — $ 13 Derivatives Not Designated as Hedging Instruments Interest rate contracts Interest income, net $ ( 699 ) $ — Total interest rate derivatives $ ( 699 ) $ — |
Summary of Receivables Factored and Availability Under Receivables Factoring Agreements | Receivables factored and availability under receivables factoring agreements balances as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Receivables factored and outstanding $ 21,034 $ 19,108 Amount available under the credit limit 3,321 5,034 Collective factoring limit $ 24,355 $ 24,142 |
Summary of Trade Receivables Sold and Factoring Fees Incurred | Trade receivables sold and factoring fees incurred during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Trade receivables sold $ 38,540 $ — Factoring fees incurred 161 — |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Loss | Reclassification adjustments and other activities impacting Accumulated other comprehensive loss during the three months ended March 31, 2023 and 2022 were as follows: Defined Foreign Foreign Commodity Hedge Total Balance at December 31, 2022 $ ( 1,067 ) $ ( 48,269 ) $ 2,847 $ — $ ( 46,489 ) Other comprehensive income before reclassifications — 8,191 3,742 — 11,933 Income tax effect of other comprehensive income before reclassifications — 64 ( 815 ) — ( 751 ) Amounts reclassified from accumulated other comprehensive income into net income 6 — ( 1,059 ) a — a ( 1,053 ) Income taxes reclassified into net income ( 2 ) — 261 — 259 Net current period other comprehensive income 4 8,255 2,129 — 10,388 Balance at March 31, 2023 $ ( 1,063 ) $ ( 40,014 ) $ 4,976 $ — $ ( 36,101 ) (a) The amounts reclassified from accumulated other comprehensive loss were included in cost of sales. Defined Foreign Foreign Commodity Hedge Total Balance at December 31, 2021 $ ( 2,893 ) $ ( 34,188 ) $ 154 $ 5 $ ( 36,922 ) Other comprehensive (loss) income before reclassifications — ( 9,154 ) 763 13 ( 8,378 ) Income tax effect of other comprehensive loss before reclassifications — ( 140 ) ( 179 ) ( 3 ) ( 322 ) Amounts reclassified from accumulated other comprehensive loss into net income 35 — ( 153 ) a ( 19 ) a ( 137 ) Income taxes reclassified into net income ( 6 ) — 33 4 31 Net current period other comprehensive income (loss) 29 ( 9,294 ) 464 ( 5 ) ( 8,806 ) Balance at March 31, 2022 $ ( 2,864 ) $ ( 43,482 ) $ 618 $ — $ ( 45,728 ) (a) The amounts reclassified from accumulated other comprehensive loss were included in cost of sales. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes and Corresponding Effective Tax Rate | A summary of the provision for income taxes and the corresponding effective tax rate for the three months ended March 31, 2023 and 2022, is shown below: Three Months Ended March 31, 2023 2022 Income tax expense $ 3,728 $ 4,295 Earnings before income tax $ 11,691 $ 16,042 Effective tax rate 31.9 % 26.8 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) | The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three months ended March 31, 2023 and 2022. Three Months Ended March 31, Automotive Medical Corporate Total 2023 Product revenues $ 352,692 $ 10,933 $ — $ 363,625 Depreciation and amortization 12,290 978 265 $ 13,583 Operating income (loss) 38,379 ( 493 ) ( 20,212 ) $ 17,674 2022 Product revenues $ 257,864 $ 9,793 $ — $ 267,657 Depreciation and amortization 8,667 604 306 $ 9,577 Operating income (loss) 31,275 ( 851 ) ( 16,234 ) $ 14,190 |
Segment Information About Reported Segment Product Revenues by Product Category | Automotive and Medical segment product revenues by product category for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Climate Control Seat $ 114,753 $ 102,734 Seat Heaters 75,636 68,896 Lumbar and Massage Comfort Solutions (a) 38,738 — Steering Wheel Heaters 36,347 28,736 Valve Systems (a) 26,994 — Battery Performance Solutions 20,309 17,613 Automotive Cables 20,220 22,045 Electronics 10,970 10,828 Other Automotive 8,725 7,012 Subtotal Automotive segment 352,692 257,864 Medical segment (b) 10,933 9,793 Total Company $ 363,625 $ 267,657 (a) Represents product revenues from Alfmeier (acquired on August 1, 2022) - (see Note 2) (b) Includes product revenues of $ 1,279 from Dacheng (acquired on July 13, 2022) - (see Note 2) |
Product Revenues Information by Geographic Area | Total product revenues information by geographic area for the three months ended March 31, 2023 and 2022 is as follows (based on shipment destination): Three Months Ended March 31, 2023 2022 United States $ 141,452 $ 104,122 China 46,654 38,353 South Korea 28,738 21,175 Germany 26,512 19,786 Czech Republic 17,650 10,808 Japan 15,222 11,816 Romania 12,533 12,755 Slovakia 11,596 8,536 Finland 10,133 7,893 Mexico 9,094 4,547 Other 44,041 27,866 Total Non-U.S. 222,173 163,535 Total Company $ 363,625 $ 267,657 |
Overview - Additional Informati
Overview - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Investment amount | $ 5,200 | $ 5,200 |
Capitalized costs to obtain contract | $ 3,029 | $ 2,239 |
Entities Ownership Interest | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Ownership interest | 20% | |
Minimum | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Expected period of costs to be realized to recognize assets | 1 year |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Aug. 01, 2022 | Jul. 13, 2022 | Mar. 31, 2023 |
Alfmeier | |||
Business Acquisition [Line Items] | |||
Acquisition date | Aug. 01, 2022 | ||
Percentage of equity interests acquired | 100% | ||
Total consideration | $ 170,700,000 | ||
Net assets acquired | $ 170,700,000 | ||
Alfmeier | Measurement Period Adjustments | |||
Business Acquisition [Line Items] | |||
Net assets acquired | $ 5,813,000 | 0 | |
Dacheng | |||
Business Acquisition [Line Items] | |||
Acquisition date | Jul. 13, 2022 | ||
Percentage of equity interests acquired | 100% | ||
Total consideration | $ 35,048,000 | ||
Contingent payments | $ 500,000 | ||
Net assets acquired | 35,048,000 | ||
Dacheng | Measurement Period Adjustments | |||
Business Acquisition [Line Items] | |||
Net assets acquired | $ 0 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Consideration and Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) | 3 Months Ended | |||
Aug. 01, 2022 | Jul. 13, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 120,955,000 | $ 119,774,000 | ||
Alfmeier | ||||
Business Acquisition [Line Items] | ||||
Purchase price, cash consideration, net of cash acquired | 170,700,000 | |||
Accounts receivable | 24,867,000 | |||
Inventory | 35,920,000 | |||
Prepaid expenses and other assets | 20,846,000 | |||
Operating lease right-of-use assets | 4,608,000 | |||
Property and equipment | 91,184,000 | |||
Other intangible assets | $ 31,459,000 | 31,459,000 | ||
Goodwill | 34,494,000 | |||
Assumed liabilities | (55,019,000) | |||
Deferred tax liabilities | (17,659,000) | |||
Net assets acquired | 170,700,000 | |||
Alfmeier | Initial Allocation | ||||
Business Acquisition [Line Items] | ||||
Purchase price, cash consideration, net of cash acquired | 164,887,000 | |||
Accounts receivable | 24,988,000 | |||
Inventory | 36,026,000 | |||
Prepaid expenses and other assets | 20,920,000 | |||
Operating lease right-of-use assets | 4,608,000 | |||
Property and equipment | 89,942,000 | |||
Other intangible assets | 22,668,000 | |||
Goodwill | 43,678,000 | |||
Assumed liabilities | (55,994,000) | |||
Deferred tax liabilities | (21,949,000) | |||
Net assets acquired | 164,887,000 | |||
Alfmeier | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Purchase price, cash consideration, net of cash acquired | 5,813,000 | |||
Accounts receivable | (121,000) | |||
Inventory | (106,000) | |||
Prepaid expenses and other assets | (74,000) | |||
Property and equipment | 1,242,000 | |||
Other intangible assets | 8,791,000 | |||
Goodwill | (9,184,000) | |||
Assumed liabilities | 975,000 | |||
Deferred tax liabilities | 4,290,000 | |||
Net assets acquired | $ 5,813,000 | 0 | ||
Dacheng | ||||
Business Acquisition [Line Items] | ||||
Purchase price, cash consideration, net of cash acquired | 35,048,000 | |||
Accounts receivable | 662,000 | |||
Inventory | 1,765,000 | |||
Prepaid expenses and other assets | 174,000 | |||
Operating lease right-of-use assets | 841,000 | |||
Property and equipment | 684,000 | |||
Other intangible assets | $ 20,059,000 | 20,059,000 | ||
Goodwill | 19,016,000 | |||
Assumed liabilities | (2,839,000) | |||
Deferred tax liabilities | (5,314,000) | |||
Net assets acquired | 35,048,000 | |||
Dacheng | Initial Allocation | ||||
Business Acquisition [Line Items] | ||||
Purchase price, cash consideration, net of cash acquired | 35,048,000 | |||
Accounts receivable | 746,000 | |||
Inventory | 1,942,000 | |||
Prepaid expenses and other assets | 152,000 | |||
Operating lease right-of-use assets | 841,000 | |||
Property and equipment | 684,000 | |||
Other intangible assets | 19,094,000 | |||
Goodwill | 22,995,000 | |||
Assumed liabilities | (2,799,000) | |||
Deferred tax liabilities | (8,607,000) | |||
Net assets acquired | 35,048,000 | |||
Dacheng | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | (84,000) | |||
Inventory | (177,000) | |||
Prepaid expenses and other assets | 22,000 | |||
Other intangible assets | 965,000 | |||
Goodwill | (3,979,000) | |||
Assumed liabilities | (40,000) | |||
Deferred tax liabilities | $ 3,293,000 | |||
Net assets acquired | $ 0 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Consideration to Other Intangible Assets Acquired (Detail) - USD ($) $ in Thousands | Aug. 01, 2022 | Jul. 13, 2022 | Mar. 31, 2023 |
Alfmeier | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Total | $ 31,459 | $ 31,459 | |
Alfmeier | Customer Related | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Definite-lived | $ 19,812 | ||
Weighted Average Life (in years) | 14 years | ||
Alfmeier | Technology | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Definite-lived | $ 11,647 | ||
Weighted Average Life (in years) | 9 years | ||
Dacheng | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Total | $ 20,059 | $ 20,059 | |
Dacheng | Tradenames | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Indefinite-lived | 2,473 | ||
Dacheng | Customer Related | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Definite-lived | $ 12,837 | ||
Weighted Average Life (in years) | 12 years | ||
Dacheng | Technology | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value, Definite-lived | $ 4,749 | ||
Weighted Average Life (in years) | 12 years |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Detail) - Alfmeier $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Product revenues | $ 333,756 |
Net income | $ 8,567 |
Restructuring and Impairments -
Restructuring and Impairments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 1,269,000 | $ 181,000 | |
Description and timing of disposal | The Company is no longer pursuing a sale of the business and intends to wind-down the operations of the business by the end of 2023, subject to discussions with customers and suppliers. | ||
Property and Equipment | |||
Restructuring Cost And Reserve [Line Items] | |||
Non-cash impairment charges | $ 690,000 | ||
Intangible Assets | |||
Restructuring Cost And Reserve [Line Items] | |||
Non-cash impairment charges | 5,601,000 | ||
Inventory | |||
Restructuring Cost And Reserve [Line Items] | |||
Non-cash impairment charges | $ 1,419,000 | $ 9,378,000 | |
Manufacturing Footprint Rationalization | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 10,359,000 | ||
Other restructuring costs | 101,000 | ||
Restructuring expenses remains accrued | 588,000 | ||
Other Restructuring Activities | |||
Restructuring Cost And Reserve [Line Items] | |||
Other restructuring costs | 63,000 | 30,000 | |
Employee Separation Costs | Manufacturing Footprint Rationalization | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 0 | $ 50,000 | |
Employee Separation Costs | Other Restructuring Activities | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 1,206,000 |
Restructuring and Impairments_2
Restructuring and Impairments - Summary of Restructuring Expense by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | $ 1,269 | $ 181 |
Operating Segments | Automotive Segments | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | 1,074 | $ 181 |
Operating Segments | Corporate Segments | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | $ 195 |
Restructuring and Impairments_3
Restructuring and Impairments - Summary of Restructuring Liability (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance, beginning of period | $ 588 |
Additions, charged to restructuring expenses | 1,269 |
Cash payments | (63) |
Currency translation | 16 |
Balance, end of period | 1,810 |
Employee Separation Costs | |
Restructuring Cost And Reserve [Line Items] | |
Balance, beginning of period | 588 |
Additions, charged to restructuring expenses | 1,206 |
Currency translation | 16 |
Balance, end of period | 1,810 |
Other Related Costs | |
Restructuring Cost And Reserve [Line Items] | |
Additions, charged to restructuring expenses | 63 |
Cash payments | $ (63) |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Components (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||||
Billable tooling | $ 16,296 | $ 15,267 | ||
Income tax and other tax receivable | 14,048 | 15,041 | ||
Notes receivable | 13,075 | 12,127 | ||
Prepaid expenses | 8,800 | 6,239 | ||
Short-term derivative financial instruments | 8,548 | 6,564 | ||
Receivables due from factor | 5,987 | 5,490 | ||
Other | 2,937 | 3,869 | ||
Total other current assets | 69,691 | 64,597 | ||
Other current liabilities: | ||||
Accrued employee liabilities | 29,119 | 32,031 | ||
Liabilities from discounts and rebates | 26,148 | 26,640 | ||
Income tax and other taxes payable | 16,413 | 14,459 | ||
Accrued warranty | 2,821 | 2,380 | $ 1,772 | $ 1,916 |
Restructuring | 1,810 | 588 | ||
Other | 12,585 | 17,716 | ||
Total other current liabilities | $ 88,896 | $ 93,814 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Summary of Changes in the Carrying Amount of Goodwill, By Reportable Segment (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Line Items] | |
Balance, beginning of period | $ 119,774 |
Balance, end of period | 120,955 |
Operating Segments | |
Goodwill [Line Items] | |
Balance, beginning of period | 119,774 |
Currency translation | 1,181 |
Balance, end of period | 120,955 |
Automotive Segments | Operating Segments | |
Goodwill [Line Items] | |
Balance, beginning of period | 73,069 |
Currency translation | 949 |
Balance, end of period | 74,018 |
Medical Segments | Operating Segments | |
Goodwill [Line Items] | |
Balance, beginning of period | 46,705 |
Currency translation | 232 |
Balance, end of period | $ 46,937 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Summary of Other Intangible Assets and Accumulated Amortization Balances (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 186,426 | $ 183,846 |
Accumulated Amortization | (114,375) | (109,913) |
Net Carrying Value | 72,051 | 73,933 |
Net Carrying Value | 72,051 | 73,933 |
Customer Relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 113,909 | 112,286 |
Accumulated Amortization | (68,795) | (65,748) |
Net Carrying Value | 45,114 | 46,538 |
Technology | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 45,340 | 44,745 |
Accumulated Amortization | (26,696) | (25,709) |
Net Carrying Value | 18,644 | 19,036 |
Product development costs | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 19,051 | 18,774 |
Accumulated Amortization | (18,884) | (18,456) |
Net Carrying Value | 167 | 318 |
Software Development | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,007 | 1,007 |
Net Carrying Value | 1,007 | 1,007 |
Tradenames | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 7,119 | 7,034 |
Net Carrying Value | $ 7,119 | $ 7,034 |
Summary of Company's Debt (Deta
Summary of Company's Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 234,554 | $ 235,096 |
Current maturities | (1,996) | (2,443) |
Long-term debt, less current maturities | $ 232,558 | $ 232,653 |
Revolving Credit Facility (U.S. Dollar denominations) | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.28% | 5.80% |
Total debt | $ 232,000 | $ 232,000 |
Other Loans | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,555 | $ 2,011 |
Other Loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.90% | 3.89% |
Other Loans | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.21% | 5.21% |
Finance Leases | ||
Debt Instrument [Line Items] | ||
Total debt | $ 999 | $ 1,085 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 10, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Maximum percentage of stock of non US subsidiaries pledge to secure obligation | 66% | ||
Second Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Debt issuance cost | $ 1,417,000 | ||
Remaining borrowing capacity | $ 266,444,000 | ||
Second Amended and Restated Credit Agreement | Federal Funds Rate | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.50% | ||
Second Amended and Restated Credit Agreement | SOFR Rate | |||
Debt Instrument [Line Items] | |||
Interest rate | 1% | ||
Base Rate Loans | Second Amended and Restated Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.125% | ||
Base Rate Loans | Second Amended and Restated Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.125% | ||
Term SOFR Rate Loans | Second Amended and Restated Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.125% | ||
Term SOFR Rate Loans | Second Amended and Restated Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.125% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity increase subject to specified conditions | 200,000,000 | ||
Revolving Credit Facility | Letters of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, outstanding amount | $ 0 | $ 0 | |
Revolving Credit Facility | Swing Line Loans | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 50,000,000 | ||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 500,000,000 | ||
Debt maturity date | Jun. 10, 2027 | ||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage payable on average daily unused amounts | 0.175% | ||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage payable on average daily unused amounts | 0.30% | ||
Standby Letters of Credit | Second Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 15,000,000 |
Principal Maturities of Debt (D
Principal Maturities of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt maturing in 2023 | $ 1,892 | |
Debt maturing in 2024 | 440 | |
Debt maturing in 2025 | 152 | |
Debt maturing in 2026 | 70 | |
Debt maturing in 2027 | 232,000 | |
Total debt | 234,554 | $ 235,096 |
US and Euro Denominated Revolving Note | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2027 | 232,000 | |
Total debt | 232,000 | |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2023 | 1,892 | |
Debt maturing in 2024 | 440 | |
Debt maturing in 2025 | 152 | |
Debt maturing in 2026 | 70 | |
Total debt | $ 2,554 |
Commitments and Contingencies -
Commitments and Contingencies - Reconciliation of Changes in Accrued Warranty Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loss Contingency [Abstract] | ||
Balance at the beginning of the period | $ 2,380 | $ 1,916 |
Warranty claims paid | (559) | (334) |
Warranty expense for products shipped during the current period | 988 | 354 |
Adjustments to warranty estimates from prior periods | (6) | (152) |
Adjustments due to currency translation | 18 | (12) |
Balance at the end of the period | $ 2,821 | $ 1,772 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - Semiconductor Chips $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | |
Commitments | $ 40,593 |
Minimum | |
Loss Contingencies [Line Items] | |
Commitment period | 12 months |
Maximum | |
Loss Contingencies [Line Items] | |
Commitment period | 24 months |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 7,963 | $ 11,747 |
Basic weighted average shares of Common Stock outstanding | 33,181,828 | 33,034,872 |
Dilutive effect of stock options, restricted stock awards and restricted stock units | 204,306 | 341,892 |
Diluted weighted average shares of Common Stock outstanding | 33,386,134 | 33,376,764 |
Basic earnings per share | $ 0.24 | $ 0.36 |
Diluted earnings per share | $ 0.24 | $ 0.35 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Shares excluded from the Company’s diluted earnings | 0 | 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Hedge Ineffectiveness Incurred | $ 0 | $ 0 |
Floating to Fixed interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Value | $ 100,000,000 | |
Maturity date | Jul. 31, 2025 |
Information Related to Recurrin
Information Related to Recurring Fair Value Measurement of Derivative Instruments in Our Consolidated Condensed Balance Sheet (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Foreign Currency Derivatives | Derivatives Designated as Cash Flow Hedges | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | $ 69,108 | $ 40,063 |
Net Asset/ (Liabilities) | 6,474 | 3,791 |
Foreign Currency Derivatives | Other Current Assets | Derivatives Designated as Cash Flow Hedges | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 6,474 | 3,791 |
Interest Rate Contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 100,000 | 100,000 |
Net Asset/ (Liabilities) | 2,073 | 2,772 |
Interest Rate Contracts | Other Current Assets | Derivatives Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 2,073 | $ 2,772 |
Information Related to Effect o
Information Related to Effect of Derivative Instruments on Our Consolidated Condensed Statements of Income and Consolidated Condensed Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total foreign currency derivatives | $ 3,742 | $ 763 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax | Other Comprehensive Income (Loss), Net of Tax |
Commodity Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total commodity derivatives | $ 13 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax | Other Comprehensive Income (Loss), Net of Tax |
Interest Rate Contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total interest rate derivatives | $ (699) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net |
Other comprehensive (loss) income | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total foreign currency derivatives | $ 2,683 | $ 610 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax | Other Comprehensive Income (Loss), Net of Tax |
Other comprehensive (loss) income | Commodity Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total commodity derivatives | $ (6) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax | Other Comprehensive Income (Loss), Net of Tax |
Cost of sales – income | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total foreign currency derivatives | $ 1,059 | $ 153 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Cost of sales – income | Commodity Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total commodity derivatives | $ 19 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Interest income, net | Interest Rate Contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total interest rate derivatives | $ (699) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net |
Financial Instruments - Summary
Financial Instruments - Summary of Receivables Factored and Availability Under Receivables Factoring Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Receivables factored and outstanding | $ 21,034 | $ 19,108 |
Amount available under the credit limit | 3,321 | 5,034 |
Collective factoring limit | $ 24,355 | $ 24,142 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Trade Receivables Sold and Factoring Fees Incurred (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Trade receivables sold | $ 38,540 |
Factoring fees incurred | $ 161 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Recurring Basis | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets, fair value | $ 0 | $ 0 |
Financial liabilities, fair value | 0 | 0 |
Fair Value, Nonrecurring Basis | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets, fair value | 0 | 0 |
Financial liabilities, fair value | $ 0 | $ 0 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||
Shares repurchased | 9,997 | |
Average cost per share | $ 59.27 | |
Remaining authorized repurchase amount | $ 120,003 | |
2020 Stock Repurchase Program | ||
Class Of Stock [Line Items] | ||
Stock repurchase program period | 3 years | |
Stock repurchase program expiration date | Dec. 15, 2023 | |
Maximum | 2020 Stock Repurchase Program | ||
Class Of Stock [Line Items] | ||
Stock repurchase program, authorized to repurchase amount | 150,000 |
Schedule of Reclassification Ad
Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | $ (46,489) | $ (36,922) | |||
Other comprehensive (loss) income before reclassifications | 11,933 | (8,378) | |||
Income tax effect of other comprehensive income (loss) before reclassifications | (751) | (322) | |||
Amounts reclassified from accumulated other comprehensive income (loss) into net income | (1,053) | (137) | |||
Income taxes reclassified into net income | 259 | 31 | |||
Other comprehensive income (loss), net of tax | 10,388 | (8,806) | |||
Ending Balance | (36,101) | (45,728) | |||
Defined Benefit Pension Plans | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (1,067) | (2,893) | |||
Amounts reclassified from accumulated other comprehensive income (loss) into net income | 6 | 35 | |||
Income taxes reclassified into net income | (2) | (6) | |||
Other comprehensive income (loss), net of tax | 4 | 29 | |||
Ending Balance | (1,063) | (2,864) | |||
Foreign Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (48,269) | (34,188) | |||
Other comprehensive (loss) income before reclassifications | 8,191 | (9,154) | |||
Income tax effect of other comprehensive income (loss) before reclassifications | 64 | (140) | |||
Other comprehensive income (loss), net of tax | 8,255 | (9,294) | |||
Ending Balance | (40,014) | (43,482) | |||
Foreign Currency Hedge Derivatives | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 2,847 | 154 | |||
Other comprehensive (loss) income before reclassifications | 3,742 | 763 | |||
Income tax effect of other comprehensive income (loss) before reclassifications | (815) | (179) | |||
Amounts reclassified from accumulated other comprehensive income (loss) into net income | (1,059) | [1] | (153) | [2] | |
Income taxes reclassified into net income | 261 | 33 | |||
Other comprehensive income (loss), net of tax | 2,129 | 464 | |||
Ending Balance | $ 4,976 | 618 | |||
Commodity Hedge Derivatives | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 5 | ||||
Other comprehensive (loss) income before reclassifications | 13 | ||||
Income tax effect of other comprehensive income (loss) before reclassifications | (3) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) into net income | [2] | (19) | |||
Income taxes reclassified into net income | 4 | ||||
Other comprehensive income (loss), net of tax | $ (5) | ||||
[1] The amounts reclassified from accumulated other comprehensive loss were included in cost of sales. The amounts reclassified from accumulated other comprehensive loss were included in cost of sales. |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes and Corresponding Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3,728 | $ 4,295 |
Earnings before income tax | $ 11,691 | $ 16,042 |
Effective tax rate | 31.90% | 26.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3,728 | $ 4,295 |
Earnings before income tax | $ 11,691 | $ 16,042 |
Effective tax rate | 31.90% | 26.80% |
Effect of the settlement and closure of a multi-year state audit | $ 454 | |
Adjusted for the audit impacts, effective rate | 28% | |
U.S. federal statutory rate | 21% | 21% |
Segment Reporting - Segment Inf
Segment Reporting - Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Product revenues | $ 363,625 | $ 267,657 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 13,583 | $ 9,577 |
Operating income (loss) | 17,674 | 14,190 |
Automotive Segments | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 352,692 | $ 257,864 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 12,290 | $ 8,667 |
Operating income (loss) | 38,379 | 31,275 |
Medical Segments | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 10,933 | $ 9,793 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 978 | $ 604 |
Operating income (loss) | $ (493) | $ (851) |
Corporate Segments | ||
Segment Reporting Information [Line Items] | ||
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 265 | $ 306 |
Operating income (loss) | $ (20,212) | $ (16,234) |
Segment Reporting - Segment I_2
Segment Reporting - Segment Information About Reported Segment Product Revenues by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 363,625 | $ 267,657 | |
Automotive Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 352,692 | 257,864 | |
Automotive Segments | Climate Control Seat | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 114,753 | 102,734 | |
Automotive Segments | Seat Heaters | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 75,636 | 68,896 | |
Automotive Segments | Lumbar and Massage Comfort Solutions | |||
Segment Reporting Information [Line Items] | |||
Product revenues | [1] | 38,738 | |
Automotive Segments | Steering Wheel Heaters | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 36,347 | 28,736 | |
Automotive Segments | Automotive Cables | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 20,220 | 22,045 | |
Automotive Segments | Battery Performance Solutions | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 20,309 | 17,613 | |
Automotive Segments | Electronics | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 10,970 | 10,828 | |
Automotive Segments | Valve System | |||
Segment Reporting Information [Line Items] | |||
Product revenues | [1] | 26,994 | |
Automotive Segments | Other Automotive | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 8,725 | 7,012 | |
Industrial Segments | Medical Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | [2] | $ 10,933 | $ 9,793 |
[1] Represents product revenues from Alfmeier (acquired on August 1, 2022) - (see Note 2) Includes product revenues of $ 1,279 from Dacheng (acquired on July 13, 2022) - (see Note 2) |
Segment Reporting - Segment I_3
Segment Reporting - Segment Information About Reported Segment Product Revenues by Product Category (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 13, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Product revenues | $ 363,625 | $ 267,657 | |
Automotive Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 352,692 | 257,864 | |
Medical Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 10,933 | $ 9,793 | |
Medical Segments | Dacheng | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 1,279 |
Segment Reporting - Product Rev
Segment Reporting - Product Revenues Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Product revenues | $ 363,625 | $ 267,657 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ProductMember | us-gaap:ProductMember |
United States | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 141,452 | $ 104,122 |
China | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 46,654 | 38,353 |
South Korea | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 28,738 | 21,175 |
Germany | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 26,512 | 19,786 |
Czech Republic | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 17,650 | 10,808 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 15,222 | 11,816 |
Romania | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 12,533 | 12,755 |
Slovakia | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 11,596 | 8,536 |
Finland | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 10,133 | 7,893 |
Mexico | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 9,094 | 4,547 |
Other | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 44,041 | 27,866 |
Non U.S. | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 222,173 | $ 163,535 |