Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
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 | 31,644,934 | |
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, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 125,107 | $ 149,673 |
Accounts receivable, net | 265,149 | 253,579 |
Inventory: | ||
Raw materials | 134,463 | 126,013 |
Work in process | 18,611 | 15,704 |
Finished goods | 66,510 | 64,175 |
Inventory, net | 219,584 | 205,892 |
Other current assets | 90,592 | 78,420 |
Total current assets | 700,432 | 687,564 |
Property and equipment, net | 241,798 | 245,234 |
Goodwill | 102,194 | 104,073 |
Other intangible assets, net | 63,165 | 66,482 |
Operating lease right-of-use assets | 34,631 | 27,358 |
Deferred income tax assets | 81,395 | 81,930 |
Other non-current assets | 29,095 | 21,730 |
Total assets | 1,252,710 | 1,234,371 |
Current Liabilities: | ||
Accounts payable | 226,190 | 215,827 |
Current lease liabilities | 7,642 | 7,700 |
Current maturities of long-term debt | 324 | 621 |
Other current liabilities | 98,939 | 100,805 |
Total current liabilities | 333,095 | 324,953 |
Long-term debt, less current maturities | 222,173 | 222,217 |
Non-current lease liabilities | 23,126 | 16,175 |
Pension benefit obligation | 2,768 | 3,209 |
Other non-current liabilities | 24,489 | 23,095 |
Total liabilities | 605,651 | 589,649 |
Common Stock: | ||
No par value; 55,000,000 shares authorized 31,629,224 and 31,542,001 issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 53,269 | 50,503 |
Accumulated other comprehensive loss | (45,195) | (30,160) |
Accumulated earnings | 638,985 | 624,379 |
Total shareholders’ equity | 647,059 | 644,722 |
Total liabilities and shareholders’ equity | $ 1,252,710 | $ 1,234,371 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value | ||
Common Stock, shares authorized | 55,000,000 | 55,000,000 |
Common Stock, shares issued | 31,629,224 | 31,542,001 |
Common Stock, shares outstanding | 31,629,224 | 31,542,001 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Product revenues | $ 356,015 | $ 363,625 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of sales | $ 267,262 | $ 282,495 |
Gross margin | 88,753 | 81,130 |
Operating expenses: | ||
Net research and development expenses | 22,745 | 25,145 |
Selling, general and administrative expenses | 40,721 | 37,042 |
Restructuring expenses | 7,238 | 1,269 |
Total operating expenses | 70,704 | 63,456 |
Operating income | 18,049 | 17,674 |
Interest expense, net | (3,244) | (4,144) |
Foreign currency gain (loss) | 2,549 | (2,069) |
Other income | 973 | 230 |
Earnings before income tax | 18,327 | 11,691 |
Income tax expense | 3,542 | 3,728 |
Net income | $ 14,785 | $ 7,963 |
Basic earnings per share | $ 0.47 | $ 0.24 |
Diluted earnings per share | $ 0.47 | $ 0.24 |
Weighted average number of shares – basic | 31,543,784 | 33,181,828 |
Weighted average number of shares – diluted | 31,691,331 | 33,386,134 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14,785 | $ 7,963 |
Other comprehensive (loss) income: | ||
Pension benefit obligations | 14 | 4 |
Foreign currency translation adjustments | (14,382) | 8,255 |
Unrealized (loss) gain on foreign currency derivative securities, net of tax | (667) | 2,129 |
Other comprehensive income (loss) , net of tax | (15,035) | 10,388 |
Comprehensive (loss) income | $ (250) | $ 18,351 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities: | ||
Net income | $ 14,785 | $ 7,963 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 13,818 | 13,583 |
Deferred income taxes | (184) | (1,786) |
Stock based compensation | 3,789 | 2,023 |
Loss on disposition of property and equipment | 69 | 16 |
Provisions for inventory | 296 | 1,704 |
Other | (842) | (44) |
Changes in assets and liabilities: | ||
Accounts receivable, net | (14,856) | (8,237) |
Inventory | (16,648) | (1,137) |
Other assets | (29,226) | (6,417) |
Accounts payable | 12,337 | 24,289 |
Other liabilities | 6,340 | (6,848) |
Net cash (used in) provided by operating activities | (10,322) | 25,109 |
Investing Activities: | ||
Purchases of property and equipment | (11,320) | (6,294) |
Proceeds from the sale of property and equipment | 22 | 17 |
Proceeds from deferred purchase price of factored receivables | 2,732 | 3,728 |
Cost of technology investments | (265) | |
Net cash used in investing activities | (8,831) | (2,549) |
Financing Activities: | ||
Borrowings on debt | 10,000 | |
Repayments of debt | (10,324) | (564) |
Proceeds from the exercise of Common Stock options | 812 | 263 |
Taxes withheld and paid on employees' share-based payment awards | (2,022) | (2,667) |
Cash paid for the repurchase of Common Stock | (9,997) | |
Net cash used in financing activities | (1,534) | (12,965) |
Foreign currency effect | (3,879) | 3,144 |
Net (decrease) increase in cash and cash equivalents | (24,566) | 12,739 |
Cash and cash equivalents at beginning of period | 149,673 | 153,891 |
Cash and cash equivalents at end of period | 125,107 | 166,630 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | 4,900 | 5,536 |
Cash paid for interest | 3,310 | 3,235 |
Non-Cash Investing Activities: | ||
Period-end balance of accounts payable for property and equipment | 8,643 | 2,370 |
Deferred purchase price of receivables factored in the period | $ 4,447 | $ 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, 2022 | $ 672,273 | $ 122,658 | $ 5,447 | $ (46,489) | $ 590,657 |
Beginning Balance (in shares) at Dec. 31, 2022 | 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 | 33,127,000 | ||||
Beginning Balance at Dec. 31, 2023 | $ 644,722 | $ 50,503 | (30,160) | 624,379 | |
Beginning Balance (in shares) at Dec. 31, 2023 | 31,542,001 | 31,542,000 | |||
Net income | $ 14,785 | 14,785 | |||
Other comprehensive income (loss) | (15,035) | (15,035) | |||
Stock compensation, net | 2,587 | $ 2,766 | (179) | ||
Stock compensation, net, shares | 87,000 | ||||
Ending Balance at Mar. 31, 2024 | $ 647,059 | $ 53,269 | $ (45,195) | $ 638,985 | |
Ending Balance (in shares) at Mar. 31, 2024 | 31,629,224 | 31,629,000 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Title | directors or Section 16 officers |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Overview
Overview | 3 Months Ended |
Mar. 31, 2024 | |
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 industry and a leader in medical patient temperature management. 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, fuel management valves and other valves for brake and engine 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 U.S., 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. During the first half of 2023, the Company launched Fit-for-Growth 2.0 to execute as part of our long-term growth strategy. Fit-for-Growth 2.0 is expected to deliver significant cost reductions through sourcing excellence, value engineering, manufacturing productivity, manufacturing footprint optimization, product profitability and cost synergies from the 2022 acquisition of Alfmeier Präzision SE. Additionally, the program is intended to drive operating expense efficiency to leverage scale. 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, 2023. The operating results for interim periods are not necessarily indicative of results that may be expected for other interim periods 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 third-party 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. All amounts in these notes to the consolidated condensed financial statements are presented in thousands, except share and per share data. 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 affiliates 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 affiliates 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. In the first quarter of 2024, we recognized an increase in the fair value of our investment in Carrar of $ 1,097 in Other income in the consolidated condensed statements of income due to observable transactions. The Carrar investment was $ 3,897 and $ 2,800 as of March 31, 2024 and December 31, 2023 , respectively, 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, 2024. 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 $ 10,945 and $ 7,305 as of March 31, 2024 and December 31, 2023 , respectively. These amounts are recorded in Other non-current assets in the consolidated condensed balance sheets and are being amortized into Product revenues in the consolidated condensed statements of income over the expected production life of the applicable program. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | Note 2 – New Accounting Pronouncements Recently Adopted Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. New ASUs effective in 2023 were assessed and determined to be either not applicable or not expected to have a significant impact on the Company's consolidated condensed financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". ASU 2023-07 requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are included within each reported measure of segment profit or loss and regularly reviewed by the chief operating decision maker ("CODM"), the title and position of the CODM, clarification regarding the CODM's use of multiple measures of a segment's profit or loss in assessing segment performance (this must include a measure that is consistent with the measurement principles under U.S. GAAP, but may also include additional measures of a segment's profit or loss), and a description of the composition of amounts within an "Other" segment line item. Further, ASU 2023-07 requires that all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be provided in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 should be adopted retrospectively to all periods presented in the financial statements and early adoption is permitted. We are currently in the process of determining the impact the implementation of ASU 2023-07 will have on the Company’s financial statement disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". ASU 2023-09 enhances income tax disclosures to further disaggregate the effective tax rate reconciliation and income taxes paid. This update is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 should be adopted prospectively, but retrospective application is permitted. Further, early adoption is permitted. We are currently in the process of determining the impact the implementation of ASU 2023-09 will have on the Company’s financial statement disclosures. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 3 – Restructur ing The Company continuously monitors market developments, industry trends and changing customer needs and in response, has taken and may continue to 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. 2023 Manufacturing Footprint Rationalization On September 19, 2023, the Company committed to a restructuring plan (“2023 Plan”) to improve the Company’s manufacturing productivity and rationalize its footprint. Under this 2023 Plan, the Company is in the process of relocating certain existing manufacturing and related activities in its Greenville, South Carolina facility to a new facility in Monterrey, Mexico. The Company expects to incur total costs of between $ 12,000 and $ 16,000 , of which between $ 11,000 and $ 15,000 are expected to be cash expenditures. The total expected costs include employee severance, retention and termination costs of between $ 2,000 and $ 4,000 , capital expenditures of between $ 7,000 and $ 8,000 and non-cash expenses for accelerated depreciation and impairment of fixed assets of approximately $ 1,000 . The Company also expects to incur other transition costs including recruiting, relocation, and machinery and equipment move and set up costs of between $ 2,000 and $ 3,000 . The actions under this 2023 Plan are expected to be substantially completed by the end of 2025. The actual timing, costs and savings of the 2023 Plan may differ materially from the Company’s current expectations and estimates. During the three months ended March 31, 2024 , the Company recognized restructuring expense of $ 747 for employee separation costs and $ 293 for other costs. The Company has recorded $ 1,737 of restructuring expenses since the inception of this program as of March 31, 2024. Other Restructuring Actions The Company has undertaken several discrete restructuring actions in an effort to optimize its cost structure. During the three months ended March 31, 2024 , the Company’s Automotive segment recognized $ 4,219 for employee separation costs related to structural cost reductions impacting the Company’s global salaried workforce. These cost reductions are connected to Fit-for-Growth 2.0. During the three months ended March 31, 2024 , the Company’s Automotive segment recognized $ 1,805 for employee separation costs related to the relocation of electronic component manufacturing in Germany to a manufacturing facility in China. During the three months ended March 31, 2024 , the Company recognized $ 174 of other costs related to all other restructuring actions. These other restructuring actions are focused on the reduction of global overhead costs. The Company expects to incur less than $ 1,000 of additional restructuring costs for the other restructuring actions that have been approved as of March 31, 2024. During the three months ended March 31, 2023 , the Company recognized $ 1,256 for employee separation costs and $ 164 for other costs. These restructuring expenses were primarily associated with restructuring actions focused on the rotation of our manufacturing footprint to best cost locations and the reduction of global overhead costs. Restructuring Expenses By Reporting Segment The following table summarizes restructuring expense for the three months ended March 31, 2024 and 2023 by reporting segment: Three Months Ended March 31, 2024 2023 Automotive $ 7,114 $ 1,074 Medical 20 — Corporate 104 195 Total $ 7,238 $ 1,269 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, 2024: Employee Separation Costs Other Related Costs Total Balance at December 31, 2023 $ 2,150 $ — $ 2,150 Additions, charged to restructuring expenses 6,771 467 7,238 Cash payments ( 1,762 ) ( 380 ) ( 2,142 ) Non-cash utilization — ( 87 ) ( 87 ) Currency translation ( 19 ) — ( 19 ) Balance at March 31, 2024 $ 7,140 $ — $ 7,140 |
Details of Certain Balance Shee
Details of Certain Balance Sheet Components | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Components [Abstract] | |
Details of Certain Balance Sheet Components | Note 4 – Details of Certain Balance Sheet Components March 31, 2024 December 31, 2023 Other current assets: Billable tooling $ 17,939 $ 16,877 Income tax and other tax receivable 17,847 16,017 Notes receivable 17,504 18,226 Prepaid expenses 11,391 7,889 Short-term derivative financial instruments 11,479 10,717 Receivables due from factor 6,504 4,422 Other 7,928 4,272 Total other current assets $ 90,592 $ 78,420 Other current liabilities: Accrued employee liabilities $ 31,217 $ 43,176 Liabilities from discounts and rebates 23,528 22,916 Income tax and other taxes payable 23,055 19,327 Restructuring 7,140 2,150 Accrued warranty 5,068 3,945 Other 8,931 9,291 Total other current liabilities $ 98,939 $ 100,805 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 was as follows: Automotive Medical Total Balance as of December 31, 2023 $ 76,696 $ 27,377 $ 104,073 Currency translation and other ( 1,543 ) ( 336 ) ( 1,879 ) Balance as of March 31, 2024 $ 75,153 $ 27,041 $ 102,194 The Company’s cumulative goodwill impairment expense since inception was $ 19,509 as of March 31, 2024 and December 31, 2023, which includes Gentherm’s goodwill impairment of the Medical reporting unit in 2023. Other Intangible Assets Other intangible assets and accumulated amortization balances as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Gross Accumulated Accumulated Net Carrying Gross Accumulated Net Carrying Definite-lived: Customer relationships $ 112,931 $ ( 72,958 ) $ — $ 39,973 $ 115,465 $ ( 73,737 ) $ 41,728 Technology 44,871 ( 29,268 ) — 15,603 45,861 ( 29,317 ) 16,544 Product development costs 18,868 ( 18,705 ) — 163 19,434 ( 19,270 ) 164 Software development 1,007 ( 50 ) — 957 1,007 — 1,007 Indefinite-lived: Tradenames 6,999 — ( 530 ) 6,469 7,039 — 7,039 Total $ 184,676 $ ( 120,981 ) $ ( 530 ) $ 63,165 $ 188,806 $ ( 122,324 ) $ 66,482 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 would 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. During the three months ended March 31, 2024 , we recorded a non-cash impairment charge of $ 530 for one of our tradenames within the Medical segment. We are not presently aware of any other events or circumstances that would require us to revise the carrying value of our assets or liabilities as of March 31, 2024 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 – Debt The following table summarizes the Company’s debt as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Interest Principal Interest Principal Credit Agreement: Revolving Credit Facility (U.S. Dollar denominations) 6.80 % $ 222,000 6.58 % $ 222,000 Other loans — — 3.90 % 233 Finance leases 3.51 % 497 3.53 % 605 Total debt 222,497 222,838 Current maturities ( 324 ) ( 621 ) Long-term debt, less current maturities $ 222,173 $ 222,217 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 l etters of credit outstanding will reduce the amount available under the Second Amended and Restated Credit Agreement. The Company had no outstanding l etters of credit issued as of March 31, 2024 and December 31, 2023. 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, 2024, the Company was in compliance, in all material respects, 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 Chicago Mercantile Exchange 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 Leverage Ratio, $ 278,000 remained available as of March 31, 2024 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 $ 1,520 , which have been capitalized and are being amortized into Interest expense, net over the term of the Revolving Credit Facility. The scheduled principal maturities of our debt as of March 31, 2024 were as follows: U.S. Other Debt Total 2024 $ — $ 324 $ 324 2025 — 148 148 2026 — 68 68 2027 222,000 — 222,000 2028 — — — 2029 — — — Total $ 222,000 $ 540 $ 222,540 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies Legal and other contingencies The Company is subject to various legal actions and claims in the ordinary course of its business, which may include 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 outstanding as of March 31, 2024 will not have a material adverse effect on its results of operations or financial position. Product liability and warranty reserves are recorded separately from legal reserves. Product Liability and Warranty Matters Our products subject us to warranty claims and, from time to time product liability claims, based on the Company’s products alleged failure to perform as expected or resulting in alleged bodily injury or property damage. 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. On February 14, 2024, the National Highway Traffic Safety Administration announced that Volkswagen Group of America, Inc. (“VW”) is recalling 261,257 vehicles from model years 2015-2020 to remedy an alleged problem with a suction jet pump seal inside the fuel tank system. VW informed Gentherm of its plan to conduct the recall on April 3, 2024. The suction jet pump is a product originally designed and manufactured by Alfmeier Präzision SE (“Alfmeier”), the business Gentherm acquired in August 2022. The Company has not accepted any financial responsibility for the recall and intends to provide replacement parts for the recall at commercial pricing paid by VW. The Company intends to pursue discussions with VW to advance its position and resolve this matter. No litigation has been threatened or filed as of the date of this report. If the Company is obligated to indemnify VW for the direct and indirect costs associated with the recall, such costs could be material. The Company has insurance policies that generally include coverage of the costs of a recall, although the Company’s costs related to manufacturing of replacement parts are generally not covered. In addition, the Company’s purchase agreement of Alfmeier includes indemnification provisions under which the Company believes it would have a claim against the sellers. Given the uncertainty that exists concerning the resolution of this matter, as of the date of this report, the Company cannot reasonably estimate the amount and timing of possible costs that may be incurred by the Company. The following is a reconciliation of the changes in accrued warranty costs: Three Months Ended March 31, 2024 2023 Balance at the beginning of the period $ 3,945 $ 2,380 Warranty claims paid ( 747 ) ( 559 ) Warranty expense for products shipped during the current period 806 988 Adjustments to warranty estimates from prior periods (a) 1,123 ( 6 ) Adjustments due to currency translation ( 59 ) 18 Balance at the end of the period $ 5,068 $ 2,821 (a) Change in estimate related to a claim received during the quarter ended March 31, 2024. |
Supplier Finance Program
Supplier Finance Program | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Note 8 – Supplier Finance Program The Company is party to a supplier finance program with a third-party service provider (“Service Provider”), pursuant to which the Company has offered the opportunity to participate to certain of the Company's suppliers. Although the program generally provides suppliers with a lower cost of capital than they could obtain individually due to the Company’s negotiated terms, the Company has no economic interest in a supplier’s participation and the Company has not pledged any assets to the Service Provider under this program. Under this program, the Company and supplier initially agree on the contractual payment terms for the goods to be procured for the Company in the ordinary course. A supplier’s participation in this program is voluntary and does not impact its contractual payment terms with the Company, including the payment amount and timing of when payments are due. A participating supplier has the sole discretion to determine whether to sell one or more invoices, if any, to the Service Provider in exchange for payment by the Service Provider on an earlier date than provided for in the contract with the Company. Amounts due to participating suppliers are included in Accounts payable in the consolidated condensed balance sheets until the Company makes payment to the Service Provider, even though the payment of such amount will be made to the supplier at an earlier date by the Service Provider. As of March 31, 2024 , the Company had outstanding payment obligations to participating suppliers of $ 9,473 confirmed under the program. Payments of the Company’s obligations to the Service Provider are reported as operating cash flows in the consolidated condensed statements of cash flows. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 – Earnings Per Share Basic earnings per share are computed by dividing net income by the weighted average number of shares of the Company’s Common Stock, no par value (“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, 2024 2023 Net income $ 14,785 $ 7,963 Basic weighted average shares of Common Stock outstanding 31,543,784 33,181,828 Dilutive effect of stock options, restricted stock awards and restricted stock units 147,547 204,306 Diluted weighted average shares of Common Stock outstanding 31,691,331 33,386,134 Basic earnings per share $ 0.47 $ 0.24 Diluted earnings per share $ 0.47 $ 0.24 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 10 – 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 instruments, if any, to Cost of sales in the consolidated condensed statements of income. Cash flows associated with derivatives are reported in Net cash (used in) provided by operating activities in the 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 that is an undesignated hedge of the Company’s exposure to interest payment fluctuations on a portion of the Revolving Credit Facility borrowings. The periodic changes in fair value is recognized in Interest expense, net. Information related to the recurring fair value measurement of derivative instruments in the consolidated condensed balance sheet as of March 31, 2024 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Assets/ (Liabilities) Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 74,122 Other current assets $ 9,113 Other current liabilities $ — $ 9,113 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,366 Other current liabilities $ — $ 2,366 Information related to the recurring fair value measurement of derivative instruments in the consolidated condensed balance sheet as of December 31, 2023 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Assets/ (Liabilities) Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 101,109 Other current assets $ 8,655 Other current liabilities $ — $ 8,655 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,062 Other current liabilities $ — $ 2,062 Information relating to the effect of derivative instruments on the consolidated condensed statements of income and the consolidated condensed statements of comprehensive (loss) income is as follows: Three Months Ended March 31, Location (Income/(Loss)) 2024 2023 Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Cost of sales – income $ 3,376 $ 1,059 Other comprehensive income (loss) ( 853 ) 2,683 Total foreign currency derivatives $ 2,523 $ 3,742 Derivatives Not Designated as Hedging Instruments Interest rate contracts Interest expense, net $ 304 $ ( 699 ) Total interest rate derivatives $ 304 $ ( 699 ) The Company did no t incur any hedge ineffectiveness during the three months ended March 31, 2024 and 2023. 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 (used in) provided by operating activities and the cash proceeds received on the deferred purchase price receivables are included in Net cash used in 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, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Receivables factored and outstanding $ 16,510 $ 18,532 Amount available under the credit limit 7,425 5,891 Collective factoring limit $ 23,935 $ 24,423 Trade receivables sold and factoring fees incurred during the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 Trade receivables sold $ 30,102 $ 38,540 Factoring fees incurred 179 161 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 – 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 10) and pension plan assets, the Company had no material financial assets and liabilities that were carried at fair value at March 31, 2024 and December 31, 2023. 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. During the year ended December 31, 2023, the Company utilized a third-party to assist in the Level 3 fair value estimates of other intangible assets for acquisitions and goodwill of the Medical reporting unit. 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, 2024, and December 31, 2023 , 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, 2024, and December 31, 2023 , 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, 2024 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 12 – 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 was authorized to repurchase up to $ 150,000 of its issued and outstanding Common Stock over a three-year period, expiring December 15, 2023 . On November 1, 2023, the Board of Directors extended the maturity date of the program from December 15, 2023 to June 30, 2024 . 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, 2024, the Company did not make any repurchases under the 2020 Stock Repurchase Program . The 2020 Stock Repurchase Program had $ 37,491 of repurchase authorization remaining as of March 31, 2024. On November 1, 2023, following the above-noted extension, the Company entered into a Confirmation of Issuer Forward Repurchase Transaction agreement (the “ASR Agreement”) with Bank of America, N.A. (“Bank of America”) that provides for the Company to purchase shares of Common Stock in an aggregate amount of $ 60,000 (the “ASR Repurchase Amount”) under the 2020 Stock Repurchase Program. Under the terms of the ASR Agreement, on November 2, 2023, the Company paid $ 60,000 to Bank of America for an initial purchase of approximately 1.22 million shares of Common Stock, representing 80 % of ASR Repurchase Amount. The final settlement date is scheduled to occur in the second quarter of 2024. As of the final settlement date, Bank of America may be required to deliver additional shares of Common Stock to the Company or the Company may be required to deliver shares of Common Stock to Bank America, such that the Company’s repurchase of Common Stock under the ASR Agreement in aggregate will equal the ASR Repurchase Amount (based on the average of the daily volume-weighted average prices of the Common Stock during the term of the ASR Agreement, less a specified discount). There is no cash requirement as of the final settlement date. The ASR Agreement contains provisions customary for agreements of this type, including the mechanisms to determine the number of shares of Common Stock that will be delivered at settlement, the required timing of delivery of the shares of Common Stock, the circumstances under which Bank of America is permitted to make adjustments to the transaction terms, the circumstances under which the ASR Agreement may be accelerated, extended or terminated early by Bank of America and specified representations and warranties of each party to the other party. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Note 13 – Reclassifications Out of Accumulated Other Comprehensive Loss Reclassification adjustments and other activities impacting Accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023 were as follows: Defined Foreign Foreign Total Balance at December 31, 2023 $ ( 1,011 ) $ ( 34,830 ) $ 5,681 $ ( 30,160 ) Other comprehensive (loss) income before reclassifications — ( 14,275 ) 3,496 ( 10,779 ) Income tax effect of other comprehensive (loss) income before reclassifications — ( 107 ) ( 762 ) ( 869 ) Amounts reclassified from accumulated other comprehensive loss into net income 21 — ( 4,349 ) a ( 4,328 ) Income taxes reclassified into net income ( 7 ) — 948 941 Net current period other comprehensive income (loss) 14 ( 14,382 ) ( 667 ) ( 15,035 ) Balance at March 31, 2024 $ ( 997 ) $ ( 49,212 ) $ 5,014 $ ( 45,195 ) (a) The amounts reclassified from Accumulated other comprehensi ve loss w ere included in Cost of sales in the consolidated condensed statements of income. Defined Foreign Foreign 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 loss into net income 6 — ( 1,059 ) 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 comprehe nsive loss wer e included in Cost of sales in the consolidated condensed statements of income. The Company expects that substantially all of the existing gains and losses related to foreign currency derivatives reported in Accumulated other comprehensive loss as of March 31, 2024 to be reclassified into earnings during the next twelve months. See Note 10 for additional information about derivative financial instruments and the effects from reclassification to Net income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 – 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, 2024 and 2023, is shown below: Three Months Ended March 31, 2024 2023 Income tax expense $ 3,542 $ 3,728 Earnings before income tax $ 18,327 $ 11,691 Effective tax rate 19.3 % 31.9 % Income tax expense was $ 3,542 for the three months ended March 31, 2024 on earnings before income tax of $ 18,327 , representing an effective tax rate of 19.3 % . The effective tax rate differed from the U.S. Federal statutory rate of 21.0 % primarily due to the impact of a one-time benefit related to the Alfmeier acquisition, partially offset by income taxes on foreign earnings taxed at rates varying from the U.S. Federal statutory rate and the unfavorable impact of the global intangible low-tax income (“GILTI”). 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. Federal statutory rate, the unfavorable impact of the 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. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 15 – 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, battery performance solutions, lumbar and massage comfort solutions, fuel management valves and other valves for brake and engine systems, 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 the three months ended March 31, 2024 and 2023. Three Months Ended March 31, Automotive Medical Corporate Total 2024 Product revenues $ 344,638 $ 11,377 $ — $ 356,015 Depreciation and amortization 12,408 883 527 $ 13,818 Operating income (loss) 43,210 ( 483 ) ( 24,678 ) $ 18,049 2023 Product revenues $ 352,692 $ 10,933 $ — $ 363,625 Depreciation and amortization 12,340 978 265 $ 13,583 Operating income (loss) 38,379 ( 493 ) ( 20,212 ) $ 17,674 Automotive and Medical segment Product revenues by product category for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 Climate Control Seat $ 115,590 $ 114,753 Seat Heaters 77,076 75,636 Steering Wheel Heaters 39,814 36,347 Lumbar and Massage Comfort Solutions 38,251 38,738 Valve Systems 26,625 26,994 Automotive Cables 21,519 20,220 Battery Performance Solutions 13,608 20,309 Electronics 8,185 10,970 Other Automotive 3,970 8,725 Subtotal Automotive segment 344,638 352,692 Medical segment 11,377 10,933 Total Company $ 356,015 $ 363,625 Total Product revenues information by geographic area for the three months ended March 31, 2024 and 2023 is as follows (based on shipment destination): Three Months Ended March 31, 2024 2023 United States $ 125,453 $ 141,452 China 54,476 46,654 South Korea 28,184 28,738 Germany 23,613 26,512 Czech Republic 19,584 17,650 Romania 14,222 12,533 Slovakia 13,178 11,596 Japan 12,455 15,222 United Kingdom 11,324 10,133 Mexico 10,015 9,094 Other 43,511 44,041 Total Non-U.S. 230,562 222,173 Total Company $ 356,015 $ 363,625 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. The operating results for interim periods are not necessarily indicative of results that may be expected for other interim periods 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 third-party 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. All amounts in these notes to the consolidated condensed financial statements are presented in thousands, except share and per share data. |
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 affiliates 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 affiliates 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. In the first quarter of 2024, we recognized an increase in the fair value of our investment in Carrar of $ 1,097 in Other income in the consolidated condensed statements of income due to observable transactions. The Carrar investment was $ 3,897 and $ 2,800 as of March 31, 2024 and December 31, 2023 , respectively, 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, 2024. 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 $ 10,945 and $ 7,305 as of March 31, 2024 and December 31, 2023 , respectively. These amounts are recorded in Other non-current assets in the consolidated condensed balance sheets and are being amortized into Product revenues in the consolidated condensed statements of income over the expected production life of the applicable program. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. New ASUs effective in 2023 were assessed and determined to be either not applicable or not expected to have a significant impact on the Company's consolidated condensed financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". ASU 2023-07 requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are included within each reported measure of segment profit or loss and regularly reviewed by the chief operating decision maker ("CODM"), the title and position of the CODM, clarification regarding the CODM's use of multiple measures of a segment's profit or loss in assessing segment performance (this must include a measure that is consistent with the measurement principles under U.S. GAAP, but may also include additional measures of a segment's profit or loss), and a description of the composition of amounts within an "Other" segment line item. Further, ASU 2023-07 requires that all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be provided in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 should be adopted retrospectively to all periods presented in the financial statements and early adoption is permitted. We are currently in the process of determining the impact the implementation of ASU 2023-07 will have on the Company’s financial statement disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". ASU 2023-09 enhances income tax disclosures to further disaggregate the effective tax rate reconciliation and income taxes paid. This update is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 should be adopted prospectively, but retrospective application is permitted. Further, early adoption is permitted. We are currently in the process of determining the impact the implementation of ASU 2023-09 will have on the Company’s financial statement disclosures. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 by reporting segment: Three Months Ended March 31, 2024 2023 Automotive $ 7,114 $ 1,074 Medical 20 — Corporate 104 195 Total $ 7,238 $ 1,269 |
Summary of Restructuring Liability | The following table summarizes restructuring liability for the three months ended March 31, 2024: Employee Separation Costs Other Related Costs Total Balance at December 31, 2023 $ 2,150 $ — $ 2,150 Additions, charged to restructuring expenses 6,771 467 7,238 Cash payments ( 1,762 ) ( 380 ) ( 2,142 ) Non-cash utilization — ( 87 ) ( 87 ) Currency translation ( 19 ) — ( 19 ) Balance at March 31, 2024 $ 7,140 $ — $ 7,140 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Components [Abstract] | |
Summary of Certain Balance Sheet Components | March 31, 2024 December 31, 2023 Other current assets: Billable tooling $ 17,939 $ 16,877 Income tax and other tax receivable 17,847 16,017 Notes receivable 17,504 18,226 Prepaid expenses 11,391 7,889 Short-term derivative financial instruments 11,479 10,717 Receivables due from factor 6,504 4,422 Other 7,928 4,272 Total other current assets $ 90,592 $ 78,420 Other current liabilities: Accrued employee liabilities $ 31,217 $ 43,176 Liabilities from discounts and rebates 23,528 22,916 Income tax and other taxes payable 23,055 19,327 Restructuring 7,140 2,150 Accrued warranty 5,068 3,945 Other 8,931 9,291 Total other current liabilities $ 98,939 $ 100,805 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 was as follows: Automotive Medical Total Balance as of December 31, 2023 $ 76,696 $ 27,377 $ 104,073 Currency translation and other ( 1,543 ) ( 336 ) ( 1,879 ) Balance as of March 31, 2024 $ 75,153 $ 27,041 $ 102,194 |
Summary of Other Intangible Assets and Accumulated Amortization Balances | Other intangible assets and accumulated amortization balances as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Gross Accumulated Accumulated Net Carrying Gross Accumulated Net Carrying Definite-lived: Customer relationships $ 112,931 $ ( 72,958 ) $ — $ 39,973 $ 115,465 $ ( 73,737 ) $ 41,728 Technology 44,871 ( 29,268 ) — 15,603 45,861 ( 29,317 ) 16,544 Product development costs 18,868 ( 18,705 ) — 163 19,434 ( 19,270 ) 164 Software development 1,007 ( 50 ) — 957 1,007 — 1,007 Indefinite-lived: Tradenames 6,999 — ( 530 ) 6,469 7,039 — 7,039 Total $ 184,676 $ ( 120,981 ) $ ( 530 ) $ 63,165 $ 188,806 $ ( 122,324 ) $ 66,482 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Company's Debt | The following table summarizes the Company’s debt as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Interest Principal Interest Principal Credit Agreement: Revolving Credit Facility (U.S. Dollar denominations) 6.80 % $ 222,000 6.58 % $ 222,000 Other loans — — 3.90 % 233 Finance leases 3.51 % 497 3.53 % 605 Total debt 222,497 222,838 Current maturities ( 324 ) ( 621 ) Long-term debt, less current maturities $ 222,173 $ 222,217 |
Principal Maturities of Debt | The scheduled principal maturities of our debt as of March 31, 2024 were as follows: U.S. Other Debt Total 2024 $ — $ 324 $ 324 2025 — 148 148 2026 — 68 68 2027 222,000 — 222,000 2028 — — — 2029 — — — Total $ 222,000 $ 540 $ 222,540 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Balance at the beginning of the period $ 3,945 $ 2,380 Warranty claims paid ( 747 ) ( 559 ) Warranty expense for products shipped during the current period 806 988 Adjustments to warranty estimates from prior periods (a) 1,123 ( 6 ) Adjustments due to currency translation ( 59 ) 18 Balance at the end of the period $ 5,068 $ 2,821 (a) Change in estimate related to a claim received during the quarter ended March 31, 2024. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Net income $ 14,785 $ 7,963 Basic weighted average shares of Common Stock outstanding 31,543,784 33,181,828 Dilutive effect of stock options, restricted stock awards and restricted stock units 147,547 204,306 Diluted weighted average shares of Common Stock outstanding 31,691,331 33,386,134 Basic earnings per share $ 0.47 $ 0.24 Diluted earnings per share $ 0.47 $ 0.24 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 the consolidated condensed balance sheet as of March 31, 2024 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Assets/ (Liabilities) Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 74,122 Other current assets $ 9,113 Other current liabilities $ — $ 9,113 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,366 Other current liabilities $ — $ 2,366 Information related to the recurring fair value measurement of derivative instruments in the consolidated condensed balance sheet as of December 31, 2023 is as follows: Asset Derivatives Liability Derivatives Fair Value Notional Amount Balance Sheet Fair Balance Sheet Fair Net Assets/ (Liabilities) Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Level 2 $ 101,109 Other current assets $ 8,655 Other current liabilities $ — $ 8,655 Derivatives Not Designated as Hedging Instruments Interest rate contracts Level 2 $ 100,000 Other current assets $ 2,062 Other current liabilities $ — $ 2,062 |
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 the consolidated condensed statements of income and the consolidated condensed statements of comprehensive (loss) income is as follows: Three Months Ended March 31, Location (Income/(Loss)) 2024 2023 Derivatives Designated as Cash Flow Hedges Foreign currency derivatives Cost of sales – income $ 3,376 $ 1,059 Other comprehensive income (loss) ( 853 ) 2,683 Total foreign currency derivatives $ 2,523 $ 3,742 Derivatives Not Designated as Hedging Instruments Interest rate contracts Interest expense, net $ 304 $ ( 699 ) Total interest rate derivatives $ 304 $ ( 699 ) |
Summary of Receivables Factored and Availability Under Receivables Factoring Agreements | Receivables factored and availability under receivables factoring agreements balances as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Receivables factored and outstanding $ 16,510 $ 18,532 Amount available under the credit limit 7,425 5,891 Collective factoring limit $ 23,935 $ 24,423 |
Summary of Trade Receivables Sold and Factoring Fees Incurred | Trade receivables sold and factoring fees incurred during the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 Trade receivables sold $ 30,102 $ 38,540 Factoring fees incurred 179 161 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 were as follows: Defined Foreign Foreign Total Balance at December 31, 2023 $ ( 1,011 ) $ ( 34,830 ) $ 5,681 $ ( 30,160 ) Other comprehensive (loss) income before reclassifications — ( 14,275 ) 3,496 ( 10,779 ) Income tax effect of other comprehensive (loss) income before reclassifications — ( 107 ) ( 762 ) ( 869 ) Amounts reclassified from accumulated other comprehensive loss into net income 21 — ( 4,349 ) a ( 4,328 ) Income taxes reclassified into net income ( 7 ) — 948 941 Net current period other comprehensive income (loss) 14 ( 14,382 ) ( 667 ) ( 15,035 ) Balance at March 31, 2024 $ ( 997 ) $ ( 49,212 ) $ 5,014 $ ( 45,195 ) (a) The amounts reclassified from Accumulated other comprehensi ve loss w ere included in Cost of sales in the consolidated condensed statements of income. Defined Foreign Foreign 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 loss into net income 6 — ( 1,059 ) 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 comprehe nsive loss wer e included in Cost of sales in the consolidated condensed statements of income. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, is shown below: Three Months Ended March 31, 2024 2023 Income tax expense $ 3,542 $ 3,728 Earnings before income tax $ 18,327 $ 11,691 Effective tax rate 19.3 % 31.9 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 the three months ended March 31, 2024 and 2023. Three Months Ended March 31, Automotive Medical Corporate Total 2024 Product revenues $ 344,638 $ 11,377 $ — $ 356,015 Depreciation and amortization 12,408 883 527 $ 13,818 Operating income (loss) 43,210 ( 483 ) ( 24,678 ) $ 18,049 2023 Product revenues $ 352,692 $ 10,933 $ — $ 363,625 Depreciation and amortization 12,340 978 265 $ 13,583 Operating income (loss) 38,379 ( 493 ) ( 20,212 ) $ 17,674 |
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, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 Climate Control Seat $ 115,590 $ 114,753 Seat Heaters 77,076 75,636 Steering Wheel Heaters 39,814 36,347 Lumbar and Massage Comfort Solutions 38,251 38,738 Valve Systems 26,625 26,994 Automotive Cables 21,519 20,220 Battery Performance Solutions 13,608 20,309 Electronics 8,185 10,970 Other Automotive 3,970 8,725 Subtotal Automotive segment 344,638 352,692 Medical segment 11,377 10,933 Total Company $ 356,015 $ 363,625 |
Product Revenues Information by Geographic Area | Total Product revenues information by geographic area for the three months ended March 31, 2024 and 2023 is as follows (based on shipment destination): Three Months Ended March 31, 2024 2023 United States $ 125,453 $ 141,452 China 54,476 46,654 South Korea 28,184 28,738 Germany 23,613 26,512 Czech Republic 19,584 17,650 Romania 14,222 12,533 Slovakia 13,178 11,596 Japan 12,455 15,222 United Kingdom 11,324 10,133 Mexico 10,015 9,094 Other 43,511 44,041 Total Non-U.S. 230,562 222,173 Total Company $ 356,015 $ 363,625 |
Overview - Additional Informati
Overview - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Investment amount | $ 3,897 | $ 2,800 |
Increase in the fair value of investment | 1,097 | |
Capitalized costs to obtain contract | $ 10,945 | $ 7,305 |
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 - Summary of Purch
Acquisitions - Summary of Purchase Consideration and Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill | $ 102,194 | $ 104,073 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 19, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 7,238 | $ 1,269 | |
Cash payments for restructuring expenses | 2,142 | ||
2023 Manufacturing Footprint Rationalization | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 1,737 | ||
Non cash expenses for accelerated depreciation and impairment of fixed assets | $ 1,000 | ||
2023 Manufacturing Footprint Rationalization | Maximum | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 16,000 | ||
Cash payments for restructuring expenses | 15,000 | ||
Restructuring charges for capital expenditures | 8,000 | ||
2023 Manufacturing Footprint Rationalization | Minimum | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 12,000 | ||
Cash payments for restructuring expenses | 11,000 | ||
Restructuring charges for capital expenditures | 7,000 | ||
Other Restructuring Activities | |||
Restructuring Cost And Reserve [Line Items] | |||
Other restructuring costs | 174 | 164 | |
Additional restructuring costs | 1,000 | ||
Employee Separation Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Cash payments for restructuring expenses | 1,762 | ||
Employee Separation Costs | 2023 Manufacturing Footprint Rationalization | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 747 | ||
Employee Separation Costs | Other Restructuring Activities | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 1,256 | ||
Employee Separation Costs Related to Structural Cost Reductions | Other Restructuring Activities | Automotive Segments | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 4,219 | ||
Employee Separation Costs Related to Relocation of Electronic Component Manufacturing Facility | Other Restructuring Activities | Automotive Segments | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 1,805 | ||
Employee Severance Retention and Termination Costs | 2023 Manufacturing Footprint Rationalization | Maximum | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 4,000 | ||
Employee Severance Retention and Termination Costs | 2023 Manufacturing Footprint Rationalization | Minimum | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 2,000 | ||
Other Related Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Cash payments for restructuring expenses | 380 | ||
Other Related Costs | 2023 Manufacturing Footprint Rationalization | Maximum | |||
Restructuring Cost And Reserve [Line Items] | |||
Future restructuring expenses expected | 3,000 | ||
Other Related Costs | 2023 Manufacturing Footprint Rationalization | Minimum | |||
Restructuring Cost And Reserve [Line Items] | |||
Future restructuring expenses expected | $ 2,000 | ||
Other Costs | 2023 Manufacturing Footprint Rationalization | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 293 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Expense by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | $ 7,238 | $ 1,269 |
Operating Segments | Automotive Segments | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | 7,114 | 1,074 |
Operating Segments | Medical Segments | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | 20 | |
Operating Segments | Corporate Segments | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expenses | $ 104 | $ 195 |
Restructuring - Summary of Re_2
Restructuring - Summary of Restructuring Liability (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance, beginning of period | $ 2,150 |
Additions, charged to restructuring expenses | 7,238 |
Cash payments | (2,142) |
Non-cash utilization | (87) |
Currency translation | (19) |
Balance, end of period | 7,140 |
Employee Separation Costs | |
Restructuring Cost And Reserve [Line Items] | |
Balance, beginning of period | 2,150 |
Additions, charged to restructuring expenses | 6,771 |
Cash payments | (1,762) |
Currency translation | (19) |
Balance, end of period | 7,140 |
Other Related Costs | |
Restructuring Cost And Reserve [Line Items] | |
Additions, charged to restructuring expenses | 467 |
Cash payments | (380) |
Non-cash utilization | $ (87) |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Components (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||||
Billable tooling | $ 17,939 | $ 16,877 | ||
Income tax and other tax receivable | 17,847 | 16,017 | ||
Notes receivable | 17,504 | |||
Prepaid expenses | 11,391 | 7,889 | ||
Short-term derivative financial instruments | 11,479 | 10,717 | ||
Receivables due from factor | 6,504 | |||
Other | 7,928 | 4,272 | ||
Total other current assets | 90,592 | 78,420 | ||
Other current liabilities: | ||||
Accrued employee liabilities | 31,217 | 43,176 | ||
Liabilities from discounts and rebates | 23,528 | 22,916 | ||
Income tax and other taxes payable | 23,055 | 19,327 | ||
Restructuring | 7,140 | 2,150 | ||
Accrued warranty | 5,068 | 3,945 | $ 2,821 | $ 2,380 |
Other | 8,931 | 9,291 | ||
Total other current liabilities | $ 98,939 | 100,805 | ||
Related Party | ||||
Current Assets: | ||||
Notes receivable | 18,226 | |||
Receivables due from factor | $ 4,422 |
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, 2024 USD ($) | |
Goodwill [Line Items] | |
Balance, beginning of period | $ 104,073 |
Balance, end of period | 102,194 |
Operating Segments | |
Goodwill [Line Items] | |
Balance, beginning of period | 104,073 |
Currency translation and other | (1,879) |
Balance, end of period | 102,194 |
Automotive Segments | Operating Segments | |
Goodwill [Line Items] | |
Balance, beginning of period | 76,696 |
Currency translation and other | (1,543) |
Balance, end of period | 75,153 |
Medical Segments | Operating Segments | |
Goodwill [Line Items] | |
Balance, beginning of period | 27,377 |
Currency translation and other | (336) |
Balance, end of period | $ 27,041 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Detail) - Medical Segments - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Tradenames | ||
Goodwill [Line Items] | ||
Non-cash impairment charges | $ 530 | |
Operating Segments | ||
Goodwill [Line Items] | ||
Cumulative goodwill impairment expense | $ 19,509 | $ 19,509 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Summary of Other Intangible Assets and Accumulated Amortization Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 184,676 | $ 188,806 |
Accumulated Amortization | (120,981) | (122,324) |
Accumulated Impairment | (530) | |
Net Carrying Value | 63,165 | 66,482 |
Net Carrying Value | 63,165 | 66,482 |
Customer Relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 112,931 | 115,465 |
Accumulated Amortization | (72,958) | (73,737) |
Net Carrying Value | 39,973 | 41,728 |
Technology | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 44,871 | 45,861 |
Accumulated Amortization | (29,268) | (29,317) |
Net Carrying Value | 15,603 | 16,544 |
Product Development Costs | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 18,868 | 19,434 |
Accumulated Amortization | (18,705) | (19,270) |
Net Carrying Value | 163 | 164 |
Software Development | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,007 | 1,007 |
Accumulated Amortization | (50) | |
Net Carrying Value | 957 | 1,007 |
Tradenames | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 6,999 | 7,039 |
Accumulated Impairment | (530) | |
Net Carrying Value | $ 6,469 | $ 7,039 |
Summary of Company's Debt (Deta
Summary of Company's Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total debt | $ 222,497 | $ 222,838 |
Current maturities | (324) | (621) |
Long-term debt, less current maturities | $ 222,173 | $ 222,217 |
Revolving Credit Facility (U.S. Dollar denominations) | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.80% | 6.58% |
Total debt | $ 222,000 | $ 222,000 |
Other Loans | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.90% | |
Total debt | $ 233 | |
Finance Leases | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.51% | 3.53% |
Total debt | $ 497 | $ 605 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Jun. 10, 2027 | Jun. 10, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
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 | $ 1,520,000 | |||
Remaining borrowing capacity | $ 278,000,000 | |||
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 | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Scenario Forecast | ||||
Debt Instrument [Line Items] | ||||
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) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
Debt maturing in 2024 | $ 324 |
Debt maturing in 2025 | 148 |
Debt maturing in 2026 | 68 |
Debt maturing in 2027 | 222,000 |
Total | 222,540 |
US and Euro Denominated Revolving Note | |
Debt Instrument [Line Items] | |
Debt maturing in 2027 | 222,000 |
Total | 222,000 |
Other Debt | |
Debt Instrument [Line Items] | |
Debt maturing in 2024 | 324 |
Debt maturing in 2025 | 148 |
Debt maturing in 2026 | 68 |
Total | $ 540 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Feb. 14, 2024 Vehicle |
Loss Contingency [Abstract] | |
Number of vehicles recalled | 261,257 |
Commitments and Contingencies_2
Commitments and Contingencies - Reconciliation of Changes in Accrued Warranty Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingency [Abstract] | ||
Balance at the beginning of the period | $ 3,945 | $ 2,380 |
Warranty claims paid | (747) | (559) |
Warranty expense for products shipped during the current period | 806 | 988 |
Adjustments to warranty estimates from prior periods | 1,123 | (6) |
Adjustments due to currency translation | (59) | 18 |
Balance at the end of the period | $ 5,068 | $ 2,821 |
Supplier Finance Program - Addi
Supplier Finance Program - Additional Information (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Payables and Accruals [Abstract] | |
Outstanding payment obligations to suppliers | $ 9,473 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income | $ 14,785 | $ 7,963 |
Basic weighted average shares of Common Stock outstanding | 31,543,784 | 33,181,828 |
Dilutive effect of stock options, restricted stock awards and restricted stock units | 147,547 | 204,306 |
Diluted weighted average shares of Common Stock outstanding | 31,691,331 | 33,386,134 |
Basic earnings per share | $ 0.47 | $ 0.24 |
Diluted earnings per share | $ 0.47 | $ 0.24 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Hedge Ineffectiveness Incurred | $ 0 | $ 0 |
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, 2024 | Dec. 31, 2023 |
Foreign Currency Derivatives | Derivatives Designated as Cash Flow Hedges | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | $ 74,122 | $ 101,109 |
Asset Derivatives, Fair Value | 9,113 | |
Net Assets/ (Liabilities) | 9,113 | 8,655 |
Foreign Currency Derivatives | Other Current Assets | Derivatives Designated as Cash Flow Hedges | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 8,655 | |
Interest Rate Contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 100,000 | 100,000 |
Asset Derivatives, Fair Value | 2,366 | |
Net Assets/ (Liabilities) | $ 2,366 | 2,062 |
Interest Rate Contracts | Other Current Assets | Derivatives Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 2,062 |
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, 2024 | Mar. 31, 2023 | |
Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total foreign currency derivatives | $ 2,523 | $ 3,742 |
Foreign Currency Derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments Gain Loss [Line Items] | ||
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 | $ 304 | $ (699) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net |
Other comprehensive income (loss) | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total foreign currency derivatives | $ (853) | $ 2,683 |
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 | $ 3,376 | $ 1,059 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Interest expense, net | Interest Rate Contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total interest rate derivatives | $ 304 | $ (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, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Receivables factored and outstanding | $ 16,510 | $ 18,532 |
Amount available under the credit limit | 7,425 | 5,891 |
Collective factoring limit | $ 23,935 | $ 24,423 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Trade Receivables Sold and Factoring Fees Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Trade receivables sold | $ 30,102 | $ 38,540 |
Factoring fees incurred | $ 179 | $ 161 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Nov. 02, 2023 | Nov. 01, 2023 | Mar. 31, 2023 | Dec. 31, 2020 | Mar. 31, 2024 | |
Class Of Stock [Line Items] | |||||
Cash paid to repurchased shares | $ 9,997 | ||||
ASR Agreement | |||||
Class Of Stock [Line Items] | |||||
Initial repurchase, shares | 1,220,000 | ||||
Initial repurchase, percentage | 80% | ||||
ASR Agreement | Bank of America | |||||
Class Of Stock [Line Items] | |||||
Cash paid to repurchased shares | $ 60,000 | ||||
2020 Stock Repurchase Program | |||||
Class Of Stock [Line Items] | |||||
Stock repurchase program period | 3 years | ||||
Stock repurchase program expiration date | Jun. 30, 2024 | Dec. 15, 2023 | |||
Remaining authorized repurchase amount | $ 37,491 | ||||
2020 Stock Repurchase Program | ASR Agreement | |||||
Class Of Stock [Line Items] | |||||
Share repurchase authorized aggregate amount | $ 60,000 | ||||
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 Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ (30,160) | $ (46,489) | ||
Other comprehensive (loss) income before reclassifications | (10,779) | 11,933 | ||
Income tax effect of other comprehensive (loss) income before reclassifications | (869) | (751) | ||
Amounts reclassified from accumulated other comprehensive loss into net income | (4,328) | (1,053) | ||
Income taxes reclassified into net income | 941 | 259 | ||
Other comprehensive income (loss) , net of tax | (15,035) | 10,388 | ||
Ending Balance | (45,195) | (36,101) | ||
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,011) | (1,067) | ||
Amounts reclassified from accumulated other comprehensive loss into net income | 21 | 6 | ||
Income taxes reclassified into net income | (7) | (2) | ||
Other comprehensive income (loss) , net of tax | 14 | 4 | ||
Ending Balance | (997) | (1,063) | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (34,830) | (48,269) | ||
Other comprehensive (loss) income before reclassifications | (14,275) | 8,191 | ||
Income tax effect of other comprehensive (loss) income before reclassifications | (107) | 64 | ||
Other comprehensive income (loss) , net of tax | (14,382) | 8,255 | ||
Ending Balance | (49,212) | (40,014) | ||
Foreign Currency Hedge Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 5,681 | 2,847 | ||
Other comprehensive (loss) income before reclassifications | 3,496 | 3,742 | ||
Income tax effect of other comprehensive (loss) income before reclassifications | (762) | (815) | ||
Amounts reclassified from accumulated other comprehensive loss into net income | (4,349) | [1] | (1,059) | [2] |
Income taxes reclassified into net income | 948 | 261 | ||
Other comprehensive income (loss) , net of tax | (667) | 2,129 | ||
Ending Balance | $ 5,014 | $ 4,976 | ||
[1] The amounts reclassified from Accumulated other comprehensi ve loss w ere included in Cost of sales in the consolidated condensed statements of income. The amounts reclassified from Accumulated other comprehe nsive loss wer e included in Cost of sales in the consolidated condensed statements of income. |
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, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3,542 | $ 3,728 |
Earnings before income tax | $ 18,327 | $ 11,691 |
Effective tax rate | 19.30% | 31.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3,542 | $ 3,728 |
Earnings before income tax | $ 18,327 | $ 11,691 |
Effective tax rate | 19.30% | 31.90% |
Adjusted for the audit impacts, effective rate | 28% | |
Effect of the settlement and closure of a multi-year state audit | $ 454 | |
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, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Product revenues | $ 356,015 | $ 363,625 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 13,818 | $ 13,583 |
Operating income (loss) | 18,049 | 17,674 |
Automotive Segments | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 344,638 | $ 352,692 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 12,408 | $ 12,340 |
Operating income (loss) | 43,210 | 38,379 |
Medical Segments | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 11,377 | $ 10,933 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 883 | $ 978 |
Operating income (loss) | $ (483) | $ (493) |
Corporate Segments | ||
Segment Reporting Information [Line Items] | ||
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Depreciation and amortization | $ 527 | $ 265 |
Operating income (loss) | $ (24,678) | $ (20,212) |
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, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Product revenues | $ 356,015 | $ 363,625 |
Automotive Segments | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 344,638 | 352,692 |
Automotive Segments | Climate Control Seat | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 115,590 | 114,753 |
Automotive Segments | Seat Heaters | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 77,076 | 75,636 |
Automotive Segments | Steering Wheel Heaters | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 39,814 | 36,347 |
Automotive Segments | Lumbar and Massage Comfort Solutions | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 38,251 | 38,738 |
Automotive Segments | Valve System | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 26,625 | 26,994 |
Automotive Segments | Automotive Cables | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 21,519 | 20,220 |
Automotive Segments | Battery Performance Solutions | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 13,608 | 20,309 |
Automotive Segments | Electronics | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 8,185 | 10,970 |
Automotive Segments | Other Automotive | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 3,970 | 8,725 |
Industrial Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 11,377 | $ 10,933 |
Segment Reporting - Product Rev
Segment Reporting - Product Revenues Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Product revenues | $ 356,015 | $ 363,625 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ProductMember | us-gaap:ProductMember |
United States | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 125,453 | $ 141,452 |
China | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 54,476 | 46,654 |
South Korea | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 28,184 | 28,738 |
Germany | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 23,613 | 26,512 |
Czech Republic | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 19,584 | 17,650 |
Romania | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 14,222 | 12,533 |
Slovakia | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 13,178 | 11,596 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 12,455 | 15,222 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 11,324 | 10,133 |
Mexico | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 10,015 | 9,094 |
Other | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 43,511 | 44,041 |
Non U.S. | ||
Segment Reporting Information [Line Items] | ||
Product revenues | $ 230,562 | $ 222,173 |