Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | THRM | ||
Entity Registrant Name | GENTHERM INC | ||
Entity Central Index Key | 903,129 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 36,582,911 | ||
Entity Public Float | $ 1,229,922 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 177,187 | $ 144,479 |
Accounts receivable, less allowance of $1,391 and $955, respectively | 170,084 | 144,494 |
Inventory | 105,074 | 84,183 |
Derivative financial instruments | 18 | |
Prepaid expenses and other assets | 36,390 | 42,620 |
Total current assets | 488,753 | 415,776 |
Property and equipment, net of accumulated depreciation of $47,267 and $34,107, respectively | 172,052 | 119,157 |
Goodwill | 51,735 | 27,765 |
Other intangible assets, net of accumulated amortization of $53,965 and $59,594, respectively | 57,557 | 48,461 |
Deferred financing costs | 1,221 | 310 |
Deferred income tax assets | 35,299 | 28,471 |
Other non-current assets | 36,413 | 8,403 |
Total assets | 843,030 | 648,343 |
Current Liabilities: | ||
Accounts payable | 84,511 | 77,115 |
Accrued liabilities | 105,625 | 62,707 |
Current maturities of long-term debt | 2,092 | 4,909 |
Derivative financial instruments | 1,395 | 725 |
Total current liabilities | 193,623 | 145,456 |
Pension benefit obligations | 7,419 | 6,545 |
Other Liabilities | 4,092 | 5,026 |
Long-term debt, less current maturities | 169,433 | 92,832 |
Deferred tax liabilities | 8,058 | 14,193 |
Total liabilities | 382,625 | 264,052 |
Common Stock: | ||
No par value; 55,000,000 shares authorized, 36,534,464 and 36,321,775 issued and outstanding at December 31, 2016 and 2015, respectively | 262,251 | 256,919 |
Paid-in capital | 10,323 | (1,282) |
Accumulated other comprehensive income | (69,091) | (51,670) |
Accumulated earnings | 256,922 | 180,324 |
Total shareholders’ equity | 460,405 | 384,291 |
Total liabilities and shareholders’ equity | $ 843,030 | $ 648,343 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Financial Position [Abstract] | |||
Accounts receivable, allowance | $ 1,391 | $ 955 | |
Accumulated depreciation | [1] | 47,267 | 34,107 |
Accumulated amortization | $ 53,965 | $ 59,594 | |
Common Stock, par value | |||
Common Stock, shares authorized | 55,000,000 | 55,000,000 | |
Common Stock, shares issued | 36,534,464 | 36,321,775 | |
Common Stock, shares outstanding | 36,534,464 | 36,321,775 | |
[1] | Includes accumulated amortization of capital lease obligations. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Product revenues | $ 917,600 | $ 856,445 | $ 811,300 |
Cost of sales | 622,563 | 580,066 | 569,618 |
Gross margin | 295,037 | 276,379 | 241,682 |
Operating costs and expenses: | |||
Research and development expenses | 79,583 | 69,211 | 66,411 |
Reimbursed research and development expenses | (6,660) | (9,607) | (8,885) |
Net research and development expenses | 72,923 | 59,604 | 57,526 |
Acquisition transaction expenses | 743 | 1,075 | |
Selling, general and administrative expenses | 115,252 | 95,456 | 84,647 |
Total operating costs and expenses | 188,918 | 155,060 | 143,248 |
Operating income | 106,119 | 121,319 | 98,434 |
Interest expense | (3,257) | (2,610) | (3,262) |
Debt retirement expense | (1,370) | ||
Revaluation of derivatives loss | (1,102) | (518) | |
Gain on settlement of lawsuit | 9,949 | ||
Foreign currency gain (loss) | 7,810 | 1,121 | (218) |
Gain from equity investment | 785 | ||
Other (loss) income | (109) | 261 | 370 |
Earnings before income tax | 110,563 | 128,938 | 94,221 |
Income tax expense | 33,965 | 33,545 | 24,102 |
Net income | $ 76,598 | $ 95,393 | $ 70,119 |
Basic earnings per share | $ 2.10 | $ 2.65 | $ 1.98 |
Diluted earnings per share | $ 2.09 | $ 2.62 | $ 1.95 |
Weighted average number of shares—basic | 36,448,138 | 36,031,792 | 35,411,608 |
Weighted average number of shares—diluted | 36,600,803 | 36,475,102 | 36,049,331 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 76,598 | $ 95,393 | $ 70,119 |
Other comprehensive loss, gross of tax: | |||
Net gain (loss) on pension benefit obligations | (675) | 847 | (2,295) |
Foreign currency translation adjustments | (16,678) | (25,904) | (25,044) |
Unrealized gain (loss) on foreign currency derivative securities | (1,395) | 10 | (10) |
Unrealized gain on interest rate derivative securities | 81 | ||
Unrealized loss (gain) on commodity derivative securities | 743 | (725) | |
Other comprehensive loss, gross of tax | (18,005) | (25,772) | (27,268) |
Other comprehensive loss, related tax effects: | |||
Net gain (loss) on pension benefit obligations | 185 | (234) | 680 |
Foreign currency translation adjustments | 297 | (417) | 6,048 |
Unrealized gain on foreign currency derivative securities | 375 | ||
Unrealized (gain) loss on commodity derivative securities | (273) | 496 | |
Other comprehensive loss, related tax effect | 584 | (155) | 6,728 |
Other comprehensive loss, net of tax: | (17,421) | (25,927) | (20,540) |
Comprehensive income: | $ 59,177 | $ 69,466 | $ 49,579 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Loss on Pension Benefit Obligation | Currency Translation Adjustments | Foreign Currency Hedge Adjustment | Commodity Hedge Adjustment | Interest Rate Hedge Adjustment | Accumulated Earnings |
Beginning Balance at Dec. 31, 2013 | $ 232,094 | $ 232,067 | $ (9,582) | $ (1,058) | $ (4,064) | $ (81) | $ 14,812 | ||
Beginning Balance (in shares) at Dec. 31, 2013 | 34,929,000 | ||||||||
Exercise of Common Stock options for cash | $ 7,176 | $ 9,595 | (2,419) | ||||||
Exercise of Common Stock options for cash (in shares) | 731,142 | 731,000 | |||||||
Tax benefit from Exercises of Common Stock options | $ 1,831 | 1,831 | |||||||
Common Stock issued to Board of Directors and employees | 2,706 | $ 2,706 | |||||||
Common Stock issued to Board of Directors and employees (in shares) | 105,000 | ||||||||
Stock option compensation | 1,946 | 1,946 | |||||||
Cancelation of restricted stock | (1,113) | $ (1,113) | |||||||
Cancelation of restricted stock (in shares) | (68,000) | ||||||||
Net gain (loss) on pension benefit obligation, net | (1,615) | (1,615) | |||||||
Currency translation, net | (18,996) | (18,996) | |||||||
Foreign currency hedge, net | (10) | $ (10) | |||||||
Interest rate hedge, net | 81 | $ 81 | |||||||
Net income | 70,119 | 70,119 | |||||||
Ending Balance at Dec. 31, 2014 | 294,219 | $ 243,255 | (8,224) | (2,673) | (23,060) | (10) | 84,931 | ||
Ending Balance (in shares) at Dec. 31, 2014 | 35,697,000 | ||||||||
Exercise of Common Stock options for cash | $ 9,273 | $ 12,146 | (2,873) | ||||||
Exercise of Common Stock options for cash (in shares) | 571,723 | 571,000 | |||||||
Tax benefit from Exercises of Common Stock options | $ 6,681 | 6,681 | |||||||
Common Stock issued to Board of Directors and employees | 3,734 | $ 3,734 | |||||||
Common Stock issued to Board of Directors and employees (in shares) | 108,000 | ||||||||
Stock option compensation | 3,025 | 3,025 | |||||||
Cancelation of restricted stock | (2,216) | $ (2,216) | |||||||
Cancelation of restricted stock (in shares) | (54,000) | ||||||||
Net gain (loss) on pension benefit obligation, net | 613 | 613 | |||||||
Currency translation, net | (26,212) | 109 | (26,321) | ||||||
Foreign currency hedge, net | 10 | 10 | |||||||
Commodity hedge, net | (229) | $ (229) | |||||||
Net income | 95,393 | 95,393 | |||||||
Ending Balance at Dec. 31, 2015 | $ 384,291 | $ 256,919 | (1,282) | (2,060) | (49,381) | (229) | 180,324 | ||
Ending Balance (in shares) at Dec. 31, 2015 | 36,321,775 | 36,322,000 | |||||||
Exercise of Common Stock options for cash | $ 1,438 | $ 1,939 | (501) | ||||||
Exercise of Common Stock options for cash (in shares) | 112,875 | 113,000 | |||||||
Tax benefit from Exercises of Common Stock options | $ 7,509 | 7,509 | |||||||
Common Stock issued to Board of Directors and employees | 4,589 | $ 4,589 | |||||||
Common Stock issued to Board of Directors and employees (in shares) | 137,000 | ||||||||
Stock option compensation | 4,597 | 4,597 | |||||||
Cancelation of restricted stock | (1,196) | $ (1,196) | |||||||
Cancelation of restricted stock (in shares) | (38,000) | ||||||||
Net gain (loss) on pension benefit obligation, net | (490) | (490) | |||||||
Currency translation, net | (16,381) | (16,381) | |||||||
Foreign currency hedge, net | (1,020) | (1,020) | |||||||
Commodity hedge, net | 470 | 470 | |||||||
Net income | 76,598 | 76,598 | |||||||
Ending Balance at Dec. 31, 2016 | $ 460,405 | $ 262,251 | $ 10,323 | $ (2,550) | $ (65,762) | $ (1,020) | $ 241 | $ 256,922 | |
Ending Balance (in shares) at Dec. 31, 2016 | 36,534,464 | 36,534,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net income | $ 76,598 | $ 95,393 | $ 70,119 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 37,764 | 31,029 | 35,029 |
Deferred income taxes | (8,843) | (711) | (11,103) |
Gain on CRS settlement | (9,949) | ||
Revaluation of derivatives | (490) | (1,039) | |
Debt extinguishment expenses | 1,370 | ||
Stock compensation | 9,186 | 6,018 | 4,652 |
Loss on sale of property and equipment | 468 | 20 | 131 |
Loss from write-off of intangible assets | 358 | ||
Provision for doubtful accounts | 108 | (120) | 24 |
Defined benefit pension plan expense | 184 | 668 | 820 |
Gain from equity investment | (785) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (17,971) | (12,399) | (16,902) |
Inventory | (5,933) | (10,954) | (8,367) |
Prepaid expenses and other assets | 9,106 | (11,122) | (5,871) |
Accounts payable | 4,419 | 8,049 | 6,956 |
Accrued liabilities | 3,314 | 8,922 | 5,301 |
Net cash provided by operating activities | 108,400 | 104,712 | 80,335 |
Investing Activities: | |||
Settlement of derivative financial instruments | (7,593) | ||
Investment in subsidiary, net of cash acquired | (73,593) | 107 | (31,474) |
Investment in development-stage entity | (4,486) | ||
Purchases of property and equipment | (66,316) | (55,490) | (38,887) |
Proceeds from the sale of property and equipment | 57 | 248 | 487 |
Net cash used in investing activities | (144,338) | (62,728) | (69,874) |
Financing Activities: | |||
Cash paid for financing costs | (649) | (1,139) | |
Borrowing of Debt | 115,000 | 15,000 | 91,592 |
Repayments of Debt | (42,244) | (5,053) | (79,692) |
Cash paid for the cancellation of restricted stock | (1,196) | (1,475) | (1,113) |
Excess tax benefit from equity awards | 7,509 | 6,681 | 1,831 |
Proceeds from the exercise of Common Stock options | 1,438 | 9,273 | 7,176 |
Net cash provided by financing activities | 79,858 | 24,426 | 18,655 |
Foreign currency effect on cash and cash equivalents | (11,212) | (7,631) | 1,699 |
Net increase in cash and cash equivalents | 32,708 | 58,779 | 30,815 |
Cash and cash equivalents at beginning of period | 144,479 | 85,700 | 54,885 |
Cash and cash equivalents at end of period | 177,187 | 144,479 | 85,700 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 3,029 | 2,826 | 2,558 |
Cash paid for taxes | 21,608 | 32,376 | 21,756 |
Supplemental disclosure of non-cash transactions: | |||
Common Stock issued to directors and employees | $ 4,589 | $ 3,734 | $ 2,706 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | Note 1 — The Company Gentherm Incorporated is a global technology and industry leader in the design, development, and manufacturing of innovative thermal management technologies. Unless the context otherwise requires, the terms “Company”, “we”, “us” and “our” used herein refer to Gentherm Incorporated and its consolidated subsidiaries. Our products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Our automotive products can be found on the vehicles of nearly all major automotive manufacturers operating in North America, Europe and Asia. We operate in locations aligned with our major customers’ product strategies in order to provide locally enhanced design, integration and production capabilities and to identify future thermal technology product opportunities in both automotive and other markets. We concentrate our research on the development of new technologies and new applications from existing technologies to create product and market opportunities for a wide array of thermal management solutions. Investment On December 22, 2016, Gentherm entered into a subscription agreement to purchase preferred shares of stock from a development-stage technology company for approximately $4,500. The proceeds will be used to finance the development of new technologies we hope to be able to leverage in our design and development of new electric power generation applications. The investment was accounted for using the cost-method. Since the investment was made nine days before the end of the 2016 period and no adverse events or changes in circumstance have occurred, the investment’s $4,500 carrying value approximates its fair value as of December 31, 2016. No dividends were paid to Gentherm during the year ended December 31, 2016. The investment was recorded to other non-current assets in the Company’s consolidated balance sheet. Cincinnati Sub-Zero On April 1, 2016, we acquired all of the equity of privately-held Cincinnati Sub-Zero Products, LLC (“CSZ”) and related assets in an all-cash transaction. CSZ manufactures both high quality patient temperature management systems for the health care industry and custom testing equipment used by a wide range of industrial manufacturing companies for product testing. CSZ’s world headquarters and manufacturing operations are located in Cincinnati, Ohio. See Note 4 for additional information regarding the acquisition of CSZ. North American Reorganization On January 4, 2016 and January 5, 2016, the Company completed reorganization transactions (the “Reorganization”) related to our North American business (the “Windsor Operations”). As part of our original integration plan to eliminate redundancies associated with the 2011 acquisition of Gentherm GmbH (formerly named W.E.T. Automotive Systems AG), the Windsor Operations have been consolidated into our existing European and North American facilities. As a result of the Reorganization, some of the business activities previously performed by the Windsor Operations are now being performed by other subsidiaries. Related to the Reorganization, the Company declared intercompany dividends, incurred and paid related withholding taxes to the Canadian Revenue Agency of $7,600, during 2016. Additionally, the Company incurred income tax expense of $2,500 related to the intercompany dividends. These amounts incurred are expected to cover all future intercompany dividends needed to distribute the remaining earnings of the subsidiary to its parent in conjunction with the potential future liquidation of the subsidiary. Note 1 — The Company (Continued) In addition to the $7,600 of withholding taxes and $2,500 of income taxes, the Reorganization will require the Company to make a one-time income tax payment of approximately $32,600. The one-time income tax payment was accrued during 2016; however, the Company also recorded an offsetting deferred charge for approximately the same amount because the one-time income tax payment will result in tax deductions against income taxes in future periods. Therefore, the income tax payment did not have a material impact on the Company’s earnings during the first quarter of 2016 nor any subsequent quarter of 2016. The withholding tax payment was paid entirely in 2016. The income tax payments of $2,500 and $32,600 are expected to be paid during the first half of 2017 and are included in accrued liabilities as of December 31, 2016. The deferred charge is included in other non-current assets as of December 31, 2016. Reportable Segments The Company has two reportable segments for financial reporting purposes: Automotive and Industrial. Automotive The Automotive reporting segment is comprised of the results from our global automotive businesses. Operating results from our automotive seat comfort systems, specialized automotive cable systems and other automotive and non-automotive thermal convenience products are all reported in the automotive segment because of their complementary focus on automotive content and/or individual comfort and convenience. Automotive seat comfort systems include seat heaters, variable temperature Climate Control Seats TM Our automotive segment customers include light vehicle original equipment manufacturers (“OEMs”), commercial vehicle OEMs, and Tier 1 suppliers to the automotive OEMs, including automotive seat manufacturers. We also directly supply CCS and seat heaters to aftermarket seat distributors and installers. Industrial The Industrial reporting segment represents the combined results from our remote power generation systems business, our patient temperature management systems business, our environmental testing equipment business and our advanced research and product development division. Our remote power generation systems business is managed by our subsidiary Gentherm Global Power Technologies (“GPT”). The advanced research and product development division is engaged in projects to improve the efficiency of thermal management technologies and to develop, market, and distribute products based on these new technologies. The operating results from these businesses and division are presented together as one reporting segment because of their joint concentration on identifying new, non-automotive markets and product applications based on thermal management technologies. See Note 11 for information regarding the Company’s segment revenues from external customers, including geographic composition, operating income, goodwill and changes to the presentation of prior year information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Note 2 — Summary of Significant Accounting Policies and Basis of Presentation Consolidation The consolidated financial statements at and for the years ended December 31, 2016, 2015 and 2014, reflect the consolidated financial position and consolidated operating results of the Company. 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. Intercompany accounts have been eliminated in consolidation. Certain reclassifications of prior years’ amounts have been made to conform with the current year’s presentation. Specifically, long-term supply contract price downs were reclassified from accounts receivable to accrued liabilities and the presentation of prior year deferred taxes amounts was changed to reflect the adoption of ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes.” See Note 15 for information about the accounting impact adoption of the update had on Gentherm’s consolidated financial statements. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of less than 90 days to be cash equivalents. Cash balances in individual banks may exceed the federally insured limit by the Federal Deposit Insurance Corporation. The Company had cash and cash equivalents of $162,881 and $140,088 held in foreign jurisdictions as of December 31, 2016 and 2015, respectively. Disclosures About Fair Value of Financial Instruments The carrying amounts of financial instruments comprising cash and cash equivalents, short-term investments and accounts receivable approximate fair value because of the short maturities of these instruments. The carrying amount of the Company’s long-term debt approximates its fair value because interest charged on the loan balance is variable. See Note 13 for information about the techniques used to assess the fair value of financial assets and liabilities, including our fixed rate debt instruments. Use of Estimates The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Accrued Warranty Costs 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 claims already filed by customers, the warranty accrual is adjusted quarterly to reflect management’s best estimate of future claims. The following is a reconciliation of the changes in accrued warranty costs for the reporting period: December 31, 2016 2015 Balance at beginning of year $ 4,558 $ 5,221 Warranty claims paid or retired (1,096 ) (1,654 ) Expense 2,053 1,339 Adjustment due to currency translation (72 ) (348 ) Balance at end of year $ 5,443 $ 4,558 Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) Concentration of Credit Risk Financial assets, which subject the Company to concentration of credit risk, consist primarily of cash equivalents, short-term investments and accounts receivable. Cash equivalents consist primarily of money market funds managed by major financial services companies. The credit risk for these cash equivalents is considered low. The Company does not require collateral from its customers. As of December 31, 2016, Lear Corporation, Adient (formed pursuant to a 2016 spin-off of Johnson Controls’ automotive seating and interiors business) and Faurecia comprised 25%, 24% and 7% respectively, of the Company’s accounts receivable balance. As of December 31, 2015, Lear Corporation, Adient, and Faurecia comprised 28%, 27% and 5% respectively, of the Company’s accounts receivable balance. These accounts are currently in good standing. Allowance for Doubtful Accounts We record an allowance for doubtful accounts once exposure to collection risk of an accounts receivable is specifically identified. We analyze the length of time an account receivable is outstanding, as well as a customer’s payment history and ability to pay to determine the need to record an allowance for doubtful accounts. Inventory The Company’s inventory is measured at the lower of cost or market, with cost being determined using the first-in first-out basis. Raw materials, consumables and commodities are measured at cost of purchase and unfinished and finished goods are measured at cost of production, using the weighted average method. If the net realizable value expected on the reporting date is below cost, a write-down is recorded to adjust inventory to its net realizable value. We recognize a reserve for obsolete and slow moving inventories based on estimates of future sales and an inventory item’s capacity to be repurposed for a different use. We consider the number of months supply on hand based on current planned requirements, uncommitted future projections and historical usage in estimating the inventory reserve. Additional provisions are made for supplier claims for obsolete materials, prototype inventory, spare or customer service inventory and, for all periods other than at year-end, estimates for physical inventory adjustments. The following is a reconciliation of the changes in the inventory reserve: December 31, 2016 2015 Balance at beginning of year $ 4,308 $ 4,802 Expense 876 815 Inventory write off (326 ) (1,060 ) Adjustment due to currency translation (68 ) (249 ) Balance at end of year $ 4,790 $ 4,308 Property and Equipment Property and equipment, including additions and improvements, are recorded at cost less accumulated depreciation. Expenditures for repairs and maintenance are charged to expense as incurred. When property or equipment is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts. Gains or losses from retirements and disposals are recorded as operating income or expense. Depreciation and amortization are computed using the straight-line method. The estimated useful lives of the Company’s property and equipment are as follows: Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) Asset Category Useful Life Buildings and building improvements 3 to 50 years Plant and Equipment 1 to 20 years Production tooling 2 to 7 years Leasehold improvements Term of lease Computer equipment and software 1 to 10 years Capital Leases Term of lease The Company recognized depreciation expense of $24,873, $18,399 and $17,528 for the years ended December 31, 2016, 2015 and 2014, respectively. Goodwill and Other Intangible Assets Goodwill and other intangible assets recorded in conjunction with business combinations are based on the Company’s estimate of fair value, as of the date of acquisition. A roll forward of goodwill from December 31, 2014 to December 31, 2016 is as follows: December 31, 2014 $ 30,398 Goodwill arising from the acquisition of GPT 107 Exchange rate impact (2,740 ) December 31, 2015 $ 27,765 Goodwill adjustment arising from the acquisition of CSZ 24,622 Exchange rate impact (652 ) December 31, 2016 $ 51,735 The fair value and corresponding useful lives for acquired intangible assets are listed below as follows: Asset Category Useful Life Customer relationships 10-15 years Technology 5-10 years Production Development Costs 4 years Our business strategy largely centers on designing products based upon internally developed and purchased technology. When possible, we protect these technologies with patents. Our policy is to expense all costs associated with the development and issuance of new patents as incurred. Such costs are classified as research and development expenses in our consolidation statements of income. Patents purchased as part of a business combination are capitalized based on their fair values. Periodically, we review the recoverability and remaining lives of our capitalized patents, and if necessary, make adjustments to reported amounts, based upon unfavorable impacts from market conditions, the emergence of competitive technologies and changes in our projected business plans. A total of $12,675, $12,751 and $16,941 in other intangible assets, including capitalized patent costs, were amortized in 2016, 2015 and 2014, respectively. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) An estimate of intangible asset amortization by year, is as follows: 2017 $ 12,350 2018 9,864 2019 9,727 2020 9,276 2021 9,276 Thereafter 7,064 Impairments of Long-Lived Assets, Other Intangible Assets and Goodwill Whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable, the Company will compare the carrying amount of the asset to the recoverable amount of the asset. The recoverable amount is defined as the greater of the asset’s fair value less costs to sell or its value in use. An impairment loss is recognized if the carrying amount of an asset exceeds the recoverable or fair value amount. An assessment of fair value could utilize quoted market prices, fair value appraisals, management forecasts or discounted cash flow analyses. Annually on December 31 st Product Revenues The Company sells its products under long term supply or purchase order contracts issued by its customers. These contracts involve the sale of goods and services at fixed prices and provide for related transfer of ownership risk to the customer upon shipment from the Company’s warehouse location or in some cases upon receipt of the goods at the customer’s facility, or completion of services. Shipping and handling costs are recognized in cost of sales. With only a few minor exceptions, payment terms for these contracts range from 30 to 120 days from the date of shipment. Cash discounts for early payment are extended to customer purchases recognized within the Industrial reporting segment. Unless the payment is for a distinct good or service, any consideration paid to a customer is recognized directly against the revenue earned from that customer. For construction-type contract revenues recognized in our Industrial segment, the completed-contract method is used to determine revenue and the cost of earned revenue. The transfer of ownership upon shipment is used to determine substantial completion and the recognition of revenue for these construction-type contracts. For 2016, our revenues from sales to our three largest customers, Adient, Lear Corporation and Bosch Automotive were $192,831, $192,425 and $74,092, respectively, representing 21%, 21% and 8% of our total revenues, respectively. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) Tooling The Company incurs costs related to tooling used in the manufacture of products sold to its customers. In some cases, the Company enters into contracts with its customers whereby the Company incurs the costs to design, develop and purchase tooling and is then reimbursed by the customer under a reimbursement contract. Tooling costs that will be reimbursed by customers are included in prepaid expenses and other current assets at the lower of accumulated cost or the customer reimbursable amount. Approximately $5,604 and $5,174 of reimbursable tooling was capitalized within prepaid expenses and other current assets as of December 31, 2016 and 2015, respectively. Company-owned tooling is included in property and equipment and depreciated over its expected useful life, generally two to seven years. Management periodically evaluates the recoverability of tooling costs, based on estimated future cash flows, and makes provisions, where appropriate, for tooling costs that will not be recovered. Research and Development Expenses Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development. The Company recognizes amounts due as reimbursements for expenses as these expenses are incurred. Income Taxes We record income tax expense using the liability method which specifies that deferred tax assets and liabilities be measured each year based on the difference between the financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. A valuation allowance is provided for deferred tax assets when management considers it more likely than not that the asset will not be realized. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense. Derivative Financial Instruments – Hedge Accounting The Company accounts for some of its derivative financial instruments as cash flow hedges as defined in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 815. For derivative contracts which can be classified as a cash flow hedge, the effective potion of the change in the fair value of the derivative is recorded to accumulated other comprehensive income in the consolidated balance sheet. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive income is recorded in earnings in the consolidated statement of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. Any ineffective portion of the gain or loss is recognized in the income statement under foreign currency (loss) gain or revaluation of derivatives gain (loss). These hedging transactions and the respective correlations meet the requirements for hedge accounting. Earnings per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the respective period. The Company’s diluted earnings per common share give effect to all potential shares of Common Stock outstanding during a period that are not anti-dilutive. In computing the number of diluted shares outstanding, the treasury stock method is used in order to arrive at a net number of shares created upon the conversion of Common Stock equivalents. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) Stock Based Compensation Share based payments that involve the issuance of Common Stock to employees, including grants of employee stock options and restricted stock, are recognized in the financial statements as compensation expense based upon the fair value on the date of grant. Share based payments that are satisfied only by the payment of cash, such as stock appreciation rights, are accounted for as liabilities. The liability is reported at market value of the vested portion of the underlying units. During each period, the change in the liability is recorded as compensation expense during periods when the liability increases or income during periods in which the liability decreases. The Company’s stock based compensation expense and related deferred tax benefit were $8,147 and $2,891, respectively, for the year ended December 31, 2016, $12,316 and $3,787, respectively, for the year ended December 31, 2015, and $8,601 and $2,949, respectively, for the year ended December 31, 2014. Pension Plans The Company’s obligations and expenses for its pension plans are dependent on the Company’s selection of discount rate, expected long-term rate of return on plan assets and other assumptions used by actuaries to calculate these amounts. Subsequent Events We have evaluated subsequent events through the date that our consolidated financial statements are issued. No events have occurred that would require adjustment to or disclosure in the consolidated financial statements. |
Details of Certain Financial St
Details of Certain Financial Statement Components | 12 Months Ended |
Dec. 31, 2016 | |
Financial Statement Components [Abstract] | |
Details of Certain Financial Statement Components | Note 3 — Details of Certain Financial Statement Components December 31, 2016 2015 Inventory: Raw materials, net of reserve $ 60,525 $ 50,371 Work in process, net of reserve 13,261 4,150 Finished goods, net of reserve 31,288 29,662 $ 105,074 $ 84,183 Property and equipment: Buildings, plant and equipment $ 151,977 $ 103,841 Automobiles 861 502 Production tooling 12,991 11,702 Leasehold improvements 11,695 7,546 Computer equipment and software 21,048 17,371 Construction in progress 20,747 12,302 219,319 153,264 Less: Accumulated depreciation * (47,267 ) (34,107 ) $ 172,052 $ 119,157 Other intangible assets: Customer relationships $ 66,542 $ 68,296 Technology 35,378 29,473 Product development costs 9,602 10,286 $ 111,522 $ 108,055 Less: Accumulated amortization (53,965 ) (59,594 ) $ 57,557 $ 48,461 Accrued liabilities: Tax accruals $ 51,197 $ 18,205 Accrued warranty 5,443 4,558 Accrued employee liabilities 21,323 19,481 Liabilities from discounts and rebates 13,413 10,232 Other accrued liabilities 14,249 10,231 $ 105,625 $ 62,707 * Includes accumulated amortization of capital lease obligations. |
Cincinnati Sub-Zero Acquisition
Cincinnati Sub-Zero Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Cincinnati Sub-Zero Acquisition | Note 4 — Cincinnati Sub-Zero Acquisition CSZ develops, manufactures and sells patient temperature management systems and product testing equipment. The patient temperature management systems regulate the body temperature of medical patients during and after surgery. The product testing equipment simulates temperature, humidity, altitude and vibration conditions and is customized for use in a wide variety of industrial manufacturing applications. Results of operations for CSZ are included in the Company’s consolidated condensed financial statements beginning April 1, 2016. CSZ contributed $51,540 in product revenues and a net loss of $1,092 for the nine month period ended December 31, 2016. Note 4 – Cincinnati Sub-Zero Acquisition – (Continued) Purchase Price Allocation The purchase price of $73,593, net of cash acquired of $985, has been allocated to the values of assets acquired and liabilities assumed as of April 1, 2016. An appraisal by an independent third party valuation firm was completed to assist management in determining the fair value of acquired assets and assumed liabilities, including identifiable intangible assets. The fair values of acquired assets and assumed liabilities were determined using the cost approach that relied primarily internal sources of data to make assumptions that are not observable in the market (Level 3 inputs). The purchase price allocation was finalized during the fourth quarter of 2016. The allocation as of April 1, 2016 was as follows: Accounts receivable $ 10,790 Inventory 16,284 Prepaid expenses and other assets 1,143 Property and equipment 12,919 Customer relationships 11,700 Technology 3,200 Trade name 6,370 Goodwill 24,622 a Assumed liabilities (13,435 ) Net assets acquired 73,593 Cash acquired 985 Purchase price $ 74,578 (a) The amount of recorded goodwill includes $2,000 of consideration owed to the seller for a tax gross up. The gross contractual amount due of accounts receivable is $11,126 of which $336 is expected to be uncollectible. The purchase price allocation includes an approximate $4,000 step-up in the underlying net book value of the inventory to its fair value. This inventory was sold to customers and expensed to cost of sales during the three month period ended June 30, 2016. Supplemental Pro Forma Information The unaudited pro forma combined historical results including the amounts of CSZ’s revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2016 or January 1, 2015 are as follows: Three Months Ended Twelve Months Ended 2015 2016 2015 Product revenues $ 232,324 $ 933,505 $ 919,651 Net income $ 27,272 $ 74,485 $ 94,833 Basic earnings per share $ 0.75 $ 2.04 $ 2.63 Diluted earnings per share $ 0.75 $ 2.04 $ 2.60 The pro forma information includes adjustments for the effect of the amortization of intangible assets recognized in the acquisition. This pro forma information is not indicative of future operating results. Note 4 – Cincinnati Sub-Zero Acquisition – (Continued) Goodwill We recorded goodwill of approximately $24,622 arising from the acquisition. The acquired goodwill represents intangible assets that do not qualify for separate recognition. It is estimated that all of the goodwill recognized will be deductible for income tax purposes. Intangible Assets In conjunction with the acquisition, intangible assets of $21,270 were recorded. The Company’s estimate of the fair value of these assets at the time of the acquisition was determined with the assistance of an independent third-party valuation firm. As part of the estimated valuation, an estimated useful life for the assets was determined. Intangible assets, net consisted of the following: December 31, 2016 Gross Value Accumulated Net Value Useful Life Customer relationships $ 11,700 $ 585 $ 11,115 15 yrs Technology 3,200 390 2,810 5 -7 yrs Trade name 6,370 — 6,370 Indefinite Total $ 21,270 $ 975 $ 20,295 Amortization expense of $325 and $975 for the three and twelve months ended December 31, 2016 was recorded as follows: Three Months Ended Twelve Months Ended Product revenues $ 195 $ 585 Research and development expenses 130 390 Amortization expense for the prospective five years is estimated to be as follows: 2017 $ 1,300 2018 $ 1,300 2019 $ 1,300 2020 $ 1,300 2021 $ 1,135 Property, Plant & Equipment Property and equipment consist of the following: Asset category Useful life Amount Land Indefinite $ 1,630 Buildings 20 yrs 6,024 Machinery and equipment 5-7 yrs 3,718 Computer hardware and software 3-5 yrs 586 Assets under construction 961 $ 12,919 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 — The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following: December 31, 2016 2015 Deferred tax assets: Derivative financial instruments $ — $ 267 Net operating losses 13,643 5,525 Research and development credits 23,012 21,494 Depreciation 5,457 3,886 Valuation reserves and accrued liabilities 9,667 5,553 Foreign tax credit 6,926 1,654 Stock compensation 4,508 3,129 Inventory 1,571 1,622 Patents 218 156 Defined benefit obligation 2,306 2,011 Other credits 639 639 Other 116 10 68,063 45,946 Valuation allowance (19,304 ) (13,418 ) Deferred tax liabilities: Intangible assets (8,442 ) (10,161 ) Unrealized foreign currency exchange gains (285 ) (3,797 ) Undistributed profits of subsidiary (12,002 ) (3,254 ) Property and equipment (470 ) (696 ) Other (319 ) (342 ) (21,518 ) (18,250 ) Net deferred tax asset $ 27,241 $ 14,278 Reconciliations between the statutory Federal income tax rate of 34% and the effective rate of income tax expense for each of the three years in the period ended December 31, 2016 are as follows: Year Ended December 31, 2016 2015 2014 Statutory Federal income tax rate 34.0 % 34.0 % 34.0 % Increase (Decrease) resulting from: U.S. Taxes on foreign income, net of taxes paid credit 1.3 % 1.0 % 0.3 % Change in valuation allowance 5.3 % (1.9 %) (0.8 %) Foreign, state and local tax, net of Federal benefit 1.1 % 1.6 % 1.9 % Nondeductible expenses 2.4 % 1.8 % 1.8 % Stock option compensation — (0.1 %) (0.1 %) Research and development credits (0.7 %) (0.9 %) (0.5 %) Effect of different tax rates of foreign jurisdictions (15.0 %) (12.1 %) (10.0 %) Undistributed profits of subsidiaries 7.9 % 2.4 % — Other tax exempt income — (0.1 %) (0.9 %) Tax effects of intercompany transfers (5.3 %) — — Other (0.3 %) 0.3 % (0.1 %) Effective rate 30.7 % 26.0 % 25.6 % Note 5 — The Company has Net Operating Loss (“NOL”) carryforwards as follows: Jurisdiction Amount as of Years of Expiration U.S. Federal and state income tax $ 25,364 2018- 2035 Foreign $ 9,879 2018-2037 Foreign $ 47,707 Indefinite On April 1, 2014, we acquired all of the stock of GPT in an all cash transaction. The deferred tax assets in 2016 and 2015 related to research and development credits and the offsetting valuation allowance are primarily a result of the GPT acquisition. A portion of the U.S. Federal NOLs was incurred prior to the June 8, 1999 Preferred Financing, which qualified as a change in ownership under Section 382 of the Internal Revenue Code (“IRC”). Due to this change in ownership, the NOL accumulated prior to the change in control can only be utilized against current earnings up to a maximum annual limitation of approximately $591. As a result of the annual limitation, approximately $6,025 remaining of these carryforwards are expected to expire before ultimately becoming available to reduce future tax liabilities in addition to $13,324 in NOLs generated prior to the change in control which have already expired without being utilized. In 2014 through 2016, we incurred NOLs in Vietnam associated with the startup activities of new production facilities. In 2015 and 2016, we incurred a loss in Ukraine associated with foreign currency losses. These NOLs are expected to be utilized in 2017 through 2019 as the locations become profitable. We also incur NOLs in Luxembourg associated with our global holding company structure. Management has concluded that it is more likely than not these NOLs will not be utilized, and thus has not recognized the benefit of these NOLs. We recognize the tax benefit of stock option exercises in excess of compensation expense recorded for financial reporting purposes directly to paid-in capital only when this excess tax benefit provides a reduction to current taxes payable. In certain previous tax years, our U.S. Federal NOLs completely offset our current Federal tax liability and, therefore, we did not recognize the benefit of tax deductions allowed for stock option exercises in excess of compensation expense recognized for financial reporting purposes. As such, in those years, our deferred tax asset related to NOLs was less than the actual NOL available. In 2016, we utilized the entire U.S. Federal NOL carryforward available which included the benefit of tax deductions in excess of compensation expense for financial reporting purposes. We recorded this benefit, which totaled $7,509 and $6,681 for 2016 and 2015, respectively, directly to paid-in capital. The U.S. Federal NOL carryforwards include $0 and $22,343 for 2016 and 2015, respectively, relating to deductions taken with respect to stock option exercises in excess of amounts recognized for financial reporting purposes. The U.S. State NOL carryforwards include $17,564 and $17,213 for 2016 and 2015, respectively, relating to deductions taken with respect to stock option exercises in excess of amounts recognized for financial reporting purposes. This portion of the NOL carryforwards is not included as a component of the Company’s deferred tax asset. The earnings before income taxes and our tax provision are comprised of the following: Year Ended December 31, 2016 2015 2014 Income before income taxes : Domestic $ 12,981 $ 25,508 $ 11,170 Foreign 97,582 103,430 83,051 Total income before income taxes $ 110,563 $ 128,938 $ 94,221 Note 5 Income Taxes (Continued) Year Ended December 31, 2016 2015 2014 Current income tax expense: Federal $ 9,215 $ 8,428 $ 4,005 State and local 749 606 (15 ) Foreign 32,844 24,622 24,737 Total current income tax expense $ 42,808 $ 33,656 $ 28,727 Deferred income tax expense (benefit): Federal $ (10,597 ) $ (3,051 ) $ (576 ) State and local (742 ) (183 ) 9 Foreign 2,496 3,123 (4,058 ) Total deferred income tax expense $ (8,843 ) $ (111 ) $ (4,625 ) Total tax expense $ 33,965 $ 33,545 $ 24,102 The Company has recognized deferred taxes related to earnings from foreign subsidiaries, except for certain foreign subsidiaries for which the earnings are permanently reinvested. Quantification of the deferred tax liability, if any, associated with permanently reinvested basis differences is not practicable. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of December 31, 2016, the Company’s tax years from 2008 through 2016 are subject to examination by the various tax authorities. With limited exceptions, as of December 31, 2016, the Company is no longer subject to U.S. Federal, state, local, or foreign examinations by tax authorities for years before 2008. Tax audits are currently ongoing in Germany for tax years 2008 through 2011. During 2015, to entice the Company to construct a new facility in Macedonia, the government of Macedonia granted the Company a tax holiday that released the Company from the obligation to pay corporate income taxes for a ten year period, subject to certain limitations. The amount of corporate income tax savings realized by the Company as a result of this tax holiday during 2016 and 2015, respectively, was zero as a result of operating losses generated during each period. The aggregate dollar effect and per share effect of the corporate income tax holiday during 2016 and 2015 was immaterial. At December 31, 2016, 2015 and 2014, the Company had total unrecognized tax benefits of $4,486, $4,443 and $4,651, respectively, all of which, if recognized, would affect the effective income tax rates. The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 4,443 $ 4,651 $ 2,241 Additions based on tax position related to current year 80 — 43 Additions based on tax positions related to prior year 366 262 2,991 Reductions from settlements and statute of limitation expiration (299 ) (19 ) (432 ) Effect of foreign currency translation (104 ) (451 ) (192 ) Balance at end of year $ 4,486 $ 4,443 $ 4,651 The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2016, 2015 and 2014 income tax related interest and penalties were insignificant. The Company believes that it is reasonably possible that there may be a decrease to its unrecognized tax benefits in the next 12 months due to audit settlements and statute expirations, but the amount expected to reverse is insignificant in relation to the consolidated financial statements. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 — Amended Credit Agreement The Company, together with certain direct and indirect subsidiaries, have an outstanding Credit Agreement (the “Credit Agreement”) with a consortium of lenders and Bank of America, N.A., as administrative agent. The Credit Agreement was most recently amended on December 15, 2016 (the “Amended Credit Agreement”). As a result of such amendment, the aggregate principal available for borrowing under the secured revolving credit facility increased from $250,000 to $350,000. All subsidiary borrowers and guarantors participating in the Amended Credit Agreement have entered into a related pledge and security agreement. The security agreement grants a security interest to the lenders in substantially all of the personal property of subsidiaries designated as borrowers to secure their respective obligations under the Amended Credit Agreement, including stock and membership interest of specified subsidiaries (limited to 66% of the stock in case of certain non-U.S. subsidiaries). The Amended Credit Agreement restricts the amount of dividend payments the Company can make to shareholders. As of December 31, 2016, Gentherm had $195,405 available to borrow under the U.S. Revolving Notes, which included outstanding letters of credit totaling $595 as of December 31, 2016. The Amended Credit Agreement requires the Company to maintain a minimum Consolidated Interest Coverage Ratio. The Company must also maintain a Consolidated Leverage Ratio. Definitions for these financial ratios are included in the Amended Credit Agreement. Under the Amended Credit Agreement, U.S. Dollar denominated loans bear interest at either a base rate (“Base Rate Loans”) or Eurocurrency rate (“Eurocurrency Rate Loans”), plus a margin (“Applicable Rate”). The base rate is equal to the highest of the Federal Funds Rate (0.55% at December 31, 2016) plus 0.50%, Bank of America’s prime rate (3.75% at December 31, 2016), or a one month Eurocurrency rate (0.00% at December 31, 2016) plus 1.00%. The Eurocurrency rate for loans denominated in U.S. Dollars is equal to the London Interbank Offered Rate (0.77% at December 31, 2016). All loans denominated in a currency other than the U.S. Dollar must be Eurocurrency Rate Loans. Interest is payable at least quarterly. The Applicable Rate varies based on the Consolidated Leverage Ratio reported by the Company. As long as the Company is not in default of the terms and conditions of the Amended Credit Agreement, the lowest and highest possible Applicable Rate is 1.25% and 2.00%, respectively, for Eurocurrency Rate Loans and 0.25% and 1.00%, respectively, for Base Rate Loans. The Company also has two fixed interest rate loans with the German Investment Corporation (“DEG”), a subsidiary of KfW banking group, a German government-owned development bank. DEG China Loan The first, a loan we used to fund capital investments in China (the “DEG China Loan”), is subject to semi-annual principal payments that began March, 2015 and end September, 2019. Under the terms of the DEG China Loan, the Company must maintain a minimum Debt-to-Equity Ratio, Current Ratio and Debt Service Coverage Ratio, as defined by the DEG China Loan agreement, based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Automotive Systems (China) Ltd. Note 6 — Debt (Continued) DEG Vietnam Loan The Company’s second fixed interest rate senior loan agreement with DEG was used to finance the construction and set up of the Vietnam production facility (“DEG Vietnam Loan”). The DEG Vietnam Loan is subject to semi-annual principal payments beginning November, 2017 and ending May, 2023. Under the terms of the DEG Vietnam Loan, the Company must maintain a minimum Currency Ratio, Equity Ratio and Enhanced Equity Ratio, as defined by the DEG Vietnam Loan agreement, based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Vietnam Co. Ltd. As of December 31, 2016, we were in compliance with all terms as outlined in the Credit Agreement, DEG China Loan and DEG Vietnam Loan. The following table summarizes the Company’s debt at December 31, 2016. Interest Principal Credit Agreement: U.S. Revolving Note (U.S. Dollar Denominations) 2.27 % $ 154,000 DEG China Loan 4.25 % 2,525 DEG Vietnam Loan 5.21 % 15,000 Total debt $ 171,525 Current portion (2,092 ) Long-term debt, less current maturities $ 169,433 The following table summarizes the Company’s debt at December 31, 2015. Interest Principal Credit Agreements: U.S. Term Loan 2.11 % $ 46,875 Europe Term Loan 1.50 % 20,369 U.S. Revolving Note (U.S. Dollar Denominations) 1.92 % 12,000 DEG China Loan 4.25 % 3,497 DEG Vietnam Loan 5.21 % 15,000 Total debt $ 97,741 Current portion (4,909 ) Long-term debt, less current maturities $ 92,832 The scheduled principal maturities of our debt as of December 31, 2016 is as follows: Year U.S. DEG China Loan DEG Vietnam Loan Total 2017 $ — $ 842 $ 1,250 $ 2,092 2018 — 842 2,500 3,342 2019 — 841 2,500 3,341 2020 — — 2,500 2,500 2021 154,000 — 2,500 156,500 Thereafter — — 3,750 3,750 Total $ 154,000 $ 2,525 $ 15,000 $ 171,525 |
Accounting for Stock Based Comp
Accounting for Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Accounting for Stock Based Compensation | Note 7 — On May 16, 2013, the Compensation Committee of the Company’s Board of Directors (the “Board”) approved the Gentherm Incorporated 2013 Equity Incentive Plan (the “2013 Plan”), covering 3,500,000 shares of our Common Stock. The 2013 Plan permits the granting of various awards including stock options (including both nonqualified options and incentive options), stock appreciation rights (“SARs”), restricted stock and restricted stock units, performance shares and certain other awards to employees, outside directors and consultants and advisors of the Company. All shares of our Common Stock that remained available for issuance under the Amended and Restated 2006 Stock Incentive Plan (the “2006 Plan”) and the Gentherm Incorporated 2011 Equity Incentive Plan (the “2011 Plan”), totaling 2,315,578 shares in the aggregate, were reduced to zero; however certain options under the 2011 and 2006 Plans are still outstanding. As of December 31, 2016 the Company had an aggregate of 835,700 shares of Common Stock available to issue under the 2013 Plan. All plans are administered by the Compensation Committee of the Board. The selection of participants, allotment of shares, determination of price and other conditions are determined by the Compensation Committee at its sole discretion, in order to attract and retain personnel instrumental to the success of the Company. During the three year period ended December 31, 2016, the Company has issued stock options, stock appreciation rights (“SARs”) and restricted stock awards to employees, directors and consultants. These awards become available to the recipient upon the satisfaction of a vesting condition, either based on a period of service or based on the performance of a specific achievement. For equity based awards with a service condition, the requisite service period typically ranges between three to five years for employees and consultants and one year for directors. As of December 31, 2016, 66,400 performance based, unvested SARs were outstanding. All other outstanding, unvested equity based awards were service based. Equity based award vesting may be accelerated at the discretion of the Board. Total unrecognized compensation cost related to nonvested options, restricted stock and SARs outstanding under all of the Company’s equity plans was $17,258 and $20,117 as of December 31, 2016 and 2015, respectively. That cost is expected to be recognized over a weighted average period of three years. Compensation expense for the years ended December 31, 2016, 2015 and 2014 was $8,147, $12,316 and $8,601, respectively. No share-based payment arrangements expired during the three-year period ended December 31, 2016. If Gentherm were to realize expired shared-based payment arrangements, they would be reported as a forfeit in the activity roll forward tables below. Stock Options The following table summarizes stock option activity during the three year period ended December 31, 2016: Note 7 — Options Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2013 1,943,176 $ 12.19 $ Granted 605,000 30.15 Exercised (731,142 ) 9.84 Forfeited (142,500 ) 18.94 Outstanding at December 31, 2014 1,674,534 $ 19.14 5.10 $ 29,886 Granted 524,534 41.97 Exercised (571,723 ) 16.21 Forfeited (96,500 ) 28.47 Outstanding at December 31, 2015 1,530,845 $ 27.46 4.97 $ 30,573 Granted 862,000 40.87 Exercised (112,875 ) 13.24 Forfeited (176,500 ) 39.32 Outstanding at December 31, 2016 2,103,470 $ 32.72 4.86 $ 12,265 Exercisable at December 31, 2014 632,034 $ 10.13 3.97 $ 16,744 Exercisable at December 31, 2015 439,561 $ 12.18 3.51 $ 15,480 Exercisable at December 31, 2016 675,152 $ $21.40 3.45 $ 9,646 The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model in order to measure the compensation cost associated with the award. This model incorporates certain assumptions for inputs including a risk-free interest rate, expected dividend yield of the underlying Common Stock, expected option life and expected volatility in the market value of the underlying Common Stock. The following assumptions were used for options issued in the following periods: 2016 2015 2014 Expected volatility 37% 35% 37% Weighted average expected volatility 37% 35% 37% Expected lives 3 yrs. 3 yrs. 3 yrs. Risk-free interest rate 0.90-1.07% 1.00% 0.60-1.00% Expected dividend yield none none none Expected volatilities are based on the historical volatility of the Company’s Common Stock. The Company uses historical exercise data and several other factors in developing an assumption for the expected lives of stock options, including the average holding period of outstanding options and their remaining terms. The risk-free interest rate is based upon quoted market yields for United States Treasury debt securities. The expected dividend yield is based upon the Company’s history of having never issued a dividend, the limitations to issue a dividend under terms of the Credit Agreement and management’s current expectation regarding future dividends. We do not expect any of the options granted to be forfeited for purposes of computing fair value. The weighted-average grant-date fair value of options granted during the year ended December 31, 2016, 2015 and 2014 was $10.74, $10.60 and $7.88, respectively. The total intrinsic value of options exercised during the year ended December 31, 2016, 2015 and 2014 was $2,456, $18,745 and $21,249, respectively. Note 7 — Restricted Stock The following table summarizes restricted stock activity during the three year period ended December 31, 2016: Unvested Restricted Shares Shares Weighted- Nonvested at December 31, 2013 243,967 $ 17.43 Granted 104,584 27.79 Vested (129,092 ) 16.45 Forfeited (42,375 ) 19.77 Outstanding at December 31, 2014 177,084 $ 23.70 Granted 108,026 44.01 Vested (82,084 ) 23.86 Forfeited (24,000 ) 30.87 Outstanding at December 31, 2015 179,026 $ 34.92 Granted 141,784 39.73 Vested (100,330 ) 32.47 Forfeited (9,999 ) 40.99 Outstanding at December 31, 2016 210,481 $ 39.02 The compensation cost associated with restricted shares is estimated on the date of grant using quoted market prices (Level 1 input). The total fair value of restricted shares vested in 2016, 2015 and 2014 was $3,865, $4,088 and $5,329, respectively. Note 7 — Stock Appreciation Rights The following table summarizes SARs activity during the three year period ended December 31, 2016: Stock Appreciation Rights Units Weighted- Weighted- Aggregate Outstanding at December 31, 2013 495,000 $ 19.19 Granted 754,000 34.70 Exercised (68,750 ) 19.10 Forfeited (120,000 ) 21.46 Outstanding at December 31, 2014 1,060,250 $ 29.97 6.11 $ 9,991 Granted 259,600 43.97 Exercised (167,500 ) 23.90 Forfeited (102,500 ) 27.82 Outstanding at December 31, 2015 1,049,850 $ 34.61 5.46 $ 13,425 Granted 244,000 40.64 Exercised (18,750 ) 24.28 Forfeited (30,500 ) 28.23 Outstanding at December 31, 2016 1,244,600 $ 36.11 4.80 $ 3,511 Exercisable at December 31, 2014 35,000 $ 19.43 5.53 $ 602 Exercisable at December 31, 2015 153,575 $ 38.12 5.59 $ 1,425 Exercisable at December 31, 2016 424,992 $ 34.49 4.39 $ 2,315 The total intrinsic value of SARs converted during the year ended December 31, 2016, 2015 and 2014 was $261, $4,185 and $2,072, respectively |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 8 — Earnings per share The Company’s diluted earnings per share give effect to all potential common shares outstanding during a period that do not have an anti-dilutive impact to the calculation. The following summarizes the shares included in the dilutive shares as disclosed in the statements of income: Year ended December 31, 2016 2015 2014 Weighted average number of shares for calculation of basic EPS – Common Stock 36,448,138 36,031,792 35,411,608 Stock options under equity incentive plans 152,665 443,310 637,723 Weighted average number of shares for calculation of diluted EPS – Common Stock 36,600,803 36,475,102 36,049,331 The accompanying table represents Common Stock issuable upon the exercise of certain stock options and that have been excluded from the diluted earnings calculation because the effect of their inclusion would be anti-dilutive. Year ended December 31, 2016 2015 2014 Stock options outstanding for equity incentive plans 1,314,784 17,534 155,000 See Note 7 for information about the Company’s different equity incentive plans. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — The Company’s operating leases cover primarily buildings and underlying real estate, software subscriptions, office equipment and automobiles. A summary of lease and construction commitments as of December 31, 2016, under all non-cancelable operating leases with terms exceeding one year is as follows: 2017 $ 10,291 2018 7,599 2019 4,255 2020 2,835 2021 1,610 2022 or later 4,864 Total $ 31,454 Rent expense under all of the Company’s operating leases was $7,479, $6,660 and $6,331 for 2016, 2015 and 2014, respectively. We are subject to litigation from time to time in the ordinary course of our business; however there is no current material pending litigation to which we are a party as of December 31, 2016. In December 2015, we settled an ongoing legal dispute with UnicCredit Bank regarding a currency related swap agreement and related offsetting derivative contract. See Note 14 for additional information regarding the settlement of these agreements. No material legal proceeding was terminated, settled or otherwise resolved during the fiscal year ended December 31, 2016. |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Dec. 31, 2016 | |
Warrants And Rights Note Disclosure [Abstract] | |
Shareholder Rights Plan | Note 10 — The Company’s Board has the authority to issue up to 4,991,000 shares of Preferred Stock and to determine the price, rights (including conversion rights), preferences and privileges of those shares without any further vote or action by the shareholders. Consistent with this authority, in January, 2009 our Board adopted a Shareholder Rights Plan (as amended the “Rights Plan”) in which one purchase right was distributed as a dividend on each share of Common Stock held of record as of the close of business on February 10, 2009 (the “Rights”). The Rights Plan will expire in January, 2019. If exercisable, each Right will entitle its holder to purchase from the Company one one-thousandth of a share of a newly created Series B Preferred Stock of the Company for $20.00 (the “Purchase Price”). The Rights will become exercisable if any person or group becomes the beneficial owner of 15% or more of the Company’s Common Stock or has commenced a tender or exchange offer which, if consummated, would result in any person or group becoming the beneficial owner of 15% or more of the Company’s Common Stock. If any person or group becomes the beneficial owner of 15% or more of the Company’s Common Stock, each right will entitle its holder, other than the acquiring person, to purchase a number of shares of the Company’s or the acquirer’s Common Stock having a value of twice the Purchase Price. The Rights are deemed attached to the certificates representing outstanding shares of Common Stock. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 11 — 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 (see Note 2). As discussed in Note 4, Gentherm acquired CSZ on April 1, 2016. The acquisition enhances key elements of our business strategy by expanding the breadth of products derived from core thermal technologies and the markets in which they are applied, such as medical equipment and environmental testing chambers. The Company’s reportable segments are as follows: 1. Automotive — this segment represents the design, development, manufacturing and sales of automotive seat comfort systems, specialized automotive cable systems and certain automotive and non-automotive thermal convenience products. 2. Industrial — the combined operating results of GPT, CSZ and Gentherm’s advanced research and development division. Advanced research and development includes efforts focused on improving the efficiency of thermoelectric technologies and advanced heating wire technology as well as other applications. The segment includes government sponsored research projects. 3. Reconciling Items — include corporate selling, general and administrative costs and acquisition transaction costs. Note 11 — Segment Reporting (Continued) The tables below present segment information about the reported product revenues and operating income of the Company for years ended December 31, 2016, 2015 and 2014. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of December 31, 2016, goodwill assigned to our Automotive and Industrial segments were $20,962 and $30,773, respectively. As of December 31, 2015, goodwill assigned to our Automotive and Industrial segments were $21,614 and $6,151, respectively. Automotive Industrial Reconciling Consolidated 2016: Product revenues $ 847,436 $ 70,164 $ — $ 917,600 Depreciation and amortization 31,826 3,789 2,149 37,764 Operating income (loss) 174,035 (16,710 ) (51,206 ) 106,119 2015: Product revenues $ 810,567 $ 45,878 $ — $ 856,445 Depreciation and amortization 27,251 1,726 2,052 31,029 Operating income (loss) 170,358 (2,461 ) (46,578 ) 121,319 2014: Product revenues $ 787,065 $ 24,235 $ — $ 811,300 Depreciation and amortization 30,016 2,114 2,899 35,029 Operating income (loss) 144,645 (9,661 ) (36,550 ) 98,434 The Industrial operating loss is net of reimbursement for developmental expense of $241, $2,483 and $2,383 for the years ended 2016, 2015 and 2014, respectively. Reconciling items include selling, general and administrative costs of $39,059, $32,116 and $24,433, respectively, for the years ended December 31, 2016, 2015 and 2014 and acquisition costs of $743, $0 and $1,075 for the years ended December 31, 2016, 2015 and 2014, respectively. Note 11 — Segment Reporting (Continued) Revenue (based on shipment destination) by geographic area is as follows: 2016 % 2015 % 2014 % United States $ 449,065 49 % $ 393,206 46 % $ 361,706 45 % China 80,493 9 % 76,864 9 % 69,910 9 % South Korea 75,396 8 % 84,758 10 % 89,515 11 % Germany 70,258 8 % 74,003 9 % 90,243 11 % Japan 45,103 5 % 46,058 5 % 47,528 6 % Czech Republic 38,164 4 % 28,273 3 % 25,738 3 % Canada 37,954 4 % 27,076 3 % 20,293 2 % United Kingdom 28,540 3 % 25,952 3 % 24,712 3 % Mexico 22,767 2 % 28,274 3 % 19,590 2 % Other 69,860 8 % 71,981 9 % 62,065 8 % Total Non U.S. 468,535 51 % 463,239 54 % 449,594 56 % $ 917,600 100 % $ 856,445 100 % $ 811,300 100 % We rely on three customers, two domestic and one foreign, to derive a significant portion of our product revenues. The table below lists the percentage of total product revenues generated from sales to these customers: 2016 2015 2014 Adient (domestic) 21 % 23 % 24 % Lear (domestic) 21 % 22 % 21 % Bosch (foreign) 8 % 9 % 9 % |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Post Retirement Benefit Plans | Note 12 — On August 8, 2008 the Company established The Executive Nonqualified Defined Benefit Plan of Gentherm Incorporated (the “Plan”), an unfunded executive pension plan, with an effective date of April 1, 2008. The Company’s Chief Executive Officer, is the only participant in the Plan which will, if fully vested, provide for 15 annual retirement benefit payments of $300,000 each beginning January 1, 2018. The participant will become entitled to receive such retirement benefit payments, or a portion thereof, through his continuous service to the Company over a six year period starting on April 1, 2011. The Company records a projected benefit obligation representing the present value of future plan benefits when earned by the participant. The following table sets forth the benefit obligation, amounts recognized in the Company’s financial statements and the principal assumptions used: 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 2,898 $ 2,474 Service cost 387 379 Interest cost 98 80 Actuarial (gain) loss 36 (35 ) Benefit obligation at end of year $ 3,419 $ 2,898 Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) The entire benefit obligation from the Plan is classified as a non-current liability within pension benefit obligations in the Company’s consolidated balance sheet. Service and interest cost is included in selling, general and administrative expenses in the Company’s consolidated statements of income and actuarial gains and losses are included the Company’s consolidated balance sheet as part of accumulated other comprehensive income within shareholders’ equity. Actuarial gains or losses are amortized to selling, general and administrative expense in the Company’s consolidated statements of income based on the average future service life of the Plan using the corridor method. A discount rate assumption of 3.25%, 3.40% and 3.25% was used to determine the benefit obligation for the years ended December 31, 2016, 2015 and 2014, respectively. A discount rate assumption of 3.40%, 3.25% and 4.25% was used to determine and the net periodic service cost for years ended December 31, 2016, 2015 and 2014, respectively. We do not expect contributions to be paid to the Plan during the next fiscal year. Although the Plan is not funded, the Company has established a separate trust having the sole purpose of paying benefits under the Plan. The only asset of the trust is a corporate-owned life insurance policy (“COLI”). The COLI is valued at fair value using quoted prices listed in active markets (Level 1 input based on the U.S. GAAP fair value hierarchy). The policy value of the COLI was $2,112 and $1,993 as of December 31, 2015 and 2014, respectively, and was included in other non-current assets. Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Service cost $ 387 $ 379 $ 335 Interest cost 98 80 78 Amortization of actuarial losses — 27 — Net periodic benefit cost $ 485 $ 486 $ 413 Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) Pretax amounts recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014 are as follows 2016 2015 2014 Actuarial Losses/(gains) $ 36 $ (35) $ 213 Amortization of actuarial losses — (27) — $ 36 $ (62) $ 213 Tax benefit of $14 was recognized in other comprehensive income related to the Plan for the year ended December 31, 2016. Tax expense of $23 was recognized in other comprehensive income related to the Plan for the year ended December 31, 2015. Tax benefit of $121 was recognized in other comprehensive income related to the Plan for the years ended December 31, 2014. Pretax unrecognized actuarial losses recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost were $302 and $266 as of December 31, 2016 and 2015, respectively. No amount of pretax unrecognized actuarial loss recorded in accumulated other comprehensive income as of December 31, 2016 are expected to be recognized as components of net periodic benefit cost in the year ending December 31, 2017. Gentherm GmbH has an established defined benefit plan for retired and current members of its executive management team. Gentherm GmbH records a projected benefit obligation representing the present value of future plan benefits when earned by the participant. The following table sets forth the benefit obligation and amounts recognized in the Company’s financial statements: 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 6,980 $ 8,120 Service cost — — Interest cost 154 142 Paid pension distributions (261 ) (257 ) Actuarial (gains)/losses 691 (182 ) Past service cost — — Exchange rate impact (238 ) (843 ) Benefit obligation at end of year $ 7,326 $ 6,980 The following table sets forth the fair value of the plan assets for the periods ending December 31, 2016 and 2015: 2016 2015 Change in plan assets: Plan assets at beginning of year $ 3,333 $ 3,615 Actual return on plan assets 125 126 Contributions 261 257 Paid pension distributions (261 ) (257 ) Actuarial gains/(losses) (27 ) (28 ) Exchange rate impact (105 ) (380 ) Plan assets at end of year $ 3,326 $ 3,333 Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) The $4,000 net liability from the Gentherm GmbH plan is classified as a noncurrent liability in pension benefit obligation. Pretax amounts recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Actuarial (gains)/losses $ 718 $ (154) $ 1,916 Amortization of actuarial (losses)/gains (48 ) (59) 166 Amortization of prior service cost — (572) — $ (670 ) $ (785) $ 2,082 Tax benefit of $171 was recognized in other comprehensive income related to the Gentherm GmbH defined benefit plan for the year ended December 31, 2016. Tax expense of $211 and tax benefit of $559 were recognized in other comprehensive income for the years ended December 31, 2015 and 2014, respectively. Pretax unrecognized actuarial losses recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost were $2,406 and $1,821 as of December 31, 2016 and 2015, respectively. We expect $73 of pretax unrecognized actuarial loss recorded in accumulated other comprehensive income as of December 31, 2016 to be recognized as components of net periodic benefit cost in the year ending December 31, 2017. Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Service cost $ — — 304 Interest cost 154 142 181 Return on plan assets (125 ) (126 ) (89 ) Amortization of prior service cost — 572 — Amortization of actuarial loss (gains) 48 59 (166 ) Net periodic benefit cost $ 77 647 230 The Gentherm GmbH defined benefit plan is underfunded by $4,000 and $3,647 as of December 31, 2016 and 2015, respectively. The net periodic benefit cost is included in selling, general and administrative expenses in the Company’s consolidated statements of income and actuarial gains and losses are included the Company’s consolidated balance sheet as part of accumulated other comprehensive income within shareholders’ equity. Actuarial gains or losses are amortized to selling, general and administrative expense in the Company’s consolidated statements of income using the corridor method. The following table describes the actuarial assumptions used to determine the benefit obligation and the net periodic service cost: 2016 2015 Discount rate 1.69 % 2.21 % Expected long term rate of return on plan assets 3.40 % 3.70 % Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) Plan assets are comprised of Gentherm GmbH’s pension insurance policies and are pledged to the beneficiaries of the plan. A market valuation technique, based on observable underlying insurance charges, is used to determine the fair value of the pension plan assets (Level 2). The expected return on plan assets assumption used to calculate Gentherm GmbH’s pension benefit obligation was determined using actual returns realized on plan assets in the prior year. We do not expect contributions to be paid to the Gentherm GmbH defined benefit plan during the next fiscal year. The schedule of expected pension payments made to Gentherm GmbH defined benefit plan participants over the next 10 years is as follows: Year 2017 $ 258 2018 257 2019 255 2020 253 2021 251 2022 - 2026 1,238 Total $ 2,512 Gentherm has adopted a 401(k) plan to provide all eligible employees a means to accumulate retirement savings on a tax-advantaged basis, and eligible executive officers can participate in this plan on the same basis as other participants. Participants may defer specified portions of their compensation. On a discretionary basis, the Company matches a portion of the employee contributions. The Plan also allows for additional discretionary contributions. Gentherm made $1,289, $959 and $543 in matching contributions to the 401(k) plan in 2016, 2015 and 2014, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 13 — The Company bases fair value on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have adopted a 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 are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. 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. Except for derivative instruments (see Note 14), pension liabilities, pension plan assets and a corporate owned life insurance policy (see Note 12), the Company has no financial assets and liabilities that are carried at fair value at December 31, 2016 and 2015. The carrying amounts of financial instruments comprising cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the relatively short maturity of such instruments. 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). Note 13 — Fair Value Measurement (Continued) As of December 31, 2016 and 2015, the carrying values of the Company’s Credit Agreement indebtedness were not materially different than their estimated fair values because the interest rates on variable rate debt approximated rates currently available to the Company (see Note 6). Discount rates used to measure the fair value of Gentherm’s DEG Vietnam Loan and DEG China Loan are based on quoted swap rates. As of December 31, 2016, the carrying values of the DEG Vietnam Loan and DEG China Loan were $15,000 and $2,525, respectively, as compared to an estimated fair value of $14,900 and $2,600, respectively. As of December 31, 2015, the carrying value of the DEG Vietnam Loan and DEG China Loan were $15,000 and $3,497, as compared to an estimated fair value of $15,100 and $3,600, respectively. Certain Company assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 14 — Derivative Financial Instruments We are exposed to market risk from changes in foreign currency exchange rates, short-term interest rates and price fluctuations of certain material commodities such as copper. Market risks for changes in interest rates relate primarily to our debt obligations under our Amended 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 European Euro, Mexican Peso, Canadian Dollar, Hungarian Forint, Macedonian Denar, Ukrainian Hryvnia, Japanese Yen, Chinese Renminbi, Korean Won 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 maximum length of time over which we hedge our exposure to foreign currency exchange risks is one year. We had foreign currency derivative contracts with a notional value of $29,538 and $0 outstanding at December 31, 2016 and 2015, respectively, The maximum length of time over which we hedge our exposure to price fluctuations in material commodities is two years. We had copper commodity swap contracts with a notional value of $407 and $4,885 outstanding at December 31, 2016 and 2015, respectively. We do not enter into derivative financial instruments for speculative or trading purposes. Our 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 balance sheet. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive loss is recorded in earnings in the consolidated statement of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. We record the ineffective portion of foreign currency hedging instruments, if any, to foreign currency gain (loss) in the consolidated statements of income. See Note 16 for the amount of unrealized loss associated with copper commodity derivatives reported in accumulated other comprehensive income as of December 31, 2015 that was reclassified into earnings during 2016. Though we continuously monitor the hedging program, derivative positions and hedging strategies, foreign currency forward exchange agreements have not always been designated as hedging instruments for accounting purposes. The Company uses an income approach to value derivative instruments, analyzing quoted market prices to calculate the forward values and then discounts such forward values to the present value using benchmark rates at commonly quoted intervals for the instrument’s full term. Note 14 — Derivative Financial Instruments (Continued) In December 2015, Gentherm GmbH (“Gentherm Germany”), a subsidiary of Gentherm Incorporated (the “Company”) entered into an agreement settling all claims against UniCredit Bank AG pertaining to a 10 year currency related swap (“CRS”) entered into a by Gentherm Germany in March 2008. Prior to the settlement, a lawsuit filed by Gentherm GmbH in 2011 was pending appeal at the Higher Regional Court in Munich, Germany. As a result of the settlement, the CRS and its related liability to Gentherm have been terminated and Gentherm’s remaining interest in an offsetting derivative contract designed to limit the market risk of payments due under the CRS was sold. Gentherm realized a one-time, pre-tax gain of $9,949 in the fourth quarter of 2015. Gentherm made a final cash settlement payment of $7,593 during the fourth quarter of 2015. Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2016 is as follows: Asset Derivatives Liability Derivatives Net Asset/ Hedge Designation Fair Value Hierarchy Balance Sheet Fair Balance Sheet Fair Foreign currency derivatives Cash flow hedge Level 2 Current liabilities $ (1,395 ) $ (1,395 ) Commodity derivatives Cash flow hedge Level 2 Current assets $ 18 $ 18 Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2015 is as follows: Liability Derivatives Net Asset/ Hedge Designation Fair Value Hierarchy Balance Sheet Fair Commodity derivatives Cash flow hedge Level 2 Current liabilities $ (725 ) $ (725 ) Information related to the effect of derivative instrument`s on our consolidated statements of income is as follows: Location Year Year Foreign currency derivatives Product revenues — (1,102 ) Cost of sales (608 ) (1,782 ) Selling, general and administrative 139 (477 ) Other comprehensive (loss) income (1,395 ) 10 Foreign currency gain 102 351 Total foreign currency derivatives $ (1,762 ) $ (3,000 ) CRS Revaluation of derivatives $ — $ — Gain on settlement of derivatives — 9,949 Total CRS $ — $ 9,949 Commodity derivatives Cost of sales $ (666 ) $ (123 ) Other comprehensive income (loss) $ 743 $ (725 ) Total commodity derivatives $ 77 $ (848 ) We did not incur any hedge ineffectiveness during the years ended December 31, 2016 and 2015. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Pronouncements Disclosure | Note 15 — New Accounting Pronouncements Income Taxes In October, 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 modifies the current prohibition to recognize deferred income taxes from differences between the tax basis of assets in the buyer’s tax jurisdiction and their cost resulting from an intra-entity transfer from one tax-paying component to another tax-paying component of the same consolidated group. Under current GAAP, deferred income taxes for intra-entity asset transfers are not recognized until the asset is sold to an outside party. ASU 2016-16 allows entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years and interim periods beginning after December 15, 2017. For entities that issue interim financial statements and whose current fiscal year end date is December 31, 2016, early adoption can be made during the three month period ending March 31, 2017. The amendments in ASU 2016-16 should be applied on a modified retrospective basis through a cumulate-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the amendments in ASU 2016-16 to determine the effect it will have on the Company's consolidated financial statements. Statement of Cash Flows In August, 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on the classification of eight specific cash receipt and cash payment transactions in the statement of cash flows. The Company is currently evaluating the following transactions to determine the effect ASU 2016-15 will have on the Company’s Consolidated Statements of Cash Flows: 1) Debt extinguishment payments and debt prepayments are to be shown as cash outflows for financing activities. Presently, Gentherm classifies debt extinguishment payments within operating activities. 2) Payments made to settle contingent consideration liabilities not made soon after the acquisition date of a business combination should be recognized as cash outflows for financing activities up to the amount of the liability recognized at the acquisition date. Payments, or the portion of a payment, to settle contingent consideration liabilities that exceed the amount of the liability recognized at the acquisition date will be recognized as cash outflows for operating activities. 3) Cash receipts from the settlement of insurance claims, excluding those related to corporate-owned life insurance policies shall be classified on the basis of the related insurance coverage. For example, proceeds received to cover claims issued under product recall liability insurance would be classified as cash inflows from operating activities. 4) Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities. The other cash receipt and cash payment transactions addressed by this update are not expected to materially impact the Company. For public companies, ASU 2016-15 is effective for fiscal years and interim periods beginning after December 15, 2017 and must be applied retrospectively to all periods presented. Early adoption of the amendments in this update are permitted. Note 15 — New Accounting Pronouncements (Continued) Stock Compensation In March, 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. Regarding forfeitures, an entity-wide accounting policy election can be made to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016. The Company expects the impact from adopting this update to be immaterial to the consolidated financial statements. Leases In February, 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize on their balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. Payments to be made in optional periods should be included in the measurement of lease assets and liabilities if the lessee is reasonably certain it will exercise an option to extend the lease or not exercise an option to terminate the lease. While ASU 2016-02 continues to differentiate between finance or capital leases and operating leases, the principal change from current lease accounting guidance is that lease assets and liabilities arising from operating leases should be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update are permitted. Lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of practical expedients, including the ability to use hindsight in evaluating lessee options to extend or terminate a lease. An entity that elects to apply the practical expedients will be required to recognize a right-of-use asset and lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payment that were tracked and disclosed under previous GAAP. We are currently in the process of determining the impact the implementation of ASU 2016-02 will have on the Company’s financial statements. Balance Sheet Classification of Deferred Taxes In November, 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 no longer requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet. Instead, for each tax paying component and within each tax jurisdiction all deferred tax liabilities and assets, as well as related valuation allowance, shall be offset and presented as a single noncurrent amount. Entities will continue to not offset deferred tax liabilities and assets attributable to different tax-paying components of the entity or to different tax jurisdictions. ASU 2015-17 is effective for fiscal years and interim periods beginning after December 15, 2016, though earlier application is permitted. The update can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company has adopted ASU 2015-17 and applied it retrospectively to each of the three years in the period ended December 31, 2016. Note 15 — New Accounting Pronouncements (Continued) Inventory – Simplifying the Measurement of Inventory In July, 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory.” The update requires that inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method shall be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption of the amendments in this update are permitted. The Company has adopted ASU 2015-11for the period ended December 31, 2016. Adoption of the update did not impact any of the periods presented the Company’s consolidated financial statements. Revenue from Contracts with Customers. In May, 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update’s core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Companies are to use a five-step contract review model to ensure revenue gets recognized, measured and disclosed in accordance with this principle. The FASB has recently issued several amendments to the new standard, including a one-year deferral of the original effective date, and new methods for identifying performance obligation aimed at reducing the cost and complexity or compliance. The update permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. ASU 2014-09 will be effective for fiscal years and interim periods beginning after December 15, 2017. Gentherm is executing a plan to complete the five-step contract review process for all existing contracts with customers, across all business units. While we continue to assess all potential impacts from the update, we currently believe the most significant impact relates to our accounting for options that give customers the right to purchase additional goods under long-term supply agreements, in the future. Due to the complexity of certain of our automotive supply contracts, the actual revenue recognition treatment for customer purchase options will depend on contract-specific terms and could vary from other contracts that are similar in nature. We are currently in the process of determining the total impact implementation of ASU 2014-09 and any corresponding amendments will have on the Company’s financial statements. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Note 16 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Reclassification adjustments and other activities impacting accumulated other comprehensive income (loss) during the year ended December 31, 2016, December 31, 2015 and December 31, 2014 are as follows: Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2015 $ (2,060 ) $ (49,381 ) $ (229 ) $ — $ (51,670 ) Other comprehensive income (loss) before reclassifications (723 ) (16,678 ) 154 (1,351 ) (18,598 ) Income tax effect of other comprehensive income (loss) before reclassifications 185 297 (57 ) 363 788 Amounts reclassified from accumulated other comprehensive income (loss) into net income 48 — 589 a (44 ) a 593 Income taxes reclassified into net income — — (216 ) 12 (204 ) Net current period other comprehensive income (loss) (490 ) (16,381 ) 470 (1,020 ) (17,421 ) Balance at December 31, 2016 $ (2,550 ) $ (65,762 ) $ 241 $ (1,020 ) $ (69,091 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2014 $ (2,673 ) $ (23,060 ) $ — $ (10 ) $ (25,743 ) Other comprehensive income (loss) before reclassifications 761 (25,904 ) (849 ) (1,746 ) (27,738 ) Income tax effect of other comprehensive income (loss) before reclassifications (234 ) (417 ) 543 473 365 Amounts reclassified from accumulated other comprehensive income (loss) into net income 86 — 124 a 1,756 a 1,966 Income taxes reclassified into net income — — (47 ) (473 ) (520 ) Net current period other comprehensive income (loss) 613 (26,321 ) (229 ) 10 (25,927 ) Balance at December 31, 2015 $ (2,060 ) $ (49,381 ) $ (229 ) $ — $ (51,670 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. Note 16 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – (Continued) Defined Benefit Pension Plans Foreign Currency Translation Adjustments Interest Rate Hedge Foreign Currency Hedge Derivatives Total Balance at December 31, 2013 $ (1,058 ) $ (4,064 ) $ (81 ) $ — $ (5,203 ) Other comprehensive income (loss) before reclassifications (2,129 ) (25,044 ) — (10 ) (27,183 ) Income tax effect of other comprehensive income (loss) before reclassifications 680 6,048 — — 6,728 Amounts reclassified from accumulated other comprehensive income (loss) into net income (166 ) — 81 a — (85 ) Income taxes reclassified into net income — — — — — Net current period other comprehensive income (loss) (1,615 ) (18,996 ) 81 (10 ) (20,540 ) Balance at December 31, 2014 $ (2,673 ) $ (23,060 ) $ — $ (10 ) $ (25,743 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. We expect all of the existing gains and losses related to foreign currency and commodity derivatives reported in accumulated other comprehensive income as of December 31, 2016 to be reclassified into earnings during the twelve month period ending December 31, 2017. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | GENTHERM INCORPORATED SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2016, 2015 and 2014 (In thousands) Description Balance at Charged to Charged to Deductions Balance at Allowance for Doubtful Accounts Year Ended December 31, 2014 1,166 2,043 (1,098 ) (898 ) 1,213 Year Ended December 31, 2015 1,213 4,174 (373 ) (4,059 ) 955 Year Ended December 31, 2016 955 1,469 (270 ) (763 ) 1,391 Allowance for Deferred Income Tax Assets Year Ended December 31, 2014 2,199 — 16,674 (836 ) 18,037 Year Ended December 31, 2015 18,037 — (2,436 ) (2,183 ) 13,418 Year Ended December 31, 2016 13,418 5,706 180 — 19,304 Reserve for Inventory Year Ended December 31, 2014 2,933 2,204 (181 ) (154 ) 4,802 Year Ended December 31, 2015 4,802 815 (249 ) (1,060 ) 4,308 Year Ended December 31, 2016 4,308 876 (68 ) (326 ) 4,790 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The consolidated financial statements at and for the years ended December 31, 2016, 2015 and 2014, reflect the consolidated financial position and consolidated operating results of the Company. 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. Intercompany accounts have been eliminated in consolidation. Certain reclassifications of prior years’ amounts have been made to conform with the current year’s presentation. Specifically, long-term supply contract price downs were reclassified from accounts receivable to accrued liabilities and the presentation of prior year deferred taxes amounts was changed to reflect the adoption of ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes.” See Note 15 for information about the accounting impact adoption of the update had on Gentherm’s consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of less than 90 days to be cash equivalents. Cash balances in individual banks may exceed the federally insured limit by the Federal Deposit Insurance Corporation. The Company had cash and cash equivalents of $162,881 and $140,088 held in foreign jurisdictions as of December 31, 2016 and 2015, respectively. |
Disclosures About Fair Value of Financial Instruments | Disclosures About Fair Value of Financial Instruments The carrying amounts of financial instruments comprising cash and cash equivalents, short-term investments and accounts receivable approximate fair value because of the short maturities of these instruments. The carrying amount of the Company’s long-term debt approximates its fair value because interest charged on the loan balance is variable. See Note 13 for information about the techniques used to assess the fair value of financial assets and liabilities, including our fixed rate debt instruments. |
Use of Estimates | Use of Estimates The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Accrued Warranty Costs | Accrued Warranty Costs 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 claims already filed by customers, the warranty accrual is adjusted quarterly to reflect management’s best estimate of future claims. The following is a reconciliation of the changes in accrued warranty costs for the reporting period: December 31, 2016 2015 Balance at beginning of year $ 4,558 $ 5,221 Warranty claims paid or retired (1,096 ) (1,654 ) Expense 2,053 1,339 Adjustment due to currency translation (72 ) (348 ) Balance at end of year $ 5,443 $ 4,558 |
Concentration of Credit Risk | Concentration of Credit Risk Financial assets, which subject the Company to concentration of credit risk, consist primarily of cash equivalents, short-term investments and accounts receivable. Cash equivalents consist primarily of money market funds managed by major financial services companies. The credit risk for these cash equivalents is considered low. The Company does not require collateral from its customers. As of December 31, 2016, Lear Corporation, Adient (formed pursuant to a 2016 spin-off of Johnson Controls’ automotive seating and interiors business) and Faurecia comprised 25%, 24% and 7% respectively, of the Company’s accounts receivable balance. As of December 31, 2015, Lear Corporation, Adient, and Faurecia comprised 28%, 27% and 5% respectively, of the Company’s accounts receivable balance. These accounts are currently in good standing. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We record an allowance for doubtful accounts once exposure to collection risk of an accounts receivable is specifically identified. We analyze the length of time an account receivable is outstanding, as well as a customer’s payment history and ability to pay to determine the need to record an allowance for doubtful accounts. |
Inventory | Inventory The Company’s inventory is measured at the lower of cost or market, with cost being determined using the first-in first-out basis. Raw materials, consumables and commodities are measured at cost of purchase and unfinished and finished goods are measured at cost of production, using the weighted average method. If the net realizable value expected on the reporting date is below cost, a write-down is recorded to adjust inventory to its net realizable value. We recognize a reserve for obsolete and slow moving inventories based on estimates of future sales and an inventory item’s capacity to be repurposed for a different use. We consider the number of months supply on hand based on current planned requirements, uncommitted future projections and historical usage in estimating the inventory reserve. Additional provisions are made for supplier claims for obsolete materials, prototype inventory, spare or customer service inventory and, for all periods other than at year-end, estimates for physical inventory adjustments. The following is a reconciliation of the changes in the inventory reserve: December 31, 2016 2015 Balance at beginning of year $ 4,308 $ 4,802 Expense 876 815 Inventory write off (326 ) (1,060 ) Adjustment due to currency translation (68 ) (249 ) Balance at end of year $ 4,790 $ 4,308 |
Property and Equipment | Property and Equipment Property and equipment, including additions and improvements, are recorded at cost less accumulated depreciation. Expenditures for repairs and maintenance are charged to expense as incurred. When property or equipment is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts. Gains or losses from retirements and disposals are recorded as operating income or expense. Depreciation and amortization are computed using the straight-line method. The estimated useful lives of the Company’s property and equipment are as follows: Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) Asset Category Useful Life Buildings and building improvements 3 to 50 years Plant and Equipment 1 to 20 years Production tooling 2 to 7 years Leasehold improvements Term of lease Computer equipment and software 1 to 10 years Capital Leases Term of lease The Company recognized depreciation expense of $24,873, $18,399 and $17,528 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets recorded in conjunction with business combinations are based on the Company’s estimate of fair value, as of the date of acquisition. A roll forward of goodwill from December 31, 2014 to December 31, 2016 is as follows: December 31, 2014 $ 30,398 Goodwill arising from the acquisition of GPT 107 Exchange rate impact (2,740 ) December 31, 2015 $ 27,765 Goodwill adjustment arising from the acquisition of CSZ 24,622 Exchange rate impact (652 ) December 31, 2016 $ 51,735 The fair value and corresponding useful lives for acquired intangible assets are listed below as follows: Asset Category Useful Life Customer relationships 10-15 years Technology 5-10 years Production Development Costs 4 years Our business strategy largely centers on designing products based upon internally developed and purchased technology. When possible, we protect these technologies with patents. Our policy is to expense all costs associated with the development and issuance of new patents as incurred. Such costs are classified as research and development expenses in our consolidation statements of income. Patents purchased as part of a business combination are capitalized based on their fair values. Periodically, we review the recoverability and remaining lives of our capitalized patents, and if necessary, make adjustments to reported amounts, based upon unfavorable impacts from market conditions, the emergence of competitive technologies and changes in our projected business plans. A total of $12,675, $12,751 and $16,941 in other intangible assets, including capitalized patent costs, were amortized in 2016, 2015 and 2014, respectively. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) An estimate of intangible asset amortization by year, is as follows: 2017 $ 12,350 2018 9,864 2019 9,727 2020 9,276 2021 9,276 Thereafter 7,064 |
Impairments of Long-Lived Assets, Other Intangible Assets and Goodwill | Impairments of Long-Lived Assets, Other Intangible Assets and Goodwill Whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable, the Company will compare the carrying amount of the asset to the recoverable amount of the asset. The recoverable amount is defined as the greater of the asset’s fair value less costs to sell or its value in use. An impairment loss is recognized if the carrying amount of an asset exceeds the recoverable or fair value amount. An assessment of fair value could utilize quoted market prices, fair value appraisals, management forecasts or discounted cash flow analyses. Annually on December 31 st |
Product Revenues | Product Revenues The Company sells its products under long term supply or purchase order contracts issued by its customers. These contracts involve the sale of goods and services at fixed prices and provide for related transfer of ownership risk to the customer upon shipment from the Company’s warehouse location or in some cases upon receipt of the goods at the customer’s facility, or completion of services. Shipping and handling costs are recognized in cost of sales. With only a few minor exceptions, payment terms for these contracts range from 30 to 120 days from the date of shipment. Cash discounts for early payment are extended to customer purchases recognized within the Industrial reporting segment. Unless the payment is for a distinct good or service, any consideration paid to a customer is recognized directly against the revenue earned from that customer. For construction-type contract revenues recognized in our Industrial segment, the completed-contract method is used to determine revenue and the cost of earned revenue. The transfer of ownership upon shipment is used to determine substantial completion and the recognition of revenue for these construction-type contracts. For 2016, our revenues from sales to our three largest customers, Adient, Lear Corporation and Bosch Automotive were $192,831, $192,425 and $74,092, respectively, representing 21%, 21% and 8% of our total revenues, respectively. |
Tooling | Tooling The Company incurs costs related to tooling used in the manufacture of products sold to its customers. In some cases, the Company enters into contracts with its customers whereby the Company incurs the costs to design, develop and purchase tooling and is then reimbursed by the customer under a reimbursement contract. Tooling costs that will be reimbursed by customers are included in prepaid expenses and other current assets at the lower of accumulated cost or the customer reimbursable amount. Approximately $5,604 and $5,174 of reimbursable tooling was capitalized within prepaid expenses and other current assets as of December 31, 2016 and 2015, respectively. Company-owned tooling is included in property and equipment and depreciated over its expected useful life, generally two to seven years. Management periodically evaluates the recoverability of tooling costs, based on estimated future cash flows, and makes provisions, where appropriate, for tooling costs that will not be recovered. |
Research and Development Expenses | Research and Development Expenses Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development. The Company recognizes amounts due as reimbursements for expenses as these expenses are incurred. |
Income Taxes | Income Taxes We record income tax expense using the liability method which specifies that deferred tax assets and liabilities be measured each year based on the difference between the financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. A valuation allowance is provided for deferred tax assets when management considers it more likely than not that the asset will not be realized. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense. In October, 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 modifies the current prohibition to recognize deferred income taxes from differences between the tax basis of assets in the buyer’s tax jurisdiction and their cost resulting from an intra-entity transfer from one tax-paying component to another tax-paying component of the same consolidated group. Under current GAAP, deferred income taxes for intra-entity asset transfers are not recognized until the asset is sold to an outside party. ASU 2016-16 allows entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years and interim periods beginning after December 15, 2017. For entities that issue interim financial statements and whose current fiscal year end date is December 31, 2016, early adoption can be made during the three month period ending March 31, 2017. The amendments in ASU 2016-16 should be applied on a modified retrospective basis through a cumulate-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the amendments in ASU 2016-16 to determine the effect it will have on the Company's consolidated financial statements. |
Derivative Financial Instruments - Hedge Accounting | Derivative Financial Instruments – Hedge Accounting The Company accounts for some of its derivative financial instruments as cash flow hedges as defined in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 815. For derivative contracts which can be classified as a cash flow hedge, the effective potion of the change in the fair value of the derivative is recorded to accumulated other comprehensive income in the consolidated balance sheet. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive income is recorded in earnings in the consolidated statement of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. Any ineffective portion of the gain or loss is recognized in the income statement under foreign currency (loss) gain or revaluation of derivatives gain (loss). These hedging transactions and the respective correlations meet the requirements for hedge accounting. |
Earnings Per Share | Earnings per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the respective period. The Company’s diluted earnings per common share give effect to all potential shares of Common Stock outstanding during a period that are not anti-dilutive. In computing the number of diluted shares outstanding, the treasury stock method is used in order to arrive at a net number of shares created upon the conversion of Common Stock equivalents. |
Stock Based Compensation | Stock Based Compensation Share based payments that involve the issuance of Common Stock to employees, including grants of employee stock options and restricted stock, are recognized in the financial statements as compensation expense based upon the fair value on the date of grant. Share based payments that are satisfied only by the payment of cash, such as stock appreciation rights, are accounted for as liabilities. The liability is reported at market value of the vested portion of the underlying units. During each period, the change in the liability is recorded as compensation expense during periods when the liability increases or income during periods in which the liability decreases. The Company’s stock based compensation expense and related deferred tax benefit were $8,147 and $2,891, respectively, for the year ended December 31, 2016, $12,316 and $3,787, respectively, for the year ended December 31, 2015, and $8,601 and $2,949, respectively, for the year ended December 31, 2014. Stock Compensation In March, 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. Regarding forfeitures, an entity-wide accounting policy election can be made to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016. The Company expects the impact from adopting this update to be immaterial to the consolidated financial statements. |
Pension Plans | Pension Plans The Company’s obligations and expenses for its pension plans are dependent on the Company’s selection of discount rate, expected long-term rate of return on plan assets and other assumptions used by actuaries to calculate these amounts. |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that our consolidated financial statements are issued. No events have occurred that would require adjustment to or disclosure in the consolidated financial statements. |
Statement of Cash Flows | Statement of Cash Flows In August, 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on the classification of eight specific cash receipt and cash payment transactions in the statement of cash flows. The Company is currently evaluating the following transactions to determine the effect ASU 2016-15 will have on the Company’s Consolidated Statements of Cash Flows: 1) Debt extinguishment payments and debt prepayments are to be shown as cash outflows for financing activities. Presently, Gentherm classifies debt extinguishment payments within operating activities. 2) Payments made to settle contingent consideration liabilities not made soon after the acquisition date of a business combination should be recognized as cash outflows for financing activities up to the amount of the liability recognized at the acquisition date. Payments, or the portion of a payment, to settle contingent consideration liabilities that exceed the amount of the liability recognized at the acquisition date will be recognized as cash outflows for operating activities. 3) Cash receipts from the settlement of insurance claims, excluding those related to corporate-owned life insurance policies shall be classified on the basis of the related insurance coverage. For example, proceeds received to cover claims issued under product recall liability insurance would be classified as cash inflows from operating activities. 4) Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities. The other cash receipt and cash payment transactions addressed by this update are not expected to materially impact the Company. For public companies, ASU 2016-15 is effective for fiscal years and interim periods beginning after December 15, 2017 and must be applied retrospectively to all periods presented. Early adoption of the amendments in this update are permitted. |
Leases | Leases In February, 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize on their balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. Payments to be made in optional periods should be included in the measurement of lease assets and liabilities if the lessee is reasonably certain it will exercise an option to extend the lease or not exercise an option to terminate the lease. While ASU 2016-02 continues to differentiate between finance or capital leases and operating leases, the principal change from current lease accounting guidance is that lease assets and liabilities arising from operating leases should be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update are permitted. Lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of practical expedients, including the ability to use hindsight in evaluating lessee options to extend or terminate a lease. An entity that elects to apply the practical expedients will be required to recognize a right-of-use asset and lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payment that were tracked and disclosed under previous GAAP. We are currently in the process of determining the impact the implementation of ASU 2016-02 will have on the Company’s financial statements. |
Balance Sheet Classification of Deferred Taxes | Balance Sheet Classification of Deferred Taxes In November, 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 no longer requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet. Instead, for each tax paying component and within each tax jurisdiction all deferred tax liabilities and assets, as well as related valuation allowance, shall be offset and presented as a single noncurrent amount. Entities will continue to not offset deferred tax liabilities and assets attributable to different tax-paying components of the entity or to different tax jurisdictions. ASU 2015-17 is effective for fiscal years and interim periods beginning after December 15, 2016, though earlier application is permitted. The update can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company has adopted ASU 2015-17 and applied it retrospectively to each of the three years in the period ended December 31, 2016. |
Inventory - Simplifying the Measurement of Inventory | Inventory – Simplifying the Measurement of Inventory In July, 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory.” The update requires that inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method shall be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption of the amendments in this update are permitted. The Company has adopted ASU 2015-11for the period ended December 31, 2016. Adoption of the update did not impact any of the periods presented the Company’s consolidated financial statements. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers. In May, 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update’s core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Companies are to use a five-step contract review model to ensure revenue gets recognized, measured and disclosed in accordance with this principle. The FASB has recently issued several amendments to the new standard, including a one-year deferral of the original effective date, and new methods for identifying performance obligation aimed at reducing the cost and complexity or compliance. The update permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. ASU 2014-09 will be effective for fiscal years and interim periods beginning after December 15, 2017. Gentherm is executing a plan to complete the five-step contract review process for all existing contracts with customers, across all business units. While we continue to assess all potential impacts from the update, we currently believe the most significant impact relates to our accounting for options that give customers the right to purchase additional goods under long-term supply agreements, in the future. Due to the complexity of certain of our automotive supply contracts, the actual revenue recognition treatment for customer purchase options will depend on contract-specific terms and could vary from other contracts that are similar in nature. We are currently in the process of determining the total impact implementation of ASU 2014-09 and any corresponding amendments will have on the Company’s financial statements. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reconciliation of Changes in Accrued Warranty Costs | 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 claims already filed by customers, the warranty accrual is adjusted quarterly to reflect management’s best estimate of future claims. The following is a reconciliation of the changes in accrued warranty costs for the reporting period: December 31, 2016 2015 Balance at beginning of year $ 4,558 $ 5,221 Warranty claims paid or retired (1,096 ) (1,654 ) Expense 2,053 1,339 Adjustment due to currency translation (72 ) (348 ) Balance at end of year $ 5,443 $ 4,558 |
Reconciliation of Changes in Inventory Reserve | The Company’s inventory is measured at the lower of cost or market, with cost being determined using the first-in first-out basis. Raw materials, consumables and commodities are measured at cost of purchase and unfinished and finished goods are measured at cost of production, using the weighted average method. If the net realizable value expected on the reporting date is below cost, a write-down is recorded to adjust inventory to its net realizable value. We recognize a reserve for obsolete and slow moving inventories based on estimates of future sales and an inventory item’s capacity to be repurposed for a different use. We consider the number of months supply on hand based on current planned requirements, uncommitted future projections and historical usage in estimating the inventory reserve. Additional provisions are made for supplier claims for obsolete materials, prototype inventory, spare or customer service inventory and, for all periods other than at year-end, estimates for physical inventory adjustments. The following is a reconciliation of the changes in the inventory reserve: December 31, 2016 2015 Balance at beginning of year $ 4,308 $ 4,802 Expense 876 815 Inventory write off (326 ) (1,060 ) Adjustment due to currency translation (68 ) (249 ) Balance at end of year $ 4,790 $ 4,308 |
Estimated Useful Lives of Property and Equipment | Depreciation and amortization are computed using the straight-line method. The estimated useful lives of the Company’s property and equipment are as follows: Asset Category Useful Life Buildings and building improvements 3 to 50 years Plant and Equipment 1 to 20 years Production tooling 2 to 7 years Leasehold improvements Term of lease Computer equipment and software 1 to 10 years Capital Leases Term of lease |
Roll Forward of Goodwill from Acquisition | Goodwill and other intangible assets recorded in conjunction with business combinations are based on the Company’s estimate of fair value, as of the date of acquisition. A roll forward of goodwill from December 31, 2014 to December 31, 2016 is as follows: December 31, 2014 $ 30,398 Goodwill arising from the acquisition of GPT 107 Exchange rate impact (2,740 ) December 31, 2015 $ 27,765 Goodwill adjustment arising from the acquisition of CSZ 24,622 Exchange rate impact (652 ) December 31, 2016 $ 51,735 |
Fair Value and Corresponding Useful Lives for Acquired Intangibles Assets | The fair value and corresponding useful lives for acquired intangible assets are listed below as follows: Asset Category Useful Life Customer relationships 10-15 years Technology 5-10 years Production Development Costs 4 years |
Estimate of Total Intangible Asset Amortization | Amortization expense for the prospective five years is estimated to be as follows: 2017 $ 1,300 2018 $ 1,300 2019 $ 1,300 2020 $ 1,300 2021 $ 1,135 |
W.E.T | |
Estimate of Total Intangible Asset Amortization | An estimate of intangible asset amortization by year, is as follows: 2017 $ 12,350 2018 9,864 2019 9,727 2020 9,276 2021 9,276 Thereafter 7,064 |
Details of Certain Financial 27
Details of Certain Financial Statement Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Statement Components [Abstract] | |
Details of Certain Financial Statement Components | December 31, 2016 2015 Inventory: Raw materials, net of reserve $ 60,525 $ 50,371 Work in process, net of reserve 13,261 4,150 Finished goods, net of reserve 31,288 29,662 $ 105,074 $ 84,183 Property and equipment: Buildings, plant and equipment $ 151,977 $ 103,841 Automobiles 861 502 Production tooling 12,991 11,702 Leasehold improvements 11,695 7,546 Computer equipment and software 21,048 17,371 Construction in progress 20,747 12,302 219,319 153,264 Less: Accumulated depreciation * (47,267 ) (34,107 ) $ 172,052 $ 119,157 Other intangible assets: Customer relationships $ 66,542 $ 68,296 Technology 35,378 29,473 Product development costs 9,602 10,286 $ 111,522 $ 108,055 Less: Accumulated amortization (53,965 ) (59,594 ) $ 57,557 $ 48,461 Accrued liabilities: Tax accruals $ 51,197 $ 18,205 Accrued warranty 5,443 4,558 Accrued employee liabilities 21,323 19,481 Liabilities from discounts and rebates 13,413 10,232 Other accrued liabilities 14,249 10,231 $ 105,625 $ 62,707 * Includes accumulated amortization of capital lease obligations. |
Cincinnati Sub-Zero Acquisiti28
Cincinnati Sub-Zero Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation | The purchase price allocation was finalized during the fourth quarter of 2016. The allocation as of April 1, 2016 was as follows: Accounts receivable $ 10,790 Inventory 16,284 Prepaid expenses and other assets 1,143 Property and equipment 12,919 Customer relationships 11,700 Technology 3,200 Trade name 6,370 Goodwill 24,622 a Assumed liabilities (13,435 ) Net assets acquired 73,593 Cash acquired 985 Purchase price $ 74,578 (a) The amount of recorded goodwill includes $2,000 of consideration owed to the seller for a tax gross up. |
Supplemental Pro Forma Information | The unaudited pro forma combined historical results including the amounts of CSZ’s revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2016 or January 1, 2015 are as follows: Three Months Ended Twelve Months Ended 2015 2016 2015 Product revenues $ 232,324 $ 933,505 $ 919,651 Net income $ 27,272 $ 74,485 $ 94,833 Basic earnings per share $ 0.75 $ 2.04 $ 2.63 Diluted earnings per share $ 0.75 $ 2.04 $ 2.60 |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following: December 31, 2016 Gross Value Accumulated Net Value Useful Life Customer relationships $ 11,700 $ 585 $ 11,115 15 yrs Technology 3,200 390 2,810 5 -7 yrs Trade name 6,370 — 6,370 Indefinite Total $ 21,270 $ 975 $ 20,295 |
Summary of Amortization Expense | Amortization expense of $325 and $975 for the three and twelve months ended December 31, 2016 was recorded as follows: Three Months Ended Twelve Months Ended Product revenues $ 195 $ 585 Research and development expenses 130 390 |
Estimate of Total Intangible Asset Amortization | Amortization expense for the prospective five years is estimated to be as follows: 2017 $ 1,300 2018 $ 1,300 2019 $ 1,300 2020 $ 1,300 2021 $ 1,135 |
Summary of Property and Equipment | Property and equipment consist of the following: Asset category Useful life Amount Land Indefinite $ 1,630 Buildings 20 yrs 6,024 Machinery and equipment 5-7 yrs 3,718 Computer hardware and software 3-5 yrs 586 Assets under construction 961 $ 12,919 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Deferred Tax Liabilities | The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following: December 31, 2016 2015 Deferred tax assets: Derivative financial instruments $ — $ 267 Net operating losses 13,643 5,525 Research and development credits 23,012 21,494 Depreciation 5,457 3,886 Valuation reserves and accrued liabilities 9,667 5,553 Foreign tax credit 6,926 1,654 Stock compensation 4,508 3,129 Inventory 1,571 1,622 Patents 218 156 Defined benefit obligation 2,306 2,011 Other credits 639 639 Other 116 10 68,063 45,946 Valuation allowance (19,304 ) (13,418 ) Deferred tax liabilities: Intangible assets (8,442 ) (10,161 ) Unrealized foreign currency exchange gains (285 ) (3,797 ) Undistributed profits of subsidiary (12,002 ) (3,254 ) Property and equipment (470 ) (696 ) Other (319 ) (342 ) (21,518 ) (18,250 ) Net deferred tax asset $ 27,241 $ 14,278 |
Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate | Reconciliations between the statutory Federal income tax rate of 34% and the effective rate of income tax expense for each of the three years in the period ended December 31, 2016 are as follows: Year Ended December 31, 2016 2015 2014 Statutory Federal income tax rate 34.0 % 34.0 % 34.0 % Increase (Decrease) resulting from: U.S. Taxes on foreign income, net of taxes paid credit 1.3 % 1.0 % 0.3 % Change in valuation allowance 5.3 % (1.9 %) (0.8 %) Foreign, state and local tax, net of Federal benefit 1.1 % 1.6 % 1.9 % Nondeductible expenses 2.4 % 1.8 % 1.8 % Stock option compensation — (0.1 %) (0.1 %) Research and development credits (0.7 %) (0.9 %) (0.5 %) Effect of different tax rates of foreign jurisdictions (15.0 %) (12.1 %) (10.0 %) Undistributed profits of subsidiaries 7.9 % 2.4 % — Other tax exempt income — (0.1 %) (0.9 %) Tax effects of intercompany transfers (5.3 %) — — Other (0.3 %) 0.3 % (0.1 %) Effective rate 30.7 % 26.0 % 25.6 % |
Net Operating Loss Carryforwards | The Company has Net Operating Loss (“NOL”) carryforwards as follows: Jurisdiction Amount as of Years of Expiration U.S. Federal and state income tax $ 25,364 2018- 2035 Foreign $ 9,879 2018-2037 Foreign $ 47,707 Indefinite |
Earnings Before Income Taxes | The earnings before income taxes and our tax provision are comprised of the following: Year Ended December 31, 2016 2015 2014 Income before income taxes : Domestic $ 12,981 $ 25,508 $ 11,170 Foreign 97,582 103,430 83,051 Total income before income taxes $ 110,563 $ 128,938 $ 94,221 |
Provision for Income Taxes | Year Ended December 31, 2016 2015 2014 Current income tax expense: Federal $ 9,215 $ 8,428 $ 4,005 State and local 749 606 (15 ) Foreign 32,844 24,622 24,737 Total current income tax expense $ 42,808 $ 33,656 $ 28,727 Deferred income tax expense (benefit): Federal $ (10,597 ) $ (3,051 ) $ (576 ) State and local (742 ) (183 ) 9 Foreign 2,496 3,123 (4,058 ) Total deferred income tax expense $ (8,843 ) $ (111 ) $ (4,625 ) Total tax expense $ 33,965 $ 33,545 $ 24,102 |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 4,443 $ 4,651 $ 2,241 Additions based on tax position related to current year 80 — 43 Additions based on tax positions related to prior year 366 262 2,991 Reductions from settlements and statute of limitation expiration (299 ) (19 ) (432 ) Effect of foreign currency translation (104 ) (451 ) (192 ) Balance at end of year $ 4,486 $ 4,443 $ 4,651 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Company's Debt | The following table summarizes the Company’s debt at December 31, 2016. Interest Principal Credit Agreement: U.S. Revolving Note (U.S. Dollar Denominations) 2.27 % $ 154,000 DEG China Loan 4.25 % 2,525 DEG Vietnam Loan 5.21 % 15,000 Total debt $ 171,525 Current portion (2,092 ) Long-term debt, less current maturities $ 169,433 The following table summarizes the Company’s debt at December 31, 2015. Interest Principal Credit Agreements: U.S. Term Loan 2.11 % $ 46,875 Europe Term Loan 1.50 % 20,369 U.S. Revolving Note (U.S. Dollar Denominations) 1.92 % 12,000 DEG China Loan 4.25 % 3,497 DEG Vietnam Loan 5.21 % 15,000 Total debt $ 97,741 Current portion (4,909 ) Long-term debt, less current maturities $ 92,832 |
Principal Maturities of Debt | The scheduled principal maturities of our debt as of December 31, 2016 is as follows: Year U.S. DEG China Loan DEG Vietnam Loan Total 2017 $ — $ 842 $ 1,250 $ 2,092 2018 — 842 2,500 3,342 2019 — 841 2,500 3,341 2020 — — 2,500 2,500 2021 154,000 — 2,500 156,500 Thereafter — — 3,750 3,750 Total $ 154,000 $ 2,525 $ 15,000 $ 171,525 |
Accounting for Stock Based Co31
Accounting for Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity during the three year period ended December 31, 2016: Options Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2013 1,943,176 $ 12.19 $ Granted 605,000 30.15 Exercised (731,142 ) 9.84 Forfeited (142,500 ) 18.94 Outstanding at December 31, 2014 1,674,534 $ 19.14 5.10 $ 29,886 Granted 524,534 41.97 Exercised (571,723 ) 16.21 Forfeited (96,500 ) 28.47 Outstanding at December 31, 2015 1,530,845 $ 27.46 4.97 $ 30,573 Granted 862,000 40.87 Exercised (112,875 ) 13.24 Forfeited (176,500 ) 39.32 Outstanding at December 31, 2016 2,103,470 $ 32.72 4.86 $ 12,265 Exercisable at December 31, 2014 632,034 $ 10.13 3.97 $ 16,744 Exercisable at December 31, 2015 439,561 $ 12.18 3.51 $ 15,480 Exercisable at December 31, 2016 675,152 $ $21.40 3.45 $ 9,646 |
Fair Value of Option on Date of Grant | The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model in order to measure the compensation cost associated with the award. This model incorporates certain assumptions for inputs including a risk-free interest rate, expected dividend yield of the underlying Common Stock, expected option life and expected volatility in the market value of the underlying Common Stock. The following assumptions were used for options issued in the following periods: 2016 2015 2014 Expected volatility 37% 35% 37% Weighted average expected volatility 37% 35% 37% Expected lives 3 yrs. 3 yrs. 3 yrs. Risk-free interest rate 0.90-1.07% 1.00% 0.60-1.00% Expected dividend yield none none none |
Restricted Stock Activity | The following table summarizes restricted stock activity during the three year period ended December 31, 2016: Unvested Restricted Shares Shares Weighted- Nonvested at December 31, 2013 243,967 $ 17.43 Granted 104,584 27.79 Vested (129,092 ) 16.45 Forfeited (42,375 ) 19.77 Outstanding at December 31, 2014 177,084 $ 23.70 Granted 108,026 44.01 Vested (82,084 ) 23.86 Forfeited (24,000 ) 30.87 Outstanding at December 31, 2015 179,026 $ 34.92 Granted 141,784 39.73 Vested (100,330 ) 32.47 Forfeited (9,999 ) 40.99 Outstanding at December 31, 2016 210,481 $ 39.02 |
SARs Activity | The following table summarizes SARs activity during the three year period ended December 31, 2016: Stock Appreciation Rights Units Weighted- Weighted- Aggregate Outstanding at December 31, 2013 495,000 $ 19.19 Granted 754,000 34.70 Exercised (68,750 ) 19.10 Forfeited (120,000 ) 21.46 Outstanding at December 31, 2014 1,060,250 $ 29.97 6.11 $ 9,991 Granted 259,600 43.97 Exercised (167,500 ) 23.90 Forfeited (102,500 ) 27.82 Outstanding at December 31, 2015 1,049,850 $ 34.61 5.46 $ 13,425 Granted 244,000 40.64 Exercised (18,750 ) 24.28 Forfeited (30,500 ) 28.23 Outstanding at December 31, 2016 1,244,600 $ 36.11 4.80 $ 3,511 Exercisable at December 31, 2014 35,000 $ 19.43 5.53 $ 602 Exercisable at December 31, 2015 153,575 $ 38.12 5.59 $ 1,425 Exercisable at December 31, 2016 424,992 $ 34.49 4.39 $ 2,315 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Shares of Consolidated Condensed Statements of Income | The following summarizes the shares included in the dilutive shares as disclosed in the statements of income: Year ended December 31, 2016 2015 2014 Weighted average number of shares for calculation of basic EPS – Common Stock 36,448,138 36,031,792 35,411,608 Stock options under equity incentive plans 152,665 443,310 637,723 Weighted average number of shares for calculation of diluted EPS – Common Stock 36,600,803 36,475,102 36,049,331 |
Common Stock Issuable upon Exercise of Certain Stock Options | The accompanying table represents Common Stock issuable upon the exercise of certain stock options and that have been excluded from the diluted earnings calculation because the effect of their inclusion would be anti-dilutive. Year ended December 31, 2016 2015 2014 Stock options outstanding for equity incentive plans 1,314,784 17,534 155,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | The Company’s operating leases cover primarily buildings and underlying real estate, software subscriptions, office equipment and automobiles. A summary of lease and construction commitments as of December 31, 2016, under all non-cancelable operating leases with terms exceeding one year is as follows: 2017 $ 10,291 2018 7,599 2019 4,255 2020 2,835 2021 1,610 2022 or later 4,864 Total $ 31,454 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 and operating income of the Company for years ended December 31, 2016, 2015 and 2014. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of December 31, 2016, goodwill assigned to our Automotive and Industrial segments were $20,962 and $30,773, respectively. As of December 31, 2015, goodwill assigned to our Automotive and Industrial segments were $21,614 and $6,151, respectively. Automotive Industrial Reconciling Consolidated 2016: Product revenues $ 847,436 $ 70,164 $ — $ 917,600 Depreciation and amortization 31,826 3,789 2,149 37,764 Operating income (loss) 174,035 (16,710 ) (51,206 ) 106,119 2015: Product revenues $ 810,567 $ 45,878 $ — $ 856,445 Depreciation and amortization 27,251 1,726 2,052 31,029 Operating income (loss) 170,358 (2,461 ) (46,578 ) 121,319 2014: Product revenues $ 787,065 $ 24,235 $ — $ 811,300 Depreciation and amortization 30,016 2,114 2,899 35,029 Operating income (loss) 144,645 (9,661 ) (36,550 ) 98,434 |
Product Revenues Information by Geographic Area | Revenue (based on shipment destination) by geographic area is as follows: 2016 % 2015 % 2014 % United States $ 449,065 49 % $ 393,206 46 % $ 361,706 45 % China 80,493 9 % 76,864 9 % 69,910 9 % South Korea 75,396 8 % 84,758 10 % 89,515 11 % Germany 70,258 8 % 74,003 9 % 90,243 11 % Japan 45,103 5 % 46,058 5 % 47,528 6 % Czech Republic 38,164 4 % 28,273 3 % 25,738 3 % Canada 37,954 4 % 27,076 3 % 20,293 2 % United Kingdom 28,540 3 % 25,952 3 % 24,712 3 % Mexico 22,767 2 % 28,274 3 % 19,590 2 % Other 69,860 8 % 71,981 9 % 62,065 8 % Total Non U.S. 468,535 51 % 463,239 54 % 449,594 56 % $ 917,600 100 % $ 856,445 100 % $ 811,300 100 % |
Percentage of Total Product Revenues Generated from Customers | We rely on three customers, two domestic and one foreign, to derive a significant portion of our product revenues. The table below lists the percentage of total product revenues generated from sales to these customers: 2016 2015 2014 Adient (domestic) 21 % 23 % 24 % Lear (domestic) 21 % 22 % 21 % Bosch (foreign) 8 % 9 % 9 % |
Pension and Other Post Retire35
Pension and Other Post Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit Obligation, Amounts Recognized Company's Financial Statements and Principal Assumptions | The Company records a projected benefit obligation representing the present value of future plan benefits when earned by the participant. The following table sets forth the benefit obligation, amounts recognized in the Company’s financial statements and the principal assumptions used: 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 2,898 $ 2,474 Service cost 387 379 Interest cost 98 80 Actuarial (gain) loss 36 (35 ) Benefit obligation at end of year $ 3,419 $ 2,898 |
Components of Net Periodic Pension Benefit Cost | Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Service cost $ 387 $ 379 $ 335 Interest cost 98 80 78 Amortization of actuarial losses — 27 — Net periodic benefit cost $ 485 $ 486 $ 413 |
Pretax Amounts Recognized in Other Comprehensive Income | Pretax amounts recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014 are as follows 2016 2015 2014 Actuarial Losses/(gains) $ 36 $ (35) $ 213 Amortization of actuarial losses — (27) — $ 36 $ (62) $ 213 |
Fair Value of Plan Assets | The following table sets forth the fair value of the plan assets for the periods ending December 31, 2016 and 2015: 2016 2015 Change in plan assets: Plan assets at beginning of year $ 3,333 $ 3,615 Actual return on plan assets 125 126 Contributions 261 257 Paid pension distributions (261 ) (257 ) Actuarial gains/(losses) (27 ) (28 ) Exchange rate impact (105 ) (380 ) Plan assets at end of year $ 3,326 $ 3,333 |
Actuarial Assumptions Used to Determine Benefit Obligation and Net Periodic Service Cost | The Gentherm GmbH defined benefit plan is underfunded by $4,000 and $3,647 as of December 31, 2016 and 2015, respectively. The net periodic benefit cost is included in selling, general and administrative expenses in the Company’s consolidated statements of income and actuarial gains and losses are included the Company’s consolidated balance sheet as part of accumulated other comprehensive income within shareholders’ equity. Actuarial gains or losses are amortized to selling, general and administrative expense in the Company’s consolidated statements of income using the corridor method. The following table describes the actuarial assumptions used to determine the benefit obligation and the net periodic service cost: 2016 2015 Discount rate 1.69 % 2.21 % Expected long term rate of return on plan assets 3.40 % 3.70 % |
Schedule of Expected Pension Payments | The schedule of expected pension payments made to Gentherm GmbH defined benefit plan participants over the next 10 years is as follows: Year 2017 $ 258 2018 257 2019 255 2020 253 2021 251 2022 - 2026 1,238 Total $ 2,512 |
Gentherm GmbH | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit Obligation, Amounts Recognized Company's Financial Statements and Principal Assumptions | Gentherm GmbH records a projected benefit obligation representing the present value of future plan benefits when earned by the participant. The following table sets forth the benefit obligation and amounts recognized in the Company’s financial statements: 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 6,980 $ 8,120 Service cost — — Interest cost 154 142 Paid pension distributions (261 ) (257 ) Actuarial (gains)/losses 691 (182 ) Past service cost — — Exchange rate impact (238 ) (843 ) Benefit obligation at end of year $ 7,326 $ 6,980 |
Components of Net Periodic Pension Benefit Cost | Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Service cost $ — — 304 Interest cost 154 142 181 Return on plan assets (125 ) (126 ) (89 ) Amortization of prior service cost — 572 — Amortization of actuarial loss (gains) 48 59 (166 ) Net periodic benefit cost $ 77 647 230 |
Pretax Amounts Recognized in Other Comprehensive Income | Pretax amounts recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Actuarial (gains)/losses $ 718 $ (154) $ 1,916 Amortization of actuarial (losses)/gains (48 ) (59) 166 Amortization of prior service cost — (572) — $ (670 ) $ (785) $ 2,082 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Information Related to Recurring Fair Value Measurement of Derivative Financial Instruments in Our Consolidated Balance Sheet | Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2016 is as follows: Asset Derivatives Liability Derivatives Net Asset/ Hedge Designation Fair Value Hierarchy Balance Sheet Fair Balance Sheet Fair Foreign currency derivatives Cash flow hedge Level 2 Current liabilities $ (1,395 ) $ (1,395 ) Commodity derivatives Cash flow hedge Level 2 Current assets $ 18 $ 18 Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2015 is as follows: Liability Derivatives Net Asset/ Hedge Designation Fair Value Hierarchy Balance Sheet Fair Commodity derivatives Cash flow hedge Level 2 Current liabilities $ (725 ) $ (725 ) |
Information Related to Effect of Derivative Instruments on Our Consolidated Statements of Income | Information related to the effect of derivative instrument`s on our consolidated statements of income is as follows: Location Year Year Foreign currency derivatives Product revenues — (1,102 ) Cost of sales (608 ) (1,782 ) Selling, general and administrative 139 (477 ) Other comprehensive (loss) income (1,395 ) 10 Foreign currency gain 102 351 Total foreign currency derivatives $ (1,762 ) $ (3,000 ) CRS Revaluation of derivatives $ — $ — Gain on settlement of derivatives — 9,949 Total CRS $ — $ 9,949 Commodity derivatives Cost of sales $ (666 ) $ (123 ) Other comprehensive income (loss) $ 743 $ (725 ) Total commodity derivatives $ 77 $ (848 ) |
Reclassifications Out of Accu37
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss) | Reclassification adjustments and other activities impacting accumulated other comprehensive income (loss) during the year ended December 31, 2016, December 31, 2015 and December 31, 2014 are as follows: Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2015 $ (2,060 ) $ (49,381 ) $ (229 ) $ — $ (51,670 ) Other comprehensive income (loss) before reclassifications (723 ) (16,678 ) 154 (1,351 ) (18,598 ) Income tax effect of other comprehensive income (loss) before reclassifications 185 297 (57 ) 363 788 Amounts reclassified from accumulated other comprehensive income (loss) into net income 48 — 589 a (44 ) a 593 Income taxes reclassified into net income — — (216 ) 12 (204 ) Net current period other comprehensive income (loss) (490 ) (16,381 ) 470 (1,020 ) (17,421 ) Balance at December 31, 2016 $ (2,550 ) $ (65,762 ) $ 241 $ (1,020 ) $ (69,091 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2014 $ (2,673 ) $ (23,060 ) $ — $ (10 ) $ (25,743 ) Other comprehensive income (loss) before reclassifications 761 (25,904 ) (849 ) (1,746 ) (27,738 ) Income tax effect of other comprehensive income (loss) before reclassifications (234 ) (417 ) 543 473 365 Amounts reclassified from accumulated other comprehensive income (loss) into net income 86 — 124 a 1,756 a 1,966 Income taxes reclassified into net income — — (47 ) (473 ) (520 ) Net current period other comprehensive income (loss) 613 (26,321 ) (229 ) 10 (25,927 ) Balance at December 31, 2015 $ (2,060 ) $ (49,381 ) $ (229 ) $ — $ (51,670 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. Note 16 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – (Continued) Defined Benefit Pension Plans Foreign Currency Translation Adjustments Interest Rate Hedge Foreign Currency Hedge Derivatives Total Balance at December 31, 2013 $ (1,058 ) $ (4,064 ) $ (81 ) $ — $ (5,203 ) Other comprehensive income (loss) before reclassifications (2,129 ) (25,044 ) — (10 ) (27,183 ) Income tax effect of other comprehensive income (loss) before reclassifications 680 6,048 — — 6,728 Amounts reclassified from accumulated other comprehensive income (loss) into net income (166 ) — 81 a — (85 ) Income taxes reclassified into net income — — — — — Net current period other comprehensive income (loss) (1,615 ) (18,996 ) 81 (10 ) (20,540 ) Balance at December 31, 2014 $ (2,673 ) $ (23,060 ) $ — $ (10 ) $ (25,743 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. |
The Company - Additional Inform
The Company - Additional Information (Detail) | Dec. 22, 2016USD ($) | Dec. 31, 2016USD ($)Segment |
Disclosure Company Additional Information [Abstract] | ||
Subscription agreement date | Dec. 22, 2016 | |
Preferred stock purchased, value under subscription agreement | $ 4,500,000 | |
Cost-method investments, carrying value | $ 4,500,000 | |
Dividends paid | 0 | |
Amount paid withholding taxes in Canadian Revenue Agency | 7,600,000 | |
Income tax expense related to intercompany dividends | 2,500,000 | |
Accrued one-time income tax payment | $ 32,600,000 | |
Number of reportable segments | Segment | 2 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 177,187,000 | $ 144,479,000 | $ 85,700,000 | $ 54,885,000 |
Depreciation expense | 24,873,000 | 18,399,000 | 17,528,000 | |
Impairment of goodwill | 0 | 0 | 0 | |
Share based compensation expense | 8,147,000 | 12,316,000 | 8,601,000 | |
Related deferred tax benefit | 4,508,000 | 3,129,000 | ||
Stock options outstanding under the 1993,1997, 2006 and 2011 Stock Option Plans | ||||
Accounting Policies [Line Items] | ||||
Related deferred tax benefit | 2,891,000 | 3,787,000 | 2,949,000 | |
Production tooling | ||||
Accounting Policies [Line Items] | ||||
Reimbursable tooling capitalized within prepaid expenses and other current assets | $ 5,604,000 | 5,174,000 | ||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Payment terms of contracts | 30 days | |||
Minimum | Production tooling | ||||
Accounting Policies [Line Items] | ||||
Property plant and equipment, estimated useful life | 2 years | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Payment terms of contracts | 120 days | |||
Maximum | Production tooling | ||||
Accounting Policies [Line Items] | ||||
Property plant and equipment, estimated useful life | 7 years | |||
Patents | ||||
Accounting Policies [Line Items] | ||||
Amortization of intangibles | $ 12,675,000 | $ 12,751,000 | $ 16,941,000 | |
Concentration of Credit Risk | Accounts receivable | Lear Corporation | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 25.00% | 28.00% | ||
Concentration of Credit Risk | Accounts receivable | Adient | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 24.00% | 27.00% | ||
Concentration of Credit Risk | Accounts receivable | Faurecia | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 7.00% | 5.00% | ||
Customer Concentration Risk | Sales Revenue | ||||
Accounting Policies [Line Items] | ||||
Number of largest customer | Customer | 3 | |||
Customer Concentration Risk | Sales Revenue | Lear Corporation | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 21.00% | 22.00% | 21.00% | |
Revenues from sales | $ 192,425,000 | |||
Customer Concentration Risk | Sales Revenue | Adient | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 21.00% | 23.00% | 24.00% | |
Revenues from sales | $ 192,831,000 | |||
Customer Concentration Risk | Sales Revenue | Bosch | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 8.00% | 9.00% | 9.00% | |
Revenues from sales | $ 74,092,000 | |||
Foreign Jurisdictions | ||||
Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 162,881,000 | $ 140,088,000 |
Reconciliation of Changes in Ac
Reconciliation of Changes in Accrued Warranty Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Balance at beginning of year | $ 4,558 | $ 5,221 |
Warranty claims paid or retired | (1,096) | (1,654) |
Expense | 2,053 | 1,339 |
Adjustment due to currency translation | (72) | (348) |
Balance at end of year | $ 5,443 | $ 4,558 |
Reconciliation of Changes in In
Reconciliation of Changes in Inventory Reserve (Detail) - Inventory Valuation Reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 4,308 | $ 4,802 | $ 2,933 |
Expense | 876 | 815 | 2,204 |
Inventory write off | (326) | (1,060) | (154) |
Adjustment due to currency translation | (68) | (249) | |
Balance at end of year | $ 4,790 | $ 4,308 | $ 4,802 |
Estimated Useful Lives of Prope
Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Leasehold improvements | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | Term of lease |
Capital Lease | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | Term of lease |
Minimum | Buildings and building improvements | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 3 years |
Minimum | Plant And Equipment | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 1 year |
Minimum | Production tooling | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 2 years |
Minimum | Computer equipment and software | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 1 year |
Maximum | Buildings and building improvements | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 50 years |
Maximum | Plant And Equipment | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 20 years |
Maximum | Production tooling | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 7 years |
Maximum | Computer equipment and software | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 10 years |
Roll Forward of Goodwill from A
Roll Forward of Goodwill from Acquisition (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill | $ 27,765 | $ 30,398 |
Exchange rate impact | (652) | (2,740) |
Goodwill | 51,735 | 27,765 |
GPT | ||
Goodwill [Line Items] | ||
Goodwill arising from the acquisition | $ 107 | |
CSZ | ||
Goodwill [Line Items] | ||
Goodwill arising from the acquisition | $ 24,622 |
Fair Value and Corresponding Us
Fair Value and Corresponding Useful Lives for Acquired Intangibles Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Customer relationships | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets useful life | 10 years |
Customer relationships | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets useful life | 15 years |
Technology | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets useful life | 5 years |
Technology | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets useful life | 10 years |
Product Development Costs | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets useful life | 4 years |
Estimate of Total Intangible As
Estimate of Total Intangible Asset Amortization (Detail) - Patents $ in Thousands | Dec. 31, 2016USD ($) |
Amortization Expense [Line Items] | |
2,017 | $ 12,350 |
2,018 | 9,864 |
2,019 | 9,727 |
2,020 | 9,276 |
2,021 | 9,276 |
Thereafter | $ 7,064 |
Details of Certain Financial 46
Details of Certain Financial Statement Components (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory: | ||||
Raw materials, net of reserve | $ 60,525 | $ 50,371 | ||
Work in process, net of reserve | 13,261 | 4,150 | ||
Finished goods, net of reserve | 31,288 | 29,662 | ||
Total inventory | 105,074 | 84,183 | ||
Property and equipment: | ||||
Buildings, plant and equipment | 151,977 | 103,841 | ||
Automobiles | 861 | 502 | ||
Production tooling | 12,991 | 11,702 | ||
Leasehold improvements | 11,695 | 7,546 | ||
Computer equipment and software | 21,048 | 17,371 | ||
Construction in progress | 20,747 | 12,302 | ||
Total property, plant and equipment, gross | 219,319 | 153,264 | ||
Less: Accumulated depreciation | [1] | (47,267) | (34,107) | |
Total property, plant and equipment, net | 172,052 | 119,157 | ||
Other intangible assets: | ||||
Other intangible assets | 111,522 | 108,055 | ||
Accumulated amortization | (53,965) | (59,594) | ||
Total other intangible assets Net | 57,557 | 48,461 | ||
Accrued liabilities: | ||||
Tax accruals | 51,197 | 18,205 | ||
Accrued warranty | 5,443 | 4,558 | $ 5,221 | |
Accrued employee liabilities | 21,323 | 19,481 | ||
Liabilities from discounts and rebates | 13,413 | 10,232 | ||
Other accrued liabilities | 14,249 | 10,231 | ||
Total accrued liabilities | 105,625 | 62,707 | ||
Customer relationships | ||||
Other intangible assets: | ||||
Other intangible assets | 66,542 | 68,296 | ||
Technology | ||||
Other intangible assets: | ||||
Other intangible assets | 35,378 | 29,473 | ||
Product development costs | ||||
Other intangible assets: | ||||
Other intangible assets | $ 9,602 | $ 10,286 | ||
[1] | Includes accumulated amortization of capital lease obligations. |
Cincinnati Sub-Zero Acquisiti47
Cincinnati Sub-Zero Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 51,735 | $ 51,735 | $ 51,735 | $ 27,765 | $ 30,398 | |
Cincinnati Sub-Zero Products, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Product revenues | 51,540 | |||||
Net loss | 1,092 | |||||
Net assets acquired | $ 73,593 | |||||
Cash acquired on acquisition | 985 | |||||
Gross contractual amount due of accounts receivable | 11,126 | |||||
Accounts receivable expected to be uncollectible | 336 | |||||
Step up in net book value of inventory to fair value | 4,000 | |||||
Goodwill | 24,622 | |||||
Intangible assets before foreign currency adjustment | $ 21,270 | 21,270 | $ 21,270 | 21,270 | ||
Amortization of intangibles | $ 325 | $ 975 |
Summary of Preliminary Allocati
Summary of Preliminary Allocation (Detail) - USD ($) $ in Thousands | Apr. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 51,735 | $ 27,765 | $ 30,398 | |
Purchase price | 73,593 | $ (107) | $ 31,474 | |
Cincinnati Sub-Zero Products, LLC | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 10,790 | |||
Inventory | 16,284 | |||
Prepaid expenses and other assets | 1,143 | |||
Property and equipment | 12,919 | $ 12,919 | ||
Goodwill | 24,622 | |||
Assumed liabilities | (13,435) | |||
Net assets acquired | 73,593 | |||
Cash acquired on acquisition | 985 | |||
Purchase price | 74,578 | |||
Cincinnati Sub-Zero Products, LLC | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 11,700 | |||
Cincinnati Sub-Zero Products, LLC | Technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3,200 | |||
Cincinnati Sub-Zero Products, LLC | Trade name | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 6,370 |
Summary of Preliminary Alloca49
Summary of Preliminary Allocation (Parenthetical) (Detail) $ in Thousands | Apr. 02, 2016USD ($) |
Cincinnati Sub-Zero Products, LLC | |
Business Acquisition [Line Items] | |
Consideration owed to seller for tax gross up | $ 2,000 |
Supplemental Pro Forma Informat
Supplemental Pro Forma Information (Detail) - Cincinnati Sub-Zero Products, LLC - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Product revenues | $ 232,324 | $ 933,505 | $ 919,651 |
Net income | $ 27,272 | $ 74,485 | $ 94,833 |
Basic earnings per share | $ 0.75 | $ 2.04 | $ 2.63 |
Diluted earnings per share | $ 0.75 | $ 2.04 | $ 2.60 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | $ 111,522 | $ 111,522 | $ 108,055 | |
Accumulated Amortization | 53,965 | 53,965 | 59,594 | |
Total other intangible assets Net | 57,557 | 57,557 | 48,461 | |
Customer relationships | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 66,542 | 66,542 | 68,296 | |
Technology | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 35,378 | 35,378 | $ 29,473 | |
Cincinnati Sub-Zero Products, LLC | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 21,270 | 21,270 | $ 21,270 | |
Accumulated Amortization | 325 | 975 | ||
Net Value | 20,295 | 20,295 | ||
Cincinnati Sub-Zero Products, LLC | Trade name | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Net Value | 6,370 | $ 6,370 | ||
Estimated useful life of intangible assets | Indefinite | |||
Cincinnati Sub-Zero Products, LLC | Customer relationships | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 11,700 | $ 11,700 | ||
Accumulated Amortization | 585 | 585 | ||
Total other intangible assets Net | 11,115 | $ 11,115 | ||
Estimated useful life of intangible assets | 15 years | |||
Cincinnati Sub-Zero Products, LLC | Technology | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 3,200 | $ 3,200 | ||
Accumulated Amortization | 390 | 390 | ||
Total other intangible assets Net | $ 2,810 | $ 2,810 | ||
Cincinnati Sub-Zero Products, LLC | Technology | Minimum | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 5 years | |||
Cincinnati Sub-Zero Products, LLC | Technology | Maximum | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 7 years |
Summary of Amortization Expense
Summary of Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Product revenues | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | $ 195 | $ 585 |
Research and development expenses | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | $ 130 | $ 390 |
Summary of Amortization Expen53
Summary of Amortization Expense for Prospective Years (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Business Combinations [Abstract] | |
2,017 | $ 1,300 |
2,018 | 1,300 |
2,019 | 1,300 |
2,020 | 1,300 |
2,021 | $ 1,135 |
Summary of Property and Equipme
Summary of Property and Equipment (Detail) - Cincinnati Sub-Zero Products, LLC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Apr. 02, 2016 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 12,919 | $ 12,919 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | Indefinite | |
Property and equipment | $ 1,630 | |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 20 years | |
Property and equipment | $ 6,024 | |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 3,718 | |
Machinery and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 5 years | |
Machinery and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 7 years | |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 586 | |
Computer hardware and software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 3 years | |
Computer hardware and software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 5 years | |
Asset under Construction | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 961 |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Derivative financial instruments | $ 267 | |
Net operating losses | $ 13,643 | 5,525 |
Research and development credits | 23,012 | 21,494 |
Depreciation | 5,457 | 3,886 |
Valuation reserves and accrued liabilities | 9,667 | 5,553 |
Foreign tax credit | 6,926 | 1,654 |
Stock compensation | 4,508 | 3,129 |
Inventory | 1,571 | 1,622 |
Patents | 218 | 156 |
Defined benefit obligation | 2,306 | 2,011 |
Other credits | 639 | 639 |
Other | 116 | 10 |
Deferred tax assets, gross | 68,063 | 45,946 |
Valuation allowance | (19,304) | (13,418) |
Deferred tax liabilities: | ||
Intangible assets | (8,442) | (10,161) |
Unrealized foreign currency exchange gains | (285) | (3,797) |
Undistributed profits of subsidiary | (12,002) | (3,254) |
Property and equipment | (470) | (696) |
Other | (319) | (342) |
Deferred tax liabilities, gross | (21,518) | (18,250) |
Net deferred tax asset | $ 27,241 | $ 14,278 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||||
Statutory Federal income tax rate | 34.00% | 34.00% | 34.00% | |
Tax benefit related to stock compensation tax deductions | $ 7,509 | $ 6,681 | $ 1,831 | |
Stock option exercises included in net operating loss carryforwards | 13,643 | 5,525 | ||
Income tax holiday, amount of corporate income tax savings realized | 33,965 | 33,545 | 24,102 | |
Total unrecognized tax benefits | $ 4,486 | 4,443 | $ 4,651 | $ 2,241 |
Macedonia | ||||
Income Taxes [Line Items] | ||||
Income tax holiday, description | The government of Macedonia granted the Company a tax holiday that released the Company from the obligation to pay corporate income taxes for a ten year period, subject to certain limitations. | |||
Income tax holiday, period | 10 years | |||
Income tax holiday, amount of corporate income tax savings realized | $ 0 | 0 | ||
Preferred Financing | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforward annual limitation | 591 | |||
Net operating loss carryforward expected to expire | 6,025 | |||
Net operating loss expired | 13,324 | |||
U.S. Federal | ||||
Income Taxes [Line Items] | ||||
Stock option exercises included in net operating loss carryforwards | 0 | 22,343 | ||
U.S. State | ||||
Income Taxes [Line Items] | ||||
Stock option exercises included in net operating loss carryforwards | $ 17,564 | $ 17,213 |
Reconciliations Between Statuto
Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax rate | 34.00% | 34.00% | 34.00% |
Increase (Decrease) resulting from: | |||
U.S. Taxes on foreign income, net of taxes paid credit | 1.30% | 1.00% | 0.30% |
Change in valuation allowance | 5.30% | (1.90%) | (0.80%) |
Foreign, state and local tax, net of Federal benefit | 1.10% | 1.60% | 1.90% |
Nondeductible expenses | 2.40% | 1.80% | 1.80% |
Stock option compensation | (0.10%) | (0.10%) | |
Research and development credits | (0.70%) | (0.90%) | (0.50%) |
Effect of different tax rates of foreign jurisdictions | (15.00%) | (12.10%) | (10.00%) |
Undistributed profits of subsidiaries | 7.90% | 2.40% | |
Other tax exempt income | (0.10%) | (0.90%) | |
Tax effects of intercompany transfers | (5.30%) | ||
Other | (0.30%) | 0.30% | (0.10%) |
Effective rate | 30.70% | 26.00% | 25.60% |
Net Operating Loss Carryforward
Net Operating Loss Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
U.S. Federal and state income tax | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, amount | $ 25,364 |
U.S. Federal and state income tax | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, year of expiration | 2,018 |
U.S. Federal and state income tax | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, year of expiration | 2,035 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, amount | $ 9,879 |
Foreign | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, year of expiration | 2,018 |
Foreign | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, year of expiration | 2,037 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, amount | $ 47,707 |
Operating loss carryforward, year of expiration | Indefinite |
Earnings Before Income Taxes an
Earnings Before Income Taxes and Tax Provisions - (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income taxes: | |||
Domestic | $ 12,981 | $ 25,508 | $ 11,170 |
Foreign | 97,582 | 103,430 | 83,051 |
Earnings before income tax | $ 110,563 | $ 128,938 | $ 94,221 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax expense: | |||
Federal | $ 9,215 | $ 8,428 | $ 4,005 |
State and local | 749 | 606 | (15) |
Foreign | 32,844 | 24,622 | 24,737 |
Total current income tax expense | 42,808 | 33,656 | 28,727 |
Deferred income tax expense (benefit): | |||
Federal | (10,597) | (3,051) | (576) |
State and local | (742) | (183) | 9 |
Foreign | 2,496 | 3,123 | (4,058) |
Total deferred income tax expense | (8,843) | (111) | (4,625) |
Total tax expense | $ 33,965 | $ 33,545 | $ 24,102 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 4,443 | $ 4,651 | $ 2,241 |
Additions based on tax position related to current year | 80 | 43 | |
Additions based on tax positions related to prior year | 366 | 262 | 2,991 |
Reductions from settlements and statute of limitation expiration | (299) | (19) | (432) |
Effect of foreign currency translation | (104) | (451) | (192) |
Balance at end of year | $ 4,486 | $ 4,443 | $ 4,651 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 15, 2016 | Dec. 14, 2016 | |
Debt Instrument [Line Items] | |||
Maximum percentage of stock of non US subsidiaries pledge to secure obligation | 66.00% | ||
Federal Funds Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.50% | ||
Federal Funds Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.55% | ||
London Interbank Offered Rate | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.77% | ||
Revolving Note (U.S. Dollar) | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount available for borrowing | $ 195,405,000 | ||
Letter of credit outstanding amount | $ 595,000 | ||
United State Bank Of America Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.75% | ||
Euro Currency Rate Loans | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Euro Currency Rate Loans | Minimum | Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.25% | ||
Euro Currency Rate Loans | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.00% | ||
Euro Currency Rate Loans | Maximum | Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.00% | ||
Base Rate Loans | Minimum | Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.25% | ||
Base Rate Loans | Maximum | Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.00% | ||
DEG Loan | |||
Debt Instrument [Line Items] | |||
Semi-annual principal payments earliest date | 2015-03 | ||
Semi-annual principal payments latest date | 2019-09 | ||
DEG Vietnam Loan | |||
Debt Instrument [Line Items] | |||
Semi-annual principal payments earliest date | 2017-11 | ||
Semi-annual principal payments latest date | 2023-05 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount available for borrowing | $ 350,000,000 | $ 250,000,000 |
Summary of Company's Debt (Deta
Summary of Company's Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total debt | $ 171,525 | $ 97,741 |
Current portion | (2,092) | (4,909) |
Long-term debt, less current maturities | $ 169,433 | $ 92,832 |
U.S. Revolving Note (U.S. Dollar Denominations) | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.27% | 1.92% |
Total debt | $ 154,000 | $ 12,000 |
DEG China Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.25% | 4.25% |
Total debt | $ 2,525 | $ 3,497 |
DEG Vietnam Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.21% | 5.21% |
Total debt | $ 15,000 | $ 15,000 |
U.S. Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.11% | |
Total debt | $ 46,875 | |
Europe Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.50% | |
Total debt | $ 20,369 |
Principal Maturities of Debt (D
Principal Maturities of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt maturing in 2017 | $ 2,092 | |
Debt maturing in 2018 | 3,342 | |
Debt maturing in 2019 | 3,341 | |
Debt maturing in 2020 | 2,500 | |
Debt maturing in 2021 | 156,500 | |
Thereafter | 3,750 | |
Total debt | 171,525 | $ 97,741 |
Revolving Note (U.S. Dollar) | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2021 | 154,000 | |
Total debt | 154,000 | 12,000 |
DEG China Loan | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2017 | 842 | |
Debt maturing in 2018 | 842 | |
Debt maturing in 2019 | 841 | |
Total debt | 2,525 | 3,497 |
DEG Vietnam Loan | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2017 | 1,250 | |
Debt maturing in 2018 | 2,500 | |
Debt maturing in 2019 | 2,500 | |
Debt maturing in 2020 | 2,500 | |
Debt maturing in 2021 | 2,500 | |
Thereafter | 3,750 | |
Total debt | $ 15,000 | $ 15,000 |
Accounting for Stock Based Co65
Accounting for Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May 16, 2013 | May 15, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option grant expiration period | 10 years | |||||
Unrecognized compensation cost related to nonvested options and restricted options | $ 17,258 | $ 20,117 | ||||
Unrecognized share-based compensation cost recognition period | 3 years | |||||
Share based compensation expense | $ 8,147 | $ 12,316 | $ 8,601 | |||
Weighted average grant date fair value of options granted | $ 10.74 | $ 10.60 | $ 7.88 | |||
Total intrinsic value of options exercised | $ 2,456 | $ 18,745 | $ 21,249 | |||
Total fair value of restricted shares vested | $ 3,865 | 4,088 | 5,329 | |||
Stock Appreciation Rights (SARs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of performance based unvested SARs outstanding | 66,400 | |||||
Total intrinsic value of options exercised | $ 261 | $ 4,185 | $ 2,072 | |||
Employee and Consultants | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation, requisite service period | 3 years | |||||
Employee and Consultants | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation, requisite service period | 5 years | |||||
Director | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation, requisite service period | 1 year | |||||
2013 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized for grant | 835,700 | |||||
Number of shares authorized for grant | 3,500,000 | |||||
Equity Incentive Plan Twenty Eleven And Two Thousand And Six | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized for grant | 0 | 2,315,578 |
Summarizes Stock Option Activit
Summarizes Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock Options Outstanding, beginning balance, Shares | 1,530,845 | 1,674,534 | 1,943,176 |
Granted, Shares | 862,000 | 524,534 | 605,000 |
Exercised, Shares | (112,875) | (571,723) | (731,142) |
Forfeited, Shares | (176,500) | (96,500) | (142,500) |
Stock Options Outstanding, ending balance, Shares | 2,103,470 | 1,530,845 | 1,674,534 |
Stock Options Exercisable, Shares | 675,152 | 439,561 | 632,034 |
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price | $ 27.46 | $ 19.14 | $ 12.19 |
Granted, Weighted-Average Exercise Price | 40.87 | 41.97 | 30.15 |
Exercised, Weighted-Average Exercise Price | 13.24 | 16.21 | 9.84 |
Forfeited, Weighted-Average Exercise Price | 39.32 | 28.47 | 18.94 |
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price | 32.72 | 27.46 | 19.14 |
Exercisable, Weighted-Average Exercise Price | $ 21.40 | $ 12.18 | $ 10.13 |
Stock Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 10 months 10 days | 4 years 11 months 19 days | 5 years 1 month 6 days |
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 5 months 12 days | 3 years 6 months 4 days | 3 years 11 months 19 days |
Stock Options Outstanding, Aggregate Intrinsic Value | $ 12,265 | $ 30,573 | $ 29,886 |
Exercisable, Aggregate Intrinsic Value | $ 9,646 | $ 15,480 | $ 16,744 |
Fair Value of Option on date of
Fair Value of Option on date of grant (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||
Expected volatility | 37.00% | 35.00% | 37.00% |
Weighted average expected volatility | 37.00% | 35.00% | 37.00% |
Expected lives | 3 years | 3 years | 3 years |
Risk-free interest rate | 0.90% | 0.60% | |
Risk-free interest rate | 1.07% | 1.00% | |
Risk-free interest rate | 1.00% | ||
Expected dividend yield |
Summarizes Restricted Stock Act
Summarizes Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Nonvested at beginning of period, Shares | 179,026 | 177,084 | 243,967 |
Granted, Shares | 141,784 | 108,026 | 104,584 |
Vested, Shares | (100,330) | (82,084) | (129,092) |
Forfeited, Shares | (9,999) | (24,000) | (42,375) |
Nonvested at end of period, Shares | 210,481 | 179,026 | 177,084 |
Nonvested at beginning of period, Weighted-Average Grant Date Fair Value | $ 34.92 | $ 23.70 | $ 17.43 |
Granted, Weighted-Average Grant Date Fair Value | 39.73 | 44.01 | 27.79 |
Vested, Weighted-Average Grant Date Fair Value | 32.47 | 23.86 | 16.45 |
Forfeited, Weighted-Average Grant Date Fair Value | 40.99 | 30.87 | 19.77 |
Nonvested at end of period, Weighted-Average Grant Date Fair Value | $ 39.02 | $ 34.92 | $ 23.70 |
Summarizes Stock Appreciation R
Summarizes Stock Appreciation Rights (SARs) Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Options Outstanding, beginning balance, Shares | 1,530,845 | 1,674,534 | 1,943,176 |
Granted, Shares | 862,000 | 524,534 | 605,000 |
Exercised, Shares | (112,875) | (571,723) | (731,142) |
Forfeited, Shares | (176,500) | (96,500) | (142,500) |
Stock Options Outstanding, ending balance, Shares | 2,103,470 | 1,530,845 | 1,674,534 |
Exercisable, Ending Balance | 675,152 | 439,561 | 632,034 |
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price | $ 27.46 | $ 19.14 | $ 12.19 |
Granted, Weighted-Average Exercise Price | 40.87 | 41.97 | 30.15 |
Exercised, Weighted-Average Exercise Price | 13.24 | 16.21 | 9.84 |
Forfeited, Weighted-Average Exercise Price | 39.32 | 28.47 | 18.94 |
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price | 32.72 | 27.46 | 19.14 |
Exercisable, Weighted Average Exercise Price | $ 21.40 | $ 12.18 | $ 10.13 |
Stock Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 10 months 10 days | 4 years 11 months 19 days | 5 years 1 month 6 days |
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 5 months 12 days | 3 years 6 months 4 days | 3 years 11 months 19 days |
Outstanding, Aggregate Intrinsic Value | $ 12,265 | $ 30,573 | $ 29,886 |
Exercisable, Aggregate Intrinsic Value | $ 9,646 | $ 15,480 | $ 16,744 |
Stock Appreciation Rights (SARs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Options Outstanding, beginning balance, Shares | 1,049,850 | 1,060,250 | 495,000 |
Granted, Shares | 244,000 | 259,600 | 754,000 |
Exercised, Shares | (18,750) | (167,500) | (68,750) |
Forfeited, Shares | (30,500) | (102,500) | (120,000) |
Stock Options Outstanding, ending balance, Shares | 1,244,600 | 1,049,850 | 1,060,250 |
Exercisable, Ending Balance | 424,992 | 153,575 | 35,000 |
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price | $ 34.61 | $ 29.97 | $ 19.19 |
Granted, Weighted-Average Exercise Price | 40.64 | 43.97 | 34.70 |
Exercised, Weighted-Average Exercise Price | 24.28 | 23.90 | 19.10 |
Forfeited, Weighted-Average Exercise Price | 28.23 | 27.82 | 21.46 |
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price | 36.11 | 34.61 | 29.97 |
Exercisable, Weighted Average Exercise Price | $ 34.49 | $ 38.12 | $ 19.43 |
Stock Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 9 months 18 days | 5 years 5 months 16 days | 6 years 1 month 10 days |
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 4 months 21 days | 5 years 7 months 2 days | 5 years 6 months 11 days |
Outstanding, Aggregate Intrinsic Value | $ 3,511 | $ 13,425 | $ 9,991 |
Exercisable, Aggregate Intrinsic Value | $ 2,315 | $ 1,425 | $ 602 |
Earnings per Share (Detail)
Earnings per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average number of shares for calculation of basic EPS – Common Stock | 36,448,138 | 36,031,792 | 35,411,608 |
Stock options under equity incentive plans | 152,665 | 443,310 | 637,723 |
Weighted average number of shares for calculation of diluted EPS – Common Stock | 36,600,803 | 36,475,102 | 36,049,331 |
Stock options outstanding for equity incentive plans | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Common stock that have been excluded from the diluted shares calculation | 1,314,784 | 17,534 | 155,000 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 10,291 |
2,018 | 7,599 |
2,019 | 4,255 |
2,020 | 2,835 |
2,021 | 1,610 |
2022 or later | 4,864 |
Total | $ 31,454 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense under company's operating leases | $ 7,479 | $ 6,660 | $ 6,331 |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Number of shares of preferred stock authorized | shares | 4,991,000 |
Stockholder rights plan expiration date | 2019-01 |
Exercise price of preferred stock purchase right | $ / shares | $ 20 |
Percentage of Common Stock ownership to make rights exercisable | 15.00% |
Series B Preferred Stock | |
Class Of Warrant Or Right [Line Items] | |
Preferred shares entitled to be purchased per right | 0.001 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 51,735 | $ 27,765 | $ 30,398 |
Reimbursed research and development costs | 6,660 | 9,607 | 8,885 |
Selling, general and administrative costs | 115,252 | 95,456 | 84,647 |
Acquisition transaction expenses | $ 743 | 1,075 | |
Number of customers | Customer | 3 | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Number of customers | Customer | 2 | ||
Foreign | |||
Segment Reporting Information [Line Items] | |||
Number of customers | Customer | 1 | ||
Automotive Segments | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 20,962 | 21,614 | |
Industrial Segments | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 30,773 | 6,151 | |
Reimbursed research and development costs | 241 | 2,483 | 2,383 |
Selling, general and administrative costs | 39,059 | 32,116 | 24,433 |
Acquisition transaction expenses | $ 743 | $ 0 | $ 1,075 |
Segment Information about Repor
Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Product revenues | $ 917,600 | $ 856,445 | $ 811,300 |
Depreciation and amortization | 37,764 | 31,029 | 35,029 |
Operating income (loss) | 106,119 | 121,319 | 98,434 |
Operating Segments | Automotive Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 847,436 | 810,567 | 787,065 |
Depreciation and amortization | 31,826 | 27,251 | 30,016 |
Operating income (loss) | 174,035 | 170,358 | 144,645 |
Operating Segments | Industrial Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 70,164 | 45,878 | 24,235 |
Depreciation and amortization | 3,789 | 1,726 | 2,114 |
Operating income (loss) | (16,710) | (2,461) | (9,661) |
Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,149 | 2,052 | 2,899 |
Operating income (loss) | $ (51,206) | $ (46,578) | $ (36,550) |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Product revenues | $ 917,600 | $ 856,445 | $ 811,300 |
Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 100.00% | 100.00% | 100.00% |
United States | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 449,065 | $ 393,206 | $ 361,706 |
United States | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 49.00% | 46.00% | 45.00% |
South Korea | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 75,396 | $ 84,758 | $ 89,515 |
South Korea | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 8.00% | 10.00% | 11.00% |
China | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 80,493 | $ 76,864 | $ 69,910 |
China | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 9.00% | 9.00% | 9.00% |
Germany | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 70,258 | $ 74,003 | $ 90,243 |
Germany | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 8.00% | 9.00% | 11.00% |
Japan | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 45,103 | $ 46,058 | $ 47,528 |
Japan | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 5.00% | 5.00% | 6.00% |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 22,767 | $ 28,274 | $ 19,590 |
Mexico | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 2.00% | 3.00% | 2.00% |
Czech Republic | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 38,164 | $ 28,273 | $ 25,738 |
Czech Republic | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 4.00% | 3.00% | 3.00% |
Canada | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 37,954 | $ 27,076 | $ 20,293 |
Canada | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 4.00% | 3.00% | 2.00% |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 28,540 | $ 25,952 | $ 24,712 |
United Kingdom | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 3.00% | 3.00% | 3.00% |
Other | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 69,860 | $ 71,981 | $ 62,065 |
Other | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 8.00% | 9.00% | 8.00% |
Non U.S. | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 468,535 | $ 463,239 | $ 449,594 |
Non U.S. | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 51.00% | 54.00% | 56.00% |
Percentage of Total Product Rev
Percentage of Total Product Revenues Generated from Customers (Detail) - Sales Revenue, Net - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Adient | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 21.00% | 23.00% | 24.00% |
Lear Corporation | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 21.00% | 22.00% | 21.00% |
Bosch | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 8.00% | 9.00% | 9.00% |
Pension and Other Post Retire78
Pension and Other Post Retirement Benefit Plans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Payment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Vesting period | 6 years | ||
Discount rate for net periodic service cost | 3.40% | 3.25% | 4.25% |
Discount rate for benefit obligation | 3.25% | 3.40% | 3.25% |
Insurance policy value | $ 2,112,000 | $ 1,993,000 | |
Tax (expense) benefit recognized in other comprehensive income | $ 14,000 | (23,000) | 121,000 |
Pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) | 302,000 | 266,000 | |
Expected pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss ) in next fiscal year | 0 | ||
Contributions to 401(k) plan | $ 1,289,000 | $ 959,000 | 543,000 |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 1.69% | 2.21% | |
Tax (expense) benefit recognized in other comprehensive income | $ 171,000 | $ (211,000) | $ 559,000 |
Pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) | 2,406,000 | 1,821,000 | |
Expected pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss ) in next fiscal year | 73,000 | ||
Pension benefit obligation | 4,000,000 | ||
Underfunded defined benefit plan | 4,000,000 | $ 3,647,000 | |
Defined benefit plan, expected employer contribution in next fiscal year | 0 | ||
Chief Executive Officer | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Annual retirement payment | $ 300,000,000 | ||
Number of expected annual retirement benefit payments | Payment | 15 | ||
Annual retirement benefit payments, earliest date | Jan. 1, 2018 |
Benefit Obligation, Amounts Rec
Benefit Obligation, Amounts Recognized Company's Financial Statements and Principal Assumptions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | $ 2,898 | $ 2,474 | |
Service cost | 387 | 379 | $ 335 |
Interest cost | 98 | 80 | 78 |
Actuarial (gain) loss | 36 | (35) | |
Benefit obligation at end of year | 3,419 | 2,898 | 2,474 |
Gentherm GmbH | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 6,980 | 8,120 | |
Service cost | 304 | ||
Interest cost | 154 | 142 | 181 |
Paid pension distributions | (261) | (257) | |
Actuarial (gain) loss | 691 | (182) | |
Exchange rate impact | (238) | (843) | |
Benefit obligation at end of year | $ 7,326 | $ 6,980 | $ 8,120 |
Components of Net Periodic Pens
Components of Net Periodic Pension Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 387 | $ 379 | $ 335 |
Interest cost | 98 | 80 | 78 |
Amortization of actuarial loss (gains) | 27 | ||
Net periodic benefit cost | 485 | 486 | 413 |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 304 | ||
Interest cost | 154 | 142 | 181 |
Return on plan assets | (125) | (126) | (89) |
Amortization of prior service cost | 572 | ||
Amortization of actuarial loss (gains) | 48 | 59 | (166) |
Net periodic benefit cost | $ 77 | $ 647 | $ 230 |
Pretax Amounts Recognized in Ot
Pretax Amounts Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial Losses/(gains) | $ 36 | $ (35) | $ 213 |
Amortization of actuarial (losses)/gains | (27) | ||
Pretax amounts recognized in other comprehensive income (loss) | 36 | (62) | 213 |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial Losses/(gains) | 718 | (154) | 1,916 |
Amortization of actuarial (losses)/gains | (48) | (59) | 166 |
Amortization of prior service cost | (572) | ||
Pretax amounts recognized in other comprehensive income (loss) | $ (670) | $ (785) | $ 2,082 |
Fair Value of Plan Assets (Deta
Fair Value of Plan Assets (Detail) - Gentherm GmbH - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Change in plan assets: | ||
Plan assets at beginning of year | $ 3,333 | $ 3,615 |
Actual return on plan assets | 125 | 126 |
Contributions | 261 | 257 |
Paid pension distributions | (261) | (257) |
Actuarial gains/(losses) | (27) | (28) |
Exchange rate impact | (105) | (380) |
Plan assets at end of year | $ 3,326 | $ 3,333 |
Actuarial Assumptions Used to D
Actuarial Assumptions Used to Determine Benefit Obligation and Net Periodic Service Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.25% | 3.40% | 3.25% |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.69% | 2.21% | |
Expected long term rate of return on plan assets | 3.40% | 3.70% |
Schedule of Expected Pension Pa
Schedule of Expected Pension Payments (Detail) - Gentherm GmbH $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 258 |
2,018 | 257 |
2,019 | 255 |
2,020 | 253 |
2,021 | 251 |
2022 - 2026 | 1,238 |
Total | $ 2,512 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets, fair value | $ 0 | $ 0 |
Financial liabilities, fair value | 0 | 0 |
Carrying value | 171,525,000 | 97,741,000 |
DEG Vietnam Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | 15,000,000 | 15,000,000 |
Fair value | 14,900,000 | 15,100,000 |
DEG China Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | 2,525,000 | 3,497,000 |
Fair value | $ 2,600,000 | $ 3,600,000 |
Derivative Financial Instrume86
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2008 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||||
Maximum length of time to hedge exposure to foreign currency exchange risk | 1 year | ||||
Maximum length of time to hedge exposure to price fluctuations in material commodities | 2 years | ||||
Revaluation of derivatives loss | $ (1,102,000) | $ (518,000) | |||
One-time pre-tax gain | $ (1,762,000) | (3,000,000) | |||
Final cash settlement payment | 7,593,000 | ||||
Foreign Currency Derivatives | |||||
Derivative [Line Items] | |||||
Notional Value | $ 0 | 29,538,000 | 0 | ||
Commodity Derivatives | |||||
Derivative [Line Items] | |||||
Notional Value | 4,885,000 | 407,000 | 4,885,000 | ||
Revaluation of derivatives loss | 0 | ||||
One-time pre-tax gain | 77,000 | (848,000) | |||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Hedge Ineffectiveness Incurred | $ 0 | 0 | |||
Interest Rate Swap | Automotive Segments | |||||
Derivative [Line Items] | |||||
Derivative maturity period | 10 years | ||||
Currency Related Swap | |||||
Derivative [Line Items] | |||||
One-time pre-tax gain | 9,949,000 | $ 9,949,000 | |||
Final cash settlement payment | $ 7,593,000 |
Information Related to Recurrin
Information Related to Recurring Fair Value Measurement of Derivative Financial Instruments in Our Consolidated Balance Sheet (Detail) - Fair Value, Inputs, Level 2 - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Currency Derivatives | Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair value | $ (1,395) | |
Net Asset/ (Liabilities) | (1,395) | |
Commodity Derivatives | Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair value | $ (725) | |
Net Asset/ (Liabilities) | $ (725) | |
Commodity Derivatives | Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Net Asset/ (Liabilities) | 18 | |
Asset Derivatives, Fair Value | $ 18 |
Information Related to Effect o
Information Related to Effect of Derivative Instrument's on Our Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | $ (1,762) | $ (3,000) | |
Currency Related Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | $ 9,949 | 9,949 | |
Commodity Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | 77 | (848) | |
Other comprehensive (loss) income | Foreign Currency Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | (1,395) | 10 | |
Other comprehensive (loss) income | Commodity Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | 743 | (725) | |
Product revenues | Foreign Currency Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | (1,102) | ||
Cost of sales | Foreign Currency Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | (608) | (1,782) | |
Cost of sales | Commodity Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | (666) | (123) | |
Selling, general and administrative expense | Foreign Currency Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | 139 | (477) | |
Foreign currency gain | Foreign Currency Derivatives | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | $ 102 | 351 | |
Gain on Settlement of Derivatives | Currency Related Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) on derivatives | $ 9,949 |
Schedule of Reclassification Ad
Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ (51,670) | $ (25,743) | $ (5,203) | |
Other comprehensive income (loss) before reclassifications | (18,598) | (27,738) | (27,183) | |
Income tax effect of other comprehensive income (loss) before reclassifications | 788 | 365 | 6,728 | |
Amounts reclassified from accumulated other comprehensive income (loss) into net income | 593 | 1,966 | (85) | |
Income taxes reclassified into net income | (204) | (520) | ||
Other comprehensive loss, net of tax: | (17,421) | (25,927) | (20,540) | |
Ending Balance | (69,091) | (51,670) | (25,743) | |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (2,060) | (2,673) | (1,058) | |
Other comprehensive income (loss) before reclassifications | (723) | 761 | (2,129) | |
Income tax effect of other comprehensive income (loss) before reclassifications | 185 | (234) | 680 | |
Amounts reclassified from accumulated other comprehensive income (loss) into net income | 48 | 86 | (166) | |
Other comprehensive loss, net of tax: | (490) | 613 | (1,615) | |
Ending Balance | (2,550) | (2,060) | (2,673) | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (49,381) | (23,060) | (4,064) | |
Other comprehensive income (loss) before reclassifications | (16,678) | (25,904) | (25,044) | |
Income tax effect of other comprehensive income (loss) before reclassifications | 297 | (417) | 6,048 | |
Other comprehensive loss, net of tax: | (16,381) | (26,321) | (18,996) | |
Ending Balance | (65,762) | (49,381) | (23,060) | |
Commodity Hedge Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (229) | (81) | ||
Other comprehensive income (loss) before reclassifications | 154 | (849) | ||
Income tax effect of other comprehensive income (loss) before reclassifications | (57) | 543 | ||
Amounts reclassified from accumulated other comprehensive income (loss) into net income | [1] | 589 | 124 | 81 |
Income taxes reclassified into net income | (216) | (47) | ||
Other comprehensive loss, net of tax: | 470 | (229) | 81 | |
Ending Balance | 241 | (229) | ||
Foreign Currency Hedge Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (10) | |||
Other comprehensive income (loss) before reclassifications | (1,351) | (1,746) | (10) | |
Income tax effect of other comprehensive income (loss) before reclassifications | 363 | 473 | ||
Amounts reclassified from accumulated other comprehensive income (loss) into net income | [1] | (44) | 1,756 | |
Income taxes reclassified into net income | 12 | (473) | ||
Other comprehensive loss, net of tax: | (1,020) | $ 10 | (10) | |
Ending Balance | $ (1,020) | $ (10) | ||
[1] | The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 14 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income. |
Valuation and Qualifying Acco90
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 955 | $ 1,213 | $ 1,166 |
Charged to Costs and Expenses | 1,469 | 4,174 | 2,043 |
Charged to Other Accounts | (270) | (373) | (1,098) |
Deductions from Reserves | (763) | (4,059) | (898) |
Balance at end of year | 1,391 | 955 | 1,213 |
Allowance for Deferred Income Tax Assets | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 13,418 | 18,037 | 2,199 |
Charged to Costs and Expenses | 5,706 | ||
Charged to Other Accounts | 180 | (2,436) | 16,674 |
Deductions from Reserves | (2,183) | (836) | |
Balance at end of year | 19,304 | 13,418 | 18,037 |
Reserve for Inventory | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 4,308 | 4,802 | 2,933 |
Charged to Costs and Expenses | 876 | 815 | 2,204 |
Charged to Other Accounts | (68) | (249) | (181) |
Deductions from Reserves | (326) | (1,060) | (154) |
Balance at end of year | $ 4,790 | $ 4,308 | $ 4,802 |