Segment Reporting | Note 4 – Segment Reporting Segment information is used by management for making strategic operating decisions for the Company. Management evaluates the performance of the Company’s segments based primarily on operating income or loss. The Company’s reportable segments are as follows: Automotive • Industrial – the combined operating results of Gentherm Global Power Technologies (“GPT”), Cincinnati Sub-Zero Products, LLC (“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. Reconciling Items – The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three and six month periods ended June 30, 2017 and 2016. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of June 30, 2017, goodwill assigned to our Automotive and Industrial segments were $22,724 and $30,773, respectively. As of June 30, 2016, goodwill assigned to our Automotive and Industrial segments were $22,119 and $28,890, respectively. Three Months Ended June 30, Automotive Industrial Reconciling Consolidated 2017: Product revenues $ 215,812 $ 27,566 $ — $ 243,378 Depreciation and amortization 9,048 1,288 663 10,999 Operating income (loss) 40,082 (2,648 ) (12,211 ) 25,223 2016: Product revenues $ 211,833 $ 20,887 $ — $ 232,720 Depreciation and amortization 7,652 1,199 532 9,383 Operating income (loss) 36,162 (7,113 ) (6,696 ) 22,353 Six Months Ended June 30, Automotive Industrial Reconciling Consolidated 2017: Product revenues $ 437,645 $ 55,000 $ — $ 492,645 Depreciation and amortization 17,179 2,706 1,306 21,191 Operating income (loss) 90,839 (5,134 ) (25,633 ) 60,072 2016: Product revenues $ 422,267 $ 26,167 $ — $ 448,434 Depreciation and amortization 14,935 1,589 1,023 17,547 Operating income (loss) 78,863 (9,729) (16,896 ) 52,238 Note 4 – Segment Reporting – Continued Total product revenues information by geographic area is as follows: Three Months Ended June 30, 2017 2016 United States $ 114,141 47 % $ 113,138 49 % China 19,962 8 % 18,988 8 % Germany 17,694 7 % 18,424 8 % South Korea 17,754 7 % 21,053 9 % Japan 13,093 5 % 9,779 4 % Canada 11,113 5 % 10,091 4 % Czech Republic 9,944 4 % 10,290 4 % United Kingdom 8,439 4 % 7,071 3 % Mexico 5,322 2 % 5,980 3 % Other 25,916 11 % 17,906 8 % Total Non U.S. 129,237 53 % 119,582 51 % $ 243,378 100 % $ 232,720 100 % Six Months Ended June 30, 2017 2016 United States $ 233,664 47 % $ 214,878 48 % China 40,427 8 % 36,410 8 % Germany 35,562 7 % 36,591 8 % South Korea 34,145 7 % 40,149 9 % Japan 27,376 6 % 22,013 5 % Canada 22,042 5 % 19,073 4 % Czech Republic 20,651 4 % 19,961 4 % United Kingdom 18,107 4 % 13,738 3 % Mexico 10,692 2 % 11,561 3 % Other 49,979 10 % 34,060 8 % Total Non U.S. 258,981 53 % 233,556 52 % $ 492,645 100 % $ 448,434 100 % |