Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 22, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 36,762,710 | ||
Entity Public Float | $ 1,047,947 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 103,172 | $ 177,187 |
Accounts receivable, less allowance of $973 and $1,391, respectively | 185,058 | 170,084 |
Inventory, net | 121,409 | 105,074 |
Derivative financial instruments | 213 | 18 |
Prepaid expenses and other assets | 51,217 | 32,000 |
Total current assets | 461,069 | 484,363 |
Property and equipment, net of accumulated depreciation of $83,404 and $47,267, respectively | 200,294 | 172,052 |
Goodwill | 69,685 | 51,735 |
Other intangible assets, net of accumulated amortization of $77,622 and $53,965, respectively | 83,286 | 57,557 |
Deferred financing costs | 936 | 1,221 |
Deferred income tax assets | 30,152 | 35,299 |
Other non-current assets | 37,983 | 40,803 |
Total assets | 883,405 | 843,030 |
Current Liabilities: | ||
Accounts payable | 89,596 | 84,511 |
Accrued liabilities | 77,209 | 105,625 |
Current maturities of long-term debt | 3,460 | 2,092 |
Derivative financial instruments | 1,050 | 1,395 |
Total current liabilities | 171,315 | 193,623 |
Pension benefit obligations | 7,913 | 7,419 |
Other Liabilities | 2,747 | 4,092 |
Long-term debt, less current maturities | 141,209 | 169,433 |
Deferred tax liabilities | 6,347 | 8,058 |
Total liabilities | 329,531 | 382,625 |
Common Stock: | ||
No par value; 55,000,000 shares authorized, 36,761,362 and 36,534,464 issued and outstanding at December 31, 2017 and 2016, respectively | 265,048 | 262,251 |
Paid-in capital | 15,625 | 10,323 |
Accumulated other comprehensive income | (20,444) | (69,091) |
Accumulated earnings | 293,645 | 256,922 |
Total shareholders’ equity | 553,874 | 460,405 |
Total liabilities and shareholders’ equity | $ 883,405 | $ 843,030 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Financial Position [Abstract] | |||
Accounts receivable, allowance | $ 973 | $ 1,391 | |
Accumulated depreciation | [1] | 83,404 | 47,267 |
Accumulated amortization | $ 77,622 | $ 53,965 | |
Common Stock, par value | |||
Common Stock, shares authorized | 55,000,000 | 55,000,000 | |
Common Stock, shares issued | 36,761,362 | 36,534,464 | |
Common Stock, shares outstanding | 36,761,362 | 36,534,464 | |
[1] | Includes accumulated amortization of capital lease obligations. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Product revenues | $ 985,683 | $ 917,600 | $ 856,445 |
Cost of sales | 674,570 | 622,563 | 580,066 |
Gross margin | 311,113 | 295,037 | 276,379 |
Operating costs and expenses: | |||
Research and development expenses | 94,515 | 79,583 | 69,211 |
Reimbursed research and development expenses | (12,037) | (6,660) | (9,607) |
Net research and development expenses | 82,478 | 72,923 | 59,604 |
Acquisition transaction expenses | 789 | 743 | |
Selling, general and administrative expenses | 130,522 | 115,252 | 95,456 |
Total operating costs and expenses | 213,789 | 188,918 | 155,060 |
Operating income | 97,324 | 106,119 | 121,319 |
Interest expense | (4,885) | (3,257) | (2,610) |
Revaluation of derivatives loss | (1,102) | ||
Gain on settlement of lawsuit | 9,949 | ||
Foreign currency (loss) gain | (23,108) | 7,810 | 1,121 |
Other (loss) income | (76) | (109) | 261 |
Earnings before income tax | 69,255 | 110,563 | 128,938 |
Income tax expense | 34,028 | 33,965 | 33,545 |
Net income | $ 35,227 | $ 76,598 | $ 95,393 |
Basic earnings per share | $ 0.96 | $ 2.10 | $ 2.65 |
Diluted earnings per share | $ 0.96 | $ 2.09 | $ 2.62 |
Weighted average number of shares—basic | 36,720,749 | 36,448,138 | 36,031,792 |
Weighted average number of shares—diluted | 36,813,719 | 36,600,803 | 36,475,102 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 35,227 | $ 76,598 | $ 95,393 |
Other comprehensive loss, gross of tax: | |||
Net gain (loss) on pension benefit obligations | 244 | (675) | 847 |
Foreign currency translation adjustments | 48,059 | (16,678) | (25,904) |
Unrealized gain (loss) on foreign currency derivative securities | 301 | (1,395) | 10 |
Unrealized gain (loss) on commodity derivative securities | 55 | 743 | (725) |
Other comprehensive loss, gross of tax | 48,659 | (18,005) | (25,772) |
Other comprehensive loss, related tax effects: | |||
Net gain (loss) on pension benefit obligations | (60) | 185 | (234) |
Foreign currency translation adjustments | 148 | 297 | (417) |
Unrealized gain (loss) on foreign currency derivative securities | (81) | 375 | |
Unrealized gain (loss) on commodity derivative securities | (19) | (273) | 496 |
Other comprehensive loss, related tax effect | (12) | 584 | (155) |
Other comprehensive loss, net of tax: | 48,647 | (17,421) | (25,927) |
Comprehensive income: | $ 83,874 | $ 59,177 | $ 69,466 |
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 | Accumulated Earnings |
Beginning Balance at Dec. 31, 2014 | $ 294,219 | $ 243,255 | $ (8,224) | $ (2,673) | $ (23,060) | $ (10) | $ 84,931 | |
Beginning 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 | 36,322,000 | |||||||
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 | ||||||
Exercise of Common Stock options for cash | $ 2,755 | $ 3,662 | (907) | |||||
Exercise of Common Stock options for cash (in shares) | 202,328 | 202,000 | ||||||
Cumulative effect of accounting change due to adoption of ASU 2016-09 | $ 1,496 | 1,496 | ||||||
Common Stock issued to Board of Directors and employees | 6,298 | $ 6,298 | ||||||
Common Stock issued to Board of Directors and employees (in shares) | 242,000 | |||||||
Stock repurchase | (5,326) | $ (5,326) | ||||||
Stock repurchase (in shares) | (164,000) | |||||||
Stock option compensation | 6,209 | 6,209 | ||||||
Cancelation of restricted stock | (1,837) | $ (1,837) | ||||||
Cancelation of restricted stock (in shares) | (53,000) | |||||||
Net gain (loss) on pension benefit obligation, net | 184 | 184 | ||||||
Currency translation, net | 48,207 | 48,207 | ||||||
Foreign currency hedge, net | 220 | 220 | ||||||
Commodity hedge, net | 36 | 36 | ||||||
Net income | 35,227 | 35,227 | ||||||
Ending Balance at Dec. 31, 2017 | $ 553,874 | $ 265,048 | $ 15,625 | $ (2,366) | $ (17,555) | $ (800) | $ 277 | $ 293,645 |
Ending Balance (in shares) at Dec. 31, 2017 | 36,761,362 | 36,761,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net income | $ 35,227 | $ 76,598 | $ 95,393 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 44,972 | 37,764 | 31,029 |
Deferred income taxes | 5,135 | (8,843) | (711) |
Gain on CRS settlement | (9,949) | ||
Revaluation of derivatives | (490) | ||
Stock compensation | 12,507 | 9,186 | 6,018 |
Loss on sale of property and equipment | 1,042 | 468 | 20 |
Loss from write-off of intangible assets | 358 | ||
Provision for doubtful accounts | (469) | 108 | (120) |
Defined benefit pension plan (income) expense | (23) | 184 | 668 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 6,033 | (17,971) | (12,399) |
Inventory | (4,348) | (5,933) | (10,954) |
Prepaid expenses and other assets | (12,334) | 9,106 | (11,122) |
Accounts payable | (7,691) | 4,419 | 8,049 |
Accrued liabilities | (30,171) | 3,314 | 8,922 |
Net cash provided by operating activities | 49,880 | 108,400 | 104,712 |
Investing Activities: | |||
Settlement of derivative financial instruments | (7,593) | ||
Investment in subsidiary, net of cash acquired | (66,994) | (73,593) | 107 |
Investment in development-stage entity | (4,486) | ||
Purchases of property and equipment | (50,785) | (66,316) | (55,490) |
Proceeds from the sale of property and equipment | 91 | 57 | 248 |
Net cash used in investing activities | (117,688) | (144,338) | (62,728) |
Financing Activities: | |||
Cash paid for financing costs | (649) | ||
Borrowing of Debt | 115,000 | 15,000 | |
Repayments of Debt | (27,156) | (42,244) | (5,053) |
Cash paid for the cancellation of restricted stock | (1,837) | (1,196) | (1,475) |
Cash paid for the repurchase of common stock | (5,326) | ||
Excess tax benefit from equity awards | 7,509 | 6,681 | |
Proceeds from the exercise of Common Stock options | 2,755 | 1,438 | 9,273 |
Net cash (used in) provided by financing activities | (31,564) | 79,858 | 24,426 |
Foreign currency effect on cash and cash equivalents | 25,357 | (11,212) | (7,631) |
Net (decrease) increase in cash and cash equivalents | (74,015) | 32,708 | 58,779 |
Cash and cash equivalents at beginning of period | 177,187 | 144,479 | 85,700 |
Cash and cash equivalents at end of period | 103,172 | 177,187 | 144,479 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 4,540 | 3,029 | 2,826 |
Cash paid for taxes | 76,741 | 21,608 | 32,376 |
Supplemental disclosure of non-cash transactions: | |||
Common Stock issued to directors and employees | $ 6,298 | $ 4,589 | $ 3,734 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2017 | |
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. Etratech On November 1, 2017, we acquired substantially all of the assets and assumed substantially all of the operating liabilities of Etratech Inc., an Ontario corporation and all of the outstanding shares of Etratech Hong Kong, an entity organized under the laws of Hong Kong, in an all-cash transaction. Etratech manufactures advanced electronic controls and control systems for the automotive, recreational vehicle, marine, security, medical and other industries. Etratech’s world headquarters and North American manufacturing operations are located in Burlington, Canada. See Note 4 to the consolidated financial statements for additional information regarding the acquisition of Etratech. 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. Management did not observe any event or changes in circumstances that would indicate the carrying amount of our investment may not be recoverable during the years ended December 31, 2017 and 2016. No dividends were paid to Gentherm during the years ended December 31, 2017 and 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 17 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. Note 1 — The Company (Continued) Related to the Reorganization, the Company declared intercompany dividends, incurred and paid 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. In addition to the $7,600 of withholding tax and $2,500 of income taxes, the Reorganization required the Company to make a one-time income tax payment of approximately $32,600. The one-time income tax payment was accrued during the first quarter of 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. The withholding tax payment was paid entirely in 2016. The income tax payments of $2,500 and $32,600 were paid during the first quarter of 2017. 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 major products, including automotive seat comfort systems, specialized automotive cable systems, advanced electronic controls and control 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. All of our activities with respect to electronics are also included in our Automotive segment because a majority of these activities relate to the manufacture of electronic components for our automotive products or the automotive products of third parties. Etratech’s operating results are included within Gentherm’s Automotive segment due to the concentration of product applications with the automotive, RV and marine industries. 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”) and our patient temperature management and environment test equipment is managed by our subsidiary CSZ. 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. Note 1 — The Company (Continued) 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, 2017 | |
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, 2017, 2016 and 2015, 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, the Company changed its classification of prepayments made during the construction of plant assets from prepaid expenses and other assets to other non-current assets on the consolidated balance sheet. The Company reclassified $4,390 from prepaid expenses and other assets to other non-current assets on the December 31, 2016 consolidated balance sheet in order to conform with the current year’s presentation. 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 $88,440 and $162,881 held in foreign jurisdictions as of December 31, 2017 and 2016, 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 U.S. Revolving Note 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. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) 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, 2017 2016 Balance at beginning of year $ 5,443 $ 4,558 Warranty claims paid or retired (979 ) (1,096 ) Expense 507 2,053 Adjustment due to currency translation 411 (72 ) Balance at end of year $ 5,382 $ 5,443 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, 2017, Lear, Adient and Magna comprised 24%, 20% and 7% respectively, of the Company’s accounts receivable balance. As of December 31, 2016, Lear, Adient, and Faurecia comprised 25%, 24% and 7% 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. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) The following is a reconciliation of the changes in the inventory reserve: December 31, 2017 2016 Balance at beginning of year $ 4,790 $ 4,308 Expense 3,521 876 Inventory write off (726 ) (326 ) Adjustment due to currency translation 302 (68 ) Balance at end of year $ 7,887 $ 4,790 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: Asset Category Useful Life Buildings and building improvements 5 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 $32,224, $24,873 and $18,399 for the years ended December 31, 2017, 2016 and 2015, 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, 2015 to December 31, 2017 is as follows: December 31, 2015 $ 27,765 Goodwill arising from the acquisition of CSZ 24,622 Exchange rate impact (652 ) December 31, 2016 $ 51,735 Goodwill arising from the acquisition of Etratech 14,866 Exchange rate impact 3,084 December 31, 2017 $ 69,685 Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) The fair value and corresponding useful lives for acquired intangible assets are listed below as follows: Asset Category Useful Life Customer relationships 8-15 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 $12,425, $12,675 and $12,751 in other intangible assets, including capitalized patent costs, were amortized in 2017, 2016 and 2015, respectively. An estimate of intangible asset amortization by year, is as follows: 2018 $ 12,968 2019 10,041 2020 8,230 2021 10,762 2022 10,334 Thereafter 30,950 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 Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) 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 2017, our revenues from sales to our three largest customers, Lear, Adient and Bosch Automotive were $192,756, $173,964 and $75,370, respectively, representing 20%, 18% and 8% of our total revenues, respectively. 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 $6,994 and $5,604 of reimbursable tooling was capitalized within prepaid expenses and other current assets as of December 31, 2017 and 2016, 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 The Company records 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 base 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. At December 31, 2017 and 2016, a valuation allowance has been provided for certain deferred tax assets which the Company has concluded are more likely than not to not be realized. If future annual taxable income were to be significantly less than current and projected levels, there is a risk that certain of our deferred tax assets not already provided for by the valuation allowance would expire prior to utilization. The Company recognize 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. The Company recognizes interest and penalties related to income tax matters in income tax expense. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) 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. 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 $12,727 and $4,339, respectively, for the year ended December 31, 2017, $8,147 and $2,891, respectively, for the year ended December 31, 2016, and $12,316 and $3,787, respectively, for the year ended December 31, 2015. 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, 2017 | |
Financial Statement Components [Abstract] | |
Details of Certain Financial Statement Components | Note 3 — Details of Certain Financial Statement Components December 31, 2017 2016 Inventory: Raw materials, net of reserve $ 64,175 $ 60,525 Work in process, net of reserve 16,139 13,261 Finished goods, net of reserve 41,095 31,288 $ 121,409 $ 105,074 Property and equipment: Buildings, plant and equipment $ 213,329 $ 151,977 Automobiles 1,281 861 Production tooling 16,540 12,991 Leasehold improvements 15,263 11,695 Computer equipment and software 27,880 21,048 Construction in progress 9,405 20,747 283,698 219,319 Less: Accumulated depreciation * (83,404 ) (47,267 ) $ 200,294 $ 172,052 Other intangible assets: Customer relationships $ 101,213 $ 66,542 Technology 47,641 35,378 Product development costs 12,054 9,602 $ 160,908 $ 111,522 Less: Accumulated amortization (77,622 ) (53,965 ) $ 83,286 $ 57,557 Accrued liabilities: Tax accruals $ 16,169 $ 51,197 Accrued warranty 5,382 5,443 Accrued employee liabilities 25,503 21,323 Liabilities from discounts and rebates 16,057 13,413 Other accrued liabilities 14,098 14,249 $ 77,209 $ 105,625 * Includes accumulated amortization of capital lease obligations. |
Etratech Acquisition
Etratech Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Etratech Inc. | |
Acquisition | Note 4 — Etratech Acquisition Etratech designs, develops, manufactures and sells electronic control modules and control systems to customers across a range of industries, including automotive, recreational vehicles and marine, HVAC systems and medical, amongst others. Each function is part of an integrated, customer-focused process designed to exceed customer expectations for product quality, reliability and cost. Etratech’s global manufacturing footprint will enable us to provide customers with scalable and flexible manufacturing solutions across a variety of application and geographies. Results of operations for Etratech are included in the Company’s consolidated condensed financial statements beginning November 1, 2017. Etratech contributed $8,398 in product revenues and a net loss of $510 for the year ended December 31, 2017. Note 4 – Etratech Acquisition (Continued) Purchase Price Allocation The purchase price of $64,994, net of cash acquired of $670, has been allocated to the values of assets acquired and liabilities assumed as of November 1, 2017. The allocation of the purchase price is preliminary. The Company is in the process of obtaining additional information required to finalize the valuation. An appraisal by an independent third party valuation firm will be completed to assist management in determining the fair value of acquired assets and assumed liabilities, including identifiable intangible assets. The final purchase price allocation may be materially different than the preliminary allocation recorded. The purchase price allocation is expected to be finalized by March 31, 2018. The allocation as of November 1, 2017 was as follows: Accounts receivable $ 12,654 Inventory 7,014 Prepaid expenses and other assets 535 Property and equipment 6,205 Customer relationships 24,774 Technology 8,588 Goodwill 14,866 Assumed liabilities (9,642 ) Net assets acquired 64,994 Cash acquired 670 Purchase price $ 65,664 The gross contractual amount due of accounts receivable is $12,654, all of which is expected to be collectible. Supplemental Pro Forma Information The unaudited pro forma combined historical results including the amounts of Etratech revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2017 or January 1, 2016 are as follows: Twelve Months Ended 2017 2016 Product revenues $ 1,032,273 $ 966,355 Net income $ 35,911 $ 77,577 Basic earnings per share $ 0.98 $ 2.13 Diluted earnings per share $ 0.98 $ 2.12 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. Goodwill We recorded goodwill of approximately $14,866 arising from the acquisition. The acquired goodwill represents intangible assets that do not qualify for separate recognition. It is estimated that approximately $8,651 of the goodwill recognized will not be deductible for income tax purposes. Note 4 – Etratech Acquisition (Continued) Intangible Assets In conjunction with the acquisition, intangible assets of $33,362 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, 2017 Gross Value Accumulated Net Value Useful Life Customer relationships $ 24,774 $ 358 $ 24,416 8 -12 yrs Technology 8,588 277 8,311 5 -6 yrs Total $ 33,362 $ 635 $ 32,727 Amortization expense of $635 for the period November 1, 2017 through December 31, 2017 was recorded as follows: Three Months Ended Twelve Months Ended Product revenues $ 358 $ 358 Research and development expenses 277 277 Amortization expense for the prospective five years is estimated to be as follows: 2018 $ 3,769 2019 $ 3,769 2020 $ 3,769 2021 $ 3,706 2022 $ 3,278 Property, Plant & Equipment Property and equipment consist of the following: Asset category Useful life Amount Leashold improvements 10 yrs $ 342 Machinery and equipment 4-11 yrs 5,248 Furniture and fittings 4 yrs 230 Motor vehicles 3 yrs 25 Computer hardware and software 1 yrs 360 $ 6,205 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 — U.S. Tax Reform The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on all offshore earnings that were previously tax deferred and creates new taxes on certain foreign sourced earnings. As of December 31, 2017, in accordance with guidance provided by Staff Accounting Bulletin No. 118 (SAB 118), the Company has not completed its accounting for the tax effects of the Tax Act; however, in certain cases, as described below, the Company has made a provisional estimate of the effects on our existing deferred tax balances and the one-time transition tax. For the year ended December 31, 2017, the provision for income taxes includes a provisional income tax expense of $20,153 related to items for which the Company was able to determine a reasonable estimate. In all cases, we will continue to make and refine our calculations as additional analysis is completed. In addition, the Company’s estimates may be affected as additional regulatory guidance is issued with respect to the Tax Act. Any adjustments to the provisional amounts will be recognized as a component of the provision for income taxes in the period in which such adjustments are determined, but in any event, no later than the fourth quarter of 2018, in accordance with SAB 118. Deferred tax assets and liabilities The Company remeasured its U.S. deferred tax assets and liabilities at 21%. However, the Company is still analyzing certain aspects of the Tax Act and refining the calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In the year ended December 31, 2017, the provision for income taxes includes provisional income tax expense of $5,808 related to the remeasurement of deferred tax balances. Transition Tax on Deferred Foreign Earnings The one-time transition tax is based on the Company’s post-1986 earnings and profits (“E&P”) that were previously deferred from U.S. income taxes. In the year ended December 31, 2017, the provision for income taxes includes provisional income tax expense of $23,923 related to the one-time transition tax liability of the Company’s foreign subsidiaries. The Company has not completed its calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 E&P previously deferred from U.S. income taxes and the amounts held in cash or other specified assets. A benefit of $9,578 was included in the provision for income taxes to offset the one-time transition tax related to the previous deferred tax liability that existed for the undistributed foreign earnings that were not permanently reinvested. However, we continue to recognize a deferred tax liability related to foreign withholding tax that will be incurred for undistributed foreign earnings that are not permanently reinvested. Note 5 — The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following: December 31, 2017 2016 Deferred tax assets: Net operating losses 12,731 13,643 Research and development credits 27,257 23,012 Depreciation 5,571 5,457 Valuation reserves and accrued liabilities 6,020 9,667 Foreign tax credit — 6,926 Stock compensation 3,955 4,508 Inventory 2,062 1,571 Patents 163 218 Defined benefit obligation 1,977 2,306 Other credits 589 639 Unrealized foreign currency exchange loss 2,556 — Other 36 116 62,917 68,063 Valuation allowance (27,578 ) (19,304 ) Deferred tax liabilities: Intangible assets (2,925 ) (8,442 ) Unrealized foreign currency exchange gains — (285 ) Undistributed profits of subsidiary (6,450 ) (12,002 ) Property and equipment (1,611 ) (470 ) Other (548 ) (319 ) (11,534 ) (21,518 ) Net deferred tax asset $ 23,805 $ 27,241 Note 5 — 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, 2017 are as follows: Year Ended December 31, 2017 2016 2015 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 % Change in valuation allowance 10.6 % 5.3 % (1.9 %) Foreign, state and local tax, net of Federal benefit 0.8 % 1.1 % 1.6 % Nondeductible expenses 2.4 % 2.4 % 1.8 % Stock option compensation (2.2 %) — (0.1 %) Research and development credits (4.6 %) (0.7 %) (0.9 %) Effect of different tax rates of foreign jurisdictions (20.8 %) (15.0 %) (12.1 %) Undistributed profits of subsidiaries 5.8 % 7.9 % 2.4 % Tax reform items 29.1 % — — Other tax exempt income — — (0.1 %) Tax effects of intercompany transfers (5.0 %) (5.3 %) — Other (1.0 %) (0.3 %) 0.3 % Effective rate 49.1 % 30.7 % 26.0 % The Company has Net Operating Loss (“NOL”) carryforwards as follows: Jurisdiction Amount as of Years of Expiration U.S. Federal and state income tax $ 61,302 2018- 2036 Foreign $ 12,499 2018-2037 Foreign $ 24,911 Indefinite 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. We have incurred NOLs in various states associated with the benefits of the state dividends received reduction along with the foreign royalty exclusion. The state net operating loss carryforwards expire at various dates from 2018 to 2036. Management has concluded that it is more likely than not that a majority of these NOLs will not be utilized, and thus has not recognized the benefit of these NOLs. At December 31, 2017, certain non-U.S. subsidiaries have net operating loss carryforwards totaling $37,410. This amount includes $12,499 in NOLs that expire at various dates from 2018 through 2037 and the remaining $24,911 have no expiration date. The Company has a valuation allowance recorded against $22,294 of the total non-U.S. subsidiaries’ net operating loss carryforwards as of December 31, 2017. In 2014 through 2017, we incurred NOLs in Vietnam associated with the startup activities of new production facilities. In 2015 through 2016, we incurred a loss in Ukraine associated with foreign currency losses. The remaining NOLs are expected to be utilized in 2018 through 2019 as the locations maintain profitability. We also incur NOLs in Luxembourg associated with our foreign holding company legal 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. Note 5 — On January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Under the new standard, income tax benefits and deficiencies are recognized as an 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 period they occur. The update also requires the Company to recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. The standard also required a modified retrospective adoption for previously unrecognized excess tax benefits. Accordingly, the Company recognized a deferred tax asset and a corresponding credit to retained earnings equal to $1,496 in conjunction with the adoption. The effects of adopting the other provisions of ASU 2016-09 resulted in approximately 2% reduction of the effective tax rate during 2017. The earnings before income taxes and our tax provision are comprised of the following: Year Ended December 31, 2017 2016 2015 Income before income taxes : Domestic $ 1,258 $ 12,981 $ 25,508 Foreign 67,997 97,582 103,430 Total income before income taxes $ 69,255 $ 110,563 $ 128,938 Year Ended December 31, 2017 2016 2015 Current income tax expense: Federal $ 4,140 $ 9,215 $ 8,428 State and local 150 749 606 Foreign 24,672 32,844 24,622 Total current income tax expense $ 28,962 $ 42,808 $ 33,656 Deferred income tax expense (benefit): Federal $ 15,207 $ (10,597 ) $ (3,051 ) State and local 2,308 (742 ) (183 ) Foreign (12,449 ) 2,496 3,123 Total deferred income tax expense $ 5,066 $ (8,843 ) $ (111 ) Total tax expense $ 34,028 $ 33,965 $ 33,545 As of December 31, 2017, the previously recognized deferred taxes related to earnings from foreign subsidiaries has been reversed since all of these earnings are subject to the one-time transition tax and are not taxable upon repatriation to the United States. However, the Company continues to provide a deferred tax liability for foreign withholding tax that will be incurred with respect to the undistributed foreign earnings that are not permanently reinvested. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of December 31, 2017, the Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2014 and is no longer subject to foreign examinations by tax authorities for tax years before 2009. Note 5 — 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 2017 and 2016, 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 2017 and 2016 was, therefore, immaterial. At December 31, 2017, 2016 and 2015, the Company had total unrecognized tax benefits of $4,522, $4,486 and $4,443, 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, 2017 2016 2015 Balance at beginning of year $ 4,486 $ 4,443 $ 4,651 Additions based on tax position related to current year 1,758 80 — Additions based on tax positions related to prior year (4 ) 366 262 Reductions from settlements and statute of limitation expiration (2,247 ) (299 ) (19 ) Effect of foreign currency translation 529 (104 ) (451 ) Balance at end of year $ 4,522 $ 4,486 $ 4,443 The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2017, 2016 and 2015 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, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 — 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 provides the Company a revolving credit note (“U.S. Revolving Note”) with a maximum borrowing capacity of $350,000. All subsidiary borrowers and guarantors participating in the 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 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 Credit Agreement restricts the amount of dividend payments the Company can make to shareholders. The Credit Agreement requires the Company to maintain a minimum Consolidated Interest Coverage Ratio and a Consolidated Leverage Ratio. Definitions for these financial ratios are provided in the Credit Agreement. Under the 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 (1.33% at December 31, 2017) plus 0.50%, Bank of America’s prime rate (4.50% at December 31, 2017), or a one month Eurocurrency rate (0.00% at December 31, 2017) plus 1.00%. The Eurocurrency rate for loans denominated in U.S. Dollars is equal to the London Interbank Offered Rate (1.56% at December 31, 2017). 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 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 that began November, 2017 and will end 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, 2017, we were in compliance with all terms as outlined in the Credit Agreement, DEG China Loan and DEG Vietnam Loan. Undrawn borrowing capacity under the U.S. Revolving Note was $220,859 as of December 31, 2017. The following table summarizes the Company’s debt at December 31, 2017. Interest Principal Credit Agreement: U.S. Revolving Note (U.S. Dollar Denominations) 3.07 % $ 129,000 DEG China Loan 4.25 % 1,919 DEG Vietnam Loan 5.21 % 13,750 Total debt $ 144,669 Current portion (3,460 ) Long-term debt, less current maturities $ 141,209 The following table summarizes the Company’s debt at December 31, 2016. Interest Principal Credit Agreements: 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 scheduled principal maturities of our debt as of December 31, 2017 is as follows: Year U.S. DEG China Loan DEG Vietnam Loan Total 2018 $ — $ 960 $ 2,500 $ 3,460 2019 — 959 2,500 3,459 2020 — — 2,500 2,500 2021 129,000 — 2,500 131,500 2022 — — 2,500 2,500 Thereafter — — 1,250 1,250 Total $ 129,000 $ 1,919 $ 13,750 $ 144,669 |
Accounting for Stock Based Comp
Accounting for Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
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. On May 19, 2017 the 2013 Plan was amended, increasing the amount of available shares by 2,000,000. 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), were reduced to zero; however, some options under the 2011 and 2006 Plans are still outstanding. As of December 31, 2017 the Company had an aggregate of 1,751,554 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, 2017, 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, 2017, no performance based, unvested stock options, SARs or restricted stock 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 $18,593 and $17,258 as of December 31, 2017 and 2016, respectively. That cost is expected to be recognized over a weighted average period of three years. Compensation expense for the years ended December 31, 2017, 2016 and 2015 was $12,727, $8,147 and $12,316, respectively. No share-based payment arrangements expired during the three-year period ended December 31, 2017. If Gentherm were to realize expired shared-based payment arrangements, they would be reported as a forfeit in the activity roll forward tables below. Note 7 — Stock Options The following table summarizes stock option activity during the three year period ended December 31, 2017: Options Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2014 1,674,534 $ 19.14 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 Granted 808,500 37.23 Exercised (202,328 ) 13.62 Forfeited (57,500 ) 42.54 Outstanding at December 31, 2017 2,652,142 $ 35.34 4.76 $ 6,964 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 Exercisable at December 31, 2017 984,374 $ 29.84 3.44 $ 6,534 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: 2017 2016 2015 Expected volatility 33% 37% 35% Weighted average expected volatility 33% 37% 35% Expected lives 3 yrs. 3 yrs. 3 yrs. Risk-free interest rate 1.49-1.93% 0.90-1.07% 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, 2017, 2016 and 2015 was $9.11, $10.74 and $10.60, respectively. The total intrinsic value of options exercised during the year ended December 31, 2017, 2016 and 2015 was $4,715, $2,456 and $18,745, respectively. Note 7 — Restricted Stock The following table summarizes restricted stock activity during the three year period ended December 31, 2017: Unvested Restricted Shares Shares Weighted- Nonvested 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 Granted 237,542 37.30 Vested (165,923 ) 37.99 Forfeited — — Outstanding at December 31, 2017 282,100 $ 38.06 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 2017, 2016 and 2015 was $6,006, $3,865 and $4,088, respectively. Stock Appreciation Rights The following table summarizes SARs activity during the three year period ended December 31, 2017: Stock Appreciation Rights Units Weighted- Weighted- Aggregate Outstanding at December 31, 2014 1,060,250 $ 29.97 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 Granted 235,000 38.05 Exercised (94,250 ) 22.21 Forfeited (193,000 ) 32.53 Outstanding at December 31, 2017 1,192,350 $ 38.17 4.36 $ 2,278 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 Exercisable at December 31, 2017 613,808 $ 37.68 3.72 $ 1,904 Note 7 — The total intrinsic value of SARs converted during the year ended December 31, 2017, 2016 and 2015 was $1,495, $261 and $4,185, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 8 — 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, 2017 2016 2015 Weighted average number of shares for calculation of basic EPS – Common Stock 36,720,749 36,448,138 36,031,792 Stock options under equity incentive plans 92,970 152,665 443,310 Weighted average number of shares for calculation of diluted EPS – Common Stock 36,813,719 36,600,803 36,475,102 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, 2017 2016 2015 Stock options outstanding for equity incentive plans 2,055,784 1,314,784 17,534 See Note 7 for information about the Company’s different equity incentive plans. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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. We do not have lease arrangements with related parties. A summary of lease and construction commitments as of December 31, 2017, under all non-cancelable operating leases with terms exceeding one year is as follows: 2018 $ 10,630 2019 6,966 2020 3,629 2021 2,106 2022 1,916 2023 or later 3,811 Total $ 29,058 The Company does not have any outstanding capital lease agreements or purchase obligations that exceed one year. Rent expense under all of the Company’s operating leases was $8,424, $7,479 and $6,660 for 2017, 2016 and 2015, 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, 2017 and 2016, respectively. No material legal proceeding was terminated, settled or otherwise resolved during the fiscal year ended December 31, 2017 and 2016, respectively. |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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 Etratech on November 1, 2017. The acquisition enhances key elements of our business strategy by greatly expanding our knowledge and capability to produce in-house electronic components for next generation intelligent thermal management products. 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. All of our activities with respect to electronics are also included in our Automotive segment because a majority of these activities relate to the manufacture of electronic components for our automotive products or the automotive products of third parties. Etratech’s operating results are included within Gentherm’s Automotive segment due to the concentration of Etratech’s product applications within the automotive, RV and marine industries. 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. Unlike research and development that relates to a specific product application for a customer, advanced research and development activities affect products and technologies that aren’t currently generating product revenue. 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, 2017, 2016 and 2015. 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, 2017, goodwill assigned to our Automotive and Industrial segments were $38,912 and $30,773, respectively. As of December 31, 2016, goodwill assigned to our Automotive and Industrial segments were $20,962 and $30,773, respectively. Automotive Industrial Reconciling Consolidated 2017: Product revenues $ 879,457 $ 106,226 $ — $ 985,683 Depreciation and amortization 36,801 5,399 2,772 44,972 Operating income (loss) 166,604 (14,751 ) (54,529 ) 97,324 2016: Product revenues $ 847,428 $ 70,172 $ — $ 917,600 Depreciation and amortization 31,826 3,789 2,149 37,764 Operating income (loss) 174,027 (16,702 ) (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 The Industrial operating loss is net of reimbursement for developmental expense of $2,116, $641 and $2,483 for the years ended 2017, 2016 and 2015, respectively. Reconciling items include selling, general and administrative costs of $43,457, $39,059 and $32,116, respectively, for the years ended December 31, 2017, 2016 and 2015 and acquisition costs of $789, $743 and $0 for the years ended December 31, 2017, 2016 and 2015, respectively. Revenue (based on shipment destination) by geographic area is as follows: 2017 % 2016 % 2015 % United States $ 454,669 46 % $ 449,065 49 % $ 393,206 46 % China 93,645 9 % 80,493 9 % 76,864 9 % Germany 71,768 7 % 70,258 8 % 74,003 9 % South Korea 64,715 7 % 75,396 8 % 84,758 10 % Japan 57,467 6 % 45,103 5 % 46,058 5 % Canada 46,368 5 % 37,954 4 % 27,076 3 % Czech Republic 38,828 4 % 38,164 4 % 28,273 3 % United Kingdom 36,033 4 % 28,540 3 % 25,952 3 % Mexico 22,684 2 % 22,767 2 % 28,274 3 % Other 99,506 10 % 69,860 8 % 71,981 9 % Total Non U.S. 531,014 54 % 468,535 51 % 463,239 54 % $ 985,683 100 % $ 917,600 100 % $ 856,445 100 % Note 11 — Segment Reporting (Continued) 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: 2017 2016 2015 Lear (domestic) 20 % 21 % 22 % Adient (domestic) 18 % 21 % 23 % Bosch (foreign) 8 % 8 % 9 % |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
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 former Chief Executive Officer, Daniel R. Coker, is the only participant in the Plan. On May 10, 2017 the Company amended (the “Plan Amendment”) the Plan. Prior to the Plan Amendment, the Plan provided for 15 annual retirement benefit payments of $300,000 each beginning January 1, 2018. Mr. Coker became fully vested in the benefits under the Benefit Plan on April 1, 2017. The Plan Amendment provided that if Mr. Coker continued to provide employment service to the Company through and including January 1, 2018, the fifteen annual retirement benefit payments would be increased to $342,000, otherwise the 15 annual retirement benefits would remain at $300,000. On June 28, 2017, the same day a leader transition plan leading up to Mr. Coker’s retirement was announced, the Company entered into a Retirement Agreement with Mr. Coker (the “Retirement Agreement”). The Retirement Agreement provided that if Mr. Coker’s retirement date was prior to January 1, 2018, the Company would amend the terms of the Plan, as amended, to accelerate the in-service vesting date to ensure an increase in the annual accrued benefit from $300,000 to $342,000. Mr. Coker became fully vested in the incremental benefit, as described in the Plan Amendment, on December 4, 2017. 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: 2017 2016 Change in projected benefit obligation: Benefit obligation at beginning of year $ 3,419 $ 2,898 Service cost 101 387 Interest cost 111 98 Actuarial (gain) loss 78 36 Prior service cost 509 — Benefit obligation at end of year $ 4,218 $ 3,419 Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) The portion of the benefit obligation from the Plan expected to be paid in 2018 is classified as a current liability within accrued liabilities in the Company’s consolidated balance sheet. The remaining portion is classified as a non-current liability within pension benefit obligations. 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 2.95%, 3.25% and 3.40% was used to determine the benefit obligation for the years ended December 31, 2017, 2016 and 2015, respectively. A discount rate assumption of 3.25%, 3.40% and 3.25% was used to determine and the net periodic service cost for years ended December 31, 2017, 2016 and 2015, respectively. Prior service costs reflect an increase to the projected benefit obligation as a result of the Plan Amendment, which retroactively increased benefits. Prior service cost is included in selling, general and administrative expenses in the Company’s consolidated statements of income. 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 $2,353 and $2,112 as of December 31, 2017 and 2016, 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, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Service cost $ 101 $ 387 $ 379 Interest cost 111 98 80 Amortization of actuarial losses — — 27 Amortization of prior service cost 509 — — Net periodic benefit cost $ 721 $ 485 $ 486 Pretax amounts recognized in other comprehensive income for the years ended December 31, 2017, 2016 and 2015 are as follows 2017 2016 2015 Actuarial Losses/(gains) $ 78 $ 36 $ (35 ) Amortization of actuarial losses — — (27 ) Establish prior service cost 509 — — Amortization prior service cost (509 ) — — $ 78 $ 36 $ (62 ) Tax benefit of $26 was recognized in other comprehensive income related to the Plan for the year ended December 31, 2017. 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 years ended December 31, 2015. Pretax unrecognized actuarial losses recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost were $380 and $302 as of December 31, 2017 and 2016, respectively. No amount of pretax unrecognized actuarial loss recorded in accumulated other comprehensive income as of December 31, 2017 are expected to be recognized as components of net periodic benefit cost in the year ending December 31, 2018. Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) 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: 2017 2016 Change in projected benefit obligation: Benefit obligation at beginning of year $ 7,326 $ 6,980 Interest cost 130 154 Paid pension distributions (272 ) (261 ) Actuarial (gains)/losses (257 ) 691 Exchange rate impact 1,000 (238 ) Benefit obligation at end of year $ 7,927 $ 7,326 The following table sets forth the fair value of the plan assets for the periods ending December 31, 2017 and 2016: 2017 2016 Change in plan assets: Plan assets at beginning of year $ 3,326 $ 3,333 Actual return on plan assets 121 125 Contributions 272 261 Paid pension distributions (272 ) (261 ) Actuarial losses (28 ) (27 ) Exchange rate impact 472 (105 ) Plan assets at end of year $ 3,891 $ 3,326 The $4,036 and $4,000 net liability from the Gentherm GmbH plan as of December 31, 2017 and 2016, respectively, is classified as a noncurrent liability in pension benefit obligation. Pretax amounts recognized in other comprehensive (loss) income for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Actuarial (gains)/losses $ (229 ) $ 718 $ (154 ) Amortization of actuarial losses (78 ) (48 ) (59 ) Amortization of prior service cost — — (572 ) $ (307 ) $ 670 $ (785 ) Tax expense of $86 was recognized in other comprehensive income related to the Gentherm GmbH defined benefit plan for the year ended December 31, 2017. Tax benefit of $171 and tax expense of $211 were recognized in other comprehensive income for the years ended December 31, 2016 and 2015, respectively. Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) Pretax unrecognized actuarial losses recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost were $2,416 and $2,406 as of December 31, 2017 and 2016, respectively. We expect $74 of pretax unrecognized actuarial loss recorded in accumulated other comprehensive income as of December 31, 2017 to be recognized as components of net periodic benefit cost in the year ending December 31, 2018. Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Interest cost $ 130 $ 154 $ 142 Return on plan assets (121 ) (125 ) (126 ) Amortization of prior service cost — — 572 Amortization of actuarial loss (gains) 78 48 59 Net periodic benefit cost $ 87 $ 77 $ 647 The Gentherm GmbH defined benefit plan is underfunded by $4,036 and $4,000 as of December 31, 2017 and 2016, 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: 2017 2016 2015 Discount rate 1.93 % 1.69 % 2.21 % Expected long term rate of return on plan assets 3.40 % 3.40 % 3.70 % 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 2018 $ 293 2019 291 2020 289 2021 287 2022 283 2023 - 2027 1,392 Total $ 2,835 Note 12 — Pension and Other Post Retirement Benefit Plans (Continued) 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 $1,396, $1,289 and $959 in matching contributions to the 401(k) plan in 2017, 2016 and 2015, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016. 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). As of December 31, 2017 and 2016, 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, 2017, the carrying values of the DEG Vietnam Loan and DEG China Loan were $13,750 and $1,919, respectively, as compared to an estimated fair value of $13,600 and $2,000, respectively. As of December 31, 2016, the carrying value of the DEG Vietnam Loan and DEG China Loan were $15,000 and $2,525, as compared to an estimated fair value of $14,900 and $2,600, 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. As of December 31, 2017 and 2016, the Company did not realize any changes to the fair value of these assets due to the non-occurrence of events or circumstances that could negatively impact their recoverability. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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 $29,273 and $29,538 outstanding at December 31, 2017 and 2016, 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 $404 and $407 outstanding at December 31, 2017 and 2016, 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, 2016 that was reclassified into earnings during 2017. 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. 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. Note 14 — Derivative Financial Instruments (Continued) Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2017 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 assets $ 141 Current liabilities $ (1,050 ) $ (909 ) Commodity derivatives Cash flow hedge Level 2 Current assets $ 72 $ 72 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 effect of derivative instrument`s on our consolidated statements of income is as follows: Location Year Year Foreign currency derivatives Product Revenues $ (3 ) $ — Cost of sales 2,209 (608 ) Selling, general and administrative (216 ) 139 Other comprehensive (loss) income 302 (1,395 ) Foreign currency gain (112 ) 102 Total foreign currency derivatives $ 2,180 $ (1,762 ) Commodity derivatives Cost of sales $ 202 $ (666 ) Other comprehensive income (loss) $ 54 $ 743 Total commodity derivatives $ 256 $ 77 We did not incur any hedge ineffectiveness during the years ended December 31, 2017 and 2016. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Pronouncements Disclosure | Note 15 — New Accounting Pronouncements Derivatives and Hedging In August, 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 expands the number and type of nonfinancial and interest rate risk components an entity has the ability to designate as the hedged risk in a qualifying hedging relationship. ASU 2017-12 requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedge item is reported. This approach simplifies the financial statement reporting for qualifying hedging relationships by eliminating the requirement to separately report the portion of the hedge deemed to be ineffective. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income and reclassified to earnings when the hedged item affects earnings. Furthermore, income statement effects from fair value and cash flow hedges are to be presented in tabular disclosure. ASU 2017-12 is effective for annual and any interim periods beginning after December 15, 2018. Early adoption of the amendments in this update are permitted. For cash flow hedges existing at the date of adoption, an entity should apply a cumulative catch-up adjustment related to eliminating the separate measurement of ineffectiveness to accumulative other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. We are currently in the process of determining the impact the implementation of ASU 2017-12 will have on the Company’s financial statements. Share-Based Payment Awards In May, 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” ASU 2017-09 clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting, in accordance with Topic 718. An entity should account for the effect of a modification unless all of the following are met: 1) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified. If the modification does not affect any of the inputs of the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for annual and any interim periods beginning after December 15, 2017. Early adoption of the amendments in this update is permitted. The amendments in ASU 2017-09 should be applied on a prospective basis and in the initial period of adoption, entities must disclose the nature of and reason for the change in accounting principle. The Company has not historically made changes to the terms or conditions of shared-based payment awards and does not expect adoption of ASU 2017-09 to have a material impact the consolidated financial statements when it is adopted in the first quarter of 2018. Note 15 — New Accounting Pronouncements (Continued) Goodwill Impairment In January, 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 modified the concept of impairment of goodwill to be a condition that exists when the carrying value of a reporting unit that includes goodwill exceeds its fair value. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. Entities no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. ASU 2017-04 is effective for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of the amendments in this update is permitted. The amendments in ASU 2017-04 must be applied on a prospective basis and in the initial period of adoption, entities must disclose the nature of and reason for the change in accounting principle. The Company expects adoption of ASU 2017-04 will reduce the complexity of evaluating goodwill for impairment. 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 cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We have evaluated the impact the amendments in ASU 2016-16 will have on the Company's consolidated financial statements and determined that a favorable adjustment of approximately $27,771 will be recorded directly to retained earnings during the three month period ending March 31, 2018. 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 focused its evaluation on 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. Note 15 — New Accounting Pronouncements (Continued) 4) Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities. 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 is permitted. None of the cash receipt and cash payment transactions, including those that were not the focus of management’s evaluation, addressed by the update are transactions that are typical or customary to Gentherm business. According, management does not expect the amendments in this update have a material impact to the Company. Gentherm will adopt the amendments in ASU 2016-15 during the three-month period ending March 31, 2018. 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. ASU 2016-09 requires excess tax benefits to be classified along with other income tax cash flows as an operating activity and clarifies that cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016. The Company adopted ASU 2016-09 the first quarter of 2017 and recognized a $1,496 adjustment to the beginning balance of retained earnings for previously unrecognized excess tax benefits on share-based payment awards. Amendments related to the presentation of employee taxes paid on the statements of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement were applied retrospectively to all periods presented. Amendments requiring recognition of excess tax payments in the income statement and the classification of those excess tax benefits on the statement of cash flows were applied prospectively, beginning with the three month period ended March 31, 2017. Excess tax benefits on share-based payment awards in the statement of cash flows in prior years have not been adjusted. 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. Note 15 — New Accounting Pronouncements (Continued) 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 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. This 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 have chosen to use the cumulative catch-up transition method. Gentherm is substantially complete in performing 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. An unfavorable adjustment will be recorded directly to retained earnings during the three month period ending March 31, 2018. Our current estimate for the adjustment approximates $3,600. We are not aware of any impacts to revenue from contracts with customers at Etratech as a result of our assessment of potential impacts from the update. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | N ote 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, 2017, December 31, 2016 and December 31, 2015 are as follows: Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2016 $ (2,550 ) $ (65,762 ) $ 241 $ (1,020 ) $ (69,091 ) Other comprehensive income (loss) before reclassifications 166 48,059 254 2,123 50,602 Income tax effect of other comprehensive income (loss) before reclassifications (60 ) 148 (93 ) (570 ) (575 ) Amounts reclassified from accumulated other comprehensive income (loss) into net income 78 — (199 ) (1,822 ) (1,943 ) Income taxes reclassified into net income — — 74 489 563 Net current period other comprehensive income (loss) 184 48,207 36 220 48,647 Balance at December 31, 2017 $ (2,366 ) (17,555 ) 277 (800 ) (20,444 ) (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, 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. Note 16 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – (Continued) 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. 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. |
Cincinnati Sub-Zero Acquisition
Cincinnati Sub-Zero Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Cincinnati Sub-Zero Products, LLC | |
Acquisition | Note 17 — 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 17 – 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 17 – 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 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 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | GENTHERM INCORPORATED SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2017, 2016 and 2015 (In thousands) Description Balance at Charged to Charged to Deductions Balance at Allowance for Doubtful Accounts 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 Year Ended December 31, 2017 1,391 1,239 51 (1,708 ) 973 Allowance for Deferred Income Tax Assets 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 Year Ended December 31, 2017 19,304 6,700 1,574 — 27,578 Reserve for Inventory 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 Year Ended December 31, 2017 4,790 3,521 302 (726 ) 7,887 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The consolidated financial statements at and for the years ended December 31, 2017, 2016 and 2015, 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, the Company changed its classification of prepayments made during the construction of plant assets from prepaid expenses and other assets to other non-current assets on the consolidated balance sheet. The Company reclassified $4,390 from prepaid expenses and other assets to other non-current assets on the December 31, 2016 consolidated balance sheet in order to conform with the current year’s presentation. |
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 $88,440 and $162,881 held in foreign jurisdictions as of December 31, 2017 and 2016, 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 U.S. Revolving Note 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, 2017 2016 Balance at beginning of year $ 5,443 $ 4,558 Warranty claims paid or retired (979 ) (1,096 ) Expense 507 2,053 Adjustment due to currency translation 411 (72 ) Balance at end of year $ 5,382 $ 5,443 |
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, 2017, Lear, Adient and Magna comprised 24%, 20% and 7% respectively, of the Company’s accounts receivable balance. As of December 31, 2016, Lear, Adient, and Faurecia comprised 25%, 24% and 7% 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. Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) The following is a reconciliation of the changes in the inventory reserve: December 31, 2017 2016 Balance at beginning of year $ 4,790 $ 4,308 Expense 3,521 876 Inventory write off (726 ) (326 ) Adjustment due to currency translation 302 (68 ) Balance at end of year $ 7,887 $ 4,790 |
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: Asset Category Useful Life Buildings and building improvements 5 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 $32,224, $24,873 and $18,399 for the years ended December 31, 2017, 2016 and 2015, 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, 2015 to December 31, 2017 is as follows: December 31, 2015 $ 27,765 Goodwill arising from the acquisition of CSZ 24,622 Exchange rate impact (652 ) December 31, 2016 $ 51,735 Goodwill arising from the acquisition of Etratech 14,866 Exchange rate impact 3,084 December 31, 2017 $ 69,685 Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued) The fair value and corresponding useful lives for acquired intangible assets are listed below as follows: Asset Category Useful Life Customer relationships 8-15 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 $12,425, $12,675 and $12,751 in other intangible assets, including capitalized patent costs, were amortized in 2017, 2016 and 2015, respectively. An estimate of intangible asset amortization by year, is as follows: 2018 $ 12,968 2019 10,041 2020 8,230 2021 10,762 2022 10,334 Thereafter 30,950 Goodwill Impairment In January, 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 modified the concept of impairment of goodwill to be a condition that exists when the carrying value of a reporting unit that includes goodwill exceeds its fair value. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. Entities no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. ASU 2017-04 is effective for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of the amendments in this update is permitted. The amendments in ASU 2017-04 must be applied on a prospective basis and in the initial period of adoption, entities must disclose the nature of and reason for the change in accounting principle. The Company expects adoption of ASU 2017-04 will reduce the complexity of evaluating goodwill for impairment. |
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 2017, our revenues from sales to our three largest customers, Lear, Adient and Bosch Automotive were $192,756, $173,964 and $75,370, respectively, representing 20%, 18% 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 $6,994 and $5,604 of reimbursable tooling was capitalized within prepaid expenses and other current assets as of December 31, 2017 and 2016, 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 The Company records 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 base 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. At December 31, 2017 and 2016, a valuation allowance has been provided for certain deferred tax assets which the Company has concluded are more likely than not to not be realized. If future annual taxable income were to be significantly less than current and projected levels, there is a risk that certain of our deferred tax assets not already provided for by the valuation allowance would expire prior to utilization. The Company recognize 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. The Company recognizes 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 cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We have evaluated the impact the amendments in ASU 2016-16 will have on the Company's consolidated financial statements and determined that a favorable adjustment of approximately $27,771 will be recorded directly to retained earnings during the three month period ending March 31, 2018. |
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. Derivatives and Hedging In August, 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 expands the number and type of nonfinancial and interest rate risk components an entity has the ability to designate as the hedged risk in a qualifying hedging relationship. ASU 2017-12 requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedge item is reported. This approach simplifies the financial statement reporting for qualifying hedging relationships by eliminating the requirement to separately report the portion of the hedge deemed to be ineffective. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income and reclassified to earnings when the hedged item affects earnings. Furthermore, income statement effects from fair value and cash flow hedges are to be presented in tabular disclosure. ASU 2017-12 is effective for annual and any interim periods beginning after December 15, 2018. Early adoption of the amendments in this update are permitted. For cash flow hedges existing at the date of adoption, an entity should apply a cumulative catch-up adjustment related to eliminating the separate measurement of ineffectiveness to accumulative other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. We are currently in the process of determining the impact the implementation of ASU 2017-12 will have on the Company’s financial statements. |
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 $12,727 and $4,339, respectively, for the year ended December 31, 2017, $8,147 and $2,891, respectively, for the year ended December 31, 2016, and $12,316 and $3,787, respectively, for the year ended December 31, 2015. Share-Based Payment Awards In May, 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” ASU 2017-09 clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting, in accordance with Topic 718. An entity should account for the effect of a modification unless all of the following are met: 1) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified. If the modification does not affect any of the inputs of the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for annual and any interim periods beginning after December 15, 2017. Early adoption of the amendments in this update is permitted. The amendments in ASU 2017-09 should be applied on a prospective basis and in the initial period of adoption, entities must disclose the nature of and reason for the change in accounting principle. The Company has not historically made changes to the terms or conditions of shared-based payment awards and does not expect adoption of ASU 2017-09 to have a material impact the consolidated financial statements when it is adopted in the first quarter of 2018. 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. ASU 2016-09 requires excess tax benefits to be classified along with other income tax cash flows as an operating activity and clarifies that cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016. The Company adopted ASU 2016-09 the first quarter of 2017 and recognized a $1,496 adjustment to the beginning balance of retained earnings for previously unrecognized excess tax benefits on share-based payment awards. Amendments related to the presentation of employee taxes paid on the statements of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement were applied retrospectively to all periods presented. Amendments requiring recognition of excess tax payments in the income statement and the classification of those excess tax benefits on the statement of cash flows were applied prospectively, beginning with the three month period ended March 31, 2017. Excess tax benefits on share-based payment awards in the statement of cash flows in prior years have not been adjusted. |
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 focused its evaluation on 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. Note 15 — New Accounting Pronouncements (Continued) 4) Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities. 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 is permitted. None of the cash receipt and cash payment transactions, including those that were not the focus of management’s evaluation, addressed by the update are transactions that are typical or customary to Gentherm business. According, management does not expect the amendments in this update have a material impact to the Company. Gentherm will adopt the amendments in ASU 2016-15 during the three-month period ending March 31, 2018. |
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. |
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 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. This 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 have chosen to use the cumulative catch-up transition method. Gentherm is substantially complete in performing 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. An unfavorable adjustment will be recorded directly to retained earnings during the three month period ending March 31, 2018. Our current estimate for the adjustment approximates $3,600. We are not aware of any impacts to revenue from contracts with customers at Etratech as a result of our assessment of potential impacts from the update. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Balance at beginning of year $ 5,443 $ 4,558 Warranty claims paid or retired (979 ) (1,096 ) Expense 507 2,053 Adjustment due to currency translation 411 (72 ) Balance at end of year $ 5,382 $ 5,443 |
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, 2017 2016 Balance at beginning of year $ 4,790 $ 4,308 Expense 3,521 876 Inventory write off (726 ) (326 ) Adjustment due to currency translation 302 (68 ) Balance at end of year $ 7,887 $ 4,790 |
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 5 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, 2015 to December 31, 2017 is as follows: December 31, 2015 $ 27,765 Goodwill arising from the acquisition of CSZ 24,622 Exchange rate impact (652 ) December 31, 2016 $ 51,735 Goodwill arising from the acquisition of Etratech 14,866 Exchange rate impact 3,084 December 31, 2017 $ 69,685 |
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 8-15 years Technology 5-10 years Production Development Costs 4 years |
W.E.T | |
Estimate of Total Intangible Asset Amortization | An estimate of intangible asset amortization by year, is as follows: 2018 $ 12,968 2019 10,041 2020 8,230 2021 10,762 2022 10,334 Thereafter 30,950 |
Details of Certain Financial 28
Details of Certain Financial Statement Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Statement Components [Abstract] | |
Details of Certain Financial Statement Components | December 31, 2017 2016 Inventory: Raw materials, net of reserve $ 64,175 $ 60,525 Work in process, net of reserve 16,139 13,261 Finished goods, net of reserve 41,095 31,288 $ 121,409 $ 105,074 Property and equipment: Buildings, plant and equipment $ 213,329 $ 151,977 Automobiles 1,281 861 Production tooling 16,540 12,991 Leasehold improvements 15,263 11,695 Computer equipment and software 27,880 21,048 Construction in progress 9,405 20,747 283,698 219,319 Less: Accumulated depreciation * (83,404 ) (47,267 ) $ 200,294 $ 172,052 Other intangible assets: Customer relationships $ 101,213 $ 66,542 Technology 47,641 35,378 Product development costs 12,054 9,602 $ 160,908 $ 111,522 Less: Accumulated amortization (77,622 ) (53,965 ) $ 83,286 $ 57,557 Accrued liabilities: Tax accruals $ 16,169 $ 51,197 Accrued warranty 5,382 5,443 Accrued employee liabilities 25,503 21,323 Liabilities from discounts and rebates 16,057 13,413 Other accrued liabilities 14,098 14,249 $ 77,209 $ 105,625 * Includes accumulated amortization of capital lease obligations. |
Etratech Acquisition (Tables)
Etratech Acquisition (Tables) - Etratech Inc. | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Preliminary Allocation | The purchase price allocation is expected to be finalized by March 31, 2018. The allocation as of November 1, 2017 was as follows: Accounts receivable $ 12,654 Inventory 7,014 Prepaid expenses and other assets 535 Property and equipment 6,205 Customer relationships 24,774 Technology 8,588 Goodwill 14,866 Assumed liabilities (9,642 ) Net assets acquired 64,994 Cash acquired 670 Purchase price $ 65,664 |
Supplemental Pro Forma Information | The unaudited pro forma combined historical results including the amounts of Etratech revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2017 or January 1, 2016 are as follows: Twelve Months Ended 2017 2016 Product revenues $ 1,032,273 $ 966,355 Net income $ 35,911 $ 77,577 Basic earnings per share $ 0.98 $ 2.13 Diluted earnings per share $ 0.98 $ 2.12 |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following: December 31, 2017 Gross Value Accumulated Net Value Useful Life Customer relationships $ 24,774 $ 358 $ 24,416 8 -12 yrs Technology 8,588 277 8,311 5 -6 yrs Total $ 33,362 $ 635 $ 32,727 |
Summary of Amortization Expense | Amortization expense of $635 for the period November 1, 2017 through December 31, 2017 was recorded as follows: Three Months Ended Twelve Months Ended Product revenues $ 358 $ 358 Research and development expenses 277 277 |
Estimate of Total Intangible Asset Amortization | Amortization expense for the prospective five years is estimated to be as follows: 2018 $ 3,769 2019 $ 3,769 2020 $ 3,769 2021 $ 3,706 2022 $ 3,278 |
Summary of Property and Equipment | Property and equipment consist of the following: Asset category Useful life Amount Leashold improvements 10 yrs $ 342 Machinery and equipment 4-11 yrs 5,248 Furniture and fittings 4 yrs 230 Motor vehicles 3 yrs 25 Computer hardware and software 1 yrs 360 $ 6,205 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Deferred tax assets: Net operating losses 12,731 13,643 Research and development credits 27,257 23,012 Depreciation 5,571 5,457 Valuation reserves and accrued liabilities 6,020 9,667 Foreign tax credit — 6,926 Stock compensation 3,955 4,508 Inventory 2,062 1,571 Patents 163 218 Defined benefit obligation 1,977 2,306 Other credits 589 639 Unrealized foreign currency exchange loss 2,556 — Other 36 116 62,917 68,063 Valuation allowance (27,578 ) (19,304 ) Deferred tax liabilities: Intangible assets (2,925 ) (8,442 ) Unrealized foreign currency exchange gains — (285 ) Undistributed profits of subsidiary (6,450 ) (12,002 ) Property and equipment (1,611 ) (470 ) Other (548 ) (319 ) (11,534 ) (21,518 ) Net deferred tax asset $ 23,805 $ 27,241 |
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, 2017 are as follows: Year Ended December 31, 2017 2016 2015 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 % Change in valuation allowance 10.6 % 5.3 % (1.9 %) Foreign, state and local tax, net of Federal benefit 0.8 % 1.1 % 1.6 % Nondeductible expenses 2.4 % 2.4 % 1.8 % Stock option compensation (2.2 %) — (0.1 %) Research and development credits (4.6 %) (0.7 %) (0.9 %) Effect of different tax rates of foreign jurisdictions (20.8 %) (15.0 %) (12.1 %) Undistributed profits of subsidiaries 5.8 % 7.9 % 2.4 % Tax reform items 29.1 % — — Other tax exempt income — — (0.1 %) Tax effects of intercompany transfers (5.0 %) (5.3 %) — Other (1.0 %) (0.3 %) 0.3 % Effective rate 49.1 % 30.7 % 26.0 % |
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 $ 61,302 2018- 2036 Foreign $ 12,499 2018-2037 Foreign $ 24,911 Indefinite |
Earnings Before Income Taxes | The earnings before income taxes and our tax provision are comprised of the following: Year Ended December 31, 2017 2016 2015 Income before income taxes : Domestic $ 1,258 $ 12,981 $ 25,508 Foreign 67,997 97,582 103,430 Total income before income taxes $ 69,255 $ 110,563 $ 128,938 |
Provision for Income Taxes | Year Ended December 31, 2017 2016 2015 Current income tax expense: Federal $ 4,140 $ 9,215 $ 8,428 State and local 150 749 606 Foreign 24,672 32,844 24,622 Total current income tax expense $ 28,962 $ 42,808 $ 33,656 Deferred income tax expense (benefit): Federal $ 15,207 $ (10,597 ) $ (3,051 ) State and local 2,308 (742 ) (183 ) Foreign (12,449 ) 2,496 3,123 Total deferred income tax expense $ 5,066 $ (8,843 ) $ (111 ) Total tax expense $ 34,028 $ 33,965 $ 33,545 |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 4,486 $ 4,443 $ 4,651 Additions based on tax position related to current year 1,758 80 — Additions based on tax positions related to prior year (4 ) 366 262 Reductions from settlements and statute of limitation expiration (2,247 ) (299 ) (19 ) Effect of foreign currency translation 529 (104 ) (451 ) Balance at end of year $ 4,522 $ 4,486 $ 4,443 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Company's Debt | The following table summarizes the Company’s debt at December 31, 2017. Interest Principal Credit Agreement: U.S. Revolving Note (U.S. Dollar Denominations) 3.07 % $ 129,000 DEG China Loan 4.25 % 1,919 DEG Vietnam Loan 5.21 % 13,750 Total debt $ 144,669 Current portion (3,460 ) Long-term debt, less current maturities $ 141,209 The following table summarizes the Company’s debt at December 31, 2016. Interest Principal Credit Agreements: 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 |
Principal Maturities of Debt | The scheduled principal maturities of our debt as of December 31, 2017 is as follows: Year U.S. DEG China Loan DEG Vietnam Loan Total 2018 $ — $ 960 $ 2,500 $ 3,460 2019 — 959 2,500 3,459 2020 — — 2,500 2,500 2021 129,000 — 2,500 131,500 2022 — — 2,500 2,500 Thereafter — — 1,250 1,250 Total $ 129,000 $ 1,919 $ 13,750 $ 144,669 |
Accounting for Stock Based Co32
Accounting for Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017: Options Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2014 1,674,534 $ 19.14 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 Granted 808,500 37.23 Exercised (202,328 ) 13.62 Forfeited (57,500 ) 42.54 Outstanding at December 31, 2017 2,652,142 $ 35.34 4.76 $ 6,964 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 Exercisable at December 31, 2017 984,374 $ 29.84 3.44 $ 6,534 |
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: 2017 2016 2015 Expected volatility 33% 37% 35% Weighted average expected volatility 33% 37% 35% Expected lives 3 yrs. 3 yrs. 3 yrs. Risk-free interest rate 1.49-1.93% 0.90-1.07% 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, 2017: Unvested Restricted Shares Shares Weighted- Nonvested 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 Granted 237,542 37.30 Vested (165,923 ) 37.99 Forfeited — — Outstanding at December 31, 2017 282,100 $ 38.06 |
SARs Activity | The following table summarizes SARs activity during the three year period ended December 31, 2017: Stock Appreciation Rights Units Weighted- Weighted- Aggregate Outstanding at December 31, 2014 1,060,250 $ 29.97 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 Granted 235,000 38.05 Exercised (94,250 ) 22.21 Forfeited (193,000 ) 32.53 Outstanding at December 31, 2017 1,192,350 $ 38.17 4.36 $ 2,278 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 Exercisable at December 31, 2017 613,808 $ 37.68 3.72 $ 1,904 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Weighted average number of shares for calculation of basic EPS – Common Stock 36,720,749 36,448,138 36,031,792 Stock options under equity incentive plans 92,970 152,665 443,310 Weighted average number of shares for calculation of diluted EPS – Common Stock 36,813,719 36,600,803 36,475,102 |
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, 2017 2016 2015 Stock options outstanding for equity incentive plans 2,055,784 1,314,784 17,534 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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. We do not have lease arrangements with related parties. A summary of lease and construction commitments as of December 31, 2017, under all non-cancelable operating leases with terms exceeding one year is as follows: 2018 $ 10,630 2019 6,966 2020 3,629 2021 2,106 2022 1,916 2023 or later 3,811 Total $ 29,058 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015. 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, 2017, goodwill assigned to our Automotive and Industrial segments were $38,912 and $30,773, respectively. As of December 31, 2016, goodwill assigned to our Automotive and Industrial segments were $20,962 and $30,773, respectively. Automotive Industrial Reconciling Consolidated 2017: Product revenues $ 879,457 $ 106,226 $ — $ 985,683 Depreciation and amortization 36,801 5,399 2,772 44,972 Operating income (loss) 166,604 (14,751 ) (54,529 ) 97,324 2016: Product revenues $ 847,428 $ 70,172 $ — $ 917,600 Depreciation and amortization 31,826 3,789 2,149 37,764 Operating income (loss) 174,027 (16,702 ) (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 |
Product Revenues Information by Geographic Area | Revenue (based on shipment destination) by geographic area is as follows: 2017 % 2016 % 2015 % United States $ 454,669 46 % $ 449,065 49 % $ 393,206 46 % China 93,645 9 % 80,493 9 % 76,864 9 % Germany 71,768 7 % 70,258 8 % 74,003 9 % South Korea 64,715 7 % 75,396 8 % 84,758 10 % Japan 57,467 6 % 45,103 5 % 46,058 5 % Canada 46,368 5 % 37,954 4 % 27,076 3 % Czech Republic 38,828 4 % 38,164 4 % 28,273 3 % United Kingdom 36,033 4 % 28,540 3 % 25,952 3 % Mexico 22,684 2 % 22,767 2 % 28,274 3 % Other 99,506 10 % 69,860 8 % 71,981 9 % Total Non U.S. 531,014 54 % 468,535 51 % 463,239 54 % $ 985,683 100 % $ 917,600 100 % $ 856,445 100 % |
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: 2017 2016 2015 Lear (domestic) 20 % 21 % 22 % Adient (domestic) 18 % 21 % 23 % Bosch (foreign) 8 % 8 % 9 % |
Pension and Other Post Retire36
Pension and Other Post Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 Change in projected benefit obligation: Benefit obligation at beginning of year $ 3,419 $ 2,898 Service cost 101 387 Interest cost 111 98 Actuarial (gain) loss 78 36 Prior service cost 509 — Benefit obligation at end of year $ 4,218 $ 3,419 |
Components of Net Periodic Pension Benefit Cost | Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Service cost $ 101 $ 387 $ 379 Interest cost 111 98 80 Amortization of actuarial losses — — 27 Amortization of prior service cost 509 — — Net periodic benefit cost $ 721 $ 485 $ 486 |
Pretax Amounts Recognized in Other Comprehensive (Loss) Income | Pretax amounts recognized in other comprehensive income for the years ended December 31, 2017, 2016 and 2015 are as follows 2017 2016 2015 Actuarial Losses/(gains) $ 78 $ 36 $ (35 ) Amortization of actuarial losses — — (27 ) Establish prior service cost 509 — — Amortization prior service cost (509 ) — — $ 78 $ 36 $ (62 ) |
Fair Value of Plan Assets | The following table sets forth the fair value of the plan assets for the periods ending December 31, 2017 and 2016: 2017 2016 Change in plan assets: Plan assets at beginning of year $ 3,326 $ 3,333 Actual return on plan assets 121 125 Contributions 272 261 Paid pension distributions (272 ) (261 ) Actuarial losses (28 ) (27 ) Exchange rate impact 472 (105 ) Plan assets at end of year $ 3,891 $ 3,326 |
Actuarial Assumptions Used to Determine Benefit Obligation and Net Periodic Service Cost | The Gentherm GmbH defined benefit plan is underfunded by $4,036 and $4,000 as of December 31, 2017 and 2016, 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: 2017 2016 2015 Discount rate 1.93 % 1.69 % 2.21 % Expected long term rate of return on plan assets 3.40 % 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 2018 $ 293 2019 291 2020 289 2021 287 2022 283 2023 - 2027 1,392 Total $ 2,835 |
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: 2017 2016 Change in projected benefit obligation: Benefit obligation at beginning of year $ 7,326 $ 6,980 Interest cost 130 154 Paid pension distributions (272 ) (261 ) Actuarial (gains)/losses (257 ) 691 Exchange rate impact 1,000 (238 ) Benefit obligation at end of year $ 7,927 $ 7,326 |
Components of Net Periodic Pension Benefit Cost | Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Interest cost $ 130 $ 154 $ 142 Return on plan assets (121 ) (125 ) (126 ) Amortization of prior service cost — — 572 Amortization of actuarial loss (gains) 78 48 59 Net periodic benefit cost $ 87 $ 77 $ 647 |
Pretax Amounts Recognized in Other Comprehensive (Loss) Income | Pretax amounts recognized in other comprehensive (loss) income for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Actuarial (gains)/losses $ (229 ) $ 718 $ (154 ) Amortization of actuarial losses (78 ) (48 ) (59 ) Amortization of prior service cost — — (572 ) $ (307 ) $ 670 $ (785 ) |
Derivative Financial Instrume37
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Information Related to Recurring Fair Value Measurement of Derivative Financial Instruments in Our Consolidated Balance Sheet | Note 14 — Derivative Financial Instruments (Continued) Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2017 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 assets $ 141 Current liabilities $ (1,050 ) $ (909 ) Commodity derivatives Cash flow hedge Level 2 Current assets $ 72 $ 72 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 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 $ (3 ) $ — Cost of sales 2,209 (608 ) Selling, general and administrative (216 ) 139 Other comprehensive (loss) income 302 (1,395 ) Foreign currency gain (112 ) 102 Total foreign currency derivatives $ 2,180 $ (1,762 ) Commodity derivatives Cost of sales $ 202 $ (666 ) Other comprehensive income (loss) $ 54 $ 743 Total commodity derivatives $ 256 $ 77 |
Reclassifications Out of Accu38
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, December 31, 2016 and December 31, 2015 are as follows: Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2016 $ (2,550 ) $ (65,762 ) $ 241 $ (1,020 ) $ (69,091 ) Other comprehensive income (loss) before reclassifications 166 48,059 254 2,123 50,602 Income tax effect of other comprehensive income (loss) before reclassifications (60 ) 148 (93 ) (570 ) (575 ) Amounts reclassified from accumulated other comprehensive income (loss) into net income 78 — (199 ) (1,822 ) (1,943 ) Income taxes reclassified into net income — — 74 489 563 Net current period other comprehensive income (loss) 184 48,207 36 220 48,647 Balance at December 31, 2017 $ (2,366 ) (17,555 ) 277 (800 ) (20,444 ) (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, 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. Note 16 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – (Continued) 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. |
Cincinnati Sub-Zero Acquisiti39
Cincinnati Sub-Zero Acquisition (Tables) - Cincinnati Sub-Zero Products, LLC | 12 Months Ended |
Dec. 31, 2017 | |
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 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 |
The Company - Additional Inform
The Company - Additional Information (Detail) | Dec. 22, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) |
Disclosure Company Additional Information [Abstract] | |||
Subscription agreement date | Dec. 22, 2016 | ||
Preferred stock purchased, value under subscription agreement | $ 4,500,000 | ||
Dividends paid | $ 0 | $ 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 Accoun41
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounting Policies [Line Items] | ||||
Amount reclassified from prepaid expenses and other assets to other non-current assets | $ 4,390,000 | |||
Cash and cash equivalents | $ 103,172,000 | 177,187,000 | $ 144,479,000 | $ 85,700,000 |
Depreciation expense | 32,224,000 | 24,873,000 | 18,399,000 | |
Impairment of goodwill | 0 | 0 | 0 | |
Share based compensation expense | 12,727,000 | 8,147,000 | 12,316,000 | |
Related deferred tax benefit | 3,955,000 | 4,508,000 | ||
Stock options outstanding under the 1993,1997, 2006 and 2011 Stock Option Plans | ||||
Accounting Policies [Line Items] | ||||
Related deferred tax benefit | 4,339,000 | 2,891,000 | 3,787,000 | |
Production tooling | ||||
Accounting Policies [Line Items] | ||||
Reimbursable tooling capitalized within prepaid expenses and other current assets | $ 6,994,000 | 5,604,000 | ||
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 | $ 12,425,000 | $ 12,675,000 | $ 12,751,000 | |
Concentration of Credit Risk | Accounts receivable | Lear | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 24.00% | 25.00% | ||
Concentration of Credit Risk | Accounts receivable | Adient | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 20.00% | 24.00% | ||
Concentration of Credit Risk | Accounts receivable | Magna | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 7.00% | |||
Concentration of Credit Risk | Accounts receivable | Faurecia | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 7.00% | |||
Customer Concentration Risk | Sales Revenue | ||||
Accounting Policies [Line Items] | ||||
Number of largest customer | Customer | 3 | |||
Customer Concentration Risk | Sales Revenue | Lear | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 20.00% | 21.00% | 22.00% | |
Revenues from sales | $ 192,756,000 | |||
Customer Concentration Risk | Sales Revenue | Adient | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 18.00% | 21.00% | 23.00% | |
Revenues from sales | $ 173,964,000 | |||
Customer Concentration Risk | Sales Revenue | Bosch | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 8.00% | 8.00% | 9.00% | |
Revenues from sales | $ 75,370,000 | |||
Foreign Jurisdictions | ||||
Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 88,440,000 | $ 162,881,000 |
Reconciliation of Changes in Ac
Reconciliation of Changes in Accrued Warranty Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Balance at beginning of year | $ 5,443 | $ 4,558 |
Warranty claims paid or retired | (979) | (1,096) |
Expense | 507 | 2,053 |
Adjustment due to currency translation | 411 | (72) |
Balance at end of year | $ 5,382 | $ 5,443 |
Reconciliation of Changes in In
Reconciliation of Changes in Inventory Reserve (Detail) - Inventory Valuation Reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 4,790 | $ 4,308 | $ 4,802 |
Expense | 3,521 | 876 | 815 |
Inventory write off | (726) | (326) | (1,060) |
Adjustment due to currency translation | 302 | (68) | |
Balance at end of year | $ 7,887 | $ 4,790 | $ 4,308 |
Estimated Useful Lives of Prope
Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
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 | 5 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, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Goodwill | $ 51,735 | $ 27,765 |
Exchange rate impact | 3,084 | (652) |
Goodwill | 69,685 | 51,735 |
CSZ | ||
Goodwill [Line Items] | ||
Goodwill arising from the acquisition | $ 24,622 | |
Etratech Inc. | ||
Goodwill [Line Items] | ||
Goodwill arising from the acquisition | $ 14,866 |
Fair Value and Corresponding Us
Fair Value and Corresponding Useful Lives for Acquired Intangibles Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Customer relationships | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets useful life | 8 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, 2017USD ($) |
Amortization Expense [Line Items] | |
2,018 | $ 12,968 |
2,019 | 10,041 |
2,020 | 8,230 |
2,021 | 10,762 |
2,022 | 10,334 |
Thereafter | $ 30,950 |
Details of Certain Financial 48
Details of Certain Financial Statement Components (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory: | ||||
Raw materials, net of reserve | $ 64,175 | $ 60,525 | ||
Work in process, net of reserve | 16,139 | 13,261 | ||
Finished goods, net of reserve | 41,095 | 31,288 | ||
Total inventory | 121,409 | 105,074 | ||
Property and equipment: | ||||
Buildings, plant and equipment | 213,329 | 151,977 | ||
Automobiles | 1,281 | 861 | ||
Production tooling | 16,540 | 12,991 | ||
Leasehold improvements | 15,263 | 11,695 | ||
Computer equipment and software | 27,880 | 21,048 | ||
Construction in progress | 9,405 | 20,747 | ||
Total property, plant and equipment, gross | 283,698 | 219,319 | ||
Less: Accumulated depreciation | [1] | (83,404) | (47,267) | |
Total property, plant and equipment, net | 200,294 | 172,052 | ||
Other intangible assets: | ||||
Other intangible assets | 160,908 | 111,522 | ||
Accumulated amortization | (77,622) | (53,965) | ||
Total other intangible assets Net | 83,286 | 57,557 | ||
Accrued liabilities: | ||||
Tax accruals | 16,169 | 51,197 | ||
Accrued warranty | 5,382 | 5,443 | $ 4,558 | |
Accrued employee liabilities | 25,503 | 21,323 | ||
Liabilities from discounts and rebates | 16,057 | 13,413 | ||
Other accrued liabilities | 14,098 | 14,249 | ||
Total accrued liabilities | 77,209 | 105,625 | ||
Customer relationships | ||||
Other intangible assets: | ||||
Other intangible assets | 101,213 | 66,542 | ||
Technology | ||||
Other intangible assets: | ||||
Other intangible assets | 47,641 | 35,378 | ||
Product development costs | ||||
Other intangible assets: | ||||
Other intangible assets | $ 12,054 | $ 9,602 | ||
[1] | Includes accumulated amortization of capital lease obligations. |
Etratech Acquisition - Addition
Etratech Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Nov. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 69,685 | $ 51,735 | $ 27,765 | ||
Etratech Inc. | |||||
Business Acquisition [Line Items] | |||||
Product revenues | 8,398 | ||||
Net loss | 510 | ||||
Net assets acquired | $ 64,994 | $ 64,994 | |||
Cash acquired on acquisition | 670 | $ 670 | |||
Gross contractual amount due of accounts receivable | 12,654 | ||||
Goodwill | 14,866 | ||||
Goodwill not deductible for income taxes | 8,651 | ||||
Intangible assets before foreign currency adjustment | $ 33,362 | ||||
Amortization of intangibles | $ 635 |
Etratech Acquisition - Summary
Etratech Acquisition - Summary of Preliminary Allocation (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Nov. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 69,685 | $ 51,735 | $ 27,765 | ||
Purchase price | 66,994 | $ 73,593 | $ (107) | ||
Etratech Inc. | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 12,654 | ||||
Inventory | 7,014 | ||||
Prepaid expenses and other assets | 535 | ||||
Property and equipment | 6,205 | $ 6,205 | |||
Goodwill | 14,866 | ||||
Assumed liabilities | (9,642) | ||||
Net assets acquired | 64,994 | $ 64,994 | |||
Cash acquired on acquisition | 670 | $ 670 | |||
Purchase price | 65,664 | ||||
Etratech Inc. | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 24,774 | ||||
Etratech Inc. | Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 8,588 |
Etratech Acquisition - Suppleme
Etratech Acquisition - Supplemental Pro Forma Information (Detail) - Etratech Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Product revenues | $ 1,032,273 | $ 966,355 |
Net income | $ 35,911 | $ 77,577 |
Basic earnings per share | $ 0.98 | $ 2.13 |
Diluted earnings per share | $ 0.98 | $ 2.12 |
Etratech Acquisition - Schedule
Etratech Acquisition - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | $ 160,908 | $ 111,522 |
Accumulated Amortization | 77,622 | 53,965 |
Total other intangible assets Net | 83,286 | 57,557 |
Customer relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | 101,213 | 66,542 |
Technology | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | 47,641 | $ 35,378 |
Etratech Inc. | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | 33,362 | |
Accumulated Amortization | 635 | |
Total other intangible assets Net | 32,727 | |
Etratech Inc. | Customer relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | 24,774 | |
Accumulated Amortization | 358 | |
Total other intangible assets Net | $ 24,416 | |
Etratech Inc. | Customer relationships | Minimum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 8 years | |
Etratech Inc. | Customer relationships | Maximum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 12 years | |
Etratech Inc. | Technology | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | $ 8,588 | |
Accumulated Amortization | 277 | |
Total other intangible assets Net | $ 8,311 | |
Etratech Inc. | Technology | Minimum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 5 years | |
Etratech Inc. | Technology | Maximum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 6 years |
Etratech Acquisition - Summar53
Etratech Acquisition - Summary of Amortization Expense (Detail) - Etratech Inc. - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Amortization of intangibles | $ 635 | ||
Product revenues | |||
Business Acquisition [Line Items] | |||
Amortization of intangibles | $ 358 | $ 358 | |
Research and development expenses | |||
Business Acquisition [Line Items] | |||
Amortization of intangibles | $ 277 | $ 277 |
Etratech Acquisition - Summar54
Etratech Acquisition - Summary of Amortization Expense for Prospective Years (Detail) - Etratech Inc. $ in Thousands | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
2,018 | $ 3,769 |
2,019 | 3,769 |
2,020 | 3,769 |
2,021 | 3,706 |
2,022 | $ 3,278 |
Etratech Acquisition - Summar55
Etratech Acquisition - Summary of Property and Equipment (Detail) - Etratech Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Nov. 01, 2017 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 6,205 | $ 6,205 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 10 years | |
Property and equipment | $ 342 | |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 5,248 | |
Machinery and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 4 years | |
Machinery and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 11 years | |
Furniture and fittings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 4 years | |
Property and equipment | $ 230 | |
Motor vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 3 years | |
Property and equipment | $ 25 | |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 1 year | |
Property and equipment | $ 360 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Line Items] | |||||||
Statutory Federal income tax rate | 34.00% | 34.00% | 34.00% | ||||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense | $ 20,153 | ||||||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax balances, provisional income tax expense | 5,808 | ||||||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense related to onetime transition tax liability of foreign subsidiaries | 23,923 | ||||||
Tax cuts and jobs act of 2017, incomplete accounting, benefit included in provision for income taxes to offset one-time transition tax related to previous deferred tax liability that existed for undistributed foreign earnings that were not permanently reinvested | $ 9,578 | ||||||
Statutory Federal income tax rate | 34.00% | 34.00% | 34.00% | ||||
Adjustment to retained earnings due to adoption | $ 1,496 | ||||||
Income tax holiday, amount of corporate income tax savings realized | 34,028 | $ 33,965 | $ 33,545 | ||||
Total unrecognized tax benefits | $ 4,522 | 4,486 | $ 4,443 | $ 4,651 | |||
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 | |||||
ASU 2016-09 | |||||||
Income Taxes [Line Items] | |||||||
Adjustment to retained earnings due to adoption | $ 1,496 | $ 1,496 | |||||
Reduction of effective tax rate | 2.00% | ||||||
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. State | Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, year of expiration | 2,018 | ||||||
U.S. State | Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, year of expiration | 2,036 | ||||||
Non-U.S. Subsidiaries | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, amount | $ 37,410 | ||||||
Operating loss valuation allowance | 22,294 | ||||||
Foreign Jurisdictions | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, amount | $ 12,499 | ||||||
Foreign Jurisdictions | Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, year of expiration | 2,018 | ||||||
Foreign Jurisdictions | Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, year of expiration | 2,037 | ||||||
Indefinite | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward, amount | $ 24,911 | ||||||
Net operating loss carryforward, year of expiration | no expiration date | ||||||
Scenario, Forecast | |||||||
Income Taxes [Line Items] | |||||||
Statutory Federal income tax rate | 21.00% | ||||||
Statutory Federal income tax rate | 21.00% |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating losses | $ 12,731 | $ 13,643 |
Research and development credits | 27,257 | 23,012 |
Depreciation | 5,571 | 5,457 |
Valuation reserves and accrued liabilities | 6,020 | 9,667 |
Foreign tax credit | 6,926 | |
Stock compensation | 3,955 | 4,508 |
Inventory | 2,062 | 1,571 |
Patents | 163 | 218 |
Defined benefit obligation | 1,977 | 2,306 |
Other credits | 589 | 639 |
Unrealized foreign currency exchange loss | 2,556 | |
Other | 36 | 116 |
Deferred tax assets, gross | 62,917 | 68,063 |
Valuation allowance | (27,578) | (19,304) |
Deferred tax liabilities: | ||
Intangible assets | (2,925) | (8,442) |
Unrealized foreign currency exchange gains | (285) | |
Undistributed profits of subsidiary | (6,450) | (12,002) |
Property and equipment | (1,611) | (470) |
Other | (548) | (319) |
Deferred tax liabilities, gross | (11,534) | (21,518) |
Net deferred tax asset | $ 23,805 | $ 27,241 |
Reconciliations Between Statuto
Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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% | |
Change in valuation allowance | 10.60% | 5.30% | (1.90%) |
Foreign, state and local tax, net of Federal benefit | 0.80% | 1.10% | 1.60% |
Nondeductible expenses | 2.40% | 2.40% | 1.80% |
Stock option compensation | (2.20%) | (0.10%) | |
Research and development credits | (4.60%) | (0.70%) | (0.90%) |
Effect of different tax rates of foreign jurisdictions | (20.80%) | (15.00%) | (12.10%) |
Undistributed profits of subsidiaries | 5.80% | 7.90% | 2.40% |
Tax reform items | 29.10% | ||
Other tax exempt income | (0.10%) | ||
Tax effects of intercompany transfers | (5.00%) | (5.30%) | |
Other | (1.00%) | (0.30%) | 0.30% |
Effective rate | 49.10% | 30.70% | 26.00% |
Net Operating Loss Carryforward
Net Operating Loss Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
U.S. Federal and state income tax | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, amount | $ 61,302 |
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 | 2,036 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward, amount | $ 12,499 |
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 | $ 24,911 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income before income taxes: | |||
Domestic | $ 1,258 | $ 12,981 | $ 25,508 |
Foreign | 67,997 | 97,582 | 103,430 |
Earnings before income tax | $ 69,255 | $ 110,563 | $ 128,938 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax expense: | |||
Federal | $ 4,140 | $ 9,215 | $ 8,428 |
State and local | 150 | 749 | 606 |
Foreign | 24,672 | 32,844 | 24,622 |
Total current income tax expense | 28,962 | 42,808 | 33,656 |
Deferred income tax expense (benefit): | |||
Federal | 15,207 | (10,597) | (3,051) |
State and local | 2,308 | (742) | (183) |
Foreign | (12,449) | 2,496 | 3,123 |
Total deferred income tax expense | 5,066 | (8,843) | (111) |
Total tax expense | $ 34,028 | $ 33,965 | $ 33,545 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 4,486 | $ 4,443 | $ 4,651 |
Additions based on tax position related to current year | 1,758 | 80 | |
Additions based on tax positions related to prior year | (4) | 366 | 262 |
Reductions from settlements and statute of limitation expiration | (2,247) | (299) | (19) |
Effect of foreign currency translation | 529 | (104) | (451) |
Balance at end of year | $ 4,522 | $ 4,486 | $ 4,443 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
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 | 1.33% |
London Interbank Offered Rate | |
Debt Instrument [Line Items] | |
Interest rate | 1.56% |
Revolving Note (U.S. Dollar) | |
Debt Instrument [Line Items] | |
Undrawn borrowing capacity | $ 220,859,000 |
United State Bank Of America Credit Facility | |
Debt Instrument [Line Items] | |
Interest rate | 4.50% |
Euro Currency Rate Loans | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 0.00% |
Euro Currency Rate Loans | Minimum | 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 | Credit Agreement | |
Debt Instrument [Line Items] | |
Interest rate | 2.00% |
Base Rate Loans | Minimum | Credit Agreement | |
Debt Instrument [Line Items] | |
Interest rate | 0.25% |
Base Rate Loans | Maximum | 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 | Revolving Note (U.S. Dollar) | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 350,000,000 |
Summary of Company's Debt (Deta
Summary of Company's Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 144,669 | $ 171,525 |
Current portion | (3,460) | (2,092) |
Long-term debt, less current maturities | $ 141,209 | $ 169,433 |
U.S. Revolving Note (U.S. Dollar Denominations) | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.07% | 2.27% |
Total debt | $ 129,000 | $ 154,000 |
DEG China Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.25% | 4.25% |
Total debt | $ 1,919 | $ 2,525 |
DEG Vietnam Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.21% | 5.21% |
Total debt | $ 13,750 | $ 15,000 |
Principal Maturities of Debt (D
Principal Maturities of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt maturing in 2018 | $ 3,460 | |
Debt maturing in 2019 | 3,459 | |
Debt maturing in 2020 | 2,500 | |
Debt maturing in 2021 | 131,500 | |
Debt maturing in 2022 | 2,500 | |
Thereafter | 1,250 | |
Total debt | 144,669 | $ 171,525 |
Revolving Note (U.S. Dollar) | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2021 | 129,000 | |
Total debt | 129,000 | 154,000 |
DEG China Loan | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2018 | 960 | |
Debt maturing in 2019 | 959 | |
Total debt | 1,919 | 2,525 |
DEG Vietnam Loan | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2018 | 2,500 | |
Debt maturing in 2019 | 2,500 | |
Debt maturing in 2020 | 2,500 | |
Debt maturing in 2021 | 2,500 | |
Debt maturing in 2022 | 2,500 | |
Thereafter | 1,250 | |
Total debt | $ 13,750 | $ 15,000 |
Accounting for Stock Based Co66
Accounting for Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 19, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | May 16, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock option grant expiration period | 10 years | ||||||
Number of performance based unvested stock options, restricted stock outstanding | 282,100 | 210,481 | 179,026 | 177,084 | |||
Unrecognized compensation cost related to nonvested options and restricted options | $ 18,593 | $ 17,258 | |||||
Unrecognized share-based compensation cost recognition period | 3 years | ||||||
Share based compensation expense | $ 12,727 | $ 8,147 | $ 12,316 | ||||
Weighted average grant date fair value of options granted | $ 9.11 | $ 10.74 | $ 10.60 | ||||
Total intrinsic value of options exercised | $ 4,715 | $ 2,456 | $ 18,745 | ||||
Total fair value of restricted shares vested | $ 6,006 | 3,865 | 4,088 | ||||
Stock Appreciation Rights (SARs) | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of performance based unvested stock options, SARs outstanding | 0 | ||||||
Total intrinsic value of options exercised | $ 1,495 | $ 261 | $ 4,185 | ||||
Restricted Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of performance based unvested stock options, restricted stock outstanding | 0 | ||||||
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 | 1,751,554 | ||||||
Number of shares authorized for grant | 3,500,000 | ||||||
Number of increased shares available for grant | 2,000,000 | ||||||
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 |
Summarizes Stock Option Activit
Summarizes Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock Options Outstanding, beginning balance, Shares | 2,103,470 | 1,530,845 | 1,674,534 |
Granted, Shares | 808,500 | 862,000 | 524,534 |
Exercised, Shares | (202,328) | (112,875) | (571,723) |
Forfeited, Shares | (57,500) | (176,500) | (96,500) |
Stock Options Outstanding, ending balance, Shares | 2,652,142 | 2,103,470 | 1,530,845 |
Stock Options Exercisable, Shares | 984,374 | 675,152 | 439,561 |
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price | $ 32.72 | $ 27.46 | $ 19.14 |
Granted, Weighted-Average Exercise Price | 37.23 | 40.87 | 41.97 |
Exercised, Weighted-Average Exercise Price | 13.62 | 13.24 | 16.21 |
Forfeited, Weighted-Average Exercise Price | 42.54 | 39.32 | 28.47 |
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price | 35.34 | 32.72 | 27.46 |
Exercisable, Weighted-Average Exercise Price | $ 29.84 | $ 21.40 | $ 12.18 |
Stock Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 9 months 3 days | 4 years 10 months 9 days | 4 years 11 months 19 days |
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 5 months 8 days | 3 years 5 months 12 days | 3 years 6 months 3 days |
Stock Options Outstanding, Aggregate Intrinsic Value | $ 6,964 | $ 12,265 | $ 30,573 |
Exercisable, Aggregate Intrinsic Value | $ 6,534 | $ 9,646 | $ 15,480 |
Fair Value of Option on date of
Fair Value of Option on date of grant (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | |||
Expected volatility | 33.00% | 37.00% | 35.00% |
Weighted average expected volatility | 33.00% | 37.00% | 35.00% |
Expected lives | 3 years | 3 years | 3 years |
Risk-free interest rate | 1.49% | 0.90% | |
Risk-free interest rate | 1.93% | 1.07% | |
Risk-free interest rate | 1.00% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summarizes Restricted Stock Act
Summarizes Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Nonvested at beginning of period, Shares | 210,481 | 179,026 | 177,084 |
Granted, Shares | 237,542 | 141,784 | 108,026 |
Vested, Shares | (165,923) | (100,330) | (82,084) |
Forfeited, Shares | (9,999) | (24,000) | |
Nonvested at end of period, Shares | 282,100 | 210,481 | 179,026 |
Nonvested at beginning of period, Weighted-Average Grant Date Fair Value | $ 39.02 | $ 34.92 | $ 23.70 |
Granted, Weighted-Average Grant Date Fair Value | 37.30 | 39.73 | 44.01 |
Vested, Weighted-Average Grant Date Fair Value | 37.99 | 32.47 | 23.86 |
Forfeited, Weighted-Average Grant Date Fair Value | 40.99 | 30.87 | |
Nonvested at end of period, Weighted-Average Grant Date Fair Value | $ 38.06 | $ 39.02 | $ 34.92 |
Summarizes Stock Appreciation R
Summarizes Stock Appreciation Rights (SARs) Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Options Outstanding, beginning balance, Shares | 2,103,470 | 1,530,845 | 1,674,534 |
Granted, Shares | 808,500 | 862,000 | 524,534 |
Exercised, Shares | (202,328) | (112,875) | (571,723) |
Forfeited, Shares | (57,500) | (176,500) | (96,500) |
Stock Options Outstanding, ending balance, Shares | 2,652,142 | 2,103,470 | 1,530,845 |
Exercisable, Ending Balance | 984,374 | 675,152 | 439,561 |
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price | $ 32.72 | $ 27.46 | $ 19.14 |
Granted, Weighted-Average Exercise Price | 37.23 | 40.87 | 41.97 |
Exercised, Weighted-Average Exercise Price | 13.62 | 13.24 | 16.21 |
Forfeited, Weighted-Average Exercise Price | 42.54 | 39.32 | 28.47 |
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price | 35.34 | 32.72 | 27.46 |
Exercisable, Weighted Average Exercise Price | $ 29.84 | $ 21.40 | $ 12.18 |
Stock Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 9 months 3 days | 4 years 10 months 9 days | 4 years 11 months 19 days |
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 5 months 8 days | 3 years 5 months 12 days | 3 years 6 months 3 days |
Outstanding, Aggregate Intrinsic Value | $ 6,964 | $ 12,265 | $ 30,573 |
Exercisable, Aggregate Intrinsic Value | $ 6,534 | $ 9,646 | $ 15,480 |
Stock Appreciation Rights (SARs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Options Outstanding, beginning balance, Shares | 1,244,600 | 1,049,850 | 1,060,250 |
Granted, Shares | 235,000 | 244,000 | 259,600 |
Exercised, Shares | (94,250) | (18,750) | (167,500) |
Forfeited, Shares | (193,000) | (30,500) | (102,500) |
Stock Options Outstanding, ending balance, Shares | 1,192,350 | 1,244,600 | 1,049,850 |
Exercisable, Ending Balance | 613,808 | 424,992 | 153,575 |
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price | $ 36.11 | $ 34.61 | $ 29.97 |
Granted, Weighted-Average Exercise Price | 38.05 | 40.64 | 43.97 |
Exercised, Weighted-Average Exercise Price | 22.21 | 24.28 | 23.90 |
Forfeited, Weighted-Average Exercise Price | 32.53 | 28.23 | 27.82 |
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price | 38.17 | 36.11 | 34.61 |
Exercisable, Weighted Average Exercise Price | $ 37.68 | $ 34.49 | $ 38.12 |
Stock Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 4 months 9 days | 4 years 9 months 18 days | 5 years 5 months 15 days |
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 8 months 19 days | 4 years 4 months 20 days | 5 years 7 months 2 days |
Outstanding, Aggregate Intrinsic Value | $ 2,278 | $ 3,511 | $ 13,425 |
Exercisable, Aggregate Intrinsic Value | $ 1,904 | $ 2,315 | $ 1,425 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average number of shares for calculation of basic EPS – Common Stock | 36,720,749 | 36,448,138 | 36,031,792 |
Stock options under equity incentive plans | 92,970 | 152,665 | 443,310 |
Weighted average number of shares for calculation of diluted EPS – Common Stock | 36,813,719 | 36,600,803 | 36,475,102 |
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 | 2,055,784 | 1,314,784 | 17,534 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Lease arrangements with related parties | $ 0 | ||
Outstanding capital lease agreements that exceed one year | 0 | ||
Purchase obligations that exceed one year | 0 | ||
Rent expense under company's operating leases | $ 8,424,000 | $ 7,479,000 | $ 6,660,000 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 10,630 |
2,019 | 6,966 |
2,020 | 3,629 |
2,021 | 2,106 |
2,022 | 1,916 |
2023 or later | 3,811 |
Total | $ 29,058 |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017$ / 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, 2017USD ($)Customer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 01, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 69,685 | $ 51,735 | $ 27,765 | |
Reimbursed research and development costs | 12,037 | 6,660 | 9,607 | |
Selling, general and administrative costs | 130,522 | 115,252 | 95,456 | |
Acquisition transaction expenses | $ 789 | 743 | ||
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 | $ 38,912 | 20,962 | ||
Industrial Segments | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 30,773 | 30,773 | ||
Reimbursed research and development costs | 2,116 | 641 | 2,483 | |
Selling, general and administrative costs | 43,457 | 39,059 | 32,116 | |
Acquisition transaction expenses | $ 789 | $ 743 | $ 0 | |
Etratech Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Date of acquisition | Nov. 1, 2017 | |||
Goodwill | $ 14,866 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Product revenues | $ 985,683 | $ 917,600 | $ 856,445 |
Depreciation and amortization | 44,972 | 37,764 | 31,029 |
Operating income (loss) | 97,324 | 106,119 | 121,319 |
Operating Segments | Automotive Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 879,457 | 847,428 | 810,567 |
Depreciation and amortization | 36,801 | 31,826 | 27,251 |
Operating income (loss) | 166,604 | 174,027 | 170,358 |
Operating Segments | Industrial Segments | |||
Segment Reporting Information [Line Items] | |||
Product revenues | 106,226 | 70,172 | 45,878 |
Depreciation and amortization | 5,399 | 3,789 | 1,726 |
Operating income (loss) | (14,751) | (16,702) | (2,461) |
Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,772 | 2,149 | 2,052 |
Operating income (loss) | $ (54,529) | $ (51,206) | $ (46,578) |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Product revenues | $ 985,683 | $ 917,600 | $ 856,445 |
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 | $ 454,669 | $ 449,065 | $ 393,206 |
United States | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 46.00% | 49.00% | 46.00% |
China | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 93,645 | $ 80,493 | $ 76,864 |
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 | $ 71,768 | $ 70,258 | $ 74,003 |
Germany | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 7.00% | 8.00% | 9.00% |
South Korea | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 64,715 | $ 75,396 | $ 84,758 |
South Korea | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 7.00% | 8.00% | 10.00% |
Japan | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 57,467 | $ 45,103 | $ 46,058 |
Japan | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 6.00% | 5.00% | 5.00% |
Canada | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 46,368 | $ 37,954 | $ 27,076 |
Canada | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 5.00% | 4.00% | 3.00% |
Czech Republic | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 38,828 | $ 38,164 | $ 28,273 |
Czech Republic | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 4.00% | 4.00% | 3.00% |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 36,033 | $ 28,540 | $ 25,952 |
United Kingdom | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 4.00% | 3.00% | 3.00% |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 22,684 | $ 22,767 | $ 28,274 |
Mexico | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 2.00% | 2.00% | 3.00% |
Other | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 99,506 | $ 69,860 | $ 71,981 |
Other | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 10.00% | 8.00% | 9.00% |
Non U.S. | |||
Segment Reporting Information [Line Items] | |||
Product revenues | $ 531,014 | $ 468,535 | $ 463,239 |
Non U.S. | Sales Revenue, Net | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 54.00% | 51.00% | 54.00% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lear | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 20.00% | 21.00% | 22.00% |
Adient | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 18.00% | 21.00% | 23.00% |
Bosch | |||
Segment Reporting Information [Line Items] | |||
Total product revenues in percentage | 8.00% | 8.00% | 9.00% |
Pension and Other Post Retire79
Pension and Other Post Retirement Benefit Plans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)Payment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, amendment date | Dec. 4, 2017 | ||
Discount rate for net periodic service cost | 3.25% | 3.40% | 3.25% |
Discount rate for benefit obligation | 2.95% | 3.25% | 3.40% |
Insurance policy value | $ 2,353,000 | $ 2,112,000 | |
Tax (expense) benefit recognized in other comprehensive income | 26,000 | 14,000 | $ (23,000) |
Pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) | 380,000 | 302,000 | |
Expected pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss ) in next fiscal year | 0 | ||
Contributions to 401(k) plan | $ 1,396,000 | $ 1,289,000 | $ 959,000 |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 1.93% | 1.69% | 2.21% |
Tax (expense) benefit recognized in other comprehensive income | $ (86,000) | $ 171,000 | $ (211,000) |
Pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) | 2,416,000 | 2,406,000 | |
Expected pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss ) in next fiscal year | 74,000 | ||
Pension benefit obligation | 4,036,000 | 4,000,000 | |
Underfunded defined benefit plan | 4,036,000 | $ 4,000,000 | |
Defined benefit plan, expected employer contribution in next fiscal year | 0 | ||
Former 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 | ||
Former Chief Executive Officer | Plan Amendment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected annual retirement payments | $ 342,000,000 | ||
Defined benefit plan amendment description | On May 10, 2017 the Company amended (the “Plan Amendment”) the Plan. Prior to the Plan Amendment, the Plan provided for 15 annual retirement benefit payments of $300,000 each beginning January 1, 2018. Mr. Coker became fully vested in the benefits under the Benefit Plan on April 1, 2017. The Plan Amendment provided that if Mr. Coker continued to provide employment service to the Company through and including January 1, 2018, the fifteen annual retirement benefit payments would be increased to $342,000, otherwise the 15 annual retirement benefits would remain at $300,000. | ||
Former Chief Executive Officer | Retirement Agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan amendment description | On June 28, 2017, the same day a leader transition plan leading up to Mr. Coker’s retirement was announced, the Company entered into a Retirement Agreement with Mr. Coker (the “Retirement Agreement”). The Retirement Agreement provided that if Mr. Coker’s retirement date was prior to January 1, 2018, the Company would amend the terms of the Plan, as amended, to accelerate the in-service vesting date to ensure an increase in the annual accrued benefit from $300,000 to $342,000. Mr. Coker became fully vested in the incremental benefit, as described in the Plan Amendment, on December 4, 2017. | ||
Annual accrued benefit payments | $ 300,000,000 | ||
Expected annual accrued benefit payments | $ 342,000,000 |
Benefit Obligation, Amounts Rec
Benefit Obligation, Amounts Recognized Company's Financial Statements and Principal Assumptions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | $ 3,419 | $ 2,898 | |
Service cost | 101 | 387 | $ 379 |
Interest cost | 111 | 98 | 80 |
Actuarial (gain) loss | 78 | 36 | |
Prior service cost | 509 | ||
Benefit obligation at end of year | 4,218 | 3,419 | 2,898 |
Gentherm GmbH | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 7,326 | 6,980 | |
Interest cost | 130 | 154 | 142 |
Paid pension distributions | (272) | (261) | |
Actuarial (gain) loss | (257) | 691 | |
Exchange rate impact | 1,000 | (238) | |
Prior service cost | 572 | ||
Benefit obligation at end of year | $ 7,927 | $ 7,326 | $ 6,980 |
Components of Net Periodic Pens
Components of Net Periodic Pension Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 101 | $ 387 | $ 379 |
Interest cost | 111 | 98 | 80 |
Amortization of actuarial loss (gains) | 27 | ||
Amortization of prior service cost | 509 | ||
Net periodic benefit cost | 721 | 485 | 486 |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 130 | 154 | 142 |
Return on plan assets | (121) | (125) | (126) |
Amortization of actuarial loss (gains) | 78 | 48 | 59 |
Amortization of prior service cost | 572 | ||
Net periodic benefit cost | $ 87 | $ 77 | $ 647 |
Pretax Amounts Recognized in Ot
Pretax Amounts Recognized in Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial Losses/(gains) | $ 78 | $ 36 | $ (35) |
Amortization of actuarial losses | (27) | ||
Establish prior service cost | 509 | ||
Amortization prior service cost | (509) | ||
Pretax amounts recognized in other comprehensive (loss) income | 78 | 36 | (62) |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial Losses/(gains) | (229) | 718 | (154) |
Amortization of actuarial losses | (78) | (48) | (59) |
Amortization prior service cost | (572) | ||
Pretax amounts recognized in other comprehensive (loss) income | $ (307) | $ 670 | $ (785) |
Fair Value of Plan Assets (Deta
Fair Value of Plan Assets (Detail) - Gentherm GmbH - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | ||
Plan assets at beginning of year | $ 3,326 | $ 3,333 |
Actual return on plan assets | 121 | 125 |
Contributions | 272 | 261 |
Paid pension distributions | (272) | (261) |
Actuarial losses | (28) | (27) |
Exchange rate impact | 472 | (105) |
Plan assets at end of year | $ 3,891 | $ 3,326 |
Actuarial Assumptions Used to D
Actuarial Assumptions Used to Determine Benefit Obligation and Net Periodic Service Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.95% | 3.25% | 3.40% |
Gentherm GmbH | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.93% | 1.69% | 2.21% |
Expected long term rate of return on plan assets | 3.40% | 3.40% | 3.70% |
Schedule of Expected Pension Pa
Schedule of Expected Pension Payments (Detail) - Gentherm GmbH $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 293 |
2,019 | 291 |
2,020 | 289 |
2,021 | 287 |
2,022 | 283 |
2023 - 2027 | 1,392 |
Total | $ 2,835 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets, fair value | $ 0 | $ 0 |
Financial liabilities, fair value | 0 | 0 |
Carrying value | 144,669,000 | 171,525,000 |
Changes to fair value of assets, realized | 0 | 0 |
DEG Vietnam Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | 13,750,000 | 15,000,000 |
Fair value | 13,600,000 | 14,900,000 |
DEG China Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | 1,919,000 | 2,525,000 |
Fair value | $ 2,000,000 | $ 2,600,000 |
Derivative Financial Instrume87
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2008 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | ||||
One-time pre-tax gain | $ 2,180,000 | $ (1,762,000) | |||
Final cash settlement payment | $ 7,593,000 | ||||
Foreign Currency Derivatives | |||||
Derivative [Line Items] | |||||
Notional Value | 29,273,000 | 29,538,000 | |||
Commodity Derivatives | |||||
Derivative [Line Items] | |||||
Notional Value | 404,000 | 407,000 | |||
One-time pre-tax gain | 256,000 | 77,000 | |||
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 | ||||
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, 2017 | Dec. 31, 2016 |
Foreign Currency Derivatives | ||
Derivatives Fair Value [Line Items] | ||
Net Asset/ (Liabilities) | $ (909) | |
Foreign Currency Derivatives | Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 141 | |
Foreign Currency Derivatives | Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | (1,050) | $ (1,395) |
Net Asset/ (Liabilities) | (1,395) | |
Commodity Derivatives | Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 72 | 18 |
Net Asset/ (Liabilities) | $ 72 | $ 18 |
Information Related to Effect o
Information Related to Effect of Derivative Instrument's on Our Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | $ 2,180 | $ (1,762) |
Commodity Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | 256 | 77 |
Other comprehensive (loss) income | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | 302 | (1,395) |
Other comprehensive (loss) income | Commodity Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | 54 | 743 |
Product Revenues | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | (3) | |
Cost of sales | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | 2,209 | (608) |
Cost of sales | Commodity Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | 202 | (666) |
Selling, general and administrative expense | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | (216) | 139 |
Foreign currency gain | Foreign Currency Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) on derivatives | $ (112) | $ 102 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment directly to retained earnings | $ 1,496 | |||
ASU 2016-16 | Scenario, Forecast | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment directly to retained earnings | $ 27,771 | |||
ASU 2016-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment directly to retained earnings | $ 1,496 | $ 1,496 | ||
ASU 2014-09 | Scenario, Forecast | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment directly to retained earnings | $ 3,600 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ (69,091) | $ (51,670) | $ (25,743) | |
Other comprehensive income (loss) before reclassifications | 50,602 | (18,598) | (27,738) | |
Income tax effect of other comprehensive income (loss) before reclassifications | (575) | 788 | 365 | |
Amounts reclassified from accumulated other comprehensive income (loss) into net income | (1,943) | 593 | 1,966 | |
Income taxes reclassified into net income | 563 | (204) | (520) | |
Other comprehensive loss, net of tax: | 48,647 | (17,421) | (25,927) | |
Ending Balance | (20,444) | (69,091) | (51,670) | |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (2,550) | (2,060) | (2,673) | |
Other comprehensive income (loss) before reclassifications | 166 | (723) | 761 | |
Income tax effect of other comprehensive income (loss) before reclassifications | (60) | 185 | (234) | |
Amounts reclassified from accumulated other comprehensive income (loss) into net income | 78 | 48 | 86 | |
Other comprehensive loss, net of tax: | 184 | (490) | 613 | |
Ending Balance | (2,366) | (2,550) | (2,060) | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (65,762) | (49,381) | (23,060) | |
Other comprehensive income (loss) before reclassifications | 48,059 | (16,678) | (25,904) | |
Income tax effect of other comprehensive income (loss) before reclassifications | 148 | 297 | (417) | |
Other comprehensive loss, net of tax: | 48,207 | (16,381) | (26,321) | |
Ending Balance | (17,555) | (65,762) | (49,381) | |
Commodity Hedge Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 241 | (229) | ||
Other comprehensive income (loss) before reclassifications | 254 | 154 | (849) | |
Income tax effect of other comprehensive income (loss) before reclassifications | (93) | (57) | 543 | |
Amounts reclassified from accumulated other comprehensive income (loss) into net income | [1] | (199) | 589 | 124 |
Income taxes reclassified into net income | 74 | (216) | (47) | |
Other comprehensive loss, net of tax: | 36 | 470 | (229) | |
Ending Balance | 277 | 241 | (229) | |
Foreign Currency Hedge Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,020) | (10) | ||
Other comprehensive income (loss) before reclassifications | 2,123 | (1,351) | (1,746) | |
Income tax effect of other comprehensive income (loss) before reclassifications | (570) | 363 | 473 | |
Amounts reclassified from accumulated other comprehensive income (loss) into net income | [1] | (1,822) | (44) | 1,756 |
Income taxes reclassified into net income | 489 | 12 | (473) | |
Other comprehensive loss, net of tax: | 220 | (1,020) | $ 10 | |
Ending Balance | $ (800) | $ (1,020) | ||
[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. |
Cincinnati Sub-Zero Acquisiti92
Cincinnati Sub-Zero Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 51,735 | $ 51,735 | $ 51,735 | $ 69,685 | $ 27,765 | |
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 |
Cincinnati Sub-Zero Acquisiti93
Cincinnati Sub-Zero Acquisition - Summary of Preliminary Allocation (Detail) - USD ($) $ in Thousands | Apr. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 69,685 | $ 51,735 | $ 27,765 | |
Purchase price | 66,994 | $ 73,593 | $ (107) | |
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 |
Cincinnati Sub-Zero Acquisiti94
Cincinnati Sub-Zero Acquisition - Summary of Preliminary Allocation (Parenthetical) (Detail) $ in Thousands | Apr. 01, 2016USD ($) |
Cincinnati Sub-Zero Products, LLC | |
Business Acquisition [Line Items] | |
Consideration owed to seller for tax gross up | $ 2,000 |
Cincinnati Sub-Zero Acquisiti95
Cincinnati Sub-Zero Acquisition - 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 |
Cincinnati Sub-Zero Acquisiti96
Cincinnati Sub-Zero Acquisition - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Apr. 01, 2016 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | $ 111,522 | $ 111,522 | $ 160,908 | |
Accumulated Amortization | 53,965 | 53,965 | 77,622 | |
Total other intangible assets Net | 57,557 | 57,557 | 83,286 | |
Customer relationships | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 66,542 | 66,542 | 101,213 | |
Technology | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross Value | 35,378 | 35,378 | $ 47,641 | |
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 |
Cincinnati Sub-Zero Acquisiti97
Cincinnati Sub-Zero Acquisition - Summary of Amortization Expense (Detail) - Cincinnati Sub-Zero Products, LLC - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Amortization of intangibles | $ 325 | $ 975 |
Product revenues | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | 195 | 585 |
Research and development expenses | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | $ 130 | $ 390 |
Cincinnati Sub-Zero Acquisiti98
Cincinnati Sub-Zero Acquisition - Summary of Amortization Expense for Prospective Years (Detail) - Cincinnati Sub-Zero Products, LLC $ in Thousands | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
2,017 | $ 1,300 |
2,018 | 1,300 |
2,019 | 1,300 |
2,020 | 1,300 |
2,021 | $ 1,135 |
Cincinnati Sub-Zero Acquisiti99
Cincinnati Sub-Zero Acquisition - Summary of Property and Equipment (Detail) - Cincinnati Sub-Zero Products, LLC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Apr. 01, 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 | |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 586 | |
Asset under Construction | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 961 | |
Minimum | Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 5 years | |
Minimum | Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 3 years | |
Maximum | Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 7 years | |
Maximum | Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 5 years |
Valuation and Qualifying Acc100
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 1,391 | $ 955 | $ 1,213 |
Charged to Costs and Expenses | 1,239 | 1,469 | 4,174 |
Charged to Other Accounts | 51 | (270) | (373) |
Deductions from Reserves | (1,708) | (763) | (4,059) |
Balance at end of year | 973 | 1,391 | 955 |
Allowance for Deferred Income Tax Assets | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 19,304 | 13,418 | 18,037 |
Charged to Costs and Expenses | 6,700 | 5,706 | |
Charged to Other Accounts | 1,574 | 180 | (2,436) |
Deductions from Reserves | (2,183) | ||
Balance at end of year | 27,578 | 19,304 | 13,418 |
Reserve for Inventory | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 4,790 | 4,308 | 4,802 |
Charged to Costs and Expenses | 3,521 | 876 | 815 |
Charged to Other Accounts | 302 | (68) | (249) |
Deductions from Reserves | (726) | (326) | (1,060) |
Balance at end of year | $ 7,887 | $ 4,790 | $ 4,308 |