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Current maturities of long-term debt

65,808

^[1]

77,209

3,413

3,460

Derivative financial instruments

1,050

Liabilities held for sale

13,062

Total current liabilities

175,396

171,315

Pension benefit obligations

7,211

7,913

Other Liabilities

3,087

2,747

Long-term debt, less current maturities

136,477

141,209

Deferred tax liabilities

1,177

6,347

Total liabilities

323,348

329,531

Common Stock:

No par value; 55,000,000 shares authorized, 33,856,629 and 36,761,362 issued and outstanding at December 31, 2018 and 2017, respectively

140,300

265,048

Paid-in capital

14,934

15,625

Accumulated other comprehensive loss

(39,500)

(20,444)

Total shareholders’ equity

363,965

293,645

479,699

553,874

Total liabilities and shareholders’ equity

$ 803,047

$ 883,405

[1]	During 2018, unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale. As of December 31, 2018, 5,351 in unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 851	$ 973
Accumulated depreciation	98,705	83,404
Accumulated amortization	$ 81,198	$ 77,622
Common Stock, par value
Common Stock, shares authorized	55,000,000	55,000,000
Common Stock, shares issued	33,856,629	36,761,362
Common Stock, shares outstanding	33,856,629	36,761,362

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Product revenues	$ 1,038,259	$ 985,683	$ 917,600
Cost of sales	743,647	674,796	622,563
Gross margin	294,612	310,887	295,037
Operating costs and expenses:
Research and development expenses	98,663	94,515	79,583
Reimbursed research and development expenses	(18,763)	(12,037)	(6,660)
Net research and development expenses	79,900	82,478	72,923
Acquisition transaction expenses		789	743
Selling, general and administrative expenses	127,152	130,522	115,252
Restructuring expenses	14,772
Total operating costs and expenses	221,824	213,789	188,918
Operating income	72,788	97,098	106,119
Interest expense	(4,942)	(4,885)	(3,257)
Foreign currency gain (loss)	622	(23,108)	7,810
Impairment loss	(11,476)
Other income (loss)	1,127	150	(109)
Earnings before income tax	58,119	69,255	110,563
Income tax expense	16,220	34,028	33,965
Net income	$ 41,899	$ 35,227	$ 76,598
Basic earnings per share	$ 1.17	$ 0.96	$ 2.10
Diluted earnings per share	$ 1.16	$ 0.96	$ 2.09
Weighted average number of shares—basic	35,920,782	36,720,749	36,448,138
Weighted average number of shares—diluted	36,177,144	36,813,719	36,600,803

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net Income	$ 41,899	$ 35,227	$ 76,598
Other comprehensive gain (loss), gross of tax:
Net gain (loss) on pension benefit obligations	91	244	(675)
Foreign currency translation adjustments	(19,212)	48,059	(16,678)
Unrealized gain (loss) on foreign currency derivative securities	1,096	301	(1,395)
Unrealized gain (loss) on commodity derivative securities	(218)	55	743
Other comprehensive gain (loss), gross of tax	(18,243)	48,659	(18,005)
Other comprehensive gain (loss), related tax effects:
Cumulative effect of accounting change due to ASU 2018-02	(40)
Net gain (loss) on pension benefit obligations	(15)	(60)	185
Foreign currency translation adjustments	(390)	148	297
Unrealized gain (loss) on foreign currency derivative securities	(300)	(81)	375
Unrealized gain (loss) on commodity derivative securities	(68)	(19)	(273)
Other comprehensive gain (loss), related tax effect	(813)	(12)	584
Other comprehensive loss, net of tax:	(19,056)	48,647	(17,421)
Comprehensive income:	$ 22,843	$ 83,874	$ 59,177

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, 2015	$ 384,291	$ 256,919	$ (1,282)	$ (2,060)	$ (49,381)		$ (229)	$ 180,324
Beginning 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		36,534,000
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 \| 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
Exercise of Common Stock options for cash	$ 14,776	$ 18,755	(3,979)
Exercise of Common Stock options for cash (in shares)	615,358	615,000
Cumulative effect of accounting change due to adoption of ASU \| ASU 2014-09	$ (3,264)							(3,264)
Cumulative effect of accounting change due to adoption of ASU \| ASU 2016-16	31,645							31,645
Cumulative effect of accounting change due to adoption of ASU \| ASU 2018-02				(49)			9	40
Common Stock issued to Board of Directors and employees	5,759	$ 5,759
Common Stock issued to Board of Directors and employees (in shares)		22,000
Stock repurchase	(148,074)	$ (148,074)
Stock repurchase (in shares)		(3,470,000)
Stock option compensation	3,288		3,288
Cancelation of restricted stock	(1,188)	$ (1,188)
Cancelation of restricted stock (in shares)		(71,000)
Net gain (loss) on pension benefit obligation, net	76			76
Currency translation, net	(19,602)				(19,602)
Foreign currency hedge, net	796					796
Commodity hedge, net	(286)						$ (286)
Net Income	41,899							41,899
Ending Balance at Dec. 31, 2018	$ 479,699	$ 140,300	$ 14,934	$ (2,339)	$ (37,157)	$ (4)		$ 363,965
Ending Balance (in shares) at Dec. 31, 2018	33,856,629	33,857,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Activities:
Net Income	$ 41,899	$ 35,227	$ 76,598
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	50,638	44,972	37,764
Deferred income taxes	6,699	5,135	(8,843)
Stock compensation	9,047	12,507	9,186
Defined benefit pension plan (income) expense	82	(23)	184
Provision for doubtful accounts	(1)	(469)	108
Loss on sale of property and equipment	2,602	1,042	468
Impairment loss	11,476
Changes in operating assets and liabilities:
Accounts receivable	3,024	6,033	(17,971)
Inventory	(7,689)	(4,348)	(5,933)
Prepaid expenses and other assets	(4,428)	(12,334)	9,106
Accounts payable	12,380	(7,691)	4,419
Accrued liabilities	(7,295)	(30,171)	3,314
Net cash provided by operating activities	118,434	49,880	108,400
Investing Activities:
Investment in subsidiary, net of cash acquired	(15)	(66,994)	(73,593)
Investment in development-stage entity			(4,486)
Purchases of property and equipment	(41,541)	(50,785)	(66,316)
Proceeds from the sale of property and equipment	799	91	57
Net cash used in investing activities	(40,757)	(117,688)	(144,338)
Financing Activities:
Cash paid for financing costs			(649)
Borrowing of Debt	94,679		115,000
Repayments of Debt	(99,460)	(27,156)	(42,244)
Cash paid for the cancellation of restricted stock	(1,188)	(1,837)	(1,196)
Cash paid for the repurchase of common stock	(148,074)	(5,326)
Excess tax benefit from equity awards			7,509
Proceeds from the exercise of Common Stock options	14,777	2,755	1,438
Net cash (used in) provided by financing activities	(139,266)	(31,564)	79,858
Foreign currency effect on cash and cash equivalents	(1,963)	25,357	(11,212)
Net (decrease) increase in cash and cash equivalents	(63,552)	(74,015)	32,708
Cash and cash equivalents at beginning of period	103,172	177,187	144,479
Cash and cash equivalents at end of period	39,620	103,172	177,187
Supplemental disclosure of cash flow information:
Cash paid for interest	5,027	4,540	3,029
Cash paid for taxes	23,159	76,741	21,608
Supplemental disclosure of non-cash transactions:
Common Stock issued to directors and employees	$ 5,759	$ 6,298	$ 4,589

The Company

12 Months Ended

Dec. 31, 2018

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 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.

New Strategic Plan

On June 25, 2018, Gentherm announced a new strategic plan intended to improve business performance and position the Company to deliver above-market growth and improved profitability to its shareholders. An important element of the strategy is the Fit-for-Growth initiative that focuses on purchasing excellence, rationalization of research and development activities, reducing selling, general and administrative expense, minimization or elimination of investments in non-core areas and developing a manufacturing footprint commensurate with the new plan. Non-core areas of investment under the Fit-for-Growth initiative are concentrated in the following areas of Gentherm’s industrial segment: Non-core areas of investment under the Fit-for-Growth initiative are concentrated in the following areas of Gentherm’s industrial segment: Gentherm Global Power Technologies (“GPT”), Cincinnati Sub Zero’s Industrial Chamber business (“CSZ-IC”) and our battery management systems division in Irvine, California. We also completed the site consolidation plan for our advanced research and development operations and vacated two lease facilities in Azusa, California. On February 1, 2019, we completed the sale of CSZ-IC to Weiss Technik North America, Inc. for total cash proceeds of $47.5 million.

The strategy also identified several product categories the Company has now exited, including furniture, aviation, battery management electronics, industrial battery packs, automotive thermoelectric generators and other non-core electronics.

Fit-for-Growth

The Fit-for-Growth cost savings initiative began in January 2018. Consultant costs associated with the initiative were reported in restructuring expenses. The total amount of consultant costs incurred during 2018 was $2,852. We expect to incur an additional $600 thousand in consultant costs in the first quarter of 2019 from implementing Fit-for-Growth.

Gentherm also recognized $6,598 in one-time employee termination costs in restructuring expenses pertaining to Fit-for-Growth. Gentherm recognized $17 in contract termination costs in restructuring expenses pertaining to Fit-for-Growth.

Advanced Research and Development Rationalization and Site Consolidation

In June 2018, Gentherm completed a sale of its battery management systems division located in Irvine, California. A loss on the sale of $1,107 was recognized in restructuring expenses.

Note 1 – The Company – (Continued)

Gentherm has completed its site consolidation plan of advanced research and development operations and vacated the two leased facilities in Azusa, California. Gentherm recognized $643 in contract termination costs in restructuring expenses from implementing our site consolidation plan.

Gentherm recognized $1,094 in one-time employee termination costs in restructuring expenses pertaining to the site consolidation plan of advanced research and development operations.

Lastly, Gentherm recognized $1,400 in restructuring expenses for the disposal of long-lived assets controlled and used in Azusa, California.

GPT and CSZ-IC

During 2018, Gentherm launched a program to actively market GPT and CSZ-IC to potential buyers and initiated all other actions required to complete the divestiture plan. Gentherm incurred $304 in consultant costs in restructuring expenses to launch the sales plan and does not expect to incur additional consultant costs associated with the plan in the future. Lastly, Gentherm recognized $757 in one-time employee termination costs in restructuring expenses related to the divestiture process. See Note 15 to our consolidated financial statements for additional information regarding the assets and liabilities classified as held for sale.

Restructuring Liability

A reconciliation of the beginning and ending restructuring liability is as follows:

	One-Time Employee Termination Benefit Costs			Contract Termination Costs			Consulting Costs			Asset Disposal Costs			Total
Year Ended December 31, 2018
Balance, beginning of period	$	—		$	—		$	—		$	—		$	—
Additions, charged to costs		8,449			660			3,156			2,507			14,772
Payments		(6,370	)		(271	)		(3,077	)		(2,507	)		(12,225	)
Balance, end of period	$	2,079		$	389		$	79		$	—		$	2,547

The cumulative amount of restructuring expenses incurred and recognized in the automotive reporting segment during 2018 was $9,164. The cumulative amount of restructuring expenses incurred and recognized in the industrial reporting segment during the year ended December 31, 2018 was $5,608. See Note 9 to our consolidated financial statements for a description of our reportable segments as well as their proportional contribution to the Company’s reported product revenues and operating income.

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 17 to the consolidated financial statements for additional information regarding the acquisition of Etratech.

Note 1 — The Company – (Continued)

North American Reorganization

On January 4, 2016 and January 5, 2016, the Company completed reorganization transactions (the “Reorganization”) related to our North American business (the “Windsor Operations”). As part of our original integration plan to eliminate redundancies associated with the 2011 acquisition of Gentherm GmbH (formerly named W.E.T. Automotive Systems AG), the Windsor Operations have been consolidated into our existing European and North American facilities. As a result of the Reorganization, some of the business activities previously performed by the Windsor Operations are now being performed by other subsidiaries.

Related to the Reorganization, the Company declared intercompany dividends, incurred and paid 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. No payments related to the Reorganization were made in 2018.

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 climate comfort systems, specialized automotive cable systems, battery thermal management, and automotive electronic and software systems are all reported in the Automotive segment because of their complementary focus on automotive content, passenger thermal comfort and convenience. Etratech’s operating results are included within Gentherm’s Automotive segment due to the concentration of product applications within the automotive, RV and marine industries.

Climate comfort system solutions include seat heaters, variable temperature Climate Control Seats (“CCS”) designed to provide individualized thermal comfort to automobile passengers, and integrated electronic components, such as blowers and electronic control units and that utilize our proprietary electronics technology and software. Other climate comfort system solutions include steering wheel heaters, neck climate control systems and surface climate control system products for doors, armrests, cupholders and storage bins.

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 businesses are managed by our subsidiary Cincinnati Sub-Zero (“CSZ”). The advanced research and product development division is engaged in projects to improve the efficiency and functionality 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 markets and product applications based on thermal management technologies.

Note 1 — The Company – (Continued)

See Note 9 of the consolidated financial statements for information regarding the Company’s segment revenues from external customers, including geographic composition, operating income, depreciation and amortization, and goodwill.

Summary of Significant Accounting Policies and Basis of Presentation

12 Months Ended

Dec. 31, 2018

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, 2018, 2017 and 2016, 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 year’s amounts have been made to conform with the current year’s presentation. Notably, results from asset disposals during 2017 were reclassified from other income to cost of sales.

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.

Revenue Recognition

Revenue is recognized from agreements containing enforceable rights and obligations when promised goods are delivered or services are completed, the price is fixed or determinable, and payment has been received or is collectable. The amount of revenue recognized is net of the Company’s obligation for returns, rebates, discounts, taxes, if any, collected from customers, and consideration that is paid to a customer, unless such payment is in exchange for a distinct good or service. The amount of revenue recognized from a contract with a customer reflects the amount of consideration expected to be received in exchange for the transfer of goods or services.

Automotive Revenues

The Company sells automotive climate comfort solution, specialized automotive cable systems and automotive thermal convenience products under long-term supply agreements (“LTAs”) and, for arrangements that are less than one year in length, purchase orders. LTAs are multiple-year business awards to provide custom designed parts for a particular automotive vehicle program in quantities and at intervals of the customer’s choosing. LTAs are often multiple-element agreements. The main element in LTAs are production parts; distinct promises from which the customer can benefit separately from other promises or elements in the contract. A second element in LTAs are production part purchase options that provide customers the ability to purchase additional parts at set prices in the future. Judgement is used to determine whether a production part purchase option represents a material right to the customer and should be accounted for as a separate performance obligation. LTAs that provide customers with a purchase option discount incrementally higher than the range discounts typically given to automotive customers contain a material right. The magnitude of change in the year-over-year option prices and the total number of units expected to be ordered are important factors in the calculation of the option’s fair value and the allocation of transaction price.

Note 2 – Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

The price for parts is set at the point in time the customer exercises its option to purchase additional parts from the Company. A firm order, stating the number of each production part to be delivered, is an independent contract with a discrete transaction price. Revenues are allocated to production parts based on the relative standalone selling prices observed on the LTAs. As a practical alternative to estimating the standalone selling price of an option that provides a customer with a material right, the Company allocates transaction price to options by reference to the production part volumes expected to be ordered and the consideration expected to be received. The Company satisfies its obligation to provide product parts to the customer upon shipment.

When an option to purchase additional production parts in the future represents a material right, the customer effectively is paying Gentherm in advance for production parts each time it exercises the option by placing a firm order commitment. Revenue from options containing a material right are recognized on the basis of direct measurement of the value of production parts transferred to date relative to the total number of production parts expected to be delivered over the life of the vehicle program. Judgement is required to determine the pattern and timing with which an option containing a material right is satisfied and the production part is transferred to a customer.

Industrial Revenues

Our industrial business unit generates revenue from the sale of products and services by our wholly-owned subsidiaries CSZ and GPT. Industrial business unit revenues and medical business unit revenues discussed below are reported within the Company’s industrial reportable segment (see Note 9). Industrial business unit customers commonly enter into multiple-element agreements for the purchase of products and services. Installation services, for example, are separate and distinct performance obligations that are often included in contracts to purchase customized environmental test chambers. Depending on the application, delivery of an environmental test chamber or remote power generation system to the customer’s place of business can range from two weeks to nine months from commencement of the contract. Installation services, while reliant on the specifications and timing from the customer, rarely remain incomplete more than two months after delivery.

Revenues allocated to environmental test chambers or remote power systems are based on the stand alone selling price of products themselves. Judgement is used to determine the degree to which early pay discounts and other credits are utilized in the calculation of standalone selling price, and only included to the extent it is probable that a significant reversal of any incremental revenue will not occur. Revenues are recognized at the point in time the chamber or power system is shipped to the customer. For contracts that also include a promise for installation, the portion of total transaction price allocated to the installation is recognized as revenue at the point in time the installation is complete.

Revenues from our medical business unit are generated from the sale of products and equipment. Our medical products and equipment focus on body and blood temperature management. The Company sells medical products and equipment primarily through distributor and group purchasing organization agreements. These agreements allow member participants to the distributor or group purchasing organization to make purchases at discounted prices negotiated by the distributor or group purchasing organization. A rebate is incurred at the point in time a member participant purchases product covered under these types of agreements. Rebates are accounted for as variable consideration, using an expected value, probability weighted approach, based on the level of sales to the distributor and the time lag between the initial sale and the rebate claim in determining the transaction price of a contract. Revenue is recognized at the point in time the medical products or equipment is transferred to the customer.

Contract Balances

We record a receivable when revenue is recognized at the time of invoicing and unearned revenue when revenue is recognized subsequent to invoicing. For contracts where control of the goods or service is transferred to the customer over time, or whose terms require the customer to make milestone payments throughout the fulfillment period, the timing of revenue recognition is likely to differ from the timing of invoicing to customers.

Note 2 – Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

The opening balance of our accounts receivable, net of allowance for doubtful accounts, was $185,058 as of January 1, 2018.

Most of Gentherm’s unearned revenue pertains to LTAs containing a material right. In the early periods of an LTA containing a material right, when payments collected from the customer are greater than the standalone selling price of the production parts, revenue associated with the material right is deferred. In future periods, when amounts collected from customers as payment is less than the standalone selling price of the production parts delivered, the deferred revenue is reversed into revenue. For LTAs containing a material right and, thus, the timing of revenue recognition is likely to differ from the timing of invoicing to customer, the aggregate amount of transaction price allocated to material rights that remained unsatisfied under LTAs as of December 31, 2018 was $1,597. We expect to recognize into revenue, 64% of this balance in 2019, and the remaining 19%, 10%, 4%, 3% in 2020, 2021, 2022 and 2023, respectively.

Gentherm often requires milestone payments for contracts to provide environmental test chambers or remote power systems to customers. Milestone payments do not provide the Company with a right to payment for the work completed to date and do not represent the satisfaction of a performance obligation. Milestone payments are deferred and reported within unearned revenue until construction is complete and the unit has been delivered or is installed. If the environmental test chamber contract includes a separate promise to provide installation services, any installation-related payments received from the customer are deferred until the point in time the installation is complete.

The total amount of unearned revenue associated with environmental chamber and remote power system contracts, including environmental chamber contracts that include a separate obligation to provide installation, that existed as of December 31, 2018 was $5,296. Unearned revenue associated with environmental chamber and remote power system contracts is classified within Liabilities held for sale on the consolidated balance sheet at December 31, 2018 and within Accrued liabilities. See Note 15 to our consolidated financial statement for information about the assets and liabilities classified as held for sale. This entire balance is expected to be recognized into revenue during the next 12 months.

See Note 16 for information regarding the unearned revenue associated with these arrangements, including unearned revenue by segment and amounts recognized into revenue during the year ended December 31, 2018.

Payment terms for contracts with customers generally range from 30 to 120 days from the date of shipment of goods or completion of service or, if applicable, the scheduled milestone payment due date, and do not include components designed to provide customers with financing. For 2018, our revenues from sales to our three largest customers, Lear, Adient and Bosch Automotive were $181,000, $166,900 and $79,900, respectively, representing 17%, 16% and 8% of our total revenues, respectively.

Assets Recognized from the Costs to Obtain a Contract with a Customer

We recognize an asset for the incremental costs of obtaining a contract with a customer if the benefits of those costs are expected to be realized for a period greater than one year. Total capitalized costs to obtain a contract were immaterial during 2018 and are included in prepaid expenses and other assets and other non-current assets.

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 $33,955 and $88,440 held in foreign jurisdictions as of December 31, 2018 and 2017, respectively.

Note 2 – Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

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 11 for information about the techniques used to assess the fair value of financial assets and liabilities, including our fixed rate debt instruments.

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, 2018, Lear, Adient and Faurecia comprised 21%, 18% and 9% respectively, of the Company’s accounts receivable balance. As of December 31, 2017, Lear, Adient, and Magna comprised 24%, 20% 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 account 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.

Activity in the allowance for doubtful accounts was as follows:

	December 31,
	2018			2017
Balance at beginning of year	$	973		$	1,391
Additions charged to costs		1,005			1,239
Recoveries recognized in costs		(1,006	)		(1,708	)
Reclassified to assets held for sale		(96	)		—
Adjustment due to currency translation		(25	)		51
Balance at end of year	$	851		$	973

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,
	2018			2017
Balance at beginning of year	$	7,887		$	4,790
Expense		2,712			3,521
Inventory write off		(3,282	)		(726	)
Reclassified to assets held for sale		(899	)		—
Adjustment due to currency translation		(148	)		302
Balance at end of year	$	6,270		$	7,887

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		2 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 $36,270, $32,224 and $24,873 for the years ended December 31, 2018, 2017 and 2016, 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.

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		2-10 years
Production Development Costs		5-10 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.

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

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 $14,043, $12,425 and $12,675 in other intangible assets, including capitalized patent costs, were amortized in 2018, 2017 and 2016, respectively.

An estimate of intangible asset amortization by year, is as follows:

2019	$	10,464
2020		8,710
2021		7,887
2022		7,853
2023		7,853
Thereafter		13,619

Impairments of Long-Lived Assets, Other Intangible Assets and Goodwill

Whenever events or changes in circumstances indicate that it is more likely than not that a long-lived asset’s fair value, other intangible asset’s fair value or a reporting unit’s fair value is less than it’s carrying amount, the Company then compares the fair value of the long-lived asset, other intangible asset or reporting unit to the related net book value. If the net book value of a long-lived asset, other intangible asset or reporting unit exceeds its fair value, an impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its fair value. The fair value of a long-lived asset, other intangible asset or reporting unit is estimated by analyzing internal inputs (level 3) to calculate forward values and discounting those values to the present value.

During 2018, Gentherm determined GPT and CSZ-IC met the held for sale criteria, described below, and recorded an impairment loss on assets held for sale, goodwill and other intangible assets of $2,190, $6,151 and $3,135, respectively. An impairment of long-lived assets, goodwill or other intangible assets did not occur during the periods ending December 31, 2017 and 2016, respectively.

A roll forward of goodwill from December 31, 2016 to December 31, 2018 is as follows:

December 31, 2016	$	51,735
Goodwill arising from the acquisition of Etratech		14,881
Exchange rate impact		3,069
December 31, 2017	$	69,685
Reclassification to assets held for sale		(6,844	)
Impairment of goodwill		(6,151	)
Exchange rate impact		(1,379	)
December 31, 2018	$	55,311

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.

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

The following is a reconciliation of the changes in accrued warranty costs for the reporting period:


	December 31,
	2018			2017
Balance at beginning of year	$	5,382		$	5,443
Warranty claims paid		(905	)		(979	)
Warranty expense for products shipped during the current period		2,678			3,162
Adjustments to warranty estimates from prior periods		(608	)		(2,655	)
Reclassification to liabilities held for sale		(1,884	)		—
Adjustment due to currency translation		(149	)		411
Balance at end of year	$	4,514		$	5,382

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 $6,628 and $6,994 of reimbursable tooling was capitalized within prepaid expenses and other current assets as of December 31, 2018 and 2017, 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, 2018 and 2017, 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, restricted stock, and time-based and performance-based restricted stock units, are recognized in the financial statements as compensation expense based upon the fair value on the date of grant. Performance-based restricted stock unit awards are measured based on either a target return on invested capital ratio (“ROIC”), as defined in the award agreement, for a specified fiscal year, or the Company’s common stock market price returning a target total shareholder return (“TSR”), as defined, during a specific three-year measurement period. Upon achievement of the performance measurement, performance based restricted stock units vest over a three-year period.

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 $12,177 and $2,434, respectively, for the year ended December 31, 2018, $12,727 and $4,339, respectively, for the year ended December 31, 2017, and $8,147 and $2,891, respectively, for the year ended December 31, 2016.

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.

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

Assets and Liabilities Held for Sale

The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent losses as an adjustment to the carrying value of the disposal group.

The Company reports assets and liabilities of the disposal group in the line items assets held for sale and liabilities held for sale in the Consolidated Balance Sheet in the period the disposal group meets the criteria to be classified as held for sale. See Note 15 to our consolidated financial statement for information about the assets and liabilities classified as held for sale.

Subsequent Events

We have evaluated subsequent events through the date that our consolidated financial statements are issued. On February 1, 2019, we completed the sale of CSZ-IC and the CSZ headquarters facility to Weiss Technik North America, Inc. for total cash proceeds of $47,500.

Details of Certain Financial Statement Components

12 Months Ended

Dec. 31, 2018

Financial Statement Components [Abstract]

Details of Certain Financial Statement Components

Note 3 — Details of Certain Financial Statement Components

	December 31,
	2018			2017
Inventory:
Raw materials, net of reserve	$	61,679		$	64,175
Work in process, net of reserve		5,939			16,139
Finished goods, net of reserve		44,917			41,095
	$	112,535		$	121,409
Property and equipment:
Buildings, plant and equipment	$	213,257		$	213,329
Automobiles		1,180			1,281
Production tooling		15,526			16,540
Leasehold improvements		10,320			15,263
Computer equipment and software		26,381			27,880
Construction in progress		3,421			9,405
		270,085			283,698
Less: Accumulated depreciation		(98,705	)		(83,404	)
	$	171,380		$	200,294
Other intangible assets:
Customer relationships	$	87,316		$	101,213
Technology		39,167			47,641
Product development costs		11,100			12,054
	$	137,583		$	160,908
Less: Accumulated amortization		(81,198	)		(77,622	)
	$	56,385		$	83,286
Accrued liabilities:
Tax accruals	$	6,468		$	16,169
Accrued warranty		4,514			5,382
Accrued employee liabilities		25,449			25,503
Liabilities from discounts and rebates		16,907			16,057
Other accrued liabilities		12,470			14,098
	$	65,808		$	77,209

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 — Income Taxes

U.S. Tax Reform

As of December 31, 2017, the Company had not completed its accounting for the tax effects of the Tax Cuts and Jobs Act (Tax Act); however, in accordance with guidance provided by Staff Accounting Bulletin No. 118 (SAB 118), the Company made a provisional estimate of $20,153 for the effects on our existing deferred tax balances, the one-time transition tax and our indefinite reinvestment assertion regarding foreign subsidiary earnings. The measurement period begins in the reporting period that includes the Tax Act’s enactment date, which was December 22, 2017, and ends when the additional information is obtained, prepared, or analyzed to complete the accounting requirements under ASC Topic 740. The measurement periods should not extend beyond one year from the enactment date.

Note 4 — Income Taxes – (Continued)

As of December 31, 2018, the Company evaluated the provisional amounts initially recorded for the year ended December 31, 2017 and recorded adjustments based on updates to the Company’s assumptions and the application of additional interpretative guidance as issued during 2018. The adjustments are primarily a result of refining the net deferred tax asset position with the completion of our 2017 U.S. income tax return and changing tax accounting methods that affected the timing of certain US tax deductions. These adjustments resulted in (i) a decrease in our existing deferred tax asset balances which resulted in an income tax expense of $4,950 and (ii) a net increase to the one-time transition tax which resulted in an income tax expense of $24,625. No adjustment was required to the $9,578 tax benefit included in the provision for income taxes as of December 31, 2017 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. As of December 31, 2018, the total income tax expense was $19,997 for the year ended December 31, 2017, as compared to the provisional estimate of $20,153. In accordance with the Security and Exchange Commission’s Staff Accounting Bulletin No. 118 (SAB 118), at December 31, 2018, the Company had completed its accounting for the tax effects of the Tax Act.

The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following:

	December 31,
	2018			2017
Deferred tax assets:
Net operating losses		7,666			12,731
Intangible assets		42,853			—
Research and development credits		8,211			27,257
Depreciation		6,321			5,571
Valuation reserves and accrued liabilities		4,849			6,020
Foreign tax credit		376			—
Stock compensation		4,128			3,955
Inventory		1,069			2,062
Patents		150			163
Defined benefit obligation		1,796			1,977
Other credits		1,291			589
Unrealized foreign currency exchange loss		—			2,556
Other		2,499			36
		81,209			62,917
Valuation allowance		(9,977	)		(27,578	)
Deferred tax liabilities:
Intangible assets		—			(2,925	)
Unrealized foreign currency exchange gains		(554	)		—
Undistributed profits of subsidiary		(4,352	)		(6,450	)
Property and equipment		(2,896	)		(1,611	)
Other		(583	)		(548	)
		(8,385	)		(11,534	)
Net deferred tax asset	$	62,847		$	23,805

Note 4 — Income Taxes – (Continued)

Reconciliations between the statutory Federal income tax rate of 21% and 34% and the effective rate of income tax expense for each of the three years in the period ended December 31, 2018 are as follows:

	Year Ended December 31,
	2018			2017			2016
Statutory Federal income tax rate		21.0	%		34.0	%		34.0	%
Increase (Decrease) resulting from:
U.S. Taxes on foreign income, net of taxes paid credit		—			—			1.3	%
Change in valuation allowance		(6.6	%)		10.6	%		5.3	%
Foreign, state and local tax, net of Federal benefit		1.8	%		0.8	%		1.1	%
Nondeductible expenses		3.4	%		2.4	%		2.4	%
Stock option compensation		—			(2.2	%)		—
Research and development credits		(2.5	%)		(4.6	%)		(0.7	%)
Effect of different tax rates of foreign jurisdictions		(6.6	%)		(20.8	%)		(15.0	%)
Undistributed profits of subsidiaries		1.2	%		5.8	%		7.9	%
Tax reform items		10.8	%		29.1	%		—
Other tax exempt income		—			—			—
Tax effects of intercompany transfers		0.8	%		(5.0	%)		(5.3	%)
Other		4.6	%		(1.0	%)		(0.3	%)
Effective rate		27.9	%		49.1	%		30.7	%

The Company has Net Operating Loss (“NOL”) carryforwards as follows:

Jurisdiction	Amount as of December 31, 2018		Years of Expiration
U.S. Federal and state income tax	$	80,337		2019- 2037
Foreign	$	15,912		2019- 2038
Foreign	$	5,776		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 $2,191 remaining of these carryforwards are expected to expire before ultimately becoming available to reduce future tax liabilities in addition to $17,158 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 2019 to 2037. 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, 2018, certain non-U.S. subsidiaries have net operating loss carryforwards totaling $21,688. This amount includes $15,912 in NOLs that expire at various dates from 2019 through 2038 and the remaining $5,776 have no expiration date. The Company has a valuation allowance recorded against $5,746 of the total non-U.S. subsidiaries’ net operating loss carryforwards as of December 31, 2018. In 2014 through 2018, we incurred NOLs in Vietnam associated with the startup activities of new production facilities. The remaining NOLs are expected to be utilized in 2019 through 2020 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 4 — Income Taxes – (Continued)

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,
	2018		2017		2016
Income before income taxes:
Domestic	$	10,092	$	1,258	$	12,981
Foreign		48,027		67,997		97,582
Total income before income taxes	$	58,119	$	69,255	$	110,563

	Year Ended December 31,
	2018			2017			2016
Current income tax expense (benefit):
Federal	$	340		$	4,140		$	9,215
State and local		(71	)		150			749
Foreign		9,224			24,672			32,844
Total current income tax expense	$	9,493		$	28,962		$	42,808
Deferred income tax expense (benefit):
Federal	$	(1,422	)	$	15,207		$	(10,597	)
State and local		20			2,308			(742	)
Foreign		8,129			(12,449	)		2,496
Total deferred income tax expense	$	6,727		$	5,066		$	(8,843	)
Total tax expense	$	16,220		$	34,028		$	33,965

As of December 31, 2018 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, 2018, 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 2012.

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 2018 and 2017, 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 2018 and 2017 was, therefore, immaterial.

Note 4 — Income Taxes – (Continued)

At December 31, 2018, 2017 and 2016, the Company had total unrecognized tax benefits of $2,854, $4,522 and $4,486, 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,
	2018			2017			2016
Balance at beginning of year	$	4,522		$	4,486		$	4,443
Additions based on tax position related to current year		221			1,758			80
Additions based on tax positions related to prior year		458			4			366
Reductions from settlements and statute of limitation expiration		(2,179	)		(2,247	)		(299	)
Effect of foreign currency translation		(168	)		529			(104	)
Balance at end of year	$	2,854		$	4,522		$	4,486

The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2018, 2017 and 2016 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

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Note 5 — Debt

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 (2.40% at December 31, 2018) plus 0.50%, Bank of America’s prime rate (5.50% at December 31, 2018), or a one month Eurocurrency rate (0.00% at December 31, 2018) plus 1.00%. The Eurocurrency rate for loans denominated in U.S. Dollars is equal to the London Interbank Offered Rate (2.50% at December 31, 2018). 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.

Note 5 — Debt – (Continued)

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.

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, 2018, 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 $221,871 as of December 31, 2018. The following table summarizes the Company’s debt at December 31, 2018.

	Interest Rate			Principal Balance
Credit Agreement:
U.S. Revolving Note (U.S. Dollar Denominations)		4.02	%	$	122,000
U.S. Revolving Note (Euro Denominations)		1.50	%	$	5,727
DEG China Loan		4.25	%		913
DEG Vietnam Loan		5.21	%		11,250
Total debt				$	139,890
Current portion					(3,413	)
Long-term debt, less current maturities				$	136,477

The following table summarizes the Company’s debt at December 31, 2017.

	Interest Rate			Principal Balance
Credit Agreements:
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

Note 5 — Debt – (Continued)

The scheduled principal maturities of our debt as of December 31, 2018 is as follows:

Year	U.S. Revolving Note		DEG China Loan		DEG Vietnam Loan		Total
2019	$	—	$	913	$	2,500	$	3,413
2020		—		—		2,500		2,500
2021		127,727		—		2,500		130,227
2022		—		—		2,500		2,500
2023		—		—		1,250		1,250
Total	$	127,727	$	913	$	11,250	$	139,890

Accounting for Stock Based Compensation

12 Months Ended

Dec. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Accounting for Stock Based Compensation

Note 6 — Accounting for Stock Based Compensation

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 2006 Plan are still outstanding. As of December 31, 2018, the Company had an aggregate of 1,567,594 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. Stock options, for example, granted under such plans have lives for a period of up to ten years from the date of grant at an exercise price which is not less than the fair market value of the Common Stock on the date of the grant.

During the three year period ended December 31, 2018, the Company has outstanding stock options, stock appreciation rights (“SARs”), restricted stock awards and restricted stock units 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, 2018, there were 129,577 performance based restricted stock units outstanding. These awards vest over a three-year period after the Company’s achievement of either a target return on invested capital ratio (“ROIC”), as defined in the award agreement, for a specified fiscal year, or the Company’s common stock market price returning a target total shareholder return (“TSR”), as defined, during a specific three-year measurement period. Approximately one-half of the performance based restricted stock units are paid based on the ROIC condition, while the other one-half are paid based on the TSR condition. In each case, awards will pay out 50% of the target number of shares for achieving a minimum threshold or up to 200% of the target number of shares for exceeding the target. 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 $15,932 and $18,593 as of December 31, 2018 and 2017, respectively. That cost is expected to be recognized over a weighted average period of two years. Compensation expense for the years ended December 31, 2018, 2017 and 2016 was $12,177, $12,727 and $8,147, respectively. No share-based payment arrangements expired during the three-year period ended December 31, 2018. 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 6 — Accounting for Stock Based Compensation – (Continued)

Stock Options

The following table summarizes stock option activity during the three-year period ended December 31, 2018:

Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2015		1,530,845		$	27.46
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
Granted		—			—
Exercised		(615,358	)		24.01
Forfeited		(383,784	)		39.59
Outstanding at December 31, 2018		1,653,000			38.53		4.28	$	3,610
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
Exercisable at December 31, 2018		788,125		$	38.15		3.71	$	2,200

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:

	2018	2017	2016
Expected volatility	NA	33%	37%
Weighted average expected volatility	NA	33%	37%
Expected lives	NA	3 yrs.	3 yrs.
Risk-free interest rate	NA	1.49-1.93%	0.90-1.07%
Expected dividend yield	none	none	none

NA – No new stock options were granted during 2018.

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.

Note 6 — Accounting for Stock Based Compensation – (Continued)

The weighted-average grant-date fair value of options granted during the year ended December 31, 2017 and 2016 was $9.11 and $10.74, respectively. There were no stock options granted during the year ended December 31, 2018. The total intrinsic value of options exercised during the year ended December 31, 2018, 2017 and 2016 was $5,061, $4,715 and $2,456, respectively.

Restricted Stock

The following table summarizes restricted stock activity during the three-year period ended December 31, 2018:

Unvested Restricted Shares	Shares			Weighted- Average Grant-Date Fair Value
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
Granted		21,681			35.00
Vested		(130,684	)		38.62
Forfeited		(36,531	)		37.60
Outstanding at December 31, 2018		136,566		$	37.16

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 2018, 2017 and 2016 was $4,599, $6,006 and $3,865, respectively.

Restricted Stock Units

The following table summarizes restricted stock unit activity during the year ended December 31 2018:

			Performance Based Awards
Unvested Restricted Stock Units	Time Vesting Shares		ROIC Target Shares		TSR Target Shares		Total
Outstanding at December 31, 2017		—		—		—		—
Granted		86,392		64,785		64,792		215,969
Vested		—		—		—		—
Forfeited		—		—		—		—
Outstanding at December 31, 2018		86,392		64,785		64,792		215,969

No restricted stock units were granted prior to 2018.

Note 6 — Accounting for Stock Based Compensation – (Continued)

Stock Appreciation Rights

The following table summarizes SARs activity during the three-year period ended December 31, 2018:

Stock Appreciation Rights	Units			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2015		1,049,850		$	34.61
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
Granted		—			—
Exercised		(204,250	)		26.35
Forfeited		—			—
Outstanding at December 31, 2018		988,100		$	40.61		3.57	$	2,064
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
Exercisable at December 31, 2018		683,600		$	41.21		3.09	$	1,728

The total intrinsic value of SARs converted during the year ended December 31, 2018, 2017 and 2016 was $3,532, $1,495 and $261, respectively.

Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings per Share

Note 7 — Earnings Per Share

The Company’s diluted earnings per share give effect to all potential common shares outstanding during a period that do not have an anti-dilutive impact to the calculation. The following summarizes the shares included in the dilutive shares as disclosed in the statements of income:

	Year ended December 31,
	2018		2017		2016
Weighted average number of shares for calculation of basic EPS – Common Stock		35,920,782		36,720,749		36,448,138
Stock options, restricted stock awards and restricted stock units under equity incentive plans		256,362		92,970		152,665
Weighted average number of shares for calculation of diluted EPS – Common Stock		36,177,144		36,813,719		36,600,803

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,
	2018		2017		2016
Stock options outstanding for equity incentive plans		898,250		2,055,784		1,314,784

Note 7 — Earnings Per Share – (Continued)

See Note 6 for information about the Company’s different equity incentive plans.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8 — Commitments and Contingencies

The Company’s operating leases cover primarily buildings and underlying real estate, office equipment and automobiles. The Company has also entered into multiple year software subscription service agreements We do not have lease arrangements with related parties. A summary of lease and purchase commitments as of December 31, 2018, under all non-cancelable operating leases and service agreements with terms exceeding one year is as follows:


2019	$	7,530
2020		5,016
2021		2,468
2022		2,152
2023		1,532
2024 or later		4,021
Total	$	22,719

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 $8,366, $ 8,424 and $7,479 for 2018, 2017 and 2016, 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, 2018 and 2017, respectively. No material legal proceeding was terminated, settled or otherwise resolved during the fiscal year ended December 31, 2018 and 2017, respectively.

Segment Reporting

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting

Note 9 — Segment Reporting

Segment information is used by management for making operating decisions for the Company. Management evaluates the performance of the Company’s segments based primarily on operating income or loss. As discussed in Note 17, 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:

•

Automotive — this segment represents the design, development, manufacturing and sales of automotive climate comfort solutions, battery sub-systems, specialized automotive cable systems and 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, recreational vehicle and marine industries.

•

Industrial — the combined operating results of GPT, CSZ and Gentherm’s advanced research and development division. We perform advanced research and development on thermal management systems, including those that utilize new proprietary comfort software algorithms, to enhance the efficiency and functionality of our automotive heating and cooling products. 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. See Note 15 for information regarding the Industrial segment assets and liabilities classified as held for sale.

•

Reconciling Items — include corporate selling, general and administrative costs and acquisition transaction costs.

Note 9 — 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, 2018, 2017 and 2016. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of December 31, 2018, goodwill assigned to our Automotive and Industrial segments were $37,533 and $17,778, respectively. Due to the classification GPT’s and CSZ-IC’s assets as held for sale, an additional $6,844 of goodwill is classified within assets held for sale on Gentherm’s consolidated balance sheet as of December 31, 2018. As of December 31, 2017, goodwill assigned to our Automotive and Industrial segments were $38,912 and $30,773, respectively.

	Automotive		Industrial			Reconciling Items			Consolidated Total
2018:
Product revenues	$	948,592	$	89,667		$	—		$	1,038,259
Depreciation and amortization		43,621		4,384			2,633			50,638
Operating income (loss)		152,051		(22,530	)		(56,733	)		72,788
2017:
Product revenues	$	879,457	$	106,226		$	—		$	985,683
Depreciation and amortization		36,801		5,399			2,772			44,972
Operating income (loss)		166,378		(14,751	)		(54,529	)		97,098
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

Automotive and Industrial segment product revenues by product category for each of the years ended December 31, 2018, 2017 and 2016 are as follows:

	2018		%			2017			%			2016		%
Climate Control Seat (CCS)	$	374,816		36	%	$	387,961			40	%	$	405,795		44	%
Seat Heaters		305,337		29	%		307,309			31	%		288,939		32	%
Steering Wheel Heaters		69,845		7	%		62,125			6	%		49,516		5	%
Automotive Cables		98,931		9	%		92,093			9	%		85,283		9	%
Battery Thermal Management (BTM) ⁽¹⁾		28,472		3	%		10,043			1	%		6,546		1	%
Etratech		54,267		5	%		8,398			1	%		—		0	%
Other Automotive		16,924		2	%		11,528	⁽²⁾		1	%		11,349		1	%
Subtotal Automotive		948,592		91	%		879,457			89	%		847,428		92	%
Remote Power Generation (GPT)		19,222		2	%		31,891			3	%		18,628		2	%
Cincinnati Sub-Zero Products (CSZ)		70,445		7	%		74,335			8	%		51,544		6	%
Subtotal Industrial		89,667		9	%		106,226			11	%		70,172		8	%
Total Company	$	1,038,259		100	%	$	985,683			100	%	$	917,600		100	%

(1)Battery Thermal Management or BTM product revenues include Gentherm’s automotive grade, low cost, heat resistant fans and blowers used by customer for battery cooling through ventilation and production level shipments of the advanced TED based active cool system which began during the fourth quarter of 2017.

(2)Includes $2.0 million rebate to customer during 2017.

Note 9 — Segment Reporting – (Continued)

The Industrial operating loss is net of reimbursement for developmental expenses of $1,117, $2,116 and $641 for the years ended 2018, 2017 and 2016, respectively. Reconciling items include selling, general and administrative costs of $42,857, $43,457 and $39,059, respectively, for the years ended December 31, 2018, 2017 and 2016 and acquisition costs of $0, $789 and $743 for the years ended December 31, 2018, 2017 and 2016, respectively.

Revenue (based on shipment destination) by geographic area is as follows:

	2018		%			2017		%			2016		%
United States	$	488,926		47	%	$	454,669		46	%	$	449,065		49	%
China		93,628		9	%		93,645		9	%		80,493		9	%
Germany		88,366		9	%		71,768		7	%		70,258		8	%
Japan		62,633		6	%		57,467		6	%		45,103		5	%
South Korea		58,717		6	%		64,715		7	%		75,396		8	%
Canada		44,500		4	%		46,368		5	%		37,954		4	%
Czech Republic		42,665		4	%		38,828		4	%		38,164		4	%
United Kingdom		37,533		4	%		36,033		4	%		28,540		3	%
Romania		22,435		2	%		18,050		2	%		11,907		1	%
Other		98,856		9	%		104,320		10	%		80,720		9	%
Total Non U.S.		549,333		53	%		531,014		54	%		468,535		51	%
	$	1,038,259		100	%	$	985,683		100	%	$	917,600		100	%

We rely on three customers, two domestic and one foreign, to derive a significant portion of our product revenues. The table below lists the percentage of total product revenues generated from sales to these customers:

	2018			2017			2016
Lear (domestic)		17	%		20	%		21	%
Adient (domestic)		16	%		18	%		21	%
Bosch (foreign)		8	%		8	%		8	%

Pension and Other Post Retirement Benefit Plans

12 Months Ended

Dec. 31, 2018

Compensation And Retirement Disclosure [Abstract]

Pension and Other Post Retirement Benefit Plans

Note 10 — Pension and Other Post Retirement Benefit Plans

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.

Note 10 — Pension and Other Post Retirement Benefit Plans – (Continued)

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:

	2018			2017
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	4,218		$	3,419
Service cost		—			101
Interest cost		114			111
Actuarial (gain) loss		(158	)		78
Prior service cost		(342	)		509
Benefit obligation at end of year	$	3,832		$	4,218

The portion of the benefit obligation from the Plan expected to be paid in 2019 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 3.65%, 2.95% and 3.25% was used to determine the benefit obligation for the years ended December 31, 2018, 2017 and 2016, respectively. A discount rate assumption of 2.95%, 3.25% and 3.40% was used to determine the net periodic service cost for years ended December 31, 2018, 2017 and 2016, 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 $2,148 and $2,353 as of December 31, 2018 and 2017, 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, 2018, 2017 and 2016 are as follows:

	2018		2017		2016
Service cost	$	—	$	101	$	387
Interest cost		114		111		98
Amortization of prior service cost		—		509		—
Net periodic benefit cost	$	114	$	721	$	485

Note 10 — Pension and Other Post Retirement Benefit Plans – (Continued)

Pretax amounts recognized in other comprehensive income for the years ended December 31, 2018, 2017 and 2016 are as follows


	2018			2017			2016
Actuarial Losses/(gains)	$	(158	)	$	78		$	36
Amortization of actuarial losses		—			—			—
Establish prior service cost		—			509			—
Amortization prior service cost		—			(509	)		—
	$	(158	)	$	78		$	36

Tax expense of $73 was recognized in other comprehensive income related to the Plan for the year ended December 31, 2018, which included $40 due to the adoption of ASU 2018-02. See Note 13 for additional information about ASU 2018-02 and its impact in to Gentherm’s financial statements. Tax benefit of $26 was recognized in other comprehensive income related to the Plan for the year ended December 31, 2017. Tax expense of $14 was recognized in other comprehensive income related to the Plan for the year ended December 31, 2016.

Pretax unrecognized actuarial losses recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost were $222 and $380 as of December 31, 2018 and 2017, respectively. No amount of pretax unrecognized actuarial loss recorded in accumulated other comprehensive income as of December 31, 2018 are expected to be recognized as components of net periodic benefit cost in the year ending December 31, 2019.

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:

	2018			2017
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	7,927		$	7,326
Interest cost		147			130
Paid pension distributions		(292	)		(272	)
Actuarial (gains)/losses		114			(257	)
Exchange rate impact		(367	)		1,000
Benefit obligation at end of year	$	7,529		$	7,927

The following table sets forth the fair value of the plan assets for the periods ending December 31, 2018 and 2017:

	2018			2017
Change in plan assets:
Plan assets at beginning of year	$	3,891		$	3,326
Actual return on plan assets		130			121
Contributions		292			272
Paid pension distributions		(292	)		(272	)
Actuarial losses		(30	)		(28	)
Exchange rate impact		(183	)		472
Plan assets at end of year	$	3,808		$	3,891

Note 10 — Pension and Other Post Retirement Benefit Plans – (Continued)

The $3,720 and $4,036 net liability from the Gentherm GmbH plan as of December 31, 2018 and 2017, 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, 2018, 2017 and 2016 are as follows:


	2018			2017			2016
Actuarial (gains)/losses	$	143		$	(229	)	$	718
Amortization of actuarial losses		(73	)		(78	)		(48	)
Amortization of prior service cost		—			—			—
	$	70		$	(307	)	$	670

Tax expense of $19 was recognized in other comprehensive income related to the Gentherm GmbH defined benefit plan for the year ended December 31, 2018. Tax expense of $86 and tax benefit of $171 were recognized in other comprehensive income for the years ended December 31, 2017 and 2016, respectively.

Pretax unrecognized actuarial losses recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost were $2,372 and $2,416 as of December 31, 2018 and 2017, respectively. We expect $74 of pretax unrecognized actuarial loss recorded in accumulated other comprehensive income as of December 31, 2018 to be recognized as components of net periodic benefit cost in the year ending December 31, 2019.

Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2018, 2017 and 2016 are as follows:

	2018			2017			2016
Interest cost	$	147		$	130		$	154
Return on plan assets		(130	)		(121	)		(125	)
Amortization of prior service cost		—			—			—
Amortization of actuarial loss (gains)		73			78			48
Net periodic benefit cost	$	90		$	87		$	77

The Gentherm GmbH defined benefit plan is underfunded by $3,720 and $4,036 as of December 31, 2018 and 2017, 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:

	2018			2017			2016
Discount rate		2.04	%		1.93	%		1.69	%
Expected long term rate of return on plan assets		3.40	%		3.40	%		3.40	%

Note 10 — Pension and Other Post Retirement Benefit Plans – (Continued)

Plan assets are comprised of Gentherm GmbH’s pension insurance policies and are pledged to the beneficiaries of the plan. A market valuation technique, based on observable underlying insurance charges, is used to determine the fair value of the pension plan assets (Level 2). The expected return on plan assets assumption used to calculate Gentherm GmbH’s pension benefit obligation was determined using actual returns realized on plan assets in the prior year. We do not expect contributions to be paid to the Gentherm GmbH defined benefit plan during the next fiscal year.

The schedule of expected pension payments made to Gentherm GmbH defined benefit plan participants over the next 10 years is as follows:

Year
2019	$	287
2020		285
2021		283
2022		279
2023		290
2024 - 2028		1,344
Total	$	2,768

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 $1,471, $1,396 and $1,289 in matching contributions to the 401(k) plan in 2018, 2017 and 2016, respectively.

On December 31, 2018, Gentherm adopted the Gentherm Incorporated Deferred Compensation Plan (the “Management Plan”), effective January 1, 2019. The Management Plan’s purpose is to attract and retain a select group of management or highly compensated employees who will contribute significantly to the future business success of the Company by providing supplemental retirement income benefits. No contributions were made to the Management Plan as of December 31, 2018.

Fair Value Measurement

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurement

Note 11 — Fair Value Measurement

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.

Note 11 — Fair Value Measurement – (Continued)

Except for derivative instruments (see Note 12), pension liabilities, pension plan assets and a corporate owned life insurance policy (see Note 10), and assets and liabilities held for sale (see Note 15), the Company has no financial assets and liabilities that are carried at fair value at December 31, 2018 and 2017. 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, 2018 and 2017, 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 5). 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, 2018, the carrying values of the DEG Vietnam Loan and DEG China Loan were $11,250 and $913, respectively, as compared to an estimated fair value of $11,100 and $900, respectively. As of December 31, 2017, the carrying value of the DEG Vietnam Loan and DEG China Loan were $13,750 and $1,919, as compared to an estimated fair value of $13,600 and $2,000, 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. See Note 15 for information regarding impairment losses recognized on assets and liabilities classified as held for sale in 2018. As of December 31, 2017, 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 Instruments

12 Months Ended

Dec. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 12 — 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 $33,250 and $29,273 outstanding at December 31, 2018 and 2017, 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 $0 and $404 outstanding at December 31, 2018 and 2017, respectively.

Note 12 — Derivative Financial Instruments – (Continued)

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 14 for the amount of unrealized loss associated with foreign currency derivatives and copper commodity derivatives reported in accumulated other comprehensive income as of December 31, 2017 that was reclassified into earnings during 2018. 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.

Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2018 is as follows:

Asset Derivatives

Liability Derivatives

Net Asset/
(Liabilities)

Hedge

Designation

Fair Value

Hierarchy

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Foreign currency derivatives

Cash flow hedge

Level 2

Current assets

Current liabilities

—

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/
(Liabilities)

Hedge

Designation

Fair Value

Hierarchy

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

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

Note 12 — Derivative Financial Instruments – (Continued)

Information related to the effect of derivative instrument`s on our consolidated statements of income is as follows:


	Location	Year Ended December 31, 2018			Year Ended December 31, 2017
Foreign currency derivatives	Product Revenues	$	—		$	(3	)
	Cost of sales		(444	)		2,209
	Selling, general and administrative		75			(216	)
	Other comprehensive income		1,096			302
	Foreign currency gain		50			(112	)
Total foreign currency derivatives		$	777		$	2,180
Commodity derivatives	Cost of sales	$	145		$	202
	Other comprehensive (loss) income	$	(218	)	$	54
Total commodity derivatives		$	(73	)	$	256

We did not incur any hedge ineffectiveness during the years ended December 31, 2018 and 2017.

New Accounting Pronouncements

12 Months Ended

Dec. 31, 2018

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

New Accounting Pronouncements

Note 13 — New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

In May 2014, the FASB issued Accounting Standard Update (“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 principal 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 good or services. Issuers are to use a five-step contract review model to ensure revenue is measured, recognized, and disclosed in accordance with this principle. The FASB issued several amendments to the update, including a one-year deferral of the original effective date, and new methods for identifying performance obligations that are intended to reduce the cost and complexity of compliance.

We adopted ASU 2014-09 and related amendments effective January 1, 2018 using the cumulative catch-up transition method, which required us to disclose the cumulative effect of initially applying the update recognized at the date of initial application. We elected to apply the guidance in ASU 2014-09 to contracts that were not completed at January 1, 2018.

The most significant impact from adoption of ASU 2014-09 occurred within our Automotive segment and relates to our accounting for production part purchase options that grant customers a material right to purchase additional parts 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. Revenue recognition related to goods and services reported in the Industrial segment remains substantially unchanged.

Note 13 – New Accounting Pronouncements – (Continued)

The amount by which each financial statement line item was affected by application of ASU 2014-09 and related amendments during 2018 is as follows:

	Revenue Based on Previously Effective Guidance		New Revenue Standard Adjustment		Revenue Based on New Revenue Standard
Year Ended December 31, 2018
Product revenues	$	1,035,773	$	2,486	$	1,038,259
Income tax expense		16,727		507		16,220
Net income		39,920		1,979		41,899
Basic earnings per share		1.11		0.06		1.17
Diluted earnings per share		1.10		0.06		1.16

	Revenue Based on Previously Effective Guidance		New Revenue Standard Adjustment			Revenue Based on New Revenue Standard
Balance Sheet December 31, 2018
Accounts receivable, net of allowance for doubtful accounts	$	166,858	$	—		$	166,858
Accrued liabilities^(a)	$	64,211	$	1,597		$	65,808
Unearned revenue^(a)	$	—	$	1,597		$	1,597
Deferred income taxes, net	$	62,522	$	325		$	62,847
Accumulated earnings	$	365,237	$	(1,272	)	$	363,965

During 2018, unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale. As of December 31, 2018, 5,351 in unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale.

Adoption of ASU 2014-09 and related amendments had no impact to cash from or used in operating, investing or financing activities on our consolidated statements 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:

Debt extinguishment payments and debt prepayments are to be shown as cash outflows for financing activities. Previously, Gentherm classified debt extinguishment payments within operating activities.

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.

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.

Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities.

Note 13 – New Accounting Pronouncements – (Continued)

We have adopted ASU 2016-15 and related amendments effective January 1, 2018. None of the cash receipt and cash payment transactions addressed by the update occurred during any of the periods presented in this report. Adoption of this update and related amendments did not have a material impact on the cash flows of the Company.

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.

We adopted ASU 2016-16 and related amendments effective January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of such adoption date. As a result of the amendments in ASU 2016-16, a favorable adjustment of $31,645 was recorded directly to retained earnings. The new deferred tax assets will be recognized ratably over the useful life of the applicable assets.

Accumulated Other Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 provides a remedy to a narrow-scope financial reporting issue created by the Tax Act. The Tax Act required entities to adjust deferred tax assets and liabilities to reflect the impact from newly enacted lower corporate income tax rates and recognize the effect in income from continuing operations. This requirement applied to all deferred tax assets and liabilities, even those which arose from transactions originally recognized in other comprehensive income. The amendments in ASU 2018-02 allow adjustments to deferred tax assets and liabilities due to newly enacted lower corporate income tax rates to be recognized in retained earnings, if those deferred tax balances arose from transactions originally recognized in other comprehensive income.

Income tax effects are released from accumulated other comprehensive income and recorded against the deferred tax balance in the consolidated balance sheet when the underlying activity is realized.

ASU 2018-02 is effective for annual and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments in ASU 2018-02 must be applied in the period of adoption or retrospectively to each period in which the effect of the change in U.S. federal corporate income tax rate in the Tax Act is recognized. We elected to early adopt ASU 2018-02 and related amendments effective January 1, 2018. An adjustment of $40 was recognized against retained earnings for effect of the change in the federal corporate income tax rate on deferred tax amounts. There are no related adjustments to the Company’s valuation allowance and no other income tax effects from the Tax Act on balances that remain in accumulated other comprehensive income were reclassified.

Tax Act

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of deemed return on tangible assets of foreign corporations. During the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost.

Note 13 – 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 has adopted the accounting principles in ASU 2017-04 and applied them to our test for goodwill impairment. See Note 15 for information about the goodwill impairment loss recognized during 2018.

Recently Issued Accounting Pronouncements Not Yet Adopted

Derivatives and Hedging

In October 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” ASU 2018-16 adds the OIS Rate based on SOFR to the list of eligible benchmark interest rates that can be used for hedge accounting purposes under Topic 815. SOFR is a volume-weighted median interest rate that is calculated daily based on overnight transactions from the prior day’s trading activity in specified segments of the U.S. Treasury repo market. The designation of the OIS rate based on SOFR as a benchmark interest rate for hedge accounting purposes is in response to ongoing concerns about the sustainability of LIBOR and the Federal Reserve’s intent to have a suitable alternative to USD LIBOR that is more firmly based on actual transactions in a robust market. Prior to this update, the only eligible benchmark interest rates were the interest rates on direct Treasury obligations of the U.S. government (UST), the LIBOR swap rate, the OIS Rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate.

ASU 2018-16 is effective for annual and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update is permitted. The amendments in this update should be adopted on a prospective basis for qualifying new or redesigned hedging relationships entered into on or after the date of adoption. While the Company has not executed any U.S. benchmark interest rate transactions in order to apply hedge accounting under Topic 815, we are currently in the process of determining the impact implementation of ASU 2018-16 will have on our strategy approach to the management of interest rate risk.

Cloud Computing Arrangements That Are Service Contracts

In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 provides guidance on when costs incurred to implement a hosting arrangement that is a service contract are and are not capitalized, aligning with the guidance for capitalizing implementation costs incurred to develop or obtain internal-use software. Entities must first determine the project stage of the implementation activity; depending on their nature, costs for implementation activities in the application development stage are capitalized and costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. Capitalized implementation costs should be amortized over the term of the hosting arrangement on a straight-line basis and presented in the same line items in the consolidated statement of income as the expense for fees for the associated hosting arrangements. Similarly, capitalized implementation costs should be presented in same line item in the balance sheet as prepaid fees for the associated hosting arrangement and cash flows from capitalized implementation costs should be classified in the same manner as cash flows for the fees for the associated hosting arrangement.

Note 13 – New Accounting Pronouncements – (Continued)

ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019. Early adoption of the amendments in this update is permitted, including adoption in any interim period for which financial statements have not yet been issued. ASU 2018-15 permits two methods of adoption: prospectively to costs for activities performed on or after the date the entity first applies the content from the update, or retrospectively to all periods presented. We are currently in the process of determining the impact implementation of ASU 2018-15 will have on the Company’s financial statement note disclosures.

Retirement Benefits

In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans.” The amendments in ASU 2018-14 were developed using the concepts incorporated in the FASB’s Concepts Statement, Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements, which were finalized in August 2018. The amendments in this update remove the following disclosure requirements, among others, from Subtopic 715-20:

The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year.

The amount and timing of plan assets expected to be returned to the employer.

The following disclosure requirements were added to Subtopic 715-20:

The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates.

An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.

ASU 2018-14 is effective for annual periods ending after December 15, 2020. Early adoption of the amendments in this update are permitted. Entities should apply the amendments in this update on a retrospective basis to all periods presented. We are currently in the process of determining the impact implementation of ASU 2018-14 will have on the Company’s financial statement note disclosures.

Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in ASU 2018-13 were developed using the concepts incorporated in the FASBs Concepts Statement, Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements, which were finalized in August 2018. The amendments in this update remove the following disclosure requirements from Topic 820:

The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy.

The policy for timing of transfer between levels.

The valuation processes for Level 3 fair value measurements.

The following disclosure requirements were added to Topic 820:

The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period.

The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.

Note 13 – New Accounting Pronouncements – (Continued)

ASU 2018-13 is effective for annual and interim periods beginning after December 15, 2019. Early adoption of disclosures that are removed is permitted, but adoption is delayed for the new additional disclosures until their effective date. The amendments in ASU 2018-13 that provide for new additional disclosure should be applied on a prospective basis, while all other amendments should be applied retrospectively to all periods presented upon their effective date. We are currently in the process of determining the impact implementation of ASU 2018-13 will have on the Company’s financial statement note disclosures.

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 will 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. The FASB has issued several amendments to ASU 2016-02, including ASU 2018-11, “Leases (Topic 842): Targeted Improvements” that introduced an additional transition method permitting an entity to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We expect elect this transition method.

ASU 2016-02 includes optional practical expedients intended to reduce the cost and complexity to implement the new lease standard, such as an option to maintain the current lease classification for all existing lease arrangements and the option to use hindsight in evaluating lessee options to extend or terminate a lease. We expect to elect these practical expedients. The Company expects to add right-of-use assets and the corresponding liabilities to the consolidated balance sheet equal to approximately 1.5% to 2.5% of total assets as of the implementation date. Any differences between the total carrying value of right-of-use assets and lease liabilities will be recognized as a reduction to the 2019 opening balance in retained earnings.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

Note 14 – 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, 2018, December 31, 2017 and December 31, 2016 are as follows:

	Defined Benefit Pension Plans			Foreign Currency Translation Adjustments			Commodity Hedge Derivatives				Foreign Currency Hedge Derivatives				Total
Balance at December 31, 2017	$	(2,366	)	$	(17,555	)	$	277			$	(800	)		$	(20,444	)
Cumulative effect of accounting change due to adoption of ASU 2018-02		(49	)		—			9				—				(40	)
Other comprehensive income (loss) before reclassifications		18			(19,212	)		—				1,342				(17,852	)
Income tax effect of other comprehensive income (loss) before reclassifications		(15	)		(390	)		—				(337	)			(742	)
Amounts reclassified from accumulated other comprehensive income (loss) into net income		73			—			(218	)	^a		(246	)	^a		(391	)
Income taxes reclassified into net income		—			—			(68	)			37				(31	)
Net current period other comprehensive income (loss)		27			(19,602	)		(277	)			796				(19,056	)
Balance at December 31, 2018	$	(2,339	)		(37,157	)		—				(4	)			(39,500	)

(a)	The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 12 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, 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	)	^a		(1,822	)	^a		(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 12 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income.

Note 14 – 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, 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 12 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, 2018 to be reclassified into earnings during the twelve month period ending December 31, 2019.

Assets and Liabilities Held for Sale

12 Months Ended

Dec. 31, 2018

Discontinued Operations And Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

Note 15 – Assets and Liabilities Held for Sale

During 2018, Gentherm determined GPT and CSZ-IC met the held for sale criteria and recorded an impairment on assets held for sale of $2,190 in impairment loss to adjust net book value to fair value less costs to sell. See Note 2 for information about the Company’s held for sale accounting policy, including a description of the criteria necessary for a disposal group to qualify for classification as held for sale. GPT and CSZ-IC did not meet the criteria to be classified as a discontinued operation.

Note 15 – Assets and Liabilities Held for Sale – (Continued)

The assets and liabilities of the disposal group classified as held for sale as of December 31, 2018 are as follows:

Accounts receivable, less allowance of $96	$	10,868
Inventory, net		13,925
Prepaid expenses and other assets		263
Property and equipment, net		29,459
Goodwill		6,844
Other intangible assets, net		6,326
Deferred income tax assets		4,204
Other non-current assets		—
Impairment loss		(2,190	)
Total assets held for sale	$	69,699

Accounts payable	$	2,614
Accrued liabilities		10,448
Total liabilities held for sale	$	13,062

Losses before income taxes from GPT and CSZ-IC during 2018, including $2,190 in impairment loss recognized on held for sale assets, $6,151 in impairment loss on goodwill and $3,135 in impairment loss recognized on other intangible assets, were $15,747. Losses before income taxes from GPT and CSZ-IC during 2017 were $1,949. Management’s estimates used to record impairment expense are inherently uncertain and may change in future periods.

Unearned Revenue

12 Months Ended

Dec. 31, 2018

Revenue Recognition And Deferred Revenue [Abstract]

Unearned Revenue

Note 16 – Unearned Revenue

Unearned revenue by segment was as follows:

	December 31, 2018		December 31, 2017
Automotive	$	1,597	$	—
Industrial		—		4,889
Total	$	1,597	$	4,889

Changes in unearned revenue were as follows:

Year Ended December 31, 2018
Balance, beginning of period	$	4,889
Additions to unearned revenue		21,774
Reclassified to revenue		(19,677	)
Reclassified to liabilities held for sale		(5,351	)
Currency impacts		(38	)
Balance, end of period	$	1,597

Revenue allocated to remaining performance obligations represent contracted revenue that has not yet been recognized, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods.

Etratech Acquisition

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Etratech Acquisition

Note 17 — 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 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.

Purchase Price Allocation

The purchase price of $65,009, net of cash acquired of $670, has been allocated to the values of assets acquired and liabilities assumed as of November 1, 2017. 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 first quarter of 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		14,881
Assumed liabilities		(9,642	)

Net assets acquired		65,009
Cash acquired		670

Purchase price	$	65,679

The gross contractual amount due of accounts receivable is $12,654, all of which was subsequently collected.

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 December 31,
	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.

Note 17 – Etratech Acquisition – (Continued)

Goodwill

We recorded goodwill of approximately $14,881 arising from the acquisition. The acquired goodwill represents intangible assets that do not qualify for separate recognition. It is estimated that approximately $8,787 of the goodwill recognized will not be deductible for income tax purposes.

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 Amortization		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 December 31, 2017		Twelve Months Ended December 31, 2017
Product revenues	$	358	$	358
Research and development expenses		277		277

Amortization expense for the prospective five years is 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
Leasehold 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

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

Valuation And Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

GENTHERM INCORPORATED

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

For the Years Ended December 31, 2018, 2017 and 2016

(In thousands)

Description	Balance at Beginning of Period		Charged to Costs and Expenses		Charged to Other Accounts			Deductions from Reserves			Balance at End of Period
Allowance for Doubtful Accounts
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
Year Ended December 31, 2018		973		1,005		(121	)		(1,006	)		851
Allowance for Deferred Income Tax Assets
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
Year Ended December 31, 2018		27,578		—		(14,009	)		(3,592	)		9,977
Reserve for Inventory
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
Year Ended December 31, 2018		7,887		2,712		(1,047	)		(3,282	)		6,270

Summary of Significant Accounting Policies and Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Consolidation

Use of Estimates

Revenue Recognition

Automotive Revenues

Note 2 – Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

Industrial Revenues

Contract Balances

Note 2 – Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

The opening balance of our accounts receivable, net of allowance for doubtful accounts, was $185,058 as of January 1, 2018.

Assets Recognized from the Costs to Obtain a Contract with a Customer

Cash and Cash Equivalents

Disclosures About Fair Value of Financial Instruments

Note 2 – Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

Disclosures About Fair Value of Financial Instruments

Concentration of Credit Risk

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:

	December 31,
	2018			2017
Balance at beginning of year	$	973		$	1,391
Additions charged to costs		1,005			1,239
Recoveries recognized in costs		(1,006	)		(1,708	)
Reclassified to assets held for sale		(96	)		—
Adjustment due to currency translation		(25	)		51
Balance at end of year	$	851		$	973

Inventory

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,
	2018			2017
Balance at beginning of year	$	7,887		$	4,790
Expense		2,712			3,521
Inventory write off		(3,282	)		(726	)
Reclassified to assets held for sale		(899	)		—
Adjustment due to currency translation		(148	)		302
Balance at end of year	$	6,270		$	7,887

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		2 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 $36,270, $32,224 and $24,873 for the years ended December 31, 2018, 2017 and 2016, 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.

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		2-10 years
Production Development Costs		5-10 years

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

A total of $14,043, $12,425 and $12,675 in other intangible assets, including capitalized patent costs, were amortized in 2018, 2017 and 2016, respectively.

An estimate of intangible asset amortization by year, is as follows:

2019	$	10,464
2020		8,710
2021		7,887
2022		7,853
2023		7,853
Thereafter		13,619

Impairments of Long-Lived Assets, Other Intangible Assets and Goodwill

A roll forward of goodwill from December 31, 2016 to December 31, 2018 is as follows:

December 31, 2016	$	51,735
Goodwill arising from the acquisition of Etratech		14,881
Exchange rate impact		3,069
December 31, 2017	$	69,685
Reclassification to assets held for sale		(6,844	)
Impairment of goodwill		(6,151	)
Exchange rate impact		(1,379	)
December 31, 2018	$	55,311

Accrued Warranty Costs

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

The following is a reconciliation of the changes in accrued warranty costs for the reporting period:


	December 31,
	2018			2017
Balance at beginning of year	$	5,382		$	5,443
Warranty claims paid		(905	)		(979	)
Warranty expense for products shipped during the current period		2,678			3,162
Adjustments to warranty estimates from prior periods		(608	)		(2,655	)
Reclassification to liabilities held for sale		(1,884	)		—
Adjustment due to currency translation		(149	)		411
Balance at end of year	$	4,514		$	5,382

Tooling

Research and Development Expenses

Income Taxes

Derivative Financial Instruments - Hedge Accounting

Derivative Financial Instruments – Hedge Accounting

Earnings Per Share

Earnings per Share

Stock Based Compensation

Pension Plans

Assets and Liabilities Held for Sale

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation – (Continued)

Assets and Liabilities Held for Sale

Subsequent Events

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

Note 13 – New Accounting Pronouncements – (Continued)

The amount by which each financial statement line item was affected by application of ASU 2014-09 and related amendments during 2018 is as follows:

	Revenue Based on Previously Effective Guidance		New Revenue Standard Adjustment		Revenue Based on New Revenue Standard
Year Ended December 31, 2018
Product revenues	$	1,035,773	$	2,486	$	1,038,259
Income tax expense		16,727		507		16,220
Net income		39,920		1,979		41,899
Basic earnings per share		1.11		0.06		1.17
Diluted earnings per share		1.10		0.06		1.16

	Revenue Based on Previously Effective Guidance		New Revenue Standard Adjustment			Revenue Based on New Revenue Standard
Balance Sheet December 31, 2018
Accounts receivable, net of allowance for doubtful accounts	$	166,858	$	—		$	166,858
Accrued liabilities^(a)	$	64,211	$	1,597		$	65,808
Unearned revenue^(a)	$	—	$	1,597		$	1,597
Deferred income taxes, net	$	62,522	$	325		$	62,847
Accumulated earnings	$	365,237	$	(1,272	)	$	363,965

Adoption of ASU 2014-09 and related amendments had no impact to cash from or used in operating, investing or financing activities on our consolidated statements of cash flows.

Statement of Cash Flows

Debt extinguishment payments and debt prepayments are to be shown as cash outflows for financing activities. Previously, Gentherm classified debt extinguishment payments within operating activities.

Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities.

Note 13 – New Accounting Pronouncements – (Continued)

Income Taxes

Accumulated Other Comprehensive Income

Income tax effects are released from accumulated other comprehensive income and recorded against the deferred tax balance in the consolidated balance sheet when the underlying activity is realized.

Tax Act

Note 13 – New Accounting Pronouncements – (Continued)

Goodwill Impairment

Recently Issued Accounting Pronouncements Not Yet Adopted

Derivatives and Hedging

Cloud Computing Arrangements That Are Service Contracts

Note 13 – New Accounting Pronouncements – (Continued)

Retirement Benefits

The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year.

The amount and timing of plan assets expected to be returned to the employer.

The following disclosure requirements were added to Subtopic 715-20:

The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates.

An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.

Fair Value Measurement

The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy.

The policy for timing of transfer between levels.

The valuation processes for Level 3 fair value measurements.

The following disclosure requirements were added to Topic 820:

The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period.

The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.

Note 13 – New Accounting Pronouncements – (Continued)

Leases

The Company (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring And Related Activities [Abstract]

Summary of Reconciliation of Restructuring Liability

A reconciliation of the beginning and ending restructuring liability is as follows:

	One-Time Employee Termination Benefit Costs			Contract Termination Costs			Consulting Costs			Asset Disposal Costs			Total
Year Ended December 31, 2018
Balance, beginning of period	$	—		$	—		$	—		$	—		$	—
Additions, charged to costs		8,449			660			3,156			2,507			14,772
Payments		(6,370	)		(271	)		(3,077	)		(2,507	)		(12,225	)
Balance, end of period	$	2,079		$	389		$	79		$	—		$	2,547

Summary of Significant Accounting Policies and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Activity in Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:

	December 31,
	2018			2017
Balance at beginning of year	$	973		$	1,391
Additions charged to costs		1,005			1,239
Recoveries recognized in costs		(1,006	)		(1,708	)
Reclassified to assets held for sale		(96	)		—
Adjustment due to currency translation		(25	)		51
Balance at end of year	$	851		$	973

Reconciliation of Changes in Inventory Reserve

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,
	2018			2017
Balance at beginning of year	$	7,887		$	4,790
Expense		2,712			3,521
Inventory write off		(3,282	)		(726	)
Reclassified to assets held for sale		(899	)		—
Adjustment due to currency translation		(148	)		302
Balance at end of year	$	6,270		$	7,887

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		2 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

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		2-10 years
Production Development Costs		5-10 years

Roll Forward of Goodwill from Acquisition

A roll forward of goodwill from December 31, 2016 to December 31, 2018 is as follows:

December 31, 2016	$	51,735
Goodwill arising from the acquisition of Etratech		14,881
Exchange rate impact		3,069
December 31, 2017	$	69,685
Reclassification to assets held for sale		(6,844	)
Impairment of goodwill		(6,151	)
Exchange rate impact		(1,379	)
December 31, 2018	$	55,311

Reconciliation of Changes in Accrued Warranty Costs

The following is a reconciliation of the changes in accrued warranty costs for the reporting period:


	December 31,
	2018			2017
Balance at beginning of year	$	5,382		$	5,443
Warranty claims paid		(905	)		(979	)
Warranty expense for products shipped during the current period		2,678			3,162
Adjustments to warranty estimates from prior periods		(608	)		(2,655	)
Reclassification to liabilities held for sale		(1,884	)		—
Adjustment due to currency translation		(149	)		411
Balance at end of year	$	4,514		$	5,382

W.E.T

Estimate of Total Intangible Asset Amortization

An estimate of intangible asset amortization by year, is as follows:

2019	$	10,464
2020		8,710
2021		7,887
2022		7,853
2023		7,853
Thereafter		13,619

Details of Certain Financial Statement Components (Tables)

12 Months Ended

Dec. 31, 2018

Financial Statement Components [Abstract]

Details of Certain Financial Statement Components

	December 31,
	2018			2017
Inventory:
Raw materials, net of reserve	$	61,679		$	64,175
Work in process, net of reserve		5,939			16,139
Finished goods, net of reserve		44,917			41,095
	$	112,535		$	121,409
Property and equipment:
Buildings, plant and equipment	$	213,257		$	213,329
Automobiles		1,180			1,281
Production tooling		15,526			16,540
Leasehold improvements		10,320			15,263
Computer equipment and software		26,381			27,880
Construction in progress		3,421			9,405
		270,085			283,698
Less: Accumulated depreciation		(98,705	)		(83,404	)
	$	171,380		$	200,294
Other intangible assets:
Customer relationships	$	87,316		$	101,213
Technology		39,167			47,641
Product development costs		11,100			12,054
	$	137,583		$	160,908
Less: Accumulated amortization		(81,198	)		(77,622	)
	$	56,385		$	83,286
Accrued liabilities:
Tax accruals	$	6,468		$	16,169
Accrued warranty		4,514			5,382
Accrued employee liabilities		25,449			25,503
Liabilities from discounts and rebates		16,907			16,057
Other accrued liabilities		12,470			14,098
	$	65,808		$	77,209

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018			2017
Deferred tax assets:
Net operating losses		7,666			12,731
Intangible assets		42,853			—
Research and development credits		8,211			27,257
Depreciation		6,321			5,571
Valuation reserves and accrued liabilities		4,849			6,020
Foreign tax credit		376			—
Stock compensation		4,128			3,955
Inventory		1,069			2,062
Patents		150			163
Defined benefit obligation		1,796			1,977
Other credits		1,291			589
Unrealized foreign currency exchange loss		—			2,556
Other		2,499			36
		81,209			62,917
Valuation allowance		(9,977	)		(27,578	)
Deferred tax liabilities:
Intangible assets		—			(2,925	)
Unrealized foreign currency exchange gains		(554	)		—
Undistributed profits of subsidiary		(4,352	)		(6,450	)
Property and equipment		(2,896	)		(1,611	)
Other		(583	)		(548	)
		(8,385	)		(11,534	)
Net deferred tax asset	$	62,847		$	23,805

Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate

	Year Ended December 31,
	2018			2017			2016
Statutory Federal income tax rate		21.0	%		34.0	%		34.0	%
Increase (Decrease) resulting from:
U.S. Taxes on foreign income, net of taxes paid credit		—			—			1.3	%
Change in valuation allowance		(6.6	%)		10.6	%		5.3	%
Foreign, state and local tax, net of Federal benefit		1.8	%		0.8	%		1.1	%
Nondeductible expenses		3.4	%		2.4	%		2.4	%
Stock option compensation		—			(2.2	%)		—
Research and development credits		(2.5	%)		(4.6	%)		(0.7	%)
Effect of different tax rates of foreign jurisdictions		(6.6	%)		(20.8	%)		(15.0	%)
Undistributed profits of subsidiaries		1.2	%		5.8	%		7.9	%
Tax reform items		10.8	%		29.1	%		—
Other tax exempt income		—			—			—
Tax effects of intercompany transfers		0.8	%		(5.0	%)		(5.3	%)
Other		4.6	%		(1.0	%)		(0.3	%)
Effective rate		27.9	%		49.1	%		30.7	%

Net Operating Loss Carryforwards

The Company has Net Operating Loss (“NOL”) carryforwards as follows:

Jurisdiction	Amount as of December 31, 2018		Years of Expiration
U.S. Federal and state income tax	$	80,337		2019- 2037
Foreign	$	15,912		2019- 2038
Foreign	$	5,776		Indefinite

Earnings Before Income Taxes

The earnings before income taxes and our tax provision are comprised of the following:

	Year Ended December 31,
	2018		2017		2016
Income before income taxes:
Domestic	$	10,092	$	1,258	$	12,981
Foreign		48,027		67,997		97,582
Total income before income taxes	$	58,119	$	69,255	$	110,563

Provision for Income Taxes

	Year Ended December 31,
	2018			2017			2016
Current income tax expense (benefit):
Federal	$	340		$	4,140		$	9,215
State and local		(71	)		150			749
Foreign		9,224			24,672			32,844
Total current income tax expense	$	9,493		$	28,962		$	42,808
Deferred income tax expense (benefit):
Federal	$	(1,422	)	$	15,207		$	(10,597	)
State and local		20			2,308			(742	)
Foreign		8,129			(12,449	)		2,496
Total deferred income tax expense	$	6,727		$	5,066		$	(8,843	)
Total tax expense	$	16,220		$	34,028		$	33,965

Reconciliation of Unrecognized Tax Benefits

The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2018			2017			2016
Balance at beginning of year	$	4,522		$	4,486		$	4,443
Additions based on tax position related to current year		221			1,758			80
Additions based on tax positions related to prior year		458			4			366
Reductions from settlements and statute of limitation expiration		(2,179	)		(2,247	)		(299	)
Effect of foreign currency translation		(168	)		529			(104	)
Balance at end of year	$	2,854		$	4,522		$	4,486

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of Company's Debt

The following table summarizes the Company’s debt at December 31, 2018.

	Interest Rate			Principal Balance
Credit Agreement:
U.S. Revolving Note (U.S. Dollar Denominations)		4.02	%	$	122,000
U.S. Revolving Note (Euro Denominations)		1.50	%	$	5,727
DEG China Loan		4.25	%		913
DEG Vietnam Loan		5.21	%		11,250
Total debt				$	139,890
Current portion					(3,413	)
Long-term debt, less current maturities				$	136,477

The following table summarizes the Company’s debt at December 31, 2017.

	Interest Rate			Principal Balance
Credit Agreements:
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

Principal Maturities of Debt

The scheduled principal maturities of our debt as of December 31, 2018 is as follows:

Year	U.S. Revolving Note		DEG China Loan		DEG Vietnam Loan		Total
2019	$	—	$	913	$	2,500	$	3,413
2020		—		—		2,500		2,500
2021		127,727		—		2,500		130,227
2022		—		—		2,500		2,500
2023		—		—		1,250		1,250
Total	$	127,727	$	913	$	11,250	$	139,890

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Accounting for Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Stock Option Activity

The following table summarizes stock option activity during the three-year period ended December 31, 2018:

Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2015		1,530,845		$	27.46
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
Granted		—			—
Exercised		(615,358	)		24.01
Forfeited		(383,784	)		39.59
Outstanding at December 31, 2018		1,653,000			38.53		4.28	$	3,610
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
Exercisable at December 31, 2018		788,125		$	38.15		3.71	$	2,200

Fair Value of Option on Date of Grant

	2018	2017	2016
Expected volatility	NA	33%	37%
Weighted average expected volatility	NA	33%	37%
Expected lives	NA	3 yrs.	3 yrs.
Risk-free interest rate	NA	1.49-1.93%	0.90-1.07%
Expected dividend yield	none	none	none

Restricted Stock Activity

The following table summarizes restricted stock activity during the three-year period ended December 31, 2018:

Unvested Restricted Shares	Shares			Weighted- Average Grant-Date Fair Value
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
Granted		21,681			35.00
Vested		(130,684	)		38.62
Forfeited		(36,531	)		37.60
Outstanding at December 31, 2018		136,566		$	37.16

SARs Activity

The following table summarizes SARs activity during the three-year period ended December 31, 2018:

Stock Appreciation Rights	Units			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2015		1,049,850		$	34.61
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
Granted		—			—
Exercised		(204,250	)		26.35
Forfeited		—			—
Outstanding at December 31, 2018		988,100		$	40.61		3.57	$	2,064
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
Exercisable at December 31, 2018		683,600		$	41.21		3.09	$	1,728

RSU

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Restricted Stock Activity

The following table summarizes restricted stock unit activity during the year ended December 31 2018:

			Performance Based Awards
Unvested Restricted Stock Units	Time Vesting Shares		ROIC Target Shares		TSR Target Shares		Total
Outstanding at December 31, 2017		—		—		—		—
Granted		86,392		64,785		64,792		215,969
Vested		—		—		—		—
Forfeited		—		—		—		—
Outstanding at December 31, 2018		86,392		64,785		64,792		215,969

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018		2017		2016
Weighted average number of shares for calculation of basic EPS – Common Stock		35,920,782		36,720,749		36,448,138
Stock options, restricted stock awards and restricted stock units under equity incentive plans		256,362		92,970		152,665
Weighted average number of shares for calculation of diluted EPS – Common Stock		36,177,144		36,813,719		36,600,803

Common Stock Issuable upon Exercise of Certain Stock Options

	Year ended December 31,
	2018		2017		2016
Stock options outstanding for equity incentive plans		898,250		2,055,784		1,314,784

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Summary of Future Minimum Payments under Operating Leases and Service Agreements


2019	$	7,530
2020		5,016
2021		2,468
2022		2,152
2023		1,532
2024 or later		4,021
Total	$	22,719

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss)

	Automotive		Industrial			Reconciling Items			Consolidated Total
2018:
Product revenues	$	948,592	$	89,667		$	—		$	1,038,259
Depreciation and amortization		43,621		4,384			2,633			50,638
Operating income (loss)		152,051		(22,530	)		(56,733	)		72,788
2017:
Product revenues	$	879,457	$	106,226		$	—		$	985,683
Depreciation and amortization		36,801		5,399			2,772			44,972
Operating income (loss)		166,378		(14,751	)		(54,529	)		97,098
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

Segment Information About Reported Segment Product Revenues by Product Category

Automotive and Industrial segment product revenues by product category for each of the years ended December 31, 2018, 2017 and 2016 are as follows:

	2018		%			2017			%			2016		%
Climate Control Seat (CCS)	$	374,816		36	%	$	387,961			40	%	$	405,795		44	%
Seat Heaters		305,337		29	%		307,309			31	%		288,939		32	%
Steering Wheel Heaters		69,845		7	%		62,125			6	%		49,516		5	%
Automotive Cables		98,931		9	%		92,093			9	%		85,283		9	%
Battery Thermal Management (BTM) ⁽¹⁾		28,472		3	%		10,043			1	%		6,546		1	%
Etratech		54,267		5	%		8,398			1	%		—		0	%
Other Automotive		16,924		2	%		11,528	⁽²⁾		1	%		11,349		1	%
Subtotal Automotive		948,592		91	%		879,457			89	%		847,428		92	%
Remote Power Generation (GPT)		19,222		2	%		31,891			3	%		18,628		2	%
Cincinnati Sub-Zero Products (CSZ)		70,445		7	%		74,335			8	%		51,544		6	%
Subtotal Industrial		89,667		9	%		106,226			11	%		70,172		8	%
Total Company	$	1,038,259		100	%	$	985,683			100	%	$	917,600		100	%

(2)Includes $2.0 million rebate to customer during 2017.

Product Revenues Information by Geographic Area

Revenue (based on shipment destination) by geographic area is as follows:

	2018		%			2017		%			2016		%
United States	$	488,926		47	%	$	454,669		46	%	$	449,065		49	%
China		93,628		9	%		93,645		9	%		80,493		9	%
Germany		88,366		9	%		71,768		7	%		70,258		8	%
Japan		62,633		6	%		57,467		6	%		45,103		5	%
South Korea		58,717		6	%		64,715		7	%		75,396		8	%
Canada		44,500		4	%		46,368		5	%		37,954		4	%
Czech Republic		42,665		4	%		38,828		4	%		38,164		4	%
United Kingdom		37,533		4	%		36,033		4	%		28,540		3	%
Romania		22,435		2	%		18,050		2	%		11,907		1	%
Other		98,856		9	%		104,320		10	%		80,720		9	%
Total Non U.S.		549,333		53	%		531,014		54	%		468,535		51	%
	$	1,038,259		100	%	$	985,683		100	%	$	917,600		100	%

Percentage of Total Product Revenues Generated from Customers

	2018			2017			2016
Lear (domestic)		17	%		20	%		21	%
Adient (domestic)		16	%		18	%		21	%
Bosch (foreign)		8	%		8	%		8	%

Pension and Other Post Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018

Defined Benefit Plan Disclosure [Line Items]

Benefit Obligation, Amounts Recognized Company's Financial Statements and Principal Assumptions

	2018			2017
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	4,218		$	3,419
Service cost		—			101
Interest cost		114			111
Actuarial (gain) loss		(158	)		78
Prior service cost		(342	)		509
Benefit obligation at end of year	$	3,832		$	4,218

Components of Net Periodic Pension Benefit Cost

Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2018, 2017 and 2016 are as follows:

	2018		2017		2016
Service cost	$	—	$	101	$	387
Interest cost		114		111		98
Amortization of prior service cost		—		509		—
Net periodic benefit cost	$	114	$	721	$	485

Pretax Amounts Recognized in Other Comprehensive (Loss) Income

Pretax amounts recognized in other comprehensive income for the years ended December 31, 2018, 2017 and 2016 are as follows


	2018			2017			2016
Actuarial Losses/(gains)	$	(158	)	$	78		$	36
Amortization of actuarial losses		—			—			—
Establish prior service cost		—			509			—
Amortization prior service cost		—			(509	)		—
	$	(158	)	$	78		$	36

Fair Value of Plan Assets

The following table sets forth the fair value of the plan assets for the periods ending December 31, 2018 and 2017:

	2018			2017
Change in plan assets:
Plan assets at beginning of year	$	3,891		$	3,326
Actual return on plan assets		130			121
Contributions		292			272
Paid pension distributions		(292	)		(272	)
Actuarial losses		(30	)		(28	)
Exchange rate impact		(183	)		472
Plan assets at end of year	$	3,808		$	3,891

Actuarial Assumptions Used to Determine Benefit Obligation and Net Periodic Service Cost

	2018			2017			2016
Discount rate		2.04	%		1.93	%		1.69	%
Expected long term rate of return on plan assets		3.40	%		3.40	%		3.40	%

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
2019	$	287
2020		285
2021		283
2022		279
2023		290
2024 - 2028		1,344
Total	$	2,768

Gentherm GmbH

Defined Benefit Plan Disclosure [Line Items]

Benefit Obligation, Amounts Recognized Company's Financial Statements and Principal Assumptions

	2018			2017
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	7,927		$	7,326
Interest cost		147			130
Paid pension distributions		(292	)		(272	)
Actuarial (gains)/losses		114			(257	)
Exchange rate impact		(367	)		1,000
Benefit obligation at end of year	$	7,529		$	7,927

Components of Net Periodic Pension Benefit Cost

Components of the Plan’s net periodic pension benefit cost for the years ended December 31, 2018, 2017 and 2016 are as follows:

	2018			2017			2016
Interest cost	$	147		$	130		$	154
Return on plan assets		(130	)		(121	)		(125	)
Amortization of prior service cost		—			—			—
Amortization of actuarial loss (gains)		73			78			48
Net periodic benefit cost	$	90		$	87		$	77

Pretax Amounts Recognized in Other Comprehensive (Loss) Income

Pretax amounts recognized in other comprehensive (loss) income for the years ended December 31, 2018, 2017 and 2016 are as follows:


	2018			2017			2016
Actuarial (gains)/losses	$	143		$	(229	)	$	718
Amortization of actuarial losses		(73	)		(78	)		(48	)
Amortization of prior service cost		—			—			—
	$	70		$	(307	)	$	670

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Information related to the recurring fair value measurement of derivative financial instruments in our consolidated balance sheet as of December 31, 2018 is as follows:

Asset Derivatives

Liability Derivatives

Net Asset/
(Liabilities)

Hedge

Designation

Fair Value

Hierarchy

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Foreign currency derivatives

Cash flow hedge

Level 2

Current assets

Current liabilities

—

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/
(Liabilities)

Hedge

Designation

Fair Value

Hierarchy

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

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

Information related to the effect of derivative instrument`s on our consolidated statements of income is as follows:


	Location	Year Ended December 31, 2018			Year Ended December 31, 2017
Foreign currency derivatives	Product Revenues	$	—		$	(3	)
	Cost of sales		(444	)		2,209
	Selling, general and administrative		75			(216	)
	Other comprehensive income		1,096			302
	Foreign currency gain		50			(112	)
Total foreign currency derivatives		$	777		$	2,180
Commodity derivatives	Cost of sales	$	145		$	202
	Other comprehensive (loss) income	$	(218	)	$	54
Total commodity derivatives		$	(73	)	$	256

New Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2018

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Summary of Financial Statement Affected by Application of ASU 2014-09 and Related Amendments

The amount by which each financial statement line item was affected by application of ASU 2014-09 and related amendments during 2018 is as follows:

	Revenue Based on Previously Effective Guidance		New Revenue Standard Adjustment		Revenue Based on New Revenue Standard
Year Ended December 31, 2018
Product revenues	$	1,035,773	$	2,486	$	1,038,259
Income tax expense		16,727		507		16,220
Net income		39,920		1,979		41,899
Basic earnings per share		1.11		0.06		1.17
Diluted earnings per share		1.10		0.06		1.16

	Revenue Based on Previously Effective Guidance		New Revenue Standard Adjustment			Revenue Based on New Revenue Standard
Balance Sheet December 31, 2018
Accounts receivable, net of allowance for doubtful accounts	$	166,858	$	—		$	166,858
Accrued liabilities^(a)	$	64,211	$	1,597		$	65,808
Unearned revenue^(a)	$	—	$	1,597		$	1,597
Deferred income taxes, net	$	62,522	$	325		$	62,847
Accumulated earnings	$	365,237	$	(1,272	)	$	363,965

Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss)

	Defined Benefit Pension Plans			Foreign Currency Translation Adjustments			Commodity Hedge Derivatives				Foreign Currency Hedge Derivatives				Total
Balance at December 31, 2017	$	(2,366	)	$	(17,555	)	$	277			$	(800	)		$	(20,444	)
Cumulative effect of accounting change due to adoption of ASU 2018-02		(49	)		—			9				—				(40	)
Other comprehensive income (loss) before reclassifications		18			(19,212	)		—				1,342				(17,852	)
Income tax effect of other comprehensive income (loss) before reclassifications		(15	)		(390	)		—				(337	)			(742	)
Amounts reclassified from accumulated other comprehensive income (loss) into net income		73			—			(218	)	^a		(246	)	^a		(391	)
Income taxes reclassified into net income		—			—			(68	)			37				(31	)
Net current period other comprehensive income (loss)		27			(19,602	)		(277	)			796				(19,056	)
Balance at December 31, 2018	$	(2,339	)		(37,157	)		—				(4	)			(39,500	)

(a)	The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 12 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, 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	)	^a		(1,822	)	^a		(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 12 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income.

Note 14 – 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, 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 12 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income.

Assets and Liabilities Held for Sale (Tables)

12 Months Ended

Dec. 31, 2018

Discontinued Operations And Disposal Groups [Abstract]

Summary of Assets and Liabilities of Disposal Group Classified as Held for Sale

The assets and liabilities of the disposal group classified as held for sale as of December 31, 2018 are as follows:

Accounts receivable, less allowance of $96	$	10,868
Inventory, net		13,925
Prepaid expenses and other assets		263
Property and equipment, net		29,459
Goodwill		6,844
Other intangible assets, net		6,326
Deferred income tax assets		4,204
Other non-current assets		—
Impairment loss		(2,190	)
Total assets held for sale	$	69,699

Accounts payable	$	2,614
Accrued liabilities		10,448
Total liabilities held for sale	$	13,062

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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+ Details

Unearned Revenue (Tables)

12 Months Ended

Dec. 31, 2018

Revenue Recognition And Deferred Revenue [Abstract]

Schedule of Unearned Revenue by Segment

Unearned revenue by segment was as follows:

	December 31, 2018		December 31, 2017
Automotive	$	1,597	$	—
Industrial		—		4,889
Total	$	1,597	$	4,889

Schedule of Changes in Unearned Revenue

Changes in unearned revenue were as follows:

Year Ended December 31, 2018
Balance, beginning of period	$	4,889
Additions to unearned revenue		21,774
Reclassified to revenue		(19,677	)
Reclassified to liabilities held for sale		(5,351	)
Currency impacts		(38	)
Balance, end of period	$	1,597

Etratech Acquisition (Tables) - Etratech Inc.

12 Months Ended

Dec. 31, 2018

Summary of Preliminary Allocation

The purchase price allocation was finalized during the first quarter of 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		14,881
Assumed liabilities		(9,642	)

Net assets acquired		65,009
Cash acquired		670

Purchase price	$	65,679

Supplemental Pro Forma Information

	Twelve Months Ended December 31,
	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 Amortization		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 December 31, 2017		Twelve Months Ended December 31, 2017
Product revenues	$	358	$	358
Research and development expenses		277		277

Estimate of Total Intangible Asset Amortization

Amortization expense for the prospective five years is 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
Leasehold 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

The Company - Additional Information (Detail)		3 Months Ended		12 Months Ended
The Company - Additional Information (Detail)	Feb. 01, 2019 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) Facility Segment	Dec. 31, 2016 USD ($)
Nature Of Company [Line Items]
Restructuring expenses				$ 14,772,000
Amount paid withholding taxes in Canadian Revenue Agency					$ 7,600,000
Income tax expense related to intercompany dividends			$ 2,500,000		2,500,000
Accrued one-time income tax payment			$ 32,600,000		$ 32,600,000
Payments for reorganization				$ 0
Number of reportable segments \| Segment				2
Automotive Segments
Nature Of Company [Line Items]
Restructuring expenses				$ 9,164,000
Industrial Segments
Nature Of Company [Line Items]
Restructuring expenses				5,608,000
One-Time Employee Termination Benefit Costs
Nature Of Company [Line Items]
Restructuring expenses				8,449,000
Contract Termination Costs
Nature Of Company [Line Items]
Restructuring expenses				660,000
Asset Disposal Costs
Nature Of Company [Line Items]
Restructuring expenses				2,507,000
Fit-for-Growth \| Consultant Costs
Nature Of Company [Line Items]
Restructuring expenses				2,852,000
Fit-for-Growth \| One-Time Employee Termination Benefit Costs
Nature Of Company [Line Items]
Restructuring expenses				6,598,000
Fit-for-Growth \| Contract Termination Costs
Nature Of Company [Line Items]
Restructuring expenses				17,000
Advanced Research and Development Rationalization and Site Consolidation \| One-Time Employee Termination Benefit Costs
Nature Of Company [Line Items]
Restructuring expenses				1,094,000
Advanced Research and Development Rationalization and Site Consolidation \| Contract Termination Costs
Nature Of Company [Line Items]
Restructuring expenses				643,000
Advanced Research and Development Rationalization and Site Consolidation \| Loss on the Sale of Battery Management Systems
Nature Of Company [Line Items]
Restructuring expenses				$ 1,107,000
Advanced Research and Development Rationalization and Site Consolidation \| Facility Closing
Nature Of Company [Line Items]
Number of leased facilities vacated \| Facility				2
Advanced Research and Development Rationalization and Site Consolidation \| Asset Disposal Costs
Nature Of Company [Line Items]
Restructuring expenses				$ 1,400,000
GPT and CSZ-IC \| Consultant Costs
Nature Of Company [Line Items]
Restructuring expenses				304,000
GPT and CSZ-IC \| One-Time Employee Termination Benefit Costs
Nature Of Company [Line Items]
Restructuring expenses				$ 757,000
Subsequent Event \| Fit-for-Growth \| Consultant Costs
Nature Of Company [Line Items]
Restructuring expenses		$ 600,000
Subsequent Event \| CSZ-IC
Nature Of Company [Line Items]
Total cash proceeds	$ 47,500,000

The Company - Summary of Reconciliation of Beginning and Ending Restructuring Liability (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Restructuring Cost And Reserve [Line Items]
Balance, beginning of period
Additions, charged to costs	$ 14,772
Payments	(12,225)
Balance, end of period	2,547
One-Time Employee Termination Benefit Costs
Restructuring Cost And Reserve [Line Items]
Balance, beginning of period
Additions, charged to costs	8,449
Payments	(6,370)
Balance, end of period	2,079
Contract Termination Costs
Restructuring Cost And Reserve [Line Items]
Balance, beginning of period
Additions, charged to costs	660
Payments	(271)
Balance, end of period	389
Consulting Costs
Restructuring Cost And Reserve [Line Items]
Balance, beginning of period
Additions, charged to costs	3,156
Payments	(3,077)
Balance, end of period	79
Asset Disposal Costs
Restructuring Cost And Reserve [Line Items]
Additions, charged to costs	2,507
Payments	$ (2,507)

Summary of Significant Accounting Policies and Basis of Presentation (Detail)

12 Months Ended

Feb. 01, 2019

USD ($)

Dec. 31, 2018

USD ($)

Customer

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Basis Of Presentation And Accounting Policies [Line Items]

Accounts receivable, net of allowance for doubtful accounts

$ 166,858,000

$ 185,058,000

Aggregate amount of transaction price allocated to material rights that remain unsatisfied

$ 1,597,000

Revenue expected to be recognized in 2019

64.00%

Revenue expected to be recognized in 2020

19.00%

Revenue expected to be recognized in 2021

10.00%

Revenue expected to be recognized in 2022

4.00%

Revenue expected to be recognized in 2023

3.00%

$ 1,597,000

^[1]

4,889,000

$ 1,038,259,000

$ 985,683,000

$ 917,600,000

Cash and cash equivalents

100.00%

$ 39,620,000

$ 103,172,000

$ 177,187,000

$ 144,479,000

Depreciation expense

36,270,000

32,224,000

24,873,000

Impairment loss on asset held for sale

2,190,000

Impairment loss on goodwill

6,151,000

Impairment loss on other intangible assets

3,135,000

Share based compensation expense

12,177,000

12,727,000

8,147,000

Related deferred tax benefit

$ 4,128,000

3,955,000

Subsequent Event | CSZ-IC and and CSZ Headquarters Facility

Basis Of Presentation And Accounting Policies [Line Items]

Total cash proceeds

$ 47,500,000

Performance Based Restricted Stock Units

Basis Of Presentation And Accounting Policies [Line Items]

Awards vesting period

3 years

Stock options outstanding under the 1993,1997, 2006 and 2011 Stock Option Plans

Basis Of Presentation And Accounting Policies [Line Items]

Related deferred tax benefit

$ 2,434,000

4,339,000

2,891,000

Production Tooling

Basis Of Presentation And Accounting Policies [Line Items]

Reimbursable tooling capitalized within prepaid expenses and other current assets

6,628,000

6,994,000

Patents

Basis Of Presentation And Accounting Policies [Line Items]

Amortization of intangibles

14,043,000

12,425,000

$ 12,675,000

Foreign Jurisdictions

Basis Of Presentation And Accounting Policies [Line Items]

Cash and cash equivalents

$ 33,955,000

$ 88,440,000

Sales Revenue | Customer Concentration Risk

Basis Of Presentation And Accounting Policies [Line Items]

Number of largest customer | Customer

Lear | Sales Revenue | Customer Concentration Risk

Basis Of Presentation And Accounting Policies [Line Items]

$ 181,000,000

Lear | Accounts receivable | Concentration of Credit Risk

17.00%

20.00%

21.00%

Basis Of Presentation And Accounting Policies [Line Items]

Adient | Sales Revenue | Customer Concentration Risk

21.00%

24.00%

Basis Of Presentation And Accounting Policies [Line Items]

$ 166,900,000

Adient | Accounts receivable | Concentration of Credit Risk

16.00%

18.00%

21.00%

Basis Of Presentation And Accounting Policies [Line Items]

Bosch | Sales Revenue | Customer Concentration Risk

18.00%

20.00%

Basis Of Presentation And Accounting Policies [Line Items]

$ 79,900,000

Magna | Accounts receivable | Concentration of Credit Risk

8.00%

Basis Of Presentation And Accounting Policies [Line Items]

Faurecia | Accounts receivable | Concentration of Credit Risk

9.00%

Basis Of Presentation And Accounting Policies [Line Items]

Basis Of Presentation And Accounting Policies [Line Items]

7.00%

Minimum

Payment terms of contracts

30 days

Minimum | Production Tooling

Basis Of Presentation And Accounting Policies [Line Items]

Property plant and equipment, estimated useful life

2 years

Maximum

Basis Of Presentation And Accounting Policies [Line Items]

Payment terms of contracts

120 days

Original maturities of highly liquid investments

90 days

Maximum | Production Tooling

Basis Of Presentation And Accounting Policies [Line Items]

Property plant and equipment, estimated useful life

7 years

Industrial Segments

Basis Of Presentation And Accounting Policies [Line Items]

$ 5,296,000

$ 4,889,000

$ 89,667,000

$ 106,226,000

$ 70,172,000

Raw materials, net of reserve

9.00%

11.00%

8.00%

[1]	During 2018, unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale. As of December 31, 2018, 5,351 in unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale.

Summary of Significant Accounting Policies and Basis of Presentation (Detail 1)	Dec. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01
Basis Of Presentation And Accounting Policies [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01
Basis Of Presentation And Accounting Policies [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Basis Of Presentation And Accounting Policies [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Basis Of Presentation And Accounting Policies [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Basis Of Presentation And Accounting Policies [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year

Summary of Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Balance at beginning of year	$ 973	$ 1,391
Additions charged to costs	1,005	1,239
Recoveries recognized in costs	(1,006)	(1,708)
Reclassified to assets held for sale	(96)
Adjustment due to currency translation	(25)	51
Balance at end of year	$ 851	$ 973

Reconciliation of Changes in Inventory Reserve (Detail) - Inventory Valuation Reserve - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at beginning of year	$ 7,887	$ 4,790	$ 4,308
Expense	2,712	3,521	876
Inventory write off	(3,282)	(726)	(326)
Reclassified to assets held for sale	(899)
Adjustment due to currency translation	(148)	302
Balance at end of year	$ 6,270	$ 7,887	$ 4,790

Estimated Useful Lives of Property and Equipment (Detail)	12 Months Ended
	Dec. 31, 2018
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	2 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

Fair Value and Corresponding Useful Lives for Acquired Intangibles Assets (Detail)	12 Months Ended
	Dec. 31, 2018
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	2 years
Technology \| Maximum
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets useful life	10 years
Product Development Costs \| Minimum
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets useful life	5 years
Product Development Costs \| Maximum
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets useful life	10 years

Estimate of Total Intangible Asset Amortization (Detail) - Patents $ in Thousands	Dec. 31, 2018 USD ($)
Amortization Expense [Line Items]
2019	$ 10,464
2020	8,710
2021	7,887
2022	7,853
2023	7,853
Thereafter	$ 13,619

Roll Forward of Goodwill from Acquisition (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill Roll Forward
Goodwill, Beginning balance	$ 69,685,000	$ 51,735,000
Goodwill arising from the acquisition of Etratech		14,881,000
Reclassification to assets held for sale	(6,844,000)
Impairment of goodwill	(6,151,000)	0	$ 0
Exchange rate impact	(1,379,000)	3,069,000
Goodwill, Ending balance	$ 55,311,000	$ 69,685,000	$ 51,735,000

Reconciliation of Changes in Accrued Warranty Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Balance at beginning of year	$ 5,382	$ 5,443
Warranty claims paid	(905)	(979)
Warranty expense for products shipped during the current period	2,678	3,162
Adjustments to warranty estimates from prior periods	(608)	(2,655)
Reclassification to liabilities held for sale	(1,884)
Adjustment due to currency translation	(149)	411
Balance at end of year	$ 4,514	$ 5,382

Details of Certain Financial Statement Components (Detail) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Inventory:

$ 61,679

$ 64,175

Work in process, net of reserve

5,939

16,139

Finished goods, net of reserve

44,917

41,095

Total inventory

112,535

121,409

Property and equipment:

Buildings, plant and equipment

213,257

213,329

Automobiles

1,180

1,281

Production tooling

15,526

16,540

Leasehold improvements

10,320

15,263

Computer equipment and software

26,381

27,880

Construction in progress

3,421

9,405

Total property, plant and equipment, gross

270,085

283,698

Less: Accumulated depreciation

(98,705)

(83,404)

Total property, plant and equipment, net

171,380

200,294

Total other intangible assets Net

137,583

160,908

Accumulated amortization

(81,198)

(77,622)

56,385

83,286

Accrued liabilities:

Tax accruals

6,468

16,169

Accrued warranty

4,514

5,382

$ 5,443

Accrued employee liabilities

25,449

25,503

Liabilities from discounts and rebates

16,907

16,057

Other accrued liabilities

12,470

14,098

Total accrued liabilities

65,808

^[1]

77,209

Customer relationships

87,316

101,213

Technology

Product development costs

39,167

47,641

Revenue Initial Application Period Cumulative Effect Transition [Line Items]

$ 11,100

$ 12,054

[1]	During 2018, unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale. As of December 31, 2018, 5,351 in unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale.

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense		$ 19,997	$ 20,153
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax balances, income tax expense		4,950
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense related to onetime transition tax liability of foreign subsidiaries		$ 24,625
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		21.00%	34.00%	34.00%
Income tax holiday, amount of corporate income tax savings realized		$ 16,220	$ 34,028	$ 33,965
Total unrecognized tax benefits		$ 2,854	4,522	$ 4,486	$ 4,443
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		2,191
Net operating loss expired		$ 17,158
U.S. State \| Earliest Tax Year
Income Taxes [Line Items]
Operating loss carryforward, year of expiration		2019
U.S. State \| Latest Tax Year
Income Taxes [Line Items]
Operating loss carryforward, year of expiration		2037
Non-U.S. Subsidiaries
Income Taxes [Line Items]
Operating loss carryforward, amount		$ 21,688
Operating loss valuation allowance		5,746
Foreign Jurisdictions
Income Taxes [Line Items]
Operating loss carryforward, amount		$ 15,912
Foreign Jurisdictions \| Earliest Tax Year
Income Taxes [Line Items]
Operating loss carryforward, year of expiration		2019
Foreign Jurisdictions \| Latest Tax Year
Income Taxes [Line Items]
Operating loss carryforward, year of expiration		2038
Indefinite
Income Taxes [Line Items]
Operating loss carryforward, amount		$ 5,776
Net operating loss carryforward, year of expiration		no expiration date

Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Net operating losses	$ 7,666	$ 12,731
Intangible assets	42,853
Research and development credits	8,211	27,257
Depreciation	6,321	5,571
Valuation reserves and accrued liabilities	4,849	6,020
Foreign tax credit	376
Stock compensation	4,128	3,955
Inventory	1,069	2,062
Patents	150	163
Defined benefit obligation	1,796	1,977
Other credits	1,291	589
Unrealized foreign currency exchange loss		2,556
Other	2,499	36
Deferred tax assets, gross	81,209	62,917
Valuation allowance	(9,977)	(27,578)
Deferred tax liabilities:
Intangible assets		(2,925)
Unrealized foreign currency exchange gains	(554)
Undistributed profits of subsidiary	(4,352)	(6,450)
Property and equipment	(2,896)	(1,611)
Other	(583)	(548)
Deferred tax liabilities, gross	(8,385)	(11,534)
Net deferred tax asset	$ 62,847	$ 23,805

Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory Federal income tax rate	21.00%	34.00%	34.00%
Increase (Decrease) resulting from:
U.S. Taxes on foreign income, net of taxes paid credit			1.30%
Change in valuation allowance	(6.60%)	10.60%	5.30%
Foreign, state and local tax, net of Federal benefit	1.80%	0.80%	1.10%
Nondeductible expenses	3.40%	2.40%	2.40%
Stock option compensation		(2.20%)
Research and development credits	(2.50%)	(4.60%)	(0.70%)
Effect of different tax rates of foreign jurisdictions	(6.60%)	(20.80%)	(15.00%)
Undistributed profits of subsidiaries	1.20%	5.80%	7.90%
Tax reform items	10.80%	29.10%
Tax effects of intercompany transfers	0.80%	(5.00%)	(5.30%)
Other	4.60%	(1.00%)	(0.30%)
Effective rate	27.90%	49.10%	30.70%

Net Operating Loss Carryforwards (Detail) $ in Thousands	12 Months Ended
Net Operating Loss Carryforwards (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
U.S. Federal and state income tax
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 80,337
U.S. Federal and state income tax \| Minimum
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, year of expiration	2019
U.S. Federal and state income tax \| Maximum
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, year of expiration	2037
Foreign
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 15,912
Foreign \| Minimum
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, year of expiration	2019
Foreign \| Maximum
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, year of expiration	2038
Indefinite
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 5,776
Operating loss carryforward, year of expiration	Indefinite

Earnings Before Income Taxes and Tax Provisions - (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income before income taxes:
Domestic	$ 10,092	$ 1,258	$ 12,981
Foreign	48,027	67,997	97,582
Earnings before income tax	$ 58,119	$ 69,255	$ 110,563

Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current income tax expense (benefit):
Federal	$ 340	$ 4,140	$ 9,215
State and local	(71)	150	749
Foreign	9,224	24,672	32,844
Total current income tax expense	9,493	28,962	42,808
Deferred income tax expense (benefit):
Federal	(1,422)	15,207	(10,597)
State and local	20	2,308	(742)
Foreign	8,129	(12,449)	2,496
Total deferred income tax expense	6,727	5,066	(8,843)
Total tax expense	$ 16,220	$ 34,028	$ 33,965

Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 4,522	$ 4,486	$ 4,443
Additions based on tax position related to current year	221	1,758	80
Additions based on tax positions related to prior year	458	4	366
Reductions from settlements and statute of limitation expiration	(2,179)	(2,247)	(299)
Effect of foreign currency translation	(168)	529	(104)
Balance at end of year	$ 2,854	$ 4,522	$ 4,486

Debt - Additional Information (Detail)	12 Months Ended
Debt - Additional Information (Detail)	Dec. 31, 2018 USD ($)
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	2.40%
London Interbank Offered Rate
Debt Instrument [Line Items]
Interest rate	2.50%
Revolving Note (U.S. Dollar)
Debt Instrument [Line Items]
Undrawn borrowing capacity	$ 221,871,000
United State Bank Of America Credit Facility
Debt Instrument [Line Items]
Interest rate	5.50%
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 (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total debt	$ 139,890	$ 144,669
Current portion	(3,413)	(3,460)
Long-term debt, less current maturities	$ 136,477	$ 141,209
U.S. Revolving Note (U.S. Dollar Denominations)
Debt Instrument [Line Items]
Interest Rate	4.02%	3.07%
Total debt	$ 122,000	$ 129,000
U.S. Revolving Note (Euro Denominations)
Debt Instrument [Line Items]
Interest Rate	1.50%
Total debt	$ 5,727
DEG China Loan
Debt Instrument [Line Items]
Interest Rate	4.25%	4.25%
Total debt	$ 913	$ 1,919
DEG Vietnam Loan
Debt Instrument [Line Items]
Interest Rate	5.21%	5.21%
Total debt	$ 11,250	$ 13,750

Principal Maturities of Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt maturing in 2019	$ 3,413
Debt maturing in 2020	2,500
Debt maturing in 2021	130,227
Debt maturing in 2022	2,500
Debt maturing in 2023	1,250
Total debt	139,890	$ 144,669
US and Euro Denominated Revolving Note
Debt Instrument [Line Items]
Debt maturing in 2021	127,727
Total debt	127,727
DEG China Loan
Debt Instrument [Line Items]
Debt maturing in 2019	913
Total debt	913	1,919
DEG Vietnam Loan
Debt Instrument [Line Items]
Debt maturing in 2019	2,500
Debt maturing in 2020	2,500
Debt maturing in 2021	2,500
Debt maturing in 2022	2,500
Debt maturing in 2023	1,250
Total debt	$ 11,250	$ 13,750

Accounting for Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	May 19, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2013	Dec. 31, 2015	May 16, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option grant expiration period					10 years
Performance based restricted stock units outstanding		136,566	282,100	210,481		179,026
Shareholder Return Award Performance Measurement Period		3 years
Unrecognized compensation cost related to nonvested options and restricted options		$ 15,932	$ 18,593
Unrecognized share-based compensation cost recognition period		2 years
Share based compensation expense		$ 12,177	$ 12,727	$ 8,147
Granted, Shares		0	808,500	862,000
Weighted average grant date fair value of options granted			$ 9.11	$ 10.74
Total intrinsic value of options exercised		$ 5,061	$ 4,715	$ 2,456
Total fair value of restricted shares vested		$ 4,599	$ 6,006	$ 3,865
Granted, Shares		21,681	237,542	141,784
Performance Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock units outstanding		129,577
These awards vesting period		3 years
Stock option achieving minimum threshold		50.00%
Stock option achieving maximum threshold		200.00%
RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock units outstanding		215,969
Granted, Shares		215,969	0
Stock Appreciation Rights (SARs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares			235,000	244,000
Total intrinsic value of options exercised		$ 3,532	$ 1,495	$ 261
ROIC \| Performance Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock payment condition		one-half
TSR \| Performance Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock payment condition		one-half
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		1,567,594
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 Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Options Outstanding, beginning balance, Shares	2,652,142	2,103,470	1,530,845
Granted, Shares	0	808,500	862,000
Exercised, Shares	(615,358)	(202,328)	(112,875)
Forfeited, Shares	(383,784)	(57,500)	(176,500)
Stock Options Outstanding, ending balance, Shares	1,653,000	2,652,142	2,103,470
Stock Options Exercisable, Shares	788,125	984,374	675,152
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price	$ 35.34	$ 32.72	$ 27.46
Granted, Weighted-Average Exercise Price		37.23	40.87
Exercised, Weighted-Average Exercise Price	24.01	13.62	13.24
Forfeited, Weighted-Average Exercise Price	39.59	42.54	39.32
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price	38.53	35.34	32.72
Exercisable, Weighted-Average Exercise Price	$ 38.15	$ 29.84	$ 21.40
Stock Options Outstanding, Weighted-Average Remaining Contractual Term	4 years 3 months 10 days	4 years 9 months 3 days	4 years 10 months 9 days
Exercisable, Weighted-Average Remaining Contractual Term	3 years 8 months 15 days	3 years 5 months 8 days	3 years 5 months 12 days
Stock Options Outstanding, Aggregate Intrinsic Value	$ 3,610	$ 6,964	$ 12,265
Exercisable, Aggregate Intrinsic Value	$ 2,200	$ 6,534	$ 9,646

Fair Value of Option on date of grant (Detail)	12 Months Ended
Fair Value of Option on date of grant (Detail)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement Of Stockholders Equity [Abstract]
Expected volatility		33.00%	37.00%
Weighted average expected volatility		33.00%	37.00%
Expected lives		3 years	3 years
Risk-free interest rate		1.49%	0.90%
Risk-free interest rate		1.93%	1.07%
Expected dividend yield	0.00%	0.00%	0.00%

Summarizes Restricted Stock Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding at beginning of period, Shares	282,100	210,481	179,026
Granted, Shares	21,681	237,542	141,784
Vested, Shares	(130,684)	(165,923)	(100,330)
Forfeited, Shares	(36,531)		(9,999)
Outstanding at end of period, Shares	136,566	282,100	210,481
Outstanding at beginning of period, Weighted-Average Grant Date Fair Value	$ 38.06	$ 39.02	$ 34.92
Granted, Weighted-Average Grant Date Fair Value	35.00	37.30	39.73
Vested, Weighted-Average Grant Date Fair Value	38.62	37.99	32.47
Forfeited, Weighted-Average Grant Date Fair Value	37.60		40.99
Outstanding at end of period, Weighted-Average Grant Date Fair Value	$ 37.16	$ 38.06	$ 39.02

Summarizes Restricted Stock Unit Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding at beginning of period, Shares	282,100	210,481	179,026
Granted, Shares	21,681	237,542	141,784
Vested, Shares	(130,684)	(165,923)	(100,330)
Forfeited, Shares	(36,531)		(9,999)
Outstanding at end of period, Shares	136,566	282,100	210,481
RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares	215,969	0
Outstanding at end of period, Shares	215,969
RSU \| Time Vesting Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares	86,392
Outstanding at end of period, Shares	86,392
RSU \| ROIC Target Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares	64,785
Outstanding at end of period, Shares	64,785
RSU \| TSR Target Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares	64,792
Outstanding at end of period, Shares	64,792

Summarizes Stock Appreciation Rights (SARs) Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options Outstanding, beginning balance, Shares	2,652,142	2,103,470	1,530,845
Granted, Shares	0	808,500	862,000
Exercised, Shares	(615,358)	(202,328)	(112,875)
Forfeited, Shares	(383,784)	(57,500)	(176,500)
Stock Options Outstanding, ending balance, Shares	1,653,000	2,652,142	2,103,470
Exercisable, Ending Balance	788,125	984,374	675,152
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price	$ 35.34	$ 32.72	$ 27.46
Granted, Weighted-Average Exercise Price		37.23	40.87
Exercised, Weighted-Average Exercise Price	24.01	13.62	13.24
Forfeited, Weighted-Average Exercise Price	39.59	42.54	39.32
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price	38.53	35.34	32.72
Exercisable, Weighted Average Exercise Price	$ 38.15	$ 29.84	$ 21.40
Stock Options Outstanding, Weighted-Average Remaining Contractual Term	4 years 3 months 10 days	4 years 9 months 3 days	4 years 10 months 9 days
Exercisable, Weighted-Average Remaining Contractual Term	3 years 8 months 15 days	3 years 5 months 8 days	3 years 5 months 12 days
Outstanding, Aggregate Intrinsic Value	$ 3,610	$ 6,964	$ 12,265
Exercisable, Aggregate Intrinsic Value	$ 2,200	$ 6,534	$ 9,646
Stock Appreciation Rights (SARs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options Outstanding, beginning balance, Shares	1,192,350	1,244,600	1,049,850
Granted, Shares		235,000	244,000
Exercised, Shares	(204,250)	(94,250)	(18,750)
Forfeited, Shares		(193,000)	(30,500)
Stock Options Outstanding, ending balance, Shares	988,100	1,192,350	1,244,600
Exercisable, Ending Balance	683,600	613,808	424,992
Stock Options Outstanding, beginning balance, Weighted-Average Exercise Price	$ 38.17	$ 36.11	$ 34.61
Granted, Weighted-Average Exercise Price		38.05	40.64
Exercised, Weighted-Average Exercise Price	26.35	22.21	24.28
Forfeited, Weighted-Average Exercise Price		32.53	28.23
Stock Options Outstanding, ending balance, Weighted-Average Exercise Price	40.61	38.17	36.11
Exercisable, Weighted Average Exercise Price	$ 41.21	$ 37.68	$ 34.49
Stock Options Outstanding, Weighted-Average Remaining Contractual Term	3 years 6 months 25 days	4 years 4 months 9 days	4 years 9 months 18 days
Exercisable, Weighted-Average Remaining Contractual Term	3 years 1 month 2 days	3 years 8 months 19 days	4 years 4 months 20 days
Outstanding, Aggregate Intrinsic Value	$ 2,064	$ 2,278	$ 3,511
Exercisable, Aggregate Intrinsic Value	$ 1,728	$ 1,904	$ 2,315

Earnings Per Share (Detail) - shares	12 Months Ended
Earnings Per Share (Detail) - shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted average number of shares for calculation of basic EPS – Common Stock	35,920,782	36,720,749	36,448,138
Stock options, restricted stock awards and restricted stock units under equity incentive plans	256,362	92,970	152,665
Weighted average number of shares for calculation of diluted EPS – Common Stock	36,177,144	36,813,719	36,600,803
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	898,250	2,055,784	1,314,784

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
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	$ 8,366,000	$ 8,424,000	$ 7,479,000

Summary of Future Minimum Payments under Operating Leases and Service Agreements (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2019	$ 7,530
2020	5,016
2021	2,468
2022	2,152
2023	1,532
2024 or later	4,021
Total	$ 22,719

Segment Reporting - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Customer	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Nov. 01, 2017 USD ($)
Segment Reporting Information [Line Items]
Goodwill	$ 55,311	$ 69,685	$ 51,735
Assets held for sale	69,699
Reimbursed research and development costs	18,763	12,037	6,660
Selling, general and administrative costs	$ 127,152	130,522	115,252
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	$ 37,533	38,912
Industrial Segments
Segment Reporting Information [Line Items]
Goodwill	17,778	30,773
Assets held for sale	6,844
Reimbursed research and development costs	1,117	2,116	641
Selling, general and administrative costs	42,857	43,457	39,059
Acquisition transaction expenses	$ 0	$ 789	$ 743
Etratech Inc.
Segment Reporting Information [Line Items]
Date of acquisition	Nov. 01, 2017
Goodwill				$ 14,881

Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Product revenues	$ 1,038,259	$ 985,683	$ 917,600
Type of Revenue [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Depreciation and amortization	$ 50,638	$ 44,972	$ 37,764
Operating income (loss)	72,788	97,098	106,119
Automotive Segments
Segment Reporting Information [Line Items]
Product revenues	948,592	879,457	847,428
Industrial Segments
Segment Reporting Information [Line Items]
Product revenues	89,667	106,226	70,172
Operating Segments \| Automotive Segments
Segment Reporting Information [Line Items]
Product revenues	$ 948,592	$ 879,457	$ 847,428
Type of Revenue [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Depreciation and amortization	$ 43,621	$ 36,801	$ 31,826
Operating income (loss)	152,051	166,378	174,027
Operating Segments \| Industrial Segments
Segment Reporting Information [Line Items]
Product revenues	$ 89,667	$ 106,226	$ 70,172
Type of Revenue [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Depreciation and amortization	$ 4,384	$ 5,399	$ 3,789
Operating income (loss)	$ (22,530)	$ (14,751)	$ (16,702)
Reconciling Items
Segment Reporting Information [Line Items]
Type of Revenue [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Depreciation and amortization	$ 2,633	$ 2,772	$ 2,149
Operating income (loss)	$ (56,733)	$ (54,529)	$ (51,206)

Segment Information About Reported Segment Product Revenues by Product Category (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Product revenues	$ 1,038,259	$ 985,683	$ 917,600
Total product revenues in percentage	100.00%	100.00%	100.00%
Automotive Segments
Segment Reporting Information [Line Items]
Product revenues	$ 948,592	$ 879,457	$ 847,428
Total product revenues in percentage	91.00%	89.00%	92.00%
Automotive Segments \| Climate Control Seat (CCS)
Segment Reporting Information [Line Items]
Product revenues	$ 374,816	$ 387,961	$ 405,795
Total product revenues in percentage	36.00%	40.00%	44.00%
Automotive Segments \| Seat Heaters
Segment Reporting Information [Line Items]
Product revenues	$ 305,337	$ 307,309	$ 288,939
Total product revenues in percentage	29.00%	31.00%	32.00%
Automotive Segments \| Steering Wheel Heaters
Segment Reporting Information [Line Items]
Product revenues	$ 69,845	$ 62,125	$ 49,516
Total product revenues in percentage	7.00%	6.00%	5.00%
Automotive Segments \| Automotive Cables
Segment Reporting Information [Line Items]
Product revenues	$ 98,931	$ 92,093	$ 85,283
Total product revenues in percentage	9.00%	9.00%	9.00%
Automotive Segments \| Battery Thermal Management (BTM)
Segment Reporting Information [Line Items]
Product revenues	$ 28,472	$ 10,043	$ 6,546
Total product revenues in percentage	3.00%	1.00%	1.00%
Automotive Segments \| Etratech Inc.
Segment Reporting Information [Line Items]
Product revenues	$ 54,267	$ 8,398
Total product revenues in percentage	5.00%	1.00%	0.00%
Automotive Segments \| Other Automotive
Segment Reporting Information [Line Items]
Product revenues	$ 16,924	$ 11,528	$ 11,349
Total product revenues in percentage	2.00%	1.00%	1.00%
Industrial Segments
Segment Reporting Information [Line Items]
Product revenues	$ 89,667	$ 106,226	$ 70,172
Total product revenues in percentage	9.00%	11.00%	8.00%
Industrial Segments \| Remote Power Generation
Segment Reporting Information [Line Items]
Product revenues	$ 19,222	$ 31,891	$ 18,628
Total product revenues in percentage	2.00%	3.00%	2.00%
Industrial Segments \| Cincinnati Sub-Zero Products (CSZ)
Segment Reporting Information [Line Items]
Product revenues	$ 70,445	$ 74,335	$ 51,544
Total product revenues in percentage	7.00%	8.00%	6.00%

Segment Information About Reported Segment Product Revenues by Product Category (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Segment Reporting [Abstract]
Rebate to customer	$ 2.0

Segment Reporting (Detail) - USD ($) $ in Thousands	12 Months Ended
Segment Reporting (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Product revenues	$ 1,038,259	$ 985,683	$ 917,600
Type of Revenue [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Total product revenues in percentage	100.00%	100.00%	100.00%
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	$ 488,926	$ 454,669	$ 449,065
United States \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	47.00%	46.00%	49.00%
China
Segment Reporting Information [Line Items]
Product revenues	$ 93,628	$ 93,645	$ 80,493
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	$ 88,366	$ 71,768	$ 70,258
Germany \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	9.00%	7.00%	8.00%
South Korea
Segment Reporting Information [Line Items]
Product revenues	$ 58,717	$ 64,715	$ 75,396
South Korea \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	6.00%	7.00%	8.00%
Japan
Segment Reporting Information [Line Items]
Product revenues	$ 62,633	$ 57,467	$ 45,103
Japan \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	6.00%	6.00%	5.00%
Canada
Segment Reporting Information [Line Items]
Product revenues	$ 44,500	$ 46,368	$ 37,954
Canada \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	4.00%	5.00%	4.00%
Czech Republic
Segment Reporting Information [Line Items]
Product revenues	$ 42,665	$ 38,828	$ 38,164
Czech Republic \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	4.00%	4.00%	4.00%
United Kingdom
Segment Reporting Information [Line Items]
Product revenues	$ 37,533	$ 36,033	$ 28,540
United Kingdom \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	4.00%	4.00%	3.00%
Romania
Segment Reporting Information [Line Items]
Product revenues	$ 22,435	$ 18,050	$ 11,907
Romania \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	2.00%	2.00%	1.00%
Other
Segment Reporting Information [Line Items]
Product revenues	$ 98,856	$ 104,320	$ 80,720
Other \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	9.00%	10.00%	9.00%
Non U.S.
Segment Reporting Information [Line Items]
Product revenues	$ 549,333	$ 531,014	$ 468,535
Non U.S. \| Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	53.00%	54.00%	51.00%

Percentage of Total Product Revenues Generated from Customers (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total product revenues in percentage	100.00%	100.00%	100.00%
Lear \| Sales Revenue, Net \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	17.00%	20.00%	21.00%
Adient \| Sales Revenue, Net \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	16.00%	18.00%	21.00%
Bosch \| Sales Revenue, Net \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Total product revenues in percentage	8.00%	8.00%	8.00%

Pension and Other Post Retirement Benefit Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($) Payment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, amendment date	Dec. 04, 2017
Discount rate for net periodic service cost	2.95%	3.25%	3.40%
Discount rate for benefit obligation	3.65%	2.95%	3.25%
Insurance policy value	$ 2,148,000	$ 2,353,000
Tax (expense) benefit recognized in other comprehensive income	73,000	26,000	$ (14,000)
Cumulative effect of accounting change due to ASU 2018-02	40,000
Pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss)	222,000	$ 380,000
Expected pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss ) in next fiscal year	$ 0
Gentherm GmbH
Defined Benefit Plan Disclosure [Line Items]
Discount rate for benefit obligation	2.04%	1.93%	1.69%
Tax (expense) benefit recognized in other comprehensive income	$ (19,000)	$ 86,000	$ (171,000)
Pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss)	2,372,000	2,416,000
Expected pretax unrecognized actuarial losses recorded in accumulated other comprehensive income (loss ) in next fiscal year	74,000
Pension benefit obligation	3,720,000	4,036,000
Underfunded defined benefit plan	3,720,000	4,036,000
Defined benefit plan, expected employer contribution in next fiscal year	0
401(k) Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions to retirement plan	1,471,000	$ 1,396,000	$ 1,289,000
Management Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions to retirement plan	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. 01, 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 Recognized Company's Financial Statements and Principal Assumptions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in projected benefit obligation:
Benefit obligation at beginning of year	$ 4,218	$ 3,419
Service cost		101	$ 387
Interest cost	114	111	98
Actuarial (gain) loss	(158)	78
Prior service cost	(342)	509
Benefit obligation at end of year	3,832	4,218	3,419
Gentherm GmbH
Change in projected benefit obligation:
Benefit obligation at beginning of year	7,927	7,326
Interest cost	147	130	154
Paid pension distributions	(292)	(272)
Actuarial (gain) loss	114	(257)
Exchange rate impact	(367)	1,000
Benefit obligation at end of year	$ 7,529	$ 7,927	$ 7,326

Components of Net Periodic Pension Benefit Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Service cost		$ 101	$ 387
Interest cost	$ 114	111	98
Amortization of prior service cost	(342)	509
Net periodic benefit cost	114	721	485
Gentherm GmbH
Defined Benefit Plan Disclosure [Line Items]
Interest cost	147	130	154
Return on plan assets	(130)	(121)	(125)
Net periodic benefit cost	90	87	77
Amortization of actuarial loss (gains)	$ 73	$ 78	$ 48

Pretax Amounts Recognized in Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Actuarial Losses/(gains)	$ (158)	$ 78	$ 36
Establish prior service cost		509
Amortization prior service cost		(509)
Pretax amounts recognized in other comprehensive (loss) income	(158)	78	36
Gentherm GmbH
Defined Benefit Plan Disclosure [Line Items]
Actuarial Losses/(gains)	143	(229)	718
Amortization of actuarial losses	(73)	(78)	(48)
Pretax amounts recognized in other comprehensive (loss) income	$ 70	$ (307)	$ 670

Fair Value of Plan Assets (Detail) - Gentherm GmbH - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Change in plan assets:
Plan assets at beginning of year	$ 3,891	$ 3,326
Actual return on plan assets	130	121
Contributions	292	272
Paid pension distributions	(292)	(272)
Actuarial losses	(30)	(28)
Exchange rate impact	(183)	472
Plan assets at end of year	$ 3,808	$ 3,891

Actuarial Assumptions Used to Determine Benefit Obligation and Net Periodic Service Cost (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.65%	2.95%	3.25%
Gentherm GmbH
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.04%	1.93%	1.69%
Expected long term rate of return on plan assets	3.40%	3.40%	3.40%

Schedule of Expected Pension Payments (Detail) - Gentherm GmbH $ in Thousands	Dec. 31, 2018 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2019	$ 287
2020	285
2021	283
2022	279
2023	290
2024 - 2028	1,344
Total	$ 2,768

Fair Value Measurement - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Financial assets, fair value	$ 0	$ 0
Financial liabilities, fair value	0	0
Carrying value	139,890,000	144,669,000
Changes to fair value of assets, realized	0	0
DEG Vietnam Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying value	11,250,000	13,750,000
Fair value	11,100,000	13,600,000
DEG China Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying value	913,000	1,919,000
Fair value	$ 900,000	$ 2,000,000

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
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
Foreign Currency Derivatives
Derivative [Line Items]
Notional Value	$ 33,250,000	$ 29,273,000
Commodity Derivatives
Derivative [Line Items]
Notional Value	0	404,000
Interest Rate Swap
Derivative [Line Items]
Hedge Ineffectiveness Incurred	$ 0	$ 0

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, 2018	Dec. 31, 2017
Foreign Currency Derivatives
Derivatives Fair Value [Line Items]
Net Asset/ (Liabilities)	$ 92	$ (909)
Foreign Currency Derivatives \| Current Assets
Derivatives Fair Value [Line Items]
Asset Derivatives, Fair Value	$ 92	141
Foreign Currency Derivatives \| Current Liabilities
Derivatives Fair Value [Line Items]
Liability Derivatives, Fair Value		1,050
Commodity Derivatives \| Current Assets
Derivatives Fair Value [Line Items]
Asset Derivatives, Fair Value		72
Net Asset/ (Liabilities)		$ 72

Information Related to Effect of Derivative Instrument's on Our Consolidated Statements of Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	$ 777	$ 2,180
Commodity Derivatives
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	(73)	256
Other comprehensive (loss) income \| Foreign Currency Derivatives
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	1,096	302
Other comprehensive (loss) income \| Commodity Derivatives
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	(218)	54
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	(444)	2,209
Cost of sales \| Commodity Derivatives
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	145	202
Selling, general and administrative expense \| Foreign Currency Derivatives
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	75	(216)
Foreign currency gain \| Foreign Currency Derivatives
Derivative Instruments Gain Loss [Line Items]
Gain (loss) on derivatives	$ 50	$ (112)

Summary of Financial Statement Affected by Application of ASU 2014-09 and Related Amendments (Detail) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Product revenues

$ 1,038,259

$ 985,683

$ 917,600

Type of Revenue [Extensible List]

us-gaap:ProductMember

Income tax expense

$ 16,220

$ 34,028

$ 33,965

Net Income

$ 41,899

$ 35,227

$ 76,598

Basic earnings per share

$ 1.17

$ 0.96

$ 2.10

Diluted earnings per share

$ 1.16

$ 0.96

$ 2.09

Balance Sheet December 31, 2018

Accounts receivable, net of allowance for doubtful accounts

$ 166,858

$ 185,058

65,808

^[1]

77,209

Deferred income taxes, net

1,597

^[1]

4,889

62,847

Revenue Based on Previously Effective Guidance

363,965

$ 293,645

Revenue Initial Application Period Cumulative Effect Transition [Line Items]

Product revenues

$ 1,035,773

Type of Revenue [Extensible List]

us-gaap:ProductMember

Income tax expense

$ 16,727

Net Income

$ 39,920

Basic earnings per share

$ 1.11

Diluted earnings per share

$ 1.10

Balance Sheet December 31, 2018

Accounts receivable, net of allowance for doubtful accounts

$ 166,858

Deferred income taxes, net

^[1]

64,211

62,522

ASU 2014-09 | New Revenue Standard Adjustment

365,237

Revenue Initial Application Period Cumulative Effect Transition [Line Items]

Product revenues

$ 2,486

Type of Revenue [Extensible List]

us-gaap:ProductMember

Income tax expense

$ 507

Net Income

$ 1,979

Basic earnings per share

$ 0.06

Diluted earnings per share

$ 0.06

Balance Sheet December 31, 2018

^[1]

$ 1,597

Deferred income taxes, net

^[1]

1,597

325

Revenue Initial Application Period Cumulative Effect Transition [Line Items]

$ (1,272)

[1]	During 2018, unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale. As of December 31, 2018, 5,351 in unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale.

Summary of Financial Statement Affected by Application of ASU 2014-09 and Related Amendments (Parenthetical) (Detail) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

GPT and CSZ-IC | Liabilities Held for Sale

$ 1,597

^[1]

$ 4,889

Revenue Initial Application Period Cumulative Effect Transition [Line Items]

Accumulated Other Comprehensive Income Loss [Line Items]

$ 5,351

[1]	During 2018, unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale. As of December 31, 2018, 5,351 in unearned revenues associated with GPT and CSZ-IC were classified as liabilities held for sale.

New Accounting Pronouncements - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Income tax effects from Tax Act	$ 19,997,000	$ 20,153,000
ASU 2018-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Adjustment against retained earnings for effect of change in federal corporate income tax rate	40,000
Adjustments related to valuation allowance	0
Income tax effects from Tax Act	$ 0
ASU 2016-02 \| Minimum
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of right-of-use assets and liabilities expected to be recognized upon adoption of ASU	1.50%
ASU 2016-02 \| Maximum
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of right-of-use assets and liabilities expected to be recognized upon adoption of ASU	2.50%
ASU 2016-16
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Favorable adjustment to retained earnings	$ 31,645,000

Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Cumulative effect of accounting change due to adoption of ASU 2018-02

$ (20,444)

$ (69,091)

$ (51,670)

(40)

Other comprehensive income (loss) before reclassifications

(17,852)

50,602

(18,598)

Income tax effect of other comprehensive income (loss) before reclassifications

(742)

(575)

788

Amounts reclassified from accumulated other comprehensive income (loss) into net income

(391)

(1,943)

593

Income taxes reclassified into net income

(31)

563

(204)

(19,056)

48,647

(17,421)

Defined Benefit Pension Plans

(39,500)

(20,444)

(69,091)

Accumulated Other Comprehensive Income Loss [Line Items]

Cumulative effect of accounting change due to adoption of ASU 2018-02

(2,366)

(2,550)

(2,060)

(49)

Other comprehensive income (loss) before reclassifications

166

(723)

Income tax effect of other comprehensive income (loss) before reclassifications

(15)

(60)

185

Amounts reclassified from accumulated other comprehensive income (loss) into net income

184

(490)

Foreign Currency Translation Adjustments

(2,339)

(2,366)

(2,550)

Accumulated Other Comprehensive Income Loss [Line Items]

Other comprehensive income (loss) before reclassifications

(17,555)

(65,762)

(49,381)

(19,212)

48,059

(16,678)

Income tax effect of other comprehensive income (loss) before reclassifications

(390)

148

297

(19,602)

48,207

(16,381)

Commodity Hedge Derivatives

(37,157)

(17,555)

(65,762)

Accumulated Other Comprehensive Income Loss [Line Items]

Cumulative effect of accounting change due to adoption of ASU 2018-02

277

241

(229)

Other comprehensive income (loss) before reclassifications

254

154

Income tax effect of other comprehensive income (loss) before reclassifications

(93)

(57)

Amounts reclassified from accumulated other comprehensive income (loss) into net income

^[1]

(218)

(199)

589

Income taxes reclassified into net income

(68)

(216)

(277)

470

Foreign Currency Hedge Derivatives

277

241

Accumulated Other Comprehensive Income Loss [Line Items]

Other comprehensive income (loss) before reclassifications

(800)

(1,020)

1,342

2,123

(1,351)

Income tax effect of other comprehensive income (loss) before reclassifications

(337)

(570)

363

Amounts reclassified from accumulated other comprehensive income (loss) into net income

^[1]

(246)

(1,822)

(44)

Income taxes reclassified into net income

489

796

220

(1,020)

Deferred Revenue Arrangement [Line Items]

$ (4)

$ (800)

$ (1,020)

[1]	The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. See Note 12 for information related to the effect of commodity and foreign currency derivative instrument`s on our consolidated statements of income.

Assets and Liabilities Held for Sale - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Discontinued Operations And Disposal Groups [Abstract]
Impairment loss recognized on assets held for sale	$ 2,190,000
Impairment loss on goodwill	6,151,000	$ 0	$ 0
Impairment loss recognized on other intangible assets	3,135,000
Losses before income taxes on disposal	$ 15,747,000	$ 1,949,000

- Definition

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Assets and Liabilities Held for Sale - Summary of Assets and Liabilities of Disposal Group Classified as Held for Sale (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Discontinued Operations And Disposal Groups [Abstract]
Accounts receivable, less allowance of $96	$ 10,868
Inventory, net	13,925
Prepaid expenses and other assets	263
Property and equipment, net	29,459
Goodwill	6,844
Other intangible assets, net	6,326
Deferred income tax assets	4,204
Impairment loss	(2,190)
Total assets held for sale	69,699
Accounts payable	2,614
Accrued liabilities	10,448
Total liabilities held for sale	$ 13,062

Assets and Liabilities Held for Sale - Summary of Assets and Liabilities of Disposal Group Classified as Held for Sale (Detail) (Parenthetical) $ in Thousands	Dec. 31, 2018 USD ($)
Discontinued Operations And Disposal Groups [Abstract]
Allowance for accounts receivable	$ 96

Unearned Revenue By Segment (Detail) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Deferred Revenue Arrangement [Line Items]

$ 1,597

^[1]

$ 4,889

Automotive Segments

Deferred Revenue Arrangement [Line Items]

1,597

Industrial Segments