10-Q 1 thrm-10q_20220331.htm 10-Q thrm-10q_20220331.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

(Mark One)

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2022

OR

 

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from             to             .

Commission File Number: 0-21810

 

GENTHERM INCORPORATED

(Exact name of registrant as specified in its charter)

 

 

Michigan

 

95-4318554

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

21680 Haggerty Road, Northville, MI

 

48167

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (248504-0500

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, no par value

THRM

Nasdaq

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

  

Accelerated filer

Non-accelerated filer

  

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

At April 29, 2022, there were 33,131,660 issued and outstanding shares of Common Stock of the registrant.

 

 

 

 


 

GENTHERM INCORPORATED

TABLE OF CONTENTS

 

 

 

 

 

 

 

Part I. Financial Information

  

3

 

 

Item 1.

 

 

Financial Statements (Unaudited)

 

3

 

 

 

 

Consolidated Condensed Balance Sheets

 

3

 

 

 

 

Consolidated Condensed Statements of Income

 

4

 

 

 

 

Consolidated Condensed Statements of Comprehensive Income

 

5

 

 

 

 

Consolidated Condensed Statements of Cash Flows

 

6

 

 

 

 

Consolidated Condensed Statements of Changes in Shareholders’ Equity

 

7

 

 

 

 

Notes to Unaudited Consolidated Condensed Financial Statements

 

8

 

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

20

 

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

 

30

 

Item 4.

 

 

Controls and Procedures

 

31

 

Part II. Other Information

  

32

 

 

Item 1.

 

Legal Proceedings

 

32

 

 

Item 1A.

 

Risk Factors

 

32

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

34

 

 

Item 5.

 

Other Information

 

34

 

 

Item 6.

 

Exhibits

 

36

 

Signatures

  

37

 

 

 

2


 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

 

March 31, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

177,917

 

 

$

190,606

 

Accounts receivable, net

 

 

207,351

 

 

 

182,987

 

Inventory:

 

 

 

 

 

 

 

 

Raw materials

 

 

111,621

 

 

 

96,426

 

Work in process

 

 

10,991

 

 

 

9,495

 

Finished goods

 

 

53,556

 

 

 

53,556

 

Inventory, net

 

 

176,168

 

 

 

159,477

 

Other current assets

 

 

41,034

 

 

 

32,775

 

Total current assets

 

 

602,470

 

 

 

565,845

 

Property and equipment, net

 

 

152,288

 

 

 

155,270

 

Goodwill

 

 

64,979

 

 

 

66,033

 

Other intangible assets, net

 

 

34,982

 

 

 

37,554

 

Operating lease right-of-use assets

 

 

27,445

 

 

 

24,387

 

Deferred income tax assets

 

 

69,420

 

 

 

69,630

 

Other non-current assets

 

 

15,529

 

 

 

16,624

 

Total assets

 

$

967,113

 

 

$

935,343

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

156,236

 

 

$

122,727

 

Current lease liabilities

 

 

5,920

 

 

 

5,669

 

Current maturities of long-term debt

 

 

2,500

 

 

 

2,500

 

Other current liabilities

 

 

79,044

 

 

 

82,193

 

Total current liabilities

 

 

243,700

 

 

 

213,089

 

Long-term debt, less current maturities

 

 

36,250

 

 

 

36,250

 

Non-current lease liabilities

 

 

19,978

 

 

 

19,789

 

Pension benefit obligation

 

 

6,362

 

 

 

6,832

 

Other non-current liabilities

 

 

5,036

 

 

 

5,577

 

Total liabilities

 

$

311,326

 

 

$

281,537

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Common Stock:

 

 

 

 

 

 

 

 

No par value; 55,000,000 shares authorized 33,127,531 and 33,008,185 issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

 

117,832

 

 

 

118,646

 

Paid-in capital

 

 

5,720

 

 

 

5,866

 

Accumulated other comprehensive loss

 

 

(45,728

)

 

 

(36,922

)

Accumulated earnings

 

 

577,963

 

 

 

566,216

 

Total shareholders’ equity

 

 

655,787

 

 

 

653,806

 

Total liabilities and shareholders’ equity

 

$

967,113

 

 

$

935,343

 

 

 

3


 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Product revenues

 

$

267,657

 

 

$

288,535

 

Cost of sales

 

 

203,544

 

 

 

200,866

 

Gross margin

 

 

64,113

 

 

 

87,669

 

Operating expenses:

 

 

 

 

 

 

 

 

Net research and development expenses

 

 

20,434

 

 

 

17,603

 

Selling, general and administrative expenses

 

 

29,308

 

 

 

28,526

 

Restructuring expenses

 

 

181

 

 

 

791

 

Total operating expenses

 

 

49,923

 

 

 

46,920

 

Operating income

 

 

14,190

 

 

 

40,749

 

Interest expense, net

 

 

(569

)

 

 

(1,039

)

Foreign currency gain

 

 

2,217

 

 

 

773

 

Other income (loss)

 

 

204

 

 

 

(9

)

Earnings before income tax

 

 

16,042

 

 

 

40,474

 

Income tax expense

 

 

4,295

 

 

 

7,565

 

Net income

 

$

11,747

 

 

$

32,909

 

Basic earnings per share

 

$

0.36

 

 

$

1.00

 

Diluted earnings per share

 

$

0.35

 

 

$

0.99

 

Weighted average number of shares – basic

 

 

33,035

 

 

 

32,946

 

Weighted average number of shares – diluted

 

 

33,377

 

 

 

33,390

 

 

See accompanying notes to the consolidated condensed financial statements.

 

 

4


 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net income

 

$

11,747

 

 

$

32,909

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

Pension benefit obligations

 

 

29

 

 

 

 

Foreign currency translation adjustments

 

 

(9,294

)

 

 

(13,152

)

Unrealized gain (loss) on foreign currency derivative securities, net of tax

 

 

464

 

 

 

(522

)

Unrealized loss on commodity derivative securities, net of tax

 

 

(5

)

 

 

 

Other comprehensive loss, net of tax

 

 

(8,806

)

 

 

(13,674

)

Comprehensive income

 

$

2,941

 

 

$

19,235

 

 

See accompanying notes to the consolidated condensed financial statements.

 

 

5


 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

11,747

 

 

$

32,909

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

9,577

 

 

 

9,854

 

Deferred income taxes

 

 

(778

)

 

 

105

 

Non-cash stock based compensation

 

 

2,279

 

 

 

4,460

 

Loss on disposition of property and equipment

 

 

107

 

 

 

242

 

Other

 

 

256

 

 

 

(103

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(25,788

)

 

 

(13,931

)

Inventory

 

 

(18,116

)

 

 

(11,546

)

Other assets

 

 

(10,716

)

 

 

3,243

 

Accounts payable

 

 

34,097

 

 

 

18,113

 

Other liabilities

 

 

(3,349

)

 

 

(3,679

)

Net cash (used in) provided by operating activities

 

 

(684

)

 

 

39,667

 

Investing Activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(5,659

)

 

 

(9,913

)

Proceeds from the sale of property and equipment

 

 

52

 

 

 

10

 

Cost of technology investments

 

 

(350

)

 

 

(200

)

Net cash used in investing activities

 

 

(5,957

)

 

 

(10,103

)

Financing Activities:

 

 

 

 

 

 

 

 

Repayments of debt

 

 

 

 

 

(130,000

)

Proceeds from the exercise of Common Stock options

 

 

569

 

 

 

5,984

 

Taxes withheld and paid on employees' share-based payment awards

 

 

(4,319

)

 

 

(1,532

)

Acquisition contingent consideration payment

 

 

 

 

 

(68

)

Net cash used in financing activities

 

 

(3,750

)

 

 

(125,616

)

Foreign currency effect

 

 

(2,298

)

 

 

(1,338

)

Net decrease in cash and cash equivalents

 

 

(12,689

)

 

 

(97,390

)

Cash and cash equivalents at beginning of period

 

 

190,606

 

 

 

268,345

 

Cash and cash equivalents at end of period

 

$

177,917

 

 

$

170,955

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for taxes

 

$

3,267

 

 

$

2,555

 

Cash paid for interest

 

$

421

 

 

$

844

 

 

See accompanying notes to the consolidated condensed financial statements.

 

 

6


GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at December 31, 2021

 

 

33,008

 

 

$

118,646

 

 

$

5,866

 

 

$

(36,922

)

 

$

566,216

 

 

$

653,806

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,747

 

 

 

11,747

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(8,806

)

 

 

 

 

 

(8,806

)

Stock compensation, net

 

 

119

 

 

 

(814

)

 

 

(146

)

 

 

 

 

 

 

 

 

(960

)

Balance at March 31, 2022

 

 

33,127

 

 

$

117,832

 

 

$

5,720

 

 

$

(45,728

)

 

$

577,963

 

 

$

655,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at December 31, 2020

 

 

32,921

 

 

$

121,073

 

 

$

7,458

 

 

$

(14,982

)

 

$

472,782

 

 

$

586,331

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,909

 

 

 

32,909

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(13,674

)

 

 

 

 

 

(13,674

)

Stock compensation, net

 

 

190

 

 

 

8,527

 

 

 

(1,335

)

 

 

 

 

 

 

 

 

7,192

 

Balance at March 31, 2021

 

 

33,111

 

 

$

129,600

 

 

$

6,123

 

 

$

(28,656

)

 

$

505,691

 

 

$

612,758

 

 

See accompanying notes to the consolidated condensed financial statements.

 

 

7


 

Note 1 – Overview

Gentherm Incorporated, a Michigan corporation, and its consolidated subsidiaries (“Gentherm”, “we”, “us”, “our” or the “Company”) is a global developer, manufacturer and marketer of innovative thermal management technologies for a broad range of heating, cooling and temperature control applications, primarily in the automotive and medical industries. Within the automotive industry, our products provide solutions for passenger climate comfort and convenience, battery thermal management and cell connecting systems. Within the medical industry our products provide patient temperature management solutions. Our automotive products can be found on vehicles manufactured by nearly all the major automotive original equipment manufacturers (“OEMs”) operating in North America and Europe, and several major OEMs in Asia. We operate in locations aligned with our major customers’ product strategies to provide locally enhanced design, integration and production capabilities. The Company is also developing a number of new technologies and products that are expected to enable improvements to existing products and to create new product applications for existing and new markets.

Basis of Presentation and Significant Accounting Policies

The unaudited consolidated condensed financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations. The information furnished in the consolidated condensed financial statements include all adjustments (consisting of only normal, recurring adjustments), considered necessary to present fairly the results of operations, financial position and cash flows of the Company. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year.

In preparing these financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other outside sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur and additional information is obtained. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements.

Principles of Consolidation

The consolidated condensed financial statements include the accounts of the Company, its wholly owned subsidiaries and those entities in which it has a controlling financial interest. The Company evaluates its relationship with other entities for consolidation and to identify whether such entities are variable interest entities (“VIE”) and to assess whether the Company is the primary beneficiary of such entities. Investments in affiliates in which Gentherm does not have control but does have the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. When Gentherm does not have the ability to exercise significant influence (generally when ownership interest is less than 20%), investments in affiliates are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer.

Variable Interest Entities

The Company maintains an ownership interest in a VIE, Carrar Ltd. (“Carrar”). Carrar is a technology developer of advanced thermal management systems for the electric mobility market. The Company determined that Carrar is a VIE; however, the Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of the investment. Therefore, the Company has concluded that it is not the primary beneficiary. Gentherm’s investment in Carrar is measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer.  The Carrar investment was $5,200 as of March 31, 2022 and December 31, 2021, and is recorded in Other non-current assets in the consolidated condensed balance sheet.

8


 

Revenue Recognition

The Company has no material contract assets or contract liabilities as of March 31, 2022.  

The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the benefits of those costs are expected to be realized for a period greater than one year. Total capitalized costs to obtain a contract were $1,884 and $1,946 as of March 31, 2022 and December 31, 2021, respectively. These amounts are recorded in Other non-current assets and are being amortized into Product revenues over the expected production life of the applicable program.

Segment Reporting

The Company has two reportable segments: Automotive and Medical.

The Automotive reporting segment is comprised of the results from our global automotive businesses, including the design, development, manufacturing and sales of automotive climate comfort systems, automotive cable systems, battery performance solutions, and automotive electronic and software systems.

The Medical reporting segment is comprised of the results from the patient temperature management business in the medical industry. Patient temperature management includes temperature management systems across multiple product categories addressing the needs of hyper-hypothermia therapy in intensive care, normothermia in surgical procedures and additional warming/cooling therapies utilized in acute care, ambulatory, clinics and home health.

Note 2 – New Accounting Pronouncements

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting”. ASU 2020-04 provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. These amendments are not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. In January 2021, the FASB subsequently issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2020-04 and ASU 2021-01 are effective as of March 12, 2020 through December 31, 2022 and may be applied retrospectively to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The adoption of this standard is not expected to have a material impact on the Company’s financial statements.

Note 3 – Restructuring

Manufacturing Footprint Rationalization

In September 2019, the Company committed to a restructuring plan (“Plan”) to improve the Company’s manufacturing productivity and rationalize its footprint. Under this Plan, the Company is relocating and consolidating certain automotive electronics manufacturing plants in North America and China.  During 2021, the Company completed the closures and relocation of its automotive electronics manufacturing operations from Burlington, Canada to Celaya, Mexico and from Longgang, Shenzhen, China to Bantian, Shenzhen, China. As of March 31, 2022, the electronics manufacturing in Acuña, Mexico continues to transition to Celaya, Mexico.

During the three months ended March 31, 2022, the Company recognized restructuring expense of $50 for employee separation costs and $101 for other costs. During the three months ended March 31, 2021, the Company recognized restructuring expense of $206 for employee separation costs and $259 for other costs.   

The Company has recorded approximately $10,256 of restructuring expenses since the inception of this program and as of March 31, 2022, $538 remains accrued. Actions under the Plan are expected to be substantially completed by the end of 2022 and future expenses are expected to be less than $1,000.          

9


 

Other Restructuring Activities

As part of the Company’s continued efforts to optimize its cost structure, the Company has undertaken several discrete restructuring actions. During the three months ended March 31, 2022, the Company recognized $30 for other costs.  During the three months ended March 31, 2021, the Company recognized $326 for employee separation costs.  These restructuring expenses were primarily associated with restructuring actions focused on the rotation of our manufacturing footprint to best cost locations and the reduction of global overhead costs.

Restructuring Expenses By Reporting Segment

The following table summarizes restructuring expense for the three months ended March 31, 2022 and 2021 by reporting segment:

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Automotive

 

$

181

 

 

$

791

 

Medical

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

Total

 

$

181

 

 

$

791

 

 

Restructuring Liability

Restructuring liabilities are classified as Other current liabilities in the consolidated condensed balance sheets. The following table summarizes restructuring liability for the three months ended March 31, 2022:

 

 

 

Employee Separation Costs

 

 

Other Related Costs

 

 

Total

 

Balance at December 31, 2021

 

$

1,494

 

 

$

 

 

$

1,494

 

Additions, charged to restructuring expenses

 

 

 

 

 

131

 

 

 

131

 

Cash payments

 

 

(544

)

 

 

(131

)

 

 

(675

)

Non-cash utilization

 

 

 

 

 

 

 

 

 

Change in estimate

 

 

50

 

 

 

 

 

 

50

 

Currency translation

 

 

(18

)

 

 

 

 

 

(18

)

Balance at March 31, 2022

 

$

982

 

 

$

 

 

$

982

 

 

Note 4 – Details of Certain Balance Sheet Components

 

 

March 31, 2022

 

 

December 31, 2021

 

Other current assets:

 

 

 

 

 

 

 

 

Notes receivable

 

$

15,958

 

 

$

13,033

 

Income tax and other tax receivable

 

 

12,501

 

 

 

10,681

 

Billable tooling

 

 

4,993

 

 

 

3,778

 

Prepaid expenses

 

 

4,751

 

 

 

3,407

 

Other

 

 

2,831

 

 

 

1,876

 

Total other current assets

 

$

41,034

 

 

$

32,775

 

Other current liabilities:

 

 

 

 

 

 

 

 

Liabilities from discounts and rebates

 

$

26,632

 

 

$

27,343

 

Accrued employee liabilities

 

 

21,244

 

 

 

28,818

 

Income tax and other taxes payable

 

 

19,529

 

 

 

17,068

 

Restructuring

 

 

982

 

 

 

1,494

 

Accrued warranty

 

 

1,772

 

 

 

1,916

 

Other

 

 

8,885

 

 

 

5,554

 

Total other current liabilities

 

$

79,044

 

 

$

82,193

 

 

10


 

Note 5 – Goodwill and Other Intangibles

 

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2022 was as follows:

 

 

Automotive

 

 

Medical

 

 

Total

 

'Balance as of December 31, 2021

 

$

37,329

 

 

$

28,704

 

 

$

66,033

 

Exchange rate impact

 

 

(762

)

 

 

(292

)

 

 

(1,054

)

Balance as of March 31, 2022

 

$

36,567

 

 

$

28,412

 

 

$

64,979

 

 

Other Intangible Assets

Other intangible assets and accumulated amortization balances as of March 31, 2022 and December 31, 2021 were as follows:

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Gross

Carrying Value

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

Gross

Carrying Value

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

Definite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

87,854

 

 

$

(63,445

)

 

$

24,409

 

 

$

90,448

 

 

$

(64,105

)

 

$

26,343

 

Technology

 

 

28,706

 

 

 

(24,288

)

 

 

4,418

 

 

 

29,464

 

 

 

(24,487

)

 

 

4,977

 

Product development costs

 

 

19,661

 

 

 

(19,183

)

 

 

478

 

 

 

20,329

 

 

 

(19,772

)

 

 

557

 

Software development

 

 

1,007

 

 

 

 

 

 

1,007

 

 

 

1,007