Gentherm Inc Goodwill & Intangibles Disclosure
Note 6 — Goodwill and Other Intangibles
Goodwill
Changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2025 and 2024 were as follows:
|
|
Automotive |
|
|
Medical (a) |
|
|
Total |
|
|||
Balance as of December 31, 2023 |
|
$ |
76,696 |
|
|
$ |
27,377 |
|
|
$ |
104,073 |
|
Currency translation |
|
|
(3,942 |
) |
|
|
(528 |
) |
|
|
(4,470 |
) |
Balance as of December 31, 2024 |
|
$ |
72,754 |
|
|
$ |
26,849 |
|
|
$ |
99,603 |
|
Currency translation |
|
|
8,277 |
|
|
|
1,038 |
|
|
|
9,315 |
|
Balance as of December 31, 2025 |
|
$ |
81,031 |
|
|
$ |
27,887 |
|
|
$ |
108,918 |
|
Other Intangible Assets
Other intangible assets and accumulated amortization balances as of December 31, 2025 and 2024 were as follows:
|
|
Gross |
|
|
Accumulated |
|
|
Accumulated |
|
|
Net Carrying |
|
||||
Definite-lived: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships |
|
$ |
121,316 |
|
|
$ |
(81,785 |
) |
|
$ |
(6,185 |
) |
|
$ |
33,346 |
|
Technology |
|
|
48,478 |
|
|
|
(36,238 |
) |
|
|
(27 |
) |
|
|
12,213 |
|
Product development costs |
|
|
19,943 |
|
|
|
(19,774 |
) |
|
|
(71 |
) |
|
|
98 |
|
Software development |
|
|
1,007 |
|
|
|
(403 |
) |
|
|
— |
|
|
|
604 |
|
Indefinite-lived: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trade names |
|
|
7,065 |
|
|
|
— |
|
|
|
(530 |
) |
|
|
6,535 |
|
Balance as of December 31, 2025 |
|
$ |
197,809 |
|
|
$ |
(138,200 |
) |
|
$ |
(6,813 |
) |
|
$ |
52,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Gross |
|
|
Accumulated |
|
|
Accumulated |
|
|
Net Carrying |
|
||||
Definite-lived: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships |
|
$ |
109,608 |
|
|
$ |
(67,787 |
) |
|
$ |
(5,477 |
) |
|
$ |
36,344 |
|
Technology |
|
|
43,458 |
|
|
|
(29,976 |
) |
|
|
(24 |
) |
|
|
13,458 |
|
Product development costs |
|
|
18,019 |
|
|
|
(17,849 |
) |
|
|
— |
|
|
|
170 |
|
Software development |
|
|
1,007 |
|
|
|
(201 |
) |
|
|
— |
|
|
|
806 |
|
Indefinite-lived: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trade names |
|
|
7,003 |
|
|
|
— |
|
|
|
(530 |
) |
|
|
6,473 |
|
Balance as of December 31, 2024 |
|
$ |
179,095 |
|
|
$ |
(115,813 |
) |
|
$ |
(6,031 |
) |
|
$ |
57,251 |
|
During the year ended December 31, 2024 we recorded a non-cash impairment charge of $530 for one of our Medical trade names.
During the year ended December 31, 2023, an indicator of impairment was identified and the Company performed an interim quantitative assessment as of June 30, 2023. The results of this quantitative analysis indicated the carrying value of the reporting unit exceeded the fair value of the reporting unit, and accordingly an impairment expense was recorded for $19,509.
The Company performed its annual tests for impairment as of December 31, 2023, 2024 and 2025 utilizing the same quantitative approach and determined the fair value of each reporting unit exceeded its carrying value at each date.
A total of $7,135, $7,019, and $8,290 in other intangible assets were amortized in 2025, 2024 and 2023, respectively.
An estimate of future amortization of other intangible assets, is as follows:
2026 |
|
$ |
6,859 |
|
2027 |
|
|
6,771 |
|
2028 |
|
|
6,703 |
|
2029 |
|
|
5,963 |
|
2030 |
|
|
4,947 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 20, 2020 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.