Gentherm Inc Leases Disclosure
Note 7 — Leases
The Company has operating and finance leases for real estate, office equipment, automobiles, forklifts and certain other equipment. Certain real estate leases are for land which have a remaining lease term of to 37 years, and some of these arrangements have an end date that is at the discretion of the lessee. Excluding land leases, our leases have remaining lease terms ranging from less than one year to fourteen years and may include options to extend the lease. We do not have lease arrangements with related parties.
Components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Lease cost: |
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Operating lease cost |
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$ |
13,739 |
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$ |
10,747 |
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$ |
9,606 |
|
Amortization of finance leases |
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161 |
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|
370 |
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|
390 |
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Interest on lease liabilities - finance leases |
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5 |
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14 |
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|
28 |
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Short-term lease cost |
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3,999 |
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|
3,684 |
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|
2,651 |
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Total lease cost |
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$ |
17,904 |
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$ |
14,815 |
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$ |
12,675 |
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Other information related to leases is as follows:
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Year Ended December 31, |
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2025 |
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2024 |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows for operating leases |
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$ |
12,992 |
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$ |
10,428 |
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Operating cash flows for finance leases |
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5 |
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14 |
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Financing cash flows for finance leases |
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|
149 |
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|
383 |
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Right-of-use lease assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
19,364 |
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$ |
30,720 |
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December 31, 2025 |
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December 31, 2024 |
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Weighted average remaining lease term: |
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Operating leases |
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9.62 yrs |
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9.3 years |
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Finance leases |
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0.50 yrs |
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1.5 years |
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Weighted average discount rate: |
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Operating leases |
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6.22% |
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6.09 |
% |
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Finance leases |
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3.34% |
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3.46 |
% |
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A summary of future lease payments for non-cancellable operating leases with terms exceeding one year, as of December 31, 2025, is as follows:
2026 |
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$ |
12,113 |
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2027 |
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|
8,828 |
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2028 |
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|
7,330 |
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2029 |
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|
6,520 |
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2030 |
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|
6,224 |
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2031 or later |
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|
37,041 |
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Total future minimum lease payments |
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78,056 |
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Less imputed interest |
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(20,305 |
) |
Total |
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$ |
57,751 |
|
A summary of future lease payments for non-cancellable finance leases with terms exceeding one year, as of December 31, 2025, is as follows:
2026 |
|
$ |
73 |
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Total |
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$ |
73 |
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During the first quarter of 2025, the Company completed a move to a new corporate headquarters building in Novi, Michigan. In connection with the move we completed the sale of our former headquarters building in Northville, Michigan in January 2025. The sale resulted in cash proceeds of $3,740 and a loss on sale of $2,311.
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 Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.