Note 19 Segment Reporting

The Company is organized under two reportable segments: Automotive and Medical.

The Automotive reporting segment is comprised of our global automotive businesses, including the design, development, manufacturing and sales of Automotive Climate and Comfort Solutions (including Climate Control Seats, Climate Control Interiors, Lumbar and Massage Comfort Solutions and Climate and Comfort Electronics), Valve Systems and other automotive products.

The Medical reporting segment is comprised of our 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 and chronic care departments and non-hospital facilities.

The Corporate and other unallocated expenses category includes certain enterprise and governance activities resulting in unallocated corporate costs and other activity and net costs that the Company may choose not to allocate directly to its business segments.

Segment information is used by management, specifically our chief operating decision maker ("CODM"), the President and Chief Executive Officer, for making operating decisions for the Company. Our CODM uses operating income or loss to evaluate the performance and allocate resources for each of the Company’s segments. Operating income or loss is used to monitor budget versus actual results and year-over-year actual results to inform the decisions of how to allocate capital and resources within the Company. The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM.

The table below presents segment information about the reported product revenues, operating income (loss), and significant segment expenses of the Company for the years ended December 31, 2025, 2024 and 2023:

 

 

Year Ended December 31,

 

Product Revenues

 

2025

 

 

2024

 

 

2023

 

Automotive

 

$

1,448,826

 

 

$

1,406,278

 

 

$

1,422,952

 

Medical

 

 

49,776

 

 

 

49,846

 

 

 

46,124

 

Total

 

 

1,498,602

 

 

 

1,456,124

 

 

 

1,469,076

 

 

 

 

 

 

 

 

 

 

 

Significant Segment Expenses and Operating Performance

 

 

 

 

 

 

 

 

 

Automotive

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,110,222

 

 

 

1,058,989

 

 

 

1,090,941

 

Net research and development expenses

 

 

73,694

 

 

 

68,787

 

 

 

70,778

 

Selling, general and administrative expenses

 

 

67,040

 

 

 

65,924

 

 

 

72,090

 

Restructuring expenses, net

 

 

12,279

 

 

 

12,238

 

 

 

3,187

 

Loss on sale of land and building, net

 

 

2,196

 

 

 

 

 

 

 

Automotive operating income

 

 

183,395

 

 

 

200,340

 

 

 

185,956

 

 

 

 

 

 

 

 

 

 

 

Medical

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

26,204

 

 

 

25,868

 

 

 

24,619

 

Other operating expenses

 

 

23,114

 

 

 

21,836

 

 

 

24,230

 

Impairment of intangible assets and property and equipment

 

 

 

 

 

2,501

 

 

 

19,509

 

Medical operating income (loss)

 

 

458

 

 

 

(359

)

 

 

(22,234

)

 

 

 

 

 

 

 

 

 

 

Corporate and Other Unallocated Expenses

 

 

 

 

 

 

 

 

 

Corporate and other unallocated expenses

 

 

(101,153

)

 

 

(92,966

)

 

 

(86,283

)

Total consolidated operating income

 

$

82,700

 

 

$

107,015

 

 

$

77,439

 

 

 

 

 

 

 

 

 

 

 

Other Segment Disclosures

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

Automotive

 

$

47,701

 

 

$

47,752

 

 

$

45,845

 

Medical

 

 

3,403

 

 

 

3,542

 

 

 

3,654

 

Corporate

 

 

2,275

 

 

 

1,681

 

 

 

1,449

 

Total

 

$

53,379

 

 

$

52,975

 

 

$

50,948

 

 

Automotive and Medical segment product revenues by product category for each of the years ended December 31, 2025, 2024 and 2023 are as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024 (a)

 

 

2023 (a)

 

Climate Control Seats

 

$

793,314

 

 

$

771,310

 

 

$

797,588

 

Lumbar and Massage Comfort Solutions

 

 

212,182

 

 

 

178,584

 

 

 

144,923

 

Climate Control Interiors

 

 

197,901

 

 

 

186,972

 

 

 

177,976

 

Climate and Comfort Electronics

 

 

29,664

 

 

 

17,363

 

 

 

12,860

 

Automotive Climate and Comfort Solutions

 

 

1,233,061

 

 

 

1,154,229

 

 

 

1,133,347

 

Valve Systems

 

 

96,877

 

 

 

105,056

 

 

 

106,262

 

Other Automotive

 

 

118,888

 

 

 

146,993

 

 

 

183,343

 

Subtotal Automotive segment

 

 

1,448,826

 

 

 

1,406,278

 

 

 

1,422,952

 

Medical segment

 

 

49,776

 

 

 

49,846

 

 

 

46,124

 

Total Company

 

$

1,498,602

 

 

$

1,456,124

 

 

$

1,469,076

 

(a)
Product categories have been modified, and prior-period amounts have been recast to conform with the current period presentation. Climate Control Seats (CCS) includes CCS Heat (previously Seat Heaters), CCS Vent/CCS Active (previously CCS) and CCS Neck Conditioners (previously included in Other Automotive). Climate Control Interiors (CCI) includes CCI Steering Wheel Heat and CCI Interior Heat (previously included in Other Automotive). Other Automotive includes Automotive Cables, Battery Performance Solutions, non-automotive electronics and contract manufacturing electronics (previously classified as Electronics).

Revenue (based on shipment destination) by geographic area for each of the years ended December 31, 2025, 2024 and 2023 is as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

United States

 

$

513,288

 

 

$

504,444

 

 

$

537,096

 

China

 

 

239,563

 

 

 

224,221

 

 

 

221,512

 

Germany

 

 

113,860

 

 

 

105,927

 

 

 

102,383

 

Czech Republic

 

 

89,648

 

 

 

78,785

 

 

 

69,714

 

South Korea

 

 

89,131

 

 

 

104,120

 

 

 

115,854

 

Mexico

 

 

67,008

 

 

 

43,327

 

 

 

45,733

 

Slovakia

 

 

55,493

 

 

 

55,085

 

 

 

44,946

 

Romania

 

 

54,304

 

 

 

52,616

 

 

 

53,982

 

Japan

 

 

47,601

 

 

 

53,730

 

 

 

60,879

 

United Kingdom

 

 

33,437

 

 

 

41,098

 

 

 

34,765

 

Other

 

 

195,269

 

 

 

192,771

 

 

 

182,212

 

Total Non-U.S.

 

 

985,314

 

 

 

951,680

 

 

 

931,980

 

Total Company

 

$

1,498,602

 

 

$

1,456,124

 

 

$

1,469,076

 

 

Property and equipment, net, for each of the geographic areas in which the Company operates as of December 31, 2025 and 2024 is as follows:

 

 

 

December 31,

 

Property and equipment, net

 

2025

 

 

2024

 

Germany

 

$

50,761

 

 

$

42,457

 

Mexico

 

 

50,506

 

 

 

47,814

 

China

 

 

47,414

 

 

 

44,767

 

United States

 

 

40,361

 

 

 

42,928

 

North Macedonia

 

 

29,375

 

 

 

25,374

 

Vietnam

 

 

19,110

 

 

 

20,920

 

Czech Republic

 

 

10,513

 

 

 

9,440

 

Hungary

 

 

8,617

 

 

 

7,994

 

Ukraine

 

 

5,467

 

 

 

5,174

 

Other

 

 

8,490

 

 

 

6,102

 

Total

 

$

270,614

 

 

$

252,970

 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 24, 2023
2021Feb 17, 2022
2020Mar 1, 2021
2019Feb 20, 2020
2018Feb 26, 2019
2017Feb 23, 2018
2016Feb 23, 2017
2015Feb 25, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.