Company: THRM
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023344
Chunk: 57

Company: Gentherm Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 57
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 costs could be material. The Company has insurance policies that generally include coverage of the costs of a recall, subject to insured limits, although the Company’s costs related to manufacturing of replacement parts are generally not covered. In addition, the Company’s purchase agreement of Alfmeier includes indemnification provisions under which the Company believes it would have a claim against the sellers. Given the uncertainty that exists concerning the resolution of this matter, as of the date of this report, the Company cannot reasonably estimate the amount and timing of possible costs that may be incurred by the Company.The following is a reconciliation of the changes in accrued warranty costs: 

        Year Ended December 31,

        2024

        2023

        Balance at beginning of year
         
        $
        3,945

        $
        2,380

        Warranty claims paid

        (6,382
        )

        (2,252
        )

        Warranty expense for products shipped during the current period

        5,812

        3,955

        Adjustments to warranty estimates from prior periods

        247

        (174
        )

        Adjustments due to currency translation

        (115
        )

        36

        Balance at end of year
         
        $
        3,507

        $
        3,945

      EmployeesApproximately 35% of the Company’s workforce are members of industrial trade unions or worker councils and are employed under the terms of various labor agreements. In 2025, certain agreements will require a vote on the terms of their respective labor contracts. 

 F-29

GENTHERM INCORPORATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)(In thousands, except share and per share data)  

Note 12 — Supplier Finance Program Beginning in 2024, the Company became party to a supplier finance program with a third-party service provider (“Service Provider”), pursuant to which the Company has offered the opportunity to participate to certain of the Company's suppliers. The Company has no economic interest in a supplier’s participation and the Company has not pledged any assets to the Service Provider under this program. Under this program, the Company and supplier initially agree on the contractual payment terms for the goods to be procured for the Company in the ordinary course. A supplier’s participation in this program is voluntary and does not impact its contractual payment terms with the Company, including the payment amount and timing of when payments are due. A participating supplier has