Company: THRM
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023344
Chunk: 157

Company: Gentherm Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1B
Chunk 157
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 or losses from retirements and disposals are recorded as operating income or expense. Depreciation is computed using the straight-line method. The estimated useful lives of the Company’s property and equipment are as follows: 

          Asset Category
           
          Useful Life

          Buildings and improvements
           
          1 to 30 years

          Plant and equipment
           
          10 years

          Production tooling
           
          2 to 10 years

          Leasehold improvements
           
          Term of lease

          Information technology
           
          1 to 5 years
         
        The Company recognized depreciation expense of $45,503, $42,186 and $33,730 for the years ended December 31, 2024, 2023 and 2022, respectively. Tooling The Company incurs costs related to tooling used in the manufacture of products sold to its customers. In some cases, the Company enters into contracts with its customers whereby the Company incurs the costs to design, develop and purchase tooling and is then reimbursed by the customer under a reimbursement contract. Tooling costs that will be reimbursed by customers are included in other current assets in the accompanying consolidated balance sheets at the lower of accumulated cost or the customer reimbursable amount. As of December 31, 2024 and 2023, the Company had $19,740 and $16,877, respectively, of reimbursable tooling costs capitalized. Company-owned tooling is included in property and equipment and depreciated over its expected useful life, generally two to ten years. Goodwill and Other Intangible Assets Goodwill and other intangible assets recorded in conjunction with business combinations are based on the Company’s estimate of fair value, as of the date of acquisition.Amortization of other intangible assets is computed using the straight-line method. The fair value and corresponding useful lives for acquired intangible assets are listed below as follows: 

          Asset Category
           
          Useful Life

          Customer relationships
           
          8 to 15 years

          Technology
           
          5 to 12 years

          Product development costs
           
          5 to 10 years

          Trade names
           
          Indefinite

          Software development costs
           
          4 to 5 years
         
        Our business strategy largely centers on designing products based upon internally developed and purchased technology, and we protect certain technology with patents that have value to