Company: THRM
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023344
Chunk: 60

Company: Gentherm Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 60
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 the consolidated balance sheets. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive loss is recorded in earnings in the consolidated statements of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. The Company records the ineffective portion of foreign currency and copper commodity hedging instruments, if any, to cost of sales, in the consolidated statements of income. Cash flows associated with derivatives are reported in net cash provided by operating activities in the Company’s consolidated statements of cash flows.The Company uses an income approach to value derivative instruments, analyzing quoted market prices to calculate the forward values and then discounting such forward values to the present value using benchmark rates at commonly quoted intervals for the instrument’s full term. The Company is party to a floating-to-fixed interest rate swap agreement that is an undesignated hedge of the Company’s exposure to interest payment fluctuations on a portion of the Revolving Credit Facility borrowings. The periodic changes in fair value are recognized in interest expense, net.

 F-31

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

Information related to the recurring fair value measurement of derivative financial instruments in the consolidated balance sheet as of December 31, 2024 is as follows: 

        Asset Derivatives

        Liability Derivatives

        Fair ValueHierarchy
         
        Notional Amount

        Balance SheetLocation
         
        FairValue

        Balance SheetLocation
         
        FairValue

        Net Asset/(Liabilities)

        Derivatives Designated as Cash Flow Hedges

        Foreign currency derivatives
         
        Level 2
         
        $
        126,496

        Other current assets
         
        $
        —

        Other current liabilities
         
        $
        2,037

        $
        (2,037
        )

        Derivatives Not Designated as Hedging Instruments

        Interest rate contracts
         
        Level 2
         
        $
        100,000

        Other current assets
         
        $
        719

        Other current liabilities
         
        $
        —

        $
        719

      Information related to the recurring fair value measurement of derivative financial instruments in the consolidated balance sheet as of December 31, 2023 is as follows: 

        Asset Derivatives

        Liability Derivatives

        Fair