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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2011	Aug. 09, 2011
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Entity Registrant Name	AMERIGON INC
Entity Central Index Key	0000903129
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,251,030

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash & cash equivalents	$ 27,635	$ 26,584
Short-term investments		9,761
Restricted cash	472
Accounts receivable, less allowance of $915 and $545, respectively	79,507	18,940
Inventory	44,807	6,825
Derivative financial instruments	7,409
Assets held for sale	10,534
Deferred income tax assets	1,717	4,905
Prepaid expenses and other assets	10,610	1,421
Total current assets	182,691	68,436
Property and equipment, net	43,701	4,197
Goodwill	25,454
Other intangible assets	130,822	4,653
Deferred financing costs	3,555
Deferred income tax assets	30,792	1,279
Other non-current assets	2,346	857
Total assets	419,361	79,422
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	39,400	15,275
Accrued liabilities	51,392	5,872
Current maturities of long-term debt	18,251
Derivative financial instruments	2,992
Deferred manufacturing agreement - current portion		50
Total current liabilities	112,035	21,197
Pension benefit obligation	3,825	688
Long-term debt, less current maturities	72,863
Derivative financial instruments	22,473
Deferred tax liabilities	36,269
Total liabilities	247,465	21,885
Series C Convertible Preferred Stock	62,931
Shareholders' equity:
Common Stock: No par value; 55,000,000 shares authorized, 22,241,030 and 22,037,446 issued and outstanding at June 30, 2011 and December 31, 2010, respectively	66,998	65,148
Paid-in capital	22,659	20,128
Accumulated other comprehensive income	2,903	93
Accumulated deficit	(30,080)	(27,832)
Total Amerigon Incorporated shareholders' equity	62,480	57,537
Non-controlling interest	46,485
Total shareholders' equity	108,965	57,537
Total liabilities and shareholders' equity	$ 419,361	$ 79,422

Consolidated Condensed Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Consolidated Condensed Statements Of Operations
Product revenues	$ 77,137	$ 28,812	$ 112,933	$ 53,000
Cost of sales	57,918	20,108	83,258	37,653
Gross margin	19,219	8,704	29,675	15,347
Operating expenses:
Research and development	4,740	3,390	7,401	6,369
Research and development reimbursements	(154)	(528)	(346)	(1,703)
Net research and development expenses	4,586	2,862	7,055	4,666
Acquisition transaction expenses	1,426		5,180
Selling, general and administrative	9,183	2,491	12,547	4,951
Total operating expenses	15,195	5,353	24,782	9,617
Operating income	4,024	3,351	4,893	5,730
Interest income (expense)	(1,246)	3	(1,237)
Debt retirement expense	(967)		(967)
Revaluation of derivatives	(1,269)		(1,269)
Foreign currency gain	1,235		1,406
Loss from equity investment				(22)
Other income	414	7	470	72
Earnings before income tax	2,191	3,361	3,296	5,780
Income tax expense	1,373	1,244	3,144	2,120
Net income	818	2,117	152	3,660
Loss attributable to non-controlling interest	523	190	523	297
Net income attributable to Amerigon, Inc.	1,341	2,307	675	3,957
Convertible preferred stock dividends	(2,923)		(2,923)
Net income (loss) attributable to common shareholders	$ (1,582)	$ 2,307	$ (2,248)	$ 3,957
Basic earnings (loss) per share	$ (0.07)	$ 0.11	$ (0.10)	$ 0.18
Diluted earnings (loss) per share	$ (0.07)	$ 0.10	$ (0.10)	$ 0.18
Weighted average number of shares - basic	22,208	21,621	22,146	21,577
Weighted average number of shares - diluted	22,208	22,381	22,146	22,363

Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Operating Activities:
Net income	$ 152	$ 3,660
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	6,094	675
Deferred tax provision	2,286	2,024
Stock option compensation	631	641
Defined benefit plan expense	69	124
Loss from equity investment		22
Loss on revaluation of financial derivatives	1,269
Debt retirement expense	967
Excess tax benefit from equity awards	(2,217)
Changes in operating assets and liabilities:
Accounts receivable	(2,853)	(6,338)
Inventory	1,258	(366)
Prepaid expenses and other assets	368	52
Accounts payable	(1,796)	2,650
Accrued liabilities	277	432
Net cash provided by operating activities	6,505	3,576
Investing Activities:
Purchases of short-term investments		(7,127)
Sales of short-term investments	9,761	4,242
Fund restricted cash	(472)
Purchase of property and equipment	(3,247)	(498)
Patent costs	(717)	(415)
Net cash used in investing activities	(108,107)	(5,298)
Financing Activities:
Borrowing of debt	137,083
Repayments of debt	(98,859)
Cash paid for financing costs	(4,031)
Proceeds from the sale of Series C Convertible Preferred Stock	61,941
Proceeds from the sale of embedded derivatives	2,610
Excess tax benefit from equity awards	2,217
Proceeds from the exercise of Common Stock options	927	467
Net cash provided by financing activities	101,888	467
Foreign currency effect	765	27
Net decrease in cash and cash equivalents	1,051	(1,228)
Cash and cash equivalents at beginning of period	26,584	21,677
Cash and cash equivalents at end of period	27,635	20,449
Supplemental disclosure of cash flow information:
Cash paid for taxes	1,108	305
Cash paid for interest	1,445
Supplemental disclosure of non-cash transactions:
Issuance of Common Stock under the 2006 Equity Incentive Plan	606	17
W.E.T. Automotive AG [Member]
Investing Activities:
Purchase of business, net of cash acquired	$ (113,432)
Z T Plus [Member]
Investing Activities:
Purchase of business, net of cash acquired		$ (1,500)

Consolidated Condensed Statement Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2011
Common Stock [Member]
Statement [Line Items]
Balance		$ 65,148
Balance, shares		22,037
Exercise of Common Stock options for cash		$ 1,244
Exercise of Common Stock options for cash, shares		167
Common Stock issued to employees		$ 606
Common Stock issued to employees, shares		37
Comprehensive income:
Balance, shares	22,241	22,241
Balance	$ 66,998	$ 66,998
Paid-In Capital [Member]
Statement [Line Items]
Balance		20,128
Exercise of Common Stock options for cash		(317)
Tax benefit from Exercises of Common Stock options		2,217
Stock option compensation		631
Comprehensive income:
Balance	22,659	22,659
Accumulated Deficit [Member]
Statement [Line Items]
Balance		(27,832)
Convertible preferred stock dividends		(2,923)
Comprehensive income:
Net income		675
Balance	(30,080)	(30,080)
Loss On Pension Benefit Obligation [Member]
Statement [Line Items]
Balance		(84)
Comprehensive income:
Balance	(84)	(84)
Currency Translation Adjustment [Member]
Statement [Line Items]
Balance		177
Comprehensive income:
Currency translation		2,810
Balance	2,987	2,987
Total Amerigon Equity [Member]
Statement [Line Items]
Balance		57,537
Exercise of Common Stock options for cash		927
Tax benefit from Exercises of Common Stock options		2,217
Stock option compensation		631
Common Stock issued to employees		606
Convertible preferred stock dividends		(2,923)
Comprehensive income:
Total comprehensive income		3,485
Balance	62,480	62,480
Non-Controlling Interest [Member]
Statement [Line Items]
Purchase of W.E.T. Automotive AG		46,122
Comprehensive income:
Currency translation		886
Net income		(523)
Balance	46,485	46,485
Balance		57,537
Exercise of Common Stock options for cash		927
Tax benefit from Exercises of Common Stock options		2,217
Stock option compensation		631
Common Stock issued to employees		606
Convertible preferred stock dividends	(2,923)	(2,923)
Purchase of W.E.T. Automotive AG		46,122
Net income	1,341	675
Total comprehensive income		3,848
Balance	$ 108,965	$ 108,965

The Company	6 Months Ended
The Company	Jun. 30, 2011
The Company
The Company	Note 1 – The Company The Company designs, develops and markets proprietary technology electronic components and systems for sale to car and truck original equipment manufacturers ("OEMs"). As described in Note 3, the Company recently acquired a majority interest in W.E.T. Automotive Systems AG ("W.E.T."), a developer, manufacturer and distributor of heating systems, interior equipment and accessories used in automobile seats and other automotive and electronic applications in the automotive industry. The activities of W.E.T. represent a significant portion of the Company's consolidated assets, liabilities, revenues and expenses. See Note 3 for more information concerning the acquisition of W.E.T. The Company's primary product is the Climate Control Seat™ ("CCS™"), which provides year-round comfort by providing both heating and cooling to seat occupants. The Company has shipped approximately 7,900 units of its CCS product through June 2011. Although the Company markets CCS to OEMs, the Company's primary customers are the OEM's tier one seating suppliers including, Johnson Controls, Inc. ("JCI"), Lear Corporation ("Lear"), Bridgewater Interiors, LLC ("Bridgewater"), NHK Spring Company, Ltd ("NHK"), Marubeni Vehicle Corporation ("Marubeni"), Dymos Incorporated ("Dymos"), Faurecia NHK Kyushu Co. Ltd ("Faurecia NHK"), Faurecia Wuhan Auto Seating ("Faurecia Wuhan"), Tacle Seating USA ("Tacle") and Magna Seating of America, Inc. ("Magna"). Since the initial introduction of CCS, we have introduced new designs that incorporated improvements in electrical efficiency, size, weight, and noise and are more versatile. These include our Micro Thermal Module™ ("MTM™" or "MTM") technology and our CCS II configuration. Further improvements in engineering design are currently in development and are expected to be introduced on future vehicle models. In 2008, we launched a heated and ventilated only variant of the CCS. This product works in a similar fashion to our CCS, only there is no active cooling capability and no TED. In the cooling mode, the vent only system will use the ambient cabin air to provide a degree of cooling comfort to the seat occupant. In the heating mode, the vent only system will be supplemented with more traditional resistive heating elements. This system has a lower price and is targeted to certain lower cost vehicle models and certain geographical markets. In 2009, we were awarded a contract to manufacture an automotive heated and cooled cup holder for the 2011 Dodge Charger and one other vehicle program. The cup holder has been designed to be packaged in multiple configurations to accommodate different console environments. In addition to requiring low power consumption, it has proven automotive grade, ruggedness, high reliability and drink retention features. The cup holder has two cup positions that provide for separate temperature settings in each holder that allow the driver and passenger to individually control the heating or cooling of their respective beverages. The technology used in the cup holder is similar to that of the CCS system. The cup holder was launched at the end of the fourth quarter of 2010. In September 2010, we launched our actively heated and cooled suite of luxury mattresses. The mattresses provide individual controls via two wireless remotes to actively heat and cool each side of the mattress independently. We sell the mattresses through U.S. based specialty mattress retailer, Mattress Firm, Incorporated ("Mattress Firm"). Mattress Firm has over 580 retail stores located across 22 states. The new mattresses are sold under the brand name YuMe™ and are available in King and Queen sizes. The Company is also engaged in a program to improve the efficiency of TEDs and to develop, market and distribute new products based on this technology. On September 1, 2009, our subsidiary, BSST LLC ("BSST") entered into a partnership agreement with 5N Plus Inc., a Canadian corporation specializing in production of high-purity metals ("5N Plus"), to form ZT Plus. ZT Plus' objective is the development and testing of new materials that show increased thermoelectric efficiency. BSST purchased 5N Plus' 50% ownership of ZT Plus in March 2010 and is now the 100% owner. On October 1, 2010, we formed Amerigon Europe GmbH ("Amerigon Europe") and opened a technical support office in Augsburg, Germany, to provide design initiatives, product development, application engineering and prototype builds in support of European sales. As described in Note 3, on May 16, 2011 the Company acquired a majority interest in W.E.T., a German publicly traded company based in Odelzhausen, Germany. W.E.T. was established in 1968 and currently employs approximately 5,000 individuals at 11 locations. W.E.T.'s customers include passenger car OEMs, commercial vehicle OEMs and Tier 1 seat manufacturers. W.E.T.'s primary product categories include automotive seat comfort systems and specialized automotive cable systems. The automotive seat comfort systems category includes automotive seat heaters, climate comfort systems (similar to Amerigon's climate controlled seat technology) for automotive seats, automotive steering wheel heater systems and integrated electronic components. The specialized automotive cable systems category includes ready-made wire harnesses and related wiring products. W.E.T. has been a manufacturer in the seat comfort segment since 1973. W.E.T.'s primary customers are Tier 1 suppliers: Johnson Controls, Lear, Faurecia, and Magna, and large automotive original equipment manufacturers: the VW Group, General Motors, BMW, Porsche, Honda, and Toyota / Lexus. W.E.T. also offers product solutions to other customer groups, namely customer groups related to seat heating equipment for the automotive aftermarket, ski lifts and sports stadiums and the production of ventilation systems for the automotive and various other industries. These operations complement W.E.T.'s automotive seat comfort products, particularly in seat climate comfort systems, in which ventilation systems represent a material part. Furthermore, W.E.T.'s customer base for these other products extends beyond the automotive industry to the telecommunications and information technology industries. Historically, the majority of W.E.T.'s sales volumes have been derived from European and North American OEMs. However, in the past three years, Asian automobile sales have increased due to the growth in that geographic segment, and North American sales volumes have increased due to increased penetration into the North American market as heated seats have become a standard feature on an increased number of vehicle models. W.E.T. maintains a global operational structure with manufacturing sites close to its key customers. W.E.T.'s European operations are primarily concentrated around its headquarters and customer service center in Odelzhausen, as well as its Hungarian and Ukrainian sites. W.E.T. operates three sites in North America, a customer service and research center located in Windsor, Canada, a warehouse facility located in Del Rio, Texas and a production site located in Acuña, Mexico. In Asia, W.E.T. operates a low-cost production facility including customer service and research and development functions in Langfang, China and representative offices in Seoul, South Korea and Tokyo, Japan. W.E.T.'s China operation was established in 2003 and serves the South Korean, Japanese, Chinese and certain European markets. The Company has evaluated subsequent events through the date that the consolidated condensed financial statements were issued. No events have taken place that meet the definition of a subsequent event that requires adjustment to or disclosure in this filing.

Basis Of Presentation And New Accounting Pronouncements	6 Months Ended
Basis Of Presentation And New Accounting Pronouncements	Jun. 30, 2011
Basis Of Presentation And New Accounting Pronouncements
Basis Of Presentation And New Accounting Pronouncements	Note 2 – Basis of Presentation and New Accounting Pronouncements The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation have been included. The balance sheet as of December 31, 2010 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the three and six month periods ended June 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2010 included in our Annual Report on Form 10-K. *Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.* In May 2011, the FASB issued ASU No. 2011-04 which amends Topic 820 (Fair Value Measurement). ASU No. 2011-04 is intended to provide a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. The amendments in ASU No. 2011-04 include changes regarding how and when the valuation premise of highest and best use applies, the application of premiums and discounts, and new required disclosures. ASU No. 2011-04 is to be applied prospectively upon adoption and is effective for interim and annual periods beginning after December 15, 2011 with early adoption prohibited. While the adoption of ASU No. 2011-04 is not expected to have a material impact on our consolidated condensed financial statements, we expect that it will expand our disclosures related to fair value measurements. *Presentation of Comprehensive Income.* In June 2011, the FASB issued ASU No. 2011-05 which amends Topic 220 (Comprehensive Income). ASU No. 2011-05 is intended to enhance comparability between entities that report under US GAAP and those that report under IFRS, and to provide a more consistent method of presenting non-owner transactions that affect an entity's equity. ASU No. 2011-05 eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. The amended guidance allows an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-05 is to be applied retrospectively upon adoption and is effective for interim and annual periods beginning after December 15, 2011 with early adoption permitted. We expect the adoption of ASU No. 2011-05 will change the presentation of our consolidated financial statements.

W.E.T. Acquisition

6 Months Ended

Jun. 30, 2011

W.E.T. Acquisition

W.E.T. Acquisition

Note 3 – W.E.T. Acquisition

On May 16, 2011, the Company completed the previously announced acquisition of W.E.T. through our wholly-owned subsidiary, Amerigon Europe GmbH. A total of 2,316,175 shares, representing 76.19 percent of the outstanding voting stock of W.E.T., were tendered to Amerigon in response to Amerigon's tender offer of €40 per share. An additional 2,903 shares were tendered at the same price on May 26, 2011 pursuant to an additional acceptance period of the tender offer bringing the total percentage acquired to 76.28. The total purchase price for the acquisition was €92,763, or $130,889, in cash plus the assumption of €36,322, or $51,570, in debt obligations less €12,372, or $17,457, in cash acquired.

As described in Note 1, W.E.T develops, manufactures and distributes heating systems, interior equipment and accessories used in automobile seats and other automotive and electronic applications in the automotive industry. The acquisition is an important strategy for our Company, as we become better positioned to meet the needs of the global automotive market. Bringing together the technical strengths, resources, and diverse product offerings of both companies will allow us to be more responsive to customer requests and requirements.

Prior to the acquisition, Amerigon and W.E.T. were engaged in lawsuits concerning intellectual property. These lawsuits were settled upon consummation of the acquisition. No gain or loss for the lawsuit was recorded in conjunction with the W.E.T. acquisition.

Simultaneous with the execution of the SPA, we and Amerigon Europe also entered into a Business Combination Agreement (the "BCA" collectively, with the SPA, the "Acquisition Agreements") with W.E.T. setting forth the terms and conditions governing our and W.E.T.'s conduct. Among other things, the BCA provides that W.E.T. shall continue to be operated as a separate business and remain a separate legal entity and subsidiary of Amerigon Europe, until certain conditions are satisfied. In addition, W.E.T. management shall remain substantially unchanged up to and until the occurrence of certain conditions specified in the BCA.

Purchase Price Allocation

The purchase price of approximately $130,889, net of cash acquired of $17,457, has been allocated to the fair values of assets and liabilities acquired as of May 16, 2011. The allocation of the purchase price is preliminary pending the completion of various analyses and the finalization of estimates. An appraisal will be completed to assist management in determining the fair value of acquired assets and liabilities, including identifiable intangible assets. The final purchase price allocation may result in a materially different allocation than that recorded. Such allocation is as follows:


Accounts receivable	$	56,862
Inventory		38,560
Derivative financial instruments		5,862
Deferred income tax assets		26,161
Assets held for sale		10,462
Order backlog		3,073
Prepaid expenses and other assets		8,861
Property and equipment		37,520
Customer relationships		82,823
Technology		23,092
Product development costs		17,859
Goodwill		24,922
Other non-current assets		1,524
Assumed liabilities		(126,457	)
Non-controlling interest		(46,122	)
Assumed debt obligations		(51,570	)

Net assets acquired		113,432
Cash acquired		17,457

Purchase price	$	130,889

The gross contractual amount due of accounts receivable is $59,438 of which $2,576 is expected to be uncollectible.

Supplemental Pro Forma Information

Results of operations for W.E.T. are included in the Company's consolidated condensed financial statements beginning May 16, 2011. The unaudited pro forma combined historical results for the amounts of W.E.T.'s revenue and earnings that would have been included in the Company's consolidated condensed statements of operations had the acquisition date been January 1, 2011 or January 1, 2010 are as follows:


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011			2010		2011		2010
Product revenues	$	119,150		$	97,981	$	245,505	$	193,012
Net income (loss)		(910	)		58		4,502		10,401

The pro forma information includes adjustments for interest expense on debt incurred in conjunction with the acquisition, depreciation and the effect of the amortization of intangible assets recognized in the acquisition. This pro forma information is not necessarily indicative of future operating results.

Goodwill

We recorded goodwill of approximately $27,664 arising from the acquisition. It is estimated that none of the goodwill recognized will be deductible for income tax purposes.

Intangible assets

In conjunction with the acquisition, intangible assets of $126,847 were recorded. The Company's estimate of the fair value of these intangible assets at the time of the acquisition is preliminary and will be determined with the assistance of an independent third-party valuation firm. As part of the estimated valuation, an estimated useful life for the intangible assets was determined.

Intangible assets, net consisted of the following (balances are higher as of June 30, 2011 than as of May 16, 2011, the acquisition date, due to fluctuations in foreign currency exchange rates totaling $2,424):


	June 30, 2011
	Gross Value		Accumulated Amortization			Net Value		Useful Life
Customer relationships	$	84,440	$	(1,079	)	$	83,361		10-15 yrs
Order backlog		3,133		(1,567	)		1,567		0.5 yrs
Technology		23,543		(452	)		23,090		8-9 yrs
Product Development Costs		18,155		(125	)		18,030		4 yrs

Total	$	129,271	$	(3,223	)	$	126,048

Amortization of $3,142 for the three months ended June 30, 2011 was recorded as follows:


Product revenues	$	(1,052	)
Cost of sales		563
Selling, general and administrative expense		1,527

Amortization expense by year is estimated to be as follows:


July 1, 2011 through December 31, 2011	$	8,602
2012		14,586
2013		14,641
2014		14,641
2015		13,605

Property, Plant & Equipment

Property and equipment consist of the following:


Asset category	Useful life		Amount
Land		Indefinite	$	2,145
Buildings and improvements		20 yrs		12,134
Machinery and equipment		5-7 yrs		14,867
Office furniture and equipment		2-5 yrs		2,560
Computer software		3-5 yrs		5,814

			$	37,520

Non-controlling interest

We recorded the portion of W.E.T. not acquired totaling 23.72 percent at its estimated fair value which was determined by discounted earnings method.

Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 4 – Earnings per Share

Basic earnings per common share are computed by dividing net income by the weighted average number of shares of stock outstanding.

The Company's diluted earnings per common share give effect to all potential shares of Common Stock outstanding during a period that are not anti-dilutive. In computing the diluted earnings per share, the treasury stock and if converted methods are used in determining the number of shares assumed to be purchased from the conversion of Common Stock equivalents. The following summarizes the shares included in the dilutive shares as disclosed on the face of the consolidated condensed statements of operations:


	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Weighted average number of shares for calculation of basic EPS – Common Stock		22,208,454		21,621,137		22,146,231		21,577,039
Impact of stock options outstanding under the 1993, 1997 and 2006 Stock Option Plans		—		759,848		—		786,138

Weighted average number of shares for calculation of diluted EPS		23,208,454		22,380,985		22,146,231		22,363,177

The accompanying table represents Common Stock issuable upon the exercise of certain stock options, the Series C Convertible Preferred Stock and potential dividends paid in common stock that have been excluded from the diluted shares calculation because the effect of their inclusion would be anti-dilutive.


	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Stock options outstanding under the 1993, 1997 and 2006 Stock Option Plans		2,060,272		474,485		2,060,272		456,485
Series C Convertible Preferred Stock		4,931,161		—		4,931,161		—

		6,991,433		474,485		6,991,433		456,485

Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

Note 5 – Segment Reporting

Segment information is used by management for making operating decisions and assessing the performance of the Company. Management evaluates the performance of its segments based primarily on operating income.

The Company's reportable segments are as follows:

•

Climate Control Seats (CCS) – variable temperature seat climate control system designed to improve the temperature comfort of automobile passengers. This segment also includes the heated and cooled cup holder and heated and cooled mattress divisions which results are not currently individually significant.

•

Advanced Technology (formerly BSST) – a division engaged in a research and development effort to improve the efficiency of thermoelectric devices and to develop, market and distribute products based on this new technology.

•

W.E.T. Automotive AG (W.E.T.) – The W.E.T. acquisition is being evaluated currently as an individual segment until such time as Amerigon is able to fully evaluate and implement its future integration plans and strategy.

The tables below present segment information about the reported product revenues and operating income of the Company for the three and six month periods ended June 30, 2011 and 2010. Asset information by reportable segment is not reported for Amerigon since the Company does not manage assets for Amerigon at a segment level.


Three Months Ended June 30,	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2011:
Product revenues	$	31,696	$	264		$	45,177	$	—		$	77,137
Depreciation and amortization		233		142			5,060		269			5,704
Operating income (loss)		7,851		(1,453	)		2,160		(4,534	)		4,024
2010:
Product revenues	$	28,686	$	126		$	—	$	—		$	28,812
Depreciation and amortization		190		136			—		27			353
Operating income (loss)		7,924		(2,082	)		—		(2,491	)		3,351

The Advanced Technology operating loss for the three months ended June 30, 2011 and 2010 is net of $154 and $528, respectively, of reimbursed research and development costs. Reconciling items include acquisition transaction costs and Amerigon's corporate selling, general and administrative costs.

Six Months Ended June 30,	CCS		Advanced Technology			W.E.T.		Reconciling Items			Consolidated Total
2011:
Product revenues	$	67,247	$	509		$	45,177	$	—		$	112,933
Depreciation and amortization		469		285			5,060		280			6,094
Operating income (loss)		17,410		(3,025	)		2,160		(11,652	)		4,893
2010:
Product revenues	$	52,793	$	207		$	—	$	—		$	53,000
Depreciation and amortization		375		244			—		56			675
Operating income (loss)		13,784		(3,103	)		—		(4,951	)		5,730

The Advanced Technology operating loss for the six months ended June 30, 2011 and 2010 is net of $346 and $1,703, respectively, of reimbursed research and development costs. Reconciling items include acquisition transaction costs and Amerigon's corporate selling, general and administrative costs.

Product revenues information by geographic area:


	Three Months
	Ended March 31,
	2011				2010
United States	$	23,899	31	%	$	11,409	40	%
South Korea		10,268	13	%		4,941	17	%
Germany		8,372	11	%		126	0	%
Mexico		7,024	9	%		3,164	11	%
China		6,010	8	%		520	2	%
Japan		3,325	4	%		5,672	20	%
Canada		2,896	4	%		836	3	%
Czech Republic		2,739	3	%		—	—
United Kingdom		2,418	3	%		2,112	7	%
Other		10,186	14	%		32	0	%

Total product revenues	$	77,137	100	%	$	28,812	100	%


	Six Months
	Ended June 30,
	2011				2010
United States	$	35,567	31	%	$	21,406	40	%
South Korea		19,322	17	%		7,938	15	%
Mexico		12,998	12	%		6,117	12	%
Japan		9,077	8	%		10,243	19	%
Germany		8,603	8	%		207	0	%
China		6,126	5	%		767	2	%
Canada		4,195	4	%		2,065	4	%
United Kingdom		4,120	4	%		4,226	8	%
Czech Republic		2,739	2	%		—	—
Other		10,186	9	%		31	0	%

Total product revenues	$	112,933	100	%	$	53,000	100	%

ZT Plus

6 Months Ended

Jun. 30, 2011

ZT Plus

ZT Plus

Note 6 – ZT Plus

On September 1, 2009, the Company's subsidiary, BSST, and 5N Plus, a developer and producer of high-purity metals and compounds for electronic applications, formed a joint venture called ZT Plus. ZT Plus was formed as a general partnership with each of BSST and 5N Plus holding a 50% ownership interest. BSST and its university partners have performed extensive research into the development of the next generation of thermoelectric ("TE") materials. They have successfully developed materials that, in small quantities and under certain specific conditions, significantly outperform the best presently available TE materials. The mission of ZT Plus is to allow for the completion of the development of these advanced materials and the creation of innovative manufacturing capabilities to produce the materials in volume, and in a cost-efficient manner. These materials are intended to enable the use of TE technology in a wide variety of heating and cooling and power generation applications for the industrial, consumer, medical, electronics and automotive markets.

BSST's initial contribution in ZT Plus, which gave it a 50% ownership percentage, was comprised of certain intellectual property, intellectual property rights and laboratory equipment, along with organizational and formation costs and totaled $508. Our partner, 5N Plus, received an equal ownership percentage by providing a commitment to fund the venture's operating and capital expenditures up to a certain amount. We accounted for this initial investment under the equity method. BSST's 50% share of ZT Plus' operating losses since the venture's inception reduced this balance to zero prior to March 1, 2010. We recorded this as loss on equity investment during the fourth quarter of 2009 and the first quarter of 2010.

During March 2010, BSST agreed to purchase all of 5N Plus' 50% equity for $1,600 effective March 1, 2010. We recorded the purchase as follows:


Cash	$	100
Receivable from 5N Plus		509
Research equipment		1,308
Deposits		10
Licenses and patents		283
Payable to BSST		(516	)
Accrued liabilities		(94	)

Total purchase price	$	1,600

We plan on continuing the research activities of the venture and began to fund its ongoing operating expenses beginning on March 1, 2010.

Series C Convertible Preferred Stock

6 Months Ended

Jun. 30, 2011

Series C Convertible Preferred Stock

Series C Convertible Preferred Stock

Note 7 – Series C Convertible Preferred Stock

On March 31, 2011, we issued 7,000 shares of our Series C Convertible Preferred Stock (each a "Preferred Share" and, collectively, the "Preferred Shares") having an initial stated value of $10,000 per Preferred Share, subject to adjustment. We received approximately $64,013 in net proceeds from the sale, after deducting placement agent fees and other offering expenses which totaled $5,987. We used the net proceeds from this offering to fund, in part, the W.E.T. acquisition.

If the W.E.T. acquisition had not completed prior to July 1, 2011, we would have redeemed all of the Series C Convertible Preferred Stock then outstanding, at a redemption price equal to 102.5% ("No Acquisition Redemption Premium") of the aggregate stated value of the Series C Convertible Preferred Stock, plus accumulated and unpaid dividends up to, but not including, the redemption date. We would have also then issued certain warrants ("No Acquisition Warrants"). The No Acquisition Redemption Premium and No Acquisition Warrants represent embedded liability derivatives and have been bifurcated for recording purposes. The estimated fair value of the No Acquisition Redemption Premium and the No Acquisition Warrants as of the issue date were $700 and $1,910, respectively. Since the W.E.T. acquisition was completed by July 1, 2011, the No Acquisition Redemption Premium expired and the No Acquisition Warrants will not be issued and therefore the fair value was equal zero at June 30, 2011.

The liquidation preference with respect to each share of Series C Convertible Preferred Stock is the greater of (i) the sum of the stated value, accrued and unpaid dividends and the amount of all future dividends through the maturity date that would have been received in the absence of liquidation; and (ii) an amount that a holder would have received in liquidation had the Series C Convertible Preferred Stock been converted immediately prior to the event of liquidation.

Holders of the Series C Convertible Preferred Stock are entitled to receive, out of funds legally available therefore, dividends payable in cash (if permitted under the Bank of America credit facility), our Common Stock (if certain equity conditions are satisfied or waived as of the applicable date), or any combination thereof, at the election of the Company, at the rate of 8% per annum of the stated value, payable quarterly in arrears on September 1, December 1, March 1 and June 1 of each year, commencing September 1, 2011. Dividends on our Series C Convertible Preferred Stock are cumulative from the date of initial issuance.

We will redeem the Series C Convertible Preferred Stock in nine equal quarterly installments beginning on September 1, 2011 and ending on September 1, 2013 (each, an "Amortization Date") by paying cash, issuing shares of our Common Stock or any combination thereof for $10,000 per Preferred Share plus accumulated and unpaid dividends.

We may, at our option, elect to pay the quarterly amortization amount on each Amortization Date if certain conditions are satisfied or waived as of the relevant notice date through the relevant Amortization Date, in shares of common stock, in cash (if permitted under the Bank of America credit facility), or in any combination of shares and cash. To the extent that we pay all or any portion of a quarterly amortization amount in shares of common stock, if the equity conditions are satisfied or waived as of the applicable notice date through the applicable Amortization Date, we will deliver on the applicable Amortization Date a number of shares of common stock equal to (i) the applicable quarterly installment amount being paid in shares of common stock divided by the lower of (A) the conversion price for the Series C Convertible Preferred Stock and (B) the Market Price (as defined below) determined as of the applicable Amortization Date less (ii) any Pre-Installment Shares (as defined below) with respect to such installment. If we pay all or any portion of a quarterly amortization amount in shares of common stock, we will be required to deliver a number of shares of common stock to the holders of the Series C Convertible Preferred Stock twenty three (23) trading days prior to the applicable Amortization Date equal to the portion of applicable quarterly amortization amount determined by us to be paid in shares of common stock divided by the lower of (A) the conversion price for the Series C Convertible Preferred Stock and (B) the Market Price determined as of the trading day prior to such date (such shares "Pre-Installment Shares").

The "Market Price" means a ten percent (10%) discount to the arithmetic average of the lowest fifteen (15) volume weighted average prices of the common stock during the twenty (20) consecutive trading day period ending two (2) trading days prior to each applicable date of determination.

Holders of the Series C Convertible Preferred Stock may convert their shares at any time into shares of common stock at a conversion price of $15.83, including the conversion of accrued but unpaid dividends per Preferred Share then remaining into shares of common stock, and in addition will be entitled to a make-whole amount that would apply in a conversion (reflecting dividends that would have been payable through maturity if the Series C Convertible Preferred Stock had remained outstanding); provided, however, that under certain conditions where our Bank of America credit facility prohibits payment of the make-whole amount, we will only be obligated to pay such make-whole amount at the time such amount, or portion thereof, would have been due to be paid as a dividend as if the Series C Convertible Preferred Stock at issue had not been converted.

The Series C Convertible Preferred Stock is subject to mandatory redemption at the election of a holder upon the occurrence of certain triggering events as defined by the certificate of designation filed with the State of Michigan setting forth the terms of the Preferred Shares. The redemption price per Preferred Share in these circumstances would be the greater of (i) 125% of the stated value plus accrued dividends, and (ii) the conversion rate then in effect (which rate reflects the number of shares of common stock into which each share of the holder's Series C Convertible Preferred Stock may be converted) multiplied by the highest closing sale price of our common stock during the period beginning immediately prior to the triggering event and ending on the date the holder delivers a notice of redemption, plus in each case the additional make-whole amount that would apply in a conversion (reflecting dividends that would have been payable through maturity if the Preferred Shares had remained outstanding).

Holders of Series C Convertible Preferred Stock do not have any voting rights except as specifically provided in our articles of incorporation or as otherwise required by law.

With respect to dividend rights and rights upon liquidation, winding up or dissolution, our Series C Convertible Preferred Stock will be:

•

junior to all of our existing and future indebtedness;

•

junior to each other class or series of our capital stock other than (i) our common stock and any other class or series of our capital stock the terms of which provide that such class or series will rank junior to the Preferred Shares and (ii) any other class or series of our capital stock, the terms of which provide that such class or series will rank on parity with the Preferred Shares;

•

on parity with any class or series of our capital stock the terms of which provide that such class or series will rank on parity with the Preferred Shares;

•

senior to our common stock and any other class or series of our capital stock the terms of which provide that such class or series will rank junior to the Preferred Shares; and

•

effectively junior to all of our subsidiaries' (i) existing and future liabilities and (ii) capital stock held by others.

Pursuant to the terms of the Series C Convertible Preferred Stock, we will not, without the prior written consent of holders of the Series C Convertible Preferred Stock, incur indebtedness in excess of (i) $150 million (with any amount thereunder in Euro converted to U.S. Dollars at the exchange rate on the date of initial issuance of the Preferred Shares) under the Bank of America credit facility and (ii) the aggregate amount of additional indebtedness permitted under the Bank of America credit facility.

Debt

6 Months Ended

Jun. 30, 2011

Debt

Debt

Note 8 – Debt

On March 30, 2011, we and Amerigon Europe entered into a new credit agreement with a syndicate of banks led by Bank of America (the "US Bank of America credit facility") and W.E.T. and W.E.T. Automotive Systems Ltd., a Canadian corporation wholly owned by W.E.T., entered into a credit facility with the same syndicate of banks (the "W.E.T. Bank of America credit facility"). We cancelled our then existing credit facility with Comerica Bank. In conjunction with the cancellation, we entered into a pledge and security agreement with Comerica Bank and deposited $472 as collateral for an outstanding letter of credit. The cash deposit is included in restricted cash on the consolidated condensed balance sheet as of June 30, 2011.

The US Bank of America credit facility provides two term notes (referred to as the "US Term Note and Europe Term Note") and a $25,000 revolving line of credit note ("US Revolving Note"). The W.E.T. Bank of America credit facility provides W.E.T. with a €30,000 term note ("W.E.T. Term Note") and a €10,000 revolving line of credit note ("W.E.T. Revolving Note").

We and W.E.T. borrowed the following amounts on each note:


Borrowing proceeds on March 31, 2011	Currency Borrowed		US Dollars
US Term Note	$	35,000	$	35,000
Europe Term Note ⁽¹⁾	€	23,426		33,000
US Revolving Note	$	19,011		19,011

Borrowing proceeds on May 31, 2011
W.E.T. Term Note ⁽¹⁾	€	30,000		42,072
W.E.T. Revolving Note	€	—		—

Total borrowed			$	129,083

(1)	The Europe Term Note and the W.E.T. Term Note were drawn and are denominated in the European Euro.

Proceeds of the US Term Note, Europe Term Note and the US Revolving Note were used along with existing cash reserves and proceeds from the sale of the Company's Series C Convertible Preferred Stock to fund an escrow account sufficient to acquire 100% of the outstanding stock of W.E.T. in accordance with a tender offer. The tender offer resulted in our acquiring only 76.3% of W.E.T. The excess amount held in escrow, totaling approximately $49,700, was used to repay a portion of the Europe Term Note and a portion of the then outstanding revolving line of credit totaling €19,948 and $21,767, respectively.

The W.E.T. Term Note proceeds were used to repay then existing senior indebtedness.

In addition to the initial borrowing under the US Revolving Note, we made $8,000 in additional borrowings and $27,011 in repayments. No amounts were outstanding under either the US Revolving Note or the W.E.T. Revolving Note and $25,000 and €10,000 were available under each note, respectively.

The Company incurred $4,184 in expenses associated with the US Bank of America credit facility which has been recorded as deferred financing costs. A portion of these expenses related to that portion of the European Term Note that was repaid, totaling $967, has been charged to expense as debt retirement expense. The remaining balance will be amortized over the life of the credit agreement using the effective interest method. The US Bank of America credit facility expires on March 30, 2016.

The US Term Note and Europe Term Note are subject to quarterly principal payments, with total principal amortization of 10% of the original principal amount in the first year and amortization of 12.5%, 15%, 17.5% and 20% of the original principal amount during years two, three, four and five, respectively with all remaining amounts owing under each term facility due and payable in full at the term loan maturity date. The W.E.T. Term Note is subject to quarterly principal payments totaling 20% annually. Principal outstanding under both the US Bank of America credit facility and W.E.T. Bank of America credit facility will be due and payable in full on March 30, 2016. Interest is payable at least quarterly. The Company has the option to elect interest rates based on either a Eurocurrency (LIBOR or EUIBOR) rate ("Eurocurrency Rate Loans") (0.20% – 1.80% at June 30, 2011) or a base rate ("Base Rate Loans") plus a margin ("Applicable Rate") which, after an initial period will vary based on the Consolidated Leverage Ratio of the Company, as defined by the Bank of America credit agreement. This initial period will end during the fourth quarter of 2011. The base rate is equal to the highest of the Federal Funds Rate (0.1% at June 30, 2011) plus 0.5%, Bank of America's prime rate (3.25% at June 30, 2011), or a one month Eurocurrency rate plus 1.0%. The Applicable Rate during the initial period is 3.25% for Eurocurrency Rate Loans and 2.25% for Base Rate Loans.

The Company must maintain certain financial ratios including a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Leverage Ratio as defined by the Bank of America credit agreement. The loans are secured by all of the Company's assets.

As of June 30, 2011, we were in compliance with all terms as outlined in the credit agreement for each of the US Bank of America credit facility and the W.E.T. Bank of America credit facility.

The following table summarizes the Company's debt at June 30, 2011.


	Interest Rate			Principal Balance
US Term Note		3.44	%	$	35,000
Europe Term Note		4.53	%		5,002
US Revolving Note		—			—
W.E.T. Term Note		4.29	%		43,156
W.E.T. Revolving Note		—			—
Bank of China Loan		5.31	%		2,773
Capital Leases		5.50	%		5,183

Total debt					91,114
Current portion					(18,251	)

Long-term debt, less current maturities				$	72,863

We had no outstanding debt at December 31, 2010.

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2011

Derivative Financial Instruments

Derivative Financial Instruments

Note 9 – Derivative Financial Instruments

We are exposed to market risk from changes in foreign currency exchange rates, short term interest rates and price fluctuations of certain material commodities such as copper. Foreign currency exchange risks are attributable to sales to foreign customers not denominated in the seller's functional currency, foreign plant operations, intercompany indebtedness and purchases from foreign suppliers and include exposures to the European Euro, Japanese Yen, Canadian Dollar, and Mexican Peso. The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from this risk by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. We do not enter into derivative financial instruments for speculative or trading purposes. Our hedging relationships are formally documented at the inception of the hedge, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions both at the inception of a hedge and on an ongoing basis. We record the ineffective portion of hedging instruments, if any, to other income (expense) in the consolidated condensed statements of operations.

While W.E.T. continuously monitors the hedging program, derivative positions and hedging strategies and maintains documentation as to the hedging objectives, practices and procedures, W.E.T. has not typically designated its derivatives as hedging instruments for accounting purposes.

In March 2008, W.E.T. entered into a 10 year currency related interest rate swap ("CRS") having a notional value of €10,000, or $14,385 as of June 30, 2011, in order to offset the interest rate risk associated with a debt financing which was repaid prior our acquisition of W.E.T. Under this agreement W.E.T. receives interest equal to the then six month Euro Interbank Offered Rate ("EUIBOR"), 1.80% at June 30, 2011, plus 1.40% and pays interest equal to the six month EUIBOR when the exchange rate between the European Euro ("EUR") and the Swiss Franc ("CHF"), which was 1.19 at June 30, 2011, equals or exceeds 1.46 EUR to the CHF or pays interest equal to the six month EURIBOR plus a premium when this exchange rate is less than 1.46. The premium is calculated as [(1.46 – current EUR/CHF rate)/current EUR/CHF rate] x 100. W.E.T. has entered into offsetting derivative contracts that cancel out the payment due under the CRS through 2012.

Information related to the fair values of derivative instruments in our consolidated balance sheet as of June 30, 2011 are as follows:


	Asset Derivatives				Liability Derivatives			Net
	Balance Sheet Location		Fair Value		Balance Sheet Location	Fair Value
CRS					Current liabilities	$	2,955
					Non current liabilities		22,473

Total CRS						$	25,428	$	25,482
Foreign currency derivatives		Current assets	$	7,270	Current liabilities	$	37	$	7,233
Commodity derivatives		Current assets	$	139				$	139

At December 31, 2010, we had no outstanding forward contracts.

Information related to the effect of derivative instruments on our consolidated income statements is as follows:


	Location	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Foreign currency derivatives	Cost of sales	$	(18	)	$	(15	)
	Revaluation of derivatives		1,296		$	1,296
	Foreign currency gain (loss)		353			353

Total foreign currency derivatives		$	1,631		$	1,634
CRS	Revaluation of derivatives	$	(5,311	)	$	(5,311	)
Commodity derivatives	Revaluation of derivatives	$	136		$	136
Series C Convertible Preferred Stock embedded derivatives (see Note 7)	Revaluation of derivatives	$	2,610		$	2,610

	Location	Three Months Ended June 30, 2010			Six Months Ended June 30, 2010
Foreign currency derivatives	Cost of sales	$	5		$	23

Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

Note 10 – Income Taxes

The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following:


	June 30, 2011			December 31, 2010
Deferred tax assets:
Net operating losses	$	15,054		$	7,395
Research and development credits		3,212			3,063
Accounts receivable		476			—
Inventory		449			—
Valuation reserves and accrued liabilities		13,004			1,699
Other credits		820			722
Property and equipment		5,439			293
Intangible assets		177			—
Deferred revenue		—			18
Other		1,487			1,032

		40,118			14,222

Deferred tax liabilities:
Intangible assets		(29,520	)		(913	)
Property and equipment		(220	)		(202	)
Accounts receivable		(433	)		(322	)
Inventory		(102	)		—
Valuation reserves and accrued liabilities		(1,993	)		—
Other		(5,031	)		(22	)

		(37,299	)		(1,459	)
Valuation allowance		(6,579	)		(6,579	)

Net deferred tax liability	$	(3,760	)	$	6,184

Reconciliations between the statutory Federal income tax rate of 34% and the effective rate of income tax expense are as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Statutory Federal income tax rate		34.0	%		34.0	%		34.0	%		34.0	%
Increase (Decrease) resulting from:
Effect of different tax rates of foreign jurisdictions		11.1	%		—			7.3	%		—
State and local tax, net of federal benefit		14.9	%		3.9	%		15.2	%		3.9	%
Nondeductible acquisition transaction expenses		—			—			38.7	%		—
Other Nondeductible expenses		5.4	%		0.5	%		4.1	%		0.5	%
Nondeductible stock option compensation		1.3	%		1.4	%		1.7	%		1.4	%
R&D Credits		(4.6	%)		(3.1	%)		(6.2	%)		(3.1	%)
Other		0.6	%		0.3	%		0.6	%		—

Effective rate		62.7	%		37.0	%		95.4	%		36.7	%

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Consolidated Condensed Balance Sheets
Accounts receivable, allowance	$ 915	$ 545
Common stock, par value
Common stock, shares authorized	55,000,000	55,000,000
Common stock, shares issued	22,241,030	22,037,446
Common stock, shares outstanding	22,241,030	22,037,446

Fair Value Measurement	6 Months Ended
Fair Value Measurement	Jun. 30, 2011
Fair Value Measurement
Fair Value Measurement	Note 11 – Fair Value Measurement The Company bases fair value is on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have adopted a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and also considers counterparty credit risk in its assessment of fair value. The Company's financial assets and liabilities that are carried at fair value at June 30, 2011 include its asset and liability derivatives (see Note 9) which are valued under Level 2. The Company's had no financial assets or liabilities carried at fair value at December 31, 2010. The Company has chosen not to elect the fair value option for its financial assets and liabilities that had not been previously carried at fair value. Therefore, material financial assets and liabilities not carried at fair value, such as the Company's trade accounts receivable, trade accounts payable and debt are still reported at their face values.