Segment Reporting

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

14. Segment Reporting

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer.

The Company has three reportable segments, Control Devices, Electronics and Stoneridge Brazil, which also represent its operating segments. The Control Devices reportable segment produces actuators, sensors, switches and connectors. The Electronics reportable segment produces driver information systems, camera-based vision systems, connectivity and compliance products and electronic control units. The Stoneridge Brazil reportable segment designs and manufactures vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices and telematics solutions.

The accounting policies of the Company’s reportable segments are the same as those described in Note 2. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and operating income. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable. Such costs and eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as accounting/finance, executive administration, human resources, information technology and legal.

A summary of financial information by reportable segment is as follows:

Year ended December 31	2019		2018		2017
Net Sales:
Control Devices	$	431,560	$	441,297	$	447,528
Inter-segment sales		6,438		8,348		5,044
Control Devices net sales		437,998		449,645		452,572
Electronics		335,195		344,727		282,383
Inter-segment sales		33,735		37,126		39,501
Electronics net sales		368,930		381,853		321,884
Stoneridge Brazil		67,534		80,175		94,533
Inter-segment sales		6		2		563
Stoneridge Brazil net sales		67,540		80,177		95,096
Eliminations		(40,179)		(45,476)		(45,108)
Total net sales	$	834,289	$	866,199	$	824,444
Operating Income (Loss):
Control Devices	$	73,327	$	64,191	$	72,555
Electronics		25,006		28,236		18,119
Stoneridge Brazil		6,539		4,989		2,661
Unallocated Corporate (A)		(33,591)		(30,412)		(35,965)
Total operating income	$	71,281	$	67,004	$	57,370
Depreciation and Amortization:
Control Devices	$	13,397	$	11,914	$	10,887
Electronics		9,872		8,982		8,143
Stoneridge Brazil		6,338		7,443		8,316
Unallocated Corporate		1,252		852		584
Total depreciation and amortization (B)	$	30,859	$	29,191	$	27,930
Interest Expense, net:
Control Devices	$	811	$	76	$	103
Electronics		350		85		119
Stoneridge Brazil		208		824		1,812
Unallocated Corporate		2,955		3,735		3,749
Total interest expense, net	$	4,324	$	4,720	$	5,783
Capital Expenditures:
Control Devices	$	12,646	$	16,737	$	17,484
Electronics		15,476		5,965		8,158
Stoneridge Brazil		5,003		3,242		3,831
Unallocated Corporate(C)		2,699		3,083		2,697
Total capital expenditures	$	35,824	$	29,027	$	32,170

As of December 31	2019		2018
Total Assets:
Control Devices	$	191,491	$	175,708
Electronics		285,027		265,838
Stoneridge Brazil		89,393		81,002
Corporate (C)		358,766		359,837
Eliminations		(322,468)		(322,866)
Total assets	$	602,209	$	559,519

The following table presents net sales and long-term assets for the geographic areas in which the Company operates:

Year ended December 31	2019		2018		2017
Net Sales:
North America	$	457,633	$	480,511	$	471,770
South America		67,534		80,175		94,533
Europe and Other		309,122		305,513		258,141
Total net sales	$	834,289	$	866,199	$	824,444

As of December 31	2019		2018
Long-term Assets:
North America	$	87,430	$	86,763
South America		52,518		45,408
Europe and Other		130,995		107,171
Total long-term assets	$	270,943	$	239,342

(A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation.

(B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

(C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed and leased assets for the headquarter building, information technology assets, equity investments and investments in subsidiaries.