Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

(13) 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 electronic 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, “Summary of Significant Accounting Policies” of the Company’s 2019 Form 10-K. 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 corporate accounting/finance, executive administration, human resources, information technology and legal.

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

Three months ended March 31,	2020		2019
Net Sales:
Control Devices	$	96,850	$	110,119
Inter-segment sales		1,347		1,861
Control Devices net sales		98,197		111,980
Electronics		71,546		90,846
Inter-segment sales		8,268		8,722
Electronics net sales		79,814		99,568
Stoneridge Brazil		14,570		17,332
Inter-segment sales		-		6
Stoneridge Brazil net sales		14,570		17,338
Eliminations		(9,615)		(10,589)
Total net sales	$	182,966	$	218,297
Operating Income (Loss):
Control Devices	$	7,322	$	11,948
Electronics		2,872		9,031
Stoneridge Brazil		859		670
Unallocated Corporate (A)		(7,394)		(9,950)
Total operating income	$	3,659	$	11,699
Depreciation and Amortization:
Control Devices	$	3,530	$	3,094
Electronics		2,481		2,397
Stoneridge Brazil		1,450		1,525
Unallocated Corporate		526		213
Total depreciation and amortization (B)	$	7,987	$	7,229
Interest Expense, net:
Control Devices	$	81	$	182
Electronics		87		56
Stoneridge Brazil		10		108
Unallocated Corporate		852		657
Total interest expense, net	$	1,030	$	1,003
Capital Expenditures:
Control Devices	$	2,314	$	3,492
Electronics		2,650		3,738
Stoneridge Brazil		1,133		819
Unallocated Corporate(C)		572		635
Total capital expenditures	$	6,669	$	8,684

	March 31,		December 31,
	2020		2019
Total Assets:
Control Devices	$	189,348	$	191,491
Electronics		271,750		285,027
Stoneridge Brazil		65,258		89,393
Corporate (C)		390,475		358,766
Eliminations		(316,341)		(322,468)
Total assets	$	600,490	$	602,209

The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates:

Three months ended March 31,	2020		2019
Net Sales:
North America	$	99,851	$	119,367
South America		14,570		17,332
Europe and Other		68,545		81,598
Total net sales	$	182,966	$	218,297

	March 31,		December 31,
	2020		2019
Long-term Assets:
North America	$	87,375	$	87,430
South America		37,446		52,518
Europe and Other		126,410		130,995
Total long-term assets	$	251,231	$	270,943

(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 assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries.