Segment Reporting

6 Months Ended

Jun. 30, 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				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Net Sales:
Control Devices	$	47,005	$	114,067	$	143,855	$	224,186
Inter-segment sales		1,559		2,078		2,906		3,939
Control Devices net sales		48,564		116,145		146,761		228,125
Electronics		45,530		91,560		117,076		182,406
Inter-segment sales		2,042		10,325		10,310		19,047
Electronics net sales		47,572		101,885		127,386		201,453
Stoneridge Brazil		7,010		16,614		21,580		33,946
Inter-segment sales		-		-		-		6
Stoneridge Brazil net sales		7,010		16,614		21,580		33,952
Eliminations		(3,601)		(12,403)		(13,216)		(22,992)
Total net sales	$	99,545	$	222,241	$	282,511	$	440,538
Operating (Loss) Income:
Control Devices	$	(9,656)	$	44,367	$	(2,334)	$	56,315
Electronics		(11,042)		7,555		(8,170)		16,586
Stoneridge Brazil		(879)		6,414		(20)		7,084
Unallocated Corporate (A)		(5,246)		(9,150)		(12,640)		(19,100)
Total operating (loss) income	$	(26,823)	$	49,186	$	(23,164)	$	60,885
Depreciation and Amortization:
Control Devices	$	3,639	$	3,197	$	7,169	$	6,291
Electronics		2,393		2,510		4,874		4,907
Stoneridge Brazil		1,273		1,695		2,723		3,220
Unallocated Corporate		496		216		1,022		429
Total depreciation and amortization (B)	$	7,801	$	7,618	$	15,788	$	14,847
Interest Expense (Income), net:
Control Devices	$	89	$	195	$	170	$	377
Electronics		313		63		400		119
Stoneridge Brazil		(7)		(59)		3		49
Unallocated Corporate		1,015		802		1,867		1,459
Total interest expense, net	$	1,410	$	1,001	$	2,440	$	2,004
Capital Expenditures:
Control Devices	$	3,349	$	4,042	$	5,663	$	7,534
Electronics		5,410		3,356		8,060		7,094
Stoneridge Brazil		281		805		1,414		1,624
Unallocated Corporate(C)		105		592		677		1,227
Total capital expenditures	$	9,145	$	8,795	$	15,814	$	17,479

	June 30,		December 31,
	2020		2019
Total Assets:
Control Devices	$	167,585	$	191,491
Electronics		262,730		285,027
Stoneridge Brazil		62,060		89,393
Corporate (C)		388,879		358,766
Eliminations		(324,035)		(322,468)
Total assets	$	557,219	$	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				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Net Sales:
North America	$	43,122	$	123,293	$	142,973	$	242,660
South America		7,010		16,614		21,580		33,946
Europe and Other		49,413		82,334		117,958		163,932
Total net sales	$	99,545	$	222,241	$	282,511	$	440,538

	June 30,		December 31,
	2020		2019
Long-term Assets:
North America	$	95,351	$	87,430
South America		34,927		52,518
Europe and Other		130,298		130,995
Total long-term assets	$	260,576	$	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.