Segment Reporting

9 Months Ended

Sep. 30, 2020

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 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				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Net Sales:
Control Devices	$	99,942	$	108,690	$	243,797	$	332,876
Inter-segment sales		971		1,185		3,877		5,124
Control Devices net sales		100,913		109,875		247,674		338,000
Electronics		62,995		78,154		180,071		260,560
Inter-segment sales		7,362		8,867		17,672		27,914
Electronics net sales		70,357		87,021		197,743		288,474
Stoneridge Brazil		12,827		16,542		34,407		50,488
Inter-segment sales		-		-		-		6
Stoneridge Brazil net sales		12,827		16,542		34,407		50,494
Eliminations		(8,333)		(10,052)		(21,549)		(33,044)
Total net sales	$	175,764	$	203,386	$	458,275	$	643,924
Operating Income (Loss):
Control Devices	$	12,450	$	9,767	$	10,116	$	66,082
Electronics		647		7,661		(7,523)		24,247
Stoneridge Brazil		3,439		(451)		3,419		6,633
Unallocated Corporate (A)		(6,709)		(7,654)		(19,349)		(26,754)
Total operating income (loss)	$	9,827	$	9,323	$	(13,337)	$	70,208
Depreciation and Amortization:
Control Devices	$	4,028	$	3,310	$	11,197	$	9,601
Electronics		2,549		2,708		7,423		7,615
Stoneridge Brazil		973		1,571		3,696		4,791
Unallocated Corporate		500		297		1,522		726
Total depreciation and amortization (B)	$	8,050	$	7,886	$	23,838	$	22,733
Interest Expense, net:
Control Devices	$	99	$	189	$	269	$	566
Electronics		103		79		503		198
Stoneridge Brazil		14		69		17		118
Unallocated Corporate		1,666		812		3,533		2,271
Total interest expense, net	$	1,882	$	1,149	$	4,322	$	3,153
Capital Expenditures:
Control Devices	$	2,833	$	3,175	$	8,496	$	10,709
Electronics		1,618		5,473		9,678		12,567
Stoneridge Brazil		805		1,243		2,219		2,867
Unallocated Corporate(C)		524		683		1,201		1,910
Total capital expenditures	$	5,780	$	10,574	$	21,594	$	28,053

	September 30,		December 31,
	2020		2019
Total Assets:
Control Devices	$	182,366	$	191,491
Electronics		287,078		285,027
Stoneridge Brazil		59,351		89,393
Corporate (C)		381,150		358,766
Eliminations		(327,995)		(322,468)
Total assets	$	581,950	$	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				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Net Sales:
North America	$	97,576	$	115,816	$	240,549	$	358,476
South America		12,827		16,542		34,407		50,488
Europe and Other		65,361		71,028		183,319		234,960
Total net sales	$	175,764	$	203,386	$	458,275	$	643,924

	September 30,		December 31,
	2020		2019
Long-term Assets:
North America	$	93,230	$	87,430
South America		32,315		52,518
Europe and Other		136,590		130,995
Total long-term assets	$	262,135	$	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.