Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Financial Instruments and Fair Value Measurements [Abstract]

Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows:

					Prepaid expenses				Accrued expenses and
	Notional amounts (A)				and other current assets				other current liabilities
	September 30,		December 31,		September 30,		December 31,		September 30,		December 31,
	2020		2019		2020		2019		2020		2019
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	8,950	$	-	$	-	$	-	$	360	$	-
Interest rate swap	$	50,000	$	-	$	-	$	-	$	1,441	$	-

(A) Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars.

Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income

Gross amounts recorded for the cash flow hedges in other comprehensive (loss) income and in net income for the three months ended September 30 were as follows:

					Gain (loss) reclassified from
	Gain (loss) recorded in other				other comprehensive income
	comprehensive income (loss)				(loss) into net income (A)
	2020		2019		2020		2019
Derivatives designated as cash flow hedges:
Forward currency contracts	$	642	$	(29)	$	(499)	$	131
Interest rate swap	$	(3)	$	-	$	(156)	$	-

(A) Gains (losses) reclassified from other comprehensive (loss) income into net income recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $(112) and $0 for the three months ended September 30, 2020 and 2019, respectively. Gains (losses) reclassified from other comprehensive (loss) income into net income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $(387) and $131 for the three months ended September 30, 2020 and 2019, respectively. Losses reclassified from other comprehensive (loss) income into net income recognized in interest expense, net in the Company’s condensed consolidated statements of operations was $156 for the three months ended September 30, 2020.

Gross amounts recorded for the cash flow hedges in other comprehensive (loss) income and in net (loss) income for the nine months ended September 30 were as follows:

					Gain (loss) reclassified from
	Gain (loss) recorded in other				other comprehensive income
	comprehensive income (loss)				(loss) into net income (A)
	2020		2019		2020		2019
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(1,962)	$	397	$	(1,602)	$	646
Interest rate swap	$	(1,715)	$	-	$	(274)	$	-

(A) Gains (losses) reclassified from other comprehensive (loss) income into net (loss) income recognized in SG&A in the Company’s condensed consolidated statements of operations were $(347) and $0 for the nine months ended September 30, 2020 and 2019, respectively. Gains (losses) reclassified from other comprehensive (loss) income into net (loss) income recognized in COGS in the Company’s condensed consolidated statements of operations were $(1,226) and $521 for the nine months ended September 30, 2020 and 2019, respectively. Gains (losses) reclassified from other comprehensive (loss) income into net (loss) income recognized in D&D in the Company’s condensed consolidated statements of operations were $(29) and $125 for the nine months ended September 30, 2020 and 2019, respectively. Losses reclassified from other comprehensive (loss) income into net (loss) income recognized in interest expense in the Company’s condensed consolidated statements of operations was $274 for the nine months ended September 30, 2020.

Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of inputs used.

								September 30,		December 31,
			2020						2019
			Fair values estimated using
		Fair	Level 1		Level 2		Level 3
	value		inputs		inputs		inputs		Fair value
Financial liabilities carried at fair value:
Forward currency contracts	$	360	$	-	$	360	$	-	$	-
Interest rate swap		1,441		-		1,441		-		-
Earn-out consideration		5,494		-		-		5,494		12,011
Total financial liabilities carried at fair value	$	7,295	$	-	$	1,801	$	5,494	$	12,011

Summary of the Change in Fair Value of the Level 3 Financial Liabilities Related to Contingent Consideration

The following table sets forth a summary of the change in fair value of the Company’s Level 3 financial liabilities related to earn-out consideration that are measured at fair value on a recurring basis.

	Stoneridge Brazil		Total
Balance at December 31, 2019	$	12,011	$	12,011
Change in fair value		(3,045)		(3,045)
Foreign currency adjustments		(3,472)		(3,472)
Balance at September 30, 2020	$	5,494	$	5,494

	Orlaco		Stoneridge Brazil		Total
Balance at December 31, 2018	$	8,602	$	10,070	$	18,672
Change in fair value		-		1,862		1,862
Foreign currency adjustments		(128)		(754)		(882)
Earn-out consideration cash payment		(8,474)		-		(8,474)
Balance at September 30, 2019	$	-	$	11,178	$	11,178