Segment Reporting

6 Months Ended

Jun. 30, 2022

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 2021 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,
	2022		2021		2022		2021
Net Sales:
Control Devices	$	84,566	$	86,345	$	168,626	$	185,963
Inter-segment sales		451		374		1,381		2,354
Control Devices net sales		85,017		86,719		170,007		188,317
Electronics		123,021		90,085		247,974		172,855
Inter-segment sales		7,368		7,229		15,079		13,208
Electronics net sales		130,389		97,314		263,053		186,063
Stoneridge Brazil		13,349		14,904		25,394		26,311
Inter-segment sales		-		-		-		-
Stoneridge Brazil net sales		13,349		14,904		25,394		26,311
Eliminations		(7,819)		(7,603)		(16,460)		(15,562)
Total net sales	$	220,936	$	191,334	$	441,994	$	385,129
Operating (Loss) Income:
Control Devices	$	4,118	$	37,065	$	10,894	$	47,230
Electronics		(2,524)		(1,807)		(5,236)		(2,680)
Stoneridge Brazil		970		(749)		1,462		(797)
Unallocated Corporate (A)		(8,492)		(7,825)		(16,032)		(15,010)
Total operating (loss) income	$	(5,928)	$	26,684	$	(8,912)	$	28,743
Depreciation and Amortization:
Control Devices	$	3,405	$	3,858	$	6,966	$	7,937
Electronics		3,530		3,059		7,123		5,868
Stoneridge Brazil		1,032		1,041		2,023		2,045
Unallocated Corporate		567		685		1,128		1,374
Total depreciation and amortization (B)	$	8,534	$	8,643	$	17,240	$	17,224
Interest Expense (Income), net:
Control Devices	$	18	$	22	$	43	$	67
Electronics		228		95		301		191
Stoneridge Brazil		(533)		(27)		(691)		(34)
Unallocated Corporate		1,504		1,770		3,350		3,402
Total interest expense, net	$	1,217	$	1,860	$	3,003	$	3,626
Capital Expenditures:
Control Devices	$	1,916	$	3,380	$	5,761	$	4,741
Electronics		1,926		461		4,759		3,911
Stoneridge Brazil		1,258		757		1,927		1,419
Unallocated Corporate(C)		680		197		701		698
Total capital expenditures	$	5,780	$	4,795	$	13,148	$	10,769

	June 30,		December 31,
	2022		2021
Total Assets:
Control Devices	$	177,103	$	181,968
Electronics		345,802		338,080
Stoneridge Brazil		63,573		59,100
Corporate (C)		416,552		438,175
Eliminations		(364,616)		(351,924)
Total assets	$	638,414	$	665,399

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,
	2022		2021		2022		2021
Net Sales:
North America	$	109,642	$	96,700	$	213,470	$	193,234
South America		13,349		14,904		25,394		26,311
Europe and Other		97,945		79,730		203,130		165,584
Total net sales	$	220,936	$	191,334	$	441,994	$	385,129

	June 30,		December 31,
	2022		2021
Long-term Assets:
North America	$	90,337	$	91,039
South America		32,640		30,272
Europe and Other		119,657		133,264
Total long-term assets	$	242,634	$	254,575

(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.