Segment Reporting

9 Months Ended

Sep. 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				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Net Sales:
Control Devices	$	88,901	$	87,618	$	257,527	$	273,581
Inter-segment sales		474		414		1,855		2,768
Control Devices net sales		89,375		88,032		259,382		276,349
Electronics		124,066		77,585		372,040		250,440
Inter-segment sales		5,948		6,319		21,027		19,527
Electronics net sales		130,014		83,904		393,067		269,967
Stoneridge Brazil		13,790		16,477		39,184		42,788
Inter-segment sales		22		-		22		-
Stoneridge Brazil net sales		13,812		16,477		39,206		42,788
Eliminations		(6,444)		(6,733)		(22,904)		(22,295)
Total net sales	$	226,757	$	181,680	$	668,751	$	566,809
Operating (Loss) Income:
Control Devices	$	7,522	$	2,899	$	18,416	$	50,129
Electronics		5,416		(5,113)		180		(7,793)
Stoneridge Brazil		908		909		2,370		112
Unallocated Corporate (A)		(7,983)		(7,623)		(24,015)		(22,633)
Total operating (loss) income	$	5,863	$	(8,928)	$	(3,049)	$	19,815
Depreciation and Amortization:
Control Devices	$	3,325	$	3,840	$	10,291	$	11,777
Electronics		3,372		3,102		10,495		8,970
Stoneridge Brazil		968		737		2,991		2,783
Unallocated Corporate		589		532		1,717		1,587
Total depreciation and amortization (B)	$	8,254	$	8,211	$	25,494	$	25,117
Interest Expense (Income), net:
Control Devices	$	30	$	122	$	73	$	362
Electronics		279		228		580		523
Stoneridge Brazil		(298)		(101)		(989)		(198)
Unallocated Corporate		1,834		1,198		5,184		4,386
Total interest expense, net	$	1,845	$	1,447	$	4,848	$	5,073
Capital Expenditures:
Control Devices	$	3,536	$	2,305	$	9,297	$	7,046
Electronics		2,293		3,353		7,052		7,264
Stoneridge Brazil		757		744		2,684		2,163
Unallocated Corporate(C)		(52)		249		649		947
Total capital expenditures	$	6,534	$	6,651	$	19,682	$	17,420

	September 30,		December 31,
	2022		2021
Total Assets:
Control Devices	$	175,365	$	181,968
Electronics		347,694		338,080
Stoneridge Brazil		60,907		59,100
Corporate (C)		419,709		438,175
Eliminations		(370,619)		(351,924)
Total assets	$	633,056	$	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				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Net Sales:
North America	$	117,010	$	95,395	$	330,480	$	288,629
South America		13,790		16,477		39,184		42,788
Europe and Other		95,957		69,808		299,087		235,392
Total net sales	$	226,757	$	181,680	$	668,751	$	566,809

	September 30,		December 31,
	2022		2021
Long-term Assets:
North America	$	92,722	$	91,039
South America		31,106		30,272
Europe and Other		110,697		133,264
Total long-term assets	$	234,525	$	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.