Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

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,
	2022		2021		2022		2021		2022		2021
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	5,167	$	23,923	$	561	$	730	$	-	$	-
Interest rate swap	$	50,000	$	50,000	$	576	$	-	$	-	$	503
Net investment hedges:
Cross-currency swaps	$	-	$	50,000	$	-	$	1,450	$	-	$	-

(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 and net investment hedges in other comprehensive (loss) income and in net (loss) income for the three months ended September 30 were as follows:

					Gain (loss) reclassified from
	Gain (loss) recorded in other				other comprehensive (loss)
	comprehensive (loss) income				income into net (loss) income (A)
	2022		2021		2022		2021
Derivatives designated as cash flow hedges:
Forward currency contracts	$	97	$	(150)	$	496	$	155
Interest rate swap	$	150	$	(29)	$	100	$	(165)
Derivatives designated as net investment hedges:
Cross-currency swaps	$	-	$	573	$	-	$	-

(A) Gains reclassified from other comprehensive (loss) income into net (loss) income recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $115 and $31 for the three months ended September 30, 2022 and 2021, respectively. Gains reclassified from other comprehensive (loss) income into net (loss) income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $381 and $124 for the three months ended September 30, 2022 and 2021, respectively. Gains (losses) reclassified from other comprehensive loss into net (loss) income recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $100 and $(165) for the three months ended September 30, 2022 and 2021, respectively.

Gross amounts recorded for the cash flow and net investment 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 (loss)
	comprehensive (loss) income				income into net (loss) income (A)
	2022		2021		2022		2021
Derivatives designated as cash flow hedges:
Forward currency contracts	$	1,084	$	154	$	1,253	$	457
Interest rate swap	$	946	$	(27)	$	(133)	$	(486)
Derivatives designated as net investment hedges:
Cross-currency swaps	$	2,328	$	573	$	3,598	$	-

(A) Gains reclassified from other comprehensive (loss) income into net (loss) income recognized in SG&A in the Company’s condensed consolidated statements of operations were $266 and $120 for the nine months ended September 30, 2022 and 2021, respectively. Gains reclassified from other comprehensive (loss) income into net (loss) income recognized in COGS in the Company’s condensed consolidated statements of operations were $987 and $337 for the nine months ended September 30, 2022 and 2021, respectively. Losses reclassified from other comprehensive (loss) income into net (loss) income recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $133 and $486 for the nine months ended September 30, 2022 and 2021, respectively. Gains reclassified from other comprehensive (loss) income into net (loss) income recognized in other income (expense), net in the Company’s condensed consolidated statements of operations were $3,598 for the nine months ended September 30, 2022.

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,
			2022						2021
			Fair values estimated using
		Fair	Level 1		Level 2		Level 3			Fair
	value		inputs		inputs		inputs		value
Financial assets carried at fair value:
Forward currency contract	$	561	$	-	$	561	$	-	$	730
Cross-currency swaps		-		-		-		-		1,450
Interest rate swap		576		-		576		-		-
Total financial assets carried at fair value	$	1,137	$	-	$	1,137	$	-	$	2,180
Financial liabilities carried at fair value:
Interest rate swap	$	-	$	-	$	-	$	-	$	503
Earn-out consideration		-		-		-		-		7,351
Total financial liabilities carried at fair value	$	-	$	-	$	-	$	-	$	7,854

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
	2022		2021
Balance at January 1	$	7,351	$	5,813
Change in fair value		-		1,215
Foreign currency adjustments		921		236
Earn-out consideration cash payment		(8,272)		-
Balance at September 30	$	-	$	7,264