Segment Reporting

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Reporting

The Company had historically managed its automotive business in four reportable segments: North America, Europe, Asia Pacific and South America. All other business activities were reported in Corporate, eliminations and other. As disclosed in its 2023 Annual Report, effective January 1, 2024, the Company changed its management reporting structure with the launch of global product line-focused business segments. This resulted in the realignment of the Company’s reportable segments, which are based on how the CODM manages the business, allocates resources, makes operating decisions, and evaluates operating performance. Based on this change, the Company established two reportable automotive segments: Sealing Systems and Fluid Handling Systems. All other business activities are reported in Corporate, eliminations and other. Additional information related to the composition of each reportable segment is included below:

•Sealing Systems: The Sealing Systems segment is comprised of products that are designed and manufactured to protect vehicle interiors from weather, dust and noise intrusion for an improved driving experience. Its products also provide aesthetic and functional class-A exterior surface treatment. As disclosed in its 2023 Annual Report, the Company believes it is the largest global producer of sealing systems.

•Fluid Handling Systems: The Fluid Handling Systems segment is comprised of products that help convey, connect, control and communicate throughout fluid systems for superior performance across diverse powertrains. The Company leverages its innovation expertise and vertically integrated manufacturing process with strong global standardization to support customers throughout the world.

The new structure is expected to optimize asset and resource allocation, enhance operating efficiency and aid in accelerating growth. The segment realignment had no impact on the Company’s consolidated financial position, results of operations, or cash flows. All segment information is reflective of this new structure, and prior period information has been revised to conform to the Company’s current period presentation.

The Company uses segment adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. The results of each segment include certain allocations for general,

administrative and other shared costs. Segment adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Certain financial information on the Company’s reportable segments was as follows:

	Three Months Ended September 30,
	2024						2023
	External Sales		Intersegment Sales		Adjusted EBITDA		External Sales		Intersegment Sales		Adjusted EBITDA
Sealing systems	$	353,365	$	10,760	$	29,904	$	370,958	$	14,424	$	39,620
Fluid handling systems	313,739		6,042		23,089		341,817		7,345		41,292
Total for reportable segments	$	667,104	$	16,802	$	52,993	$	712,775	$	21,769	$	80,912
	Nine Months Ended September 30,
	2024						2023
	External Sales		Intersegment Sales		Adjusted EBITDA		External Sales		Intersegment Sales		Adjusted EBITDA
Sealing systems	$	1,069,590	$	34,555	$	86,310	$	1,092,915	$	44,628	$	86,898
Fluid handling systems	941,996		16,238		50,353		959,582		19,787		59,136
Total for reportable segments	$	2,011,586	$	50,793	$	136,663	$	2,052,497	$	64,415	$	146,034

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Total reportable segments adjusted EBITDA	$	52,993	$	80,912	$	136,663	$	146,034
Restructuring charges	(1,516)		(2,046)		(20,430)		(12,924)
Impairment charges	—		—		—		(654)
Loss on sale of businesses, net	—		(334)		—		(334)
Pension settlement credit (charge)	2,216		—		(44,571)		—
Loss on refinancing and extinguishment of debt	—		—		—		(81,885)
Income tax expense	(2,861)		(4,338)		(15,072)		(9,461)
Interest expense, net of interest income	(29,125)		(33,803)		(87,041)		(98,057)
Depreciation and amortization	(25,916)		(27,219)		(78,252)		(83,017)
Corporate, eliminations and other (1)	(6,848)		(1,809)		(10,257)		(6,535)
Net (loss) income attributable to Cooper-Standard Holdings Inc.	$	(11,057)	$	11,363	$	(118,960)	$	(146,833)

(1)    Includes revenue and expenses from the ISG business, which is an operating segment that does not meet the quantitative thresholds for determining reportable segments, and corporate-related costs including long-term compensation related costs.

	September 30, 2024		December 31, 2023
Segment assets:
Sealing systems	$	856,719	$	906,022
Fluid handling systems	724,017		735,465
Total segment assets	$	1,580,736	$	1,641,487
Corporate, eliminations and other	216,802		230,812
Consolidated	$	1,797,538	$	1,872,299