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 2019 Form 10-K 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, 2020 2019 2020 2019 Net Sales: Control Devices $ 99,942 $ 108,690 $ 243,797 $ 332,876 Inter-segment sales 971 1,185 3,877 5,124 Control Devices net sales 100,913 109,875 247,674 338,000 Electronics 62,995 78,154 180,071 260,560 Inter-segment sales 7,362 8,867 17,672 27,914 Electronics net sales 70,357 87,021 197,743 288,474 Stoneridge Brazil 12,827 16,542 34,407 50,488 Inter-segment sales - - - 6 Stoneridge Brazil net sales 12,827 16,542 34,407 50,494 Eliminations (8,333) (10,052) (21,549) (33,044) Total net sales $ 175,764 $ 203,386 $ 458,275 $ 643,924 Operating Income (Loss): Control Devices $ 12,450 $ 9,767 $ 10,116 $ 66,082 Electronics 647 7,661 (7,523) 24,247 Stoneridge Brazil 3,439 (451) 3,419 6,633 Unallocated Corporate (A) (6,709) (7,654) (19,349) (26,754) Total operating income (loss) $ 9,827 $ 9,323 $ (13,337) $ 70,208 Depreciation and Amortization: Control Devices $ 4,028 $ 3,310 $ 11,197 $ 9,601 Electronics 2,549 2,708 7,423 7,615 Stoneridge Brazil 973 1,571 3,696 4,791 Unallocated Corporate 500 297 1,522 726 Total depreciation and amortization (B) $ 8,050 $ 7,886 $ 23,838 $ 22,733 Interest Expense, net: Control Devices $ 99 $ 189 $ 269 $ 566 Electronics 103 79 503 198 Stoneridge Brazil 14 69 17 118 Unallocated Corporate 1,666 812 3,533 2,271 Total interest expense, net $ 1,882 $ 1,149 $ 4,322 $ 3,153 Capital Expenditures: Control Devices $ 2,833 $ 3,175 $ 8,496 $ 10,709 Electronics 1,618 5,473 9,678 12,567 Stoneridge Brazil 805 1,243 2,219 2,867 Unallocated Corporate (C) 524 683 1,201 1,910 Total capital expenditures $ 5,780 $ 10,574 $ 21,594 $ 28,053 September 30, December 31, 2020 2019 Total Assets: Control Devices $ 182,366 $ 191,491 Electronics 287,078 285,027 Stoneridge Brazil 59,351 89,393 Corporate (C) 381,150 358,766 Eliminations (327,995) (322,468) Total assets $ 581,950 $ 602,209 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, 2020 2019 2020 2019 Net Sales: North America $ 97,576 $ 115,816 $ 240,549 $ 358,476 South America 12,827 16,542 34,407 50,488 Europe and Other 65,361 71,028 183,319 234,960 Total net sales $ 175,764 $ 203,386 $ 458,275 $ 643,924 September 30, December 31, 2020 2019 Long-term Assets: North America $ 93,230 $ 87,430 South America 32,315 52,518 Europe and Other 136,590 130,995 Total long-term assets $ 262,135 $ 270,943 (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. |