3. Investments

In June 2009, the Financial Accounting Standards Board (“FASB”) revised the authoritative guidance for determining the primary beneficiary of a variable interest entity (“VIE”). In December 2009, the FASB issued Accounting Standards Update No. 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities , which provides amendments to Accounting Standards Codification Topic No. 810, Consolidation (“ASC Topic 810”) to reflect the revised guidance. Among other things, the new guidance requires a qualitative rather than a quantitative assessment to determine the primary beneficiary of a VIE based on whether the entity (1) has the power to direct matters that most significantly impact the activities of the VIE and (2) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. In addition, the amended guidance requires an ongoing reconsideration of the primary beneficiary. The provisions of this new guidance were effective as of January 1, 2010, and the adoption did not have an impact on the Company’s financial statements. The Company analyzed its joint ventures in accordance with ASC Topic 810 to determine whether they are VIE’s and, if so, whether the Company is the primary beneficiary. The Minda Stoneridge Instruments Ltd. (“Minda”) joint venture at December 31, 2011 was determined under the provisions of ASC Topic 810 to be an unconsolidated joint venture and was accounted for under the equity method of accounting. PST was an unconsolidated joint venture at December 31, 2010.

PST Eletrônica Ltda.

The Company has a 74% interest in PST, a Brazilian electronic system provider focused on security, convenience and infotainment devices and services primarily for the South American vehicle and motorcycle industry. Prior to the acquisition of the additional interest on December 31, 2011, see Note 2, PST was an unconsolidated joint venture accounted for under the equity method of accounting. As of December 31, 2011, PST is a consolidated subsidiary of the Company. As of December 31, 2010, the Company’s investment in PST was $41,178 and was recorded as a component of investments and other long-term assets, net on the consolidated balance sheet.

Condensed financial information for PST is as follows:

As of December 31,	2010
Cash and cash equivalents	$	4,083
Accounts receivable, net		26,557
Inventories, net		46,576
Property, plant and equipment, net		30,963
Other assets		10,437
Total assets	$	118,616

Current liabilities	$	45,166
Long-term liabilities		13,962
Equity of:
Stoneridge		29,744
Others		29,744
Total liabilities and equity	$	118,616

The difference between the Company’s carrying amount of its investment in PST and the Company’s underlying equity in the net assets of PST is primarily due to a net goodwill balance of $11,296 at December 31, 2010.

Years ended December 31	2011		2010		2009
Net sales	$	234,160	$	182,946	$	140,690
Cost of goods sold	$	132,489	$	93,683	$	69,291

Total pre-tax income	$	20,995	$	23,503	$	15,623
The Company's share of pre-tax income	$	10,498	$	11,752	$	7,812

Equity in earnings of PST included in the consolidated statements of operations was $8,805, $9,490 and $7,385 for the years ended December 31, 2011, 2010 and 2009, respectively. During 2011, 2010 and 2009, PST declared dividends payable to its joint venture partners, which included the Company. The Company received dividend payments from PST of $0, $5,457 and $7,301 in 2011, 2010 and 2009, respectively, which decreased the Company’s investment in PST.

Minda Stoneridge Instruments Ltd.

The Company has a 49% interest in Minda, a company based in India that manufactures electronics, instrumentation equipment and sensors for the motorcycle and commercial vehicle market. The investment is accounted for under the equity method of accounting. The Company’s investment in Minda, recorded as a component of investments and other long-term assets, net on the consolidated balance sheets, was $6,391 and $6,287 as of December 31, 2011 and 2010, respectively. Equity in earnings of Minda included in the consolidated statements of operations was $1,229, $856 and $390, for the years ended December 31, 2011, 2010 and 2009, respectively.