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Segment Reporting
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

12. 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.

 

On December 31, 2011, the Company acquired a controlling interest in PST which resulted in PST becoming a separate reportable segment.

 

During the fourth quarter of 2012, the Company changed its reportable segments in accordance with changes in financial information received and reviewed by the Company’s chief operating decision maker. As a result, the Company’s Wiring business unit is now an operating segment for financial reporting purposes. Historically, the Wiring business unit was included in the Electronics operating segment. The Company has revised the consolidated segment information for all periods presented to reflect this presentation.

 

The Company has four reportable segments: Electronics, Wiring, Control Devices and PST which also represents its operating segments. The Electronics reportable segment produces electronic instrument clusters, electronic control units and driver information systems. The Wiring reportable segment produces electrical power and signal distribution systems, primarily wiring harnesses and connectors and instrument panel assemblies. The Control Devices reportable segment produces sensors, switches, valves and actuators. The PST reportable segment, which is also an operating segment, specializes in the design, manufacture and sale of electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices.

 

The accounting policies of the Company’s reportable segments are the same as those described in Note 2. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and income (loss) before income taxes. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

 

A summary of financial information by reportable segment is as follows:

 

Years ended December 31   2012     2011     2010  
                   
Net Sales:                        
Electronics   $ 164,196     $ 180,508     $ 139,414  
Inter-segment sales     51,857       58,029       40,481  
Electronics net sales     216,053       238,537       179,895  
Wiring     326,048       325,549       258,216  
Inter-segment sales     3,783       2,825       2,749  
Wiring net sales     329,831       328,374       260,965  
Control Devices     267,859       259,316       237,596  
Inter-segment sales     3,906       3,619       3,298  
Control Devices net sales     271,765       262,935       240,894  
PST (A)     180,410       -       -  
Inter-segment sales     -       -       -  
PST net sales (A)     180,410       -       -  
Eliminations     (59,546 )     (64,473 )     (46,528 )
Total net sales   $ 938,513     $ 765,373     $ 635,226  
Income (loss) before income taxes:                        
Electronics (B)   $ 10,049     $ 14,743     $ 37,807  
Wiring     (289 )     (17,119 )     4,177  
Control Devices (B)     15,048       17,145       15,877  
PST - consolidated (A)     (4,985 )     -       -  
PST - equity in earnings of investee (A)     -       8,805       9,490  
Other corporate activities (B)     635       63,461       (35,164 )
Corporate interest expense     (15,898 )     (15,393 )     (20,163 )
Total income before income taxes   $ 4,560     $ 71,642     $ 12,024  
Depreciation and Amortization:                        
Electronics   $ 4,467     $ 5,174     $ 4,885  
Wiring     5,054       4,442       4,159  
Control Devices     9,137       9,270       9,958  
PST (A) (C)     15,613       -       -  
Other corporate activities (C)     188       199       283  
Total depreciation and amortization (C)   $ 34,459     $ 19,085     $ 19,285  
Interest Expense net:                        
Electronics   $ 1,342     $ 1,619     $ 1,497  
Wiring     164       78       87  
Control Devices     254       144       33  
PST (A)     2,375       -       -  
Corporate activities     15,898       15,393       20,163  
Total interest expense, net   $ 20,033     $ 17,234     $ 21,780  
Capital Expenditures:                        
Electronics   $ 2,841     $ 6,148     $ 4,855  
Wiring     3,251       9,740       6,496  
Control Devices     9,574       10,368       7,267  
PST (A)     9,102       -       -  
Corporate activities     1,584       34       (44 )
Total capital expenditures   $ 26,352     $ 26,290     $ 18,574  

 

As of December 31   2012     2011     2010  
                   
Total Assets:                        
Electronics   $ 84,772     $ 94,375     $ 94,488  
Wiring     99,755       117,415       97,210  
Control Devices     100,351       98,636       96,977  
PST     267,687       328,652       -  
Corporate (D)     308,969       341,602       217,414  
Eliminations     (268,843 )     (285,185 )     (119,353 )
Total assets   $ 592,691     $ 695,495     $ 386,736  

 

(A) The acquisition of a controlling interest in PST occurred on December 31, 2011. See Note 2 to the consolidated financial statements included in this report. PST’s balance sheet is reflected in the consolidated balance sheet as of December 31, 2012 and 2011. The Company recognized a one-time non-cash pre-tax gain of $65,372 on its previously held interest in PST related to the acquisition.

 

(B) During year ended December 31, 2010, the Company placed its Stoneridge Pollak Limited (“SPL”) subsidiary into administration. As a result of placing SPL into administration the Company recognized a gain within the Electronics reportable segment of $32,512 and losses within other corporate activities and within the Control Devices reportable segment of $32,039 and $473, respectively. These results were primarily due to eliminating SPL’s intercompany debt and equity structure.

 

(C) These amounts represent depreciation and amortization on fixed and certain intangible assets.

 

(D) Assets located at Corporate consist primarily of cash, equity investments and intercompany loan receivables.

 

The following table presents net sales and non-current assets for the geographic areas in which the Company operates:

 

Years ended December 31   2012     2011     2010  
                   
Net Sales:                        
North America   $ 611,756     $ 601,490     $ 513,455  
South America     180,410       -       -  
Europe and Other     146,347       163,883       121,771  
Total net sales   $ 938,513     $ 765,373     $ 635,226  

 

As of December 31   2012     2011     2010  
                   
Non-Current Assets:                        
North America   $ 82,777     $ 81,957     $ 124,851  
South America     185,109       210,028       -  
Europe and Other     13,751       14,046       11,909  
Total non-current assets   $ 281,637     $ 306,031     $ 136,760