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Segment Reporting

9 Months Ended

Sep. 30, 2021

(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 2020 Form 10-K. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and operating income. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

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,
	2021		2020		2021		2020
Net Sales:
Control Devices	$	87,618	$	99,942	$	273,581	$	243,797
Inter-segment sales		414		971		2,768		3,877
Control Devices net sales		88,032		100,913		276,349		247,674
Electronics		77,585		62,995		250,440		180,071
Inter-segment sales		6,319		7,362		19,527		17,672
Electronics net sales		83,904		70,357		269,967		197,743
Stoneridge Brazil		16,477		12,827		42,788		34,407
Inter-segment sales		-		-		-		-
Stoneridge Brazil net sales		16,477		12,827		42,788		34,407
Eliminations		(6,733)		(8,333)		(22,295)		(21,549)
Total net sales	$	181,680	$	175,764	$	566,809	$	458,275
Operating (Loss) Income:
Control Devices	$	2,899	$	12,450	$	50,129	$	10,116
Electronics		(5,113)		647		(7,793)		(7,523)
Stoneridge Brazil		909		3,439		112		3,419
Unallocated Corporate ^(A)		(7,623)		(6,709)		(22,633)		(19,349)
Total operating (loss) income	$	(8,928)	$	9,827	$	19,815	$	(13,337)
Depreciation and Amortization:
Control Devices	$	3,840	$	4,028	$	11,777	$	11,197
Electronics		3,102		2,549		8,970		7,423
Stoneridge Brazil		737		973		2,783		3,696
Unallocated Corporate		532		500		1,587		1,522
Total depreciation and amortization^(B)	$	8,211	$	8,050	$	25,117	$	23,838
Interest Expense (Income), net:
Control Devices	$	122	$	99	$	362	$	269
Electronics		228		103		523		503
Stoneridge Brazil		(101)		14		(198)		17
Unallocated Corporate		1,198		1,666		4,386		3,533
Total interest expense, net	$	1,447	$	1,882	$	5,073	$	4,322
Capital Expenditures:
Control Devices	$	2,305	$	2,833	$	7,046	$	8,496
Electronics		3,353		1,618		7,264		9,678
Stoneridge Brazil		744		805		2,163		2,219
Unallocated Corporate^(C)		249		524		947		1,201
Total capital expenditures	$	6,651	$	5,780	$	17,420	$	21,594

September 30,

December 31,

2021

2020

Total Assets:

Control Devices

189,426

194,433

Electronics

313,569

303,914

Stoneridge Brazil

62,262

61,350

Corporate ^(C)

395,178

390,851

Eliminations

(333,757)

(329,140)

Total assets

626,678

621,408

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,
	2021		2020		2021		2020
Net Sales:
North America	$	95,395	$	97,576	$	288,629	$	240,549
South America		16,477		12,827		42,788		34,407
Europe and Other		69,808		65,361		235,392		183,319
Total net sales	$	181,680	$	175,764	$	566,809	$	458,275

September 30,

December 31,

2021

2020

Long-term Assets:

North America

100,821

110,330

South America

31,411

33,785

Europe and Other

137,321

142,629

Total long-term assets

269,553

286,744

(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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details