Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Financial Instruments and Fair Value Measurements [Abstract]

Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows:


					Prepaid expenses				Accrued expenses and
	Notional amounts ^(A)				and other current assets				other current liabilities
	September 30,		December 31,		September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020		2021		2020
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	12,653	$	1,242	$	-	$	255	$	48	$	-
Interest rate swap	$	50,000	$	50,000	$	-	$	-	$	859	$	1,318
Net investment hedges:
Cross-currency swaps	$	50,000	$	-	$	607	$	-	$	-	$	-

(A)	Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars.

Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income

Gross amounts recorded for the cash flow and net investment hedges in other comprehensive (loss) income and in net income (loss) for the three months ended September 30 were as follows:


					Gain (loss) reclassified from
	Gain (loss) recorded in other				other comprehensive income
	comprehensive income (loss)				(loss) into net income (loss) ^(A)
	2021		2020		2021		2020
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(150)	$	642	$	155	$	(499)
Interest rate swap	$	(29)	$	(3)	$	(165)	$	(156)
Derivatives designated as net investment hedges:
Cross-currency swaps	$	573	$	-	$	-	$	-

(A)

Gains (losses) reclassified from other comprehensive loss into net income (loss) recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $31 and $(112) for the three months ended September 30, 2021 and 2020, respectively. Gains (losses) reclassified from other comprehensive loss into net income (loss) recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $124 and $(387) for the three months ended September 30, 2021 and 2020, respectively. Losses reclassified from other comprehensive loss into net income (loss) recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $(165) and $(156) for the three months ended September 30, 2021 and 2020, respectively.

Gross amounts recorded for the cash flow and net investment hedges in other comprehensive (loss) income and in net income (loss) for the nine months ended September 30 were as follows:


					Gain (loss) reclassified from
	Gain (loss) recorded in other				other comprehensive income
	comprehensive income (loss)				(loss) into net income (loss) ^(A)
	2021		2020		2021		2020
Derivatives designated as cash flow hedges:
Forward currency contracts	$	154	$	(1,962)	$	457	$	(1,602)
Interest rate swap	$	(27)	$	(1,715)	$	(486)	$	(274)
Derivatives designated as net investment hedges:
Cross-currency swaps	$	573	$	-	$	-	$	-

(A)

Gains (losses) reclassified from other comprehensive loss into net income (loss) recognized in SG&A in the Company’s condensed consolidated statements of operations were $120 and $(347) for the nine months ended September 30, 2021 and 2020, respectively. Gains (losses) reclassified from other comprehensive loss into net income (loss) recognized in COGS in the Company’s condensed consolidated statements of operations were $337 and $(1,226) for the nine months ended September 30, 2021 and 2020, respectively. Gains (losses) reclassified from other comprehensive loss into net income (loss) recognized in design and development (“D&D”) in the Company’s condensed consolidated statements of operations were $0 and $(29) for the nine months ended September 30, 2021 and 2020, respectively. Losses reclassified from other comprehensive loss into net income (loss) recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $(486) and $(274) for the nine months ended September 30, 2021 and 2020, respectively.

Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of inputs used.


								September 30,		December 31,
			2021						2020
			Fair values estimated using
		Fair	Level 1		Level 2		Level 3			Fair
	value		inputs		inputs		inputs		value
Financial assets carried at fair value:
Forward currency contract	$	-	$	-	$	-	$	-	$	255
Cross-currency swaps		607		-		607		-		-
Total financial assets carried at fair value	$	607	$	-	$	607	$	-	$	255

Financial liabilities carried at fair value:
Forward currency contracts	$	48	$	-	$	48	$	-	$	-
Interest rate swap		859		-		859		-		1,318
Earn-out consideration		6,914		-		-		6,914		5,813
Total financial liabilities carried at fair value	$	7,821	$	-	$	907	$	6,914	$	7,131

Summary of the Change in Fair Value of the Level 3 Financial Liabilities Related to Contingent Consideration

The following table sets forth a summary of the change in fair value of the Company’s Level 3 financial liabilities related to earn-out consideration that are measured at fair value on a recurring basis.


	Stoneridge Brazil
	2021		2020
Balance at January 1	$	5,813	$	12,011
Change in fair value		1,453		(3,045)
Foreign currency adjustments		(352)		(3,472)
Balance at September 30	$	6,914	$	5,494