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Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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
	March 31,		December 31,		March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021		2022		2021
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	17,091	$	23,923	$	1,394	$	730	$	-	$	-
Interest rate swap	$	50,000	$	50,000	$	160	$	-	$	-	$	503
Net investment hedges:
Cross-currency swaps	$	50,000	$	50,000	$	2,011	$	1,450	$	-	$	-

(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 income (loss) and in net (loss) income for the three months ended March 31 were as follows:


					Gain (loss) reclassified from
	Gain (loss) recorded in other				other comprehensive loss
	comprehensive loss				into net (loss) income ^(A)
	2022		2021		2022		2021
Derivatives designated as cash flow hedges:
Forward currency contracts	$	915	$	(154)	$	251	$	207
Interest rate swap	$	510	$	39	$	(153)	$	(158)
Derivatives designated as net investment hedges:
Cross-currency swaps	$	687	$	-	$	-	$	-

(A)

Gains reclassified from other comprehensive loss into net (loss) income recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $51 and $80 for the three months ended March 31, 2022 and 2021, respectively. Gains reclassified from other comprehensive loss into net (loss) income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $199 and $127 for the three months ended March 31, 2022 and 2021, respectively. Losses reclassified from other comprehensive loss into net (loss) income recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $153 and $158 for the three months ended March 31, 2022 and 2021, 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.


								March 31,		December 31,
			2022						2021
			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	$	1,394	$	-	$	1,394	$	-	$	730
Cross-currency swaps		2,011		-		2,011		-		1,450
Interest rate swap		160		-		160		-		-
Total financial assets carried at fair value	$	3,565	$	-	$	3,565	$	-	$	2,180

Financial liabilities carried at fair value:
Interest rate swap	$	-	$	-	$	-	$	-	$	503
Earn-out consideration		8,659		-		-		8,659		7,351
Total financial liabilities carried at fair value	$	8,659	$	-	$	-	$	8,659	$	7,854

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
	2022		2021
Balance at January 1	$	7,351	$	5,813
Change in fair value		-		72
Foreign currency adjustments		1,308		(513)
Balance at March 31	$	8,659	$	5,372