Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-13337 | ||
Entity Registrant Name | STONERIDGE INC | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-1598949 | ||
Entity Address, Address Line One | 39675 MacKenzie Drive, Suite 400 | ||
Entity Address, City or Town | Novi | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48377 | ||
City Area Code | 248 | ||
Local Phone Number | 489-9300 | ||
Title of 12(g) Security | Common Shares, without par value | ||
Trading Symbol | sri | ||
Amendment Flag | false | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 827 | ||
Entity Common Stock Shares Outstanding | 27,408,272 | ||
Entity Central Index Key | 0001043337 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 69,403 | $ 81,092 |
Accounts receivable, less reserves of $1,289 and $1,243, respectively | 138,564 | 139,076 |
Inventories, net | 93,449 | 79,278 |
Prepaid expenses and other current assets | 29,850 | 20,731 |
Total current assets | 331,266 | 320,177 |
Long-term assets: | ||
Property, plant and equipment, net | 122,483 | 112,213 |
Intangible assets, net | 58,122 | 62,032 |
Goodwill | 35,874 | 36,717 |
Operating lease right-of-use asset | 22,027 | |
Investments and other long-term assets, net | 32,437 | 28,380 |
Total long-term assets | 270,943 | 239,342 |
Total assets | 602,209 | 559,519 |
Current liabilities: | ||
Current portion of debt | 2,672 | 1,533 |
Accounts payable | 80,701 | 87,894 |
Accrued expenses and other current liabilities | 55,223 | 57,880 |
Total current liabilities | 138,596 | 147,307 |
Long-term liabilities: | ||
Revolving credit facility | 126,000 | 96,000 |
Long-term debt, net | 454 | 983 |
Deferred income taxes | 12,530 | 14,895 |
Operating lease long-term liability | 17,971 | |
Other long-term liabilities | 16,754 | 17,068 |
Total long-term liabilities | 173,709 | 128,946 |
Shareholders' equity: | ||
Preferred Shares, without par value, 5,000 shares authorized, none issued | ||
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,408 and 28,488 shares outstanding at December 31, 2019 and 2018, respectively, with no stated value | ||
Additional paid-in capital | 225,607 | 231,647 |
Common Shares held in treasury, 1,558 and 478 shares at December 31, 2019 and 2018, respectively, at cost | (50,773) | (8,880) |
Retained earnings | 206,542 | 146,251 |
Accumulated other comprehensive loss | (91,472) | (85,752) |
Total shareholders' equity | 289,904 | 283,266 |
Total liabilities and shareholders' equity | $ 602,209 | $ 559,519 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Accounts receivable, reserves (in dollars) | $ 1,289 | $ 1,243 | |
Preferred shares, no par value | $ 0 | $ 0 | |
Preferred shares, authorized | 5,000,000 | 5,000,000 | |
Preferred shares, issued | 0 | 0 | |
Common shares, no par value | $ 0 | $ 0 | |
Common shares, authorized | 60,000,000 | 60,000,000 | |
Common shares, issued | 28,966,000 | 28,966,000 | |
Common shares, outstanding | 27,408,000 | 28,488,000 | |
Common shares held in treasury, shares | 1,558,000 | 478,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 834,289 | $ 866,199 | $ 824,444 |
Costs and expenses: | |||
Cost of goods sold | 620,556 | 609,568 | 576,304 |
Selling, general and administrative | 123,853 | 138,553 | 141,893 |
Gain on disposal of Non-core Products, net | (33,599) | ||
Design and development | 52,198 | 51,074 | 48,877 |
Operating income | 71,281 | 67,004 | 57,370 |
Interest expense, net | 4,324 | 4,720 | 5,783 |
Equity in earnings of investee | (1,578) | (2,038) | (1,636) |
Other income (loss), net | 142 | (736) | 641 |
Income before income taxes | 68,393 | 65,058 | 52,582 |
Provision for income taxes | 8,102 | 11,210 | 7,533 |
Net income | 60,291 | 53,848 | 45,049 |
Net loss attributable to noncontrolling interest | (130) | ||
Net income attributable to Stoneridge, Inc. | $ 60,291 | $ 53,848 | $ 45,179 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.17 | $ 1.90 | $ 1.61 |
Diluted (in dollars per share) | $ 2.13 | $ 1.85 | $ 1.57 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 27,791,799 | 28,402,227 | 28,082,114 |
Diluted (in shares) | 28,270,095 | 29,079,826 | 28,771,645 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 60,291 | $ 53,848 | $ 45,049 |
Less: Net loss attributable to noncontrolling interest | (130) | ||
Net income attributable to Stoneridge, Inc. | 60,291 | 53,848 | 45,179 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation | (5,428) | (16,627) | 15,473 |
Unrealized (loss) gain on derivatives | (292) | 435 | (125) |
Other comprehensive loss, net of tax attributable to Stoneridge, Inc. | (5,720) | (16,192) | 15,348 |
Comprehensive income attributable to Stoneridge, Inc. | $ 54,571 | $ 37,656 | $ 60,527 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Tax expense (benefit) for unrealized gain on derivatives | $ (78) | $ 156 | $ (68) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 60,291 | $ 53,848 | $ 45,049 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Depreciation | 24,904 | 22,786 | 21,490 |
Amortization, including accretion and write-off of deferred financing costs | 6,579 | 6,731 | 6,764 |
Deferred income taxes | 5,586 | 2,552 | (5,959) |
Earnings of equity method investee | (1,578) | (2,038) | (1,636) |
Gain on sale of fixed assets | (98) | 333 | (1,796) |
Share-based compensation expense | 6,191 | 5,632 | 7,265 |
Tax benefit related to share-based compensation expense | (1,289) | (1,584) | (858) |
Gain on disposal of Non-core Products, net | (33,599) | ||
Intangible impairment charge | 0 | 202 | 0 |
Change in fair value of earn-out contingent consideration | 2,308 | 213 | 7,485 |
Changes in operating assets and liabilities, net of effect of business combination: | |||
Accounts receivable, net | (1,353) | (3,575) | (15,156) |
Inventories, net | (15,653) | (10,002) | (2,132) |
Prepaid expenses and other assets | (8,898) | 2,291 | (10,177) |
Accounts payable | (6,980) | 11,054 | 10,492 |
Accrued expenses and other liabilities | (11,906) | (7,671) | 18,077 |
Net cash provided by operating activities | 24,505 | 80,772 | 78,908 |
INVESTING ACTIVITIES: | |||
Capital expenditures, including intangibles | (39,467) | (29,027) | (32,170) |
Proceeds from sale of fixed assets | 382 | 111 | 77 |
Insurance proceeds for fixed assets | 1,403 | 711 | |
Proceeds from disposal of Non-core Products | 34,386 | ||
Business acquisitions, net of cash acquired | (77,258) | ||
Investment in venture capital fund | (1,600) | (437) | |
Net cash provided by (used for) investing activities | (6,299) | (27,950) | (108,640) |
FINANCING ACTIVITIES: | |||
Acquisition of noncontrolling interest, including transaction costs | (1,848) | ||
Revolving credit facility borrowings | 112,000 | 27,500 | 95,000 |
Revolving credit facility payments | (82,000) | (52,500) | (41,000) |
Proceeds from issuance of debt | 2,208 | 415 | 2,748 |
Repayments of debt | (1,587) | (5,071) | (11,573) |
Earn-out consideration cash payment | (3,394) | ||
Other financing costs | (1,366) | (61) | |
Common Share repurchase program | (50,000) | ||
Repurchase of Common Shares to satisfy employee tax withholding | (4,119) | (4,214) | (2,481) |
Net cash used for financing activities | (28,258) | (33,870) | 40,785 |
Effect of exchange rate changes on cash and cash equivalents | (1,637) | (3,863) | 4,561 |
Net change in cash and cash equivalents | (11,689) | 15,089 | 15,614 |
Cash and cash equivalents at beginning of period | 81,092 | 66,003 | 50,389 |
Cash and cash equivalents at end of period | 69,403 | 81,092 | 66,003 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 4,401 | 4,997 | 5,746 |
Cash paid for income taxes, net | $ 12,222 | $ 13,213 | $ 7,093 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Number of Common Shares outstanding | Treasury Shares | Additional Paid-In Capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interest | Total |
Balance at Dec. 31, 2016 | $ (5,632) | $ 206,504 | $ 45,356 | $ (67,913) | $ 13,762 | $ 192,077 | |
Net income | 45,179 | (130) | 45,049 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2016 | 27,850 | ||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2016 | 1,116 | ||||||
Net income attributable to Stoneridge, Inc. | 45,179 | ||||||
Unrealized gain(loss) on derivatives, net | (125) | (125) | |||||
Currency translation adjustments | 15,473 | 826 | 16,299 | ||||
Acquisition of noncontrolling interest, net | 15,820 | (16,995) | $ (14,458) | (15,633) | |||
Issuance of restricted Common Shares ( in shares) | 462 | (462) | |||||
Repurchased Common Shares for treasury | $ (1,486) | (1,486) | |||||
Repurchased Common Shares for treasury (in shares) | (132) | 132 | |||||
Share-based compensation | 6,162 | 6,162 | |||||
Balance at Dec. 31, 2017 | $ (7,118) | 228,486 | 92,264 | (69,560) | 244,072 | ||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2017 | 28,180 | ||||||
Treasury Stock, Shares, Ending Balance at Dec. 31, 2017 | 786 | ||||||
Cumulative effect of a accounting change | ASU 2016-09 | 1,729 | 1,729 | |||||
Net income | 53,848 | 53,848 | |||||
Net income attributable to Stoneridge, Inc. | 53,848 | ||||||
Unrealized gain(loss) on derivatives, net | 435 | 435 | |||||
Currency translation adjustments | (16,627) | (16,627) | |||||
Issuance of Common Shares ( in shares) | 461 | ||||||
Issuance of restricted Common Shares ( in treasury shares) | (461) | ||||||
Repurchased Common Shares for treasury | $ (1,762) | (1,762) | |||||
Repurchased Common Shares for treasury (in shares) | (153) | ||||||
Repurchased Common Shares for treasury (in treasury shares) | 153 | ||||||
Share-based compensation | 3,161 | 3,161 | |||||
Balance at Dec. 31, 2018 | $ (8,880) | 231,647 | 146,251 | (85,752) | $ 283,266 | ||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2018 | 28,488 | 28,488 | |||||
Treasury Stock, Shares, Ending Balance at Dec. 31, 2018 | 478 | 478 | |||||
Cumulative effect of a accounting change | 139 | $ 139 | |||||
Net income | 60,291 | 60,291 | |||||
Net income attributable to Stoneridge, Inc. | 60,291 | ||||||
Unrealized gain(loss) on derivatives, net | (292) | (292) | |||||
Currency translation adjustments | (5,428) | (5,428) | |||||
Issuance of Common Shares ( in shares) | 407 | ||||||
Issuance of restricted Common Shares ( in treasury shares) | (407) | ||||||
Repurchased Common Shares for treasury | $ (1,893) | (1,893) | |||||
Repurchased Common Shares for treasury (in shares) | (137) | ||||||
Repurchased Common Shares for treasury (in treasury shares) | 137 | ||||||
Common Share repurchase program | $ (40,000) | (10,000) | (50,000) | ||||
Common Share repurchase program (in shares) | (1,350) | ||||||
Common Share repurchase program (in treasury shares) | 1,350 | ||||||
Share-based compensation | 3,960 | 3,960 | |||||
Balance at Dec. 31, 2019 | $ (50,773) | $ 225,607 | $ 206,542 | $ (91,472) | $ 289,904 | ||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2019 | 27,408 | 27,408 | |||||
Treasury Stock, Shares, Ending Balance at Dec. 31, 2019 | 1,558 | 1,558 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Nature of Business | |
Organization and Nature of Business | 1. Organization and Nature of Business Stoneridge, Inc. and its subsidiaries are global designers and manufacturers of highly engineered electrical and electronic components, modules and systems for the automotive, commercial, off-highway, motorcycle and agricultural vehicle markets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of Stoneridge, Inc. and its wholly-owned and majority-owned subsidiaries (collectively, the “Company”). Intercompany transactions and balances have been eliminated in consolidation. The Company analyzes its ownership interests in accordance with Accounting Standards Codification (“ASC”) “Consolidations (Topic 810)” to determine whether they are a variable interest entity and, if so, whether the Company is the primary beneficiary. On January 31, 2017, the Company acquired Exploitatiemaatschappij Berghaaf B.V. (“Orlaco”), an electronics business which designs, manufactures and sells camera-based vision systems, monitors and related products. The acquisition was accounted for as a business combination, and accordingly, the Company’s consolidated financial statements herein include the results of Orlaco from the date of acquisition. See Acquisitions in Note 2 below to the consolidated financial statements for additional details regarding the Orlaco acquisition. The Company had a 74% controlling interest in PST Eletrônica Ltda. (“Stoneridge Brazil”) from December 31, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in Stoneridge Brazil, which was accounted for as an equity transaction. As such, Stoneridge Brazil is now a wholly owned subsidiary. See Note 4 to the consolidated financial statements for additional details regarding the acquisition of Stoneridge Brazil’s noncontrolling interest. The Company’s investment in Minda Stoneridge Instruments Ltd. (“MSIL”) for the years ended December 31, 2019, 2018 and 2017 has been determined to be an unconsolidated entity, and therefore is accounted for under the equity method of accounting based on the Company’s 49% ownership in MSIL. Accounting Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including certain self-insured risks and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because actual results could differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. Cash and Cash Equivalents The Company’s cash and cash equivalents include actively traded money market funds with short-term investments in marketable securities, primarily U.S. government securities. Cash and cash equivalents are stated at cost, which approximates fair value, due to the highly liquid nature and short-term duration of the underlying securities with original maturities of 90 days or less. Accounts Receivable and Concentration of Credit Risk Revenues are principally generated from the automotive, commercial, off-highway, motorcycle and agricultural vehicle markets. The Company’s largest customers are Ford Motor Company and Volvo, primarily related to the Control Devices and Electronics reportable segments and accounted for the following percentages of consolidated net sales for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Ford Motor Company 11 % 12 % 14 % Volvo 8 % 8 % 6 % Accounts receivable are recorded at the invoice price, net of an estimate of allowance for doubtful accounts and other reserves. Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due to the Company could be reduced by a material amount. The Company does not have collateral requirements with its customers. Sales of Accounts Receivable In prior years, the Company’s Stoneridge Brazil segment sold selected accounts receivable on a full recourse basis to an unrelated financial institution in Brazil. Stoneridge Brazil accounts for these transactions as sales of accounts receivable. As such, in accordance with ASC 860, “Transfers and Servicing”, the sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the loss on sale is recorded within interest expense, net in the consolidated statements of operations while the proceeds received from the sale are included in the cash flows from operating activities in the consolidated statements of cash flows. During 2017, Stoneridge Brazil sold $2,520 ( 7,983 Brazilian real (“R$”)) of accounts receivable at a loss of $86 (R $273 ), which represents the implicit interest on the transaction, and received proceeds of $2,434 (R $7,710 ). Stoneridge Brazil did not have any remaining credit exposure at December 31, 2017 related to the receivables sold. During 2019 and 2018, Stoneridge Brazil did not sell any of its accounts receivable. Inventories Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following: December 31 2019 2018 Raw materials $ 66,357 $ 54,382 Work-in-progress 5,582 4,710 Finished goods 21,510 20,186 Total inventories, net $ 93,449 $ 79,278 Inventory valued using the FIFO method was $82,910 and $64,745 at December 31, 2019 and 2018, respectively. Inventory valued using the average cost method was $10,539 and $14,533 at December 31, 2019 and 2018, respectively . Pre-production Costs Related to Long-term Supply Arrangements Engineering, research and development and other design and development costs for products sold on long-term supply arrangements are expensed as incurred unless the Company has a contractual guarantee for reimbursement from the customer which are capitalized as pre-production costs. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company either has title to the assets or has the noncancelable right to use the assets during the term of the supply arrangement are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets, typically three to seven years . Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee to a lump sum reimbursement from the customer are capitalized either as a component of prepaid expenses and other current assets or an investment and other long term assets, net within the consolidated balance sheets. Capitalized pre-production costs were $7,666 and $6,875 at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, $7,544 and $6,875 , respectively, were recorded as a component of prepaid expenses and other current assets on the consolidated balance sheets while the remaining amounts were recorded as a component of investments and other long-term assets, net. Disposal of Non-Core Products On April 1, 2019, the Company entered into an Asset Purchase Agreement by and among the Company, the Company’s wholly owned subsidiary, Stoneridge Control Devices, Inc. (“SCD”), and Standard Motor Products, Inc. (“SMP”). On the same day pursuant to the APA, in exchange for $40,000 (subject to a post-closing inventory adjustment which was a payment to SMP of $1,573 ) and the assumption of certain liabilities, the Company and SCD sold to SMP, product lines and assets related to certain non-core switches and connectors (the “Non-core Products”). On April 1, 2019, the Company and SMP also entered into certain ancillary agreements, including a transition services agreement, a contract manufacturing agreement and a supply agreement, pursuant to which the Company will provide and be compensated for certain manufacturing, transitional, and administrative and support services to SMP on a short-term basis. The products related to the Non-core Products were manufactured in Juarez, Mexico and Canton, Massachusetts, and include ball switches, ignition switches, rotary switches, courtesy lamps, toggle switches, headlamp switches and other related components. On April 1, 2019, the Company’s Control Devices segment recognized net sales and costs of goods sold of $4,160 and $2,775 , respectively, for the one-time sale of Non-core Product finished goods inventory and a gain on disposal of $33,921 ,net for the sale of fixed assets, intellectual property and customer lists associated with the Non-core Products less transaction costs. During the three months ended March 31, 2019, the Company recognized transaction costs associated with the disposal of Control Devices’ Non-core Products of $322 within SG&A. The Company received $1,824 for services provided pursuant to the transition services agreement which were recognized as a reduction in SG&A for the year ended December 31, 2019. Pursuant to the contract manufacturing agreement, the Company recognized sales and operating income for the production of Non-core Products of $26,304 and $1,458 for the year ended December 31, 2019, respectively. The Company also received $745 for reimbursement of retention and facility costs from SMP pursuant to the contract manufacturing agreement which was recognized as a reduction to SG&A for the year ended December 31, 2019. Non-core Products net sales and operating income, including sales to SMP pursuant to the contract manufacturing agreement, were $41,560 and $4,831 for the year ended December 31, 2019, respectively, $44,537 and $9,086 for the year ended December 31, 2018, respectively, and $43,339 and $7,991 for the year ended December 31, 2017, respectively. Acquisitions Orlaco On January 31, 2017, Stoneridge B.V., an indirect wholly-owned subsidiary of Stoneridge, Inc., acquired Orlaco. Orlaco designs, manufactures and sells camera-based vision systems, monitors and related products primarily to the heavy off-road machinery, commercial vehicle, lifting crane and warehousing and logistics industries. Stoneridge and Orlaco jointly developed the MirrorEye camera monitor system, which is a vision-based system solution to improve the safety and fuel economy for commercial vehicles. The MirrorEye camera monitor system integrates Orlaco’s vision processing technology and Stoneridge’s driver information capabilities as well as the combined software capabilities of both businesses. The acquisition of Orlaco enhanced the Stoneridge’s Electronics segment global technical capabilities in vision systems and facilitated entry into new markets. The aggregate consideration for the Orlaco acquisition was €74,939 ( $79,675 ), which included customary estimated adjustments to the purchase price. The Company paid €67,439 ( $71,701 ) in cash. The purchase price was subject to certain customary adjustments set forth in the purchase agreement. The Company was required to pay an additional amount up to €7,500 as contingent consideration (“earn-out consideration”) if certain performance targets are achieved during the first two years. See Note 9 for additional details on the Orlaco contingent consideration. The Company recognized $1,259 of acquisition related costs in the consolidated statement of operations as a component of selling, general and administrative (“SG&A”) expense for the year ended December 31, 2017. There were no acquisition related costs for the years ended December 31, 2019 or 2018. The Company’s statement of operations included $1,636 of expense in cost of goods sold (“COGS”) for the year ended December 31, 2017 associated with the step-up of the Orlaco inventory to fair value. The Company’s statement of operations included $369 and $4,853 of expense for the fair value adjustment for earn-out consideration in SG&A expenses for the years ended December 31, 2018 and 2017, respectively. The earn-out consideration obligation related to Orlaco of $8,474 was paid in March 2019 and recorded in the consolidated statement of cash flows within operating and financing activities in the amounts of $5,080 and $3,394 , respectively, for the year ended December 31, 2019. The Orlaco earn-out consideration reached the capped amount of €7,500 as of the quarter ended March 31, 2018 due to actual performance exceeding forecasted performance and remained at the capped amount until it was paid in March 2019. The following unaudited pro forma information reflects the Company’s consolidated results of operations as if the acquisition had taken place on January 1, 2017. The unaudited pro forma information is not necessarily indicative of the results of operations that the Company would have reported had the transaction actually occurred at the beginning of these periods, nor is it necessarily indicative of future results. Year ended December 31, 2017 Net sales $ 829,474 Net income attributable to Stoneridge, Inc. and subsidiaries $ 45,283 Property, Plant and Equipment Property, plant and equipment are recorded at cost and consist of the following: December 31 2019 2018 Land and land improvements $ 4,550 $ 4,619 Buildings and improvements 39,263 37,234 Machinery and equipment 226,076 212,225 Office furniture and fixtures 9,708 9,929 Tooling 76,933 75,620 Information technology 32,410 27,179 Vehicles 614 872 Leasehold improvements 4,588 2,799 Construction in progress 17,312 23,064 Total property, plant, and equipment 411,454 393,541 Less: accumulated depreciation (288,971) (281,328) Property, plant and equipment, net $ 122,483 $ 112,213 Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $24,904 , $22,786 and $21,490 , respectively. Depreciable lives within each property classification are as follows: Buildings and improvements 10 - 40 years Machinery and equipment 3 - 10 years Office furniture and fixtures 3 - 10 years Tooling 2 - 7 years Information technology 3 - 7 years Vehicles 3 - 7 years Leasehold improvements shorter of lease term or 3 - 10 years Maintenance and repair expenditures that are not considered improvements and do not extend the useful life of the property, plant and equipment are charged to expense as incurred. Expenditures for improvements and major renewals are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss on the disposition is recorded in the consolidated statements of operations as a component of SG&A expenses. Impairment of Long-Lived or Finite-Lived Assets The Company reviews the carrying value of its long-lived assets and finite-lived intangible assets for impairment when events or circumstances indicate that their carrying value may not be recoverable. Factors the Company considers important that could trigger testing of the related asset groups for an impairment include current period operating or cash flow losses combined with a history of operating or cash flow losses, a projection or forecast that demonstrates continuing losses, significant adverse changes in the business climate within a particular business or current expectations that a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. To test for impairment, the estimated undiscounted cash flows expected to be generated from the use and disposal of the asset or asset group is compared to its carrying value. An asset group is established by identifying the lowest level of cash flows generated by the group of assets that are largely independent of cash flows of other assets. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify projected cash flows. If these undiscounted cash flows are less than their respective carrying values, an impairment charge would be recognized to the extent that the carrying values exceed estimated fair values. The estimation of undiscounted cash flows and fair value requires us to make assumptions regarding future operating results over the life of the asset or the life of the primary asset in the asset group. The results of the impairment testing are dependent on these estimates which require judgment. The occurrence of certain events, including changes in economic and competitive conditions, could impact cash flows eventually realized and management’s ability to accurately assess whether an asset is impaired. Goodwill and Other Intangible Assets Goodwill The total purchase price associated with acquisitions is allocated to the acquisition date fair values of identifiable assets acquired and liabilities assumed with the excess purchase price assigned to goodwill. Goodwill was $35,874 and $36,717 at December 31, 2019 and 2018, respectively, all of which relates to the Electronics segment. Goodwill is not amortized, but instead is tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired, by applying a fair value-based test. In conducting our annual impairment assessment testing, we first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is performed. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if we elect not to perform a qualitative assessment of a reporting unit, we then compare the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The Company utilizes an income statement approach to estimate the fair value of a reporting unit and a market valuation approach to further support this analysis. The income approach is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of cash flows. We believe that this approach is appropriate because it provides a fair value estimate based on the reporting unit’s expected long-term operating cash flow performance. This approach also mitigates the impact of cyclical trends that occur in the industry. Fair value is estimated using internally developed forecasts, as well as commercial and discount rate assumptions. The discount rate used is the value-weighted average of our estimated cost of equity and of debt (“cost of capital”) derived using both known and estimated customary market metrics. Our weighted average cost of capital is adjusted to reflect a risk factor, if necessary. Other significant assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to management’s application of these assumptions to this analysis, we believe that the income statement approach provides a reasonable estimate of the fair value of a reporting unit. The market valuation approach is used to further support our analysis. There was no impairment of goodwill for the years ended December 31, 2019, 2018 or 2017. Goodwill and changes in the carrying amount of goodwill for the Electronics segment for the years ended December 31, 2019 and 2018 were as follows: Balance at January 1, 2019 $ 36,717 Currency translation (843) Balance at December 31, 2019 $ 35,874 Balance at January 1, 2018 $ 38,419 Currency translation (1,702) Balance at December 31, 2018 $ 36,717 The Company’s cumulative goodwill impairment loss since inception was $300,083 at December 31, 2019 and 2018, which includes Stoneridge Brazil’s goodwill impairment in 2014 and goodwill impairment recorded by the Company’s Control Devices segment in 2008 and 2004. Other Intangible Assets Other intangible assets, net at December 31, 2019 and 2018 consisted of the following: Acquisition Accumulated As of December 31, 2019 cost amortization Net Customer lists $ 50,750 $ (17,466) $ 33,284 Tradenames 20,041 (6,687) 13,354 Technology 15,231 (7,353) 7,878 Capitalized software development 3,606 - 3,606 Total $ 89,628 $ (31,506) $ 58,122 Acquisition Accumulated As of December 31, 2018 cost amortization Net Customer lists $ 52,200 $ (14,549) $ 37,651 Tradenames 20,689 (5,884) 14,805 Technology 15,581 (6,005) 9,576 Total $ 88,470 $ (26,438) $ 62,032 Other intangible assets, net at December 31, 2019 for customer lists, tradenames, technology and capitalized software development include $23,019 , $4,561, $3,498 and $2,233 , respectively, related to the Electronics segment. Customer lists, tradenames and technology of $10,265 , $8,793 and $4,270 , respectively, related to the Stoneridge Brazil segment at December 31, 2019. Capitalized software development and technology of $1,373 and $110 , respectively, related to the Control Devices segment at December 31, 2019. The Company designs and develops software that will be embedded into certain products and sold to customers. Software development costs are capitalized after the software product development reaches technological feasibility and until the software product becomes available for general release to customers. These intangible assets will be amortized using the straight-line method over estimated useful lives generally ranging from three to seven years . The Company recognized $5,955 , $6,406 and $6,440 of amortization expense related to intangible assets in 2019, 2018 and 2017, respectively. Amortization expense is included as a component of SG&A on the consolidated statements of operations. Annual amortization expense for intangible assets is estimated to be approximately $5,722 for the years 2020 through 2024 . The weighted-average remaining amortization period is approximately 11 years . For the year ended December 31, 2018 the Company recognized $202 of intangible impairment charge related to the Electronics segment customer lists as a result of the European Aftermarket restructuring as noted in Note 13. There were no intangible impairment charges for the years ended December 31, 2019 or 2017. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of December 31 2019 2018 Compensation related liabilities $ 19,566 $ 18,717 Contingent consideration (A) - 8,602 Product warranty and recall obligations 7,685 7,211 Other (B) 27,972 23,350 Total accrued expenses and other current liabilities $ 55,223 $ 57,880 (A) Accrued contingent consideration includes the Orlaco earn-out consideration, as referenced in Note 2 and Note 10, and is included in accrued expenses and other current liabilities for the year ended December 31, 2018. Orlaco earn-out consideration of $8,474 was paid in March 2019. (B) “Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total. Income Taxes The Company accounts for income taxes using the liability method. Deferred income taxes reflect the tax consequences on future years of differences between the tax basis of assets and liabilities and their financial reporting amounts. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not to occur. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized (See Note 6). In making such a determination, the Company considers all available positive and negative evidence, including future release of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. Release of some or all of a valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The Company’s policy is to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. The Tax Cuts and Jobs Act (“Tax Legislation”) created a provision known as Global Intangible Low-Taxed Income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. The Company has made an accounting policy election to reflect GILTI taxes, if any, as a current period tax expense when incurred. Currency Translation The financial statements of foreign subsidiaries, where the local currency is the functional currency, are translated into U.S. dollars using exchange rates in effect at the period end for assets and liabilities and average exchange rates during each reporting period for the results of operations. Adjustments resulting from translation of financial statements are reflected as a component of accumulated other comprehensive loss in the Company’s consolidated balance sheets. Foreign currency transactions are remeasured into the functional currency using translation rates in effect at the time of the transaction with the resulting adjustments included on the consolidated statements of operations within other expense (income), net. These foreign currency transaction losses (gains), including the impact of hedging activities, were $372 , $(487) and $500 for the years ended December 31, 2019, 2018 and 2017, respectively. Revenue Recognition and Sales Commitments The Company recognizes revenue when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. The Company recognizes monitoring service revenues over time, as the services are provided to customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The Company collects certain taxes and fees on behalf of government agencies and remits such collections on a periodic basis. The taxes are collected from customers but are not included in net sales. Estimated returns are based on historical authorized returns. The Company often enters into agreements with its customers at the beginning of a given vehicle’s expected production life. Once such agreements are entered into, it is the Company’s obligation to fulfill the customers’ purchasing requirements for the entire production life of the vehicle. These agreements are subject to potential renegotiation from time to time, which may affect product pricing. See Note 3 for additional disclosure. Shipping and Handling Costs Shipping and handling costs are included in COGS on the consolidated statements of operations. Product Warranty and Recall Reserves Amounts accrued for product warranty and recall claims are established based on the Company’s best estimate of the amounts necessary to settle existing and future claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. Our estimate is based on historical trends of units sold and claim payment amounts, combined with our current understanding of the status of existing claims and discussions with our customers. The key factors in our estimate are the stated or implied warranty period, the customer source, customer policy decisions regarding warranties and customers seeking to holding the company responsible for their product warranties. The Company can provide no assurances that it will not experience material claims or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued. The current portion of the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Product warranty and recall includes $3,111 and $3,283 of a long-term liability at December 31, 2019 and 2018, respectively, which is included as a component of other long-term liabilities on the consolidated balance sheets. The following provides a reconciliation of changes in the product warranty and recall reserve: Year ended December 31 2019 2018 Product warranty and recall at beginning of period $ 10,494 $ 9,979 Accruals for warranties established during period 7,131 6,217 Aggregate changes in pre-existing liabilities due to claim developments 1,037 646 Settlements made during the period (7,600) (5,831) Foreign currency translation (266) (517) Product warranty and recall at end of period $ 10,796 $ 10,494 Design and Development Costs Expenses associated with the development of new products, and changes to existing products, other than capitalized software development costs, are charged to expense as incurred, and are included in the Company’s consolidated statements of operations as a separate component of costs and expenses. These product development costs amounted to $52,198 , $51,074 and $48,877 for the years ended December 31, 2019, 2018 and 2017, respectively, or 6.3% , 5.9% and 5.9% of net sales for these respective periods. Research and Development Activities The Company enters into research and development contracts with certain customers, which generally provide for reimbursement of costs. The Company incurred and was reimbursed for contracted research and development costs of $15,096 , $16,540 and $14,946 for the years ended December 31, 2019, 2018 and 2017, respectively. Share-Based Compensation At December 31, 2019, the Company had two types of share-based compensation plans: (1) 2016 Long-Term Incentive Plan for employees and (2) the 2018 Amended and Restated Directors’ Restricted Shares Plan, for non-employee directors. See Note 8 for additional details on share-based compensation plans. Total compensation expense recognized as a component of SG&A expense on the consolidated statements of operations for share-based compensation arrangements was $6,191 , which included accelerated expense associated with the retirement of eligible employees, $5,632 , which inclu |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Revenue | 3. Revenue The Company adopted ASC 606 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning after January 1, 2018 are presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for revenue recognition prior to the adoption of ASC 606. The Company did not record a cumulative adjustment related to the adoption of ASC 606, and the effects of the adoption were not significant. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The expected costs associated with our base warranties continue to be recognized as expense when the products are sold. Customer returns only occur if products do not meet the specifications of the contract and are not connected to any repurchase obligations of the Company. The Company does not have any financing components or significant payment terms as payment occurs shortly after the point of sale. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Amounts billed to customers related to shipping and handling costs are included in net sales in the consolidated statements of operations. Shipping and handling costs associated with outbound freight after control over a product is transferred to the customer are accounted for as a fulfillment cost and are included in cost of sales. Revenue by Reportable Segment Control Devices. Our Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle. This segment includes product lines such as actuators, sensors, switches and connectors. We sell these products principally to the automotive market in the North American, European, and Asia Pacific regions. To a lesser extent, we also sell these products to the commercial vehicle and agricultural markets in our North America, European and Asia Pacific regions. Our customers included in these markets primarily consist of original equipment manufacturers (“OEM”) and companies supplying components directly to the OEMs (“Tier 1 supplier”). Electronics. Our Electronics segment designs and manufactures driver information systems, camera-based vision systems, connectivity and compliance products and electronic control units. These products are sold principally to the commercial vehicle market primarily through our OEM and aftermarket channels in the North American and European regions, and to a lesser extent, the Asia Pacific region. The camera-based vision systems and related products are sold principally to the off-highway vehicle market in the North American and European regions. Stoneridge Brazil. Our Stoneridge Brazil segment primarily serves the South American region and specializes in the design, manufacture and sale of vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices and telematics solutions. Stoneridge Brazil sells its products through the aftermarket distribution channel, to factory authorized dealer installers, also referred to as original equipment services, direct to OEMs and through mass merchandisers. In addition, monitoring services and tracking devices are sold directly to corporate and individual consumers. The following tables disaggregate our revenue by reportable segment and geographical location (1) for the periods ended December 31, 2019, 2018 and 2017: Control Devices Electronics Stoneridge Brazil Consolidated Year ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Net Sales: North America $ 365,010 $ 395,148 $ 409,596 $ 92,623 $ 85,363 $ 62,174 $ - $ - $ - $ 457,633 $ 480,511 $ 471,770 South America - - - - - - 67,534 80,175 94,533 67,534 80,175 94,533 Europe 22,467 14,727 8,164 236,994 255,400 216,577 - - - 259,461 270,127 224,741 Asia Pacific 44,083 31,422 29,768 5,578 3,964 3,632 - - - 49,661 35,386 33,400 Total net sales $ 431,560 $ 441,297 $ 447,528 $ 335,195 $ 344,727 $ 282,383 $ 67,534 $ 80,175 $ 94,533 $ 834,289 $ 866,199 $ 824,444 (1) Company sales based on geographic location are where the sale originates not where the customer is located. Performance Obligations For OEM and Tier 1 supplier customers, the Company typically enters into contracts with its customers to provide serial production parts that consist of a set of documents including, but not limited to, an award letter, master purchase agreement and master terms and conditions. For each production product, the Company enters into separate purchase orders that contain the product specifications and an agreed-upon price. The performance obligation does not exist until a customer release is received for a specific number of parts. The majority of the parts sold to OEM and Tier 1 suppliers are specifically customized to the specific customer, with the exception of off-highway products that are common across all customers. The transaction price is equal to the contracted price per part and there is no expectation of material variable consideration in the transaction price. For most customer contracts, the Company does not have an enforceable right to payment at any time prior to when the parts are shipped or delivered to the customer; therefore, the Company recognizes revenue at the point in time it satisfies a performance obligation by transferring control of a part to the customer. Certain customer contracts contain an enforceable right to payment if the customer terminates the contract for convenience and therefore are recognized over time using the cost to complete input method. Our aftermarket products are focused on meeting the demand for repair and replacement parts, compliance parts and accessories and are sold primarily to aftermarket distributors and mass retailers in our South American, European and North American markets. Aftermarket products have one type of performance obligation which is the delivery of aftermarket parts and spare parts. For aftermarket customers, the Company typically has standard terms and conditions for all customers. In addition, aftermarket products have alternative use as they can be sold to multiple customers. Revenue for aftermarket part production contracts is recognized at a point in time when the control of the parts transfer to the customer which is based on the shipping terms. Aftermarket contracts may include variable consideration related to discounts and rebates and is included in the transaction price upon recognizing the product revenue. A small portion of the Company’s sales are comprised of monitoring services that include both monitoring devices and fees to individual, corporate, fleet and cargo customers in our Stoneridge Brazil segment. These monitoring service contracts are generally not capable of being distinct and are accounted for as a single performance obligation. We recognize revenue for our monitoring products and services contracts over the life of the contract. There is no variable consideration associated with these contracts. The Company has the right to consideration from a customer in the amount that corresponds directly with the value to the customer of the Company’s performance to date. Therefore the Company recognizes revenue over time using the practical expedient ASC 606-10-55-18 in the amount the Company has a “right to invoice” rather than selecting an output or input method. Contract Balances The Company had no material contract assets, contract liabilities or capitalized contract acquisition costs as of December 31, 2019 or 2018. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | 4. Investments Minda Stoneridge Instruments Ltd. The Company has a 49% interest in MSIL, a company based in India that manufactures electronics, instrumentation equipment and sensors for the motorcycle, commercial vehicle and automotive markets. The investment is accounted for under the equity method of accounting. The Company’s investment in MSIL, recorded as a component of investments and other long-term assets, net on the consolidated balance sheets, was $12,701 and $11,288 as of December 31, 2019 and 2018, respectively. Equity in earnings of MSIL included in the consolidated statements of operations were $1,578, $2,038 and $1,636 for the years ended December 31, 2019, 2018 and 2017, respectively. PST Eletrônica Ltda. The Company had a 74% controlling interest in Stoneridge Brazil from December 21, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in Stoneridge Brazil for $1,500 in cash along with earn-out consideration. The Company will be required to pay additional earn-out consideration, which is not capped, based on Stoneridge Brazil’s financial performance in either 2020 or 2021. See Note 10 for the fair value and foreign currency adjustments of the earn-out consideration for the current and prior periods. The transaction was accounted for as an equity transaction, and therefore no gain or loss was recognized in the statement of operations or comprehensive income. The noncontrolling interest balance on the May 16, 2017 acquisition date was $14,458 , of which $31,453 and ($16,995) was related to the carrying value of the investment and foreign currency translation, respectively, and accordingly these amounts were reclassified to additional paid-in capital and accumulated other comprehensive loss, respectively. The following table sets forth a summary of the changes in noncontrolling interest: Year ended December 31 2017 Noncontrolling interest at beginning of period $ 13,762 Net loss (130) Foreign currency translation 826 Comprehensive income 696 Acquisition of noncontrolling interest (14,458) Noncontrolling interest at end of period $ - Stoneridge Brazil has dividends payable to former noncontrolling interest holders of Brazilian real (“R$”) 24,154 ($6,010) and R $23,204 ( $5,980 ) as of December 31, 2019 and 2018, respectively. T he dividends payable balance includes monetary correction of R $3,703 ($921) and R $2,752 ($709) as of December 31, 2019 and 2018, respectively, based on the Brazilian National Extended Consumer Price inflation index (“IPCA”). The dividend payable related to Stoneridge Brazil was recorded within other current liabilities on the consolidated balance sheet as of December 31, 2019 and 2018. These dividends were paid in January 2020. Other Investments In December 2018, the Company entered into an agreement to make a $10,000 investment in a fund managed by Autotech Ventures (“Autotech”), a venture capital firm focused on ground transportation technology which is accounted for in accordance with ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-19).” This investment does not have a readily determinable fair value and is measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company’s $10,000 investment in the Autotech fund will be contributed over the expected ten year life of the fund. The Company contributed $1,600 and $437 to the Autotech Ventures fund during the years ended December 31, 2019 and 2018, respectively. The Autotech investment recorded in investments and other long-term assets in the consolidated balance sheet was $1,827 and $437 as of December 31, 2019 and 2018, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Debt | 5. Debt Interest rates at Year ended December 31, 2019 2018 December 31,2019 Maturity Revolving Credit Facility Credit Facility $ 126,000 $ 96,000 2.77 - 2.81% June 2024 Debt Stoneridge Brazil short-term obligations - 989 Stoneridge Brazil long-term notes 972 1,527 7.00% November 2021 Suzhou short-term credit line 2,154 - 4.70% - 5.00% August 2020 Total debt 3,126 2,516 Less: current portion (2,672) (1,533) Total long-term debt, net $ 454 $ 983 Revolving Credit Facility On September 12, 2014, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Agreement”). The Amended Agreement provides for a $300,000 revolving credit facility, which replaced the Company’s existing $100,000 asset-based credit facility and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. On June 5, 2019, the Company entered into the Fourth Amended and Restated Credit Agreement (the “2019 Credit Facility”). The 2019 Credit Facility provides for a $400,000 senior secured revolving credit facility and it replaced and superseded the Amended Agreement. The 2019 Credit Facility has an accordion feature which allows the Company to increase the availability by up to $150,000 upon the satisfaction of certain conditions and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. The 2019 Credit Facility has a termination date of June 5, 2024. In 2019, the Company capitalized $1,366 of deferred financing costs as a result of entering into the 2019 Credit Facility. In connection with the 2019 Credit Facility, the Company wrote off a portion of the previously recorded deferred financing costs of $275 in interest expense, net during the year ended December 31, 2019. Borrowings under the 2019 Credit Facility bear interest at either the Base Rate or the LIBOR rate, at the Company’s option, plus the applicable margin as set forth in the 2019 Credit Facility. The 2019 Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio. The 2019 Credit Facility contains customary affirmative covenants and representations. The 2019 Credit Facility also contains customary negative covenants, which, among other things, are subject to certain exceptions, including restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The 2019 Credit Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) non-payment of principal and non-payment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross default of other debt, final judgments and other adverse orders in excess of $30,000 , (v) any loan document shall cease to be a legal, valid and binding agreement, (vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000 , (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings. Borrowings outstanding on the 2019 Credit Facility and the Amended Agreement as applicable, were $126,000 and $96,000 , respectively at December 31, 2019 and 2018, respectively. The Company was in compliance with all credit facility covenants at December 31, 2019 and 2018, respectively. The Company has outstanding letters of credit of $1,768 and $1,815 at December 31, 2019 and 2018, respectively. Debt Stoneridge Brazil maintains long-term notes used for working capital purposes which have fixed or variable interest rates. The weighted-average interest rate of long-term debt of Stoneridge Brazil at December 31, 2019 was 7.00% . Depending on the specific note, interest is payable either monthly or annually. Principal repayments of Stoneridge Brazil debt at December 31, 2019 are as follows: $518 in 2020 and $454 in 2021. In December 2019, the Company’s wholly-owned subsidiary located in Campinas, Brazil, Stoneridge Brazil, established an overdraft credit line which allows overdrafts on Stoneridge Brazil’s bank account up to a maximum level of R $5,000 , or $1,244 , at December 31, 2019. There was no balance outstanding on the overdraft credit line as of December 31, 2019. The Company’s wholly-owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary’s bank account up to a maximum level of 20,000 Swedish krona, or $2,136 and $2,259 at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, there was no balance outstanding on this overdraft credit line. The Company’s wholly-owned subsidiary located in Suzhou, China, has two credit lines (the “Suzhou credit line”) which allow up to a maximum borrowing level of 60,000 Chinese yuan, or $8,618 at December 31, 2019. At December 31, 2019 there was $2,154 in borrowing outstanding on the Suzhou credit line with a weighted-average interest rate of 4.80% . The Suzhou credit line is included on the consolidated balance sheet within current portion of debt. At December 31, 2018, there was no balance outstanding on these credit lines. The Company was in compliance with all Credit Facility and debt covenants at December 31, 2019 and 2018. At December 31, 2019, the future maturities of the Credit Facility and debt were as follows: Year ended December 31, 2020 $ 2,672 2021 454 2022 - 2023 - 2024 126,000 Total $ 129,126 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes The income tax expense included in the accompanying consolidated statement of operations represents federal, state and foreign income taxes. The components of income before income taxes and the provision for income taxes consist of the following: Year ended December 31, 2019 2018 2017 Income before income taxes: Domestic $ 30,464 $ 32,907 $ 36,657 Foreign 37,929 32,151 15,925 Total income before income taxes $ 68,393 $ 65,058 $ 52,582 Provision for income taxes: Current: Federal $ (4,384) $ 2,370 $ 2,478 State and foreign 6,900 6,288 11,014 Total current expense 2,516 8,658 13,492 Deferred: Federal $ 6,780 $ 3,788 $ (2,585) State and foreign (1,194) (1,236) (3,374) Total deferred benefit 5,586 2,552 (5,959) Total income tax expense $ 8,102 $ 11,210 $ 7,533 A reconciliation of the Company’s effective income tax rate to the statutory federal tax rate is as follows: Year ended December 31, 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 0.2 0.1 (0.8) Tax credits and incentives (9.2) (8.4) (4.7) Foreign tax rate differential 2.0 1.1 (4.5) Impact of change in enacted tax law 1.5 (1.3) (17.2) Change in valuation allowance (0.2) (3.0) 4.2 U.S. tax on foreign earnings (4.9) 1.0 - Compensation and benefits (0.7) 1.3 (1.1) Other (A) 2.1 5.4 3.4 Effective income tax rate 11.8 % 17.2 % 14.3 % (A) The amount for 2018 includes the impact of reducing tax attributes due to legal entity consolidation which is completely offset with change in valuation allowance. Significant components of the Company’s deferred tax assets and liabilities were as follows: As of December 31 2019 2018 Deferred tax assets: Inventories $ 2,254 $ 2,135 Employee compensation and benefits 2,105 1,225 Accrued liabilities and reserves 3,211 4,181 Property, plant and equipment 552 647 Tax loss carryforwards 7,536 8,437 Tax credit carryforwards 15,448 22,772 Right-of-use assets 4,768 - Other 582 410 Gross deferred tax assets 36,456 39,807 Less: Valuation allowance (8,586) (8,962) Deferred tax assets less valuation allowance 27,870 30,845 Deferred tax liabilities: Property, plant and equipment (2,071) (2,545) Intangible assets (14,846) (16,683) Outside basis difference in foreign subsidiary (13,750) (13,750) Lease liability (4,695) - Other (375) (641) Gross deferred tax liabilities (35,737) (33,619) Net deferred tax liabilities $ (7,867) $ (2,774) The balance sheet classification of our net deferred tax asset is shown below: Year ended December 31 2019 2018 Long-term deferred tax assets $ 4,663 $ 12,121 Long-term deferred tax liabilities (12,530) (14,895) Net deferred tax liabilities $ (7,867) $ (2,774) The Company has recognized deferred taxes related to the expected foreign currency impact upon repatriation from foreign subsidiaries not considered indefinitely reinvested. Any foreign tax on repatriation of earnings not considered to be indefinitely reinvested is expected to be immaterial. At December 31, 2018, the aggregate undistributed earnings of our foreign subsidiaries amounted to $56,894 . Based on the Company’s review of both positive and negative evidence regarding the realizability of deferred tax assets at December 31, 2019, a valuation allowance continues to be recorded against certain deferred tax assets based upon the conclusion that it was more likely than not they would not be realized. The future provision for income taxes may be significantly impacted by changes to valuation allowances in certain countries. The Company has net operating loss carry forwards of $57,817 and $23,851 for state and foreign tax jurisdictions, respectively. The state net operating losses expire from 2026-2035 or have indefinite lives and the foreign net operating losses expire from 2020-2024 or have indefinite lives. The Company has general business and foreign tax credit carry forwards of $15,833 , $1,711 and $1,354 for U.S. federal, state and foreign jurisdictions, respectively. The U.S. federal general business credits, if unused, begin to expire in 2025 , and the state and foreign tax credits expire at various times. The following is a reconciliation of the Company’s total gross unrecognized tax benefits: 2019 2018 2017 Balance as of January 1 $ 3,481 $ 3,645 $ 3,839 Tax positions related to the current year: Additions - - 31 Tax positions related to the prior years: Reductions (32) (165) (176) Expirations of statutes of limitation - 1 (49) Balance as of December 31 $ 3,449 $ 3,481 $ 3,645 At December 31, 2019, the Company has classified $0 as a noncurrent liability and $3,449 as a reduction to non-current deferred income tax assets. If the Company’s tax positions are sustained by the taxing authorities in favor of the Company, the amount that would affect the Company’s effective tax rate is approximately $3,449 and $3,481 at December 31, 2019 and 2018, respectively. The Company classifies interest expense and, if applicable, penalties which could be assessed related to unrecognized tax benefits as a component of income tax expense. For the years ended December 31, 2019, 2018 and 2017, the Company recognized approximately $(5) , $(13) and $(33) of gross interest and penalties, respectively. The Company has accrued approximately $0 and $19 for the payment of interest and penalties at December 31, 2019 and 2018, respectively. The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following table summarizes the open tax years for each jurisdiction: Jurisdiction Open Tax Years U.S. Federal 2016 - 2019 Argentina 2014 - 2019 Brazil 2014 - 2019 China 2016 - 2019 France 2017 - 2019 Germany 2016 - 2019 Italy 2014 - 2019 Mexico 2014 - 2019 Netherlands 2016 - 2019 Spain 2015 - 2019 Sweden 2014 - 2019 United Kingdom 2018 - 2019 |
Operating Lease Commitments
Operating Lease Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 7. Leases The Company has various cancelable and noncancelable leased assets within all segments, which include certain properties, vehicles and equipment of which are all classified as operating leases. Payments for these leases are generally fixed; however, several of our leases are composed of variable lease payments including index-based payments or inflation-based payments based on a Consumer Price Index (“CPI”) or other escalators. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under Leases (Topic 842), the Company determines an arrangement is a lease when we have the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Other than the leases that we have already identified, we are not aware of any material leases that have not yet commenced. For leases that have a calculated lease term of 12 months or less and do not include an option to purchase the underlying asset which we are reasonably certain to exercise, the Company has made the policy election to not apply the recognition requirements in Leases (Topic 842). For these short-term leases, the Company recognizes the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. For the leases identified, right of use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company used the calculated incremental borrowing rate based on the information available at the implementation date, and going forward at the commencement date, in determining the present value of lease payments. The Company will use the implicit rate when readily determinable. The ROU asset includes the carrying amount of the lease liability, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. The Company’s lease terms may include options to extend or terminate the lease and such options are included in the lease term when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease expenses are recognized within COGS, SG&A and design and development (“D&D”) costs in the consolidated statements of operations. The Company has made the policy election to account for lease and non-lease components as a single lease component for all of its leases. As a result of the Company’s election to apply the modified retrospective transition method at the effective date of the standard, information prior to January 1, 2019 has not been restated and continues to be reported under the accounting standards in effect for the period (ASC Topic 840). The components of lease expense are as follows: Year ended December 31 2019 Operating lease cost $ 5,740 Short-term lease cost 529 Variable lease cost 363 Total lease cost $ 6,632 Balance sheet information related to leases is as follows: As of December 31 2019 Assets: Operating lease right-of-use assets $ 22,027 Liabilities: Operating lease current liability, included in other current liabilities $ 4,556 Operating lease long-term liability 17,971 Total leased liabilities $ 22,527 Maturities of operating lease liabilities are as follows: As of December 31 2019 2020 $ 5,238 2021 4,613 2022 3,593 2023 3,489 2024 3,171 Thereafter 7,328 Total future minimum lease payments $ 27,432 Less: imputed interest (4,905) Total lease liabilities $ 22,527 Weighted-average remaining lease term and discount rate for operating leases is as follows: As of December 31 2019 Weighted-average remaining lease term (in years) 6.71 Weighted-average discount rate 5.75 % Other information: Year ended December 31, 2019 Operating cash flows: Cash paid related to operating lease obligations $ 5,558 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 6,065 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation Plans | 8. Share-Based Compensation Plans In May 2016, the Company’s shareholders approved the 2016 Long-Term Incentive Plan (the “2016 Plan”) and reserved 1,800,000 Common Shares (of which the maximum number of Common Shares which may be issued). Under the 2016 Plan, as of December 31, 2019, the Company has granted 1,200,753 share units, of which 476,870 were time-based with cliff vesting using the straight-line method and 723,883 were performance-based. There are 779,684 shares available to be granted under the 2016 Plan at December 31, 2019. In 2019, 2018 and 2017, pursuant to the 2016 Plan, the Company granted time-based share units and performance-based performance shares. The time-based share units cliff vest three years after the date of grant. The performance based performance shares vest and are no longer subject to forfeiture upon the recipient remaining an employee of the Company for three years from the date of grant and, for a portion of the annual awards, upon the Company attaining certain targets of performance measured against a peer group’s three year performance in terms of total shareholder return and, for the remaining portion of the annual awards, upon achieving certain earnings per share targets and return on invested capital targets established by the Company during the performance period of the award. The allocation of performance shares granted between total shareholder return, earnings per share and return on invested capital were as follows for the years ended December 31: 2019 2018 2017 Total shareholder return 45 % 55 % 55 % Earnings per share 36 % 45 % 45 % Return on invested capital 18 % - % - % In April 2005, the Company adopted the Directors’ Restricted Shares Plan (the “Director Share Plan”) and reserved 500,000 Common Shares for issuance under the Director Share Plan. In May 2013, shareholders approved an amendment to the Director Share Plan to increase the number of shares for issuance by 200,000 to 700,000 . In May 2018, the Company’s shareholders approved the 2018 Amended and Restated Director’s Restricted Shares Plan (the “2018 Director Share Plan”) to increase the number of shares for issuance by 150,000 to 850,000 . Under the 2018 Director Share Plan, the Company has cumulatively issued 670,797 restricted Common Shares. As such, there are 179,203 restricted Common Shares available to be issued at December 31, 2019. Shares issued annually under the 2018 Director Share Plan are no longer subject to forfeiture one year after the date of grant. Share Units and Performance Shares The fair value of the non-vested time-based share unit awards was calculated using the market value of the Common Shares on the date of issuance. The weighted-average grant-date fair value of time-based share units granted during the years ended December 31, 2019, 2018 and 2017 was $30.01 , $24.69 and $18.73 , respectively. The fair value of the non-vested performance-based performance share awards with a performance condition requiring the Company to obtain certain earnings per share targets was estimated using the market value of the shares on the date of grant. The fair value of non-vested performance-based performance share awards with a market condition requiring the Company to obtain a total shareholder return target relative to a group of peer companies was estimated using a Monte Carlo valuation model taking into consideration the probability of achievement using multiple simulations. The awards that use earnings per share and return on invested capital as the performance target are expensed beginning when it is probable that the Company will meet the underlying performance condition. A summary of the status of the Company’s non-vested share units and performance shares as of December 31, 2019 and the changes during the year then ended, are presented below: Time-based awards Performance-based awards Weighted- Weighted- average grant Performance average grant Share Units date fair value Shares date fair value Non-vested as of December 31, 2018 419,996 $ 19.64 628,220 $ 21.41 Granted 184,645 $ 30.01 250,858 $ 34.17 Vested (196,404) $ 17.08 (236,902) $ 14.92 Forfeited or cancelled (46,403) $ 23.70 (75,840) $ 27.42 Non-vested as of December 31, 2019 361,834 $ 25.84 566,336 $ 28.97 A summary of the status of the Company’s non-vested share units and performance shares as of December 31, 2018 and the changes during the year then ended, are presented below: Time-based awards Performance-based awards Weighted- Weighted- average grant Performance average grant Share Units date fair value Shares date fair value Non-vested as of December 31, 2017 443,152 $ 15.01 744,188 $ 14.92 Granted 176,116 $ 24.69 215,490 $ 29.41 Vested (182,451) $ 13.21 (284,462) $ 11.19 Forfeited or cancelled (16,821) $ 19.99 (46,996) $ 17.13 Non-vested as of December 31, 2018 419,996 $ 19.64 628,220 $ 21.41 As of December 31, 2019, total unrecognized compensation cost related to non-vested time-based share units granted was $3,924 . That cost is expected to be recognized over a weighted-average period of 1.28 years. For the years ended December 31, 2019, 2018 and 2017, the total fair value of awards vested was $12,376 , $12,577 and $8,718 , respectively. As of December 31, 2019, total unrecognized compensation cost related to non-vested performance shares granted was $3,319 for shares probable to vest. That cost is expected to be recognized over a weighted-average period of 1.27 years dependent upon the achievement of performance conditions. As noted above, the Company has issued and outstanding performance-based share units that use different performance targets (total shareholder return, earnings per share and return on invested capital). The excess tax benefit realized from the vesting of share units and performance shares of the share-based payment arrangements was $1,289 , $1,584 and $858 for the years ended December 31, 2019, 2018 and 2017 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 9. Employee Benefit Plans The Company has certain defined contribution profit sharing and 401(k) plans covering substantially all of its employees in the United States and Europe. The Company provides matching contributions to the Company’s 401(k) plan. Company contributions are generally discretionary. For the years ended December 31, 2019, 2018 and 2017, expenses related to these plans amounted to $4,260 , $3,520 and $2,601 , respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 10. Financial Instruments and Fair Value Measurements Financial Instruments A financial instrument is cash or a contract that imposes an obligation to deliver, or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. The fair value of debt approximates the carrying value of debt. Derivative Instruments and Hedging Activities On December 31, 2019, the Company had no open foreign currency forward contracts. During 2019, the Company used foreign currency forward contracts solely for hedging and not for speculative purposes. Management believes that its use of these instruments to reduce risk is in the Company’s best interest. The counterparties to these financial instruments are financial institutions with investment grade credit ratings. Foreign Currency Exchange Rate Risk The Company conducts business internationally and therefore is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow and fair value hedges to manage its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions, inventory purchases and other foreign currency exposures. The Company hedged the Mexican peso currency during 2019 and, during 2018 and 2017, the Company hedged the euro and Mexican peso. In addition, the Company hedged the U.S. dollar against the Swedish krona and euro on behalf of its European subsidiaries in 2018. These forward contracts were executed to hedge forecasted transactions and were accounted for as cash flow hedges. As such, the effective portion of the unrealized gain or loss was deferred and reported in the Company’s consolidated balance sheets as a component of accumulated other comprehensive loss. The cash flow hedges were highly effective. The effectiveness of the transactions has been and will be measured on an ongoing basis using regression analysis and forecasted future purchases of the currency. In certain instances, the foreign currency forward contracts do not qualify for hedge accounting or are not designated as hedges, and therefore are marked to market with gains and losses recognized in the Company’s consolidated statements of operations as a component of other expense (income), net. The Company’s foreign currency forward contracts are designed to offset some of the gains and losses realized on the underlying foreign currency denominated transactions as follows: Euro-denominated Foreign Currency Forward Contracts At December 31, 2017, the Company held foreign currency forward contracts with an underlying notional amount of $1,486 to reduce the exposure related to the Company’s euro-denominated intercompany loans. There were no contracts entered into as of December 31, 2019 or 2018 as these contracts were settled in December 2018. This euro-denominated foreign currency forward contract was not designated as a hedging instrument. For the years ended December 31, 2018 and 2017, the Company recognized a gain of $73 and a loss of $174 , respectively, in the consolidated statements of operations as a component of other expense (income), net related to the euro-denominated contract. U.S. dollar-denominated Foreign Currency Forward Contracts – Cash Flow Hedge The Company entered into on behalf of one of its European Electronics subsidiaries whose functional currency is the Swedish krona, U.S. dollar-denominated currency contracts which expired ratably on a monthly basis from February 2018 through December 2018. There were no contracts outstanding as of December 31, 2019 or 2018. The Company entered into on behalf of one of its European Electronics subsidiaries whose functional currency is the euro, U.S. dollar-denominated currency contracts which expired ratably on a monthly basis from February 2018 through December 2018. There were no contracts outstanding as of December 31, 2019 or 2018. Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedge The Company held Mexican peso-denominated foreign currency contracts during 2019 which expired ratably on a monthly basis from January 2019 through December 2019. The notional amounts at December 31, 2019 and 2018 were $0 and $9,017 , respectively. The Company evaluated the effectiveness of the Mexican peso-denominated foreign currency forward contracts held as of December 31, 2019 and 2018, and the years then ended, and concluded that the hedges were effective. The notional amounts and fair values of derivative instruments in the consolidated balance sheets were as follows: Prepaid expenses Notional amounts (A) and other current assets December 31 2019 2018 2019 2018 Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ - $ 9,017 $ - $ 370 (A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. Gross amounts recorded for the cash flow hedges in other comprehensive loss in shareholders’ equity and in net income for the years ended December 31 were as follows: Gains reclassified from Gain recorded in other other comprehensive income comprehensive income (loss) (loss) into net income (A) 2019 2018 2017 2019 2018 2017 Derivatives designated as cash flow hedges: Forward currency contracts $ 450 $ 1,967 $ 441 $ 820 $ 1,376 $ 634 (A) Gains reclassified from comprehensive income (loss) into net income recognized in COGS in the Company’s consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 were $695 , $1,259 and $622 , respectively. Gains reclassified from other comprehensive income (loss) into net income recognized in D&D in the Company’s consolidated statements of operations were $125 , $117 and $8 for the years ended December 31, 2019, 2018 and 2017, respectively. Gains reclassified from other comprehensive income (loss) into net income recognized in SG&A in the Company’s consolidated statements of operations were $0 , $0 and $4 for the years ended December 31, 2019, 2018 and 2017, respectively. The Company has measured the ineffectiveness of the forward currency contracts and any amounts recognized in the consolidated financial statements were immaterial for the years ended December 31, 2019, 2018 and 2017. Fair Value Measurements The Company’s assets and liabilities 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 the inputs used. Fair values estimated using Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values estimated using Level 2 inputs, other than quoted prices, are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency contracts, inputs include foreign currency exchange rates. Fair values estimated using Level 3 inputs consist of significant unobservable inputs. 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. December 31 2019 2018 Fair values estimated using Level 1 Level 2 Level 3 Fair value inputs inputs inputs Fair value Financial assets carried at fair value: Forward currency contracts $ - $ - $ - $ - $ 370 Total financial assets carried at fair value $ - $ - $ - $ - $ 370 Financial liabilities carried at fair value: Earn-out consideration $ 12,011 $ - $ - $ 12,011 $ 18,672 Total financial liabilities carried at fair value $ 12,011 $ - $ - $ 12,011 $ 18,672 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. Orlaco Stoneridge Brazil Total Balance at December 31, 2018 $ 8,602 $ 10,070 $ 18,672 Change in fair value - 2,308 2,308 Foreign currency adjustments (128) (367) (495) Earn-out consideration cash payment (8,474) - (8,474) Balance at December 31, 2019 $ - $ 12,011 $ 12,011 Orlaco Stoneridge Brazil Total Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 Change in fair value 369 (156) 213 Foreign currency adjustments (404) (1,883) (2,287) Balance at December 31, 2018 $ 8,602 $ 10,070 $ 18,672 The Company will be required to pay the Stoneridge Brazil earn-out consideration, which is not capped, based on Stoneridge Brazil’s financial performance in either 2020 or 2021. The fair value of the Stoneridge Brazil earn-out consideration is based on discounted cash flows utilizing forecasted earnings before interest, depreciation and amortization (“EBITDA”) in 2020 and 2021 using the key inputs of forecasted sales and expected operating income reduced by the market required rate of return. The former Stoneridge Brazil owners may choose either the 2020 or 2021 financial performance period to be used to determine the earn-out consideration payment. The former Stoneridge Brazil owners must choose the 2020 financial performance period by March 31, 2021 otherwise the 2021 financial performance period will automatically be used. The earn-out consideration obligation related to Stoneridge Brazil is recorded within other long-term liabilities in the consolidated balance sheets as of December 31, 2019 and 2018. The fair value of the Orlaco earn-out consideration was based on a Monte Carlo simulation utilizing forecasted EBITDA for the 2017 and 2018 earn-out period as well as a growth rate reduced by the market required rate of return. The earn-out consideration obligation related to Orlaco was recorded within other current liabilities in the consolidated balance sheet as of December 31, 2018. The change in fair value of the earn-out considerations are recorded within selling, general and administrative (“SG&A”) expense in the consolidated statements of operations for the years ended December 31, 2019 and 2018. The earn-out consideration obligation related to Orlaco of $8,474 was paid in March 2019 and recorded in the consolidated statement of cash flows within operating and financing activities in the amounts of $5,080 and $3,394 , respectively, for the year ended December 31, 2019. The Orlaco earn-out consideration reached the capped amount of €7,500 as of the quarter ended March 31, 2018 due to actual performance exceeding forecasted performance and remained at the capped amount until it was paid out in March 2019. The change in fair value of the earn-out consideration for Stoneridge Brazil was due to the reduced time from the current period end to the payment date, offset by adverse foreign currency translation. The foreign currency impact for the Stoneridge Brazil earn-out considerations is included in other expense (income), net in the consolidated statements of operations. There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the year ended December 31, 2019. Except for the fair value of assets acquired and liabilities assumed related to the Orlaco acquisition discussed in Note 2, no non-recurring fair value adjustments were required for nonfinancial assets for the years ended December 31, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies From time to time we are subject to various legal actions and claims incidental to our business, including those arising out of breach of contracts, product warranties, product liability, patent infringement, regulatory matters and employment-related matters. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimated. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse effect on its consolidated results of operations or financial position. As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at this site. The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. Upon approval of the remedial action plan by the Florida Department of Environmental Protection, ground water remediation began in the fourth quarter of 2015. During the years ended December 31, 2019, 2018 and 2017, environmental remediation costs incurred were immaterial. At December 31, 2019 and 2018, the Company had accrued an undiscounted liability of $82 and $111 , respectively, related to future remediation costs which were recorded as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Costs associated with the recorded liability will be incurred to complete the groundwater remediation, with the balance relating to monitoring costs to be incurred over multiple years. The recorded liability is based on assumptions in the remedial action plan. Although the Company sold the Sarasota facility in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the Company is currently required to maintain a $1,489 letter of credit for the benefit of the buyer. The Company’s Stoneridge Brazil subsidiary has civil, labor and other non-income tax contingencies for which the likelihood of loss is deemed to be reasonably possible, but not probable, by the Company’s legal advisors in Brazil. As a result, no provision has been recorded with respect to these contingencies, which amounted to R $29,200 ( $7,300 ) and R $29,700 ( $7,600 ) at December, 2019 and 2018, respectively. An unfavorable outcome on these contingencies could result in significant cost to the Company and adversely affect its results of operations. Insurance Recoveries The Company incurred losses and incremental costs related to the damage to assets caused by a storm at its Mexican production facility in the fourth quarter of 2016 and is pursuing recovery of such costs under applicable insurance policies. Anticipated proceeds from insurance recoveries related to losses and incremental costs that have been incurred (“loss recoveries”) are recognized when receipt is probable. Anticipated proceeds from insurance recoveries in excess of the net book value of damaged property, plant and equipment (“insurance gain contingencies”) are recognized when all contingencies related to the claim have been resolved. Loss recoveries related to the damage of inventory and incremental costs included in COGS were not significant for the years ended December 31, 2019 and 2018, respectively, and there were no loss recoveries and insurance gain contingencies related to the damage of property, plant and equipment included within SG&A expense. In 2017, loss recoveries related to the damage of inventory and incremental costs included in COGS were $189 and loss recoveries and insurance gain contingencies related to the damage of property, plant and equipment included within SG&A expense were $1,923 . As of December 31, 2017, the Company had confirmation of the open insurance claim and recorded a receivable of $1,644 . The cash payment was subsequently received in January 2018. Cash proceeds related to the damage of inventory and incremental costs were $241 and $500 for the years ended December 31, 2018 and 2017, respectively, and are included in cash flows from operating activities. Cash proceeds related to the damage of property, plant and equipment of $1,403 and $711 for the years ended December 31, 2018 and 2017, respectively, are included in cash flows from investing activities. Cash proceeds received during the year ended December 21, 2019 were immaterial. Brazilian Indirect Tax In March 2017, the Supreme Court of Brazil issued a decision concluding that a certain state value added tax should not be included in the calculation of federal gross receipts taxes. The decision reduced Stoneridge Brazil’s gross receipts tax prospectively and, potentially, retrospectively. In April 2019, the Company received judicial notification that the Superior Judicial Court of Brazil rendered a favorable decision on Stoneridge Brazil’s case granting the Company the right to recover, through offset of federal tax liabilities, amounts collected by the government from June 2010 to February 2017. Based on the Company’s determination that these tax credits will be used prior to expiration, we recorded a pre-tax benefit of $6,473 as a reduction to SG&A expense which is inclusive of related interest income of $2,392 , net of applicable professional fees of $990 in the year ended December 31, 2019. The Company received administrative approval in January 2020 and is now able to offset eligible federal tax with these tax credits. The Brazilian tax authorities have sought clarification before the Supreme Court of Brazil (in a leading case involving another taxpayer) of certain matters that could affect the rights of Brazilian taxpayers regarding these credits, and a hearing is scheduled for April 2020. If the Brazilian tax authorities challenge our rights to these credits, we may become subject to new litigation that could impact the amount ultimately realized by Stoneridge Brazil. |
Headquarter Relocation and Cons
Headquarter Relocation and Consolidation | 12 Months Ended |
Dec. 31, 2019 | |
Business Realignment and Restructuring [Abstract] | |
Headquarter Relocation and Consolidation | 12. Headquarter Relocation and Consolidation During the fourth quarter of 2016, the Company relocated its corporate headquarters from Warren, Ohio to Novi, Michigan and consolidated its other corporate functions into one location. As a result, the Company incurred headquarter relocation costs recorded within SG&A expense, which included employee retention, relocation, severance, recruiting, duplicate wages and professional fees, of $269 and $493 for the years ended December 31, 2018 and 2017, respectively. There were no headquarter relocation costs incurred in 2019. In connection with the headquarter relocation, the Company was approved for a Michigan Business Development Program grant of up to $1,400 based upon the number of new jobs created in Michigan through 2022. As a result of the attainment of the first, second and third milestones, grant income of $429 , $312 and $338 was recognized during the years ended December 31, 2019, 2018 and 2017, respectively, within SG&A expense in the consolidated statements of operations. |
Restructuring and Business Real
Restructuring and Business Realignment | 12 Months Ended |
Dec. 31, 2019 | |
Business Realignment and Restructuring [Abstract] | |
Restructuring and Business Realignment | 13. Restructuring and Business Realignment On January 10, 2019, the Company committed to a restructuring plan that will result in the closure of the Canton, Massachusetts facility (“Canton Facility”) which is expected by March 31, 2020 and the consolidation of manufacturing operations at that site into other Company locations (“Canton Restructuring”). Company management informed employees at the Canton Facility of this restructuring decision on January 11, 2019. The estimated costs for the Canton Restructuring include employee severance and termination costs, contract terminations costs, professional fees and other related costs such as moving and set-up costs for equipment and costs to restore the engineering function previously located at the Canton Facility. The Company recognized expense of $12,530 for the year ended December 31, 2019 as a result of these actions for employee termination benefits and other restructuring related costs. For the year ended December 31, 2019 severance and other related restructuring costs of $7,625 , $1,526 and $3,379 were recognized in COGS, SG&A and D&D, respectively, in the consolidated statement of operations. The estimated additional cost of the Canton Facility restructuring plan, that will impact the Control Devices segment, is between $1,500 and $1,900 and will be incurred through 2020. The expenses for the 2019 Canton Restructuring that relate to the Control Devices reportable segment include the following: Accrual as of 2019 Charge Utilization Accrual as of January 1, 2019 to Expense Cash Non-Cash December 31, 2019 Employee termination benefits $ - $ 8,088 $ (5,452) $ - $ 2,636 Other related costs - 4,442 (4,442) - - Total $ - $ 12,530 $ (9,894) $ - $ 2,636 In the fourth quarter of 2018, we undertook restructuring actions for our Electronics segment affecting our European Aftermarket business and China operations. The Company recognized expense of $603 and $3,539 , respectively, for the years ended December 31, 2019 and 2018 as a result of these actions for severance, contract termination costs, accelerated depreciation of fixed assets and other related costs. Electronics segment restructuring costs were recorded in SG&A in the consolidated statements of operations for the year ended December 31, 2019. Excess and obsolete inventory write-offs of $823 were recognized in COGS for the year ended December 31, 2018 and all other restructuring costs were recognized in SG&A in the consolidated statement of operations. The Company expects to incur approximately $400 of additional restructuring costs related to the actions through 2020. The expenses for the 2019 restructuring activities that relate to the Electronics reportable segment include the following: Accrual as of 2019 Charge to Utilization Accrual as of January 1, 2019 Expense (Income) Cash Non-Cash December 31, 2019 Employee termination benefits $ 520 $ (18) $ (453) $ 3 $ 52 Accelerated depreciation - 289 - (289) - Contract termination costs 17 9 (26) - - Other related costs 119 323 (442) - - Total $ 656 $ 603 $ (921) $ (286) $ 52 The expenses for the 2018 restructuring activities that relate to the Electronics reportable segment include the following: Accrual as of 2018 Charge to Utilization Accrual as of January 1, 2018 Expense Cash Non-Cash December 31, 2018 Employee termination benefits $ - $ 1,939 $ (1,419) $ - $ 520 Excess and obsolete inventory - 823 - (823) - Intangible impairment - 200 - (200) - Fixed asset impairment - 157 - (157) - Contract termination costs - 156 (139) - 17 Other related costs - 264 (145) - 119 Total $ - $ 3,539 $ (1,703) $ (1,180) $ 656 In addition to the specific restructuring activities, the Company regularly evaluates the performance of its businesses and cost structures, including personnel, and makes necessary changes thereto in order to optimize its results. The Company also evaluates the required skill sets of its personnel and periodically makes strategic changes. As a consequence of these actions, the Company incurs severance related costs which are referred to as business realignment charges. Business realignment charges by reportable segment were as follows: Year ended December 31 2019 2018 2017 Control Devices (A) $ 682 $ 169 $ - Electronics (B) 99 63 1,223 Stoneridge Brazil (C) - 478 589 Unallocated Corporate (D) 1,048 - - Total business realignment charges $ 1,829 $ 710 $ 1,812 (A) Business realignment severance costs for the year ended December 31, 2019 related to SG&A were $682 . Business realignment severance costs for the year ended December 31, 2018 related to D&D and SG&A were $128 and $41 , respectively. (B) Business realignment severance costs for the year ended December 31, 2019 related to SG&A were $99 . Business realignment severance costs for the year ended December 31, 2018 related to SG&A were $63 . Business realignment severance costs for the year ended December 31, 2017 related to COGS and SG&A were $56 and $1,167 , respectively. (C) B usiness realignment severance costs for the year ended December 31, 2018 related to COGS, SG&A and D&D were $63 , $387 and $28 , respectively. Business realignment severance costs for the year ended December 31, 2017 related to COGS, SG&A and D&D were $370 , $218 and $1 , respectively. (D) Business realignment severance costs for the year ended December 31, 2019 related to SG&A were $1,048 . Business realignment charges classified by statement of operations line item were as follows: Year ended December 31 2019 2018 2017 Cost of goods sold $ - $ 63 $ 426 Selling, general and administrative 1,829 491 1,385 Design and development - 156 1 Total business realignment charges $ 1,829 $ 710 $ 1,812 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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 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. 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 accounting/finance, executive administration, human resources, information technology and legal. A summary of financial information by reportable segment is as follows: Year ended December 31 2019 2018 2017 Net Sales: Control Devices $ 431,560 $ 441,297 $ 447,528 Inter-segment sales 6,438 8,348 5,044 Control Devices net sales 437,998 449,645 452,572 Electronics 335,195 344,727 282,383 Inter-segment sales 33,735 37,126 39,501 Electronics net sales 368,930 381,853 321,884 Stoneridge Brazil 67,534 80,175 94,533 Inter-segment sales 6 2 563 Stoneridge Brazil net sales 67,540 80,177 95,096 Eliminations (40,179) (45,476) (45,108) Total net sales $ 834,289 $ 866,199 $ 824,444 Operating Income (Loss): Control Devices $ 73,327 $ 64,191 $ 72,555 Electronics 25,006 28,236 18,119 Stoneridge Brazil 6,539 4,989 2,661 Unallocated Corporate (A) (33,591) (30,412) (35,965) Total operating income $ 71,281 $ 67,004 $ 57,370 Depreciation and Amortization: Control Devices $ 13,397 $ 11,914 $ 10,887 Electronics 9,872 8,982 8,143 Stoneridge Brazil 6,338 7,443 8,316 Unallocated Corporate 1,252 852 584 Total depreciation and amortization (B) $ 30,859 $ 29,191 $ 27,930 Interest Expense, net: Control Devices $ 811 $ 76 $ 103 Electronics 350 85 119 Stoneridge Brazil 208 824 1,812 Unallocated Corporate 2,955 3,735 3,749 Total interest expense, net $ 4,324 $ 4,720 $ 5,783 Capital Expenditures: Control Devices $ 12,646 $ 16,737 $ 17,484 Electronics 15,476 5,965 8,158 Stoneridge Brazil 5,003 3,242 3,831 Unallocated Corporate (C) 2,699 3,083 2,697 Total capital expenditures $ 35,824 $ 29,027 $ 32,170 As of December 31 2019 2018 Total Assets: Control Devices $ 191,491 $ 175,708 Electronics 285,027 265,838 Stoneridge Brazil 89,393 81,002 Corporate (C) 358,766 359,837 Eliminations (322,468) (322,866) Total assets $ 602,209 $ 559,519 The following table presents net sales and long-term assets for the geographic areas in which the Company operates: Year ended December 31 2019 2018 2017 Net Sales: North America $ 457,633 $ 480,511 $ 471,770 South America 67,534 80,175 94,533 Europe and Other 309,122 305,513 258,141 Total net sales $ 834,289 $ 866,199 $ 824,444 As of December 31 2019 2018 Long-term Assets: North America $ 87,430 $ 86,763 South America 52,518 45,408 Europe and Other 130,995 107,171 Total long-term assets $ 270,943 $ 239,342 (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 and leased assets for the headquarter building, information technology assets, equity investments and investments in subsidiaries . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Interest Rate Swap On February 18, 2020, the Company entered into a float-to-fixed interest rate swap, with a notional amount of $50,000 to reduce the variability of London Inter-bank Offered Rate (“ LIBOR”) based interest payments on a portion of variable rate debt outstanding on the Company’s 2019 Credit Facility, as disclosed in Note 5 to the consolidated financial statements, by swapping variable rate payments into fixed rate payments. Currently, borrowings under the 2019 Credit Facility bear interest based on a variable interest rate at either the Base Rate or LIBOR Rate (as defined in the Fourth Amended and Restated Credit Agreement). The interest rate swap will be settled monthly and will expire in March 2023 . Authorization For Common Share Repurchase On February 24, 2020, the Board of Directors of Stoneridge, Inc. authorized the repurchase of $50.0 million of the Company’s outstanding Common Shares over the next 18 months . The repurchases may be made from time to time in either open market transactions or in privately negotiated transactions. Repurchases may also be made under Rule 10b5-1 plans, which permit Common Shares to be repurchased through pre-determined criteria. The timing, volume and nature of common share repurchases will be at the discretion of management, dependent on market conditions, other priorities of cash investment, applicable securities laws and other factors. This Common Share repurchase program authorization does not obligate the Company to acquire any particular amount of its Common Shares, and it may be suspended or discontinued at any time. Accelerated Share Repurchase Program Early Termination On February 25, 2020, Citibank N.A. notified the Company that it terminated early its commitment pursuant the accelerated share repurchase agreement and would deliver to the Company 364,604 Common Shares on February 27, 2020 based on the volume weighted-average price of our Common Shares during the term set forth in the accelerated share repurchase agreement. Citibank N.A.’s notice of early termination and the subsequent delivery Common Shares represents the final settlement of the Company’s share repurchase program pursuant to accelerated share repurchase agreement. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Financial Data | 16. Unaudited Quarterly Financial Data The following is a summary of quarterly results of operations: Quarter ended 2019 December 31 September 30 June 30 (B) March 31 Net sales $ 190,365 $ 203,386 $ 222,241 $ 218,297 Gross profit 44,198 51,855 56,827 60,853 Operating income 1,073 9,323 49,186 11,699 Income tax expense (benefit) (4,249) 1,450 9,066 1,835 Net income 4,209 6,661 39,764 9,657 Earnings per share attributable to Stoneridge, Inc.: Basic (A) $ 0.15 $ 0.24 $ 1.43 $ 0.34 Diluted (A) $ 0.15 $ 0.24 $ 1.41 $ 0.33 Quarter ended 2018 December 31 September 30 June 30 March 31 Net sales $ 210,814 $ 208,853 $ 220,602 $ 225,930 Gross profit 57,959 63,285 67,418 67,969 Operating income 12,664 18,312 19,181 16,847 Income tax expense 690 3,467 3,820 3,233 Net income 12,056 13,292 15,120 13,380 Earnings per share attributable to Stoneridge, Inc.: Basic (A) $ 0.42 $ 0.47 $ 0.53 $ 0.47 Diluted (A) $ 0.42 $ 0.46 $ 0.52 $ 0.46 (A) Earnings per share for the year may not equal the sum of the four historical quarters earnings per share due to changes in weighted-average basic and diluted shares outstanding. (B) The Company recognized a gain on disposal of Non-core Products in our Control Devices segment, net of $33,599 in the quarter ended June 30, 2019. See Note 2 to the Company’s consolidated financial statements for further information . |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS The following schedule provides the activity for accounts receivable reserves and valuation allowance for deferred tax assets for the years ended December 31, 2019, 2018 and 2017 (in thousands): Balance at Charged to beginning of costs and Balance at period expenses Write-offs end of period Accounts receivable reserves: Year ended December 31, 2019 $ 1,243 $ 1,126 $ (1,080) $ 1,289 Year ended December 31, 2018 1,109 1,244 (1,110) 1,243 Year ended December 31, 2017 1,630 2,173 (2,694) 1,109 Net additions Exchange rate Balance at charged to fluctuations beginning of expense and other Balance at period (benefit) items end of period Valuation allowance for deferred tax assets: Year ended December 31, 2019 $ 8,962 $ (138) $ (238) $ 8,586 Year ended December 31, 2018 11,986 (1,922) (1,102) 8,962 Year ended December 31, 2017 11,125 874 (13) 11,986 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Stoneridge, Inc. and its wholly-owned and majority-owned subsidiaries (collectively, the “Company”). Intercompany transactions and balances have been eliminated in consolidation. The Company analyzes its ownership interests in accordance with Accounting Standards Codification (“ASC”) “Consolidations (Topic 810)” to determine whether they are a variable interest entity and, if so, whether the Company is the primary beneficiary. On January 31, 2017, the Company acquired Exploitatiemaatschappij Berghaaf B.V. (“Orlaco”), an electronics business which designs, manufactures and sells camera-based vision systems, monitors and related products. The acquisition was accounted for as a business combination, and accordingly, the Company’s consolidated financial statements herein include the results of Orlaco from the date of acquisition. See Acquisitions in Note 2 below to the consolidated financial statements for additional details regarding the Orlaco acquisition. The Company had a 74% controlling interest in PST Eletrônica Ltda. (“Stoneridge Brazil”) from December 31, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in Stoneridge Brazil, which was accounted for as an equity transaction. As such, Stoneridge Brazil is now a wholly owned subsidiary. See Note 4 to the consolidated financial statements for additional details regarding the acquisition of Stoneridge Brazil’s noncontrolling interest. The Company’s investment in Minda Stoneridge Instruments Ltd. (“MSIL”) for the years ended December 31, 2019, 2018 and 2017 has been determined to be an unconsolidated entity, and therefore is accounted for under the equity method of accounting based on the Company’s 49% ownership in MSIL. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including certain self-insured risks and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because actual results could differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company’s cash and cash equivalents include actively traded money market funds with short-term investments in marketable securities, primarily U.S. government securities. Cash and cash equivalents are stated at cost, which approximates fair value, due to the highly liquid nature and short-term duration of the underlying securities with original maturities of 90 days or less. |
Accounts Receivable and Concentration Of Credit Risk | Accounts Receivable and Concentration of Credit Risk Revenues are principally generated from the automotive, commercial, off-highway, motorcycle and agricultural vehicle markets. The Company’s largest customers are Ford Motor Company and Volvo, primarily related to the Control Devices and Electronics reportable segments and accounted for the following percentages of consolidated net sales for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Ford Motor Company 11 % 12 % 14 % Volvo 8 % 8 % 6 % Accounts receivable are recorded at the invoice price, net of an estimate of allowance for doubtful accounts and other reserves. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due to the Company could be reduced by a material amount. The Company does not have collateral requirements with its customers. |
Sales of Accounts Receivable | Sales of Accounts Receivable In prior years, the Company’s Stoneridge Brazil segment sold selected accounts receivable on a full recourse basis to an unrelated financial institution in Brazil. Stoneridge Brazil accounts for these transactions as sales of accounts receivable. As such, in accordance with ASC 860, “Transfers and Servicing”, the sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the loss on sale is recorded within interest expense, net in the consolidated statements of operations while the proceeds received from the sale are included in the cash flows from operating activities in the consolidated statements of cash flows. During 2017, Stoneridge Brazil sold $2,520 ( 7,983 Brazilian real (“R$”)) of accounts receivable at a loss of $86 (R $273 ), which represents the implicit interest on the transaction, and received proceeds of $2,434 (R $7,710 ). Stoneridge Brazil did not have any remaining credit exposure at December 31, 2017 related to the receivables sold. During 2019 and 2018, Stoneridge Brazil did not sell any of its accounts receivable. |
Inventories | Inventories Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following: December 31 2019 2018 Raw materials $ 66,357 $ 54,382 Work-in-progress 5,582 4,710 Finished goods 21,510 20,186 Total inventories, net $ 93,449 $ 79,278 Inventory valued using the FIFO method was $82,910 and $64,745 at December 31, 2019 and 2018, respectively. Inventory valued using the average cost method was $10,539 and $14,533 at December 31, 2019 and 2018, respectively . |
Pre-Production Costs Related to Long-Term Supply Arrangements | Pre-production Costs Related to Long-term Supply Arrangements Engineering, research and development and other design and development costs for products sold on long-term supply arrangements are expensed as incurred unless the Company has a contractual guarantee for reimbursement from the customer which are capitalized as pre-production costs. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company either has title to the assets or has the noncancelable right to use the assets during the term of the supply arrangement are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets, typically three to seven years . Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee to a lump sum reimbursement from the customer are capitalized either as a component of prepaid expenses and other current assets or an investment and other long term assets, net within the consolidated balance sheets. Capitalized pre-production costs were $7,666 and $6,875 at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, $7,544 and $6,875 , respectively, were recorded as a component of prepaid expenses and other current assets on the consolidated balance sheets while the remaining amounts were recorded as a component of investments and other long-term assets, net. |
Disposal of Non-Core Products | Disposal of Non-Core Products On April 1, 2019, the Company entered into an Asset Purchase Agreement by and among the Company, the Company’s wholly owned subsidiary, Stoneridge Control Devices, Inc. (“SCD”), and Standard Motor Products, Inc. (“SMP”). On the same day pursuant to the APA, in exchange for $40,000 (subject to a post-closing inventory adjustment which was a payment to SMP of $1,573 ) and the assumption of certain liabilities, the Company and SCD sold to SMP, product lines and assets related to certain non-core switches and connectors (the “Non-core Products”). On April 1, 2019, the Company and SMP also entered into certain ancillary agreements, including a transition services agreement, a contract manufacturing agreement and a supply agreement, pursuant to which the Company will provide and be compensated for certain manufacturing, transitional, and administrative and support services to SMP on a short-term basis. The products related to the Non-core Products were manufactured in Juarez, Mexico and Canton, Massachusetts, and include ball switches, ignition switches, rotary switches, courtesy lamps, toggle switches, headlamp switches and other related components. On April 1, 2019, the Company’s Control Devices segment recognized net sales and costs of goods sold of $4,160 and $2,775 , respectively, for the one-time sale of Non-core Product finished goods inventory and a gain on disposal of $33,921 ,net for the sale of fixed assets, intellectual property and customer lists associated with the Non-core Products less transaction costs. During the three months ended March 31, 2019, the Company recognized transaction costs associated with the disposal of Control Devices’ Non-core Products of $322 within SG&A. The Company received $1,824 for services provided pursuant to the transition services agreement which were recognized as a reduction in SG&A for the year ended December 31, 2019. Pursuant to the contract manufacturing agreement, the Company recognized sales and operating income for the production of Non-core Products of $26,304 and $1,458 for the year ended December 31, 2019, respectively. The Company also received $745 for reimbursement of retention and facility costs from SMP pursuant to the contract manufacturing agreement which was recognized as a reduction to SG&A for the year ended December 31, 2019. Non-core Products net sales and operating income, including sales to SMP pursuant to the contract manufacturing agreement, were $41,560 and $4,831 for the year ended December 31, 2019, respectively, $44,537 and $9,086 for the year ended December 31, 2018, respectively, and $43,339 and $7,991 for the year ended December 31, 2017, respectively. Acquisitions Orlaco On January 31, 2017, Stoneridge B.V., an indirect wholly-owned subsidiary of Stoneridge, Inc., acquired Orlaco. Orlaco designs, manufactures and sells camera-based vision systems, monitors and related products primarily to the heavy off-road machinery, commercial vehicle, lifting crane and warehousing and logistics industries. Stoneridge and Orlaco jointly developed the MirrorEye camera monitor system, which is a vision-based system solution to improve the safety and fuel economy for commercial vehicles. The MirrorEye camera monitor system integrates Orlaco’s vision processing technology and Stoneridge’s driver information capabilities as well as the combined software capabilities of both businesses. The acquisition of Orlaco enhanced the Stoneridge’s Electronics segment global technical capabilities in vision systems and facilitated entry into new markets. The aggregate consideration for the Orlaco acquisition was €74,939 ( $79,675 ), which included customary estimated adjustments to the purchase price. The Company paid €67,439 ( $71,701 ) in cash. The purchase price was subject to certain customary adjustments set forth in the purchase agreement. The Company was required to pay an additional amount up to €7,500 as contingent consideration (“earn-out consideration”) if certain performance targets are achieved during the first two years. See Note 9 for additional details on the Orlaco contingent consideration. The Company recognized $1,259 of acquisition related costs in the consolidated statement of operations as a component of selling, general and administrative (“SG&A”) expense for the year ended December 31, 2017. There were no acquisition related costs for the years ended December 31, 2019 or 2018. The Company’s statement of operations included $1,636 of expense in cost of goods sold (“COGS”) for the year ended December 31, 2017 associated with the step-up of the Orlaco inventory to fair value. The Company’s statement of operations included $369 and $4,853 of expense for the fair value adjustment for earn-out consideration in SG&A expenses for the years ended December 31, 2018 and 2017, respectively. The earn-out consideration obligation related to Orlaco of $8,474 was paid in March 2019 and recorded in the consolidated statement of cash flows within operating and financing activities in the amounts of $5,080 and $3,394 , respectively, for the year ended December 31, 2019. The Orlaco earn-out consideration reached the capped amount of €7,500 as of the quarter ended March 31, 2018 due to actual performance exceeding forecasted performance and remained at the capped amount until it was paid in March 2019. The following unaudited pro forma information reflects the Company’s consolidated results of operations as if the acquisition had taken place on January 1, 2017. The unaudited pro forma information is not necessarily indicative of the results of operations that the Company would have reported had the transaction actually occurred at the beginning of these periods, nor is it necessarily indicative of future results. Year ended December 31, 2017 Net sales $ 829,474 Net income attributable to Stoneridge, Inc. and subsidiaries $ 45,283 |
Acquisitions | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and consist of the following: December 31 2019 2018 Land and land improvements $ 4,550 $ 4,619 Buildings and improvements 39,263 37,234 Machinery and equipment 226,076 212,225 Office furniture and fixtures 9,708 9,929 Tooling 76,933 75,620 Information technology 32,410 27,179 Vehicles 614 872 Leasehold improvements 4,588 2,799 Construction in progress 17,312 23,064 Total property, plant, and equipment 411,454 393,541 Less: accumulated depreciation (288,971) (281,328) Property, plant and equipment, net $ 122,483 $ 112,213 Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $24,904 , $22,786 and $21,490 , respectively. Depreciable lives within each property classification are as follows: Buildings and improvements 10 - 40 years Machinery and equipment 3 - 10 years Office furniture and fixtures 3 - 10 years Tooling 2 - 7 years Information technology 3 - 7 years Vehicles 3 - 7 years Leasehold improvements shorter of lease term or 3 - 10 years Maintenance and repair expenditures that are not considered improvements and do not extend the useful life of the property, plant and equipment are charged to expense as incurred. Expenditures for improvements and major renewals are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss on the disposition is recorded in the consolidated statements of operations as a component of SG&A expenses. |
Impairment of Long-Lived or Finite-Lived Assets | Impairment of Long-Lived or Finite-Lived Assets The Company reviews the carrying value of its long-lived assets and finite-lived intangible assets for impairment when events or circumstances indicate that their carrying value may not be recoverable. Factors the Company considers important that could trigger testing of the related asset groups for an impairment include current period operating or cash flow losses combined with a history of operating or cash flow losses, a projection or forecast that demonstrates continuing losses, significant adverse changes in the business climate within a particular business or current expectations that a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. To test for impairment, the estimated undiscounted cash flows expected to be generated from the use and disposal of the asset or asset group is compared to its carrying value. An asset group is established by identifying the lowest level of cash flows generated by the group of assets that are largely independent of cash flows of other assets. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify projected cash flows. If these undiscounted cash flows are less than their respective carrying values, an impairment charge would be recognized to the extent that the carrying values exceed estimated fair values. The estimation of undiscounted cash flows and fair value requires us to make assumptions regarding future operating results over the life of the asset or the life of the primary asset in the asset group. The results of the impairment testing are dependent on these estimates which require judgment. The occurrence of certain events, including changes in economic and competitive conditions, could impact cash flows eventually realized and management’s ability to accurately assess whether an asset is impaired. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The total purchase price associated with acquisitions is allocated to the acquisition date fair values of identifiable assets acquired and liabilities assumed with the excess purchase price assigned to goodwill. Goodwill was $35,874 and $36,717 at December 31, 2019 and 2018, respectively, all of which relates to the Electronics segment. Goodwill is not amortized, but instead is tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired, by applying a fair value-based test. In conducting our annual impairment assessment testing, we first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is performed. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if we elect not to perform a qualitative assessment of a reporting unit, we then compare the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The Company utilizes an income statement approach to estimate the fair value of a reporting unit and a market valuation approach to further support this analysis. The income approach is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of cash flows. We believe that this approach is appropriate because it provides a fair value estimate based on the reporting unit’s expected long-term operating cash flow performance. This approach also mitigates the impact of cyclical trends that occur in the industry. Fair value is estimated using internally developed forecasts, as well as commercial and discount rate assumptions. The discount rate used is the value-weighted average of our estimated cost of equity and of debt (“cost of capital”) derived using both known and estimated customary market metrics. Our weighted average cost of capital is adjusted to reflect a risk factor, if necessary. Other significant assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to management’s application of these assumptions to this analysis, we believe that the income statement approach provides a reasonable estimate of the fair value of a reporting unit. The market valuation approach is used to further support our analysis. There was no impairment of goodwill for the years ended December 31, 2019, 2018 or 2017. Goodwill and changes in the carrying amount of goodwill for the Electronics segment for the years ended December 31, 2019 and 2018 were as follows: Balance at January 1, 2019 $ 36,717 Currency translation (843) Balance at December 31, 2019 $ 35,874 Balance at January 1, 2018 $ 38,419 Currency translation (1,702) Balance at December 31, 2018 $ 36,717 The Company’s cumulative goodwill impairment loss since inception was $300,083 at December 31, 2019 and 2018, which includes Stoneridge Brazil’s goodwill impairment in 2014 and goodwill impairment recorded by the Company’s Control Devices segment in 2008 and 2004. Other Intangible Assets Other intangible assets, net at December 31, 2019 and 2018 consisted of the following: Acquisition Accumulated As of December 31, 2019 cost amortization Net Customer lists $ 50,750 $ (17,466) $ 33,284 Tradenames 20,041 (6,687) 13,354 Technology 15,231 (7,353) 7,878 Capitalized software development 3,606 - 3,606 Total $ 89,628 $ (31,506) $ 58,122 Acquisition Accumulated As of December 31, 2018 cost amortization Net Customer lists $ 52,200 $ (14,549) $ 37,651 Tradenames 20,689 (5,884) 14,805 Technology 15,581 (6,005) 9,576 Total $ 88,470 $ (26,438) $ 62,032 Other intangible assets, net at December 31, 2019 for customer lists, tradenames, technology and capitalized software development include $23,019 , $4,561, $3,498 and $2,233 , respectively, related to the Electronics segment. Customer lists, tradenames and technology of $10,265 , $8,793 and $4,270 , respectively, related to the Stoneridge Brazil segment at December 31, 2019. Capitalized software development and technology of $1,373 and $110 , respectively, related to the Control Devices segment at December 31, 2019. The Company designs and develops software that will be embedded into certain products and sold to customers. Software development costs are capitalized after the software product development reaches technological feasibility and until the software product becomes available for general release to customers. These intangible assets will be amortized using the straight-line method over estimated useful lives generally ranging from three to seven years . The Company recognized $5,955 , $6,406 and $6,440 of amortization expense related to intangible assets in 2019, 2018 and 2017, respectively. Amortization expense is included as a component of SG&A on the consolidated statements of operations. Annual amortization expense for intangible assets is estimated to be approximately $5,722 for the years 2020 through 2024 . The weighted-average remaining amortization period is approximately 11 years . For the year ended December 31, 2018 the Company recognized $202 of intangible impairment charge related to the Electronics segment customer lists as a result of the European Aftermarket restructuring as noted in Note 13. There were no intangible impairment charges for the years ended December 31, 2019 or 2017. |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of December 31 2019 2018 Compensation related liabilities $ 19,566 $ 18,717 Contingent consideration (A) - 8,602 Product warranty and recall obligations 7,685 7,211 Other (B) 27,972 23,350 Total accrued expenses and other current liabilities $ 55,223 $ 57,880 (A) Accrued contingent consideration includes the Orlaco earn-out consideration, as referenced in Note 2 and Note 10, and is included in accrued expenses and other current liabilities for the year ended December 31, 2018. Orlaco earn-out consideration of $8,474 was paid in March 2019. (B) “Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method. Deferred income taxes reflect the tax consequences on future years of differences between the tax basis of assets and liabilities and their financial reporting amounts. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not to occur. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized (See Note 6). In making such a determination, the Company considers all available positive and negative evidence, including future release of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. Release of some or all of a valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The Company’s policy is to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. The Tax Cuts and Jobs Act (“Tax Legislation”) created a provision known as Global Intangible Low-Taxed Income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. The Company has made an accounting policy election to reflect GILTI taxes, if any, as a current period tax expense when incurred. |
Currency Translation | Currency Translation The financial statements of foreign subsidiaries, where the local currency is the functional currency, are translated into U.S. dollars using exchange rates in effect at the period end for assets and liabilities and average exchange rates during each reporting period for the results of operations. Adjustments resulting from translation of financial statements are reflected as a component of accumulated other comprehensive loss in the Company’s consolidated balance sheets. Foreign currency transactions are remeasured into the functional currency using translation rates in effect at the time of the transaction with the resulting adjustments included on the consolidated statements of operations within other expense (income), net. These foreign currency transaction losses (gains), including the impact of hedging activities, were $372 , $(487) and $500 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Revenue Recognition and Sales Commitments | Revenue Recognition and Sales Commitments The Company recognizes revenue when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. The Company recognizes monitoring service revenues over time, as the services are provided to customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The Company collects certain taxes and fees on behalf of government agencies and remits such collections on a periodic basis. The taxes are collected from customers but are not included in net sales. Estimated returns are based on historical authorized returns. The Company often enters into agreements with its customers at the beginning of a given vehicle’s expected production life. Once such agreements are entered into, it is the Company’s obligation to fulfill the customers’ purchasing requirements for the entire production life of the vehicle. These agreements are subject to potential renegotiation from time to time, which may affect product pricing. See Note 3 for additional disclosure. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in COGS on the consolidated statements of operations. |
Product Warranty and Recall Reserves | Product Warranty and Recall Reserves Amounts accrued for product warranty and recall claims are established based on the Company’s best estimate of the amounts necessary to settle existing and future claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. Our estimate is based on historical trends of units sold and claim payment amounts, combined with our current understanding of the status of existing claims and discussions with our customers. The key factors in our estimate are the stated or implied warranty period, the customer source, customer policy decisions regarding warranties and customers seeking to holding the company responsible for their product warranties. The Company can provide no assurances that it will not experience material claims or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued. The current portion of the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Product warranty and recall includes $3,111 and $3,283 of a long-term liability at December 31, 2019 and 2018, respectively, which is included as a component of other long-term liabilities on the consolidated balance sheets. The following provides a reconciliation of changes in the product warranty and recall reserve: Year ended December 31 2019 2018 Product warranty and recall at beginning of period $ 10,494 $ 9,979 Accruals for warranties established during period 7,131 6,217 Aggregate changes in pre-existing liabilities due to claim developments 1,037 646 Settlements made during the period (7,600) (5,831) Foreign currency translation (266) (517) Product warranty and recall at end of period $ 10,796 $ 10,494 |
Design and Development Costs | Design and Development Costs Expenses associated with the development of new products, and changes to existing products, other than capitalized software development costs, are charged to expense as incurred, and are included in the Company’s consolidated statements of operations as a separate component of costs and expenses. These product development costs amounted to $52,198 , $51,074 and $48,877 for the years ended December 31, 2019, 2018 and 2017, respectively, or 6.3% , 5.9% and 5.9% of net sales for these respective periods. |
Research and Development Activities | Research and Development Activities The Company enters into research and development contracts with certain customers, which generally provide for reimbursement of costs. The Company incurred and was reimbursed for contracted research and development costs of $15,096 , $16,540 and $14,946 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Share-Based Compensation | Share-Based Compensation At December 31, 2019, the Company had two types of share-based compensation plans: (1) 2016 Long-Term Incentive Plan for employees and (2) the 2018 Amended and Restated Directors’ Restricted Shares Plan, for non-employee directors. See Note 8 for additional details on share-based compensation plans. Total compensation expense recognized as a component of SG&A expense on the consolidated statements of operations for share-based compensation arrangements was $6,191 , which included accelerated expense associated with the retirement of eligible employees, $5,632 , which included the forfeiture of certain grants associated with employee resignations, and $7,265 , related to higher attainment of performance-based awards and accelerated expense associated with the retirement of eligible employees, for the years ended December 31, 2019, 2018 and 2017, respectively. There was no share-based compensation expense capitalized in inventory during 2019, 2018 or 2017. Share-based compensation expense is calculated using estimated volatility and forfeitures based on historical data, future expectations and the expected term of the share-based compensation awards. |
Financial Instruments and Derivative Financial Instruments | Financial Instruments and Derivative Financial Instruments Financial instruments, including derivative financial instruments, held by the Company include cash and cash equivalents, accounts receivable, accounts payable, long-term debt and foreign currency forward contracts. The carrying value of cash and cash equivalents, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. See Note 10 for fair value disclosures of the Company’s financial instruments. |
Common Shares Held in Treasury | Common Shares Held in Treasury The Company accounts for Common Shares held in treasury under the cost method (applied on a FIFO basis) and includes such shares as a reduction of total shareholders’ equity. |
Earnings Per Share | Earnings Per Share Basic earnings per share was computed by dividing net income attributable to Stoneridge Inc. by the weighted-average number of Common Shares outstanding for each respective period. Diluted earnings per share was calculated by dividing net income attributable to Stoneridge, Inc. by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. Actual weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows: Year ended December 31, 2019 2018 2017 Basic weighted-average Common Shares outstanding 27,791,799 28,402,227 28,082,114 Effect of dilutive shares 478,296 677,599 689,531 Diluted weighted-average Common Shares outstanding 28,270,095 29,079,826 28,771,645 There were 566,337 , 628,220 and 766,538 performance-based right to receive Common Shares outstanding at December 31, 2019, 2018 and 2017. These performance-based restricted and right to receive Common Shares are included in the computation of diluted earnings per share based on the number of Common Shares that would be issuable if the end of the year were the end of the contingency period. |
Deferred Finance Costs, net | Deferred Financing Costs, net Deferred financing costs are amortized over the life of the related financial instrument using the straight-line method, which approximates the effective interest method. Deferred finance cost amortization and debt discount accretion, for the years ended December 31, 2019, 2018 and 2017 was $624 , $326 and $324 , respectively, and is included as a component of interest expense, net in the consolidated statements of operations. In 2019, the Company capitalized $1,366 of deferred financing costs as a result of entering into the 2019 Credit Facility. In connection with the 2019 Credit Facility, the Company wrote off a portion of the previously recorded deferred financing costs of $275 in interest expense, net during the year ended December 31, 2019. See Note 5 to the consolidated financial statements for additional details regarding the 2019 Credit Facility and related deferred financing costs. The Company has elected to continue to present deferred financing costs related to the Credit Facility within long-term assets in the Company’s consolidated balance sheets. Deferred financing costs, net, were $1,625 and $882 , as of December 31, 2019 and 2018, respectively. |
Equity and Changes in Accumulated Other Comprehensive Loss by Component | Equity and Changes in Accumulated Other Comprehensive Loss by Component Common Share Repurchase On October 26, 2018, the Company’s Board of Directors authorized the Company to repurchase up to $50,000 of Common Shares. Thereafter, on May 7, 2019, the Company entered into a Master Confirmation (the “Master Confirmation”) and a Supplemental Confirmation, together with the Master Confirmation, the Accelerated Share Repurchase Agreement (“ASR Agreement”), with Citibank N.A. (the “Bank”) to purchase Company Common Shares for a payment of $50,000 (the “Prepayment Amount”). Under the terms of the ASR Agreement, on May 7, 2019, the Company paid the Prepayment Amount to the Bank and received on May 8, 2019 an initial delivery of 1,349,528 Company Common Shares, which is approximately 80% of the total number of Company Common Shares expected to be repurchased under the ASR Agreement based on the closing price of the Company’s Common Shares on May 7, 2019. These Common Shares became treasury shares and were recorded as a $40,000 reduction to shareholder’s equity. The remaining $10,000 of the Prepayment Amount was recorded as a reduction to shareholders’ equity as an unsettled forward contract indexed to our Common Shares. The Company excluded the potential share impact of the remaining shares from the computation of diluted earnings per share as these Common Shares are anti-dilutive for year ended December 31, 2019. At final settlement, the Bank may be required to deliver additional Common Shares to the Company, or, under certain circumstances, the Company may be required to deliver Common Shares or may elect to make a cash payment to the Bank, based generally on the average of the daily volume-weighted average prices of the Company’s Common Shares during a term set forth in the ASR Agreement. The ASR Agreement contains provisions customary for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances generally under which the ASR Agreement may be accelerated, extended or terminated early by the Bank and various acknowledgments, representations and warranties made by the parties to one another. The ASR Agreement expires on May 8, 2020. See Note 16 for subsequent event related to the ASR Agreement. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the years ended December 31, 2019 and 2018 were as follows: Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at January 1, 2019 $ (86,044) $ 292 $ (85,752) Other comprehensive (loss) income before reclassifications (5,428) 355 (5,073) Amounts reclassified from accumulated other comprehensive loss - (647) (647) Net other comprehensive loss, net of tax (5,428) (292) (5,720) Balance at December 31, 2019 (91,472) $ - $ (91,472) Balance at January 1, 2018 $ (69,417) $ (143) $ (69,560) Other comprehensive (loss) income before reclassifications (16,627) 1,448 (15,179) Amounts reclassified from accumulated other comprehensive loss - (1,013) (1,013) Net other comprehensive (loss) income, net of tax (16,627) 435 (16,192) Balance at December 31, 2018 $ (86,044) $ 292 $ (85,752) |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to their 2019 presentation in the consolidated financial statements. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In January 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance gives entities the option to reclassify to retained earnings the tax effects resulting from the enactment of the Tax Cuts and Jobs Act related to items in accumulated other comprehensive income (“AOCI”) that the FASB refers to as having been stranded in AOCI. The new guidance was effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted this standard on January 1, 2019, which did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this standard as of January 1, 2019 using the modified retrospective approach and elected the transition option to use the effective date January 1, 2019, as the date of initial application. The Company did not adjust its comparative period financial statements for effects of the ASU 2016-02, or make the new required lease disclosures for periods before the effective date. The Company recognized its transition adjustment as of the effective date. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard. The impact of the adoption resulted in the recognition of right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheet of $20,618 and $20,856 , respectively, as of January 1, 2019. This standard did not have a material impact on the Company’s consolidated results of operations and cash flows upon adoption. Recently Issued Accounting Standards Not Yet Adopted as of December 31, 2019 In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in this update remove certain exceptions of Topic 740 including: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. There are also additional areas of guidance in regards to: franchise and other taxes partially based on income and the interim recognition of enactment of tax laws and rate changes. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The guidance in ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and earlier adoption is permitted including adoption in any interim period. The Company is currently evaluating the impact of its pending adoption of ASU 2018-15. The Company will adopt this standard as of January 1, 2020 and it is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” The guidance in ASU 2018-13 changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2018-13. The Company will adopt this standard as of January 1, 2020 and determined the impact is not material to its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held and requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. ASU 2016-13 is effective for public business entities for annual periods beginning after December 15, 2019, and early adoption is permitted for annual periods beginning after December 15, 2018. The Company will adopt this standard as of January 1, 2020 and determined the impact is not material to its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of Accounts Receivable and Concentration of Credit Risk | 2019 2018 2017 Ford Motor Company 11 % 12 % 14 % Volvo 8 % 8 % 6 % |
Schedule of Inventory, Current | December 31 2019 2018 Raw materials $ 66,357 $ 54,382 Work-in-progress 5,582 4,710 Finished goods 21,510 20,186 Total inventories, net $ 93,449 $ 79,278 |
Business Acquisition, Pro Forma Information | Year ended December 31, 2017 Net sales $ 829,474 Net income attributable to Stoneridge, Inc. and subsidiaries $ 45,283 |
Property, Plant and Equipment | Property, plant and equipment are recorded at cost and consist of the following: December 31 2019 2018 Land and land improvements $ 4,550 $ 4,619 Buildings and improvements 39,263 37,234 Machinery and equipment 226,076 212,225 Office furniture and fixtures 9,708 9,929 Tooling 76,933 75,620 Information technology 32,410 27,179 Vehicles 614 872 Leasehold improvements 4,588 2,799 Construction in progress 17,312 23,064 Total property, plant, and equipment 411,454 393,541 Less: accumulated depreciation (288,971) (281,328) Property, plant and equipment, net $ 122,483 $ 112,213 |
Schedule of Property, Plant and Equipment Estimated Useful Lives | Buildings and improvements 10 - 40 years Machinery and equipment 3 - 10 years Office furniture and fixtures 3 - 10 years Tooling 2 - 7 years Information technology 3 - 7 years Vehicles 3 - 7 years Leasehold improvements shorter of lease term or 3 - 10 years |
Schedule of Goodwill | Balance at January 1, 2019 $ 36,717 Currency translation (843) Balance at December 31, 2019 $ 35,874 Balance at January 1, 2018 $ 38,419 Currency translation (1,702) Balance at December 31, 2018 $ 36,717 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Acquisition Accumulated As of December 31, 2019 cost amortization Net Customer lists $ 50,750 $ (17,466) $ 33,284 Tradenames 20,041 (6,687) 13,354 Technology 15,231 (7,353) 7,878 Capitalized software development 3,606 - 3,606 Total $ 89,628 $ (31,506) $ 58,122 Acquisition Accumulated As of December 31, 2018 cost amortization Net Customer lists $ 52,200 $ (14,549) $ 37,651 Tradenames 20,689 (5,884) 14,805 Technology 15,581 (6,005) 9,576 Total $ 88,470 $ (26,438) $ 62,032 |
Accrued Expenses and Other Current Liabilities | As of December 31 2019 2018 Compensation related liabilities $ 19,566 $ 18,717 Contingent consideration (A) - 8,602 Product warranty and recall obligations 7,685 7,211 Other (B) 27,972 23,350 Total accrued expenses and other current liabilities $ 55,223 $ 57,880 (A) Accrued contingent consideration includes the Orlaco earn-out consideration, as referenced in Note 2 and Note 10, and is included in accrued expenses and other current liabilities for the year ended December 31, 2018. Orlaco earn-out consideration of $8,474 was paid in March 2019. (B) “Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total. |
Schedule of Product Warranty and Recall Liability | Year ended December 31 2019 2018 Product warranty and recall at beginning of period $ 10,494 $ 9,979 Accruals for warranties established during period 7,131 6,217 Aggregate changes in pre-existing liabilities due to claim developments 1,037 646 Settlements made during the period (7,600) (5,831) Foreign currency translation (266) (517) Product warranty and recall at end of period $ 10,796 $ 10,494 |
Schedule of Weighted-Average Number of Shares | Year ended December 31, 2019 2018 2017 Basic weighted-average Common Shares outstanding 27,791,799 28,402,227 28,082,114 Effect of dilutive shares 478,296 677,599 689,531 Diluted weighted-average Common Shares outstanding 28,270,095 29,079,826 28,771,645 |
Changes in Accumulated Other Comprehensive Loss by Component | Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at January 1, 2019 $ (86,044) $ 292 $ (85,752) Other comprehensive (loss) income before reclassifications (5,428) 355 (5,073) Amounts reclassified from accumulated other comprehensive loss - (647) (647) Net other comprehensive loss, net of tax (5,428) (292) (5,720) Balance at December 31, 2019 (91,472) $ - $ (91,472) Balance at January 1, 2018 $ (69,417) $ (143) $ (69,560) Other comprehensive (loss) income before reclassifications (16,627) 1,448 (15,179) Amounts reclassified from accumulated other comprehensive loss - (1,013) (1,013) Net other comprehensive (loss) income, net of tax (16,627) 435 (16,192) Balance at December 31, 2018 $ (86,044) $ 292 $ (85,752) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Revenue by Segment and Geographical Location | Control Devices Electronics Stoneridge Brazil Consolidated Year ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Net Sales: North America $ 365,010 $ 395,148 $ 409,596 $ 92,623 $ 85,363 $ 62,174 $ - $ - $ - $ 457,633 $ 480,511 $ 471,770 South America - - - - - - 67,534 80,175 94,533 67,534 80,175 94,533 Europe 22,467 14,727 8,164 236,994 255,400 216,577 - - - 259,461 270,127 224,741 Asia Pacific 44,083 31,422 29,768 5,578 3,964 3,632 - - - 49,661 35,386 33,400 Total net sales $ 431,560 $ 441,297 $ 447,528 $ 335,195 $ 344,727 $ 282,383 $ 67,534 $ 80,175 $ 94,533 $ 834,289 $ 866,199 $ 824,444 (1) Company sales based on geographic location are where the sale originates not where the customer is located. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Summary of the change in noncontrolling interest | Year ended December 31 2017 Noncontrolling interest at beginning of period $ 13,762 Net loss (130) Foreign currency translation 826 Comprehensive income 696 Acquisition of noncontrolling interest (14,458) Noncontrolling interest at end of period $ - |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Schedule of Debt | Interest rates at Year ended December 31, 2019 2018 December 31,2019 Maturity Revolving Credit Facility Credit Facility $ 126,000 $ 96,000 2.77 - 2.81% June 2024 Debt Stoneridge Brazil short-term obligations - 989 Stoneridge Brazil long-term notes 972 1,527 7.00% November 2021 Suzhou short-term credit line 2,154 - 4.70% - 5.00% August 2020 Total debt 3,126 2,516 Less: current portion (2,672) (1,533) Total long-term debt, net $ 454 $ 983 |
Future Maturities of Long-Term Debt | Year ended December 31, 2020 $ 2,672 2021 454 2022 - 2023 - 2024 126,000 Total $ 129,126 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Year ended December 31, 2019 2018 2017 Income before income taxes: Domestic $ 30,464 $ 32,907 $ 36,657 Foreign 37,929 32,151 15,925 Total income before income taxes $ 68,393 $ 65,058 $ 52,582 Provision for income taxes: Current: Federal $ (4,384) $ 2,370 $ 2,478 State and foreign 6,900 6,288 11,014 Total current expense 2,516 8,658 13,492 Deferred: Federal $ 6,780 $ 3,788 $ (2,585) State and foreign (1,194) (1,236) (3,374) Total deferred benefit 5,586 2,552 (5,959) Total income tax expense $ 8,102 $ 11,210 $ 7,533 |
Schedule of Effective Income Tax Rate Reconciliation | Year ended December 31, 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 0.2 0.1 (0.8) Tax credits and incentives (9.2) (8.4) (4.7) Foreign tax rate differential 2.0 1.1 (4.5) Impact of change in enacted tax law 1.5 (1.3) (17.2) Change in valuation allowance (0.2) (3.0) 4.2 U.S. tax on foreign earnings (4.9) 1.0 - Compensation and benefits (0.7) 1.3 (1.1) Other (A) 2.1 5.4 3.4 Effective income tax rate 11.8 % 17.2 % 14.3 % (A) The amount for 2018 includes the impact of reducing tax attributes due to legal entity consolidation which is completely offset with change in valuation allowance. |
Schedule of Deferred Tax Assets and Liabilities | As of December 31 2019 2018 Deferred tax assets: Inventories $ 2,254 $ 2,135 Employee compensation and benefits 2,105 1,225 Accrued liabilities and reserves 3,211 4,181 Property, plant and equipment 552 647 Tax loss carryforwards 7,536 8,437 Tax credit carryforwards 15,448 22,772 Right-of-use assets 4,768 - Other 582 410 Gross deferred tax assets 36,456 39,807 Less: Valuation allowance (8,586) (8,962) Deferred tax assets less valuation allowance 27,870 30,845 Deferred tax liabilities: Property, plant and equipment (2,071) (2,545) Intangible assets (14,846) (16,683) Outside basis difference in foreign subsidiary (13,750) (13,750) Lease liability (4,695) - Other (375) (641) Gross deferred tax liabilities (35,737) (33,619) Net deferred tax liabilities $ (7,867) $ (2,774) |
Schedule of classification of Net Deferred Tax Assets and Liability | Year ended December 31 2019 2018 Long-term deferred tax assets $ 4,663 $ 12,121 Long-term deferred tax liabilities (12,530) (14,895) Net deferred tax liabilities $ (7,867) $ (2,774) |
Summary of Income Tax Contingencies | 2019 2018 2017 Balance as of January 1 $ 3,481 $ 3,645 $ 3,839 Tax positions related to the current year: Additions - - 31 Tax positions related to the prior years: Reductions (32) (165) (176) Expirations of statutes of limitation - 1 (49) Balance as of December 31 $ 3,449 $ 3,481 $ 3,645 |
Schedule of Tax Years Open for Examination | Jurisdiction Open Tax Years U.S. Federal 2016 - 2019 Argentina 2014 - 2019 Brazil 2014 - 2019 China 2016 - 2019 France 2017 - 2019 Germany 2016 - 2019 Italy 2014 - 2019 Mexico 2014 - 2019 Netherlands 2016 - 2019 Spain 2015 - 2019 Sweden 2014 - 2019 United Kingdom 2018 - 2019 |
Operating Lease Commitments (Ta
Operating Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of components of lease expense | Year ended December 31 2019 Operating lease cost $ 5,740 Short-term lease cost 529 Variable lease cost 363 Total lease cost $ 6,632 |
Schedule of supplemental balance sheet information | As of December 31 2019 Assets: Operating lease right-of-use assets $ 22,027 Liabilities: Operating lease current liability, included in other current liabilities $ 4,556 Operating lease long-term liability 17,971 Total leased liabilities $ 22,527 |
Schedule of maturities of lease liabilities | As of December 31 2019 2020 $ 5,238 2021 4,613 2022 3,593 2023 3,489 2024 3,171 Thereafter 7,328 Total future minimum lease payments $ 27,432 Less: imputed interest (4,905) Total lease liabilities $ 22,527 |
Schedule of weighted-average remaining lease term, discount rate and other information | As of December 31 2019 Weighted-average remaining lease term (in years) 6.71 Weighted-average discount rate 5.75 % |
Schedule of other information related to leases | Year ended December 31, 2019 Operating cash flows: Cash paid related to operating lease obligations $ 5,558 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 6,065 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Schedule of the Allocation of Performance Shares Between Total Shareholder Return, Earnings per Share, and Return on Invested Capital | 2019 2018 2017 Total shareholder return 45 % 55 % 55 % Earnings per share 36 % 45 % 45 % Return on invested capital 18 % - % - % |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Time-based awards Performance-based awards Weighted- Weighted- average grant Performance average grant Share Units date fair value Shares date fair value Non-vested as of December 31, 2018 419,996 $ 19.64 628,220 $ 21.41 Granted 184,645 $ 30.01 250,858 $ 34.17 Vested (196,404) $ 17.08 (236,902) $ 14.92 Forfeited or cancelled (46,403) $ 23.70 (75,840) $ 27.42 Non-vested as of December 31, 2019 361,834 $ 25.84 566,336 $ 28.97 Time-based awards Performance-based awards Weighted- Weighted- average grant Performance average grant Share Units date fair value Shares date fair value Non-vested as of December 31, 2017 443,152 $ 15.01 744,188 $ 14.92 Granted 176,116 $ 24.69 215,490 $ 29.41 Vested (182,451) $ 13.21 (284,462) $ 11.19 Forfeited or cancelled (16,821) $ 19.99 (46,996) $ 17.13 Non-vested as of December 31, 2018 419,996 $ 19.64 628,220 $ 21.41 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance | Prepaid expenses Notional amounts (A) and other current assets December 31 2019 2018 2019 2018 Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ - $ 9,017 $ - $ 370 (A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. |
Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income | Gains reclassified from Gain recorded in other other comprehensive income comprehensive income (loss) (loss) into net income (A) 2019 2018 2017 2019 2018 2017 Derivatives designated as cash flow hedges: Forward currency contracts $ 450 $ 1,967 $ 441 $ 820 $ 1,376 $ 634 (A) Gains reclassified from comprehensive income (loss) into net income recognized in COGS in the Company’s consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 were $695 , $1,259 and $622 , respectively. Gains reclassified from other comprehensive income (loss) into net income recognized in D&D in the Company’s consolidated statements of operations were $125 , $117 and $8 for the years ended December 31, 2019, 2018 and 2017, respectively. Gains reclassified from other comprehensive income (loss) into net income recognized in SG&A in the Company’s consolidated statements of operations were $0 , $0 and $4 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | December 31 2019 2018 Fair values estimated using Level 1 Level 2 Level 3 Fair value inputs inputs inputs Fair value Financial assets carried at fair value: Forward currency contracts $ - $ - $ - $ - $ 370 Total financial assets carried at fair value $ - $ - $ - $ - $ 370 Financial liabilities carried at fair value: Earn-out consideration $ 12,011 $ - $ - $ 12,011 $ 18,672 Total financial liabilities carried at fair value $ 12,011 $ - $ - $ 12,011 $ 18,672 |
Summary of the Change in Fair Value of the Level 3 Financial Liabilities Related to Contingent Consideration | Orlaco Stoneridge Brazil Total Balance at December 31, 2018 $ 8,602 $ 10,070 $ 18,672 Change in fair value - 2,308 2,308 Foreign currency adjustments (128) (367) (495) Earn-out consideration cash payment (8,474) - (8,474) Balance at December 31, 2019 $ - $ 12,011 $ 12,011 Orlaco Stoneridge Brazil Total Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 Change in fair value 369 (156) 213 Foreign currency adjustments (404) (1,883) (2,287) Balance at December 31, 2018 $ 8,602 $ 10,070 $ 18,672 |
Restructuring and Business Re_2
Restructuring and Business Realignment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Restructuring and Related Costs | Year ended December 31 2019 2018 2017 Control Devices (A) $ 682 $ 169 $ - Electronics (B) 99 63 1,223 Stoneridge Brazil (C) - 478 589 Unallocated Corporate (D) 1,048 - - Total business realignment charges $ 1,829 $ 710 $ 1,812 (A) Business realignment severance costs for the year ended December 31, 2019 related to SG&A were $682 . Business realignment severance costs for the year ended December 31, 2018 related to D&D and SG&A were $128 and $41 , respectively. (B) Business realignment severance costs for the year ended December 31, 2019 related to SG&A were $99 . Business realignment severance costs for the year ended December 31, 2018 related to SG&A were $63 . Business realignment severance costs for the year ended December 31, 2017 related to COGS and SG&A were $56 and $1,167 , respectively. (C) B usiness realignment severance costs for the year ended December 31, 2018 related to COGS, SG&A and D&D were $63 , $387 and $28 , respectively. Business realignment severance costs for the year ended December 31, 2017 related to COGS, SG&A and D&D were $370 , $218 and $1 , respectively. (D) Business realignment severance costs for the year ended December 31, 2019 related to SG&A were $1,048 . |
Schedule of Business Realignment Charges Classified by Statement of Operations | Year ended December 31 2019 2018 2017 Cost of goods sold $ - $ 63 $ 426 Selling, general and administrative 1,829 491 1,385 Design and development - 156 1 Total business realignment charges $ 1,829 $ 710 $ 1,812 |
Electronics [Member] | |
Schedule of Restructuring and Related Costs | The expenses for the 2019 restructuring activities that relate to the Electronics reportable segment include the following: Accrual as of 2019 Charge to Utilization Accrual as of January 1, 2019 Expense (Income) Cash Non-Cash December 31, 2019 Employee termination benefits $ 520 $ (18) $ (453) $ 3 $ 52 Accelerated depreciation - 289 - (289) - Contract termination costs 17 9 (26) - - Other related costs 119 323 (442) - - Total $ 656 $ 603 $ (921) $ (286) $ 52 The expenses for the 2018 restructuring activities that relate to the Electronics reportable segment include the following: Accrual as of 2018 Charge to Utilization Accrual as of January 1, 2018 Expense Cash Non-Cash December 31, 2018 Employee termination benefits $ - $ 1,939 $ (1,419) $ - $ 520 Excess and obsolete inventory - 823 - (823) - Intangible impairment - 200 - (200) - Fixed asset impairment - 157 - (157) - Contract termination costs - 156 (139) - 17 Other related costs - 264 (145) - 119 Total $ - $ 3,539 $ (1,703) $ (1,180) $ 656 |
Control Devices [Member] | Canton Facility Restructuring Plan [Member] | |
Schedule of Restructuring and Related Costs | Accrual as of 2019 Charge Utilization Accrual as of January 1, 2019 to Expense Cash Non-Cash December 31, 2019 Employee termination benefits $ - $ 8,088 $ (5,452) $ - $ 2,636 Other related costs - 4,442 (4,442) - - Total $ - $ 12,530 $ (9,894) $ - $ 2,636 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Year ended December 31 2019 2018 2017 Net Sales: Control Devices $ 431,560 $ 441,297 $ 447,528 Inter-segment sales 6,438 8,348 5,044 Control Devices net sales 437,998 449,645 452,572 Electronics 335,195 344,727 282,383 Inter-segment sales 33,735 37,126 39,501 Electronics net sales 368,930 381,853 321,884 Stoneridge Brazil 67,534 80,175 94,533 Inter-segment sales 6 2 563 Stoneridge Brazil net sales 67,540 80,177 95,096 Eliminations (40,179) (45,476) (45,108) Total net sales $ 834,289 $ 866,199 $ 824,444 Operating Income (Loss): Control Devices $ 73,327 $ 64,191 $ 72,555 Electronics 25,006 28,236 18,119 Stoneridge Brazil 6,539 4,989 2,661 Unallocated Corporate (A) (33,591) (30,412) (35,965) Total operating income $ 71,281 $ 67,004 $ 57,370 Depreciation and Amortization: Control Devices $ 13,397 $ 11,914 $ 10,887 Electronics 9,872 8,982 8,143 Stoneridge Brazil 6,338 7,443 8,316 Unallocated Corporate 1,252 852 584 Total depreciation and amortization (B) $ 30,859 $ 29,191 $ 27,930 Interest Expense, net: Control Devices $ 811 $ 76 $ 103 Electronics 350 85 119 Stoneridge Brazil 208 824 1,812 Unallocated Corporate 2,955 3,735 3,749 Total interest expense, net $ 4,324 $ 4,720 $ 5,783 Capital Expenditures: Control Devices $ 12,646 $ 16,737 $ 17,484 Electronics 15,476 5,965 8,158 Stoneridge Brazil 5,003 3,242 3,831 Unallocated Corporate (C) 2,699 3,083 2,697 Total capital expenditures $ 35,824 $ 29,027 $ 32,170 As of December 31 2019 2018 Total Assets: Control Devices $ 191,491 $ 175,708 Electronics 285,027 265,838 Stoneridge Brazil 89,393 81,002 Corporate (C) 358,766 359,837 Eliminations (322,468) (322,866) Total assets $ 602,209 $ 559,519 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Year ended December 31 2019 2018 2017 Net Sales: North America $ 457,633 $ 480,511 $ 471,770 South America 67,534 80,175 94,533 Europe and Other 309,122 305,513 258,141 Total net sales $ 834,289 $ 866,199 $ 824,444 As of December 31 2019 2018 Long-term Assets: North America $ 87,430 $ 86,763 South America 52,518 45,408 Europe and Other 130,995 107,171 Total long-term assets $ 270,943 $ 239,342 (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 and leased assets for the headquarter building, information technology assets, equity investments and investments in subsidiaries . |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | 2019 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) € in Thousands, R$ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 65 Months Ended | ||||||
Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017BRL (R$)shares | May 15, 2017 | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | May 16, 2017 | |
Accounting Policy [Line Items] | ||||||||||
Depreciation expense | $ 24,904 | $ 22,786 | $ 21,490 | |||||||
Less: Net loss attributable to noncontrolling interest | (130) | |||||||||
Preproduction costs related to long-term supply arrangements, costs capitalized | 7,666 | 6,875 | ||||||||
Impairment of Goodwill | 0 | 0 | 0 | |||||||
Intangible assets, net | 58,122 | 62,032 | ||||||||
Amortization | 5,955 | 6,406 | 6,440 | |||||||
Amortization expense next year | 5,722 | |||||||||
Amortization expense year two | 5,722 | |||||||||
Amortization expense year three | 5,722 | |||||||||
Amortization expense year four | 5,722 | |||||||||
Amortization expense year five | $ 5,722 | |||||||||
Intangible assets, weighted-average remaining amortization period, years | 11 years | |||||||||
Intangible impairment charge | $ 0 | 202 | 0 | |||||||
Design and development expense | $ 52,198 | $ 51,074 | $ 48,877 | |||||||
Design and development expense percentage | 6.30% | 5.90% | 5.90% | 5.90% | ||||||
Research and development expense reimbursed | $ 15,096 | $ 16,540 | $ 14,946 | |||||||
Share-based compensation expense | 6,191 | 5,632 | 7,265 | |||||||
Share-based compensation expense capitalized as inventory | 0 | 0 | 0 | |||||||
Cumulative goodwill impairment | 300,083 | 300,083 | ||||||||
Product warranty and recall accrual | 3,111 | 3,283 | ||||||||
Inventory amount, FIFO | 82,910 | 64,745 | ||||||||
Inventory amount, weighted average cost | 10,539 | 14,533 | ||||||||
Foreign currency transaction gain (loss) | (372) | 487 | (500) | |||||||
Amortization of financing costs | 624 | 326 | 324 | |||||||
Interest expense, net | (4,324) | (4,720) | (5,783) | |||||||
Deferred financing costs, net | 1,625 | 882 | ||||||||
Operating lease right-of-use asset | 22,027 | |||||||||
Operating lease liability | 22,527 | |||||||||
Earn-out consideration, operating and financing activities | $ 8,474 | $ 8,474 | ||||||||
Payment of earn-out consideration paid within operating activities | 2,308 | 213 | 7,485 | |||||||
Earn-out consideration cash payment within financing activities | 3,394 | |||||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Share-based compensation expense | 6,191 | 5,632 | 7,265 | |||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Preproduction costs related to long-term supply arrangements, costs capitalized | 7,544 | 6,875 | ||||||||
Electronics [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible impairment charge | 202 | |||||||||
Interest expense, net | (350) | (85) | (119) | |||||||
Stoneridge Brazil [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Accounts receivable sold | 0 | 0 | 2,520 | R$ 7983 | ||||||
Gain (loss) on sale of accounts receivable | (86) | 273 | ||||||||
Proceeds from sale of accounts receivable | 2,434 | R$ 7710 | ||||||||
Interest expense, net | (208) | (824) | (1,812) | |||||||
Control Devices [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Interest expense, net | $ (811) | $ (76) | $ (103) | |||||||
Performance Based Right to Receive Common Shares [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Common shares, non-vested | shares | 566,337 | 628,220 | 766,538 | 766,538 | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number | shares | 566,337 | 628,220 | 766,538 | 766,538 | ||||||
Customer Lists [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | $ 33,284 | $ 37,651 | ||||||||
Customer Lists [Member] | Electronics [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 23,019 | |||||||||
Customer Lists [Member] | Stoneridge Brazil [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 10,265 | |||||||||
Trade Names [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 13,354 | 14,805 | ||||||||
Trade Names [Member] | Electronics [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 4,561 | |||||||||
Trade Names [Member] | Stoneridge Brazil [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 8,793 | |||||||||
Technology [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 7,878 | $ 9,576 | ||||||||
Technology [Member] | Electronics [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 3,498 | |||||||||
Technology [Member] | Stoneridge Brazil [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 4,270 | |||||||||
Technology [Member] | Control Devices [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 110 | |||||||||
Capitalized Software Development [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 3,606 | |||||||||
Capitalized Software Development [Member] | Electronics [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | 2,233 | |||||||||
Capitalized Software Development [Member] | Control Devices [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Intangible assets, net | $ 1,373 | |||||||||
Stoneridge Brazil [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Percentage ownership in consolidated subsidiary | 74.00% | |||||||||
Percentage of additional noncontrolling interest acquired | 26.00% | |||||||||
Less: Net loss attributable to noncontrolling interest | $ 130 | |||||||||
MSIL | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | ||||||
Equity method investments | $ 12,701 | $ 11,288 | ||||||||
Maximum [Member] | Pre-production Costs [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Property, plant and equipment, useful life | 7 years | |||||||||
Maximum [Member] | Capitalized Software Development [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Property, plant and equipment, estimated useful lives | P7Y | |||||||||
Minimum [Member] | Pre-production Costs [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||
Minimum [Member] | Capitalized Software Development [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Property, plant and equipment, estimated useful lives | P3Y | |||||||||
Orlaco [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Payment of earn-out consideration paid within operating activities | $ 5,080 | |||||||||
Earn-out consideration cash payment within financing activities | 3,394 | |||||||||
Earn-out consideration | $ 7,500 | € 7,500 | ||||||||
Credit Facility [Member] | ||||||||||
Accounting Policy [Line Items] | ||||||||||
Amortization of financing costs | 1,366 | |||||||||
Interest expense, net | $ (275) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Accounts Receivable and Concentration of Credit Risk) (Details) - Sales Revenue, Net [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ford Motor Company [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Concentration risk percentage | 11.00% | 12.00% | 14.00% |
Volvo [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Concentration risk percentage | 8.00% | 8.00% | 6.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Inventory, Current) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Significant Accounting Policies | ||
Raw materials | $ 66,357 | $ 54,382 |
Work-in-progress | 5,582 | 4,710 |
Finished goods | 21,510 | 20,186 |
Total inventories, net | $ 93,449 | $ 79,278 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Disposal of Non-Core Products) (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Proceeds from sale of productive assets | $ 40,000 | |||||
Gain on disposal | $ 33,599 | |||||
Selling, general and administrative | 123,853 | $ 138,553 | $ 141,893 | |||
Inventory, finished goods, gross | 21,510 | 20,186 | ||||
Non-core Switches and Connector Product [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||
Inventory adjustments | 1,573 | |||||
Disposal group, net sales | 41,560 | 44,537 | 43,339 | |||
Disposal group, operating income | 4,831 | $ 9,086 | $ 7,991 | |||
Control Devices [Member] | Non-core Switches and Connector Product [Member] | ||||||
Gain on disposal | $ 33,599 | |||||
Control Devices [Member] | Non-core Switches and Connector Product [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||
Disposal group, sales after disposal | 26,304 | |||||
Disposal Group, operating income after disposal | 1,458 | |||||
Disposal group, net sales | 4,160 | |||||
Disposal group, cost of goods sold | 2,775 | |||||
Gain on disposal | $ 33,921 | |||||
Selling, general and administrative | $ 322 | |||||
Services provided income per agreement recognized as reduction to selling general and administrative expenses | 1,824 | |||||
Cash received for reimbursement of retention and facility costs on disposal | $ 745 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Acquisitions Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2019USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Jan. 31, 2017EUR (€) | |
Business Acquisition [Line Items] | ||||||||||
Earn-out consideration, operating and financing activities | $ 8,474 | $ 8,474 | ||||||||
Payment of earn-out consideration paid within operating activities | $ 2,308 | $ 213 | $ 7,485 | |||||||
Earn-out consideration cash payment within financing activities | 3,394 | |||||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition related costs | 0 | 0 | ||||||||
Orlaco [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash | $ 79,675 | € 74,939 | ||||||||
Cash paid to seller at closing | $ 71,701 | € 67,439 | ||||||||
Acquisition payment held in escrow to secure payment for working capital and other adjustments | € | € 7,500 | |||||||||
Expense related to fair value adjustment for earn-out consideration | $ 369 | 4,853 | ||||||||
Orlaco [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition related costs | 1,259 | |||||||||
Orlaco [Member] | Fair Value Adjustment to Inventory [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Expense related to inventory fair value step up | $ 1,636 | |||||||||
Orlaco [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Earn-out consideration | $ 7,500 | € 7,500 | ||||||||
Payment of earn-out consideration paid within operating activities | 5,080 | |||||||||
Earn-out consideration cash payment within financing activities | $ 3,394 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Pro Forma Results of Operations) (Details) - Orlaco [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |
Net sales | $ 829,474 |
Net income attributable to Stoneridge, Inc. and subsidiaries | $ 45,283 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Property Plant and Equipment Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 411,454 | $ 393,541 |
Less: accumulated depreciation | (288,971) | (281,328) |
Property, Plant and Equipment, Net, Total | 122,483 | 112,213 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 4,550 | 4,619 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 39,263 | 37,234 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 226,076 | 212,225 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 9,708 | 9,929 |
Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 76,933 | 75,620 |
Information Technology [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 32,410 | 27,179 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 614 | 872 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 4,588 | 2,799 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 17,312 | $ 23,064 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Estimated Useful Lives of Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Office Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Office Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Tooling [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Tooling [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Information Technology [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Information Technology [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Goodwill, Beginning Balance | $ 36,717 | |
Goodwill, Ending Balance | 35,874 | $ 36,717 |
Electronics [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill, Beginning Balance | 36,717 | 38,419 |
Currency translation | (843) | (1,702) |
Goodwill, Ending Balance | $ 35,874 | $ 36,717 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | $ 89,628 | $ 88,470 |
Accumulated amortization | (31,506) | (26,438) |
Intangible Assets, Net (Excluding Goodwill), Total | 58,122 | 62,032 |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 50,750 | 52,200 |
Accumulated amortization | (17,466) | (14,549) |
Intangible Assets, Net (Excluding Goodwill), Total | 33,284 | 37,651 |
Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 20,041 | 20,689 |
Accumulated amortization | (6,687) | (5,884) |
Intangible Assets, Net (Excluding Goodwill), Total | 13,354 | 14,805 |
Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 15,231 | 15,581 |
Accumulated amortization | (7,353) | (6,005) |
Intangible Assets, Net (Excluding Goodwill), Total | 7,878 | $ 9,576 |
Capitalized Software Development [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 3,606 | |
Intangible Assets, Net (Excluding Goodwill), Total | $ 3,606 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies | ||||
Compensation related liabilities | $ 19,566 | $ 18,717 | ||
Contingent consideration | 8,602 | |||
Product warranty and recall obligations | 7,685 | 7,211 | ||
Other | 27,972 | 23,350 | ||
Total accrued expenses and other current liabilities | $ 55,223 | $ 57,880 | ||
Contingent consideration | $ 8,474 | $ 8,474 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies | ||
Product warranty and recall at beginning of period | $ 10,494 | $ 9,979 |
Accruals for warranties established during period | 7,131 | 6,217 |
Aggregate changes in pre-existing liabilities due to claim developments | 1,037 | 646 |
Settlements made during the period | (7,600) | (5,831) |
Foreign currency translation | (266) | (517) |
Product warranty and recall at end of period | $ 10,796 | $ 10,494 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies (Schedule of Weighted Average Number of Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |||
Basic weighted-average Common Shares outstanding | 27,791,799 | 28,402,227 | 28,082,114 |
Effect of dilutive shares | 478,296 | 677,599 | 689,531 |
Diluted weighted-average Common Shares outstanding | 28,270,095 | 29,079,826 | 28,771,645 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies (Common Share Repurchase) (Details) $ in Thousands | May 07, 2019USD ($) | May 07, 2019USD ($)shares | Dec. 31, 2019USD ($) | Oct. 26, 2018USD ($) |
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||
Payments for repurchase of common stock | $ 50,000 | |||
Accelerated Share Repurchase Agreement [Member] | ||||
Payments for repurchase of common stock | $ 50,000 | |||
Stock repurchased and retired during period, shares | shares | 1,349,528 | |||
Percentage of expected shares repurchased | 80 | 80 | ||
Treasury stock, retired, cost method, amount | $ 40,000 | |||
Equity increase (decrease) related to shares repurchase program. | $ 10,000 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies (Changes in Accumulated Other Comprehensive Loss by Component) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |||
Foreign currency translation, Beginning balance | $ (86,044) | $ (69,417) | |
Foreign currency translation, Other comprehensive income (loss) before reclassifications | (5,428) | (16,627) | |
Other comprehensive income (loss), Foreign currency transaction and translation adjustment, net of tax | (5,428) | (16,627) | |
Foreign currency translation, Ending balance | (91,472) | (86,044) | $ (69,417) |
Unrealized gain (loss) on on derivatives, Beginning balance | 292 | (143) | |
Unrealized gain (loss) on on derivatives, Other comprehensive income (loss) before reclassifications | 355 | 1,448 | |
Unrealized gain (loss) on on derivatives, Amounts reclassified from accumulated other comprehensive loss | (647) | (1,013) | |
Unrealized gain (loss) on on derivatives, Net other comprehensive income (loss), net of tax | (292) | 435 | (125) |
Unrealized gain (loss) on on derivatives, Ending balance | 292 | (143) | |
Accumulated other comprehensive income (loss), Beginning balance | (85,752) | (69,560) | |
Total, Other comprehensive loss before reclassifications | (5,073) | (15,179) | |
Total, Amounts reclassified from accumulated other comprehensive loss | (647) | (1,013) | |
Total, Net other comprehensive loss, net of tax | (5,720) | (16,192) | |
Accumulated other comprehensive income (loss), Ending balance | $ (91,472) | $ (85,752) | $ (69,560) |
Summary of Significant Accou_19
Summary of Significant Accounting Policies (Recently Adopted Accounting Standards) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 22,027 | |
Lease liabilities | $ 22,527 | |
Adjustment | ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 20,618 | |
Lease liabilities | $ 20,856 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Contract liabilities | 0 | 0 |
Capitalized contract acquisition costs | $ 0 | $ 0 |
Revenue (Revenue by Segment and
Revenue (Revenue by Segment and Geographical Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 190,365 | $ 203,386 | $ 222,241 | $ 218,297 | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 834,289 | $ 866,199 | $ 824,444 |
North America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 457,633 | 480,511 | 471,770 | ||||||||
South America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 67,534 | 80,175 | 94,533 | ||||||||
Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 259,461 | 270,127 | 224,741 | ||||||||
Asia Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 49,661 | 35,386 | 33,400 | ||||||||
Control Devices [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 431,560 | 441,297 | 447,528 | ||||||||
Control Devices [Member] | North America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 365,010 | 395,148 | 409,596 | ||||||||
Control Devices [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 22,467 | 14,727 | 8,164 | ||||||||
Control Devices [Member] | Asia Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 44,083 | 31,422 | 29,768 | ||||||||
Electronics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 335,195 | 344,727 | 282,383 | ||||||||
Electronics [Member] | North America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 92,623 | 85,363 | 62,174 | ||||||||
Electronics [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 236,994 | 255,400 | 216,577 | ||||||||
Electronics [Member] | Asia Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 5,578 | 3,964 | 3,632 | ||||||||
Stoneridge Brazil [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 67,534 | 80,175 | 94,533 | ||||||||
Stoneridge Brazil [Member] | South America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 67,534 | $ 80,175 | $ 94,533 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) R$ in Thousands, $ in Thousands | May 16, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 15, 2017 | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||
Income (loss) from equity method investments | $ 1,578 | $ 2,038 | $ 1,636 | ||||||
Investment | $ 28,380 | 32,437 | $ 28,380 | ||||||
Selling, General and Administrative Expenses [Member] | Venture Capital Funds [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Contribution | $ 1,600 | ||||||||
MSIL | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | |||
Equity method investments | $ 11,288 | $ 12,701 | $ 11,288 | ||||||
Income (loss) from equity method investments | 1,578 | 2,038 | $ 1,636 | ||||||
Stoneridge Brazil [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage ownership in consolidated subsidiary | 74.00% | ||||||||
Percentage of additional noncontrolling interest acquired | 26.00% | ||||||||
Noncontrolling interest | $ 14,458 | $ 13,762 | |||||||
Dividends payable | 5,980 | 6,010 | 5,980 | R$ 24154 | R$ 23204 | ||||
Payments to Noncontrolling Interests | 1,500 | ||||||||
Dividends Payable, Price Index Adjustment | 709 | 921 | 709 | R$ 3703 | R$ 2752 | ||||
Stoneridge Brazil [Member] | Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Noncontrolling interest | 16,995 | ||||||||
Stoneridge Brazil [Member] | Additional Paid-In Capital | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Noncontrolling interest | $ 31,453 | ||||||||
Autotech Ventures [Member] | Venture Capital Funds [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment commitment | 10,000 | $ 10,000 | |||||||
Contribution expected period (in years) | 10 years | ||||||||
Contribution | 437 | ||||||||
Investment | $ 437 | $ 1,827 | $ 437 |
Investments (Schedule of Noncon
Investments (Schedule of Noncontrolling Interest) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Noncontrolling Interest [Line Items] | |
Net loss | $ 130 |
Stoneridge Brazil [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest at beginning of period | 13,762 |
Net loss | (130) |
Foreign currency translation | 826 |
Comprehensive income | 696 |
Acquisition of noncontrolling interest | (14,458) |
Noncontrolling interest at end of period |
Debt (Narrative) (Details)
Debt (Narrative) (Details) ¥ in Thousands, kr in Thousands, R$ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019SEK (kr) | Jun. 05, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 12, 2014USD ($) | Nov. 02, 2007USD ($) | |
Debt Instrument [Line Items] | ||||||||
Notes covenant compliance | The Company was in compliance with all Credit Facility and debt covenants at December 31, 2019 and 2018. | |||||||
Borrowings outstanding | $ 126,000 | $ 96,000 | ||||||
Outstanding letters of credit | 1,768 | 1,815 | ||||||
2020 | 2,672 | |||||||
2021 | 454 | |||||||
2024 | 126,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Capitalized deferred financing costs | 1,366 | |||||||
Line of credit facility, maximum borrowing capacity | $ 400,000 | $ 300,000 | ||||||
Credit facility, borrowing capacity | $ 100,000 | |||||||
Increase in maximum borrowing capacity of credit facility | $ 150,000 | |||||||
Borrowings outstanding | 126,000 | 96,000 | ||||||
Write off of deferred debt issuance cost | 275 | |||||||
Debt instrument covenant default of other debt maximum amount | 30,000 | |||||||
Debt instrument covenant uninsured asset losses maximum amount | 30,000 | |||||||
Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 2,136 | kr 20,000 | 2,259 | |||||
Line of credit | 0 | 0 | ||||||
Suzhou Short-Term Credit Line [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 8,618 | ¥ 60,000 | ||||||
Borrowings outstanding | $ 2,154 | $ 0 | ||||||
Outstanding credit lines weighted-average interest rate | 4.80% | 4.80% | 4.80% | 4.80% | ||||
Suzhou Short-Term Credit Line [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding credit lines interest rate | 5.00% | |||||||
Suzhou Short-Term Credit Line [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding credit lines interest rate | 4.70% | |||||||
Stoneridge Brazil [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, weighted average interest rate | 7.00% | 7.00% | 7.00% | 7.00% | ||||
Stoneridge Brazil [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,244 | R$ 5000 | ||||||
Borrowings outstanding | 0 | |||||||
Stoneridge Brazil [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
2020 | 518 | |||||||
2021 | $ 454 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 126,000 | $ 96,000 |
Debt: | ||
Long-term debt | 129,126 | |
Total debt | 3,126 | 2,516 |
Less: current portion | (2,672) | (1,533) |
Total long-term debt, net | 454 | 983 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 126,000 | 96,000 |
Debt: | ||
Debt, maturity | June 2024 | |
Suzhou Short-Term Credit Line [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 2,154 | 0 |
Debt: | ||
Debt, maturity | August 2020 | |
Maximum [Member] | Line of Credit [Member] | ||
Debt: | ||
Interest rate | 2.81% | |
Maximum [Member] | Suzhou Short-Term Credit Line [Member] | ||
Debt: | ||
Outstanding credit lines interest rate | 5.00% | |
Minimum [Member] | Line of Credit [Member] | ||
Debt: | ||
Interest rate | 2.77% | |
Minimum [Member] | Suzhou Short-Term Credit Line [Member] | ||
Debt: | ||
Outstanding credit lines interest rate | 4.70% | |
Stoneridge Brazil Short-Term Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 989 | |
Stoneridge Brazil Long-Term Notes [Member] | ||
Debt: | ||
Long-term debt | $ 972 | $ 1,527 |
Debt, maturity | November 2021 | |
Interest rate | 7.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax expense (benefit) on operations | $ (4,249) | $ 1,450 | $ 9,066 | $ 1,835 | $ 690 | $ 3,467 | $ 3,820 | $ 3,233 | $ 8,102 | $ 11,210 | $ 7,533 |
Effective income tax rate | 11.80% | 17.20% | 14.30% | ||||||||
Unremitted earnings of foreign subsidiaries | 56,894 | $ 56,894 | |||||||||
General business tax credit carry forwards, expiration date | Dec. 31, 2025 | ||||||||||
Liability for uncertain tax positions reduction to noncurrent asset | 3,449 | $ 3,449 | |||||||||
Liability for uncertain tax positions, noncurrent | 0 | 0 | |||||||||
Unrecognized tax benefits that would impact effective tax rate | 3,449 | 3,481 | 3,449 | 3,481 | |||||||
Gross interest and penalties expense (benefit) | (5) | (13) | $ (33) | ||||||||
Accrued payment of interest and penalties | 0 | $ 19 | 0 | 19 | |||||||
Impairment of Goodwill | 0 | $ 0 | $ 0 | ||||||||
State and Local Jurisdiction [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Net operating loss carry forwards | 57,817 | 57,817 | |||||||||
General business and foreign tax credit carry forwards | 1,711 | 1,711 | |||||||||
Foreign Tax Authority [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Net operating loss carry forwards | 23,851 | 23,851 | |||||||||
General business and foreign tax credit carry forwards | 1,354 | 1,354 | |||||||||
U.S. Federal [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
General business and foreign tax credit carry forwards | $ 15,833 | $ 15,833 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes: | |||||||||||
Domestic | $ 30,464 | $ 32,907 | $ 36,657 | ||||||||
Foreign | 37,929 | 32,151 | 15,925 | ||||||||
Income before income taxes | 68,393 | 65,058 | 52,582 | ||||||||
Provision for income taxes: | |||||||||||
Federal | (4,384) | 2,370 | 2,478 | ||||||||
State and foreign | 6,900 | 6,288 | 11,014 | ||||||||
Total current expense (benefit) | 2,516 | 8,658 | 13,492 | ||||||||
Deferred: | |||||||||||
Federal | 6,780 | 3,788 | (2,585) | ||||||||
State and foreign | (1,194) | (1,236) | (3,374) | ||||||||
Total deferred benefit | 5,586 | 2,552 | (5,959) | ||||||||
Income Tax Expense (Benefit), Total | $ (4,249) | $ 1,450 | $ 9,066 | $ 1,835 | $ 690 | $ 3,467 | $ 3,820 | $ 3,233 | $ 8,102 | $ 11,210 | $ 7,533 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal tax benefit | 0.20% | 0.10% | (0.80%) |
Tax credits and incentives | (9.20%) | (8.40%) | (4.70%) |
Foreign rate differential | 2.00% | 1.10% | (4.50%) |
Impact of change in enacted tax law | 1.50% | (1.30%) | (17.20%) |
Change in valuation allowances | (0.20%) | (3.00%) | 4.20% |
U.S. tax on foreign earnings | (4.90%) | 1.00% | |
Compensation and benefits | (0.70%) | 1.30% | (1.10%) |
Other | 2.10% | 5.40% | 3.40% |
Effective Income Tax Rate Reconciliation, Percent, Total | 11.80% | 17.20% | 14.30% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Inventories | $ 2,254 | $ 2,135 |
Employee compensation and benefits | 2,105 | 1,225 |
Accrued liabilities and reserves | 3,211 | 4,181 |
Property, plant and equipment | 552 | 647 |
Tax loss carryforwards | 7,536 | 8,437 |
Tax credit carryforwards | 15,448 | 22,772 |
Right-of-use assets | 4,768 | |
Other | 582 | 410 |
Gross deferred tax assets | 36,456 | 39,807 |
Less: Valuation allowance | (8,586) | (8,962) |
Deferred tax assets less valuation allowance | 27,870 | 30,845 |
Deferred tax liabilities: | ||
Property, plant and equipment | (2,071) | (2,545) |
Intangible assets | (14,846) | (16,683) |
Outside basis difference in foreign subsidiary | (13,750) | (13,750) |
Lease liability | (4,695) | |
Other | (375) | (641) |
Gross deferred tax liabilities | (35,737) | (33,619) |
Net deferred tax liabilities | $ (7,867) | $ (2,774) |
Income Taxes (Classification of
Income Taxes (Classification of Net Deferred Tax Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Long-term deferred tax assets | $ 4,663 | $ 12,121 |
Long-term deferred tax liabilities | (12,530) | (14,895) |
Net deferred tax liabilities | $ (7,867) | $ (2,774) |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Contingencies) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Balance as of January 1 | $ 3,481 | $ 3,645 | $ 3,839 |
Tax positions related to the current year: | |||
Additions | 31 | ||
Tax positions related to prior years: | |||
Reductions | (32) | (165) | (176) |
Expiration of statutes of limitation, increase | 1 | ||
Expiration of statutes of limitation | (49) | ||
Balance as of December 31 | $ 3,449 | $ 3,481 | $ 3,645 |
Income Taxes (Schedule of Tax Y
Income Taxes (Schedule of Tax Years Open for Examination) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | U.S. Federal [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
Minimum [Member] | U.S. Federal [Member] | Income Tax Authority Argentina [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Minimum [Member] | Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
Minimum [Member] | Foreign Tax Authority [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Minimum [Member] | Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
Minimum [Member] | Brazil [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Minimum [Member] | China [Member] | State Administration of Taxation, China [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
Minimum [Member] | France [Member] | Ministry of the Economy, Finance and Industry, France [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2017 |
Minimum [Member] | Mexico [Member] | Mexican Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Minimum [Member] | Spain [Member] | Tax Authority, Spain [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Minimum [Member] | Sweden [Member] | Swiss Federal Tax Administration (FTA) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Minimum [Member] | United Kingdom [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2018 |
Maximum [Member] | U.S. Federal [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | U.S. Federal [Member] | Income Tax Authority Argentina [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Foreign Tax Authority [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Brazil [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | China [Member] | State Administration of Taxation, China [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | France [Member] | Ministry of the Economy, Finance and Industry, France [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Mexico [Member] | Mexican Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Spain [Member] | Tax Authority, Spain [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | Sweden [Member] | Swiss Federal Tax Administration (FTA) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Maximum [Member] | United Kingdom [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Operating Lease Commitments - N
Operating Lease Commitments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Option to extend | true |
Option to terminate | true |
Operating Lease Commitments - C
Operating Lease Commitments - Components of lease expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost | |
Operating lease cost | $ 5,740 |
Short-term lease cost | 529 |
Variable lease cost | 363 |
Total lease cost | $ 6,632 |
Operating Lease Commitments - S
Operating Lease Commitments - Supplemental balance sheet information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets [Abstract] | |
Operating lease right-of-use asset | $ 22,027 |
Financial position | us-gaap:OperatingLeaseRightOfUseAsset |
Liabilities [Abstract] | |
Operating lease current liability, included in other current liabilities | $ 4,556 |
Financial position | us-gaap:OtherLiabilitiesCurrent |
Long-term lease liabilities | $ 17,971 |
Financial position | us-gaap:OperatingLeaseLiabilityNoncurrent |
Total lease liabilities | $ 22,527 |
Operating Lease Commitments - M
Operating Lease Commitments - Maturities of lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities of lease liabilities: | |
2020 | $ 5,238 |
2021 | 4,613 |
2022 | 3,593 |
2023 | 3,489 |
2024 | 3,171 |
Thereafter | 7,328 |
Total future minimum lease payments | 27,432 |
Less: imputed interest | (4,905) |
Total lease liabilities | $ 22,527 |
Operating Lease Commitments - W
Operating Lease Commitments - Weighted-average remaining lease term and discount rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases - Weighted-average remaining lease term (in years) | 6 years 8 months 15 days |
Operating leases - Weighted-average discount rate | 5.75% |
Operating Lease Commitments - O
Operating Lease Commitments - Other information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid related to operating lease obligations | $ 5,558 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 6,065 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2018 | May 31, 2016 | May 31, 2013 | Apr. 30, 2005 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation vested in period, fair value | $ 12,376 | $ 12,577 | $ 8,718 | |||||
Excess tax benefit realized from vesting of restricted Common Shares | $ 1,289 | $ 1,584 | $ 858 | |||||
Time Based Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common shares, forfeited or cancelled | (46,403) | (16,821) | ||||||
Weighted average grant date fair value, granted | $ 30.01 | $ 24.69 | $ 18.73 | |||||
Unrecognized compensation expense | $ 3,924 | |||||||
Employee service share-based compensation, nonvested, period for recognition | 1 year 3 months 10 days | |||||||
Performance Based Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common shares, forfeited or cancelled | (75,840) | (46,996) | ||||||
Weighted average grant date fair value, granted | $ 34.17 | $ 29.41 | ||||||
Unrecognized compensation expense | $ 3,319 | |||||||
Employee service share-based compensation, nonvested, period for recognition | 1 year 3 months 7 days | |||||||
Plan 2006 [Member] | Time Based Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | |||||
Plan 2006 [Member] | Performance Based Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | |||||
2016 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation award reserved for issuance of common shares | 1,800,000 | |||||||
Share-based compensation award granted in period | 1,200,753 | |||||||
Share-based compensation award, number of shares available for grant | 779,684 | |||||||
2016 Plan [Member] | Time Based Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation award granted in period | 476,870 | |||||||
2016 Plan [Member] | Performance Based Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation award granted in period | 723,883 | |||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | |||||
Director Share Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation award reserved for issuance of common shares | 850,000 | 700,000 | 500,000 | |||||
Share-based compensation, increase in awards reserved for issuance of common shares | 150,000 | 200,000 | ||||||
Share-based compensation award vesting period | 1 year | |||||||
Share-based compensation restricted common shares issued | 670,797 | |||||||
Share-based compensation, maximum number of shares issuable | 179,203 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans (Schedule of the Allocation of Performance Shares Between Total Shareholder Return and Earnings per Share) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Return on invested capital | 18.00% | ||
Performance Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shareholder return | 45.00% | 55.00% | 55.00% |
Earnings per share | 36.00% | 45.00% | 45.00% |
Share-Based Compensation Plan_4
Share-Based Compensation Plans (Disclosure of Share-based Compensation Arrangements by Share-based Payment Award) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Time Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 419,996 | 443,152 | |
Common shares, granted | 184,645 | 176,116 | |
Common shares, vested | (196,404) | (182,451) | |
Common shares, forfeited or cancelled | (46,403) | (16,821) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 361,834 | 419,996 | 443,152 |
Weighted average grant date fair value, non-vested | $ 19.64 | $ 15.01 | |
Weighted average grant date fair value, granted | 30.01 | 24.69 | $ 18.73 |
Weighted average grant date fair value, vested | 17.08 | 13.21 | |
Weighted average grant date fair value, forfeited or cancelled | 23.70 | 19.99 | |
Weighted average grant date fair value, non-vested | $ 25.84 | $ 19.64 | $ 15.01 |
Performance Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 628,220 | 744,188 | |
Common shares, granted | 250,858 | 215,490 | |
Common shares, vested | (236,902) | (284,462) | |
Common shares, forfeited or cancelled | (75,840) | (46,996) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 566,336 | 628,220 | 744,188 |
Weighted average grant date fair value, non-vested | $ 21.41 | $ 14.92 | |
Weighted average grant date fair value, granted | 34.17 | 29.41 | |
Weighted average grant date fair value, vested | 14.92 | 11.19 | |
Weighted average grant date fair value, forfeited or cancelled | 27.42 | 17.13 | |
Weighted average grant date fair value, non-vested | $ 28.97 | $ 21.41 | $ 14.92 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation [Abstract] | |||
Expenses related to employee benefit plans | $ 4,260 | $ 3,520 | $ 2,601 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 18, 2020USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Impairment of Goodwill | $ 0 | $ 0 | $ 0 | |||||
Payment of earn-out consideration paid within operating activities | 2,308 | 213 | 7,485 | |||||
Earn-out consideration cash payment within financing activities | 3,394 | |||||||
Earn-out consideration, operating and financing activities | $ 8,474 | $ 8,474 | ||||||
Transfers in or out of Level 3 | 0 | |||||||
Euro-Denominated Foreign Currency Forward Contracts [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Gain (loss) on derivative instruments held for trading purposes, net | 73 | (174) | ||||||
Interest Rate Swap [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Notional amounts | $ 50,000 | |||||||
Cash Flow Hedging [Member] | U.S. Dollar Denominated Foreign Currency Forward Contracts Euro Functional Currency [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Notional amounts | 0 | 0 | ||||||
Cash Flow Hedging [Member] | U.S. Dollar Denominated Foreign Currency Forward Contracts, Swedish Krona Functional Currency [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Notional amounts | 0 | 0 | ||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forward Currency Contracts [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Notional amounts | 9,017 | |||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Mexican Peso-Denominated Foreign Currency Forward Contracts [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Notional amounts | 0 | 9,017 | ||||||
Not Designated as Hedging Instrument [Member] | Euro-Denominated Foreign Currency Forward Contracts [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Notional amounts | 0 | $ 0 | $ 1,486 | |||||
Orlaco [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Earn-out consideration | $ 7,500 | € 7,500 | ||||||
Payment of earn-out consideration paid within operating activities | 5,080 | |||||||
Earn-out consideration cash payment within financing activities | $ 3,394 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands | Feb. 18, 2020 | Dec. 31, 2018 |
Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 9,017 | |
Cash flow hedges , other derivative assets | $ 370 | |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 50,000 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)) (Details) - Designated as Hedging Instrument [Member] - Forward Currency Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives designated as cash flow hedges: | |||
Gain recorded in other comprehensive income (loss) | $ 450 | $ 1,967 | $ 441 |
Gain reclassified from other comprehensive income (loss) into net income | 820 | 1,376 | 634 |
Cost of Goods Sold [Member] | |||
Derivatives designated as cash flow hedges: | |||
Gain reclassified from other comprehensive income (loss) into net income | 695 | 1,259 | 622 |
Design and Development Expense [Member] | |||
Derivatives designated as cash flow hedges: | |||
Gain reclassified from other comprehensive income (loss) into net income | 125 | 117 | 8 |
Selling, General and Administrative Expenses [Member] | |||
Derivatives designated as cash flow hedges: | |||
Gain reclassified from other comprehensive income (loss) into net income | $ 0 | $ 0 | $ 4 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Recurring [Member] | ||
Financial assets carried at fair value: | ||
Forward currency asset contracts | $ 370 | |
Total financial assets carried at fair value | 370 | |
Financial liabilities carried at fair value: | ||
Earn-out consideration | $ 12,011 | 18,672 |
Total financial liabilities carried at fair value | 12,011 | $ 18,672 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial liabilities carried at fair value: | ||
Earn-out consideration | 12,011 | |
Total financial liabilities carried at fair value | $ 12,011 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements (Summary of the change in fair value of the Level 3 financial liabilities related to earn-out consideration) (Details) - Earnout Consideration [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | $ 18,672 | $ 20,746 |
Change in fair value | 2,308 | 213 |
Foreign currency adjustments | (495) | (2,287) |
Earn-out consideration cash payment | (8,474) | |
Financial liability, Ending balance | 12,011 | 18,672 |
Orlaco [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | 8,602 | 8,637 |
Change in fair value | 369 | |
Foreign currency adjustments | (128) | (404) |
Earn-out consideration cash payment | (8,474) | |
Financial liability, Ending balance | 8,602 | |
Stoneridge Brazil [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | 10,070 | 12,109 |
Change in fair value | 2,308 | (156) |
Foreign currency adjustments | (367) | (1,883) |
Financial liability, Ending balance | $ 12,011 | $ 10,070 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) R$ in Thousands, $ in Thousands | 12 Months Ended | 65 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 15, 2017 | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Short-term Debt [Line Items] | ||||||
Environmental remediation accrued undiscounted liability | $ 82 | $ 111 | ||||
Loss recoveries and insurance gain contingencies | $ 1,644 | |||||
Product warranty and recall accrual | 3,111 | 3,283 | ||||
Cash proceeds related to damaged inventory and incremental costs | 241 | 500 | ||||
Cash proceeds within cash flows from investing activities | 1,403 | 711 | ||||
Cost of Goods Sold [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Insurance recoveries | 189 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Insurance recoveries | 0 | 0 | $ 1,923 | |||
Gain on litigation | 6,473 | |||||
Interest Income [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Gain on litigation | 2,392 | |||||
Professional Fees [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Gain on litigation | 990 | |||||
Letter of Credit [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Line of credit | 1,489 | |||||
Stoneridge Brazil [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Percentage ownership in consolidated subsidiary | 74.00% | |||||
Stoneridge Brazil [Member] | Civil, labor and other tax contingencies [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Loss contingency, estimate of possible loss | $ 7,300 | $ 7,600 | R$ 29200 | R$ 29700 |
Headquarter Relocation and Co_2
Headquarter Relocation and Consolidation (Narrative) (Details) - Headquarter Relocation [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring expense | $ 0 | $ 269 | $ 493 |
Grant Agreement, Maximum Value | 1,400 | ||
Grant income | $ 429 | $ 312 | $ 338 |
Restructuring and Business Re_3
Restructuring and Business Realignment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 603 | $ 3,539 |
Additional restructuring costs | 400 | |
Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 12,530 | |
Canton Facility Restructuring Plan [Member] | Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 12,530 | |
Canton Facility Restructuring Plan [Member] | Control Devices [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated total cost | 1,500 | |
Canton Facility Restructuring Plan [Member] | Control Devices [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated total cost | 1,900 | |
Employee Termination [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | (18) | 1,939 |
Employee Termination [Member] | Canton Facility Restructuring Plan [Member] | Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 8,088 | |
Excess and Obsolete Inventory [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 823 | |
Intangible Impairment [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 200 | |
Fixed Asset Impairment [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 157 | |
Other Restructuring [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 323 | 264 |
Other Restructuring [Member] | Canton Facility Restructuring Plan [Member] | Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 4,442 | |
Contract Termination [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 9 | 156 |
Selling, General and Administrative Expenses [Member] | Canton Facility Restructuring Plan [Member] | Canton Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 1,526 | |
Cost of Goods Sold [Member] | Canton Facility Restructuring Plan [Member] | Canton Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 7,625 | |
Cost of Goods Sold [Member] | Excess and Obsolete Inventory [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 823 | |
Design and Development Expense [Member] | Canton Facility Restructuring Plan [Member] | Canton Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 3,379 |
Restructuring and Business Re_4
Restructuring and Business Realignment (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | $ 656 | |
Charge to expense | 603 | 3,539 |
Cash payments | (921) | (1,703) |
Utilization, Non-Cash | (286) | (1,180) |
Restructuring Reserve, Ending Balance | 52 | 656 |
Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 12,530 | |
Control Devices [Member] | Canton Facility Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | ||
Charge to expense | 12,530 | |
Cash payments | (9,894) | |
Utilization, Non-Cash | ||
Restructuring Reserve, Ending Balance | 2,636 | |
Employee Termination [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 520 | |
Charge to expense | (18) | 1,939 |
Cash payments | (453) | (1,419) |
Utilization, Non-Cash | 3 | |
Restructuring Reserve, Ending Balance | 52 | 520 |
Employee Termination [Member] | Control Devices [Member] | Canton Facility Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | ||
Charge to expense | 8,088 | |
Cash payments | (5,452) | |
Utilization, Non-Cash | ||
Restructuring Reserve, Ending Balance | 2,636 | |
Excess and Obsolete Inventory [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | ||
Charge to expense | 823 | |
Utilization, Non-Cash | (823) | |
Restructuring Reserve, Ending Balance | ||
Excess and Obsolete Inventory [Member] | Electronics [Member] | Cost of Goods Sold [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 823 | |
Accelerated Depreciation [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 289 | |
Utilization, Non-Cash | (289) | |
Contract Termination [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 17 | |
Charge to expense | 9 | 156 |
Cash payments | (26) | (139) |
Restructuring Reserve, Ending Balance | 17 | |
Intangible Impairment [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | ||
Charge to expense | 200 | |
Utilization, Non-Cash | (200) | |
Restructuring Reserve, Ending Balance | ||
Fixed Asset Impairment [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | ||
Charge to expense | 157 | |
Utilization, Non-Cash | (157) | |
Restructuring Reserve, Ending Balance | ||
Other Restructuring [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 119 | |
Charge to expense | 323 | 264 |
Cash payments | (442) | (145) |
Restructuring Reserve, Ending Balance | 119 | |
Other Restructuring [Member] | Control Devices [Member] | Canton Facility Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | ||
Charge to expense | 4,442 | |
Cash payments | (4,442) | |
Utilization, Non-Cash | ||
Restructuring Reserve, Ending Balance |
Restructuring and Business Re_5
Restructuring and Business Realignment (Schedule of Business Realignment Charges Classified by Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | $ 1,829 | $ 710 | $ 1,812 |
Cost of Goods Sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 63 | 426 | |
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 1,829 | 491 | 1,385 |
Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 156 | 1 | |
Control Devices [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 682 | 169 | |
Control Devices [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 682 | 41 | |
Control Devices [Member] | Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 128 | ||
Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 99 | 63 | 1,223 |
Electronics [Member] | Cost of Goods Sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 56 | ||
Electronics [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 99 | 63 | 1,167 |
Stoneridge Brazil [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 478 | 589 | |
Stoneridge Brazil [Member] | Cost of Goods Sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 63 | 370 | |
Stoneridge Brazil [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 387 | 218 | |
Stoneridge Brazil [Member] | Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 28 | $ 1 | |
Unallocated Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment charges | 1,048 | ||
Unallocated Corporate [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 1,048 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales: | |||||||||||
Net sales | $ 190,365 | $ 203,386 | $ 222,241 | $ 218,297 | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 834,289 | $ 866,199 | $ 824,444 |
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 1,073 | $ 9,323 | $ 49,186 | $ 11,699 | 12,664 | $ 18,312 | $ 19,181 | $ 16,847 | 71,281 | 67,004 | 57,370 |
Total income before income taxes | 68,393 | 65,058 | 52,582 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 30,859 | 29,191 | 27,930 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 4,324 | 4,720 | 5,783 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 35,824 | 29,027 | 32,170 | ||||||||
Long-Lived Assets | 270,943 | 239,342 | 270,943 | 239,342 | |||||||
Total Assets: | |||||||||||
Total assets | 602,209 | 559,519 | 602,209 | 559,519 | |||||||
Intersegment Eliminations [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | (40,179) | (45,476) | (45,108) | ||||||||
Total Assets: | |||||||||||
Total assets | (322,468) | (322,866) | (322,468) | (322,866) | |||||||
Control Devices [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 431,560 | 441,297 | 447,528 | ||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 73,327 | 64,191 | 72,555 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 13,397 | 11,914 | 10,887 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 811 | 76 | 103 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 12,646 | 16,737 | 17,484 | ||||||||
Total Assets: | |||||||||||
Total assets | 191,491 | 175,708 | 191,491 | 175,708 | |||||||
Control Devices [Member] | Operating Segments [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 437,998 | 449,645 | 452,572 | ||||||||
Control Devices [Member] | Inter-Segment Sales [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 6,438 | 8,348 | 5,044 | ||||||||
Electronics [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 335,195 | 344,727 | 282,383 | ||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 25,006 | 28,236 | 18,119 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 9,872 | 8,982 | 8,143 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 350 | 85 | 119 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 15,476 | 5,965 | 8,158 | ||||||||
Total Assets: | |||||||||||
Total assets | 285,027 | 265,838 | 285,027 | 265,838 | |||||||
Electronics [Member] | Operating Segments [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 368,930 | 381,853 | 321,884 | ||||||||
Electronics [Member] | Inter-Segment Sales [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 33,735 | 37,126 | 39,501 | ||||||||
Stoneridge Brazil [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 67,534 | 80,175 | 94,533 | ||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 6,539 | 4,989 | 2,661 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 6,338 | 7,443 | 8,316 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 208 | 824 | 1,812 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 5,003 | 3,242 | 3,831 | ||||||||
Total Assets: | |||||||||||
Total assets | 89,393 | 81,002 | 89,393 | 81,002 | |||||||
Stoneridge Brazil [Member] | Operating Segments [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 67,540 | 80,177 | 95,096 | ||||||||
Stoneridge Brazil [Member] | Inter-Segment Sales [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 6 | 2 | 563 | ||||||||
Unallocated Corporate [Member] | |||||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | (33,591) | (30,412) | (35,965) | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 1,252 | 852 | 584 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 2,955 | 3,735 | 3,749 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 2,699 | 3,083 | $ 2,697 | ||||||||
Total Assets: | |||||||||||
Total assets | $ 358,766 | $ 359,837 | $ 358,766 | $ 359,837 |
Segment Reporting (Schedule o_2
Segment Reporting (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 190,365 | $ 203,386 | $ 222,241 | $ 218,297 | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 834,289 | $ 866,199 | $ 824,444 |
Long-term Assets: | |||||||||||
Total long-term assets | 270,943 | 239,342 | 270,943 | 239,342 | |||||||
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 457,633 | 480,511 | 471,770 | ||||||||
Long-term Assets: | |||||||||||
Total long-term assets | 87,430 | 86,763 | 87,430 | 86,763 | |||||||
South America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 67,534 | 80,175 | 94,533 | ||||||||
Long-term Assets: | |||||||||||
Total long-term assets | 52,518 | 45,408 | 52,518 | 45,408 | |||||||
Europe and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 309,122 | 305,513 | $ 258,141 | ||||||||
Long-term Assets: | |||||||||||
Total long-term assets | $ 130,995 | $ 107,171 | $ 130,995 | $ 107,171 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Feb. 27, 2020 | Feb. 24, 2020 | Feb. 18, 2020 | Oct. 26, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Maximum value of common shares allowed to be repurchased | $ 50,000 | |||
Interest Rate Swap [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Notional amounts | $ 50,000 | |||
Subsequent Event [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Maximum value of common shares allowed to be repurchased | $ 50,000 | |||
Stock repurchase program period | 18 months | |||
Derivative maturity date | Mar. 31, 2023 | |||
Scenario, Plan [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accelerated share repurchase agreement, shares delivered | 364,604 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2019 | |
Gain on disposal | $ 33,599 | |
Control Devices [Member] | Non-core Switches and Connector Product [Member] | ||
Gain on disposal | $ 33,599 |
Unaudited Quarterly Financial_4
Unaudited Quarterly Financial Data (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 190,365 | $ 203,386 | $ 222,241 | $ 218,297 | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 834,289 | $ 866,199 | $ 824,444 |
Gross profit | 44,198 | 51,855 | 56,827 | 60,853 | 57,959 | 63,285 | 67,418 | 67,969 | |||
Operating income (loss) | 1,073 | 9,323 | 49,186 | 11,699 | 12,664 | 18,312 | 19,181 | 16,847 | 71,281 | 67,004 | 57,370 |
Income tax expense (benefit) on operations | (4,249) | 1,450 | 9,066 | 1,835 | 690 | 3,467 | 3,820 | 3,233 | 8,102 | 11,210 | 7,533 |
Net income | $ 4,209 | $ 6,661 | $ 39,764 | $ 9,657 | $ 12,056 | $ 13,292 | $ 15,120 | $ 13,380 | $ 60,291 | $ 53,848 | $ 45,049 |
Earnings (loss) per share attributable to Stoneridge, Inc.: | |||||||||||
Basic (in dollars per share) | $ 0.15 | $ 0.24 | $ 1.43 | $ 0.34 | $ 0.42 | $ 0.47 | $ 0.53 | $ 0.47 | $ 2.17 | $ 1.90 | $ 1.61 |
Diluted (in dollars per share) | $ 0.15 | $ 0.24 | $ 1.41 | $ 0.33 | $ 0.42 | $ 0.46 | $ 0.52 | $ 0.46 | $ 2.13 | $ 1.85 | $ 1.57 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable Reserves | |||
Balance at beginning of period | $ 1,243 | $ 1,109 | $ 1,630 |
Charged to cost and expenses | 1,126 | 1,244 | 2,173 |
Write-offs, Exchange Rate Fluctuations and Other Items | (1,080) | (1,110) | (2,694) |
Balance at end of period | 1,289 | 1,243 | 1,109 |
Valuation Allowance Of Deferred Tax Assets [Member] | |||
Balance at beginning of period | 8,962 | 11,986 | 11,125 |
Net additions charged to income (expense) | (138) | (1,922) | 874 |
Write-offs, Exchange Rate Fluctuations and Other Items | (238) | (1,102) | (13) |
Balance at end of period | $ 8,586 | $ 8,962 | $ 11,986 |