Overview

6 Months Ended

Jun. 30, 2020

Basis of Presentation

Cooper-Standard Holdings Inc. (together with its consolidated subsidiaries, the “Company” or “Cooper Standard”), through its wholly-owned subsidiary, Cooper-Standard Automotive Inc. (“CSA U.S.”), is a leading manufacturer of sealing, fuel and brake delivery, and fluid transfer systems. The Company’s products are primarily for use in passenger vehicles and light trucks that are manufactured by global automotive original equipment manufacturers (“OEMs”) and replacement markets. The Company conducts substantially all of its activities through its subsidiaries.

During the first quarter of 2019 and in prior periods, the Company also operated an anti-vibration systems (“AVS”) product line. On April 1, 2019, the Company completed the divestiture of its AVS product line.

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”), as filed with the SEC. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These financial statements include all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations of the Company. The operating results for the interim period ended June 30, 2020 are not necessarily indicative of results for the full year. In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Immaterial Correction of Errors

During the year ended December 31, 2019, the Company identified errors primarily related to periods prior to fiscal year 2019. The Company concluded these errors were not material individually or in the aggregate to any of the previously reported periods and, therefore, amendments of previously filed reports were not required. Corrections were made to the applicable prior periods reflected in the financial information herein.

The following table presents the impact of these corrections on the Company’s condensed consolidated statements of operations:


	Three Months Ended June 30, 2019										Six Months Ended June 30, 2019
	As previously reported		Adjustment		As corrected		As previously reported		Adjustment		As corrected
Sales	$	764,806	$	(108)	$	764,698	$	1,644,844	$	(2,151)	$	1,642,693



Income tax expense	44,239		(17)		44,222		46,570		(314)		46,256

Net loss attributable to noncontrolling interests	545		—		545		702		(209)		493
Net income attributable to Cooper-Standard Holdings Inc.	145,296		(91)		145,205		141,836		(2,046)		139,790

Earnings per share:
Basic	$	8.39	$	—	$	8.39	$	8.14	$	(0.12)	$	8.02
Diluted	$	8.36	$	—	$	8.36	$	8.11	$	(0.12)	$	7.99

The following table presents the impact of these corrections on the Company’s condensed consolidated statements of comprehensive income (loss):


	Three Months Ended June 30, 2019										Six Months Ended June 30, 2019
	As previously reported		Adjustment		As corrected		As previously reported		Adjustment		As corrected


Currency translation adjustment	$	(6,113)	$	285	$	(5,828)	$	(3,894)	$	36	$	(3,858)


Comprehensive loss attributable to noncontrolling interests	1,199		(27)		1,172		952		(203)		749
Comprehensive income attributable to Cooper-Standard Holdings Inc.	137,718		167		137,885		138,713		(2,004)		136,709

The impact of these corrections on the balance as of June 30, 2019 in the Company’s condensed consolidated statements of changes in equity includes a decrease to total equity of $9,828, which consists of a decrease to retained earnings of $8,856, a decrease to accumulated other comprehensive loss of $193, and a decrease to noncontrolling interests of $1,165.For the six months ended June 30, 2019, the impact of these corrections on the condensed consolidated statements of cash flows included a $1,837 decrease in net income, a $314 decrease in deferred income taxes, and a $2,151 increase in changes in operating assets and liabilities, resulting in no impact to net cash used in operating activities.