Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 15, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-5690 | ||
Entity Registrant Name | GENUINE PARTS CO | ||
Entity Incorporation, State or Country Code | GA | ||
Entity Tax Identification Number | 58-0254510 | ||
Entity Address, Address Line One | 2999 WILDWOOD PARKWAY, | ||
Entity Address, City or Town | ATLANTA, | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30339 | ||
City Area Code | 678 | ||
Local Phone Number | 934-5000 | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | ||
Trading Symbol | GPC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 12,200 | ||
Entity Common Stock, Shares Outstanding | 144,404,012 | ||
Documents Incorporated by Reference | Specifically identified portions of the Company’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 29, 2021 are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000040987 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 990,166 | $ 276,992 |
Trade accounts receivable, net | 1,556,966 | 2,440,252 |
Merchandise inventories, net | 3,506,271 | 3,443,876 |
Prepaid expenses and other current assets | 1,060,360 | 1,063,245 |
Current assets of discontinued operations | 0 | 714,251 |
Total current assets | 7,113,763 | 7,938,616 |
Goodwill | 1,917,477 | 2,293,519 |
Other intangible assets, net | 1,498,257 | 1,492,097 |
Deferred tax assets | 65,658 | 45,921 |
Operating lease assets | 1,038,877 | 995,667 |
Other assets | 644,140 | 457,350 |
Property, plant and equipment, net | 1,162,043 | 1,173,688 |
Noncurrent assets of discontinued operations | 0 | 248,771 |
Total assets | 13,440,215 | 14,645,629 |
Current liabilities: | ||
Trade accounts payable | 4,128,084 | 3,948,000 |
Current portion of debt | 160,531 | 624,043 |
Other current liabilities | 1,491,426 | 1,493,109 |
Dividends payable | 114,043 | 110,851 |
Current liabilities of discontinued operations | 0 | 218,117 |
Total current liabilities | 5,894,084 | 6,394,120 |
Long-term debt | 2,516,614 | 2,802,056 |
Operating lease liabilities | 789,294 | 756,519 |
Pension and other post-retirement benefit liabilities | 265,687 | 249,832 |
Deferred tax liabilities | 212,910 | 233,044 |
Other long-term liabilities | 543,623 | 445,652 |
Noncurrent liabilities of discontinued operations | 0 | 68,906 |
Equity: | ||
Preferred stock, par value $1 per share — authorized 10,000,000 shares; none issued | 0 | 0 |
Common stock, par value $1 per share - authorized 450,000,000 shares; issued and outstanding - 2020 - 144,354,335 shares and 2019 - 145,378,158 shares | 144,354 | 145,378 |
Additional paid-in capital | 117,165 | 98,777 |
Accumulated other comprehensive loss | (1,036,502) | (1,141,308) |
Retained earnings | 3,979,779 | 4,571,860 |
Total parent equity | 3,204,796 | 3,674,707 |
Noncontrolling interests in subsidiaries | 13,207 | 20,793 |
Total equity | 3,218,003 | 3,695,500 |
Total liabilities and equity | $ 13,440,215 | $ 14,645,629 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 144,354,335 | 145,378,158 |
Common stock, shares outstanding (in shares) | 144,354,335 | 145,378,158 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 16,537,433 | $ 17,522,234 | $ 16,831,605 |
Cost of goods sold | 10,882,592 | 11,662,551 | 11,311,850 |
Gross profit | 5,654,841 | 5,859,683 | 5,519,755 |
Operating expenses: | |||
Selling, administrative and other expenses | 4,386,739 | 4,577,610 | 4,241,203 |
Depreciation and amortization | 272,842 | 257,263 | 227,584 |
Provision for doubtful accounts | 23,577 | 13,876 | 15,929 |
Restructuring costs | 50,019 | 100,023 | 0 |
Goodwill impairment charge | 506,721 | 0 | 0 |
Total operating expenses | 5,239,898 | 4,948,772 | 4,484,716 |
Non-operating expenses (income): | |||
Interest expense | 93,713 | 95,583 | 101,796 |
Other | (58,138) | (86,712) | (61,395) |
Special termination costs | 0 | 42,757 | 0 |
Total non-operating expenses (income) | 35,575 | 51,628 | 40,401 |
Income before income taxes | 379,368 | 859,283 | 994,638 |
Income taxes | 215,973 | 212,808 | 245,104 |
Net income from continuing operations | 163,395 | 646,475 | 749,534 |
Net (loss) income from discontinued operations | (192,497) | (25,390) | 60,940 |
Net (loss) income | $ (29,102) | $ 621,085 | $ 810,474 |
Basic (loss) earnings per share: | |||
Continuing operations (in dollars per share) | $ 1.13 | $ 4.44 | $ 5.11 |
Discontinued operations (in dollars per share) | (1.33) | (0.18) | 0.42 |
Basic net income per common share (in dollars per share) | (0.20) | 4.26 | 5.53 |
Diluted (loss) earnings per share: | |||
Continuing operations (in dollars per share) | 1.13 | 4.42 | 5.09 |
Discontinued operations (in dollars per share) | (1.33) | (0.18) | 0.41 |
Diluted net income per common share (in dollars per share) | $ (0.20) | $ 4.24 | $ 5.50 |
Weighted average common shares outstanding (in shares) | 144,474 | 145,736 | 146,657 |
Dilutive effect of stock options and nonvested restricted stock awards (in shares) | 641 | 681 | 584 |
Weighted average common shares outstanding — assuming dilution (in shares) | 145,115 | 146,417 | 147,241 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (29,102) | $ 621,085 | $ 810,474 |
Foreign currency translation adjustments | 102,595 | 67,902 | (200,490) |
Cash flow hedge adjustments, net of income taxes in 2020 — $3,453, 2019 — $5,932, and 2018 — $1,713 | (9,336) | (16,039) | (4,631) |
Pension and postretirement benefit adjustments, net of income taxes of 2020 — $4,639, 2019 — $5,036, and 2018 — $21,297 | 11,547 | 44,433 | (57,365) |
Other comprehensive income (loss), net of tax | 104,806 | 96,296 | (262,486) |
Comprehensive income | $ 75,704 | $ 717,381 | $ 547,988 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net investment hedge, tax | $ 3,453 | $ 5,932 | $ 1,713 |
Pension and postretirement benefit adjustments, tax | $ 4,639 | $ 5,036 | $ 21,297 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Total Parent Equity | Total Parent EquityCumulative Effect, Period of Adoption, Adjustment | Non- controlling Interests in Subsidiaries |
Beginning balance (in shares) at Dec. 31, 2017 | 146,652,615 | ||||||||||
Beginning balance at Dec. 31, 2017 | $ 3,464,156 | $ (5,843) | $ 146,653 | $ 68,126 | $ (852,592) | $ 4,049,965 | $ (5,843) | $ 3,412,152 | $ (5,843) | $ 52,004 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 810,474 | 810,474 | 810,474 | ||||||||
Other comprehensive (loss) income, net of tax | (262,486) | (262,486) | (262,486) | ||||||||
Cash dividends declared | (422,352) | (422,352) | (422,352) | ||||||||
Share-based awards exercised, including tax benefit (in shares) | 235,058 | ||||||||||
Share-based awards exercised, including tax benefit | (10,227) | $ 235 | (10,462) | (10,227) | |||||||
Share-based compensation | 20,716 | 20,716 | 20,716 | ||||||||
Purchase of stock (in shares) | (951,060) | ||||||||||
Purchase of stock | $ (91,983) | $ (951) | (91,032) | (91,983) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||||||||||
Noncontrolling interest activities | $ (30,464) | (30,464) | |||||||||
Ending balance (in shares) at Dec. 31, 2018 | 145,936,613 | ||||||||||
Ending balance at Dec. 31, 2018 | 3,471,991 | $ 145,937 | 78,380 | (1,115,078) | 4,341,212 | 3,450,451 | 21,540 | ||||
Ending balance (Accounting Standards Update 2018-02) at Dec. 31, 2018 | $ (122,526) | 122,526 | |||||||||
Ending balance (Accounting Standards Update 2016-02) at Dec. 31, 2018 | 4,797 | 4,797 | 4,797 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 621,085 | 621,085 | 621,085 | ||||||||
Other comprehensive (loss) income, net of tax | 96,296 | 96,296 | 96,296 | ||||||||
Cash dividends declared | (444,372) | (444,372) | (444,372) | ||||||||
Share-based awards exercised, including tax benefit (in shares) | 240,568 | ||||||||||
Share-based awards exercised, including tax benefit | (11,413) | $ 240 | (11,653) | (11,413) | |||||||
Share-based compensation | 32,050 | 32,050 | 32,050 | ||||||||
Purchase of stock (in shares) | (799,023) | ||||||||||
Purchase of stock | (74,187) | $ (799) | (73,388) | (74,187) | |||||||
Noncontrolling interest activities | (747) | (747) | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | 145,378,158 | ||||||||||
Ending balance at Dec. 31, 2019 | 3,695,500 | $ (11,432) | $ 145,378 | 98,777 | (1,141,308) | 4,571,860 | $ (11,432) | 3,674,707 | $ (11,432) | 20,793 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | (29,102) | (29,102) | (29,102) | ||||||||
Other comprehensive (loss) income, net of tax | 104,806 | 104,806 | 104,806 | ||||||||
Cash dividends declared | (456,469) | (456,469) | (456,469) | ||||||||
Share-based awards exercised, including tax benefit (in shares) | 112,621 | ||||||||||
Share-based awards exercised, including tax benefit | (4,120) | $ 113 | (4,233) | (4,120) | |||||||
Share-based compensation | 22,621 | 22,621 | 22,621 | ||||||||
Purchase of stock (in shares) | (1,136,444) | ||||||||||
Purchase of stock | $ (96,215) | $ (1,137) | 0 | (95,078) | (96,215) | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||
Noncontrolling interest activities | $ (7,586) | (7,586) | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 144,354,335 | ||||||||||
Ending balance at Dec. 31, 2020 | $ 3,218,003 | $ 144,354 | $ 117,165 | $ (1,036,502) | $ 3,979,779 | $ 3,204,796 | $ 13,207 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 3.16 | $ 3.05 | $ 2.88 |
Tax benefit from share-based awards exercised | $ 677 | $ 4,920 | $ 4,232 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net (loss) income | $ (29,102) | $ 621,085 | $ 810,474 |
Net (loss) income from discontinued operations | (192,497) | (25,390) | 60,940 |
Net income from continuing operations | 163,395 | 646,475 | 749,534 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 272,842 | 257,263 | 227,584 |
Excess tax benefit from share-based compensation | (677) | (4,920) | (4,232) |
Deferred income taxes | (27,722) | (55,939) | 1,593 |
Share-based compensation | 22,621 | 28,703 | 17,737 |
Realized currency and other divestiture losses | 11,356 | 34,701 | 0 |
Gain on equity investment | 0 | (38,663) | 0 |
Goodwill impairment charge | 506,721 | 0 | 0 |
Other operating activities | 12,569 | (17,589) | 1,648 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | 957,514 | (134,163) | (62,103) |
Merchandise inventories, net | 58,462 | (54,765) | (74,148) |
Trade accounts payable | 89,350 | 82,739 | 357,097 |
Other short-term assets and liabilities | (109,812) | 11,740 | (100,616) |
Other long-term assets and liabilities | 57,903 | 76,937 | (57,372) |
Net cash provided by operating activities from continuing operations | 2,014,522 | 832,519 | 1,056,722 |
Investing activities: | |||
Purchases of property, plant and equipment | (153,502) | (277,873) | (226,506) |
Proceeds from sale of property, plant and equipment | 18,064 | 24,387 | 14,391 |
Proceeds from divestitures of businesses | 387,379 | 434,609 | 0 |
Acquisitions of businesses and other investing activities | (69,173) | (724,718) | (257,823) |
Net cash provided by (used in) investing activities from continuing operations | 182,768 | (543,595) | (469,938) |
Financing activities: | |||
Proceeds from debt | 2,638,014 | 5,037,168 | 5,064,291 |
Payments on debt | (3,533,017) | (4,897,769) | (5,124,265) |
Share-based awards exercised | (4,120) | (11,413) | (10,227) |
Dividends paid | (453,277) | (438,890) | (415,983) |
Purchase of stock | (96,215) | (74,187) | (91,983) |
Other financing activities | (65,150) | (871) | (30,663) |
Net cash used in financing activities from continuing operations | (1,513,765) | (385,962) | (608,830) |
Cash flows from discontinued operations: | |||
Net cash flows provided by operating activities from discontinued operations | 5,039 | 59,491 | 88,442 |
Net cash used in investing activities from discontinued operations | (11,131) | (19,611) | (26,186) |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 0 |
Net cash (used in) provided by discontinued operations | (6,092) | 39,880 | 62,256 |
Effect of exchange rate changes on cash and cash equivalents | 35,741 | 603 | (21,562) |
Net increase (decrease) in cash and cash equivalents | 713,174 | (56,555) | 18,648 |
Cash and cash equivalents at beginning of year | 276,992 | 333,547 | 314,899 |
Cash and cash equivalents at end of year | 990,166 | 276,992 | 333,547 |
Supplemental disclosures of cash flow information | |||
Income taxes | 223,019 | 303,736 | 236,536 |
Interest | $ 91,344 | $ 95,281 | $ 102,131 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Genuine Parts Company (the "Company") is a distributor of automotive replacement parts and industrial parts and materials. The Company serves a diverse customer base through a network of more than 10,000 locations throughout North America, Australasia, and Europe and, therefore, has limited exposure from credit losses to any particular customer, region, or industry segment. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company's operations are vulnerable to the reduced economic activity caused by the COVID-19 outbreak, which was declared a pandemic in March 2020. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous factors and future developments that the Company cannot predict, including the severity of the virus; the occurrence of additional waves or spikes in infection rates; the duration of the outbreak; governmental, business or other actions taken in response to the pandemic and the efficacy of these actions, including partial or complete shut downs, travel restrictions, and stay-at-home orders among other actions; the effectiveness and distribution of COVID-19 vaccines; and impacts on the Company's supply chain, its ability to keep operating locations open, and on customer demand. The Company benefited from various forms of government economic assistance including certain temporary subsidies that were received in 2020, which have been classified as a reduction of selling, administrative and other expenses. The Company has evaluated subsequent events through the date the financial statements were issued. On June 30, 2020, the Company completed the divestiture of its Business Products Group. Refer to the acquisitions, divestitures and discontinued operations footnote for more information. The Company's results of operations for the Business Products Group are reported as discontinued operations and all information related to the discontinued operations has been excluded from the notes to the consolidated financial statements for all periods presented. Net (loss) income from discontinued operations for each period includes all costs that are directly attributable to these businesses and excludes certain corporate overhead costs that were previously allocated. Principles of Consolidation The consolidated financial statements include all of the accounts of the Company. The net income attributable to noncontrolling interests is not material to the Company’s consolidated net income. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and the differences could be material. If the pandemic persists or worsens, the estimates and assumptions management made as of December 31, 2020 could change, and it is reasonably possible such changes could be significant. Revenue Recognition The Company primarily recognizes revenue at the point the customer obtains control of the products or services and at an amount that reflects the consideration expected to be received for those products or services. Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price and recognizes revenue upon delivery or as services are rendered. Revenue is recognized net of allowances for returns, variable consideration and any taxes collected from customers that will be remitted to governmental authorities. Revenue recognized over time is not significant. Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant. Liabilities for customer incentives, discounts, or rebates are included in other current liabilities in the consolidated balance sheets. Product Distribution Revenues The Company generates revenue primarily by distributing products through wholesale and retail channels. For wholesale customers, revenue is recognized when title and control of the goods has passed to the customer. Retail revenue is recognized at the point of sale when the goods are transferred to customers and consideration is received. Shipping and handling activities are performed prior to the customer obtaining control of the products. Costs associated with shipping and handling are considered costs to fulfill a contract and are included in selling, administrative and other expenses in the period they are incurred. Other Revenues The Company offers software support, product cataloging, marketing, training and other membership program and support services to certain customers. This revenue is recognized as services are performed. Revenue from these services is recognized over a short duration and the impact to our consolidated financial statements is not significant. Variable Consideration The Company’s products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits or rebates. The Company estimates variable consideration based on historical experience to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to a customer. The Company recognizes estimated variable consideration as an adjustment to the transaction price when control of the related product or service is transferred. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. Foreign Currency Translation The consolidated balance sheets and statements of income of the Company’s foreign subsidiaries have been translated into U.S. dollars at the current and average exchange rates, respectively. The foreign currency translation adjustment is included as a component of accumulated other comprehensive loss. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Trade Accounts Receivable and the Allowance for Doubtful Accounts The Company evaluates the collectability of trade accounts receivable based on a combination of factors. The Company estimates an allowance for doubtful accounts as a percentage of net sales based on various factors, including historical experience, current economic conditions and future expected credit losses and collectability trends. The Company will periodically adjust this estimate when the Company becomes aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. For the years ended December 31, 2020, 2019, and 2018, the Company recorded provisions for doubtful accounts of approximately $23,577, $13,876, and $15,929, respectively. At December 31, 2020 and 2019, the allowance for doubtful accounts was approximately $36,622 and $35,047, respectively. Merchandise Inventories, Including Consideration Received From Vendors Merchandise inventories are valued at the lower of cost or net realizable value. Cost is determined by the last-in, first-out ("LIFO") method for a majority of U.S. automotive and industrial parts, and generally by the first-in, first-out ("FIFO") method for non-U.S. and certain other inventories. If the FIFO method had been used for all inventories, cost would have been approximately $524,400 and $531,800 higher than reported at December 31, 2020 and 2019, respectively. During 2020 and 2019, reductions in industrial parts inventories resulted in liquidations of LIFO inventory layers, which reduced cost of goods sold by approximately $15,500 and $10,400, respectively. The Company identifies slow moving or obsolete inventories and estimates appropriate provisions related thereto. Historically, these losses have not been significant as the vast majority of the Company’s inventories are not highly susceptible to obsolescence and are eligible for return under various vendor return programs. While the Company has no reason to believe its inventory return privileges will be discontinued in the future, its risk of loss associated with obsolete or slow moving inventories would increase if such were to occur. The Company enters into agreements at the beginning of each year with many of its vendors that provide for inventory purchase incentives. Generally, the Company earns inventory purchase incentives upon achieving specified volume purchasing levels or other criteria. The Company accrues for the receipt of these incentives as part of its inventory cost based on cumulative purchases of inventory to date and projected inventory purchases through the end of the year. While management believes the Company will continue to receive consideration from vendors in 2021 and beyond, there can be no assurance that vendors will continue to provide comparable amounts of incentives in the future. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of amounts due from vendors, prepaid expenses, and income and other taxes receivable. Goodwill The Company reviews its goodwill annually for impairment in the fourth quarter, or sooner if circumstances indicate that the carrying amount may exceed fair value. The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment (a component). A component is a reporting unit if the component constitutes a business for which discrete financial information and operating results are available and management regularly reviews that information. However, the Company may aggregate two or more components of an operating segment into a single reporting unit if the components have similar economic characteristics. To review goodwill at a reporting unit for impairment, the Company generally elects to first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Qualitative factors include adverse macroeconomic, industry or market conditions, cost factors, or financial performance. If the Company elects not to perform a qualitative assessment or concludes from its assessment of qualitative factors that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company must perform a quantitative test to evaluate goodwill impairment. To perform a quantitative test, the Company calculates the fair value of the reporting unit and compares that amount to the reporting unit's carrying value. The Company typically calculates the fair value by using a combination of a market approach and an income approach that is based on a discounted cash flow model. The assumptions used in the market approach generally include benchmark company market multiples and the assumptions used in the income approach generally include the projected cash flows of the reporting unit, which are based on projected revenue growth rates and operating margins, and the estimated weighted average cost of capital, working capital and terminal value. The Company uses inputs and assumptions it believes are consistent with those a hypothetical marketplace participant would use. The Company recognizes goodwill impairment (if any) as the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Refer to the goodwill and other intangible assets footnote for further information on the results of the Company's annual goodwill impairment testing. Long-Lived Assets Other Than Goodwill The Company assesses its long-lived assets other than goodwill for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. Impairment losses, if any, are measured based upon the difference between the carrying amount and the fair value of the assets. For the years ended December 31, 2020 and 2019, the Company recognized long-lived asset impairments of $6,243 and $5,408, respectively, related to certain assets expected to be abandoned in connection with the 2019 Cost Savings Plan (refer to the restructuring footnote for more information). Other Assets Other assets consist primarily of cash surrender value of life insurance policies, debt securities, equity method and other investments, guarantee fees receivable, and deferred compensation benefits. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are primarily determined on a straight-line basis over the following estimated useful lives of each asset: buildings, 10 to 40 years; machinery and equipment, 5 to 15 years; and the shorter of lease term or useful life for leasehold improvements. Other Current Liabilities Other current liabilities consist primarily of current lease obligations, reserves for sales returns expected within the next year, accrued compensation, accrued income and other taxes, and other reserves for expenses incurred. Other Long-term Liabilities Other long-term liabilities consist primarily of reserves for sales returns expected after the next year, guarantee obligations, accrued taxes and other non-current obligations. Self-Insurance The Company is self-insured for the majority its group health insurance costs. A reserve for claims incurred but not reported is developed by analyzing historical claims data provided by the Company’s claims administrators. These reserves are included in accrued expenses in the accompanying consolidated balance sheets as the expenses are expected to be paid within one year. Long-term insurance liabilities consist primarily of reserves for the Company's workers’ compensation program. In addition, the Company carries various large risk deductible workers’ compensation policies for the majority of workers’ compensation liabilities. The Company records the workers’ compensation reserves based on an analysis performed by an independent actuary. The analysis calculates development factors, which are applied to total reserves as provided by the various insurance companies who underwrite the program. While the Company believes that the assumptions used to calculate these liabilities are appropriate, significant differences in actual experience or significant changes in these assumptions may materially affect workers’ compensation costs. Business Combinations When the Company acquires businesses, it applies the acquisition method of accounting and recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values on the acquisition date, which requires significant estimates and assumptions. Goodwill is measured as the excess of the fair value of the consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method requires the Company to record provisional amounts for any items for which the accounting is not complete at the end of a reporting period. The Company must complete the accounting during the measurement period, which cannot exceed one year. Adjustments made during the measurement period could have a material impact on the Company's financial condition and results of operations. The Company typically measures customer relationship and other intangible assets using an income approach. Significant estimates and assumptions used in this approach include discount rates and certain assumptions that form the basis of the forecasted cash flows expected to be generated from the asset (e.g., future revenue growth rates, operating margins and attrition rates). If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could record impairment charges. In addition, the Company has estimated the economic lives of certain acquired tangible and intangible assets and these lives are used to calculate depreciation and amortization expense. If the Company's estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. Legal and Product Liabilities The Company accrues for potential losses related to legal disputes, litigation, product liabilities, and regulatory matters when it is probable (the future event or events are likely to occur) that the Company will incur a loss and the amount of the loss can be reasonably estimated. The amount of the product liability reflects the Company’s reasonable estimate of losses based upon currently known facts. To calculate the liability, the Company estimates potential losses relating to pending claims and also estimates the likelihood of additional, similar claims being filed against the Company in the future. To estimate potential losses on claims that could be filed in the future, the Company considers claims pending against the Company, claim filing rates, the number of codefendants and the extent to which they share in settlements, and the amount of loss by claim type. The estimated losses for pending and potential future claims are calculated on a discounted basis using risk-free interest rates derived from market data about monetary assets with maturities comparable to those of the projected product liabilities. The Company uses an actuarial specialist to assist with measuring its product liabilities. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. Additionally, ASC 820, Fair Value Measurements , defines levels within a hierarchy based upon observable and non-observable inputs. • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions At December 31, 2020 and 2019, the fair value of the Company's senior unsecured notes was approximately $2,680,545 and $2,013,542, respectively, which are designated as Level 2 in the fair value hierarchy. Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities. Derivative instruments are recognized in the consolidated balance sheets at fair value and are designated as Level 2 in the fair value hierarchy. They are valued using inputs other than quoted prices, such as foreign exchange rates and yield curves. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analyses of goodwill, other intangible assets, and long-lived assets. These involve fair value measurements on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, trade accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective fair values based on the short-term nature of these instruments. Derivatives and Hedging The Company is exposed to various risks arising from business operations and market conditions, including fluctuations in interest rates and certain foreign currencies. When deemed appropriate, the Company uses derivative and non-derivative instruments as risk management tools to mitigate the potential impact of interest rate and foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in the Company’s earnings, cash flows and net investments in certain foreign subsidiaries associated with changes in these rates. Derivative financial instruments are not used for trading or other speculative purposes. The Company has not historically incurred, and does not expect to incur in the future, any losses as a result of counterparty default related to derivative instruments. The Company formally documents relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking cash flow hedges to specific forecasted transactions or variability of cash flow to be paid. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative and non-derivative instruments that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. When a designated instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, hedge accounting is discontinued prospectively. Shipping and Handling Costs Shipping and handling costs are classified as selling, administrative and other expenses in the accompanying consolidated statements of income and totaled approximately $301,900, $303,900, and $278,500, for the years ended December 31, 2020, 2019, and 2018, respectively. Advertising Costs Advertising costs are expensed as incurred and totaled $193,900, $201,600, and $203,500 in the years ended December 31, 2020, 2019, and 2018, respectively. Accounting for Legal Costs The Company’s legal costs expected to be incurred in connection with loss contingencies are expensed as such costs are incurred. Share-Based Compensation The Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), performance awards, dividend equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in shares of common stock, equal to the excess, if any, of the fair market value of the Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. In addition, valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. In making this determination, the Company considers all available positive and negative evidence including projected future taxable income, future reversals of existing temporary differences, recent financial operations and tax planning strategies. The Company recognizes a tax benefit from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Net Income from Continuing Operations per Common Share Basic net income from continuing operations per common share is computed by dividing net income from continuing operations by the weighted average number of common shares outstanding during the year. The computation of diluted net income from continuing operations per common share includes the dilutive effect of stock options, stock appreciation rights and nonvested restricted stock awards options. Options to purchase approximately 1,602, 210, and 1,490 shares of common stock ranging from $72 - $105 per share were outstanding at December 31, 2020, 2019, and 2018, respectively. These options were excluded from the computation of diluted net income from continuing operations per common share because the options’ exercise prices were greater than the average market prices of common stock in each respective year. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standard Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are expected to have a minimal impact on the Company's consolidated financial statements. Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . Among other things, the ASU and its amendments replace the incurred loss impairment model for receivables and loan guarantees with a current expected credit loss model. The new model measures impairment based on expected credit losses over the remaining contractual life of an asset, considering available information about the collectability of cash flows, past events, current conditions, and reasonable and supportable forecasts. Additional quantitative and qualitative disclosures are required. The Company adopted ASU 2016-13 and its amendments as of January 1, 2020, which included recognizing a cumulative-effect adjustment to reduce opening retained earnings by $11,432, net of taxes. Compensation - Retirement Benefits (Topic 715) In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans . The updated accounting guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing, adding and clarifying certain disclosures. The Company adopted this new accounting standard on January 1, 2020 on a retrospective basis. The adoption of this ASU did not have an impact on the Company’s financial position, results of operations, or cash flows. Income Statement - Reporting Comprehensive Income (Topic 220) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits a company to make a one-time election to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. The ASU also requires companies to disclose their accounting policies for releasing income tax effects from accumulated other comprehensive income. ASU 2018-02 was effective for periods beginning after December 15, 2018, with an election to adopt early. The Company adopted ASU 2018-02 as of January 1, 2019 and recognized an adjustment to increase retained earnings and to adjust accumulated other comprehensive loss by approximately $122,526. Intangibles - Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 requires applying a one-step quantitative test and recording the amount of goodwill impairment as the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The Company adopted ASU 2017-04 as of October 1, 2019 and performed its annual evaluation of goodwill in accordance with this standard. Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases , which, among other things, requires an entity to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, including operating leases. Expanded disclosures with additional qualitative and quantitative information are also required. ASU 2016-02 and its amendments were effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption was permitted. The Company adopted ASU 2016-02 and its amendments as of January 1, 2019 using the modified retrospective method and utilized the optional transition method to apply the legacy guidance in ASC 840, Leases , including its disclosure requirements, in the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical assessments of: (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company did not elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company elected a policy of not recording leases on its consolidated balance sheets when the leases have a term of 12 months or less and the Company is not reasonably certain to elect |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables present the changes in accumulated other comprehensive loss (“AOCL”) by component: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2020 $ (704,415) $ (20,671) $ (416,222) $ (1,141,308) Other comprehensive income (loss) before reclassifications (17,343) (21,509) 91,239 52,387 Amounts reclassified from accumulated other comprehensive loss 28,890 12,173 11,356 52,419 Net current period other comprehensive income (loss) 11,547 (9,336) 102,595 104,806 Ending balance, December 31, 2020 $ (692,868) $ (30,007) $ (313,627) $ (1,036,502) Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2019 $ (626,322) $ (4,632) $ (484,124) $ (1,115,078) Other comprehensive income (loss) before reclassifications 22,120 (18,419) 33,201 36,902 Amounts reclassified from accumulated other comprehensive loss (1) 22,313 2,380 34,701 59,394 Net current period other comprehensive income (loss) 44,433 (16,039) 67,902 96,296 Cumulative effect from adoption of ASU 2018-02 (122,526) — — (122,526) Ending balance, December 31, 2019 $ (704,415) $ (20,671) $ (416,222) $ (1,141,308) (1) Amount includes realized currency losses of $34,701 that were reclassified out of foreign currency translation into earnings in connection with the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS. Refer to the acquisitions, divestitures and discontinued operations footnote for further details. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill during the years ended December 31, 2020 and 2019 by reportable segment, as well as other identifiable intangible assets, are summarized as follows: Goodwill Automotive Industrial Total Other Intangible Assets, Net Balance as of January 1, 2019 $ 1,721,823 $ 324,997 $ 2,046,820 $ 1,327,898 Additions 194,561 185,679 380,240 340,799 Divestitures (294) (115,437) (115,731) (89,030) Amortization — — — (92,206) Impairments — — — (2,194) Foreign currency translation (18,595) 785 (17,810) 6,830 Balance as of December 31, 2019 1,897,495 396,024 2,293,519 1,492,097 Additions 15,061 5,261 20,322 21,890 Amortization — — — (94,962) Impairments (506,721) — (506,721) — Foreign currency translation 99,688 10,669 110,357 79,232 Balance as of December 31, 2020 $ 1,505,523 $ 411,954 $ 1,917,477 $ 1,498,257 Due to several factors that coalesced in the second quarter of 2020 the Company performed an interim impairment test as of May 31, 2020 for its European reporting unit and recorded a goodwill impairment charge of $506,721. The factors primarily resulted from the ongoing market volatility and uncertainty caused by the COVID-19 pandemic, which extended into the second quarter and impacted several critical impairment testing assumptions including weighted average cost of capital and market multiples, and near-term revenue and operating margin projections for the reporting unit. During the second quarter, the Company also assessed the finite-lived, identifiable tangible and intangible assets at the European reporting unit for impairment under the undiscounted cash flows approach and concluded there was no impairment. The European reporting unit’s fair value was calculated using a combination of both income and market approaches and involved significant unobservable inputs (Level 3 inputs). The assumptions used in the income approach include projected revenue growth rates, operating margins, the estimated weighted average cost of capital and terminal value. The weighted-average cost of capital used in the income approach was adjusted to reflect the specific risks and uncertainties associated with the COVID-19 pandemic in developing the cash flow projections. The assumptions used in the market approach include benchmark company market multiples. The Company used inputs and assumptions it believed are consistent with those a hypothetical marketplace participant would use. The Company completed its annual qualitative goodwill assessment as of October 1, 2020. Based on the Company's assessment, which included reviewing historical revenue and operating profit growth trends and evaluating the inputs to a weighted average cost of capital, the Company has determined that it is not more likely than not that the goodwill is impaired for all reporting units. Should actual results differ from certain key assumptions used in the interim or annual impairment tests, including revenue and operating margin growth rates, which are both impacted by economic conditions, or should other key impairment testing assumptions change in subsequent periods, there can be no assurance that goodwill at one or more reporting units may not be impaired. The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2020 and 2019 are as follows: 2020 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 1,578,153 $ (388,120) $ 1,190,033 $ 1,481,470 $ (287,851) $ 1,193,619 Trademarks 358,253 (50,227) 308,026 334,643 (36,501) 298,142 Non-competition agreements 5,719 (5,521) 198 5,268 (4,932) 336 $ 1,942,125 $ (443,868) $ 1,498,257 $ 1,821,381 $ (329,284) $ 1,492,097 Amortization expense for other intangible assets totaled $94,962, $92,206, and $83,489 for the years ended December 31, 2020, 2019, and 2018, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows: 2021 $ 100,630 2022 100,623 2023 99,984 2024 99,236 2025 98,915 $ 499,388 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | Property, Plant and Equipment Property, plant and equipment as of December 31, 2020 and December 31, 2019, consisted of the following: 2020 2019 Land $ 131,117 $ 128,353 Buildings and leasehold improvements 899,723 779,124 Machinery, equipment and other 1,529,298 1,466,899 Property, plant and equipment, at cost 2,560,138 2,374,376 Less: accumulated depreciation 1,398,095 1,200,688 Property, plant and equipment, net $ 1,162,043 $ 1,173,688 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The principal amounts of the Company’s borrowings subject to variable rates (after consideration of hedging arrangements) totaled approximately $114,002 and $554,902 at December 31, 2020 and 2019, respectively. The weighted average interest rate on the Company’s outstanding borrowings was approximately 2.65% and 2.18% at December 31, 2020 and 2019, respectively. Certain borrowings require the Company to comply with a financial covenant with respect to a maximum debt to Adjusted EBITDA ratio. At December 31, 2020, the Company was in compliance with all such covenants. Due to the workers’ compensation and insurance reserve requirements in certain states, the Company also had unused letters of credit of approximately $69,899 and $65,322 outstanding at December 31, 2020 and 2019, respectively. On October 27, 2020, the Company issued $500,000 aggregate principal amount of 1.875% Senior Unsecured Notes due 2030 at a price to the public of 99.069% of their face value with U.S. Bank National Association as trustee. Interest on the 1.875% Senior Unsecured Notes due 2030 is payable semi-annually on May 1 and November 1 of each year, which begins on May 1, 2021, and is computed on the basis of a 360-day year. On October 30, 2020, the Company entered into a new $1.5 billion Syndicated Facility Agreement (the "October 30, 2020 Syndicated Facility"). Simultaneously with the entry into the October 30, 2020 Syndicated Facility, the Company terminated and paid in full all outstanding indebtedness under the previous October 30, 2017 Syndicated Facility and repaid the existing term loan A facility. Amounts outstanding under the Company’s credit facilities, net of debt issuance costs consist of the following: December 31, 2020 December 31, 2019 Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.50% variable, due October 30, 2025 $ — $ — Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.50% variable, due October 30, 2022 (Terminated as of October 30, 2020) — 477,873 Unsecured Term Loan A, $1,100,000, LIBOR plus 1.50% variable, due October 30, 2022 — 962,500 October 27, 2020, Senior Unsecured Notes, $500,000, 1.875% fixed, due November 1, 2030 500,000 — July 29, 2016, Series G Senior Unsecured Notes, $50,000, 3.14% fixed, due July 29, 2021 50,000 50,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000, 3.74% fixed, due December 2, 2023 250,000 250,000 June 30, 2019, Series A Senior Unsecured Notes, A$155,000, 3.60% fixed, due June 30, 2024 119,133 108,422 October 30, 2017, Series J Senior Unsecured Notes, €225,000, 1.90% fixed, due October 30, 2024 276,773 252,000 June 30, 2019, Series B Senior Unsecured Notes, A$155,000, 3.93% fixed, due June 30, 2026 119,133 108,422 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.74% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, €250,000, 2.31% fixed, due October 30, 2027 307,525 280,000 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 4.20% fixed, due October 30, 2027 120,000 120,000 May 31, 2019, Series A Senior Unsecured Notes, €50,000, 2.05% fixed, due May 31, 2029 61,505 56,000 October 30, 2017, Series L Senior Unsecured Notes, €125,000, 2.52% fixed, due October 30, 2029 153,762 140,000 May 31, 2019, Series B Senior Unsecured Notes, €100,000, 2.24% fixed, due May 31, 2031 123,010 112,000 October 30, 2017, Series M Senior Unsecured Notes, €100,000, 2.82% fixed, due October 30, 2032 123,010 112,000 May 31, 2019, Series C Senior Unsecured Notes, €100,000, 2.45% fixed, due May 31, 2034 123,010 112,000 Other unsecured debt 114,002 40,340 Total unsecured debt 2,690,863 3,431,557 Unamortized debt issuance costs (9,136) (5,458) Unamortized discounts (4,582) — Total debt 2,677,145 3,426,099 Less debt due within one year 160,531 624,043 Long-term debt, excluding current portion $ 2,516,614 $ 2,802,056 Approximate maturities under the Company’s credit facilities are as follows: 2021 $ 162,429 2022 1,573 2023 250,000 2024 395,906 2025 — Thereafter 1,880,955 $ 2,690,863 |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable Sales Agreement | Accounts Receivable Sales Agreement On May 29, 2020 the Company entered into an agreement (the “A/R Sales Agreement”) to sell short-term receivables from certain customer trade accounts to an unaffiliated financial institution. The A/R Sales Agreement has a 364 day term, which the Company intends to renew each year. As part of the A/R Sales Agreement, the Company continuously sells designated pools of receivables as they are originated by it and certain U.S. subsidiaries to a separate bankruptcy-remote special purpose entity (“SPE”). The assets of the SPE would be first available to satisfy the creditor claims of the unaffiliated financial institution. The Company controls and therefore consolidates the SPE in its consolidated financial statements. At the inception of the A/R Sales Agreement, the SPE transferred ownership and control of approximately $500,000 in receivables that met certain qualifying conditions to the unaffiliated financial institution in exchange for cash. On October 29, 2020 the Company transferred ownership and control of an additional $300,000 in receivables under the A/R Sales Agreement bringing the total to $800,000. The Company accounts for transactions with the unaffiliated financial institution as sales of financial assets, with the associated receivables derecognized from the Company's consolidated balance sheet. The remaining receivables held by the special purpose subsidiary were pledged to secure the collectability of the sold receivables. The amount of receivables pledged as collateral as of December 31, 2020 is approximately $771,000. The Company continues to be involved with the receivables transferred by the SPE to the unaffiliated financial institution by providing collection services. As cash is collected on sold receivables, the SPE continuously transfers ownership and control of new qualifying receivables to the unaffiliated financial institution so that the total principal amount outstanding of receivables sold is approximately $800,000 at any point in time (which is the maximum amount allowed under the amended agreement). The future amount of receivables outstanding as sold could decrease, based on the level of activity and other factors. The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of period end: December 31, 2020 Receivables sold to the financial institution and derecognized since inception $ 3,928,024 Cash collected on sold receivables since inception $ 3,128,023 Total principal amount outstanding of receivables sold at period end $ 800,001 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The following table summarizes the location and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships: December 31, 2020 December 31, 2019 Instrument Balance sheet location Notional Balance Notional Balance Cash flow hedges: Interest rate swaps Other current liabilities $ — $ — $ 800,000 $ 24,792 Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 800,000 $ 7,668 $ 925,810 $ 39,965 Forward contracts Other current liabilities $ 360,990 $ 19,442 $ — $ — Foreign currency debt Long-term debt € 700,000 $ 861,070 € 700,000 $ 784,000 Cash Flow Hedges The Company uses interest rate swaps to mitigate variability in forecasted interest payments on a portion of the Company’s U.S. dollar-denominated unsecured variable rate debt. The interest rate swaps effectively convert a portion of the floating rate interest payment into a fixed rate interest payment. The Company designates the interest rate swaps as qualifying hedging instruments and accounts for them as cash flow hedges. On May 1, 2020, the Company dedesignated its interest rate swaps and modified them to match the terms of its modified debt agreement and as a result the $48,492 payable as of that date was deemed a financing transaction. The Company redesignated the portion of the modified interest rate swap that is not related to the financing agreement as a qualifying hedging instrument. Gains and losses from fair value adjustments on the qualifying hedging instruments are initially classified in AOCL and are reclassified to interest expense on the dates interest payments are accrued. On October 30, 2020 the Company terminated its interest rate swaps and settled the outstanding balances through cash payments totaling $41,000, which were primarily classified in financing activities on the Consolidated Statement of Cash Flows because they primarily related to the financing agreement. The remaining amount in AOCL is being amortized to interest expense on a straight-line basis over the remaining life of the hedged instrument. Hedges of Net Investments in Foreign Operations The Company has designated certain derivative instruments and a portion of its foreign currency denominated debt, a non-derivative financial instrument, as hedges of the foreign currency exchange rate exposure of the Company's Euro-denominated net investment in a European subsidiary. The Company applies the spot method to assess the hedge effectiveness of the derivative instruments and this assessment for each instrument excludes the initial value related to the difference at contract inception between the foreign exchange spot rate and the forward rate (i.e., the forward points). The initial value of this excluded component is recognized as a reduction to interest expense in a systematic and rational manner over the term of the derivative instrument. All other changes in value for the net investment hedges are included in accumulated other comprehensive loss and would only be reclassified to earnings if the European subsidiary were liquidated, or otherwise disposed. The table below presents pre-tax gains and losses related to cash flow hedges and net investment hedges: (Loss) Gain Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2020 2019 2018 2020 2019 2018 Year Ended December 31, Cash Flow Hedges: Interest rate contract $ (29,464) $ (21,972) $ (7,896) $ — $ — $ — Net Investment Hedges: Cross-currency swap — 2,936 6,006 — 2,294 6,740 Forward contracts (85,390) 20,679 — 27,146 17,892 — Foreign currency debt (77,070) 17,010 38,850 — — — Total $ (191,924) $ 18,653 $ 36,960 $ 27,146 $ 20,186 $ 6,740 Amounts reclassified from accumulated other comprehensive loss to interest expense for the periods presented were not material. |
Leased Properties
Leased Properties | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leased Properties | Leased Properties The Company primarily leases real estate for certain retail stores, distribution centers, office space and land. The Company also leases equipment (primarily vehicles). Most real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term from one The table below presents the locations of the operating lease assets and liabilities on the consolidated balance sheets: Balance Sheet Line Item December 31, 2020 December 31, 2019 Operating lease assets Operating lease assets $ 1,038,877 $ 995,667 Operating lease liabilities: Current operating lease liabilities Other current liabilities $ 270,739 $ 255,207 Noncurrent operating lease liabilities Operating lease liabilities 789,294 756,519 Total operating lease liabilities $ 1,060,033 $ 1,011,726 The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. The Company's weighted average remaining lease term and weighted average discount rate for operating leases are: December 31, 2020 December 31, 2019 Weighted average remaining lease term (in years) 5.35 5.50 Weighted average discount rate 2.47 % 2.82 % The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2020: 2021 $ 295,841 2022 252,303 2023 188,357 2024 128,278 2025 81,625 Thereafter 186,135 Total undiscounted future minimum lease payments 1,132,539 Less: Difference between undiscounted lease payments and discounted operating lease liabilities 72,506 Total operating lease liabilities $ 1,060,033 Future minimum lease payments include $60,198 related to options to extend lease terms that are reasonably certain of being exercised. The table below presents operating lease costs and supplemental cash flow information related to leases: 2020 2019 Operating lease costs $ 313,315 $ 310,028 Cash paid for amounts included in the measurement of operating lease liabilities $ 323,336 $ 311,170 Operating lease assets obtained in exchange for new operating lease liabilities $ 302,114 $ 330,103 Operating lease costs (as defined under ASU 2016-02) are included within selling, administrative and other expenses on the consolidated statements of income. Short-term lease costs, variable lease costs and sublease income were not material for the periods presented. Rental expense for operating leases (as defined prior to the adoption of ASU 2016-02) was approximately $334,000 for the year ended December 31, 2018. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based compensation costs of $22,621, $28,703, and $17,737, were recorded for the years ended December 31, 2020, 2019, and 2018, respectively. The total income tax benefits recognized in the consolidated statements of income for share-based compensation arrangements were approximately $6,108, $8,700, and $5,600 for 2020, 2019, and 2018, respectively. At December 31, 2020, total compensation cost related to nonvested awards not yet recognized was approximately $33,754. There have been no modifications to valuation methodologies or methods during the years ended December 31, 2020, 2019, or 2018. As of December 31, 2020, there were 7,601 shares of common stock available for issuance pursuant to future equity-based compensation awards. A summary of the Company’s restricted stock units activity and related information is as follows: Nonvested Share Awards (RSUs) Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Nonvested at beginning of year 677 $ 95 Granted 426 $ 72 Vested (89) $ 89 Forfeited (160) $ 92 Nonvested at end of year 854 $ 85 1.9 $ 85,775 A summary of the Company’s stock appreciation rights activity and related information is as follows: Stock Appreciation Rights (SARs) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at beginning of year 2,154 $ 88 Granted — $ — Exercised (331) $ 80 Forfeited (36) $ 94 Outstanding at end of year 1,787 $ 89 3.5 $ 20,515 Exercisable at end of year 1,787 $ 89 3.5 $ 20,515 The aggregate intrinsic value of SARs and RSUs exercised during the years ended December 31, 2020, 2019, and 2018 was $14,417, $36,200 and $32,600, respectively. The fair value of RSUs is based on the 60-day average price of the Company's stock on the date of grant for the year ended December 31, 2020. The fair value of RSUs is based on the price of the Company’s stock on the date of grant for the years ended December 31, 2019 and 2018. The fair value of SARs is estimated using a Black-Scholes option pricing model. The Company ceased issuing SARs in 2017. The total fair value of SARs and RSUs vested during the years ended December 31, 2020, 2019, and 2018 were $10,014, $26,200, and $20,800, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of the Company’s deferred tax assets and liabilities are as follows: 2020 2019 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 343,308 $ 271,358 Operating lease liabilities 289,114 281,853 Pension liability not yet deducted for tax purposes 257,526 261,909 Capital loss 10,875 18,317 Net operating loss 56,028 43,932 956,851 877,369 Deferred tax liabilities related to: Employee and retiree benefits 226,356 215,899 Inventory 90,213 92,577 Operating lease assets 282,486 274,630 Other intangible assets 365,825 343,649 Property, plant and equipment 73,333 63,518 Other 29,961 38,936 1,068,174 1,029,209 Net deferred tax liability before valuation allowance (111,323) (151,840) Valuation allowance (35,930) (35,282) Total net deferred tax liability $ (147,253) $ (187,122) The Company currently holds approximately $213,504 in net operating losses, of which approximately $156,144 will carry forward indefinitely. The remaining net operating losses of approximately $57,360 will begin to expire in 2024. The components of income before income taxes are as follows: 2020 2019 2018 United States $ 706,594 $ 613,910 $ 712,951 Foreign (327,226) 245,373 281,687 Income before income taxes $ 379,368 $ 859,283 $ 994,638 The components of income tax expense are as follows: 2020 2019 2018 Current: Federal $ 130,680 $ 162,883 $ 130,144 State 35,474 45,488 36,457 Foreign 77,541 60,376 76,910 Deferred: Federal 2,048 (21,617) 13,295 State 801 (11,273) 5,427 Foreign (30,571) (23,049) (17,129) $ 215,973 $ 212,808 $ 245,104 The reasons for the difference between total tax expense and the amount computed by applying the statutory Federal income tax rate to income before income taxes are as follows: 2020 2019 2018 Statutory rate applied to income (1) $ 79,667 $ 180,449 $ 208,874 Plus state income taxes, net of Federal tax benefit 28,658 27,030 33,088 Taxation of foreign operations, net (2) (9,072) (17,663) (7,862) U.S. tax reform - transition tax (3) — 4,492 4,875 U.S. tax reform - deferred tax remeasurement (3) — — 424 Non-deductible goodwill impairment tax effect 106,411 — — Foreign rate change - deferred tax remeasurement 9,045 6,215 (1,461) Book tax basis difference in investment — — (11,944) Valuation allowance 1,995 4,503 20,505 Other (731) 7,782 (1,395) $ 215,973 $ 212,808 $ 245,104 (1) U.S. statutory rates applied to income are as follows: 2020, 2019 and 2018 at 21%. (2) The Company's effective tax rate reflects the net benefit of having operations outside of the U.S. which are taxed at statutory rates different from the U.S. statutory rate, with some income being fully or partially exempt from income taxes due to various operating and financing activities. (3) Impact of the Tax Cuts and Jobs Act, enacted December 22, 2017. The Company accounts for Global Intangible Low Taxed income in the year the tax is incurred as a period cost. The Company, or one of its subsidiaries, files income tax returns in the U.S., various states, and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local tax examinations by tax authorities for years before 2017 or subject to non-United States income tax examinations for years ended prior to 2013. The Company is currently under audit in the U.S. and some of its foreign jurisdictions. Some audits may conclude in the next 12 months and the unrecognized tax benefits recorded in relation to the audits may differ from actual settlement amounts. It is not possible to estimate the effect, if any, of the amount of such change during the next 12 months to previously recorded uncertain tax positions in connection with the audits. The Company does not anticipate that total unrecognized tax benefits will significantly change in the next 12 months. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2020 2019 2018 Balance at beginning of year $ 21,461 $ 18,428 $ 14,697 Additions based on tax positions related to the current year 3,771 3,701 2,034 Additions for tax positions of prior years 3,480 620 4,787 Reductions for tax positions for prior years (1,382) (965) (725) Reduction for lapse in statute of limitations (3,765) — (2,338) Settlements (328) (323) (27) Balance at end of year $ 23,237 $ 21,461 $ 18,428 The amount of gross unrecognized tax benefits, including interest and penalties, as of December 31, 2020 and 2019 was approximately $25,870 and $24,347, respectively, of which approximately $21,426 and $18,286, respectively, if recognized, would affect the effective tax rate. During the years ended December 31, 2020, 2019, and 2018, the Company paid, received refunds, or accrued insignificant amounts of interest and penalties. The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2020, the Company estimates that it has an outside basis difference in certain foreign subsidiaries of approximately $520,000, which includes the cumulative undistributed earnings from the Company's foreign subsidiaries. The Company continues to be indefinitely reinvested in this outside basis difference. Determining the amount of net unrecognized deferred tax liability related to any additional outside basis difference in these entities is not practicable. This is due to the complexities associated with the calculation to determine residual taxes on the undistributed earnings, including the availability of foreign tax credits, applicability of any additional local withholding tax and other indirect tax consequences that may arise due to the distribution of these earnings. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s defined benefit pension plans cover employees in the U.S., Canada, and Europe who meet eligibility requirements. The plan covering U.S. employees is noncontributory, and the Company implemented a hard freeze for the U.S. qualified defined benefit plan as of December 31, 2013. No further benefits were provided after this date for additional credited service or earnings, and all participants became fully vested as of December 31, 2013. The Canadian plan is contributory, and benefits are based on career average compensation. The Company’s funding policy is to contribute an amount equal to the minimum required contribution under applicable pension legislation. For the plans in the U.S. and Canada, the Company may increase its contribution above the minimum, if appropriate to its tax and cash position and the plans’ funded position. The European plans are funded in accordance with local regulations. The Company also sponsors supplemental retirement plans covering employees in the U.S. and Canada. The Company uses a measurement date of December 31 for its pension and supplemental retirement plans. Several assumptions are used to determine the benefit obligations, plan assets, and net periodic income. The discount rate for the U.S. pension plan is calculated using a bond matching approach to select specific bonds that would satisfy the projected benefit payments. The bond matching approach reflects the process that would be used to settle the pension obligations. The discount rate for non U.S. plans are set by using Willis Towers Watson's RATE:Link model. For each plan, this approach reflects yields available on high quality corporate bonds that would generate the cash flow necessary to pay the plan's benefits when due. The expected return on plan assets is based on a calculated market-related value of plan assets, where gains and losses on plan assets are amortized over a five Changes in benefit obligations for the years ended December 31, 2020 and 2019 were: 2020 2019 Changes in benefit obligation Benefit obligation at beginning of year $ 2,496,600 $ 2,278,043 Service cost 12,105 9,558 Interest cost 83,732 97,441 Plan participants’ contributions 1,864 2,246 Actuarial loss 218,534 246,352 Foreign currency exchange rate changes 9,394 9,073 Gross benefits paid (144,508) (119,789) Plan amendments — 3,327 Curtailments (472) (6,569) Settlements — (67,831) Special termination costs — 42,757 Acquired plans 1,717 1,992 Benefit obligation at end of year $ 2,678,966 $ 2,496,600 The benefit obligations for the Company’s U.S. pension plans included in the above were $2,373,884 and $2,228,066 at December 31, 2020 and 2019, respectively. The total accumulated benefit obligation for the Company’s defined benefit pension plans in the U.S., Canada, and Europe was approximately $2,649,418 and $2,466,322 at December 31, 2020 and 2019, respectively. For the U.S. pension plan, there was a net actuarial liability loss of $175,200 and an asset gain of $184,200. The liability loss was comprised primarily of a $173,000 loss due to discount rate changes. For the U.S. supplemental retirement plan, there was a net actuarial liability loss of $20,300 comprised primarily of a $21,400 loss due to discount rate changes. In 2019, the Company recorded $42,757 in special termination costs related to benefits provided through the Company's defined benefit plans to employees that accepted the voluntary retirement program (“VRP”) as part of the Company's 2019 Cost Savings Plan. Refer to the restructuring footnote for more information. The assumptions used to measure the pension benefit obligations for the plans at December 31, 2020 and 2019, were: 2020 2019 Weighted average discount rate 2.72 % 3.43 % Rate of increase in future compensation levels 3.11 % 3.13 % Changes in plan assets for the years ended December 31, 2020 and 2019 were: 2020 2019 Changes in plan assets Fair value of plan assets at beginning of year $ 2,311,227 $ 2,043,379 Actual return on plan assets 347,560 427,597 Foreign currency exchange rate changes 7,451 9,826 Employer contributions 21,765 15,799 Plan participants’ contributions 1,864 2,246 Benefits paid (144,508) (119,789) Settlements — (67,831) Fair value of plan assets at end of year $ 2,545,359 $ 2,311,227 The fair values of plan assets for the Company’s U.S. pension plans included in the above were $2,258,246 and $2,051,474 at December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, the aggregate projected benefit obligation and aggregate fair value of plan assets for plans with projected benefit obligations in excess of plan assets were as follows: 2020 2019 Aggregate projected benefit obligation $ 328,517 $ 298,565 Aggregate fair value of plan assets $ 45,728 $ 39,672 For the years ended December 31, 2020 and 2019, the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets were as follows: 2020 2019 Aggregate accumulated benefit obligation $ 290,271 $ 270,230 Aggregate fair value of plan assets $ 34,164 $ 39,672 The asset allocations for the Company’s funded pension plans at December 31, 2020 and 2019, and the target allocation for 2021, by asset category were: Target Allocation Percentage of Plan Assets at December 31 2021 2020 2019 Asset Category Equity securities 68 % 70 % 70 % Debt securities 32 % 30 % 30 % 100 % 100 % 100 % The Company’s benefit plan committees in the U.S. and Canada establish investment policies and strategies and regularly monitor the performance of the funds. The plans in Europe are unfunded and, therefore, there are no plan assets. The pension plan strategy implemented by the Company’s management is to achieve long-term objectives and invest the pension assets in accordance with the applicable pension legislation in the U.S. and Canada as well as fiduciary standards. The long-term primary investment objectives for the pension plans are to provide for a reasonable amount of long-term growth of capital, without undue exposure to risk, protect the assets from erosion of purchasing power, and provide investment results that meet or exceed the pension plans’ actuarially assumed long-term rates of return. The Company’s investment strategy with respect to pension plan assets is to generate a return in excess of the passive portfolio benchmark (47% S&P 500 Index, 5% Russell Midcap Index, 7% Russell 2000 Index, 5% MSCI EAFE Index, 5% DJ Global Moderate Index, 3% MSCI Emerging Market Net, and 28% Barclays U.S. Govt/Credit). The fair values of the plan assets as of December 31, 2020 and 2019, by asset category, are shown in the tables below. Various inputs are considered when determining the value of the Company’s pension plan assets. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Level 1 represents observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 represents other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.). Level 3 represents significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments). Certain investments are measured at fair value using the net asset value ("NAV") per share as a practical expedient and have not been classified in the fair value hierarchy. The valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded on the last day of the calendar plan year. Debt securities including corporate bonds, U.S. Government securities, and asset-backed securities are valued using price evaluations reflecting the bid and/or ask sides of the market for an investment as of the last day of the calendar plan year. 2020 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 586,196 $ 204,303 $ 381,893 $ — $ — Genuine Parts Company common stock 202,711 — 202,711 — — Other stocks 989,258 — 989,258 — — Debt Securities Short-term investments 30,746 — 30,746 — — Cash and equivalents 18,631 — 18,631 — — Government bonds 257,221 — 192,288 64,933 — Corporate bonds 393,450 — — 393,450 — Asset-backed and mortgage-backed securities 10,161 — — 10,161 — Other-international 39,992 — 37,041 2,951 — Municipal bonds 14,724 — — 14,724 — Mutual funds—fixed income — — — — — Other Cash surrender value of life insurance policies 2,269 — — — 2,269 Total $ 2,545,359 $ 204,303 $ 1,852,568 $ 486,219 $ 2,269 2019 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 527,151 $ 187,500 $ 339,651 $ — $ — Genuine Parts Company common stock 214,418 — 214,418 — — Other stocks 865,078 — 865,070 — 8 Debt Securities Short-term investments 34,516 — 34,516 — — Cash and equivalents 15,833 — 15,833 — — Government bonds 259,939 — 167,394 92,545 — Corporate bonds 255,352 — — 255,352 — Asset-backed and mortgage-backed securities 9,316 — — 9,316 — Other-international 27,903 — 27,903 — — Municipal bonds 10,153 — — 10,153 — Mutual funds—fixed income 89,298 89,298 — — — Other Cash surrender value of life insurance policies 2,270 — — — 2,270 Total $ 2,311,227 $ 276,798 $ 1,664,785 $ 367,366 $ 2,278 Equity securities include Genuine Parts Company common stock in the amounts of $202,711 (8% of total plan assets) and $214,418 (9% of total plan assets) at December 31, 2020 and 2019, respectively. Dividend payments received by the plan on Company stock totaled approximately $6,378 and $6,156 in 2020 and 2019, respectively. Fees paid during the year for services rendered by parties in interest were based on customary and reasonable rates for such services. The changes in the fair value measurement of plan assets using significant unobservable inputs (Level 3) during 2020 and 2019 were not material. Based on the investment policy for the pension plans, as well as an asset study that was performed based on the Company’s asset allocations and future expectations, the Company’s expected rate of return on plan assets for measuring 2021 pension income is 6.88% for the plans. The asset study forecasted expected rates of return for the approximate duration of the Company’s benefit obligations, using capital market data and historical relationships. The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets at December 31: 2020 2019 Other long-term asset $ 149,182 $ 73,520 Other current liability (17,572) (11,692) Pension and other post-retirement liabilities (265,216) (247,201) $ (133,606) $ (185,373) Amounts recognized in accumulated other comprehensive loss consist of: 2020 2019 Net actuarial loss $ 939,290 $ 952,133 Prior service cost 8,648 9,343 $ 947,938 $ 961,476 The following table reflects the total benefits expected to be paid from the pension plans’ or the Company’s assets. Of the pension benefits expected to be paid in 2021, approximately $17,574 is expected to be paid from employer assets. Expected employer contributions below reflect amounts expected to be contributed to funded plans. Information about the expected cash flows for the pension plans follows: Employer contribution 2021 (expected) $ 5,724 Expected benefit payments: 2021 $ 136,183 2022 $ 134,054 2023 $ 137,788 2024 $ 140,987 2025 $ 144,405 2026 through 2030 $ 741,572 Net periodic benefit income included the following components: 2020 2019 2018 Service cost $ 12,105 $ 9,558 $ 10,410 Interest cost 83,732 97,441 88,247 Expected return on plan assets (154,111) (154,137) (154,006) Amortization of prior service cost (credit) 692 (67) (147) Amortization of actuarial loss 39,613 31,000 39,721 Net periodic benefit income $ (17,969) $ (16,205) $ (15,775) Service cost is recorded in selling, administrative and other expenses in the consolidated statements of income while all other components except for special termination costs are recorded within other non-operating expenses (income). The special termination costs incurred in connection with the 2019 Cost Savings Plan are presented on their own line within non-operating expenses (income). Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: 2020 2019 2018 Current year actuarial loss (gain) $ 24,613 $ (33,677) $ 117,867 Recognition of actuarial loss (39,613) (31,000) (39,721) Current year prior service cost — 3,327 — Recognition of prior service (cost) credit (692) 67 147 Recognition of curtailment gain (loss) 435 (155) — Other — (50) — Total recognized in other comprehensive (loss) income $ (15,257) $ (61,488) $ 78,293 Total recognized in net periodic benefit income and other comprehensive (loss) income $ (33,226) $ (77,693) $ 62,518 The assumptions used in measuring the net periodic benefit income for the plans follow: 2020 2019 2018 Weighted average discount rate 3.43 % 4.36 % 3.70 % Rate of increase in future compensation levels 3.13 % 3.14 % 3.11 % Expected long-term rate of return on plan assets 7.11 % 7.12 % 7.14 % The Company has one defined contribution plan in the U.S. that covers substantially all of its domestic employees. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $54,885 in 2020, $64,990 in 2019, and $62,335 in 2018. The Company has a defined contribution plan that covers full-time Canadian employees after six months of employment and part-time employees upon meeting provincial minimum standards. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $4,486 in 2020 and $4,433 in 2019. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company guarantees the borrowings of certain independently controlled automotive parts stores and businesses (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded that the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio and certain limitations on additional borrowings. At December 31, 2020, the Company was in compliance with all such covenants. At December 31, 2020, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $884,721. These loans generally mature over periods from one The Company has recognized certain assets and liabilities amounting to $81,000 and $90,000 for the guarantees related to the independents’ and affiliates’ borrowings at December 31, 2020 and 2019, respectively. These assets and liabilities are included in other assets and other long-term liabilities in the consolidated balance sheets. The liabilities relate to the Company's noncontingent obligation to stand ready to perform under the guarantee programs and they are distinct from the Company's current expected credit loss reserve. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is subject to various legal proceedings, many involving routine litigation incidental to the businesses, including approximately 1,819 pending product liability lawsuits resulting from its national distribution of automotive parts and supplies. Many of these involve claims of personal injury allegedly resulting from the use of automotive parts distributed by the Company. The amount accrued for pending and future claims as of December 31, 2020 and 2019 was $169,461 and $146,230, respectively. While litigation of any type contains an element of uncertainty, the Company believes that its insurance coverage and its defense, and ultimate resolution of pending and reasonably anticipated claims will continue to occur within the ordinary course of the Company’s business and that resolution of these claims will not have a material effect on the Company’s business, results of operations or financial condition. Pending Claims On April 17, 2017, a jury awarded damages against the Company of $81,500 in a litigated automotive product liability dispute. Through post-trial motions and offsets from previous settlements, the initial verdict was reduced to $77,100. The Company believed the verdict was not supported by the facts or the law and was contrary to the Company’s role in the automotive parts industry. The Company challenged the verdict through an appeal to a higher court. On February 19, 2020, the Washington Court of Appeals issued an order entirely reversing the jury’s finding on damages and ordering a new trial on damages. The plaintiffs subsequently appealed this order to the Washington Supreme Court. On July 7, 2020, the Washington Supreme Court indicated that it would consider a further appeal on this matter and oral arguments occurred on November 10, 2020. A ruling from Washington Supreme Court is expected in 2021. At the time of the filing of these financial statements, based upon the Company’s legal defenses and insurance coverage, the Company does not believe this matter will have a material impact to the consolidated financial statements. Fire at S.P. Richards Headquarters and Distribution Center |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Discontinued Operations | Acquisitions, Divestitures and Discontinued Operations Acquisitions For each acquisition, the Company allocates the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective acquisition dates. The results of operations for acquired businesses are included in the Company’s consolidated statements of income beginning on their respective acquisition dates. 2020 The Company acquired several businesses for approximately $86,384, net of cash acquired, during the year ended December 31, 2020. The Company has not recognized any significant measurement period adjustments related to finalizing acquisition accounting during the year ended December 31, 2020. 2019 The Company's cash used in acquisitions of businesses totaled $732,142, net of cash acquired, during the year ended December 31, 2019. In the Automotive Parts Group, the acquired businesses included all of its equity interests in Hennig Fahrzeugteile Group ("Hennig") in January 2019 and of PartsPoint Group in June 2019, which together generate estimated annual revenues of approximately $520,000, as well as several bolt-on acquisitions. In the Industrial Parts Group, the Company acquired all of the equity interests in Axis New England and Axis New York ("Axis") in March 2019, which generate estimated annual revenue of approximately $55,000, and the remaining 65% equity investment in Inenco Group Pty Ltd (now referred to as Motion Asia Pacific) in July 2019. Motion Asia Pacific is one of Australasia's leading industrial distributors of key product categories such as bearings, power transmission and seals and it generates estimated annual revenues of approximately $400,000. Prior to the 65% acquisition, the Company accounted for its 35% investment in Motion Asia Pacific under the equity method of accounting. Upon acquisition the Company recognized the 35% investment at its acquisition-date fair value of $123,385. The difference between the acquisition-date fair value and the carrying amount of the equity method investment resulted in the recognition of a gain of $38,663 on the acquisition date. The acquisition-date fair value was determined using a market and income approach with the assistance of a third party valuation firm. The gain is included in the line item "other" within non-operating expenses (income) on the consolidated statement of income for the year ended December 31, 2019. The total acquisition date fair value of the consideration transferred for the businesses and of any previously held equity interests was $860,712, net of cash acquired of $16,591, and it consisted of the following: December 31, 2019 Cash $ 732,142 Fair value of 35% investment in Motion Asia Pacific held prior to business combination 123,385 Fair value of other investments held prior to business combination 5,185 Total $ 860,712 The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition dates for the aggregate of these businesses. As of Acquisition Dates Trade accounts receivable $ 148,543 Merchandise inventories 319,579 Prepaid expenses and other current assets 788 Intangible assets 340,799 Deferred tax assets 1,480 Property, plant and equipment 70,958 Operating lease assets 127,470 Other assets 20,318 Total identifiable assets acquired 1,029,935 Current liabilities 122,307 Long-term debt 164,662 Operating lease liabilities 61,626 Deferred tax liabilities 67,081 Other long-term liabilities 132,187 Total liabilities assumed 547,863 Net identifiable assets acquired 482,072 Noncontrolling interests in a subsidiary (1,600) Goodwill 380,240 Net assets acquired $ 860,712 The acquired intangible assets of approximately $340,799 were assigned to customer relationships of $304,302, trademarks of $32,907, and other intangibles of $3,590 with weighted average amortization lives of 16.6, 21.7, and 5.0 years, respectively, for a total weighted average amortization life of 17.0 years. The goodwill recognized as part of the acquisitions is generally not tax deductible. The goodwill is attributable primarily to the expected synergies and assembled workforces of the acquired businesses. 2018 For the year ended December 31, 2018, the Company acquired several businesses for approximately $262,510, net of cash acquired. The Company recorded approximately $167,000 of goodwill and other intangible assets associated with the 2018 acquisitions. Other intangible assets acquired consisted of customer relationships of $76,000 with weighted average amortization lives of 15 years. Divestitures 2020 The Company received proceeds from divestitures of businesses totaling $387,379 during the year ended December 31, 2020. Refer to the discontinued operations section below for additional information. 2019 The Company received proceeds from divestitures of businesses totaling $434,609 during the year ended December 31, 2019. The divestitures are not considered strategic shifts that will have a major effect on the Company’s operations or financial results; therefore, they are not reported as discontinued operations. The Company recognized realized currency losses of $34,701 during the year ended December 31, 2019. These losses are included in the line item "other" within non-operating expenses (income) on the consolidated statement of income for the year ended December 31, 2019. Grupo Auto Todo On March 7, 2019, the Company sold all of its equity in Grupo Auto Todo, a Mexican subsidiary within the Automotive Parts Group. Grupo Auto Todo contributed revenues of $15,900 for the year ended December 31, 2019 and $93,000 for the year ended December 31, 2018. EIS During the third quarter of 2019, the Company approved a transaction to sell EIS, a wholly owned subsidiary within the Industrial Parts Group. The transaction closed on September 30, 2019. EIS contributed revenues of $588,031 for the year ended December 31, 2019 and $817,249 for the year ended December 31, 2018. Discontinued Operations Business Products Group Effective June 30, 2020, the Company completed the divestiture of its Business Products Group by selling Supply Source Enterprises, Inc. ("SSE") and S.P. Richards Company ("SPR") in separate transactions. These divestitures are part of the Company's long-term strategic initiative to streamline its operations and optimize its portfolio so that it can drive shareholder value by focusing on its global Automotive and Industrial Parts Groups. The Business Products Group was previously a reportable segment of the Company. These divestitures, together with prior period divestitures of Garland C. Norris (effective December 13, 2019), SPR Canada (effective January 1, 2020) and Safety Zone Canada (effective March 2, 2020), represent a single plan to exit the Business Products Group segment and are considered a strategic shift that will have a major effect on the Company’s operations and financial results. Therefore, the results of operations, financial position and cash flows for the Business Products Group are reported as discontinued operations for all periods presented. The Company maintains an investment in SPR with a carrying value of $67,601, which is included within other assets on the consolidated balance sheet, as of December 31, 2020. During the three months ended December 31, 2020, the Company recognized an allowance on the investment and corresponding charge of $17,000 equal to the current expected credit losses based on a consideration of historical experience, current market conditions and reasonable and supportable forecasts related to this investment. This charge is included within non-operating expenses (income) on the consolidated statement of income for the year ended December 31, 2020. The Company also remains involved with SPR for a limited period of time through various lease, sublease, freight distribution and transition service agreements. The Company has concluded that SPR is a variable interest entity, but the Company is not the primary beneficiary and therefore the entity is not consolidated. Among other things, the Company does not have any voting rights and does not have the power to direct the activities that most significantly affect SPR's economic performance. For a limited period of time as SPR completes its transition away from the Company’s shared services platform, the Company continues to pay certain payables on SPR’s behalf and at SPR’s direction with full, weekly reimbursement from SPR under the terms of a transition services agreement. The Company’s results of operations for discontinued operations were: Year Ended December 31, 2020 2019 2018 Net sales $ 846,944 $ 1,870,071 $ 1,903,468 Cost of goods sold 632,007 1,413,485 1,439,436 Gross profit 214,937 456,586 464,032 Operating and non-operating expenses 179,461 476,521 383,058 Loss on disposal 223,928 9,048 — (Loss) income before income taxes (188,452) (28,983) 80,974 Income taxes 4,045 (3,593) 20,034 Net (loss) income from discontinued operations $ (192,497) $ (25,390) $ 60,940 The Company’s assets and liabilities for discontinued operations, by major class, were: December 31, 2019 Assets Trade accounts receivable, net $ 194,903 Merchandise inventories, net 387,307 Prepaid expenses and other current assets 132,041 Other intangible assets, net 76,829 Operating lease assets 80,302 Other assets 91,640 Total assets of discontinued operations $ 963,022 Liabilities Trade accounts payable $ 158,163 Other current liabilities 59,954 Long-term liabilities 68,906 Total liabilities of discontinued operations $ 287,023 |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data The Company’s reportable segments consist of automotive and industrial parts. Within the reportable segments, certain of the Company’s operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. The Company’s automotive segment distributes replacement parts (other than body parts) for substantially all makes and models of automobiles, trucks, and other vehicles. The Company’s industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components and related parts and supplies. Inter-segment sales are not significant. Segment profit for each industry segment is calculated as net sales less operating expenses excluding general corporate expenses, interest expense, equity in income from investees, intangible asset amortization, income attributable to noncontrolling interests and other unallocated amounts that are driven by corporate initiatives. Approximately $327,226 of loss before income taxes for the year ended December 31, 2020 and approximately $245,373 and $281,687 of income before income taxes was generated in jurisdictions outside the U.S. for the years ended 2019, and 2018, respectively. Net sales and net property, plant and equipment by country relate directly to the Company’s operations in the respective country. Corporate assets are principally cash and cash equivalents and headquarters’ facilities and equipment. 2020 2019 2018 Net sales: Automotive $ 10,860,695 $ 10,993,902 $ 10,533,021 Industrial 5,676,738 6,528,332 6,298,584 Total net sales $ 16,537,433 $ 17,522,234 $ 16,831,605 Segment profit: Automotive $ 867,743 $ 831,951 $ 856,014 Industrial 481,854 521,830 487,360 Total segment profit $ 1,349,597 $ 1,353,781 $ 1,343,374 Interest expense, net (91,048) (91,405) (93,281) Corporate expense (149,754) (140,815) (137,036) Intangible asset amortization (94,962) (92,206) (83,489) Other unallocated costs (634,465) (170,072) (34,930) Income before income taxes from continuing operations $ 379,368 $ 859,283 $ 994,638 The following table presents a summary of the other unallocated costs: 2020 2019 2018 Other unallocated costs: Goodwill impairment charge (1) $ (506,721) $ — $ — Restructuring costs (2) (50,019) (100,023) — Special termination costs (2) — (42,757) — Realized currency and other divestiture losses (3) (11,356) (34,701) — Gain on insurance proceeds related to SPR fire (4) 13,448 — — Gain on equity investment (5) — 38,663 — Inventory adjustment (6) (40,000) — — Transaction and other costs (7) (39,817) (31,254) (34,930) Total other unallocated costs $ (634,465) $ (170,072) $ (34,930) (1) Adjustment reflects a second quarter goodwill impairment charge related to our European reporting unit. (2) Adjustment reflects restructuring and special termination costs related to the 2019 Cost Savings Plan announced in the fourth quarter of 2019. The costs are primarily associated with severance and other employee costs, including a voluntary retirement program, and facility and closure costs related to the consolidation of operations. (3) Adjustment reflects realized currency losses related to divestitures. (4) Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs related to the S.P. Richards Headquarters and Distribution Center. (5) Adjustment relates to the gain recognized upon remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Motion Asia Pacific on July 1, 2019. (6) Adjustment reflects a $40 million increase to cost of goods sold recorded during the quarter ended December 31, 2020 due to the correction of an immaterial error related to the accounting in prior years for consideration received from vendors. (7) Adjustment includes a $17 million loss on investment, $10 million of incremental costs associated with COVID-19 and costs associated with certain divestitures. COVID-19 related costs include incremental costs incurred relating to fees to cancel marketing events and increased cleaning and sanitization materials, among other things. For the three and twelve months ended December 31, 2019, adjustment reflects transaction and other costs related to acquisitions and divestitures. 2020 2019 2018 Assets: Automotive $ 7,858,334 $ 7,376,408 $ 6,248,117 Industrial 1,911,520 1,993,457 1,792,662 Corporate 254,627 527,126 297,282 Goodwill and other intangible assets 3,415,734 3,785,616 3,374,718 Discontinued operations — 963,022 970,261 Total assets $ 13,440,215 $ 14,645,629 $ 12,683,040 Depreciation and amortization: Automotive $ 120,932 $ 122,905 $ 105,238 Industrial 16,315 17,577 14,518 Corporate 40,633 24,575 24,339 Intangible asset amortization 94,962 92,206 83,489 Total depreciation and amortization $ 272,842 $ 257,263 $ 227,584 Capital expenditures: Automotive $ 133,523 $ 227,420 $ 198,910 Industrial 19,287 39,003 21,783 Corporate 692 11,450 5,813 Total capital expenditures $ 153,502 $ 277,873 $ 226,506 Net sales: United States $ 10,863,348 $ 12,226,381 $ 12,083,120 Europe 2,408,913 2,223,498 1,860,912 Canada 1,526,202 1,614,659 1,565,393 Australasia 1,691,190 1,369,361 1,193,148 Mexico 47,780 88,335 129,032 Total net sales $ 16,537,433 $ 17,522,234 $ 16,831,605 Net property, plant and equipment: United States $ 728,802 $ 763,746 $ 693,683 Europe 164,268 153,357 110,184 Canada 102,409 103,320 91,195 Australasia 165,596 147,457 95,578 Mexico 968 5,808 4,014 Total net property, plant and equipment $ 1,162,043 $ 1,173,688 $ 994,654 The following table presents disaggregated geographical net sales from contracts with customers by reportable segment. The Company believes this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors: 2020 2019 2018 North America: Automotive $ 7,177,543 $ 7,613,047 $ 7,478,961 Industrial 5,259,787 6,316,328 6,298,584 Total North America $ 12,437,330 $ 13,929,375 $ 13,777,545 Australasia: Automotive $ 1,274,239 $ 1,157,357 $ 1,193,148 Industrial 416,951 212,004 — Total Australasia $ 1,691,190 $ 1,369,361 $ 1,193,148 Europe - Automotive $ 2,408,913 $ 2,223,498 $ 1,860,912 Total net sales $ 16,537,433 $ 17,522,234 $ 16,831,605 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In October of 2019, the Company approved certain restructuring actions (the "2019 Cost Savings Plan") across its subsidiaries primarily targeted at simplifying organizational structures and distribution networks. Among other things, the 2019 Cost Savings Plan resulted in workforce reductions and facility closures and consolidations. The Company executed a VRP for its U.S. and Canadian subsidiaries in the fourth quarter of 2019 in connection with this plan. The table below summarizes costs incurred for the 2019 Cost Savings Plan: 2020 2019 Restructuring costs $ 50,019 $ 100,023 Special termination costs — 42,757 Total costs incurred $ 50,019 $ 142,780 The 2019 Cost Savings Plan was approved and funded by the Company's corporate office and therefore these costs are not allocated to the Company's segments. See the segment data footnote for more information. No material further costs are expected to be incurred for the 2019 Cost Savings Plan. The table below summarizes the activity related to the restructuring costs discussed above. As of December 31, 2020, the current portion of the restructuring liability is included in other current liabilities on the consolidated balance sheet. Severance and other employee costs Facility and closure costs Accelerated operating lease costs Asset impairments Total Liability as of January 1, 2020 $ 72,192 $ 6,639 $ — $ — $ 78,831 Restructuring costs 20,631 16,421 6,724 6,243 50,019 Cash payments (72,365) (13,245) — — (85,610) Non-cash charges — — (6,724) (6,243) (12,967) Translation 936 318 — 1,254 Liability as of December 31, 2020 $ 21,394 $ 10,133 $ — $ — $ 31,527 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following is a summary of the quarterly results of operations for the years ended December 31, 2020 and 2019: Three Months Ended (In thousands, except per share data) March 31, 2020 June 30, 2020 Sept. 30, 2020 Dec. 31, 2020 Net sales $ 4,092,526 $ 3,823,227 $ 4,370,086 $ 4,251,594 Gross profit $ 1,388,178 $ 1,290,487 $ 1,528,066 $ 1,448,110 Net income (loss) from continuing operations $ 122,346 $ (363,501) $ 232,918 $ 171,632 Net income (loss) $ 136,535 $ (564,372) $ 227,531 $ 171,204 Earnings per share from continuing operations: Basic $ 0.84 $ (2.52) $ 1.61 $ 1.19 Diluted $ 0.84 $ (2.52) $ 1.61 $ 1.18 Earnings per share: Basic $ 0.94 $ (3.91) $ 1.58 $ 1.19 Diluted $ 0.94 $ (3.91) $ 1.57 $ 1.18 Three Months Ended (In thousands, except per share data) March 31, 2019 June 30, 2019 Sept. 30, 2019 Dec. 31, 2019 Net sales $ 4,259,129 $ 4,457,931 $ 4,525,284 $ 4,279,890 Gross profit $ 1,392,798 $ 1,482,704 $ 1,505,233 $ 1,478,948 Net income from continuing operations $ 145,684 $ 209,519 $ 212,256 $ 79,016 Net income $ 160,250 $ 224,430 $ 227,487 $ 8,918 Earnings per share from continuing operations: Basic $ 1.00 $ 1.43 $ 1.46 $ 0.54 Diluted $ 0.99 $ 1.43 $ 1.45 $ 0.54 Earnings per share: Basic $ 1.10 $ 1.54 $ 1.56 $ 0.06 Diluted $ 1.09 $ 1.53 $ 1.56 $ 0.06 We recorded the quarterly earnings per share amounts as if each quarter was a discrete period. As a result, the sum of the basic and diluted earnings per share will not necessarily total the annual basic and diluted earnings per share. Certain of the quarterly results identified in the table above include material, unusual or infrequently occurring items as follows on a pre-tax basis: In the second quarter of 2020, the Company recorded a goodwill impairment charge of $506,721. Refer to the goodwill and other intangible assets footnote within the Notes to the Consolidated Financial Statements for additional information. In the fourth quarter of 2019, the Company recognized $142,780 in total restructuring costs and special termination costs. The Company recognized $50,019 in total restructuring costs for the year ending December 31, 2020. Refer to the restructuring footnote in the Notes to Consolidated Financial Statements for additional information. During the fourth quarter of 2020, the Company determined that inventory was overstated because certain consideration received from vendors was not properly recognized as a reduction to carrying amount of inventory in the years ending December 31, 2019 and prior. The Company corrected this misstatement and recorded an adjustment to decrease inventory and increase cost of goods sold by $40,000 during the quarter ended December 31, 2020. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality , and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Business | Business Genuine Parts Company (the "Company") is a distributor of automotive replacement parts and industrial parts and materials. The Company serves a diverse customer base through a network of more than 10,000 locations throughout North America, Australasia, and Europe and, therefore, has limited exposure from credit losses to any particular customer, region, or industry segment. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company's operations are vulnerable to the reduced economic activity caused by the COVID-19 outbreak, which was declared a pandemic in March 2020. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous factors and future developments that the Company cannot predict, including the severity of the virus; the occurrence of additional waves or spikes in infection rates; the duration of the outbreak; governmental, business or other actions taken in response to the pandemic and the efficacy of these actions, including partial or complete shut downs, travel restrictions, and stay-at-home orders among other actions; the effectiveness and distribution of COVID-19 vaccines; and impacts on the Company's supply chain, its ability to keep operating locations open, and on customer demand. The Company benefited from various forms of government economic assistance including certain temporary subsidies that were received in 2020, which have been classified as a reduction of selling, administrative and other expenses. The Company has evaluated subsequent events through the date the financial statements were issued. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include all of the accounts of the Company. The net income attributable to noncontrolling interests is not material to the Company’s consolidated net income. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and the differences could be material. If the pandemic persists or worsens, the estimates and assumptions management made as of December 31, 2020 could change, and it is reasonably possible such changes could be significant. |
Revenue Recognition | Revenue Recognition The Company primarily recognizes revenue at the point the customer obtains control of the products or services and at an amount that reflects the consideration expected to be received for those products or services. Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price and recognizes revenue upon delivery or as services are rendered. Revenue is recognized net of allowances for returns, variable consideration and any taxes collected from customers that will be remitted to governmental authorities. Revenue recognized over time is not significant. Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant. Liabilities for customer incentives, discounts, or rebates are included in other current liabilities in the consolidated balance sheets. Product Distribution Revenues The Company generates revenue primarily by distributing products through wholesale and retail channels. For wholesale customers, revenue is recognized when title and control of the goods has passed to the customer. Retail revenue is recognized at the point of sale when the goods are transferred to customers and consideration is received. Shipping and handling activities are performed prior to the customer obtaining control of the products. Costs associated with shipping and handling are considered costs to fulfill a contract and are included in selling, administrative and other expenses in the period they are incurred. Other Revenues The Company offers software support, product cataloging, marketing, training and other membership program and support services to certain customers. This revenue is recognized as services are performed. Revenue from these services is recognized over a short duration and the impact to our consolidated financial statements is not significant. Variable Consideration The Company’s products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits or rebates. The Company estimates variable consideration based on historical experience to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to a customer. The Company recognizes estimated variable consideration as an adjustment to the transaction price when control of the related product or service is transferred. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. |
Foreign Currency Translation | Foreign Currency TranslationThe consolidated balance sheets and statements of income of the Company’s foreign subsidiaries have been translated into U.S. dollars at the current and average exchange rates, respectively. The foreign currency translation adjustment is included as a component of accumulated other comprehensive loss. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. |
Trade Accounts Receivable and the Allowance for Doubtful Accounts | Trade Accounts Receivable and the Allowance for Doubtful AccountsThe Company evaluates the collectability of trade accounts receivable based on a combination of factors. The Company estimates an allowance for doubtful accounts as a percentage of net sales based on various factors, including historical experience, current economic conditions and future expected credit losses and collectability trends. The Company will periodically adjust this estimate when the Company becomes aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. |
Merchandise Inventories, Including Consideration Received From Vendors | Merchandise Inventories, Including Consideration Received From Vendors Merchandise inventories are valued at the lower of cost or net realizable value. Cost is determined by the last-in, first-out ("LIFO") method for a majority of U.S. automotive and industrial parts, and generally by the first-in, first-out ("FIFO") method for non-U.S. and certain other inventories. If the FIFO method had been used for all inventories, cost would have been approximately $524,400 and $531,800 higher than reported at December 31, 2020 and 2019, respectively. During 2020 and 2019, reductions in industrial parts inventories resulted in liquidations of LIFO inventory layers, which reduced cost of goods sold by approximately $15,500 and $10,400, respectively. The Company identifies slow moving or obsolete inventories and estimates appropriate provisions related thereto. Historically, these losses have not been significant as the vast majority of the Company’s inventories are not highly susceptible to obsolescence and are eligible for return under various vendor return programs. While the Company has no reason to believe its inventory return privileges will be discontinued in the future, its risk of loss associated with obsolete or slow moving inventories would increase if such were to occur. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current AssetsPrepaid expenses and other current assets consist primarily of amounts due from vendors, prepaid expenses, and income and other taxes receivable. |
Goodwill | Goodwill The Company reviews its goodwill annually for impairment in the fourth quarter, or sooner if circumstances indicate that the carrying amount may exceed fair value. The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment (a component). A component is a reporting unit if the component constitutes a business for which discrete financial information and operating results are available and management regularly reviews that information. However, the Company may aggregate two or more components of an operating segment into a single reporting unit if the components have similar economic characteristics. To review goodwill at a reporting unit for impairment, the Company generally elects to first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Qualitative factors include adverse macroeconomic, industry or market conditions, cost factors, or financial performance. If the Company elects not to perform a qualitative assessment or concludes from its assessment of qualitative factors that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company must perform a quantitative test to evaluate goodwill impairment. To perform a quantitative test, the Company calculates the fair value of the reporting unit and compares that amount to the reporting unit's carrying value. The Company typically calculates the fair value by using a combination of a market approach and an income approach that is based on a discounted cash flow model. The assumptions used in the market approach generally include benchmark company market multiples and the assumptions used in the income approach generally include the projected cash flows of the reporting unit, which are based on projected revenue growth rates and operating margins, and the estimated weighted average cost of capital, working capital and terminal value. The Company uses inputs and assumptions it believes are consistent with those a hypothetical marketplace participant would use. The Company recognizes goodwill impairment (if any) as the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Refer to the goodwill and other intangible assets footnote for further information on the results of the Company's annual goodwill impairment testing. |
Long-Lived Assets Other Than Goodwill | Long-Lived Assets Other Than GoodwillThe Company assesses its long-lived assets other than goodwill for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. Impairment losses, if any, are measured based upon the difference between the carrying amount and the fair value of the assets. |
Other Assets | Other AssetsOther assets consist primarily of cash surrender value of life insurance policies, debt securities, equity method and other investments, guarantee fees receivable, and deferred compensation benefits. |
Property, Plant, and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are primarily determined on a straight-line basis over the following estimated useful lives of each asset: buildings, 10 to 40 years; machinery and equipment, 5 to 15 years; and the shorter of lease term or useful life for leasehold improvements. |
Other Current Liabilities | Other Current LiabilitiesOther current liabilities consist primarily of current lease obligations, reserves for sales returns expected within the next year, accrued compensation, accrued income and other taxes, and other reserves for expenses incurred. |
Other Long-term Liabilities | Other Long-term LiabilitiesOther long-term liabilities consist primarily of reserves for sales returns expected after the next year, guarantee obligations, accrued taxes and other non-current obligations. |
Self-Insurance | Self-Insurance The Company is self-insured for the majority its group health insurance costs. A reserve for claims incurred but not reported is developed by analyzing historical claims data provided by the Company’s claims administrators. These reserves are included in accrued expenses in the accompanying consolidated balance sheets as the expenses are expected to be paid within one year. Long-term insurance liabilities consist primarily of reserves for the Company's workers’ compensation program. In addition, the Company carries various large risk deductible workers’ compensation policies for the majority of workers’ compensation liabilities. The Company records the workers’ compensation reserves based on an analysis performed by an independent actuary. The analysis calculates development factors, which are applied to total reserves as provided by the various insurance companies who underwrite the program. While the Company believes that the assumptions used to calculate these liabilities are appropriate, significant differences in actual experience or significant changes in these assumptions may materially affect workers’ compensation costs. |
Business Combinations | Business Combinations When the Company acquires businesses, it applies the acquisition method of accounting and recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values on the acquisition date, which requires significant estimates and assumptions. Goodwill is measured as the excess of the fair value of the consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method requires the Company to record provisional amounts for any items for which the accounting is not complete at the end of a reporting period. The Company must complete the accounting during the measurement period, which cannot exceed one year. Adjustments made during the measurement period could have a material impact on the Company's financial condition and results of operations. The Company typically measures customer relationship and other intangible assets using an income approach. Significant estimates and assumptions used in this approach include discount rates and certain assumptions that form the basis of the forecasted cash flows expected to be generated from the asset (e.g., future revenue growth rates, operating margins and attrition rates). If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could record impairment charges. In addition, the Company has estimated the economic lives of certain acquired tangible and intangible assets and these lives are used to calculate depreciation and amortization expense. If the Company's estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. |
Legal and Product Liabilities | Legal and Product Liabilities The Company accrues for potential losses related to legal disputes, litigation, product liabilities, and regulatory matters when it is probable (the future event or events are likely to occur) that the Company will incur a loss and the amount of the loss can be reasonably estimated. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. Additionally, ASC 820, Fair Value Measurements , defines levels within a hierarchy based upon observable and non-observable inputs. • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions At December 31, 2020 and 2019, the fair value of the Company's senior unsecured notes was approximately $2,680,545 and $2,013,542, respectively, which are designated as Level 2 in the fair value hierarchy. Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities. Derivative instruments are recognized in the consolidated balance sheets at fair value and are designated as Level 2 in the fair value hierarchy. They are valued using inputs other than quoted prices, such as foreign exchange rates and yield curves. |
Derivatives and Hedging | Derivatives and Hedging The Company is exposed to various risks arising from business operations and market conditions, including fluctuations in interest rates and certain foreign currencies. When deemed appropriate, the Company uses derivative and non-derivative instruments as risk management tools to mitigate the potential impact of interest rate and foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in the Company’s earnings, cash flows and net investments in certain foreign subsidiaries associated with changes in these rates. Derivative financial instruments are not used for trading or other speculative purposes. The Company has not historically incurred, and does not expect to incur in the future, any losses as a result of counterparty default related to derivative instruments. The Company formally documents relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking cash flow hedges to specific forecasted transactions or variability of cash flow to be paid. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative and non-derivative instruments that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. When a designated instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, hedge accounting is discontinued prospectively. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are classified as selling, administrative and other expenses in the accompanying consolidated statements of income and totaled approximately $301,900, $303,900, and $278,500, for the years ended December 31, 2020, 2019, and 2018, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled $193,900, $201,600, and $203,500 in the years ended December 31, 2020, 2019, and 2018, respectively. |
Accounting for Legal Costs | Accounting for Legal Costs The Company’s legal costs expected to be incurred in connection with loss contingencies are expensed as such costs are incurred. |
Share-Based Compensation | Share-Based Compensation The Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), performance awards, dividend equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in shares of common stock, equal to the excess, if any, of the fair market value of the Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. In addition, valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. In making this determination, the Company considers all available positive and negative evidence including projected future taxable income, future reversals of existing temporary differences, recent financial operations and tax planning strategies. The Company recognizes a tax benefit from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. |
Net Income from Continuing Operations per Common Share | Net Income from Continuing Operations per Common Share Basic net income from continuing operations per common share is computed by dividing net income from continuing operations by the weighted average number of common shares outstanding during the year. The computation of diluted net income from continuing operations per common share includes the dilutive effect of stock options, stock appreciation rights and nonvested restricted stock awards options. Options to purchase approximately 1,602, 210, and 1,490 shares of common stock ranging from $72 - $105 per share were outstanding at December 31, 2020, 2019, and 2018, respectively. These options were excluded from the computation of diluted net income from continuing operations per common share because the options’ exercise prices were greater than the average market prices of common stock in each respective year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standard Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are expected to have a minimal impact on the Company's consolidated financial statements. Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . Among other things, the ASU and its amendments replace the incurred loss impairment model for receivables and loan guarantees with a current expected credit loss model. The new model measures impairment based on expected credit losses over the remaining contractual life of an asset, considering available information about the collectability of cash flows, past events, current conditions, and reasonable and supportable forecasts. Additional quantitative and qualitative disclosures are required. The Company adopted ASU 2016-13 and its amendments as of January 1, 2020, which included recognizing a cumulative-effect adjustment to reduce opening retained earnings by $11,432, net of taxes. Compensation - Retirement Benefits (Topic 715) In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans . The updated accounting guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing, adding and clarifying certain disclosures. The Company adopted this new accounting standard on January 1, 2020 on a retrospective basis. The adoption of this ASU did not have an impact on the Company’s financial position, results of operations, or cash flows. Income Statement - Reporting Comprehensive Income (Topic 220) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits a company to make a one-time election to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. The ASU also requires companies to disclose their accounting policies for releasing income tax effects from accumulated other comprehensive income. ASU 2018-02 was effective for periods beginning after December 15, 2018, with an election to adopt early. The Company adopted ASU 2018-02 as of January 1, 2019 and recognized an adjustment to increase retained earnings and to adjust accumulated other comprehensive loss by approximately $122,526. Intangibles - Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 requires applying a one-step quantitative test and recording the amount of goodwill impairment as the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The Company adopted ASU 2017-04 as of October 1, 2019 and performed its annual evaluation of goodwill in accordance with this standard. Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases , which, among other things, requires an entity to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, including operating leases. Expanded disclosures with additional qualitative and quantitative information are also required. ASU 2016-02 and its amendments were effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption was permitted. The Company adopted ASU 2016-02 and its amendments as of January 1, 2019 using the modified retrospective method and utilized the optional transition method to apply the legacy guidance in ASC 840, Leases , including its disclosure requirements, in the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical assessments of: (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company did not elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company elected a policy of not recording leases on its consolidated balance sheets when the leases have a term of 12 months or less and the Company is not reasonably certain to elect |
Pension and Other Postretirement Plans | The Company’s defined benefit pension plans cover employees in the U.S., Canada, and Europe who meet eligibility requirements. The plan covering U.S. employees is noncontributory, and the Company implemented a hard freeze for the U.S. qualified defined benefit plan as of December 31, 2013. No further benefits were provided after this date for additional credited service or earnings, and all participants became fully vested as of December 31, 2013. The Canadian plan is contributory, and benefits are based on career average compensation. The Company’s funding policy is to contribute an amount equal to the minimum required contribution under applicable pension legislation. For the plans in the U.S. and Canada, the Company may increase its contribution above the minimum, if appropriate to its tax and cash position and the plans’ funded position. The European plans are funded in accordance with local regulations. The Company also sponsors supplemental retirement plans covering employees in the U.S. and Canada. The Company uses a measurement date of December 31 for its pension and supplemental retirement plans. Several assumptions are used to determine the benefit obligations, plan assets, and net periodic income. The discount rate for the U.S. pension plan is calculated using a bond matching approach to select specific bonds that would satisfy the projected benefit payments. The bond matching approach reflects the process that would be used to settle the pension obligations. The discount rate for non U.S. plans are set by using Willis Towers Watson's RATE:Link model. For each plan, this approach reflects yields available on high quality corporate bonds that would generate the cash flow necessary to pay the plan's benefits when due. The expected return on plan assets is based on a calculated market-related value of plan assets, where gains and losses on plan assets are amortized over a five The fair values of the plan assets as of December 31, 2020 and 2019, by asset category, are shown in the tables below. Various inputs are considered when determining the value of the Company’s pension plan assets. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Level 1 represents observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 represents other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.). Level 3 represents significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments). Certain investments are measured at fair value using the net asset value ("NAV") per share as a practical expedient and have not been classified in the fair value hierarchy. The valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded on the last day of the calendar plan year. Debt securities including corporate bonds, U.S. Government securities, and asset-backed securities are valued using price evaluations reflecting the bid and/or ask sides of the market for an investment as of the last day of the calendar plan year. |
Consolidation, Variable Interest Entity | At December 31, 2020, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $884,721. These loans generally mature over periods from one |
Segment Reporting | The Company’s reportable segments consist of automotive and industrial parts. Within the reportable segments, certain of the Company’s operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following tables present the changes in accumulated other comprehensive loss (“AOCL”) by component: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2020 $ (704,415) $ (20,671) $ (416,222) $ (1,141,308) Other comprehensive income (loss) before reclassifications (17,343) (21,509) 91,239 52,387 Amounts reclassified from accumulated other comprehensive loss 28,890 12,173 11,356 52,419 Net current period other comprehensive income (loss) 11,547 (9,336) 102,595 104,806 Ending balance, December 31, 2020 $ (692,868) $ (30,007) $ (313,627) $ (1,036,502) Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2019 $ (626,322) $ (4,632) $ (484,124) $ (1,115,078) Other comprehensive income (loss) before reclassifications 22,120 (18,419) 33,201 36,902 Amounts reclassified from accumulated other comprehensive loss (1) 22,313 2,380 34,701 59,394 Net current period other comprehensive income (loss) 44,433 (16,039) 67,902 96,296 Cumulative effect from adoption of ASU 2018-02 (122,526) — — (122,526) Ending balance, December 31, 2019 $ (704,415) $ (20,671) $ (416,222) $ (1,141,308) (1) Amount includes realized currency losses of $34,701 that were reclassified out of foreign currency translation into earnings in connection with the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS. Refer to the acquisitions, divestitures and discontinued operations footnote for further details. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill and Other Identifiable Intangible Assets | The changes in the carrying amount of goodwill during the years ended December 31, 2020 and 2019 by reportable segment, as well as other identifiable intangible assets, are summarized as follows: Goodwill Automotive Industrial Total Other Intangible Assets, Net Balance as of January 1, 2019 $ 1,721,823 $ 324,997 $ 2,046,820 $ 1,327,898 Additions 194,561 185,679 380,240 340,799 Divestitures (294) (115,437) (115,731) (89,030) Amortization — — — (92,206) Impairments — — — (2,194) Foreign currency translation (18,595) 785 (17,810) 6,830 Balance as of December 31, 2019 1,897,495 396,024 2,293,519 1,492,097 Additions 15,061 5,261 20,322 21,890 Amortization — — — (94,962) Impairments (506,721) — (506,721) — Foreign currency translation 99,688 10,669 110,357 79,232 Balance as of December 31, 2020 $ 1,505,523 $ 411,954 $ 1,917,477 $ 1,498,257 |
Gross Carrying Amounts and Accumulated Amortization Relating to Other Intangible Assets | The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2020 and 2019 are as follows: 2020 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 1,578,153 $ (388,120) $ 1,190,033 $ 1,481,470 $ (287,851) $ 1,193,619 Trademarks 358,253 (50,227) 308,026 334,643 (36,501) 298,142 Non-competition agreements 5,719 (5,521) 198 5,268 (4,932) 336 $ 1,942,125 $ (443,868) $ 1,498,257 $ 1,821,381 $ (329,284) $ 1,492,097 |
Estimated Other Intangible Assets Amortization Expense | Estimated other intangible assets amortization expense for the succeeding five years is as follows: 2021 $ 100,630 2022 100,623 2023 99,984 2024 99,236 2025 98,915 $ 499,388 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment as of December 31, 2020 and December 31, 2019, consisted of the following: 2020 2019 Land $ 131,117 $ 128,353 Buildings and leasehold improvements 899,723 779,124 Machinery, equipment and other 1,529,298 1,466,899 Property, plant and equipment, at cost 2,560,138 2,374,376 Less: accumulated depreciation 1,398,095 1,200,688 Property, plant and equipment, net $ 1,162,043 $ 1,173,688 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding Amount of Credit Facilities | Amounts outstanding under the Company’s credit facilities, net of debt issuance costs consist of the following: December 31, 2020 December 31, 2019 Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.50% variable, due October 30, 2025 $ — $ — Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.50% variable, due October 30, 2022 (Terminated as of October 30, 2020) — 477,873 Unsecured Term Loan A, $1,100,000, LIBOR plus 1.50% variable, due October 30, 2022 — 962,500 October 27, 2020, Senior Unsecured Notes, $500,000, 1.875% fixed, due November 1, 2030 500,000 — July 29, 2016, Series G Senior Unsecured Notes, $50,000, 3.14% fixed, due July 29, 2021 50,000 50,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000, 3.74% fixed, due December 2, 2023 250,000 250,000 June 30, 2019, Series A Senior Unsecured Notes, A$155,000, 3.60% fixed, due June 30, 2024 119,133 108,422 October 30, 2017, Series J Senior Unsecured Notes, €225,000, 1.90% fixed, due October 30, 2024 276,773 252,000 June 30, 2019, Series B Senior Unsecured Notes, A$155,000, 3.93% fixed, due June 30, 2026 119,133 108,422 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.74% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, €250,000, 2.31% fixed, due October 30, 2027 307,525 280,000 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 4.20% fixed, due October 30, 2027 120,000 120,000 May 31, 2019, Series A Senior Unsecured Notes, €50,000, 2.05% fixed, due May 31, 2029 61,505 56,000 October 30, 2017, Series L Senior Unsecured Notes, €125,000, 2.52% fixed, due October 30, 2029 153,762 140,000 May 31, 2019, Series B Senior Unsecured Notes, €100,000, 2.24% fixed, due May 31, 2031 123,010 112,000 October 30, 2017, Series M Senior Unsecured Notes, €100,000, 2.82% fixed, due October 30, 2032 123,010 112,000 May 31, 2019, Series C Senior Unsecured Notes, €100,000, 2.45% fixed, due May 31, 2034 123,010 112,000 Other unsecured debt 114,002 40,340 Total unsecured debt 2,690,863 3,431,557 Unamortized debt issuance costs (9,136) (5,458) Unamortized discounts (4,582) — Total debt 2,677,145 3,426,099 Less debt due within one year 160,531 624,043 Long-term debt, excluding current portion $ 2,516,614 $ 2,802,056 |
Schedule of Maturities of Long-term Debt | Approximate maturities under the Company’s credit facilities are as follows: 2021 $ 162,429 2022 1,573 2023 250,000 2024 395,906 2025 — Thereafter 1,880,955 $ 2,690,863 |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables, Sales | The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of period end: December 31, 2020 Receivables sold to the financial institution and derecognized since inception $ 3,928,024 Cash collected on sold receivables since inception $ 3,128,023 Total principal amount outstanding of receivables sold at period end $ 800,001 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the location and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships: December 31, 2020 December 31, 2019 Instrument Balance sheet location Notional Balance Notional Balance Cash flow hedges: Interest rate swaps Other current liabilities $ — $ — $ 800,000 $ 24,792 Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 800,000 $ 7,668 $ 925,810 $ 39,965 Forward contracts Other current liabilities $ 360,990 $ 19,442 $ — $ — Foreign currency debt Long-term debt € 700,000 $ 861,070 € 700,000 $ 784,000 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The table below presents pre-tax gains and losses related to cash flow hedges and net investment hedges: (Loss) Gain Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2020 2019 2018 2020 2019 2018 Year Ended December 31, Cash Flow Hedges: Interest rate contract $ (29,464) $ (21,972) $ (7,896) $ — $ — $ — Net Investment Hedges: Cross-currency swap — 2,936 6,006 — 2,294 6,740 Forward contracts (85,390) 20,679 — 27,146 17,892 — Foreign currency debt (77,070) 17,010 38,850 — — — Total $ (191,924) $ 18,653 $ 36,960 $ 27,146 $ 20,186 $ 6,740 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The table below presents pre-tax gains and losses related to cash flow hedges and net investment hedges: (Loss) Gain Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2020 2019 2018 2020 2019 2018 Year Ended December 31, Cash Flow Hedges: Interest rate contract $ (29,464) $ (21,972) $ (7,896) $ — $ — $ — Net Investment Hedges: Cross-currency swap — 2,936 6,006 — 2,294 6,740 Forward contracts (85,390) 20,679 — 27,146 17,892 — Foreign currency debt (77,070) 17,010 38,850 — — — Total $ (191,924) $ 18,653 $ 36,960 $ 27,146 $ 20,186 $ 6,740 |
Leased Properties (Tables)
Leased Properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases, Assets and Liabilities | The table below presents the locations of the operating lease assets and liabilities on the consolidated balance sheets: Balance Sheet Line Item December 31, 2020 December 31, 2019 Operating lease assets Operating lease assets $ 1,038,877 $ 995,667 Operating lease liabilities: Current operating lease liabilities Other current liabilities $ 270,739 $ 255,207 Noncurrent operating lease liabilities Operating lease liabilities 789,294 756,519 Total operating lease liabilities $ 1,060,033 $ 1,011,726 |
Schedule of Components of Operating Leases | The Company's weighted average remaining lease term and weighted average discount rate for operating leases are: December 31, 2020 December 31, 2019 Weighted average remaining lease term (in years) 5.35 5.50 Weighted average discount rate 2.47 % 2.82 % |
Lessee, Operating Lease, Liability, Maturity | The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2020: 2021 $ 295,841 2022 252,303 2023 188,357 2024 128,278 2025 81,625 Thereafter 186,135 Total undiscounted future minimum lease payments 1,132,539 Less: Difference between undiscounted lease payments and discounted operating lease liabilities 72,506 Total operating lease liabilities $ 1,060,033 |
Lease, Cost | The table below presents operating lease costs and supplemental cash flow information related to leases: 2020 2019 Operating lease costs $ 313,315 $ 310,028 Cash paid for amounts included in the measurement of operating lease liabilities $ 323,336 $ 311,170 Operating lease assets obtained in exchange for new operating lease liabilities $ 302,114 $ 330,103 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Company's Nonvested Share Awards (RSUs) Activity | A summary of the Company’s restricted stock units activity and related information is as follows: Nonvested Share Awards (RSUs) Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Nonvested at beginning of year 677 $ 95 Granted 426 $ 72 Vested (89) $ 89 Forfeited (160) $ 92 Nonvested at end of year 854 $ 85 1.9 $ 85,775 |
Summary of Company's Share-Based Compensation Activity and Related Information | A summary of the Company’s stock appreciation rights activity and related information is as follows: Stock Appreciation Rights (SARs) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at beginning of year 2,154 $ 88 Granted — $ — Exercised (331) $ 80 Forfeited (36) $ 94 Outstanding at end of year 1,787 $ 89 3.5 $ 20,515 Exercisable at end of year 1,787 $ 89 3.5 $ 20,515 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: 2020 2019 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 343,308 $ 271,358 Operating lease liabilities 289,114 281,853 Pension liability not yet deducted for tax purposes 257,526 261,909 Capital loss 10,875 18,317 Net operating loss 56,028 43,932 956,851 877,369 Deferred tax liabilities related to: Employee and retiree benefits 226,356 215,899 Inventory 90,213 92,577 Operating lease assets 282,486 274,630 Other intangible assets 365,825 343,649 Property, plant and equipment 73,333 63,518 Other 29,961 38,936 1,068,174 1,029,209 Net deferred tax liability before valuation allowance (111,323) (151,840) Valuation allowance (35,930) (35,282) Total net deferred tax liability $ (147,253) $ (187,122) |
Components of Income before Income Taxes | The components of income before income taxes are as follows: 2020 2019 2018 United States $ 706,594 $ 613,910 $ 712,951 Foreign (327,226) 245,373 281,687 Income before income taxes $ 379,368 $ 859,283 $ 994,638 |
Components of Income Tax Expense | The components of income tax expense are as follows: 2020 2019 2018 Current: Federal $ 130,680 $ 162,883 $ 130,144 State 35,474 45,488 36,457 Foreign 77,541 60,376 76,910 Deferred: Federal 2,048 (21,617) 13,295 State 801 (11,273) 5,427 Foreign (30,571) (23,049) (17,129) $ 215,973 $ 212,808 $ 245,104 |
Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate | The reasons for the difference between total tax expense and the amount computed by applying the statutory Federal income tax rate to income before income taxes are as follows: 2020 2019 2018 Statutory rate applied to income (1) $ 79,667 $ 180,449 $ 208,874 Plus state income taxes, net of Federal tax benefit 28,658 27,030 33,088 Taxation of foreign operations, net (2) (9,072) (17,663) (7,862) U.S. tax reform - transition tax (3) — 4,492 4,875 U.S. tax reform - deferred tax remeasurement (3) — — 424 Non-deductible goodwill impairment tax effect 106,411 — — Foreign rate change - deferred tax remeasurement 9,045 6,215 (1,461) Book tax basis difference in investment — — (11,944) Valuation allowance 1,995 4,503 20,505 Other (731) 7,782 (1,395) $ 215,973 $ 212,808 $ 245,104 (1) U.S. statutory rates applied to income are as follows: 2020, 2019 and 2018 at 21%. (2) The Company's effective tax rate reflects the net benefit of having operations outside of the U.S. which are taxed at statutory rates different from the U.S. statutory rate, with some income being fully or partially exempt from income taxes due to various operating and financing activities. |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2020 2019 2018 Balance at beginning of year $ 21,461 $ 18,428 $ 14,697 Additions based on tax positions related to the current year 3,771 3,701 2,034 Additions for tax positions of prior years 3,480 620 4,787 Reductions for tax positions for prior years (1,382) (965) (725) Reduction for lapse in statute of limitations (3,765) — (2,338) Settlements (328) (323) (27) Balance at end of year $ 23,237 $ 21,461 $ 18,428 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Benefit Obligation | Changes in benefit obligations for the years ended December 31, 2020 and 2019 were: 2020 2019 Changes in benefit obligation Benefit obligation at beginning of year $ 2,496,600 $ 2,278,043 Service cost 12,105 9,558 Interest cost 83,732 97,441 Plan participants’ contributions 1,864 2,246 Actuarial loss 218,534 246,352 Foreign currency exchange rate changes 9,394 9,073 Gross benefits paid (144,508) (119,789) Plan amendments — 3,327 Curtailments (472) (6,569) Settlements — (67,831) Special termination costs — 42,757 Acquired plans 1,717 1,992 Benefit obligation at end of year $ 2,678,966 $ 2,496,600 |
Assumptions Used to Measure Pension Benefit Obligations | The assumptions used to measure the pension benefit obligations for the plans at December 31, 2020 and 2019, were: 2020 2019 Weighted average discount rate 2.72 % 3.43 % Rate of increase in future compensation levels 3.11 % 3.13 % |
Changes in Plan Assets | Changes in plan assets for the years ended December 31, 2020 and 2019 were: 2020 2019 Changes in plan assets Fair value of plan assets at beginning of year $ 2,311,227 $ 2,043,379 Actual return on plan assets 347,560 427,597 Foreign currency exchange rate changes 7,451 9,826 Employer contributions 21,765 15,799 Plan participants’ contributions 1,864 2,246 Benefits paid (144,508) (119,789) Settlements — (67,831) Fair value of plan assets at end of year $ 2,545,359 $ 2,311,227 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | For the years ended December 31, 2020 and 2019, the aggregate projected benefit obligation and aggregate fair value of plan assets for plans with projected benefit obligations in excess of plan assets were as follows: 2020 2019 Aggregate projected benefit obligation $ 328,517 $ 298,565 Aggregate fair value of plan assets $ 45,728 $ 39,672 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | For the years ended December 31, 2020 and 2019, the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets were as follows: 2020 2019 Aggregate accumulated benefit obligation $ 290,271 $ 270,230 Aggregate fair value of plan assets $ 34,164 $ 39,672 |
Asset Allocations for Funded Pension Plans | The asset allocations for the Company’s funded pension plans at December 31, 2020 and 2019, and the target allocation for 2021, by asset category were: Target Allocation Percentage of Plan Assets at December 31 2021 2020 2019 Asset Category Equity securities 68 % 70 % 70 % Debt securities 32 % 30 % 30 % 100 % 100 % 100 % |
Fair Value of Plan Assets by Asset Category | 2020 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 586,196 $ 204,303 $ 381,893 $ — $ — Genuine Parts Company common stock 202,711 — 202,711 — — Other stocks 989,258 — 989,258 — — Debt Securities Short-term investments 30,746 — 30,746 — — Cash and equivalents 18,631 — 18,631 — — Government bonds 257,221 — 192,288 64,933 — Corporate bonds 393,450 — — 393,450 — Asset-backed and mortgage-backed securities 10,161 — — 10,161 — Other-international 39,992 — 37,041 2,951 — Municipal bonds 14,724 — — 14,724 — Mutual funds—fixed income — — — — — Other Cash surrender value of life insurance policies 2,269 — — — 2,269 Total $ 2,545,359 $ 204,303 $ 1,852,568 $ 486,219 $ 2,269 2019 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 527,151 $ 187,500 $ 339,651 $ — $ — Genuine Parts Company common stock 214,418 — 214,418 — — Other stocks 865,078 — 865,070 — 8 Debt Securities Short-term investments 34,516 — 34,516 — — Cash and equivalents 15,833 — 15,833 — — Government bonds 259,939 — 167,394 92,545 — Corporate bonds 255,352 — — 255,352 — Asset-backed and mortgage-backed securities 9,316 — — 9,316 — Other-international 27,903 — 27,903 — — Municipal bonds 10,153 — — 10,153 — Mutual funds—fixed income 89,298 89,298 — — — Other Cash surrender value of life insurance policies 2,270 — — — 2,270 Total $ 2,311,227 $ 276,798 $ 1,664,785 $ 367,366 $ 2,278 |
Amounts Recognized in Consolidated Balance Sheets | The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets at December 31: 2020 2019 Other long-term asset $ 149,182 $ 73,520 Other current liability (17,572) (11,692) Pension and other post-retirement liabilities (265,216) (247,201) $ (133,606) $ (185,373) |
Amounts Recognized In Accumulated Other Comprehensive Loss Table | Amounts recognized in accumulated other comprehensive loss consist of: 2020 2019 Net actuarial loss $ 939,290 $ 952,133 Prior service cost 8,648 9,343 $ 947,938 $ 961,476 |
Expected Cash Flows for Pension Plans | Information about the expected cash flows for the pension plans follows: Employer contribution 2021 (expected) $ 5,724 Expected benefit payments: 2021 $ 136,183 2022 $ 134,054 2023 $ 137,788 2024 $ 140,987 2025 $ 144,405 2026 through 2030 $ 741,572 |
Components of Net Periodic Benefit (Income) Cost | Net periodic benefit income included the following components: 2020 2019 2018 Service cost $ 12,105 $ 9,558 $ 10,410 Interest cost 83,732 97,441 88,247 Expected return on plan assets (154,111) (154,137) (154,006) Amortization of prior service cost (credit) 692 (67) (147) Amortization of actuarial loss 39,613 31,000 39,721 Net periodic benefit income $ (17,969) $ (16,205) $ (15,775) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: 2020 2019 2018 Current year actuarial loss (gain) $ 24,613 $ (33,677) $ 117,867 Recognition of actuarial loss (39,613) (31,000) (39,721) Current year prior service cost — 3,327 — Recognition of prior service (cost) credit (692) 67 147 Recognition of curtailment gain (loss) 435 (155) — Other — (50) — Total recognized in other comprehensive (loss) income $ (15,257) $ (61,488) $ 78,293 Total recognized in net periodic benefit income and other comprehensive (loss) income $ (33,226) $ (77,693) $ 62,518 |
Assumptions Used To Measure Net Periodic Benefit (Income) Cost | The assumptions used in measuring the net periodic benefit income for the plans follow: 2020 2019 2018 Weighted average discount rate 3.43 % 4.36 % 3.70 % Rate of increase in future compensation levels 3.13 % 3.14 % 3.11 % Expected long-term rate of return on plan assets 7.11 % 7.12 % 7.14 % |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The total acquisition date fair value of the consideration transferred for the businesses and of any previously held equity interests was $860,712, net of cash acquired of $16,591, and it consisted of the following: December 31, 2019 Cash $ 732,142 Fair value of 35% investment in Motion Asia Pacific held prior to business combination 123,385 Fair value of other investments held prior to business combination 5,185 Total $ 860,712 The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition dates for the aggregate of these businesses. As of Acquisition Dates Trade accounts receivable $ 148,543 Merchandise inventories 319,579 Prepaid expenses and other current assets 788 Intangible assets 340,799 Deferred tax assets 1,480 Property, plant and equipment 70,958 Operating lease assets 127,470 Other assets 20,318 Total identifiable assets acquired 1,029,935 Current liabilities 122,307 Long-term debt 164,662 Operating lease liabilities 61,626 Deferred tax liabilities 67,081 Other long-term liabilities 132,187 Total liabilities assumed 547,863 Net identifiable assets acquired 482,072 Noncontrolling interests in a subsidiary (1,600) Goodwill 380,240 Net assets acquired $ 860,712 |
Disposal Groups, Including Discontinued Operations | The Company’s results of operations for discontinued operations were: Year Ended December 31, 2020 2019 2018 Net sales $ 846,944 $ 1,870,071 $ 1,903,468 Cost of goods sold 632,007 1,413,485 1,439,436 Gross profit 214,937 456,586 464,032 Operating and non-operating expenses 179,461 476,521 383,058 Loss on disposal 223,928 9,048 — (Loss) income before income taxes (188,452) (28,983) 80,974 Income taxes 4,045 (3,593) 20,034 Net (loss) income from discontinued operations $ (192,497) $ (25,390) $ 60,940 The Company’s assets and liabilities for discontinued operations, by major class, were: December 31, 2019 Assets Trade accounts receivable, net $ 194,903 Merchandise inventories, net 387,307 Prepaid expenses and other current assets 132,041 Other intangible assets, net 76,829 Operating lease assets 80,302 Other assets 91,640 Total assets of discontinued operations $ 963,022 Liabilities Trade accounts payable $ 158,163 Other current liabilities 59,954 Long-term liabilities 68,906 Total liabilities of discontinued operations $ 287,023 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segment Data | 2020 2019 2018 Net sales: Automotive $ 10,860,695 $ 10,993,902 $ 10,533,021 Industrial 5,676,738 6,528,332 6,298,584 Total net sales $ 16,537,433 $ 17,522,234 $ 16,831,605 Segment profit: Automotive $ 867,743 $ 831,951 $ 856,014 Industrial 481,854 521,830 487,360 Total segment profit $ 1,349,597 $ 1,353,781 $ 1,343,374 Interest expense, net (91,048) (91,405) (93,281) Corporate expense (149,754) (140,815) (137,036) Intangible asset amortization (94,962) (92,206) (83,489) Other unallocated costs (634,465) (170,072) (34,930) Income before income taxes from continuing operations $ 379,368 $ 859,283 $ 994,638 The following table presents a summary of the other unallocated costs: 2020 2019 2018 Other unallocated costs: Goodwill impairment charge (1) $ (506,721) $ — $ — Restructuring costs (2) (50,019) (100,023) — Special termination costs (2) — (42,757) — Realized currency and other divestiture losses (3) (11,356) (34,701) — Gain on insurance proceeds related to SPR fire (4) 13,448 — — Gain on equity investment (5) — 38,663 — Inventory adjustment (6) (40,000) — — Transaction and other costs (7) (39,817) (31,254) (34,930) Total other unallocated costs $ (634,465) $ (170,072) $ (34,930) (1) Adjustment reflects a second quarter goodwill impairment charge related to our European reporting unit. (2) Adjustment reflects restructuring and special termination costs related to the 2019 Cost Savings Plan announced in the fourth quarter of 2019. The costs are primarily associated with severance and other employee costs, including a voluntary retirement program, and facility and closure costs related to the consolidation of operations. (3) Adjustment reflects realized currency losses related to divestitures. (4) Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs related to the S.P. Richards Headquarters and Distribution Center. (5) Adjustment relates to the gain recognized upon remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Motion Asia Pacific on July 1, 2019. (6) Adjustment reflects a $40 million increase to cost of goods sold recorded during the quarter ended December 31, 2020 due to the correction of an immaterial error related to the accounting in prior years for consideration received from vendors. (7) Adjustment includes a $17 million loss on investment, $10 million of incremental costs associated with COVID-19 and costs associated with certain divestitures. COVID-19 related costs include incremental costs incurred relating to fees to cancel marketing events and increased cleaning and sanitization materials, among other things. For the three and twelve months ended December 31, 2019, adjustment reflects transaction and other costs related to acquisitions and divestitures. 2020 2019 2018 Assets: Automotive $ 7,858,334 $ 7,376,408 $ 6,248,117 Industrial 1,911,520 1,993,457 1,792,662 Corporate 254,627 527,126 297,282 Goodwill and other intangible assets 3,415,734 3,785,616 3,374,718 Discontinued operations — 963,022 970,261 Total assets $ 13,440,215 $ 14,645,629 $ 12,683,040 Depreciation and amortization: Automotive $ 120,932 $ 122,905 $ 105,238 Industrial 16,315 17,577 14,518 Corporate 40,633 24,575 24,339 Intangible asset amortization 94,962 92,206 83,489 Total depreciation and amortization $ 272,842 $ 257,263 $ 227,584 Capital expenditures: Automotive $ 133,523 $ 227,420 $ 198,910 Industrial 19,287 39,003 21,783 Corporate 692 11,450 5,813 Total capital expenditures $ 153,502 $ 277,873 $ 226,506 Net sales: United States $ 10,863,348 $ 12,226,381 $ 12,083,120 Europe 2,408,913 2,223,498 1,860,912 Canada 1,526,202 1,614,659 1,565,393 Australasia 1,691,190 1,369,361 1,193,148 Mexico 47,780 88,335 129,032 Total net sales $ 16,537,433 $ 17,522,234 $ 16,831,605 Net property, plant and equipment: United States $ 728,802 $ 763,746 $ 693,683 Europe 164,268 153,357 110,184 Canada 102,409 103,320 91,195 Australasia 165,596 147,457 95,578 Mexico 968 5,808 4,014 Total net property, plant and equipment $ 1,162,043 $ 1,173,688 $ 994,654 |
Revenue from External Customers by Geographic Areas | The following table presents disaggregated geographical net sales from contracts with customers by reportable segment. The Company believes this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors: 2020 2019 2018 North America: Automotive $ 7,177,543 $ 7,613,047 $ 7,478,961 Industrial 5,259,787 6,316,328 6,298,584 Total North America $ 12,437,330 $ 13,929,375 $ 13,777,545 Australasia: Automotive $ 1,274,239 $ 1,157,357 $ 1,193,148 Industrial 416,951 212,004 — Total Australasia $ 1,691,190 $ 1,369,361 $ 1,193,148 Europe - Automotive $ 2,408,913 $ 2,223,498 $ 1,860,912 Total net sales $ 16,537,433 $ 17,522,234 $ 16,831,605 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below summarizes costs incurred for the 2019 Cost Savings Plan: 2020 2019 Restructuring costs $ 50,019 $ 100,023 Special termination costs — 42,757 Total costs incurred $ 50,019 $ 142,780 The table below summarizes the activity related to the restructuring costs discussed above. As of December 31, 2020, the current portion of the restructuring liability is included in other current liabilities on the consolidated balance sheet. Severance and other employee costs Facility and closure costs Accelerated operating lease costs Asset impairments Total Liability as of January 1, 2020 $ 72,192 $ 6,639 $ — $ — $ 78,831 Restructuring costs 20,631 16,421 6,724 6,243 50,019 Cash payments (72,365) (13,245) — — (85,610) Non-cash charges — — (6,724) (6,243) (12,967) Translation 936 318 — 1,254 Liability as of December 31, 2020 $ 21,394 $ 10,133 $ — $ — $ 31,527 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following is a summary of the quarterly results of operations for the years ended December 31, 2020 and 2019: Three Months Ended (In thousands, except per share data) March 31, 2020 June 30, 2020 Sept. 30, 2020 Dec. 31, 2020 Net sales $ 4,092,526 $ 3,823,227 $ 4,370,086 $ 4,251,594 Gross profit $ 1,388,178 $ 1,290,487 $ 1,528,066 $ 1,448,110 Net income (loss) from continuing operations $ 122,346 $ (363,501) $ 232,918 $ 171,632 Net income (loss) $ 136,535 $ (564,372) $ 227,531 $ 171,204 Earnings per share from continuing operations: Basic $ 0.84 $ (2.52) $ 1.61 $ 1.19 Diluted $ 0.84 $ (2.52) $ 1.61 $ 1.18 Earnings per share: Basic $ 0.94 $ (3.91) $ 1.58 $ 1.19 Diluted $ 0.94 $ (3.91) $ 1.57 $ 1.18 Three Months Ended (In thousands, except per share data) March 31, 2019 June 30, 2019 Sept. 30, 2019 Dec. 31, 2019 Net sales $ 4,259,129 $ 4,457,931 $ 4,525,284 $ 4,279,890 Gross profit $ 1,392,798 $ 1,482,704 $ 1,505,233 $ 1,478,948 Net income from continuing operations $ 145,684 $ 209,519 $ 212,256 $ 79,016 Net income $ 160,250 $ 224,430 $ 227,487 $ 8,918 Earnings per share from continuing operations: Basic $ 1.00 $ 1.43 $ 1.46 $ 0.54 Diluted $ 0.99 $ 1.43 $ 1.45 $ 0.54 Earnings per share: Basic $ 1.10 $ 1.54 $ 1.56 $ 0.06 Diluted $ 1.09 $ 1.53 $ 1.56 $ 0.06 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, shares in Thousands, Location in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)Location$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of locations (more than) | Location | 10 | |||
Provisions for doubtful accounts | $ 23,577 | $ 13,876 | $ 15,929 | |
Allowance for doubtful accounts receivable | 36,622 | 35,047 | ||
Excess of FIFO costs over stated LIFO value | 524,400 | 531,800 | ||
Reduction in cost of goods sold by the effect of LIFO liquidations | 15,500 | 10,400 | ||
Other asset impairment charges | 6,243 | 5,408 | ||
Cost of goods sold | 10,882,592 | 11,662,551 | 11,311,850 | |
Advertising costs | $ 193,900 | $ 201,600 | $ 203,500 | |
Outstanding options to purchase common shares not included in dilutive share (in shares) | shares | 1,602 | 210 | 1,490 | |
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 72 | $ 72 | $ 72 | |
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 105 | $ 105 | $ 105 | |
Stockholders' equity | $ 3,218,003 | $ 3,695,500 | $ 3,471,991 | $ 3,464,156 |
Level 2 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt instrument, fair value disclosure | 2,680,545 | 2,013,542 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | (11,432) | (5,843) | ||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 3,979,779 | 4,571,860 | 4,341,212 | 4,049,965 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | (11,432) | (5,843) | ||
Accumulated Other Comprehensive Loss | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | (1,036,502) | (1,141,308) | (1,115,078) | $ (852,592) |
Accounting Standards Update 2016-13 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | (11,432) | |||
Accounting Standards Update 2018-02 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 122,526 | |||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | (122,526) | |||
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 4,797 | |||
Accounting Standards Update 2016-02 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 4,797 | |||
Shipping and Handling | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of goods sold | $ 301,900 | $ 303,900 | $ 278,500 | |
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Share-based payment awards granted vesting period range (in years) | 1 year | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Share-based payment awards granted vesting period range (in years) | 5 years | |||
Building and Building Improvements | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property plant and equipment useful life (in years) | 10 years | |||
Building and Building Improvements | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property plant and equipment useful life (in years) | 40 years | |||
Machinery and Equipment | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property plant and equipment useful life (in years) | 5 years | |||
Machinery and Equipment | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property plant and equipment useful life (in years) | 15 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive (Loss) by Component (Details) - USD ($) $ in Thousands | Mar. 07, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | $ 3,674,707 | ||
Other comprehensive income (loss) before reclassifications | 52,387 | $ 36,902 | |
Amounts reclassified from accumulated other comprehensive loss | 52,419 | 59,394 | |
Net current period other comprehensive income (loss) | 104,806 | 96,296 | |
Ending balance | 3,204,796 | 3,674,707 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (704,415) | (626,322) | |
Other comprehensive income (loss) before reclassifications | (17,343) | 22,120 | |
Amounts reclassified from accumulated other comprehensive loss | 28,890 | 22,313 | |
Net current period other comprehensive income (loss) | 11,547 | 44,433 | |
Ending balance | (692,868) | (704,415) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (122,526) | ||
Cash Flow and Net Investment Hedges | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (20,671) | (4,632) | |
Other comprehensive income (loss) before reclassifications | (21,509) | (18,419) | |
Amounts reclassified from accumulated other comprehensive loss | 12,173 | 2,380 | |
Net current period other comprehensive income (loss) | (9,336) | (16,039) | |
Ending balance | (30,007) | (20,671) | |
Cash Flow and Net Investment Hedges | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 0 | ||
Foreign Currency Translation | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (416,222) | (484,124) | |
Other comprehensive income (loss) before reclassifications | 91,239 | 33,201 | |
Amounts reclassified from accumulated other comprehensive loss | 11,356 | 34,701 | |
Net current period other comprehensive income (loss) | 102,595 | 67,902 | |
Ending balance | (313,627) | (416,222) | |
Foreign Currency Translation | Grupo Auto Todo and EIS | |||
AOCI Attributable to Parent [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss | $ 34,701 | ||
Foreign Currency Translation | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 0 | ||
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (1,141,308) | (1,115,078) | |
Ending balance | $ (1,036,502) | (1,141,308) | |
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | $ (122,526) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | ||||
Goodwill, beginning balance | $ 2,293,519 | $ 2,046,820 | ||
Additions | 20,322 | 380,240 | ||
Goodwill, Written off Related to Sale of Business Unit | (115,731) | |||
Impairments | (506,721) | 0 | $ 0 | |
Foreign currency translation | 110,357 | (17,810) | ||
Goodwill, ending balance | 1,917,477 | 2,293,519 | 2,046,820 | |
Other Intangible Assets, Net | ||||
Other intangible assets, net, beginning balance | 1,492,097 | 1,327,898 | ||
Additions | 21,890 | 340,799 | ||
Intangible Asset, Written off Related to Sale of Business Unit | (89,030) | |||
Amortization | (94,962) | (92,206) | (83,489) | |
Impairments | 0 | (2,194) | ||
Foreign currency translation | 79,232 | 6,830 | ||
Other intangible assets, net, ending balance | 1,498,257 | 1,492,097 | 1,327,898 | |
Automotive | ||||
Goodwill | ||||
Goodwill, beginning balance | 1,897,495 | 1,721,823 | ||
Additions | 15,061 | 194,561 | ||
Goodwill, Written off Related to Sale of Business Unit | (294) | |||
Impairments | (506,721) | |||
Foreign currency translation | 99,688 | (18,595) | ||
Goodwill, ending balance | 1,505,523 | 1,897,495 | 1,721,823 | |
Automotive | Europe | ||||
Goodwill | ||||
Impairments | $ (506,721) | |||
Industrial | ||||
Goodwill | ||||
Goodwill, beginning balance | 396,024 | 324,997 | ||
Additions | 5,261 | 185,679 | ||
Goodwill, Written off Related to Sale of Business Unit | (115,437) | |||
Impairments | 0 | |||
Foreign currency translation | 10,669 | 785 | ||
Goodwill, ending balance | $ 411,954 | $ 396,024 | $ 324,997 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Gross Carrying Amounts and Accumulated Amortization Relating to Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,942,125 | $ 1,821,381 | |
Accumulated Amortization | (443,868) | (329,284) | |
Net | 1,498,257 | 1,492,097 | $ 1,327,898 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,578,153 | 1,481,470 | |
Accumulated Amortization | (388,120) | (287,851) | |
Net | 1,190,033 | 1,193,619 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 358,253 | 334,643 | |
Accumulated Amortization | (50,227) | (36,501) | |
Net | 308,026 | 298,142 | |
Non-competition agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 5,719 | 5,268 | |
Accumulated Amortization | (5,521) | (4,932) | |
Net | $ 198 | $ 336 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Other Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for other intangible assets total | $ 94,962 | $ 92,206 | $ 83,489 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2021 | 100,630 | ||
2022 | 100,623 | ||
2023 | 99,984 | ||
2024 | 99,236 | ||
2025 | 98,915 | ||
Estimated other intangible assets amortization expense | $ 499,388 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 2,560,138 | $ 2,374,376 | |
Less: accumulated depreciation | 1,398,095 | 1,200,688 | |
Property, plant and equipment, net | 1,162,043 | 1,173,688 | $ 994,654 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 131,117 | 128,353 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 899,723 | 779,124 | |
Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 1,529,298 | $ 1,466,899 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Oct. 27, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt, bearing variable interest, amount | $ 114,002,000 | $ 554,902,000 | |
Weighted average interest rate on outstanding borrowings | 2.65% | 2.18% | |
Unused letter of credit outstanding due to workers' compensation and insurance reserve | $ 69,899,000 | $ 65,322,000 | |
Revolving Credit Facility | Syndicated Facility, Due October 30, 2025 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,500,000,000 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Debt instrument, stated percentage | 1.875% | ||
Issuance percent | 99.069% |
Debt - Outstanding Amount of Cr
Debt - Outstanding Amount of Credit Facilities (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020AUD ($) | Dec. 31, 2020EUR (€) | |
Line of Credit Facility [Line Items] | ||||
Total unsecured debt | $ 3,431,557,000 | $ 2,690,863,000 | ||
Unamortized debt issuance costs | (5,458,000) | (9,136,000) | ||
Unamortized discounts | 0 | (4,582,000) | ||
Total debt | 3,426,099,000 | 2,677,145,000 | ||
Less debt due within one year | 624,043,000 | 160,531,000 | ||
Long-term debt, excluding current portion | 2,802,056,000 | 2,516,614,000 | ||
Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | 1,100,000,000 | |||
Unsecured debt | 962,500,000 | 0 | ||
Senior Unsecured Notes, Due November 1, 2030 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, stated percentage | 1.875% | 1.875% | 1.875% | |
Long-term debt | 0 | $ 500,000,000 | ||
Series G Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 | |||
Debt instrument, stated percentage | 3.14% | 3.14% | 3.14% | |
Long-term debt | 50,000,000 | $ 50,000,000 | ||
Series F Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 250,000,000 | |||
Debt instrument, stated percentage | 3.74% | 3.74% | 3.74% | |
Long-term debt | 250,000,000 | $ 250,000,000 | ||
Series A Senior Unsecured Notes, Due 2024 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 155,000,000 | |||
Debt instrument, stated percentage | 3.60% | 3.60% | 3.60% | |
Long-term debt | 108,422,000 | $ 119,133,000 | ||
Series J Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 225,000,000 | |||
Debt instrument, stated percentage | 1.90% | 1.90% | 1.90% | |
Long-term debt | 252,000,000 | $ 276,773,000 | ||
Series B Senior Unsecured Notes, Due 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 155,000,000 | |||
Debt instrument, stated percentage | 3.93% | 3.93% | 3.93% | |
Long-term debt | 108,422,000 | $ 119,133,000 | ||
Series H Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 250,000,000 | |||
Debt instrument, stated percentage | 3.74% | 3.74% | 3.74% | |
Long-term debt | 250,000,000 | $ 250,000,000 | ||
Series K Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 250,000,000 | |||
Debt instrument, stated percentage | 2.31% | 2.31% | 2.31% | |
Long-term debt | 280,000,000 | $ 307,525,000 | ||
Series I Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 120,000,000 | |||
Debt instrument, stated percentage | 4.20% | 4.20% | 4.20% | |
Long-term debt | 120,000,000 | $ 120,000,000 | ||
Series A Senior Unsecured Notes, Due 2029 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 50,000,000 | |||
Debt instrument, stated percentage | 2.05% | 2.05% | 2.05% | |
Long-term debt | 56,000,000 | $ 61,505,000 | ||
Series L Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 125,000,000 | |||
Debt instrument, stated percentage | 2.52% | 2.52% | 2.52% | |
Long-term debt | 140,000,000 | $ 153,762,000 | ||
Series B Senior Unsecured Notes, Due 2031 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 100,000,000 | |||
Debt instrument, stated percentage | 2.24% | 2.24% | 2.24% | |
Long-term debt | 112,000,000 | $ 123,010,000 | ||
Series M Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 100,000,000 | |||
Debt instrument, stated percentage | 2.82% | 2.82% | 2.82% | |
Long-term debt | 112,000,000 | $ 123,010,000 | ||
Series C Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 100,000,000 | |||
Debt instrument, stated percentage | 2.45% | 2.45% | 2.45% | |
Long-term debt | 112,000,000 | $ 123,010,000 | ||
Other Unsecured Debt | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured debt | 40,340,000 | 114,002,000 | ||
Syndicated Facility, Due October 30, 2025 | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,500,000,000 | |||
Line of credit, current | 0 | 0 | ||
Syndicated Facility, Due October 30, 2022 | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,500,000,000 | |||
Line of credit, current | $ 477,873,000 | $ 0 | ||
London Interbank Offered Rate (LIBOR) | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, stated percentage | 1.50% | |||
London Interbank Offered Rate (LIBOR) | Syndicated Facility, Due October 30, 2022 | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument basis spread on variable rate | 1.50% |
Debt - Maturity of Credit Facil
Debt - Maturity of Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 162,429 | |
2022 | 1,573 | |
2023 | 250,000 | |
2024 | 395,906 | |
2025 | 0 | |
Thereafter | 1,880,955 | |
Total debt | $ 2,690,863 | $ 3,431,557 |
Accounts Receivable Sales Agr_3
Accounts Receivable Sales Agreement (Details) - USD ($) $ in Thousands | May 29, 2020 | Dec. 31, 2020 | Oct. 29, 2020 |
Receivables [Abstract] | |||
Sale agreement term | 364 days | ||
Sale agreement amount | $ 500,000 | $ 800,000 | $ 300,000 |
Amount held as collateral | 771,000 | ||
Receivables sold to the financial institution and derecognized since inception | 3,928,024 | ||
Cash collected on sold receivables since inception | 3,128,023 | ||
Total principal amount outstanding of receivables sold at period end | $ 800,001 |
Derivatives and Hedging - Balan
Derivatives and Hedging - Balances and Locations of Derivative Instruments (Details) - Designated as Hedging Instrument € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Other Current Liabilities | Cash Flow Hedges | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Notional | $ 0 | $ 800,000 | ||
Balance | 0 | 24,792 | ||
Other Current Liabilities | Net Investment Hedges | Forward contracts | ||||
Derivative [Line Items] | ||||
Notional | 360,990 | 0 | ||
Derivative liability, balance | 19,442 | 0 | ||
Prepaid Expenses and Other Current Assets | Net Investment Hedges | Forward contracts | ||||
Derivative [Line Items] | ||||
Notional | 800,000 | 925,810 | ||
Derivative asset, balance | 7,668 | 39,965 | ||
Long-term Debt | Net Investment Hedges | Foreign currency debt | ||||
Derivative [Line Items] | ||||
Notional | € | € 700,000 | € 700,000 | ||
Balance | $ 861,070 | $ 784,000 |
Derivatives and Hedging - Gains
Derivatives and Hedging - Gains and Losses Related to Designated Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 01, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
De-designated derivative instruments, liabilities | $ 41,000 | $ 48,492 | ||
Gain (Loss) Recognized in AOCL Before Reclassifications, Total | (191,924) | $ 18,653 | $ 36,960 | |
Gain Recognized in Interest Expense For Excluded Components | 27,146 | 20,186 | 6,740 | |
Interest rate contract | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications, Cash Flow Hedges | (29,464) | (21,972) | (7,896) | |
Cross-currency swap | Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications, Net Investment Hedges | 0 | 2,936 | 6,006 | |
Gain Recognized in Interest Expense For Excluded Components | 0 | 2,294 | 6,740 | |
Forward contracts | Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications, Net Investment Hedges | (85,390) | 20,679 | 0 | |
Gain Recognized in Interest Expense For Excluded Components | 27,146 | 17,892 | 0 | |
Foreign currency debt | Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications, Net Investment Hedges | $ (77,070) | $ 17,010 | $ 38,850 |
Leased Properties - Additional
Leased Properties - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Option to extend, amount | $ 60,198 | |
Rent expense | $ 334,000 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 20 years |
Leased Properties - Operating L
Leased Properties - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating lease assets | $ 1,038,877 | $ 995,667 |
Current operating lease liabilities | 270,739 | 255,207 |
Noncurrent operating lease liabilities | 789,294 | 756,519 |
Total operating lease liabilities | $ 1,060,033 | $ 1,011,726 |
Leased Properties - Components
Leased Properties - Components of Operating Leases (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 5 years 4 months 6 days | 5 years 6 months |
Weighted average discount rate | 2.47% | 2.82% |
Leased Properties - Future Leas
Leased Properties - Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 295,841 | |
2022 | 252,303 | |
2023 | 188,357 | |
2024 | 128,278 | |
2025 | 81,625 | |
Thereafter | 186,135 | |
Total undiscounted future minimum lease payments | 1,132,539 | |
Less: Difference between undiscounted lease payments and discounted operating lease liabilities | 72,506 | |
Total operating lease liabilities | $ 1,060,033 | $ 1,011,726 |
Leased Properties - Operating_2
Leased Properties - Operating Lease Costs and Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 313,315 | $ 310,028 |
Operating lease, payments | 323,336 | 311,170 |
Asset obtained in exchange | $ 302,114 | $ 330,103 |
Share-based Compensation - Summ
Share-based Compensation - Summary of SAR Activity (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Stock Appreciation Rights Activity | |
Beginning balance (in shares) | shares | 2,154 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (331) |
Forfeited (in shares) | shares | (36) |
Ending balance (in shares) | shares | 1,787 |
Exercisable, number of shares (in shares) | shares | 1,787 |
Stock Appreciation Rights Weighted Average Exercise Price | |
Beginning balance, Weighted average exercise price ($ per share) | $ / shares | $ 88 |
Granted, Weighted average exercise price ($ per share) | $ / shares | 0 |
Exercised, Weighted average exercise price ($ per share) | $ / shares | 80 |
Forfeited, Weighted average exercise price ($ per share) | $ / shares | 94 |
Ending balance, Weighted average exercise price ($ per share) | $ / shares | 89 |
Exercisable, weighted average exercise price ($ per share) | $ / shares | $ 89 |
Exercisable, weighted-average remaining contractual life (in years) | 3 years 6 months |
Exercisable, weighted average remaining contractual life (in years) | 3 years 6 months |
Aggregate intrinsic value, outstanding | $ | $ 20,515 |
Exercisable, aggregate intrinsic value | $ | $ 20,515 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 22,621 | $ 28,703 | $ 17,737 |
Income tax benefit | 6,108 | 8,700 | 5,600 |
Total compensation cost related to nonvested awards, unrecognized | $ 33,754 | ||
Shares available for future grants (in shares) | 7,601 | ||
Aggregate intrinsic value, exercised | $ 14,417 | 36,200 | 32,600 |
Fair value of shares vested | $ 10,014 | $ 26,200 | $ 20,800 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Company's Nonvested Share Awards (RSUs) Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 677 | |
Granted (in shares) | 426 | |
Vested (in shares) | (89) | |
Forfeited (in shares) | (160) | |
Ending balance (in shares) | 854 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value (in dollars per share) | $ 85 | $ 95 |
Granted, weighted-average grant date fair value (in dollars per share) | 72 | |
Vested, weighted-average grant date fair value (in dollars per share) | 89 | |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 92 | |
Nonvested, weighted average remaining contractual term | 1 year 10 months 24 days | |
Nonvested, aggregate intrinsic value | $ 85,775 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets related to: | ||
Expenses not yet deducted for tax purposes | $ 343,308 | $ 271,358 |
Operating lease liabilities | 289,114 | 281,853 |
Pension liability not yet deducted for tax purposes | 257,526 | 261,909 |
Capital loss | 10,875 | 18,317 |
Net operating loss | 56,028 | 43,932 |
Net deferred tax assets, gross | 956,851 | 877,369 |
Deferred tax liabilities related to: | ||
Employee and retiree benefits | 226,356 | 215,899 |
Inventory | 90,213 | 92,577 |
Operating lease assets | 282,486 | 274,630 |
Other intangible assets | 365,825 | 343,649 |
Property, plant and equipment | 73,333 | 63,518 |
Other | 29,961 | 38,936 |
Deferred tax liabilities, total | 1,068,174 | 1,029,209 |
Net deferred tax liability before valuation allowance | (111,323) | (151,840) |
Valuation allowance | (35,930) | (35,282) |
Total net deferred tax liability | $ (147,253) | $ (187,122) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | $ 213,504 | |
Operating loss carryforwards, not subject to expiration | 156,144 | |
Operating loss carryforwards, subject to expiration | 57,360 | |
Unrecognized tax benefits including interest and penalties | 25,870 | $ 24,347 |
Unrecognized tax benefits that would impact effective tax rate | 21,426 | $ 18,286 |
Undistributed earnings of foreign subsidiaries | $ 520,000 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 706,594 | $ 613,910 | $ 712,951 |
Foreign | (327,226) | 245,373 | 281,687 |
Income before income taxes | $ 379,368 | $ 859,283 | $ 994,638 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 130,680 | $ 162,883 | $ 130,144 |
State | 35,474 | 45,488 | 36,457 |
Foreign | 77,541 | 60,376 | 76,910 |
Deferred: | |||
Federal | 2,048 | (21,617) | 13,295 |
State | 801 | (11,273) | 5,427 |
Foreign | (30,571) | (23,049) | (17,129) |
Income tax expense, total | $ 215,973 | $ 212,808 | $ 245,104 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Statutory rate applied to income | $ 79,667 | $ 180,449 | $ 208,874 |
Plus state income taxes, net of Federal tax benefit | 28,658 | 27,030 | 33,088 |
Taxation of foreign operations, net | (9,072) | (17,663) | (7,862) |
U.S. tax reform - transition tax | 0 | 4,492 | 4,875 |
Non-deductible goodwill impairment tax effect | 106,411 | 0 | 0 |
Book tax basis difference in investment | 0 | 0 | (11,944) |
Valuation allowance | 1,995 | 4,503 | 20,505 |
Other | (731) | 7,782 | (1,395) |
Income tax expense, total | 215,973 | 212,808 | 245,104 |
Domestic Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Deferred tax remeasurement | 0 | 0 | 424 |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Deferred tax remeasurement | $ 9,045 | $ 6,215 | $ (1,461) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 21,461 | $ 18,428 | $ 14,697 |
Additions based on tax positions related to the current year | 3,771 | 3,701 | 2,034 |
Additions for tax positions of prior years | 3,480 | 620 | 4,787 |
Reductions for tax positions for prior years | (1,382) | (965) | (725) |
Reduction for lapse in statute of limitations | (3,765) | 0 | (2,338) |
Settlements | (328) | (323) | (27) |
Balance at end of year | $ 23,237 | $ 21,461 | $ 18,428 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization period of plan assets gains and losses (in years) | 5 years | ||
Benefit obligations | $ 2,678,966 | $ 2,496,600 | $ 2,278,043 |
Total accumulated benefit obligations | 2,649,418 | 2,466,322 | |
Actuarial loss | 218,534 | 246,352 | |
Actual return on plan assets | 347,560 | 427,597 | |
Special termination costs | 0 | 42,757 | |
Fair value of plan assets | $ 2,545,359 | $ 2,311,227 | 2,043,379 |
Genuine Parts Company common stock as a percentage of total plan assets | 8.00% | 9.00% | |
Dividend payments on Genuine Parts Company common stock received by plan | $ 6,378 | $ 6,156 | |
Expected rate of return on plan assets for measuring next fiscal year pension cost or income | 6.88% | ||
Pension benefits expected to be paid from employer assets in next fiscal year | $ 17,574 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | 2,373,884 | 2,228,066 | |
Fair value of plan assets | $ 2,258,246 | 2,051,474 | |
Number of plans | plan | 1 | ||
Matching contribution to be received by pension plan participants of a specified percentage of employee's salary | 100.00% | ||
First percentage of employee's salary out of which matching contribution will be made | 5.00% | ||
Total defined contribution plans expense | $ 54,885 | 64,990 | $ 62,335 |
United States | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss | 175,200 | ||
Actual return on plan assets | 184,200 | ||
Loss from discount rate change | 173,000 | ||
United States | U.S. Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss | 20,300 | ||
Loss from discount rate change | $ 21,400 | ||
Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to be received by pension plan participants of a specified percentage of employee's salary | 100.00% | ||
First percentage of employee's salary out of which matching contribution will be made | 5.00% | ||
Total defined contribution plans expense | $ 4,486 | 4,433 | |
S&P 500 Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 47.00% | ||
Russell Mid Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 5.00% | ||
Russell 2000 Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 7.00% | ||
MSCI EAFE Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 5.00% | ||
DJ Global Moderate Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 5.00% | ||
MSCI Emerging Market Net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 3.00% | ||
BarCap U.S. Govt/Credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 28.00% | ||
Genuine Parts Company common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 202,711 | $ 214,418 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in benefit obligation | |||
Benefit obligation at beginning of year | $ 2,496,600 | $ 2,278,043 | |
Service cost | 12,105 | 9,558 | $ 10,410 |
Interest cost | 83,732 | 97,441 | 88,247 |
Plan participants’ contributions | 1,864 | 2,246 | |
Actuarial loss | 218,534 | 246,352 | |
Foreign currency exchange rate changes | 9,394 | 9,073 | |
Gross benefits paid | (144,508) | (119,789) | |
Plan amendments | 0 | 3,327 | |
Curtailments | (472) | (6,569) | |
Settlements | 0 | (67,831) | |
Special termination costs | 0 | 42,757 | |
Acquired plans | 1,717 | 1,992 | |
Benefit obligation at end of year | $ 2,678,966 | $ 2,496,600 | $ 2,278,043 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Measure Pension Benefit Obligations for Plans (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Weighted average discount rate | 2.72% | 3.43% |
Rate of increase in future compensation levels | 3.11% | 3.13% |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Changes in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in plan assets | ||
Fair value of plan assets at beginning of year | $ 2,311,227 | $ 2,043,379 |
Actual return on plan assets | 347,560 | 427,597 |
Foreign currency exchange rate changes | 7,451 | 9,826 |
Employer contributions | 21,765 | 15,799 |
Plan participants’ contributions | 1,864 | 2,246 |
Benefits paid | (144,508) | (119,789) |
Settlements | 0 | (67,831) |
Fair value of plan assets at end of year | $ 2,545,359 | $ 2,311,227 |
Employee Benefit Plans - Aggreg
Employee Benefit Plans - Aggregate Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Aggregate projected benefit obligation | $ 328,517 | $ 298,565 |
Aggregate fair value of plan assets | $ 45,728 | $ 39,672 |
Employee Benefit Plans - Aggr_2
Employee Benefit Plans - Aggregate Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Aggregate accumulated benefit obligation | $ 290,271 | $ 270,230 |
Aggregate fair value of plan assets | $ 34,164 | $ 39,672 |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocations for Funded Pension Plans (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 100.00% | |
Actual plan asset allocation | 100.00% | 100.00% |
Defined Benefit Plan, Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 68.00% | |
Actual plan asset allocation | 70.00% | 70.00% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 32.00% | |
Actual plan asset allocation | 30.00% | 30.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 2,545,359 | $ 2,311,227 | $ 2,043,379 |
Assets Measured at NAV | 204,303 | 276,798 | |
Common stocks — mutual funds — equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 586,196 | 527,151 | |
Assets Measured at NAV | 204,303 | 187,500 | |
Genuine Parts Company common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 202,711 | 214,418 | |
Assets Measured at NAV | 0 | 0 | |
Other stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 989,258 | 865,078 | |
Assets Measured at NAV | 0 | 0 | |
Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 30,746 | 34,516 | |
Assets Measured at NAV | 0 | 0 | |
Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 18,631 | 15,833 | |
Assets Measured at NAV | 0 | 0 | |
Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 257,221 | 259,939 | |
Assets Measured at NAV | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 393,450 | 255,352 | |
Assets Measured at NAV | 0 | 0 | |
Asset-backed and mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 10,161 | 9,316 | |
Assets Measured at NAV | 0 | 0 | |
Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 39,992 | 27,903 | |
Assets Measured at NAV | 0 | 0 | |
Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 14,724 | 10,153 | |
Assets Measured at NAV | 0 | 0 | |
Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 89,298 | |
Assets Measured at NAV | 0 | 89,298 | |
Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,269 | 2,270 | |
Assets Measured at NAV | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,852,568 | 1,664,785 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common stocks — mutual funds — equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 381,893 | 339,651 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Genuine Parts Company common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 202,711 | 214,418 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 989,258 | 865,070 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 30,746 | 34,516 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 18,631 | 15,833 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 192,288 | 167,394 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed and mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 37,041 | 27,903 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 486,219 | 367,366 | |
Significant Observable Inputs (Level 2) | Common stocks — mutual funds — equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Genuine Parts Company common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Other stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 64,933 | 92,545 | |
Significant Observable Inputs (Level 2) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 393,450 | 255,352 | |
Significant Observable Inputs (Level 2) | Asset-backed and mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 10,161 | 9,316 | |
Significant Observable Inputs (Level 2) | Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,951 | 0 | |
Significant Observable Inputs (Level 2) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 14,724 | 10,153 | |
Significant Observable Inputs (Level 2) | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,269 | 2,278 | |
Significant Unobservable Inputs (Level 3) | Common stocks — mutual funds — equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Genuine Parts Company common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Other stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 8 | |
Significant Unobservable Inputs (Level 3) | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Asset-backed and mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 2,269 | $ 2,270 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Other long-term asset | $ 149,182 | $ 73,520 |
Other current liability | (17,572) | (11,692) |
Pension and other post-retirement liabilities | (265,216) | (247,201) |
Amounts recognized in consolidated balance sheets | $ (133,606) | $ (185,373) |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 939,290 | $ 952,133 |
Prior service cost | 8,648 | 9,343 |
Amounts recognized in accumulated other comprehensive loss | $ 947,938 | $ 961,476 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Cash Flows for Pension Plans (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
Employer contribution 2020 (expected) | $ 5,724 |
Expected benefit payments: | |
2021 | 136,183 |
2022 | 134,054 |
2023 | 137,788 |
2024 | 140,987 |
2025 | 144,405 |
2026 through 2030 | $ 741,572 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit (Income) Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 12,105 | $ 9,558 | $ 10,410 |
Interest cost | 83,732 | 97,441 | 88,247 |
Expected return on plan assets | (154,111) | (154,137) | (154,006) |
Amortization of prior service cost (credit) | 692 | (67) | (147) |
Amortization of actuarial loss | 39,613 | 31,000 | 39,721 |
Net periodic benefit income | $ (17,969) | $ (16,205) | $ (15,775) |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Current year actuarial loss (gain) | $ 24,613 | $ (33,677) | $ 117,867 |
Recognition of actuarial loss | (39,613) | (31,000) | (39,721) |
Current year prior service cost | 0 | 3,327 | 0 |
Recognition of prior service (cost) credit | (692) | 67 | 147 |
Recognition of curtailment gain (loss) | 435 | (155) | 0 |
Other | 0 | (50) | 0 |
Total recognized in other comprehensive (loss) income | (15,257) | (61,488) | 78,293 |
Total recognized in net periodic benefit income and other comprehensive (loss) income | $ (33,226) | $ (77,693) | $ 62,518 |
Employee Benefit Plans - Assu_2
Employee Benefit Plans - Assumptions Used in Measuring Net Periodic Benefit (Income) Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Weighted average discount rate | 3.43% | 4.36% | 3.70% |
Rate of increase in future compensation levels | 3.13% | 3.14% | 3.11% |
Expected long-term rate of return on plan assets | 7.11% | 7.12% | 7.14% |
Guarantees (Detail)
Guarantees (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Total borrowings of the independents and affiliates subject to guarantee | $ 884,721 | |
Guarantees related to borrowings | 81,000 | $ 90,000 |
Guarantees related to borrowings, other long-term liabilities | $ 81,000 | $ 90,000 |
Minimum | ||
Guarantor Obligations [Line Items] | ||
Guaranteed obligations maturity (in years) | 1 year | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Guaranteed obligations maturity (in years) | 6 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Apr. 17, 2017USD ($) | Dec. 31, 2020USD ($)lawsuit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | ||||
Insurance recoveries | $ 13,448 | $ 0 | $ 0 | |
Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Amount awarded to other party | $ 81,500 | |||
Judicial Ruling | ||||
Loss Contingencies [Line Items] | ||||
Amount awarded to other party | $ 77,100 | |||
Product Liability | ||||
Loss Contingencies [Line Items] | ||||
Number of pending claims | lawsuit | 1,819 | |||
Product liability | $ 169,461 | $ 146,230 |
Acquisitions, Divestitures an_3
Acquisitions, Divestitures and Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2019 | Jul. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition | $ 86,384 | $ 732,142 | $ 262,510 | ||||||
Intangible assets | $ 167 | ||||||||
Finite-lived intangible assets acquired | 21,890 | 340,799 | |||||||
Weighted average amortization lives (in years) | 15 years | ||||||||
Other intangible assets acquired | $ 76 | ||||||||
Proceeds from divestitures of businesses | 387,379 | 434,609 | 0 | ||||||
Realized currency and other divestiture losses | 11,356 | 34,701 | 0 | ||||||
Revenue of disposed business | 846,944 | 1,870,071 | 1,903,468 | ||||||
Grupo Auto Todo | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenue of disposed business | 15,900 | 93,000 | |||||||
EIS, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenue of disposed business | 588,031 | $ 817,249 | |||||||
SPR | |||||||||
Business Acquisition [Line Items] | |||||||||
VIE investment amount | $ 67,601 | $ 67,601 | |||||||
Credit loss expense | $ 17,000 | ||||||||
Motion Asia Pacific | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage | 35.00% | ||||||||
Hennig and Parts Point Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenue reported by acquired entity for last annual period | $ 520 | ||||||||
Axis | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenue reported by acquired entity for last annual period | $ 55 | ||||||||
Motion Asia Pacific | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenue reported by acquired entity for last annual period | $ 400,000 | ||||||||
Percentage of voting interests acquired | 65.00% | ||||||||
Equity interest in acquiree, fair value | $ 123,385 | $ 123,385 | |||||||
Remeasurement gain (loss) net | 38,663 | ||||||||
Consideration transferred | 860,712 | ||||||||
Cash acquired from acquisition | $ 16,591 | ||||||||
Intangible assets | $ 340,799 | $ 340,799 | |||||||
Motion Asia Pacific | Weighted Average | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average amortization lives (in years) | 17 years | ||||||||
Motion Asia Pacific | Customer Relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets acquired | $ 304,302 | ||||||||
Weighted average amortization lives (in years) | 16 years 7 months 6 days | ||||||||
Motion Asia Pacific | Trademarks | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets acquired | $ 32,907 | ||||||||
Weighted average amortization lives (in years) | 21 years 8 months 12 days | ||||||||
Motion Asia Pacific | Other Intangible Assets | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets acquired | $ 3,590 | ||||||||
Weighted average amortization lives (in years) | 5 years |
Acquisitions, Divestitures an_4
Acquisitions, Divestitures and Discontinued Operations - Fair Value of the Consideration Transferred (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2020 | |
Motion Asia Pacific | |||
Business Acquisition [Line Items] | |||
Cash | $ 732,142 | ||
Fair value of 35% investment in Motion Asia Pacific held prior to business combination | $ 123,385 | 123,385 | |
Fair value of other investments held prior to business combination | 5,185 | ||
Total | $ 860,712 | ||
Motion Asia Pacific | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 35.00% |
Acquisitions, Divestitures an_5
Acquisitions, Divestitures and Discontinued Operations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Intangible assets | $ 167 | ||
Goodwill | $ 1,917,477 | $ 2,293,519 | $ 2,046,820 |
Motion Asia Pacific | |||
Business Acquisition [Line Items] | |||
Trade accounts receivable | 148,543 | ||
Merchandise inventories | 319,579 | ||
Prepaid expenses and other current assets | 788 | ||
Intangible assets | 340,799 | ||
Deferred tax assets | 1,480 | ||
Property, plant and equipment | 70,958 | ||
Operating lease assets | 127,470 | ||
Other assets | 20,318 | ||
Total identifiable assets acquired | 1,029,935 | ||
Current liabilities | 122,307 | ||
Long-term debt | 164,662 | ||
Operating lease liabilities | 61,626 | ||
Deferred tax liabilities | 67,081 | ||
Other long-term liabilities | 132,187 | ||
Total liabilities assumed | 547,863 | ||
Net identifiable assets acquired | 482,072 | ||
Noncontrolling interests in a subsidiary | (1,600) | ||
Goodwill | 380,240 | ||
Net assets acquired | $ 860,712 |
Acquisitions, Divestitures an_6
Acquisitions, Divestitures and Discontinued Operations - Results of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | |||
Net sales | $ 846,944 | $ 1,870,071 | $ 1,903,468 |
Cost of goods sold | 632,007 | 1,413,485 | 1,439,436 |
Gross profit | 214,937 | 456,586 | 464,032 |
Operating and non-operating expenses | 179,461 | 476,521 | 383,058 |
Loss on divestiture | 223,928 | 9,048 | 0 |
(Loss) income before income taxes | (188,452) | (28,983) | 80,974 |
Income taxes | 4,045 | (3,593) | 20,034 |
Net (loss) income from discontinued operations | $ (192,497) | $ (25,390) | $ 60,940 |
Acquisitions, Divestitures an_7
Acquisitions, Divestitures and Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Trade accounts receivable, net | $ 194,903 | ||
Merchandise inventories, net | 387,307 | ||
Prepaid expenses and other current assets | 132,041 | ||
Other intangible assets, less accumulated amortization | 76,829 | ||
Operating lease assets | 80,302 | ||
Other assets | 91,640 | ||
Total assets of discontinued operations | $ 0 | 963,022 | $ 970,261 |
Liabilities | |||
Trade accounts payable | 158,163 | ||
Other current liabilities | 59,954 | ||
Long-term liabilities | $ 0 | 68,906 | |
Total liabilities of discontinued operations | $ 287,023 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | |||
Income (loss) from continuing operations before income taxes, foreign | $ (327,226) | $ 245,373 | $ 281,687 |
Segment Data - Summary of Segme
Segment Data - Summary of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 4,251,594 | $ 4,370,086 | $ 3,823,227 | $ 4,092,526 | $ 4,279,890 | $ 4,525,284 | $ 4,457,931 | $ 4,259,129 | $ 16,537,433 | $ 17,522,234 | $ 16,831,605 |
Intangible asset amortization | (94,962) | (92,206) | (83,489) | ||||||||
Other unallocated costs | |||||||||||
Goodwill impairment charge | (506,721) | 0 | 0 | ||||||||
Restructuring costs | (50,019) | (100,023) | 0 | ||||||||
Special termination costs | 0 | (42,757) | 0 | ||||||||
Realized currency and other divestiture losses | (11,356) | (34,701) | 0 | ||||||||
Insurance recoveries | 13,448 | 0 | 0 | ||||||||
Gain on equity investment | 0 | 38,663 | 0 | ||||||||
Inventory adjustment | (40,000) | 0 | 0 | ||||||||
Transaction and other costs | (39,817) | (31,254) | (34,930) | ||||||||
Other unallocated costs | (634,465) | (170,072) | (34,930) | ||||||||
Income before income taxes | 379,368 | 859,283 | 994,638 | ||||||||
Incremental expense | 10,000 | ||||||||||
Discontinued operations | 0 | 963,022 | 0 | 963,022 | 970,261 | ||||||
Total assets | 13,440,215 | 14,645,629 | 13,440,215 | 14,645,629 | 12,683,040 | ||||||
Total depreciation and amortization | 272,842 | 257,263 | 227,584 | ||||||||
Total capital expenditures | 153,502 | 277,873 | 226,506 | ||||||||
Total net property, plant and equipment | 1,162,043 | 1,173,688 | 1,162,043 | 1,173,688 | 994,654 | ||||||
SPR | |||||||||||
Other unallocated costs | |||||||||||
Credit loss expense | 17,000 | ||||||||||
Motion Asia Pacific | |||||||||||
Other unallocated costs | |||||||||||
Ownership percentage | 35.00% | ||||||||||
Error Correction, Immaterial | |||||||||||
Other unallocated costs | |||||||||||
Inventory adjustment | 40,000 | 40,000 | |||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 10,863,348 | 12,226,381 | 12,083,120 | ||||||||
Other unallocated costs | |||||||||||
Total net property, plant and equipment | 728,802 | 763,746 | 728,802 | 763,746 | 693,683 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 2,408,913 | 2,223,498 | 1,860,912 | ||||||||
Other unallocated costs | |||||||||||
Total net property, plant and equipment | 164,268 | 153,357 | 164,268 | 153,357 | 110,184 | ||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 1,526,202 | 1,614,659 | 1,565,393 | ||||||||
Other unallocated costs | |||||||||||
Total net property, plant and equipment | 102,409 | 103,320 | 102,409 | 103,320 | 91,195 | ||||||
Australasia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 1,691,190 | 1,369,361 | 1,193,148 | ||||||||
Other unallocated costs | |||||||||||
Total net property, plant and equipment | 165,596 | 147,457 | 165,596 | 147,457 | 95,578 | ||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 47,780 | 88,335 | 129,032 | ||||||||
Other unallocated costs | |||||||||||
Total net property, plant and equipment | 968 | 5,808 | 968 | 5,808 | 4,014 | ||||||
Automotive | |||||||||||
Other unallocated costs | |||||||||||
Goodwill impairment charge | (506,721) | ||||||||||
Automotive | Europe | |||||||||||
Other unallocated costs | |||||||||||
Goodwill impairment charge | $ (506,721) | ||||||||||
Automotive | Australasia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 1,274,239 | 1,157,357 | 1,193,148 | ||||||||
Industrial | |||||||||||
Other unallocated costs | |||||||||||
Goodwill impairment charge | 0 | ||||||||||
Industrial | Australasia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 416,951 | 212,004 | 0 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment profit | 1,349,597 | 1,353,781 | 1,343,374 | ||||||||
Operating Segments | Automotive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 10,860,695 | 10,993,902 | 10,533,021 | ||||||||
Total segment profit | 867,743 | 831,951 | 856,014 | ||||||||
Other unallocated costs | |||||||||||
Total assets | 7,858,334 | 7,376,408 | 7,858,334 | 7,376,408 | 6,248,117 | ||||||
Total depreciation and amortization | 120,932 | 122,905 | 105,238 | ||||||||
Total capital expenditures | 133,523 | 227,420 | 198,910 | ||||||||
Operating Segments | Industrial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 5,676,738 | 6,528,332 | 6,298,584 | ||||||||
Total segment profit | 481,854 | 521,830 | 487,360 | ||||||||
Other unallocated costs | |||||||||||
Total assets | 1,911,520 | 1,993,457 | 1,911,520 | 1,993,457 | 1,792,662 | ||||||
Total depreciation and amortization | 16,315 | 17,577 | 14,518 | ||||||||
Total capital expenditures | 19,287 | 39,003 | 21,783 | ||||||||
Corporate, Non-Segment | |||||||||||
Other unallocated costs | |||||||||||
Total assets | 254,627 | 527,126 | 254,627 | 527,126 | 297,282 | ||||||
Total depreciation and amortization | 40,633 | 24,575 | 24,339 | ||||||||
Total capital expenditures | 692 | 11,450 | 5,813 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense, net | (91,048) | (91,405) | (93,281) | ||||||||
Corporate expense | (149,754) | (140,815) | (137,036) | ||||||||
Intangible asset amortization | (94,962) | (92,206) | (83,489) | ||||||||
Other unallocated costs | |||||||||||
Total assets | $ 3,415,734 | $ 3,785,616 | 3,415,734 | 3,785,616 | 3,374,718 | ||||||
Total depreciation and amortization | $ 94,962 | $ 92,206 | $ 83,489 |
Segment Data - Net Sales by Geo
Segment Data - Net Sales by Geographical Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 4,251,594 | $ 4,370,086 | $ 3,823,227 | $ 4,092,526 | $ 4,279,890 | $ 4,525,284 | $ 4,457,931 | $ 4,259,129 | $ 16,537,433 | $ 17,522,234 | $ 16,831,605 |
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 12,437,330 | 13,929,375 | 13,777,545 | ||||||||
Australasia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,691,190 | 1,369,361 | 1,193,148 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,408,913 | 2,223,498 | 1,860,912 | ||||||||
Automotive | North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 7,177,543 | 7,613,047 | 7,478,961 | ||||||||
Automotive | Australasia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,274,239 | 1,157,357 | 1,193,148 | ||||||||
Industrial | North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 5,259,787 | 6,316,328 | 6,298,584 | ||||||||
Industrial | Australasia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 416,951 | $ 212,004 | $ 0 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring costs | $ 50,019 | $ 100,023 | $ 0 |
Special termination costs | 0 | 42,757 | $ 0 |
Total costs incurred | $ 50,019 | $ 142,780 |
Restructuring - Rollforward of
Restructuring - Rollforward of Restructuring Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 78,831 |
Restructuring costs | 50,019 |
Cash payments | (85,610) |
Non-cash charges | (12,967) |
Translation | 1,254 |
Restructuring reserve, ending balance | 31,527 |
Severance and other employee costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 72,192 |
Restructuring costs | 20,631 |
Cash payments | (72,365) |
Non-cash charges | 0 |
Translation | 936 |
Restructuring reserve, ending balance | 21,394 |
Facility and closure costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 6,639 |
Restructuring costs | 16,421 |
Cash payments | (13,245) |
Non-cash charges | 0 |
Translation | 318 |
Restructuring reserve, ending balance | 10,133 |
Accelerated operating lease costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 0 |
Restructuring costs | 6,724 |
Cash payments | 0 |
Non-cash charges | (6,724) |
Translation | 0 |
Restructuring reserve, ending balance | 0 |
Asset impairments | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | 0 |
Restructuring costs | 6,243 |
Cash payments | 0 |
Non-cash charges | (6,243) |
Translation | |
Restructuring reserve, ending balance | $ 0 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 4,251,594 | $ 4,370,086 | $ 3,823,227 | $ 4,092,526 | $ 4,279,890 | $ 4,525,284 | $ 4,457,931 | $ 4,259,129 | $ 16,537,433 | $ 17,522,234 | $ 16,831,605 |
Gross Profit | 1,448,110 | 1,528,066 | 1,290,487 | 1,388,178 | 1,478,948 | 1,505,233 | 1,482,704 | 1,392,798 | 5,654,841 | 5,859,683 | 5,519,755 |
Net income from continuing operations | 171,632 | 232,918 | (363,501) | 122,346 | 79,016 | 212,256 | 209,519 | 145,684 | 163,395 | 646,475 | 749,534 |
Net income from continuing operations | $ 171,204 | $ 227,531 | $ (564,372) | $ 136,535 | $ 8,918 | $ 227,487 | $ 224,430 | $ 160,250 | $ (29,102) | $ 621,085 | $ 810,474 |
Continuing operations (in dollars per share) | $ 1.19 | $ 1.61 | $ (2.52) | $ 0.84 | $ 0.54 | $ 1.46 | $ 1.43 | $ 1 | $ 1.13 | $ 4.44 | $ 5.11 |
Continuing operations (in dollars per share) | 1.18 | 1.61 | (2.52) | 0.84 | 0.54 | 1.45 | 1.43 | 0.99 | 1.13 | 4.42 | 5.09 |
Basic net income per common share (in dollars per share) | 1.19 | 1.58 | (3.91) | 0.94 | 0.06 | 1.56 | 1.54 | 1.10 | (0.20) | 4.26 | 5.53 |
Diluted net income per common share (in dollars per share) | $ 1.18 | $ 1.57 | $ (3.91) | $ 0.94 | $ 0.06 | $ 1.56 | $ 1.53 | $ 1.09 | $ (0.20) | $ 4.24 | $ 5.50 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||||
Goodwill impairment charge | $ 506,721 | $ 0 | $ 0 | ||
Total costs incurred | $ 50,019 | 50,019 | 142,780 | ||
Inventory adjustment | (40,000) | $ 0 | $ 0 | ||
Error Correction, Immaterial | |||||
Goodwill [Line Items] | |||||
Inventory adjustment | $ 40,000 | 40,000 | |||
Automotive | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charge | $ 506,721 | ||||
Europe | Automotive | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charge | $ 506,721 |