Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, Postal Zip Code | 30339 | |
Entity Address, City or Town | ATLANTA, | |
Entity Address, State or Province | GA | |
City Area Code | 678 | |
Local Phone Number | 934-5000 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | GPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 144,472,216 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000040987 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,117,988 | $ 990,166 |
Trade accounts receivable, less allowance for doubtful accounts (2021 – $39,800; 2020 – $36,622) | 1,809,637 | 1,556,966 |
Merchandise inventories, net | 3,600,658 | 3,506,271 |
Prepaid expenses and other current assets | 1,149,877 | 1,060,360 |
Total current assets | 7,678,160 | 7,113,763 |
Goodwill | 1,885,447 | 1,917,477 |
Other intangible assets, less accumulated amortization | 1,455,333 | 1,498,257 |
Deferred tax assets | 51,907 | 65,658 |
Property, plant and equipment, less accumulated depreciation (2021 – $1,296,920; 2020 – $1,268,170) | 1,165,236 | 1,162,043 |
Operating lease assets | 1,044,127 | 1,038,877 |
Other assets | 663,333 | 644,140 |
Total assets | 13,943,543 | 13,440,215 |
Current liabilities: | ||
Trade accounts payable | 4,479,398 | 4,128,084 |
Current portion of debt | 160,373 | 160,531 |
Dividends payable | 117,714 | 114,043 |
Other current liabilities | 1,578,866 | 1,491,426 |
Total current liabilities | 6,336,351 | 5,894,084 |
Long-term debt | 2,458,020 | 2,516,614 |
Operating lease liabilities | 788,907 | 789,294 |
Pension and other post–retirement benefit liabilities | 254,558 | 265,687 |
Deferred tax liabilities | 206,630 | 212,910 |
Other long-term liabilities | 562,968 | 543,623 |
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 – 2021 – 144,458,057 shares; 2020 – 144,354,335 shares | 144,458 | 144,354 |
Additional paid-in capital | 117,867 | 117,165 |
Accumulated other comprehensive loss | (1,023,760) | (1,036,502) |
Retained earnings | 4,085,998 | 3,979,779 |
Total parent equity | 3,324,563 | 3,204,796 |
Noncontrolling interests in subsidiaries | 11,546 | 13,207 |
Total equity | 3,336,109 | 3,218,003 |
Total liabilities and equity | $ 13,943,543 | $ 13,440,215 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 39,800 | $ 36,622 |
Accumulated depreciation | $ 1,296,920 | $ 1,268,170 |
Preferred stock, par value (usd 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 (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 144,458,057 | 144,354,335 |
Common stock, shares outstanding (in shares) | 144,458,057 | 144,354,335 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 4,464,714 | $ 4,092,526 |
Cost of goods sold | 2,923,899 | 2,704,348 |
Gross profit | 1,540,815 | 1,388,178 |
Operating expenses: | ||
Selling, administrative and other expenses | 1,195,164 | 1,142,697 |
Depreciation and amortization | 72,296 | 67,254 |
Provision for doubtful accounts | 4,909 | 6,519 |
Restructuring costs | 0 | 2,982 |
Total operating expenses | 1,272,369 | 1,219,452 |
Non-operating (income) expense: | ||
Interest expense | 19,062 | 20,965 |
Other | (36,475) | (12,832) |
Total non-operating (income) expense | (17,413) | 8,133 |
Income before income taxes | 285,859 | 160,593 |
Income taxes | 68,149 | 38,247 |
Net income from continuing operations | 217,710 | 122,346 |
Net income from discontinued operations | 0 | 14,189 |
Net income | $ 217,710 | $ 136,535 |
Dividends declared per common share (usd per share) | $ 0.8150 | $ 0.7900 |
Basic earnings per share: | ||
Continuing operations (in dollars per share) | 1.51 | 0.84 |
Discontinued operations (in dollars per share) | 0 | 0.10 |
Basic earnings (loss) per share (in dollars per share) | 1.51 | 0.94 |
Diluted earnings per share: | ||
Continuing operations (in dollars per share) | 1.50 | 0.84 |
Discontinued operations (in dollars per share) | 0 | 0.10 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.50 | $ 0.94 |
Weighted average common shares outstanding (in shares) | 144,413 | 145,052 |
Dilutive effect of stock options and non-vested restricted stock awards (in shares) | 887 | 571 |
Weighted average common shares outstanding - assuming dilution (in shares) | 145,300 | 145,623 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 217,710 | $ 136,535 |
Foreign currency translation adjustments, net of income taxes in 2021 — $21,185; 2020 — $15,560 | (295) | (182,613) |
Cash flow hedge adjustments, net of income taxes in 2021 — $1,384; 2020 — $6,604 | 3,741 | (17,856) |
Pension and postretirement benefit adjustments, net of income taxes in 2021 — $3,421; 2020 — $3,017 | 9,296 | 8,448 |
Other comprehensive income (loss), net of income taxes | 12,742 | (192,021) |
Comprehensive income (loss) | $ 230,452 | $ (55,486) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax | $ 21,185 | $ 15,560 |
Net investment hedge, tax | 1,384 | 6,604 |
Pension and postretirement benefit adjustments, tax | $ 3,421 | $ 3,017 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | 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 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 145,378,158 | |||||||||
Beginning 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 income | 136,535 | 136,535 | 136,535 | |||||||
Other comprehensive loss, net of tax | (192,021) | (192,021) | (192,021) | |||||||
Cash dividends declared | (114,476) | (114,476) | (114,476) | |||||||
Share-based awards exercised, including tax benefit (in shares) | 7,629 | |||||||||
Share-based awards exercised, including tax benefit | (341) | $ 7 | (348) | (341) | ||||||
Share-based compensation | 5,449 | 5,449 | 5,449 | |||||||
Purchase of stock (in shares) | (1,136,444) | |||||||||
Purchase of stock | (95,719) | $ (1,136) | (94,583) | (95,719) | ||||||
Noncontrolling interest activities | (464) | (464) | ||||||||
Ending balance (in shares) at Mar. 31, 2020 | 144,249,343 | |||||||||
Ending balance at Mar. 31, 2020 | 3,423,031 | $ 144,249 | 103,878 | (1,333,329) | 4,487,904 | 3,402,702 | 20,329 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 144,354,335 | |||||||||
Beginning balance at Dec. 31, 2020 | 3,218,003 | $ 6,223 | $ 144,354 | 117,165 | (1,036,502) | 3,979,779 | $ 6,223 | 3,204,796 | $ 6,223 | 13,207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 217,710 | 217,710 | 217,710 | |||||||
Other comprehensive loss, net of tax | 12,742 | 12,742 | 12,742 | |||||||
Cash dividends declared | (117,714) | (117,714) | (117,714) | |||||||
Share-based awards exercised, including tax benefit (in shares) | 103,722 | |||||||||
Share-based awards exercised, including tax benefit | (5,429) | $ 104 | (5,533) | (5,429) | ||||||
Share-based compensation | 6,235 | 6,235 | 6,235 | |||||||
Noncontrolling interest activities | (1,661) | (1,661) | ||||||||
Ending balance (in shares) at Mar. 31, 2021 | 144,458,057 | |||||||||
Ending balance at Mar. 31, 2021 | $ 3,336,109 | $ 144,458 | $ 117,867 | $ (1,023,760) | $ 4,085,998 | $ 3,324,563 | $ 11,546 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per share (usd per share) | $ 0.8150 | $ 0.7900 |
Share-based awards exercised, tax | $ 1,764 | $ 221 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net income | $ 217,710 | $ 136,535 |
Net income from discontinued operations | 0 | 14,189 |
Net income from continuing operations | 217,710 | 122,346 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 72,296 | 67,254 |
Share-based compensation | 6,235 | 4,495 |
Excess tax benefits from share-based compensation | (1,764) | (221) |
Changes in operating assets and liabilities | 6,465 | (166,014) |
Net cash provided by operating activities from continuing operations | 300,942 | 27,860 |
Investing activities: | ||
Purchases of property, plant and equipment | (48,391) | (38,914) |
Proceeds from sale of property, plant and equipment | 16,863 | 3,327 |
Proceeds from divestitures of businesses | 10,345 | 10,442 |
Acquisitions of businesses and other investing activities | (19,489) | (3,833) |
Net cash used in investing activities from continuing operations | (40,672) | (28,978) |
Financing activities: | ||
Proceeds from debt | 31,599 | 1,318,905 |
Payments on debt | (26,767) | (1,057,667) |
Share-based awards exercised | (5,429) | (341) |
Dividends paid | (114,043) | (110,851) |
Purchases of stock | 0 | (95,719) |
Other financing activities | (1,354) | (871) |
Net cash (used in) provided by financing activities from continuing operations | (115,994) | 53,456 |
Cash flows from discontinued operations: | ||
Net cash provided by operating activities from discontinued operations | 0 | 46,200 |
Net cash used in investing activities from discontinued operations | 0 | (6,495) |
Net cash provided by financing activities from discontinued operations | 0 | 0 |
Net cash provided by discontinued operations | 0 | 39,705 |
Effect of exchange rate changes on cash and cash equivalents | (16,454) | (14,566) |
Net increase in cash and cash equivalents | 127,822 | 77,477 |
Cash and cash equivalents at beginning of period | 990,166 | 276,992 |
Cash and cash equivalents at end of period | $ 1,117,988 | $ 354,469 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. 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 condensed consolidated financial statements for all periods presented. Net 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. Additionally, revenue from freight services provided by the Automotive Parts Group are grossed up and recast in continuing operations in each period because those sales are continuing with the discontinued operations after the divestiture. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2020. Accordingly, the unaudited condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its unaudited condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The Company has reclassified certain prior period amounts to conform to the current period presentation. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following table presents a summary of the Company's reportable segment financial information from continuing operations: Three Months Ended March 31, 2021 2020 Net sales: Automotive $ 2,953,165 $ 2,582,685 Industrial 1,511,549 1,509,841 Total net sales $ 4,464,714 $ 4,092,526 Segment profit: Automotive $ 235,678 $ 142,578 Industrial 125,292 113,933 Total segment profit 360,970 256,511 Interest expense, net (18,324) (19,868) Intangible asset amortization (25,544) (22,740) Corporate expense (31,243) (55,061) Other unallocated costs (1) — 1,751 Income before income taxes from continuing operations $ 285,859 $ 160,593 (1) The following table presents a summary of the other unallocated costs: Three Months Ended March 31, 2021 2020 Other unallocated costs: Restructuring costs (2) $ — $ (2,982) Gain on insurance proceeds related to SPR Fire (3) — 12,282 Transaction and other costs (4) — (7,549) Total other unallocated costs $ — $ 1,751 (2) Adjustment reflects restructuring costs related to the execution of the 2019 Cost Savings Plan. 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 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. (4) Adjustment reflects $6,000 of incremental costs associated with COVID-19 for the three months ended March 31, 2020 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. Net sales are disaggregated by geographical region for each of the Company’s reportable segments, as the Company deems this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table presents disaggregated geographical net sales from contracts with customers by reportable segment: Three Months Ended March 31, 2021 2020 North America: Automotive $ 1,862,805 $ 1,731,496 Industrial 1,399,399 1,410,715 Total North America $ 3,262,204 $ 3,142,211 Australasia: Automotive $ 367,869 $ 272,924 Industrial 112,150 99,126 Total Australasia $ 480,019 $ 372,050 Europe – Automotive $ 722,491 $ 578,265 Total net sales $ 4,464,714 $ 4,092,526 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables present the changes in accumulated other comprehensive loss (“AOCL”) by component for the three months ended March 31: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2021 $ (692,868) $ (30,007) $ (313,627) $ (1,036,502) Other comprehensive loss before reclassifications — — (295) (295) Amounts reclassified from accumulated other comprehensive loss 9,296 3,741 — 13,037 Other comprehensive income (loss), net of income taxes 9,296 3,741 (295) 12,742 Ending balance, March 31, 2021 $ (683,572) $ (26,266) $ (313,922) $ (1,023,760) 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 loss before reclassifications — (19,300) (182,613) (201,913) Amounts reclassified from accumulated other comprehensive loss 8,448 1,444 — 9,892 Other comprehensive income (loss), net of income taxes 8,448 (17,856) (182,613) (192,021) Ending balance, March 31, 2020 $ (695,967) $ (38,527) $ (598,835) $ (1,333,329) The AOCL components related to the pension benefits are included in the computation of net periodic benefit income in the employee benefit plans footnote. Generally, tax effects in AOCL are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCL reclassifications are recognized. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting PronouncementsChanges to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and has determined that any recently adopted accounting pronouncements did not have a material impact on the Company's condensed consolidated financial statements and all recent accounting pronouncements not yet adopted are not applicable or are expected to have an immaterial impact on the Company's condensed consolidated financial statements. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit income from the Company's pension plans included the following components for the three months ended March 31: Pension Benefits 2021 2020 Service cost $ 3,041 $ 2,982 Interest cost 17,906 20,925 Expected return on plan assets (38,732) (38,523) Amortization of prior service cost 172 173 Amortization of actuarial loss 12,456 11,122 Net periodic benefit income $ (5,157) $ (3,321) |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, the Company was in compliance with all such covenants. As of March 31, 2021, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $911,865. These loans generally mature over periods from one |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable Sales Agreement | Accounts Receivable Sales Agreement In 2020, the Company entered into an accounts receivable sales agreement (the “A/R Sales Agreement”) to sell short-term receivables from certain customer trade accounts to an unaffiliated financial institution on a revolving basis. 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 condensed consolidated financial statements. The SPE transferred ownership and control of certain receivables that met certain qualifying conditions to the unaffiliated financial institution in exchange for cash. The Company accounts for transactions with the unaffiliated financial institution as sales of financial assets, with the associated receivables derecognized from the Company's condensed consolidated balance sheet. The remaining receivables held by the SPE were pledged to secure the collectability of the sold receivables. The amount of receivables pledged as collateral as of March 31, 2021 and December 31, 2020 is approximately $957,000 and $771,000, respectively. 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 agreement). The future amount of receivables outstanding as sold could decrease, based on the level of activity and other factors. Total principal amount outstanding of receivables sold is approximately $800,000 as of March 31, 2021 and December 31, 2020, respectively. The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of: Three Months Ended March 31, 2021 2020 Receivables sold to the financial institution and derecognized $ 1,927,931 $ — Cash collected on sold receivables $ 1,927,928 $ — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 As of March 31, 2021 the fair value of the Company's senior unsecured notes was approximately $2,617,989, 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. Refer to the Derivatives and Hedging footnote for further information. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 and cash flows 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 flows 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. Cash Flow Hedges In 2020, the Company terminated its interest rate swaps and settled the outstanding balances through cash payments totaling $41,000. The remaining amount in AOCL is being amortized to interest expense on a straight-line basis over the remaining life of the previously hedged instrument. Net Investment Hedges 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 AOCL within foreign currency translation and would only be reclassified to earnings if the European subsidiary were liquidated, or otherwise disposed. 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: March 31, 2021 December 31, 2020 Instrument Balance Sheet Location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 925,810 $ 43,870 $ 800,000 $ 7,668 Forward contracts Other current liabilities $ 235,180 $ 11,556 $ 360,990 $ 19,442 Foreign currency debt Long-term debt € 700,000 $ 820,120 € 700,000 $ 861,070 The tables below presents gains and losses related to designated cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL before Reclassifications Gain Recognized in Interest Expense for Excluded Components 2021 2020 2021 2020 Three Months Ended March 31, Cash flow hedges: Interest rate contracts $ — $ (24,461) $ — $ — Net investment hedges: Forward contracts 37,515 46,848 6,574 6,522 Foreign currency debt 40,950 10,780 — — Total $ 78,465 $ 33,167 $ 6,574 $ 6,522 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters As more fully discussed in the Company's notes to the consolidated financial statements in its 2020 Annual Report on Form 10-K, a jury awarded damages against the Company in a litigated automotive product liability dispute. 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 condensed consolidated financial statements. |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Discontinued Operations | Acquisitions, Divestitures and Discontinued Operations Acquisitions The Company acquired several businesses for approximately $20,340 and $20,874, net of cash acquired, during the three months ended March 31, 2021 and March 31, 2020, respectively. The measurement period is still open for certain businesses acquired in prior periods, but there have been no significant measurement period adjustments from finalizing acquisition accounting during the three months ended March 31, 2021. Divestitures The Company received cash proceeds from divestitures of businesses totaling $10,345 and $10,442 for the three months ended March 31, 2021 and March 31, 2020, respectively. Discontinued Operations Business Products Group During 2020, the Company completed the divestiture of its Business Products Group as part of its 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. This divestiture represented a single plan to exit the Business Products Group segment and was considered a strategic shift that had 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 retains an investment in S.P. Richard's (“SPR”), a business that previously belonged to the Business Products Group, with a carrying value of $70,883, which is included within other assets on the condensed consolidated balance sheets, as of March 31, 2021. The Company maintains an allowance equal to the current expected credit loss based on a consideration of historical experience, current market conditions and reasonable and supportable forecasts related to this investment and other related assets of $17,000. 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 reimbursement from SPR under the terms of a transition services agreement. The Company’s results of operations for discontinued operations were: Three Months Ended March 31, 2020 Net sales $ 467,006 Cost of goods sold 354,393 Gross profit 112,613 Operating and non-operating expenses 90,076 Loss on divestiture 4,185 Income before income taxes 18,352 Income taxes 4,163 Net income from discontinued operations $ 14,189 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareAs more fully discussed in the share-based compensation footnote of the Company’s notes to the consolidated financial statements in its 2020 Annual Report on Form 10-K, 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. Certain outstanding options to purchase are not included in the diluted earnings per share calculation because their inclusion would have been anti-dilutive. There were no anti-dilutive shares outstanding for the three months ended March 31, 2021, as compared to approximately 1,410 for the three months ended March 31, 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. 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 condensed consolidated financial statements for all periods presented. Net 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. Additionally, revenue from freight services provided by the Automotive Parts Group are grossed up and recast in continuing operations in each period because those sales are continuing with the discontinued operations after the divestiture. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2020. Accordingly, the unaudited condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. |
Use of Estimates | The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its unaudited condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The Company has reclassified certain prior period amounts to conform to the current period presentation. |
Recent Accounting Pronouncements | Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and has determined that any recently adopted accounting pronouncements did not have a material impact on the Company's condensed consolidated financial statements and all recent accounting pronouncements not yet adopted are not applicable or are expected to have an immaterial impact on the Company's condensed consolidated financial statements. |
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 March 31, 2021, the Company was in compliance with all such covenants.As of March 31, 2021, there are no material guaranteed loans for which the borrower is experiencing financial difficulty and recovery is expected to be provided substantially through the operation or sale of the collateral. |
Fair Value of Financial Instruments | 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. Refer to the Derivatives and Hedging footnote for further information. 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. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following table presents a summary of the Company's reportable segment financial information from continuing operations: Three Months Ended March 31, 2021 2020 Net sales: Automotive $ 2,953,165 $ 2,582,685 Industrial 1,511,549 1,509,841 Total net sales $ 4,464,714 $ 4,092,526 Segment profit: Automotive $ 235,678 $ 142,578 Industrial 125,292 113,933 Total segment profit 360,970 256,511 Interest expense, net (18,324) (19,868) Intangible asset amortization (25,544) (22,740) Corporate expense (31,243) (55,061) Other unallocated costs (1) — 1,751 Income before income taxes from continuing operations $ 285,859 $ 160,593 (1) The following table presents a summary of the other unallocated costs: Three Months Ended March 31, 2021 2020 Other unallocated costs: Restructuring costs (2) $ — $ (2,982) Gain on insurance proceeds related to SPR Fire (3) — 12,282 Transaction and other costs (4) — (7,549) Total other unallocated costs $ — $ 1,751 (2) Adjustment reflects restructuring costs related to the execution of the 2019 Cost Savings Plan. 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 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. |
Revenue from External Customers by Geographic Areas | The following table presents disaggregated geographical net sales from contracts with customers by reportable segment: Three Months Ended March 31, 2021 2020 North America: Automotive $ 1,862,805 $ 1,731,496 Industrial 1,399,399 1,410,715 Total North America $ 3,262,204 $ 3,142,211 Australasia: Automotive $ 367,869 $ 272,924 Industrial 112,150 99,126 Total Australasia $ 480,019 $ 372,050 Europe – Automotive $ 722,491 $ 578,265 Total net sales $ 4,464,714 $ 4,092,526 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following tables present the changes in accumulated other comprehensive loss (“AOCL”) by component for the three months ended March 31: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2021 $ (692,868) $ (30,007) $ (313,627) $ (1,036,502) Other comprehensive loss before reclassifications — — (295) (295) Amounts reclassified from accumulated other comprehensive loss 9,296 3,741 — 13,037 Other comprehensive income (loss), net of income taxes 9,296 3,741 (295) 12,742 Ending balance, March 31, 2021 $ (683,572) $ (26,266) $ (313,922) $ (1,023,760) 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 loss before reclassifications — (19,300) (182,613) (201,913) Amounts reclassified from accumulated other comprehensive loss 8,448 1,444 — 9,892 Other comprehensive income (loss), net of income taxes 8,448 (17,856) (182,613) (192,021) Ending balance, March 31, 2020 $ (695,967) $ (38,527) $ (598,835) $ (1,333,329) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Income for the Pension Plans | Net periodic benefit income from the Company's pension plans included the following components for the three months ended March 31: Pension Benefits 2021 2020 Service cost $ 3,041 $ 2,982 Interest cost 17,906 20,925 Expected return on plan assets (38,732) (38,523) Amortization of prior service cost 172 173 Amortization of actuarial loss 12,456 11,122 Net periodic benefit income $ (5,157) $ (3,321) |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: Three Months Ended March 31, 2021 2020 Receivables sold to the financial institution and derecognized $ 1,927,931 $ — Cash collected on sold receivables $ 1,927,928 $ — |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: March 31, 2021 December 31, 2020 Instrument Balance Sheet Location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 925,810 $ 43,870 $ 800,000 $ 7,668 Forward contracts Other current liabilities $ 235,180 $ 11,556 $ 360,990 $ 19,442 Foreign currency debt Long-term debt € 700,000 $ 820,120 € 700,000 $ 861,070 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The tables below presents gains and losses related to designated cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL before Reclassifications Gain Recognized in Interest Expense for Excluded Components 2021 2020 2021 2020 Three Months Ended March 31, Cash flow hedges: Interest rate contracts $ — $ (24,461) $ — $ — Net investment hedges: Forward contracts 37,515 46,848 6,574 6,522 Foreign currency debt 40,950 10,780 — — Total $ 78,465 $ 33,167 $ 6,574 $ 6,522 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The tables below presents gains and losses related to designated cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL before Reclassifications Gain Recognized in Interest Expense for Excluded Components 2021 2020 2021 2020 Three Months Ended March 31, Cash flow hedges: Interest rate contracts $ — $ (24,461) $ — $ — Net investment hedges: Forward contracts 37,515 46,848 6,574 6,522 Foreign currency debt 40,950 10,780 — — Total $ 78,465 $ 33,167 $ 6,574 $ 6,522 |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Disposal Groups, Including Discontinued Operations | The Company’s results of operations for discontinued operations were: Three Months Ended March 31, 2020 Net sales $ 467,006 Cost of goods sold 354,393 Gross profit 112,613 Operating and non-operating expenses 90,076 Loss on divestiture 4,185 Income before income taxes 18,352 Income taxes 4,163 Net income from discontinued operations $ 14,189 |
Segment Information - Operating
Segment Information - Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 4,464,714 | $ 4,092,526 |
Income before income taxes | 285,859 | 160,593 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4,464,714 | 4,092,526 |
Operating profit | 360,970 | 256,511 |
Operating Segments | Automotive Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,953,165 | 2,582,685 |
Operating profit | 235,678 | 142,578 |
Operating Segments | Industrial Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,511,549 | 1,509,841 |
Operating profit | 125,292 | 113,933 |
Other | ||
Segment Reporting Information [Line Items] | ||
Interest expense, net | (18,324) | (19,868) |
Intangible asset amortization | (25,544) | (22,740) |
Corporate expense | (31,243) | (55,061) |
Other unallocated amounts | $ 0 | $ 1,751 |
Segment Information - Summary o
Segment Information - Summary of Unallocated Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Restructuring costs | $ 0 | $ (2,982) |
Incremental expense, COVID-19 | 6,000 | |
Other | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | 0 | (2,982) |
Gain on insurance proceeds related to SPR Fire | 0 | 12,282 |
Transaction and other costs | 0 | (7,549) |
Total other unallocated costs | $ 0 | $ 1,751 |
Segment Information - Disaggreg
Segment Information - Disaggregated Geographical Revenue by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,464,714 | $ 4,092,526 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,262,204 | 3,142,211 |
Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 480,019 | 372,050 |
Automotive Parts | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,862,805 | 1,731,496 |
Automotive Parts | Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 367,869 | 272,924 |
Automotive Parts | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 722,491 | 578,265 |
Industrial Parts | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,399,399 | 1,410,715 |
Industrial Parts | Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 112,150 | $ 99,126 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | $ 3,204,796 | |
Other comprehensive loss before reclassifications | (295) | $ (201,913) |
Amounts reclassified from accumulated other comprehensive loss | 13,037 | 9,892 |
Other comprehensive income (loss), net of income taxes | 12,742 | (192,021) |
Ending balance | 3,324,563 | |
Pension and Other Post-Retirement Benefits | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (692,868) | (704,415) |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 9,296 | 8,448 |
Other comprehensive income (loss), net of income taxes | 9,296 | 8,448 |
Ending balance | (683,572) | (695,967) |
Net Investment Hedge | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (30,007) | (20,671) |
Other comprehensive loss before reclassifications | 0 | (19,300) |
Amounts reclassified from accumulated other comprehensive loss | 3,741 | 1,444 |
Other comprehensive income (loss), net of income taxes | 3,741 | (17,856) |
Ending balance | (26,266) | (38,527) |
Foreign Currency Translation | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (313,627) | (416,222) |
Other comprehensive loss before reclassifications | (295) | (182,613) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income (loss), net of income taxes | (295) | (182,613) |
Ending balance | (313,922) | (598,835) |
Total | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (1,036,502) | (1,141,308) |
Ending balance | $ (1,023,760) | $ (1,333,329) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Income for the Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 3,041 | $ 2,982 |
Interest cost | 17,906 | 20,925 |
Expected return on plan assets | (38,732) | (38,523) |
Amortization of prior service cost | 172 | 173 |
Amortization of actuarial loss | 12,456 | 11,122 |
Net periodic benefit income | $ (5,157) | $ (3,321) |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Guarantor Obligations [Line Items] | |
Total borrowings of the independents and affiliates subject to guarantee | $ 911,865 |
Guarantees related to borrowings, other assets | 82,000 |
Guarantor obligation, current carrying value | $ 82,000 |
Minimum | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity (in years) | 1 year |
Maximum | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity (in years) | 6 years |
Accounts Receivable Sales Agr_3
Accounts Receivable Sales Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Sale agreement term | 364 days | |
Amount held as collateral | $ 957,000 | $ 771 |
Sale agreement amount | 800,000 | |
Receivables sold to the financial institution and derecognized | 1,927,931 | 0 |
Cash collected on sold receivables | 1,927,928 | 0 |
Principal amount outstanding of receivables sold at period end | $ 800,000 | $ 800,000 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | $ 2,617,989 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Location and Fair Value Amounts of Derivative Instruments (Details) € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
De-designated derivative instruments, liabilities | $ 41 | |||
Net investment hedges | Designated as hedging relationship | Prepaid expenses and other current assets | Forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 925,810 | 800,000 | ||
Derivative asset, balance | 43,870 | 7,668 | ||
Net investment hedges | Designated as hedging relationship | Other current liabilities | Forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | 235,180 | 360,990 | ||
Derivative liability, balance | 11,556 | 19,442 | ||
Net investment hedges | Designated as hedging relationship | Long-term debt | Foreign currency debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Nonderivative notional amount | € | € 700,000 | € 700,000 | ||
Nonderivative balance | $ 820,120 | $ 861,070 |
Derivatives and Hedging - Sch_2
Derivatives and Hedging - Schedule of (Losses) Gains Related to Designated Cash Flow Hedges and Net Investment Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCL before Reclassifications | $ 78,465 | $ 33,167 |
Gain Recognized in Interest Expense for Excluded Components | 6,574 | 6,522 |
Cash flow hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCL before Reclassifications | 0 | (24,461) |
Net investment hedges | Forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCL before Reclassifications | 37,515 | 46,848 |
Gain Recognized in Interest Expense for Excluded Components | 6,574 | 6,522 |
Net investment hedges | Foreign currency debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCL before Reclassifications | $ 40,950 | $ 10,780 |
Acquisitions, Divestitures an_3
Acquisitions, Divestitures and Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Payments to acquire businesses, net | $ 20,340 | $ 20,874 |
Proceeds from divestitures of businesses | 10,345 | $ 10,442 |
SPR | ||
Business Acquisition [Line Items] | ||
Noncontrolling interest in variable interest entity | 70,883 | |
Credit loss expense | $ 17,000 |
Acquisitions, Divestitures an_4
Acquisitions, Divestitures and Discontinued Operations - Results of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Combinations [Abstract] | ||
Net sales | $ 467,006 | |
Cost of goods sold | 354,393 | |
Gross profit | 112,613 | |
Operating and non-operating expenses | 90,076 | |
Loss on divestiture | 4,185 | |
Income before income taxes | 18,352 | |
Income taxes | 4,163 | |
Net income from discontinued operations | $ 0 | $ 14,189 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 1,410,000 |