Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 20, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 18.7 | ||
Entity Common Stock, Shares Outstanding | 140,807,089 | ||
Documents Incorporated by Reference | Specifically identified portions of the company’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held on May 1, 2023 are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000040987 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 653,463 | $ 714,701 |
Trade accounts receivable, net | 2,188,868 | 1,797,955 |
Merchandise inventories, net | 4,441,649 | 3,889,919 |
Prepaid expenses and other current assets | 1,532,759 | 1,353,847 |
Total current assets | 8,816,739 | 7,756,422 |
Goodwill | 2,588,113 | 1,915,307 |
Other intangible assets, net | 1,812,510 | 1,406,401 |
Operating lease assets | 1,104,678 | 1,053,689 |
Other assets | 847,325 | 985,884 |
Property, plant and equipment, net | 1,326,014 | 1,234,399 |
Total assets | 16,495,379 | 14,352,102 |
Current liabilities: | ||
Trade accounts payable | 5,456,550 | 4,804,939 |
Current portion of debt | 252,029 | 0 |
Other current liabilities | 1,851,340 | 1,660,768 |
Dividends payable | 126,191 | 115,876 |
Total current liabilities | 7,686,110 | 6,581,583 |
Long-term debt | 3,076,794 | 2,409,363 |
Operating lease liabilities | 836,019 | 789,175 |
Pension and other post-retirement benefit liabilities | 197,879 | 265,134 |
Deferred tax liabilities | 391,163 | 280,778 |
Other long-term liabilities | 502,967 | 522,779 |
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 - 2022 - 140,941,649 shares and 2021 - 142,180,683 shares | 140,941 | 142,181 |
Additional paid-in capital | 140,324 | 119,975 |
Accumulated other comprehensive loss | (1,032,542) | (857,739) |
Retained earnings | 4,541,640 | 4,086,325 |
Total parent equity | 3,790,363 | 3,490,742 |
Noncontrolling interests in subsidiaries | 14,084 | 12,548 |
Total equity | 3,804,447 | 3,503,290 |
Total liabilities and equity | $ 16,495,379 | $ 14,352,102 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 140,941,649 | 142,180,683 |
Common stock, shares outstanding (in shares) | 140,941,649 | 142,180,683 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 22,095,973 | $ 18,870,510 | $ 16,537,433 |
Cost of goods sold | 14,355,869 | 12,236,374 | 10,882,592 |
Gross profit | 7,740,104 | 6,634,136 | 5,654,841 |
Operating expenses: | |||
Selling, administrative and other expenses | 5,758,295 | 5,162,506 | 4,386,739 |
Depreciation and amortization | 347,819 | 290,971 | 272,842 |
Provision for doubtful accounts | 19,791 | 17,739 | 23,577 |
Restructuring costs | 0 | 0 | 50,019 |
Goodwill impairment charge | 0 | 0 | 506,721 |
Total operating expenses | 6,125,905 | 5,471,216 | 5,239,898 |
Non-operating expenses (income): | |||
Interest expense, net | 73,887 | 62,150 | 91,048 |
Other | (32,290) | (99,576) | (55,473) |
Total non-operating expenses (income) | 41,597 | (37,426) | 35,575 |
Income before income taxes | 1,572,602 | 1,200,346 | 379,368 |
Income taxes | 389,901 | 301,556 | 215,973 |
Net income from continuing operations | 1,182,701 | 898,790 | 163,395 |
Net loss from discontinued operations | 0 | 0 | (192,497) |
Net income (loss) | $ 1,182,701 | $ 898,790 | $ (29,102) |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 8.36 | $ 6.27 | $ 1.13 |
Discontinued operations (in dollars per share) | 0 | 0 | (1.33) |
Basic earnings (loss) per share (in dollars per share) | 8.36 | 6.27 | (0.20) |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 8.31 | 6.23 | 1.13 |
Discontinued operations (in dollars per share) | 0 | 0 | (1.33) |
Diluted earnings (loss) per share (in dollars per share) | $ 8.31 | $ 6.23 | $ (0.20) |
Weighted average common shares outstanding (in shares) | 141,468 | 143,435 | 144,474 |
Dilutive effect of stock options and nonvested restricted stock awards (in shares) | 854 | 786 | 641 |
Weighted average common shares outstanding — assuming dilution (in shares) | 142,322 | 144,221 | 145,115 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,182,701 | $ 898,790 | $ (29,102) |
Foreign currency translation adjustments | (143,890) | (65,843) | 102,595 |
Cash flow hedge adjustments, net of income taxes in 2022 — $4,612, 2021 — $5,535, and 2020 — $3,453 | 12,470 | 14,965 | (9,336) |
Pension and postretirement benefit adjustments, net of income taxes of 2022 — $15,846, 2021 — $84,650, and 2020 — $4,639 | (43,383) | 229,641 | 11,547 |
Other comprehensive (loss) income, net of tax | (174,803) | 178,763 | 104,806 |
Comprehensive income | $ 1,007,898 | $ 1,077,553 | $ 75,704 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Cash flow hedge adjustment, tax | $ 4,612 | $ 5,535 | $ 3,453 |
Pension and postretirement benefit adjustments, tax | $ (15,846) | $ 84,650 | $ 4,639 |
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 | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Total Parent Equity | Total Parent Equity Cumulative Effect, Period of Adoption, Adjustment | Non- controlling Interests in Subsidiaries |
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 (loss) | (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) | (95,078) | (96,215) | ||||||
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 | $ 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] | ||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2019-12 [Member] | |||||||||
Net income (loss) | $ 898,790 | 898,790 | 898,790 | |||||||
Other comprehensive (loss) income, net of tax | 178,763 | 178,763 | 178,763 | |||||||
Cash dividends declared | (467,482) | (467,482) | (467,482) | |||||||
Share-based awards exercised, including tax benefit (in shares) | 440,667 | |||||||||
Share-based awards exercised, including tax benefit | (22,346) | $ 441 | (22,787) | (22,346) | ||||||
Share-based compensation | 25,597 | 25,597 | 25,597 | |||||||
Purchase of stock (in shares) | (2,614,319) | |||||||||
Purchase of stock | (333,599) | $ (2,614) | (330,985) | (333,599) | ||||||
Noncontrolling interest activities | (659) | (659) | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 142,180,683 | |||||||||
Ending balance at Dec. 31, 2021 | 3,503,290 | $ 142,181 | 119,975 | (857,739) | 4,086,325 | 3,490,742 | 12,548 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 1,182,701 | 1,182,701 | 1,182,701 | |||||||
Other comprehensive (loss) income, net of tax | (174,803) | (174,803) | (174,803) | |||||||
Cash dividends declared | (506,232) | (506,232) | (506,232) | |||||||
Share-based awards exercised, including tax benefit (in shares) | 333,185 | |||||||||
Share-based awards exercised, including tax benefit | (17,377) | $ 332 | (17,709) | (17,377) | ||||||
Share-based compensation | 38,058 | 38,058 | 38,058 | |||||||
Purchase of stock (in shares) | (1,572,219) | |||||||||
Purchase of stock | (222,726) | $ (1,572) | (221,154) | (222,726) | ||||||
Noncontrolling interest activities | 1,536 | 1,536 | ||||||||
Ending balance (in shares) at Dec. 31, 2022 | 140,941,649 | |||||||||
Ending balance at Dec. 31, 2022 | $ 3,804,447 | $ 140,941 | $ 140,324 | $ (1,032,542) | $ 4,541,640 | $ 3,790,363 | $ 14,084 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 3.58 | $ 3.26 | $ 3.16 |
Income tax benefit | $ 5,495 | $ 7,076 | $ 677 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) | $ 1,182,701 | $ 898,790 | $ (29,102) |
Net loss from discontinued operations | 0 | 0 | (192,497) |
Net income from continuing operations | 1,182,701 | 898,790 | 163,395 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 347,819 | 290,971 | 272,842 |
Deferred income taxes | 2,220 | 31,676 | (27,722) |
Share-based compensation | 38,058 | 25,597 | 22,621 |
Gain on sale of real estate | (102,803) | 0 | 0 |
Goodwill impairment charge | 0 | 0 | 506,721 |
Other operating activities | 18,377 | 22,575 | 23,248 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (244,371) | (258,994) | 957,514 |
Merchandise inventories, net | (380,420) | (329,237) | 58,462 |
Trade accounts payable | 676,406 | 777,318 | 89,350 |
Other assets and liabilities | (71,016) | (200,411) | (51,909) |
Net cash provided by operating activities from continuing operations | 1,466,971 | 1,258,285 | 2,014,522 |
Investing activities: | |||
Purchases of property, plant and equipment | (339,632) | (266,136) | (153,502) |
Proceeds from sale of property, plant and equipment | 145,007 | 26,549 | 18,064 |
Proceeds from divestitures of businesses | 33,604 | 17,738 | 387,379 |
Proceeds from settlement of net investment hedge | 158,441 | 0 | 0 |
Acquisitions and other investing activities | (1,681,660) | (284,315) | (69,173) |
Net cash (used in) provided by investing activities from continuing operations | (1,684,240) | (506,164) | 182,768 |
Financing activities: | |||
Proceeds from debt | 5,108,641 | 892,694 | 2,638,014 |
Payments on debt | (4,147,773) | (1,053,423) | (3,533,017) |
Share-based awards exercised | (17,377) | (22,346) | (4,120) |
Dividends paid | (495,917) | (465,649) | (453,277) |
Purchase of stock | (222,726) | (333,599) | (96,215) |
Other financing activities | (19,747) | (7,209) | (65,150) |
Net cash provided by (used in) financing activities from continuing operations | 205,101 | (989,532) | (1,513,765) |
Cash flows from discontinued operations: | |||
Net cash flows provided by operating activities from discontinued operations | 0 | 0 | 5,039 |
Net cash used in investing activities from discontinued operations | 0 | 0 | (11,131) |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 0 |
Net cash (used in) provided by discontinued operations | 0 | 0 | (6,092) |
Effect of exchange rate changes on cash and cash equivalents | (49,070) | (38,054) | 35,741 |
Net (decrease) increase in cash and cash equivalents | (61,238) | (275,465) | 713,174 |
Cash and cash equivalents at beginning of year | 714,701 | 990,166 | 276,992 |
Cash and cash equivalents at end of year | 653,463 | 714,701 | 990,166 |
Supplemental disclosures of cash flow information | |||
Income taxes | 362,859 | 305,326 | 223,019 |
Interest | $ 73,368 | $ 65,732 | $ 91,344 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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. We serve a diverse customer base through a network of more than 10,600 locations throughout North America, Australasia, and Europe and, therefore, have limited exposure from credit losses to any particular customer, region, or industry segment. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. We have reclassified certain prior period amounts to conform to the current period presentation. We have evaluated subsequent events through the date the financial statements were issued. On June 30, 2020, we completed the divestiture of our Business Products Group. Refer to the Acquisitions, Divestitures and Discontinued Operations Footnote for more information. Our 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 from discontinued operations 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 our accounts. The net income attributable to noncontrolling interests is not material to our 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. Revenue Recognition We primarily recognize 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. 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. We do not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when we transfer 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 We generate 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 wholesale 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 to our customers are considered costs to fulfill a contract and are included in selling, administrative and other expenses in the period they are incurred. Other Revenues We offer 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 Our products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits or rebates. We estimate variable consideration based on historical experience to determine the expected amount to which we will be entitled in exchange for transferring the promised goods or services to a customer. We recognize 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 our 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 We consider 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 We evaluate the collectability of trade accounts receivable based on a combination of factors. We estimate 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. We will periodically adjust this estimate when we become 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 we have a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. For the years ended December 31, 2022, 2021, and 2020, we recorded provisions for doubtful accounts of approximately $20 million, $18 million, and $24 million, respectively. At December 31, 2022 and 2021, the allowance for doubtful accounts was approximately $54 million and $44 million, 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 weighted average method for non-U.S. and certain other inventories. If the FIFO method had been used in place of LIFO, cost would have been approximately $835 million and $628 million higher than reported at December 31, 2022 and 2021, respectively. Reductions in certain industrial parts inventories resulted in liquidations of LIFO inventory layers, which reduced cost of goods sold by immaterial amounts in 2021 and 2020. There were no liquidations of LIFO inventory layers in 2022. We identify slow moving or obsolete inventories and estimate appropriate provisions related thereto. Historically, these losses have not been significant as the vast majority of our inventories are not highly susceptible to obsolescence and are eligible for return under various vendor return programs. While we have no reason to believe our inventory return privileges will be discontinued in the future, our risk of loss associated with obsolete or slow moving inventories would increase if such were to occur. We enter into agreements at the beginning of each year with many of our vendors that provide for inventory purchase incentives. Generally, we earn inventory purchase incentives upon achieving specified volume purchasing levels or other criteria. We accrue for the receipt of these incentives as part of our inventory cost based on cumulative purchases of inventory to date and projected inventory purchases through the end of the year. While management believes we will continue to receive consideration from vendors in 2023 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, debt securities, and income and other taxes receivable. Goodwill We review our goodwill annually for impairment in the fourth quarter, or sooner if circumstances indicate that the carrying amount may exceed fair value. We test 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, we 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, we generally elect to first assess 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 we elect not to perform a qualitative assessment or conclude from our 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, we must perform a quantitative test to evaluate goodwill impairment. To perform a quantitative test, we calculate the fair value of the reporting unit and compare that amount to the reporting unit's carrying value. We typically calculate 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 EBITDA margins, the estimated weighted average cost of capital, working capital and terminal value. We use inputs and assumptions we believe are consistent with those a hypothetical marketplace participant would use. We recognize 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 our annual goodwill impairment testing. Long-Lived Assets Other Than Goodwill We assess our 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, we project 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, 2022, 2021, and 2020 we recognized losses related to impairments and disposals of $17 million, $61 million, and $6 million, respectively. (Refer to the Goodwill and Other Intangible Assets Footnote and the Property, Plant and Equipment Footnote for more information on the losses that occurred in 2022 and 2021, respectively). Other Assets Other assets consist primarily of cash surrender value of life insurance policies, 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, allowances 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 allowances for sales returns expected after the next year, guarantee obligations, accrued taxes and other non-current obligations. Self-Insurance We are self-insured for the majority of our group health insurance costs. A reserve for claims incurred but not reported is developed by analyzing historical claims data provided by our 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 our workers’ compensation program. We carry high deductible policies for a majority of these liabilities. We record our reserves based on an analysis performed by an independent actuary. The analysis involves calculating loss development factors and applying them to reserves supplied by our insurance providers. While we believe the assumptions used in these calculations are appropriate, significant changes in actual experience or our assumptions could materially affect the worker’s compensation costs and reserves recorded. Business Combinations When we acquire businesses, we apply the acquisition method of accounting and recognize 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 us to record provisional amounts for any items for which the accounting is not complete at the end of a reporting period. We 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 our financial condition and results of operations. We typically measure customer relationships 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 and EBITDA Margin). 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, we could record impairment charges. In addition, we have estimated the economic lives of certain acquired tangible and intangible assets and these lives are used to calculate depreciation and amortization expense. If our 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 We accrue 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 we will incur a loss and the amount of the loss can be reasonably estimated. The product liability amount reflects our reasonable estimate of losses based upon currently known facts. To calculate the liability, we estimate potential losses relating to pending claims and also estimates the likelihood of additional, similar claims being filed against us in the future. To estimate potential losses on claims that could be filed in the future, we consider claims pending against us, 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. We use an actuarial specialist to assist with measuring our 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, 2022 and 2021, the fair value of our senior unsecured notes was approximately $2.9 billion and $2.5 billion, 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. Fair value measurement using unobservable inputs is inherently uncertain, and the use of different methodologies or assumptions to determine the fair value instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used since December 31, 2021. Derivatives and Hedging We are exposed to various risks arising from business operations and market conditions, including fluctuations in interest rates and certain foreign currencies. When deemed appropriate, we use 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 our 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. We have not historically incurred, and do not expect to incur in the future, any losses as a result of counterparty default related to derivative instruments. We formally document 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. We also formally assess, 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 $407 million, $350 million, and $302 million, for the years ended December 31, 2022, 2021, and 2020, respectively. Advertising Costs Advertising costs are expensed as incurred and totaled $236 million, $211 million, and $194 million in the years ended December 31, 2022, 2021, and 2020, respectively. Restructuring Costs In October 2019, we approved certain restructuring actions (the "2019 Cost Savings Plan") across our 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. We executed a voluntary retirement program for our U.S. and Canadian subsidiaries in the fourth quarter of 2019 in connection with this plan. We incurred $50 million in costs for the plan in the year ended December 31, 2020. No further material costs have been incurred. Accounting for Legal Costs We expense legal costs related to loss contingencies as they are incurred. Share-Based Compensation We maintain 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 our 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 our 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 We account 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, we consider all available positive and negative evidence including projected future taxable income, future reversals of existing temporary differences, recent financial operations and tax planning strategies. We recognize 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 4 thousand, 186 thousand, and 1.6 million shares of common stock ranging from $72 - $179 per share were outstanding at December 31, 2022, 2021, and 2020, 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”). We consider 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 our 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. We 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 million, net of taxes. Income Taxes (Topic 740) In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The updated accounting guidance removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The company adopted ASU 2019-12 as of January 1, 2021, and recognized a cumulative-effect adjustment to increase opening retained earnings by $6 million. Liabilities—Supplier Finance Programs (Subtopic 405-50) In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs. This standard requires disclosure of the key terms of outstanding supply chain finance programs and a rollforward of the related amounts due to vendors participating in these programs. The new standard does not affect the recognition, measurement or financial statement presentation of any amounts due. The ASU becomes effective January 1, 2023, except for the rollforward requirement, which becomes effective January 1, 2024. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data Our reportable segments consist of the Automotive Parts Group ("Automotive") and Industrial Parts Group ("Industrial"). Within the reportable segments, certain of our operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. Our Automotive segment distributes replacement parts (other than body parts) for substantially all makes and models of automobiles, trucks, and other vehicles. Our 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 costs of goods sold, operating expenses, and certain non-operating expenses attributable to the segment (e.g., foreign currency), excluding general corporate expenses, net interest expense, intangible asset amortization, and other unallocated amounts that are primarily driven by corporate initiatives.. Approximately $472 million and $438 million of income before income taxes were generated in jurisdictions outside the U.S. for the years ended December 31, 2022, and 2021, respectively. Approximately $327 million of loss before income taxes was generated in jurisdictions outside the U.S. for the year ended December 31, 2020. Net sales and net property, plant and equipment by country relate directly to our operations in the respective country. Corporate assets are principally cash and cash equivalents and headquarters’ facilities and equipment. The following table presents a summary of our reportable segment financial information from continuing operations: 2022 2021 2020 Net sales: Automotive $ 13,666,634 $ 12,544,131 $ 10,860,695 Industrial 8,429,339 6,326,379 5,676,738 Total net sales $ 22,095,973 $ 18,870,510 $ 16,537,433 Segment profit: Automotive $ 1,191,674 $ 1,073,427 $ 867,743 Industrial 886,636 595,232 481,854 Total segment profit $ 2,078,310 $ 1,668,659 $ 1,349,597 Interest expense, net (73,886) (62,150) (91,048) Corporate expense (269,364) (174,842) (149,754) Intangible asset amortization (157,437) (103,273) (94,962) Other unallocated costs (5,021) (128,048) (634,465) Income before income taxes from continuing operations $ 1,572,602 $ 1,200,346 $ 379,368 The following table presents a summary of the other unallocated costs: 2022 2021 2020 Other unallocated costs: Gain on sales of real estate (1) $ 102,803 $ — $ — Gain on insurance proceeds (2) 1,507 3,862 13,448 Product liability adjustment (3) (28,730) — — Product liability damages award (4) — (77,421) — Loss on software disposal (5) — (61,063) — Gain on equity investment (6) — 10,229 — Goodwill impairment charge (7) — — (506,721) Restructuring costs and special termination costs (8) — — (50,019) Realized currency and other divestiture losses (9) — — (11,356) Inventory adjustment (10) — — (40,000) Transaction and other costs (11) (80,601) (3,655) (39,817) Total other unallocated costs $ (5,021) $ (128,048) $ (634,465) (1) Amount reflects a gain on the sale of real estate that had been leased to S.P. Richards. (2) Amount reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs. (3) Amount to remeasure product liability for a revised estimate of the number of claims to be incurred in future periods, among other assumptions. (4) Amount reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim. (5) Amount reflects a loss on an internally developed software project that was disposed of due to a change in management strategy related to advances in alternative technologies. (6) Amount relates to gains recognized upon remeasurement of certain equity investments to fair value upon acquiring the remaining equity of those entities. (7) Amount reflects a goodwill impairment charge related to our European reporting unit. (8) Amount reflects restructuring and special termination costs related to 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. (9) Amount reflects realized currency losses related to divestitures. (10) Amount reflects a $40 million increase to cost of goods sold due to the correction of an immaterial error related to the accounting in prior years for consideration received from vendors. (11) Amount for 2022 primarily includes costs of $67 million associated with the January 3, 2022 acquisition and integration of KDG which includes a $17 million impairment charge. The impairment charge was driven by a decision to retire certain legacy trade names, classified as other intangible assets, prior to the end of their estimated useful lives as part of executing our KDG integration and rebranding strategy. Separately, this adjustment includes an $11 million loss related to an investment. Amount for 2021 include transaction and other costs related to acquisitions. For 2020, amount 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. The following table presents a summary of our reportable segment total assets: 2022 2021 Assets: Automotive $ 8,755,363 $ 8,508,487 Industrial 2,474,392 1,909,053 Corporate 865,001 612,854 Goodwill and other intangible assets 4,400,623 3,321,708 Total assets $ 16,495,379 $ 14,352,102 The following table presents a summary of select financial information by reportable segment from continuing operations: 2022 2021 2020 Depreciation and amortization: Automotive $ 146,819 $ 143,052 $ 120,932 Industrial 29,670 24,100 16,315 Corporate 13,893 20,546 40,633 Intangible asset amortization 157,437 103,273 94,962 Total depreciation and amortization $ 347,819 $ 290,971 $ 272,842 Capital expenditures: Automotive $ 235,182 $ 198,268 $ 133,523 Industrial 33,165 35,626 19,287 Corporate 71,285 32,242 692 Total capital expenditures $ 339,632 $ 266,136 $ 153,502 Net sales: United States $ 14,965,462 $ 12,136,689 $ 10,863,348 Europe 3,071,964 2,908,156 2,408,913 Canada 1,960,227 1,779,663 1,526,202 Australasia 2,044,432 2,002,188 1,691,190 Mexico 53,888 43,814 47,780 Total net sales $ 22,095,973 $ 18,870,510 $ 16,537,433 Net property, plant and equipment: United States $ 790,121 $ 750,267 $ 728,802 Europe 200,898 179,001 164,268 Canada 113,574 102,484 102,409 Australasia 220,839 201,971 165,596 Mexico 582 676 968 Total net property, plant and equipment $ 1,326,014 $ 1,234,399 $ 1,162,043 Net sales are disaggregated by geographical region for each of our reportable segments, as we deem 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: 2022 2021 2020 North America: Automotive $ 9,015,501 $ 8,103,896 $ 7,177,543 Industrial 7,964,076 5,856,270 5,259,787 Total North America $ 16,979,577 $ 13,960,166 $ 12,437,330 Australasia: Automotive $ 1,579,169 $ 1,532,079 $ 1,274,239 Industrial 465,263 470,109 416,951 Total Australasia $ 2,044,432 $ 2,002,188 $ 1,691,190 Europe - Automotive $ 3,071,964 $ 2,908,156 $ 2,408,913 Total net sales $ 22,095,973 $ 18,870,510 $ 16,537,433 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 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, 2021 $ 1,505,523 $ 411,954 $ 1,917,477 $ 1,498,257 Additions 85,182 2,701 87,883 72,189 Amortization — — — (103,273) Foreign currency translation (83,243) (6,810) (90,053) (60,772) Balance as of December 31, 2021 1,507,462 407,845 1,915,307 1,406,401 Additions 149,896 609,892 759,788 663,077 Amortization — — — (157,437) Impairments — — — (17,461) Foreign currency translation (77,824) (9,158) (86,982) (82,070) Balance as of December 31, 2022 $ 1,579,534 $ 1,008,579 $ 2,588,113 $ 1,812,510 We completed our annual goodwill impairment testing as of October 1, 2022 using a mixture of quantitative and qualitative assessments for our various reporting units. To complete a qualitative assessment, we evaluate historical revenue and operating profit growth trends, market conditions and other factors to determine whether it is more likely than not that the reporting unit's goodwill is impaired. We complete quantitative assessments for reporting units that fail our qualitative assessments, or otherwise on a periodic basis. To complete a quantitative assessment, we calculate a reporting unit's fair value using a combination of income and market approaches, which involve significant unobservable inputs (Level 3). In the income approach, we primarily use these assumptions: projected revenue growth rates, EBITDA margins, the estimated weighted average cost of capital, and terminal value. In the market approach, we primarily use benchmark company market multiples. We believe the inputs and assumptions we use are consistent with those a hypothetical marketplace participant would use. Once calculated, we verify whether the reporting unit's fair value is higher than its carrying amount. If the fair value is lower, we recognize an impairment, generally for the difference. Based on these assessments, we did not recognize any goodwill impairments during 2022 or 2021. Due to several factors that coalesced in the second quarter of 2020, we performed an interim impairment test as of May 31, 2020 for our European reporting unit and recorded a goodwill impairment charge of $507 million. If there are sustained declines in macroeconomic or business conditions in future periods affecting the projected earnings and cash flows at our reporting units, among other things, there can be no assurance that goodwill at one or more reporting units may not be impaired. In June 2022, we recognized a $17 million non-cash impairment charge related to our decision to retire certain legacy Industrial trade names, classified as other intangible assets, prior to the end of their estimated useful lives as part of the KDG integration and rebranding strategy. We evaluate other intangible assets for potential impairment indicators annually, or more frequently if circumstances change. Other Intangible Assets The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2022 and 2021 are as follows: 2022 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,121,171 $ (566,111) $ 1,555,060 $ 1,590,733 $ (464,198) $ 1,126,535 Trademarks 342,136 (85,188) 256,948 337,802 (58,073) 279,729 Non-competition agreements 5,575 (5,073) 502 5,430 (5,293) 137 $ 2,468,882 $ (656,372) $ 1,812,510 $ 1,933,965 $ (527,564) $ 1,406,401 Amortization expense for other intangible assets totaled $157 million, $103 million, and $95 million for the years ended December 31, 2022, 2021, and 2020, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows: 2023 $ 145,357 2024 131,443 2025 130,103 2026 128,508 2027 127,706 $ 663,117 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment as of December 31, 2022 and December 31, 2021, consisted of the following: 2022 2021 Land $ 115,845 $ 126,513 Buildings and leasehold improvements 834,786 873,912 Machinery, equipment and other 1,811,060 1,573,680 Property, plant and equipment, at cost 2,761,691 2,574,105 Less: accumulated depreciation 1,435,677 1,339,706 Property, plant and equipment, net $ 1,326,014 $ 1,234,399 During the third quarter of 2021, we reconsidered our approach to an internally developed software project due to a change in management strategy related to advances in alternative technologies. We decided to dispose of the software project as of September 30, 2021. As a result, we recognized $61 million of selling, administrative and other expense During the second quarter of 2022, we recognized a $103 million gain on the sale of real estate that had been leased to S.P. Richards Company ("SPR"). Refer to the discontinued operations section of the Acquisitions, Divestitures and Discontinued Operations Footnote for additional information regarding the divestiture of our business products group. |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable Sales Agreement | Accounts Receivable Sales AgreementWe have an 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 3 year term, which we intend to renew. As part of the A/R Sales Agreement, we routinely sell 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. We control and therefore consolidate the SPE in our 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. We account for transactions with the unaffiliated financial institution as sales of financial assets, with the associated receivables derecognized from our 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 December 31, 2022 and December 31, 2021 is approximately $1.1 billion and $973 million, respectively. We continue 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 $1.0 billion 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 $1.0 billion and $800 million as of December 31, 2022 and December 31, 2021, respectively. The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of period end: December 31, 2022 December 31, 2021 Receivables sold to the financial institution and derecognized $ 8,946,730 $ 7,520,474 Cash collected on sold receivables $ 8,746,740 $ 7,520,465 Continuous cash activity related to the A/R Sales Agreement is reflected in cash from operating activities in the consolidated statement of cash flows. We received a benefit to cash from operations of approximately $200 million from increasing the amount of receivables sold under the A/R Sales Agreement in the year ended December 31, 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The weighted average interest rate on our outstanding borrowings was approximately 2.33% and 2.35% at December 31, 2022 and 2021, respectively. Certain borrowings require us to comply with a financial covenant with respect to a maximum debt to EBITDA ratio. At December 31, 2022, we were in compliance with all such covenants. Due to the workers’ compensation and insurance reserve requirements in certain states, we also had unused letters of credit of approximately $71 million and $73 million outstanding at December 31, 2022 and 2021, respectively. On January 6, 2022, we issued $500 million of unsecured 1.75% Senior Notes due 2025. Simultaneously, we issued $500 million of unsecured 2.75% Senior Notes due 2032. For both offerings, interest is payable semi-annually on February 1 and August 1 of each year, beginning August 1, 2022. We utilized the proceeds from these offerings to repay borrowings under our Revolving Credit Facility, which were incurred to finance a significant portion of the Kaman Distribution Group ("KDG") acquisition. Amounts outstanding under our credit facilities, net of debt issuance costs consist of the following: December 31, 2022 December 31, 2021 Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.13% variable, due September 30, 2026 $ — $ — January 6, 2022, Senior Unsecured Notes, $500,000, 1.75% fixed, due February 1, 2025 500,000 — January 6, 2022, Senior Unsecured Notes, $500,000, 2.75% fixed, due February 1, 2032 500,000 — October 27, 2020, Senior Unsecured Notes, $500,000, 1.88% fixed, due November 1, 2030 500,000 500,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000, 3.24% fixed, due December 2, 2023 250,000 250,000 June 30, 2019, Series A Senior Unsecured Notes, A$155,000, 3.10% fixed, due June 30, 2024 105,664 112,375 October 30, 2017, Series J Senior Unsecured Notes, €225,000, 1.40% fixed, due October 30, 2024 240,840 254,835 June 30, 2019, Series B Senior Unsecured Notes, A$155,000, 3.43% fixed, due June 30, 2026 105,664 112,375 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.24% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, €250,000, 1.81% fixed, due October 30, 2027 267,600 283,150 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 3.70% fixed, due October 30, 2027 120,000 120,000 May 31, 2019, Series A Senior Unsecured Notes, €50,000, 1.55% fixed, due May 31, 2029 53,520 56,630 October 30, 2017, Series L Senior Unsecured Notes, €125,000, 2.02% fixed, due October 30, 2029 133,800 141,575 May 31, 2019, Series B Senior Unsecured Notes, €100,000, 1.74% fixed, due May 31, 2031 107,040 113,260 October 30, 2017, Series M Senior Unsecured Notes, €100,000, 2.32% fixed, due October 30, 2032 107,040 113,260 May 31, 2019, Series C Senior Unsecured Notes, €100,000, 1.95% fixed, due May 31, 2034 107,040 113,260 Other unsecured debt 2,977 840 Total unsecured debt 3,351,185 2,421,560 Unamortized debt issuance costs (12,236) (8,041) Unamortized discounts (10,126) (4,156) Total debt 3,328,823 2,409,363 Less debt due within one year 252,029 — Long-term debt, excluding current portion $ 3,076,794 $ 2,409,363 Approximate maturities under our credit facilities are as follows: 2023 $ 252,029 2024 347,452 2025 500,000 2026 355,664 2027 387,600 Thereafter 1,508,440 $ 3,351,185 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging Net Investment Hedges We have designated certain derivative instruments and a portion of our foreign currency denominated debt, a non-derivative financial instrument, as hedges of the foreign currency exchange rate exposure of our Euro-denominated net investment in a European subsidiary. We apply 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. Upon settlement, the cash paid or received generally is reflected in investing activities in the statement of cash flows. 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, 2022 December 31, 2021 Instrument Balance sheet location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 606,950 $ 46,670 $ 925,810 $ 73,819 Forward contracts Other current liabilities $ 106,800 $ 3,064 $ 235,180 $ 2,935 Foreign currency debt Long-term debt € 700,000 $ 749,280 € 700,000 $ 792,820 The table below presents pre-tax gains and losses related to cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2022 2021 2020 2022 2021 2020 Year Ended December 31, Cash Flow Hedges: Interest rate contract $ — $ — $ (29,464) $ — $ — $ — Net Investment Hedges: Forward contracts 103,240 56,362 (85,390) 27,923 26,295 27,146 Foreign currency debt 43,540 68,250 (77,070) — — — Total $ 146,780 $ 124,612 $ (191,924) $ 27,923 $ 26,295 $ 27,146 |
Leased Properties
Leased Properties | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leased Properties | Leased Properties We primarily lease real estate for retail stores, branches, distribution centers, office space and land. We also lease 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, 2022 December 31, 2021 Operating lease assets Operating lease assets $ 1,104,678 $ 1,053,689 Operating lease liabilities: Current operating lease liabilities Other current liabilities $ 286,713 $ 280,575 Noncurrent operating lease liabilities Operating lease liabilities $ 836,019 $ 789,175 Total operating lease liabilities $ 1,122,732 $ 1,069,750 The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term. Our leases generally do not provide an implicit rate, and therefore we use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we 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. We used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Our weighted average remaining lease term and weighted average discount rate for operating leases are: December 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 5.32 5.19 Weighted average discount rate 2.51 % 2.03 % 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, 2022: 2023 $ 325,370 2024 269,385 2025 198,100 2026 138,333 2027 95,975 Thereafter 216,085 Total undiscounted future minimum lease payments 1,243,248 Less: Difference between undiscounted lease payments and discounted operating lease liabilities 120,516 Total operating lease liabilities $ 1,122,732 Future minimum lease payments include $53 million related to options to extend lease terms that are reasonably certain of being exercised. Future minimum lease payments exclude $165 million related to operating leases that have not yet commenced. These leases are expected to commence in 2023 and 2024 with lease terms of 3 to 25 years. The table below presents operating lease costs and supplemental cash flow information related to leases: 2022 2021 2020 Operating lease costs $ 350,025 $ 336,228 $ 313,315 Cash paid for amounts included in the measurement of operating lease liabilities $ 358,767 $ 340,243 $ 323,336 Operating lease assets obtained in exchange for new operating lease liabilities $ 411,052 $ 358,393 $ 302,114 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Our 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 we 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. Our 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, we may increase our contribution above the minimum, if appropriate to our tax and cash position and the plans’ funded position. The European plans are funded in accordance with local regulations. We also sponsor supplemental retirement plans covering employees in the U.S. and Canada. We use a measurement date of December 31 for our 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 year period and accumulate in other comprehensive income. Other non-investment unrecognized gains and losses are amortized in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. The unrecognized gains and losses in excess of the corridor criteria are amortized over the average future lifetime or service of plan participants, depending on the plan. These assumptions are updated at each annual measurement date. Changes in benefit obligations for the years ended December 31, 2022 and 2021 were: 2022 2021 Changes in benefit obligation Benefit obligation at beginning of year $ 2,532,973 $ 2,678,966 Service cost 10,204 12,218 Interest cost 75,248 71,693 Plan participants’ contributions 1,892 1,908 Actuarial gain (546,266) (87,966) Foreign currency exchange rate changes (15,744) (1,184) Gross benefits paid (135,907) (142,327) Curtailments — (80) Settlements (276) (255) Acquired plans 1,039 — Benefit obligation at end of year $ 1,923,163 $ 2,532,973 The benefit obligations for our U.S. pension plans included in the above were $1.7 billion and $2.2 billion at December 31, 2022 and 2021, respectively. The total accumulated benefit obligation for our defined benefit pension plans in the U.S., Canada, and Europe was approximately $1.9 billion and $2.5 billion at December 31, 2022 and 2021, respectively. For the U.S. pension plan, there was a net actuarial liability gain of $442 million and an asset loss of $581 million. The liability gain was comprised primarily of a $466 million gain due to discount rate changes. For the U.S. supplemental retirement plan, there was a net actuarial liability gain of $61 million comprised primarily of a $63 million gain due to discount rate changes. The assumptions used to measure the pension benefit obligations for the plans at December 31, 2022 and 2021, were: 2022 2021 Weighted average discount rate 5.61 % 3.04 % Rate of increase in future compensation levels 3.16 % 3.13 % Changes in plan assets for the years ended December 31, 2022 and 2021 were: 2022 2021 Changes in plan assets Fair value of plan assets at beginning of year $ 2,756,803 $ 2,545,359 Actual return on plan assets (493,359) 330,402 Foreign currency exchange rate changes (15,599) 80 Employer contributions 15,504 21,635 Plan participants’ contributions 1,892 1,908 Benefits paid (135,907) (142,327) Settlements (276) (254) Fair value of plan assets at end of year $ 2,129,058 $ 2,756,803 The fair values of plan assets for our U.S. pension plans included in the above were $1.9 billion and $2.5 billion at December 31, 2022 and 2021, respectively. For the years ended December 31, 2022 and 2021, 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: 2022 2021 Aggregate projected benefit obligation $ 208,939 $ 323,593 Aggregate fair value of plan assets $ — $ 47,445 For the years ended December 31, 2022 and 2021, 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: 2022 2021 Aggregate accumulated benefit obligation $ 192,421 $ 247,277 Aggregate fair value of plan assets $ — $ — The asset allocations for our funded pension plans at December 31, 2022 and 2021, and the target allocation for 2023, by asset category were: Target Allocation Percentage of Plan Assets at December 31 2023 2022 2021 Asset Category Equity securities 58 % 59 % 57 % Debt securities 41 % 41 % 43 % Other 1 % — % — % 100 % 100 % 100 % Our 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 our 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. Our investment strategy with respect to pension plan assets is to generate a return in excess of the passive portfolio benchmark (38% US Large-cap stocks, 9% US Mid-cap stocks, 10% International stocks, 3% Emerging Market stocks and 40% Barclays U.S. Gov/Credit Index). The fair values of the plan assets as of December 31, 2022 and 2021, by asset category, are shown in the tables below. Various inputs are considered when determining the value of our 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 our 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 we believe our 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. 2022 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Equity Securities Common stocks — mutual funds — equity $ 285,103 $ 48,521 $ 236,582 $ — $ — Genuine Parts Company common stock 261,869 — 261,869 — — Other stocks 711,830 — 711,830 — — Debt Securities Short-term investments 41,076 — 41,076 — — Cash and equivalents 8,632 — 8,632 — — Government bonds 344,787 — 411 344,376 — Corporate bonds 412,896 — — 412,896 — Asset-backed and mortgage-backed securities 9,925 — — 9,925 — Convertible Securities 1,159 — — 1,159 — Other-international 37,304 — 37,304 — — Municipal bonds 14,442 — — 14,442 — Other Options and Futures 35 — 35 — — Total $ 2,129,058 $ 48,521 $ 1,297,739 $ 782,798 $ — 2021 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Equity Securities Common stocks — mutual funds — equity $ 388,591 $ 64,669 $ 323,922 $ — $ — Genuine Parts Company common stock 210,510 — 210,510 — — Other stocks 971,020 — 971,020 — — Debt Securities Short-term investments 46,815 — 46,815 — — Cash and equivalents 22,084 — 22,084 — — Government bonds 425,877 — 4,513 421,364 — Corporate bonds 598,216 — — 598,216 — Asset-backed and mortgage-backed securities 12,894 — — 12,894 — Other-international 61,008 — 46,133 14,875 — Municipal bonds 19,621 — — 19,621 — Other Cash surrender value of life insurance policies 167 — 167 — — Total $ 2,756,803 $ 64,669 $ 1,625,164 $ 1,066,970 $ — Equity securities include Genuine Parts Company common stock in the amounts of $262 million (12% of total plan assets) and $211 million (8% of total plan assets) at December 31, 2022 and 2021, respectively. Dividend payments received by the plan on company stock totaled approximately $5 million and $5 million in 2022 and 2021, respectively. Fees paid during the year for services rendered by parties in interest were based on customary and reasonable rates for such services. Based on the investment policy for the pension plans, as well as an asset study that was performed based on our asset allocations and future expectations, our expected rate of return on plan assets for measuring 2023 pension income is 7.09% for the plans. The asset study forecasted expected rates of return for the approximate duration of our 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: 2022 2021 Other long-term asset $ 414,834 $ 499,978 Other current liability (12,537) (12,546) Pension and other post-retirement liabilities (196,402) (263,602) $ 205,895 $ 223,830 Amounts recognized in accumulated other comprehensive (loss) income consist of: 2022 2021 Net actuarial loss $ 682,884 $ 625,339 Prior service cost 7,273 7,958 $ 690,157 $ 633,297 The following table reflects the total benefits expected to be paid from the pension plans’ or our assets. Of the pension benefits expected to be paid in 2023, approximately $13 million 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 2023 (expected) $ 4,449 Expected benefit payments: 2023 $ 138,411 2024 $ 140,826 2025 $ 143,591 2026 $ 145,953 2027 $ 147,677 2027 through 2030 $ 736,560 Net periodic benefit income included the following components: 2022 2021 2020 Service cost $ 10,204 $ 12,218 $ 12,105 Interest cost 75,248 71,693 83,732 Expected return on plan assets (150,318) (153,822) (154,111) Amortization of prior service cost 691 690 692 Amortization of actuarial loss 37,065 49,897 39,613 Net periodic benefit income $ (27,110) $ (19,324) $ (17,969) Service cost is recorded in selling, administrative and other expenses in the consolidated statements of income while all other components are recorded within other non-operating expenses (income). Pension benefits also include amounts related to supplemental retirement plans. Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: 2022 2021 2020 Current year actuarial loss (gain) $ 97,412 $ (264,547) $ 24,613 Recognition of actuarial loss (37,065) (49,897) (39,613) Recognition of prior service cost (691) (690) (692) Recognition of curtailment (loss) gain — (5) 435 Other 68 (29) — Total recognized in other comprehensive (loss) income $ 59,724 $ (315,168) $ (15,257) Total recognized in net periodic benefit income and other comprehensive (loss) income $ 32,614 $ (334,492) $ (33,226) The assumptions used in measuring the net periodic benefit income for the plans follow: 2022 2021 2020 Weighted average discount rate 3.04 % 2.72 % 3.43 % Rate of increase in future compensation levels 3.13 % 3.11 % 3.13 % Expected long-term rate of return on plan assets 6.34 % 6.88 % 7.11 % We have one defined contribution plan in the U.S. that covers substantially all of our domestic employees. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $69 million in 2022, $60 million in 2021, and $55 million in 2020. |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions, Divestitures and Discontinued Operations | Acquisitions, Divestitures and Discontinued Operations Acquisitions For each acquisition, we allocate 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 our consolidated statements of income beginning on their respective acquisition dates. 2022 We acquired several businesses for approximately $1.6 billion, net of cash acquired, during the year ended December 31, 2022. Approximately $1.3 billion was related to our Industrial segment, primarily the acquisition of KDG discussed further below, and $300 million was related to Automotive. We recognized approximately $562 million of revenue, net of store closures, and $239 million of goodwill and other intangible assets related to our Automotive acquisitions during the year ended December 31, 2022. The other intangible assets acquired consisted of customer relationships of $76 million, trademarks of $9 million, and other intangibles of $4 million with weighted average amortization lives of 18, 15, and 3 years, respectively. On January 3, 2022, the company, through its wholly-owned subsidiary, Motion Industries, Inc., acquired all of the equity interests in KDG for a purchase price of approximately $1.3 billion in cash, net of cash acquired of approximately $30 million. KDG contributed approximately 5% of net sales included in our consolidated statement of income from January 3, 2022 to December 31, 2022. The KDG acquisition was financed using a combination of borrowing under the existing unsecured revolving credit facility, proceeds of $200 million from the selling of additional receivables under our amended A/R Sales Agreement, and $109 million of cash. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date for the KDG acquisition as well as adjustments made when finalizing the acquisition accounting during the year ended December 31, 2022 (referred to as the "measurement period adjustments"). The measurement period adjustments primarily resulted from revisions to the valuation of inventory and intangible assets, deferred taxes, and long-term liabilities. As of January 3, 2022 Initial Balance Measurement Period Adjustments As Adjusted Trade accounts receivable $ 156,000 $ — $ 156,000 Merchandise inventories 166,000 (14,000) 152,000 Prepaid expenses and other current assets 39,000 (1,000) 38,000 Property, plant and equipment 26,000 (2,000) 24,000 Operating lease assets 49,000 (5,000) 44,000 Other assets 1,000 — 1,000 Other intangible assets 574,000 (6,000) 568,000 Goodwill 592,000 9,000 601,000 Total assets acquired 1,603,000 (19,000) 1,584,000 Trade accounts payable 85,000 — 85,000 Other current liabilities 32,000 — 32,000 Operating lease liabilities 17,000 (1,000) 16,000 Deferred tax liabilities 121,000 (13,000) 108,000 Other long-term liabilities 39,000 (8,000) 31,000 Total liabilities assumed 294,000 (22,000) 272,000 Net assets acquired $ 1,309,000 $ 3,000 $ 1,312,000 The other intangible assets acquired included $527 million of customer relationship intangibles and a $41 million favorable trade name licensing agreement, with amortization lives of 17 and 1.5 years, respectively. The other intangible assets have a total weighted amortization life of 16 years. We used the multi-period excess earnings method under the income approach to measure KDG's customer relationships, which is sensitive to certain assumptions including discount rates and certain assumptions that form the basis for the forecasted results (e.g., future revenue growth rates and EBITDA margins). These assumptions are forward-looking in nature and are dependent on the future performance of the acquired business and could be affected by future economic and market conditions. The goodwill was assigned to the Industrial segment and is attributable primarily to expected synergies and the assembled workforce. Approximately $261 million of the goodwill recognized as part of the acquisition was tax deductible. For the twelve months ended December 31, 2022, approximately $5 million of inventory amortization step-up cost related to this acquisition was included in cost of goods sold. Further, $62 million of transaction and other one-time costs, inclusive of an impairment charge, were included in selling, administrative, and other expenses in the consolidated statements of income. Refer to the Goodwill and Other Intangible Assets Footnote for more information on the impairment charge. If the KDG acquisition had occurred on January 1, 2021 and if its results of operations had been included in our consolidated results since that date, our unaudited pro forma consolidated statements of income would have reflected net sales of approximately $22.1 billion and $19.9 billion and net income on a per share diluted basis of $8.47 and $6.02 for the years ended December 31, 2022 and 2021, respectively . The pro forma information is not necessarily indicative of the results of operations that we would have reported had the transaction actually occurred at the beginning of this period, nor is it necessarily indicative of future results. The adjustments to the pro forma amounts include, but are not limited to, applying our accounting policies, amortization related to fair value adjustments to intangible assets, one-time acquisition accounting adjustments, interest expense on acquisition related debt and debt not assumed, and any associated tax effects. The pro forma results do not include any cost savings or other synergies that may result from the acquisition. Earnings related to KDG included in our consolidated statement of income from January 3, 2022 to December 31, 2022 are impracticable to provide due to KDG’s ongoing integration into Motion, which commenced shortly after the acquisition date. 2021 We acquired several businesses for approximately $282 million, net of cash acquired, during the year ended December 31, 2021. During the year ended December 31, 2021, we recognized approximately $220 million and $25 million of revenue, net of store closures, related to our 2021 Automotive and Industrial acquisitions, respectively. We recorded approximately $160 million of goodwill and other intangible assets associated with the 2021 acquisitions. Other intangible assets acquired consisted of customer relationships with a weighted average amortization life of 20 years. We did not recognize any significant measurement period adjustments related to finalizing acquisition accounting during the year ended December 31, 2021. 2020 We acquired several businesses for approximately $86 million, net of cash acquired, during the year ended December 31, 2020. Divestitures We received proceeds from divestitures of businesses totaling $34 million, $18 million and $387 million during the years ended December 31, 2022, 2021 and 2020, respectively. Discontinued Operations Business Products Group Effective June 30, 2020, we completed the divestiture of our Business Products Group by selling Supply Source Enterprises, Inc. ("SSE") and SPR in separate transactions. These divestitures were part of our long-term strategic initiative to streamline our operations and optimize our portfolio so that we can drive shareholder value by focusing on our global Automotive and Industrial businesses. 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), represented a single plan to exit the Business Products Group segment and was considered a strategic shift that had a major effect on our operations and financial results. Therefore, the results of operations, financial position and cash flows for the Business Products Group were reported as discontinued operations for all periods presented. Our results of operations for discontinued operations were: Year Ended December 31, 2022 2021 2020 Net sales $ — $ — $ 846,944 Cost of goods sold — — 632,007 Gross profit — — 214,937 Operating and non-operating expenses — — 179,461 Loss on disposal — — 223,928 Loss before income taxes — — (188,452) Income taxes — — 4,045 Net loss from discontinued operations $ — $ — $ (192,497) In December 2022, we came to an agreement to sell our remaining investment in SPR in connection with a pending acquisition of SPR by a third party. The acquisition closed and we sold our investment in SPR on January 31, 2023. Any remaining transition services will cease by June 30, 2023. As of December 31, 2022, we reduced the net carrying value of our SPR investment by $3 million to $55 million, which was reclassed from other assets to current |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based compensation costs of $38 million, $26 million, and $23 million, were recorded for the years ended December 31, 2022, 2021, and 2020, respectively. The total income tax benefits recognized in the consolidated statements of income for share-based compensation arrangements were approximately $10 million, $7 million, and $6 million for 2022, 2021, and 2020, respectively. At December 31, 2022, total compensation cost related to nonvested awards not yet recognized was approximately $64 million. There have been no modifications to valuation methodologies or methods during the years ended December 31, 2022, 2021, or 2020. As of December 31, 2022, there were 6.9 million shares of common stock available for issuance pursuant to future equity-based compensation awards. A summary of our 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 829 $ 98.25 Granted 506 $ 129.87 Vested (276) $ 104.22 Forfeited (65) $ 105.01 Nonvested at end of year 994 $ 110.45 1.4 $ 172,409 A summary of our 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 634 $ 90.93 Granted — $ — Exercised (310) $ 89.22 Forfeited (7) $ 89.27 Outstanding at end of year 317 $ 92.65 2.4 $ 25,607 Exercisable at end of year 317 $ 92.65 2.4 $ 25,607 The aggregate intrinsic value of SARs exercised and RSUs vested during the years ended December 31, 2022, 2021, and 2020 was $62 million, $73 million, and $14 million, respectively. The fair value of RSUs is based on the price of our stock on the date of grant for the years ended December 31, 2022 and 2021. The fair value of RSUs is based on the 60-day average price of our stock on the date of grant for the year ended December 31, 2020. The fair value of SARs is estimated using a Black-Scholes option pricing model. We ceased issuing SARs in 2017. The total fair value of SARs and RSUs vested during the years ended December 31, 2022, 2021, and 2020 were $29 million, $25 million, and $10 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables present the changes in AOCL by component: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2022 $ (463,227) $ (15,042) $ (379,470) $ (857,739) Other comprehensive (loss) before reclassifications (71,258) — (143,890) (215,148) Amounts reclassified from accumulated other comprehensive loss 27,875 12,470 — 40,345 Net current period other comprehensive (loss) (43,383) 12,470 (143,890) (174,803) Ending balance, December 31, 2022 $ (506,610) $ (2,572) $ (523,360) $ (1,032,542) 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 income before reclassifications 192,382 — (65,843) 126,539 Amounts reclassified from accumulated other comprehensive loss 37,259 14,965 — 52,224 Net current period other comprehensive income 229,641 14,965 (65,843) 178,763 Ending balance, December 31, 2021 $ (463,227) $ (15,042) $ (379,470) $ (857,739) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of our deferred tax assets and liabilities are as follows: 2022 2021 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 312,445 $ 301,302 Operating lease liabilities 314,804 300,705 Pension liability not yet deducted for tax purposes 168,925 171,256 Capital loss — 7,333 Net operating loss 49,787 48,865 845,961 829,461 Deferred tax liabilities related to: Employee and retiree benefits 225,947 235,847 Inventory 77,866 87,062 Operating lease assets 305,885 295,801 Other intangible assets 468,733 365,557 Property, plant and equipment 91,706 72,740 Other 38,597 18,176 1,208,734 1,075,183 Net deferred tax liability before valuation allowance (362,773) (245,722) Valuation allowance (27,362) (34,227) Total net deferred tax liability $ (390,135) $ (279,949) We currently hold approximately $183 million in gross net operating losses, of which approximately $108 million will carry forward indefinitely. The remaining net operating losses of approximately $75 million will begin to expire in 2024. The components of income before income taxes are as follows: 2022 2021 2020 United States $ 1,100,584 $ 762,472 $ 706,594 Foreign 472,018 437,874 (327,226) Income before income taxes $ 1,572,602 $ 1,200,346 $ 379,368 The components of income tax expense are as follows: 2022 2021 2020 Current: Federal $ 196,634 $ 116,425 $ 130,680 State 70,453 34,311 35,474 Foreign 120,594 119,144 77,541 Deferred: Federal 12,727 24,233 2,048 State 4,981 9,485 801 Foreign (15,488) (2,042) (30,571) $ 389,901 $ 301,556 $ 215,973 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: 2022 2021 2020 Statutory rate applied to income (1) $ 330,246 $ 252,073 $ 79,667 Plus state income taxes, net of Federal tax benefit 59,593 34,599 28,658 Taxation of foreign operations, net (2) 3,347 2,299 (9,072) Non-deductible goodwill impairment tax effect — — 106,411 Foreign rate change - deferred tax remeasurement — 17,032 9,045 Valuation allowance (7,153) (2,486) 1,995 Other 3,868 (1,961) (731) $ 389,901 $ 301,556 $ 215,973 (1) U.S. statutory rates applied to income are as follows: 2022, 2021 and 2020 at 21%. (2) Our effective tax rate reflects the impact 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. We account for Global Intangible Low Taxed income in the year the tax is incurred as a period cost. We, or one of our subsidiaries, file income tax returns in the U.S., various states, and foreign jurisdictions. With few exceptions, we are no longer subject to federal, state and local tax examinations by tax authorities for years before 2019 or subject to foreign income tax examinations for years ended prior to 2013. We are currently under audit in some of our state and 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; however, we do 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: 2022 2021 2020 Balance at beginning of year $ 19,501 $ 23,237 $ 21,461 Additions based on tax positions related to the current year 1,475 2,196 3,771 Additions for tax positions of prior years 89 156 3,480 Reductions for tax positions for prior years (523) (733) (1,382) Reduction for lapse in statute of limitations (921) (2,843) (3,765) Settlements — (2,512) (328) Balance at end of year $ 19,621 $ 19,501 $ 23,237 The amount of gross unrecognized tax benefits, including interest and penalties, as of December 31, 2022 and 2021 was approximately $21 million and $20 million, respectively, of which approximately $19 million and $19 million, respectively, if recognized, would affect the effective tax rate. During the tax years ended December 31, 2022, 2021 and 2020, we paid, received refunds, or accrued insignificant interest and penalties. We recognize potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2022, we estimate that we have an outside basis difference in certain foreign subsidiaries of approximately $928 million, which includes the cumulative undistributed earnings from our foreign subsidiaries. We continue 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, |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
Guarantees | Guarantees We guarantee the borrowings of certain independently controlled automotive parts stores and businesses (“independents”) and certain other affiliates in which we have 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. We have no voting interest or equity conversion rights in any of the independents. We do not control the independents or the affiliates but receive a fee for the guarantees. We have concluded that the independents are variable interest entities, but that we are 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, we concluded that the affiliates are not variable interest entities. Our maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to our guarantees. While such borrowings of the independents and affiliates are outstanding, we are required to maintain compliance with certain covenants. At December 31, 2022, we were in compliance with all such covenants. At December 31, 2022, the total borrowings of the independents and affiliates subject to guarantee by us were approximately $916 million. These loans generally mature over periods from one We have recognized certain assets and liabilities amounting to $67 million and $81 million for the guarantees related to the independents’ and affiliates’ borrowings at December 31, 2022 and 2021, respectively. These assets and liabilities are included in other assets and other long-term liabilities in the consolidated balance sheets. The liabilities relate to our noncontingent obligation to stand ready to perform under the guarantee programs and they are distinct from our current expected credit loss reserve. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters We are subject to various legal proceedings, many involving routine litigation incidental to the businesses, including approximately 2,228 pending product liability lawsuits resulting from our national distribution of automotive parts and supplies. Many of these involve claims of personal injury allegedly resulting from the use of automotive parts we distributed. During the fourth quarter of 2022, we revised our estimate of the number of claims to be incurred in future periods, among other assumptions, and recognized $29 million of expense included in selling, administrative and other expenses in the consolidated statements of income. The amount accrued for pending and future claims as of December 31, 2022 was $220 million, the central estimate within our range of $190 million to $270 million, discounted using a discount rate of 3.83%. The undiscounted product liability as of December 31, 2022 was $285 million. The amount accrued for pending and future claims as of December 31, 2021 was $181 million. The amounts recorded are based on the best available information and assumptions that we believe are reasonable. While litigation of any type contains an element of uncertainty, we believe that our insurance coverage and our defense, and ultimate resolution of pending and reasonably anticipated claims will continue to occur within the ordinary course of our business and that resolution of these claims will not have a material adverse effect on our business, results of operations or financial condition. On April 17, 2017, a jury awarded damages against the company of $82 million in a litigated automotive product liability dispute. Through post-trial motions and offsets from previous settlements, the initial verdict was reduced to $77 million. We believed the verdict was not supported by the facts or the law and was contrary to our role in the automotive parts industry. We 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. On July 8, 2021, the Washington Supreme Court overturned the order of the Washington Court of Appeals and reinstated the trial court's damage award of $77 million against the company. We recorded an adjustment to increase selling, administrative and other expenses by approximately $77 million, inclusive of statutory interest and insurance coverage, in the consolidated statements of income for the year ended December 31, 2021. The damage award and statutory interest was fully paid as of December 31, 2021. Environmental Liabilities |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business | Business Genuine Parts Company (the "company") is a distributor of automotive replacement parts and industrial parts and materials. We serve a diverse customer base through a network of more than 10,600 locations throughout North America, Australasia, and Europe and, therefore, have limited exposure from credit losses to any particular customer, region, or industry segment. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. We have reclassified certain prior period amounts to conform to the current period presentation. We have evaluated subsequent events through the date the financial statements were issued. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include all of our accounts. The net income attributable to noncontrolling interests is not material to our 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. |
Revenue Recognition | Revenue Recognition We primarily recognize 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. 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. We do not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when we transfer 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 We generate 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 wholesale 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 to our customers are considered costs to fulfill a contract and are included in selling, administrative and other expenses in the period they are incurred. Other Revenues We offer 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 Our products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits or rebates. We estimate variable consideration based on historical experience to determine the expected amount to which we will be entitled in exchange for transferring the promised goods or services to a customer. We recognize 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 our 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 We consider 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 AccountsWe evaluate the collectability of trade accounts receivable based on a combination of factors. We estimate 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. We will periodically adjust this estimate when we become 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 we have a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which we operate 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 weighted average method for non-U.S. and certain other inventories. If the FIFO method had been used in place of LIFO, cost would have been approximately $835 million and $628 million higher than reported at December 31, 2022 and 2021, respectively. Reductions in certain industrial parts inventories resulted in liquidations of LIFO inventory layers, which reduced cost of goods sold by immaterial amounts in 2021 and 2020. There were no liquidations of LIFO inventory layers in 2022. We identify slow moving or obsolete inventories and estimate appropriate provisions related thereto. Historically, these losses have not been significant as the vast majority of our inventories are not highly susceptible to obsolescence and are eligible for return under various vendor return programs. While we have no reason to believe our inventory return privileges will be discontinued in the future, our risk of loss associated with obsolete or slow moving inventories would increase if such were to occur. We enter into agreements at the beginning of each year with many of our vendors that provide for inventory purchase incentives. Generally, we earn inventory purchase incentives upon achieving specified volume purchasing levels or other criteria. We accrue for the receipt of these incentives as part of our inventory cost based on cumulative purchases of inventory to date and projected inventory purchases through the end of the year. While |
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, debt securities, and income and other taxes receivable. |
Goodwill | Goodwill We review our goodwill annually for impairment in the fourth quarter, or sooner if circumstances indicate that the carrying amount may exceed fair value. We test 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, we 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, we generally elect to first assess 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 we elect not to perform a qualitative assessment or conclude from our 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, we must perform a quantitative test to evaluate goodwill impairment. |
Long-Lived Assets Other Than Goodwill | Long-Lived Assets Other Than GoodwillWe assess our 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, we project 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, 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, allowances 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 allowances for sales returns expected after the next year, guarantee obligations, accrued taxes and other non-current obligations. |
Self-Insurance | Self-Insurance We are self-insured for the majority of our group health insurance costs. A reserve for claims incurred but not reported is developed by analyzing historical claims data provided by our 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 our workers’ compensation program. We carry high deductible policies for a majority of these liabilities. We record our reserves based on an analysis performed by an independent actuary. The analysis involves calculating loss development factors and applying them to reserves supplied by our insurance providers. While we believe the assumptions used in these calculations are appropriate, significant changes in actual experience or our assumptions could materially affect the worker’s compensation costs and reserves recorded. |
Business Combinations | Business Combinations When we acquire businesses, we apply the acquisition method of accounting and recognize 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 us to record provisional amounts for any items for which the accounting is not complete at the end of a reporting period. We 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 our financial condition and results of operations. We typically measure customer relationships 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 and EBITDA Margin). 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, we could record impairment charges. In addition, we have estimated the economic lives of certain acquired tangible and intangible assets and these lives are used to calculate depreciation and amortization expense. If our 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 We accrue 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 we will incur a loss and the amount of the loss can be reasonably estimated. The product liability amount reflects our reasonable estimate of losses based upon currently known facts. To calculate the liability, we estimate potential losses relating to pending claims and also estimates the likelihood of additional, similar claims being filed against us in the future. To estimate potential losses on claims that could be filed in the future, we consider claims pending against us, 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. We use an actuarial specialist to assist with measuring our product liabilities. |
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, 2022 and 2021, the fair value of our senior unsecured notes was approximately $2.9 billion and $2.5 billion, 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. Fair value measurement using unobservable inputs is inherently uncertain, and the use of different methodologies or assumptions to determine the fair value instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used since December 31, 2021. |
Derivatives and Hedging | Derivatives and Hedging We are exposed to various risks arising from business operations and market conditions, including fluctuations in interest rates and certain foreign currencies. When deemed appropriate, we use 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 our 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. We have not historically incurred, and do not expect to incur in the future, any losses as a result of counterparty default related to derivative instruments. We formally document 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. We also formally assess, 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 $407 million, $350 million, and $302 million, for the years ended December 31, 2022, 2021, and 2020, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled $236 million, $211 million, and $194 million in the years ended December 31, 2022, 2021, and 2020, respectively. |
Restructuring Costs | Restructuring CostsIn October 2019, we approved certain restructuring actions (the "2019 Cost Savings Plan") across our 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. |
Accounting for Legal Costs | Accounting for Legal Costs We expense legal costs related to loss contingencies as they are incurred. |
Share-Based Compensation | Share-Based Compensation We maintain 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 our 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 our 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 We account 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, we consider all available positive and negative evidence including projected future taxable income, future reversals of existing temporary differences, recent financial operations and tax planning strategies. We recognize 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 4 thousand, 186 thousand, and 1.6 million shares of common stock ranging from $72 - $179 per share were outstanding at December 31, 2022, 2021, and 2020, 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”). We consider 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 our 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. We 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 million, net of taxes. Income Taxes (Topic 740) In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The updated accounting guidance removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The company adopted ASU 2019-12 as of January 1, 2021, and recognized a cumulative-effect adjustment to increase opening retained earnings by $6 million. Liabilities—Supplier Finance Programs (Subtopic 405-50) In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs. This standard requires disclosure of the key terms of outstanding supply chain finance programs and a rollforward of the related amounts due to vendors participating in these programs. The new standard does not affect the recognition, measurement or financial statement presentation of any amounts due. The ASU becomes effective January 1, 2023, except for the rollforward requirement, which becomes effective January 1, 2024. |
Segment Reporting | Our reportable segments consist of the Automotive Parts Group ("Automotive") and Industrial Parts Group ("Industrial"). Within the reportable segments, certain of our operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. |
Pension and Other Postretirement Plans | Our 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 we 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. Our 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, we may increase our contribution above the minimum, if appropriate to our tax and cash position and the plans’ funded position. The European plans are funded in accordance with local regulations. We also sponsor supplemental retirement plans covering employees in the U.S. and Canada. We use a measurement date of December 31 for our 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 year period and accumulate in other comprehensive income. Other non-investment unrecognized gains and losses are amortized in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. The unrecognized gains and losses in excess of the corridor criteria are amortized over the average future lifetime or service of plan participants, depending on the plan. These assumptions are updated at each annual measurement date. Our 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 our 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. Our investment strategy with respect to pension plan assets is to generate a return in excess of the passive portfolio benchmark (38% US Large-cap stocks, 9% US Mid-cap stocks, 10% International stocks, 3% Emerging Market stocks and 40% Barclays U.S. Gov/Credit Index). The fair values of the plan assets as of December 31, 2022 and 2021, by asset category, are shown in the tables below. Various inputs are considered when determining the value of our 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 our 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 we believe our 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 | We guarantee the borrowings of certain independently controlled automotive parts stores and businesses (“independents”) and certain other affiliates in which we have 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. We have no voting interest or equity conversion rights in any of the independents. We do not control the independents or the affiliates but receive a fee for the guarantees. We have concluded that the independents are variable interest entities, but that we are 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, we concluded that the affiliates are not variable interest entities. Our maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to our guarantees. While such borrowings of the independents and affiliates are outstanding, we are required to maintain compliance with certain covenants. At December 31, 2022, we were in compliance with all such covenants.In the event that we are required to make payments in connection with these guarantees, we would obtain and liquidate certain collateral pledged by the independents or affiliates (e.g., accounts receivable and inventory) to recover all or a substantial portion of the amounts paid under the guarantees. We recognize a liability equal to current expected credit losses over the lives of the loans in the guaranteed loan portfolio, based on a consideration of historical experience, current conditions, the nature and expected value of any collateral, and reasonable and supportable forecasts. To date, we have had no significant losses in connection with guarantees of independents’ and affiliates’ borrowings and the current expected credit loss reserve is not material. As of December 31, 2022, 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. |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following table presents a summary of our reportable segment financial information from continuing operations: 2022 2021 2020 Net sales: Automotive $ 13,666,634 $ 12,544,131 $ 10,860,695 Industrial 8,429,339 6,326,379 5,676,738 Total net sales $ 22,095,973 $ 18,870,510 $ 16,537,433 Segment profit: Automotive $ 1,191,674 $ 1,073,427 $ 867,743 Industrial 886,636 595,232 481,854 Total segment profit $ 2,078,310 $ 1,668,659 $ 1,349,597 Interest expense, net (73,886) (62,150) (91,048) Corporate expense (269,364) (174,842) (149,754) Intangible asset amortization (157,437) (103,273) (94,962) Other unallocated costs (5,021) (128,048) (634,465) Income before income taxes from continuing operations $ 1,572,602 $ 1,200,346 $ 379,368 The following table presents a summary of the other unallocated costs: 2022 2021 2020 Other unallocated costs: Gain on sales of real estate (1) $ 102,803 $ — $ — Gain on insurance proceeds (2) 1,507 3,862 13,448 Product liability adjustment (3) (28,730) — — Product liability damages award (4) — (77,421) — Loss on software disposal (5) — (61,063) — Gain on equity investment (6) — 10,229 — Goodwill impairment charge (7) — — (506,721) Restructuring costs and special termination costs (8) — — (50,019) Realized currency and other divestiture losses (9) — — (11,356) Inventory adjustment (10) — — (40,000) Transaction and other costs (11) (80,601) (3,655) (39,817) Total other unallocated costs $ (5,021) $ (128,048) $ (634,465) (1) Amount reflects a gain on the sale of real estate that had been leased to S.P. Richards. (2) Amount reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs. (3) Amount to remeasure product liability for a revised estimate of the number of claims to be incurred in future periods, among other assumptions. (4) Amount reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim. (5) Amount reflects a loss on an internally developed software project that was disposed of due to a change in management strategy related to advances in alternative technologies. (6) Amount relates to gains recognized upon remeasurement of certain equity investments to fair value upon acquiring the remaining equity of those entities. (7) Amount reflects a goodwill impairment charge related to our European reporting unit. (8) Amount reflects restructuring and special termination costs related to 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. (9) Amount reflects realized currency losses related to divestitures. (10) Amount reflects a $40 million increase to cost of goods sold due to the correction of an immaterial error related to the accounting in prior years for consideration received from vendors. (11) Amount for 2022 primarily includes costs of $67 million associated with the January 3, 2022 acquisition and integration of KDG which includes a $17 million impairment charge. The impairment charge was driven by a decision to retire certain legacy trade names, classified as other intangible assets, prior to the end of their estimated useful lives as part of executing our KDG integration and rebranding strategy. Separately, this adjustment includes an $11 million loss related to an investment. Amount for 2021 include transaction and other costs related to acquisitions. For 2020, amount 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. The following table presents a summary of our reportable segment total assets: 2022 2021 Assets: Automotive $ 8,755,363 $ 8,508,487 Industrial 2,474,392 1,909,053 Corporate 865,001 612,854 Goodwill and other intangible assets 4,400,623 3,321,708 Total assets $ 16,495,379 $ 14,352,102 The following table presents a summary of select financial information by reportable segment from continuing operations: 2022 2021 2020 Depreciation and amortization: Automotive $ 146,819 $ 143,052 $ 120,932 Industrial 29,670 24,100 16,315 Corporate 13,893 20,546 40,633 Intangible asset amortization 157,437 103,273 94,962 Total depreciation and amortization $ 347,819 $ 290,971 $ 272,842 Capital expenditures: Automotive $ 235,182 $ 198,268 $ 133,523 Industrial 33,165 35,626 19,287 Corporate 71,285 32,242 692 Total capital expenditures $ 339,632 $ 266,136 $ 153,502 Net sales: United States $ 14,965,462 $ 12,136,689 $ 10,863,348 Europe 3,071,964 2,908,156 2,408,913 Canada 1,960,227 1,779,663 1,526,202 Australasia 2,044,432 2,002,188 1,691,190 Mexico 53,888 43,814 47,780 Total net sales $ 22,095,973 $ 18,870,510 $ 16,537,433 Net property, plant and equipment: United States $ 790,121 $ 750,267 $ 728,802 Europe 200,898 179,001 164,268 Canada 113,574 102,484 102,409 Australasia 220,839 201,971 165,596 Mexico 582 676 968 Total net property, plant and equipment $ 1,326,014 $ 1,234,399 $ 1,162,043 |
Schedule of Revenue from External Customers by Geographic Areas | The following table presents disaggregated geographical net sales from contracts with customers by reportable segment: 2022 2021 2020 North America: Automotive $ 9,015,501 $ 8,103,896 $ 7,177,543 Industrial 7,964,076 5,856,270 5,259,787 Total North America $ 16,979,577 $ 13,960,166 $ 12,437,330 Australasia: Automotive $ 1,579,169 $ 1,532,079 $ 1,274,239 Industrial 465,263 470,109 416,951 Total Australasia $ 2,044,432 $ 2,002,188 $ 1,691,190 Europe - Automotive $ 3,071,964 $ 2,908,156 $ 2,408,913 Total net sales $ 22,095,973 $ 18,870,510 $ 16,537,433 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill and Other Identifiable Intangible Assets | The changes in the carrying amount of goodwill during the years ended December 31, 2022 and 2021 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, 2021 $ 1,505,523 $ 411,954 $ 1,917,477 $ 1,498,257 Additions 85,182 2,701 87,883 72,189 Amortization — — — (103,273) Foreign currency translation (83,243) (6,810) (90,053) (60,772) Balance as of December 31, 2021 1,507,462 407,845 1,915,307 1,406,401 Additions 149,896 609,892 759,788 663,077 Amortization — — — (157,437) Impairments — — — (17,461) Foreign currency translation (77,824) (9,158) (86,982) (82,070) Balance as of December 31, 2022 $ 1,579,534 $ 1,008,579 $ 2,588,113 $ 1,812,510 |
Schedule of 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, 2022 and 2021 are as follows: 2022 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,121,171 $ (566,111) $ 1,555,060 $ 1,590,733 $ (464,198) $ 1,126,535 Trademarks 342,136 (85,188) 256,948 337,802 (58,073) 279,729 Non-competition agreements 5,575 (5,073) 502 5,430 (5,293) 137 $ 2,468,882 $ (656,372) $ 1,812,510 $ 1,933,965 $ (527,564) $ 1,406,401 |
Schedule of Estimated Other Intangible Assets Amortization Expense | Estimated other intangible assets amortization expense for the succeeding five years is as follows: 2023 $ 145,357 2024 131,443 2025 130,103 2026 128,508 2027 127,706 $ 663,117 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2022 and December 31, 2021, consisted of the following: 2022 2021 Land $ 115,845 $ 126,513 Buildings and leasehold improvements 834,786 873,912 Machinery, equipment and other 1,811,060 1,573,680 Property, plant and equipment, at cost 2,761,691 2,574,105 Less: accumulated depreciation 1,435,677 1,339,706 Property, plant and equipment, net $ 1,326,014 $ 1,234,399 |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of 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, 2022 December 31, 2021 Receivables sold to the financial institution and derecognized $ 8,946,730 $ 7,520,474 Cash collected on sold receivables $ 8,746,740 $ 7,520,465 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Amount of Credit Facilities | Amounts outstanding under our credit facilities, net of debt issuance costs consist of the following: December 31, 2022 December 31, 2021 Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.13% variable, due September 30, 2026 $ — $ — January 6, 2022, Senior Unsecured Notes, $500,000, 1.75% fixed, due February 1, 2025 500,000 — January 6, 2022, Senior Unsecured Notes, $500,000, 2.75% fixed, due February 1, 2032 500,000 — October 27, 2020, Senior Unsecured Notes, $500,000, 1.88% fixed, due November 1, 2030 500,000 500,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000, 3.24% fixed, due December 2, 2023 250,000 250,000 June 30, 2019, Series A Senior Unsecured Notes, A$155,000, 3.10% fixed, due June 30, 2024 105,664 112,375 October 30, 2017, Series J Senior Unsecured Notes, €225,000, 1.40% fixed, due October 30, 2024 240,840 254,835 June 30, 2019, Series B Senior Unsecured Notes, A$155,000, 3.43% fixed, due June 30, 2026 105,664 112,375 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.24% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, €250,000, 1.81% fixed, due October 30, 2027 267,600 283,150 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 3.70% fixed, due October 30, 2027 120,000 120,000 May 31, 2019, Series A Senior Unsecured Notes, €50,000, 1.55% fixed, due May 31, 2029 53,520 56,630 October 30, 2017, Series L Senior Unsecured Notes, €125,000, 2.02% fixed, due October 30, 2029 133,800 141,575 May 31, 2019, Series B Senior Unsecured Notes, €100,000, 1.74% fixed, due May 31, 2031 107,040 113,260 October 30, 2017, Series M Senior Unsecured Notes, €100,000, 2.32% fixed, due October 30, 2032 107,040 113,260 May 31, 2019, Series C Senior Unsecured Notes, €100,000, 1.95% fixed, due May 31, 2034 107,040 113,260 Other unsecured debt 2,977 840 Total unsecured debt 3,351,185 2,421,560 Unamortized debt issuance costs (12,236) (8,041) Unamortized discounts (10,126) (4,156) Total debt 3,328,823 2,409,363 Less debt due within one year 252,029 — Long-term debt, excluding current portion $ 3,076,794 $ 2,409,363 |
Schedule of Maturities of Long-term Debt | Approximate maturities under our credit facilities are as follows: 2023 $ 252,029 2024 347,452 2025 500,000 2026 355,664 2027 387,600 Thereafter 1,508,440 $ 3,351,185 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 December 31, 2021 Instrument Balance sheet location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 606,950 $ 46,670 $ 925,810 $ 73,819 Forward contracts Other current liabilities $ 106,800 $ 3,064 $ 235,180 $ 2,935 Foreign currency debt Long-term debt € 700,000 $ 749,280 € 700,000 $ 792,820 |
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: Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2022 2021 2020 2022 2021 2020 Year Ended December 31, Cash Flow Hedges: Interest rate contract $ — $ — $ (29,464) $ — $ — $ — Net Investment Hedges: Forward contracts 103,240 56,362 (85,390) 27,923 26,295 27,146 Foreign currency debt 43,540 68,250 (77,070) — — — Total $ 146,780 $ 124,612 $ (191,924) $ 27,923 $ 26,295 $ 27,146 |
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: Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2022 2021 2020 2022 2021 2020 Year Ended December 31, Cash Flow Hedges: Interest rate contract $ — $ — $ (29,464) $ — $ — $ — Net Investment Hedges: Forward contracts 103,240 56,362 (85,390) 27,923 26,295 27,146 Foreign currency debt 43,540 68,250 (77,070) — — — Total $ 146,780 $ 124,612 $ (191,924) $ 27,923 $ 26,295 $ 27,146 |
Leased Properties (Tables)
Leased Properties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Locations of Operating Lease 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, 2022 December 31, 2021 Operating lease assets Operating lease assets $ 1,104,678 $ 1,053,689 Operating lease liabilities: Current operating lease liabilities Other current liabilities $ 286,713 $ 280,575 Noncurrent operating lease liabilities Operating lease liabilities $ 836,019 $ 789,175 Total operating lease liabilities $ 1,122,732 $ 1,069,750 |
Schedule of Components of Operating Leases | Our weighted average remaining lease term and weighted average discount rate for operating leases are: December 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 5.32 5.19 Weighted average discount rate 2.51 % 2.03 % |
Schedule of Undiscounted Future Minimum Lease Payments | 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, 2022: 2023 $ 325,370 2024 269,385 2025 198,100 2026 138,333 2027 95,975 Thereafter 216,085 Total undiscounted future minimum lease payments 1,243,248 Less: Difference between undiscounted lease payments and discounted operating lease liabilities 120,516 Total operating lease liabilities $ 1,122,732 |
Schedule of Lease Cost | The table below presents operating lease costs and supplemental cash flow information related to leases: 2022 2021 2020 Operating lease costs $ 350,025 $ 336,228 $ 313,315 Cash paid for amounts included in the measurement of operating lease liabilities $ 358,767 $ 340,243 $ 323,336 Operating lease assets obtained in exchange for new operating lease liabilities $ 411,052 $ 358,393 $ 302,114 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligation | Changes in benefit obligations for the years ended December 31, 2022 and 2021 were: 2022 2021 Changes in benefit obligation Benefit obligation at beginning of year $ 2,532,973 $ 2,678,966 Service cost 10,204 12,218 Interest cost 75,248 71,693 Plan participants’ contributions 1,892 1,908 Actuarial gain (546,266) (87,966) Foreign currency exchange rate changes (15,744) (1,184) Gross benefits paid (135,907) (142,327) Curtailments — (80) Settlements (276) (255) Acquired plans 1,039 — Benefit obligation at end of year $ 1,923,163 $ 2,532,973 |
Schedule of Assumptions Used to Measure Pension Benefit Obligations | The assumptions used to measure the pension benefit obligations for the plans at December 31, 2022 and 2021, were: 2022 2021 Weighted average discount rate 5.61 % 3.04 % Rate of increase in future compensation levels 3.16 % 3.13 % |
Schedule of Changes in Plan Assets | Changes in plan assets for the years ended December 31, 2022 and 2021 were: 2022 2021 Changes in plan assets Fair value of plan assets at beginning of year $ 2,756,803 $ 2,545,359 Actual return on plan assets (493,359) 330,402 Foreign currency exchange rate changes (15,599) 80 Employer contributions 15,504 21,635 Plan participants’ contributions 1,892 1,908 Benefits paid (135,907) (142,327) Settlements (276) (254) Fair value of plan assets at end of year $ 2,129,058 $ 2,756,803 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | For the years ended December 31, 2022 and 2021, 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: 2022 2021 Aggregate projected benefit obligation $ 208,939 $ 323,593 Aggregate fair value of plan assets $ — $ 47,445 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | For the years ended December 31, 2022 and 2021, 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: 2022 2021 Aggregate accumulated benefit obligation $ 192,421 $ 247,277 Aggregate fair value of plan assets $ — $ — |
Schedule of Asset Allocations for Funded Pension Plans | The asset allocations for our funded pension plans at December 31, 2022 and 2021, and the target allocation for 2023, by asset category were: Target Allocation Percentage of Plan Assets at December 31 2023 2022 2021 Asset Category Equity securities 58 % 59 % 57 % Debt securities 41 % 41 % 43 % Other 1 % — % — % 100 % 100 % 100 % |
Schedule of Fair Value of Plan Assets by Asset Category | 2022 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Equity Securities Common stocks — mutual funds — equity $ 285,103 $ 48,521 $ 236,582 $ — $ — Genuine Parts Company common stock 261,869 — 261,869 — — Other stocks 711,830 — 711,830 — — Debt Securities Short-term investments 41,076 — 41,076 — — Cash and equivalents 8,632 — 8,632 — — Government bonds 344,787 — 411 344,376 — Corporate bonds 412,896 — — 412,896 — Asset-backed and mortgage-backed securities 9,925 — — 9,925 — Convertible Securities 1,159 — — 1,159 — Other-international 37,304 — 37,304 — — Municipal bonds 14,442 — — 14,442 — Other Options and Futures 35 — 35 — — Total $ 2,129,058 $ 48,521 $ 1,297,739 $ 782,798 $ — 2021 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Equity Securities Common stocks — mutual funds — equity $ 388,591 $ 64,669 $ 323,922 $ — $ — Genuine Parts Company common stock 210,510 — 210,510 — — Other stocks 971,020 — 971,020 — — Debt Securities Short-term investments 46,815 — 46,815 — — Cash and equivalents 22,084 — 22,084 — — Government bonds 425,877 — 4,513 421,364 — Corporate bonds 598,216 — — 598,216 — Asset-backed and mortgage-backed securities 12,894 — — 12,894 — Other-international 61,008 — 46,133 14,875 — Municipal bonds 19,621 — — 19,621 — Other Cash surrender value of life insurance policies 167 — 167 — — Total $ 2,756,803 $ 64,669 $ 1,625,164 $ 1,066,970 $ — |
Schedule of 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: 2022 2021 Other long-term asset $ 414,834 $ 499,978 Other current liability (12,537) (12,546) Pension and other post-retirement liabilities (196,402) (263,602) $ 205,895 $ 223,830 |
Schedule of Amounts Recognized In Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive (loss) income consist of: 2022 2021 Net actuarial loss $ 682,884 $ 625,339 Prior service cost 7,273 7,958 $ 690,157 $ 633,297 |
Schedule of Expected Cash Flows for Pension Plans | Information about the expected cash flows for the pension plans follows: Employer contribution 2023 (expected) $ 4,449 Expected benefit payments: 2023 $ 138,411 2024 $ 140,826 2025 $ 143,591 2026 $ 145,953 2027 $ 147,677 2027 through 2030 $ 736,560 |
Schedule of Components of Net Periodic Benefit (Income) Cost | Net periodic benefit income included the following components: 2022 2021 2020 Service cost $ 10,204 $ 12,218 $ 12,105 Interest cost 75,248 71,693 83,732 Expected return on plan assets (150,318) (153,822) (154,111) Amortization of prior service cost 691 690 692 Amortization of actuarial loss 37,065 49,897 39,613 Net periodic benefit income $ (27,110) $ (19,324) $ (17,969) |
Schedule of 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: 2022 2021 2020 Current year actuarial loss (gain) $ 97,412 $ (264,547) $ 24,613 Recognition of actuarial loss (37,065) (49,897) (39,613) Recognition of prior service cost (691) (690) (692) Recognition of curtailment (loss) gain — (5) 435 Other 68 (29) — Total recognized in other comprehensive (loss) income $ 59,724 $ (315,168) $ (15,257) Total recognized in net periodic benefit income and other comprehensive (loss) income $ 32,614 $ (334,492) $ (33,226) |
Schedule of Assumptions Used To Measure Net Periodic Benefit (Income) Cost | The assumptions used in measuring the net periodic benefit income for the plans follow: 2022 2021 2020 Weighted average discount rate 3.04 % 2.72 % 3.43 % Rate of increase in future compensation levels 3.13 % 3.11 % 3.13 % Expected long-term rate of return on plan assets 6.34 % 6.88 % 7.11 % |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date for the KDG acquisition as well as adjustments made when finalizing the acquisition accounting during the year ended December 31, 2022 (referred to as the "measurement period adjustments"). The measurement period adjustments primarily resulted from revisions to the valuation of inventory and intangible assets, deferred taxes, and long-term liabilities. As of January 3, 2022 Initial Balance Measurement Period Adjustments As Adjusted Trade accounts receivable $ 156,000 $ — $ 156,000 Merchandise inventories 166,000 (14,000) 152,000 Prepaid expenses and other current assets 39,000 (1,000) 38,000 Property, plant and equipment 26,000 (2,000) 24,000 Operating lease assets 49,000 (5,000) 44,000 Other assets 1,000 — 1,000 Other intangible assets 574,000 (6,000) 568,000 Goodwill 592,000 9,000 601,000 Total assets acquired 1,603,000 (19,000) 1,584,000 Trade accounts payable 85,000 — 85,000 Other current liabilities 32,000 — 32,000 Operating lease liabilities 17,000 (1,000) 16,000 Deferred tax liabilities 121,000 (13,000) 108,000 Other long-term liabilities 39,000 (8,000) 31,000 Total liabilities assumed 294,000 (22,000) 272,000 Net assets acquired $ 1,309,000 $ 3,000 $ 1,312,000 |
Schedule of Results of Operations, Assets and Liabilities of Discontinued Operations | Our results of operations for discontinued operations were: Year Ended December 31, 2022 2021 2020 Net sales $ — $ — $ 846,944 Cost of goods sold — — 632,007 Gross profit — — 214,937 Operating and non-operating expenses — — 179,461 Loss on disposal — — 223,928 Loss before income taxes — — (188,452) Income taxes — — 4,045 Net loss from discontinued operations $ — $ — $ (192,497) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Company's Nonvested Share Awards (RSUs) Activity | A summary of our 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 829 $ 98.25 Granted 506 $ 129.87 Vested (276) $ 104.22 Forfeited (65) $ 105.01 Nonvested at end of year 994 $ 110.45 1.4 $ 172,409 |
Schedule of Company's Share-Based Compensation Activity and Related Information | A summary of our 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 634 $ 90.93 Granted — $ — Exercised (310) $ 89.22 Forfeited (7) $ 89.27 Outstanding at end of year 317 $ 92.65 2.4 $ 25,607 Exercisable at end of year 317 $ 92.65 2.4 $ 25,607 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following tables present the changes in AOCL by component: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2022 $ (463,227) $ (15,042) $ (379,470) $ (857,739) Other comprehensive (loss) before reclassifications (71,258) — (143,890) (215,148) Amounts reclassified from accumulated other comprehensive loss 27,875 12,470 — 40,345 Net current period other comprehensive (loss) (43,383) 12,470 (143,890) (174,803) Ending balance, December 31, 2022 $ (506,610) $ (2,572) $ (523,360) $ (1,032,542) 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 income before reclassifications 192,382 — (65,843) 126,539 Amounts reclassified from accumulated other comprehensive loss 37,259 14,965 — 52,224 Net current period other comprehensive income 229,641 14,965 (65,843) 178,763 Ending balance, December 31, 2021 $ (463,227) $ (15,042) $ (379,470) $ (857,739) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows: 2022 2021 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 312,445 $ 301,302 Operating lease liabilities 314,804 300,705 Pension liability not yet deducted for tax purposes 168,925 171,256 Capital loss — 7,333 Net operating loss 49,787 48,865 845,961 829,461 Deferred tax liabilities related to: Employee and retiree benefits 225,947 235,847 Inventory 77,866 87,062 Operating lease assets 305,885 295,801 Other intangible assets 468,733 365,557 Property, plant and equipment 91,706 72,740 Other 38,597 18,176 1,208,734 1,075,183 Net deferred tax liability before valuation allowance (362,773) (245,722) Valuation allowance (27,362) (34,227) Total net deferred tax liability $ (390,135) $ (279,949) |
Schedule of Components of Income before Income Taxes | The components of income before income taxes are as follows: 2022 2021 2020 United States $ 1,100,584 $ 762,472 $ 706,594 Foreign 472,018 437,874 (327,226) Income before income taxes $ 1,572,602 $ 1,200,346 $ 379,368 |
Schedule of Components of Income Tax Expense | The components of income tax expense are as follows: 2022 2021 2020 Current: Federal $ 196,634 $ 116,425 $ 130,680 State 70,453 34,311 35,474 Foreign 120,594 119,144 77,541 Deferred: Federal 12,727 24,233 2,048 State 4,981 9,485 801 Foreign (15,488) (2,042) (30,571) $ 389,901 $ 301,556 $ 215,973 |
Schedule of 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: 2022 2021 2020 Statutory rate applied to income (1) $ 330,246 $ 252,073 $ 79,667 Plus state income taxes, net of Federal tax benefit 59,593 34,599 28,658 Taxation of foreign operations, net (2) 3,347 2,299 (9,072) Non-deductible goodwill impairment tax effect — — 106,411 Foreign rate change - deferred tax remeasurement — 17,032 9,045 Valuation allowance (7,153) (2,486) 1,995 Other 3,868 (1,961) (731) $ 389,901 $ 301,556 $ 215,973 (1) U.S. statutory rates applied to income are as follows: 2022, 2021 and 2020 at 21%. (2) Our effective tax rate reflects the impact 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. |
Schedule of 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: 2022 2021 2020 Balance at beginning of year $ 19,501 $ 23,237 $ 21,461 Additions based on tax positions related to the current year 1,475 2,196 3,771 Additions for tax positions of prior years 89 156 3,480 Reductions for tax positions for prior years (523) (733) (1,382) Reduction for lapse in statute of limitations (921) (2,843) (3,765) Settlements — (2,512) (328) Balance at end of year $ 19,621 $ 19,501 $ 23,237 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) location $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2019 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of locations (more than) | location | 10,600 | |||
Provisions for doubtful accounts | $ 19,791,000 | $ 17,739,000 | $ 23,577,000 | |
Allowance for doubtful accounts receivable | 54,000,000 | 44,000,000 | ||
Excess of FIFO costs over stated LIFO value | 835,000,000 | 628,000,000 | ||
Reduction in cost of goods sold by the effect of LIFO liquidations | 0 | |||
Impairment of intangible assets | 17,461,000 | $ 61,000,000 | 6,000,000 | |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, administrative and other expenses | |||
Selling, administrative and other expenses | 5,758,295,000 | $ 5,162,506,000 | 4,386,739,000 | |
Advertising costs | $ 236,000,000 | $ 211,000,000 | 194,000,000 | |
Restructuring cost | $ 50,000,000 | |||
Number of common shares issued for each RSU exercised (in shares) | shares | 1 | |||
Outstanding options to purchase common shares not included in dilutive share (in shares) | shares | 4,000 | 186,000 | 1,600,000 | |
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 72 | $ 72 | $ 72 | |
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 179 | $ 179 | $ 179 | |
Stockholders' equity | $ 3,804,447,000 | $ 3,503,290,000 | $ 3,218,003,000 | $ 3,695,500,000 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 6,223,000 | (11,432,000) | ||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 4,541,640,000 | 4,086,325,000 | 3,979,779,000 | 4,571,860,000 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity | 6,223,000 | $ (11,432,000) | ||
Level 2 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt instrument, fair value disclosure | 2,900,000,000 | 2,500,000,000 | ||
Shipping and Handling | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Selling, administrative and other expenses | $ 407,000,000 | $ 350,000,000 | $ 302,000,000 | |
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) | 3 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 |
Segment Data - Additional Infor
Segment Data - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | |||
Income (loss) from continuing operations before income taxes, foreign | $ 472,018 | $ 437,874 | $ (327,226) |
Segment Data - Summary of Segme
Segment Data - Summary of Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 03, 2022 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Total net sales | $ 22,095,973 | $ 18,870,510 | $ 16,537,433 | ||
Intangible asset amortization | (157,437) | (103,273) | (95,000) | ||
Other unallocated costs | |||||
Gain on sales of real estate | 102,803 | 0 | 0 | ||
Gain on insurance proceeds | 1,507 | 3,862 | 13,448 | ||
Product liability adjustment | (28,730) | 0 | 0 | ||
Litigation settlement amount | 0 | (77,421) | 0 | ||
Loss on software disposal | 0 | (61,063) | 0 | ||
Gain on equity investment | 0 | 10,229 | 0 | ||
Goodwill impairment charge | 0 | 0 | (506,721) | ||
Restructuring and special termination costs | 0 | 0 | (50,019) | ||
Realized currency and other divestiture losses | 0 | 0 | (11,356) | ||
Inventory adjustment | 0 | 0 | (40,000) | ||
Transaction and other costs | (80,601) | (3,655) | (39,817) | ||
Other unallocated costs | (5,021) | (128,048) | (634,465) | ||
Income before income taxes | 1,572,602 | 1,200,346 | 379,368 | ||
Acquisition and integration costs | $ 67,000 | ||||
Impairment of intangible assets | 17,461 | 61,000 | 6,000 | ||
Total assets | 16,495,379 | 14,352,102 | |||
Total depreciation and amortization | 347,819 | 290,971 | 272,842 | ||
Total capital expenditures | 339,632 | 266,136 | 153,502 | ||
Total net property, plant and equipment | 1,326,014 | 1,234,399 | 1,162,043 | ||
SPR | |||||
Other unallocated costs | |||||
Credit loss expense | 11,000 | 17,000 | |||
Incremental expense | 10,000 | ||||
Error Correction, Immaterial | |||||
Other unallocated costs | |||||
Inventory adjustment | (40,000) | ||||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 14,965,462 | 12,136,689 | 10,863,348 | ||
Other unallocated costs | |||||
Total net property, plant and equipment | 790,121 | 750,267 | 728,802 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 3,071,964 | 2,908,156 | 2,408,913 | ||
Other unallocated costs | |||||
Total net property, plant and equipment | 200,898 | 179,001 | 164,268 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 1,960,227 | 1,779,663 | 1,526,202 | ||
Other unallocated costs | |||||
Total net property, plant and equipment | 113,574 | 102,484 | 102,409 | ||
Australasia | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 2,044,432 | 2,002,188 | 1,691,190 | ||
Other unallocated costs | |||||
Total net property, plant and equipment | 220,839 | 201,971 | 165,596 | ||
Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 53,888 | 43,814 | 47,780 | ||
Other unallocated costs | |||||
Total net property, plant and equipment | 582 | 676 | 968 | ||
Automotive | |||||
Other unallocated costs | |||||
Goodwill impairment charge | 0 | ||||
Automotive | Europe | |||||
Other unallocated costs | |||||
Goodwill impairment charge | $ (507,000) | ||||
Automotive | Australasia | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 1,579,169 | 1,532,079 | 1,274,239 | ||
Industrial | |||||
Other unallocated costs | |||||
Goodwill impairment charge | 0 | ||||
Industrial | Australasia | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 465,263 | 470,109 | 416,951 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total segment profit | 2,078,310 | 1,668,659 | 1,349,597 | ||
Operating Segments | Automotive | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 13,666,634 | 12,544,131 | 10,860,695 | ||
Total segment profit | 1,191,674 | 1,073,427 | 867,743 | ||
Other unallocated costs | |||||
Total assets | 8,755,363 | 8,508,487 | |||
Total depreciation and amortization | 146,819 | 143,052 | 120,932 | ||
Total capital expenditures | 235,182 | 198,268 | 133,523 | ||
Operating Segments | Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 8,429,339 | 6,326,379 | 5,676,738 | ||
Total segment profit | 886,636 | 595,232 | 481,854 | ||
Other unallocated costs | |||||
Total assets | 2,474,392 | 1,909,053 | |||
Total depreciation and amortization | 29,670 | 24,100 | 16,315 | ||
Total capital expenditures | 33,165 | 35,626 | 19,287 | ||
Corporate, Non-Segment | |||||
Other unallocated costs | |||||
Total assets | 865,001 | 612,854 | |||
Total depreciation and amortization | 13,893 | 20,546 | 40,633 | ||
Total capital expenditures | 71,285 | 32,242 | 692 | ||
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Interest expense, net | (73,886) | (62,150) | (91,048) | ||
Corporate expense | (269,364) | (174,842) | (149,754) | ||
Intangible asset amortization | (157,437) | (103,273) | (94,962) | ||
Other unallocated costs | |||||
Total assets | 4,400,623 | 3,321,708 | |||
Total depreciation and amortization | $ 157,437 | $ 103,273 | $ 94,962 |
Segment Data - Net Sales by Geo
Segment Data - Net Sales by Geographical Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 22,095,973 | $ 18,870,510 | $ 16,537,433 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 16,979,577 | 13,960,166 | 12,437,330 |
Australasia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2,044,432 | 2,002,188 | 1,691,190 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,071,964 | 2,908,156 | 2,408,913 |
Automotive | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 9,015,501 | 8,103,896 | 7,177,543 |
Automotive | Australasia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,579,169 | 1,532,079 | 1,274,239 |
Industrial | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 7,964,076 | 5,856,270 | 5,259,787 |
Industrial | Australasia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 465,263 | $ 470,109 | $ 416,951 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | |||||
Goodwill, beginning balance | $ 1,915,307 | $ 1,917,477 | |||
Additions | 759,788 | 87,883 | |||
Impairments | 0 | 0 | $ (506,721) | ||
Foreign currency translation | (86,982) | (90,053) | |||
Goodwill, ending balance | 2,588,113 | 1,915,307 | 1,917,477 | ||
Other Intangible Assets, Net | |||||
Other intangible assets, net, beginning balance | 1,406,401 | 1,498,257 | |||
Additions | 663,077 | 72,189 | |||
Amortization | (157,437) | (103,273) | (95,000) | ||
Impairments | (17,461) | (61,000) | (6,000) | ||
Foreign currency translation | (82,070) | (60,772) | |||
Other intangible assets, net, ending balance | 1,812,510 | 1,406,401 | 1,498,257 | ||
Goodwill impairment charge | 0 | 0 | 506,721 | ||
KDG | |||||
Goodwill | |||||
Goodwill, ending balance | 601,000 | ||||
Impairment of intangible assets (excluding goodwill) | $ 17,000 | ||||
Other Intangible Assets, Net | |||||
Impairment of intangible assets (excluding goodwill) | $ 17,000 | ||||
Automotive | |||||
Goodwill | |||||
Goodwill, beginning balance | 1,507,462 | 1,505,523 | |||
Additions | 149,896 | 85,182 | |||
Impairments | 0 | ||||
Foreign currency translation | (77,824) | (83,243) | |||
Goodwill, ending balance | 1,579,534 | 1,507,462 | 1,505,523 | ||
Other Intangible Assets, Net | |||||
Goodwill impairment charge | 0 | ||||
Automotive | Europe | |||||
Goodwill | |||||
Impairments | $ (507,000) | ||||
Other Intangible Assets, Net | |||||
Goodwill impairment charge | $ 507,000 | ||||
Industrial | |||||
Goodwill | |||||
Goodwill, beginning balance | 407,845 | 411,954 | |||
Additions | 609,892 | 2,701 | |||
Impairments | 0 | ||||
Foreign currency translation | (9,158) | (6,810) | |||
Goodwill, ending balance | 1,008,579 | $ 407,845 | $ 411,954 | ||
Other Intangible Assets, Net | |||||
Goodwill impairment charge | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Gross Carrying Amounts and Accumulated Amortization Relating to Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,468,882 | $ 1,933,965 | |
Accumulated Amortization | (656,372) | (527,564) | |
Net | 1,812,510 | 1,406,401 | $ 1,498,257 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,121,171 | 1,590,733 | |
Accumulated Amortization | (566,111) | (464,198) | |
Net | 1,555,060 | 1,126,535 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 342,136 | 337,802 | |
Accumulated Amortization | (85,188) | (58,073) | |
Net | 256,948 | 279,729 | |
Non-competition agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 5,575 | 5,430 | |
Accumulated Amortization | (5,073) | (5,293) | |
Net | $ 502 | $ 137 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Other Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for other intangible assets | $ 157,437 | $ 103,273 | $ 95,000 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2023 | 145,357 | ||
2024 | 131,443 | ||
2025 | 130,103 | ||
2026 | 128,508 | ||
2027 | 127,706 | ||
Estimated other intangible assets amortization expense | $ 663,117 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, at cost | $ 2,761,691 | $ 2,574,105 | |||
Less: accumulated depreciation | 1,435,677 | 1,339,706 | |||
Property, plant and equipment, net | 1,326,014 | 1,234,399 | $ 1,162,043 | ||
Loss on software disposal | 0 | 61,063 | 0 | ||
Gain on sale of real estate | 102,803 | 0 | $ 0 | ||
SPR | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain on sale of real estate | $ 103,000 | ||||
Selling, General and Administrative Expenses | |||||
Property, Plant and Equipment [Line Items] | |||||
Loss on software disposal | $ 61,000 | ||||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, at cost | 115,845 | 126,513 | |||
Buildings and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, at cost | 834,786 | 873,912 | |||
Machinery, equipment and other | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, at cost | $ 1,811,060 | $ 1,573,680 |
Accounts Receivable Sales Agr_3
Accounts Receivable Sales Agreement - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Sale agreement term | 3 years | ||
Amount held as collateral | $ 1,100,000,000 | $ 973,000,000 | |
Sale agreement amount | 1,000,000,000 | 800,000,000 | |
Principal amount outstanding of receivables sold at period end | 200,000,000 | ||
Accounts receivable sales transactions fees | $ 27,000,000 | $ 11,000,000 | $ 6,000,000 |
Accounts Receivable Sales Agr_4
Accounts Receivable Sales Agreement - Summary of Accounts Receivable Sales Agreement Activity and Outstanding Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Receivables sold to the financial institution and derecognized | $ 8,946,730 | $ 7,520,474 |
Cash collected on sold receivables | $ 8,746,740 | $ 7,520,465 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Jan. 06, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Weighted average interest rate on outstanding borrowings | 2.33% | 2.35% | |
Unused letter of credit outstanding due to workers' compensation and insurance reserve | $ 71,000,000 | $ 73,000,000 | |
1.750% Senior Unsecured Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Debt instrument, stated percentage | 1.75% | ||
2.750% Senior Unsecured Notes Due 2032 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Debt instrument, stated percentage | 2.75% |
Debt - Outstanding Amount of Cr
Debt - Outstanding Amount of Credit Facilities (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 AUD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Total debt | $ 3,351,185,000 | $ 2,421,560,000 | ||
Unamortized debt issuance costs | (12,236,000) | (8,041,000) | ||
Unamortized discounts | (10,126,000) | (4,156,000) | ||
Total debt | 3,328,823,000 | 2,409,363,000 | ||
Less debt due within one year | 252,029,000 | 0 | ||
Long-term debt, excluding current portion | 3,076,794,000 | 2,409,363,000 | ||
Senior Unsecured Notes, Due February 1, 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, stated percentage | 1.75% | 1.75% | 1.75% | |
Long-term debt | $ 500,000,000 | 0 | ||
Senior Unsecured Notes, Due February 1, 2032 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, stated percentage | 2.75% | 2.75% | 2.75% | |
Long-term debt | $ 500,000,000 | 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 | 1.88% | 1.88% | 1.88% | |
Long-term debt | $ 500,000,000 | 500,000,000 | ||
Series F Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 250,000,000 | |||
Debt instrument, stated percentage | 3.24% | 3.24% | 3.24% | |
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 | 3.10% | 3.10% | 3.10% | |
Long-term debt | $ 105,664,000 | 112,375,000 | ||
Series J Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 225,000,000 | |||
Debt instrument, stated percentage | 1.40% | 1.40% | 1.40% | |
Long-term debt | $ 240,840,000 | 254,835,000 | ||
Series B Senior Unsecured Notes, Due 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 155,000,000 | |||
Debt instrument, stated percentage | 3.43% | 3.43% | 3.43% | |
Long-term debt | $ 105,664,000 | 112,375,000 | ||
Series H Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 250,000,000 | |||
Debt instrument, stated percentage | 3.24% | 3.24% | 3.24% | |
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 | 1.81% | 1.81% | 1.81% | |
Long-term debt | $ 267,600,000 | 283,150,000 | ||
Series I Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 120,000,000 | |||
Debt instrument, stated percentage | 3.70% | 3.70% | 3.70% | |
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 | 1.55% | 1.55% | 1.55% | |
Long-term debt | $ 53,520,000 | 56,630,000 | ||
Series L Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 125,000,000 | |||
Debt instrument, stated percentage | 2.02% | 2.02% | 2.02% | |
Long-term debt | $ 133,800,000 | 141,575,000 | ||
Series B Senior Unsecured Notes, Due 2031 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 100,000,000 | |||
Debt instrument, stated percentage | 1.74% | 1.74% | 1.74% | |
Long-term debt | $ 107,040,000 | 113,260,000 | ||
Series M Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 100,000,000 | |||
Debt instrument, stated percentage | 2.32% | 2.32% | 2.32% | |
Long-term debt | $ 107,040,000 | 113,260,000 | ||
Series C Senior Unsecured Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | € | € 100,000,000 | |||
Debt instrument, stated percentage | 1.95% | 1.95% | 1.95% | |
Long-term debt | $ 107,040,000 | 113,260,000 | ||
Other Unsecured Debt | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured debt | 2,977,000 | 840,000 | ||
Syndicated Facility, Due September 30, 2026 | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,500,000,000 | |||
Line of credit, current | $ 0 | $ 0 | ||
London Interbank Offered Rate (LIBOR) | Syndicated Facility, Due September 30, 2026 | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument basis spread on variable rate | 1.13% |
Debt - Maturity of Credit Facil
Debt - Maturity of Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 252,029 | |
2024 | 347,452 | |
2025 | 500,000 | |
2026 | 355,664 | |
2027 | 387,600 | |
Thereafter | 1,508,440 | |
Total debt | $ 3,351,185 | $ 2,421,560 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Location and Fair Value Amounts of Derivative Instruments (Details) - Designated as Hedging Instrument - Net Investment Hedges € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Prepaid expenses and other current assets | Forward contracts | ||||
Derivative [Line Items] | ||||
Notional amount | $ 606,950 | $ 925,810 | ||
Derivative asset, balance | 46,670 | 73,819 | ||
Other current liabilities | Forward contracts | ||||
Derivative [Line Items] | ||||
Notional amount | 106,800 | 235,180 | ||
Derivative liability, balance | 3,064 | 2,935 | ||
Long-term debt | Foreign currency debt | ||||
Derivative [Line Items] | ||||
Nonderivative notional amount | € | € 700,000 | € 700,000 | ||
Nonderivative balance | $ 749,280 | $ 792,820 |
Derivatives and Hedging - Sch_2
Derivatives and Hedging - Schedule of Gains (Losses) Related to Designated Cash Flow Hedges and Net Investment Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCL Before Reclassifications | $ 146,780 | $ 124,612 | $ (191,924) |
Gain Recognized in Interest Expense For Excluded Components | 27,923 | 26,295 | 27,146 |
Interest rate contract | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCL Before Reclassifications | 0 | 0 | (29,464) |
Forward contracts | Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCL Before Reclassifications | 103,240 | 56,362 | (85,390) |
Gain Recognized in Interest Expense For Excluded Components | 27,923 | 26,295 | 27,146 |
Foreign currency debt | Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCL Before Reclassifications | $ 43,540 | $ 68,250 | $ (77,070) |
Leased Properties - Additional
Leased Properties - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) renewal_option |
Lessee, Lease, Description [Line Items] | |
Number of renewal options (one or more) | renewal_option | 1 |
Option to extend, amount | $ 53 |
Lease not yet commenced, amount | $ 165 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Lease not yet commenced, term of contract | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 20 years |
Lease not yet commenced, term of contract | 25 years |
Leased Properties - Operating L
Leased Properties - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets | $ 1,104,678 | $ 1,053,689 |
Current operating lease liabilities | 286,713 | 280,575 |
Noncurrent operating lease liabilities | 836,019 | 789,175 |
Total operating lease liabilities | $ 1,122,732 | $ 1,069,750 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Leased Properties - Components
Leased Properties - Components of Operating Leases (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 5 years 3 months 25 days | 5 years 2 months 8 days |
Weighted average discount rate | 2.51% | 2.03% |
Leased Properties - Future Leas
Leased Properties - Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 325,370 | |
2024 | 269,385 | |
2025 | 198,100 | |
2026 | 138,333 | |
2027 | 95,975 | |
Thereafter | 216,085 | |
Total undiscounted future minimum lease payments | 1,243,248 | |
Less: Difference between undiscounted lease payments and discounted operating lease liabilities | 120,516 | |
Total operating lease liabilities | $ 1,122,732 | $ 1,069,750 |
Leased Properties - Operating_2
Leased Properties - Operating Lease Costs and Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 350,025 | $ 336,228 | $ 313,315 |
Cash paid for amounts included in the measurement of operating lease liabilities | 358,767 | 340,243 | 323,336 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 411,052 | $ 358,393 | $ 302,114 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization period of plan assets gains and losses (in years) | 5 years | ||
Benefit obligations | $ 1,923,163 | $ 2,532,973 | $ 2,678,966 |
Total accumulated benefit obligations | 1,900,000 | 2,500,000 | |
Actuarial gain | (546,266) | (87,966) | |
Actual return on plan assets | (493,359) | 330,402 | |
Fair value of plan assets | $ 2,129,058 | $ 2,756,803 | 2,545,359 |
Genuine Parts Company common stock as a percentage of total plan assets | 12% | 8% | |
Dividend payments on Genuine Parts Company common stock received by plan | $ 5,000 | $ 5,000 | |
Expected rate of return on plan assets for measuring next fiscal year pension cost or income | 7.09% | ||
Pension benefits expected to be paid from employer assets in next fiscal year | $ 13,000 | ||
US Large-Cap Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 38% | ||
US Mid-Cap Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 9% | ||
International Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 10% | ||
Emerging Market Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 3% | ||
BarCap U.S. Govt/Credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 40% | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | $ 1,700,000 | 2,200,000 | |
Fair value of plan assets | $ 1,900,000 | 2,500,000 | |
Number of plans | plan | 1 | ||
Matching contribution to be received by pension plan participants of a specified percentage of employee's salary | 100% | ||
First percentage of employee's salary out of which matching contribution will be made | 5% | ||
Total defined contribution plans expense | $ 69,000 | $ 60,000 | $ 55,000 |
United States | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain | (442,000) | ||
Actual return on plan assets | 581,000 | ||
Loss from discount rate change | 466,000 | ||
United States | U.S. Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain | 61,000 | ||
Loss from discount rate change | $ (63,000) |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in benefit obligation | |||
Benefit obligation at beginning of year | $ 2,532,973 | $ 2,678,966 | |
Service cost | 10,204 | 12,218 | $ 12,105 |
Interest cost | 75,248 | 71,693 | 83,732 |
Plan participants’ contributions | 1,892 | 1,908 | |
Actuarial gain | (546,266) | (87,966) | |
Foreign currency exchange rate changes | (15,744) | (1,184) | |
Gross benefits paid | (135,907) | (142,327) | |
Curtailments | 0 | (80) | |
Settlements | (276) | (255) | |
Acquired plans | 1,039 | 0 | |
Benefit obligation at end of year | $ 1,923,163 | $ 2,532,973 | $ 2,678,966 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Measure Pension Benefit Obligations for Plans (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Weighted average discount rate | 5.61% | 3.04% |
Rate of increase in future compensation levels | 3.16% | 3.13% |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Changes in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in plan assets | ||
Fair value of plan assets at beginning of year | $ 2,756,803 | $ 2,545,359 |
Actual return on plan assets | (493,359) | 330,402 |
Foreign currency exchange rate changes | (15,599) | 80 |
Employer contributions | 15,504 | 21,635 |
Plan participants’ contributions | 1,892 | 1,908 |
Benefits paid | (135,907) | (142,327) |
Settlements | (276) | (254) |
Fair value of plan assets at end of year | $ 2,129,058 | $ 2,756,803 |
Employee Benefit Plans - Aggreg
Employee Benefit Plans - Aggregate Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Aggregate projected benefit obligation | $ 208,939 | $ 323,593 |
Aggregate fair value of plan assets | $ 0 | $ 47,445 |
Employee Benefit Plans - Aggr_2
Employee Benefit Plans - Aggregate Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Aggregate accumulated benefit obligation | $ 192,421 | $ 247,277 |
Aggregate fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocations for Funded Pension Plans (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 100% | |
Actual plan asset allocation | 100% | 100% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 58% | |
Actual plan asset allocation | 59% | 57% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 41% | |
Actual plan asset allocation | 41% | 43% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 1% | |
Actual plan asset allocation | 0% | 0% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 2,129,058 | $ 2,756,803 | $ 2,545,359 |
Assets Measured at NAV | 48,521 | 64,669 | |
Common stocks — mutual funds — equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 285,103 | 388,591 | |
Assets Measured at NAV | 48,521 | 64,669 | |
Genuine Parts Company common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 261,869 | 210,510 | |
Assets Measured at NAV | 0 | 0 | |
Other stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 711,830 | 971,020 | |
Assets Measured at NAV | 0 | 0 | |
Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 41,076 | 46,815 | |
Assets Measured at NAV | 0 | 0 | |
Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,632 | 22,084 | |
Assets Measured at NAV | 0 | 0 | |
Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 344,787 | 425,877 | |
Assets Measured at NAV | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 412,896 | 598,216 | |
Assets Measured at NAV | 0 | 0 | |
Asset-backed and mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 9,925 | 12,894 | |
Assets Measured at NAV | 0 | 0 | |
Convertible Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,159 | ||
Assets Measured at NAV | 0 | ||
Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 37,304 | 61,008 | |
Assets Measured at NAV | 0 | 0 | |
Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 14,442 | 19,621 | |
Assets Measured at NAV | 0 | 0 | |
Options and Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 35 | ||
Assets Measured at NAV | 0 | ||
Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 167 | ||
Assets Measured at NAV | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,297,739 | 1,625,164 | |
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 | 236,582 | 323,922 | |
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 | 261,869 | 210,510 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 711,830 | 971,020 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 41,076 | 46,815 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,632 | 22,084 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 411 | 4,513 | |
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) | Convertible Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 37,304 | 46,133 | |
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) | Options and Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 35 | ||
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 | 167 | ||
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 782,798 | 1,066,970 | |
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 | 344,376 | 421,364 | |
Significant Observable Inputs (Level 2) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 412,896 | 598,216 | |
Significant Observable Inputs (Level 2) | Asset-backed and mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 9,925 | 12,894 | |
Significant Observable Inputs (Level 2) | Convertible Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,159 | ||
Significant Observable Inputs (Level 2) | Other-international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 14,875 | |
Significant Observable Inputs (Level 2) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 14,442 | 19,621 | |
Significant Observable Inputs (Level 2) | Options and Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Significant Observable Inputs (Level 2) | Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
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 | 0 | |
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) | Convertible Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 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) | Options and Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 0 | ||
Significant Unobservable Inputs (Level 3) | Cash surrender value of life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 0 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Other long-term asset | $ 414,834 | $ 499,978 |
Other current liability | (12,537) | (12,546) |
Pension and other post-retirement liabilities | (196,402) | (263,602) |
Amounts recognized in consolidated balance sheets | $ 205,895 | $ 223,830 |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 682,884 | $ 625,339 |
Prior service cost | 7,273 | 7,958 |
Amounts recognized in accumulated other comprehensive loss | $ 690,157 | $ 633,297 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Cash Flows for Pension Plans (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Retirement Benefits [Abstract] | |
Employer contribution 2020 (expected) | $ 4,449 |
Expected benefit payments: | |
2023 | 138,411 |
2024 | 140,826 |
2025 | 143,591 |
2026 | 145,953 |
2027 | 147,677 |
2027 through 2030 | $ 736,560 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit (Income) Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 10,204 | $ 12,218 | $ 12,105 |
Interest cost | 75,248 | 71,693 | $ 83,732 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Expected return on plan assets | (150,318) | (153,822) | $ (154,111) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Amortization of prior service cost | 691 | 690 | $ 692 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Amortization of actuarial loss | 37,065 | $ 49,897 | $ 39,613 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Net periodic benefit income | $ (27,110) | $ (19,324) | $ (17,969) |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Current year actuarial loss (gain) | $ 97,412 | $ (264,547) | $ 24,613 |
Recognition of actuarial loss | (37,065) | (49,897) | (39,613) |
Recognition of prior service cost | (691) | (690) | (692) |
Recognition of curtailment (loss) gain | 0 | (5) | 435 |
Other | 68 | (29) | 0 |
Total recognized in other comprehensive (loss) income | 59,724 | (315,168) | (15,257) |
Total recognized in net periodic benefit income and other comprehensive (loss) income | $ 32,614 | $ (334,492) | $ (33,226) |
Employee Benefit Plans - Assu_2
Employee Benefit Plans - Assumptions Used in Measuring Net Periodic Benefit (Income) Cost (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Weighted average discount rate | 3.04% | 2.72% | 3.43% |
Rate of increase in future compensation levels | 3.13% | 3.11% | 3.13% |
Expected long-term rate of return on plan assets | 6.34% | 6.88% | 7.11% |
Acquisitions, Divestitures an_3
Acquisitions, Divestitures and Discontinued Operations - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 03, 2022 | Jan. 01, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | $ 1,600,000 | $ 282,000 | $ 86,000 | |||
Other intangible assets and goodwill | 160,000 | |||||
Principal amount outstanding of receivables sold at period end | 200,000 | |||||
Acquisition costs | 80,601 | 3,655 | 39,817 | |||
Proceeds from divestitures of businesses | 33,604 | 17,738 | 387,379 | |||
Gain on sale of real estate | 102,803 | $ 0 | $ 0 | |||
VIE reduction amount | 3,000 | |||||
SPR | ||||||
Business Acquisition [Line Items] | ||||||
Gain on sale of real estate | $ 103,000 | |||||
VIE investment amount | 55,000 | |||||
Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization lives (in years) | 20 years | |||||
Automotive | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | 300,000 | |||||
Pro forma revenue | 562,000 | $ 220,000 | ||||
Other intangible assets and goodwill | 239,000 | |||||
Automotive | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 76,000 | |||||
Weighted average amortization lives (in years) | 18 years | |||||
Automotive | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 9,000 | |||||
Weighted average amortization lives (in years) | 15 years | |||||
Automotive | Other Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 4,000 | |||||
Weighted average amortization lives (in years) | 3 years | |||||
Industrial | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | $ 1,300,000 | |||||
Pro forma revenue | 25,000 | |||||
KDG | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 574,000 | 568,000 | ||||
Consideration transferred | 1,300,000 | |||||
Cash acquired from acquisition | $ 30,000 | |||||
Net sales (in percent) | 5% | |||||
Principal amount outstanding of receivables sold at period end | $ 200,000 | |||||
Payments to acquire businesses | 109,000 | |||||
Goodwill, expected to be tax deductible | 261,000 | |||||
Inventory amortization step-up cost | 5,000 | |||||
Acquisition costs | $ 62,000 | |||||
Pro forma revenue | $ 19,900,000 | |||||
Pro forma net income (loss) | $ 22,100,000 | |||||
Pro forma net income (loss) per share - diluted (in dollars per share) | $ 8.47 | $ 6.02 | ||||
KDG | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 527,000 | |||||
Weighted average amortization lives (in years) | 17 years | |||||
KDG | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 41,000 | |||||
Weighted average amortization lives (in years) | 1 year 6 months | |||||
KDG | Other Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization lives (in years) | 16 years |
Acquisitions, Divestitures an_4
Acquisitions, Divestitures and Discontinued Operations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 03, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,588,113 | $ 1,915,307 | $ 1,917,477 | |
KDG | ||||
Business Acquisition [Line Items] | ||||
Trade accounts receivable | 156,000 | $ 156,000 | ||
Measurement period adjustments, trade accounts receivable | 0 | |||
Merchandise inventories | 152,000 | 166,000 | ||
Measurement period adjustments, merchandise inventories | (14,000) | |||
Prepaid expenses and other current assets | 38,000 | 39,000 | ||
Measurement period adjustments, prepaid expenses and other current assets | (1,000) | |||
Property, plant and equipment | 24,000 | 26,000 | ||
Measurement period adjustments, property, plant, and equipment | (2,000) | |||
Operating lease assets | 44,000 | 49,000 | ||
Measurement period adjustments, operating lease assets | (5,000) | |||
Other assets | 1,000 | 1,000 | ||
Measurement period adjustments, other assets | 0 | |||
Other intangible assets | 568,000 | 574,000 | ||
Measurement period adjustments, other intangibles | (6,000) | |||
Goodwill | 601,000 | 592,000 | ||
Measurement period adjustments, goodwill | 9,000 | |||
Total assets acquired | 1,584,000 | 1,603,000 | ||
Measurement period adjustments, total identifiable assets acquired | (19,000) | |||
Trade accounts payable | 85,000 | 85,000 | ||
Measurement period adjustments, trade accounts payable | 0 | |||
Other current liabilities | 32,000 | 32,000 | ||
Measurement period adjustments, other current liabilities | 0 | |||
Operating lease liabilities | 16,000 | 17,000 | ||
Measurement period adjustments, operating lease liabilities | (1,000) | |||
Deferred tax liabilities | 108,000 | 121,000 | ||
Measurement period adjustments, deferred tax liabilities | (13,000) | |||
Other long-term liabilities | 31,000 | 39,000 | ||
Measurement period adjustments, other long-term liabilities | (8,000) | |||
Total liabilities assumed | 272,000 | 294,000 | ||
Measurement period adjustments, total liabilities assumed | (22,000) | |||
Net assets acquired | 1,312,000 | $ 1,309,000 | ||
Measurement period adjustments, net assets acquired | $ 3,000 |
Acquisitions, Divestitures an_5
Acquisitions, Divestitures and Discontinued Operations - Results of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net loss from discontinued operations | $ 0 | $ 0 | $ (192,497) |
Business Products Group | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 0 | 0 | 846,944 |
Cost of goods sold | 0 | 0 | 632,007 |
Gross profit | 0 | 0 | 214,937 |
Operating and non-operating expenses | 0 | 0 | 179,461 |
Loss on disposal | 0 | 0 | 223,928 |
Loss before income taxes | 0 | 0 | (188,452) |
Income taxes | 0 | 0 | 4,045 |
Net loss from discontinued operations | $ 0 | $ 0 | $ (192,497) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 38 | $ 26 | $ 23 |
Income tax benefit | 10 | 7 | 6 |
Total compensation cost related to nonvested awards, unrecognized | $ 64 | ||
Shares available for future grants (in shares) | 6.9 | ||
Aggregate intrinsic value, exercised | $ 62 | 73 | 14 |
Fair value of shares vested | $ 29 | $ 25 | $ 10 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Company's Nonvested Share Awards (RSUs) Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Beginning balance (in shares) | 829 | |
Granted (in shares) | 506 | |
Vested (in shares) | (276) | |
Forfeited (in shares) | (65) | |
Ending balance (in shares) | 994 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value (in dollars per share) | $ 110.45 | $ 98.25 |
Granted, weighted-average grant date fair value (in dollars per share) | 129.87 | |
Vested, weighted-average grant date fair value (in dollars per share) | 104.22 | |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 105.01 | |
Nonvested, weighted average remaining contractual term | 1 year 4 months 24 days | |
Nonvested, aggregate intrinsic value | $ 172,409 |
Share-Based Compensation - Su_2
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, 2022 USD ($) $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 634 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (310) |
Forfeited (in shares) | shares | (7) |
Ending balance (in shares) | shares | 317 |
Exercisable, number of shares (in shares) | shares | 317 |
Weighted Average Exercise Price | |
Beginning balance, weighted average exercise price (in dollars per share) | $ / shares | $ 90.93 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 89.22 |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | 89.27 |
Ending balance, weighted average exercise price (in dollars per share) | $ / shares | 92.65 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 92.65 |
Exercisable, weighted-average remaining contractual life (in years) | 2 years 4 months 24 days |
Exercisable, weighted average remaining contractual life (in years) | 2 years 4 months 24 days |
Aggregate intrinsic value, outstanding | $ | $ 25,607 |
Exercisable, aggregate intrinsic value | $ | $ 25,607 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive (Loss) by Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | $ 3,490,742 | |
Other comprehensive (loss) before reclassifications | (215,148) | $ 126,539 |
Amounts reclassified from accumulated other comprehensive loss | 40,345 | 52,224 |
Net current period other comprehensive (loss) | (174,803) | 178,763 |
Ending balance | 3,790,363 | 3,490,742 |
Pension and Other Post-Retirement Benefits | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (463,227) | (692,868) |
Other comprehensive (loss) before reclassifications | (71,258) | 192,382 |
Amounts reclassified from accumulated other comprehensive loss | 27,875 | 37,259 |
Net current period other comprehensive (loss) | (43,383) | 229,641 |
Ending balance | (506,610) | (463,227) |
Cash Flow Hedges | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (15,042) | (30,007) |
Other comprehensive (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 12,470 | 14,965 |
Net current period other comprehensive (loss) | 12,470 | 14,965 |
Ending balance | (2,572) | (15,042) |
Foreign Currency Translation | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (379,470) | (313,627) |
Other comprehensive (loss) before reclassifications | (143,890) | (65,843) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive (loss) | (143,890) | (65,843) |
Ending balance | (523,360) | (379,470) |
Total | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (857,739) | (1,036,502) |
Ending balance | $ (1,032,542) | $ (857,739) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets related to: | ||
Expenses not yet deducted for tax purposes | $ 312,445 | $ 301,302 |
Operating lease liabilities | 314,804 | 300,705 |
Pension liability not yet deducted for tax purposes | 168,925 | 171,256 |
Capital loss | 0 | 7,333 |
Net operating loss | 49,787 | 48,865 |
Net deferred tax assets, gross | 845,961 | 829,461 |
Deferred tax liabilities related to: | ||
Employee and retiree benefits | 225,947 | 235,847 |
Inventory | 77,866 | 87,062 |
Operating lease assets | 305,885 | 295,801 |
Other intangible assets | 468,733 | 365,557 |
Property, plant and equipment | 91,706 | 72,740 |
Other | 38,597 | 18,176 |
Deferred tax liabilities, total | 1,208,734 | 1,075,183 |
Net deferred tax liability before valuation allowance | (362,773) | (245,722) |
Valuation allowance | (27,362) | (34,227) |
Total net deferred tax liability | $ (390,135) | $ (279,949) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | $ 183 | |
Operating loss carryforwards, not subject to expiration | 108 | |
Operating loss carryforwards, subject to expiration | 75 | |
Unrecognized tax benefits including interest and penalties | 21 | $ 20 |
Unrecognized tax benefits that would impact effective tax rate | 19 | $ 19 |
Undistributed earnings of foreign subsidiaries | $ 928 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,100,584 | $ 762,472 | $ 706,594 |
Foreign | 472,018 | 437,874 | (327,226) |
Income before income taxes | $ 1,572,602 | $ 1,200,346 | $ 379,368 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 196,634 | $ 116,425 | $ 130,680 |
State | 70,453 | 34,311 | 35,474 |
Foreign | 120,594 | 119,144 | 77,541 |
Deferred: | |||
Federal | 12,727 | 24,233 | 2,048 |
State | 4,981 | 9,485 | 801 |
Foreign | (15,488) | (2,042) | (30,571) |
Income tax expense, total | $ 389,901 | $ 301,556 | $ 215,973 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Statutory rate applied to income | $ 330,246 | $ 252,073 | $ 79,667 |
Plus state income taxes, net of Federal tax benefit | 59,593 | 34,599 | 28,658 |
Taxation of foreign operations, net | 3,347 | 2,299 | (9,072) |
Non-deductible goodwill impairment tax effect | 0 | 0 | 106,411 |
Valuation allowance | (7,153) | (2,486) | 1,995 |
Other | 3,868 | (1,961) | (731) |
Income tax expense, total | 389,901 | 301,556 | 215,973 |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Foreign rate change - deferred tax remeasurement | $ 0 | $ 17,032 | $ 9,045 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 19,501 | $ 23,237 | $ 21,461 |
Additions based on tax positions related to the current year | 1,475 | 2,196 | 3,771 |
Additions for tax positions of prior years | 89 | 156 | 3,480 |
Reductions for tax positions for prior years | (523) | (733) | (1,382) |
Reduction for lapse in statute of limitations | (921) | (2,843) | (3,765) |
Settlements | 0 | (2,512) | (328) |
Balance at end of year | $ 19,621 | $ 19,501 | $ 23,237 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Guarantor Obligations [Line Items] | ||
Total borrowings of the independents and affiliates subject to guarantee | $ 916 | |
Guarantees related to borrowings | 67 | $ 81 |
Guarantees related to borrowings, other long-term liabilities | $ 67 | $ 81 |
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 | 3 Months Ended | 12 Months Ended | ||||
Jul. 08, 2021 USD ($) | Apr. 17, 2017 USD ($) | Dec. 31, 2022 USD ($) lawsuit | Dec. 31, 2022 USD ($) lawsuit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Undiscounted product liability | $ 285,000 | $ 285,000 | ||||
Litigation settlement amount | 0 | $ 77,421 | $ 0 | |||
Selling, administrative and other expenses | 5,758,295 | 5,162,506 | $ 4,386,739 | |||
Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement amount | $ 82,000 | |||||
Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement amount | $ 77,000 | $ 77,000 | ||||
Selling, administrative and other expenses | 77,000 | |||||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability central value | 190,000 | 190,000 | ||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability central value | $ 270,000 | $ 270,000 | ||||
Product Liability | ||||||
Loss Contingencies [Line Items] | ||||||
Number of pending claims | lawsuit | 2,228 | 2,228 | ||||
Product liability accrual expense | $ 29,000 | |||||
Product liability central value | $ 220,000 | $ 220,000 | ||||
Product liability accrual discount rate (in percent) | 3.83% | 3.83% | ||||
Undiscounted product liability | $ 181,000 |
Uncategorized Items - gpc-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |