Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 17, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-5690 | |
Entity Registrant Name | GENUINE PARTS CO | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-0254510 | |
Entity Address, Address Line One | 2999 WILDWOOD PARKWAY, | |
Entity Address, Postal Zip Code | 30339 | |
Entity Address, City or Town | ATLANTA, | |
Entity Address, State or Province | GA | |
City Area Code | 678 | |
Local Phone Number | 934-5000 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | GPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 140,515,640 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000040987 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 651,183 | $ 653,463 |
Trade accounts receivable, less allowance for doubtful accounts (2023 – $56,236; 2022 – $53,872) | 2,420,848 | 2,188,868 |
Merchandise inventories, net | 4,579,590 | 4,441,649 |
Prepaid expenses and other current assets | 1,532,810 | 1,532,759 |
Total current assets | 9,184,431 | 8,816,739 |
Goodwill | 2,599,770 | 2,588,113 |
Other intangible assets, less accumulated amortization | 1,790,120 | 1,812,510 |
Property, plant and equipment, less accumulated depreciation (2023 – $1,476,073; 2022 – $1,435,677) | 1,373,541 | 1,326,014 |
Operating lease assets | 1,121,007 | 1,104,678 |
Other assets | 838,663 | 847,325 |
Total assets | 16,907,532 | 16,495,379 |
Current liabilities: | ||
Trade accounts payable | 5,677,134 | 5,456,550 |
Current portion of debt | 290,326 | 252,029 |
Dividends payable | 133,737 | 126,191 |
Other current liabilities | 1,816,327 | 1,851,340 |
Total current liabilities | 7,917,524 | 7,686,110 |
Long-term debt | 3,094,319 | 3,076,794 |
Operating lease liabilities | 844,174 | 836,019 |
Pension and other post–retirement benefit liabilities | 198,552 | 197,879 |
Deferred tax liabilities | 391,526 | 391,163 |
Other long-term liabilities | 521,801 | 502,967 |
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 – 2023 – 140,545,475 shares; 2022 – 140,941,649 shares | 140,545 | 140,941 |
Additional paid-in capital | 147,690 | 140,324 |
Accumulated other comprehensive loss | (1,006,801) | (1,032,542) |
Retained earnings | 4,644,770 | 4,541,640 |
Total parent equity | 3,926,204 | 3,790,363 |
Noncontrolling interests in subsidiaries | 13,432 | 14,084 |
Total equity | 3,939,636 | 3,804,447 |
Total liabilities and equity | $ 16,907,532 | $ 16,495,379 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 56,236 | $ 53,872 |
Accumulated depreciation | $ 1,476,073 | $ 1,435,677 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 140,545,475 | 140,941,649 |
Common stock, shares outstanding (in shares) | 140,545,475 | 140,941,649 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 5,765,118 | $ 5,294,635 |
Cost of goods sold | 3,751,717 | 3,468,688 |
Gross profit | 2,013,401 | 1,825,947 |
Operating expenses: | ||
Selling, administrative and other expenses | 1,511,244 | 1,403,979 |
Depreciation and amortization | 87,215 | 87,369 |
Provision for doubtful accounts | 5,639 | 4,494 |
Total operating expenses | 1,604,098 | 1,495,842 |
Non-operating expense (income): | ||
Interest expense, net | 16,864 | 19,850 |
Other | (11,967) | (15,461) |
Total non-operating expense (income) | 4,897 | 4,389 |
Income before income taxes | 404,406 | 325,716 |
Income taxes | 100,449 | 79,878 |
Net income | $ 303,957 | $ 245,838 |
Dividends declared per common share (usd per share) | $ 0.9500 | $ 0.8950 |
Basic earnings per share (usd per share) | 2.16 | 1.73 |
Diluted earnings per share (usd per share) | $ 2.14 | $ 1.72 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 303,957 | $ 245,838 |
Foreign currency translation adjustments, net of income taxes in 2023 — $5,255; 2022 — $8,411 | 23,827 | 42,132 |
Cash flow hedge adjustments, net of income taxes in 2023 — $0; 2022 — $1,384 | 0 | 3,741 |
Pension and postretirement benefit adjustments, net of income taxes in 2023 — $703; 2022 — $2,580 | 1,914 | 6,989 |
Other comprehensive income, net of income taxes | 25,741 | 52,862 |
Comprehensive income | $ 329,698 | $ 298,700 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax | $ 5,255 | $ 8,411 |
Net investment hedge, tax | 0 | 1,384 |
Pension and postretirement benefit adjustments, tax | $ (703) | $ 2,580 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Total Parent Equity | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Non-controlling Interests in Subsidiaries |
Beginning balance (in shares) at Dec. 31, 2021 | 142,180,683 | ||||||
Beginning balance at Dec. 31, 2021 | $ 3,503,290 | $ 3,490,742 | $ 142,181 | $ 119,975 | $ (857,739) | $ 4,086,325 | $ 12,548 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 245,838 | 245,838 | 245,838 | ||||
Other comprehensive income, net of tax | 52,862 | 52,862 | 52,862 | ||||
Cash dividends declared | (126,891) | (126,891) | (126,891) | ||||
Shares issued from employee incentive plans (in shares) | 18,670 | ||||||
Shares issued from employee incentive plans | (1,063) | (1,063) | $ 19 | (1,082) | |||
Share-based compensation | 7,171 | 7,171 | 7,171 | ||||
Purchase of stock (in shares) | (571,604) | ||||||
Purchase of stock | (72,919) | (72,919) | $ (572) | (72,347) | |||
Noncontrolling interest activities | (412) | (412) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 141,627,749 | ||||||
Ending balance at Mar. 31, 2022 | 3,607,876 | 3,595,740 | $ 141,628 | 126,064 | (804,877) | 4,132,925 | 12,136 |
Beginning balance (in shares) at Dec. 31, 2022 | 140,941,649 | ||||||
Beginning balance at Dec. 31, 2022 | 3,804,447 | 3,790,363 | $ 140,941 | 140,324 | (1,032,542) | 4,541,640 | 14,084 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 303,957 | 303,957 | 303,957 | ||||
Other comprehensive income, net of tax | 25,741 | 25,741 | 25,741 | ||||
Cash dividends declared | (133,737) | (133,737) | (133,737) | ||||
Shares issued from employee incentive plans (in shares) | 14,832 | ||||||
Shares issued from employee incentive plans | (1,265) | (1,265) | $ 15 | (1,280) | |||
Share-based compensation | 8,646 | 8,646 | 8,646 | ||||
Purchase of stock (in shares) | (411,006) | ||||||
Purchase of stock | (67,501) | (67,501) | $ (411) | (67,090) | |||
Noncontrolling interest activities | (652) | (652) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 140,545,475 | ||||||
Ending balance at Mar. 31, 2023 | $ 3,939,636 | $ 3,926,204 | $ 140,545 | $ 147,690 | $ (1,006,801) | $ 4,644,770 | $ 13,432 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per share (usd per share) | $ 0.9500 | $ 0.8950 |
Share-based awards exercised, tax | $ 584 | $ 714 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income | $ 303,957 | $ 245,838 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 87,215 | 87,369 |
Share-based compensation | 8,646 | 7,171 |
Excess tax benefits from share-based compensation | (584) | (714) |
Changes in operating assets and liabilities | (201,727) | 59,144 |
Net cash provided by operating activities | 197,507 | 398,808 |
Investing activities: | ||
Purchases of property, plant and equipment | (88,100) | (78,045) |
Proceeds from sale of property, plant and equipment | 1,971 | 5,895 |
Proceeds from sale of investments | 80,482 | 0 |
Acquisitions and other investing activities | (39,589) | (1,348,795) |
Net cash used in investing activities | (45,236) | (1,420,945) |
Financing activities: | ||
Proceeds from debt | 693,400 | 2,890,000 |
Payments on debt | (652,138) | (1,784,585) |
Shares issued from employee incentive plans | (1,265) | (1,063) |
Dividends paid | (126,191) | (115,876) |
Purchases of stock | (67,501) | (72,919) |
Other financing activities | (4,118) | (1,593) |
Net cash (used in) provided by financing activities | (157,813) | 913,964 |
Effect of exchange rate changes on cash and cash equivalents | 3,262 | 4,248 |
Net decrease in cash and cash equivalents | (2,280) | (103,925) |
Cash and cash equivalents at beginning of period | 653,463 | 714,701 |
Cash and cash equivalents at end of period | $ 651,183 | $ 610,776 |
General
General | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2022. Accordingly, the unaudited Condensed Consolidated Financial Statements and related disclosures herein should be read in conjunction with our 2022 Annual Report on Form 10-K. There were no significant changes to our accounting policies from those disclosed in the Summary of Significant Accounting Policies Footnote in the Notes to Consolidated Financial Statements in our 2022 Annual Report on Form 10-K. The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited Condensed Consolidated Financial Statements. Specifically, we make estimates and assumptions in our unaudited Condensed Consolidated Financial Statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels. In the opinion of management, all adjustments necessary for a fair presentation of our financial results for the interim periods have been made. These adjustments are of a normal recurring nature. We have reclassified certain prior period amounts to conform to the current period presentation. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of results for the year ended December 31, 2023. We have evaluated subsequent events through the date the unaudited Condensed Consolidated Financial Statements covered by this quarterly report were issued. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to not be applicable or are expected to have an immaterial impact on our Condensed Consolidated Financial Statements. 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 guidance is effective in the first quarter of 2023, except for the rollforward, which is effective in the first quarter of 2024. For additional information, please refer to the supply chain finance programs section herein. Derivatives and Hedging We are exposed to various risks arising from business operations and market conditions, including fluctuations in certain foreign currencies. We use derivative and non-derivative instruments as risk management tools to mitigate the potential impact of foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in our earnings and cash flows associated with changes in these rates. Derivative instruments are recognized in the Condensed 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. The following table summarizes the classification 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 (in thousands): March 31, 2023 December 31, 2022 Instrument Balance Sheet Location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 606,950 $ 45,189 $ 606,950 $ 46,670 Forward contract Other current liabilities $ 106,800 $ 3,748 $ 106,800 $ 3,064 Foreign currency debt Long-term debt € 700,000 $ 763,420 € 700,000 $ 749,280 The tables below presents gains related to designated net investment hedges: (Loss) Gain Recognized in AOCL before Reclassifications Gain Recognized in Interest Expense for Excluded Components (in thousands) 2023 2022 2023 2022 Three Months Ended March 31, Net investment hedges: Forward contracts $ (5,324) $ 19,393 $ 3,158 $ 7,565 Foreign currency debt (14,140) 11,760 — — Total $ (19,464) $ 31,153 $ 3,158 $ 7,565 Fair Value of Financial Instruments As of March 31, 2023 the fair value of our senior unsecured notes was approximately $3.0 billion, 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. 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”). While such borrowings of the independents and affiliates are outstanding, we are required to maintain compliance with certain covenants. At March 31, 2023, we were in compliance with all such covenants. As of March 31, 2023, the total borrowings of the independents and affiliates subject to guarantee by us were approximately $940 million. These loans generally mature over periods from one As of March 31, 2023, we have recognized certain assets and liabilities amounting to $69 million each for the guarantees related to the independents’ and affiliates’ borrowings. These assets and liabilities are included in other assets and other long-term liabilities in the Condensed 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. Supply Chain Finance Programs Several global financial institutions offer voluntary supply chain finance (“SCF”) programs which enable our suppliers (generally those that grant extended terms), at their sole discretion, to sell their receivables from us to these financial institutions on a non-recourse basis at a rate that takes advantage of our credit rating and may be beneficial to them. We and our suppliers agree on commercial terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. Our current payment terms with the majority of our suppliers range from 30 to 360 days. The suppliers sell goods or services, as applicable, to us and they issue the associated invoices to us based on the agreed-upon contractual terms. Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions. In turn, we direct payment to the financial institutions, rather than the suppliers, for the invoices sold to the financial institutions. No guarantees are provided by us or any of our subsidiaries on third-party performance under the SCF program; however, we guarantee the payment by our subsidiaries to the financial institutions participating in the SCF program for the applicable invoices. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable in our consolidated balance sheets. All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected in cash flows from operating activities in our consolidated statement of cash flows. As of March 31, 2023 and December 31, 2022, the outstanding payment obligations to the financial institutions are $3.0 billion and $3.1 billion, respectively. The amount settled through the SCF program was $1.0 billion and $855 million for the three months ended March 31, 2023 and March 31, 2022, respectively. Earnings Per Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding. Certain outstanding options are not included in the diluted earnings per share calculation because their inclusion would have been anti-dilutive. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. The following table summarizes basic and diluted shares outstanding: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Net income $ 303,957 $ 245,838 Weighted average common shares outstanding 140,804 141,916 Dilutive effect of stock options and non-vested restricted stock awards 921 926 Weighted average common shares outstanding – assuming dilution 141,725 142,842 Basic earnings per share $ 2.16 $ 1.73 Diluted earnings per share $ 2.14 $ 1.72 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following table presents a summary of our reportable segment financial information: Three Months Ended March 31, (in thousands) 2023 2022 Net sales: Automotive $ 3,505,827 $ 3,275,621 Industrial 2,259,291 2,019,014 Total net sales $ 5,765,118 $ 5,294,635 Segment profit: Automotive $ 264,420 $ 264,573 Industrial 261,987 188,353 Total segment profit 526,407 452,926 Interest expense, net (16,864) (19,850) Intangible asset amortization (39,122) (39,694) Corporate expense (66,015) (41,751) Other unallocated costs (1) — (25,915) Income before income taxes $ 404,406 $ 325,716 (1) The following table presents a summary of the other unallocated costs: Three Months Ended March 31, (in thousands) 2023 2022 Other unallocated costs: Gain on insurance proceeds (2) $ — $ 634 Transaction and other costs (3) — (26,549) Total other unallocated costs $ — $ (25,915) (2) Amount reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs. (3) Amount primarily reflects costs associated with the January 3, 2022 acquisition of Kaman Distribution Group. Beginning in 2023, certain functions, including cybersecurity and the management of our product liability litigation, were transferred to corporate to be streamlined and centrally managed. These costs totaled $15 million for the three months ended March 31, 2022, of which $9 million were allocated to Automotive and $6 million were allocated to Industrial based on several factors, including sales volumes and headcount. Beginning in 2023, these costs, which totaled $11 million for the three months ended March 31, 2023, are no longer allocated to our segments when measuring their operating performance. We have not restated the 2022 comparative segment financial information. 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: Three Months Ended March 31, (in thousands) 2023 2022 North America: Automotive $ 2,205,385 $ 2,130,873 Industrial 2,130,715 1,910,433 Total North America $ 4,336,100 $ 4,041,306 Australasia: Automotive $ 406,762 $ 378,909 Industrial 128,576 108,581 Total Australasia $ 535,338 $ 487,490 Europe – Automotive $ 893,680 $ 765,839 Total net sales $ 5,765,118 $ 5,294,635 |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable Sales Agreement | Accounts Receivable Sales Agreement Under our accounts receivable sales agreement (the "A/R Sales Agreement"), we continuously sell designated pools of receivables as they are originated by us and certain U.S. subsidiaries to a separate bankruptcy-remote special purpose entity (“SPE”). The A/R Sales Agreement has a three-year term, which we intend to renew. We continue to be involved with the receivables transferred by the SPE to the unaffiliated financial institutions 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 institutions 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 as amended on January 3, 2022). The total principal amount outstanding of receivables sold is approximately $1.0 billion as of both March 31, 2023 and December 31, 2022. The amount of receivables pledged as collateral as of March 31, 2023 and December 31, 2022 is approximately $1.3 billion and $1.1 billion, respectively. The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of: Three Months Ended March 31, (in thousands) 2023 2022 Receivables sold to the financial institution and derecognized $ 2,165,407 $ 2,236,445 Cash collected on sold receivables $ 2,165,411 $ 2,036,455 Continuous cash activity related to the A/R Sales Agreement is reflected in net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. The SPE incurs fees due to the unaffiliated financial institutions related to the accounts receivable sales transactions. Those fees, which totaled $14 million and $2 million for the three months ended March 31, 2023 and 2022, respectively, are recorded within other non-operating expense (income) in the Condensed Consolidated Statements of Income. The SPE has a recourse obligation to repurchase from the unaffiliated financial institutions any previously sold receivables that are not collected due to the occurrence of certain events, including credit quality deterioration and customer sales returns. The reserve recognized for this recourse obligation as of March 31, 2023 and December 31, 2022 is not material. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit income from our pension plans included the following components for the three months ended March 31,: Pension Benefits (in thousands) 2023 2022 Service cost $ 1,494 $ 2,616 Interest cost 26,117 18,867 Expected return on plan assets (41,240) (37,672) Amortization of prior service cost 173 172 Amortization of actuarial loss 2,341 9,279 Net periodic benefit income $ (11,115) $ (6,738) |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions We acquired several businesses for approximately $40 million and $1.4 billion, net of cash acquired, during the three months ended March 31, 2023 and March 31, 2022, respectively. 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 Condensed Consolidated Statements of Income beginning on their respective acquisition dates. KDG Acquisition On January 3, 2022, we, through our 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, which is headquartered in Bloomfield, Connecticut, is a power transmission, automation and fluid power industrial distributor and solutions provider with operations throughout the United States, providing electro-mechanical products, bearings, power transmission, motion control and electrical and fluid power components to maintenance, repair, and operation and original equipment manufacturer customers. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables present the changes in AOCL by component for the three months ended March 31: Changes in Accumulated Other (in thousands) Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2023 $ (506,610) $ (2,572) $ (523,360) $ (1,032,542) Other comprehensive income before reclassifications — — 23,827 23,827 Amounts reclassified from accumulated other comprehensive loss 1,914 — — 1,914 Other comprehensive income, net of income taxes 1,914 — 23,827 25,741 Ending balance, March 31, 2023 $ (504,696) $ (2,572) $ (499,533) $ (1,006,801) Changes in Accumulated Other (in thousands) 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 income before reclassifications — — 42,132 42,132 Amounts reclassified from accumulated other comprehensive loss 6,989 3,741 — 10,730 Other comprehensive income, net of income taxes 6,989 3,741 42,132 52,862 Ending balance, March 31, 2022 $ (456,238) $ (11,301) $ (337,338) $ (804,877) The AOCL components related to the pension benefits are included in the computation of net periodic benefit income in the Employee Benefit Plans Footnote. Generally, tax effects in AOCL are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCL reclassifications are recognized. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 2,224 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. The amount accrued for pending and future claims was $216 million as of March 31, 2023, which represents our best estimate of the liability within our calculated range of $195 million to $275 million, discounted using a discount rate of 3.48%. The amount accrued for pending and future claims was $220 million as of December 31, 2022, which represents our best estimate of the liability within our calculated range of $190 million to $270 million, discounted using a discount rate of 3.83%. Our undiscounted product liability was $276 million and $285 million as of March 31, 2023 and December 31, 2022, respectively. There have been no significant developments to the information presented in our 2022 Annual Report on Form 10-K with respect to litigation or commitments and contingencies. Environmental Liabilities |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2022. Accordingly, the unaudited Condensed Consolidated Financial Statements and related disclosures herein should be read in conjunction with our 2022 Annual Report on Form 10-K. There were no significant changes to our accounting policies from those disclosed in the Summary of Significant Accounting Policies Footnote in the Notes to Consolidated Financial Statements in our 2022 Annual Report on Form 10-K. |
Use of Estimates | The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited Condensed Consolidated Financial Statements. Specifically, we make estimates and assumptions in our unaudited Condensed Consolidated Financial Statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels. In the opinion of management, all adjustments necessary for a fair presentation of our financial results for the interim periods have been made. These adjustments are of a normal recurring nature. We have reclassified certain prior period amounts to conform to the current period presentation. |
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 Standards Updates (“ASU”) 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 not be applicable or are expected to have an immaterial impact on our Condensed Consolidated Financial Statements. 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 guidance is effective in the first quarter of 2023, except for the rollforward, which is effective in the first quarter of 2024. For additional information, please refer to the supply chain finance programs section herein. |
Derivatives and Hedging | Derivatives and Hedging We are exposed to various risks arising from business operations and market conditions, including fluctuations in certain foreign currencies. We use derivative and non-derivative instruments as risk management tools to mitigate the potential impact of foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in our earnings and cash flows associated with changes in these rates. Derivative instruments are recognized in the Condensed 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 of Financial Instruments | Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities. |
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”). While such borrowings of the independents and affiliates are outstanding, we are required to maintain compliance with certain covenants. At March 31, 2023, we were in compliance with all such covenants.As of March 31, 2023, 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. |
Supply Chain Finance Programs | Supply Chain Finance Programs Several global financial institutions offer voluntary supply chain finance (“SCF”) programs which enable our suppliers (generally those that grant extended terms), at their sole discretion, to sell their receivables from us to these financial institutions on a non-recourse basis at a rate that takes advantage of our credit rating and may be beneficial to them. We and our suppliers agree on commercial terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. Our current payment terms with the majority of our suppliers range from 30 to 360 days. The suppliers sell goods or services, as applicable, to us and they issue the associated invoices to us based on the agreed-upon contractual terms. Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions. In turn, we direct payment to the financial institutions, rather than the suppliers, for the invoices sold to the financial institutions. No guarantees are provided by us or any of our subsidiaries on third-party performance under the SCF program; however, we guarantee the payment by our subsidiaries to the financial institutions participating in the SCF program for the applicable invoices. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable in our consolidated balance sheets. |
Earnings Per Share | Earnings Per ShareWe calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding. Certain outstanding options are not included in the diluted earnings per share calculation because their inclusion would have been anti-dilutive. |
General (Tables)
General (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Derivative Instruments | March 31, 2023 December 31, 2022 Instrument Balance Sheet Location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 606,950 $ 45,189 $ 606,950 $ 46,670 Forward contract Other current liabilities $ 106,800 $ 3,748 $ 106,800 $ 3,064 Foreign currency debt Long-term debt € 700,000 $ 763,420 € 700,000 $ 749,280 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The tables below presents gains related to designated net investment hedges: (Loss) Gain Recognized in AOCL before Reclassifications Gain Recognized in Interest Expense for Excluded Components (in thousands) 2023 2022 2023 2022 Three Months Ended March 31, Net investment hedges: Forward contracts $ (5,324) $ 19,393 $ 3,158 $ 7,565 Foreign currency debt (14,140) 11,760 — — Total $ (19,464) $ 31,153 $ 3,158 $ 7,565 |
Schedule of Earnings per Share, Basic and Diluted | The following table summarizes basic and diluted shares outstanding: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Net income $ 303,957 $ 245,838 Weighted average common shares outstanding 140,804 141,916 Dilutive effect of stock options and non-vested restricted stock awards 921 926 Weighted average common shares outstanding – assuming dilution 141,725 142,842 Basic earnings per share $ 2.16 $ 1.73 Diluted earnings per share $ 2.14 $ 1.72 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following table presents a summary of our reportable segment financial information: Three Months Ended March 31, (in thousands) 2023 2022 Net sales: Automotive $ 3,505,827 $ 3,275,621 Industrial 2,259,291 2,019,014 Total net sales $ 5,765,118 $ 5,294,635 Segment profit: Automotive $ 264,420 $ 264,573 Industrial 261,987 188,353 Total segment profit 526,407 452,926 Interest expense, net (16,864) (19,850) Intangible asset amortization (39,122) (39,694) Corporate expense (66,015) (41,751) Other unallocated costs (1) — (25,915) Income before income taxes $ 404,406 $ 325,716 (1) The following table presents a summary of the other unallocated costs: Three Months Ended March 31, (in thousands) 2023 2022 Other unallocated costs: Gain on insurance proceeds (2) $ — $ 634 Transaction and other costs (3) — (26,549) Total other unallocated costs $ — $ (25,915) (2) Amount reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs. (3) Amount primarily reflects costs associated with the January 3, 2022 acquisition of Kaman Distribution Group. |
Revenue from External Customers by Geographic Areas | The following table presents disaggregated geographical net sales from contracts with customers by reportable segment: Three Months Ended March 31, (in thousands) 2023 2022 North America: Automotive $ 2,205,385 $ 2,130,873 Industrial 2,130,715 1,910,433 Total North America $ 4,336,100 $ 4,041,306 Australasia: Automotive $ 406,762 $ 378,909 Industrial 128,576 108,581 Total Australasia $ 535,338 $ 487,490 Europe – Automotive $ 893,680 $ 765,839 Total net sales $ 5,765,118 $ 5,294,635 |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables, Sales | The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of: Three Months Ended March 31, (in thousands) 2023 2022 Receivables sold to the financial institution and derecognized $ 2,165,407 $ 2,236,445 Cash collected on sold receivables $ 2,165,411 $ 2,036,455 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Income for the Pension Plans | Net periodic benefit income from our pension plans included the following components for the three months ended March 31,: Pension Benefits (in thousands) 2023 2022 Service cost $ 1,494 $ 2,616 Interest cost 26,117 18,867 Expected return on plan assets (41,240) (37,672) Amortization of prior service cost 173 172 Amortization of actuarial loss 2,341 9,279 Net periodic benefit income $ (11,115) $ (6,738) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following tables present the changes in AOCL by component for the three months ended March 31: Changes in Accumulated Other (in thousands) Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2023 $ (506,610) $ (2,572) $ (523,360) $ (1,032,542) Other comprehensive income before reclassifications — — 23,827 23,827 Amounts reclassified from accumulated other comprehensive loss 1,914 — — 1,914 Other comprehensive income, net of income taxes 1,914 — 23,827 25,741 Ending balance, March 31, 2023 $ (504,696) $ (2,572) $ (499,533) $ (1,006,801) Changes in Accumulated Other (in thousands) 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 income before reclassifications — — 42,132 42,132 Amounts reclassified from accumulated other comprehensive loss 6,989 3,741 — 10,730 Other comprehensive income, net of income taxes 6,989 3,741 42,132 52,862 Ending balance, March 31, 2022 $ (456,238) $ (11,301) $ (337,338) $ (804,877) |
General - Schedule of Location
General - Schedule of Location and Fair Value Amounts of Derivative Instruments (Details) - Net investment hedges - Designated as hedging relationship € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Prepaid expenses and other current assets | Forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 606,950 | $ 606,950 | ||
Derivative asset, balance | 45,189 | 46,670 | ||
Other current liabilities | Forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | 106,800 | 106,800 | ||
Derivative liability, balance | 3,748 | 3,064 | ||
Long-term debt | Foreign currency debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Nonderivative notional amount | € | € 700,000 | € 700,000 | ||
Nonderivative balance | $ 763,420 | $ 749,280 |
General - Schedule of (Losses)
General - Schedule of (Losses) Gains Related to Designated Cash Flow Hedges and Net Investment Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain Recognized in Interest Expense for Excluded Components | $ 3,158 | $ 7,565 |
(Loss) Gain Recognized in AOCL before Reclassifications | (19,464) | 31,153 |
Forward contracts | Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
(Loss) Gain Recognized in AOCL before Reclassifications | (5,324) | 19,393 |
Gain Recognized in Interest Expense for Excluded Components | 3,158 | 7,565 |
Foreign currency debt | Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
(Loss) Gain Recognized in AOCL before Reclassifications | (14,140) | 11,760 |
Gain Recognized in Interest Expense for Excluded Components | $ 0 | $ 0 |
General - Fair Value of Financi
General - Fair Value of Financial Instruments (Details) $ in Billions | Mar. 31, 2023 USD ($) |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | $ 3 |
General - Guarantee (Details)
General - Guarantee (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Guarantor Obligations [Line Items] | |
Total borrowings of the independents and affiliates subject to guarantee | $ 940 |
Guarantor obligation, current carrying value | 69 |
Guarantees related to borrowings, other assets | $ 69 |
Minimum | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity (in years) | 1 year |
Maximum | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity (in years) | 6 years |
General - Supply Chain Finance
General - Supply Chain Finance Programs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Outstanding payment obligation | $ 3,000 | $ 3,100 | |
Payments to suppliers through SCF program | $ 1,000 | $ 855 | |
Minimum | |||
Related Party Transaction [Line Items] | |||
Supply chain finance program term | 30 days | ||
Maximum | |||
Related Party Transaction [Line Items] | |||
Supply chain finance program term | 360 days |
General - Earning Per Share (De
General - Earning Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Net income | $ 303,957 | $ 245,838 |
Weighted average common shares outstanding (in shares) | 140,804 | 141,916 |
Dilutive effect of stock options and non-vested restricted stock awards (in shares) | 921 | 926 |
Weighted average common shares outstanding - assuming dilution (in shares) | 141,725 | 142,842 |
Basic earnings per share (usd per share) | $ 2.16 | $ 1.73 |
Diluted earnings per share (usd per share) | $ 2.14 | $ 1.72 |
Segment Information - Operating
Segment Information - Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 5,765,118 | $ 5,294,635 |
Income before income taxes | 404,406 | 325,716 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,765,118 | 5,294,635 |
Operating profit | 526,407 | 452,926 |
Operating Segments | Automotive Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,505,827 | 3,275,621 |
Operating profit | 264,420 | 264,573 |
Operating Segments | Industrial Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,259,291 | 2,019,014 |
Operating profit | 261,987 | 188,353 |
Other | ||
Segment Reporting Information [Line Items] | ||
Interest expense, net | (16,864) | (19,850) |
Intangible asset amortization | (39,122) | (39,694) |
Corporate expense | (66,015) | (41,751) |
Other unallocated amounts | $ 0 | $ (25,915) |
Segment Information - Summary o
Segment Information - Summary of Unallocated Costs (Details) - Other - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Gain on insurance proceeds | $ 0 | $ 634 |
Transaction and other costs | 0 | (26,549) |
Total other unallocated costs | $ 0 | $ (25,915) |
Segment Information - Additiona
Segment Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Other corporate expense | $ 11 | $ 15 |
Automotive Parts | ||
Segment Reporting Information [Line Items] | ||
Other corporate expense | 9 | |
Industrial Parts | ||
Segment Reporting Information [Line Items] | ||
Other corporate expense | $ 6 |
Segment Information - Disaggreg
Segment Information - Disaggregated Geographical Revenue by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,765,118 | $ 5,294,635 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,336,100 | 4,041,306 |
Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 535,338 | 487,490 |
Automotive Parts | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,205,385 | 2,130,873 |
Automotive Parts | Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 406,762 | 378,909 |
Automotive Parts | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 893,680 | 765,839 |
Industrial Parts | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,130,715 | 1,910,433 |
Industrial Parts | Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 128,576 | $ 108,581 |
Accounts Receivable Sales Agr_3
Accounts Receivable Sales Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Receivables [Abstract] | |||
Sale agreement term | 3 years | ||
Sale agreement amount | $ 1,000,000 | ||
Principal amount outstanding of receivables sold at period end | 1,000,000 | $ 1,000,000 | |
Amount held as collateral | 1,300,000 | $ 1,100,000 | |
Receivables sold to the financial institution and derecognized | 2,165,407 | $ 2,236,445 | |
Cash collected on sold receivables | 2,165,411 | 2,036,455 | |
Accounts receivable sales transactions fees | $ 14,000 | $ 2,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Income for the Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 1,494 | $ 2,616 |
Interest cost | 26,117 | 18,867 |
Expected return on plan assets | (41,240) | (37,672) |
Amortization of prior service cost | 173 | 172 |
Amortization of actuarial loss | 2,341 | 9,279 |
Net periodic benefit income | $ (11,115) | $ (6,738) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 03, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net | $ 40 | $ 1,400 | |
KDG | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 1,300 | ||
Cash acquired from acquisition | $ 30 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | $ 3,804,447 | $ 3,503,290 |
Other comprehensive income before reclassifications | 23,827 | 42,132 |
Amounts reclassified from accumulated other comprehensive loss | 1,914 | 10,730 |
Other comprehensive income, net of income taxes | 25,741 | 52,862 |
Ending balance | 3,939,636 | 3,607,876 |
Pension and Other Post-Retirement Benefits | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (506,610) | (463,227) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 1,914 | 6,989 |
Other comprehensive income, net of income taxes | 1,914 | 6,989 |
Ending balance | (504,696) | (456,238) |
Cash Flow Hedges | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (2,572) | (15,042) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 3,741 |
Other comprehensive income, net of income taxes | 0 | 3,741 |
Ending balance | (2,572) | (11,301) |
Foreign Currency Translation | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (523,360) | (379,470) |
Other comprehensive income before reclassifications | 23,827 | 42,132 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income, net of income taxes | 23,827 | 42,132 |
Ending balance | (499,533) | (337,338) |
Total | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (1,032,542) | (857,739) |
Ending balance | $ (1,006,801) | $ (804,877) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2023 USD ($) lawsuit | Dec. 31, 2022 USD ($) |
Loss Contingencies [Line Items] | ||
Undiscounted product liability | $ 276 | $ 285 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Product liability central value | 195 | 190 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Product liability central value | $ 275 | 270 |
Product Liability | ||
Loss Contingencies [Line Items] | ||
Number of pending claims | lawsuit | 2,224 | |
Product liability central value | $ 216 | $ 220 |
Product liability accrual discount rate (in percent) | 3.48% | 3.83% |