| Document and Entity Information (USD $) | ||
| 3 Months Ended
Mar. 31, 2010 | Jun. 30, 2009
| |
| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | GENUINE PARTS CO | |
| Entity Central Index Key | 0000040987 | |
| Document Type | 10-Q | |
| Document Period End Date | 2010-03-31 | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q1 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Voluntary Filers | No | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Public Float | $5,174,878,000 | |
| Entity Common Stock, Shares Outstanding | 158,792,492 |
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Thousands | Mar. 31, 2010
| Dec. 31, 2009
|
| CURRENT ASSETS | ||
| Cash and cash equivalents | $333,537 | $336,803 |
| Trade accounts receivable, less allowance for doubtful accounts (2010 - $23,047; 2009 - $16,590) | 1,323,980 | 1,187,075 |
| Merchandise inventories, net - at lower of cost or market | 2,211,457 | 2,214,076 |
| Prepaid expenses and other current assets | 277,257 | 294,874 |
| TOTAL CURRENT ASSETS | 4,146,231 | 4,032,828 |
| Goodwill and intangible assets, less accumulated amortization | 204,907 | 171,532 |
| Deferred tax assets | 167,632 | 167,722 |
| Other assets | 172,723 | 147,583 |
| Property, plant and equipment, less allowance for depreciation (2010 - $705,605; 2009 - $691,175) | 477,269 | 485,024 |
| TOTAL ASSETS | 5,168,762 | 5,004,689 |
| CURRENT LIABILITIES | ||
| Trade accounts payable | 1,185,177 | 1,094,347 |
| Income taxes payable | 78,609 | 42,988 |
| Dividends payable | 65,083 | 63,586 |
| Other current liabilities | 185,260 | 207,363 |
| TOTAL CURRENT LIABILITIES | 1,514,129 | 1,408,284 |
| Long-term debt | 500,000 | 500,000 |
| Retirement and other post-retirement benefit liabilities | 299,567 | 300,197 |
| Other long-term liabilities | 169,500 | 166,836 |
| 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 - 2010 - 158,792,492; 2009 - 158,917,846 | 158,792 | 158,918 |
| Retained earnings | 2,802,369 | 2,772,309 |
| Accumulated other comprehensive loss | (283,579) | (309,897) |
| TOTAL PARENT EQUITY | 2,677,582 | 2,621,330 |
| Noncontrolling interests in subsidiaries | 7,984 | 8,042 |
| TOTAL EQUITY | 2,685,566 | 2,629,372 |
| TOTAL LIABILITIES AND EQUITY | $5,168,762 | $5,004,689 |
| Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
| In Thousands, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
| CURRENT ASSETS | ||
| Allowance for doubtful accounts | $23,047 | $16,590 |
| Allowance for depreciation | $705,605 | $691,175 |
| EQUITY: | ||
| Preferred stock, par value | 1 | 1 |
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
| Preferred stock, shares issued | 0 | 0 |
| Common stock, par value | 1 | 1 |
| Common stock, shares authorized | 450,000,000 | 450,000,000 |
| Common stock, shares issued | 158,792,492 | 158,917,846 |
| Condensed Consolidated Statements of Income (Unaudited) (USD $) | ||
| In Thousands, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Condensed Consolidated Statements of Income [Abstract] | ||
| Net sales | $2,602,115 | $2,444,496 |
| Cost of goods sold | 1,841,640 | 1,712,295 |
| Gross profit | 760,475 | 732,201 |
| Operating expenses: | ||
| Selling, administrative, and other expenses | 576,217 | 565,012 |
| Depreciation and amortization | 22,143 | 22,521 |
| Total operating expenses | 598,360 | 587,533 |
| Income before income taxes | 162,115 | 144,668 |
| Income taxes | 61,506 | 55,509 |
| Net income | $100,609 | $89,159 |
| Basic net income per common share | 0.63 | 0.56 |
| Diluted net income per common share | 0.63 | 0.56 |
| Dividends declared per common share | 0.41 | 0.4 |
| Weighted average common shares outstanding | 158,771 | 159,444 |
| Dilutive effect of stock options and non-vested restricted stock awards | 408 | 219 |
| Weighted average common shares outstanding - assuming dilution | 159,179 | 159,663 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| OPERATING ACTIVITIES: | ||
| Net income | $100,609 | $89,159 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 22,143 | 22,521 |
| Share-based compensation | 1,091 | 2,370 |
| Other | 19 | 807 |
| Changes in operating assets and liabilities | 15,783 | 85,565 |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 139,645 | 200,422 |
| INVESTING ACTIVITIES: | ||
| Purchases of property, plant and equipment | (9,850) | (14,097) |
| Acquisitions and other | (65,772) | (5,779) |
| NET CASH USED IN INVESTING ACTIVITIES | (75,622) | (19,876) |
| FINANCING ACTIVITIES: | ||
| Stock options exercised | 2,581 | 142 |
| Dividends paid | (63,544) | (62,148) |
| Changes in cash overdraft position | (52,000) | |
| Purchase of stock | (9,306) | (116) |
| NET CASH USED IN FINANCING ACTIVITIES | (70,269) | (114,122) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 2,980 | (920) |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (3,266) | 65,504 |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 336,803 | 67,777 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $333,537 | $133,281 |
| Basis of Presentation | |
| 3 Months Ended
Mar. 31, 2010 | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation | Note A 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 United States for complete financial statements. Except as disclosed herein, there has been no material change 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) for the year ended December31, 2009. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2009 Annual Report on Form 10-K. The preparation of interim financial statements requires management to make estimates and assumptions for the amounts reported in the condensed consolidated financial statements. Specifically, the Company makes estimates in its interim consolidated financial statements for the accrual of bad debts, inventory adjustments, discounts and volume incentives earned, among others. Bad debts are accrued based on a percentage of sales and volume incentives are estimated based upon cumulative and projected purchasing levels. 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, which can only be performed at year-end. The estimates for interim reporting may change upon final determination at year-end and such changes may be significant. In the opinion of management, all adjustments necessary for a fair presentation of the Companys financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three month period ended March31, 2010 are not necessarily indicative of results for the entire year. The Company has evaluated subsequent events through the date the financial statements were issued. |
| Segment Information | |
| 3 Months Ended
Mar. 31, 2010 | |
| Segment Information [Abstract] | |
| Segment Information | Note B Segment Information Three Months Ended March 31, 2010 2009 (in thousands) Net sales: Automotive $ 1,290,401 $ 1,219,128 Industrial 803,302 736,501 Office products 410,511 412,748 Electrical/electronic materials 100,298 86,133 Other (2,397 ) (10,014 ) Total net sales $ 2,602,115 $ 2,444,496 Operating profit: Automotive $ 88,905 $ 87,407 Industrial 48,846 34,175 Office products 36,559 38,728 Electrical/electronic materials 6,815 5,668 Total operating profit 181,125 165,978 Interest expense, net (6,733 ) (7,096 ) Other, net (12,277 ) (14,214 ) Income before income taxes $ 162,115 $ 144,668 Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item Other, net represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Companys condensed consolidated statements of income. |
| Comprehensive Income | |
| 3 Months Ended
Mar. 31, 2010 | |
| Comprehensive Income [Abstract] | |
| Comprehensive Income | Note C Comprehensive Income Comprehensive income was $126.9million and $75.8million for the three months ended March31, 2010 and 2009, respectively. The difference between comprehensive income and net income was due to foreign currency translation adjustments and retirement and other post-retirement benefit adjustments, as summarized below: Three Months Ended March 31, 2010 2009 (in thousands) Net income $ 100,609 $ 89,159 Other comprehensive income (loss): Foreign currency translation 21,606 (17,781 ) Retirement and other post-retirement benefit adjustments: Recognition of prior service (credit)cost, net of tax (1,251 ) (1,227 ) Recognition of actuarial loss, net of tax 5,963 5,653 Total other comprehensive income (loss) 26,318 (13,355 ) Comprehensive income $ 126,927 $ 75,804 |
| Recently Issued Accounting Pronouncements | |
| 3 Months Ended
Mar. 31, 2010 | |
| Recently Issued Accounting Pronouncements [Abstract] | |
| Recently Issued Accounting Pronouncements | Note D Recently Issued Accounting Pronouncements In June2009, the Financial Accounting Standards Board (FASB) issued new guidance that addresses the elimination of the concept of a qualifying special purpose entity. It also replaces the quantitative-based risks and rewards calculation for determining which enterprise has a controlling financial interest in a variable interest entity with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Additionally, the guidance requires an ongoing assessment of whether a company is the primary beneficiary of the entity. The Company adopted the new guidance on January1, 2010 and concluded that certain independently controlled automotive parts stores for which the Company guarantees debt are variable interest entities, however, the Company is not the primary beneficiary. These entities are discussed further in Note G Guarantees. |
| Share-Based Compensation | |
| 3 Months Ended
Mar. 31, 2010 | |
| Share-Based Compensation [Abstract] | |
| Share-Based Compensation | Note E Share-Based Compensation As more fully discussed in Note 5 of the Companys notes to the consolidated financial statements in the 2009 Annual Report on Form 10-K, the Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance awards, dividend equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in shares of common stock, equal to the excess, if any, of the fair market value of the Companys common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Companys common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one to five years and are expensed accordingly on a straight-line basis. The Company issues new shares upon exercise or conversion of awards under these plans. Most awards may be exercised or converted to shares not earlier than twelve months nor later than ten years from the date of grant. At March31, 2010, total compensation cost related to nonvested awards not yet recognized was approximately $2.7 million, as compared to $12.1million at March31, 2009. The weighted-average period over which this compensation cost is expected to be recognized is approximately 1.5years. The aggregate intrinsic value for options, SARs and RSUs outstanding at March31, 2010 was approximately $24.8 million. At March31, 2010, the aggregate intrinsic value for options, SARs and RSUs vested totaled approximately $19.0million, and the weighted-average contractual life for outstanding and exercisable options, SARs and RSUs was approximately six years. For the three months ended March 31, 2010, $1.1million of share-based compensation cost was recorded, as compared to $2.4million for the same period in the prior year. The Company had no grant activity for the three months ended March31, 2010; however, on April1, 2010, the Company granted approximately 1,002,000 SARs and 124,000 RSUs. |
| Employee Benefit Plans | |
| 3 Months Ended
Mar. 31, 2010 | |
| Employee Benefit Plans [Abstract] | |
| Employee Benefit Plans | Note F Employee Benefit Plans Net periodic benefit cost included the following components for the three months ended March 31: Other Post-retirement Pension Benefits Benefits 2010 2009 2010 2009 (in thousands) Service cost $ 3,771 $ 4,371 $ $ 190 Interest cost 24,315 23,482 156 426 Expected return on plan assets (28,568 ) (27,776 ) Amortization of prior service (credit)cost (899 ) (1,802 ) (265 ) 93 Amortization of actuarial loss 8,571 8,936 448 426 Net periodic benefit cost $ 7,190 $ 7,211 $ 339 $ 1,135 Pension benefits also include amounts related to a supplemental retirement plan. During the three months ended March31, 2010, the Company did not make a contribution to the pension plan. |
| Guarantees | |
| 3 Months Ended
Mar. 31, 2010 | |
| Guarantees [Abstract] | |
| Guarantees | Note G Guarantees The Company guarantees the borrowings of certain independently controlled automotive parts stores (independents) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (affiliates). Presently, the independents are generally consolidated by unaffiliated enterprises that have a controlling financial interest through ownership of a majority voting interest in the entity. The Company has no voting interest or other equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantee. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entitys economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Companys maximum exposure to loss as a result of its involvement with these independents and affiliates is equal to the total borrowings subject to the Companys guarantee. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At March31, 2010, the Company was in compliance with all such covenants. At March31, 2010, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $200.2million. These loans generally mature over periods from one to six years. In the event that the Company is required to make payments in connection with guaranteed obligations of the independents or the affiliates, the Company would obtain and liquidate certain collateral (e.g., accounts receivable and inventory) to recover all or a portion of the amounts paid under the guarantee. When it is deemed probable that the Company will incur a loss in connection with a guarantee, a liability is recorded equal to this estimated loss. To date, the Company has had no significant losses in connection with guarantees of independents and affiliates borrowings. The Company has accrued for certain guarantees related to the independents and affiliates borrowings as of March31, 2010. These liabilities are not material to the financial position of the Company and are included in other long-term liabilities in the accompanying condensed consolidated balance sheets. |
| Fair Value of Financial Instruments | |
| 3 Months Ended
Mar. 31, 2010 | |
| Fair Value of Financial Instruments [Abstract] | |
| Fair Value of Financial Instruments | Note H Fair Value of Financial Instruments The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade accounts receivable and trade accounts payable approximate their respective fair values based on the short-term nature of these instruments. At March31, 2010, the fair value of fixed rate debt was approximately $533.2million, based primarily on quoted prices for similar instruments. The fair value of fixed rate debt was estimated by calculating the present value of anticipated cash flows. The discount rate used was an estimated borrowing rate for similar debt instruments with like maturities. |
| Acquisitions | |
| 3 Months Ended
Mar. 31, 2010 | |
| Acquisitions [Abstract] | |
| Acquisitions | Note I Acquisitions During the three months ended March31, 2010, the Company acquired two companies in the Industrial and Electrical Groups for approximately $66.0million. The Company allocated 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 the acquired companies were included in the Companys condensed consolidated statements of income beginning on their respective acquisition dates. The Company recorded approximately $33.0million of goodwill and other intangible assets associated with the acquisitions. The Company is in the process of analyzing the estimated values of assets and liabilities acquired and are obtaining third-party valuations of certain tangible and intangible assets, thus, the allocation of the purchase price is preliminary and subject to revision. |
