Genuine Parts (GPC) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	GPC
Entity Registrant Name	GENUINE PARTS CO
Entity Central Index Key	40,987
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		151,597,258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 223,840	$ 137,730
Trade accounts receivable, less allowance for doubtful accounts (2015 - $15,947; 2014 - $11,836)	2,008,445	1,872,365
Merchandise inventories, net - at lower of cost or market	3,025,165	3,043,848
Prepaid expenses and other current assets	506,070	538,582
TOTAL CURRENT ASSETS	5,763,520	5,592,525
Goodwill	845,910	839,075
Other intangible assets, less accumulated amortization	536,856	547,515
Deferred tax assets	139,928	145,331
Other assets	486,885	451,690
Property, plant and equipment, less accumulated depreciation (2015 - $896,278; 2014 - $869,083)	640,534	670,102
TOTAL ASSETS	8,413,633	8,246,238
CURRENT LIABILITIES:
Trade accounts payable	2,743,444	2,554,759
Current portion of debt	350,000	265,466
Dividends payable	93,496	88,039
Income taxes payable	1,069	918
Other current liabilities	679,613	674,933
TOTAL CURRENT LIABILITIES	3,867,622	3,584,115
Long-term debt	500,000	500,000
Pension and other post-retirement benefit liabilities	261,783	329,531
Deferred tax liabilities	68,428	72,479
Other long-term liabilities	460,302	447,749
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 - 2015 - 151,709,459; 2014 - 153,113,042	151,709	153,113
Additional paid-in capital	34,309	26,414
Retained earnings	3,867,298	3,841,932
Accumulated other comprehensive loss	(809,501)	(720,211)
TOTAL PARENT EQUITY	3,243,815	3,301,248
Noncontrolling interests in subsidiaries	11,683	11,116
TOTAL EQUITY	3,255,498	3,312,364
TOTAL LIABILITIES AND EQUITY	$ 8,413,633	$ 8,246,238

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 15,947	$ 11,836
Property, plant and equipment, less allowance for depreciation	$ 896,278	$ 869,083
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	151,709,459	153,113,042

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net sales	$ 3,940,401	$ 3,908,387	$ 7,676,452	$ 7,533,284
Cost of goods sold	2,762,071	2,729,219	5,385,303	5,269,486
Gross profit	1,178,330	1,179,168	2,291,149	2,263,798
Operating expenses:
Selling, administrative, and other expenses	832,610	832,205	1,658,164	1,636,006
Depreciation and amortization	35,603	36,783	71,487	73,640
Total operating expenses	868,213	868,988	1,729,651	1,709,646
Income before income taxes	310,117	310,180	561,498	554,152
Income taxes	114,744	112,453	205,115	198,941
Net income	$ 195,373	$ 197,727	$ 356,383	$ 355,211
Basic net income per common share	$ 1.28	$ 1.29	$ 2.34	$ 2.31
Diluted net income per common share	1.28	1.28	2.33	2.30
Dividends declared per common share	$ 0.615	$ 0.575	$ 1.230	$ 1.150
Weighted average common shares outstanding	152,134	153,463	152,394	153,595
Dilutive effect of stock options and non-vested restricted stock awards	855	1,069	880	1,063
Weighted average common shares outstanding - assuming dilution	152,989	154,532	153,274	154,658
Comprehensive income	$ 213,554	$ 240,074	$ 267,093	$ 401,451

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES:
Net income	$ 356,383	$ 355,211
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	71,487	73,640
Share-based compensation	8,646	7,855
Excess tax benefits from share-based compensation	(5,300)	(5,948)
Changes in operating assets and liabilities	22,892	(63,656)
NET CASH PROVIDED BY OPERATING ACTIVITIES	454,108	367,102
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(37,464)	(39,923)
Acquisitions and other investing activities	(80,140)	(178,889)
NET CASH USED IN INVESTING ACTIVITIES	(117,604)	(218,812)
FINANCING ACTIVITIES:
Proceeds from debt	1,634,587	1,246,613
Payments on debt	(1,552,554)	(1,214,169)
Share-based awards exercised, net of taxes paid	(5,914)	(6,754)
Excess tax benefits from share-based compensation	5,300	5,948
Dividends paid	(181,883)	(171,171)
Purchases of stock	(145,219)	(53,769)
NET CASH USED IN FINANCING ACTIVITIES	(245,683)	(193,302)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(4,711)	982
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	86,110	(44,030)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	137,730	196,893
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 223,840	$ 152,863

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [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 December 31, 2014. Accordingly, the unaudited interim condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2014 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 and assumptions in its interim condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, 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, which is performed each year-end. Reserves for bad debts and customer sales returns are estimated and accrued on an interim basis based upon historical experience. Volume incentives are estimated based upon cumulative and projected purchasing levels. The estimates and assumptions for interim reporting may change upon final determination at year-end, In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the six month period ended June 30, 2015 are not necessarily indicative of results for the entire year. The Company has evaluated subsequent events through the date the financial statements covered by this quarterly report were issued.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	Note B – Segment Information Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Net sales: Automotive $ 2,103,126 $ 2,110,396 $ 4,001,634 $ 4,008,911 Industrial 1,188,031 1,209,235 2,369,854 2,352,509 Office products 477,755 418,785 968,053 836,883 Electrical/electronic materials 194,701 188,034 376,747 368,365 Other (23,212 ) (18,063 ) (39,836 ) (33,384 ) Total net sales $ 3,940,401 $ 3,908,387 $ 7,676,452 $ 7,533,284 Operating profit: Automotive $ 207,443 $ 206,683 $ 358,084 $ 356,793 Industrial 88,876 95,428 176,645 178,478 Office products 34,501 31,183 71,025 65,129 Electrical/electronic materials 18,568 16,463 34,031 31,992 Total operating profit 349,388 349,757 639,785 632,392 Interest expense, net (5,674 ) (6,224 ) (11,001 ) (12,430 ) Other intangible assets amortization (8,796 ) (8,498 ) (17,400 ) (17,374 ) Other, net (24,801 ) (24,855 ) (49,886 ) (48,436 ) Income before income taxes $ 310,117 $ 310,180 $ 561,498 $ 554,152 Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item “Other” represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Company’s condensed consolidated statements of income and comprehensive income.

Other Comprehensive Income

Other Comprehensive Income	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Other Comprehensive Income	Note C – Other Comprehensive Income The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Net income $ 195,373 $ 197,727 $ 356,383 $ 355,211 Other comprehensive income (loss): Foreign currency translation 12,315 38,537 (100,994 ) 38,639 Pension and other post-retirement benefit adjustments: Recognition of prior service credit, net of tax (241 ) (493 ) (481 ) (980 ) Recognition of actuarial loss, net of tax 6,107 4,303 12,185 8,581 Total other comprehensive income (loss) 18,181 42,347 (89,290 ) 46,240 Comprehensive income $ 213,554 $ 240,074 $ 267,093 $ 401,451 The following tables present the changes in accumulated other comprehensive loss by component for the six months ended June 30: 2015 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (533,213 ) $ (186,998 ) $ (720,211 ) Other comprehensive loss before reclassifications, net of tax — (100,994 ) (100,994 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 11,704 — 11,704 Net current period other comprehensive income (loss) 11,704 (100,994 ) (89,290 ) Ending balance, June 30 $ (521,509 ) $ (287,992 ) $ (809,501 ) 2014 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (360,036 ) $ (37,619 ) $ (397,655 ) Other comprehensive income before reclassifications, net of tax — 38,639 38,639 Amounts reclassified from accumulated other comprehensive loss, net of tax 7,601 — 7,601 Net current period other comprehensive income 7,601 38,639 46,240 Ending balance, June 30 $ (352,435 ) $ 1,020 $ (351,415 ) The accumulated other comprehensive loss components related to the pension benefits are included in the computation of net periodic benefit income in the employee benefit plans footnote.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements	Note D – Recently Issued Accounting Pronouncements In February 2015, the Financial Accounting Standards Board issued ASU 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Credit Facility	Note E – Credit Facility The Company entered into a multi-currency Syndicated Facility Agreement (the “Syndicated Facility”) on September 11, 2012, which included an $850.0 million unsecured revolving line of credit with an option to increase the borrowing capacity by an additional $350.0 million and was scheduled to mature in September 2017. On June 19, 2015, the Company amended the Syndicated Facility. The amendment increased the borrowing capacity to $1.2 billion, while retaining the Company’s option for a $350.0 million increase, and extended the maturity date to June 2020 with two optional one year extensions. There were no changes to the interest rate or financial covenants. At June 30, 2015, approximately $350.0 million was outstanding under the Syndicated Facility and the Company was in compliance with all covenants thereunder.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Note F – Share-Based Compensation As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements in its 2014 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 Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one 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 June 30, 2015, total compensation cost related to nonvested awards not yet recognized was approximately $42.3 million, as compared to $28.8 million at December 31, 2014. The weighted-average period over which this compensation cost is expected to be recognized is approximately three years. The aggregate intrinsic value for SARs and RSUs outstanding at June 30, 2015 was approximately $127.7 million. At June 30, 2015, the aggregate intrinsic value for SARs and RSUs vested totaled approximately $75.3 million, and the weighted-average contractual life for outstanding and exercisable SARs and RSUs was approximately six and five years, respectively. For the six months ended June 30, 2015, $8.6 million of share-based compensation cost was recorded, as compared to $7.9 million for the same period in the prior year. On April 1, 2015, the Company granted approximately 711,000 SARs and 176,000 RSUs. Options to purchase approximately 1.3 million and 1.1 million shares of common stock were outstanding but excluded from the computation of diluted earnings per share for the three and six month periods ended June 30, 2015, as compared to approximately 0.7 million and 0.4 million shares for the three and six month periods ended June 30, 2014, respectively. These options were excluded from the computation of diluted net income per common share because the options’ exercise prices were greater than the average market price of the common stock.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Note G – Employee Benefit Plans Net periodic benefit income for the pension plans included the following components for the three months ended June 30: Pension Benefits 2015 2014 (in thousands) Service cost $ 2,403 $ 1,927 Interest cost 24,631 25,530 Expected return on plan assets (37,675 ) (36,234 ) Amortization of prior service credit (141 ) (468 ) Amortization of actuarial loss 9,628 6,613 Net periodic benefit income $ (1,154 ) $ (2,632 ) Net periodic benefit income for the pension plans included the following components for the six months ended June 30: Pension Benefits 2015 2014 (in thousands) Service cost $ 4,790 $ 3,836 Interest cost 49,243 51,032 Expected return on plan assets (75,322 ) (72,431 ) Amortization of prior service credit (282 ) (932 ) Amortization of actuarial loss 19,241 13,208 Net periodic benefit income $ (2,330 ) $ (5,287 ) Pension benefits also include amounts related to a supplemental retirement plan. During the six months ended June 30, 2015, the Company made a $38.7 million contribution to the pension plan.

Guarantees

Guarantees	6 Months Ended
	Jun. 30, 2015
Guarantees [Abstract]
Guarantees	Note H – 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 controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At June 30, 2015, the Company was in compliance with all such covenants. At June 30, 2015, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $299.4 million. 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 guarantees. 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. As of June 30, 2015, the Company has recognized certain assets and liabilities amounting to $31.0 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note I – Fair Value of Financial Instruments The carrying amounts reflected in the condensed 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. At June 30, 2015, the carrying value and the fair value of fixed rate debt were approximately $500.0 million and $497.2 million, respectively. The fair value of fixed rate debt is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk and maturity. The carrying value of the fixed rate debt is included in “Long-term debt” in the accompanying condensed consolidated balance sheets.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [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 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 December 31, 2014. Accordingly, the unaudited interim condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2014 Annual Report on Form 10-K.
Use of Estimates	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 and assumptions in its interim condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, 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, which is performed each year-end. Reserves for bad debts and customer sales returns are estimated and accrued on an interim basis based upon historical experience. Volume incentives are estimated based upon cumulative and projected purchasing levels. The estimates and assumptions for interim reporting may change upon final determination at year-end, and such changes may be significant.
Segment Reporting	Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item “Other” represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Company’s condensed consolidated statements of income and comprehensive income.
Recently Issued Accounting Pronouncements	In February 2015, the Financial Accounting Standards Board issued ASU 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis
Share-based Compensation, Option and Incentive Plans	As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements in its 2014 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 Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one 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.
Consolidation, Variable Interest Entity	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 controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At June 30, 2015, the Company was in compliance with all such covenants. 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 guarantees. 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.
Fair Value of Financial Instruments	The carrying amounts reflected in the condensed 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. At June 30, 2015, the carrying value and the fair value of fixed rate debt were approximately $500.0 million and $497.2 million, respectively. The fair value of fixed rate debt is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk and maturity. The carrying value of the fixed rate debt is included in “Long-term debt” in the accompanying condensed consolidated balance sheets.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Summary of Segment Information	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Net sales: Automotive $ 2,103,126 $ 2,110,396 $ 4,001,634 $ 4,008,911 Industrial 1,188,031 1,209,235 2,369,854 2,352,509 Office products 477,755 418,785 968,053 836,883 Electrical/electronic materials 194,701 188,034 376,747 368,365 Other (23,212 ) (18,063 ) (39,836 ) (33,384 ) Total net sales $ 3,940,401 $ 3,908,387 $ 7,676,452 $ 7,533,284 Operating profit: Automotive $ 207,443 $ 206,683 $ 358,084 $ 356,793 Industrial 88,876 95,428 176,645 178,478 Office products 34,501 31,183 71,025 65,129 Electrical/electronic materials 18,568 16,463 34,031 31,992 Total operating profit 349,388 349,757 639,785 632,392 Interest expense, net (5,674 ) (6,224 ) (11,001 ) (12,430 ) Other intangible assets amortization (8,796 ) (8,498 ) (17,400 ) (17,374 ) Other, net (24,801 ) (24,855 ) (49,886 ) (48,436 ) Income before income taxes $ 310,117 $ 310,180 $ 561,498 $ 554,152

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Comprehensive Income	The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Net income $ 195,373 $ 197,727 $ 356,383 $ 355,211 Other comprehensive income (loss): Foreign currency translation 12,315 38,537 (100,994 ) 38,639 Pension and other post-retirement benefit adjustments: Recognition of prior service credit, net of tax (241 ) (493 ) (481 ) (980 ) Recognition of actuarial loss, net of tax 6,107 4,303 12,185 8,581 Total other comprehensive income (loss) 18,181 42,347 (89,290 ) 46,240 Comprehensive income $ 213,554 $ 240,074 $ 267,093 $ 401,451
Changes in Accumulated Other Comprehensive Loss	The following tables present the changes in accumulated other comprehensive loss by component for the six months ended June 30: 2015 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (533,213 ) $ (186,998 ) $ (720,211 ) Other comprehensive loss before reclassifications, net of tax — (100,994 ) (100,994 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 11,704 — 11,704 Net current period other comprehensive income (loss) 11,704 (100,994 ) (89,290 ) Ending balance, June 30 $ (521,509 ) $ (287,992 ) $ (809,501 ) 2014 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (360,036 ) $ (37,619 ) $ (397,655 ) Other comprehensive income before reclassifications, net of tax — 38,639 38,639 Amounts reclassified from accumulated other comprehensive loss, net of tax 7,601 — 7,601 Net current period other comprehensive income 7,601 38,639 46,240 Ending balance, June 30 $ (352,435 ) $ 1,020 $ (351,415 )

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Income for the Pension Plans	Net periodic benefit income for the pension plans included the following components for the three months ended June 30: Pension Benefits 2015 2014 (in thousands) Service cost $ 2,403 $ 1,927 Interest cost 24,631 25,530 Expected return on plan assets (37,675 ) (36,234 ) Amortization of prior service credit (141 ) (468 ) Amortization of actuarial loss 9,628 6,613 Net periodic benefit income $ (1,154 ) $ (2,632 ) Net periodic benefit income for the pension plans included the following components for the six months ended June 30: Pension Benefits 2015 2014 (in thousands) Service cost $ 4,790 $ 3,836 Interest cost 49,243 51,032 Expected return on plan assets (75,322 ) (72,431 ) Amortization of prior service credit (282 ) (932 ) Amortization of actuarial loss 19,241 13,208 Net periodic benefit income $ (2,330 ) $ (5,287 )

Segment Information - Summary o

Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Total net sales	$ 3,940,401	$ 3,908,387	$ 7,676,452	$ 7,533,284
Total operating profit	349,388	349,757	639,785	632,392
Income before income taxes	310,117	310,180	561,498	554,152
Operating Segments [Member] | Automotive [Member]
Segment Reporting Information [Line Items]
Total net sales	2,103,126	2,110,396	4,001,634	4,008,911
Total operating profit	207,443	206,683	358,084	356,793
Operating Segments [Member] | Industrial [Member]
Segment Reporting Information [Line Items]
Total net sales	1,188,031	1,209,235	2,369,854	2,352,509
Total operating profit	88,876	95,428	176,645	178,478
Operating Segments [Member] | Office Products [Member]
Segment Reporting Information [Line Items]
Total net sales	477,755	418,785	968,053	836,883
Total operating profit	34,501	31,183	71,025	65,129
Operating Segments [Member] | Electrical/Electronic Materials [Member]
Segment Reporting Information [Line Items]
Total net sales	194,701	188,034	376,747	368,365
Total operating profit	18,568	16,463	34,031	31,992
Other [Member]
Segment Reporting Information [Line Items]
Total net sales	(23,212)	(18,063)	(39,836)	(33,384)
Interest expense, net	(5,674)	(6,224)	(11,001)	(12,430)
Other intangible assets amortization	(8,796)	(8,498)	(17,400)	(17,374)
Other, net	$ (24,801)	$ (24,855)	$ (49,886)	$ (48,436)

Other Comprehensive Income - Co

Other Comprehensive Income - Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Net income	$ 195,373	$ 197,727	$ 356,383	$ 355,211
Other comprehensive income (loss):
Foreign currency translation	12,315	38,537	(100,994)	38,639
Pension and other post-retirement benefit adjustments:
Recognition of prior service credit, net of tax	(241)	(493)	(481)	(980)
Recognition of actuarial loss, net of tax	6,107	4,303	12,185	8,581
Net current period other comprehensive income (loss)	18,181	42,347	(89,290)	46,240
Comprehensive income	$ 213,554	$ 240,074	$ 267,093	$ 401,451

Other Comprehensive Income - Ch

Other Comprehensive Income - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Components of Accumulated Other Comprehensive Loss [Line Items]
Beginning balance			$ (720,211)	$ (397,655)
Other comprehensive income (loss) before reclassifications, net of tax			(100,994)	38,639
Amounts reclassified from accumulated other comprehensive loss, net of tax			11,704	7,601
Net current period other comprehensive income (loss)	$ 18,181	$ 42,347	(89,290)	46,240
Ending balance	(809,501)	(351,415)	(809,501)	(351,415)
Pension and Other Post-Retirement Benefits [Member]
Components of Accumulated Other Comprehensive Loss [Line Items]
Beginning balance			(533,213)	(360,036)
Amounts reclassified from accumulated other comprehensive loss, net of tax			11,704	7,601
Net current period other comprehensive income (loss)			11,704	7,601
Ending balance	(521,509)	(352,435)	(521,509)	(352,435)
Foreign Currency Translation [Member]
Components of Accumulated Other Comprehensive Loss [Line Items]
Beginning balance			(186,998)	(37,619)
Other comprehensive income (loss) before reclassifications, net of tax			(100,994)	38,639
Net current period other comprehensive income (loss)			(100,994)	38,639
Ending balance	$ (287,992)	$ 1,020	$ (287,992)	$ 1,020

Credit Facility - Additional In

Credit Facility - Additional Information (Detail) - Syndicated Facility Agreement [Member] - USD ($)	Jun. 19, 2015	Sep. 11, 2012	Jun. 30, 2015
Line of Credit Facility [Line Items]
Unsecured revolving line of credit facility	$ 1,200,000,000	$ 850,000,000
Line of credit facility amount option to increase additional borrowings	$ 350,000,000	$ 350,000,000
Credit facility agreement initiation date		Sep. 11, 2012
Outstanding line of credit			$ 350,000,000
Credit facility agreement, maturity date	Jun. 19, 2020	Sep. 11, 2017

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	Apr. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost related to nonvested awards, unrecognized		$ 42.3		$ 42.3		$ 28.8
Weighted-average period to recognize compensation cost (in years)				3 years
Aggregate intrinsic value for outstanding SARs and RSUs		$ 127.7		$ 127.7
Aggregate intrinsic value for vested SARs and RSUs				$ 75.3
Weighted-average remaining contractual life for outstanding SARs and RSUs, in years				6 years
Weighted-average remaining contractual life for exercisable SARs and RSUs, in years				5 years
Share-based compensation cost				$ 8.6	$ 7.9
Outstanding options to purchase common shares not included in dilutive shares		1,300,000	700,000	1,100,000	400,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award granted vesting period range				1 year
Share-based payment, awards exercise				12 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award granted vesting period range				5 years
Share-based payment, awards exercise				10 years
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	711,000
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	176,000

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Income for the Pension Plans (Detail) - Pension Benefits [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,403	$ 1,927	$ 4,790	$ 3,836
Interest cost	24,631	25,530	49,243	51,032
Expected return on plan assets	(37,675)	(36,234)	(75,322)	(72,431)
Amortization of prior service credit	(141)	(468)	(282)	(932)
Amortization of actuarial loss	9,628	6,613	19,241	13,208
Net periodic benefit income	$ (1,154)	$ (2,632)	$ (2,330)	$ (5,287)

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Compensation and Retirement Disclosure [Abstract]
Contribution to the pension plan	$ 38.7

Guarantees - Additional Informa

Guarantees - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Millions	Total
Guarantor Obligations [Line Items]
Total borrowings of the independents and affiliates subject to guarantee	$ 299.4
Guarantees related to borrowings, other assets	31
Guarantees related to borrowings, other long-term liabilities	$ 31
Minimum [Member]
Guarantor Obligations [Line Items]
Guaranteed obligations maturity	1 year
Maximum [Member]
Guarantor Obligations [Line Items]
Guaranteed obligations maturity	6 years

Fair Value of Financial Instr27

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Carrying value of fixed rate debt	$ 500,000	$ 500,000
Fair value of fixed rate debt	$ 497,200