Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GPC | ||
Entity Registrant Name | GENUINE PARTS CO | ||
Entity Central Index Key | 40,987 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 149,515,598 | ||
Entity Public Float | $ 13,180,127,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 211,631 | $ 137,730 |
Trade accounts receivable, net | 1,822,419 | 1,872,365 |
Merchandise inventories, net | 2,999,966 | 3,043,848 |
Prepaid expenses and other current assets | 521,300 | 538,582 |
Total current assets | 5,555,316 | 5,592,525 |
Goodwill | 840,582 | 839,075 |
Other intangible assets, less accumulated amortization | 521,213 | 547,515 |
Deferred tax assets | 118,525 | 145,331 |
Other assets | 460,918 | 451,690 |
Property, plant, and equipment: | ||
Land | 85,450 | 87,651 |
Buildings, less accumulated depreciation (2015 - $282,804; 2014 - $270,946) | 267,446 | 281,824 |
Machinery and equipment, less accumulated depreciation (2015 - $620,113; 2014 - $598,137) | 295,321 | 300,627 |
Net property, plant, and equipment | 648,217 | 670,102 |
TOTAL ASSETS | 8,144,771 | 8,246,238 |
Current liabilities: | ||
Trade accounts payable | 2,821,526 | 2,554,759 |
Current portion of debt | 375,000 | 265,466 |
Accrued compensation | 148,265 | 165,291 |
Other current liabilities | 503,268 | 510,560 |
Dividends payable | 92,595 | 88,039 |
Total current liabilities | 3,940,654 | 3,584,115 |
Long-term debt | 250,000 | 500,000 |
Pension and other post-retirement benefit liabilities | 284,235 | 329,531 |
Deferred tax liabilities | 50,684 | 72,479 |
Other long-term liabilities | $ 459,956 | $ 447,749 |
Equity: | ||
Preferred stock, par value $1 per share - authorized 10,000,000 shares; none issued | ||
Common stock, par value $1 per share - authorized 450,000,000 shares; issued and outstanding 150,081,474 shares in 2015 and 153,113,042 shares in 2014 | $ 150,081 | $ 153,113 |
Additional paid-in capital | 41,353 | 26,414 |
Accumulated other comprehensive loss | (930,618) | (720,211) |
Retained earnings | 3,885,751 | 3,841,932 |
Total parent equity | 3,146,567 | 3,301,248 |
Noncontrolling interests in subsidiaries | 12,675 | 11,116 |
Total equity | 3,159,242 | 3,312,364 |
TOTAL LIABILITIES AND EQUITY | $ 8,144,771 | $ 8,246,238 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Buildings, allowance for depreciation | $ 282,804 | $ 270,946 |
Machinery and equipment, allowance for depreciation | $ 620,113 | $ 598,137 |
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 | 150,081,474 | 153,113,042 |
Common stock, shares outstanding | 150,081,474 | 153,113,042 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 15,280,044 | $ 15,341,647 | $ 14,077,843 |
Cost of goods sold | 10,724,192 | 10,747,886 | 9,857,923 |
Gross margin | 4,555,852 | 4,593,761 | 4,219,920 |
Operating expenses: | |||
Selling, administrative, and other expenses | 3,277,390 | 3,314,030 | 3,028,028 |
Depreciation and amortization | 141,675 | 148,313 | 133,957 |
Provision for doubtful accounts | 12,373 | 7,192 | 8,691 |
Total operating expenses | 3,431,438 | 3,469,535 | 3,170,676 |
Non-operating expenses (income): | |||
Interest expense | 21,662 | 25,088 | 26,971 |
Other | (20,929) | (18,601) | (22,031) |
Total non-operating expenses | 733 | 6,487 | 4,940 |
Income before income taxes | 1,123,681 | 1,117,739 | 1,044,304 |
Income taxes | 418,009 | 406,453 | 359,345 |
Net income | $ 705,672 | $ 711,286 | $ 684,959 |
Basic net income per common share | $ 4.65 | $ 4.64 | $ 4.43 |
Diluted net income per common share | $ 4.63 | $ 4.61 | $ 4.40 |
Weighted average common shares outstanding | 151,667 | 153,299 | 154,636 |
Dilutive effect of stock options and nonvested restricted stock awards | 829 | 1,076 | 1,078 |
Weighted average common shares outstanding - assuming dilution | 152,496 | 154,375 | 155,714 |
Net income | $ 705,672 | $ 711,286 | $ 684,959 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment | (207,986) | (149,379) | (168,703) |
Pension and postretirement benefit adjustments, net of income taxes of 2015 - $5,335, 2014 - $112,993, and 2013 - ($175,297) | (2,421) | (173,177) | 272,540 |
Other comprehensive (loss) income, net of tax | (210,407) | (322,556) | 103,837 |
Comprehensive income | $ 495,265 | $ 388,730 | $ 788,796 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Pension and postretirement benefit adjustments, tax | $ 5,335 | $ 112,993 | $ (175,297) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Total Parent Equity [Member] | Non-Controlling Interest in Subsidiaries [Member] |
Beginning Balance at Dec. 31, 2012 | $ 3,008,179 | $ 154,841 | $ (501,492) | $ 3,344,538 | $ 2,997,887 | $ 10,292 | |
Beginning Balance, Shares at Dec. 31, 2012 | 154,841,438 | ||||||
Net income | 684,959 | 684,959 | 684,959 | ||||
Other comprehensive (loss) income, net of tax | 103,837 | 103,837 | 103,837 | ||||
Cash dividends declared | (332,322) | (332,322) | (332,322) | ||||
Share-based awards exercised, including tax benefit | 2,737 | $ 450 | $ 2,287 | 2,737 | |||
Share-based awards exercised, including tax benefit, Shares | 449,986 | ||||||
Share-based compensation | 12,648 | 12,648 | 12,648 | ||||
Purchase of stock | (120,672) | $ (1,518) | (119,154) | (120,672) | |||
Purchase of stock, Shares | (1,518,326) | ||||||
Noncontrolling interest activities | (598) | (598) | |||||
Ending Balance at Dec. 31, 2013 | 3,358,768 | $ 153,773 | 14,935 | (397,655) | 3,578,021 | 3,349,074 | 9,694 |
Ending Balance, Shares at Dec. 31, 2013 | 153,773,098 | ||||||
Net income | 711,286 | 711,286 | 711,286 | ||||
Other comprehensive (loss) income, net of tax | (322,556) | (322,556) | (322,556) | ||||
Cash dividends declared | (352,564) | (352,564) | (352,564) | ||||
Share-based awards exercised, including tax benefit | (4,285) | $ 475 | (4,760) | (4,285) | |||
Share-based awards exercised, including tax benefit, Shares | 474,800 | ||||||
Share-based compensation | 16,239 | 16,239 | 16,239 | ||||
Purchase of stock | (95,946) | $ (1,135) | (94,811) | (95,946) | |||
Purchase of stock, Shares | (1,134,856) | ||||||
Noncontrolling interest activities | 1,422 | 1,422 | |||||
Ending Balance at Dec. 31, 2014 | 3,312,364 | $ 153,113 | 26,414 | (720,211) | 3,841,932 | 3,301,248 | 11,116 |
Ending Balance, Shares at Dec. 31, 2014 | 153,113,042 | ||||||
Net income | 705,672 | 705,672 | 705,672 | ||||
Other comprehensive (loss) income, net of tax | (210,407) | (210,407) | (210,407) | ||||
Cash dividends declared | (372,840) | (372,840) | (372,840) | ||||
Share-based awards exercised, including tax benefit | (2,548) | $ 230 | (2,778) | (2,548) | |||
Share-based awards exercised, including tax benefit, Shares | 229,958 | ||||||
Share-based compensation | 17,717 | 17,717 | 17,717 | ||||
Purchase of stock | (292,275) | $ (3,262) | (289,013) | (292,275) | |||
Purchase of stock, Shares | (3,261,526) | ||||||
Noncontrolling interest activities | 1,559 | 1,559 | |||||
Ending Balance at Dec. 31, 2015 | $ 3,159,242 | $ 150,081 | $ 41,353 | $ (930,618) | $ 3,885,751 | $ 3,146,567 | $ 12,675 |
Ending Balance, Shares at Dec. 31, 2015 | 150,081,474 |
Consolidated Statements of Equ7
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividends declared per share | $ 2.46 | $ 2.30 | $ 2.15 |
Tax effect on share-based awards exercised | $ 7,024 | $ 17,766 | $ 12,905 |
Common Stock [Member] | |||
Tax effect on share-based awards exercised | 7,024 | 17,766 | 12,905 |
Additional Paid-In Capital [Member] | |||
Tax effect on share-based awards exercised | $ 7,024 | $ 17,766 | $ 12,905 |
Retained Earnings [Member] | |||
Cash dividends declared per share | $ 2.46 | $ 2.30 | $ 2.15 |
Total Parent Equity [Member] | |||
Cash dividends declared per share | $ 2.46 | $ 2.30 | $ 2.15 |
Tax effect on share-based awards exercised | $ 7,024 | $ 17,766 | $ 12,905 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 705,672 | $ 711,286 | $ 684,959 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 141,675 | 148,313 | 133,957 |
Excess tax benefits from share-based compensation | (7,024) | (17,766) | (12,905) |
Gain on sale of property, plant, and equipment | (3,189) | (3,719) | (4,729) |
Deferred income taxes | 35,544 | 54,319 | (21,622) |
Share-based compensation | 17,717 | 16,239 | 12,648 |
Gain on GPC Asia Pacific equity investment | (59,000) | ||
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | 1,974 | (225,178) | (116,080) |
Merchandise inventories, net | (21,821) | (100,820) | (79,253) |
Trade accounts payable | 331,419 | 292,257 | 473,424 |
Other short-term assets and liabilities | 967 | 15,616 | (14,418) |
Other long-term assets and liabilities | (43,561) | (100,402) | 59,750 |
Changes in operating assets and liabilities | 453,701 | 78,859 | 371,772 |
Net cash provided by operating activities | 1,159,373 | 790,145 | 1,056,731 |
Investing activities | |||
Purchases of property, plant and equipment | (109,544) | (107,681) | (124,063) |
Proceeds from sale of property, plant, and equipment | 8,618 | 8,866 | 10,657 |
Acquisition of businesses and other investing activities | (162,701) | (287,900) | (712,173) |
Net cash used in investing activities | (263,627) | (386,715) | (825,579) |
Financing activities | |||
Proceeds from debt | 3,862,224 | 2,727,924 | 3,019,931 |
Payments on debt | (4,005,191) | (2,735,862) | (2,995,335) |
Share-based awards exercised, net of taxes paid | (9,572) | (22,051) | (15,728) |
Excess tax benefits from share-based compensation | 7,024 | 17,766 | 12,905 |
Dividends paid | (368,284) | (347,271) | (326,217) |
Purchase of stock | (292,275) | (95,946) | (120,673) |
Net cash used in financing activities | (806,074) | (455,440) | (425,117) |
Effect of exchange rate changes on cash | (15,771) | (7,153) | (12,237) |
Net increase (decrease) in cash and cash equivalents | 73,901 | (59,163) | (206,202) |
Cash and cash equivalents at beginning of year | 137,730 | 196,893 | 403,095 |
Cash and cash equivalents at end of year | 211,631 | 137,730 | 196,893 |
Supplemental disclosures of cash flow information Cash paid during the year for: | |||
Income taxes | 352,153 | 408,604 | 342,372 |
Interest | $ 23,687 | $ 25,155 | $ 27,221 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Business Genuine Parts Company and all of its majority-owned subsidiaries (the Company) is a distributor of automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials. The Company serves a diverse customer base through approximately 2,650 locations in North America and Australasia and, therefore, has limited exposure from credit losses to any particular customer, region, or industry segment. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company has evaluated subsequent events through the date the financial statements were issued. Principles of Consolidation The consolidated financial statements include all of the accounts of the Company. The net income attributable to noncontrolling interests is not material to the Company’s consolidated net income. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and the differences could be material. Revenue Recognition The Company records revenue when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the Company’s price to the customer is fixed and determinable and collectability is reasonably assured. Delivery is not considered to have occurred until the customer assumes the risks and rewards of ownership. Foreign Currency Translation The consolidated balance sheets and statements of income and comprehensive income of the Company’s foreign subsidiaries have been translated into U.S. dollars at the current and average exchange rates, respectively. The foreign currency translation adjustment is included as a component of accumulated other comprehensive loss. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Trade Accounts Receivable and the Allowance for Doubtful Accounts The Company evaluates the collectability of trade accounts receivable based on a combination of factors. The Company estimates an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience and periodically adjusts this estimate when the Company becomes aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. For the years ended December 31, 2015, 2014, and 2013, the Company recorded provisions for doubtful accounts of approximately $12,373,000, $7,192,000, and $8,691,000, respectively. At December 31, 2015 and 2014, the allowance for doubtful accounts was approximately $10,693,000 and $11,836,000, respectively. Merchandise Inventories, Including Consideration Received From Vendors Merchandise inventories are valued at the lower of cost or market. Cost is determined by the last-in, first-out (LIFO) method for a majority of automotive parts, electrical/electronic materials, and industrial parts, and by the first-in, first-out (FIFO) method for office products and certain other inventories. If the FIFO method had been used for all inventories, cost would have been approximately $438,510,000 and $434,790,000 higher than reported at December 31, 2015 and 2014, respectively. During 2014 and 2013, reductions in inventory levels in automotive parts inventories (2013) and industrial parts inventories (2014 and 2013) resulted in liquidations of LIFO inventory layers. The effect of the LIFO liquidations in 2014 and 2013 was to reduce cost of goods sold by approximately $8,000,000 and $5,000,000, respectively. The Company identifies slow moving or obsolete inventories and estimates appropriate provisions related thereto. Historically, these losses have not been significant as the vast majority of the Company’s inventories are not highly susceptible to obsolescence and are eligible for return under various vendor return programs. While the Company has no reason to believe its inventory return privileges will be discontinued in the future, its risk of loss associated with obsolete or slow moving inventories would increase if such were to occur. The Company enters into agreements at the beginning of each year with many of its vendors that provide for inventory purchase incentives. Generally, the Company earns inventory purchase incentives upon achieving specified volume purchasing levels or other criteria. The Company accrues for the receipt of these incentives as part of its inventory cost based on cumulative purchases of inventory to date and projected inventory purchases through the end of the year. While management believes the Company will continue to receive consideration from vendors in 2016 and beyond, there can be no assurance that vendors will continue to provide comparable amounts of incentives in the future. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of prepaid expenses, amounts due from vendors, and income taxes receivable. Goodwill The Company reviews its goodwill annually in the fourth quarter, or sooner if circumstances indicate that the carrying amount may exceed fair value. The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment, which is referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. The present value of future cash flows approach was used to determine any potential impairment. The Company determined that goodwill was not impaired and, therefore, no impairments were recognized for the years ended December 31, 2015, 2014, and 2013. Other Assets Other assets are comprised of the following: December 31 2015 2014 (In Thousands) Retirement benefit assets $ 3,336 $ 4,247 Deferred compensation benefits 28,488 27,828 Investments 28,351 29,139 Cash surrender value of life insurance policies 105,213 105,227 Customer sales returns inventories 72,814 67,400 Guarantees related to borrowings 35,000 29,000 Other long-term prepayments and receivables 187,716 188,849 Total other assets $ 460,918 $ 451,690 The guarantees related to borrowings are discussed further in the guarantees footnote. Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Depreciation and amortization is primarily determined on a straight-line basis over the following estimated useful life of each asset: buildings and improvements, 10 to 40 years; machinery and equipment, 5 to 15 years. Long-Lived Assets Other Than Goodwill The Company assesses its long-lived assets other than goodwill for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. Impairment losses, if any, are measured based upon the difference between the carrying amount and the fair value of the assets. Other Long-Term Liabilities Other long-term liabilities are comprised of the following: December 31 2015 2014 (In Thousands) Post-employment and other benefit/retirement liabilities $ 54,034 $ 57,754 Insurance liabilities 33,979 48,569 Other lease obligations 37,642 40,040 Other taxes payable 15,495 18,947 Customer deposits 85,552 81,496 Guarantees related to borrowings 35,000 29,000 Other 198,254 171,943 Total other long-term liabilities $ 459,956 $ 447,749 The guarantees related to borrowings are discussed further in the guarantees footnote. Self-Insurance The Company is self-insured for the majority of group health insurance costs. A reserve for claims incurred but not reported is developed by analyzing historical claims data provided by the Company’s claims administrators. These reserves are included in accrued expenses in the accompanying consolidated balance sheets as the expenses are expected to be paid within one year. Long-term insurance liabilities consist primarily of reserves for the workers’ compensation program. In addition, the Company carries various large risk deductible workers’ compensation policies for the majority of workers’ compensation liabilities. The Company records the workers’ compensation reserves based on an analysis performed by an independent actuary. The analysis calculates development factors, which are applied to total reserves as provided by the various insurance companies who underwrite the program. While the Company believes that the assumptions used to calculate these liabilities are appropriate, significant differences in actual experience or significant changes in these assumptions may materially affect workers’ compensation costs. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is comprised of the following: December 31 2015 2014 (In Thousands) Foreign currency translation $ (394,984 ) $ (186,998 ) Unrecognized net actuarial loss, net of tax (540,018 ) (538,614 ) Unrecognized prior service credit, net of tax 4,384 5,401 Total accumulated other comprehensive loss $ (930,618 ) $ (720,211 ) The following table presents the changes in accumulated other comprehensive loss by component for the years ended on December 31, 2015 and 2014: Changes in Accumulated Other Comprehensive Loss by Component Pension Benefits Other Post- Retirement Benefits Foreign Currency Translation Total (In Thousands) Beginning balance, January 1, 2014 $ (359,079 ) $ (957 ) $ (37,619 ) $ (397,655 ) Other comprehensive loss before reclassifications, net of tax (193,182 ) (39 ) (149,379 ) (342,600 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 20,192 (148 ) — 20,044 Net current period other comprehensive loss (172,990 ) (187 ) (149,379 ) (322,556 ) Ending balance, December 31, 2014 (532,069 ) (1,144 ) (186,998 ) (720,211 ) Other comprehensive loss before reclassifications, net of tax (25,558 ) (111 ) (207,986 ) (233,655 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 23,412 (164 ) — 23,248 Net current period other comprehensive loss (2,146 ) (275 ) (207,986 ) (210,407 ) Ending balance, December 31, 2015 $ (534,215 ) $ (1,419 ) $ (394,984 ) $ (930,618 ) The accumulated other comprehensive loss components related to the pension benefits are included in the computation of net periodic benefit (income) cost in the employee benefit plans footnote. Fair Value of Financial Instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, trade accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective fair values based on the short-term nature of these instruments. At December 31, 2015 and 2014, the fair value of fixed rate debt was approximately $501,000,000 and $505,000,000, 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. At December 31, 2015 and 2014, the carrying value of fixed rate debt was $500,000,000 and is included in current portion of debt and long-term debt in the consolidated balance sheets. Shipping and Handling Costs Shipping and handling costs are classified as selling, administrative and other expenses in the accompanying consolidated statements of income and comprehensive income and totaled approximately $270,000,000, $270,000,000, and $250,000,000, for the years ended December 31, 2015, 2014, and 2013, respectively. Advertising Costs Advertising costs are expensed as incurred and totaled $75,000,000, $71,300,000, and $57,900,000 in the years ended December 31, 2015, 2014, and 2013, respectively. Accounting for Legal Costs The Company’s legal costs expected to be incurred in connection with loss contingencies are expensed as such costs are incurred. Share-Based Compensation 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. Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the year. The computation of diluted net income per common share includes the dilutive effect of stock options, stock appreciation rights and nonvested restricted stock awards options. Options to purchase approximately 1,280,000, 610,000, and 630,000 shares of common stock ranging from $77 — $92 per share were outstanding at December 31, 2015, 2014, and 2013, 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 prices of common stock in each respective year. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In February 2015, the FASB issued ASU 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 2. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014 by reportable segment, as well as other identifiable intangible assets, are summarized as follows (in thousands): Goodwill Other Intangible Assets, Net Automotive Industrial Office Products Electrical/ Electronic Materials Total Balance as of January 1, 2014 $ 622,180 $ 116,136 $ 10,554 $ 41,101 $ 789,971 $ 499,385 Additions 20,404 3,577 37,054 31,565 92,600 110,129 Amortization — — — — — (36,867 ) Foreign currency translation (42,745 ) (751 ) — — (43,496 ) (25,132 ) Balance as of December 31, 2014 599,839 118,962 47,608 72,666 839,075 547,515 Additions 5,030 18,696 8,891 20,335 52,952 38,596 Amortization — — — — — (34,878 ) Foreign currency translation (49,866 ) (1,579 ) — — (51,445 ) (30,020 ) Balance as of December 31, 2015 $ 555,003 $ 136,079 $ 56,499 $ 93,001 $ 840,582 $ 521,213 The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2015 and 2014 is as follows (in thousands): 2015 2014 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 494,516 $ (115,636 ) $ 378,880 $ 477,484 $ (88,923 ) $ 388,561 Trademarks 153,346 (11,922 ) 141,424 166,507 (8,654 ) 157,853 Non-competition agreements 5,765 (4,856 ) 909 6,062 (4,961 ) 1,101 $ 653,627 $ (132,414 ) $ 521,213 $ 650,053 $ (102,538 ) $ 547,515 Amortization expense for other intangible assets totaled $34,878,000, $36,867,000, and $28,987,000 for the years ended December 31, 2015, 2014, and 2013, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows (in thousands): 2016 $ 35,000 2017 35,000 2018 35,000 2019 34,000 2020 34,000 $ 173,000 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facilities | 3. Credit Facilities The principal amounts of the Company’s borrowings subject to variable rates totaled approximately $125,000,000 and $265,466,000 at December 31, 2015 and 2014, respectively. The weighted average interest rate on the Company’s outstanding borrowings was approximately 2.76% and 2.46% at December 31, 2015 and 2014, respectively. The Company maintains a $1,200,000,000 unsecured revolving line of credit with a consortium of financial institutions, which matures in June 2020 with two optional one year extensions and bears interest at LIBOR plus a margin, which is based on the Company’s leverage ratio (1.17% at December 31, 2015). The Company also has the option under this agreement to increase its borrowing an additional $350,000,000, as well as an option to decrease the borrowing capacity or terminate the facility with appropriate notice. At December 31, 2015 and 2014, approximately $125,000,000 and $265,466,000 were outstanding under this line of credit, respectively. Certain borrowings require the Company to comply with a financial covenant with respect to a maximum debt-to-capitalization ratio. At December 31, 2015, the Company was in compliance with all such covenants. Due to the workers’ compensation and insurance reserve requirements in certain states, the Company also had unused letters of credit of $62,874,000 and $62,515,000 outstanding at December 31, 2015 and 2014, respectively. Amounts outstanding under the Company’s credit facilities consist of the following: December 31 2015 2014 (In Thousands) Unsecured revolving line of credit, $1,200,000,000, LIBOR plus 0.75% variable $ 125,000 $ 265,466 Unsecured term notes: November 30, 2011, Series D and E Senior Unsecured Notes, $250,000,000, 3.35% fixed, due November 30, 2016 250,000 250,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000,000, 2.99% fixed, due December 2, 2023 250,000 250,000 Total debt 625,000 765,466 Less debt due within one year 375,000 265,466 Long-term debt, excluding current portion $ 250,000 $ 500,000 Approximate maturities under the Company’s credit facilities are as follows (in thousands): 2016 $ 375,000 2017 — 2018 — 2019 — 2020 — Thereafter 250,000 $ 625,000 |
Leased Properties
Leased Properties | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leased Properties | 4. Leased Properties Future minimum payments, by year and in the aggregate, under the noncancelable operating leases with initial or remaining terms of one year or more was approximately the following at December 31, 2015 (in thousands): 2016 $ 207,800 2017 163,100 2018 118,300 2019 78,000 2020 48,400 Thereafter 152,300 Total minimum lease payments $ 767,900 Rental expense for operating leases was approximately $254,000,000, $233,000,000, and $208,000,000 for 2015, 2014, and 2013, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation At December 31, 2015, total compensation cost related to nonvested awards not yet recognized was approximately $33,000,000. 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 December 31, 2015 and 2014 was approximately $104,000,000 and $198,100,000, respectively. The aggregate intrinsic value for SARs and RSUs vested totaled approximately $65,000,000 and $116,200,000 at December 31, 2015 and 2014, respectively. At December 31, 2015, the weighted-average contractual life for outstanding and exercisable SARs and RSUs was six and five years, respectively. Share-based compensation costs of $17,717,000, $16,239,000, and $12,648,000, were recorded for the years ended December 31, 2015, 2014, and 2013, respectively. The total income tax benefits recognized in the consolidated statements of income and comprehensive income for share-based compensation arrangements were approximately $7,100,000, $6,500,000, and $5,100,000 for 2015, 2014, and 2013, respectively. There have been no modifications to valuation methodologies or methods during the years ended December 31, 2015, 2014, or 2013. For the years ended December 31, 2015, 2014, and 2013, the fair values for SARs granted were estimated using a Black-Scholes option pricing model with the following weighted-average assumptions, respectively: risk-free interest rate of 2.0%, 2.8%, and 2.0%; dividend yield of 2.6%, 2.8%, and 3.2%; annual historical volatility factor of the expected market price of the Company’s common stock of 19% for each of the three years; an average expected life and estimated turnover based on the historical pattern of existing grants of approximately seven years and 5.4%, respectively. The fair value of RSUs is based on the price of the Company’s stock on the date of grant. The total fair value of shares vested during the years ended December 31, 2015, 2014, and 2013 were $15,200,000, $13,800,000, and $8,100,000, respectively. A summary of the Company’s share-based compensation activity and related information is as follows: 2015 Shares (1) Weighted- Average Exercise Price (2) (In Thousands) Outstanding at beginning of year 3,923 $ 64 Granted 887 92 Exercised (540 ) 54 Forfeited (89 ) 81 Outstanding at end of year (3) 4,181 $ 71 Exercisable at end of year 2,437 $ 61 Shares available for future grants 10,000 (1) Shares include Restricted Stock Units (RSUs). (2) The weighted-average exercise price excludes RSUs. (3) The exercise prices for SARs outstanding as of December 31, 2015 ranged from approximately $42 to $92. The weighted-average remaining contractual life of all SARs outstanding is approximately six years. The weighted-average grant date fair value of SARs granted during the years 2015, 2014, and 2013 was $13.53, $13.77, and $10.14, respectively. The aggregate intrinsic value of SARs and RSUs exercised during the years ended December 31, 2015, 2014, and 2013 was $30,100,000, $65,200,000, and $43,900,000, respectively. In 2015, the Company granted approximately 711,000 SARs and 176,000 RSUs. In 2014, the Company granted approximately 680,000 SARs and 165,000 RSUs. In 2013, the Company granted approximately 727,000 SARs and 172,000 RSUs. A summary of the Company’s nonvested share awards activity is as follows: Nonvested Share Awards (RSUs) Shares Weighted- Average Grant Date Fair Value (In Thousands) Nonvested at January 1, 2015 420 $ 72 Granted 176 92 Vested (123 ) 62 Forfeited (40 ) 76 Nonvested at December 31, 2015 433 $ 82 For the years ended December 31, 2015, 2014, and 2013 approximately $7,000,000, $17,800,000, and $12,900,000, respectively, of excess tax benefits were classified as financing cash inflows. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. As of December 31, 2015, the Company has not provided Federal income taxes on approximately $623,000,000 of undistributed earnings of its foreign subsidiaries. The Company intends to reinvest these earnings to fund expansion in these and other markets outside the U.S. Accordingly, the Company has not provided any provision for income tax expense in excess of foreign jurisdiction income tax requirements relative to such undistributed earnings in the accompanying consolidated financial statements. Due to the complexities associated with the hypothetical calculation to determine residual taxes on the undistributed earnings, including the availability of foreign tax credits, applicability of any additional local withholding tax and other indirect tax consequence that may arise due to the distribution of these earnings, the Company has concluded it is not practicable to determine the unrecognized deferred tax liability related to the undistributed earnings. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes Significant components of the Company’s deferred tax assets and liabilities are as follows: 2015 2014 (In Thousands) Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 318,368 $ 337,792 Pension liability not yet deducted for tax purposes 347,263 341,904 665,631 679,696 Deferred tax liabilities related to: Employee and retiree benefits 249,126 227,926 Inventory 147,199 152,913 Other intangible assets 111,305 105,482 Property, plant, and equipment 58,496 59,600 Other 31,664 30,641 597,790 576,562 Net deferred tax assets 67,841 103,134 Current portion of deferred tax assets — (30,282 ) Noncurrent net deferred tax assets $ 67,841 $ 72,852 The current portion of the deferred tax assets and liabilities are included in prepaid expenses and other current assets and other current liabilities, respectively, in the consolidated balance sheet at December 31, 2014. The components of income before income taxes are as follows: 2015 2014 2013 (In Thousands) United States $ 1,004,919 $ 978,824 $ 850,866 Foreign 118,762 138,915 193,438 Income before income taxes $ 1,123,681 $ 1,117,739 $ 1,044,304 The components of income tax expense are as follows: 2015 2014 2013 (In Thousands) Current: Federal $ 309,403 $ 224,591 $ 303,016 State 45,460 43,513 47,010 Foreign 27,602 84,030 30,941 Deferred 35,544 54,319 (21,622 ) $ 418,009 $ 406,453 $ 359,345 The reasons for the difference between total tax expense and the amount computed by applying the statutory Federal income tax rate to income before income taxes are as follows: 2015 2014 2013 (In Thousands) Statutory rate applied to income $ 393,288 $ 391,209 $ 365,506 Plus state income taxes, net of Federal tax benefit 32,295 32,646 28,823 Earnings in jurisdictions taxed at rates different from the statutory US tax rate (13,684 ) (3,453 ) (37,873 ) Foreign tax credit (264 ) (20,170 ) — Capital loss expiration — — 16,803 Reversal of capital loss valuation allowance — — (16,803 ) Other 6,374 6,221 2,889 $ 418,009 $ 406,453 $ 359,345 The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local tax examinations by tax authorities for years before 2009 or subject to non-United States income tax examinations for years ended prior to 2008. The Company is currently under audit in the United States and Canada. Some audits may conclude in the next twelve months and the unrecognized tax benefits recorded in relation to the audits may differ from actual settlement amounts. It is not possible to estimate the effect, if any, of the amount of such change during the next twelve months to previously recorded uncertain tax positions in connection with the audits. However, the Company does not anticipate total unrecognized tax benefits will significantly change during the year due to the settlement of audits and the expiration of statutes of limitations. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2015 2014 2013 (In Thousands) Balance at beginning of year $ 17,581 $ 47,190 $ 45,455 Additions based on tax positions related to the current year 1,969 3,303 3,238 Additions for tax positions of prior years 61 6,415 3,759 Reductions for tax positions for prior years (3,152 ) (851 ) (1,472 ) Reduction for lapse in statute of limitations (425 ) (481 ) (1,714 ) Settlements (219 ) (37,995 ) (2,076 ) Balance at end of year $ 15,815 $ 17,581 $ 47,190 The amount of gross tax effected unrecognized tax benefits, including interest and penalties, as of December 31, 2015 and 2014 was approximately $17,684,000 and $19,497,000, respectively, of which approximately $9,317,000 and $11,106,000, respectively, if recognized, would affect the effective tax rate. During 2014, the Company settled certain transfer pricing methodologies with tax authorities, and on a consolidated basis, the difference, in related payments and refunds and the amount reflected in the tax reserves, was not material. During the years ended December 31, 2015, 2014, and 2013, the Company paid interest and penalties of approximately $1,051,000, $14,000,000, and $405,000, respectively. The Company had approximately $1,746,000 and $1,916,000 of accrued interest and penalties at December 31, 2015 and 2014, respectively. The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 7. Employee Benefit Plans The Company’s defined benefit pension plans cover employees in the U.S. and Canada who meet eligibility requirements. The plan covering U.S. employees is noncontributory. As of December 31, 2013, the Company implemented a hard freeze for the U.S. qualified defined benefit plan. Therefore, no further benefit accruals were provided after that date for additional credited service or earnings. In addition, all participants who are employed after December 31, 2013 became fully vested as of December 31, 2013. The Canadian plan is contributory and benefits are based on career average compensation. The Company’s funding policy is to contribute an amount equal to the minimum required contribution under applicable pension legislation. The Company may increase its contribution above the minimum, if appropriate to its tax and cash position and the plans’ funded position. The Company also sponsors supplemental retirement plans covering employees in the U.S. and Canada. The Company uses a measurement date of December 31 for its pension plans. Several assumptions are used to determine the benefit obligations, plan assets, and net periodic (income) cost. The discount rate for the pension plans is calculated using a bond matching approach to select specific bonds that would satisfy the projected benefit payments. The bond matching approach reflects the process that would be used to settle the pension obligations. The expected return on plan assets is based on a calculated market-related value of plan assets, where gains and losses on plan assets are amortized over a five year period and accumulate in other comprehensive income. Other non-investment unrecognized gains and losses are amortized in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. The unrecognized gains and losses in excess of the corridor criteria are amortized over the average future lifetime or service of plan participants, depending on the plan. These assumptions are updated at each annual measurement date. Changes in benefit obligations for the years ended December 31, 2015 and 2014 were: 2015 2014 (In Thousands) Changes in benefit obligation Benefit obligation at beginning of year $ 2,352,094 $ 2,035,185 Service cost 8,562 7,824 Interest cost 98,088 102,465 Plan participants’ contributions 2,838 3,526 Actuarial (gain) loss (139,573 ) 346,875 Foreign currency exchange rate changes (35,082 ) (18,697 ) Gross benefits paid (87,571 ) (125,084 ) Benefit obligation at end of year $ 2,199,356 $ 2,352,094 The actuarial loss incurred in the year ended December 31, 2014 is primarily attributable to a lower discount rate, as well as changes in the mortality assumptions. The benefit obligations for the Company’s U.S. pension plans included in the above were $2,012,935,000 and $2,135,827,000 at December 31, 2015 and 2014, respectively. The total accumulated benefit obligation for the Company’s defined benefit pension plans in the U.S. and Canada was approximately $2,179,626,000 and $2,328,489,000 at December 31, 2015 and 2014, respectively. The assumptions used to measure the pension benefit obligations for the plans at December 31, 2015 and 2014, were: 2015 2014 Weighted-average discount rate 4.82 % 4.26 % Rate of increase in future compensation levels 3.12 % 3.07 % Changes in plan assets for the years ended December 31, 2015 and 2014 were: 2015 2014 (In Thousands) Changes in plan assets Fair value of plan assets at beginning of year $ 2,021,837 $ 1,933,063 Actual return on plan assets (45,529 ) 174,652 Foreign currency exchange rate changes (33,382 ) (17,616 ) Employer contributions 54,543 53,296 Plan participants’ contributions 2,838 3,526 Benefits paid (87,571 ) (125,084 ) Fair value of plan assets at end of year $ 1,912,736 $ 2,021,837 The fair values of plan assets for the Company’s U.S. pension plans included in the above were $1,731,368,000 and $1,819,747,000 at December 31, 2015 and 2014, respectively. The asset allocations for the Company’s funded pension plans at December 31, 2015 and 2014, and the target allocation for 2016, by asset category were: Target Allocation 2016 Percentage of Plan Assets at December 31 2015 2014 Asset Category Equity securities 71 % 69 % 70 % Debt securities 29 % 31 % 30 % 100 % 100 % 100 % The Company’s benefit plan committees in the U.S. and Canada establish investment policies and strategies and regularly monitor the performance of the funds. The pension plan strategy implemented by the Company’s management is to achieve long-term objectives and invest the pension assets in accordance with the applicable pension legislation in the U.S. and Canada, as well as fiduciary standards. The long-term primary investment objectives for the pension plans are to provide for a reasonable amount of long-term growth of capital, without undue exposure to risk, protect the assets from erosion of purchasing power, and provide investment results that meet or exceed the pension plans’ actuarially assumed long-term rates of return. The Company’s investment strategy with respect to pension plan assets is to generate a return in excess of the passive portfolio benchmark (49% S&P 500 Index, 5% Russell Mid Cap Index, 8% Russell 2000 Index, 5% MSCI EAFE Index, 5% DJ Global Moderate Index, and 28% BarCap U.S. Govt/Credit). The fair values of the plan assets as of December 31, 2015 and 2014, by asset category, are shown in the tables below. Various inputs are considered when determining the value of the Company’s pension plan assets. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Level 1 represents observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 represents other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.). Level 3 represents significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments). The valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded on the last day of the calendar plan year. Debt securities including corporate bonds, U.S. Government securities, and asset-backed securities are valued using price evaluations reflecting the bid and/or ask sides of the market for an investment as of the last day of the calendar plan year. 2015 Total Quoted in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In Thousands) Equity Securities Common stocks — mutual funds — equity $ 349,852 $ 349,852 $ — $ — Genuine Parts Company common stock 173,363 173,363 — — Other stocks 793,229 792,624 — 605 Debt Securities Short-term investments 46,195 46,195 — — Cash and equivalents 2,978 2,978 — — Government bonds 193,436 109,559 83,877 — Corporate bonds 172,119 — 172,119 — Asset-backed and mortgage–backed securities 27,510 — 27,510 — Convertible securities 434 — 434 — Other-international 21,137 20,785 352 — Municipal bonds 5,857 — 5,857 — Mutual funds — fixed income 123,895 — 123,895 — Other Cash surrender value of life insurance policies 2,731 — — 2,731 Total $ 1,912,736 $ 1,495,356 $ 414,044 $ 3,336 2014 Total Quoted in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In Thousands) Equity Securities Common stocks — mutual funds — equity $ 366,716 $ 366,716 $ — $ — Genuine Parts Company common stock 215,477 215,477 — — Other stocks 822,782 822,782 — — Debt Securities Short-term investments 41,882 41,882 — — Cash and equivalents 8,921 8,921 — — Government bonds 192,413 96,480 95,933 — Corporate bonds 178,214 — 178,214 — Asset-backed and mortgage–backed securities 27,756 — 27,756 — Convertible securities 633 — 633 — Other-international 25,137 21,815 3,322 — Municipal bonds 6,435 — 6,435 — Mutual funds — fixed income 132,752 — 132,752 — Other Options and futures 7 7 — — Cash surrender value of life insurance policies 2,712 — — 2,712 Total $ 2,021,837 $ 1,574,080 $ 445,045 $ 2,712 Equity securities include Genuine Parts Company common stock in the amounts of $173,363,000 (9% of total plan assets) and $215,477,000 (11% of total plan assets) at December 31, 2015 and 2014, respectively. Dividend payments received by the plan on Company stock totaled approximately $4,965,000 and $4,650,000 in 2015 and 2014, respectively. Fees paid during the year for services rendered by parties in interest were based on customary and reasonable rates for such services. The changes in the fair value measurement of plan assets using significant unobservable inputs (Level 3) during 2015 and 2014 were not material. Based on the investment policy for the pension plans, as well as an asset study that was performed based on the Company’s asset allocations and future expectations, the Company’s expected rate of return on plan assets for measuring 2016 pension cost or income is 7.83% for the plans. The asset study forecasted expected rates of return for the approximate duration of the Company’s benefit obligations, using capital market data and historical relationships. The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets at December 31: 2015 2014 (In Thousands) Other long-term asset $ 3,336 $ 4,247 Other current liability (7,432 ) (6,740 ) Pension and other post-retirement liabilities (282,524 ) (327,764 ) $ (286,620 ) $ (330,257 ) Amounts recognized in accumulated other comprehensive loss consist of: 2015 2014 (In Thousands) Net actuarial loss $ 882,464 $ 875,788 Prior service credit (1,814 ) (2,436 ) $ 880,650 $ 873,352 The following table reflects the total benefits expected to be paid from the pension plans’ or the Company’s assets. Of the pension benefits expected to be paid in 2016, approximately $7,382,000 is expected to be paid from employer assets. Expected employer contributions below reflect amounts expected to be contributed to funded plans. Information about the expected cash flows for the pension plans follows (in thousands): Employer contribution 2016 (expected) $ 49,000 Expected benefit payments: 2016 $ 93,000 2017 102,000 2018 109,000 2019 116,000 2020 124,000 2021 through 2025 703,000 Net periodic benefit (income) cost included the following components: 2015 2014 2013 (In Thousands) Service cost $ 8,562 $ 7,824 $ 19,083 Interest cost 98,088 102,465 89,408 Expected return on plan assets (150,130 ) (144,746 ) (133,816 ) Amortization of prior service credit (565 ) (1,890 ) (7,538 ) Amortization of actuarial loss 38,197 26,791 83,934 Net periodic benefit (income) cost $ (5,848 ) $ (9,556 ) $ 51,071 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows: 2015 2014 2013 (In Thousands) Current year actuarial loss (gain) $ 44,930 $ 312,011 $ (368,587 ) Recognition of actuarial loss (38,197 ) (26,791 ) (83,934 ) Recognition of prior service credit 565 638 7,538 Total recognized in other comprehensive income (loss) $ 7,298 $ 285,858 $ (444,983 ) Total recognized in net periodic benefit (income) cost and other comprehensive income (loss) $ 1,450 $ 276,303 $ (393,912 ) The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 are as follows in thousands: Actuarial loss $ 31,146 Prior service credit (430 ) Total $ 30,716 The assumptions used in measuring the net periodic benefit (income) cost for the plans follow: 2015 2014 2013 Weighted average discount rate 4.26 % 5.10 % 4.17 % Rate of increase in future compensation levels 3.07 % 3.04 % 3.30 % Expected long-term rate of return on plan assets 7.85 % 7.85 % 7.83 % Prior to 2014, the Company had two defined contribution plans that covered substantially all of its domestic employees. The Company’s matching contributions were determined based on the employee’s participation in the U.S. pension plan. Prior to 2014, U.S. pension plan participants who continued earning credited service after 2008 received a matching contribution of 20% of the first 6% of the employee’s salary. Other employees received a matching contribution of 100% of the first 5% of the employee’s salary. The two plans were merged effective January 1, 2014. Beginning in 2014, all employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $55,066,000 in 2015, $53,351,000 in 2014, and $43,236,000 in 2013. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Guarantees | 8. 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 independent. 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 entity’s 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 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 December 31, 2015, the Company was in compliance with all such covenants. At December 31, 2015, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $332,632,000. 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 recognized certain assets and liabilities amounting to $35,000,000 and $29,000,000 for the guarantees related to the independents’ and affiliates’ borrowings at December 31, 2015 and 2014, respectively. These assets and liabilities are included in other assets and other long-term liabilities in the consolidated balance sheets. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 9. Acquisitions During 2015, the Company acquired one company in the Electrical/Electronic Materials Group, three companies in the Office Products Group, four companies in the Industrial Group, and five store groups in the Automotive Parts Group for approximately $120,000,000, net of cash acquired. During 2014, the Company acquired two companies each in the Automotive Group, Office Products Group, and Electrical/Electronic Materials Group and one company in the Industrial Group for approximately $260,000,000, net of cash acquired. During 2013, the Company acquired one company each in the Automotive Group (including GPC Asia Pacific), Industrial Group, and Electrical/Electronic Materials Group for approximately $650,000,000, net of cash acquired. For each acquisition, 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 Company’s consolidated statements of income and comprehensive income beginning on their respective acquisition dates. The Company recorded approximately $90,000,000, $200,000,000 and $950,000,000 of goodwill and other intangible assets associated with the 2015, 2014, and 2013 acquisitions, respectively. For the 2015 acquisitions, other intangible assets acquired consisted of customer relationships of $39,000,000 with weighted average amortization lives of 15 years. For the 2014 acquisitions, other intangible assets acquired consisted of customer relationships of $82,000,000 and trademarks of $28,000,000 with weighted average amortization lives of 18 and 40 years, respectively. For the 2013 acquisitions, other intangible assets acquired consisted of customer relationships of $235,000,000, trademarks of $141,000,000, and non-competition agreements of $4,000,000 with weighted average amortization lives of 15, 40, and 1 years, respectively. Additional disclosure on the 2013 automotive acquisition of GPC Asia Pacific is provided below. GPC Asia Pacific The Company acquired a 30% investment in GPC Asia Pacific, formerly known as the Exego Group, for approximately $166,000,000 effective January 1, 2012. On April 1, 2013, the Company acquired the remaining 70% interest in GPC Asia Pacific for approximately $590,000,000, net of cash acquired of $70,000,000, and the assumption of approximately $230,000,000 in debt. The acquisition was financed using a combination of cash on hand and borrowings under existing credit facilities. GPC Asia Pacific, which is headquartered in Melbourne, Australia, is a leading aftermarket distributor of automotive replacement parts and accessories in Australasia, with annual revenues of approximately $1,000,000,000 and a company-owned store footprint of approximately 500 locations across Australia and New Zealand. This acquisition provides an opportunity for the Company to participate in the ongoing and significant growth opportunities in the Australasian aftermarket. The Company recognized certain one-time positive purchase accounting pre-tax adjustments of approximately $33,000,000, or $0.21 net of taxes on a per share diluted basis, as a result of the acquisition. The net one-time purchase accounting adjustments consisted of a gain of approximately $59,000,000 related to remeasuring the 30% investment in GPC Asia Pacific held before the business combination to fair value, the post-closing sale of acquired inventory written up to fair value of $21,000,000 as part of the purchase price allocation, and certain negative adjustments of approximately $5,000,000. Prior to the 70% acquisition, the Company accounted for the 30% investment under the equity method of accounting. The acquisition-date fair value of the 30% investment was approximately $234,000,000 and is included in the measurement of the consideration transferred. The difference between the acquisition-date fair value and the carrying amount of the equity method investment resulted in the recognition of a gain of approximately $59,000,000 on the acquisition date. The acquisition-date fair value was determined using a market and income approach with the assistance of a third party valuation firm. Both approaches were given equal weight in the conclusion of fair value, which the Company believes is a reasonable approach. For the market approach, the Company utilized companies that are comparable in line of business, size, operating performance, and financial condition to GPC Asia Pacific to develop a market multiple. For the income approach, the Company utilized GPC Asia Pacific’s projected cash flows, an appropriate discount rate, and an expected long-term growth rate. For both approaches, the Company applied discounts for lack of control and lack of marketability. As part of the allocation of purchase price described below, acquired inventory was written up to fair value, which was approximately $21,000,000 above the cost of the acquired inventory. Based on the inventory turn of the acquired inventories, the entire write-up was recognized in cost of goods sold during 2013. The net $54,000,000 of one-time gain and other adjustments are included in the line item selling, administrative and other expenses and the acquired inventory adjustment of $21,000,000 is included in cost of goods sold in the consolidated statements of income and comprehensive income for the year ended December 31, 2013. The acquisition date fair value of the consideration transferred totaled approximately $824,000,000, net of cash acquired of $70,000,000, which consisted of the following: April 1, 2013 (In Thousands) Cash $ 590,000 Fair value of 30% investment held prior to business combination 234,000 Total $ 824,000 The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. April 1, 2013 (In Thousands) Trade accounts receivable $ 94,000 Merchandise inventory 306,000 Prepaid expenses and other current assets 31,000 Property and equipment 59,000 Intangible assets 347,000 Other assets 24,000 Total identifiable assets acquired 861,000 Current liabilities (224,000 ) Long-term debt (230,000 ) Deferred tax liabilities and other (125,000 ) Total liabilities assumed (579,000 ) Net identifiable assets acquired 282,000 Goodwill 542,000 Net assets acquired $ 824,000 The acquired intangible assets of approximately $347,000,000 were assigned to customer relationships of $202,000,000, trademarks of $141,000,000, and non-compete agreements of $4,000,000, with weighted average amortization lives of 16, 40, and 1 year, respectively, for a total weighted average amortization life of 26 years. The goodwill recognized as part of the acquisition is not tax deductible and has been assigned to the automotive segment. The goodwill is attributable primarily to expected synergies and the assembled workforce of GPC Asia Pacific. The amounts of net sales and earnings of GPC Asia Pacific included in the Company’s consolidated statements of income and comprehensive income from April 1, 2013 to December 31, 2013 were approximately $839,000,000 in net sales and net income of $0.43 on a per share diluted basis, respectively. The unaudited pro forma consolidated statements of income and comprehensive income of the Company as if GPC Asia Pacific had been included in the consolidated results of the Company for the year ended December 31, 2013 would be estimated at $14,400,000,000 in net sales and net income of $4.42 on a per share diluted basis. The pro forma information is not necessarily indicative of the results of operations that we would have reported had the transaction actually occurred at the beginning of this period, nor is it necessarily indicative of future results. The adjustments to the pro forma amounts include, but are not limited to, applying the Company’s accounting policies, amortization related to fair value adjustments to intangible assets, one-time purchase accounting adjustments, interest expense on acquisition related debt, and any associated tax effects. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Data | 10. Segment Data The Company’s reportable segments consist of automotive, industrial, office products, and electrical/electronic materials. Within the reportable segments, certain of the Company’s operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. The Company’s automotive segment distributes replacement parts (other than body parts) for substantially all makes and models of automobiles, trucks, and other vehicles. The Company’s industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components, and related parts and supplies. The Company’s office products segment distributes a wide variety of office products, computer supplies, office furniture, and business electronics. The Company’s electrical/electronic materials segment distributes a wide variety of electrical/electronic materials, including insulating and conductive materials for use in electronic and electrical apparatus. Inter-segment sales are not significant. Operating profit for each industry segment is calculated as net sales less operating expenses excluding general corporate expenses, interest expense, and equity in income from investees, amortization, and noncontrolling interests. Approximately $118,800,000, $138,900,000 and $193,400,000 of income before income taxes was generated in jurisdictions outside the United States for the years ended December 31, 2015, 2014, and 2013, respectively. Net sales and net property, plant and equipment by country relate directly to the Company’s operations in the respective country. Corporate assets are principally cash and cash equivalents and headquarters’ facilities and equipment. For management purposes, 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 that are reported as a component of net sales in the Company’s consolidated statements of income and comprehensive income. 2015 2014 2013 2012 2011 (In Thousands) Net sales: Automotive $ 8,015,098 $ 8,096,877 $ 7,489,186 $ 6,320,882 $ 6,061,424 Industrial 4,646,689 4,771,080 4,429,976 4,453,574 4,173,574 Office products 1,937,629 1,802,754 1,638,618 1,686,690 1,689,368 Electrical/electronic materials 750,770 739,119 568,872 582,820 557,537 Other (70,142 ) (68,183 ) (48,809 ) (30,098 ) (23,026 ) Total net sales $ 15,280,044 $ 15,341,647 $ 14,077,843 $ 13,013,868 $ 12,458,877 Operating profit: Automotive $ 729,152 $ 700,386 $ 641,492 $ 540,678 $ 467,806 Industrial 339,180 370,043 320,720 352,119 337,628 Office products 140,866 133,727 122,492 134,441 134,124 Electrical/electronic materials 70,151 64,884 47,584 50,910 40,663 Total operating profit 1,279,349 1,269,040 1,132,288 1,078,148 980,221 Interest expense, net (20,354 ) (24,192 ) (24,330 ) (19,619 ) (24,608 ) Corporate expense (100,436 ) (90,242 ) (34,667 ) (26,606 ) (58,033 ) Intangible asset amortization (34,878 ) (36,867 ) (28,987 ) (12,991 ) (6,774 ) Income before income taxes $ 1,123,681 $ 1,117,739 $ 1,044,304 $ 1,018,932 $ 890,806 Assets: Automotive $ 4,293,290 $ 4,275,298 $ 4,009,244 $ 3,411,252 $ 3,218,931 Industrial 1,143,952 1,224,735 1,162,697 1,130,877 1,100,024 Office products 831,546 835,592 708,944 731,564 700,720 Electrical/electronic materials 191,866 196,400 156,780 137,237 129,933 Corporate 322,323 327,623 353,276 898,292 773,391 Goodwill and other intangible assets 1,361,794 1,386,590 1,289,356 497,839 279,775 Total assets $ 8,144,771 $ 8,246,238 $ 7,680,297 $ 6,807,061 $ 6,202,774 2015 2014 2013 2012 2011 (In Thousands) Depreciation and amortization: Automotive $ 70,112 $ 77,645 $ 76,238 $ 60,630 $ 60,252 Industrial 9,960 9,906 8,751 8,307 7,495 Office products 10,922 10,728 10,166 10,837 9,999 Electrical/electronic materials 2,933 2,658 1,904 1,733 1,554 Corporate 12,870 10,509 7,911 3,885 2,862 Intangible asset amortization 34,878 36,867 28,987 12,991 6,774 Total depreciation and amortization $ 141,675 $ 148,313 $ 133,957 $ 98,383 $ 88,936 Capital expenditures: Automotive $ 77,504 $ 78,537 $ 97,735 $ 67,482 $ 61,795 Industrial 13,998 12,442 8,808 13,015 9,851 Office products 12,323 11,135 9,297 16,013 22,036 Electrical/electronic materials 2,824 3,003 1,730 1,029 1,762 Corporate 2,895 2,564 6,493 4,448 8,025 Total capital expenditures $ 109,544 $ 107,681 $ 124,063 $ 101,987 $ 103,469 Net sales: United States $ 12,843,078 $ 12,565,329 $ 11,594,713 $ 11,299,291 $ 10,791,303 Canada 1,395,695 1,583,075 1,560,799 1,616,921 1,571,733 Australasia 992,064 1,133,620 839,353 — — Mexico 119,349 127,806 131,787 127,754 118,867 Other (70,142 ) (68,183 ) (48,809 ) (30,098 ) (23,026 ) Total net sales $ 15,280,044 $ 15,341,647 $ 14,077,843 $ 13,013,868 $ 12,458,877 Net property, plant, and equipment: United States $ 495,073 $ 495,452 $ 503,882 $ 466,473 $ 411,193 Canada 79,023 98,939 99,135 93,496 84,210 Australasia 65,289 65,707 60,614 — — Mexico 8,832 10,004 6,430 6,396 4,801 Total net property, plant, and equipment $ 648,217 $ 670,102 $ 670,061 $ 566,365 $ 500,204 |
Financial Statement Schedule II
Financial Statement Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Financial Statement Schedule II - Valuation and Qualifying Accounts | Financial Statement Schedule II — Valuation and Qualifying Accounts Genuine Parts Company and Subsidiaries Balance at Beginning of Period Charged to Costs and Expenses Deductions(1) Balance at End of Period Year ended December 31, 2013: Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts $ 19,180,190 $ 8,691,000 $ (13,448,190 ) $ 14,423,000 Year ended December 31, 2014: Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts $ 14,423,000 $ 7,192,000 $ (9,779,000 ) $ 11,836,000 Year ended December 31, 2015: Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts $ 11,836,000 $ 12,373,000 $ (13,516,000 ) $ 10,693,000 (1) Doubtful accounts written off, net of recoveries. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Business | Business Genuine Parts Company and all of its majority-owned subsidiaries (the Company) is a distributor of automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials. The Company serves a diverse customer base through approximately 2,650 locations in North America and Australasia and, therefore, has limited exposure from credit losses to any particular customer, region, or industry segment. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company has evaluated subsequent events through the date the financial statements were issued. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include all of the accounts of the Company. The net income attributable to noncontrolling interests is not material to the Company’s consolidated net income. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and the differences could be material. |
Revenue Recognition | Revenue Recognition The Company records revenue when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the Company’s price to the customer is fixed and determinable and collectability is reasonably assured. Delivery is not considered to have occurred until the customer assumes the risks and rewards of ownership. |
Foreign Currency Translation | Foreign Currency Translation The consolidated balance sheets and statements of income and comprehensive income of the Company’s foreign subsidiaries have been translated into U.S. dollars at the current and average exchange rates, respectively. The foreign currency translation adjustment is included as a component of accumulated other comprehensive loss. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. |
Trade Accounts Receivable and the Allowance for Doubtful Accounts | Trade Accounts Receivable and the Allowance for Doubtful Accounts The Company evaluates the collectability of trade accounts receivable based on a combination of factors. The Company estimates an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience and periodically adjusts this estimate when the Company becomes aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. For the years ended December 31, 2015, 2014, and 2013, the Company recorded provisions for doubtful accounts of approximately $12,373,000, $7,192,000, and $8,691,000, respectively. At December 31, 2015 and 2014, the allowance for doubtful accounts was approximately $10,693,000 and $11,836,000, respectively. |
Merchandise Inventories, Including Consideration Received From Vendors | Merchandise Inventories, Including Consideration Received From Vendors Merchandise inventories are valued at the lower of cost or market. Cost is determined by the last-in, first-out (LIFO) method for a majority of automotive parts, electrical/electronic materials, and industrial parts, and by the first-in, first-out (FIFO) method for office products and certain other inventories. If the FIFO method had been used for all inventories, cost would have been approximately $438,510,000 and $434,790,000 higher than reported at December 31, 2015 and 2014, respectively. During 2014 and 2013, reductions in inventory levels in automotive parts inventories (2013) and industrial parts inventories (2014 and 2013) resulted in liquidations of LIFO inventory layers. The effect of the LIFO liquidations in 2014 and 2013 was to reduce cost of goods sold by approximately $8,000,000 and $5,000,000, respectively. The Company identifies slow moving or obsolete inventories and estimates appropriate provisions related thereto. Historically, these losses have not been significant as the vast majority of the Company’s inventories are not highly susceptible to obsolescence and are eligible for return under various vendor return programs. While the Company has no reason to believe its inventory return privileges will be discontinued in the future, its risk of loss associated with obsolete or slow moving inventories would increase if such were to occur. The Company enters into agreements at the beginning of each year with many of its vendors that provide for inventory purchase incentives. Generally, the Company earns inventory purchase incentives upon achieving specified volume purchasing levels or other criteria. The Company accrues for the receipt of these incentives as part of its inventory cost based on cumulative purchases of inventory to date and projected inventory purchases through the end of the year. While management believes the Company will continue to receive consideration from vendors in 2016 and beyond, there can be no assurance that vendors will continue to provide comparable amounts of incentives in the future. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of prepaid expenses, amounts due from vendors, and income taxes receivable. |
Goodwill | Goodwill The Company reviews its goodwill annually in the fourth quarter, or sooner if circumstances indicate that the carrying amount may exceed fair value. The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment, which is referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. The present value of future cash flows approach was used to determine any potential impairment. The Company determined that goodwill was not impaired and, therefore, no impairments were recognized for the years ended December 31, 2015, 2014, and 2013. |
Other Assets | Other Assets Other assets are comprised of the following: December 31 2015 2014 (In Thousands) Retirement benefit assets $ 3,336 $ 4,247 Deferred compensation benefits 28,488 27,828 Investments 28,351 29,139 Cash surrender value of life insurance policies 105,213 105,227 Customer sales returns inventories 72,814 67,400 Guarantees related to borrowings 35,000 29,000 Other long-term prepayments and receivables 187,716 188,849 Total other assets $ 460,918 $ 451,690 The guarantees related to borrowings are discussed further in the guarantees footnote. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Depreciation and amortization is primarily determined on a straight-line basis over the following estimated useful life of each asset: buildings and improvements, 10 to 40 years; machinery and equipment, 5 to 15 years. |
Long-Lived Assets Other Than Goodwill | Long-Lived Assets Other Than Goodwill The Company assesses its long-lived assets other than goodwill for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. Impairment losses, if any, are measured based upon the difference between the carrying amount and the fair value of the assets. |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities are comprised of the following: December 31 2015 2014 (In Thousands) Post-employment and other benefit/retirement liabilities $ 54,034 $ 57,754 Insurance liabilities 33,979 48,569 Other lease obligations 37,642 40,040 Other taxes payable 15,495 18,947 Customer deposits 85,552 81,496 Guarantees related to borrowings 35,000 29,000 Other 198,254 171,943 Total other long-term liabilities $ 459,956 $ 447,749 The guarantees related to borrowings are discussed further in the guarantees footnote. |
Self-Insurance | Self-Insurance The Company is self-insured for the majority of group health insurance costs. A reserve for claims incurred but not reported is developed by analyzing historical claims data provided by the Company’s claims administrators. These reserves are included in accrued expenses in the accompanying consolidated balance sheets as the expenses are expected to be paid within one year. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is comprised of the following: December 31 2015 2014 (In Thousands) Foreign currency translation $ (394,984 ) $ (186,998 ) Unrecognized net actuarial loss, net of tax (540,018 ) (538,614 ) Unrecognized prior service credit, net of tax 4,384 5,401 Total accumulated other comprehensive loss $ (930,618 ) $ (720,211 ) The following table presents the changes in accumulated other comprehensive loss by component for the years ended on December 31, 2015 and 2014: Changes in Accumulated Other Comprehensive Loss by Component Pension Benefits Other Post- Retirement Benefits Foreign Currency Translation Total (In Thousands) Beginning balance, January 1, 2014 $ (359,079 ) $ (957 ) $ (37,619 ) $ (397,655 ) Other comprehensive loss before reclassifications, net of tax (193,182 ) (39 ) (149,379 ) (342,600 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 20,192 (148 ) — 20,044 Net current period other comprehensive loss (172,990 ) (187 ) (149,379 ) (322,556 ) Ending balance, December 31, 2014 (532,069 ) (1,144 ) (186,998 ) (720,211 ) Other comprehensive loss before reclassifications, net of tax (25,558 ) (111 ) (207,986 ) (233,655 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 23,412 (164 ) — 23,248 Net current period other comprehensive loss (2,146 ) (275 ) (207,986 ) (210,407 ) Ending balance, December 31, 2015 $ (534,215 ) $ (1,419 ) $ (394,984 ) $ (930,618 ) The accumulated other comprehensive loss components related to the pension benefits are included in the computation of net periodic benefit (income) cost in the employee benefit plans footnote. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, trade accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective fair values based on the short-term nature of these instruments. At December 31, 2015 and 2014, the fair value of fixed rate debt was approximately $501,000,000 and $505,000,000, 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. At December 31, 2015 and 2014, the carrying value of fixed rate debt was $500,000,000 and is included in current portion of debt and long-term debt in the consolidated balance sheets. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are classified as selling, administrative and other expenses in the accompanying consolidated statements of income and comprehensive income and totaled approximately $270,000,000, $270,000,000, and $250,000,000, for the years ended December 31, 2015, 2014, and 2013, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled $75,000,000, $71,300,000, and $57,900,000 in the years ended December 31, 2015, 2014, and 2013, respectively. |
Accounting for Legal Costs | Accounting for Legal Costs The Company’s legal costs expected to be incurred in connection with loss contingencies are expensed as such costs are incurred. |
Share-Based Compensation | Share-Based Compensation 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. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the year. The computation of diluted net income per common share includes the dilutive effect of stock options, stock appreciation rights and nonvested restricted stock awards options. Options to purchase approximately 1,280,000, 610,000, and 630,000 shares of common stock ranging from $77 — $92 per share were outstanding at December 31, 2015, 2014, and 2013, 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 prices of common stock in each respective year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In February 2015, the FASB issued ASU 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes |
Share-based Compensation, Option and Incentive Plans | For the years ended December 31, 2015, 2014, and 2013, the fair values for SARs granted were estimated using a Black-Scholes option pricing model with the following weighted-average assumptions, respectively: risk-free interest rate of 2.0%, 2.8%, and 2.0%; dividend yield of 2.6%, 2.8%, and 3.2%; annual historical volatility factor of the expected market price of the Company’s common stock of 19% for each of the three years; an average expected life and estimated turnover based on the historical pattern of existing grants of approximately seven years and 5.4%, respectively. The fair value of RSUs is based on the price of the Company’s stock on the date of grant. The total fair value of shares vested during the years ended December 31, 2015, 2014, and 2013 were $15,200,000, $13,800,000, and $8,100,000, respectively. |
Unremitted Earnings in Foreign Investment | The Company intends to reinvest these earnings to fund expansion in these and other markets outside the U.S. Accordingly, the Company has not provided any provision for income tax expense in excess of foreign jurisdiction income tax requirements relative to such undistributed earnings in the accompanying consolidated financial statements. Due to the complexities associated with the hypothetical calculation to determine residual taxes on the undistributed earnings, including the availability of foreign tax credits, applicability of any additional local withholding tax and other indirect tax consequence that may arise due to the distribution of these earnings, the Company has concluded it is not practicable to determine the unrecognized deferred tax liability related to the undistributed earnings. |
Pension and Other Postretirement Plans | The Company’s funding policy is to contribute an amount equal to the minimum required contribution under applicable pension legislation. The Company may increase its contribution above the minimum, if appropriate to its tax and cash position and the plans’ funded position. The Company also sponsors supplemental retirement plans covering employees in the U.S. and Canada. The Company uses a measurement date of December 31 for its pension plans. Several assumptions are used to determine the benefit obligations, plan assets, and net periodic (income) cost. The discount rate for the pension plans is calculated using a bond matching approach to select specific bonds that would satisfy the projected benefit payments. The bond matching approach reflects the process that would be used to settle the pension obligations. The expected return on plan assets is based on a calculated market-related value of plan assets, where gains and losses on plan assets are amortized over a five year period and accumulate in other comprehensive income. Other non-investment unrecognized gains and losses are amortized in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. The unrecognized gains and losses in excess of the corridor criteria are amortized over the average future lifetime or service of plan participants, depending on the plan. These assumptions are updated at each annual measurement date. The Company’s benefit plan committees in the U.S. and Canada establish investment policies and strategies and regularly monitor the performance of the funds. The pension plan strategy implemented by the Company’s management is to achieve long-term objectives and invest the pension assets in accordance with the applicable pension legislation in the U.S. and Canada, as well as fiduciary standards. The long-term primary investment objectives for the pension plans are to provide for a reasonable amount of long-term growth of capital, without undue exposure to risk, protect the assets from erosion of purchasing power, and provide investment results that meet or exceed the pension plans’ actuarially assumed long-term rates of return. The Company’s investment strategy with respect to pension plan assets is to generate a return in excess of the passive portfolio benchmark (49% S&P 500 Index, 5% Russell Mid Cap Index, 8% Russell 2000 Index, 5% MSCI EAFE Index, 5% DJ Global Moderate Index, and 28% BarCap U.S. Govt/Credit). The fair values of the plan assets as of December 31, 2015 and 2014, by asset category, are shown in the tables below. Various inputs are considered when determining the value of the Company’s pension plan assets. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Level 1 represents observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 represents other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.). Level 3 represents significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments). The valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded on the last day of the calendar plan year. Debt securities including corporate bonds, U.S. Government securities, and asset-backed securities are valued using price evaluations reflecting the bid and/or ask sides of the market for an investment as of the last day of the calendar plan year. Based on the investment policy for the pension plans, as well as an asset study that was performed based on the Company’s asset allocations and future expectations, the Company’s expected rate of return on plan assets for measuring 2016 pension cost or income is 7.83% for the plans. The asset study forecasted expected rates of return for the approximate duration of the Company’s benefit obligations, using capital market data and historical relationships. Prior to 2014, the Company had two defined contribution plans that covered substantially all of its domestic employees. The Company’s matching contributions were determined based on the employee’s participation in the U.S. pension plan. Prior to 2014, U.S. pension plan participants who continued earning credited service after 2008 received a matching contribution of 20% of the first 6% of the employee’s salary. Other employees received a matching contribution of 100% of the first 5% of the employee’s salary. The two plans were merged effective January 1, 2014. Beginning in 2014, all employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $55,066,000 in 2015, $53,351,000 in 2014, and $43,236,000 in 2013. |
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 a controlling financial interest through ownership of a majority voting interest in the independent. 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 entity’s 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 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 December 31, 2015, the Company was in compliance with all such covenants. At December 31, 2015, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $332,632,000. 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. |
Business Combinations | For each acquisition, 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 Company’s consolidated statements of income and comprehensive income beginning on their respective acquisition dates. |
Segment Reporting | The Company’s reportable segments consist of automotive, industrial, office products, and electrical/electronic materials. Within the reportable segments, certain of the Company’s operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Components of Other Assets | Other assets are comprised of the following: December 31 2015 2014 (In Thousands) Retirement benefit assets $ 3,336 $ 4,247 Deferred compensation benefits 28,488 27,828 Investments 28,351 29,139 Cash surrender value of life insurance policies 105,213 105,227 Customer sales returns inventories 72,814 67,400 Guarantees related to borrowings 35,000 29,000 Other long-term prepayments and receivables 187,716 188,849 Total other assets $ 460,918 $ 451,690 |
Components of Other Long-Term Liabilities | Other long-term liabilities are comprised of the following: December 31 2015 2014 (In Thousands) Post-employment and other benefit/retirement liabilities $ 54,034 $ 57,754 Insurance liabilities 33,979 48,569 Other lease obligations 37,642 40,040 Other taxes payable 15,495 18,947 Customer deposits 85,552 81,496 Guarantees related to borrowings 35,000 29,000 Other 198,254 171,943 Total other long-term liabilities $ 459,956 $ 447,749 |
Components of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is comprised of the following: December 31 2015 2014 (In Thousands) Foreign currency translation $ (394,984 ) $ (186,998 ) Unrecognized net actuarial loss, net of tax (540,018 ) (538,614 ) Unrecognized prior service credit, net of tax 4,384 5,401 Total accumulated other comprehensive loss $ (930,618 ) $ (720,211 ) |
Changes in Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss by component for the years ended on December 31, 2015 and 2014: Changes in Accumulated Other Comprehensive Loss by Component Pension Benefits Other Post- Retirement Benefits Foreign Currency Translation Total (In Thousands) Beginning balance, January 1, 2014 $ (359,079 ) $ (957 ) $ (37,619 ) $ (397,655 ) Other comprehensive loss before reclassifications, net of tax (193,182 ) (39 ) (149,379 ) (342,600 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 20,192 (148 ) — 20,044 Net current period other comprehensive loss (172,990 ) (187 ) (149,379 ) (322,556 ) Ending balance, December 31, 2014 (532,069 ) (1,144 ) (186,998 ) (720,211 ) Other comprehensive loss before reclassifications, net of tax (25,558 ) (111 ) (207,986 ) (233,655 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 23,412 (164 ) — 23,248 Net current period other comprehensive loss (2,146 ) (275 ) (207,986 ) (210,407 ) Ending balance, December 31, 2015 $ (534,215 ) $ (1,419 ) $ (394,984 ) $ (930,618 ) |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill and Other Identifiable Intangible Assets | The changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014 by reportable segment, as well as other identifiable intangible assets, are summarized as follows (in thousands): Goodwill Other Intangible Assets, Net Automotive Industrial Office Products Electrical/ Electronic Materials Total Balance as of January 1, 2014 $ 622,180 $ 116,136 $ 10,554 $ 41,101 $ 789,971 $ 499,385 Additions 20,404 3,577 37,054 31,565 92,600 110,129 Amortization — — — — — (36,867 ) Foreign currency translation (42,745 ) (751 ) — — (43,496 ) (25,132 ) Balance as of December 31, 2014 599,839 118,962 47,608 72,666 839,075 547,515 Additions 5,030 18,696 8,891 20,335 52,952 38,596 Amortization — — — — — (34,878 ) Foreign currency translation (49,866 ) (1,579 ) — — (51,445 ) (30,020 ) Balance as of December 31, 2015 $ 555,003 $ 136,079 $ 56,499 $ 93,001 $ 840,582 $ 521,213 |
Gross Carrying Amounts and Accumulated Amortization Relating to Other Intangible Assets | The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2015 and 2014 is as follows (in thousands): 2015 2014 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 494,516 $ (115,636 ) $ 378,880 $ 477,484 $ (88,923 ) $ 388,561 Trademarks 153,346 (11,922 ) 141,424 166,507 (8,654 ) 157,853 Non-competition agreements 5,765 (4,856 ) 909 6,062 (4,961 ) 1,101 $ 653,627 $ (132,414 ) $ 521,213 $ 650,053 $ (102,538 ) $ 547,515 |
Estimated Other Intangible Assets Amortization Expense | Estimated other intangible assets amortization expense for the succeeding five years is as follows (in thousands): 2016 $ 35,000 2017 35,000 2018 35,000 2019 34,000 2020 34,000 $ 173,000 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding Amount of Credit Facilities | Amounts outstanding under the Company’s credit facilities consist of the following: December 31 2015 2014 (In Thousands) Unsecured revolving line of credit, $1,200,000,000, LIBOR plus 0.75% variable $ 125,000 $ 265,466 Unsecured term notes: November 30, 2011, Series D and E Senior Unsecured Notes, $250,000,000, 3.35% fixed, due November 30, 2016 250,000 250,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000,000, 2.99% fixed, due December 2, 2023 250,000 250,000 Total debt 625,000 765,466 Less debt due within one year 375,000 265,466 Long-term debt, excluding current portion $ 250,000 $ 500,000 |
Schedule of Approximate Maturities of Credit Facilities | Approximate maturities under the Company’s credit facilities are as follows (in thousands): 2016 $ 375,000 2017 — 2018 — 2019 — 2020 — Thereafter 250,000 $ 625,000 |
Leased Properties (Tables)
Leased Properties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Payments of Leases | Future minimum payments, by year and in the aggregate, under the noncancelable operating leases with initial or remaining terms of one year or more was approximately the following at December 31, 2015 (in thousands): 2016 $ 207,800 2017 163,100 2018 118,300 2019 78,000 2020 48,400 Thereafter 152,300 Total minimum lease payments $ 767,900 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Company's Share-Based Compensation Activity and Related Information | A summary of the Company’s share-based compensation activity and related information is as follows: 2015 Shares (1) Weighted- Average Exercise Price (2) (In Thousands) Outstanding at beginning of year 3,923 $ 64 Granted 887 92 Exercised (540 ) 54 Forfeited (89 ) 81 Outstanding at end of year (3) 4,181 $ 71 Exercisable at end of year 2,437 $ 61 Shares available for future grants 10,000 (1) Shares include Restricted Stock Units (RSUs). (2) The weighted-average exercise price excludes RSUs. (3) The exercise prices for SARs outstanding as of December 31, 2015 ranged from approximately $42 to $92. The weighted-average remaining contractual life of all SARs outstanding is approximately six years. |
Summary of Company's Nonvested Share Awards (RSUs) Activity | A summary of the Company’s nonvested share awards activity is as follows: Nonvested Share Awards (RSUs) Shares Weighted- Average Grant Date Fair Value (In Thousands) Nonvested at January 1, 2015 420 $ 72 Granted 176 92 Vested (123 ) 62 Forfeited (40 ) 76 Nonvested at December 31, 2015 433 $ 82 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: 2015 2014 (In Thousands) Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 318,368 $ 337,792 Pension liability not yet deducted for tax purposes 347,263 341,904 665,631 679,696 Deferred tax liabilities related to: Employee and retiree benefits 249,126 227,926 Inventory 147,199 152,913 Other intangible assets 111,305 105,482 Property, plant, and equipment 58,496 59,600 Other 31,664 30,641 597,790 576,562 Net deferred tax assets 67,841 103,134 Current portion of deferred tax assets — (30,282 ) Noncurrent net deferred tax assets $ 67,841 $ 72,852 |
Components of Income before Income Taxes | The components of income before income taxes are as follows: 2015 2014 2013 (In Thousands) United States $ 1,004,919 $ 978,824 $ 850,866 Foreign 118,762 138,915 193,438 Income before income taxes $ 1,123,681 $ 1,117,739 $ 1,044,304 |
Components of Income Tax Expense | The components of income tax expense are as follows: 2015 2014 2013 (In Thousands) Current: Federal $ 309,403 $ 224,591 $ 303,016 State 45,460 43,513 47,010 Foreign 27,602 84,030 30,941 Deferred 35,544 54,319 (21,622 ) $ 418,009 $ 406,453 $ 359,345 |
Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate | The reasons for the difference between total tax expense and the amount computed by applying the statutory Federal income tax rate to income before income taxes are as follows: 2015 2014 2013 (In Thousands) Statutory rate applied to income $ 393,288 $ 391,209 $ 365,506 Plus state income taxes, net of Federal tax benefit 32,295 32,646 28,823 Earnings in jurisdictions taxed at rates different from the statutory US tax rate (13,684 ) (3,453 ) (37,873 ) Foreign tax credit (264 ) (20,170 ) — Capital loss expiration — — 16,803 Reversal of capital loss valuation allowance — — (16,803 ) Other 6,374 6,221 2,889 $ 418,009 $ 406,453 $ 359,345 |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2015 2014 2013 (In Thousands) Balance at beginning of year $ 17,581 $ 47,190 $ 45,455 Additions based on tax positions related to the current year 1,969 3,303 3,238 Additions for tax positions of prior years 61 6,415 3,759 Reductions for tax positions for prior years (3,152 ) (851 ) (1,472 ) Reduction for lapse in statute of limitations (425 ) (481 ) (1,714 ) Settlements (219 ) (37,995 ) (2,076 ) Balance at end of year $ 15,815 $ 17,581 $ 47,190 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Changes in Benefit Obligations | Changes in benefit obligations for the years ended December 31, 2015 and 2014 were: 2015 2014 (In Thousands) Changes in benefit obligation Benefit obligation at beginning of year $ 2,352,094 $ 2,035,185 Service cost 8,562 7,824 Interest cost 98,088 102,465 Plan participants’ contributions 2,838 3,526 Actuarial (gain) loss (139,573 ) 346,875 Foreign currency exchange rate changes (35,082 ) (18,697 ) Gross benefits paid (87,571 ) (125,084 ) Benefit obligation at end of year $ 2,199,356 $ 2,352,094 |
Assumptions Used to Measure Pension Benefit Obligations | The assumptions used to measure the pension benefit obligations for the plans at December 31, 2015 and 2014, were: 2015 2014 Weighted-average discount rate 4.82 % 4.26 % Rate of increase in future compensation levels 3.12 % 3.07 % |
Changes in Plan Assets | Changes in plan assets for the years ended December 31, 2015 and 2014 were: 2015 2014 (In Thousands) Changes in plan assets Fair value of plan assets at beginning of year $ 2,021,837 $ 1,933,063 Actual return on plan assets (45,529 ) 174,652 Foreign currency exchange rate changes (33,382 ) (17,616 ) Employer contributions 54,543 53,296 Plan participants’ contributions 2,838 3,526 Benefits paid (87,571 ) (125,084 ) Fair value of plan assets at end of year $ 1,912,736 $ 2,021,837 |
Asset Allocations for Funded Pension Plans | The asset allocations for the Company’s funded pension plans at December 31, 2015 and 2014, and the target allocation for 2016, by asset category were: Target Allocation 2016 Percentage of Plan Assets at December 31 2015 2014 Asset Category Equity securities 71 % 69 % 70 % Debt securities 29 % 31 % 30 % 100 % 100 % 100 % |
Fair Value of Plan Assets by Asset Category | Debt securities including corporate bonds, U.S. Government securities, and asset-backed securities are valued using price evaluations reflecting the bid and/or ask sides of the market for an investment as of the last day of the calendar plan year. 2015 Total Quoted in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In Thousands) Equity Securities Common stocks — mutual funds — equity $ 349,852 $ 349,852 $ — $ — Genuine Parts Company common stock 173,363 173,363 — — Other stocks 793,229 792,624 — 605 Debt Securities Short-term investments 46,195 46,195 — — Cash and equivalents 2,978 2,978 — — Government bonds 193,436 109,559 83,877 — Corporate bonds 172,119 — 172,119 — Asset-backed and mortgage–backed securities 27,510 — 27,510 — Convertible securities 434 — 434 — Other-international 21,137 20,785 352 — Municipal bonds 5,857 — 5,857 — Mutual funds — fixed income 123,895 — 123,895 — Other Cash surrender value of life insurance policies 2,731 — — 2,731 Total $ 1,912,736 $ 1,495,356 $ 414,044 $ 3,336 2014 Total Quoted in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In Thousands) Equity Securities Common stocks — mutual funds — equity $ 366,716 $ 366,716 $ — $ — Genuine Parts Company common stock 215,477 215,477 — — Other stocks 822,782 822,782 — — Debt Securities Short-term investments 41,882 41,882 — — Cash and equivalents 8,921 8,921 — — Government bonds 192,413 96,480 95,933 — Corporate bonds 178,214 — 178,214 — Asset-backed and mortgage–backed securities 27,756 — 27,756 — Convertible securities 633 — 633 — Other-international 25,137 21,815 3,322 — Municipal bonds 6,435 — 6,435 — Mutual funds — fixed income 132,752 — 132,752 — Other Options and futures 7 7 — — Cash surrender value of life insurance policies 2,712 — — 2,712 Total $ 2,021,837 $ 1,574,080 $ 445,045 $ 2,712 |
Amounts Recognized in Consolidated Balance Sheets | The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets at December 31: 2015 2014 (In Thousands) Other long-term asset $ 3,336 $ 4,247 Other current liability (7,432 ) (6,740 ) Pension and other post-retirement liabilities (282,524 ) (327,764 ) $ (286,620 ) $ (330,257 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consist of: 2015 2014 (In Thousands) Net actuarial loss $ 882,464 $ 875,788 Prior service credit (1,814 ) (2,436 ) $ 880,650 $ 873,352 |
Expected Cash Flows for Pension Plans | Information about the expected cash flows for the pension plans follows (in thousands): Employer contribution 2016 (expected) $ 49,000 Expected benefit payments: 2016 $ 93,000 2017 102,000 2018 109,000 2019 116,000 2020 124,000 2021 through 2025 703,000 |
Components of Net Periodic Benefit (Income) Cost | Net periodic benefit (income) cost included the following components: 2015 2014 2013 (In Thousands) Service cost $ 8,562 $ 7,824 $ 19,083 Interest cost 98,088 102,465 89,408 Expected return on plan assets (150,130 ) (144,746 ) (133,816 ) Amortization of prior service credit (565 ) (1,890 ) (7,538 ) Amortization of actuarial loss 38,197 26,791 83,934 Net periodic benefit (income) cost $ (5,848 ) $ (9,556 ) $ 51,071 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows: 2015 2014 2013 (In Thousands) Current year actuarial loss (gain) $ 44,930 $ 312,011 $ (368,587 ) Recognition of actuarial loss (38,197 ) (26,791 ) (83,934 ) Recognition of prior service credit 565 638 7,538 Total recognized in other comprehensive income (loss) $ 7,298 $ 285,858 $ (444,983 ) Total recognized in net periodic benefit (income) cost and other comprehensive income (loss) $ 1,450 $ 276,303 $ (393,912 ) |
Estimated Amounts Amortized from Accumulated Other Comprehensive Loss | The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 are as follows in thousands: Actuarial loss $ 31,146 Prior service credit (430 ) Total $ 30,716 |
Assumptions Used To Measure Net Periodic Benefit (Income) Cost | The assumptions used in measuring the net periodic benefit (income) cost for the plans follow: 2015 2014 2013 Weighted average discount rate 4.26 % 5.10 % 4.17 % Rate of increase in future compensation levels 3.07 % 3.04 % 3.30 % Expected long-term rate of return on plan assets 7.85 % 7.85 % 7.83 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition Consideration Transferred | The acquisition date fair value of the consideration transferred totaled approximately $824,000,000, net of cash acquired of $70,000,000, which consisted of the following: April 1, 2013 (In Thousands) Cash $ 590,000 Fair value of 30% investment held prior to business combination 234,000 Total $ 824,000 |
Fair Values of Assets Acquired and Liabilities Assumed on Acquisition Date | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. April 1, 2013 (In Thousands) Trade accounts receivable $ 94,000 Merchandise inventory 306,000 Prepaid expenses and other current assets 31,000 Property and equipment 59,000 Intangible assets 347,000 Other assets 24,000 Total identifiable assets acquired 861,000 Current liabilities (224,000 ) Long-term debt (230,000 ) Deferred tax liabilities and other (125,000 ) Total liabilities assumed (579,000 ) Net identifiable assets acquired 282,000 Goodwill 542,000 Net assets acquired $ 824,000 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Data | For management purposes, 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 that are reported as a component of net sales in the Company’s consolidated statements of income and comprehensive income. 2015 2014 2013 2012 2011 (In Thousands) Net sales: Automotive $ 8,015,098 $ 8,096,877 $ 7,489,186 $ 6,320,882 $ 6,061,424 Industrial 4,646,689 4,771,080 4,429,976 4,453,574 4,173,574 Office products 1,937,629 1,802,754 1,638,618 1,686,690 1,689,368 Electrical/electronic materials 750,770 739,119 568,872 582,820 557,537 Other (70,142 ) (68,183 ) (48,809 ) (30,098 ) (23,026 ) Total net sales $ 15,280,044 $ 15,341,647 $ 14,077,843 $ 13,013,868 $ 12,458,877 Operating profit: Automotive $ 729,152 $ 700,386 $ 641,492 $ 540,678 $ 467,806 Industrial 339,180 370,043 320,720 352,119 337,628 Office products 140,866 133,727 122,492 134,441 134,124 Electrical/electronic materials 70,151 64,884 47,584 50,910 40,663 Total operating profit 1,279,349 1,269,040 1,132,288 1,078,148 980,221 Interest expense, net (20,354 ) (24,192 ) (24,330 ) (19,619 ) (24,608 ) Corporate expense (100,436 ) (90,242 ) (34,667 ) (26,606 ) (58,033 ) Intangible asset amortization (34,878 ) (36,867 ) (28,987 ) (12,991 ) (6,774 ) Income before income taxes $ 1,123,681 $ 1,117,739 $ 1,044,304 $ 1,018,932 $ 890,806 Assets: Automotive $ 4,293,290 $ 4,275,298 $ 4,009,244 $ 3,411,252 $ 3,218,931 Industrial 1,143,952 1,224,735 1,162,697 1,130,877 1,100,024 Office products 831,546 835,592 708,944 731,564 700,720 Electrical/electronic materials 191,866 196,400 156,780 137,237 129,933 Corporate 322,323 327,623 353,276 898,292 773,391 Goodwill and other intangible assets 1,361,794 1,386,590 1,289,356 497,839 279,775 Total assets $ 8,144,771 $ 8,246,238 $ 7,680,297 $ 6,807,061 $ 6,202,774 2015 2014 2013 2012 2011 (In Thousands) Depreciation and amortization: Automotive $ 70,112 $ 77,645 $ 76,238 $ 60,630 $ 60,252 Industrial 9,960 9,906 8,751 8,307 7,495 Office products 10,922 10,728 10,166 10,837 9,999 Electrical/electronic materials 2,933 2,658 1,904 1,733 1,554 Corporate 12,870 10,509 7,911 3,885 2,862 Intangible asset amortization 34,878 36,867 28,987 12,991 6,774 Total depreciation and amortization $ 141,675 $ 148,313 $ 133,957 $ 98,383 $ 88,936 Capital expenditures: Automotive $ 77,504 $ 78,537 $ 97,735 $ 67,482 $ 61,795 Industrial 13,998 12,442 8,808 13,015 9,851 Office products 12,323 11,135 9,297 16,013 22,036 Electrical/electronic materials 2,824 3,003 1,730 1,029 1,762 Corporate 2,895 2,564 6,493 4,448 8,025 Total capital expenditures $ 109,544 $ 107,681 $ 124,063 $ 101,987 $ 103,469 Net sales: United States $ 12,843,078 $ 12,565,329 $ 11,594,713 $ 11,299,291 $ 10,791,303 Canada 1,395,695 1,583,075 1,560,799 1,616,921 1,571,733 Australasia 992,064 1,133,620 839,353 — — Mexico 119,349 127,806 131,787 127,754 118,867 Other (70,142 ) (68,183 ) (48,809 ) (30,098 ) (23,026 ) Total net sales $ 15,280,044 $ 15,341,647 $ 14,077,843 $ 13,013,868 $ 12,458,877 Net property, plant, and equipment: United States $ 495,073 $ 495,452 $ 503,882 $ 466,473 $ 411,193 Canada 79,023 98,939 99,135 93,496 84,210 Australasia 65,289 65,707 60,614 — — Mexico 8,832 10,004 6,430 6,396 4,801 Total net property, plant, and equipment $ 648,217 $ 670,102 $ 670,061 $ 566,365 $ 500,204 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Location$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Significant Accounting Policies [Line Items] | |||
Number of locations in North America and Australasia | Location | 2,650 | ||
Provisions for doubtful accounts | $ 12,373,000 | $ 7,192,000 | $ 8,691,000 |
Allowance for doubtful accounts receivable | 10,693,000 | 11,836,000 | |
Excess of FIFO costs over stated LIFO value | 438,510,000 | 434,790,000 | |
Reduction in cost of goods sold by the effect of LIFO liquidations | 8,000,000 | 5,000,000 | |
Impairment of goodwill | 0 | 0 | 0 |
Fair value of fixed rate debt | 501,000,000 | 505,000,000 | |
Carrying value of fixed rate debt | 500,000,000 | 500,000,000 | |
Shipping and handling costs classified as selling, administrative and other expenses | 270,000,000 | 270,000,000 | 250,000,000 |
Advertising costs | $ 75,000,000 | $ 71,300,000 | $ 57,900,000 |
Outstanding options to purchase common shares not included in dilutive share | shares | 1,280,000 | 610,000 | 630,000 |
Minimum exercise price of options | $ / shares | $ 77 | $ 77 | $ 77 |
Maximum exercise price of options | $ / shares | $ 92 | $ 92 | $ 92 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Share-based payment awards granted vesting period range | 1 year | ||
Minimum [Member] | Building and Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 10 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 5 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Share-based payment awards granted vesting period range | 5 years | ||
Maximum [Member] | Building and Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 15 years |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Components Of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Retirement benefit assets | $ 3,336 | $ 4,247 |
Deferred compensation benefits | 28,488 | 27,828 |
Investments | 28,351 | 29,139 |
Cash surrender value of life insurance policies | 105,213 | 105,227 |
Customer sales returns inventories | 72,814 | 67,400 |
Guarantees related to borrowings | 35,000 | 29,000 |
Other long-term prepayments and receivables | 187,716 | 188,849 |
Total other assets | $ 460,918 | $ 451,690 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Components of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Post-employment and other benefit/retirement liabilities | $ 54,034 | $ 57,754 |
Insurance liabilities | 33,979 | 48,569 |
Other lease obligations | 37,642 | 40,040 |
Other taxes payable | 15,495 | 18,947 |
Customer deposits | 85,552 | 81,496 |
Guarantees related to borrowings | 35,000 | 29,000 |
Other | 198,254 | 171,943 |
Total other long-term liabilities | $ 459,956 | $ 447,749 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | |||
Foreign currency translation | $ (394,984) | $ (186,998) | |
Unrecognized net actuarial loss, net of tax | (540,018) | (538,614) | |
Unrecognized prior service credit, net of tax | 4,384 | 5,401 | |
Total accumulated other comprehensive loss | $ (930,618) | $ (720,211) | $ (397,655) |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (720,211) | $ (397,655) | |
Other comprehensive income (loss) before reclassifications, net of tax | (233,655) | (342,600) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 23,248 | 20,044 | |
Other comprehensive (loss) income, net of tax | (210,407) | (322,556) | $ 103,837 |
Ending balance | (930,618) | (720,211) | (397,655) |
Pension Benefits [Member] | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (532,069) | (359,079) | |
Other comprehensive income (loss) before reclassifications, net of tax | (25,558) | (193,182) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 23,412 | 20,192 | |
Other comprehensive (loss) income, net of tax | (2,146) | (172,990) | |
Ending balance | (534,215) | (532,069) | (359,079) |
Other Post-Retirement Benefits [Member] | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (1,144) | (957) | |
Other comprehensive income (loss) before reclassifications, net of tax | (111) | (39) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (164) | (148) | |
Other comprehensive (loss) income, net of tax | (275) | (187) | |
Ending balance | (1,419) | (1,144) | (957) |
Foreign Currency Translation [Member] | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (186,998) | (37,619) | |
Other comprehensive income (loss) before reclassifications, net of tax | (207,986) | (149,379) | |
Other comprehensive (loss) income, net of tax | (207,986) | (149,379) | |
Ending balance | $ (394,984) | $ (186,998) | $ (37,619) |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Finite Lived Intangible Assets [Line Items] | |||
Goodwill, Beginning Balance | $ 839,075 | $ 789,971 | |
Other Intangible Assets, Net, Beginning Balance | 547,515 | 499,385 | |
Goodwill, Additions | 52,952 | 92,600 | |
Other Intangible Assets, Net, Additions | 38,596 | 110,129 | |
Amortization | (34,878) | (36,867) | $ (28,987) |
Goodwill, Foreign currency translation | (51,445) | (43,496) | |
Other Intangible Assets, Net, Foreign currency translation | (30,020) | (25,132) | |
Goodwill, Ending Balance | 840,582 | 839,075 | 789,971 |
Other Intangible Assets, Net, Ending Balance | 521,213 | 547,515 | 499,385 |
Automotive [Member] | |||
Goodwill And Finite Lived Intangible Assets [Line Items] | |||
Goodwill, Beginning Balance | 599,839 | 622,180 | |
Goodwill, Additions | 5,030 | 20,404 | |
Goodwill, Foreign currency translation | (49,866) | (42,745) | |
Goodwill, Ending Balance | 555,003 | 599,839 | 622,180 |
Industrial [Member] | |||
Goodwill And Finite Lived Intangible Assets [Line Items] | |||
Goodwill, Beginning Balance | 118,962 | 116,136 | |
Goodwill, Additions | 18,696 | 3,577 | |
Goodwill, Foreign currency translation | (1,579) | (751) | |
Goodwill, Ending Balance | 136,079 | 118,962 | 116,136 |
Office Products [Member] | |||
Goodwill And Finite Lived Intangible Assets [Line Items] | |||
Goodwill, Beginning Balance | 47,608 | 10,554 | |
Goodwill, Additions | 8,891 | 37,054 | |
Goodwill, Ending Balance | 56,499 | 47,608 | 10,554 |
Electrical/Electronic Materials [Member] | |||
Goodwill And Finite Lived Intangible Assets [Line Items] | |||
Goodwill, Beginning Balance | 72,666 | 41,101 | |
Goodwill, Additions | 20,335 | 31,565 | |
Goodwill, Ending Balance | $ 93,001 | $ 72,666 | $ 41,101 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets - Gross Carrying Amounts and Accumulated Amortization Relating to Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 653,627 | $ 650,053 | |
Accumulated Amortization | (132,414) | (102,538) | |
Net | 521,213 | 547,515 | $ 499,385 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 494,516 | 477,484 | |
Accumulated Amortization | (115,636) | (88,923) | |
Net | 378,880 | 388,561 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 153,346 | 166,507 | |
Accumulated Amortization | (11,922) | (8,654) | |
Net | 141,424 | 157,853 | |
Non-Competition Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 5,765 | 6,062 | |
Accumulated Amortization | (4,856) | (4,961) | |
Net | $ 909 | $ 1,101 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for other intangible assets total | $ 34,878 | $ 36,867 | $ 28,987 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets - Estimated Other Intangible Assets Amortization Expense (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 35,000 |
2,017 | 35,000 |
2,018 | 35,000 |
2,019 | 34,000 |
2,020 | 34,000 |
Estimated other intangible assets amortization expense | $ 173,000 |
Credit Facilities - Additional
Credit Facilities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Borrowings subject to variable rates | $ 125,000,000 | $ 265,466,000 |
Weighted average interest rate on outstanding borrowings | 2.76% | 2.46% |
Unused letter of credit outstanding due to workers' compensation and insurance reserve | $ 62,874,000 | $ 62,515,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility amount option to increase additional borrowings | 350,000,000 | |
Outstanding line of credit | $ 125,000,000 | $ 265,466,000 |
Line of credit facility, interest rate at period end | 1.17% | |
Unsecured revolving line of credit facility | $ 1,200,000,000 | |
Line of credit facility, expiration date | 2020-06 |
Credit Facilities - Outstanding
Credit Facilities - Outstanding Amount of Credit Facilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Total debt | $ 625,000 | $ 765,466 |
Less debt due within one year | 375,000 | 265,466 |
Long-term debt, excluding current portion | 250,000 | 500,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Unsecured revolving line of credit, $1,200,000,000, LIBOR plus 0.75% variable | 125,000 | 265,466 |
November 30, 2011, Series D and E Senior Unsecured Notes, $250,000,000, 3.35% fixed, due November 30, 2016 [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior unsecured Notes | 250,000 | 250,000 |
December 2, 2013, Series F Unsecured Notes, $250,000,000, 2.99% Fixed, Due December 2, 2023 [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior unsecured Notes | $ 250,000 | $ 250,000 |
Credit Facilities - Outstandi41
Credit Facilities - Outstanding Amount of Credit Facilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Unsecured revolving line of credit | $ 1,200,000,000 |
Debt instrument basis spread on variable rate | 0.75% |
November 30, 2011, Series D and E Senior Unsecured Notes, $250,000,000, 3.35% fixed, due November 30, 2016 [Member] | |
Line of Credit Facility [Line Items] | |
Face value of Senior Unsecured Notes | $ 250,000,000 |
Interest rate of Senior Unsecured Notes | 3.35% |
Due date of Senior Unsecured Notes | Nov. 30, 2016 |
December 2, 2013, Series F Unsecured Notes, $250,000,000, 2.99% Fixed, Due December 2, 2023 [Member] | |
Line of Credit Facility [Line Items] | |
Face value of Senior Unsecured Notes | $ 250,000,000 |
Interest rate of Senior Unsecured Notes | 2.99% |
Due date of Senior Unsecured Notes | Dec. 2, 2023 |
Credit Facilities - Schedule of
Credit Facilities - Schedule of Approximate Maturities of Credit Facilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 375,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 250,000 | |
Total debt | $ 625,000 | $ 765,466 |
Leased Properties - Future Mini
Leased Properties - Future Minimum Payments of Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 207,800 |
2,017 | 163,100 |
2,018 | 118,300 |
2,019 | 78,000 |
2,020 | 48,400 |
Thereafter | 152,300 |
Total minimum lease payments | $ 767,900 |
Leased Properties - Additional
Leased Properties - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rental expense under operating leases | $ 254,000 | $ 233,000 | $ 208,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost related to nonvested awards, unrecognized | $ 33,000,000 | ||
Weighted-average period to recognize compensation cost (in years) | 3 years | ||
Aggregate intrinsic value for outstanding SARs and RSUs | $ 104,000,000 | $ 198,100,000 | |
Aggregate intrinsic value for vested SARs and RSUs | $ 65,000,000 | 116,200,000 | |
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 | $ 17,717,000 | 16,239,000 | $ 12,648,000 |
Income tax benefit | $ 7,100,000 | $ 6,500,000 | $ 5,100,000 |
Weighted-average, risk-free interest | 2.00% | 2.80% | 2.00% |
Weighted-average, dividend yield | 2.60% | 2.80% | 3.20% |
Weighted-average, annual historical volatility factor | 19.00% | 19.00% | 19.00% |
Weighted-average, expected life | 7 years | ||
Weighted-average, estimated turnover | 5.40% | ||
Fair value of shares vested | $ 15,200,000 | $ 13,800,000 | $ 8,100,000 |
Weighted-average grant date fair value of SARs granted | $ 13.53 | $ 13.77 | $ 10.14 |
Aggregate intrinsic value of SARs and RSUs exercised | $ 30,100,000 | $ 65,200,000 | $ 43,900,000 |
Granted, Shares | 887,000 | ||
Excess tax benefits from share-based compensation | $ 7,024,000 | $ 17,766,000 | $ 12,905,000 |
Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Shares | 711,000 | 680,000 | 727,000 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Shares | 176,000 | 165,000 | 172,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Company's Share-Based Compensation Activity and Related Information (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning Balance, Shares | 3,923 |
Granted, Shares | 887 |
Exercised, Shares | (540) |
Forfeited, Shares | (89) |
Ending Balance, Shares | 4,181 |
Exercisable at end of year, Shares | 2,437 |
Shares available for future grants | 10,000 |
Weighted-Average Exercise price, Beginning Balance | $ / shares | $ 64 |
Weighted-Average Exercise price, Granted | $ / shares | 92 |
Weighted-Average Exercise price, Exercised | $ / shares | 54 |
Weighted-Average Exercise price, Forfeited | $ / shares | 81 |
Weighted-Average Exercise price, Ending Balance | $ / shares | 71 |
Exercisable at end of year | $ / shares | $ 61 |
Share-Based Compensation - Su47
Share-Based Compensation - Summary of Company's Share-Based Compensation Activity and Related Information (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Exercise prices for SARs outstanding, minimum | $ 42 |
Exercise prices for SARs outstanding, maximum | $ 92 |
Weighted-average remaining contractual life of the SARs outstanding | 6 years |
Share-Based Compensation - Su48
Share-Based Compensation - Summary of Company's Nonvested Share Awards (RSUs) Activity (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning Balance, Shares | shares | 420 |
Granted, Shares | shares | 176 |
Vested, Shares | shares | (123) |
Forfeited, Shares | shares | (40) |
Ending Balance, Shares | shares | 433 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 72 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 92 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 62 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 76 |
Weighted-Average Grant Date Fair Value Ending Balance | $ / shares | $ 82 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Undistributed earnings of foreign subsidiaries | $ 623,000,000 | ||
Unrecognized tax benefits including interest and penalties | 17,684,000 | $ 19,497,000 | |
Unrecognized tax benefits that would impact effective tax rate | 9,317,000 | 11,106,000 | |
Interest and penalties paid by the Company | 1,051,000 | 14,000,000 | $ 405,000 |
Accrued interest and penalties | $ 1,746,000 | $ 1,916,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets related to: | ||
Expenses not yet deducted for tax purposes | $ 318,368 | $ 337,792 |
Pension liability not yet deducted for tax purposes | 347,263 | 341,904 |
Deferred tax assets, total | 665,631 | 679,696 |
Deferred tax liabilities related to: | ||
Employee and retiree benefits | 249,126 | 227,926 |
Inventory | 147,199 | 152,913 |
Other intangible assets | 111,305 | 105,482 |
Property, plant, and equipment | 58,496 | 59,600 |
Other | 31,664 | 30,641 |
Deferred tax liabilities, total | 597,790 | 576,562 |
Net deferred tax assets | 67,841 | 103,134 |
Net deferred tax assets | 67,841 | 103,134 |
Current portion of deferred tax assets | (30,282) | |
Noncurrent net deferred tax assets | $ 67,841 | $ 72,852 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | |||||
United States | $ 1,004,919 | $ 978,824 | $ 850,866 | ||
Foreign | 118,762 | 138,915 | 193,438 | ||
Income before income taxes | $ 1,123,681 | $ 1,117,739 | $ 1,044,304 | $ 1,018,932 | $ 890,806 |
Income Taxes - Components of 52
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 309,403 | $ 224,591 | $ 303,016 |
State | 45,460 | 43,513 | 47,010 |
Foreign | 27,602 | 84,030 | 30,941 |
Deferred | 35,544 | 54,319 | (21,622) |
Income tax expense, total | $ 418,009 | $ 406,453 | $ 359,345 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate applied to income | $ 393,288 | $ 391,209 | $ 365,506 |
Plus state income taxes, net of Federal tax benefit | 32,295 | 32,646 | 28,823 |
Earnings in jurisdictions taxed at rates different from the statutory US tax rate | (13,684) | (3,453) | (37,873) |
Foreign tax credit | (264) | (20,170) | |
Capital loss expiration | 16,803 | ||
Reversal of capital loss valuation allowance | (16,803) | ||
Other | 6,374 | 6,221 | 2,889 |
Income tax expense, total | $ 418,009 | $ 406,453 | $ 359,345 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 17,581 | $ 47,190 | $ 45,455 |
Additions based on tax positions related to the current year | 1,969 | 3,303 | 3,238 |
Additions for tax positions of prior years | 61 | 6,415 | 3,759 |
Reductions for tax positions for prior years | (3,152) | (851) | (1,472) |
Reduction for lapse in statute of limitations | (425) | (481) | (1,714) |
Settlements | (219) | (37,995) | (2,076) |
Balance at end of year | $ 15,815 | $ 17,581 | $ 47,190 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization period of plan assets gains and losses | 5 years | ||
Corridor percentage | 10.00% | ||
Fair value of plan assets | $ 1,912,736 | $ 2,021,837 | |
Genuine Parts Company common stock included in equity securities | $ 173,363 | $ 215,477 | |
Genuine Parts Company common stock as a percentage of total plan assets | 9.00% | 11.00% | |
Dividend payments on Genuine Parts Company common stock received by plan | $ 4,965 | $ 4,650 | |
Pension benefits expected to be paid from employer assets in 2016 | 7,382 | ||
United States Pension Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | 2,012,935 | 2,135,827 | |
Fair value of plan assets | 1,731,368 | 1,819,747 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | 2,199,356 | 2,352,094 | $ 2,035,185 |
Total accumulated benefit obligations | 2,179,626 | 2,328,489 | |
Fair value of plan assets | $ 1,912,736 | 2,021,837 | 1,933,063 |
Expected rate of return on plan assets for measuring 2016 pension cost or income | 7.83% | ||
Defined Contribution Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to be received by pension plan participants of a specified percentage of employee's salary | 100.00% | ||
First percentage of employee's salary out of which matching contribution will be made | 5.00% | ||
Total defined contribution plans expense | $ 55,066 | $ 53,351 | $ 43,236 |
Defined Contribution Plans [Member] | Prior to 2014, U.S. Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to be received by pension plan participants of a specified percentage of employee's salary | 20.00% | ||
First percentage of employee's salary out of which matching contribution will be made | 6.00% | ||
Defined Contribution Plans [Member] | Prior to 2014, Other Employees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to be received by pension plan participants of a specified percentage of employee's salary | 100.00% | ||
First percentage of employee's salary out of which matching contribution will be made | 5.00% | ||
S&P 500 Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 49.00% | ||
Russell Mid Cap Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 5.00% | ||
Russell 2000 Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 8.00% | ||
MSCI EAFE Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 5.00% | ||
DJ Global Moderate Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 5.00% | ||
BarCap U.S. Govt/Credit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 28.00% |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Benefit Obligations (Detail) - Pension Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in benefit obligation | |||
Benefit obligation at beginning of year | $ 2,352,094 | $ 2,035,185 | |
Service cost | 8,562 | 7,824 | $ 19,083 |
Interest cost | 98,088 | 102,465 | 89,408 |
Plan participants' contributions | 2,838 | 3,526 | |
Actuarial (gain) loss | (139,573) | 346,875 | |
Foreign currency exchange rate changes | (35,082) | (18,697) | |
Gross benefits paid | (87,571) | (125,084) | |
Benefit obligation at end of year | $ 2,199,356 | $ 2,352,094 | $ 2,035,185 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Measure Pension Benefit Obligations for Plans (Detail) - Pension Benefits [Member] | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average discount rate | 4.82% | 4.26% |
Rate of increase in future compensation levels | 3.12% | 3.07% |
Employee Benefit Plans - Chan58
Employee Benefit Plans - Changes in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in plan assets | ||
Fair value of plan assets at beginning of year | $ 2,021,837 | |
Fair value of plan assets at end of year | 1,912,736 | $ 2,021,837 |
Pension Benefits [Member] | ||
Changes in plan assets | ||
Fair value of plan assets at beginning of year | 2,021,837 | 1,933,063 |
Actual return on plan assets | (45,529) | 174,652 |
Foreign currency exchange rate changes | (33,382) | (17,616) |
Employer contributions | 54,543 | 53,296 |
Plan participants' contributions | 2,838 | 3,526 |
Benefits paid | (87,571) | (125,084) |
Fair value of plan assets at end of year | $ 1,912,736 | $ 2,021,837 |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocations for Funded Pension Plans (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation, Total | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation, Total | 69.00% | 70.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation, Total | 31.00% | 30.00% |
Target Asset Allocation 2016 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Assets, Total | 100.00% | |
Target Asset Allocation 2016 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Assets, Total | 71.00% | |
Target Asset Allocation 2016 [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Assets, Total | 29.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 1,912,736 | $ 2,021,837 |
Common Stocks - Mutual Funds - Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 349,852 | 366,716 |
Other Stocks [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 793,229 | 822,782 |
Short-Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 46,195 | 41,882 |
Cash and Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 2,978 | 8,921 |
Government Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 193,436 | 192,413 |
Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 172,119 | 178,214 |
Asset Backed and Mortgage Backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 27,510 | 27,756 |
Convertible Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 434 | 633 |
Other-International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 21,137 | 25,137 |
Municipal Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 5,857 | 6,435 |
Mutual Funds - Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 123,895 | 132,752 |
Options and Futures [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 7 | |
Cash Surrender Value of Life Insurance Policies [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 2,731 | 2,712 |
Genuine Parts Company Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 173,363 | 215,477 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 1,495,356 | 1,574,080 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stocks - Mutual Funds - Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 349,852 | 366,716 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Stocks [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 792,624 | 822,782 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 46,195 | 41,882 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 2,978 | 8,921 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 109,559 | 96,480 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other-International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 20,785 | 21,815 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Options and Futures [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 7 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Genuine Parts Company Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 173,363 | 215,477 |
Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 414,044 | 445,045 |
Significant Observable Inputs (Level 2) [Member] | Government Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 83,877 | 95,933 |
Significant Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 172,119 | 178,214 |
Significant Observable Inputs (Level 2) [Member] | Asset Backed and Mortgage Backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 27,510 | 27,756 |
Significant Observable Inputs (Level 2) [Member] | Convertible Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 434 | 633 |
Significant Observable Inputs (Level 2) [Member] | Other-International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 352 | 3,322 |
Significant Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 5,857 | 6,435 |
Significant Observable Inputs (Level 2) [Member] | Mutual Funds - Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 123,895 | 132,752 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 3,336 | 2,712 |
Significant Unobservable Inputs (Level 3) [Member] | Other Stocks [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 605 | |
Significant Unobservable Inputs (Level 3) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 2,731 | $ 2,712 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other long-term asset | $ 3,336 | $ 4,247 |
Pension and other post-retirement liabilities | (284,235) | (329,531) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other long-term asset | 3,336 | 4,247 |
Other current liability | (7,432) | (6,740) |
Pension and other post-retirement liabilities | (282,524) | (327,764) |
Amounts recognized in consolidated balance sheets | $ (286,620) | $ (330,257) |
Employee Benefit Plans - Amou62
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Detail) - Pension Benefits [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 882,464 | $ 875,788 |
Prior service credit | (1,814) | (2,436) |
Amounts recognized in accumulated other comprehensive loss | $ 880,650 | $ 873,352 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Cash Flows for Pension Plans (Detail) - Pension Benefits [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contribution 2016 (expected) | $ 49,000 |
2,016 | 93,000 |
2,017 | 102,000 |
2,018 | 109,000 |
2,019 | 116,000 |
2,020 | 124,000 |
2021 through 2025 | $ 703,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit (Income) Cost for the Pension Plans (Detail) - Pension Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,562 | $ 7,824 | $ 19,083 |
Interest cost | 98,088 | 102,465 | 89,408 |
Expected return on plan assets | (150,130) | (144,746) | (133,816) |
Amortization of prior service credit | (565) | (1,890) | (7,538) |
Amortization of actuarial loss | 38,197 | 26,791 | 83,934 |
Net periodic benefit (income) cost | $ (5,848) | $ (9,556) | $ 51,071 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Detail) - Pension Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ 44,930 | $ 312,011 | $ (368,587) |
Recognition of actuarial loss | (38,197) | (26,791) | (83,934) |
Recognition of prior service credit | 565 | 638 | 7,538 |
Total recognized in other comprehensive income (loss) | 7,298 | 285,858 | (444,983) |
Total recognized in net periodic benefit (income) cost and other comprehensive income (loss) | $ 1,450 | $ 276,303 | $ (393,912) |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Amounts Amortized from Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Actuarial loss | $ 31,146 |
Prior service credit | (430) |
Total | $ 30,716 |
Employee Benefit Plans - Assu67
Employee Benefit Plans - Assumptions Used in Measuring Net Periodic Benefit (Income) Cost (Detail) - Pension Benefits [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rate | 4.26% | 5.10% | 4.17% |
Rate of increase in future compensation levels | 3.07% | 3.04% | 3.30% |
Expected long-term rate of return on plan assets | 7.85% | 7.85% | 7.83% |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Guarantor Obligations [Line Items] | ||
Total borrowings of the independents and affiliates subject to guarantee | $ 332,632,000 | |
Guarantees related to borrowings, other assets | 35,000,000 | $ 29,000,000 |
Guarantees related to borrowings, other long-term liabilities | $ 35,000,000 | $ 29,000,000 |
Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Guaranteed obligations maturity | 1 year | |
Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Guaranteed obligations maturity | 6 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Apr. 01, 2013USD ($) | Jan. 31, 2012USD ($) | Dec. 31, 2013USD ($)$ / shares | Dec. 31, 2015USD ($)StoreBusiness | Dec. 31, 2014USD ($)Business | Dec. 31, 2013USD ($)Business$ / shares |
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | $ 120,000,000 | $ 260,000,000 | $ 650,000,000 | |||
Goodwill and other intangible assets acquired | $ 950,000,000 | $ 90,000,000 | $ 200,000,000 | 950,000,000 | ||
Business combination, step acquisition, equity interest in acquiree, remeasurement gain | 59,000,000 | |||||
Pro-forma net sales | $ 14,400,000,000 | |||||
Proforma earnings per share diluted | $ / shares | $ 4.42 | |||||
Automotive [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Company acquired | Business | 5 | 2 | ||||
Industrial [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Company acquired | Business | 4 | 1 | 1 | |||
Electrical/Electronic Materials [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Company acquired | Business | 1 | 2 | 1 | |||
Office Products [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Company acquired | Business | 3 | 2 | ||||
Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | 235,000,000 | $ 39,000,000 | $ 82,000,000 | $ 235,000,000 | ||
Weighted average amortization lives | 15 years | 18 years | 15 years | |||
Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | 141,000,000 | $ 28,000,000 | $ 141,000,000 | |||
Weighted average amortization lives | 40 years | 40 years | ||||
Non-Competition Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | 4,000,000 | $ 4,000,000 | ||||
Weighted average amortization lives | 1 year | |||||
GPC Asia Pacific [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | $ 590,000,000 | $ 166,000,000 | ||||
Other intangible assets acquired | $ 347,000,000 | |||||
Weighted average amortization lives | 26 years | |||||
Percentage of investment acquired | 70.00% | 30.00% | ||||
Cash acquired | $ 70,000,000 | |||||
Debt acquired | 230,000,000 | |||||
Annual revenue | $ 1,000,000,000 | |||||
Number of stores owned | Store | 500 | |||||
One-time positive purchase accounting pre-tax adjustments total | $ 33,000,000 | |||||
One-time positive purchase accounting pre-tax adjustments total per unit | $ / shares | $ 0.21 | |||||
Business combination, step acquisition, equity interest in acquiree, remeasurement gain | 59,000,000 | |||||
Business combination one time negative other purchase accounting adjustments | $ 5,000,000 | |||||
Fair value of 30% investment held prior to business combination | 234,000,000 | |||||
Acquired inventory adjustment to fair value | 21,000,000 | |||||
Total fair value consideration transferred | 824,000,000 | |||||
Sales included in statement of income and comprehensive income | $ 839,000,000 | |||||
Earnings per share | $ / shares | $ 0.43 | |||||
GPC Asia Pacific [Member] | Automotive [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Company acquired | Business | 1 | |||||
GPC Asia Pacific [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | $ 202,000,000 | |||||
Weighted average amortization lives | 16 years | |||||
GPC Asia Pacific [Member] | Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | $ 141,000,000 | |||||
Weighted average amortization lives | 40 years | |||||
GPC Asia Pacific [Member] | Non-Competition Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | $ 4,000,000 | |||||
Weighted average amortization lives | 1 year | |||||
GPC Asia Pacific [Member] | Cost of Sales [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination one time purchase accounting adjustments, post-closing sale of acquired inventory written up to fair value | $ 21,000,000 | |||||
GPC Asia Pacific [Member] | Selling, Administrative and Other Expenses [Member] | ||||||
Business Acquisition [Line Items] | ||||||
One-time gain and other adjustments | $ 54,000,000 |
Acquisitions - Business Acquisi
Acquisitions - Business Acquisition Consideration Transferred (Detail) - USD ($) $ in Thousands | Apr. 01, 2013 | Jan. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Cash | $ 120,000 | $ 260,000 | $ 650,000 | ||
GPC Asia Pacific [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 590,000 | $ 166,000 | |||
Fair value of 30% investment held prior to business combination | 234,000 | ||||
Total | $ 824,000 |
Acquisitions - Business Acqui71
Acquisitions - Business Acquisition Consideration Transferred (Parenthetical) (Detail) | Apr. 01, 2013 |
GPC Asia Pacific [Member] | |
Business Acquisition [Line Items] | |
Percentage of previously acquired investment | 30.00% |
Acquisitions - Fair Values of A
Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed on Acquisition Date (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 01, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 840,582 | $ 839,075 | $ 789,971 | |
GPC Asia Pacific [Member] | ||||
Business Acquisition [Line Items] | ||||
Trade accounts receivable | $ 94,000 | |||
Merchandise inventory | 306,000 | |||
Prepaid expenses and other current assets | 31,000 | |||
Property and equipment | 59,000 | |||
Intangible assets | 347,000 | |||
Other assets | 24,000 | |||
Total identifiable assets acquired | 861,000 | |||
Current liabilities | (224,000) | |||
Long-term debt | (230,000) | |||
Deferred tax liabilities and other | (125,000) | |||
Total liabilities assumed | (579,000) | |||
Net identifiable assets acquired | 282,000 | |||
Goodwill | 542,000 | |||
Net assets acquired | $ 824,000 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Income (loss) from continuing operations before income taxes, foreign | $ 118,762 | $ 138,915 | $ 193,438 |
Segment Data - Summary of Segme
Segment Data - Summary of Segment Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | |||||
Total net sales | $ 15,280,044 | $ 15,341,647 | $ 14,077,843 | $ 13,013,868 | $ 12,458,877 |
Total operating profit | 1,279,349 | 1,269,040 | 1,132,288 | 1,078,148 | 980,221 |
Intangible asset amortization | (34,878) | (36,867) | (28,987) | ||
Income before income taxes | 1,123,681 | 1,117,739 | 1,044,304 | 1,018,932 | 890,806 |
Total assets | 8,144,771 | 8,246,238 | 7,680,297 | 6,807,061 | 6,202,774 |
Total depreciation and amortization | 141,675 | 148,313 | 133,957 | 98,383 | 88,936 |
Intangible asset amortization | 34,878 | 36,867 | 28,987 | ||
Net property, plant and equipment | 648,217 | 670,102 | 670,061 | 566,365 | 500,204 |
Total capital expenditures | 109,544 | 107,681 | 124,063 | ||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 12,843,078 | 12,565,329 | 11,594,713 | 11,299,291 | 10,791,303 |
Net property, plant and equipment | 495,073 | 495,452 | 503,882 | 466,473 | 411,193 |
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 1,395,695 | 1,583,075 | 1,560,799 | 1,616,921 | 1,571,733 |
Net property, plant and equipment | 79,023 | 98,939 | 99,135 | 93,496 | 84,210 |
Australasia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 992,064 | 1,133,620 | 839,353 | ||
Net property, plant and equipment | 65,289 | 65,707 | 60,614 | ||
Mexico [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 119,349 | 127,806 | 131,787 | 127,754 | 118,867 |
Net property, plant and equipment | 8,832 | 10,004 | 6,430 | 6,396 | 4,801 |
Other Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | (70,142) | (68,183) | (48,809) | (30,098) | (23,026) |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total capital expenditures | 109,544 | 107,681 | 124,063 | 101,987 | 103,469 |
Operating Segments [Member] | Automotive [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 8,015,098 | 8,096,877 | 7,489,186 | 6,320,882 | 6,061,424 |
Total operating profit | 729,152 | 700,386 | 641,492 | 540,678 | 467,806 |
Total assets | 4,293,290 | 4,275,298 | 4,009,244 | 3,411,252 | 3,218,931 |
Total depreciation and amortization | 70,112 | 77,645 | 76,238 | 60,630 | 60,252 |
Total capital expenditures | 77,504 | 78,537 | 97,735 | 67,482 | 61,795 |
Operating Segments [Member] | Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 4,646,689 | 4,771,080 | 4,429,976 | 4,453,574 | 4,173,574 |
Total operating profit | 339,180 | 370,043 | 320,720 | 352,119 | 337,628 |
Total assets | 1,143,952 | 1,224,735 | 1,162,697 | 1,130,877 | 1,100,024 |
Total depreciation and amortization | 9,960 | 9,906 | 8,751 | 8,307 | 7,495 |
Total capital expenditures | 13,998 | 12,442 | 8,808 | 13,015 | 9,851 |
Operating Segments [Member] | Office Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 1,937,629 | 1,802,754 | 1,638,618 | 1,686,690 | 1,689,368 |
Total operating profit | 140,866 | 133,727 | 122,492 | 134,441 | 134,124 |
Total assets | 831,546 | 835,592 | 708,944 | 731,564 | 700,720 |
Total depreciation and amortization | 10,922 | 10,728 | 10,166 | 10,837 | 9,999 |
Total capital expenditures | 12,323 | 11,135 | 9,297 | 16,013 | 22,036 |
Operating Segments [Member] | Electrical/Electronic Materials [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 750,770 | 739,119 | 568,872 | 582,820 | 557,537 |
Total operating profit | 70,151 | 64,884 | 47,584 | 50,910 | 40,663 |
Total assets | 191,866 | 196,400 | 156,780 | 137,237 | 129,933 |
Total depreciation and amortization | 2,933 | 2,658 | 1,904 | 1,733 | 1,554 |
Total capital expenditures | 2,824 | 3,003 | 1,730 | 1,029 | 1,762 |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | (70,142) | (68,183) | (48,809) | (30,098) | (23,026) |
Interest expense, net | (20,354) | (24,192) | (24,330) | (19,619) | (24,608) |
Corporate expense | (100,436) | (90,242) | (34,667) | (26,606) | (58,033) |
Intangible asset amortization | (34,878) | (36,867) | (28,987) | (12,991) | (6,774) |
Goodwill and other intangible assets | 1,361,794 | 1,386,590 | 1,289,356 | 497,839 | 279,775 |
Intangible asset amortization | 34,878 | 36,867 | 28,987 | 12,991 | 6,774 |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 322,323 | 327,623 | 353,276 | 898,292 | 773,391 |
Total depreciation and amortization | 12,870 | 10,509 | 7,911 | 3,885 | 2,862 |
Total capital expenditures | $ 2,895 | $ 2,564 | $ 6,493 | $ 4,448 | $ 8,025 |
Financial Statement Schedule 75
Financial Statement Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts [Abstract] | |||
Balance at beginning of period | $ 11,836,000 | $ 14,423,000 | $ 19,180,190 |
Charged to costs and expenses | 12,373,000 | 7,192,000 | 8,691,000 |
Deductions | (13,516,000) | (9,779,000) | (13,448,190) |
Balance at End of Period | $ 10,693,000 | $ 11,836,000 | $ 14,423,000 |