Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | GPC |
Entity Registrant Name | GENUINE PARTS CO |
Entity Central Index Key | 40,987 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 149,623,104 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 205,135 | $ 211,631 |
Trade accounts receivable, less allowance for doubtful accounts (2016 - $12,699; 2015 - $10,693) | 1,981,651 | 1,822,419 |
Merchandise inventories, net - at lower of cost or market | 3,074,641 | 2,999,966 |
Prepaid expenses and other current assets | 508,841 | 521,300 |
TOTAL CURRENT ASSETS | 5,770,268 | 5,555,316 |
Goodwill | 877,282 | 840,582 |
Other intangible assets, less accumulated amortization | 535,703 | 521,213 |
Deferred tax assets | 114,917 | 118,525 |
Other assets | 504,153 | 460,918 |
Property, plant and equipment, less accumulated depreciation (2016 - $935,496; 2015 - $902,917) | 648,204 | 648,217 |
TOTAL ASSETS | 8,450,527 | 8,144,771 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 2,961,318 | 2,821,526 |
Current portion of debt | 450,000 | 375,000 |
Dividends payable | 98,339 | 92,595 |
Income taxes payable | 46,137 | 6,762 |
Other current liabilities | 656,132 | 644,771 |
TOTAL CURRENT LIABILITIES | 4,211,926 | 3,940,654 |
Long-term debt | 250,000 | 250,000 |
Pension and other post-retirement benefit liabilities | 231,652 | 284,235 |
Deferred tax liabilities | 50,736 | 50,684 |
Other long-term liabilities | 462,501 | 459,956 |
EQUITY: | ||
Preferred stock, par value - $1 per share Authorized - 10,000,000 shares - None issued | 0 | 0 |
Common stock, par value - $1 per share Authorized - 450,000,000 shares - Issued and outstanding - 2016 - 149,623,104 shares; 2015 - 150,081,474 shares | 149,623 | 150,081 |
Additional paid-in capital | 45,044 | 41,353 |
Retained earnings | 3,899,582 | 3,885,751 |
Accumulated other comprehensive loss | (862,519) | (930,618) |
TOTAL PARENT EQUITY | 3,231,730 | 3,146,567 |
Noncontrolling interests in subsidiaries | 11,982 | 12,675 |
TOTAL EQUITY | 3,243,712 | 3,159,242 |
TOTAL LIABILITIES AND EQUITY | $ 8,450,527 | $ 8,144,771 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 12,699 | $ 10,693 |
Property, plant and equipment, less allowance for depreciation | $ 935,496 | $ 902,917 |
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 | 149,623,104 | 150,081,474 |
Common stock, shares outstanding | 149,623,104 | 150,081,474 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 3,718,267 | $ 3,736,051 |
Cost of goods sold | 2,613,796 | 2,623,232 |
Gross profit | 1,104,471 | 1,112,819 |
Operating expenses: | ||
Selling, administrative, and other expenses | 823,172 | 825,554 |
Depreciation and amortization | 34,654 | 35,884 |
Total operating expenses | 857,826 | 861,438 |
Income before income taxes | 246,645 | 251,381 |
Income taxes | 88,620 | 90,371 |
Net income | $ 158,025 | $ 161,010 |
Basic net income per common share | $ 1.06 | $ 1.05 |
Diluted net income per common share | 1.05 | 1.05 |
Dividends declared per common share | $ 0.6575 | $ 0.6150 |
Weighted average common shares outstanding | 149,593 | 152,656 |
Dilutive effect of stock options and non-vested restricted stock awards | 749 | 918 |
Weighted average common shares outstanding - assuming dilution | 150,342 | 153,574 |
Comprehensive income | $ 226,124 | $ 53,539 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 158,025 | $ 161,010 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 34,654 | 35,884 |
Share-based compensation | 4,249 | 3,316 |
Excess tax benefits from share-based compensation | (5,144) | (3,734) |
Changes in operating assets and liabilities | (56,739) | (73,964) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 135,045 | 122,512 |
INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (11,670) | (16,427) |
Acquisitions and other investing activities | (73,625) | (30,129) |
NET CASH USED IN INVESTING ACTIVITIES | (85,295) | (46,556) |
FINANCING ACTIVITIES: | ||
Proceeds from debt | 975,000 | 779,910 |
Payments on debt | (900,000) | (650,000) |
Share-based awards exercised, net of taxes paid | (5,586) | (3,804) |
Excess tax benefits from share-based compensation | 5,144 | 3,734 |
Dividends paid | (92,596) | (88,039) |
Purchases of stock | (46,431) | (84,252) |
NET CASH USED IN FINANCING ACTIVITIES | (64,469) | (42,451) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 8,223 | (4,740) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (6,496) | 28,765 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 211,631 | 137,730 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 205,135 | $ 166,495 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note A – Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company”) for the year ended December 31, 2015. Accordingly, the unaudited interim condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2015 Annual Report on Form 10-K. The preparation of interim financial statements requires management to make estimates and assumptions for the amounts reported in the condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its interim condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation, which is performed each year-end. Reserves for bad debts and customer sales returns are estimated and accrued on an interim basis based upon historical experience. Volume incentives are estimated based upon cumulative and projected purchasing levels. The estimates and assumptions for interim reporting may change upon final determination at year-end, and such changes may be significant. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three month period ended March 31, 2016 are not necessarily indicative of results for the entire year. The Company has evaluated subsequent events through the date the financial statements covered by this quarterly report were issued. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note B – Segment Information Three Months Ended March 31, 2016 2015 (in thousands) Net sales: Automotive $ 1,932,178 $ 1,898,508 Industrial 1,152,627 1,181,823 Office products 476,654 490,298 Electrical/electronic materials 175,847 182,046 Other (19,039 ) (16,624 ) Total net sales $ 3,718,267 $ 3,736,051 Operating profit: Automotive $ 153,710 $ 150,641 Industrial 81,833 87,769 Office products 34,204 36,524 Electrical/electronic materials 14,841 15,463 Total operating profit 284,588 290,397 Interest expense, net (4,822 ) (5,327 ) Other intangible assets amortization (8,760 ) (8,604 ) Other, net (24,361 ) (25,085 ) Income before income taxes $ 246,645 $ 251,381 Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item “Other” represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Company’s condensed consolidated statements of income and comprehensive income. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Note C – Other Comprehensive Income (Loss) The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below. Three Months Ended March 31, 2016 2015 (in thousands) Net income $ 158,025 $ 161,010 Other comprehensive income (loss): Foreign currency translation 63,366 (113,309 ) Pension and other post-retirement benefit adjustments: Recognition of prior service credit, net of tax (222 ) (240 ) Recognition of actuarial loss, net of tax 4,955 6,078 Net actuarial loss, net of tax — — Total other comprehensive income (loss) 68,099 (107,471 ) Comprehensive income $ 226,124 $ 53,539 The following tables present the changes in accumulated other comprehensive loss by component for the three months ended March 31: 2016 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (535,634 ) $ (394,984 ) $ (930,618 ) Other comprehensive income before reclassifications, net of tax — 63,366 63,366 Amounts reclassified from accumulated other comprehensive loss, net of tax 4,733 — 4,733 Net current period other comprehensive income 4,733 63,366 68,099 Ending balance, March 31 $ (530,901 ) $ (331,618 ) $ (862,519 ) 2015 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (533,213 ) $ (186,998 ) $ (720,211 ) Other comprehensive loss before reclassifications, net of tax — (113,309 ) (113,309 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 5,838 — 5,838 Net current period other comprehensive income (loss) 5,838 (113,309 ) (107,471 ) Ending balance, March 31 $ (527,375 ) $ (300,307 ) $ (827,682 ) The accumulated other comprehensive loss components related to the pension benefits are included in the computation of net periodic benefit income in the employee benefit plans footnote. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note D – Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, The FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note E – Share-Based Compensation As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements in its 2015 Annual Report on Form 10-K, Options to purchase approximately 1.3 million shares of common stock were outstanding but excluded from the computation of diluted earnings per share for the three month period ended March 31, 2016, as compared to approximately 0.6 million shares for the three month period ended March 31, 2015. These options were excluded from the computation of diluted net income per common share because the options’ exercise prices were greater than the average market price of the common stock. On April 1, 2016, the Company granted approximately 722,000 SARs and 170,000 RSUs. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note F – Employee Benefit Plans Net periodic benefit income for the pension plans included the following components for the three months ended March 31: Pension Benefits 2016 2015 (in thousands) Service cost $ 2,027 $ 2,387 Interest cost 26,091 24,612 Expected return on plan assets (39,138 ) (37,647 ) Amortization of prior service credit (108 ) (141 ) Amortization of actuarial loss 7,795 9,613 Net periodic benefit income $ (3,333 ) $ (1,176 ) Pension benefits also include amounts related to a supplemental retirement plan. During the three months ended March 31, 2016, the Company made a $38.7 million contribution to the pension plan. |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | Note G – Guarantees The Company guarantees the borrowings of certain independently controlled automotive parts stores (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At March 31, 2016, the Company was in compliance with all such covenants. At March 31, 2016, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $350.6 million. These loans generally mature over periods from one to six years. In the event that the Company is required to make payments in connection with guaranteed obligations of the independents or the affiliates, the Company would obtain and liquidate certain collateral (e.g., accounts receivable and inventory) to recover all or a portion of the amounts paid under the guarantees. When it is deemed probable that the Company will incur a loss in connection with a guarantee, a liability is recorded equal to this estimated loss. To date, the Company has had no significant losses in connection with guarantees of independents’ and affiliates’ borrowings. As of March 31, 2016, the Company has recognized certain assets and liabilities amounting to $37.0 million each for the guarantees related to the independents’ and affiliates’ borrowings. These assets and liabilities are included in other assets and other long-term liabilities in the condensed consolidated balance sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note H – Fair Value of Financial Instruments The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade accounts receivable, 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 March 31, 2016, the carrying value and the fair value of fixed rate debt were approximately $500.0 million and $505.5 million, respectively. The fair value of fixed rate debt is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk and maturity. The carrying value of the short-term fixed rate debt of $250.0 million is included in “Current portion of debt”, with the long-term portion of $250.0 million included in “Long-term debt,” in the accompanying condensed consolidated balance sheets. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company”) for the year ended December 31, 2015. Accordingly, the unaudited interim condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2015 Annual Report on Form 10-K. |
Use of Estimates | The preparation of interim financial statements requires management to make estimates and assumptions for the amounts reported in the condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its interim condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation, which is performed each year-end. Reserves for bad debts and customer sales returns are estimated and accrued on an interim basis based upon historical experience. Volume incentives are estimated based upon cumulative and projected purchasing levels. The estimates and assumptions for interim reporting may change upon final determination at year-end, and such changes may be significant. |
Segment Reporting | Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item “Other” represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Company’s condensed consolidated statements of income and comprehensive income. |
Recent Accounting Pronouncements | In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, The FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Share-based Compensation, Option and Incentive Plans | As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements in its 2015 Annual Report on Form 10-K, the Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in shares of common stock, equal to the excess, if any, of the fair market value of the Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one to five years and are expensed accordingly on a straight-line basis. The Company issues new shares upon exercise or conversion of awards under these plans. Most awards may be exercised or converted to shares not earlier than twelve months nor later than ten years from the date of grant. |
Consolidation, Variable Interest Entity | The Company guarantees the borrowings of certain independently controlled automotive parts stores (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At March 31, 2016, the Company was in compliance with all such covenants. At March 31, 2016, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $350.6 million. These loans generally mature over periods from one to six years. In the event that the Company is required to make payments in connection with guaranteed obligations of the independents or the affiliates, the Company would obtain and liquidate certain collateral (e.g., accounts receivable and inventory) to recover all or a portion of the amounts paid under the guarantees. When it is deemed probable that the Company will incur a loss in connection with a guarantee, a liability is recorded equal to this estimated loss. |
Fair Value of Financial Instruments | The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective fair values based on the short-term nature of these instruments. At March 31, 2016, the carrying value and the fair value of fixed rate debt were approximately $500.0 million and $505.5 million, respectively. The fair value of fixed rate debt is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk and maturity. The carrying value of the short-term fixed rate debt of $250.0 million is included in “Current portion of debt”, with the long-term portion of $250.0 million included in “Long-term debt,” in the accompanying condensed consolidated balance sheets. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Three Months Ended March 31, 2016 2015 (in thousands) Net sales: Automotive $ 1,932,178 $ 1,898,508 Industrial 1,152,627 1,181,823 Office products 476,654 490,298 Electrical/electronic materials 175,847 182,046 Other (19,039 ) (16,624 ) Total net sales $ 3,718,267 $ 3,736,051 Operating profit: Automotive $ 153,710 $ 150,641 Industrial 81,833 87,769 Office products 34,204 36,524 Electrical/electronic materials 14,841 15,463 Total operating profit 284,588 290,397 Interest expense, net (4,822 ) (5,327 ) Other intangible assets amortization (8,760 ) (8,604 ) Other, net (24,361 ) (25,085 ) Income before income taxes $ 246,645 $ 251,381 |
Other Comprehensive Income (L16
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Comprehensive Income | The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below. Three Months Ended March 31, 2016 2015 (in thousands) Net income $ 158,025 $ 161,010 Other comprehensive income (loss): Foreign currency translation 63,366 (113,309 ) Pension and other post-retirement benefit adjustments: Recognition of prior service credit, net of tax (222 ) (240 ) Recognition of actuarial loss, net of tax 4,955 6,078 Net actuarial loss, net of tax — — Total other comprehensive income (loss) 68,099 (107,471 ) Comprehensive income $ 226,124 $ 53,539 |
Changes in Accumulated Other Comprehensive Loss | The following tables present the changes in accumulated other comprehensive loss by component for the three months ended March 31: 2016 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (535,634 ) $ (394,984 ) $ (930,618 ) Other comprehensive income before reclassifications, net of tax — 63,366 63,366 Amounts reclassified from accumulated other comprehensive loss, net of tax 4,733 — 4,733 Net current period other comprehensive income 4,733 63,366 68,099 Ending balance, March 31 $ (530,901 ) $ (331,618 ) $ (862,519 ) 2015 Changes in Accumulated Other Pension and Foreign Total (in thousands) Beginning balance, January 1 $ (533,213 ) $ (186,998 ) $ (720,211 ) Other comprehensive loss before reclassifications, net of tax — (113,309 ) (113,309 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 5,838 — 5,838 Net current period other comprehensive income (loss) 5,838 (113,309 ) (107,471 ) Ending balance, March 31 $ (527,375 ) $ (300,307 ) $ (827,682 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Income for the Pension Plans | Net periodic benefit income for the pension plans included the following components for the three months ended March 31: Pension Benefits 2016 2015 (in thousands) Service cost $ 2,027 $ 2,387 Interest cost 26,091 24,612 Expected return on plan assets (39,138 ) (37,647 ) Amortization of prior service credit (108 ) (141 ) Amortization of actuarial loss 7,795 9,613 Net periodic benefit income $ (3,333 ) $ (1,176 ) |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 3,718,267 | $ 3,736,051 |
Total operating profit | 284,588 | 290,397 |
Income before income taxes | 246,645 | 251,381 |
Operating Segments [Member] | Automotive [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 1,932,178 | 1,898,508 |
Total operating profit | 153,710 | 150,641 |
Operating Segments [Member] | Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 1,152,627 | 1,181,823 |
Total operating profit | 81,833 | 87,769 |
Operating Segments [Member] | Office Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 476,654 | 490,298 |
Total operating profit | 34,204 | 36,524 |
Operating Segments [Member] | Electrical/Electronic Materials [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 175,847 | 182,046 |
Total operating profit | 14,841 | 15,463 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | (19,039) | (16,624) |
Interest expense, net | (4,822) | (5,327) |
Other intangible assets amortization | (8,760) | (8,604) |
Other, net | $ (24,361) | $ (25,085) |
Other Comprehensive Loss - Comp
Other Comprehensive Loss - Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Net income | $ 158,025 | $ 161,010 |
Other comprehensive income (loss): | ||
Foreign currency translation | 63,366 | (113,309) |
Pension and other post-retirement benefit adjustments: | ||
Recognition of prior service credit, net of tax | (222) | (240) |
Recognition of actuarial loss, net of tax | 4,955 | 6,078 |
Net actuarial loss, net of tax | 0 | 0 |
Net current period other comprehensive income (loss) | 68,099 | (107,471) |
Comprehensive income | $ 226,124 | $ 53,539 |
Other Comprehensive Loss - Chan
Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Components of Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning balance | $ (930,618) | $ (720,211) |
Other comprehensive income (loss) before reclassifications, net of tax | 63,366 | (113,309) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 4,733 | 5,838 |
Net current period other comprehensive income (loss) | 68,099 | (107,471) |
Ending balance | (862,519) | (827,682) |
Pension and Other Post-Retirement Benefits [Member] | ||
Components of Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning balance | (535,634) | (533,213) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 4,733 | 5,838 |
Net current period other comprehensive income (loss) | 4,733 | 5,838 |
Ending balance | (530,901) | (527,375) |
Foreign Currency Translation [Member] | ||
Components of Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning balance | (394,984) | (186,998) |
Other comprehensive income (loss) before reclassifications, net of tax | 63,366 | (113,309) |
Net current period other comprehensive income (loss) | 63,366 | (113,309) |
Ending balance | $ (331,618) | $ (300,307) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | Apr. 01, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost related to nonvested awards, unrecognized | $ 26.2 | $ 33 | ||
Weighted-average period to recognize compensation cost (in years) | 3 years | |||
Aggregate intrinsic value for outstanding SARs and RSUs | $ 133.1 | |||
Aggregate intrinsic value for vested SARs and RSUs | $ 79.1 | |||
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 | $ 4.2 | $ 3.3 | ||
Outstanding options to purchase common shares not included in dilutive shares | 1,300,000 | 600,000 | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award granted vesting period range | 1 year | |||
Share-based payment, awards exercise | 12 months | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award granted vesting period range | 5 years | |||
Share-based payment, awards exercise | 10 years | |||
Stock Appreciation Rights [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 722,000 | |||
Restricted Stock Units [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 170,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Income for the Pension Plans (Detail) - Pension Benefits [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2,027 | $ 2,387 |
Interest cost | 26,091 | 24,612 |
Expected return on plan assets | (39,138) | (37,647) |
Amortization of prior service credit | (108) | (141) |
Amortization of actuarial loss | 7,795 | 9,613 |
Net periodic benefit income | $ (3,333) | $ (1,176) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Contribution to the pension plan | $ 38.7 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Guarantor Obligations [Line Items] | |
Total borrowings of the independents and affiliates subject to guarantee | $ 350.6 |
Guarantees related to borrowings, other assets | 37 |
Guarantees related to borrowings, other long-term liabilities | $ 37 |
Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity | 1 year |
Maximum [Member] | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity | 6 years |
Fair Value of Financial Instr25
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | Mar. 31, 2016USD ($) |
Fair Value Disclosures [Abstract] | |
Carrying value of fixed rate debt | $ 500 |
Fair value of fixed rate debt | 505.5 |
Short-term Debt | 250 |
Long-term debt | $ 250 |