Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 13, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 145,943,765 | ||
Entity Public Float | $ 12,685,700,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 333,547 | $ 314,899 |
Trade accounts receivable, net | 2,493,636 | 2,421,563 |
Merchandise inventories, net | 3,609,389 | 3,771,089 |
Prepaid expenses and other current assets | 1,139,118 | 805,342 |
Total current assets | 7,575,690 | 7,312,893 |
Goodwill | 2,128,776 | 2,153,988 |
Other intangible assets, less accumulated amortization | 1,411,642 | 1,400,392 |
Deferred tax assets | 29,509 | 40,158 |
Other assets | 510,192 | 568,248 |
Property, plant, and equipment, net | 1,027,231 | 936,702 |
Total assets | 12,683,040 | 12,412,381 |
Current liabilities: | ||
Trade accounts payable | 3,995,789 | 3,634,859 |
Current portion of debt | 711,147 | 694,989 |
Other current liabilities | 1,088,428 | 1,045,177 |
Dividends payable | 105,369 | 99,000 |
Total current liabilities | 5,900,733 | 5,474,025 |
Long-term debt | 2,432,133 | 2,550,020 |
Pension and other post-retirement benefit liabilities | 235,228 | 229,868 |
Deferred tax liabilities | 196,843 | 193,308 |
Other long-term liabilities | 446,112 | 501,004 |
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 - 2018 - 145,936,613 shares and 2017 - 146,652,615 shares | 145,937 | 146,653 |
Additional paid-in capital | 78,380 | 68,126 |
Accumulated other comprehensive loss | (1,115,078) | (852,592) |
Retained earnings | 4,341,212 | 4,049,965 |
Total parent equity | 3,450,451 | 3,412,152 |
Noncontrolling interests in subsidiaries | 21,540 | 52,004 |
Total equity | 3,471,991 | 3,464,156 |
Total liabilities and equity | $ 12,683,040 | $ 12,412,381 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 145,936,613 | 146,652,615 |
Common stock, shares outstanding (in shares) | 145,936,613 | 146,652,615 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 18,735,073 | $ 16,308,801 | $ 15,339,713 |
Cost of goods sold | 12,751,286 | 11,402,403 | 10,740,106 |
Gross margin | 5,983,787 | 4,906,398 | 4,599,607 |
Operating expenses: | |||
Selling, administrative, and other expenses | 4,615,290 | 3,726,233 | 3,391,971 |
Depreciation and amortization | 241,635 | 167,691 | 147,487 |
Provision for doubtful accounts | 17,147 | 13,932 | 11,515 |
Total operating expenses | 4,874,072 | 3,907,856 | 3,550,973 |
Non-operating expenses (income): | |||
Interest expense | 101,925 | 41,486 | 21,084 |
Other | (67,822) | (52,212) | (46,790) |
Total non-operating expenses (income) | 34,103 | (10,726) | (25,706) |
Income before income taxes | 1,075,612 | 1,009,268 | 1,074,340 |
Income taxes | 265,138 | 392,511 | 387,100 |
Net income | $ 810,474 | $ 616,757 | $ 687,240 |
Basic net income per common share (in dollars per share) | $ 5.53 | $ 4.19 | $ 4.61 |
Diluted net income per common share (in dollars per share) | $ 5.50 | $ 4.18 | $ 4.59 |
Weighted average common shares outstanding (in shares) | 146,657 | 147,140 | 149,051 |
Dilutive effect of stock options and nonvested restricted stock awards (in shares) | 584 | 561 | 753 |
Weighted average common shares outstanding — assuming dilution (in shares) | 147,241 | 147,701 | 149,804 |
Net income | $ 810,474 | $ 616,757 | $ 687,240 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment | (233,235) | 137,694 | (8,957) |
Net gain (loss) on cash flow and net investment hedges, net of income taxes of 2018 — $10,398; 2017 — $9,711 | 28,114 | (17,388) | 0 |
Pension and postretirement benefit adjustments, net of income taxes of 2018 — $21,297; 2017 — $20,539; 2016 — $50,144 | (57,365) | 40,123 | (73,446) |
Other comprehensive (loss) income, net of tax | (262,486) | 160,429 | (82,403) |
Comprehensive income | $ 547,988 | $ 777,186 | $ 604,837 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net investment hedge, tax | $ 10,398 | $ 9,711 | |
Pension and postretirement benefit adjustments, tax | $ 21,297 | $ (20,539) | $ 50,144 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total Parent Equity [Member] | Non-Controlling Interest in Subsidiaries [Member] |
Beginning balance (in shares) at Dec. 31, 2015 | 150,081,474 | ||||||
Beginning balance at Dec. 31, 2015 | $ 3,159,242 | $ 150,081 | $ 41,353 | $ (930,618) | $ 3,885,751 | $ 3,146,567 | $ 12,675 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 687,240 | 687,240 | 687,240 | ||||
Other comprehensive (loss) income, net of tax | (82,403) | (82,403) | (82,403) | ||||
Cash dividends declared | (391,852) | (391,852) | (391,852) | ||||
Share-based awards exercised, including tax benefit | (4,126) | $ 341 | (4,467) | (4,126) | |||
Share-based awards exercised, including tax benefit (in shares) | 340,703 | ||||||
Share-based compensation | 19,719 | 19,719 | 19,719 | ||||
Purchase of stock (in shares) | (2,011,755) | ||||||
Purchase of stock | (181,417) | $ (2,012) | (179,405) | (181,417) | |||
Noncontrolling interest activities | 953 | 953 | |||||
Ending balance (in shares) at Dec. 31, 2016 | 148,410,422 | ||||||
Ending balance at Dec. 31, 2016 | 3,207,356 | $ 148,410 | 56,605 | (1,013,021) | 4,001,734 | 3,193,728 | 13,628 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 616,757 | 616,757 | 616,757 | ||||
Other comprehensive (loss) income, net of tax | 160,429 | 160,429 | 160,429 | ||||
Cash dividends declared | (396,891) | (396,891) | (396,891) | ||||
Share-based awards exercised, including tax benefit | (5,239) | $ 132 | (5,371) | (5,239) | |||
Share-based awards exercised, including tax benefit (in shares) | 131,232 | ||||||
Share-based compensation | 16,892 | 16,892 | 16,892 | ||||
Purchase of stock (in shares) | (1,889,039) | ||||||
Purchase of stock | (173,524) | $ (1,889) | (171,635) | (173,524) | |||
Noncontrolling interest activities | 38,376 | 38,376 | |||||
Ending balance (in shares) at Dec. 31, 2017 | 146,652,615 | ||||||
Ending balance at Dec. 31, 2017 | 3,464,156 | $ 146,653 | 68,126 | (852,592) | 4,049,965 | 3,412,152 | 52,004 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 810,474 | 810,474 | 810,474 | ||||
Other comprehensive (loss) income, net of tax | (262,486) | (262,486) | (262,486) | ||||
Cash dividends declared | (422,352) | (422,352) | (422,352) | ||||
Share-based awards exercised, including tax benefit | $ (10,227) | $ 235 | (10,462) | (10,227) | |||
Share-based awards exercised, including tax benefit (in shares) | 772,000 | 235,058 | |||||
Share-based compensation | $ 20,716 | 20,716 | 20,716 | ||||
Purchase of stock (in shares) | (951,060) | ||||||
Purchase of stock | (91,983) | $ (951) | (91,032) | (91,983) | |||
Noncontrolling interest activities | (30,464) | (30,464) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 145,936,613 | ||||||
Ending balance at Dec. 31, 2018 | $ 3,471,991 | $ 145,937 | $ 78,380 | $ (1,115,078) | $ 4,341,212 | $ 3,450,451 | $ 21,540 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 2.88 | $ 2.70 | $ 2.63 |
Tax benefit from share-based awards exercised | $ 4,232 | $ 3,134 | $ 12,021 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 810,474 | $ 616,757 | $ 687,240 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 241,635 | 167,691 | 147,487 |
Excess tax benefits from share-based compensation | (4,232) | (3,134) | (12,021) |
Loss (gain) on sale of property, plant, and equipment | 1,579 | (3,989) | (15,237) |
Deferred income taxes | 3,891 | 65,990 | 33,226 |
Share-based compensation | 20,716 | 16,892 | 19,719 |
Foreign exchange gain | 0 | (14,051) | 0 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (72,041) | (19,273) | (53,544) |
Merchandise inventories, net | (73,173) | (9,923) | (64,214) |
Trade accounts payable | 364,639 | 61,474 | 240,717 |
Other short-term assets and liabilities | (97,864) | (1,544) | 37,271 |
Other long-term assets and liabilities | (50,460) | (61,847) | (74,566) |
Changes in operating assets and liabilities | 334,690 | 198,286 | 258,838 |
Net cash provided by operating activities | 1,145,164 | 815,043 | 946,078 |
Investing activities | |||
Purchases of property, plant and equipment | (232,422) | (156,760) | (160,643) |
Proceeds from sale of property, plant, and equipment | 14,665 | 21,275 | 28,811 |
Acquisition of businesses and other investing activities | (278,367) | (1,494,795) | (462,167) |
Net cash used in investing activities | (496,124) | (1,630,280) | (593,999) |
Financing activities | |||
Proceeds from debt | 5,064,291 | 6,630,294 | 4,350,000 |
Payments on debt | (5,124,265) | (4,350,222) | (4,100,000) |
Payments on acquired debt | 0 | (833,775) | 0 |
Share-based awards exercised | (10,227) | (5,239) | (16,147) |
Excess tax benefits from share-based compensation | 0 | 0 | 12,021 |
Dividends paid | (415,983) | (395,475) | (386,863) |
Purchase of stock | (91,983) | (173,524) | (181,417) |
Other financing activities | (30,663) | 0 | 0 |
Net cash (used in) provided by financing activities | (608,830) | 872,059 | (322,406) |
Effect of exchange rate changes on cash | (21,562) | 15,198 | 1,575 |
Net increase in cash and cash equivalents | 18,648 | 72,020 | 31,248 |
Cash and cash equivalents at beginning of year | 314,899 | 242,879 | 211,631 |
Cash and cash equivalents at end of year | 333,547 | 314,899 | 242,879 |
Supplemental disclosures of cash flow information | |||
Income taxes | 236,536 | 298,827 | 374,865 |
Interest | $ 102,131 | $ 38,401 | $ 19,043 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 parts and materials and business products. The Company serves a diverse customer base through approximately 3,100 locations in North America, Australasia and Europe 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 Refer to the revenue recognition footnote for additional information related to the Company's revenue recognition policy. 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, 2018 , 2017 , and 2016 , the Company recorded provisions for doubtful accounts of approximately $17,147 , $13,932 , and $11,515 , respectively. At December 31, 2018 and 2017 , the allowance for doubtful accounts was approximately $21,888 and $17,612 , respectively. Merchandise Inventories, Including Consideration Received From Vendors Merchandise inventories are valued at the lower of cost or net realizable value. Cost is determined by the last-in, first-out ("LIFO") method for a majority of U.S. automotive and industrial parts, and by the first-in, first-out ("FIFO") method for business products and certain non-U.S. and other inventories. If the FIFO method had been used for all inventories, cost would have been approximately $479,500 and $440,550 higher than reported at December 31, 2018 and 2017 , respectively. During 2017 and 2016, reductions in industrial parts inventories resulted in liquidations of LIFO inventory layers, which reduced cost of goods sold by approximately $2,000 and $6,000 , respectively. There were no LIFO liquidations in 2018. 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 2019 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 amounts due from vendors, prepaid expenses, and income and other taxes receivable. Upon adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), the Company also began classifying its estimate of merchandise returns expected in the next twelve months, which was $233,192 as of December 31, 2018 , in prepaid expenses and other current assets. This estimate was historically classified in merchandise inventories, net and the amount was $203,589 as of December 31, 2017. 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 (a component). A component 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. To review goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a single reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of the intangible asset is less than its carrying value, then a two-step quantitative goodwill impairment test is performed. The first step is to compare the fair value of a reporting unit to its carrying value. The Company typically uses discounted cash flow models to determine the fair value of its reporting units. The assumptions used in these models are consistent with those the Company believes hypothetical marketplace participants would use. If the fair value of a reporting unit is less than its carrying amount, then the second step of the impairment test must be performed in order to determine the amount of impairment loss (if any). The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The Company completed both qualitative and quantitative assessments for the year ended December 31, 2018. Based on these analyses, the Company determined that the fair value of its reporting units are in excess of their carrying amounts and that there were no indicators that goodwill was impaired. Therefore, no impairments were recognized for the years ended December 31, 2018 , 2017 , or 2016 . No events or changes in circumstances have occurred since the date of the Company's most recent annual impairment test that would more likely than not reduce the fair value of the reporting unit below its carrying amount. 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 Assets Other assets consist primarily of cash surrender value of life insurance policies, equity method investments, guarantee fees receivable, and deferred compensation benefits. Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Depreciation and amortization are primarily determined on a straight-line basis over the following estimated useful lives of each asset: buildings and improvements, 10 to 40 years; machinery and equipment, 5 to 15 years. Other Current Liabilities Other current liabilities consist primarily of reserves for sales returns expected within the next year, accrued compensation, accrued customer incentives, accrued income and other taxes, and other reserves for expenses incurred. Other Long-term Liabilities Other long-term liabilities consist primarily of reserves for sales returns expected after the next year, guarantee obligations, accrued taxes, deferred rent and other non-current obligations. 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, 2018 2017 Foreign currency translation $ (499,482 ) $ (266,247 ) Unrealized gain (loss) on cash flow and net investment hedges, net of tax 10,726 (17,388 ) Unrecognized net actuarial loss, net of tax (623,363 ) (566,876 ) Unrecognized prior service cost, net of tax (2,959 ) (2,081 ) Total accumulated other comprehensive loss $ (1,115,078 ) $ (852,592 ) The following table presents the changes in accumulated other comprehensive loss by component for the years ended on December 31, 2018 and 2017 : Changes in Accumulated Other Comprehensive Loss by Component Pension Benefits Other Post-Retirement Benefits Cash Flow and Net Investment Hedges Foreign Currency Translation Total Beginning balance, January 1, 2017 $ (607,468 ) $ (1,612 ) $ — $ (403,941 ) $ (1,013,021 ) Other comprehensive income (loss) before reclassifications, net of tax 16,640 307 (17,388 ) 137,694 137,253 Amounts reclassified from accumulated other comprehensive loss, net of tax 23,385 (209 ) — — 23,176 Net current period other comprehensive income (loss) 40,025 98 (17,388 ) 137,694 160,429 Ending balance, December 31, 2017 (567,443 ) (1,514 ) (17,388 ) (266,247 ) (852,592 ) Other comprehensive (loss) income before reclassifications, net of tax (85,677 ) 20 26,563 (233,235 ) (292,329 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 28,581 (289 ) 1,551 — 29,843 Net current period other comprehensive (loss) income (57,096 ) (269 ) 28,114 (233,235 ) (262,486 ) Ending balance, December 31, 2018 $ (624,539 ) $ (1,783 ) $ 10,726 $ (499,482 ) $ (1,115,078 ) 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 and related to the cash flow and net investment hedges are included in the derivatives and hedging footnote. Business Combinations From time to time, the Company enters into business combinations. The Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. The Company measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires the Company to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. This method also requires the Company to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If the Company is required to adjust provisional amounts that were recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on the Company's consolidated financial statements. Significant estimates and assumptions in estimating the fair value of acquired customer relationships and other identifiable intangible assets include future cash flows that the Company expects to generate from the acquired assets. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could record impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If the Company estimates the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. 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 and term loan approximate their respective fair values based on the short-term nature of these instruments. At December 31, 2018 and 2017 , the fair value of fixed rate debt was approximately $1,427,381 and $1,497,179 , 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, 2018 and 2017 , the carrying value of fixed rate debt, net of debt issuance costs, was $1,466,803 and $1,506,400 , respectively, and is included in long-term and short-term debt in the consolidated balance sheets. Derivatives and Hedging The Company is exposed to various risks arising from business operations and market conditions, including fluctuations in interest rates and certain foreign currencies. When deemed appropriate, the Company uses derivative and non-derivative instruments as risk management tools to mitigate the potential impact of interest rate and foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in the Company’s earnings and cash flows associated with changes in these rates. Derivative financial instruments are not used for trading or other speculative purposes. The Company has not historically incurred, and does not expect to incur in the future, any losses as a result of counterparty default related to derivative instruments. The Company formally documents relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking cash flow hedges to specific forecasted transactions or variability of cash flow to be paid. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative and non-derivative instruments that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. When a designated instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, hedge accounting is discontinued prospectively. 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 $390,000 , $290,000 , and $230,000 , for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Advertising Costs Advertising costs are expensed as incurred and totaled $204,700 , $166,000 , and $153,100 in the years ended December 31, 2018 , 2017 , and 2016 , 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. Forfeitures are accounted for as they occur. The Company issues new shares upon exercise or conversion of awards under these plans. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. In addition, valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. In making this determination, the Company considers all available positive and negative evidence including projected future taxable income, future reversals of existing temporary differences, recent financial operations and tax planning strategies. The Company recognizes a tax benefit from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. 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 1,490 , 1,920 , and 1,290 shares of common stock ranging from $85 — $100 per share were outstanding at December 31, 2018 , 2017 , and 2016 , 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 Revenue from Contracts with Customers (Topic 606) In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, which creates a single, comprehensive revenue recognition model for recognizing revenue from contracts with customers. The Company adopted ASU 2014-09 and its amendments on January 1, 2018. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than were required under previously existing guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. ASU 2014-09 did not result in a significant change in the judgment or timing associated with the recognition of revenue from the sale of the Company’s products or services. See the revenue recognition footnote for additional information. Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which, among other things, requires an entity to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, including operating leases. Expanded disclosures with additional qualitative and quantitative information will also be required. ASU 2016-02 and its amendments are effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The standard should be applied using a retrospective transition approach. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company will adopt ASU 2016-02 as of January 1, 2019 and apply the transition election. The Company also will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, will allow the Company to carryforward its historical lease classifications. In addition, the Company is not electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company will recognize those lease payments in the consolidated statements of income and comprehensive income on a straight-line basis over the lease term. The Company estimates an increase in lease-related assets and liabilities, ranging between $920,000 and $1,110,000 , in the consolidated balance sheets when it adopts ASU 2016-02 and its amendments effective January 1, 2019. The Company estimates that the cumulative effect adjustment to retained earnings upon adoption will not be material. The Company does not believe the standard will materially affect consolidated net income and does not believe it will have a material impact on liquidity. The standard will have no impact on debt-covenant compliance under the Company's current debt agreements. Income Statement - Reporting Comprehensive Income (Topic 220) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The ASU provides that a company can make a one-time election to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for periods beginning after December 15, 2018, with an election to adopt early. The Company expects to adopt the standard in 2019, and estimates on a preliminary basis that it will recognize an adjustment to increase retained earnings by approximately $125,000 on January 1, 2019. Income Tax Reform The Tax Cuts and Jobs Act (the "Act") was enacted December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21% for taxable years starting after December 31, 2017, and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were not previously subject to U.S. Federal income tax and creates new taxes on certain foreign sourced earnings. Refer to the income taxes footnote for additional information on the Act. Compensation-Retirement Benefits (Topic 715) In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which requires an entity to report the service cost component of net periodic benefit cost in the same line item as other compensation costs (selling, administrative and other expenses) and the remaining components in non-operating expense in the consolidated statements of income and comprehensive income. The Company adopted ASU 2017-07 retrospectively on January 1, 2018 and it did not have a material impact on the Company's consolidated financial statements or related disclosures. See the employee benefit plans footnote for additional information. The Company elected to use the amounts disclosed in the employee benefit plans footnote for the prior comparative period as the basis for applying the retrospective presentation. Derivatives and Hedging (Topic 815) In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), which eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same line item in the statement of income where the hedged item resides. The amendments also ease the requirements for effectiveness testing, hedge documentation and applying the critical terms match method, among other things. ASU 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The standard must be applied using a modified retrospective transition approach. The Company early adopted ASU 2017-12 as of July 1, 2018 and it did not have a material impact on the Company’s consolidated financial statements or related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company applied ASU 2014-09, using the modified retrospective method effective January 1, 2018. The cumulative effect of initially applying ASU 2014-09 and its amendments resulted in a reduction to the opening retained earnings balance of $8,000 prior to the tax adjustment, at January 1, 2018 and a related adjustment to other current liabilities as of that date. Revenue for periods prior to January 1, 2018 have not been adjusted and continue to be reported under Accounting Standards Codification ("ASC"), Revenue Recognition (Topic 605) . Upon adoption of ASU 2014-09, the Company also began classifying its estimate of merchandise returns expected in the next twelve months, which was $233,192 as of December 31, 2018 , in prepaid expenses and other current assets. This estimate was historically classified in merchandise inventories, net and the amount was $203,589 as of December 31, 2017. The Company primarily recognizes revenue at the point the customer obtains control of the products or services and at an amount that reflects the consideration expected to be received for those products or services. Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price and recognizes revenue upon delivery or as services are rendered. Revenue is recognized net of allowances for returns, variable consideration and any taxes collected from customers that will be remitted to governmental authorities. Revenue recognized over time is not significant. Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant. Liabilities for customer incentives, discounts, or rebates are included in other current liabilities in the consolidated balance sheets. Product Distribution Revenues The Company generates revenue primarily by distributing products through wholesale and retail channels. For wholesale customers, revenue is recognized when title and control of the goods has passed to the customer. Retail revenue is recognized at the point of sale when the goods are transferred to customers and consideration is received. Shipping and handling activities are performed prior to the customer obtaining control of the products. Costs associated with shipping and handling are considered costs to fulfill a contract and are included in selling, administrative and other expenses in the period they are incurred. Other Revenues The Company offers software support, product cataloging, marketing, training and other membership program and support services to certain customers. This revenue is recognized as services are performed. Revenue from these services is recognized over a short duration and the impact to our consolidated financial statements is not significant. Variable Consideration The Company’s products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits or rebates. The Company estimates variable consideration based on historical experience to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to a customer. The Company recognizes estimated variable consideration as an adjustment to the transaction price when control of the related product or service is transferred. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | Property, Plant & Equipment Property, Plant & Equipment as of December 31, 2018 and December 31, 2017 , consisted of the following: 2018 2017 Land $ 105,960 $ 104,049 Buildings 725,781 689,389 Machinery, equipment and other 1,404,184 1,187,617 Property, plant and equipment, at cost 2,235,925 1,981,055 Less: accumulated depreciation 1,208,694 1,044,353 Property, plant and equipment, net $ 1,027,231 $ 936,702 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill during the years ended December 31, 2018 and 2017 by reportable segment, as well as other identifiable intangible assets, are summarized as follows: Goodwill Automotive Industrial Business Products Total Other Balance as of January 1, 2017 $ 607,558 $ 266,495 $ 82,100 $ 956,153 $ 618,510 Additions 1,089,767 39,419 — 1,129,186 796,544 Amortization — — — — (51,993 ) Foreign currency translation 68,183 577 (111 ) 68,649 37,331 Balance as of December 31, 2017 1,765,508 306,491 81,989 2,153,988 1,400,392 Additions 55,371 19,213 — 74,584 164,348 Amortization — — — — (88,972 ) Foreign currency translation (99,056 ) (707 ) (33 ) (99,796 ) (64,126 ) Balance as of December 31, 2018 $ 1,721,823 $ 324,997 $ 81,956 $ 2,128,776 $ 1,411,642 The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2018 and 2017 is as follows: 2018 2017 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 1,356,353 $ (267,818 ) $ 1,088,535 $ 1,251,783 $ (199,741 ) $ 1,052,042 Trademarks 355,117 (32,755 ) 322,362 369,512 (23,056 ) 346,456 Non-competition agreements 5,009 (4,264 ) 745 6,946 (5,052 ) 1,894 $ 1,716,479 $ (304,837 ) $ 1,411,642 $ 1,628,241 $ (227,849 ) $ 1,400,392 Amortization expense for other intangible assets totaled $88,972 , $51,993 , and $40,870 for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows: 2019 $ 88,299 2020 87,329 2021 87,062 2022 87,106 2023 86,567 $ 436,363 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities The principal amounts of the Company’s borrowings subject to variable rates totaled approximately $1,176,477 and $1,690,000 at December 31, 2018 and 2017 , respectively. The weighted average interest rate on the Company’s outstanding borrowings was approximately 2.71% and 2.70% at December 31, 2018 and 2017 , respectively. On October 30, 2017, the Company entered into a multi-currency Syndicated Facility Agreement (the "Syndicated Facility") with a consortium of financial institutions. The Syndicated Facility amended the $1,200,000 unsecured Revolving Credit Facility dated September 11, 2012 that was scheduled to mature in September 2022. The Syndicated Facility is for $2,600,000 and expires October 30, 2022. The Syndicated Facility includes a $1,500,000 multi-currency revolving credit facility and a $1,100,000 Term Loan A, which requires quarterly principal payments. The Syndicated Facility interest rate is based on LIBOR plus a margin based on the Company's debt to earnings before interest, tax, depreciation and amortization ("EBITDA") ratio ( 2.70 at December 31, 2018 ). The Syndicated Facility contains an uncommitted option to increase the borrowing capacity up to an additional $1,000,000 , as well as an option to decrease the borrowing capacity or terminate the Syndicated Facility with appropriate notice. At December 31, 2018 , the amounts outstanding under the Syndicated Facility and Term Loan A were $604,383 and $1,045,000 , respectively. In addition to the Syndicated Facility, the Company has eight Senior Fixed Rate Notes with a number of investors. The notes vary in maturity with $50,000 maturing on July 29, 2021, $250,000 maturing on December 2, 2023, €225,000 maturing on October 30, 2024, $250,000 maturing on November 30, 2026, €250,000 maturing on October 30, 2027, $120,000 maturing on October 30, 2027, €125,000 maturing on October 30, 2029, and €100,000 maturing on October 30, 2032. Certain borrowings require the Company to comply with a financial covenant with respect to a maximum debt to EBITDA ratio. At December 31, 2018 , 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 approximately $63,504 and $62,019 outstanding at December 31, 2018 and 2017 , respectively. Amounts outstanding under the Company’s credit facilities, net of debt issuance cost, consist of the following: December 31, 2018 2017 Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.375% variable, due October 30, 2022 $ 604,383 $ 590,000 Unsecured Term Loan A, $1,100,000, LIBOR plus 1.375% variable, due October 30, 2022 1,045,000 1,100,000 Unsecured term notes: July 29, 2016, Series G Senior Unsecured Notes, $50,000, 2.64% fixed, due July 29, 2021 50,000 50,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000, 3.24% fixed, due December 2, 2023 250,000 250,000 October 30, 2017, Series J Senior Unsecured Notes, €225,000, 1.40% fixed, due October 30, 2024 257,468 269,955 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.24% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, €250,000, 1.81% fixed, due October 30, 2027 286,075 299,950 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 3.70% fixed, due October 30, 2027 120,000 120,000 October 30, 2017, Series L Senior Unsecured Notes, €125,000, 2.02% fixed, due October 30, 2029 143,038 149,975 October 30, 2017, Series M Senior Unsecured Notes, €100,000, 2.32% fixed, due October 30, 2032 114,430 119,980 Other unsecured debt 27,093 49,990 Total unsecured debt 3,147,487 3,249,850 Unamortized debt issuance costs (4,207 ) (4,841 ) Total debt 3,143,280 3,245,009 Less debt due within one year 711,147 694,989 Long-term debt, excluding current portion $ 2,432,133 $ 2,550,020 Approximate maturities under the Company’s credit facilities, net of debt issuance costs, are as follows: 2019 $ 711,147 2020 111,562 2021 186,866 2022 714,366 2023 249,654 Thereafter 1,169,685 $ 3,143,280 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging Cash Flow Hedge In July 2018, the Company entered into an interest rate swap to mitigate variability in forecasted interest payments on $500,000 of the Company’s U.S. dollar-denominated unsecured variable rate debt. The interest rate swap effectively converts a portion of the floating rate interest payment into a fixed rate interest payment. The Company designated the interest rate swap as a qualifying hedging instrument and is accounting for this derivative as a cash flow hedge. The fair value of the interest rate cash flow hedge was not material as of December 31, 2018 . Gains or losses related to the interest rate cash flow hedge were not material during the year ended December 31, 2018 . Hedges of Net Investments in Foreign Operations In July 2018, concurrent with the cash flow hedge described above, the Company entered into a cross-currency swap agreement to effectively convert $500,000 of the U.S. dollar-denominated unsecured variable rate debt to fixed-rate Euro-denominated debt. The risk management objective of this transaction is to manage foreign currency risk relating to a European subsidiary and reduce the variability in the functional currency equivalent cash flows of the unsecured variable rate debt. The Company designated the cross-currency swap as a qualifying hedging instrument and is accounting for this derivative as a hedge of the foreign currency exchange rate exposure of an equal amount to the Company's Euro-denominated net investment in a European subsidiary. The fair value of the cross currency hedge was not material as of December 31, 2018 . Gains or losses related to the cross-currency swap agreement were not material during the year ended December 31, 2018 . As of December 31, 2018 , the Company had designated €700,000 of the face value of Euro-denominated debt, a non-derivative financial instrument, as a hedge of the foreign currency exchange rate exposure of an equal amount to the Company's euro-denominated net investment in certain European subsidiaries. As of December 31, 2018 , the euro-denominated debt has a total carrying value of $801,010 , which is included in long-term debt in the Company’s consolidated balance sheet. For the year ended December 31, 2018 , the Company recorded a gain, net of tax, of approximately $28,360 in the net investment hedge section of the accumulated other comprehensive loss in the Company’s consolidated balance sheet. The Company did not reclassify any gains or losses related to net investment hedges from accumulated other comprehensive loss into earnings during the year ended December 31, 2018 . Amounts would only be reclassified into earnings if the European subsidiary were liquidated, or otherwise disposed. |
Leased Properties
Leased Properties | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leased Properties | Leased Properties The Company primarily leases certain retail stores, branches, distribution centers, office space, land, vehicles, information technology and equipment. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at the Company's discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of the lease agreements include rental payments adjusted periodically for inflation. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Future minimum payments, by year and in the aggregate, under the noncancelable operating leases with initial or remaining terms of one year or more were approximately the following at December 31, 2018 : 2019 $ 305,257 2020 239,629 2021 173,119 2022 121,918 2023 82,940 Thereafter 192,862 Total minimum lease payments $ 1,115,725 Rental expense for operating leases was approximately $366,000 , $306,000 , and $278,000 for 2018 , 2017 , and 2016 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation At December 31, 2018 , total compensation cost related to nonvested awards not yet recognized was approximately $36,500 . The weighted-average period over which this compensation cost is expected to be recognized is approximately two years. The aggregate intrinsic value for SARs and RSUs outstanding at December 31, 2018 and 2017 was approximately $97,800 and $95,400 , respectively. The aggregate intrinsic value for SARs and RSUs vested totaled approximately $41,300 and $52,900 at December 31, 2018 and 2017 , respectively. At December 31, 2018 , the weighted-average contractual life for outstanding and exercisable SARs and RSUs was five years. Share-based compensation costs of $20,716 , $16,892 , and $19,719 , were recorded for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The total income tax benefits recognized in the consolidated statements of income and comprehensive income for share-based compensation arrangements were approximately $5,600 , $4,600 , and $7,900 for 2018 , 2017 , and 2016 , respectively. There have been no modifications to valuation methodologies or methods during the years ended December 31, 2018 , 2017 , or 2016 . 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 RSUs vested during the years ended December 31, 2018 , 2017 , and 2016 were $20,800 , $15,500 , and $18,200 , respectively. The Company did not grant SARs for the year ended December 31, 2018. For the years ended December 31, 2017 and 2016 , 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 2.3% , and 1.6% ; dividend yield of 2.8% , and 2.7% ; annual historical volatility factor of the expected market price of the Company’s common stock of 19% for each of the two years and an average expected life of approximately six years. A summary of the Company’s share-based compensation activity and related information is as follows: 2018 Shares (1) Weighted Average Exercise Price (2) Outstanding at beginning of year 4,200 $ 82 Granted 360 $ — Exercised (772 ) $ 70 Forfeited (138 ) $ 94 Outstanding at end of year (3) 3,650 $ 85 Exercisable at end of year 2,477 $ 82 Shares available for future grants 8,135 (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, 2018 ranged from approximately $43 to $100 . The weighted average remaining contractual life of all SARs outstanding is approximately five years. The weighted average grant date fair value of SARs granted during the years 2017 and 2016 was $13.89 and $13.52 , respectively. The aggregate intrinsic value of SARs and RSUs exercised during the years ended December 31, 2018 , 2017 , and 2016 was $32,600 , $16,800 , and $48,200 , respectively. In 2018 , the Company granted approximately 360 RSUs. In 2017 , the Company granted approximately 746 SARs and 171 RSUs. In 2016 , the Company granted approximately 724 SARs and 170 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 Nonvested at January 1, 2018 406 $ 91 Granted 360 $ 89 Vested (140 ) $ 88 Forfeited (63 ) $ 89 Nonvested at December 31, 2018 563 $ 91 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act was enacted December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21% for taxable years beginning after December 31, 2017, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were not previously subject to U.S. Federal income tax and creates new taxes on certain foreign sourced earnings. In 2017 and for the nine months ended September 30, 2018, the Company recorded provisional amounts for these enactment-date effects of the Act by applying the guidance in U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 ("SAB 118") because the Company had not yet completed its accounting for these effects. As of December 22, 2018, the Company has completed its accounting for all of the enactment-date income tax effects of the Act. As further discussed below, the Company recognized adjustments totaling $5,299 at December 31, 2018 to the provisional amounts recorded at December 31, 2017 and each interim reporting period of 2018. These adjustments are included as a component of income tax expense. The changes to 2017 enactment-date provisional amounts did not have a material effect on the effective tax rate in 2018. Deferred tax assets and liabilities As of December 31, 2017, the Company remeasured U.S. deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future, which is generally 21% for federal income tax purposes. The provisional amount recorded related to the remeasurement of the deferred tax balance was $13,854 at December 31, 2017. Upon further analysis of certain aspects of the Act and refinement of our calculations during the 12 month period ended December 31, 2018, the Company adjusted its provisional amount by approximately $424 , which is included as a component of income tax expense. International tax effects The one-time transition tax is based on the Company's total post-1986 earnings and profits ("E&P") which the Company has previously deferred from U.S. income taxes pursuant to the provisions of the Internal Revenue Code prior to the Act. The Company recorded a provisional U.S. tax liability for the transition tax in the amount of $37,132 at December 31, 2017. Upon further analysis of the Act and notices and regulations issued by the U.S. Department of the Treasury and the Internal Revenue Service, the Company finalized its calculations of the transition tax liability during the 12 month period ended December 31, 2018. The provisional amount increased by $4,875 at December 31, 2018, which is included as a component of income tax expense. The Company has elected to pay the tax over the eight year period provided by the Act. No additional income taxes, where applicable (i.e., U.S. Federal, U.S. State, foreign withholding, or similar taxes under foreign law), have been provided on any remaining outside basis difference inherent in the Company's foreign subsidiaries. The cumulative undistributed earnings from the Company's foreign subsidiaries continue to be indefinitely reinvested in foreign operations. The gross tax cost to the Company associated with its outside basis difference is not material. Determining the amount of net unrecognized deferred tax liability related to any additional outside basis difference in these entities (i.e., basis difference other than those subject to the one-time transition tax) is not practicable. This is 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. Global Intangible Low-Taxed Income ("GILTI") The Act subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to account for GILTI in the year the tax is incurred as a period cost. Significant components of the Company’s deferred tax assets and liabilities are as follows: 2018 2017 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 266,628 $ 256,728 Pension liability not yet deducted for tax purposes 277,929 257,766 Net operating loss 29,785 31,046 574,342 545,540 Deferred tax liabilities related to: Employee and retiree benefits 218,124 210,429 Inventory 95,280 93,067 Other intangible assets 296,736 287,018 Property, plant, and equipment 72,463 66,727 Other 32,978 35,859 715,581 693,100 Net deferred tax liability before valuation allowance (141,239 ) (147,560 ) Valuation allowance (26,095 ) (5,590 ) Total net deferred tax liability $ (167,334 ) $ (153,150 ) The Company currently holds approximately $125,013 in net operating losses, of which approximately $89,710 will carry forward indefinitely. The remaining net operating losses of approximately $35,303 will begin to expire in 2024. The components of income before income taxes are as follows: 2018 2017 2016 United States $ 790,592 $ 813,078 $ 934,476 Foreign 285,020 196,190 139,864 Income before income taxes $ 1,075,612 $ 1,009,268 $ 1,074,340 The components of income tax expense are as follows: 2018 2017 2016 Current: Federal $ 144,615 $ 252,337 $ 284,199 State 39,326 29,288 41,083 Foreign 77,306 44,896 28,593 Deferred: Federal 15,167 71,238 26,684 State 5,770 13,663 3,857 Foreign (17,046 ) (18,911 ) 2,684 $ 265,138 $ 392,511 $ 387,100 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: 2018 2017 2016 Statutory rate applied to income (1) $ 225,879 $ 353,259 $ 376,019 Plus state income taxes, net of Federal tax benefit 35,626 27,918 29,211 Taxation of foreign operations, net (2) (7,639 ) (33,984 ) (18,057 ) U.S. tax reform - transition tax 4,875 37,132 — U.S. tax reform - deferred tax remeasurement 424 13,854 — Foreign rate change - deferred tax remeasurement (1,461 ) (9,338 ) — Book tax basis difference in investment (11,944 ) — — Valuation allowance 20,505 1,273 371 Other (1,127 ) 2,397 (444 ) $ 265,138 $ 392,511 $ 387,100 (1) U.S. statutory rates applied to income are as follows: 2018 at 21% , 2017 and 2016 at 35% . (2) The Company's effective tax rate reflects the net benefit of having operations outside of the U.S. which are taxed at statutory rates different from the U.S. statutory rate, with some income being fully or partially exempt from income taxes due to various operating and financing activities. The Company, or one of its subsidiaries, files income tax returns in the U.S., 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 2014 or subject to non-United States income tax examinations for years ended prior to 2012. The Company is currently under audit in the U.S. and some of its foreign jurisdictions. Some audits may conclude in the next 12 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 12 months to previously recorded uncertain tax positions in connection with the audits. The Company does not anticipate that total unrecognized tax benefits will significantly change in the next 12 months. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2018 2017 2016 Balance at beginning of year $ 14,697 $ 15,190 $ 15,815 Additions based on tax positions related to the current year 2,034 2,644 2,184 Additions for tax positions of prior years 4,787 1,511 1,317 Reductions for tax positions for prior years (725 ) (430 ) (1,369 ) Reduction for lapse in statute of limitations (2,338 ) (3,917 ) (2,516 ) Settlements (27 ) (301 ) (241 ) Balance at end of year $ 18,428 $ 14,697 $ 15,190 The amount of gross unrecognized tax benefits, including interest and penalties, as of December 31, 2018 and 2017 was approximately $20,669 and $16,919 , respectively, of which approximately $14,760 and $10,847 , respectively, if recognized, would affect the effective tax rate. During the years ended December 31, 2018 , 2017 , and 2016 , the Company paid or received refunds of interest and penalties of approximately $18 , $(3,384) , and $5 , respectively. The Company had approximately $2,242 and $2,151 of accrued interest and penalties at December 31, 2018 and 2017 , 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, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s defined benefit pension plans cover employees in the U.S., Canada, and Europe who meet eligibility requirements. The plan covering U.S. employees is noncontributory and the Company implemented a hard freeze for the U.S. qualified defined benefit plan as of December 31, 2013. No further benefits were provided after this date for additional credited service or earnings and all participants 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. For the plans in the U.S. and Canada, the Company may increase its contribution above the minimum, if appropriate to its tax and cash position and the plans’ funded position. For the plans in Europe, these plans will be funded in accordance with local regulations. 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 and supplemental retirement plans. Several assumptions are used to determine the benefit obligations, plan assets, and net periodic income. 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, 2018 and 2017 were: 2018 2017 Changes in benefit obligation Benefit obligation at beginning of year $ 2,435,765 $ 2,306,859 Service cost 10,410 8,459 Interest cost 88,247 96,651 Plan participants’ contributions 2,466 2,454 Actuarial (gain) loss (122,556 ) 94,546 Foreign currency exchange rate changes (18,416 ) 15,073 Gross benefits paid (118,643 ) (106,885 ) Plan amendments — 4,768 Acquired plans 770 13,840 Benefit obligation at end of year $ 2,278,043 $ 2,435,765 The benefit obligations for the Company’s U.S. pension plans included in the above were $2,055,701 and $2,187,700 at December 31, 2018 and 2017 , respectively. The total accumulated benefit obligation for the Company’s defined benefit pension plans in the U.S., Canada and Europe was approximately $2,247,013 and $2,409,091 at December 31, 2018 and 2017 , respectively. The assumptions used to measure the pension benefit obligations for the plans at December 31, 2018 and 2017 , were: 2018 2017 Weighted average discount rate 4.36 % 3.70 % Rate of increase in future compensation levels 3.14 % 3.11 % Changes in plan assets for the years ended December 31, 2018 and 2017 were: 2018 2017 Changes in plan assets Fair value of plan assets at beginning of year $ 2,206,479 $ 1,965,502 Actual return on plan assets (86,418 ) 277,650 Foreign currency exchange rate changes (18,054 ) 14,449 Employer contributions 57,549 53,309 Plan participants’ contributions 2,466 2,454 Benefits paid (118,643 ) (106,885 ) Fair value of plan assets at end of year $ 2,043,379 $ 2,206,479 The fair values of plan assets for the Company’s U.S. pension plans included in the above were $1,831,513 and $1,969,196 at December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 and 2017 , the aggregate benefit obligation and aggregate fair value of plan assets for plans with benefit obligations in excess of plan assets were as follows: 2018 2017 Aggregate benefit obligation $ 2,106,348 $ 2,241,690 Aggregate fair value of plan assets 1,863,245 2,003,831 For the years ended December 31, 2018 and 2017 , the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets were as follows: 2018 2017 Aggregate accumulated benefit obligation $ 2,070,183 $ 2,210,590 Aggregate fair value of plan assets 1,855,714 1,996,017 The asset allocations for the Company’s funded pension plans at December 31, 2018 and 2017 , and the target allocation for 2019 , by asset category were: Target Allocation Percentage of Plan Assets at December 31 2019 2018 2017 Asset Category Equity securities 72 % 67 % 71 % Debt securities 28 % 33 % 29 % 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 plans in Europe are unfunded and, therefore, there are no plan assets. 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 ( 47% S&P 500 Index, 5% Russell Midcap Index, 7% Russell 2000 Index, 5% MSCI EAFE Index, 5% DJ Global Moderate Index, 3% MSCI Emerging Market Net, and 28% Barclays U.S. Govt/Credit). The fair values of the plan assets as of December 31, 2018 and 2017 , 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). Certain investments are measured at fair value using the net asset value ("NAV") per share as a practical expedient and have not been classified in the fair value hierarchy. 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. 2018 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 457,567 $ 166,045 $ 291,522 $ — $ — Genuine Parts Company common stock 193,810 — 193,810 — — Other stocks 713,924 — 713,882 — 42 Debt Securities Short-term investments 30,855 — 30,855 — — Cash and equivalents 14,583 — 14,583 — — Government bonds 223,750 — 159,483 64,267 — Corporate bonds 227,616 — — 227,616 — Asset-backed and mortgage-backed securities 8,866 — — 8,866 — Other-international 29,471 — 29,126 345 — Municipal bonds 8,747 — — 8,747 — Mutual funds—fixed income 131,755 86,443 — 45,312 — Other Cash surrender value of life insurance policies 2,435 — — 2,435 Total $ 2,043,379 $ 252,488 $ 1,433,261 $ 355,153 $ 2,477 2017 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 536,609 $ 193,628 $ 342,981 $ — $ — Genuine Parts Company common stock 191,771 — 191,771 — — Other stocks 838,694 — 838,659 — 35 Debt Securities Short-term investments 47,745 — 47,745 — — Cash and equivalents 13,530 — 13,530 — — Government bonds 180,838 — 121,834 59,004 — Corporate bonds 207,978 — — 207,978 — Asset-backed and mortgage-backed securities 9,725 — — 9,725 — Convertible securities 211 — — 211 — Other-international 29,431 — 29,221 210 — Municipal bonds 7,346 — — 7,346 — Mutual funds—fixed income 139,801 92,248 — 47,553 — Other Options and futures 38 — 38 — — Cash surrender value of life insurance policies 2,762 — — — 2,762 Total $ 2,206,479 $ 285,876 $ 1,585,779 $ 332,027 $ 2,797 Equity securities include Genuine Parts Company common stock in the amounts of $193,810 ( 9% of total plan assets) and $191,771 ( 9% of total plan assets) at December 31, 2018 and 2017 , respectively. Dividend payments received by the plan on Company stock totaled approximately $5,813 and $5,450 in 2018 and 2017 , 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 2018 and 2017 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 2019 pension income is 7.12% 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: 2018 2017 Other long-term asset $ 8,440 $ 8,573 Other current liability (9,213 ) (9,280 ) Pension and other post-retirement liabilities (233,891 ) (228,579 ) $ (234,664 ) $ (229,286 ) Amounts recognized in accumulated other comprehensive loss consist of: 2018 2017 Net actuarial loss $ 1,014,794 $ 941,063 Prior service cost 5,939 5,773 $ 1,020,733 $ 946,836 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 2019 , approximately $9,215 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: Employer contribution 2019 (expected) $ 6,034 Expected benefit payments: 2019 $ 118,340 2020 122,253 2021 127,460 2022 132,988 2023 137,669 2024 through 2028 734,372 Net periodic benefit income included the following components: 2018 2017 2016 Service cost $ 10,410 $ 8,459 $ 7,746 Interest cost 88,247 96,651 104,485 Expected return on plan assets (154,006 ) (155,432 ) (156,832 ) Amortization of prior service credit (147 ) (350 ) (432 ) Amortization of actuarial loss 39,721 38,034 31,641 Net periodic benefit income $ (15,775 ) $ (12,638 ) $ (13,392 ) Service cost is recorded in selling, administrative and other expenses in the consolidated statements of income and comprehensive income while all other components are recorded within other non-operating expenses (income). Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows: 2018 2017 2016 Current year actuarial loss (gain) $ 117,867 $ (27,672 ) $ 152,415 Recognition of actuarial loss (39,721 ) (38,034 ) (31,641 ) Current year prior service cost — 4,768 2,063 Recognition of prior service credit 147 350 432 Total recognized in other comprehensive income (loss) $ 78,293 $ (60,588 ) $ 123,269 Total recognized in net periodic benefit income and other comprehensive income (loss) $ 62,518 $ (73,226 ) $ 109,877 The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit income in 2019 are as follows: Actuarial loss $ 30,944 Prior service credit (66 ) Total $ 30,878 The assumptions used in measuring the net periodic benefit income for the plans follow: 2018 2017 2016 Weighted average discount rate 3.70 % 4.26 % 4.82 % Rate of increase in future compensation levels 3.11 % 3.15 % 3.12 % Expected long-term rate of return on plan assets 7.14 % 7.80 % 7.83 % The Company has one defined contribution plan in the U.S. that covers substantially all of its domestic employees. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $62,335 in 2018 , $58,186 in 2017 , and $56,975 in 2016 . The Company has a defined contribution plan that covers full-time Canadian employees after six months of employment and part-time employees upon meeting provincial minimum standards. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $4,108 in 2018 and $2,600 in 2017. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Guarantees | 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 EBITDA ratio and certain limitations on additional borrowings. At December 31, 2018 , the Company was in compliance with all such covenants. At December 31, 2018 , the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $759,726 . 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 $78,000 and $65,000 for the guarantees related to the independents’ and affiliates’ borrowings at December 31, 2018 and 2017 , respectively. These assets and liabilities are included in other assets and other long-term liabilities in the consolidated balance sheets. |
Legal Matter
Legal Matter | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matter | Legal Matter On April 17, 2017, a jury awarded damages against the Company of $81,500 in a litigated automotive product liability dispute. Through post-trial motions and offsets from previous settlements, the initial verdict has been reduced to $77,100 . The Company believes the verdict is not supported by the facts or the law and is contrary to the Company’s role in the automotive parts industry. The Company is challenging the verdict through an appeal to a higher court. At the time of the filing of these financial statements, based upon the Company’s legal defenses, insurance coverage, and reserves, the Company does not believe this matter will have a material impact to the consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions The Company acquired several businesses and equity investments for approximately $283,000 , $1,457,000 , and $420,000 , net of cash acquired, during the years ended December 31, 2018 , 2017 , and 2016 , respectively. 2018 In 2018 , a significant portion of the businesses acquired included 20 businesses in the Automotive Parts Group and three businesses in the Industrial Parts Group. The 20 Automotive Parts Group acquisitions generate annual unaudited revenues of approximately $180,000 . The acquisitions included TMS Motor Spares ("TMS") in August 2018 and Platinum International Group ("Platinum") in October 2018. TMS is a leading automotive parts distributor and operates 17 locations in Scotland and seven locations in England. Platinum is a leading value-added battery distributor in the automotive, industrial, and leisure markets and operates nine locations in the U.K. and one location in the Netherlands. The three Industrial Parts Group acquisitions generate annual unaudited revenues of approximately $100,000 . The largest acquisition was Hydraulic Supply Company ("HSC") in October 2018, which operates 30 locations in the U.S. HSC is a full-service fluid power distributor, with a product offering of hydraulic, pneumatic and industrial components and systems. 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 $167,000 of goodwill and other intangible assets associated with the 2018 acquisitions. Other intangible assets acquired consisted of customer relationships of $76,000 with weighted average amortization lives of 15 years. 2017 and 2016 In 2017 , a significant portion of the businesses acquired included 12 businesses in the Automotive Parts Group and three businesses in the Industrial Parts Group. The aggregate purchase price for these 15 acquisitions was approximately $1,334,000 , net of cash acquired. The acquisitions of Alliance Automotive Group (“AAG”) and the Inenco equity method investment are described further below. In 2016 , a significant portion of the businesses acquired included 11 businesses in the Automotive Parts Group, six businesses in the Industrial Group and two businesses in the Business Products Group. The purchase price for these 19 acquisitions was approximately $370,000 , net of cash acquired. For each 2017 and 2016 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 $1,926,000 and $260,000 of goodwill and other intangible assets associated with the 2017 and 2016 acquisitions, respectively. Other intangible assets acquired in 2017, excluding AAG, consisted of customer relationships of $69,000 with weighted average amortization lives of 15 years. Other intangible assets acquired in 2016 consisted of customer relationships of $112,000 and trademarks of $28,000 , with weighted average amortization lives of 17 and 35 years, respectively. Alliance Automotive Group The Company acquired all of the equity interests in AAG for approximately $1,067,000 in cash on November 2, 2017. The net cash consideration transferred of approximately $1,067,000 is net of the cash acquired of approximately $123,000 . AAG, which is headquartered in London, is the second largest parts distribution platform in Europe, based on revenues, with a focus on light and commercial vehicle replacement parts distributed to the independent aftermarket in France, Germany, the U.K., and Poland. Coincident with the transaction, GPC repaid a majority of AAG’s debt including publicly held notes and a revolving credit facility with a banking group, including accrued interest, for approximately $825,000 . The acquisition and subsequent redemption of substantially all acquired debt, was financed using a combination of new borrowings under a term loan, five private placement notes, and borrowings under increased credit facilities. The following table summarizes the preliminary, estimated fair values of the assets acquired and liabilities assumed at the acquisition date as well as the adjustments made when finalizing the acquisition accounting during the year ended December 31, 2018 (referred to as the "measurement period adjustments”). The measurement period adjustments primarily resulted from revisions to the valuation of certain tangible and intangible assets. The adjustments to current period earnings that would have been recognized in previous periods if the acquisition accounting had been completed on the acquisition date were not material. November 2, 2017 Measurement Period Adjustments As Adjusted Trade accounts receivable $ 380,000 $ 6,000 $ 386,000 Merchandise inventories 374,000 4,000 378,000 Prepaid expenses and other current assets 213,000 10,000 223,000 Intangible assets 727,000 86,000 813,000 Deferred tax assets 4,000 (2,000 ) 2,000 Property and equipment 93,000 (1,000 ) 92,000 Other assets 25,000 (11,000 ) 14,000 Total identifiable assets acquired 1,816,000 92,000 1,908,000 Current liabilities (768,000 ) (50,000 ) (818,000 ) Long-term debt (769,000 ) — (769,000 ) Pension and other post-retirement benefit liabilities (14,000 ) — (14,000 ) Deferred tax liabilities (151,000 ) (21,000 ) (172,000 ) Other long-term liabilities (32,000 ) (2,000 ) (34,000 ) Total liabilities assumed (1,734,000 ) (73,000 ) (1,807,000 ) Net identifiable assets acquired 82,000 19,000 101,000 Noncontrolling interests in subsidiaries (38,000 ) 1,000 (37,000 ) Goodwill 1,036,000 (33,000 ) 1,003,000 Net assets acquired $ 1,080,000 $ (13,000 ) $ 1,067,000 The acquired intangible assets of approximately $813,000 were assigned to customer relationships of $630,133 , trademarks of $181,702 , and other intangibles of $1,165 , with weighted average amortization lives of 20 , 28 and 2 years, respectively, for a total weighted average amortizable life of 22 years. The goodwill recognized as part of the acquisition is not tax deductible and has been assigned to the Automotive segment. The goodwill was attributable primarily to expected synergies and the assembled work-force. The fair values of the non-controlling interests in subsidiaries were valued using income approaches. The amounts of net sales and earnings of AAG included in the Company’s consolidated statements of income and comprehensive income from November 2, 2017 to December 31, 2017 were approximately $256,400 in net sales and net income of $0.07 on a per share diluted basis, respectively. The unaudited pro forma consolidated statements of income and comprehensive income of the Company as if AAG had been included in the consolidated results of the Company for the years ended December 31, 2017 and 2016 would be estimated at $17,627,000 and $16,575,000 in net sales, respectively, and net income of $4.56 and $4.55 on a per share diluted basis, respectively. The pro forma information is not necessarily indicative of the results of operations that the Company would have reported had the transaction actually occurred at the beginning of these periods, 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. Inenco Effective April 3, 2017, the Company acquired a 35% investment in the Inenco Group for approximately $72,100 from Conbear Holdings Pty Limited ("Conbear"). The equity investment was funded with the Company’s cash on hand. The Inenco Group, which is headquartered in Sydney, Australia, is an industrial distributor of bearings, power transmissions, and seals in Australasia, with annual revenues of approximately $400,000 and 174 locations across Australia and New Zealand, as well as an emerging presence in Asia.The Company and Conbear both have an option to acquire or sell, respectively, the remaining 65% of Inenco at a later date contingent upon certain conditions being satisfied. However, there can be no guarantee that such conditions will be met or, if they are met, whether either company would exercise its option. Divestitures Business Products Group On April 12, 2018, the Company entered into a definitive agreement with Essendant, Inc. ("Essendant") for Essendant to combine with the Company's Business Products Group in a business combination transaction. The transaction was to be structured as a Reverse Morris Trust, in which the Company would separate the Business Products Group into a standalone company and spin off that standalone company to the Company's shareholders, immediately followed by the merger of a subsidiary of Essendant and the spun-off company. On September 14, 2018, the definitive agreement with Essendant was terminated by Essendant, so that Essendant could enter into a merger agreement with another party. Concurrently with the termination, the Company received a termination fee of $12,000 . The termination fee is classified as an offset to the transaction and other costs incurred related to the merger agreement within selling, administrative and other expenses in the consolidated statements of income and comprehensive income. Grupo Auto Todo On December 13, 2018, the Company entered into a definitive agreement to sell all of the equity of a Mexican subsidiary in the Automotive Parts Group, Grupo Auto Todo, to a group of investors for approximately $12,000 . Grupo Auto Todo contributed approximately $93,000 of revenues for the year ended December 31, 2018. The transaction is expected to close in 2019. The Company estimates that it will recognize a charge of approximately $30,000 when the transaction closes, primarily from accumulated foreign currency losses. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data The Company’s reportable segments consist of automotive and industrial parts and business products. 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, electrical specialties materials, including insulating and conductive materials for use in electrical apparatus, and related parts and supplies. The Company’s business products segment distributes a wide variety of office products, computer supplies, office furniture, and business electronics. 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 $285,020 , $196,190 and $139,864 of income before income taxes was generated in jurisdictions outside the U.S. for the years ended December 31, 2018 , 2017 , and 2016 , 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. 2018 2017 2016 Net sales: (1) Automotive $ 10,526,520 $ 8,583,317 $ 8,040,407 Industrial (2) 6,298,584 5,805,012 5,399,416 Business products 1,909,969 1,920,472 1,899,890 Total net sales $ 18,735,073 $ 16,308,801 $ 15,339,713 Operating profit: Automotive $ 854,389 $ 720,465 $ 715,154 Industrial (2) 487,360 440,454 397,147 Business products 88,756 98,882 117,035 Total operating profit 1,430,505 1,259,801 1,229,336 Interest expense, net (92,093 ) (38,677 ) (19,525 ) Corporate expense (3) (173,828 ) (159,863 ) (94,601 ) Intangible asset amortization (88,972 ) (51,993 ) (40,870 ) Income before income taxes $ 1,075,612 $ 1,009,268 $ 1,074,340 Assets: Automotive $ 6,246,911 $ 6,140,829 $ 4,601,150 Industrial (2) 1,790,410 1,645,271 1,495,397 Business products 860,279 859,335 907,119 Corporate 245,022 212,566 281,071 Goodwill and other intangible assets 3,540,418 3,554,380 1,574,663 Total assets $ 12,683,040 $ 12,412,381 $ 8,859,400 2018 2017 2016 Depreciation and amortization: Automotive $ 105,238 $ 71,405 $ 65,372 Industrial (2) 14,518 13,446 13,338 Business products 10,472 11,262 11,398 Corporate 22,435 19,585 16,509 Intangible asset amortization 88,972 51,993 40,870 Total depreciation and amortization $ 241,635 $ 167,691 $ 147,487 Capital expenditures: Automotive $ 198,910 $ 118,181 $ 73,339 Industrial (2) 21,783 28,566 33,093 Business products 7,320 6,726 12,072 Corporate 4,409 3,287 42,139 Total capital expenditures $ 232,422 $ 156,760 $ 160,643 Net sales: United States $ 13,927,091 $ 13,246,619 $ 12,779,971 Europe 1,860,912 256,364 — Canada 1,624,890 1,525,421 1,368,743 Australasia 1,193,148 1,162,122 1,083,779 Mexico 129,032 118,275 107,220 Total net sales $ 18,735,073 $ 16,308,801 $ 15,339,713 Net property, plant, and equipment: United States $ 726,068 $ 647,386 $ 561,164 Europe 110,184 96,857 — Canada 91,387 90,857 81,260 Australasia 95,578 95,299 79,413 Mexico 4,014 6,303 6,287 Total net property, plant, and equipment $ 1,027,231 $ 936,702 $ 728,124 (1) The net effect of discounts, incentives, and freight billed to customers has been allocated to their respective segments for the current and prior periods. Previously, the net effect of such items were captured and presented separately in a line item entitled “Other.” (2) Effective January 1, 2018, the electrical materials segment became a division of the industrial segment. These two reporting segments became a single reporting segment, the Industrial Parts Group. The change in segment reporting is presented retrospectively. (3) Includes $36,105 of expense for the year ended December 31, 2018 , respectively, from transaction and other costs related to the AAG acquisition and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018. See the acquisitions and divestitures footnote for additional information. The year ended December 31, 2017 includes $49,141 in transaction and other costs primarily related to the AAG acquisition. The following table presents disaggregated geographical net sales from contracts with customers by reportable segment. Automotive is the only reportable segment with operations in Australasia and Europe. The Company believes this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors: 2018 2017 2016 North America: Automotive $ 7,472,460 $ 7,164,831 $ 6,956,628 Industrial 6,298,584 5,805,012 5,399,416 Business products 1,909,969 1,920,472 1,899,890 Total North America $ 15,681,013 $ 14,890,315 $ 14,255,934 Australasia - Automotive $ 1,193,148 $ 1,162,122 $ 1,083,779 Europe - Automotive $ 1,860,912 $ 256,364 $ — Total net sales $ 18,735,073 $ 16,308,801 $ 15,339,713 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 parts and materials and business products. The Company serves a diverse customer base through approximately 3,100 locations in North America, Australasia and Europe 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 Refer to the revenue recognition footnote for additional information related to the Company's revenue recognition policy. The Company applied ASU 2014-09, using the modified retrospective method effective January 1, 2018. The cumulative effect of initially applying ASU 2014-09 and its amendments resulted in a reduction to the opening retained earnings balance of $8,000 prior to the tax adjustment, at January 1, 2018 and a related adjustment to other current liabilities as of that date. Revenue for periods prior to January 1, 2018 have not been adjusted and continue to be reported under Accounting Standards Codification ("ASC"), Revenue Recognition (Topic 605) . Upon adoption of ASU 2014-09, the Company also began classifying its estimate of merchandise returns expected in the next twelve months, which was $233,192 as of December 31, 2018 , in prepaid expenses and other current assets. This estimate was historically classified in merchandise inventories, net and the amount was $203,589 as of December 31, 2017. The Company primarily recognizes revenue at the point the customer obtains control of the products or services and at an amount that reflects the consideration expected to be received for those products or services. Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price and recognizes revenue upon delivery or as services are rendered. Revenue is recognized net of allowances for returns, variable consideration and any taxes collected from customers that will be remitted to governmental authorities. Revenue recognized over time is not significant. Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant. Liabilities for customer incentives, discounts, or rebates are included in other current liabilities in the consolidated balance sheets. Product Distribution Revenues The Company generates revenue primarily by distributing products through wholesale and retail channels. For wholesale customers, revenue is recognized when title and control of the goods has passed to the customer. Retail revenue is recognized at the point of sale when the goods are transferred to customers and consideration is received. Shipping and handling activities are performed prior to the customer obtaining control of the products. Costs associated with shipping and handling are considered costs to fulfill a contract and are included in selling, administrative and other expenses in the period they are incurred. Other Revenues The Company offers software support, product cataloging, marketing, training and other membership program and support services to certain customers. This revenue is recognized as services are performed. Revenue from these services is recognized over a short duration and the impact to our consolidated financial statements is not significant. Variable Consideration The Company’s products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits or rebates. The Company estimates variable consideration based on historical experience to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to a customer. The Company recognizes estimated variable consideration as an adjustment to the transaction price when control of the related product or service is transferred. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. |
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. |
Merchandise Inventories, Including Consideration Received From Vendors | Merchandise Inventories, Including Consideration Received From Vendors Merchandise inventories are valued at the lower of cost or net realizable value. Cost is determined by the last-in, first-out ("LIFO") method for a majority of U.S. automotive and industrial parts, and by the first-in, first-out ("FIFO") method for business products and certain non-U.S. and other inventories. If the FIFO method had been used for all inventories, cost would have been approximately $479,500 and $440,550 higher than reported at December 31, 2018 and 2017 , respectively. During 2017 and 2016, reductions in industrial parts inventories resulted in liquidations of LIFO inventory layers, which reduced cost of goods sold by approximately $2,000 and $6,000 , respectively. There were no LIFO liquidations in 2018. 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 2019 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 amounts due from vendors, prepaid expenses, and income and other 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 (a component). A component 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. To review goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a single reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of the intangible asset is less than its carrying value, then a two-step quantitative goodwill impairment test is performed. The first step is to compare the fair value of a reporting unit to its carrying value. The Company typically uses discounted cash flow models to determine the fair value of its reporting units. The assumptions used in these models are consistent with those the Company believes hypothetical marketplace participants would use. If the fair value of a reporting unit is less than its carrying amount, then the second step of the impairment test must be performed in order to determine the amount of impairment loss (if any). The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. |
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 Assets | Other Assets Other assets consist primarily of cash surrender value of life insurance policies, equity method investments, guarantee fees receivable, and deferred compensation benefits. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Depreciation and amortization are primarily determined on a straight-line basis over the following estimated useful lives of each asset: buildings and improvements, 10 to 40 years; machinery and equipment, 5 to 15 years. |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist primarily of reserves for sales returns expected within the next year, accrued compensation, accrued customer incentives, accrued income and other taxes, and other reserves for expenses incurred. |
Other Long-term Liabilities | Other Long-term Liabilities Other long-term liabilities consist primarily of reserves for sales returns expected after the next year, guarantee obligations, accrued taxes, deferred rent and other non-current obligations. |
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. 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. |
Business Combinations | Business Combinations From time to time, the Company enters into business combinations. The Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. The Company measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires the Company to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. This method also requires the Company to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If the Company is required to adjust provisional amounts that were recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on the Company's consolidated financial statements. Significant estimates and assumptions in estimating the fair value of acquired customer relationships and other identifiable intangible assets include future cash flows that the Company expects to generate from the acquired assets. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could record impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If the Company estimates the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. |
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 and term loan approximate their respective fair values based on the short-term nature of these instruments. At December 31, 2018 and 2017 , the fair value of fixed rate debt was approximately $1,427,381 and $1,497,179 , 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. |
Derivatives and Hedging | Derivatives and Hedging The Company is exposed to various risks arising from business operations and market conditions, including fluctuations in interest rates and certain foreign currencies. When deemed appropriate, the Company uses derivative and non-derivative instruments as risk management tools to mitigate the potential impact of interest rate and foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in the Company’s earnings and cash flows associated with changes in these rates. Derivative financial instruments are not used for trading or other speculative purposes. The Company has not historically incurred, and does not expect to incur in the future, any losses as a result of counterparty default related to derivative instruments. The Company formally documents relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking cash flow hedges to specific forecasted transactions or variability of cash flow to be paid. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative and non-derivative instruments that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. When a designated instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, hedge accounting is discontinued prospectively. |
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 $390,000 , $290,000 , and $230,000 , for the years ended December 31, 2018 , 2017 , and 2016 , respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled $204,700 , $166,000 , and $153,100 in the years ended December 31, 2018 , 2017 , and 2016 , 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. Forfeitures are accounted for as they occur. The Company issues new shares upon exercise or conversion of awards under these plans. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. In addition, valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. In making this determination, the Company considers all available positive and negative evidence including projected future taxable income, future reversals of existing temporary differences, recent financial operations and tax planning strategies. The Company recognizes a tax benefit from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. |
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 1,490 , 1,920 , and 1,290 shares of common stock ranging from $85 — $100 per share were outstanding at December 31, 2018 , 2017 , and 2016 , 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 Revenue from Contracts with Customers (Topic 606) In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, which creates a single, comprehensive revenue recognition model for recognizing revenue from contracts with customers. The Company adopted ASU 2014-09 and its amendments on January 1, 2018. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than were required under previously existing guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. ASU 2014-09 did not result in a significant change in the judgment or timing associated with the recognition of revenue from the sale of the Company’s products or services. See the revenue recognition footnote for additional information. Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which, among other things, requires an entity to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, including operating leases. Expanded disclosures with additional qualitative and quantitative information will also be required. ASU 2016-02 and its amendments are effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The standard should be applied using a retrospective transition approach. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company will adopt ASU 2016-02 as of January 1, 2019 and apply the transition election. The Company also will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, will allow the Company to carryforward its historical lease classifications. In addition, the Company is not electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company will recognize those lease payments in the consolidated statements of income and comprehensive income on a straight-line basis over the lease term. The Company estimates an increase in lease-related assets and liabilities, ranging between $920,000 and $1,110,000 , in the consolidated balance sheets when it adopts ASU 2016-02 and its amendments effective January 1, 2019. The Company estimates that the cumulative effect adjustment to retained earnings upon adoption will not be material. The Company does not believe the standard will materially affect consolidated net income and does not believe it will have a material impact on liquidity. The standard will have no impact on debt-covenant compliance under the Company's current debt agreements. Income Statement - Reporting Comprehensive Income (Topic 220) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The ASU provides that a company can make a one-time election to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for periods beginning after December 15, 2018, with an election to adopt early. The Company expects to adopt the standard in 2019, and estimates on a preliminary basis that it will recognize an adjustment to increase retained earnings by approximately $125,000 on January 1, 2019. Income Tax Reform The Tax Cuts and Jobs Act (the "Act") was enacted December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21% for taxable years starting after December 31, 2017, and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were not previously subject to U.S. Federal income tax and creates new taxes on certain foreign sourced earnings. Refer to the income taxes footnote for additional information on the Act. Compensation-Retirement Benefits (Topic 715) In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which requires an entity to report the service cost component of net periodic benefit cost in the same line item as other compensation costs (selling, administrative and other expenses) and the remaining components in non-operating expense in the consolidated statements of income and comprehensive income. The Company adopted ASU 2017-07 retrospectively on January 1, 2018 and it did not have a material impact on the Company's consolidated financial statements or related disclosures. See the employee benefit plans footnote for additional information. The Company elected to use the amounts disclosed in the employee benefit plans footnote for the prior comparative period as the basis for applying the retrospective presentation. Derivatives and Hedging (Topic 815) In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), which eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same line item in the statement of income where the hedged item resides. The amendments also ease the requirements for effectiveness testing, hedge documentation and applying the critical terms match method, among other things. ASU 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The standard must be applied using a modified retrospective transition approach. The Company early adopted ASU 2017-12 as of July 1, 2018 and it did not have a material impact on the Company’s consolidated financial statements or related disclosures. |
Share-based Compensation, Option and Incentive Plans | For the years ended December 31, 2017 and 2016 , 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 2.3% , and 1.6% ; dividend yield of 2.8% , and 2.7% ; annual historical volatility factor of the expected market price of the Company’s common stock of 19% for each of the two years and an average expected life of approximately six years. |
Pension and Other Postretirement Plans | 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 2019 pension income is 7.12% 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 Company’s funding policy is to contribute an amount equal to the minimum required contribution under applicable pension legislation. For the plans in the U.S. and Canada, the Company may increase its contribution above the minimum, if appropriate to its tax and cash position and the plans’ funded position. For the plans in Europe, these plans will be funded in accordance with local regulations. 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 and supplemental retirement plans. Several assumptions are used to determine the benefit obligations, plan assets, and net periodic income. 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 has one defined contribution plan in the U.S. that covers substantially all of its domestic employees. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. 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 plans in Europe are unfunded and, therefore, there are no plan assets. 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 ( 47% S&P 500 Index, 5% Russell Midcap Index, 7% Russell 2000 Index, 5% MSCI EAFE Index, 5% DJ Global Moderate Index, 3% MSCI Emerging Market Net, and 28% Barclays U.S. Govt/Credit). The fair values of the plan assets as of December 31, 2018 and 2017 , 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). Certain investments are measured at fair value using the net asset value ("NAV") per share as a practical expedient and have not been classified in the fair value hierarchy. 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. |
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 EBITDA ratio and certain limitations on additional borrowings. At December 31, 2018 , the Company was in compliance with all such covenants. At December 31, 2018 , the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $759,726 . 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. |
Segment Reporting | The Company’s reportable segments consist of automotive and industrial parts and business products. 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 Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is comprised of the following: December 31, 2018 2017 Foreign currency translation $ (499,482 ) $ (266,247 ) Unrealized gain (loss) on cash flow and net investment hedges, net of tax 10,726 (17,388 ) Unrecognized net actuarial loss, net of tax (623,363 ) (566,876 ) Unrecognized prior service cost, net of tax (2,959 ) (2,081 ) Total accumulated other comprehensive loss $ (1,115,078 ) $ (852,592 ) |
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, 2018 and 2017 : Changes in Accumulated Other Comprehensive Loss by Component Pension Benefits Other Post-Retirement Benefits Cash Flow and Net Investment Hedges Foreign Currency Translation Total Beginning balance, January 1, 2017 $ (607,468 ) $ (1,612 ) $ — $ (403,941 ) $ (1,013,021 ) Other comprehensive income (loss) before reclassifications, net of tax 16,640 307 (17,388 ) 137,694 137,253 Amounts reclassified from accumulated other comprehensive loss, net of tax 23,385 (209 ) — — 23,176 Net current period other comprehensive income (loss) 40,025 98 (17,388 ) 137,694 160,429 Ending balance, December 31, 2017 (567,443 ) (1,514 ) (17,388 ) (266,247 ) (852,592 ) Other comprehensive (loss) income before reclassifications, net of tax (85,677 ) 20 26,563 (233,235 ) (292,329 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 28,581 (289 ) 1,551 — 29,843 Net current period other comprehensive (loss) income (57,096 ) (269 ) 28,114 (233,235 ) (262,486 ) Ending balance, December 31, 2018 $ (624,539 ) $ (1,783 ) $ 10,726 $ (499,482 ) $ (1,115,078 ) |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant & Equipment as of December 31, 2018 and December 31, 2017 , consisted of the following: 2018 2017 Land $ 105,960 $ 104,049 Buildings 725,781 689,389 Machinery, equipment and other 1,404,184 1,187,617 Property, plant and equipment, at cost 2,235,925 1,981,055 Less: accumulated depreciation 1,208,694 1,044,353 Property, plant and equipment, net $ 1,027,231 $ 936,702 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 by reportable segment, as well as other identifiable intangible assets, are summarized as follows: Goodwill Automotive Industrial Business Products Total Other Balance as of January 1, 2017 $ 607,558 $ 266,495 $ 82,100 $ 956,153 $ 618,510 Additions 1,089,767 39,419 — 1,129,186 796,544 Amortization — — — — (51,993 ) Foreign currency translation 68,183 577 (111 ) 68,649 37,331 Balance as of December 31, 2017 1,765,508 306,491 81,989 2,153,988 1,400,392 Additions 55,371 19,213 — 74,584 164,348 Amortization — — — — (88,972 ) Foreign currency translation (99,056 ) (707 ) (33 ) (99,796 ) (64,126 ) Balance as of December 31, 2018 $ 1,721,823 $ 324,997 $ 81,956 $ 2,128,776 $ 1,411,642 |
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, 2018 and 2017 is as follows: 2018 2017 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 1,356,353 $ (267,818 ) $ 1,088,535 $ 1,251,783 $ (199,741 ) $ 1,052,042 Trademarks 355,117 (32,755 ) 322,362 369,512 (23,056 ) 346,456 Non-competition agreements 5,009 (4,264 ) 745 6,946 (5,052 ) 1,894 $ 1,716,479 $ (304,837 ) $ 1,411,642 $ 1,628,241 $ (227,849 ) $ 1,400,392 |
Estimated Other Intangible Assets Amortization Expense | Estimated other intangible assets amortization expense for the succeeding five years is as follows: 2019 $ 88,299 2020 87,329 2021 87,062 2022 87,106 2023 86,567 $ 436,363 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Amount of Credit Facilities | Amounts outstanding under the Company’s credit facilities, net of debt issuance cost, consist of the following: December 31, 2018 2017 Unsecured Revolving Credit Facility, $1,500,000, LIBOR plus 1.375% variable, due October 30, 2022 $ 604,383 $ 590,000 Unsecured Term Loan A, $1,100,000, LIBOR plus 1.375% variable, due October 30, 2022 1,045,000 1,100,000 Unsecured term notes: July 29, 2016, Series G Senior Unsecured Notes, $50,000, 2.64% fixed, due July 29, 2021 50,000 50,000 December 2, 2013, Series F Senior Unsecured Notes, $250,000, 3.24% fixed, due December 2, 2023 250,000 250,000 October 30, 2017, Series J Senior Unsecured Notes, €225,000, 1.40% fixed, due October 30, 2024 257,468 269,955 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.24% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, €250,000, 1.81% fixed, due October 30, 2027 286,075 299,950 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 3.70% fixed, due October 30, 2027 120,000 120,000 October 30, 2017, Series L Senior Unsecured Notes, €125,000, 2.02% fixed, due October 30, 2029 143,038 149,975 October 30, 2017, Series M Senior Unsecured Notes, €100,000, 2.32% fixed, due October 30, 2032 114,430 119,980 Other unsecured debt 27,093 49,990 Total unsecured debt 3,147,487 3,249,850 Unamortized debt issuance costs (4,207 ) (4,841 ) Total debt 3,143,280 3,245,009 Less debt due within one year 711,147 694,989 Long-term debt, excluding current portion $ 2,432,133 $ 2,550,020 |
Schedule of Maturities of Long-term Debt | Approximate maturities under the Company’s credit facilities, net of debt issuance costs, are as follows: 2019 $ 711,147 2020 111,562 2021 186,866 2022 714,366 2023 249,654 Thereafter 1,169,685 $ 3,143,280 |
Leased Properties (Tables)
Leased Properties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 were approximately the following at December 31, 2018 : 2019 $ 305,257 2020 239,629 2021 173,119 2022 121,918 2023 82,940 Thereafter 192,862 Total minimum lease payments $ 1,115,725 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 Shares (1) Weighted Average Exercise Price (2) Outstanding at beginning of year 4,200 $ 82 Granted 360 $ — Exercised (772 ) $ 70 Forfeited (138 ) $ 94 Outstanding at end of year (3) 3,650 $ 85 Exercisable at end of year 2,477 $ 82 Shares available for future grants 8,135 (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, 2018 ranged from approximately $43 to $100 . The weighted average remaining contractual life of all SARs outstanding is approximately five 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 Nonvested at January 1, 2018 406 $ 91 Granted 360 $ 89 Vested (140 ) $ 88 Forfeited (63 ) $ 89 Nonvested at December 31, 2018 563 $ 91 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 266,628 $ 256,728 Pension liability not yet deducted for tax purposes 277,929 257,766 Net operating loss 29,785 31,046 574,342 545,540 Deferred tax liabilities related to: Employee and retiree benefits 218,124 210,429 Inventory 95,280 93,067 Other intangible assets 296,736 287,018 Property, plant, and equipment 72,463 66,727 Other 32,978 35,859 715,581 693,100 Net deferred tax liability before valuation allowance (141,239 ) (147,560 ) Valuation allowance (26,095 ) (5,590 ) Total net deferred tax liability $ (167,334 ) $ (153,150 ) |
Components of Income before Income Taxes | The components of income before income taxes are as follows: 2018 2017 2016 United States $ 790,592 $ 813,078 $ 934,476 Foreign 285,020 196,190 139,864 Income before income taxes $ 1,075,612 $ 1,009,268 $ 1,074,340 |
Components of Income Tax Expense | The components of income tax expense are as follows: 2018 2017 2016 Current: Federal $ 144,615 $ 252,337 $ 284,199 State 39,326 29,288 41,083 Foreign 77,306 44,896 28,593 Deferred: Federal 15,167 71,238 26,684 State 5,770 13,663 3,857 Foreign (17,046 ) (18,911 ) 2,684 $ 265,138 $ 392,511 $ 387,100 |
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: 2018 2017 2016 Statutory rate applied to income (1) $ 225,879 $ 353,259 $ 376,019 Plus state income taxes, net of Federal tax benefit 35,626 27,918 29,211 Taxation of foreign operations, net (2) (7,639 ) (33,984 ) (18,057 ) U.S. tax reform - transition tax 4,875 37,132 — U.S. tax reform - deferred tax remeasurement 424 13,854 — Foreign rate change - deferred tax remeasurement (1,461 ) (9,338 ) — Book tax basis difference in investment (11,944 ) — — Valuation allowance 20,505 1,273 371 Other (1,127 ) 2,397 (444 ) $ 265,138 $ 392,511 $ 387,100 (1) U.S. statutory rates applied to income are as follows: 2018 at 21% , 2017 and 2016 at 35% . (2) The Company's effective tax rate reflects the net benefit of having operations outside of the U.S. which are taxed at statutory rates different from the U.S. statutory rate, with some income being fully or partially exempt from income taxes due to various operating and financing activities. |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2018 2017 2016 Balance at beginning of year $ 14,697 $ 15,190 $ 15,815 Additions based on tax positions related to the current year 2,034 2,644 2,184 Additions for tax positions of prior years 4,787 1,511 1,317 Reductions for tax positions for prior years (725 ) (430 ) (1,369 ) Reduction for lapse in statute of limitations (2,338 ) (3,917 ) (2,516 ) Settlements (27 ) (301 ) (241 ) Balance at end of year $ 18,428 $ 14,697 $ 15,190 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Changes in Benefit Obligation | Changes in benefit obligations for the years ended December 31, 2018 and 2017 were: 2018 2017 Changes in benefit obligation Benefit obligation at beginning of year $ 2,435,765 $ 2,306,859 Service cost 10,410 8,459 Interest cost 88,247 96,651 Plan participants’ contributions 2,466 2,454 Actuarial (gain) loss (122,556 ) 94,546 Foreign currency exchange rate changes (18,416 ) 15,073 Gross benefits paid (118,643 ) (106,885 ) Plan amendments — 4,768 Acquired plans 770 13,840 Benefit obligation at end of year $ 2,278,043 $ 2,435,765 |
Assumptions Used to Measure Pension Benefit Obligations | The assumptions used to measure the pension benefit obligations for the plans at December 31, 2018 and 2017 , were: 2018 2017 Weighted average discount rate 4.36 % 3.70 % Rate of increase in future compensation levels 3.14 % 3.11 % |
Changes in Plan Assets | Changes in plan assets for the years ended December 31, 2018 and 2017 were: 2018 2017 Changes in plan assets Fair value of plan assets at beginning of year $ 2,206,479 $ 1,965,502 Actual return on plan assets (86,418 ) 277,650 Foreign currency exchange rate changes (18,054 ) 14,449 Employer contributions 57,549 53,309 Plan participants’ contributions 2,466 2,454 Benefits paid (118,643 ) (106,885 ) Fair value of plan assets at end of year $ 2,043,379 $ 2,206,479 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | For the years ended December 31, 2018 and 2017 , the aggregate benefit obligation and aggregate fair value of plan assets for plans with benefit obligations in excess of plan assets were as follows: 2018 2017 Aggregate benefit obligation $ 2,106,348 $ 2,241,690 Aggregate fair value of plan assets 1,863,245 2,003,831 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | For the years ended December 31, 2018 and 2017 , the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets were as follows: 2018 2017 Aggregate accumulated benefit obligation $ 2,070,183 $ 2,210,590 Aggregate fair value of plan assets 1,855,714 1,996,017 |
Asset Allocations for Funded Pension Plans | The asset allocations for the Company’s funded pension plans at December 31, 2018 and 2017 , and the target allocation for 2019 , by asset category were: Target Allocation Percentage of Plan Assets at December 31 2019 2018 2017 Asset Category Equity securities 72 % 67 % 71 % Debt securities 28 % 33 % 29 % 100 % 100 % 100 % |
Fair Value of Plan Assets by Asset Category | 2018 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 457,567 $ 166,045 $ 291,522 $ — $ — Genuine Parts Company common stock 193,810 — 193,810 — — Other stocks 713,924 — 713,882 — 42 Debt Securities Short-term investments 30,855 — 30,855 — — Cash and equivalents 14,583 — 14,583 — — Government bonds 223,750 — 159,483 64,267 — Corporate bonds 227,616 — — 227,616 — Asset-backed and mortgage-backed securities 8,866 — — 8,866 — Other-international 29,471 — 29,126 345 — Municipal bonds 8,747 — — 8,747 — Mutual funds—fixed income 131,755 86,443 — 45,312 — Other Cash surrender value of life insurance policies 2,435 — — 2,435 Total $ 2,043,379 $ 252,488 $ 1,433,261 $ 355,153 $ 2,477 2017 Total Assets Measured at NAV Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities Common stocks — mutual funds — equity $ 536,609 $ 193,628 $ 342,981 $ — $ — Genuine Parts Company common stock 191,771 — 191,771 — — Other stocks 838,694 — 838,659 — 35 Debt Securities Short-term investments 47,745 — 47,745 — — Cash and equivalents 13,530 — 13,530 — — Government bonds 180,838 — 121,834 59,004 — Corporate bonds 207,978 — — 207,978 — Asset-backed and mortgage-backed securities 9,725 — — 9,725 — Convertible securities 211 — — 211 — Other-international 29,431 — 29,221 210 — Municipal bonds 7,346 — — 7,346 — Mutual funds—fixed income 139,801 92,248 — 47,553 — Other Options and futures 38 — 38 — — Cash surrender value of life insurance policies 2,762 — — — 2,762 Total $ 2,206,479 $ 285,876 $ 1,585,779 $ 332,027 $ 2,797 |
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: 2018 2017 Other long-term asset $ 8,440 $ 8,573 Other current liability (9,213 ) (9,280 ) Pension and other post-retirement liabilities (233,891 ) (228,579 ) $ (234,664 ) $ (229,286 ) |
Amounts Recognized In Accumulated Other Comprehensive Loss Table | Amounts recognized in accumulated other comprehensive loss consist of: 2018 2017 Net actuarial loss $ 1,014,794 $ 941,063 Prior service cost 5,939 5,773 $ 1,020,733 $ 946,836 |
Expected Cash Flows for Pension Plans | Information about the expected cash flows for the pension plans follows: Employer contribution 2019 (expected) $ 6,034 Expected benefit payments: 2019 $ 118,340 2020 122,253 2021 127,460 2022 132,988 2023 137,669 2024 through 2028 734,372 |
Components of Net Periodic Benefit (Income) Cost | Net periodic benefit income included the following components: 2018 2017 2016 Service cost $ 10,410 $ 8,459 $ 7,746 Interest cost 88,247 96,651 104,485 Expected return on plan assets (154,006 ) (155,432 ) (156,832 ) Amortization of prior service credit (147 ) (350 ) (432 ) Amortization of actuarial loss 39,721 38,034 31,641 Net periodic benefit income $ (15,775 ) $ (12,638 ) $ (13,392 ) |
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: 2018 2017 2016 Current year actuarial loss (gain) $ 117,867 $ (27,672 ) $ 152,415 Recognition of actuarial loss (39,721 ) (38,034 ) (31,641 ) Current year prior service cost — 4,768 2,063 Recognition of prior service credit 147 350 432 Total recognized in other comprehensive income (loss) $ 78,293 $ (60,588 ) $ 123,269 Total recognized in net periodic benefit income and other comprehensive income (loss) $ 62,518 $ (73,226 ) $ 109,877 |
Estimated Amounts Amortized from Accumulated Other Comprehensive Loss | The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit income in 2019 are as follows: Actuarial loss $ 30,944 Prior service credit (66 ) Total $ 30,878 |
Assumptions Used To Measure Net Periodic Benefit (Income) Cost | The assumptions used in measuring the net periodic benefit income for the plans follow: 2018 2017 2016 Weighted average discount rate 3.70 % 4.26 % 4.82 % Rate of increase in future compensation levels 3.11 % 3.15 % 3.12 % Expected long-term rate of return on plan assets 7.14 % 7.80 % 7.83 % |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the preliminary, estimated fair values of the assets acquired and liabilities assumed at the acquisition date as well as the adjustments made when finalizing the acquisition accounting during the year ended December 31, 2018 (referred to as the "measurement period adjustments”). The measurement period adjustments primarily resulted from revisions to the valuation of certain tangible and intangible assets. The adjustments to current period earnings that would have been recognized in previous periods if the acquisition accounting had been completed on the acquisition date were not material. November 2, 2017 Measurement Period Adjustments As Adjusted Trade accounts receivable $ 380,000 $ 6,000 $ 386,000 Merchandise inventories 374,000 4,000 378,000 Prepaid expenses and other current assets 213,000 10,000 223,000 Intangible assets 727,000 86,000 813,000 Deferred tax assets 4,000 (2,000 ) 2,000 Property and equipment 93,000 (1,000 ) 92,000 Other assets 25,000 (11,000 ) 14,000 Total identifiable assets acquired 1,816,000 92,000 1,908,000 Current liabilities (768,000 ) (50,000 ) (818,000 ) Long-term debt (769,000 ) — (769,000 ) Pension and other post-retirement benefit liabilities (14,000 ) — (14,000 ) Deferred tax liabilities (151,000 ) (21,000 ) (172,000 ) Other long-term liabilities (32,000 ) (2,000 ) (34,000 ) Total liabilities assumed (1,734,000 ) (73,000 ) (1,807,000 ) Net identifiable assets acquired 82,000 19,000 101,000 Noncontrolling interests in subsidiaries (38,000 ) 1,000 (37,000 ) Goodwill 1,036,000 (33,000 ) 1,003,000 Net assets acquired $ 1,080,000 $ (13,000 ) $ 1,067,000 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Data | 2018 2017 2016 Net sales: (1) Automotive $ 10,526,520 $ 8,583,317 $ 8,040,407 Industrial (2) 6,298,584 5,805,012 5,399,416 Business products 1,909,969 1,920,472 1,899,890 Total net sales $ 18,735,073 $ 16,308,801 $ 15,339,713 Operating profit: Automotive $ 854,389 $ 720,465 $ 715,154 Industrial (2) 487,360 440,454 397,147 Business products 88,756 98,882 117,035 Total operating profit 1,430,505 1,259,801 1,229,336 Interest expense, net (92,093 ) (38,677 ) (19,525 ) Corporate expense (3) (173,828 ) (159,863 ) (94,601 ) Intangible asset amortization (88,972 ) (51,993 ) (40,870 ) Income before income taxes $ 1,075,612 $ 1,009,268 $ 1,074,340 Assets: Automotive $ 6,246,911 $ 6,140,829 $ 4,601,150 Industrial (2) 1,790,410 1,645,271 1,495,397 Business products 860,279 859,335 907,119 Corporate 245,022 212,566 281,071 Goodwill and other intangible assets 3,540,418 3,554,380 1,574,663 Total assets $ 12,683,040 $ 12,412,381 $ 8,859,400 2018 2017 2016 Depreciation and amortization: Automotive $ 105,238 $ 71,405 $ 65,372 Industrial (2) 14,518 13,446 13,338 Business products 10,472 11,262 11,398 Corporate 22,435 19,585 16,509 Intangible asset amortization 88,972 51,993 40,870 Total depreciation and amortization $ 241,635 $ 167,691 $ 147,487 Capital expenditures: Automotive $ 198,910 $ 118,181 $ 73,339 Industrial (2) 21,783 28,566 33,093 Business products 7,320 6,726 12,072 Corporate 4,409 3,287 42,139 Total capital expenditures $ 232,422 $ 156,760 $ 160,643 Net sales: United States $ 13,927,091 $ 13,246,619 $ 12,779,971 Europe 1,860,912 256,364 — Canada 1,624,890 1,525,421 1,368,743 Australasia 1,193,148 1,162,122 1,083,779 Mexico 129,032 118,275 107,220 Total net sales $ 18,735,073 $ 16,308,801 $ 15,339,713 Net property, plant, and equipment: United States $ 726,068 $ 647,386 $ 561,164 Europe 110,184 96,857 — Canada 91,387 90,857 81,260 Australasia 95,578 95,299 79,413 Mexico 4,014 6,303 6,287 Total net property, plant, and equipment $ 1,027,231 $ 936,702 $ 728,124 (1) The net effect of discounts, incentives, and freight billed to customers has been allocated to their respective segments for the current and prior periods. Previously, the net effect of such items were captured and presented separately in a line item entitled “Other.” (2) Effective January 1, 2018, the electrical materials segment became a division of the industrial segment. These two reporting segments became a single reporting segment, the Industrial Parts Group. The change in segment reporting is presented retrospectively. (3) Includes $36,105 of expense for the year ended December 31, 2018 , respectively, from transaction and other costs related to the AAG acquisition and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018. See the acquisitions and divestitures footnote for additional information. The year ended December 31, 2017 includes $49,141 in transaction and other costs primarily related to the AAG acquisition. |
Revenue from External Customers by Geographic Areas | 2018 2017 2016 North America: Automotive $ 7,472,460 $ 7,164,831 $ 6,956,628 Industrial 6,298,584 5,805,012 5,399,416 Business products 1,909,969 1,920,472 1,899,890 Total North America $ 15,681,013 $ 14,890,315 $ 14,255,934 Australasia - Automotive $ 1,193,148 $ 1,162,122 $ 1,083,779 Europe - Automotive $ 1,860,912 $ 256,364 $ — Total net sales $ 18,735,073 $ 16,308,801 $ 15,339,713 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)Location$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of locations | Location | 3,100 | ||||
Provisions for doubtful accounts | $ 17,147,000 | $ 13,932,000 | $ 11,515,000 | ||
Allowance for doubtful accounts receivable | 21,888,000 | 17,612,000 | |||
Excess of FIFO costs over stated LIFO value | 479,500,000 | 440,550,000 | |||
Reduction in cost of goods sold by the effect of LIFO liquidations | 0 | 2,000,000 | 6,000,000 | ||
Merchandise inventory | 233,192,000 | 203,589,000 | |||
Impairment of goodwill | 0 | 0 | 0 | ||
Fair value of fixed rate debt | 1,427,381,000 | 1,497,179,000 | |||
Long-term debt | 1,466,803,000 | 1,506,400,000 | |||
Advertising costs | 204,700,000 | 166,000,000 | 153,100,000 | ||
Cost of goods sold | $ 12,751,286,000 | $ 11,402,403,000 | $ 10,740,106,000 | ||
Outstanding options to purchase common shares not included in dilutive share (in shares) | shares | 1,490 | 1,920 | 1,290 | ||
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 85 | $ 85 | $ 85 | ||
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 100 | $ 85 | $ 85 | ||
Cumulative effect of new accounting principle in period of adoption | $ (5,843,000) | ||||
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | $ (5,843,000) | ||||
Accounting Standards Update 2018-02 [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | $ 125,000,000 | ||||
Shipping and Handling [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of goods sold | $ 390,000,000 | $ 290,000,000 | $ 230,000,000 | ||
Minimum [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Share-based payment awards granted vesting period range (in years) | 1 year | ||||
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease, asset | 920,000,000 | ||||
Operating lease, liability | 920,000,000 | ||||
Minimum [Member] | Building and Building Improvements [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property plant and equipment useful life (in years) | 10 years | ||||
Minimum [Member] | Machinery and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property plant and equipment useful life (in years) | 5 years | ||||
Maximum [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Share-based payment awards granted vesting period range (in years) | 5 years | ||||
Maximum [Member] | Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease, asset | 1,110,000,000 | ||||
Operating lease, liability | $ 1,110,000,000 | ||||
Maximum [Member] | Building and Building Improvements [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property plant and equipment useful life (in years) | 40 years | ||||
Maximum [Member] | Machinery and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property plant and equipment useful life (in years) | 15 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Foreign currency translation | $ (499,482) | $ (266,247) |
Unrealized gain (loss) on cash flow and net investment hedges, net of tax | 10,726 | (17,388) |
Unrecognized net actuarial loss, net of tax | (623,363) | (566,876) |
Unrecognized prior service cost, net of tax | (2,959) | (2,081) |
Total accumulated other comprehensive loss | $ (1,115,078) | $ (852,592) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in Accumulated Other Comprehensive Loss by Component | ||
Beginning balance | $ 3,412,152 | |
Other comprehensive income (loss) before reclassifications, net of tax | (292,329) | $ 137,253 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 29,843 | 23,176 |
Net current period other comprehensive (loss) income | (262,486) | 160,429 |
Ending balance | 3,450,451 | 3,412,152 |
Cash Flow and Net Investment Hedges [Member] | ||
Changes in Accumulated Other Comprehensive Loss by Component | ||
Beginning balance | (17,388) | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 26,563 | (17,388) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 1,551 | 0 |
Net current period other comprehensive (loss) income | 28,114 | (17,388) |
Ending balance | 10,726 | (17,388) |
Foreign Currency Translation [Member] | ||
Changes in Accumulated Other Comprehensive Loss by Component | ||
Beginning balance | (266,247) | (403,941) |
Other comprehensive income (loss) before reclassifications, net of tax | (233,235) | 137,694 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Net current period other comprehensive (loss) income | (233,235) | 137,694 |
Ending balance | (499,482) | (266,247) |
Accumulated Other Comprehensive Loss [Member] | ||
Changes in Accumulated Other Comprehensive Loss by Component | ||
Beginning balance | (852,592) | (1,013,021) |
Ending balance | (1,115,078) | (852,592) |
Pension Plan [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Changes in Accumulated Other Comprehensive Loss by Component | ||
Beginning balance | (567,443) | (607,468) |
Other comprehensive income (loss) before reclassifications, net of tax | (85,677) | 16,640 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 28,581 | 23,385 |
Net current period other comprehensive (loss) income | (57,096) | 40,025 |
Ending balance | (624,539) | (567,443) |
Other Postretirement Benefits Plan [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Changes in Accumulated Other Comprehensive Loss by Component | ||
Beginning balance | (1,514) | (1,612) |
Other comprehensive income (loss) before reclassifications, net of tax | 20 | 307 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (289) | (209) |
Net current period other comprehensive (loss) income | (269) | 98 |
Ending balance | $ (1,783) | $ (1,514) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings (accumulated deficit) | $ (4,341,212) | $ (4,049,965) | |
Right to recover product | 233,192 | 203,589 | |
Other current liabilities | $ 1,088,428 | $ 1,045,177 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings (accumulated deficit) | $ 8,000 | ||
Other current liabilities | $ 8,000 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 2,235,925 | $ 1,981,055 | |
Less: accumulated depreciation | 1,208,694 | 1,044,353 | |
Property, plant and equipment, net | 1,027,231 | 936,702 | $ 728,124 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 105,960 | 104,049 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 725,781 | 689,389 | |
Machinery, Equipment, and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 1,404,184 | $ 1,187,617 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | |||
Goodwill, beginning balance | $ 2,153,988 | $ 956,153 | |
Additions | 74,584 | 1,129,186 | |
Foreign currency translation | (99,796) | 68,649 | |
Goodwill, ending balance | 2,128,776 | 2,153,988 | $ 956,153 |
Other Intangible Assets, Net | |||
Other intangible assets, net, beginning balance | 1,400,392 | 618,510 | |
Additions | 164,348 | 796,544 | |
Amortization | (88,972) | (51,993) | (40,870) |
Foreign currency translation | (64,126) | 37,331 | |
Other intangible assets, net, ending balance | 1,411,642 | 1,400,392 | 618,510 |
Automotive [Member] | |||
Goodwill | |||
Goodwill, beginning balance | 1,765,508 | 607,558 | |
Additions | 55,371 | 1,089,767 | |
Foreign currency translation | (99,056) | 68,183 | |
Goodwill, ending balance | 1,721,823 | 1,765,508 | 607,558 |
Industrial [Member] | |||
Goodwill | |||
Goodwill, beginning balance | 306,491 | 266,495 | |
Additions | 19,213 | 39,419 | |
Foreign currency translation | (707) | 577 | |
Goodwill, ending balance | 324,997 | 306,491 | 266,495 |
Business Products [Member] | |||
Goodwill | |||
Goodwill, beginning balance | 81,989 | 82,100 | |
Additions | 0 | 0 | |
Foreign currency translation | (33) | (111) | |
Goodwill, ending balance | $ 81,956 | $ 81,989 | $ 82,100 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Gross Carrying Amounts and Accumulated Amortization Relating to Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,716,479 | $ 1,628,241 | |
Accumulated Amortization | (304,837) | (227,849) | |
Net | 1,411,642 | 1,400,392 | $ 618,510 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,356,353 | 1,251,783 | |
Accumulated Amortization | (267,818) | (199,741) | |
Net | 1,088,535 | 1,052,042 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 355,117 | 369,512 | |
Accumulated Amortization | (32,755) | (23,056) | |
Net | 322,362 | 346,456 | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 5,009 | 6,946 | |
Accumulated Amortization | (4,264) | (5,052) | |
Net | $ 745 | $ 1,894 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Other Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for other intangible assets total | $ 88,972 | $ 51,993 | $ 40,870 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2,019 | 88,299 | ||
2,020 | 87,329 | ||
2,021 | 87,062 | ||
2,022 | 87,106 | ||
2,023 | 86,567 | ||
Estimated other intangible assets amortization expense | $ 436,363 |
Credit Facilities - Additional
Credit Facilities - Additional Information (Detail) | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 30, 2017EUR (€)loan | Oct. 30, 2017USD ($)loan | Oct. 29, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||
Long-term debt, bearing variable interest, amount | $ 1,176,477,000 | $ 1,690,000,000 | |||||
Weighted average interest rate on outstanding borrowings | 2.71% | 2.71% | 2.70% | ||||
Unused letter of credit outstanding due to workers' compensation and insurance reserve | $ 63,504,000 | $ 62,019,000 | |||||
Syndicated Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 2,600,000,000 | ||||||
Line of credit facility, interest rate at period end | 2.70% | 2.70% | |||||
Line of credit facility amount of option to increase additional borrowing | $ 1,000,000,000 | ||||||
Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of loans outstanding | loan | 8 | 8 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||
Revolving Credit Facility [Member] | 2012 Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,200,000,000 | ||||||
Revolving Credit Facility [Member] | Syndicated Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||
Line of credit, current | 604,383,000 | 590,000,000 | |||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 1,100,000,000 | ||||||
Term Loan [Member] | Syndicated Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 1,100,000,000 | ||||||
Unsecured debt | 1,045,000,000 | $ 1,100,000,000 | |||||
Series G Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 50,000,000 | ||||||
Series G Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 50,000 | ||||||
Series F Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 250,000,000 | ||||||
Series F Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 250,000 | ||||||
Series J Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | € 225,000,000 | ||||||
Series J Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | € 225,000 | ||||||
Series H Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 250,000,000 | ||||||
Series H Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 250,000 | ||||||
Series K Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | 250,000,000 | ||||||
Series K Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | 250,000 | ||||||
Series I Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 120,000,000 | ||||||
Series I Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 120,000 | ||||||
Series L Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | 125,000,000 | ||||||
Series L Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | 125,000 | ||||||
Series M Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | € 100,000,000,000 | ||||||
Series M Senior Unsecured Notes [Member] | Senior Fixed Rate Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | € 100,000 |
Credit Facilities - Outstanding
Credit Facilities - Outstanding Amount of Credit Facilities (Detail) | 12 Months Ended | |||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 1,466,803,000 | $ 1,506,400,000 | ||
Total unsecured debt | 3,147,487,000 | 3,249,850,000 | ||
Unamortized debt issuance costs | (4,207,000) | (4,841,000) | ||
Total debt | 3,143,280,000 | 3,245,009,000 | ||
Less debt due within one year | 711,147,000 | 694,989,000 | ||
Long-term debt, excluding current portion | 2,432,133,000 | 2,550,020,000 | ||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,500,000,000 | |||
Debt instrument basis spread on variable rate | 1.375% | |||
Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,100,000,000 | |||
Debt instrument basis spread on variable rate | 1.375% | |||
Series G Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | 50,000,000 | 50,000,000 | ||
Debt instrument, face amount | $ 50,000,000 | |||
Debt instrument, stated percentage | 2.64% | 2.64% | ||
Series F Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 250,000,000 | 250,000,000 | ||
Debt instrument, face amount | $ 250,000,000 | |||
Debt instrument, stated percentage | 3.24% | 3.24% | ||
Series J Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 257,468,000 | 269,955,000 | ||
Debt instrument, face amount | € | € 225,000,000 | |||
Debt instrument, stated percentage | 1.40% | 1.40% | ||
Series H Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 250,000,000 | 250,000,000 | ||
Debt instrument, face amount | $ 250,000,000 | |||
Debt instrument, stated percentage | 3.24% | 3.24% | ||
Series K Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 286,075,000 | 299,950,000 | ||
Debt instrument, face amount | € | € 250,000,000 | |||
Debt instrument, stated percentage | 1.81% | 1.81% | ||
Series I Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 120,000,000 | 120,000,000 | ||
Debt instrument, face amount | $ 120,000,000 | |||
Debt instrument, stated percentage | 3.70% | 3.70% | ||
Series L Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 143,038,000 | 149,975,000 | ||
Debt instrument, face amount | € | € 125,000,000 | |||
Debt instrument, stated percentage | 2.02% | 2.02% | ||
Series M Senior Unsecured Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 114,430,000 | 119,980,000 | ||
Debt instrument, face amount | € | € 100,000,000,000 | |||
Debt instrument, stated percentage | 2.32% | 2.32% | ||
Other Unsecured Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured debt | $ 27,093,000 | 49,990,000 | ||
Syndicated Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 2,600,000,000 | |||
Syndicated Facility [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, current | 604,383,000 | 590,000,000 | ||
Maximum borrowing capacity | 1,500,000,000 | |||
Syndicated Facility [Member] | Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured debt | $ 1,045,000,000 | $ 1,100,000,000 | ||
Maximum borrowing capacity | $ 1,100,000,000 |
Credit Facilities - Maturity of
Credit Facilities - Maturity of Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 711,147 | |
2,020 | 111,562 | |
2,021 | 186,866 | |
2,022 | 714,366 | |
2,023 | 249,654 | |
Thereafter | 1,169,685 | |
Total debt | $ 3,143,280 | $ 3,245,009 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) | 12 Months Ended | |||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Carrying amount of nonderivative instruments | $ 1,466,803,000 | $ 1,506,400,000 | ||
Unrealized loss on net investment hedge | 28,360,000 | |||
Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount of nonderivative instruments | € | € 700,000,000 | |||
Carrying amount of nonderivative instruments | $ 801,010,000 | |||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, amount of hedged item | $ 500,000,000 | |||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, amount of hedged item | $ 500,000,000 |
Leased Properties (Detail)
Leased Properties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
2,019 | $ 305,257 | ||
2,020 | 239,629 | ||
2,021 | 173,119 | ||
2,022 | 121,918 | ||
2,023 | 82,940 | ||
Thereafter | 192,862 | ||
Total minimum lease payments | 1,115,725 | ||
Rental expense under operating leases | $ 366,000 | $ 306,000 | $ 278,000 |
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Renewal term | 1 year | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Renewal term | 20 years |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost related to nonvested awards, unrecognized | $ 36,500 | ||
Weighted-average period to recognize compensation cost | 2 years | ||
Aggregate intrinsic value, outstanding | $ 97,800 | $ 95,400 | |
Aggregate intrinsic value, vested | $ 41,300 | 52,900 | |
Weighted-average remaining contractual life for exercisable options and RSUs (in years) | 5 years | ||
Share-based compensation | $ 20,716 | 16,892 | $ 19,719 |
Income tax benefit | 5,600 | $ 4,600 | $ 7,900 |
Weighted-average, risk-free interest | 2.30% | 1.60% | |
Weighted-average, dividend yield | 2.80% | 2.70% | |
Weighted-average, annual historical volatility factor | 19.00% | 19.00% | |
Weighted-average, expected life | 6 years | 6 years | |
Fair value of shares vested | 20,800 | $ 15,500 | $ 18,200 |
Weighted-average grant date fair value of options and SARs granted (in dollars per share) | $ 13.89 | $ 13.52 | |
Aggregate intrinsic value of options exercised | $ 32,600 | $ 16,800 | $ 48,200 |
Granted (in shares) | 360 | ||
Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 746 | 724 | |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 360 | 171 | 170 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Company's Share-Based Compensation Activity and Related Information (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 4,200 | ||
Granted (in shares) | 360 | ||
Exercised (in shares) | (772) | ||
Forfeited (in shares) | (138) | ||
Ending balance (in shares) | 3,650 | 4,200 | |
Exercisable at end of year (in shares) | 2,477 | ||
Shares available for future grants (in shares) | 8,135 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning balance, weighted average exercise price (in dollars per share) | $ 82 | ||
Granted, weighted average exercise price (in dollars per share) | 0 | ||
Exercised, weighed average exercise price (in dollars per share) | 70 | ||
Forfeited, weighted average exercise price (in dollars per share) | 94 | ||
Ending balance, weighted average exercise price (in dollars per share) | 85 | $ 82 | |
Exercisable at end of year, weighted average exercise price (in dollars per share) | 82 | ||
Exercise price range, lower range limit (in dollars per share) | 85 | 85 | $ 85 |
Exercise price range, upper range limit (in dollars per share) | 100 | $ 85 | $ 85 |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Exercise price range, lower range limit (in dollars per share) | 43 | ||
Exercise price range, upper range limit (in dollars per share) | $ 100 | ||
Outstanding options, weighted average remaining contractual term | 5 years |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Company's Nonvested Share Awards (RSUs) Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 406 | |
Granted (in shares) | 360 | |
Vested (in shares) | (140) | |
Forfeited (in shares) | (63) | |
Ending balance (in shares) | 563 | 406 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value (in dollars per share) | $ 91 | $ 91 |
Granted, weighted-average grant date fair value (in dollars per share) | 89 | |
Vested, weighted-average grant date fair value (in dollars per share) | 88 | |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 89 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Provisional income tax expense (benefit) | $ 5,299 | ||
Deferred tax asset, provisional income tax expense | $ 13,854 | ||
Provisional income tax expense (benefit), adjustment | 424 | ||
Accumulated foreign earnings, provisional liability | 37,132 | ||
Transition tax for accumulated foreign earnings, provisional income tax expense | 4,875 | ||
Operating loss carryforwards | 125,013 | ||
Operating loss carryforwards, not subject to expiration | 89,710 | ||
Operating loss carryforwards, subject to expiration | 35,303 | ||
Unrecognized tax benefits including interest and penalties | 20,669 | 16,919 | |
Unrecognized tax benefits that would impact effective tax rate | 14,760 | 10,847 | |
Interest and penalties paid (received) | 18 | (3,384) | $ 5 |
Accrued interest and penalties | $ 2,242 | $ 2,151 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets related to: | ||
Expenses not yet deducted for tax purposes | $ 266,628 | $ 256,728 |
Pension liability not yet deducted for tax purposes | 277,929 | 257,766 |
Net operating loss | 29,785 | 31,046 |
Net deferred tax assets, gross | 574,342 | 545,540 |
Deferred tax liabilities related to: | ||
Employee and retiree benefits | 218,124 | 210,429 |
Inventory | 95,280 | 93,067 |
Other intangible assets | 296,736 | 287,018 |
Property, plant, and equipment | 72,463 | 66,727 |
Other | 32,978 | 35,859 |
Deferred tax liabilities, total | 715,581 | 693,100 |
Net deferred tax liability before valuation allowance | (141,239) | (147,560) |
Valuation allowance | (26,095) | (5,590) |
Total net deferred tax liability | $ (167,334) | $ (153,150) |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 790,592 | $ 813,078 | $ 934,476 |
Foreign | 285,020 | 196,190 | 139,864 |
Income before income taxes | $ 1,075,612 | $ 1,009,268 | $ 1,074,340 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 144,615 | $ 252,337 | $ 284,199 |
State | 39,326 | 29,288 | 41,083 |
Foreign | 77,306 | 44,896 | 28,593 |
Deferred: | |||
Federal | 15,167 | 71,238 | 26,684 |
State | 5,770 | 13,663 | 3,857 |
Foreign | (17,046) | (18,911) | 2,684 |
Income tax expense, total | $ 265,138 | $ 392,511 | $ 387,100 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Statutory rate applied to income | $ 225,879 | $ 353,259 | $ 376,019 |
Plus state income taxes, net of Federal tax benefit | 35,626 | 27,918 | 29,211 |
Taxation of foreign operations, net | (7,639) | (33,984) | (18,057) |
U.S. tax reform - transition tax | 4,875 | 37,132 | 0 |
Book tax basis difference in investment | (11,944) | 0 | 0 |
Valuation allowance | 20,505 | 1,273 | 371 |
Other | (1,127) | 2,397 | (444) |
Income tax expense, total | 265,138 | 392,511 | 387,100 |
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred tax remeasurement | 424 | 13,854 | 0 |
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred tax remeasurement | $ (1,461) | $ (9,338) | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 14,697 | $ 15,190 | $ 15,815 |
Additions based on tax positions related to the current year | 2,034 | 2,644 | 2,184 |
Additions for tax positions of prior years | 4,787 | 1,511 | 1,317 |
Reductions for tax positions for prior years | (725) | (430) | (1,369) |
Reduction for lapse in statute of limitations | (2,338) | (3,917) | (2,516) |
Settlements | (27) | (301) | (241) |
Balance at end of year | $ 18,428 | $ 14,697 | $ 15,190 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization period of plan assets gains and losses (in years) | 5 years | ||
Benefit obligations | $ 2,278,043 | $ 2,435,765 | $ 2,306,859 |
Total accumulated benefit obligations | 2,247,013 | 2,409,091 | |
Fair value of plan assets | $ 2,043,379 | $ 2,206,479 | 1,965,502 |
Genuine Parts Company common stock as a percentage of total plan assets | 9.00% | 9.00% | |
Dividend payments on Genuine Parts Company common stock received by plan | $ 5,813 | $ 5,450 | |
Expected rate of return on plan assets for measuring next fiscal year pension cost or income | 7.12% | ||
Pension benefits expected to be paid from employer assets in next fiscal year | $ 9,215 | ||
Employer contributions | $ 57,549 | 53,309 | |
S&P 500 Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 47.00% | ||
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 | 7.00% | ||
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% | ||
MSCI Emerging Market Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 3.00% | ||
BarCap U.S. Govt/Credit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Passive portfolio benchmark | 28.00% | ||
Genuine Parts Company Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 193,810 | 191,771 | |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | 2,055,701 | 2,187,700 | |
Fair value of plan assets | $ 1,831,513 | 1,969,196 | |
Number of plans | plan | 1 | ||
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 | $ 62,335 | 58,186 | $ 56,975 |
Canada [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 | $ 4,108 | $ 2,600 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in benefit obligation | |||
Benefit obligation at beginning of year | $ 2,435,765 | $ 2,306,859 | |
Service cost | 10,410 | 8,459 | $ 7,746 |
Interest cost | 88,247 | 96,651 | 104,485 |
Plan participants’ contributions | 2,466 | 2,454 | |
Actuarial (gain) loss | (122,556) | 94,546 | |
Foreign currency exchange rate changes | (18,416) | 15,073 | |
Gross benefits paid | (118,643) | (106,885) | |
Plan amendments | 0 | 4,768 | |
Acquired plans | 770 | 13,840 | |
Benefit obligation at end of year | $ 2,278,043 | $ 2,435,765 | $ 2,306,859 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Measure Pension Benefit Obligations for Plans (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Weighted average discount rate | 4.36% | 3.70% |
Rate of increase in future compensation levels | 3.14% | 3.11% |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Changes in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in plan assets | ||
Fair value of plan assets at beginning of year | $ 2,206,479 | $ 1,965,502 |
Actual return on plan assets | (86,418) | 277,650 |
Foreign currency exchange rate changes | (18,054) | 14,449 |
Employer contributions | 57,549 | 53,309 |
Plan participants’ contributions | 2,466 | 2,454 |
Benefits paid | (118,643) | (106,885) |
Fair value of plan assets at end of year | $ 2,043,379 | $ 2,206,479 |
Employee Benefit Plans - Aggreg
Employee Benefit Plans - Aggregate Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Aggregate benefit obligation | $ 2,106,348 | $ 2,241,690 |
Aggregate fair value of plan assets | $ 1,863,245 | $ 2,003,831 |
Employee Benefit Plans - Aggr_2
Employee Benefit Plans - Aggregate Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Aggregate accumulated benefit obligation | $ 2,070,183 | $ 2,210,590 |
Aggregate fair value of plan assets | $ 1,855,714 | $ 1,996,017 |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocations for Funded Pension Plans (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 100.00% | |
Actual plan asset allocation | 100.00% | 100.00% |
Defined Benefit Plan, Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 72.00% | |
Actual plan asset allocation | 67.00% | 71.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 28.00% | |
Actual plan asset allocation | 33.00% | 29.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 2,043,379 | $ 2,206,479 | $ 1,965,502 |
Assets Measured at NAV | 252,488 | 285,876 | |
Common Stocks - Mutual Funds - Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 457,567 | 536,609 | |
Assets Measured at NAV | 166,045 | 193,628 | |
Genuine Parts Company Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 193,810 | 191,771 | |
Assets Measured at NAV | 0 | 0 | |
Other Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 713,924 | 838,694 | |
Assets Measured at NAV | 0 | 0 | |
Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 30,855 | 47,745 | |
Assets Measured at NAV | 0 | 0 | |
Cash and Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 14,583 | 13,530 | |
Assets Measured at NAV | 0 | 0 | |
Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 223,750 | 180,838 | |
Assets Measured at NAV | 0 | 0 | |
Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 227,616 | 207,978 | |
Assets Measured at NAV | 0 | 0 | |
Asset Backed and Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,866 | 9,725 | |
Assets Measured at NAV | 0 | 0 | |
Convertible Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 211 | ||
Assets Measured at NAV | 0 | ||
Other-International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 29,471 | 29,431 | |
Assets Measured at NAV | 0 | 0 | |
Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,747 | 7,346 | |
Assets Measured at NAV | 0 | 0 | |
Municipal Funds-Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 131,755 | 139,801 | |
Assets Measured at NAV | 86,443 | 92,248 | |
Options and Futures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 38 | ||
Assets Measured at NAV | 0 | ||
Cash Surrender Value of Life Insurance Policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,435 | 2,762 | |
Assets Measured at NAV | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,433,261 | 1,585,779 | |
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 | 291,522 | 342,981 | |
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 | 193,810 | 191,771 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 713,882 | 838,659 | |
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 | 30,855 | 47,745 | |
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 | 14,583 | 13,530 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 159,483 | 121,834 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset Backed and Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Convertible Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other-International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 29,126 | 29,221 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal Funds-Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
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 | 38 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 355,153 | 332,027 | |
Significant Observable Inputs (Level 2) [Member] | Common Stocks - Mutual Funds - Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | Genuine Parts Company Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | Other Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | Cash and Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 64,267 | 59,004 | |
Significant Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 227,616 | 207,978 | |
Significant Observable Inputs (Level 2) [Member] | Asset Backed and Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,866 | 9,725 | |
Significant Observable Inputs (Level 2) [Member] | Convertible Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 211 | ||
Significant Observable Inputs (Level 2) [Member] | Other-International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 345 | 210 | |
Significant Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,747 | 7,346 | |
Significant Observable Inputs (Level 2) [Member] | Municipal Funds-Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 45,312 | 47,553 | |
Significant Observable Inputs (Level 2) [Member] | Options and Futures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Significant Observable Inputs (Level 2) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,477 | 2,797 | |
Significant Unobservable Inputs (Level 3) [Member] | Common Stocks - Mutual Funds - Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Genuine Parts Company Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Other Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 42 | 35 | |
Significant Unobservable Inputs (Level 3) [Member] | Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Cash and Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Asset Backed and Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Convertible Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Other-International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Municipal Funds-Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Options and Futures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $ 2,435 | $ 2,762 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Other long-term asset | $ 8,440 | $ 8,573 |
Other current liability | (9,213) | (9,280) |
Pension and other post-retirement liabilities | (233,891) | (228,579) |
Amounts recognized in consolidated balance sheets | $ (234,664) | $ (229,286) |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 1,014,794 | $ 941,063 |
Prior service cost | 5,939 | 5,773 |
Amounts recognized in accumulated other comprehensive loss | $ 1,020,733 | $ 946,836 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Cash Flows for Pension Plans (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
Employer contribution 2019 (expected) | $ 6,034 |
Expected benefit payments: | |
2,019 | 118,340 |
2,020 | 122,253 |
2,021 | 127,460 |
2,022 | 132,988 |
2,023 | 137,669 |
2024 through 2028 | $ 734,372 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit (Income) Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 10,410 | $ 8,459 | $ 7,746 |
Interest cost | 88,247 | 96,651 | 104,485 |
Expected return on plan assets | (154,006) | (155,432) | (156,832) |
Amortization of prior service credit | (147) | (350) | (432) |
Amortization of actuarial loss | 39,721 | 38,034 | 31,641 |
Net periodic benefit income | $ (15,775) | $ (12,638) | $ (13,392) |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Current year actuarial loss (gain) | $ 117,867 | $ (27,672) | $ 152,415 |
Recognition of actuarial loss | (39,721) | (38,034) | (31,641) |
Current year prior service cost | 0 | 4,768 | 2,063 |
Recognition of prior service credit | 147 | 350 | 432 |
Total recognized in other comprehensive income (loss) | 78,293 | (60,588) | 123,269 |
Total recognized in net periodic benefit income and other comprehensive income (loss) | $ 62,518 | $ (73,226) | $ 109,877 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Amounts Amortized from Accumulated Other Comprehensive Loss (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
Actuarial loss | $ 30,944 |
Prior service credit | (66) |
Total | $ 30,878 |
Employee Benefit Plans - Assu_2
Employee Benefit Plans - Assumptions Used in Measuring Net Periodic Benefit (Income) Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Weighted average discount rate | 3.70% | 4.26% | 4.82% |
Rate of increase in future compensation levels | 3.11% | 3.15% | 3.12% |
Expected long-term rate of return on plan assets | 7.14% | 7.80% | 7.83% |
Guarantees (Detail)
Guarantees (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Total borrowings of the independents and affiliates subject to guarantee | $ 759,726 | |
Guarantees related to borrowings | 78,000 | $ 65,000 |
Guarantees related to borrowings, other long-term liabilities | $ 78,000 | $ 65,000 |
Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Guaranteed obligations maturity (in years) | 1 year | |
Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Guaranteed obligations maturity (in years) | 6 years |
Legal Matter (Details)
Legal Matter (Details) $ in Thousands | Apr. 17, 2017USD ($) |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Amount awarded to other party | $ 81,500 |
Judicial Ruling [Member] | |
Loss Contingencies [Line Items] | |
Amount awarded to other party | $ 77,100 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) $ / shares in Units, $ in Thousands | Sep. 14, 2018USD ($) | Nov. 02, 2017USD ($) | Apr. 03, 2017USD ($)Location | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)LocationBusiness$ / shares | Dec. 31, 2017USD ($)Business$ / shares | Dec. 31, 2016USD ($)Business$ / shares |
Business Acquisition [Line Items] | ||||||||
Cash paid for acquisition | $ 283,000 | $ 1,457,000 | $ 420,000 | |||||
Goodwill and intangible assets acquired | 167,000 | 1,926,000 | 260,000 | |||||
Payment for debt extinguishment or debt prepayment cost | 0 | 833,775 | 0 | |||||
Finite-lived intangible assets acquired | 164,348 | 796,544 | ||||||
Net sales | $ 18,735,073 | $ 16,308,801 | $ 15,339,713 | |||||
Diluted net income per common share (in dollars per share) | $ / shares | $ 5.50 | $ 4.18 | $ 4.59 | |||||
Business Products Group [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from termination fee | $ 12,000 | |||||||
Grupo Auto Todo [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue of disposed business | $ 93,000 | |||||||
Grupo Auto Todo [Member] | Scenario, Forecast [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 12,000 | |||||||
Business exit costs | $ 30,000 | |||||||
Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other intangible assets acquired | $ 69,000 | $ 76,000 | $ 69,000 | $ 112,000 | ||||
Weighted average amortization lives (in years) | 15 years | 15 years | 17 years | |||||
Trademarks [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other intangible assets acquired | $ 28,000 | |||||||
Weighted average amortization lives (in years) | 35 years | |||||||
United States [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net sales | $ 13,927,091 | $ 13,246,619 | $ 12,779,971 | |||||
2017 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid for acquisition | $ 1,334,000 | |||||||
Company acquired | Business | 15 | |||||||
2016 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid for acquisition | $ 370,000 | |||||||
Company acquired | Business | 19 | |||||||
Alliance Automotive Group [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid for acquisition | $ 1,067,000 | |||||||
Weighted average amortization lives (in years) | 20 years | |||||||
Cash acquired from acquisition | $ 123,000 | |||||||
Payment for debt extinguishment or debt prepayment cost | 825,000 | |||||||
Intangible assets | 727,000 | 813,000 | ||||||
Net sales | $ 256,400 | |||||||
Diluted net income per common share (in dollars per share) | $ / shares | $ 0.07 | |||||||
Pro forma revenue | $ 17,627,000 | $ 16,575,000 | ||||||
Pro forma earnings per share, diluted (in dollars per share) | $ / shares | $ 4.56 | $ 4.55 | ||||||
Alliance Automotive Group [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets acquired | 630,133 | |||||||
Alliance Automotive Group [Member] | Trademarks [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets acquired | $ 181,702 | |||||||
Alliance Automotive Group [Member] | Trademarks [Member] | Minimum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average amortization lives (in years) | 28 years | |||||||
Alliance Automotive Group [Member] | Trademarks [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average amortization lives (in years) | 2 years | |||||||
Alliance Automotive Group [Member] | Other Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average amortization lives (in years) | 22 years | |||||||
Finite-lived intangible assets acquired | $ 1,165 | |||||||
Inenco Group [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue reported by acquired entity for last annual period | $ 400,000 | |||||||
Percentage of voting interests acquired | 35.00% | |||||||
Payments to acquire equity method investments | $ 72,100 | |||||||
Number of locations of acquired entity | Location | 174 | |||||||
Percentage of voting interests with option to be acquired | 65.00% | |||||||
Automotive [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Company acquired | Business | 12 | 11 | ||||||
Revenue reported by acquired entity for last annual period | $ 180,000 | |||||||
Automotive [Member] | 2018 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Company acquired | Business | 20 | |||||||
Automotive [Member] | TMS Motor Spares [Member] | Scotland [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of locations | Location | 17 | |||||||
Automotive [Member] | TMS Motor Spares [Member] | England [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of locations | Location | 7 | |||||||
Automotive [Member] | Platinum International Group [Member] | United Kingdom [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of locations | Location | 9 | |||||||
Automotive [Member] | Platinum International Group [Member] | Netherlands [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of locations | Location | 1 | |||||||
Industrial [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Company acquired | Business | 3 | 6 | ||||||
Revenue reported by acquired entity for last annual period | $ 100,000 | |||||||
Industrial [Member] | 2018 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Company acquired | Business | 3 | |||||||
Industrial [Member] | Hydraulic Supply Company [Member] | United States [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of locations | Location | 30 | |||||||
Business Products [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Company acquired | Business | 2 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 14 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Nov. 02, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,128,776 | $ 2,153,988 | $ 956,153 | |
Alliance Automotive Group [Member] | ||||
Business Acquisition [Line Items] | ||||
Trade accounts receivable | 386,000 | $ 380,000 | ||
Merchandise inventories | 378,000 | 374,000 | ||
Prepaid expenses and other current assets | 223,000 | 213,000 | ||
Intangible assets | 813,000 | 727,000 | ||
Deferred tax assets | 2,000 | 4,000 | ||
Property and equipment | 92,000 | 93,000 | ||
Other assets | 14,000 | 25,000 | ||
Total identifiable assets acquired | 1,908,000 | 1,816,000 | ||
Current liabilities | (818,000) | (768,000) | ||
Long-term debt | (769,000) | (769,000) | ||
Pension and other post-retirement benefit liabilities | (14,000) | (14,000) | ||
Deferred tax liabilities | (172,000) | (151,000) | ||
Other long-term liabilities | (34,000) | (32,000) | ||
Total liabilities assumed | (1,807,000) | (1,734,000) | ||
Net identifiable assets acquired | 101,000 | 82,000 | ||
Noncontrolling interests in subsidiaries | (37,000) | (38,000) | ||
Goodwill | 1,003,000 | 1,036,000 | ||
Net assets acquired | 1,067,000 | $ 1,080,000 | ||
Measurement Period Adjustments | ||||
Trade accounts receivable | 6,000 | |||
Merchandise inventories | 4,000 | |||
Prepaid expenses and other current assets | 10,000 | |||
Intangible assets | 86,000 | |||
Deferred tax assets | (2,000) | |||
Property and equipment | (1,000) | |||
Other assets | (11,000) | |||
Total identifiable assets acquired | 92,000 | |||
Current liabilities | (50,000) | |||
Long-term debt | 0 | |||
Pension and other post-retirement benefit liabilities | 0 | |||
Deferred tax liabilities | (21,000) | |||
Other long-term liabilities | (2,000) | |||
Total liabilities assumed | (73,000) | |||
Net identifiable assets acquired | 19,000 | |||
Noncontrolling interests in subsidiaries | 1,000 | |||
Goodwill | (33,000) | |||
Net assets acquired | $ (13,000) |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||
Income (loss) from continuing operations before income taxes, foreign | $ 285,020 | $ 196,190 | $ 139,864 |
Segment Data - Summary of Segme
Segment Data - Summary of Segment Data (Detail) - USD ($) $ in Thousands | Sep. 14, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 18,735,073 | $ 16,308,801 | $ 15,339,713 | |
Total operating profit | 1,430,505 | 1,259,801 | 1,229,336 | |
Intangible asset amortization | (88,972) | (51,993) | (40,870) | |
Income before income taxes | 1,075,612 | 1,009,268 | 1,074,340 | |
Total assets | 12,683,040 | 12,412,381 | 8,859,400 | |
Total depreciation and amortization | 241,635 | 167,691 | 147,487 | |
Total capital expenditures | 232,422 | 156,760 | 160,643 | |
Total net property, plant, and equipment | 1,027,231 | 936,702 | 728,124 | |
Acquisition related costs | 49,141 | |||
Business Products Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Proceeds from termination fee | $ 12,000 | |||
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 13,927,091 | 13,246,619 | 12,779,971 | |
Total net property, plant, and equipment | 726,068 | 647,386 | 561,164 | |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,860,912 | 256,364 | 0 | |
Total net property, plant, and equipment | 110,184 | 96,857 | 0 | |
Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,624,890 | 1,525,421 | 1,368,743 | |
Total net property, plant, and equipment | 91,387 | 90,857 | 81,260 | |
Australasia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,193,148 | 1,162,122 | 1,083,779 | |
Total net property, plant, and equipment | 95,578 | 95,299 | 79,413 | |
Mexico [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 129,032 | 118,275 | 107,220 | |
Total net property, plant, and equipment | 4,014 | 6,303 | 6,287 | |
Operating Segments [Member] | Automotive [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 10,526,520 | 8,583,317 | 8,040,407 | |
Total operating profit | 854,389 | 720,465 | 715,154 | |
Total assets | 6,246,911 | 6,140,829 | 4,601,150 | |
Total depreciation and amortization | 105,238 | 71,405 | 65,372 | |
Total capital expenditures | 198,910 | 118,181 | 73,339 | |
Operating Segments [Member] | Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 6,298,584 | 5,805,012 | 5,399,416 | |
Total operating profit | 487,360 | 440,454 | 397,147 | |
Total assets | 1,790,410 | 1,645,271 | 1,495,397 | |
Total depreciation and amortization | 14,518 | 13,446 | 13,338 | |
Total capital expenditures | 21,783 | 28,566 | 33,093 | |
Operating Segments [Member] | Business Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,909,969 | 1,920,472 | 1,899,890 | |
Total operating profit | 88,756 | 98,882 | 117,035 | |
Total assets | 860,279 | 859,335 | 907,119 | |
Total depreciation and amortization | 10,472 | 11,262 | 11,398 | |
Total capital expenditures | 7,320 | 6,726 | 12,072 | |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense, net | (92,093) | (38,677) | (19,525) | |
Corporate expense | (173,828) | (159,863) | (94,601) | |
Intangible asset amortization | (88,972) | (51,993) | (40,870) | |
Total assets | 3,540,418 | 3,554,380 | 1,574,663 | |
Total depreciation and amortization | 88,972 | 51,993 | 40,870 | |
Transaction costs | 36,105 | |||
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 245,022 | 212,566 | 281,071 | |
Total depreciation and amortization | 22,435 | 19,585 | 16,509 | |
Total capital expenditures | $ 4,409 | $ 3,287 | $ 42,139 |
Segment Data - Net Sales by Geo
Segment Data - Net Sales by Geographical Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 18,735,073 | $ 16,308,801 | $ 15,339,713 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 15,681,013 | 14,890,315 | 14,255,934 |
Australasia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,193,148 | 1,162,122 | 1,083,779 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,860,912 | 256,364 | 0 |
Automotive [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 7,472,460 | 7,164,831 | 6,956,628 |
Industrial [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,298,584 | 5,805,012 | 5,399,416 |
Business Products [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,909,969 | $ 1,920,472 | $ 1,899,890 |
Uncategorized Items - gpc-20181
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (5,843,000) |