Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-5690 | |
Entity Registrant Name | GENUINE PARTS CO | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-0254510 | |
Entity Address, Address Line One | 2999 WILDWOOD PARKWAY, | |
Entity Address, Postal Zip Code | 30339 | |
Entity Address, City or Town | ATLANTA, | |
Entity Address, State or Province | GA | |
City Area Code | 678 | |
Local Phone Number | 934-5000 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | GPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 142,421,748 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000040987 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 919,097 | $ 990,166 |
Trade accounts receivable, less allowance for doubtful accounts (2021 – $44,807; 2020 – $36,622) | 1,888,253 | 1,556,966 |
Merchandise inventories, net | 3,748,418 | 3,506,271 |
Prepaid expenses and other current assets | 1,226,416 | 1,060,360 |
Total current assets | 7,782,184 | 7,113,763 |
Goodwill | 1,890,821 | 1,917,477 |
Other intangible assets, less accumulated amortization | 1,409,886 | 1,498,257 |
Deferred tax assets | 43,726 | 65,658 |
Property, plant and equipment, less accumulated depreciation (2021 – $1,315,825; 2020 – $1,268,170) | 1,107,374 | 1,162,043 |
Operating lease assets | 1,040,724 | 1,038,877 |
Other assets | 700,223 | 644,140 |
Total assets | 13,974,938 | 13,440,215 |
Current liabilities: | ||
Trade accounts payable | 4,819,084 | 4,128,084 |
Current portion of debt | 0 | 160,531 |
Dividends payable | 116,356 | 114,043 |
Other current liabilities | 1,601,883 | 1,491,426 |
Total current liabilities | 6,537,323 | 5,894,084 |
Long-term debt | 2,432,539 | 2,516,614 |
Operating lease liabilities | 781,750 | 789,294 |
Pension and other post–retirement benefit liabilities | 254,727 | 265,687 |
Deferred tax liabilities | 222,467 | 212,910 |
Other long-term liabilities | 549,574 | 543,623 |
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 – 2021 – 142,503,493 shares; 2020 – 144,354,335 shares | 142,503 | 144,354 |
Additional paid-in capital | 118,223 | 117,165 |
Retained earnings | 3,995,537 | 3,979,779 |
Accumulated other comprehensive loss | (1,073,086) | (1,036,502) |
Total parent equity | 3,183,177 | 3,204,796 |
Noncontrolling interests in subsidiaries | 13,381 | 13,207 |
Total equity | 3,196,558 | 3,218,003 |
Total liabilities and equity | $ 13,974,938 | $ 13,440,215 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 44,807 | $ 36,622 |
Accumulated depreciation | $ 1,315,825 | $ 1,268,170 |
Preferred stock, par value (usd 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 (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 142,503,493 | 144,354,335 |
Common stock, shares outstanding (in shares) | 142,503,493 | 144,354,335 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,818,849 | $ 4,370,086 | $ 14,067,301 | $ 12,285,839 |
Cost of goods sold | 3,108,082 | 2,842,020 | 9,126,614 | 8,079,108 |
Gross profit | 1,710,767 | 1,528,066 | 4,940,687 | 4,206,731 |
Operating expenses: | ||||
Selling, administrative and other expenses | 1,338,768 | 1,140,156 | 3,883,241 | 3,254,442 |
Depreciation and amortization | 72,121 | 69,097 | 218,377 | 203,084 |
Provision for doubtful accounts | 4,284 | 5,633 | 14,230 | 23,452 |
Restructuring costs | 0 | 10,968 | 0 | 39,009 |
Goodwill impairment charge | 0 | 0 | 0 | 506,721 |
Total operating expenses | 1,415,173 | 1,225,854 | 4,115,848 | 4,026,708 |
Non-operating (income) expenses: | ||||
Interest expense | 14,958 | 25,788 | 50,127 | 72,218 |
Other | (18,338) | (21,241) | (79,728) | (46,017) |
Total non-operating (income) expenses | (3,380) | 4,547 | (29,601) | 26,201 |
Income before income taxes | 298,974 | 297,665 | 854,440 | 153,822 |
Income taxes | 70,389 | 64,747 | 211,649 | 162,059 |
Net income (loss) from continuing operations | 228,585 | 232,918 | 642,791 | (8,237) |
Net loss from discontinued operations | 0 | (5,387) | 0 | (192,069) |
Net income (loss) | $ 228,585 | $ 227,531 | $ 642,791 | $ (200,306) |
Dividends declared per common share (usd per share) | $ 0.8150 | $ 0.7900 | $ 2.4450 | $ 2.3700 |
Basic earnings (loss) per share: | ||||
Continuing operations (usd per share) | 1.60 | 1.61 | 4.47 | (0.06) |
Discontinued operations (usd per share) | 0 | (0.03) | 0 | (1.33) |
Basic earnings (loss) per share (usd per share) | 1.60 | 1.58 | 4.47 | (1.39) |
Diluted earnings (loss) per share: | ||||
Continuing operations (usd per share) | 1.59 | 1.61 | 4.44 | (0.06) |
Discontinued operations (usd per share) | 0 | (0.04) | 0 | (1.33) |
Diluted earnings (loss) per share (usd per share) | $ 1.59 | $ 1.57 | $ 4.44 | $ (1.39) |
Weighted average common shares outstanding (in shares) | 142,871 | 144,273 | 143,826 | 144,528 |
Dilutive effect of stock options and non-vested restricted stock awards (in shares) | 718 | 762 | 796 | 0 |
Weighted average common shares outstanding - assuming dilution (in shares) | 143,589 | 145,035 | 144,622 | 144,528 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 228,585 | $ 227,531 | $ 642,791 | $ (200,306) |
Other comprehensive (loss) income, net of income taxes: | ||||
Foreign currency translation adjustments, net of income taxes in 2021 — $11,328 and $25,494; 2020 — $22,896 and $19,451, respectively | (82,574) | 34,063 | (75,738) | (36,951) |
Cash flow hedge adjustments, net of income taxes in 2021 — $1,384 and $4,151; 2020 — $1,313 and $4,731, respectively | 3,741 | 3,550 | 11,223 | (12,792) |
Pension and postretirement benefit adjustments, net of income taxes in 2021 — $3,425 and $10,280; 2020 — $2,998 and $9,023, respectively | 9,301 | 8,187 | 27,931 | 24,479 |
Other comprehensive (loss) income, net of income taxes | (69,532) | 45,800 | (36,584) | (25,264) |
Comprehensive income (loss) | $ 159,053 | $ 273,331 | $ 606,207 | $ (225,570) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 11,328 | $ 22,896 | $ 25,494 | $ 19,451 |
Net investment hedge, tax | 1,384 | 1,313 | 4,151 | 4,731 |
Pension and postretirement benefit adjustments, tax | $ 3,425 | $ 2,998 | $ 10,280 | $ 9,023 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Total Parent Equity | Total Parent EquityCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interests in Subsidiaries | |||
Beginning balance (in shares) at Dec. 31, 2019 | 145,378,158 | ||||||||||||
Beginning balance at Dec. 31, 2019 | $ 3,695,500 | $ (11,432) | [1] | $ 145,378 | $ 98,777 | $ (1,141,308) | $ 4,571,860 | $ (11,432) | [1] | $ 3,674,707 | $ (11,432) | [1] | $ 20,793 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (200,306) | (200,306) | (200,306) | ||||||||||
Other comprehensive income, net of tax | (25,264) | (25,264) | (25,264) | ||||||||||
Cash dividends declared | (342,426) | (342,426) | (342,426) | ||||||||||
Share-based awards exercised (in shares) | 47,939 | ||||||||||||
Share-based awards exercised | (1,754) | $ 48 | (1,802) | (1,754) | |||||||||
Share-based compensation | 16,274 | 16,274 | 16,274 | ||||||||||
Purchase of stock (in shares) | (1,136,444) | ||||||||||||
Purchase of stock | (95,719) | $ (1,136) | (94,583) | (95,719) | |||||||||
Noncontrolling interest activities | (100) | (100) | |||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 144,289,653 | ||||||||||||
Ending balance at Sep. 30, 2020 | 3,034,773 | $ 144,290 | 113,249 | (1,166,572) | 3,923,113 | 3,014,080 | 20,693 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 145,378,158 | ||||||||||||
Beginning balance at Dec. 31, 2019 | 3,695,500 | (11,432) | [1] | $ 145,378 | 98,777 | (1,141,308) | 4,571,860 | (11,432) | [1] | 3,674,707 | (11,432) | [1] | 20,793 |
Ending balance (in shares) at Dec. 31, 2020 | 144,354,335 | ||||||||||||
Ending balance at Dec. 31, 2020 | $ 3,218,003 | 6,223 | [2] | $ 144,354 | 117,165 | (1,036,502) | 3,979,779 | 6,223 | [2] | 3,204,796 | 6,223 | [2] | 13,207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standard Update 2019-12 [Member] | ||||||||||||
Beginning balance (in shares) at Jun. 30, 2020 | 144,264,189 | ||||||||||||
Beginning balance at Jun. 30, 2020 | $ 2,870,888 | $ 144,264 | 107,819 | (1,212,372) | 3,809,564 | 2,849,275 | 21,613 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 227,531 | 227,531 | 227,531 | ||||||||||
Other comprehensive income, net of tax | 45,800 | 45,800 | 45,800 | ||||||||||
Cash dividends declared | (113,982) | (113,982) | (113,982) | ||||||||||
Share-based awards exercised (in shares) | 25,464 | ||||||||||||
Share-based awards exercised | (964) | $ 26 | (990) | (964) | |||||||||
Share-based compensation | 6,420 | 6,420 | 6,420 | ||||||||||
Noncontrolling interest activities | (920) | (920) | |||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 144,289,653 | ||||||||||||
Ending balance at Sep. 30, 2020 | 3,034,773 | $ 144,290 | 113,249 | (1,166,572) | 3,923,113 | 3,014,080 | 20,693 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 144,354,335 | ||||||||||||
Beginning balance at Dec. 31, 2020 | 3,218,003 | $ 6,223 | [2] | $ 144,354 | 117,165 | (1,036,502) | 3,979,779 | $ 6,223 | [2] | 3,204,796 | $ 6,223 | [2] | 13,207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 642,791 | 642,791 | 642,791 | ||||||||||
Other comprehensive income, net of tax | (36,584) | (36,584) | (36,584) | ||||||||||
Cash dividends declared | (351,606) | (351,606) | (351,606) | ||||||||||
Share-based awards exercised (in shares) | 385,419 | ||||||||||||
Share-based awards exercised | (19,398) | $ 385 | (19,783) | (19,398) | |||||||||
Share-based compensation | 20,841 | 20,841 | 20,841 | ||||||||||
Purchase of stock (in shares) | (2,236,261) | ||||||||||||
Purchase of stock | (283,886) | $ (2,236) | (281,650) | (283,886) | |||||||||
Noncontrolling interest activities | 174 | 174 | |||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 142,503,493 | ||||||||||||
Ending balance at Sep. 30, 2021 | 3,196,558 | $ 142,503 | 118,223 | (1,073,086) | 3,995,537 | 3,183,177 | 13,381 | ||||||
Beginning balance (in shares) at Jun. 30, 2021 | 143,301,673 | ||||||||||||
Beginning balance at Jun. 30, 2021 | 3,245,145 | $ 143,302 | 111,972 | (1,003,554) | 3,982,159 | 3,233,879 | 11,266 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 228,585 | 228,585 | 228,585 | ||||||||||
Other comprehensive income, net of tax | (69,532) | (69,532) | (69,532) | ||||||||||
Cash dividends declared | (116,486) | (116,486) | (116,486) | ||||||||||
Share-based awards exercised (in shares) | 2,256 | ||||||||||||
Share-based awards exercised | (68) | $ 1 | (69) | (68) | |||||||||
Share-based compensation | 6,320 | 6,320 | 6,320 | ||||||||||
Purchase of stock (in shares) | (800,436) | ||||||||||||
Purchase of stock | (99,521) | $ (800) | (98,721) | (99,521) | |||||||||
Noncontrolling interest activities | 2,115 | 2,115 | |||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 142,503,493 | ||||||||||||
Ending balance at Sep. 30, 2021 | $ 3,196,558 | $ 142,503 | $ 118,223 | $ (1,073,086) | $ 3,995,537 | $ 3,183,177 | $ 13,381 | ||||||
[1] | The Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, | ||||||||||||
[2] | The Company adopted Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes , during the first quarter of 2021. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share (usd per share) | $ 0.8150 | $ 0.7900 | $ 2.4450 | $ 2.3700 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net income (loss) | $ 642,791 | $ (200,306) |
Net loss from discontinued operations | 0 | (192,069) |
Net income (loss) from continuing operations | 642,791 | (8,237) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 218,377 | 203,084 |
Loss on software disposal | 61,063 | 0 |
Share-based compensation | 20,841 | 16,274 |
Excess tax (benefits) deficiencies from share-based compensation | (6,667) | 375 |
Goodwill impairment charge | 0 | 506,721 |
Realized currency and other divestiture losses | 0 | 11,356 |
Changes in operating assets and liabilities | 71,791 | 697,611 |
Net cash provided by operating activities from continuing operations | 1,008,196 | 1,427,184 |
Investing activities: | ||
Purchases of property, plant and equipment | (138,206) | (105,428) |
Proceeds from sale of property, plant and equipment | 24,184 | 11,675 |
Proceeds from divestitures of businesses | 16,687 | 382,737 |
Acquisitions of businesses and other investing activities | (142,567) | (59,062) |
Net cash (used in) provided by investing activities from continuing operations | (239,902) | 229,922 |
Financing activities: | ||
Proceeds from debt | 242,332 | 1,888,622 |
Payments on debt | (403,126) | (2,466,031) |
Share-based awards exercised | (19,398) | (1,754) |
Dividends paid | (349,293) | (339,294) |
Purchases of stock | (283,886) | (95,719) |
Other financing activities | (5,353) | (15,032) |
Net cash used in financing activities from continuing operations | (818,724) | (1,029,208) |
Cash flows from discontinued operations: | ||
Net cash provided by operating activities from discontinued operations | 0 | 13,323 |
Net cash used in investing activities from discontinued operations | 0 | (11,131) |
Net cash provided by financing activities from discontinued operations | 0 | 0 |
Net cash provided by discontinued operations | 0 | 2,192 |
Effect of exchange rate changes on cash and cash equivalents | (20,639) | (6,959) |
Net (decrease) increase in cash and cash equivalents | (71,069) | 623,131 |
Cash and cash equivalents at beginning of period | 990,166 | 276,992 |
Cash and cash equivalents at end of period | $ 919,097 | $ 900,123 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. On June 30, 2020, the Company completed the divestiture of its Business Products Group. Refer to the acquisitions, divestitures and discontinued operations footnote for more information. The Company's results of operations for the Business Products Group are reported as discontinued operations and all information related to the discontinued operations has been excluded from the notes to the condensed consolidated financial statements for all periods presented. Net income from discontinued operations for each period includes all costs that are directly attributable to these businesses and excludes certain corporate overhead costs that were previously allocated. Additionally, revenue from freight services provided by the Automotive Parts Group are grossed up and recast in continuing operations in each period because those sales are continuing with the discontinued operations after the divestiture. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2020. Accordingly, the unaudited condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its unaudited condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of results for the year ended December 31, 2021. The Company's results of operations continued to improve in 2021 relative to the same period of 2020 as a result of several positive trends caused by the global response to the coronavirus (“COVID-19”) outbreak, which was declared a pandemic in March 2020. In particular, as widespread vaccine distribution continued, we have seen economic recovery in many of the markets where we operate and a significant uptick in consumer mobility. However, the Company's operations remain vulnerable to the continuing negative economic effects caused by the pandemic. The extent to which the pandemic impacts the Company will depend on numerous factors and future developments that the Company cannot predict, including the severity of the virus; the occurrence of additional waves or spikes in infection rates, including the spread of variant strains; the duration of the outbreak; governmental, business or other actions taken in response to the pandemic and the efficacy of these actions, including partial or complete shut downs, travel restrictions, and shelter-in-place orders among other actions; the effectiveness and distribution of COVID-19 vaccines; the ability of the global population to access such vaccines; impacts on customer demand, impacts on the Company's supply chain including the impact of higher shipping-related charges as a result of port slowdowns or congestion, and its ability to attract talent and keep operating locations open. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following table presents a summary of the Company's reportable segment financial information from continuing operations: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net sales: Automotive $ 3,204,534 $ 2,960,379 $ 9,353,998 $ 8,038,863 Industrial 1,614,315 1,409,707 4,713,303 4,246,976 Total net sales $ 4,818,849 $ 4,370,086 $ 14,067,301 $ 12,285,839 Segment profit: Automotive $ 281,150 $ 266,124 $ 807,586 $ 627,608 Industrial 165,754 125,620 441,459 348,481 Total segment profit 446,904 391,744 1,249,045 976,089 Interest expense, net (14,167) (25,221) (47,853) (69,965) Intangible asset amortization (25,311) (24,223) (78,239) (70,219) Corporate expense (47,389) (33,379) (130,029) (117,053) Other unallocated costs (1) (61,063) (11,256) (138,484) (565,030) Income before income taxes from continuing operations $ 298,974 $ 297,665 $ 854,440 $ 153,822 (1) The following table presents a summary of the other unallocated costs: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Other unallocated costs: Loss on software disposal (2) $ (61,063) $ — $ (61,063) $ — Product liability damages award (3) — — (77,421) — Goodwill impairment charge (4) — — — (506,721) Restructuring costs (5) — (10,968) — (39,009) Realized currency loss (6) — — — (11,356) Gain on insurance proceeds related to SPR Fire (7) — — — 13,448 Transaction and other costs (8) — (288) — (21,392) Total other unallocated costs $ (61,063) $ (11,256) $ (138,484) $ (565,030) (2) Adjustment reflects a loss on an internally developed software project that was disposed of due to a change in management strategy related to advances in alternative technologies. Refer to the property, plant and equipment footnote to the condensed consolidated financial statements for more information. (3) Adjustment reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim. Refer to the commitments and contingencies footnote to the condensed consolidated financial statements for more information. (4) Adjustment reflects the 2020 goodwill impairment charge related to the Company's European reporting unit. (5) Adjustment reflects restructuring costs related to the execution of certain restructuring actions across the Company's subsidiaries primarily targeted at simplifying the organizational structures and distribution networks implemented by the Company in October 2019 (the “2019 Cost Savings Plan”). The costs are primarily associated with severance and other employee costs, including a voluntary retirement program, and facility and closure costs related to the consolidation of operations. (6) Adjustment reflects realized currency losses related to divestitures. (7) Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs related to the S.P. Richards Headquarters and Distribution Center. (8) Adjustment reflects $8,490 of incremental costs associated with COVID-19 for the nine months ended September 30, 2020 and costs associated with certain divestitures. COVID-19 related costs include incremental costs incurred relating to fees to cancel marketing events and increased cleaning and sanitization materials, among other things. Net sales are disaggregated by geographical region for each of the Company’s reportable segments, as the Company deems this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table presents disaggregated geographical net sales from contracts with customers by reportable segment: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America: Automotive $ 2,100,250 $ 1,934,503 $ 6,039,617 $ 5,381,566 Industrial 1,493,618 1,295,717 4,362,792 3,937,640 Total North America $ 3,593,868 $ 3,230,220 $ 10,402,409 $ 9,319,206 Australasia: Automotive $ 374,167 $ 355,874 $ 1,130,744 $ 911,595 Industrial 120,697 113,990 350,511 309,336 Total Australasia $ 494,864 $ 469,864 $ 1,481,255 $ 1,220,931 Europe – Automotive $ 730,117 $ 670,002 $ 2,183,637 $ 1,745,702 Total net sales $ 4,818,849 $ 4,370,086 $ 14,067,301 $ 12,285,839 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables present the changes in accumulated other comprehensive loss (“AOCL”) by component for the nine months ended September 30: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2021 $ (692,868) $ (30,007) $ (313,627) $ (1,036,502) Other comprehensive loss before reclassifications — — (75,738) (75,738) Amounts reclassified from accumulated other comprehensive loss 27,931 11,223 — 39,154 Other comprehensive income (loss), net of income taxes 27,931 11,223 (75,738) (36,584) Ending balance, September 30, 2021 $ (664,937) $ (18,784) $ (389,365) $ (1,073,086) Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2020 $ (704,415) $ (20,671) $ (416,222) $ (1,141,308) Other comprehensive loss before reclassifications — (21,248) (48,307) (69,555) Amounts reclassified from accumulated other comprehensive loss 24,479 8,456 11,356 44,291 Other comprehensive income (loss), net of income taxes 24,479 (12,792) (36,951) (25,264) Ending balance, September 30, 2020 $ (679,936) $ (33,463) $ (453,173) $ (1,166,572) The AOCL components related to the pension benefits are included in the computation of net periodic benefit income in the employee benefit plans footnote. The nature of the cash flow hedges are discussed in the derivatives and hedging footnote. Generally, tax effects in AOCL are established at the currently enacted tax rate and reclassified to net income (loss) in the same period that the related pre-tax AOCL reclassifications are recognized. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting PronouncementsChanges to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and has determined that any recently adopted accounting pronouncements did not have a material impact on the Company's condensed consolidated financial statements and all recent accounting pronouncements not yet adopted are not applicable or are expected to have an immaterial impact on the Company's condensed consolidated financial statements. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and EquipmentDuring the third quarter of 2021, the Company reconsidered its approach to an internally developed software project due to a change in management strategy related to advances in alternative technologies. The Company decided to dispose of the software project as of September 30, 2021. As a result, the Company recognized $61,063 of selling, administrative and other expense related to the disposal of this software. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit income from the Company's pension plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Service cost $ 3,043 $ 3,012 $ 9,185 $ 8,919 Interest cost 17,915 20,942 53,783 62,732 Expected return on plan assets (38,755) (38,550) (116,345) (115,483) Amortization of prior service cost 172 173 516 519 Amortization of actuarial loss 12,465 11,130 37,430 33,340 Net periodic benefit income $ (5,160) $ (3,293) $ (15,431) $ (9,973) |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company guarantees the borrowings of certain independently controlled automotive parts stores and businesses (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded that the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants. At September 30, 2021, the Company was in compliance with all such covenants. As of September 30, 2021, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $895,636. These loans generally mature over periods from one As of September 30, 2021, the Company has recognized certain assets and liabilities amounting to $80,000 each for the guarantees related to the independents’ and affiliates’ borrowings. These assets and liabilities are included in other assets and other long-term liabilities in the condensed consolidated balance sheets. The liabilities relate to the Company's noncontingent obligation to stand ready to perform under the guarantee programs and they are distinct from the Company's current expected credit loss reserve. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DebtOn September 30, 2021, the Company entered into the first amendment to the Syndicated Facility Agreement (the "Unsecured Revolving Credit Facility"), dated as of October 30, 2020. The interest rates were amended to reduce the applicable rate by 12.5 basis points (resulting in a rate of LIBOR + 112.5 basis points) and the LIBOR floor from 0.5% to 0.0%. The amendment also extended the maturity by one year to September 30, 2026. |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable Sales Agreement | Accounts Receivable Sales Agreement The Company has an accounts receivable sales agreement (the “A/R Sales Agreement”) to sell short-term receivables from certain customer trade accounts to an unaffiliated financial institution on a revolving basis. The A/R Sales Agreement has a 3 year term, which the Company intends to renew. As part of the A/R Sales Agreement, the Company continuously sells designated pools of receivables as they are originated by it and certain U.S. subsidiaries to a separate bankruptcy-remote special purpose entity (“SPE”). The assets of the SPE would be first available to satisfy the creditor claims of the unaffiliated financial institution. The Company controls and therefore consolidates the SPE in its condensed consolidated financial statements. The SPE transferred ownership and control of certain receivables that met certain qualifying conditions to the unaffiliated financial institution in exchange for cash. The Company accounts for transactions with the unaffiliated financial institution as sales of financial assets, with the associated receivables derecognized from the Company's condensed consolidated balance sheet. The remaining receivables held by the SPE were pledged to secure the collectability of the sold receivables. The amount of receivables pledged as collateral as of September 30, 2021 and December 31, 2020 is approximately $983,000 and $771,000, respectively. The Company continues to be involved with the receivables transferred by the SPE to the unaffiliated financial institution by providing collection services. As cash is collected on sold receivables, the SPE continuously transfers ownership and control of new qualifying receivables to the unaffiliated financial institution so that the total principal amount outstanding of receivables sold is approximately $800,000 at any point in time (which is the maximum amount allowed under the agreement). The future amount of receivables outstanding as sold could decrease, based on the level of activity and other factors. Total principal amount outstanding of receivables sold is approximately $800,000 as of September 30, 2021 and December 31, 2020, respectively. The following table summarizes the activity under the A/R Sales Agreement for the following periods: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Receivables sold to the financial institution and derecognized $ 1,884,023 $ 1,279,420 $ 5,700,895 $ 2,181,746 Cash collected on sold receivables $ 1,884,028 $ 1,279,430 $ 5,700,896 $ 1,681,732 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. Additionally, ASC 820, Fair Value Measurements , defines levels within a hierarchy based upon observable and non-observable inputs. • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions As of September 30, 2021 the fair value of the Company's senior unsecured notes was approximately $2,524,914, which are designated as Level 2 in the fair value hierarchy. Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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. 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. Cash Flow Hedges In 2020, the Company terminated its interest rate swaps and settled the outstanding balances through cash payments totaling $41,000. The remaining amount in AOCL is being amortized to interest expense on a straight-line basis over the remaining life of the previously hedged instrument. Net Investment Hedges The Company has designated certain derivative instruments and a portion of its foreign currency denominated debt, a non-derivative financial instrument, as hedges of the foreign currency exchange rate exposure of the Company's Euro-denominated net investment in a European subsidiary. The Company applies the spot method to assess the hedge effectiveness of the derivative instruments and this assessment for each instrument excludes the initial value related to the difference at contract inception between the foreign exchange spot rate and the forward rate (i.e., the forward points). The initial value of this excluded component is recognized as a reduction to interest expense in a systematic and rational manner over the term of the derivative instrument. All other changes in value for the net investment hedges are included in AOCL within foreign currency translation and would only be reclassified to earnings if the European subsidiary were liquidated, or otherwise disposed. The following table summarizes the location and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships: September 30, 2021 December 31, 2020 Instrument Balance Sheet Location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 925,810 $ 59,397 $ 800,000 $ 7,668 Forward contracts Other current liabilities $ 235,180 $ 6,306 $ 360,990 $ 19,442 Foreign currency debt Long-term debt € 700,000 $ 811,790 € 700,000 $ 861,070 The tables below presents gains and losses related to designated cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2021 2020 2021 2020 Three Months Ended September 30, Cash flow hedges: Interest rate contracts $ — $ (277) $ — $ — Net investment hedges: Forward contracts 20,958 (49,660) 6,574 6,574 Foreign currency debt 21,000 (35,140) — — Total $ 41,958 $ (85,077) $ 6,574 $ 6,574 Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2021 2020 2021 2020 Nine Months Ended September 30, Cash flow hedges: Interest rate contracts $ — $ (29,107) $ — $ — Net investment hedges: Forward contracts 45,143 (33,959) 19,722 20,572 Foreign currency debt 49,280 (38,080) — — Total $ 94,423 $ (101,146) $ 19,722 $ 20,572 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters As more fully discussed in the Company's notes to the consolidated financial statements in its 2020 Annual Report on Form 10-K, a jury awarded damages in 2017 against the Company in a litigated automotive product liability dispute. On February 19, 2020, the Washington Court of Appeals issued an order entirely reversing the jury’s finding on damages and ordering a new trial on damages. The plaintiffs subsequently appealed this order to the Washington Supreme Court. On July 7, 2020, the Washington Supreme Court indicated that it would consider a further appeal on this matter, and oral arguments occurred on November 10, 2020. On July 8, 2021, the Washington Supreme Court overturned the order of the Washington Court of Appeals and reinstated the trial court's damage award of $77,100 against the Company. The Company recorded an adjustment to increase selling, general and other expenses by approximately $77,421, inclusive of statutory interest and insurance coverage, in the condensed consolidated statements of income (loss) for the nine months ended September 30, 2021. The damage award and statutory interest was fully paid as of September 30, 2021. Environmental Liabilities |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions, Divestitures and Discontinued Operations | Acquisitions, Divestitures and Discontinued Operations Acquisitions The Company acquired several businesses for approximately $142,669 and $77,393, net of cash acquired, during the nine months ended September 30, 2021 and September 30, 2020, respectively. The measurement period is still open for certain businesses acquired in prior periods, but there have been no significant measurement period adjustments during the three and nine months ended September 30, 2021. Divestitures The Company received cash proceeds from divestitures of businesses totaling $16,687 and $382,737 for the nine months ended September 30, 2021 and September 30, 2020, respectively. Discontinued Operations Business Products Group During 2020, the Company completed the divestiture of its Business Products Group as part of its long-term strategic initiative to streamline its operations and optimize its portfolio so that it can drive shareholder value by focusing on its global Automotive and Industrial Parts Groups. This divestiture represented a single plan to exit the Business Products Group segment and was considered a strategic shift that had a major effect on the Company’s operations and financial results. Therefore, the results of operations, financial position and cash flows for the Business Products Group are reported as discontinued operations for all prior periods presented. The Company retains an investment in S.P. Richard's (“SPR”), a business that previously belonged to the Business Products Group, with a carrying value of $69,700, which is included within other assets on the condensed consolidated balance sheets, as of September 30, 2021. The Company maintains an allowance equal to the current expected credit loss based on a consideration of historical experience, current market conditions and reasonable and supportable forecasts related to this investment and other related assets of $17,000. The Company also remains involved with SPR for a limited period of time through various lease, sublease, freight distribution and transition service agreements. The Company has concluded that SPR is a variable interest entity, but the Company is not the primary beneficiary and therefore the entity is not consolidated. Among other things, the Company does not have any voting rights and does not have the power to direct the activities that most significantly affect SPR's economic performance. For a limited period of time as SPR completes its transition away from the Company’s shared services platform, the Company continues to pay certain payables on SPR’s behalf and at SPR’s direction with full reimbursement from SPR under the terms of a transition services agreement. The Company’s results of operations for discontinued operations were: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Net sales $ — $ 846,944 Cost of goods sold — 632,007 Gross profit — 214,937 Operating expenses — 179,461 Loss on disposal 3,165 223,483 Loss before income taxes (3,165) (188,007) Income tax expense 2,222 4,062 Net loss from discontinued operations $ (5,387) $ (192,069) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company's effective income tax rate was 23.5% for the three months ended September 30, 2021, compared to 21.8% for the same three month period in 2020. The effective income tax rate was 24.8% for the nine months ended September 30, 2021, compared to 105.4% for the same period in 2020. For the three months ended September 30, 2021, the rate increase is primarily due to income mix shifts and statute related adjustments. For the nine months ended September 30, 2021, the rate decrease is primarily due to the non-deductible goodwill impairment charge that occurred in 2020. In addition, during the second quarter of 2021, the United Kingdom enacted legislation raising its corporate tax rate from 19% to 25% effective April 2023. Accordingly, the Company remeasured its deferred tax assets and liabilities as of June 30, 2021 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareAs more fully discussed in the share-based compensation footnote of the Company’s notes to the consolidated financial statements in its 2020 Annual Report on Form 10-K, the Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalents and other share-based awards. Certain outstanding options to purchase shares of common stock are not included in the diluted earnings per share calculation. These options are excluded because their inclusion would have been anti-dilutive. The following table summarizes anti-dilutive shares outstanding: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Anti-dilutive shares outstanding — 473 158 2,214 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. On June 30, 2020, the Company completed the divestiture of its Business Products Group. Refer to the acquisitions, divestitures and discontinued operations footnote for more information. The Company's results of operations for the Business Products Group are reported as discontinued operations and all information related to the discontinued operations has been excluded from the notes to the condensed consolidated financial statements for all periods presented. Net income from discontinued operations for each period includes all costs that are directly attributable to these businesses and excludes certain corporate overhead costs that were previously allocated. Additionally, revenue from freight services provided by the Automotive Parts Group are grossed up and recast in continuing operations in each period because those sales are continuing with the discontinued operations after the divestiture. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2020. Accordingly, the unaudited condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. |
Use of Estimates | The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its unaudited condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. |
Recent Accounting Pronouncements | Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and has determined that any recently adopted accounting pronouncements did not have a material impact on the Company's condensed consolidated financial statements and all recent accounting pronouncements not yet adopted are not applicable or are expected to have an immaterial impact on the Company's condensed consolidated financial statements. |
Guarantees | The Company guarantees the borrowings of certain independently controlled automotive parts stores and businesses (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have controlling financial interests through ownership of a majority voting interest in the independents. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates but receives a fee for the guarantees. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entities’ economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded that the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantees. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants. At September 30, 2021, the Company was in compliance with all such covenants.In the event that the Company is required to make payments in connection with these guarantees, the Company would obtain and liquidate certain collateral pledged by the independents or affiliates (e.g., accounts receivable and inventory) to recover all or a substantial portion of the amounts paid under the guarantees. The Company recognizes a liability equal to current expected credit losses over the lives of the loans in the guaranteed loan portfolio, based on a consideration of historical experience, current conditions, the nature and expected value of any collateral, and reasonable and supportable forecasts. To date, the Company has had no significant losses in connection with guarantees of independents’ and affiliates’ borrowings and the current expected credit loss reserve is not material. As of September 30, 2021, there are no material guaranteed loans for which the borrower is experiencing financial difficulty and recovery is expected to be provided substantially through the operation or sale of the collateral. |
Fair Value of Financial Instruments | Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. Additionally, ASC 820, Fair Value Measurements , defines levels within a hierarchy based upon observable and non-observable inputs. • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table presents a summary of the Company's reportable segment financial information from continuing operations: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net sales: Automotive $ 3,204,534 $ 2,960,379 $ 9,353,998 $ 8,038,863 Industrial 1,614,315 1,409,707 4,713,303 4,246,976 Total net sales $ 4,818,849 $ 4,370,086 $ 14,067,301 $ 12,285,839 Segment profit: Automotive $ 281,150 $ 266,124 $ 807,586 $ 627,608 Industrial 165,754 125,620 441,459 348,481 Total segment profit 446,904 391,744 1,249,045 976,089 Interest expense, net (14,167) (25,221) (47,853) (69,965) Intangible asset amortization (25,311) (24,223) (78,239) (70,219) Corporate expense (47,389) (33,379) (130,029) (117,053) Other unallocated costs (1) (61,063) (11,256) (138,484) (565,030) Income before income taxes from continuing operations $ 298,974 $ 297,665 $ 854,440 $ 153,822 (1) The following table presents a summary of the other unallocated costs: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Other unallocated costs: Loss on software disposal (2) $ (61,063) $ — $ (61,063) $ — Product liability damages award (3) — — (77,421) — Goodwill impairment charge (4) — — — (506,721) Restructuring costs (5) — (10,968) — (39,009) Realized currency loss (6) — — — (11,356) Gain on insurance proceeds related to SPR Fire (7) — — — 13,448 Transaction and other costs (8) — (288) — (21,392) Total other unallocated costs $ (61,063) $ (11,256) $ (138,484) $ (565,030) (2) Adjustment reflects a loss on an internally developed software project that was disposed of due to a change in management strategy related to advances in alternative technologies. Refer to the property, plant and equipment footnote to the condensed consolidated financial statements for more information. (3) Adjustment reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim. Refer to the commitments and contingencies footnote to the condensed consolidated financial statements for more information. (4) Adjustment reflects the 2020 goodwill impairment charge related to the Company's European reporting unit. (5) Adjustment reflects restructuring costs related to the execution of certain restructuring actions across the Company's subsidiaries primarily targeted at simplifying the organizational structures and distribution networks implemented by the Company in October 2019 (the “2019 Cost Savings Plan”). The costs are primarily associated with severance and other employee costs, including a voluntary retirement program, and facility and closure costs related to the consolidation of operations. (6) Adjustment reflects realized currency losses related to divestitures. (7) Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs related to the S.P. Richards Headquarters and Distribution Center. |
Schedule of Revenue from External Customers by Geographic Areas | The following table presents disaggregated geographical net sales from contracts with customers by reportable segment: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America: Automotive $ 2,100,250 $ 1,934,503 $ 6,039,617 $ 5,381,566 Industrial 1,493,618 1,295,717 4,362,792 3,937,640 Total North America $ 3,593,868 $ 3,230,220 $ 10,402,409 $ 9,319,206 Australasia: Automotive $ 374,167 $ 355,874 $ 1,130,744 $ 911,595 Industrial 120,697 113,990 350,511 309,336 Total Australasia $ 494,864 $ 469,864 $ 1,481,255 $ 1,220,931 Europe – Automotive $ 730,117 $ 670,002 $ 2,183,637 $ 1,745,702 Total net sales $ 4,818,849 $ 4,370,086 $ 14,067,301 $ 12,285,839 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following tables present the changes in accumulated other comprehensive loss (“AOCL”) by component for the nine months ended September 30: Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2021 $ (692,868) $ (30,007) $ (313,627) $ (1,036,502) Other comprehensive loss before reclassifications — — (75,738) (75,738) Amounts reclassified from accumulated other comprehensive loss 27,931 11,223 — 39,154 Other comprehensive income (loss), net of income taxes 27,931 11,223 (75,738) (36,584) Ending balance, September 30, 2021 $ (664,937) $ (18,784) $ (389,365) $ (1,073,086) Changes in Accumulated Other Pension and Other Post-Retirement Benefits Cash Flow Hedges Foreign Currency Translation Total Beginning balance, January 1, 2020 $ (704,415) $ (20,671) $ (416,222) $ (1,141,308) Other comprehensive loss before reclassifications — (21,248) (48,307) (69,555) Amounts reclassified from accumulated other comprehensive loss 24,479 8,456 11,356 44,291 Other comprehensive income (loss), net of income taxes 24,479 (12,792) (36,951) (25,264) Ending balance, September 30, 2020 $ (679,936) $ (33,463) $ (453,173) $ (1,166,572) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Income for the Pension Plans | Net periodic benefit income from the Company's pension plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Service cost $ 3,043 $ 3,012 $ 9,185 $ 8,919 Interest cost 17,915 20,942 53,783 62,732 Expected return on plan assets (38,755) (38,550) (116,345) (115,483) Amortization of prior service cost 172 173 516 519 Amortization of actuarial loss 12,465 11,130 37,430 33,340 Net periodic benefit income $ (5,160) $ (3,293) $ (15,431) $ (9,973) |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loans, Notes, Trade and Other Receivables, Sales | The following table summarizes the activity under the A/R Sales Agreement for the following periods: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Receivables sold to the financial institution and derecognized $ 1,884,023 $ 1,279,420 $ 5,700,895 $ 2,181,746 Cash collected on sold receivables $ 1,884,028 $ 1,279,430 $ 5,700,896 $ 1,681,732 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the location and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships: September 30, 2021 December 31, 2020 Instrument Balance Sheet Location Notional Balance Notional Balance Net investment hedges: Forward contracts Prepaid expenses and other current assets $ 925,810 $ 59,397 $ 800,000 $ 7,668 Forward contracts Other current liabilities $ 235,180 $ 6,306 $ 360,990 $ 19,442 Foreign currency debt Long-term debt € 700,000 $ 811,790 € 700,000 $ 861,070 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The tables below presents gains and losses related to designated cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2021 2020 2021 2020 Three Months Ended September 30, Cash flow hedges: Interest rate contracts $ — $ (277) $ — $ — Net investment hedges: Forward contracts 20,958 (49,660) 6,574 6,574 Foreign currency debt 21,000 (35,140) — — Total $ 41,958 $ (85,077) $ 6,574 $ 6,574 Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2021 2020 2021 2020 Nine Months Ended September 30, Cash flow hedges: Interest rate contracts $ — $ (29,107) $ — $ — Net investment hedges: Forward contracts 45,143 (33,959) 19,722 20,572 Foreign currency debt 49,280 (38,080) — — Total $ 94,423 $ (101,146) $ 19,722 $ 20,572 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The tables below presents gains and losses related to designated cash flow hedges and net investment hedges: Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2021 2020 2021 2020 Three Months Ended September 30, Cash flow hedges: Interest rate contracts $ — $ (277) $ — $ — Net investment hedges: Forward contracts 20,958 (49,660) 6,574 6,574 Foreign currency debt 21,000 (35,140) — — Total $ 41,958 $ (85,077) $ 6,574 $ 6,574 Gain (Loss) Recognized in AOCL Before Reclassifications Gain Recognized in Interest Expense For Excluded Components 2021 2020 2021 2020 Nine Months Ended September 30, Cash flow hedges: Interest rate contracts $ — $ (29,107) $ — $ — Net investment hedges: Forward contracts 45,143 (33,959) 19,722 20,572 Foreign currency debt 49,280 (38,080) — — Total $ 94,423 $ (101,146) $ 19,722 $ 20,572 |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | The Company’s results of operations for discontinued operations were: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Net sales $ — $ 846,944 Cost of goods sold — 632,007 Gross profit — 214,937 Operating expenses — 179,461 Loss on disposal 3,165 223,483 Loss before income taxes (3,165) (188,007) Income tax expense 2,222 4,062 Net loss from discontinued operations $ (5,387) $ (192,069) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes anti-dilutive shares outstanding: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Anti-dilutive shares outstanding — 473 158 2,214 |
Segment Information - Operating
Segment Information - Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,818,849 | $ 4,370,086 | $ 14,067,301 | $ 12,285,839 |
Income before income taxes | 298,974 | 297,665 | 854,440 | 153,822 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,818,849 | 4,370,086 | 14,067,301 | 12,285,839 |
Operating profit | 446,904 | 391,744 | 1,249,045 | 976,089 |
Operating Segments | Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,204,534 | 2,960,379 | 9,353,998 | 8,038,863 |
Operating profit | 281,150 | 266,124 | 807,586 | 627,608 |
Operating Segments | Industrial | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,614,315 | 1,409,707 | 4,713,303 | 4,246,976 |
Operating profit | 165,754 | 125,620 | 441,459 | 348,481 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense, net | (14,167) | (25,221) | (47,853) | (69,965) |
Intangible asset amortization | (25,311) | (24,223) | (78,239) | (70,219) |
Corporate expense | (47,389) | (33,379) | (130,029) | (117,053) |
Other Unallocated Amounts | $ (61,063) | $ (11,256) | $ (138,484) | $ (565,030) |
Segment Information - Summary o
Segment Information - Summary of Unallocated Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Loss on software disposal | $ (61,063) | $ 0 | ||
Product liability damages award | (77,421) | |||
Loss on software disposal | $ 0 | $ 0 | 0 | (506,721) |
Restructuring costs | 0 | (10,968) | 0 | (39,009) |
Goodwill impairment charge | 0 | (11,356) | ||
Incremental expense, COVID-19 | 8,490 | |||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Loss on software disposal | (61,063) | 0 | (61,063) | 0 |
Product liability damages award | 0 | 0 | (77,421) | 0 |
Loss on software disposal | 0 | 0 | 0 | (506,721) |
Restructuring costs | 0 | (10,968) | 0 | (39,009) |
Goodwill impairment charge | 0 | 0 | 0 | (11,356) |
Gain on insurance proceeds related to SPR Fire | 0 | 0 | 0 | 13,448 |
Transaction and other costs | 0 | (288) | 0 | (21,392) |
Total other unallocated costs | $ (61,063) | $ (11,256) | $ (138,484) | $ (565,030) |
Segment Information - Disaggreg
Segment Information - Disaggregated Geographical Revenue by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,818,849 | $ 4,370,086 | $ 14,067,301 | $ 12,285,839 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,593,868 | 3,230,220 | 10,402,409 | 9,319,206 |
Australasia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 494,864 | 469,864 | 1,481,255 | 1,220,931 |
Automotive | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,100,250 | 1,934,503 | 6,039,617 | 5,381,566 |
Automotive | Australasia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 374,167 | 355,874 | 1,130,744 | 911,595 |
Automotive | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 730,117 | 670,002 | 2,183,637 | 1,745,702 |
Industrial | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,493,618 | 1,295,717 | 4,362,792 | 3,937,640 |
Industrial | Australasia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 120,697 | $ 113,990 | $ 350,511 | $ 309,336 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive (Loss) by Component (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | $ 3,204,796 | |
Other comprehensive income (loss) before reclassifications | (75,738) | $ (69,555) |
Amounts reclassified from accumulated other comprehensive loss | 39,154 | 44,291 |
Other comprehensive income (loss), net of income taxes | (36,584) | (25,264) |
Ending balance | 3,183,177 | |
Pension and Other Post-Retirement Benefits | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (692,868) | (704,415) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 27,931 | 24,479 |
Other comprehensive income (loss), net of income taxes | 27,931 | 24,479 |
Ending balance | (664,937) | (679,936) |
Cash Flow Hedges | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (30,007) | (20,671) |
Other comprehensive income (loss) before reclassifications | 0 | (21,248) |
Amounts reclassified from accumulated other comprehensive loss | 11,223 | 8,456 |
Other comprehensive income (loss), net of income taxes | 11,223 | (12,792) |
Ending balance | (18,784) | (33,463) |
Foreign Currency Translation | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (313,627) | (416,222) |
Other comprehensive income (loss) before reclassifications | (75,738) | (48,307) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 11,356 |
Other comprehensive income (loss), net of income taxes | (75,738) | (36,951) |
Ending balance | (389,365) | (453,173) |
Total | ||
AOCI Attributable to Parent [Roll Forward] | ||
Beginning balance | (1,036,502) | (1,141,308) |
Ending balance | $ (1,073,086) | $ (1,166,572) |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Loss on software disposal | $ 61,063 | $ 0 |
Selling, General and Administrative Expenses | ||
Property, Plant and Equipment [Line Items] | ||
Loss on software disposal | $ 61,063 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Income for the Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 3,043 | $ 3,012 | $ 9,185 | $ 8,919 |
Interest cost | 17,915 | 20,942 | 53,783 | 62,732 |
Expected return on plan assets | (38,755) | (38,550) | (116,345) | (115,483) |
Amortization of prior service cost | 172 | 173 | 516 | 519 |
Amortization of actuarial loss | 12,465 | 11,130 | 37,430 | 33,340 |
Net periodic benefit income | $ (5,160) | $ (3,293) | $ (15,431) | $ (9,973) |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Guarantor Obligations [Line Items] | |
Total borrowings of the independents and affiliates subject to guarantee | $ 895,636 |
Guarantees related to borrowings, other assets | 80,000 |
Guarantor obligation, current carrying value | $ 80,000 |
Minimum | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity (in years) | 1 year |
Maximum | |
Guarantor Obligations [Line Items] | |
Guaranteed obligations maturity (in years) | 6 years |
Debt (Details)
Debt (Details) - Amended and Restated Syndicated Credit Facility Agreement | Sep. 30, 2021 | Sep. 29, 2021 |
Line of Credit Facility [Line Items] | ||
Interest rate, increase (decrease) | (0.125%) | |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.125% | |
LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.00% | 0.50% |
Accounts Receivable Sales Agr_3
Accounts Receivable Sales Agreement - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Sale agreement term | 3 years | |
Amount held as collateral | $ 983,000 | $ 771 |
Sale agreement amount | 800 | |
Principal amount outstanding of receivables sold at period end | $ 800 | $ 800 |
Accounts Receivable Sales Agr_4
Accounts Receivable Sales Agreement - Summary of Accounts Receivable Sales Agreement Activity and Outstanding Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Receivables [Abstract] | ||||
Receivables sold to the financial institution and derecognized | $ 1,884,023 | $ 1,279,420 | $ 5,700,895 | $ 2,181,746 |
Cash collected on sold receivables | $ 1,884,028 | $ 1,279,430 | $ 5,700,896 | $ 1,681,732 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | $ 2,524,914 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Location and Fair Value Amounts of Derivative Instruments (Details) € in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021EUR (€) | Dec. 31, 2020EUR (€) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
De-designated derivative instruments, liabilities | $ 41 | |||
Net investment hedges | Designated as hedging relationship | Prepaid expenses and other current assets | Forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 925,810 | 800,000 | ||
Derivative asset, balance | 59,397 | 7,668 | ||
Net investment hedges | Designated as hedging relationship | Other current liabilities | Forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | 235,180 | 360,990 | ||
Derivative liability, balance | 6,306 | 19,442 | ||
Net investment hedges | Designated as hedging relationship | Long-term debt | Foreign currency debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Nonderivative notional amount | € | € 700,000 | € 700,000 | ||
Nonderivative balance | $ 811,790 | $ 861,070 |
Derivatives and Hedging - Sch_2
Derivatives and Hedging - Schedule of Gains (Losses) Related to Designated Cash Flow Hedges and Net Investment Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications | $ 41,958 | $ (85,077) | $ 94,423 | $ (101,146) |
Gain Recognized in Interest Expense For Excluded Components | 6,574 | 6,574 | 19,722 | 20,572 |
Cash flow hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications | 0 | (277) | 0 | (29,107) |
Net investment hedges | Forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications | 20,958 | (49,660) | 45,143 | (33,959) |
Gain Recognized in Interest Expense For Excluded Components | 6,574 | 6,574 | 19,722 | 20,572 |
Net investment hedges | Foreign currency debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCL Before Reclassifications | $ 21,000 | $ (35,140) | $ 49,280 | $ (38,080) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jul. 08, 2021 | Sep. 30, 2021 |
Loss Contingencies [Line Items] | ||
Product liability damages award | $ 77,421 | |
Judicial Ruling | ||
Loss Contingencies [Line Items] | ||
Amount awarded to other party | $ 77,100 |
Acquisitions, Divestitures an_3
Acquisitions, Divestitures and Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||
Payments to acquire businesses, net | $ 142,669 | $ 77,393 |
Proceeds from divestitures of businesses | 16,687 | $ 382,737 |
SPR | ||
Business Acquisition [Line Items] | ||
Noncontrolling interest in variable interest entity | 69,700 | |
Credit loss expense | $ 17,000 |
Acquisitions, Divestitures an_4
Acquisitions, Divestitures and Discontinued Operations - Results of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Net sales | $ 0 | $ 846,944 | ||
Cost of goods sold | 0 | 632,007 | ||
Gross profit | 0 | 214,937 | ||
Operating expenses | 0 | 179,461 | ||
Loss on disposal | 3,165 | 223,483 | ||
Loss before income taxes | (3,165) | (188,007) | ||
Income tax expense | 2,222 | 4,062 | ||
Net loss from discontinued operations | $ 0 | $ (5,387) | $ 0 | $ (192,069) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.50% | 21.80% | 24.80% | 105.40% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 473 | 158 | 2,214 |
Uncategorized Items - gpc-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |