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Genuine Parts (GPC)

Cover Page

Cover Page - shares9 Months Ended
Sep. 30, 2021Oct. 18, 2021
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateSep. 30,
2021
Document Transition Reportfalse
Entity File Number1-5690
Entity Registrant NameGENUINE PARTS CO
Entity Incorporation, State or Country CodeGA
Entity Tax Identification Number58-0254510
Entity Address, Address Line One2999 WILDWOOD PARKWAY,
Entity Address, Postal Zip Code30339
Entity Address, City or TownATLANTA,
Entity Address, State or ProvinceGA
City Area Code678
Local Phone Number934-5000
Title of 12(b) SecurityCommon Stock, $1.00 par value per share
Trading SymbolGPC
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growthfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding142,421,748
Amendment Flagfalse
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ3
Entity Central Index Key0000040987
Current Fiscal Year End Date--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsSep. 30, 2021Dec. 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, net3,748,418 3,506,271
Prepaid expenses and other current assets1,226,416 1,060,360
Total current assets7,782,184 7,113,763
Goodwill1,890,821 1,917,477
Other intangible assets, less accumulated amortization1,409,886 1,498,257
Deferred tax assets43,726 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 assets1,040,724 1,038,877
Other assets700,223 644,140
Total assets13,974,938 13,440,215
Current liabilities:
Trade accounts payable4,819,084 4,128,084
Current portion of debt0 160,531
Dividends payable116,356 114,043
Other current liabilities1,601,883 1,491,426
Total current liabilities6,537,323 5,894,084
Long-term debt2,432,539 2,516,614
Operating lease liabilities781,750 789,294
Pension and other post–retirement benefit liabilities254,727 265,687
Deferred tax liabilities222,467 212,910
Other long-term liabilities549,574 543,623
Equity:
Preferred stock, par value – $1 per share; authorized – 10,000,000 shares; none issued0 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 shares142,503 144,354
Additional paid-in capital118,223 117,165
Retained earnings3,995,537 3,979,779
Accumulated other comprehensive loss(1,073,086)(1,036,502)
Total parent equity3,183,177 3,204,796
Noncontrolling interests in subsidiaries13,381 13,207
Total equity3,196,558 3,218,003
Total liabilities and equity $ 13,974,938 $ 13,440,215

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsSep. 30, 2021Dec. 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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 30, 2020
Income Statement [Abstract]
Net sales $ 4,818,849 $ 4,370,086 $ 14,067,301 $ 12,285,839
Cost of goods sold3,108,082 2,842,020 9,126,614 8,079,108
Gross profit1,710,767 1,528,066 4,940,687 4,206,731
Operating expenses:
Selling, administrative and other expenses1,338,768 1,140,156 3,883,241 3,254,442
Depreciation and amortization72,121 69,097 218,377 203,084
Provision for doubtful accounts4,284 5,633 14,230 23,452
Restructuring costs0 10,968 0 39,009
Goodwill impairment charge0 0 0 506,721
Total operating expenses1,415,173 1,225,854 4,115,848 4,026,708
Non-operating (income) expenses:
Interest expense14,958 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 taxes298,974 297,665 854,440 153,822
Income taxes70,389 64,747 211,649 162,059
Net income (loss) from continuing operations228,585 232,918 642,791 (8,237)
Net loss from discontinued operations0 (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)1.601.614.47(0.06)
Discontinued operations (usd per share)0 (0.03)0 (1.33)
Basic earnings (loss) per share (usd per share)1.601.584.47(1.39)
Diluted earnings (loss) per share:
Continuing operations (usd per share)1.591.614.44(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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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, respectively3,741 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, respectively9,301 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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax $ 11,328 $ 22,896 $ 25,494 $ 19,451
Net investment hedge, tax1,384 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 ThousandsTotalCumulative Effect, Period of Adoption, AdjustmentCommon StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsRetained EarningsCumulative Effect, Period of Adoption, AdjustmentTotal Parent EquityTotal Parent EquityCumulative Effect, Period of Adoption, AdjustmentNon-controlling Interests in Subsidiaries
Beginning balance (in shares) at Dec. 31, 2019145,378,158
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 compensation16,274 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, 2020144,289,653
Ending balance at Sep. 30, 20203,034,773 $ 144,290 113,249 (1,166,572)3,923,113 3,014,080 20,693
Beginning balance (in shares) at Dec. 31, 2019145,378,158
Beginning balance at Dec. 31, 20193,695,500 (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, 2020144,354,335
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, 2020144,264,189
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 tax45,800 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 compensation6,420 6,420 6,420
Noncontrolling interest activities(920)(920)
Ending balance (in shares) at Sep. 30, 2020144,289,653
Ending balance at Sep. 30, 20203,034,773 $ 144,290 113,249 (1,166,572)3,923,113 3,014,080 20,693
Beginning balance (in shares) at Dec. 31, 2020144,354,335
Beginning balance at Dec. 31, 20203,218,003 $ 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 compensation20,841 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 activities174 174
Ending balance (in shares) at Sep. 30, 2021142,503,493
Ending balance at Sep. 30, 20213,196,558 $ 142,503 118,223 (1,073,086)3,995,537 3,183,177 13,381
Beginning balance (in shares) at Jun. 30, 2021143,301,673
Beginning balance at Jun. 30, 20213,245,145 $ 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 compensation6,320 6,320 6,320
Purchase of stock (in shares)(800,436)
Purchase of stock(99,521) $ (800)(98,721)(99,521)
Noncontrolling interest activities2,115 2,115
Ending balance (in shares) at Sep. 30, 2021142,503,493
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) - $ / shares3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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 Thousands9 Months Ended
Sep. 30, 2021Sep. 30, 2020
Operating activities:
Net income (loss) $ 642,791 $ (200,306)
Net loss from discontinued operations0 (192,069)
Net income (loss) from continuing operations642,791 (8,237)
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities:
Depreciation and amortization218,377 203,084
Loss on software disposal61,063 0
Share-based compensation20,841 16,274
Excess tax (benefits) deficiencies from share-based compensation(6,667)375
Goodwill impairment charge0 506,721
Realized currency and other divestiture losses0 11,356
Changes in operating assets and liabilities71,791 697,611
Net cash provided by operating activities from continuing operations1,008,196 1,427,184
Investing activities:
Purchases of property, plant and equipment(138,206)(105,428)
Proceeds from sale of property, plant and equipment24,184 11,675
Proceeds from divestitures of businesses16,687 382,737
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 debt242,332 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 operations0 13,323
Net cash used in investing activities from discontinued operations0 (11,131)
Net cash provided by financing activities from discontinued operations0 0
Net cash provided by discontinued operations0 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 period990,166 276,992
Cash and cash equivalents at end of period $ 919,097 $ 900,123

Basis of Presentation

Basis of Presentation9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]
Basis of PresentationBasis 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 Information9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]
Segment InformationSegment 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 Loss9 Months Ended
Sep. 30, 2021
Equity [Abstract]
Accumulated Other Comprehensive LossAccumulated 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 Pronouncements9 Months Ended
Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]
Recent Accounting PronouncementsRecent 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 Equipment9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Property, Plant and EquipmentProperty, 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 Plans9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]
Employee Benefit PlansEmployee 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

Guarantees9 Months Ended
Sep. 30, 2021
Guarantees [Abstract]
GuaranteesGuarantees 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

Debt9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]
DebtDebtOn 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 Agreement9 Months Ended
Sep. 30, 2021
Receivables [Abstract]
Accounts Receivable Sales AgreementAccounts 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 Instruments9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial InstrumentsFair 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 Hedging9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and HedgingDerivatives 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 Contingencies9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments 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 Operations9 Months Ended
Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions, Divestitures and Discontinued OperationsAcquisitions, 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 Taxes9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income TaxesIncome 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 Share9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings Per ShareEarnings 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 AccountingThe 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 EstimatesThe 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 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.
GuaranteesThe 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 InstrumentsFair 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 InformationThe 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 AreasThe 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 LossThe 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 PlansNet 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, SalesThe 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 InstrumentsThe 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 OperationsThe 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 ShareThe 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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 30, 2020
Segment Reporting Information [Line Items]
Net sales $ 4,818,849 $ 4,370,086 $ 14,067,301 $ 12,285,839
Income before income taxes298,974 297,665 854,440 153,822
Operating Segments
Segment Reporting Information [Line Items]
Net sales4,818,849 4,370,086 14,067,301 12,285,839
Operating profit446,904 391,744 1,249,045 976,089
Operating Segments | Automotive
Segment Reporting Information [Line Items]
Net sales3,204,534 2,960,379 9,353,998 8,038,863
Operating profit281,150 266,124 807,586 627,608
Operating Segments | Industrial
Segment Reporting Information [Line Items]
Net sales1,614,315 1,409,707 4,713,303 4,246,976
Operating profit165,754 125,620 441,459 348,481
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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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 costs0 (10,968)0 (39,009)
Goodwill impairment charge0 (11,356)
Incremental expense, COVID-198,490
Other
Segment Reporting Information [Line Items]
Loss on software disposal(61,063)0 (61,063)0
Product liability damages award0 0 (77,421)0
Loss on software disposal0 0 0 (506,721)
Restructuring costs0 (10,968)0 (39,009)
Goodwill impairment charge0 0 0 (11,356)
Gain on insurance proceeds related to SPR Fire0 0 0 13,448
Transaction and other costs0 (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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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 sales3,593,868 3,230,220 10,402,409 9,319,206
Australasia
Disaggregation of Revenue [Line Items]
Net sales494,864 469,864 1,481,255 1,220,931
Automotive | North America
Disaggregation of Revenue [Line Items]
Net sales2,100,250 1,934,503 6,039,617 5,381,566
Automotive | Australasia
Disaggregation of Revenue [Line Items]
Net sales374,167 355,874 1,130,744 911,595
Automotive | Europe
Disaggregation of Revenue [Line Items]
Net sales730,117 670,002 2,183,637 1,745,702
Industrial | North America
Disaggregation of Revenue [Line Items]
Net sales1,493,618 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 Thousands9 Months Ended
Sep. 30, 2021Sep. 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 loss39,154 44,291
Other comprehensive income (loss), net of income taxes(36,584)(25,264)
Ending balance3,183,177
Pension and Other Post-Retirement Benefits
AOCI Attributable to Parent [Roll Forward]
Beginning balance(692,868)(704,415)
Other comprehensive income (loss) before reclassifications0 0
Amounts reclassified from accumulated other comprehensive loss27,931 24,479
Other comprehensive income (loss), net of income taxes27,931 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 reclassifications0 (21,248)
Amounts reclassified from accumulated other comprehensive loss11,223 8,456
Other comprehensive income (loss), net of income taxes11,223 (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 loss0 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 Thousands9 Months Ended
Sep. 30, 2021Sep. 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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 30, 2020
Retirement Benefits [Abstract]
Service cost $ 3,043 $ 3,012 $ 9,185 $ 8,919
Interest cost17,915 20,942 53,783 62,732
Expected return on plan assets(38,755)(38,550)(116,345)(115,483)
Amortization of prior service cost172 173 516 519
Amortization of actuarial loss12,465 11,130 37,430 33,340
Net periodic benefit income $ (5,160) $ (3,293) $ (15,431) $ (9,973)

Guarantees (Details)

Guarantees (Details) $ in Thousands9 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 assets80,000
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 AgreementSep. 30, 2021Sep. 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 rate1.125%
LIBOR | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate0.00%0.50%

Accounts Receivable Sales Agr_3

Accounts Receivable Sales Agreement - Additional Information (Details) - USD ($) $ in Thousands9 Months Ended12 Months Ended
Sep. 30, 2021Dec. 31, 2020
Receivables [Abstract]
Sale agreement term3 years
Amount held as collateral $ 983,000 $ 771
Sale agreement amount800
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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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 ThousandsSep. 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 Thousands9 Months Ended12 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, balance59,397 7,668
Net investment hedges | Designated as hedging relationship | Other current liabilities | Forward contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount235,180 360,990
Derivative liability, balance6,306 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 Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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 Components6,574 6,574 19,722 20,572
Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCL Before Reclassifications0 (277)0 (29,107)
Net investment hedges | Forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCL Before Reclassifications20,958 (49,660)45,143 (33,959)
Gain Recognized in Interest Expense For Excluded Components6,574 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 ThousandsJul. 08, 2021Sep. 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 Thousands9 Months Ended
Sep. 30, 2021Sep. 30, 2020
Business Acquisition [Line Items]
Payments to acquire businesses, net $ 142,669 $ 77,393
Proceeds from divestitures of businesses16,687 $ 382,737
SPR
Business Acquisition [Line Items]
Noncontrolling interest in variable interest entity69,700
Credit loss expense $ 17,000

Acquisitions, Divestitures an_4

Acquisitions, Divestitures and Discontinued Operations - Results of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Net sales $ 0 $ 846,944
Cost of goods sold0 632,007
Gross profit0 214,937
Operating expenses0 179,461
Loss on disposal3,165 223,483
Loss before income taxes(3,165)(188,007)
Income tax expense2,222 4,062
Net loss from discontinued operations $ 0 $ (5,387) $ 0 $ (192,069)

Income Taxes (Details)

Income Taxes (Details)3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate23.50%21.80%24.80%105.40%

Earnings Per Share (Details)

Earnings Per Share (Details) - shares shares in Thousands3 Months Ended9 Months Ended
Sep. 30, 2021Sep. 30, 2020Sep. 30, 2021Sep. 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

LabelElementValue
Accounting Standards Update [Extensible Enumeration]us-gaap_AccountingStandardsUpdateExtensibleListAccounting Standards Update 2016-13 [Member]