gpc-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-5690

__________________________________________

GENUINE PARTS COMPANY

(Exact name of registrant as specified in its charter)

__________________________________________


GA						58-0254510
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2999 WILDWOOD PARKWAY,

30339

ATLANTA,

(Address of principal executive offices)

(Zip Code)

678-934-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of each exchange on which registered

Common Stock, $1.00 par value per share

GPC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 139,036,487 shares of common stock outstanding as of October 17, 2024.


Table of Contents

PART I		Page

Item 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Income	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Statements of Equity	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27

PART II

Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
	Signatures	31

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


(in thousands, except share and per share data)	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,078,118	$	1,102,007
Trade accounts receivable, less allowance for doubtful accounts (2024 – $64,138; 2023 – $56,608)	2,380,518		2,223,431
Merchandise inventories, net	5,527,034		4,676,686
Prepaid expenses and other current assets	1,723,832		1,603,728
Total current assets	10,709,502		9,605,852
Goodwill	3,034,339		2,734,681
Other intangible assets, less accumulated amortization	1,915,832		1,792,913
Property, plant and equipment, less accumulated depreciation (2024 – $1,783,163; 2023 – $1,592,658)	1,909,522		1,616,785
Operating lease assets	1,665,818		1,268,742
Other assets	1,024,165		949,481
Total assets	$	20,259,178	$	17,968,454

Liabilities and equity
Current liabilities:
Trade accounts payable	$	6,100,534	$	5,499,536
Current portion of debt	810,982		355,298
Dividends payable	139,111		132,635
Other current liabilities	2,072,781		1,839,640
Total current liabilities	9,123,408		7,827,109
Long-term debt	3,806,950		3,550,930
Operating lease liabilities	1,372,283		979,938
Pension and other post–retirement benefit liabilities	224,019		219,644
Deferred tax liabilities	483,262		437,674
Other long-term liabilities	539,102		536,174
Equity:
Preferred stock, par value – $1 per share; authorized – 10,000,000 shares; none issued	—		—
Common stock, par value – $1 per share; authorized – 450,000,000 shares; issued and outstanding – 2024 – 139,078,065 shares; 2023 – 139,567,071 shares	139,078		139,567
Additional paid-in capital	193,491		173,025
Accumulated other comprehensive loss	(942,852)		(976,872)
Retained earnings	5,306,755		5,065,327
Total parent equity	4,696,472		4,401,047
Noncontrolling interests in subsidiaries	13,682		15,938
Total equity	4,710,154		4,416,985
Total liabilities and equity	$	20,259,178	$	17,968,454

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2024		2023		2024		2023
Net sales	$	5,970,198	$	5,824,602	$	17,716,396	$	17,504,726
Cost of goods sold	3,771,757		3,715,361		11,262,997		11,247,341
Gross profit	2,198,441		2,109,241		6,453,399		6,257,385
Operating expenses:
Selling, administrative and other expenses	1,722,400		1,551,799		4,944,783		4,644,696
Depreciation and amortization	106,036		83,860		295,848		261,948
Provision for doubtful accounts	7,119		8,417		19,008		22,378
Restructuring and other costs	41,023		—		153,825		—
Total operating expenses	1,876,578		1,644,076		5,413,464		4,929,022
Non-operating (income) expense:
Interest expense, net	27,818		15,827		67,429		49,146
Other	(3,548)		(15,722)		(36,469)		(44,338)
Total non-operating (income) expense	24,270		105		30,960		4,808
Income before income taxes	297,593		465,060		1,008,975		1,323,555
Income taxes	71,011		113,862		237,955		323,906
Net income	$	226,582	$	351,198	$	771,020	$	999,649
Dividends declared per common share	$	1.00	$	0.95	$	3.00	$	2.85
Basic earnings per share	$	1.63	$	2.50	$	5.53	$	7.11
Diluted earnings per share	$	1.62	$	2.49	$	5.51	$	7.08

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Net income	$	226,582	$	351,198	$	771,020	$	999,649
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments	90,001		(77,314)		25,359		(63,027)
Cash flow hedge, net of income taxes in 2023 — $0 and $951 respectively	—		—		—		2,572
Pension and postretirement benefit adjustments, net of income taxes in 2024 — $1,062 and $3,188; 2023 — $703 and $2,108 respectively	2,886		1,909		8,661		5,735
Other comprehensive income (loss), net of income taxes	92,887		(75,405)		34,020		(54,720)
Comprehensive income	$	319,469	$	275,793	$	805,040	$	944,929

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)


	Three Months Ended September 30, 2024
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
July 1, 2024	139,346,018	$	139,346	$	180,527	$	(1,035,739)	$	5,256,514	$	4,540,648	$	15,475	$	4,556,123
Net income	—	—		—		—		226,582		226,582		—		226,582
Other comprehensive income, net of tax	—	—		—		92,887		—		92,887		—		92,887
Cash dividend declared, $1.00 per share	—	—		—		—		(139,111)		(139,111)		—		(139,111)
Shares issued from employee incentive plans	1,693	2		2,254		—		—		2,256		—		2,256
Share-based compensation	—	—		10,710		—		—		10,710		—		10,710
Purchase of stock	(269,646)	(270)		—		—		(37,230)		(37,500)		—		(37,500)
Noncontrolling interest activities	—	—		—		—		—		—		(1,793)		(1,793)
September 30, 2024	139,078,065	$	139,078	$	193,491	$	(942,852)	$	5,306,755	$	4,696,472	$	13,682	$	4,710,154

Nine Months Ended September 30, 2024

(in thousands, except share and per share data)

Common Stock Shares

Common Stock Amount

Additional Paid-In Capital

Accumulated Other Comprehensive Loss

Retained Earnings

Total Parent Equity

Non-controlling Interests in Subsidiaries

Total Equity

January 1, 2024

139,567,071

SEC Form 10-Q filed by Genuine Parts Company