gpc-20220930

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, 2022


☐			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 141,161,349 shares of common stock outstanding as of October 17, 2022.


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	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21

PART II

Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 6.	Exhibits	23
	Signatures	24

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, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	629,198	$	714,701
Trade accounts receivable, less allowance for doubtful accounts (2022 – $47,262; 2021 – $44,425)	2,215,032		1,797,955
Merchandise inventories, net	4,300,709		3,889,919
Prepaid expenses and other current assets	1,678,259		1,353,847
Total current assets	8,823,198		7,756,422
Goodwill	2,460,911		1,915,307
Other intangible assets, less accumulated amortization	1,748,274		1,406,401
Property, plant and equipment, less accumulated depreciation (2022 – $1,369,770; 2021 – $1,339,706)	1,241,567		1,234,399
Operating lease assets	1,073,858		1,053,689
Other assets	1,029,272		985,884
Total assets	$	16,377,080	$	14,352,102

Liabilities and equity
Current liabilities:
Trade accounts payable	$	5,531,253	$	4,804,939
Current portion of debt	1,629		—
Dividends payable	126,434		115,876
Other current liabilities	1,835,803		1,660,768
Total current liabilities	7,495,119		6,581,583
Long-term debt	3,231,668		2,409,363
Operating lease liabilities	809,495		789,175
Pension and other post–retirement benefit liabilities	262,820		265,134
Deferred tax liabilities	398,797		280,778
Other long-term liabilities	500,989		522,779
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 – 2022 – 140,962,009 shares; 2021 – 142,180,683 shares	140,962		142,181
Additional paid-in capital	132,240		119,975
Accumulated other comprehensive loss	(1,074,316)		(857,739)
Retained earnings	4,465,565		4,086,325
Total parent equity	3,664,451		3,490,742
Noncontrolling interests in subsidiaries	13,741		12,548
Total equity	3,678,192		3,503,290
Total liabilities and equity	$	16,377,080	$	14,352,102

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)	2022		2021		2022		2021
Net sales	$	5,675,274	$	4,818,849	$	16,572,323	$	14,067,301
Cost of goods sold	3,695,607		3,108,082		10,805,910		9,126,614
Gross profit	1,979,667		1,710,767		5,766,413		4,940,687
Operating expenses:
Selling, administrative and other expenses	1,458,418		1,338,768		4,226,412		3,883,241
Depreciation and amortization	86,563		72,121		259,822		218,377
Provision for doubtful accounts	6,146		4,284		13,539		14,230
Total operating expenses	1,551,127		1,415,173		4,499,773		4,115,848
Non-operating expense (income):
Interest expense, net	18,220		14,167		58,318		47,853
Other	(7,616)		(17,547)		(26,897)		(77,454)
Total non-operating expense (income)	10,604		(3,380)		31,421		(29,601)
Income before income taxes	417,936		298,974		1,235,219		854,440
Income taxes	105,578		70,389		304,494		211,649
Net income	$	312,358	$	228,585	$	930,725	$	642,791
Dividends declared per common share	$	0.8950	$	0.8150	$	2.6850	$	2.4450
Basic earnings per share	$	2.21	$	1.60	$	6.57	$	4.47
Diluted earnings per share	$	2.20	$	1.59	$	6.53	$	4.44

Weighted average common shares outstanding	141,336		142,871		141,609		143,826
Dilutive effect of stock options and non-vested restricted stock awards	773		718		819		796
Weighted average common shares outstanding – assuming dilution	142,109		143,589		142,428		144,622

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)	2022		2021		2022		2021
Net income	$	312,358	$	228,585	$	930,725	$	642,791
Other comprehensive loss, net of income taxes:
Foreign currency translation adjustments, net of income taxes in 2022 — $33,843 and $73,892; 2021 — $11,328 and $25,494, respectively	(

SEC Form 10-Q filed by Genuine Parts Company