Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

The following table presents a summary of our reportable segment financial information:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Net sales:
Automotive	$	3,799,789	$	3,626,943	$	11,100,800	$	10,787,769
Industrial	2,170,409		2,197,659		6,615,596		6,716,957
Total net sales	$	5,970,198	$	5,824,602	$	17,716,396	$	17,504,726
Segment profit:
Automotive	$	262,195	$	322,004	$	849,106	$	915,771
Industrial	258,753		282,807		806,433		828,166
Interest expense, net	(27,818)		(15,827)		(67,429)		(49,146)
Intangible asset amortization	(36,292)		(33,667)		(105,077)		(113,414)
Corporate expense (1)	(113,949)		(90,257)		(283,695)		(257,822)
Other unallocated costs (2)	(45,296)		—		(190,363)		—
Income before income taxes	$	297,593	$	465,060	$	1,008,975	$	1,323,555

(1) Amount reflects costs related to headquarter's broad based support to our business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology,

cybersecurity, legal, corporate finance, internal audit, and risk management, as well as product liability costs and A/R Sales Agreement fees.

(2) The following table presents a summary of the other unallocated costs:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Other unallocated costs:
Restructuring and other costs (2)	$	(41,023)	$	—	$	(161,312)	$	—
Acquisition and integration related costs and other (3)	(4,273)		—		(29,051)		—
Total other unallocated costs	$	(45,296)	$	—	$	(190,363)	$	—

(2) Amount reflects costs related to our global restructuring initiative which includes a voluntary retirement offer in the U.S., inventory liquidation costs, and rationalization and optimization of certain distribution centers, stores and other facilities. Refer to the Restructuring Footnote in the Notes to Condensed Consolidated Financial Statements for more information.

(3) Amount primarily reflects ongoing acquisition and integration costs related to the acquisitions of MPEC in April 2024 and Walker in July 2024, including professional services costs, personnel costs, and lease and other exit costs. Refer to the Acquisitions Footnote in the Notes to Condensed Consolidated Financial Statements for more information.

Summary of Revenue from External Customers by Geographic Areas

The following table presents disaggregated geographical net sales from contracts with customers by reportable segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
North America:
Automotive	$	2,390,463	$	2,315,733	$	6,939,607	$	6,865,819
Industrial	2,026,759		2,066,284		6,208,696		6,325,746
Total North America	$	4,417,222	$	4,382,017	$	13,148,303	$	13,191,565
Australasia:
Automotive	$	449,296	$	411,422	$	1,262,527	$	1,226,037
Industrial	143,650		131,375		406,900		391,211
Total Australasia	$	592,946	$	542,797	$	1,669,427	$	1,617,248
Europe – Automotive	$	960,030	$	899,788	$	2,898,666	$	2,695,913
Total net sales	$	5,970,198	$	5,824,602	$	17,716,396	$	17,504,726

GENUINE PARTS CO 10-Q