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Segment Data
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Data Segment Data
Our reportable segments consist of the Automotive Parts Group ("Automotive") and Industrial Parts Group ("Industrial"). Within the reportable segments, certain of our operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods.
Our Automotive segment distributes replacement parts (other than body parts) for substantially all makes and models of automobiles, trucks, and other vehicles.
Our Industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components and related parts and supplies.
Inter-segment sales are not significant. Segment profit for each industry segment is calculated as net sales less costs of goods sold, operating expenses, and certain non-operating expenses attributable to the segment (e.g., foreign currency), excluding general corporate expenses, net interest expense, intangible asset amortization, and other unallocated amounts that are primarily driven by corporate initiatives.. Approximately $472 million and $438 million of income before income taxes were generated in jurisdictions outside the U.S. for the years ended December 31, 2022, and 2021, respectively. Approximately $327 million of loss before income taxes was generated in jurisdictions outside the U.S. for the year ended December 31, 2020. Net sales and net property, plant and equipment by country relate directly to our operations in the respective country. Corporate assets are principally cash and cash equivalents and headquarters’ facilities and equipment.
The following table presents a summary of our reportable segment financial information from continuing operations:
202220212020
Net sales:
Automotive$13,666,634 $12,544,131 $10,860,695 
Industrial8,429,339 6,326,379 5,676,738 
Total net sales$22,095,973 $18,870,510 $16,537,433 
Segment profit:
Automotive$1,191,674 $1,073,427 $867,743 
Industrial886,636 595,232 481,854 
Total segment profit$2,078,310 $1,668,659 $1,349,597 
Interest expense, net(73,886)(62,150)(91,048)
Corporate expense(269,364)(174,842)(149,754)
Intangible asset amortization(157,437)(103,273)(94,962)
Other unallocated costs(5,021)(128,048)(634,465)
Income before income taxes from continuing operations$1,572,602 $1,200,346 $379,368 
 The following table presents a summary of the other unallocated costs:
202220212020
Other unallocated costs:
Gain on sales of real estate (1)$102,803 $— $— 
Gain on insurance proceeds (2)1,507 3,862 13,448 
Product liability adjustment (3)(28,730)— — 
Product liability damages award (4)— (77,421)— 
Loss on software disposal (5)— (61,063)— 
Gain on equity investment (6)— 10,229 — 
Goodwill impairment charge (7)— — (506,721)
Restructuring costs and special termination costs (8)— — (50,019)
Realized currency and other divestiture losses (9)— — (11,356)
Inventory adjustment (10)— — (40,000)
Transaction and other costs (11)(80,601)(3,655)(39,817)
Total other unallocated costs$(5,021)$(128,048)$(634,465)
(1)Amount reflects a gain on the sale of real estate that had been leased to S.P. Richards.
(2)Amount reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs.
(3)Amount to remeasure product liability for a revised estimate of the number of claims to be incurred in future periods, among other assumptions.
(4)Amount reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim.
(5)Amount 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.
(6)Amount relates to gains recognized upon remeasurement of certain equity investments to fair value upon acquiring the remaining equity of those entities.
(7)Amount reflects a goodwill impairment charge related to our European reporting unit.
(8)Amount reflects restructuring and special termination costs related to 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.
(9)Amount reflects realized currency losses related to divestitures.
(10) Amount reflects a $40 million increase to cost of goods sold due to the correction of an immaterial error related to the accounting in prior years for consideration received from vendors.
(11) Amount for 2022 primarily includes costs of $67 million associated with the January 3, 2022 acquisition and integration of KDG which includes a $17 million impairment charge. The impairment charge was driven by a decision to retire certain legacy trade names, classified as other intangible assets, prior to the end of their estimated useful lives as part of executing our KDG integration and rebranding strategy. Separately, this adjustment includes an $11 million loss related to an investment. Amount for 2021 include transaction and other costs related to acquisitions. For 2020, amount includes a $17 million loss on investment, $10 million of incremental costs associated with COVID-19 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.
The following table presents a summary of our reportable segment total assets:
20222021
Assets:
Automotive$8,755,363 $8,508,487 
Industrial2,474,392 1,909,053 
Corporate865,001 612,854 
Goodwill and other intangible assets4,400,623 3,321,708 
Total assets$16,495,379 $14,352,102 
The following table presents a summary of select financial information by reportable segment from continuing operations:
202220212020
Depreciation and amortization:
Automotive$146,819 $143,052 $120,932 
Industrial29,670 24,100 16,315 
Corporate13,893 20,546 40,633 
Intangible asset amortization157,437 103,273 94,962 
Total depreciation and amortization$347,819 $290,971 $272,842 
Capital expenditures:
Automotive$235,182 $198,268 $133,523 
Industrial33,165 35,626 19,287 
Corporate71,285 32,242 692 
Total capital expenditures$339,632 $266,136 $153,502 
Net sales:
United States$14,965,462 $12,136,689 $10,863,348 
Europe3,071,964 2,908,156 2,408,913 
Canada1,960,227 1,779,663 1,526,202 
Australasia2,044,432 2,002,188 1,691,190 
Mexico53,888 43,814 47,780 
Total net sales$22,095,973 $18,870,510 $16,537,433 
Net property, plant and equipment:
United States$790,121 $750,267 $728,802 
Europe200,898 179,001 164,268 
Canada113,574 102,484 102,409 
Australasia220,839 201,971 165,596 
Mexico582 676 968 
Total net property, plant and equipment$1,326,014 $1,234,399 $1,162,043 
Net sales are disaggregated by geographical region for each of our reportable segments, as we deem 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:
202220212020
North America:
Automotive$9,015,501 $8,103,896 $7,177,543 
Industrial7,964,076 5,856,270 5,259,787 
Total North America $16,979,577 $13,960,166 $12,437,330 
Australasia:
Automotive$1,579,169 $1,532,079 $1,274,239 
Industrial465,263 470,109 416,951 
Total Australasia$2,044,432 $2,002,188 $1,691,190 
Europe - Automotive$3,071,964 $2,908,156 $2,408,913 
Total net sales$22,095,973 $18,870,510 $16,537,433