0000040987
2009-04-01
2009-06-30
0000040987
2008-04-01
2008-06-30
0000040987
2007-12-31
0000040987
2008-01-01
2008-06-30
0000040987
2008-12-31
0000040987
2008-06-30
0000040987
2009-06-30
0000040987
2009-01-01
2009-06-30
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<!-- Begin Block Tagged Note 1 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
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<div align="left" style="font-size: 10pt; margin-top: 0pt"><u></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note A — Basis of Presentation</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">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 United States for complete
financial statements. Except as disclosed herein, there has been no material change 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”) for the year ended December 31, 2008.
Accordingly, the condensed consolidated financial statements and related disclosures herein should
be read in conjunction with the 2008 Annual Report on Form 10-K.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">The preparation of interim financial statements requires management to make estimates and
assumptions for the amounts reported in the condensed consolidated financial statements.
Specifically, the Company makes estimates in its interim consolidated financial statements for the
accrual of bad debts, inventory adjustments, discounts and volume incentives earned, among others.
Bad debts are accrued based on a percentage of sales, and volume incentives are estimated based
upon cumulative and projected purchasing levels. Inventory adjustments are accrued on an interim
basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment.
The estimates for interim reporting may change upon final determination at year-end, and such
changes may be significant.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">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 six months ended June 30, 2009 are
not necessarily indicative of results for the entire year.
</div>
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<!-- Begin Block Tagged Note 2 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note B — Segment Information</u>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Three Months Ended June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Six Months Ended June 30,</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">(in thousands)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">(in thousands)</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Automotive
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,360,037</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,428,513</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,579,165</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,734,400</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">701,228</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">898,069</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,437,729</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,779,282</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Office products
</div></td>
<td> </td>
<td> </td>
<td align="right">406,134</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">430,807</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">818,882</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">873,199</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Electrical/electronic materials
</div></td>
<td> </td>
<td> </td>
<td align="right">80,609</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">122,584</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">166,742</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">236,885</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,963</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,488</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(22,977</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,808</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total net sales
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,535,045</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,873,485</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,979,541</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,612,958</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating profit:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Automotive
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">117,777</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">115,514</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">205,184</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">206,158</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">31,443</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65,618</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">145,561</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Office products
</div></td>
<td> </td>
<td> </td>
<td align="right">33,661</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,363</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,389</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">81,295</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Electrical/electronic materials
</div></td>
<td> </td>
<td> </td>
<td align="right">5,090</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,893</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,758</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,903</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total operating profit
</div></td>
<td> </td>
<td> </td>
<td align="right">187,971</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">239,339</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">353,949</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">451,917</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,752</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,332</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,848</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,486</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,169</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,296</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(29,383</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(30,039</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">166,050</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">215,711</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">310,718</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">407,392</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Net sales by segment exclude the effect of certain discounts, incentives and freight billed to
customers. The line item “Other” represents the net effect of the discounts, incentives and
freight billed to customers, which is reported as a component of net sales in the Company’s
condensed consolidated statements of income.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
</div>
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<head></head>
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<!-- Begin Block Tagged Note 3 - us-gaap:ComprehensiveIncomeNoteTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note C — Comprehensive Income</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Comprehensive income was $304.4 million and $251.5 million for the six months ended June 30, 2009
and 2008, respectively. The difference between comprehensive income and net income was due to
foreign currency translation adjustments and retirement and other post-retirement benefit
adjustments as required by Statement of Financial Accounting Standards (“SFAS”) No. 158, <i>Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans </i>(“SFAS No. 158”), as
summarized below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Six Months Ended June 30,</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">(in thousands)</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">192,769</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">256,616</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other comprehensive income (loss):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td> </td>
<td align="right">22,323</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,503</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Retirement and other post-retirement benefit adjustments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Recognition of prior service (credit) cost, net of tax
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,028</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">198</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Recognition of actuarial loss, net of tax
</div></td>
<td> </td>
<td> </td>
<td align="right">9,266</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,178</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net actuarial gain, net of tax
</div></td>
<td> </td>
<td> </td>
<td align="right">85,028</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total other comprehensive income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">111,589</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,127</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Comprehensive income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">304,358</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">251,489</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Comprehensive income for the three months ended June 30, 2009 and 2008 totaled $228.6 million and
$142.4 million, respectively.
</div>
</div>
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<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note D
— Recently Issued Accounting Pronouncements</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">On September 15, 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 157, <i>Fair
Value Measurements </i>(“SFAS No. 157”). SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in accordance with accounting principles generally accepted in the United
States, and expands disclosures about fair value measurements. SFAS No. 157 does not expand the
use of fair value in any new circumstances. In accordance with FASB Staff Position 157-2, the
Company adopted SFAS No. 157 for its financial assets and liabilities as of January 1, 2008 and for
its non-financial assets and liabilities as of January 1, 2009. SFAS No. 157 did not have a
significant impact on the condensed consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In December 2007, the FASB issued SFAS No. 141 (Revised 2007), <i>Business Combinations </i>(“SFAS
No. 141(R)”). Under SFAS No. 141(R), an acquiring entity is required to recognize all the assets
acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited
exceptions. SFAS No. 141(R) changes the accounting treatment and disclosure for certain specific
items in a business combination. SFAS No. 141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual reporting period
beginning on or after December 15, 2008. The Company adopted SFAS No. 141(R) on January 1, 2009.
SFAS No. 141(R) did not have a significant impact on the condensed consolidated financial
statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In December 2007, the FASB issued SFAS No. 160, <i>Noncontrolling Interests in Consolidated Financial
Statements—An Amendment of ARB No. 51 </i>(“SFAS No. 160”). SFAS No. 160 establishes new accounting and
reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of
a subsidiary. This statement requires that noncontrolling minority interests be reported as equity
instead of a liability on the balance sheet. Additionally, it requires disclosure of consolidated
net income attributable to the parent and to the noncontrolling interest on the face of the income
statement. SFAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. The
Company adopted SFAS No. 160 on January 1, 2009 and reclassified $69 million of noncontrolling
minority interest from liabilities to equity on the December 31, 2008 condensed consolidated
balance sheet. Refer to Note J for a description of the Company’s acquisition of a substantial
portion of the noncontrolling interest during the three months ended June 30, 2009. The net income
attributable to noncontrolling interests is not material to the Company’s consolidated net income
and is, therefore, included in selling, administrative & other expenses on the accompanying
condensed consolidated statements of income.
</div>
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<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt">In December 2008, the FASB issued FASB Staff Position (“FSP”) 132(R)-1, <i>Employers’ Disclosures
about Postretirement Benefit Plan Assets </i>(“FSP 132(R) -1”). This FSP amends SFAS No. 132(R) to
provide guidance on an employer’s disclosures about plan assets of a defined benefit pension or
other postretirement plan on investment policies and strategies, major categories of plan assets,
inputs and valuation techniques used to measure the fair value of plan assets and significant
concentrations of risk within plan assets. FSP 132(R) -1 shall be effective for fiscal years ending
after December 15, 2009, with earlier application permitted. Upon initial application, the
provisions of this FSP are not required for earlier periods that are presented for comparative
purposes. The Company is currently evaluating the disclosure requirements of this new FSP.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1, <i>Interim Disclosures about Fair Value of
Financial Instruments </i>(“FSP 107-1”), which is effective for the Company for the quarterly period
beginning April 1, 2009. FSP 107-1 requires an entity to provide the annual disclosures required
by SFAS No. 107, <i>Disclosures about Fair Value of Financial Instruments</i>, in its interim financial
statements. The Company has adopted FSP 107-1 in the three months ended June 30, 2009 and has
provided the additional disclosures required by FSP 107-1 in the accompanying notes to the
condensed consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In May 2009, the FASB issued SFAS No. 165, <i>Subsequent Events</i>, (“SFAS No. 165”). SFAS No. 165
establishes general standards of accounting for and disclosure of events that occur after the
balance sheet date but before the date the financial statements are issued or available to be
issued. SFAS No. 165 requires companies to reflect in their financial statements the effects of
subsequent events that provide additional evidence about conditions at the balance sheet date.
Subsequent events that provide evidence about conditions that arose after the balance sheet date
should be disclosed if the financial statements would otherwise be misleading. Disclosures should
include the nature of the event and either an estimate of its financial effect or a statement that
an estimate cannot be made. SFAS No. 165 is effective for interim and annual financial periods
ending after June 15, 2009, and should be applied prospectively. The Company has adopted SFAS No.
165 in the three months ended June 30, 2009 and has included the additional disclosure required by
SFAS No. 165 in the accompanying notes to the condensed consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In June 2009, the FASB issued SFAS No. 167, <i>Amendments to FASB Interpretation No. 46(R)</i>, (“SFAS No.
167”), which amends FASB Interpretation No. 46 (revised December 2003), <i>Consolidation of Variable
Interest Entities, an Interpretation of ARB No. 51</i>, (“FIN No. 46(R)”). SFAS No. 167 addresses the
elimination of the concept of a qualifying special purpose entity. SFAS No. 167 also replaces the
quantitative-based risks and rewards calculation for determining which enterprise has a controlling
financial interest in a variable interest entity with an approach focused on identifying which
enterprise has the power to direct the activities of a variable interest entity and the obligation
to absorb losses of the entity or the right to receive benefits from the entity. Additionally, SFAS
No. 167 requires an ongoing assessment of whether a company is the primary beneficiary of the
entity. SFAS No. 167 is effective for the Company beginning on January 1, 2010. The Company does
not expect the adoption of SFAS No. 167 to have a material impact on the Company’s condensed
consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In June 2009, the FASB issued SFAS No. 168, <i>The FASB Accounting Standards
Codification</i><sup style="font-size: 85%; vertical-align: text-top"><i>TM</i></sup><i> and the Hierarchy of Generally Accepted Accounting Principles, a
replacement of FASB Statement No. 162 </i>(“SFAS No. 168”), which establishes the FASB Accounting
Standards Codification as the source of authoritative accounting principles recognized by the FASB
to be applied in the preparation of financial statements in conformity with generally accepted
accounting principles (“GAAP”). SFAS No. 168 explicitly recognizes rules and interpretive releases
of the Securities and Exchange Commission (“SEC”) under federal securities laws as authoritative
GAAP for SEC registrants. This standard is effective for the Company in the three months ending
September 30, 2009 and is not expected to have a material impact on the Company’s condensed
consolidated financial statements.
</div>
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<!-- Begin Block Tagged Note 5 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note E
— Share-Based Compensation</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements
in the 2008 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. SARs represent a right to receive upon exercise an amount, payable in shares
of common stock, equal to the excess, if any, of the fair market value of the Company’s common
stock on the date of exercise over the base value of the grant. The terms of such SARs require net
settlement in shares of common stock and do not provide for cash settlement. RSUs represent a
contingent right to receive one share of the Company’s common stock at a future date. The majority
of awards previously granted vest on a pro-rata basis for periods ranging from one to five years
and are expensed accordingly on a straight-line basis. The Company issues new shares upon exercise
or conversion of awards under these plans. Most awards may
be exercised or converted to shares not
earlier than twelve months nor later than ten years from the date of grant. At June 30, 2009, total
compensation cost related to nonvested awards not yet recognized was approximately $9.7 million, as
compared to $19.6 million at December 31, 2008. The weighted-average period over which this
compensation cost is expected to be recognized is approximately three years. The aggregate
intrinsic value for options, SARs and RSUs outstanding at June 30, 2009 was approximately $12.5
million. At June 30, 2009 the aggregate intrinsic value for options, SARs and RSUs vested totaled
approximately $5.4 million, and the weighted-average contractual life for outstanding and
exercisable options, SARs and RSUs was approximately six years. For the six months ended June 30,
2009, $4.7 million of share-based compensation cost was recorded, as compared to $6.6 million for
the same period in the prior year.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">The Company had no grant activity for the six months ended June 30, 2009.
</div>
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<!-- Begin Block Tagged Note 6 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note F
— Employee Benefit Plans</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Net periodic benefit cost included the following components for the three months ended June 30:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Other Post-retirement</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Pension Benefits</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Benefits</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14">(in thousands)</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,117</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,348</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">190</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">220</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">23,330</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,640</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">426</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">404</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28,262</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28,763</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Curtailment gain
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,298</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service (credit) cost
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,744</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">93</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right">5,515</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,506</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">426</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">404</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,342</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">11,728</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,135</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,121</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Net periodic benefit cost included the following components for the six months ended June 30:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Other Post-retirement</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Pension Benefits</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Benefits</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14">(in thousands)</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,488</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26,689</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">440</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">46,812</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45,269</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">808</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(56,038</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(57,509</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Curtailment gain
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,298</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service (credit) cost
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,546</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">186</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">186</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right">14,451</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">808</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,869</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,452</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,270</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,242</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Pension benefits also include amounts related to a supplemental retirement plan. During the six
months ended June 30, 2009, the Company contributed $52.9 million to the pension plan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In the three months ended June 30, 2009, the Company recorded a $4.3 million non-cash curtailment
adjustment in accordance with SFAS No. 88, <i>Employer’s Accounting for Settlements and Curtailments
of Defined Benefit Pension Plans and for Termination Benefits, </i>(“SFAS No. 88”) in connection with a
reorganization consisting of individually insignificant reductions of expected years of future
service of employees covered by the defined benefit pension plan. SFAS No. 88 requires curtailment
accounting if an event eliminates, for a significant number of employees, the accrual of defined
benefits for some or all of their future services. In connection with this event, plan assets and
liabilities were remeasured during the three months ended June 30, 2009, resulting in a reduction
to retirement and other post-retirement benefit liabilities of $141.7 million.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 7 - us-gaap:ScheduleOfGuaranteeObligationsTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note G
— Guarantees</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">The Company guarantees the borrowings of certain independently controlled automotive parts stores
(“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 a controlling financial interest through
ownership of a majority voting interest in the entity. The Company has no voting interest or other
equity conversion rights in any of the independents. The Company does not control the independents
or the affiliates, but receives a fee for the guarantee. The Company has concluded that it is not
the primary beneficiary with respect to any of the independents and that the affiliates are not
variable interest entities, as defined in FIN No. 46(R). The Company’s maximum exposure to loss as
a result of its involvement with these independents and affiliates is equal to the total borrowings
subject to the Company’s guarantee. Certain borrowings of the independents and affiliates contain
covenants similar to those included in the $350 million unsecured revolving line of credit
agreement, as more fully discussed in Note 3 of the Company’s notes to the consolidated financial
statements in the 2008 Annual Report on Form 10-K. At June 30, 2009, the Company was in compliance
with all such covenants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">At June 30, 2009, the total borrowings of the independents and affiliates subject to guarantee by
the Company were approximately $195.4 million. These loans generally mature over periods from one
to ten years. In the event that the Company is required to make payments in connection with
guaranteed obligations of the independents or the affiliates, the Company would obtain and
liquidate certain collateral (e.g., accounts receivable and inventory) to recover all or a portion
of the amounts paid under the guarantee. When it is deemed probable that the Company will incur a
loss in connection with a guarantee, a liability is recorded equal to this estimated loss. To
date, the Company has had no significant losses in connection with guarantees of independents’ and
affiliates’ borrowings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">In accordance with FIN No. 45, <i>Guarantor’s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others </i>(“FIN No. 45”) and based on
available information, the Company has accrued for those guarantees related to the
independents’ and affiliates’ borrowings as of June 30, 2009. These liabilities are not
material to the financial position of the Company and are included in other long-term
liabilities in the accompanying condensed consolidated balance sheets.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<head></head>
<body>
<!-- Begin Block Tagged Note 8 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note H
— Fair Value of Financial Instruments</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash
equivalents, trade accounts receivable and trade accounts payable approximate their respective fair
values based on the short-term nature of these instruments. At June 30, 2009, the fair value of
fixed rate debt was approximately $519.1 million, based primarily on quoted prices for similar
instruments. The fair value of fixed rate debt was estimated by calculating the present value of
anticipated cash flows. The discount rate used was an estimated borrowing rate for similar debt
instruments with like maturities.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 9 - us-gaap:ScheduleOfSubsequentEventsTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note I — Subsequent Events</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">Pursuant to SFAS No. 165, the Company has evaluated subsequent events during the period
beginning July 1, 2009 through August 6, 2009, the date the financial statements were issued.
The Company concluded that there were no events or transactions occurring during this period
that required recognition or disclosure in the accompanying condensed consolidated financial
statements.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 10 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note J — Acquisitions</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">For the six months ended June 30, 2009, the Company acquired six companies in the Industrial
and Automotive Groups for approximately $44 million. The acquisitions were accounted for in
accordance with SFAS No. 141(R) and, accordingly, the Company allocated the purchase price to
the assets acquired and the liabilities assumed based on their fair values as of their
respective acquisition dates. The results of operations for the acquired companies were
included in the Company’s condensed consolidated statements of income beginning on their
respective acquisition dates. The Company recorded approximately $8 million of goodwill and
other intangible assets associated with the acquisitions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">On June 1, 2009, the Company acquired the remaining noncontrolling interest in its consolidated
subsidiary, Balkamp, Inc., for approximately $63 million. The acquisition was accounted for as
an equity transaction in accordance with SFAS No. 160. The associated noncontrolling interest
in the subsidiary’s equity was eliminated as part of the transaction.
</div>
<p align="center" style="font-size: 10pt"> 
<!-- Folio -->
<!-- /Folio -->
</p>
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 11 - us-gaap:LeasesOfLesseeDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<div align="left" style="font-size: 10pt; margin-top: 10pt"><u>Note K — Leased Properties</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt">On June 26, 2009, the $85.0 million construction and lease agreement (“the Agreement”), as more
fully discussed in Note 4 of the Company’s notes to the consolidated financial statements in
the 2008 Annual Report on Form 10-K,
expired. The Company notified the lessor of its intention to purchase the properties subject
to the Agreement for approximately $73.0 million, including closing costs, paid in July 2009.
The properties and their associated liability have been included in property, plant, and
equipment and other current liabilities in the accompanying condensed consolidated balance
sheet.
</div>
</div>
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</html>
false
--12-31
2009-06-30
10-Q
0000040987
159530937
Yes
Large Accelerated Filer
6228135000000
GENUINE PARTS COMPANY
No
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