Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Changes in benefit obligations for the years ended December 31, 2017 and 2016 were:



	2017			2016
	(In Thousands)
Changes in benefit obligation
Benefit obligation at beginning of year	$	2,306,859		$	2,199,356
Service cost	8,459			7,746
Interest cost	96,651			104,485
Plan participants’ contributions	2,454			2,585
Actuarial loss	94,546			139,851
Foreign currency exchange rate changes	15,073			5,449
Gross benefits paid	(106,885		)	(154,676		)
Plan amendments	4,768			2,063
Acquired plans	13,840			—
Benefit obligation at end of year	$	2,435,765		$	2,306,859

Assumptions Used to Measure Pension Benefit Obligations

The assumptions used to measure the pension benefit obligations for the plans at December 31, 2017 and 2016, were:



	2017		2016
Weighted-average discount rate	3.70	%	4.26	%
Rate of increase in future compensation levels	3.11	%	3.14	%

Changes in Plan Assets

Changes in plan assets for the years ended December 31, 2017 and 2016 were:



	2017			2016
	(In Thousands)
Changes in plan assets
Fair value of plan assets at beginning of year	$	1,965,502		$	1,912,736
Actual return on plan assets	277,650			146,022
Foreign currency exchange rate changes	14,449			5,172
Employer contributions	53,309			53,663
Plan participants’ contributions	2,454			2,585
Benefits paid	(106,885		)	(154,676		)
Fair value of plan assets at end of year	$	2,206,479		$	1,965,502

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

For the years ended December 31, 2017 and 2016, the aggregate benefit obligation and aggregate fair value of plan assets for plans with benefit obligations in excess of plan assets were as follows:



	2017		2016
	(In Thousands)
Aggregate benefit obligation	$	2,241,690	$	2,131,550
Aggregate fair value of plan assets	2,003,831		1,783,472

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

For the years ended December 31, 2017 and 2016, the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets were as follows:



	2017		2016
	(In Thousands)
Aggregate accumulated benefit obligation	$	2,210,590	$	2,086,711
Aggregate fair value of plan assets	1,996,017		1,760,713

Asset Allocations for Funded Pension Plans

The asset allocations for the Company’s funded pension plans at December 31, 2017 and 2016, and the target allocation for 2018, by asset category were:



	Target Allocation 2018		Percentage of Plan Assets at December 31
	Target Allocation 2018		2017		2016
Asset Category
Equity securities	72	%	71	%	70	%
Debt securities	28	%	29	%	30	%
	100	%	100	%	100	%

Fair Value of Plan Assets by Asset Category



	2017
	Total		Assets Measured at NAV		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands)
Equity Securities
Common stocks — mutual funds — equity	$	536,609	$	193,628	$	342,981	$	—	$	—
Genuine Parts Company common stock	191,771		—		191,771		—		—
Other stocks	838,694		—		838,659		—		35

Debt Securities
Short-term investments	47,745		—		47,745		—		—
Cash and equivalents	13,530		—		13,530		—		—
Government bonds	180,838		—		121,834		59,004		—
Corporate bonds	207,978		—		—		207,978		—
Asset-backed and mortgage–backed securities	9,725		—		—		9,725		—
Convertible securities	211		—		—		211		—
Other-international	29,431		—		29,221		210		—
Municipal bonds	7,346		—		—		7,346		—
Mutual funds—fixed income	139,801		92,248		—		47,553		—

Other
Options and futures	38		—		38		—		—
Cash surrender value of life insurance policies	2,762		—		—		—		2,762
Total	$	2,206,479	$	285,876	$	1,585,779	$	332,027	$	2,797



	2016
	Total		Assets Measured at NAV		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands)
Equity Securities
Common stocks — mutual funds — equity	$	384,103	$	114,182	$	269,921	$	—	$	—
Genuine Parts Company common stock	192,841		—		192,841		—		—
Other stocks	793,101		—		793,007		—		94

Debt Securities
Short-term investments	55,607		—		55,607		—		—
Cash and equivalents	15,995		—		15,995		—		—
Government bonds	157,303		—		102,468		54,835		—
Corporate bonds	192,457		—		—		192,457		—
Asset-backed and mortgage–backed securities	8,872		—		—		8,872		—
Convertible securities	216		—		—		216		—
Other-international	24,613		—		20,868		3,745		—
Municipal bonds	9,272		—		—		9,272		—
Mutual funds—fixed income	128,367		82,394		—		45,973		—

Other
Cash surrender value of life insurance policies	2,755		—		—		—		2,755
Total	$	1,965,502	$	196,576	$	1,450,707	$	315,370	$	2,849

Amounts Recognized in Consolidated Balance Sheets

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets at December 31:



	2017			2016
	(In Thousands)
Other long-term asset	$	8,573		$	6,721
Other current liability	(9,280		)	(8,206		)
Pension and other post-retirement liabilities	(228,579		)	(339,872		)
	$	(229,286	)	$	(341,357	)

Amounts Recognized In Accumulated Other Comprehensive Loss Table

Amounts recognized in accumulated other comprehensive loss consist of:



	2017		2016
	(In Thousands)
Net actuarial loss	$	941,063	$	1,003,247
Prior service cost	5,773		672
	$	946,836	$	1,003,919

Expected Cash Flows for Pension Plans

Information about the expected cash flows for the pension plans follows (in thousands):



Employer contribution
2018 (expected)	$	47,038
Expected benefit payments:
2018	$	116,326
2019	121,779
2020	127,219
2021	133,143
2022	138,211
2023 through 2027	739,406

Components of Net Periodic Benefit (Income) Cost

Net periodic benefit income included the following components:



	2017			2016			2015
	(In Thousands)
Service cost	$	8,459		$	7,746		$	8,562
Interest cost	96,651			104,485			98,088
Expected return on plan assets	(155,432		)	(156,832		)	(150,130		)
Amortization of prior service credit	(350		)	(432		)	(565		)
Amortization of actuarial loss	38,034			31,641			38,197
Net periodic benefit income	$	(12,638	)	$	(13,392	)	$	(5,848	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows:



	2017			2016			2015
	(In Thousands)
Current year actuarial loss	$	(27,672	)	$	152,415		$	44,930
Recognition of actuarial loss	(38,034		)	(31,641		)	(38,197		)
Current year prior service cost	4,768			2,063			—
Recognition of prior service credit	350			432			565
Total recognized in other comprehensive (loss) income	$	(60,588	)	$	123,269		$	7,298
Total recognized in net periodic benefit income and other comprehensive (loss) income	$	(73,226	)	$	109,877		$	1,450

Estimated Amounts Amortized from Accumulated Other Comprehensive Loss

The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit income in 2018 are as follows in thousands:



Actuarial loss	$	39,856
Prior service credit	(148		)
Total	$	39,708

Assumptions Used To Measure Net Periodic Benefit (Income) Cost

The assumptions used in measuring the net periodic benefit income for the plans follow:



	2017		2016		2015
Weighted average discount rate	4.26	%	4.82	%	4.26	%
Rate of increase in future compensation levels	3.15	%	3.12	%	3.07	%
Expected long-term rate of return on plan assets	7.80	%	7.83	%	7.85	%