Segment Data

The Company’s reportable segments consist of automotive and industrial parts and business products. Within the reportable segments, certain of the Company’s operating segments are aggregated since they have similar economic characteristics, products and services, type and class of customers, and distribution methods.

The Company’s automotive segment distributes replacement parts (other than body parts) for substantially all makes and models of automobiles, trucks, and other vehicles.

The Company’s industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components, electrical specialties materials, including insulating and conductive materials for use in electrical apparatus, and related parts and supplies.

The Company’s business products segment distributes a wide variety of office products, computer supplies, office furniture, and business electronics.

Inter-segment sales are not significant. Operating profit for each industry segment is calculated as net sales less operating expenses excluding general corporate expenses, interest expense, and equity in income from investees, amortization, and noncontrolling interests. Approximately $285,020, $196,190 and $139,864 of income before income taxes was generated in jurisdictions outside the U.S. for the years ended December 31, 2018, 2017, and 2016, respectively. Net sales and net property, plant and equipment by country relate directly to the Company’s operations in the respective country. Corporate assets are principally cash and cash equivalents and headquarters’ facilities and equipment.



	2018			2017			2016
Net sales: (1)
Automotive	$	10,526,520		$	8,583,317		$	8,040,407
Industrial (2)	6,298,584			5,805,012			5,399,416
Business products	1,909,969			1,920,472			1,899,890
Total net sales	$	18,735,073		$	16,308,801		$	15,339,713
Operating profit:
Automotive	$	854,389		$	720,465		$	715,154
Industrial (2)	487,360			440,454			397,147
Business products	88,756			98,882			117,035
Total operating profit	1,430,505			1,259,801			1,229,336
Interest expense, net	(92,093		)	(38,677		)	(19,525		)
Corporate expense (3)	(173,828		)	(159,863		)	(94,601		)
Intangible asset amortization	(88,972		)	(51,993		)	(40,870		)
Income before income taxes	$	1,075,612		$	1,009,268		$	1,074,340
Assets:
Automotive	$	6,246,911		$	6,140,829		$	4,601,150
Industrial (2)	1,790,410			1,645,271			1,495,397
Business products	860,279			859,335			907,119
Corporate	245,022			212,566			281,071
Goodwill and other intangible assets	3,540,418			3,554,380			1,574,663
Total assets	$	12,683,040		$	12,412,381		$	8,859,400



	2018		2017		2016
Depreciation and amortization:
Automotive	$	105,238	$	71,405	$	65,372
Industrial (2)	14,518		13,446		13,338
Business products	10,472		11,262		11,398
Corporate	22,435		19,585		16,509
Intangible asset amortization	88,972		51,993		40,870
Total depreciation and amortization	$	241,635	$	167,691	$	147,487
Capital expenditures:
Automotive	$	198,910	$	118,181	$	73,339
Industrial (2)	21,783		28,566		33,093
Business products	7,320		6,726		12,072
Corporate	4,409		3,287		42,139
Total capital expenditures	$	232,422	$	156,760	$	160,643
Net sales:
United States	$	13,927,091	$	13,246,619	$	12,779,971
Europe	1,860,912		256,364		—
Canada	1,624,890		1,525,421		1,368,743
Australasia	1,193,148		1,162,122		1,083,779
Mexico	129,032		118,275		107,220
Total net sales	$	18,735,073	$	16,308,801	$	15,339,713
Net property, plant, and equipment:
United States	$	726,068	$	647,386	$	561,164
Europe	110,184		96,857		—
Canada	91,387		90,857		81,260
Australasia	95,578		95,299		79,413
Mexico	4,014		6,303		6,287
Total net property, plant, and equipment	$	1,027,231	$	936,702	$	728,124


(1)	The net effect of discounts, incentives, and freight billed to customers has been allocated to their respective segments for the current and prior periods. Previously, the net effect of such items were captured and presented separately in a line item entitled “Other.”


(2)	Effective January 1, 2018, the electrical materials segment became a division of the industrial segment. These two reporting segments became a single reporting segment, the Industrial Parts Group. The change in segment reporting is presented retrospectively.


(3)	Includes $36,105 of expense for the year ended December 31, 2018, respectively, from transaction and other costs related to the AAG acquisition and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018. See the acquisitions and divestitures footnote for additional information.

The year ended December 31, 2017 includes $49,141 in transaction and other costs primarily related to the AAG acquisition.

The following table presents disaggregated geographical net sales from contracts with customers by reportable segment. Automotive is the only reportable segment with operations in Australasia and Europe. The Company believes this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors:



	2018		2017		2016
North America:
Automotive	$	7,472,460	$	7,164,831	$	6,956,628
Industrial	6,298,584		5,805,012		5,399,416
Business products	1,909,969		1,920,472		1,899,890
Total North America	$	15,681,013	$	14,890,315	$	14,255,934
Australasia - Automotive	$	1,193,148	$	1,162,122	$	1,083,779
Europe - Automotive	$	1,860,912	$	256,364	$	—
Total net sales	$	18,735,073	$	16,308,801	$	15,339,713