Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

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

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Net sales:
Automotive	$	3,467,494	$	3,196,299	$	6,743,115	$	6,149,464
Industrial	2,134,920		1,587,439		4,153,934		3,098,988
Total net sales	$	5,602,414	$	4,783,738	$	10,897,049	$	9,248,452
Segment profit:
Automotive	$	322,553	$	290,758	$	587,126	$	526,436
Industrial	225,472		150,413		413,825		275,705
Total segment profit	548,025		441,171		1,000,951		802,141
Interest expense, net	(20,248)		(15,362)		(40,098)		(33,686)
Intangible asset amortization	(39,630)		(27,384)		(79,324)		(52,928)
Corporate expense	(73,312)		(51,397)		(115,063)		(82,640)
Other unallocated income (expenses) (1)	76,732		(77,421)		50,817		(77,421)
Income before income taxes	$	491,567	$	269,607	$	817,283	$	555,466

(1)     The following table presents a summary of the other unallocated income and expenses:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Other unallocated costs:
Gain on sale of real estate (2)	$	102,803	$	—	$	102,803	$	—
Gain on insurance proceeds (3)	$	873	$	—	$	1,507	$	—
Product liability damages award (4)	—		(77,421)		—		(77,421)
Transaction and other costs (5)	(26,944)		—		(53,493)		—
Total other unallocated costs	$	76,732	$	(77,421)	$	50,817	$	(77,421)

(2)    Adjustment reflects a gain on the sale of real estate that had been leased to S.P. Richards.

(3)    Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs.

(4)    Adjustment reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim.

(5)    Adjustment primarily reflects legal and professional, restructuring, lease termination and other costs associated with the January 3, 2022 acquisition and subsequent integration of KDG. These costs also include a $17 million impairment charge 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. Refer to the acquisition footnote for more information regarding the acquisition.

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:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
North America:
Automotive	$	2,302,008	$	2,076,562	$	4,432,881	$	3,939,367
Industrial	2,021,297		1,469,775		3,931,730		2,869,174
Total North America	$	4,323,305	$	3,546,337	$	8,364,611	$	6,808,541
Australasia:
Automotive	$	398,940	$	388,708	$	777,849	$	756,577
Industrial	113,623		117,664		222,204		229,814
Total Australasia	$	512,563	$	506,372	$	1,000,053	$	986,391
Europe – Automotive	$	766,546	$	731,029	$	1,532,385	$	1,453,520
Total net sales	$	5,602,414	$	4,783,738	$	10,897,049	$	9,248,452