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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Our defined benefit pension plans cover employees in the U.S., Canada, and Europe who meet eligibility requirements. The plan covering U.S. employees is noncontributory, and our U.S. qualified defined benefit plan was frozen as of December 31, 2013. No further benefits were provided after this date for additional credited service or earnings, and all participants became fully vested as of December 31, 2013. The Canadian plan is contributory, and benefits are based on career average compensation. Our funding policy is to contribute an amount equal to the minimum required contribution under applicable pension legislation. For the plans in the U.S. and Canada, we may increase our contribution above the minimum, if appropriate to our tax and cash position and the plans’ funded position. The European plans are funded in accordance with local regulations.
We also sponsor supplemental retirement plans covering employees in the U.S. and Canada. We use a measurement date of December 31 for our pension and supplemental retirement plans.
Several assumptions are used to determine the benefit obligations, plan assets, and net periodic income. The discount rate for the U.S. pension plan is calculated using a bond matching approach to select specific bonds that would satisfy the projected benefit payments. The bond matching approach reflects the process that would be used to settle the pension obligations. The discount rate for non U.S. plans are set by using Willis Towers Watson's RATE:Link model. For each plan, this approach reflects yields available on high quality corporate bonds that would generate the cash flow necessary to pay the plan's benefits when due. The expected return on plan assets is based on a calculated market-related value of plan assets, where gains and losses on plan assets are amortized over a five year period and accumulate in other comprehensive income. Other non-investment unrecognized gains and losses are amortized in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. The unrecognized gains and losses in excess of the corridor criteria are amortized over the average future lifetime or service of plan participants, depending on the plan. These assumptions are updated at each annual measurement date.
Changes in benefit obligations for the years ended December 31, 2023 and 2022 were:
(in thousands)20232022
Changes in benefit obligation
Benefit obligation at beginning of year$1,923,163 $2,532,973 
Service cost5,991 10,204 
Interest cost104,490 75,248 
Plan participants’ contributions1,765 1,892 
Actuarial loss (gain)76,072 (546,266)
Foreign currency exchange rate changes5,580 (15,744)
Gross benefits paid(137,742)(135,907)
Plan amendments 2,464 — 
Settlements— (276)
Acquired plans— 1,039 
Benefit obligation at end of year$1,981,783 $1,923,163 
The benefit obligations for our U.S. pension plans included in the above were $1.7 billion and $1.7 billion at December 31, 2023 and 2022, respectively. The total accumulated benefit obligation for our defined benefit pension plans in the U.S., Canada, and Europe was approximately $2.0 billion and $1.9 billion at December 31, 2023 and 2022, respectively.

For the U.S. pension plan, there was a net actuarial liability loss of $50 million and an asset gain of $47 million. The liability loss was comprised primarily from a decrease in the discount rate. For the U.S. supplemental retirement plan, there was a net actuarial liability loss of $20 million. The liability loss is the result of a $5 million loss associated with a decrease in the discount rate, an $11.2 million demographic loss related to new entrants, and an $8.5 million loss associated with higher than expected incentive payouts.These losses were offset by updates that were made to other assumptions, including termination rates, retirement rates, percent married, spouse age difference, and benefit payment form elected based on the results of an experience study performed during 2023. The net impact of these updates is a gain of $4.8 million.

The assumptions used to measure the pension benefit obligations for the plans at December 31, 2023 and 2022, were:
20232022
Weighted average discount rate5.30 %5.61 %
Rate of increase in future compensation levels3.18 %3.16 %
Changes in plan assets for the years ended December 31, 2023 and 2022 were:
(in thousands)20232022
Changes in plan assets
Fair value of plan assets at beginning of year$2,129,058 $2,756,803 
Actual return on plan assets217,767 (493,359)
Foreign currency exchange rate changes5,407 (15,599)
Employer contributions16,824 15,504 
Plan participants’ contributions1,765 1,892 
Benefits paid(137,742)(135,907)
Settlements— (276)
Fair value of plan assets at end of year$2,233,079 $2,129,058 
The fair values of plan assets for our U.S. pension plans included in the above were $2.0 billion and $1.9 billion at December 31, 2023 and 2022, respectively.
For the years ended December 31, 2023 and 2022, the aggregate projected benefit obligation and aggregate fair value of plan assets for plans with projected benefit obligations in excess of plan assets were as follows:
(in thousands)20232022
Aggregate projected benefit obligation$231,741 $208,939 
Aggregate fair value of plan assets$— $— 
For the years ended December 31, 2023 and 2022, 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:
(in thousands)20232022
Aggregate accumulated benefit obligation$215,380 $192,421 
Aggregate fair value of plan assets$— $— 
The asset allocations for our funded pension plans at December 31, 2023 and 2022, and the target allocation for 2024, by asset category were:
 Target AllocationPercentage of Plan Assets at December 31
 202420232022
Asset Category
Equity securities58 %58 %59 %
Debt securities41 %42 %41 %
Other1 %— %— %
100 %100 %100 %
Our benefit plan committees in the U.S. and Canada establish investment policies and strategies and regularly monitor the performance of the funds. The plans in Europe are unfunded and, therefore, there are no plan assets. The pension plan strategy implemented by our management is to achieve long-term objectives and invest the pension assets in accordance with the applicable pension legislation in the U.S. and Canada as well as fiduciary standards. The long-term primary investment objectives for the pension plans are to provide for a reasonable amount of long-term growth of capital, without undue exposure to risk, protect the assets from erosion of purchasing power, and provide investment results that meet or exceed the pension plans’ actuarially assumed long-term rates of return. Our investment strategy with respect to pension plan assets is to generate a return in excess of the passive portfolio benchmark (38% U.S. Large-cap stocks, 4% U.S. Mid-cap stocks, 5% U.S. Small-cap stocks, 10% International stocks, 3% Emerging Market stocks and 40% Barclays U.S. Gov/Credit Index).
The fair values of the plan assets as of December 31, 2023 and 2022, by asset category, are shown in the tables below. Various inputs are considered when determining the value of our pension plan assets. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Level 1 represents observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 represents other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.). Level 3 represents significant unobservable inputs (including our own assumptions in determining the fair value of investments). Certain investments are measured at fair value using the net asset value ("NAV") per share as a practical expedient and have not been classified in the fair value hierarchy. 
The valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded on the last day of the calendar plan year. Debt securities including corporate bonds, U.S. Government securities, and asset-backed securities are valued using price evaluations reflecting the bid and/or ask sides of the market for an investment as of the last day of the calendar plan year.
 2023
(in thousands)TotalAssets Measured at NAVQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs
 (Level 2)		Significant Unobservable Inputs
(Level 3)
Equity Securities
Common stocks — mutual funds — equity$318,418 $53,876 $264,542 $— $— 
Genuine Parts Company common stock209,384 — 209,384 — — 
Other stocks763,451 — 763,451 — — 
Debt Securities
Short-term investments38,235 — 38,235 — — 
Cash and equivalents6,608 — 6,608 — — 
Government bonds389,199 — 536 388,663 — 
Corporate bonds436,418 — — 436,418 — 
Asset-backed and mortgage-backed securities10,396 — — 10,396 — 
Convertible Securities1,720 — — 1,720 — 
Other-international45,059 — — 45,059 — 
Municipal bonds14,295 — — 14,295 — 
Other
Options and Futures(104)— — (105)1 
Total$2,233,079 $53,876 $1,282,756 $896,446 $1 
 2022
(in thousands)TotalAssets Measured at NAVQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Equity Securities
Common stocks — mutual funds — equity$285,103 $48,521 $236,582 $— $— 
Genuine Parts Company common stock261,869 — 261,869 — — 
Other stocks711,830 — 711,830 — — 
Debt Securities
Short-term investments41,076 — 41,076 — — 
Cash and equivalents8,632 — 8,632 — — 
Government bonds344,787 — 411 344,376 — 
Corporate bonds412,896 — — 412,896 — 
Asset-backed and mortgage-backed securities9,925 — — 9,925 — 
Convertible securities1,159 — — 1,159 — 
Other-international37,304 — 37,304 — — 
Municipal bonds14,442 — — 14,442 — 
Other
Options and Futures35 — 35 — — 
Total$2,129,058 $48,521 $1,297,739 $782,798 $— 
Equity securities include Genuine Parts Company common stock in the amounts of $209 million (9% of total plan assets) and $262 million (12% of total plan assets) at December 31, 2023 and 2022, respectively. Dividend payments received by the plan on company stock totaled approximately $6 million and $5 million in 2023 and 2022, respectively. Fees paid during the year for services rendered by parties in interest were based on customary and reasonable rates for such services.
Based on the investment policy for the pension plans, as well as an asset study that was performed based on our asset allocations and future expectations, our expected rate of return on plan assets for measuring 2024 pension income is 7.61% for the plans. The asset study forecasted expected rates of return for the approximate duration of our benefit obligations, using capital market data and historical relationships.
The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets at December 31:
(in thousands)20232022
Other long-term asset$483,037 $414,834 
Other current liability(13,039)(12,537)
Pension and other post-retirement liabilities(219,644)(197,879)
$250,354 $204,418 
Amounts recognized in accumulated other comprehensive loss consist of:
(in thousands)20232022
Net actuarial loss$697,794 $682,884 
Prior service cost 9,044 7,273 
$706,838 $690,157 
The following table reflects the total benefits expected to be paid from the pension plans’ or our assets. Of the pension benefits expected to be paid in 2024, approximately $13 million is expected to be paid from employer assets. Expected employer contributions below reflect amounts expected to be contributed to funded plans. Information about the expected cash flows for the pension plans follows (in thousands):
Employer contribution
2024 (expected)$4,384 
Expected benefit payments:
2024$141,637 
2025$144,652 
2026$147,018 
2027$149,040 
2028$150,626 
2029 through 2033$745,950 
Net periodic benefit income included the following components:
(in thousands)202320222021
Service cost$5,991 $10,204 $12,218 
Interest cost104,490 75,248 71,693 
Expected return on plan assets(164,984)(150,318)(153,822)
Amortization of prior service cost692 691 690 
Amortization of actuarial loss9,361 37,065 49,897 
Net periodic benefit income$(44,450)$(27,110)$(19,324)
Service cost is recorded in selling, administrative and other expenses in the consolidated statements of income while all other components are recorded within other non-operating expenses (income). Pension benefits also include amounts related to supplemental retirement plans.
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows:
(in thousands)202320222021
Current year actuarial loss (gain)$23,289 $97,412 $(264,547)
Recognition of actuarial loss(9,361)(37,065)(49,897)
Recognition of prior service cost(692)(691)(690)
Recognition of curtailment loss— — (5)
Other2,464 68 (29)
Total recognized in other comprehensive income (loss)$15,700 $59,724 $(315,168)
Total recognized in net periodic benefit income and other comprehensive income (loss)$(28,750)$32,614 $(334,492)
The assumptions used in measuring the net periodic benefit income for the plans follow:
202320222021
Weighted average discount rate5.61 %3.04 %2.72 %
Rate of increase in future compensation levels3.16 %3.13 %3.11 %
Expected long-term rate of return on plan assets7.09 %6.34 %6.88 %
We have one defined contribution plan in the U.S. that covers substantially all of our domestic employees. Employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense was approximately $77 million in 2023, $69 million in 2022, and $60 million in 2021.