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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 1-5690
  __________________________________________ 
GENUINE PARTS COMPANY
(Exact name of registrant as specified in its charter)
   __________________________________________ 
GA58-0254510
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
2999 WILDWOOD PARKWAY, 30339
ATLANTA,GA
(Address of principal executive offices) (Zip Code)
678-934-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of each exchange on which registered
Common Stock, $1.00 par value per shareGPCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒
There were 139,317,735 shares of common stock outstanding as of July 18, 2024.



Table of Contents
Page
   
  
  

1

Table of Contents
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)June 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$555,277 $1,102,007 
Trade accounts receivable, less allowance for doubtful accounts (2024 – $59,179; 2023 – $56,608)
2,526,060 2,223,431 
Merchandise inventories, net 5,103,644 4,676,686 
Prepaid expenses and other current assets1,611,717 1,603,728 
Total current assets9,796,698 9,605,852 
Goodwill2,858,668 2,734,681 
Other intangible assets, less accumulated amortization1,818,954 1,792,913 
Property, plant and equipment, less accumulated depreciation (2024 – $1,695,974; 2023 – $1,592,658)
1,787,822 1,616,785 
Operating lease assets1,604,559 1,268,742 
Other assets1,002,692 949,481 
Total assets$18,869,393 $17,968,454 
Liabilities and equity
Current liabilities:
Trade accounts payable$5,931,993 $5,499,536 
Current portion of debt853,236 355,298 
Dividends payable139,375 132,635 
Other current liabilities1,841,809 1,839,640 
Total current liabilities8,766,413 7,827,109 
Long-term debt3,027,491 3,550,930 
Operating lease liabilities1,318,307 979,938 
Pension and other post–retirement benefit liabilities222,378 219,644 
Deferred tax liabilities473,125 437,674 
Other long-term liabilities505,556 536,174 
Equity:
Preferred stock, par value – $1 per share; authorized – 10,000,000 shares; none issued
  
Common stock, par value – $1 per share; authorized – 450,000,000 shares; issued and outstanding – 2024 – 139,346,018 shares; 2023 – 139,567,071 shares
139,346 139,567 
Additional paid-in capital180,527 173,025 
Accumulated other comprehensive loss(1,035,739)(976,872)
Retained earnings5,256,514 5,065,327 
Total parent equity4,540,648 4,401,047 
Noncontrolling interests in subsidiaries15,475 15,938 
Total equity4,556,123 4,416,985 
Total liabilities and equity$18,869,393 $17,968,454 
See accompanying Notes to Condensed Consolidated Financial Statements.
2

Table of Contents
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per share data)2024202320242023
Net sales$5,962,567 $5,915,006 $11,746,198 $11,680,124 
Cost of goods sold3,782,264 3,780,263 7,491,240 7,531,980 
Gross profit2,180,303 2,134,743 4,254,958 4,148,144 
Operating expenses:
Selling, administrative and other expenses1,647,456 1,581,653 3,222,383 3,092,897 
Depreciation and amortization99,202 90,873 189,812 178,088 
Provision for doubtful accounts5,678 8,322 11,889 13,961 
Restructuring and other costs 29,760  112,802  
Total operating expenses1,782,096 1,680,848 3,536,886 3,284,946 
Non-operating (income) expense:
Interest expense, net21,921 16,455 39,611 33,319 
Other(9,915)(16,649)(32,921)(28,616)
Total non-operating (income) expense 12,006 (194)6,690 4,703 
Income before income taxes386,201 454,089 711,382 858,495 
Income taxes90,657 109,595 166,944 210,044 
Net income$295,544 $344,494 $544,438 $648,451 
Dividends declared per common share$1.00 $0.95 $2.00 $1.90 
Basic earnings per share$2.12 $2.45 $3.91 $4.61 
Diluted earnings per share$2.11 $2.44 $3.89 $4.58 
See accompanying Notes to Condensed Consolidated Financial Statements.
3

Table of Contents

GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Net income$295,544 $344,494 $544,438 $648,451 
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments15,278 (9,540)(64,642)14,287 
Cash flow hedge, net of income taxes in 2023 — $951 and $951 respectively
 2,572  2,572 
Pension and postretirement benefit adjustments, net of income taxes in 2024 — $1,063 and $2,126; 2023 — $702 and $1,405 respectively
2,887 1,912 5,775 3,826 
Other comprehensive income (loss), net of income taxes18,165 (5,056)(58,867)20,685 
Comprehensive income$313,709 $339,438 $485,571 $669,136 
See accompanying Notes to Condensed Consolidated Financial Statements.
4

Table of Contents
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
Three Months Ended June 30, 2024
(in thousands, except share and per share data)Common Stock SharesCommon Stock AmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal Parent EquityNon-controlling Interests in SubsidiariesTotal Equity
April 1, 2024139,335,342 $139,335 $179,349 $(1,053,904)$5,137,597 $4,402,377 $14,799 $4,417,176 
Net income— — — — 295,544 295,544 — 295,544 
Other comprehensive income, net of tax— — — 18,165 — 18,165 — 18,165 
Cash dividend declared, $1.0000 per share
— — — — (139,376)(139,376)— (139,376)
Shares issued from employee incentive plans259,702 259 (16,828)— — (16,569)— (16,569)
Share-based compensation— — 18,006 — — 18,006 — 18,006 
Purchase of stock(249,026)(248)— — (37,251)(37,499)— (37,499)
Noncontrolling interest activities— — — — — — 676 676 
June 30, 2024139,346,018 $139,346 $180,527 $(1,035,739)$5,256,514 $4,540,648 $15,475 $4,556,123 

Six Months Ended June 30, 2024
(in thousands, except share and per share data)Common Stock SharesCommon Stock AmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal Parent EquityNon-controlling Interests in SubsidiariesTotal Equity
January 1, 2024139,567,071$139,567 $173,025 $(976,872)$5,065,327 $4,401,047 $15,938 $4,416,985 
Net income— — — — 544,438 544,438 — 544,438 
Other comprehensive loss, net of tax— — — (58,867)— (58,867)— (58,867)
Cash dividend declared, $2.0000 per share
— — — — (278,761)(278,761)— (278,761)
Shares issued from employee incentive plans288,513 288 (19,068)— — (18,780)— (18,780)
Share-based compensation— — 26,570 — — 26,570 — 26,570 
Purchase of stock(509,566)(509)— — (74,490)(74,999)— (74,999)
Noncontrolling interest activities— — — — — — (463)(463)
June 30, 2024139,346,018 $139,346 $180,527 $(1,035,739)$5,256,514 $4,540,648 $15,475 $4,556,123 







5

Table of Contents
Three Months Ended June 30, 2023
(in thousands, except share and per share data)Common Stock SharesCommon Stock AmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal Parent EquityNon-controlling Interests in SubsidiariesTotal Equity
April 1, 2023140,545,475$140,545 $147,690 $(1,006,801)$4,644,770 $3,926,204 $13,432 $3,939,636 
Net income— — — — 344,494 344,494 — 344,494 
Other comprehensive loss, net of tax— — — (5,056)— (5,056)— (5,056)
Cash dividend declared, $0.9500 per share
— — — — (133,492)(133,492)— (133,492)
Shares issued from employee incentive plans351,648 351 (22,241)— — (21,890)— (21,890)
Share-based compensation— — 28,299 — — 28,299 — 28,299 
Purchase of stock(429,573)(428)— — (66,920)(67,348)— (67,348)
Noncontrolling interest activities— — — — — — 1,151 1,151 
June 30, 2023140,467,550 $140,468 $153,748 $(1,011,857)$4,788,852 $4,071,211 $14,583 $4,085,794 

Six Months Ended June 30, 2023
(in thousands, except share and per share data)Common Stock SharesCommon Stock AmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal Parent EquityNon-controlling Interests in SubsidiariesTotal Equity
January 1, 2023140,941,649$140,941 $140,324 $(1,032,542)$4,541,640 $3,790,363 $14,084 $3,804,447 
Net income— — — — 648,451 648,451 — 648,451 
Other comprehensive income, net of tax— — — 20,685 — 20,685 — 20,685 
Cash dividend declared, $1.9000 per share
— — — — (267,229)(267,229)— (267,229)
Shares issued from employee incentive plans366,480 366 (23,521)— — (23,155)— (23,155)
Share-based compensation— — 36,945 — — 36,945 — 36,945 
Purchase of stock(840,579)(839)— — (134,010)(134,849)— (134,849)
Noncontrolling interest activities— — — — — — 499 499 
June 30, 2023140,467,550 $140,468 $153,748 $(1,011,857)$4,788,852 $4,071,211 $14,583 $4,085,794 
See accompanying Notes to Condensed Consolidated Financial Statements.
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GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 Six Months Ended June 30,
(in thousands)20242023
Operating activities:
Net income$544,438 $648,451 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization189,812 178,088 
Share-based compensation26,570 36,945 
Excess tax benefits from share-based compensation(8,233)(6,431)
Other operating activities, including changes in operating assets and liabilities(140,672)(400,050)
Net cash provided by operating activities611,915 457,003 
Investing activities:
Purchases of property, plant and equipment(259,245)(205,336)
Proceeds from sale of property, plant and equipment73,645 4,762 
Proceeds from divestitures of businesses3,715  
Proceeds from sale of investments 80,482 
Acquisitions and other investing activities(580,141)(106,028)
Net cash used in investing activities(762,026)(226,120)
Financing activities:
Proceeds from debt539,722 1,668,757 
Payments on debt(544,355)(1,602,138)
Shares issued from employee incentive plans(18,780)(23,155)
Dividends paid(272,021)(259,929)
Purchases of stock(74,999)(134,849)
Other financing activities(11,893)(6,436)
Net cash used in financing activities(382,326)(357,750)
Effect of exchange rate changes on cash and cash equivalents(14,293)3,509 
Net decrease in cash and cash equivalents(546,730)(123,358)
Cash and cash equivalents at beginning of period1,102,007 653,463 
Cash and cash equivalents at end of period$555,277 $530,105 
See accompanying Notes to Condensed Consolidated Financial Statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.General
Basis of Presentation
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 U.S. (“U.S. GAAP”) for complete financial statements. Except as disclosed herein, there have been no material changes 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,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2023. Accordingly, the unaudited Condensed Consolidated Financial Statements and related disclosures herein should be read in conjunction with our 2023 Annual Report on Form 10-K.
The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited Condensed Consolidated Financial Statements. Specifically, we make estimates and assumptions in our unaudited Condensed Consolidated Financial Statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels.
In the opinion of management, all adjustments necessary for a fair presentation of our 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, 2024 are not necessarily indicative of results for the year ended December 31, 2024. We have evaluated subsequent events through the date the unaudited Condensed Consolidated Financial Statements covered by this quarterly report were issued.
Recent Accounting Pronouncements
Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to not be applicable or are expected to have an immaterial impact on our Condensed Consolidated Financial Statements.
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard requires disclosures of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount and description of other segment items by reportable segment, and all annual disclosures currently required by Topic 280 to be included in interim periods. The guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent interim periods, with early adoption permitted. We are currently evaluating the impact of adopting this standard on our financial statements and disclosures.
Income Taxes (Topic 740): Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items, income before tax expense disaggregated between domestic and foreign, income tax expense disaggregated by federal, state and foreign, as well as further information on income taxes paid. The guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2025, with early adoption permitted. The guidance should be applied on a prospective basis, with retrospective application permitted. We are currently evaluating the impact of adopting this standard on our financial statements and disclosures.
Prepaid Expenses and Other Current Assets
The following table provides a detail of prepaid expenses and other current assets reported within the Condensed Consolidated Balance Sheets as of:
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(in thousands)June 30, 2024December 31, 2023
Prepaid expenses$151,407 $110,863 
Consideration receivable from vendors891,864 928,499 
Other current assets568,446 564,366 
Total prepaid expenses and other current assets$1,611,717 $1,603,728 
Derivatives and Hedging
We are exposed to various risks arising from business operations and market conditions, including fluctuations in certain foreign currencies. We use derivative and non-derivative instruments as risk management tools to mitigate the potential impact of foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in our earnings and cash flows associated with changes in these rates. Derivative instruments are recognized in the Condensed Consolidated Balance Sheets at fair value and are designated as Level 2 in the fair value hierarchy. They are valued using inputs other than quoted prices, such as foreign exchange rates and yield curves.
The following table summarizes the classification and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships (in thousands):
June 30, 2024December 31, 2023
InstrumentBalance Sheet LocationNotionalBalanceNotionalBalance
Net investment hedges:
Forward contractsPrepaid expenses and other current assets$1,053,110$63,056$606,950$37,676
Forward contractOther current liabilities$106,800$487$106,800$4,383
Foreign currency debt Long-term debt700,000$749,910700,000$772,660
The tables below presents gains and losses related to designated net investment hedges:
Gain (Loss) Recognized in AOCL before ReclassificationsGain Recognized in Interest Expense for Excluded Components
(in thousands)2024202320242023
Three Months Ended June 30,
Net investment hedges:
Forward contracts$6,994 $(9,212)$4,651 $3,158 
Foreign currency debt 5,670 2,940   
Total$12,664 $(6,272)$4,651 $3,158 
Gain (Loss) Recognized in AOCL before ReclassificationsGain Recognized in Interest Expense for Excluded Components
(in thousands)2024202320242023
Six Months Ended June 30,
Net investment hedges:
Forward contracts$20,256 $(14,536)$9,020 $6,317 
Foreign currency debt 22,750 (11,200)  
Total$43,006 $(25,736)$9,020 $6,317 

Fair Value of Financial Instruments
As of June 30, 2024, the fair value of our senior unsecured notes was approximately $3.6 billion, which are designated as Level 2 in the fair value hierarchy. Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities.
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Guarantees
We guarantee the borrowings of certain independently controlled automotive parts stores and businesses (“independents”) and certain other affiliates in which we have a noncontrolling equity ownership interest (“affiliates”). While such borrowings of the independents and affiliates are outstanding, we are required to maintain compliance with certain covenants. As of June 30, 2024, we were in compliance with all such covenants.
As of June 30, 2024, the total borrowings of the independents and affiliates subject to guarantee by us were approximately $757 million. These loans generally mature over periods from one to six years. We regularly monitor the performance of these loans and the ongoing operating results, financial condition and ratings from credit rating agencies of the independents and affiliates that participate in the guarantee programs. In the event that we are required to make payments in connection with these guarantees, we would obtain and liquidate certain collateral pledged by the independents or affiliates (e.g., accounts receivable and inventory) to recover all or a substantial portion of the amounts paid under the guarantees. We recognize a liability equal to the current expected credit losses over the lives of the loans in the guaranteed loan portfolio, based on a consideration of historical experience, current conditions, the nature and expected value of any collateral, and reasonable and supportable forecasts. To date, we have not had significant losses in connection with guarantees of independents’ and affiliates’ borrowings and the current expected credit loss reserve is not material. As of June 30, 2024, there are no material guaranteed loans for which the borrower is experiencing financial difficulty and recovery is expected to be provided substantially through the operation or sale of the collateral.
As of June 30, 2024, we have recognized $52 million of certain assets and liabilities for the guarantees related to the independents’ and affiliates’ borrowings. These assets and liabilities are included in other assets and other long-term liabilities in the Condensed Consolidated Balance Sheets. The liabilities relate to our noncontingent obligation to stand ready to perform under the guarantee programs and they are distinct from our current expected credit loss reserve.
Supply Chain Finance Programs
Several global financial institutions offer voluntary supply chain finance (“SCF”) programs which enable our suppliers (generally those that grant extended terms), at their sole discretion, to sell their receivables from us to these financial institutions on a non-recourse basis at a rate that takes advantage of our credit rating and may be beneficial to them. We and our suppliers agree on commercial terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. Our current payment terms with the majority of our suppliers range from 30 to 360 days. The suppliers sell goods or services, as applicable, to us and they issue the associated invoices to us based on the agreed-upon contractual terms. Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions. In turn, we direct payment to the financial institutions, rather than the suppliers, for the invoices sold to the financial institutions. No guarantees are provided by us or any of our subsidiaries on third-party performance under the SCF program; however, we guarantee the payment by our subsidiaries to the financial institutions participating in the SCF program for the applicable invoices. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable in our Condensed Consolidated Balance Sheets.
All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected in cash flows from operating activities in our Condensed Consolidated Statement of Cash Flows. As of June 30, 2024 and December 31, 2023, the outstanding payment obligations to the financial institutions are $3.1 billion and $3.0 billion, respectively.
(in thousands)June 30, 2024
Obligations outstanding at the beginning of the year$3,041,187 
Invoices confirmed during the year2,058,584 
Confirmed invoices paid during the year(1,967,840)
Confirmed obligations outstanding at the end of period$3,131,931 
Earnings Per Share
We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding. Certain outstanding options are not included in the diluted earnings per share calculation
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because their inclusion would have been anti-dilutive. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material.
The following table summarizes basic and diluted shares outstanding:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per share data)2024202320242023
Net income$295,544 $344,494 $544,438 $648,451 
Weighted average common shares outstanding139,358 140,574 139,394 140,688 
Dilutive effect of non-vested restricted stock awards471 673 567 808 
Weighted average common shares outstanding – assuming dilution139,829 141,247 139,961 141,496 
Basic earnings per share$2.12 $2.45 $3.91 $4.61 
Diluted earnings per share$2.11 $2.44 $3.89 $4.58 
2. 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)2024202320242023
Net sales:
Automotive$3,726,991 $3,654,999 $7,301,011 $7,160,826 
Industrial2,235,576 2,260,007 4,445,187 4,519,298 
Total net sales$5,962,567 $5,915,006 $11,746,198 $11,680,124 
Segment profit:
Automotive$313,975 $329,347 $586,911 $593,767 
Industrial276,841 283,372 547,680 545,359 
Total segment profit590,816 612,719 1,134,591 1,139,126 
Interest expense, net(21,921)(16,455)(39,611)(33,319)
Intangible asset amortization(34,685)(40,625)(68,785)(79,747)
Corporate expense(85,984)(101,550)(169,746)(167,565)
Other unallocated costs (1)(62,025) (145,067) 
Income before income taxes$386,201 $454,089 $711,382 $858,495 

(1)     The following table presents a summary of the other unallocated costs:

Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Other unallocated costs:
Restructuring and other costs (2)$(37,247)$ $(120,289)$ 
Acquisition and integration related costs and other (3)(24,778) (24,778) 
Total other unallocated costs$(62,025)$ $(145,067)$ 

(2)     Amount reflects costs related to the global restructuring initiative which includes a voluntary retirement offer in the U.S., inventory liquidation costs, and rationalization and optimization of certain distribution centers, stores and other facilities.
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(3)     Amount primarily reflects integration costs related to the completion of the acquisition of Motor Parts and Equipment Corporation ("MPEC") in April 2024, including professional services costs, personnel costs, and lease and other exit costs.
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)2024202320242023
North America:
Automotive$2,352,254 $2,344,701 $4,549,144 $4,550,086 
Industrial2,101,811 2,128,747 4,181,937 4,259,462 
Total North America $4,454,065 $4,473,448 $8,731,081 $8,809,548 
Australasia:
Automotive$412,883 $407,853 $813,231 $814,615 
Industrial133,765 131,260 263,250 259,836 
Total Australasia$546,648 $539,113 $1,076,481 $1,074,451 
Europe – Automotive$961,854 $902,445 $1,938,636 $1,796,125 
Total net sales$5,962,567 $5,915,006 $11,746,198 $11,680,124 
3. Accounts Receivable Sales Agreement
Under our accounts receivable sales agreement (the "A/R Sales Agreement"), we continuously sell designated pools of receivables as they are originated by us and certain U.S. subsidiaries to a separate bankruptcy-remote special purpose entity (“SPE”). The A/R Sales Agreement has a three-year term expiring in January 2025, which we intend to renew.
We continue to be involved with the receivables transferred by the SPE to the unaffiliated financial institutions by providing collection services. As cash is collected on sold receivables, the SPE continuously transfers ownership and control of new qualifying receivables to the unaffiliated financial institutions so that the total principal amount outstanding of receivables sold is approximately $1.0 billion at any point in time (which is the maximum amount allowed under the agreement as amended on January 3, 2022).
The total principal amount outstanding of receivables sold is approximately $1.0 billion as of both June 30, 2024 and December 31, 2023. The amount of receivables pledged as collateral as of June 30, 2024 and December 31, 2023 is approximately $1.5 billion and $1.2 billion, respectively.
The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Receivables sold to the financial institutions and derecognized$2,135,710 $2,139,392 $4,305,752 $4,304,799 
Cash collected on sold receivables$2,135,626 $2,139,393 $4,305,670 $4,304,804 
Continuous cash activity related to the A/R Sales Agreement is reflected in net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. The SPE incurs fees due to the unaffiliated financial institutions related to the accounts receivable sales transactions. Those fees, which totaled $31 million and $29 million for the six months ended June 30, 2024 and 2023, respectively, are recorded within other non-operating (income) expense in the Condensed Consolidated Statements of Income. The SPE has a recourse obligation to repurchase from the unaffiliated financial institutions any previously sold receivables that are not collected due to the occurrence of certain events, including credit quality deterioration and customer sales returns. The reserve recognized for this recourse obligation as of June 30, 2024 and December 31, 2023 is not material. The servicing liability related to our collection services also is not material, given the high quality of the customers underlying the receivables and the anticipated short collection period.
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4. Employee Benefit Plans
Net periodic benefit income from our pension plans included the following components for our pension benefits:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Service cost$1,711 $1,503 $3,438 $2,997 
Interest cost25,324 26,136 50,689 52,253 
Expected return on plan assets(44,339)(41,263)(88,743)(82,503)
Amortization of prior service cost281 173 562 346 
Amortization of actuarial loss3,567 2,340 7,134 4,681 
Net periodic benefit income$(13,456)$(11,111)$(26,920)$(22,226)
Service cost is recorded in selling, administrative and other expenses in the Condensed Consolidated Statements of Income while all other components are recorded within other non-operating (income) expense. Pension benefits also include amounts related to supplemental retirement plans.
5. Acquisitions
We acquired several businesses for approximately $651 million, which includes certain non-cash consideration, and $116 million, net of cash acquired, during the six months ended June 30, 2024 and June 30, 2023, respectively. We recognized approximately $100 million and $5 million of revenue related to our current year Automotive and Industrial acquisitions, respectively. We recorded approximately $283 million of goodwill and other intangible assets associated with these acquisitions. Other intangible assets acquired of $120 million consisted of customer relationships with weighted average amortization lives of 19 years. For each acquisition, we allocate the purchase price to the assets acquired and the liabilities assumed based on their fair values as of the respective acquisition date. The fair values of the assets acquired and liabilities assumed are preliminary. Additional adjustments, particularly to inventory and intangible assets, may be made to the acquisition accounting during the measurement period, which may be up to one year from the respective acquisition date. The results of operations for acquired businesses are included in our Condensed Consolidated Statements of Income beginning on their respective acquisition dates.

These acquisitions included MPEC, the largest independent owner of NAPA Auto Part stores in the U.S., which we acquired on April 30, 2024. We recognized approximately $100 million of goodwill and other intangible assets associated with MPEC. Approximate values of other assets acquired and liabilities assumed included inventory of $200 million, operating lease assets of $200 million and operating lease liabilities of $200 million.
6. Accumulated Other Comprehensive Loss
The following tables present the changes in AOCL by component for the six months ended June 30:
 Changes in Accumulated Other
Comprehensive Loss by Component
(in thousands)Pension and Other Post-Retirement BenefitsCash Flow HedgesForeign Currency TranslationTotal
Beginning balance, January 1, 2024$(517,941)$ $(458,931)$(976,872)
Other comprehensive income (loss) before reclassifications  (64,642)(64,642)
Amounts reclassified from accumulated other comprehensive loss5,775   5,775 
Other comprehensive income (loss), net of income taxes5,775  (64,642)(58,867)
Ending balance, June 30, 2024$(512,166)$ $(523,573)$(1,035,739)
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 Changes in Accumulated Other
Comprehensive Loss by Component
(in thousands)Pension and Other Post-Retirement BenefitsCash Flow HedgesForeign Currency TranslationTotal
Beginning balance, January 1, 2023$(506,610)$(2,572)$(523,360)$(1,032,542)
Other comprehensive income (loss) before reclassifications 2,765 14,287 17,052 
Amounts reclassified from accumulated other comprehensive loss3,826 (193) 3,633 
Other comprehensive income (loss), net of income taxes3,826 2,572 14,287 20,685 
Ending balance, June 30, 2023$(502,784)$ $(509,073)$(1,011,857)
The AOCL components related to the pension benefits are included in the computation of net periodic benefit income in the Employee Benefit Plans Footnote. Generally, tax effects in AOCL are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCL reclassifications are recognized.
7. Commitments and Contingencies
Legal Matters
We are subject to various legal proceedings, many involving routine litigation incidental to the businesses, including approximately 2,516 pending product liability lawsuits resulting from our national distribution of automotive parts and supplies. Many of these involve claims of personal injury allegedly resulting from the use of automotive parts we distributed. The amount accrued for pending and future claims was $225 million as of June 30, 2024, which represents our best estimate of the liability within our calculated range of $180 million to $255 million, discounted using a discount rate of 4.36%. The amount accrued for pending and future claims was $244 million as of December 31, 2023, which represents our best estimate of the liability within our calculated range of $196 million to $277 million, discounted using a discount rate of 3.88%. Our undiscounted product liability was $285 million and $308 million as of June 30, 2024 and December 31, 2023, respectively. There have been no significant developments to the information presented in our 2023 Annual Report on Form 10-K with respect to litigation or commitments and contingencies.
Environmental Liabilities
Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that we reasonably believe will exceed an applied threshold not to exceed $1 million. Applying this threshold, there are no environmental matters to disclose for this period.
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8. Restructuring and other costs
In February 2024, we approved and initiated a global restructuring designed to better align our assets and further improve the efficiency of the business. This initiative includes an announced voluntary retirement offer in the U.S., along with a rationalization and optimization of certain distribution centers, stores and other facilities.
For the three and six months ended June 30, 2024, we incurred $37 million and $120 million, respectively, in costs related to our global restructuring initiative. We expect to incur total costs up to $200 million related to the global restructuring efforts in 2024 and to substantially complete the initiative by the end of 2025. We may incur additional charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of these initiatives. The global restructuring was approved and funded by our corporate office and therefore these costs are not allocated to our segments.
For the three months ended June 30, 2024, costs of $37 million include severance and other employee costs of $4 million, other restructuring costs of $26 million, and restructuring inventory liquidation costs of $7 million, which are reflected in cost of goods sold.
The table below summarizes the activity related to these costs for the six months ended June 30, 2024.
(in thousands)Severance and other employee costs
Other restructuring costs (1)
Total (1)
Liability as of January 1, 2024$ $ $ 
Restructuring and other costs 65,954 46,848 112,802 
Cash payments(41,277)(32,872)(74,149)
Non-cash charges3,094 (12,844)(9,750)
Translation(90)2 (88)
Liability as of June 30, 2024
$27,681 $1,134 $28,815 
(1) Amount reflects moving expenses, accelerated rent, professional fees, facility closure costs and asset impairment costs that are attributable to our restructuring. Amount excludes a $7 million noncash charge reflected in cost of goods sold for inventory liquidated rather than moved during facility consolidation in connection with the restructuring.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and accompanying notes contained herein and with the audited Consolidated Financial Statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of results for the year ended December 31, 2024.
Forward-Looking Statements
Some statements in this report, as well as in other materials we file with the Securities and Exchange Commission (“SEC”), release to the public, or make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,” “should,” “position,” “will,” “project,” “intend,” “plan,” “on track,” “anticipate,” “to come,” “may,” “possible,” “assume,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include our view of business and economic trends for the remainder of the year and our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.
We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation, financial institution disruptions and geopolitical conflicts such as the conflict between Russia and Ukraine, the conflict in the Gaza strip and other unrest in the Middle East; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies, including the effects on the financial health of our business partners and customers, on supply chains and our suppliers, on vehicle miles driven as well as other metrics that affect our business, and on access to capital and liquidity provided by the financial and capital markets; our ability to maintain compliance with our debt covenants; our ability to successfully integrate acquired businesses into our operations and to realize the anticipated synergies and benefits; our ability to successfully implement our business initiatives in our two business segments; slowing demand for our products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to import tariffs, environmental and social policy, infrastructure programs and privacy legislation, and their impact to us, our suppliers and customers; changes in tax policies; volatile exchange rates; our ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting, including as a result of the work from home environment; the uncertainties and costs of litigation; disruptions caused by a failure or breach of our information systems, as well as other risks and uncertainties discussed in our 2023 Annual Report on Form 10-K and from time to time in our subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and we undertake no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.
Overview
Genuine Parts Company is a service organization engaged in the global distribution of automotive and industrial replacement parts. We have a long tradition of growth dating back to 1928, the year we were founded in Atlanta, Georgia. We conduct business in North America, Europe and Australasia from a network of more than 10,700 locations.
Our Automotive Parts Group ("Automotive") operates in the U.S., Canada, Mexico, France, the U.K., Ireland, Germany, Poland, the Netherlands, Belgium, Spain, Portugal, Australia and New Zealand, and accounted for approximately 62% of total revenues for the six months ended June 30, 2024. Our Industrial Parts Group ("Industrial") operates in the U.S., Canada, Mexico, Australia, New Zealand, Indonesia and Singapore, and accounted for approximately 38% of our total revenues for the six months ended June 30, 2024.
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Key Performance Indicators
We consider a variety of performance and financial measures in assessing our business, and the key performance indicators used to measure our results are Comparable Sales, Gross Profit and Gross Margin, Selling, Administrative and Other Expenses ("SG&A"), Segment Profit and Segment Margin, and Net Income and EBITDA along with their adjusted measures. For more information regarding our key performance indicators please reference the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023.
Results of Operations
Our second quarter year-over-year net sales growth of 0.8% was driven by growth in Automotive, partially offset by a modest decline at Industrial. The macroeconomic environment remained challenging, with lagging industrial production driving soft demand and difficult trading conditions in Industrial. Performance in our U.S. and European automotive businesses also reflected moderating demand and a softer pricing environment from lower inflation. Despite this, Automotive sales continued to benefit from the prior year European acquisitions and current quarter acquisitions in the U.S. On April 30, we completed the acquisition of MPEC, our largest independent owner of NAPA Auto Parts stores in the U.S., operating 181 locations.
Second quarter gross margin improved 50 basis points year-over-year, however net income declined $49 million primarily due to restructuring costs, investments in technology, and increased personnel costs resulting from acquisitions and inflation.
Our results of operations are summarized below for the three and six months ending June 30, 2024 and 2023.

 Three Months Ended June 30,
20242023
(in thousands)$% of Sales$% of Sales$ Change% Change
Net sales$5,962,567 100.0 %$5,915,006 100.0 %$47,561 0.8 %
Cost of goods sold3,782,264 63.4 %3,780,263 63.9 %2,001 0.1 %
Gross profit2,180,303 36.6 %2,134,743 36.1 %45,560 2.1 %
Operating expense:
Selling, administrative and other expenses1,647,456 27.6 %1,581,653 26.7 %65,803 4.2 %
Depreciation and amortization99,202 1.7 %90,873 1.5 %8,329 9.2 %
Provision for doubtful accounts5,678 0.1 %8,322 0.1 %(2,644)(31.8)%
Restructuring and other costs 29,760 0.5 %— — %29,760 — %
Total operating expense1,782,096 29.9 %1,680,848 28.4 %101,248 6.0 %
Non-operating (income) expense:
Interest expense, net21,921 0.4 %16,455 0.3 %5,466 33.2 %
Other(9,915)(0.2)%(16,649)(0.3)%6,734 (40.4)%
Total non-operating (income) expense12,006 0.2 %(194)— %12,200 (6288.7)%
Income before income taxes386,201 6.5 %454,089 7.7 %(67,888)(15.0)%
Income taxes90,657 1.5 %109,595 1.9 %(18,938)(17.3)%
Net income$295,544 5.0 %$344,494 5.8 %$(48,950)(14.2)%

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Three Months Ended June 30,
(in thousands, except per share data)20242023$ Change% Change
Diluted EPS$2.11$2.44$(0.33)(13.5)%
Adjusted diluted EPS$2.44$2.44$— — %
Total adjusted EBITDA$569,349$561,417$7,932 1.4 %
Automotive segment profit$313,975$329,347$(15,372)(4.7)%
Industrial segment profit$276,841$283,372$(6,531)(2.3)%
Total segment profit$590,816$612,719$(21,903)(3.6)%
Automotive segment margin8.4 %9.0 %
Industrial segment margin12.4 %12.5 %
Total segment margin9.9 %10.4 %

 Six Months Ended June 30,
20242023
(in thousands)$% of Sales$% of Sales$ Change% Change
Net sales$11,746,198 100.0 %$11,680,124 100.0 %$66,074 0.6 %
Cost of goods sold7,491,240 63.8 %7,531,980 64.5 %(40,740)(0.5)%
Gross profit4,254,958 36.2 %4,148,144 35.5 %106,814 2.6 %
Operating expense:
Selling, administrative and other expenses3,222,383 27.4 %3,092,897 26.5 %129,486 4.2 %
Depreciation and amortization189,812 1.6 %178,088 1.5 %11,724 6.6 %
Provision for doubtful accounts11,889 0.1 %13,961 0.1 %(2,072)(14.8)%
Restructuring and other costs 112,802 1.0 %— — %112,802 — %
Total operating expense3,536,886 30.1 %3,284,946 28.1 %251,940 7.7 %
Non-operating (income) expense:
Interest expense, net39,611 0.3 %33,319 0.3 %6,292 18.9 %
Other(32,921)(0.3)%(28,616)(0.2)%(4,305)15.0 %
Total non-operating (income) expense6,690 0.1 %4,703 — %1,987 42.2 %
Income before income taxes711,382 6.1 %858,495 7.4 %(147,113)(17.1)%
Income taxes166,944 1.4 %210,044 1.8 %(43,100)(20.5)%
Net income$544,438 4.6 %$648,451 5.6 %$(104,013)(16.0)%

Six Months Ended June 30,
(in thousands, except per share data)20242023$ Change% Change
Diluted EPS$3.89$4.58$(0.69)(15.1)%
Adjusted diluted EPS$4.66$4.58$0.08 1.7 %
Total adjusted EBITDA$1,085,872$1,069,902$15,970 1.5 %
Automotive segment profit$586,911$593,767$(6,856)(1.2)%
Industrial segment profit$547,680$545,359$2,321 0.4 %
Total segment profit$1,134,591$1,139,126$(4,535)(0.4)%
Automotive segment margin8.0 %8.3 %
Industrial segment margin12.3 %12.1 %
Total segment margin9.7 %9.8 %
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Net Sales
For the three months ended June 30, 2024 our net sales increased slightly compared to 2023. We experienced a 2.2% benefit from acquisitions, partially offset by a 0.9% decrease in comparable sales and a net unfavorable impact of foreign currency and other of 0.5%.
For the six months ended June 30, 2024 our net sales increased slightly compared to 2023. We experienced a 2.1% benefit from acquisitions, partially offset by a 0.9% decrease in comparable sales and a net unfavorable impact of foreign currency and other of 0.6%.
The decrease in comparable sales is primarily driven by a sales decline in our industrial business due to the impact of weaker macro-economic conditions on our customers in 2024 as discussed below.
Automotive
Automotive sales for the three months ended June 30, 2024 were $3.7 billion, an increase of 2.0% from 2023. The increase consisted of a 3.1% benefit from acquisitions which was primarily driven by our European acquisitions and the MPEC acquisition, partially offset by a 0.6% decrease in comparable sales and a 0.5% unfavorable impact of foreign currency and other. The slight decrease in comparable sales reflects softened demand in our U.S. and European businesses and the negative impact of moderating inflation.
Automotive sales for the six months ended June 30, 2024 were $7.3 billion, an increase of 2.0% from 2023. The increase consisted of a 3.0% benefit from acquisitions, partially offset by a 0.2% decrease in comparable sales and a 0.8% unfavorable impact of foreign currency and other.
Industrial
Net sales for the three months ended June 30, 2024 were $2.2 billion, a decrease of 1.1% compared to 2023. The decrease reflects a 1.6% decrease in comparable sales and a 0.2% unfavorable impact of foreign currency, slightly offset by a 0.7% benefit from acquisitions.
Net sales for six months ended June 30, 2024 were $4.4 billion, a decrease of 1.6% compared to 2023. The decrease reflects a 2.1% decrease in comparable sales and a 0.1% unfavorable impact of foreign currency, slightly offset by a 0.6% benefit from acquisitions.
The decrease in comparable sales reflects moderation in demand in certain customer sectors and continued softness in industrial production. We continue to experience an adverse macro-economic environment when compared to 2023, which caused slowing global industrial demand.
Gross Profit and Gross Margin
Gross profit for the three months ended June 30, 2024 increased $46 million, or 2.1%, compared to last year, and gross margin increased 50 basis points to 36.6% compared to the same period of the previous year. Gross profit for the six months ended June 30, 2024 increased $107 million, or 2.6% compared to the same period in the prior year. Gross margin increased 70 basis points to 36.2% compared to that same period of the previous year.
These increases reflect the positive contributions of our strategic category management and sourcing initiatives. We continue to invest in enhancing technology to generate better pricing data and analytics, which allows us to shift pricing dynamics across each market we serve.
Operating Expenses
SG&A expenses represent 27.6% and 27.4% of sales for the three and six months ended June 30, 2024, respectively, compared to 26.7% and 26.5% in the prior year. We experienced increased personnel and rent costs primarily related to acquisitions, annual merit wage increases and inflation.
In addition, we incurred $37 million of costs related to the global restructuring initiative and $25 million primarily related to the acquisition and integration of MPEC, which closed on April 30, 2024. Refer to the Restructuring Footnote in the Notes to Condensed Consolidated Financial Statements for more information on our global restructuring initiative.
Segment Profit
Automotive
For the three months ended June 30, 2024, Automotive segment profit decreased 4.7% compared to the same period in 2023, and Automotive segment profit margin decreased to 8.4% compared to 9.0% in the same
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period last year. For six months ended June 30, 2024, Automotive segment profit decreased 1.2% compared to the same period in 2023, and Automotive segment profit margin decreased to 8.0% compared to 8.3% for the same period last year. These decreases are primarily due to increased freight costs as well as personnel costs resulting from acquisitions and inflation.
Industrial
For the three months ended June 30, 2024, Industrial segment profit decreased 2.3% compared to the same period in 2023 and Industrial segment profit margin was 12.4%, down 10 basis points from the prior year. For the six months ended June 30, 2024, Industrial segment profit increased 0.4% compared to the same period last year and Industrial segment profit margin increased to 12.3% compared to 12.1% in the same period in the previous year. The decrease in segment profit for the three months ended June 30, 2024 resulted from deleveraging expenses driven by lower sales. The improvements in the six months ended June 30, 2024 occurred, despite a year-over-year sales decline of 1.6%, primarily due to expense management and ongoing execution of our supply chain initiatives and strategic category management.
Income Taxes
Our effective income tax rate for the three and six month periods ended June 30, 2024 was 23.5% compared to 24.1% and 24.5% for the same periods in 2023, respectively. The rate decrease is primarily due to expanded investment benefits and earnings mix shift across our global businesses.
Net Income
For the three months ended June 30, 2024, net income was $296 million, a decrease of 14.2% compared to net income of $344 million for the same three month period of the prior year. On a per share diluted basis, net income was $2.11, a decrease of 13.5% compared to $2.44 in 2023. These decreases are primarily due to $37 million of costs related to the global restructuring initiative and $25 million primarily related to the acquisition of MPEC. Adjusted net income for the three months ended June 30, 2024 was $342 million, a decrease of 0.9% compared to net income of $344 million for the same period of 2023. On a per share diluted basis, adjusted net income was $2.44, remaining flat compared to diluted earnings per share of $2.44 last year. Second quarter 2024 adjusted EBITDA was $569 million, an increase of 1.4% from $561 million in 2023.
For the six months ended June 30, 2024, net income was $544 million, a decrease of 16.0% compared to net income of $648 million for the same three month period of the prior year. On a per share diluted basis, net income was $3.89, a decrease of 15.1% compared to $4.58 in 2023. These decreases are primarily due to $120 million of costs related to the global restructuring initiative and $25 million primarily related to the acquisition of MPEC. Adjusted net income for the six months ended June 30, 2024 was $652 million an increase of 0.6% compared to net income of $648 million in 2023. On a per share diluted basis, adjusted net income was $4.66, an increase of 1.7% compared to diluted earnings per share of $4.58 last year. Second quarter 2024 adjusted EBITDA was $1.09 billion, an increase of 1.5% from EBITDA of $1.07 billion from 2023.
The increases in these adjusted measures reflect the positive effects of executing our strategic category management and other initiatives, as discussed more fully in the commentary above.
Non-GAAP Financial Measures
Adjusted net income, adjusted diluted EPS, adjusted EBITDA, total segment profit, total segment margin, and adjusted EBITDA for each segment are non-GAAP measures (see table below for reconciliations to the most directly comparable GAAP measures).
The following tables set forth reconciliations of net income and diluted EPS to adjusted net income and adjusted diluted EPS, respectively, to account for the impact of adjustments. We also include reconciliations from net income to adjusted EBITDA, net income to total segment profit and total segment margin and segment profit to segment EBITDA and adjusted EBITDA for each segment. We believe that the presentation of adjusted net income, adjusted diluted EPS, total segment profit and adjusted EBITDA, which are not calculated in accordance with GAAP, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to both management and investors that is indicative of our core operations. We consider these metrics useful to investors because they provide greater transparency into management’s view and assessment of our ongoing operating performance by removing items management believes are not representative of our operations and may distort our longer-term operating trends. In the case of adjusted EBITDA by segment, we believe this additional metric is useful to investors as it provides further insight into the performance of our segments. We believe the non-GAAP metrics included herein also enhance the comparability of our results from period to period and with our competitors, as well as to show ongoing results from operations distinct from items that are infrequent or not associated with our core operations. For example, for the
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three and six months ended June 30, 2024, adjusted net income, adjusted EBITDA and adjusted diluted earnings per share exclude costs relating to our global restructuring initiative and acquisition of Motor Parts and Equipment Corporation. We do not, nor do we suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
GAAP net income$295,544 $344,494 $544,438 $648,451 
Adjustments:
Restructuring and other costs (1)37,247 — 120,289 — 
Acquisition and integration related costs and other (2)24,778 — 24,778 — 
Total adjustments62,025 — 145,067 — 
Tax impact of adjustments (3)(16,008)— (37,046)— 
Adjusted net income$341,561 $344,494 $652,459 $648,451 
The table below represents amounts per common share assuming dilution:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per share data)2024202320242023
GAAP diluted earnings per share$2.11 $2.44 $3.89 $4.58 
Adjustments:
Restructuring and other costs (1)0.27 — 0.86 — 
Acquisition and integration related costs and other (2)0.17 — 0.17 — 
Total adjustments0.44 — 1.03 — 
Tax impact of adjustments (3)(0.11)— (0.26)— 
Adjusted diluted earnings per share$2.44 $2.44 $4.66 $4.58 
Weighted average common shares outstanding – assuming dilution139,829 141,247 139,961 141,496 
(1)    Amount reflects costs related to the global restructuring initiative which includes a voluntary retirement offer in the U.S., inventory liquidation costs, and rationalization and optimization of certain distribution centers, stores and other facilities.
(2)    Amount primarily reflects integration costs related to the completion of the acquisition of MPEC in April 2024, including professional services costs, personnel costs, and lease and other exit costs.
(3)    We determine the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments, including any related valuation allowances. For the three and six months ended June 30, 2024, we applied the statutory income tax rates to the taxable portion of all of our adjustments, which resulted in a tax impact of $16 million and $37 million.
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The table below represents a reconciliation from GAAP net income to adjusted EBITDA:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
GAAP net income$295,544 $344,494 $544,438 $648,451 
Depreciation and amortization99,202 90,873 189,812 178,088 
Interest expense, net21,921 16,455 39,611 33,319 
Income taxes90,657 109,595 166,944 210,044 
EBITDA507,324 561,417 940,805 1,069,902 
Total adjustments (1)62,025 — 145,067 — 
Adjusted EBITDA$569,349 $561,417 $1,085,872 $1,069,902 
(1)    Amounts are the same as adjustments included within the adjusted net income table above.
The table below clarifies where the adjusted items are presented in the Condensed Consolidated Statements of Income:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Line item:
Cost of goods sold$7,487 $— $7,487