Segment Information (Tables)

12 Months Ended

Dec. 31, 2024

Automotive Segment

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


(in thousands)	2024			2023			2022
Net sales	$	14,769,133		$	14,246,783		$	13,666,634
Cost of goods sold	8,831,702			8,584,065			8,299,239
Gross profit	5,937,431			5,662,718			5,367,395
Operating expenses	4,653,900			4,323,584			3,993,194
EBITDA	$	1,283,531		$	1,339,134		$	1,374,201

Gross margin (1)	40.2		%	39.7		%	39.3		%
Operating expenses as a percentage of net sales	31.5		%	30.3		%	29.2		%
EBITDA margin (2)	8.7		%	9.4		%	10.1		%

Industrial Segment

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


(in thousands)	2024			2023			2022
Net sales	$	8,717,436		$	8,843,827		$	8,429,339
Cost of goods sold	6,062,301			6,210,043			6,041,655
Gross profit	2,655,135			2,633,784			2,387,684
Operating expenses	1,552,947			1,500,863			1,449,030
EBITDA	$	1,102,188		$	1,132,921		$	938,654

Gross margin (1)	30.5		%	29.8		%	28.3		%
Operating expenses as a percentage of net sales	17.8		%	17.0		%	17.2		%
EBITDA margin (2)	12.6		%	12.8		%	11.1		%

(1)Gross margin is gross profit as a percentage of net sales.

(2)EBITDA margin is EBITDA as a percentage of net sales.

Additional Information

The following table presents a reconciliation from EBITDA to net income:


(in thousands)	2024		2023		2022
Segment EBITDA
Automotive	$	1,283,531	$	1,339,134	$	1,374,201
Industrial	1,102,188		1,132,921		938,654
Corporate EBITDA (1)	(389,217)		(314,709)		(313,526)
Interest expense, net	(96,827)		(64,469)		(73,887)
Depreciation and amortization	(407,978)		(350,529)		(347,819)
Other unallocated costs	(315,729)		—		(5,021)
Income before income taxes	1,175,968		1,742,348		1,572,602
Income taxes	271,892		425,824		389,901
Net Income	$	904,076	$	1,316,524	$	1,182,701

(1)Corporate EBITDA consists of costs related to our corporate headquarter’s broad support to our business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology,

cybersecurity, legal, corporate finance, internal audit, and risk management, as well as asbestos-related product liability costs and A/R Sales Agreement fees.

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


(in thousands)	2024		2023		2022
Other unallocated costs:
Gain on sales of real estate (2)	$	—	$	—	$	102,803
Gain on insurance proceeds (3)	—		—		1,507
Product liability adjustment (4)	—		—		(28,730)
Restructuring and other costs (5)	(221,007)		—		—
Acquisition and integration related costs and other (6)	(33,126)		—		—
Inventory rebranding strategic initiative (7)	(61,596)		—		—
Transaction and other costs (8)	—		—		(80,601)
Total other unallocated costs	$	(315,729)	$	—	$	(5,021)

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

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

(4)Adjustment to remeasure product liability for a revised estimate of the number of claims to be incurred in future periods, among other assumptions.

(5)Amount reflects costs related to our 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. The inventory liquidation costs, recognized in cost of goods sold, total $7 million and arise from facility closures. Refer to the Restructuring and Other Costs footnote in our Notes to Consolidated Financial Statements for more information.

(6)Amount primarily reflects ongoing acquisition and integration costs related to the acquisitions of MPEC in April 2024 and Walker in July 2024, including professional services costs, personnel costs, and lease and other exit costs. Refer to the Acquisitions footnote in our Notes to Consolidated Financial Statements for more information.

(7)Adjustment reflects a charge to write down certain existing inventory associated with a new global rebranding and relaunch of a key tool and equipment offering. The existing inventory that will be liquidated is comprised of otherwise saleable inventory, and the liquidation does not arise from our normal, recurring operational activities.

(8)Amount for 2022 primarily includes costs of $67 million associated with the January 3, 2022 acquisition and integration of Kaman Distribution Group ("KDG") which includes a $17 million impairment charge. The impairment charge was 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. Separately, this adjustment includes an $11 million loss related to an investment.

The following table presents a summary of our reportable segment total assets:


(in thousands)	2024		2023
Assets:
Automotive	$	10,843,729	$	9,845,644
Industrial	2,765,504		2,535,404
Corporate	977,171		1,059,812
Goodwill and other intangible assets	4,696,301		4,527,594
Total assets	$	19,282,705	$	17,968,454

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


(in thousands)	2024		2023		2022
Depreciation and amortization:
Automotive	$	206,536	$	163,517	$	146,819
Industrial	34,818		30,082		29,670
Corporate	23,630		9,752		13,893
Intangible asset amortization	142,994		147,178		157,437
Total depreciation and amortization	$	407,978	$	350,529	$	347,819
Capital expenditures:
Automotive	$	311,704	$	279,943	$	235,182
Industrial	76,730		53,823		33,165
Corporate	178,905		178,909		71,285
Total capital expenditures	$	567,339	$	512,675	$	339,632
Net sales:
United States	$	15,318,989	$	15,247,740	$	14,965,462
Europe	3,839,134		3,611,453		3,071,964
Canada	1,982,719		2,011,343		1,960,227
Australasia	2,258,729		2,149,376		2,044,432
Mexico	86,998		70,698		53,888
Total net sales	$	23,486,569	$	23,090,610	$	22,095,973
Net property, plant and equipment:
United States	$	1,161,136	$	935,583	$	790,121
Europe	384,161		339,330		200,898
Canada	189,978		147,404		113,574
Australasia	214,677		193,638		220,839
Mexico	808		830		582
Total net property, plant and equipment	$	1,950,760	$	1,616,785	$	1,326,014

Schedule of Revenue from External Customers by Geographic Areas

The following table presents disaggregated geographical net sales from contracts with customers by reportable segment:


(in thousands)	2024		2023		2022
North America:
Automotive	$	9,212,238	$	9,010,337	$	9,015,501
Industrial	8,176,468		8,319,444		7,964,076
Total North America	$	17,388,706	$	17,329,781	$	16,979,577
Australasia:
Automotive	$	1,717,761	$	1,624,993	$	1,579,169
Industrial	540,968		524,383		465,263
Total Australasia	$	2,258,729	$	2,149,376	$	2,044,432
Europe - Automotive	$	3,839,134	$	3,611,453	$	3,071,964
Total net sales	$	23,486,569	$	23,090,610	$	22,095,973