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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
On April 29, 2024, our Board of Directors approved the termination of our U.S. qualified defined benefit plan (U.S. pension plan), effective September 30, 2024. On December 19, 2025, we settled all future obligations under our U.S. pension plan through the transfer of the remaining benefit obligations to a third-party insurance company under a group annuity contract. Prior to this settlement, in October 2025, certain participants elected to receive lump-sum payments to settle their pension obligations. These settlements were funded directly by assets of the U.S. pension plan and required no additional cash or asset contributions from GPC. As a result of the settlements, we recognized a one-time, non-cash, pre-tax pension settlement charge of $742 million ($541 million, net of tax). This charge primarily reflects the recognition of all unamortized net actuarial losses in accumulated other comprehensive loss. As a result of the pension settlement, GPC had no pension obligations related to this plan as of December 31, 2025.
The remaining surplus plan assets following the U.S. pension plan settlement will be used to fund certain contributions associated with our U.S. defined contribution plan (Qualified Replacement Plan) as well as any remaining U.S. pension plan expenses. Surplus plan assets not used for these contributions or expenses would be subject to an excise tax up to 50% upon withdrawal from the plan. As of December 19, 2025, our $446 million of surplus plan assets consisted of $13 million of cash, $243 million in a short-term bond fund and $190 million of GPC stock. Upon settlement of the U.S. pension plan, the short-term bond fund consisting of short-term corporate bonds, commercial paper, and asset-backed securities are classified as a noncurrent available-for-sale (“AFS”) investment within other assets in our consolidated balance sheet. We accounted for the GPC stock as a repurchase of our common stock with such amounts recorded as a reduction in common stock and retained earnings in our consolidated balance sheet. The recognition of the surplus plan assets in our balance sheet was a non-cash activity in the statement of cash flows.
The AFS debt security is measured at fair value, with unrealized gains and losses recognized in accumulated other comprehensive loss (“AOCL”), net of tax. As of December 31, 2025, the amortized cost and fair value of the AFS debt security were $244 million and $243 million, respectively. Unrealized losses of $0.8 million were determined to be non-credit related and were primarily attributable to changes in market interest rates.
Our other defined benefit pension plans cover employees in Canada and Europe who meet eligibility requirements. 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 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 non-U.S. plans are set by using Willis Towers Watson's RATE:Link model. 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, 2025 and 2024 were:
(in thousands)20252024
Changes in benefit obligation
Benefit obligation at beginning of year$1,981,552 $1,981,783 
Service cost6,271 6,842 
Interest cost91,630 101,289 
Plan participants’ contributions1,407 1,547 
Actuarial loss 27,416 51,940 
Foreign currency exchange rate changes12,374 (19,128)
Gross benefits paid(137,433)(142,721)
Curtailments(1,272)— 
Settlement of U.S. pension plan(1,519,426)— 
Other(8,800)— 
Benefit obligation at end of year$453,719 $1,981,552 
Following the pension settlement there are $213 million in U.S. pension obligations as of December 31, 2025. The benefit obligations for our U.S. pension plan included in the above was $1.7 billion at December 31, 2024. The total accumulated benefit obligation for our defined benefit pension plan in the U.S., Canada, and Europe was approximately $441 million and $2.0 billion at December 31, 2025 and 2024, respectively.
The assumptions used to measure the pension benefit obligations for the plans at December 31, 2025 and 2024, were:
20252024
Weighted average discount rate5.20 %5.15 %
Rate of increase in future compensation levels2.71 %2.85 %
Changes in plan assets for the years ended December 31, 2025 and 2024 were:
(in thousands)20252024
Changes in plan assets
Fair value of plan assets at beginning of year$2,223,879 $2,233,079 
Actual return on plan assets120,978 137,603 
Foreign currency exchange rate changes12,519 (20,733)
Employer contributions2,375 15,104 
Plan participants’ contributions1,407 1,547 
Benefits paid(122,795)(142,721)
Settlements of U.S. pension plan(1,519,426)— 
Other(442,663)— 
Fair value of plan assets at end of year$276,274 $2,223,879 
The fair values of plan assets for our U.S. pension plan included in the above was $2.0 billion at December 31, 2024.
For the years ended December 31, 2025 and 2024, 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)20252024
Aggregate projected benefit obligation$228,271 $229,602 
Aggregate fair value of plan assets$— $— 
For the years ended December 31, 2025 and 2024, 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)20252024
Aggregate accumulated benefit obligation$219,900 $219,165 
Aggregate fair value of plan assets$— $— 
The asset allocations for our funded pension plans at December 31, 2025 and 2024, and the target allocation for 2026, by asset category were:
 Target AllocationPercentage of Plan Assets at December 31
 202620252024
Asset Category
Equity securities40 %48 %13 %
Debt securities50 %52 %30 %
Other10 %— %57 %
100 %100 %100 %
Our benefit plan committee in Canada establishes investment policies and strategies and regularly monitor the performance of the funds.
The Canadian pension plan strategy is to achieve long-term objectives and invest the pension assets in accordance with the applicable pension legislation in Canada as well as fiduciary standards. The long-term primary investment objectives for the Canadian pension plan is 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. The Company's Investment Strategy with respect to Canadian pension plan assets is to generate a return in excess of the passive portfolio benchmark (40% Equity, 50% Fixed Income, 10% Other).
The plans in Europe are unfunded and, therefore, there are no plan assets.
The fair values of the plan assets as of December 31, 2025 and 2024, 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.
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. The guaranteed annuity contract was valued based on the transaction price adjusted for changes in interest rates and actual benefit payments.
 2025
(in thousands)TotalQuoted 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$55,543 $55,543 $— $— 
Other stocks76,937 76,937 — — 
Debt Securities
Short-term investments374 374 — — 
Cash and equivalents18,878 18,878 — — 
Government bonds52,362 416 51,946 — 
Corporate bonds72,179 — 72,179 — 
Total$276,274 $152,149 $124,126 $— 
 2024
(in thousands)TotalQuoted 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$54,256 $54,256 $— $— 
Genuine Parts Company common stock176,640 176,640 — — 
Other stocks72,749 72,749 — — 
Debt Securities
Short-term investments1,422 1,422 — — 
Cash and equivalents12,365 12,365 — — 
Government bonds52,381 329 52,052 — 
Corporate bonds66,321 — 66,321 — 
Mutual funds-fixed income201,247 201,247 — — 
Short term collective trust345,064 — 345,064 — 
Other
Options and futures1,241,434 — — 1,241,434 
Total$2,223,879 $519,008 $463,437 $1,241,434 
Equity securities included no Genuine Parts Company common stock at December 31, 2025 and $177 million at December 31, 2024. Dividend payments received by the plan on company stock totaled approximately $6 million in both 2025 and 2024. 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 Canadian pension plan, 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 2026 pension income is 6.01% for the Canadian plan. 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)20252024
Other long-term asset$50,827 $471,929 
Other current liability(16,010)(14,402)
Pension and other post-retirement liabilities(219,270)(218,629)
$(184,453)$238,898 
Amounts recognized in accumulated other comprehensive loss consist of:
(in thousands)20252024
Net actuarial loss$36,776 $772,785 
Prior service cost 2,308 7,919 
$39,084 $780,704 
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 2026, approximately $16 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:
2026 (expected)$583 
Expected benefit payments:
2026$28,756 
2027$29,418 
2028$30,253 
2029$30,903 
2030$31,557 
2031 through 2035$160,813 
Net periodic benefit expense (income) included the following components:
(in thousands)202520242023
Service cost$6,271 $6,842 $5,991 
Interest cost91,630 101,289 104,490 
Expected return on plan assets(116,746)(177,474)(164,984)
Amortization of prior service cost1,140 1,127 692 
Amortization of actuarial loss18,478 14,281 9,361 
Net periodic benefit expense (income)$773 $(53,935)$(44,450)
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. 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)202520242023
Current year actuarial loss $18,162 $101,991 $23,289 
Recognition of actuarial loss(18,478)(14,281)(9,361)
Recognition of prior service cost(1,140)(1,127)(692)
Recognition of curtailment gain1,270 — — 
Settlement of U.S. pension plan(741,967)— — 
Other— — 2,464 
Total recognized in other comprehensive income loss$(742,153)$86,583 $15,700 
Total recognized in net periodic benefit expense (income) and other comprehensive loss (income)$(741,380)$32,648 $(28,750)
The assumptions used in measuring the net periodic benefit expense (income) for the plans follow:
202520242023
Weighted average discount rate5.15 %5.30 %5.61 %
Rate of increase in future compensation levels2.85 %3.18 %3.16 %
Expected long-term rate of return on plan assets5.33 %7.60 %7.09 %
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 $80 million in 2025, $75 million in 2024, and $77 million in 2023.