GENUINE PARTS COGPC
GENUINE PARTS CO Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill during the years ended December 31, 2025 and 2024 by reportable segment, as well as other identifiable intangible assets, are summarized as follows:
| Goodwill | ||||||||||||||||||||||||||||||||
| (in thousands) | North America Automotive | International Automotive | Industrial | Total | Other Intangible Assets, Net | |||||||||||||||||||||||||||
| Balance as of January 1, 2024 | $ | 363,159 | $ | 1,354,274 | $ | 1,017,248 | $ | 2,734,681 | $ | 1,792,913 | ||||||||||||||||||||||
| Additions | 98,638 | 152,726 | 32,775 | 284,139 | 218,286 | |||||||||||||||||||||||||||
| Amortization | — | — | — | — | (142,994) | |||||||||||||||||||||||||||
| Foreign currency translation | (6,679) | (98,248) | (16,624) | (121,550) | (69,174) | |||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 455,119 | 1,408,752 | 1,033,399 | 2,897,270 | 1,799,031 | |||||||||||||||||||||||||||
| Additions | 36,980 | 48,753 | 46,939 | 132,671 | 105,185 | |||||||||||||||||||||||||||
| Amortization | — | — | — | — | (152,431) | |||||||||||||||||||||||||||
| Foreign currency translation | 4,797 | 144,116 | 9,961 | 158,874 | 103,929 | |||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 496,896 | $ | 1,601,621 | $ | 1,090,299 | $ | 3,188,815 | $ | 1,855,714 | ||||||||||||||||||||||
We completed our annual goodwill impairment testing as of October 1, 2025. We assess the value of our goodwill under either a quantitative or qualitative assessment for our reporting units. To complete a qualitative assessment, we evaluate historical revenue and operating profit growth trends, market conditions and other factors to determine whether it is more likely than not that the reporting unit's goodwill is impaired. We complete quantitative assessments for reporting units that fail our qualitative assessments, or otherwise on a periodic basis. To complete a quantitative assessment, we calculate a reporting unit's fair value using a combination of income and market approaches, which involve significant unobservable inputs (Level 3). In the income approach, we primarily use these assumptions: projected revenue growth rates, EBITDA margins, the estimated weighted average cost of capital, and terminal value. In the market approach, we primarily use benchmark company market multiples. We believe the inputs and assumptions we use are consistent with those a hypothetical marketplace participant would use. Once calculated, we verify whether the reporting unit's fair value is higher than its carrying amount. If the fair value is lower, we recognize an impairment, generally for the difference. Based on these assessments, we did not recognize any goodwill impairments during 2025 or 2024.
Accumulated impairment losses for the International Automotive segment was $506,721 as of December 31, 2025 and 2024. We have not incurred any accumulated impairment losses for the North America Automotive or Industrial segments.
If there are sustained declines in macroeconomic or business conditions in future periods affecting the projected earnings and cash flows at our reporting units, among other things, there can be no assurance that goodwill at one or more reporting units may not be impaired.
Other Intangible Assets
The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2025 and 2024 are as follows:
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||
| Customer relationships | $ | 2,577,160 | $ | (957,284) | $ | 1,619,876 | $ | 2,350,241 | $ | (778,707) | $ | 1,571,534 | ||||||||||||||||||||||||||
| Other intangibles | 360,744 | (124,906) | 235,838 | 369,744 | (142,246) | 227,497 | ||||||||||||||||||||||||||||||||
| $ | 2,937,904 | $ | (1,082,190) | $ | 1,855,714 | $ | 2,719,985 | $ | (920,953) | $ | 1,799,031 | |||||||||||||||||||||||||||
The valuation of identifiable intangible assets utilizes significant unobservable inputs and, therefore, represents a Level 3 fair value measurement. The estimated fair value of the identifiable intangible assets is generally determined using an income approach. Amortization expense for other intangible assets totaled $152 million, $143 million, and $147 million for the years ended December 31, 2025, 2024, and 2023, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows (in thousands):
| 2026 | $ | 150,000 | |||
| 2027 | 150,000 | ||||
| 2028 | 150,000 | ||||
| 2029 | 150,000 | ||||
| 2030 | 140,000 | ||||
| $ | 740,000 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.