Automotive net sales increased by 3.7%, driven by acquisitions, including strategic acquisitions of over 500 stores in the U.S., mostly from independent owners. The company pivoted to owning more stores in priority markets.

Net sales for Industrial decreased by 1.4%, driven by a 2.1% decrease in comparable sales, reflecting softness in industrial production and moderation in customer end markets. The Purchasing Managers' Index (PMI) remained contractionary through most of 2024.

The company approved a global restructuring, including a voluntary retirement offer in the U.S. and rationalization of facilities, incurring $221 million in restructuring costs in 2024. The company expects $200 million in cost savings when fully annualized in 2026.

The company is implementing a strategic realignment of its global tools and equipment inventory strategy, targeting a new generation of installers by reducing product offerings to two primary tiers and launching a new global branding initiative in 2025. This resulted in a $62 million non-cash charge to write down inventory.

The Board of Directors approved the termination of the frozen U.S. qualified defined benefit plan, effective September 30, 2024, planning to transfer management and delivery of benefits to a third-party insurance company by end of 2025 or early 2026.

Depreciation and amortization expenses increased $57 million related to ongoing investments in technology and supply chain initiatives. The company continues to enhance digital capabilities to improve customer experience, increase automation in distribution centers, and modernize payment platforms.

The 10K notes that the company's business is affected by factors such as miles driven, vehicle age, electric vehicle adoption, gas prices, weather, and the economy. Declining economic conditions, persistent inflation, and volatile interest rates may cause consumers to defer vehicle maintenance.

The company is investing in capital improvements and operational enhancements to its supply chain, but delays or disruptions in executing this initiative could have a material adverse impact on the business.

The 10K states that instability in the geopolitical environment, including the Russia-Ukraine conflict, may put pressure on global economic conditions and supply chains, adversely affecting the company's business, particularly its European operations.

The automotive aftermarket is highly competitive, impacted by name recognition, product availability, customer service, and pricing pressures. Increased competition from digital and e-commerce providers could cause a material adverse effect on results of operations.

Consolidation among competitors could further enhance their financial position, providing them with the ability to offer more competitive prices, take advantage of acquisitions, and utilize developing technology.

The 10K states that Genuine Parts Company competes with other national, regional, and local automotive parts chains, automobile manufacturers, automobile dealers, and warehouse clubs, primarily on availability of product offering, service, brand recognition and price.

The company is implementing a global restructuring initiative designed to better align assets and improve profitability. This initiative includes a voluntary retirement offer and facility rationalization, with expected savings of $200 million when fully annualized in 2026.

SG&A expenses increased $476 million, or 7.7%, from 2023. Approximately 50% of the increase was driven by personnel expense and 10% by higher rent expense, reflecting inflationary pressures on annual wage increases and lease renewals.

The company is investing in technology to improve the customer experience, increase automation in distribution centers, and modernize payment platforms. These investments are driving higher year-over-year depreciation and interest expense.

The company is making planned investments in technology to modernize its systems and digital platforms. These investments are driving higher year-over-year depreciation and interest expense.

The company recognizes the growing demand for business-to-business and business-to-customer e-commerce options and solutions and is working to provide or adapt to the e-commerce options and solutions customers wish to use.

The company's information security program is managed by a dedicated Chief Information Security Officer (CISO) and is regularly evaluated by internal and external resources. The company performs ongoing internal and external risk assessment activities, and deploys systems, processes, and procedures across its global business units in response to identified risks.

Net cash used in investing activities included $1.1 billion used for acquisitions, a significant increase from the prior year. This reflects the company's strategy of growing through acquisitions, particularly in the Automotive segment.

The company repurchased approximately 1.1 million shares of its common stock for an aggregate $150 million, and had remaining authority to purchase approximately 7.5 million shares at December 31, 2024. This is a decrease from previous levels.

The company issued $750 million of unsecured 4.950% Senior Notes due 2029. Interest is payable on February 15 and August 15 of each year, beginning February 15, 2025.

The Nominating and ESG Committee of the Board of Directors oversees the company's sustainability initiatives which aim to deliver long-term value for shareholders and all stakeholders.

The company seeks to promote an inclusive workplace and to ensure the health, safety and well-being of all employees. It emphasizes giving back and uplifting the communities in which it operates through partnerships and volunteer efforts.

The company is committed to reducing its environmental footprint through the implementation of sustainable initiatives throughout its value chain. It is continuously incorporating environmental stewardship in its practices and discovering opportunities to develop more efficient operations.

The company's business, financial condition, results of operations and cash flows have been and may in the future be adversely affected by uncertain global economic conditions, including inflation or deflation, domestic outputs, geopolitical uncertainty and unrest, employment rates and wages, including increases in minimum wage, changes in tax policies, changes in energy costs, instability in credit markets, declining consumer and business confidence, fluctuating commodity prices, elevated interest rates for prolonged periods, monetary policies, volatile exchange rates, changes in fiscal and regulatory priorities as a result of the outcome of the 2024 U.S. presidential election, and other challenges that could affect the global economy.

The company faces increasing scrutiny and regulations related to corporate social responsibility practices and disclosures and faces an increasing risk of damage to its reputation and the value of its brands if it fails to act responsibly and/or in compliance with applicable laws and regulations.

As a global business, the company is subject to taxation in each of the jurisdictions in which it operates. Changes in the tax laws of these jurisdictions, or in the interpretation or enforcement of existing tax laws, could subject the company's business to audits, inquiries and legal challenges from taxing authorities and could reduce the benefit of tax structures previously implemented for its operations.