Guarantees related to borrowings, other assets

[Table of Contents](#ic0c31f79a13347b4b84027caf6ad2450_7)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 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 September 30, 2022, 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 September 30, 2022, we have recognized certain assets and liabilities amounting to $74 million each 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.Earnings Per ShareWe maintain various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalents and other share-based awards. Certain outstanding options are not included in the diluted earnings per share calculation because their inclusion would have been anti-dilutive. The following table summarizes anti-dilutive shares outstanding:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Anti-dilutive shares outstanding |  | 360 |  | — |  | 1,142 |  | 158 |

2. Segment InformationThe following table presents a summary of our reportable segment financial information:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
| (in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Net sales:  |  |  |  |  |  |  |  |  |
| Automotive |  | $ | 3,490,462  |  |  | $ | 3,204,534  |  |  | $ | 10,233,577  |  |  | $ | 9,353,998  |  |
| Industrial |  | 2,184,812  |  |  | 1,614,315  |  |  | 6,338,746  |  |  | 4,713,303  |  |
| Total net sales |  | $ | 5,675,274  |  |  | $ | 4,818,849  |  |  | $ | 16,572,323  |  |  | $ | 14,067,301  |  |
| Segment profit: |  |  |  |  |  |  |  |  |
| Automotive |  | $ | 309,349  |  |  | $ | 281,150  |  |  | $ | 896,475  |  |  | $ | 807,586  |  |
| Industrial |  | 242,505  |  |  | 165,754  |  |  | 656,330  |  |  | 441,459  |  |
| Total segment profit |  | 551,854  |  |  | 446,904  |  |  | 1,552,805  |  |  | 1,249,045  |  |
| Interest expense, net |  | (18,220) |  |  | (14,167) |  |  | (58,318) |  |  | (47,853) |  |
| Intangible asset amortization |  | (39,416) |  |  | (25,311) |  |  | (118,740) |  |  | (78,239) |  |
| Corporate expense |  | (72,820) |  |  | (47,389) |  |  | (187,883) |  |  | (130,029) |  |
| Other unallocated (expenses) income (1) |  | (3,462) |  |  | (61,063) |  |  | 47,355  |  |  | (138,484) |  |
| Income before income taxes |  | $ | 417,936  |  |  | $ | 298,974  |  |  | $ | 1,235,219  |  |  | $ | 854,440  |  |

(1)     The following table presents a summary of the other unallocated income and expenses:10
