Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 15, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GRAYBAR ELECTRIC CO INC | |
Entity Central Index Key | 205,402 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,470,429 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Income Statement [Abstract] | ||||||
Sales Revenue, Goods, Gross | $ 1,878,894 | $ 1,708,638 | $ 5,364,287 | $ 4,967,349 | ||
Sales Discounts, Goods | 8,643 | 7,795 | 24,052 | 23,055 | ||
Sales Revenue, Goods, Net | 1,870,251 | 1,700,843 | 5,340,235 | 4,944,294 | ||
Cost of merchandise sold | (1,516,849) | (1,378,859) | (4,324,258) | (3,999,588) | ||
Gross Margin | 353,402 | 321,984 | 1,015,977 | 944,706 | ||
Selling, general and administrative expenses | (276,345) | (255,612) | (810,474) | (760,714) | ||
Depreciation and amortization | (12,517) | (12,211) | (36,932) | (36,231) | ||
Other income, net | 979 | 1,511 | 2,395 | 5,640 | ||
Income from Operations | 65,519 | 55,672 | 170,966 | 153,401 | ||
Non-operating expenses | (7,828) | (6,357) | (22,841) | (18,503) | ||
Income before Provision for Income Taxes | 57,691 | 49,315 | 148,125 | 134,898 | ||
Provision for income taxes | (4,019) | (19,761) | (28,708) | (54,220) | ||
Net Income | 53,672 | 29,554 | 119,417 | 80,678 | ||
Less: Net income attributable to noncontrolling interests | (110) | (120) | (270) | (229) | ||
Net Income attributable to Graybar Electric Company, Inc. | $ 53,562 | $ 29,434 | $ 119,147 | $ 80,449 | ||
Net Income per share of Common Stock (in dollars per share) | $ 2.75 | $ 1.52 | [1] | $ 6.11 | $ 4.15 | [1] |
Cash Dividends per share of Common Stock (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 | ||
Average Common Shares Outstanding (Shares) | 19,465 | 19,372 | 19,496 | 19,380 | ||
[1] | (A)Adjusted for the declaration of a 10% stock dividend in 2017, shares related to which were issued in February 2018. Prior to the adjustment, the average common shares outstanding were 17,611 and 17,618 for the three and nine months ended September 30, 2017, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income Condensed Consolidated Statements of Income (Parenthetical) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Dividend | 10.00% | ||
Average Common Shares Outstanding | 19,372 | 19,496 | 19,380 |
As Reported | |||
Average Common Shares Outstanding | 17,611 | 17,618 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 53,672 | $ 29,554 | $ 119,417 | $ 80,678 |
Other Comprehensive Income | ||||
Foreign currency translation | 1,759 | 3,616 | (2,533) | 6,550 |
Pension and postretirement benefits liability adjustment (net of tax of $(1,654), $(1,997), $(4,964), and $(5,990), respectively) | 4,773 | 3,136 | 14,317 | 9,408 |
Total Other Comprehensive Income | 6,532 | 6,752 | 11,784 | 15,958 |
Comprehensive Income | 60,204 | 36,306 | 131,201 | 96,636 |
Less: comprehensive income attributable to noncontrolling interests, net of tax | 174 | 209 | 193 | 457 |
Comprehensive Income attributable to Graybar Electric Company, Inc. | $ 60,030 | $ 36,097 | $ 131,008 | $ 96,179 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and postretirement benefits liabilities adjustment, tax | $ (1,654) | $ (1,997) | $ (4,964) | $ (5,990) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 56,900 | $ 42,757 |
Trade receivables (less allowances of $6,181 and $5,989, respectively) | 1,210,013 | 1,061,590 |
Merchandise inventory | 661,530 | 579,350 |
Other current assets | 26,692 | 34,227 |
Total Current Assets | 1,955,135 | 1,717,924 |
Property, at cost | ||
Land | 79,661 | 79,787 |
Buildings | 483,492 | 470,784 |
Furniture and fixtures | 308,979 | 300,705 |
Software | 87,313 | 87,313 |
Capital leases | 28,377 | 25,610 |
Total Property, at cost | 987,822 | 964,199 |
Less – accumulated depreciation and amortization | (567,163) | (539,275) |
Net Property | 420,659 | 424,924 |
Other Non-current Assets | 116,445 | 118,509 |
Total Assets | 2,492,239 | 2,261,357 |
Current Liabilities | ||
Short-term borrowings | 246,000 | 169,643 |
Current portion of long-term debt | 3,395 | 2,052 |
Trade accounts payable | 951,541 | 835,931 |
Accrued payroll and benefit costs | 93,534 | 119,349 |
Other accrued taxes | 25,204 | 17,228 |
Other current liabilities | 85,385 | 78,225 |
Total Current Liabilities | 1,405,059 | 1,222,428 |
Postretirement Benefits Liability | 71,430 | 70,747 |
Pension Liability | 105,595 | 169,225 |
Long-term Debt | 10,003 | 7,048 |
Other Non-current Liabilities | 21,288 | 30,361 |
Total Liabilities | 1,613,375 | 1,499,809 |
SHAREHOLDERS’ EQUITY | ||
Outstanding Common Stock | 389,839 | 387,687 |
Advance Payments on Subscriptions to Common Stock | 1,007 | 0 |
Retained Earnings | 722,274 | 619,916 |
Accumulated Other Comprehensive Loss | (238,293) | (250,154) |
Total Graybar Electric Company, Inc. Shareholders’ Equity | 874,827 | 757,449 |
Noncontrolling Interests | 4,037 | 4,099 |
Total Shareholders’ Equity | 878,864 | 761,548 |
Total Liabilities and Shareholders’ Equity | $ 2,492,239 | $ 2,261,357 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 6,181 | $ 5,989 |
Common, stated value per share | $ 20 | $ 20 |
Authorized | 50,000,000 | 50,000,000 |
Issued to voting trustees | 16,516,455 | 15,912,467 |
Issued to shareholders | 3,641,314 | 3,496,114 |
In treasury, at cost | (665,842) | (24,243) |
Outstanding common stock | 19,491,927 | 19,384,338 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operations | ||
Net Income | $ 119,417 | $ 80,678 |
Adjustments to reconcile net income to cash provided by operations: | ||
Depreciation and amortization | 36,932 | 36,231 |
Deferred income taxes | 6,663 | (6,659) |
Net gains on disposal of property | (4) | (270) |
Losses on impairment of property | 320 | 0 |
Net income attributable to noncontrolling interests | (270) | (229) |
Changes in assets and liabilities: | ||
Trade receivables | (148,423) | (86,433) |
Merchandise inventory | (85,488) | (94,141) |
Other current assets | 7,535 | 1,489 |
Other non-current assets | (14,631) | (2,503) |
Trade accounts payable | 115,610 | 83,768 |
Accrued payroll and benefit costs | (25,815) | (36,019) |
Other current liabilities | 13,188 | 20,875 |
Other non-current liabilities | (42,204) | (24,646) |
Total adjustments to net income | (136,587) | (108,537) |
Net cash used by operations | (17,170) | (27,859) |
Cash Flows from Investing Activities | ||
Proceeds from disposal of property | 535 | 2,015 |
Capital expenditures for property | (27,319) | (26,674) |
Net cash used by investing activities | (26,784) | (24,659) |
Cash Flows from Financing Activities | ||
Net increase in short-term borrowings | 76,357 | 76,139 |
Principal payments under capital leases | (3,577) | (3,613) |
Sale of common stock | 15,991 | 15,558 |
Purchases of common stock | (12,832) | (11,424) |
Sales of noncontrolling interests’ common stock | 0 | 627 |
Purchases of noncontrolling interests’ common stock | (255) | (392) |
Dividends paid | (17,587) | (15,910) |
Net cash provided by financing activities | 58,097 | 60,985 |
Net Increase in Cash | 14,143 | 8,467 |
Cash, Beginning of Year | 42,757 | 43,339 |
Cash, End of Period | 56,900 | 51,806 |
Non-cash Investing and Financing Activities | ||
Acquisitions of equipment under capital leases | 2,829 | 1,407 |
Acquisition of software and maintenance under financing arrangement | $ 5,046 | $ 0 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Common Stock Subscribed, Unissued | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at Dec. 31, 2016 | $ 730,889 | $ 348,771 | $ 0 | $ 575,380 | $ (196,600) | $ 3,338 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 80,678 | 80,449 | 229 | |||
Other comprehensive income (loss) | 15,958 | 15,730 | 228 | |||
Stock issued | 15,219 | 14,592 | 627 | |||
Stock purchased | (11,816) | (11,424) | (392) | |||
Advance payments | 966 | 966 | ||||
Dividends declared | (15,910) | (15,910) | ||||
Balance at Sep. 30, 2017 | 815,984 | 351,939 | 966 | 639,919 | (180,870) | 4,030 |
Balance at Dec. 31, 2017 | 761,548 | 387,687 | 0 | 619,916 | (250,154) | 4,099 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 119,417 | 119,147 | 270 | |||
Other comprehensive income (loss) | 11,784 | 11,861 | (77) | |||
Stock issued | 14,984 | 14,984 | ||||
Stock purchased | (13,087) | (12,832) | (255) | |||
Advance payments | 1,007 | 1,007 | ||||
Dividends declared | (17,587) | (17,587) | ||||
Balance at Sep. 30, 2018 | 878,864 | $ 389,839 | $ 1,007 | 722,274 | $ (238,293) | $ 4,037 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASC 606, net of tax | $ 798 | $ 798 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Graybar Electric Company, Inc. (“Graybar”, “Company”, "we", "our", or "us") is a New York corporation, incorporated in 1925. We are engaged in the distribution of electrical and communications and data networking products and are a provider of related supply chain management and logistics services. We primarily serve customers in the construction, industrial & utility, and commercial, institutional and government ("CIG") vertical markets, with products and services that support new construction, infrastructure updates, building renovation, facility maintenance, repair and operations ("MRO"), and original equipment manufacturers ("OEM"). We purchase all of the products we sell from others, and we neither manufacture nor contract to manufacture any products we sell. Our business activity is primarily based in the United States (“U.S.”). We also have subsidiary operations with distribution facilities in Canada and Puerto Rico. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our accounting policies conform to generally accepted accounting principles in the U.S. ("GAAP”) and are applied on a consistent basis among all years presented. Significant accounting policies are described below. Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Graybar pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “Commission”) applicable to interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information presented not misleading. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect reported amounts. Our condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year ended December 31, 2017 , included in our latest Annual Report on Form 10-K. In the opinion of management, this quarterly report includes all adjustments, consisting of normal recurring accruals and adjustments, necessary for the fair presentation of the financial statements presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. Principles of Consolidation The condensed consolidated financial statements include the accounts of Graybar and its subsidiary companies. All material intercompany balances and transactions have been eliminated. The ownership interests that are held by owners other than the Company in subsidiaries consolidated by the Company are accounted for and reported as noncontrolling interests. Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Reclassifications Certain reclassifications have been made to prior years' financial information to conform to the December 31, 2017 presentation. Subsequent Events We have evaluated subsequent events through the time of the filing of this Quarterly Report on Form 10-Q with the Commission. No material subsequent events have occurred since September 30, 2018 that require recognition or disclosure in these financial statements. Revenue Recognition Sales revenue is recognized when control of the promised good or service is transferred to the customer. Sometimes product is purchased from the manufacturer and drop-shipped to the customer. We generally take control of the goods when shipped by the manufacturer and then recognize revenue when control of the product transfers to the customer. Revenues recognized are primarily for product sales, but may also include freight and handling charges. Our standard warehouse shipping terms are FOB shipping point, under which control passes to the customer at the time of shipment. We also earn revenue for professional services, general contracting services, and storage services. Service revenue represented less than 1% of gross sales for the three and nine months ended September 30, 2018 . Revenue is reported net of all taxes assessed by governmental authorities as a result of revenue-producing transactions, primarily sales tax. Outgoing Freight Expenses We record certain outgoing freight expenses as a component of selling, general and administrative expenses. Cash and Cash Equivalents We account for cash on hand, deposits in banks, and other short-term, highly liquid investments with an original maturity of three months or less as cash and cash equivalents. Allowance for Doubtful Accounts We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables is secured by mechanic’s lien or payment bond rights. We maintain allowances to reflect the expected uncollectability of trade receivables based on past collection history and specific risks identified in the receivables portfolio. Although actual credit losses have historically been within management’s expectations, additional allowances may be required if the financial condition of our customers were to deteriorate. Merchandise Inventory Our inventory is stated at the lower of cost (generally determined using the last-in, first-out (“LIFO”) cost method) or market. LIFO accounting is a method of accounting that, compared with other inventory accounting methods, generally provides better matching of current costs with current sales. We make provisions for obsolete or excess inventories as necessary to reflect reductions in inventory value. Vendor Allowances Our agreements with many of our suppliers provide for us to earn volume incentives based on purchases during the agreement period. Based on the provisions of our vendor agreements, we develop vendor accrual rates by estimating the point at which we will have completed our performance under the agreement and the deferred amounts will be earned. We perform analyses and review historical trends to ensure the deferred amounts earned are appropriately recorded. Certain vendor agreements contain purchase volume incentives that provide for increased funding when graduated purchase volumes are met. Amounts accrued throughout the year are based on estimates of future activity levels, and could be materially impacted if actual purchase volumes differ. Changes in the estimated amount of incentives are treated as changes in estimate and are recognized in earnings in the period in which the change in estimate occurs. In the event that the operating performance of our suppliers were to decline, however, there can be no assurance that amounts earned would be paid or that the volume incentives would continue to be included in future agreements. Property and Depreciation Property, plant and equipment are recorded at cost. Depreciation is expensed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the asset's historical cost and included in property, plant and equipment, then depreciated over the useful life of the asset. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for maintenance and repairs are charged to expense when incurred, while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. Credit Risk Financial instruments that potentially expose us to concentrations of credit risk consist primarily of trade receivables. We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables may be protected by mechanic’s lien or payment bond rights. We maintain allowances for potential credit losses, and such losses historically have been within management’s expectations. Fair Value We endeavor to utilize the best available information in measuring fair value. GAAP has established a fair value hierarchy, which prioritizes the inputs used in measuring fair value. The tiers in the hierarchy include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own data inputs and assumptions. We have used fair value measurements to value our pension plan assets. Foreign Currency Exchange Rate The functional currency for our Canadian subsidiary is the Canadian dollar. Accordingly, its balance sheet amounts are translated at the exchange rates in effect at the end of each reporting period and its statements of income amounts are translated at the average rates of exchange prevailing during the current period. Currency translation adjustments are included in accumulated other comprehensive loss. Goodwill Our goodwill is not amortized, but rather tested annually for impairment. Goodwill is reviewed annually in the fourth quarter and/or when circumstances or other events might indicate that impairment may have occurred. We first perform a qualitative assessment of goodwill impairment. The qualitative assessment considers several factors including the excess fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market conditions, actual performance compared to forecasted performance, and the current business outlook. If the qualitative assessment indicates that it is more likely than not that goodwill is impaired, the reporting unit is then quantitatively tested for impairment. If a quantitative assessment is required, the fair value is determined using a variety of assumptions including estimated future cash flows of the reporting unit and applicable discount rates. Definite Lived Intangible Assets The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Customer relationships, trade names and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 3 to 20 years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. Income Taxes We recognize deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the financial statements or tax returns. Uncertainty exists regarding tax positions taken in previously filed tax returns still subject to examination and positions expected to be taken in future returns. A deferred tax asset or liability results from the temporary difference between an item’s carrying value as reflected in the financial statements and its tax basis, and is calculated using enacted applicable tax rates. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance, when recorded, are included in the provision for income taxes in the condensed consolidated financial statements. We classify interest expense and penalties as part of our provision for income taxes based upon applicable federal and state interest/underpayment percentages. Other Postretirement Benefits We account for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of postretirement benefits. Pension Plan We sponsor a noncontributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of the defined benefit pension plan. Non-Operating Expenses Non-operating expenses are comprised of interest expense, net and non-service cost components of the net periodic benefit cost for the pension and other postretirement benefit plans. The non-service cost components include interest cost, expected return on plan assets, amortization of net actuarial gains/losses, and amortization of prior service costs/gains. New Accounting Standards No new accounting standards that were issued or became effective during 2018 have had or are expected to have a material impact on our condensed consolidated financial statements, except those noted below: We adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update (“ASU” or “Update”) 2017-07, “Compensation - Retirement Benefits (Topic 715)” ("ASU 2017-07") on January 1, 2018 using the retrospective transition method. The updates to the standard require us to report the service cost component in the same line as other compensation costs arising from services rendered by employees during the reporting period. The other components of net benefit costs are presented in the income statement separately from the service cost and outside of a subtotal of income from operations. The impact to the three and nine months ended September 30, 2017 operating results within the condensed consolidated statements of income as a result of adopting ASU 2017-07 is presented in the tables below: Condensed Consolidated Statements of Income Three Months Ended As Reported Reclassification As Adjusted Selling, general and administrative expenses $ 260,752 $ (5,140 ) $ 255,612 Non-operating expenses 1,217 5,140 6,357 Nine Months Ended As Reported Reclassification As Adjusted Selling, general and administrative expenses $ 776,135 $ (15,421 ) $ 760,714 Non-operating expenses 3,082 15,421 18,503 On January 1, 2018, we adopted Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers." See Note 3, "Revenue", for further information. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” ("ASU 2016-02"). The core principle of Topic 842 requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. Although we anticipate the adoption of ASU 2016-02 will have a material impact on our consolidated balance sheets, we do not expect the adoption to have a material impact on our consolidated statements of income. We are completing our assessment of the potential impacts of ASU 2016-02 and still expect the most significant impact will be the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. We still expect our accounting for capital leases to remain substantially unchanged. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13") that makes minor changes to the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14") that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 for public entities. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15") requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years for public entities. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our financial statements, but do not expect it to have a material impact. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE On January 1, 2018, we adopted ASC Topic 606, “Revenue from Contracts with Customers” ("ASC Topic 606") using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605, "Revenue Recognition" ("ASC Topic 605"). We recorded an increase to opening retained earnings of $798 (net of tax of $277 ) as of January 1, 2018 due to the cumulative impact of adopting ASC Topic 606, with the impact primarily related to the recognition of bill and hold transactions that were deferred under ASC Topic 605. The impact to revenue as a result of applying ASC Topic 606 for the three and nine months ended September 30, 2018 was a decrease of $1,598 and $3,294 , respectively. In accordance with the new revenue standard requirement, the disclosure impact of adoption on our condensed consolidated statements of income for the three and nine months ended September 30, 2018 and the condensed consolidated balance sheet as of September 30, 2018 was as follows: Condensed Consolidated Statements of Income Three Months Ended As Reported Balance without Adoption Effect of Change Net sales $ 1,870,251 $ 1,871,849 $ (1,598 ) Cost of merchandise sold 1,516,849 1,518,311 (1,462 ) Nine Months Ended As Reported Balance without Adoption Effect of Change Net sales $ 5,340,235 $ 5,343,529 $ (3,294 ) Cost of merchandise sold 4,324,258 4,327,342 (3,084 ) Condensed Consolidated Balance Sheet September 30, 2018 As Reported Balance without Adoption Effect of Change Merchandise inventory $ 661,530 $ 667,907 $ (6,377 ) Other current assets 26,692 26,969 (277 ) Other non-current liabilities 21,288 28,528 (7,240 ) Retained earnings 722,274 721,688 586 The following table summarizes the percentages of our net sales attributable to each of our vertical markets for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended 2018 2017 2018 2017 Construction 60.4 % 58.8 % 59.4 % 58.6 % Industrial & Utility 20.3 21.9 21.4 21.9 CIG 19.3 19.3 19.2 19.5 Total net sales 100.0 % 100.0 % 100.0 % 100.0 % We had no material contract assets, contract liabilities, or deferred contract costs recorded on the condensed consolidated balance sheet as of September 30, 2018 . In addition, for the three and nine months ended September 30, 2018 , revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period is not material. Revenue expected to be recognized in any future year related to remaining performance obligations is not material. As permitted in ASC Topic 606, we have elected to omit disclosure related to performance obligations for revenue pertaining to contracts that have an original expected duration of one year or less, to contracts where revenue is recognized as invoiced and to contracts with variable consideration related to wholly unsatisfied performance obligations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes includes effects from the Tax Cuts and Jobs Act (“TCJA”) for changes that became effective January 1, 2018. We have incorporated estimates for these new TCJA provisions as part of our forecasted annual effective tax rate. Additionally, for the three- and nine -month periods ended September 30, 2018 , we adjusted our provisional amounts previously recorded at December 31, 2017 under Staff Accounting Bulletin 118. At September 30, 2018, we have updated our analysis and accounting for the income tax effects of the TCJA with respect to deferred tax balances and the federal transition tax. During the quarter, we recognized tax benefits of $9,157 and $1,779 related to the remeasurement of deferred tax balances and the one-time transition tax on the deemed repatriation of foreign earnings, respectively, as the result of finalizing these items. The remeasurement adjustment is largely driven by the impact on deferred taxes of additional planning items. We are still in the process of completing annual state income tax filings, which may result in immaterial changes related to the state impact of transition tax. Our unrecognized tax benefits of $2,674 and $2,318 at September 30, 2018 and December 31, 2017 , respectively, are uncertain tax positions that would impact our effective tax rate if recognized. We are periodically engaged in tax return examinations, the review of statute of limitation periods, and settlements surrounding income taxes. We do not anticipate a material change in unrecognized tax benefits during the next twelve months. We classify interest expense and penalties as part of our provision for income taxes based upon applicable federal and state interest/underpayment percentages. We have accrued $1,104 and $983 in interest and penalties at September 30, 2018 and December 31, 2017 , respectively. Interest was computed on the difference between the provision for income taxes recognized in accordance with GAAP and the amount of benefit previously taken or expected to be taken in our federal, state, and local income tax returns. Our federal income tax returns for the tax years 2015 and forward are available for examination by the United States Internal Revenue Service (“IRS”). The statute of limitations for the 2015 federal return will expire on September 15, 2019, unless extended by consent. Our state income tax returns for 2013 through 2017 remain subject to examination by various state authorities with the latest period closing on December 31, 2022. We have not extended the statutes of limitations in any state jurisdictions with respect to years prior to 2013. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK Our common stock is 100% owned by active and retired employees, and there is no public trading market for our common stock. Since 1928, substantially all of the issued and outstanding shares of common stock have been held of record by voting trustees under successive voting trust agreements. A new Voting Trust Agreement was established effective March 3, 2017, which expires by its terms on March 1, 2027. At September 30, 2018 , approximately 83% of the total shares of common stock was held in the voting trust. The participation of shareholders in the voting trust is voluntary at the time the voting trust is created, but is irrevocable during its term. Shareholders who elect not to participate in the voting trust hold their common stock as shareholders of record. Shareholders may elect to participate in the voting trust at any time during the term of the voting trust. No holder of our common stock or voting trust interests representing our common stock ("common stock", "common shares", or "shares") may sell, transfer or otherwise dispose of any shares without first offering us the option to purchase those shares at the price at which they were issued. Additionally, before the shareholder action described in the next sentence became effective, a shareholder was entitled to any cash dividends accrued for the quarter in which the purchase offer is made, adjusted pro rata for the number of days such shares were held prior to the dividend record date. On June 8, 2017, the shareholders voted to remove this adjustment for accruing dividends on the common stock. We also have the option to purchase at the issue price the common shares of any shareholder who ceases to be an employee for any reason other than death or "retirement" (as defined in our amended restated certificate of incorporation), and on the first anniversary of any holder's death. In the past, we have always exercised these purchase options, and we expect to continue to do so in the foreseeable future. However, we can make no assurance that we will continue to exercise our purchase option in the future. All outstanding shares have been issued at $20.00 per share. Cash dividends paid were $5,850 and $5,286 for the three months ended September 30, 2018 and 2017 , respectively. Cash dividends paid were $17,587 and $15,910 for the nine months ended September 30, 2018 and 2017 , respectively. We also have authorized 10,000,000 shares of Delegated Authority Preferred Stock (“preferred stock”), par value one cent ( $0.01 ). The preferred stock may be issued in one or more series, with the designations, relative rights, preferences, and limitations of shares of each such series being fixed by a resolution of our Board of Directors. There were no shares of preferred stock outstanding at September 30, 2018 and December 31, 2017 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Revolving Credit Facility At December 31, 2017 , we, along with Graybar Canada Limited, our Canadian operating subsidiary (“Graybar Canada”), had an unsecured, five -year, $550,000 revolving credit agreement maturing in June 2019 with Bank of America, N.A. and the other lenders named therein (the "Credit Agreement"), which included a combined letter of credit sub-facility of up to $50,000 , a U.S. swing line loan facility of up to $50,000 , and a Canadian swing line loan facility of up to $20,000 . The Credit Agreement included a $100,000 sublimit (in U.S. or Canadian dollars) for borrowings by Graybar Canada and contained an accordion feature, which allowed us to request increases to the aggregate borrowing commitments of up to $300,000 . On August 10, 2018, we, along with Graybar Canada, amended and extended the Credit Agreement (the “Amended Credit Agreement”), to, among other things, increase the availability to $750,000 , which includes a combined letter of credit sub-facility of up to $25,000 , a U.S. swing-line loan facility of up to $75,000 , and a Canadian swing-line loan facility of up to $20,000 , pursuant to the terms and conditions of a Third Amendment to Credit Agreement, by and among Graybar, as parent borrower, Graybar Canada Limited, as a borrower, the lenders party thereto, Bank of America, N.A. as Domestic Administrative Agent, Domestic Swing Line Lender and Domestic L/C Issuer and Bank of America, N.A., acting through its Canada Branch, as Canadian Administrative Agent, Canadian Swing Line Lender and Canadian L/C Issuer. The Amended Credit Agreement includes a $100,000 sublimit (in U.S. or Canadian dollars) for borrowings by Graybar Canada. The Amended Credit Agreement contains an accordion feature, which allows us to request increases in the aggregate borrowing commitments of up to $375,000 . Interest on our borrowings under the Amended Credit Agreement will be based on, at the borrower’s election, either (A) (i) the base rate (as defined in the agreement) plus a margin ranging from 0.00% to 0.60% , or (ii) LIBOR (in the case of Graybar as borrower) plus a margin ranging from 1.00% to 1.60% or (B) (i) the base rate (as defined in the agreement) plus a margin ranging from 0.00% to 0.60% or (ii) CDOR (in the case of Graybar Canada as borrower), plus a margin ranging from 1.00% to 1.60% , as determined by the pricing grid set forth in the Amended Credit Agreement, subject to adjustment based upon the consolidated leverage ratio. In connection with such a borrowing, the applicable borrower will also select the term of the loan, up to six months, or automatically renew with the consent of the lenders. Swing line loans, which are daily loans, will bear interest at a rate based on, at the borrower’s election, either (i) the base rate or (ii) the daily floating Eurodollar rate (or CDOR, in the case of Graybar Canada). In addition to interest payments, there are certain fees and obligations associated with borrowings, swing-line loans, letters of credit and other administrative matters. The Amended Credit Agreement matures in August 2023 . Borrowings of Graybar Canada may be in U.S. dollars or Canadian dollars. The obligations of Graybar Canada are secured by the guaranty of Graybar and any material domestic subsidiaries of Graybar (as defined). Under no circumstances will Graybar Canada use its borrowings to benefit Graybar or its operations, including without limitation to repay any of Graybar’s obligations under the facility. The Amended Credit Agreement provides for a quarterly commitment fee ranging from 0.25% to 0.40% per annum, subject to adjustment based upon the consolidated leverage ratio for a fiscal quarter, and letter of credit fees ranging from 1.00% to 1.60% per annum payable quarterly, subject to such adjustment. Availability under the Amended Credit Agreement is subject to the accuracy of representations and warranties and absence of a default and, in the case of Canadian borrowings denominated in Canadian dollars, the absence of a material adverse change in the national or international financial markets that would make it impracticable to lend Canadian dollars. The Amended Credit Agreement also provides for customary events of default, including a failure to pay principal, interest or fees when due, failure to comply with covenants, the fact that any representation or warranty made by any of the credit parties is materially incorrect, failure to comply with covenants, the occurrence of an event of default under certain other indebtedness by us and our subsidiaries, the commencement of certain insolvency or receivership events affecting any of the credit parties, certain actions under ERISA and the occurrence of a change in control of any of the credit parties (subject to certain permitted transactions as described in the Amended Credit Agreement). Upon the occurrence of an event of default, the commitments of the lenders may be terminated and all outstanding obligations of the credit parties under the Amended Credit Agreement may be declared immediately due and payable. The Amended Credit Agreement contains updated affirmative and negative covenants customary for credit facilities of this type, including limitations on us and our subsidiaries with respect to indebtedness (with specified, limited exceptions), liens, changes in the nature of our business, investments, mergers and acquisitions, issuance of equity securities, dispositions of assets and dissolution of certain subsidiaries, transactions with affiliates, restricted payments (subject to incurrence tests, with certain exceptions, including payments under senior notes), as well as securitizations, factoring transactions, and transactions with sanctioned parties or in violation of certain US or Canadian anti-corruption laws. There are also maximum leverage ratio and minimum interest coverage ratio financial covenants to which we will be subject to during the term of the Amended Credit Agreement. We were in compliance with all these covenants under the applicable credit agreement as of September 30, 2018 and December 31, 2017 . There were $246,000 and $169,643 in short-term borrowings outstanding under the applicable credit agreement at September 30, 2018 and December 31, 2017 , respectively. Short-term borrowings outstanding during the nine months ended September 30, 2018 and 2017 ranged from a minimum of $140,000 and $112,292 to a maximum of $249,000 and $229,782 , respectively. At September 30, 2018 , we had unused lines of credit under the applicable credit agreement amounting to $504,000 available, compared to $380,357 at December 31, 2017 . Interest expense, net was $1,878 and $1,217 for the three months ended September 30, 2018 and 2017 , respectively. Interest expense, net was $4,988 and $3,082 for the nine months ended September 30, 2018 and 2017 , respectively. Private Placement Shelf Agreements We have an uncommitted $100,000 private placement shelf agreement with PGIM, Inc. (the "Prudential Shelf Agreement") which expires in August 2020. We also have an uncommitted $100,000 private placement shelf agreement (the "MetLife Shelf Agreement") with Metropolitan Life Insurance Company and MetLife Investment Advisors, LLC and each other affiliate of MetLife that becomes a party to the agreement (collectively, "MetLife"). On August 10, 2018, we amended each of these uncommitted private placement shelf agreements to conform to the above-discussed specified changes in the Amended Credit Agreement. We also extended the notes issuance period under the MetLife Shelf Agreement from September 2019 to August 10, 2021. We remain obligated under a most favored lender clause which is designed to ensure that any notes in the future under the Prudential Shelf Agreement and MetLife Shelf Agreement will continue to be of equal ranking with indebtedness under our Credit Agreement. No notes have been issued under either the Prudential Shelf Agreement or the MetLife Shelf Agreement as of September 30, 2018 and December 31, 2017 . Each amended shelf agreement contains updated representations and warranties of the Company and the applicable lender, customary events of default and affirmative and negative covenants, customary for agreements of this type. These covenants are substantially similar to those contained in the Amended Credit Agreement, subject to a number of important exceptions and qualifications set forth in the applicable shelf agreement. All outstanding obligations of Graybar under one or both of these agreements may be declared immediately due and payable upon the occurrence of an event of default. We were in compliance with all covenants under the shelf agreements as of September 30, 2018 and December 31, 2017 . Letters of Credit We had total letters of credit of $5,621 and $5,371 outstanding, of which none were issued under the applicable credit agreement at September 30, 2018 and December 31, 2017 , respectively. The letters of credit are issued primarily to support certain workers' compensation insurance policies. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS We have a noncontributory defined benefit pension plan (the "Plan") covering substantially all employees first hired prior to July 1, 2015 after the completion of one year of service and 1,000 hours of service. The Plan provides retirement benefits based on an employee’s average earnings and years of service. These employees become 100% vested after three years of service, regardless of age. A supplemental benefit plan provides nonqualified benefits for compensation in excess of the IRS compensation limits applicable to the plan and eligible compensation deferred by a participant. Our funding policy is to make contributions to the Plan, provided that the total annual contributions will not be less than ERISA and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review the contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by us from time to time. The assets of the Plan are invested primarily in fixed income investments and equity securities. We pay nonqualified pension benefits when they are due according to the terms of the supplemental benefit plan. We provide certain postretirement healthcare and life insurance benefits to retired employees. Substantially all of our employees hired or rehired prior to 2014 may become eligible for postretirement medical benefits if they reach the age and service requirements of the retiree medical plan and retire on a pension (except a deferred pension) under the defined benefit pension plan. Medical benefits are self-insured and claims are administered through a third party administrator. The cost of coverage is determined based on the annual projected plan costs. The participant's premium or cost is determined based on Company guidelines. Postretirement life insurance benefits are insured through an insurance company. We fund postretirement benefits as incurred, and accordingly, there were no assets held in the postretirement benefits plan at September 30, 2018 and December 31, 2017 . The net periodic benefit cost for the three and nine months ended September 30, 2018 and 2017 includes the following components: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost 2018 2017 2018 2017 Selling, general, and administrative expenses: Service cost $ 7,134 $ 6,604 $ 580 $ 582 Total selling, general, and administrative expenses $ 7,134 $ 6,604 $ 580 $ 582 Non-operating expenses: Interest cost 6,830 6,954 659 711 Expected return on plan assets (7,966 ) (7,658 ) — — Amortization of: Net actuarial loss 6,624 5,376 213 197 Prior service cost (gain) 79 105 (489 ) (545 ) Total non-operating expenses $ 5,567 $ 4,777 $ 383 $ 363 Net periodic benefit cost $ 12,701 $ 11,381 $ 963 $ 945 Pension Benefits Postretirement Benefits Nine Months Ended Nine Months Ended Components of Net Periodic Benefit Cost 2018 2017 2018 2017 Selling, general, and administrative expenses: Service cost $ 21,401 $ 19,812 $ 1,739 $ 1,745 Total selling, general, and administrative expenses $ 21,401 $ 19,812 $ 1,739 $ 1,745 Non-operating expenses: Interest cost 20,491 20,863 1,978 2,133 Expected return on plan assets (23,897 ) (22,973 ) — — Amortization of: Net actuarial loss 19,871 16,127 639 591 Prior service cost (gain) 238 315 (1,467 ) (1,635 ) Total non-operating expenses $ 16,703 $ 14,332 $ 1,150 $ 1,089 Net periodic benefit cost $ 38,104 $ 34,144 $ 2,889 $ 2,834 We made qualified and nonqualified pension contributions totaling $60,001 and $24,001 during the three -month periods ended September 30, 2018 and 2017 , respectively. Contributions made during the nine -month periods ended September 30, 2018 and 2017 totaled $81,624 and $61,587 , respectively. Additional contributions expected to be paid during the remainder of 2018 are not expected to be material, but may change at our discretion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table represents amounts reclassified from accumulated other comprehensive income (loss) for the three months ended September 30, 2018 and 2017 : Three Months Ended Three Months Ended Amortization of Pension and Other Postretirement Benefits Items Amortization of Pension and Other Postretirement Benefits Items Actuarial Losses Recognized Prior Service Costs Recognized Total Actuarial Losses Recognized Prior Service Costs Recognized Total Affected Line in Condensed Consolidated Statement of Income: Non-operating expenses $ 6,837 $ (410 ) $ 6,427 $ 5,573 $ (440 ) $ 5,133 Tax (benefit) expense (1,760 ) 106 (1,654 ) (2,168 ) 171 (1,997 ) Total reclassifications for the period, net of tax $ 5,077 $ (304 ) $ 4,773 $ 3,405 $ (269 ) $ 3,136 The following table represents amounts reclassified from accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Nine Months Ended Nine Months Ended Amortization of Pension and Other Postretirement Benefits Items Amortization of Pension and Other Postretirement Benefits Items Actuarial Losses Recognized Prior Service Costs Recognized Total Actuarial Losses Recognized Prior Service Costs Recognized Total Affected Line in Condensed Consolidated Statement of Income: Non-operating expenses $ 20,510 $ (1,229 ) $ 19,281 $ 16,718 $ (1,320 ) $ 15,398 Tax (benefit) expense (5,279 ) 315 (4,964 ) (6,503 ) 513 (5,990 ) Total reclassifications for the period, net of tax $ 15,231 $ (914 ) $ 14,317 $ 10,215 $ (807 ) $ 9,408 The following table represents the activity included in accumulated other comprehensive income (loss) for the three months ended September 30, 2018 and 2017 : Three Months Ended Three Months Ended Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance July 1 $ (8,753 ) $ (236,008 ) $ (244,761 ) $ (7,548 ) $ (179,985 ) $ (187,533 ) Other comprehensive income before reclassifications 1,695 — 1,695 3,527 — 3,527 Amounts reclassified from accumulated other comprehensive income (net of tax $(1,654) and $(1,997)) — 4,773 4,773 — 3,136 3,136 Net current-period other comprehensive income 1,695 4,773 6,468 3,527 3,136 6,663 Ending balance September 30 $ (7,058 ) $ (231,235 ) $ (238,293 ) $ (4,021 ) $ (176,849 ) $ (180,870 ) The following table represents the activity included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Nine Months Ended Nine Months Ended Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance January 1, $ (4,602 ) $ (245,552 ) $ (250,154 ) $ (10,343 ) $ (186,257 ) $ (196,600 ) Other comprehensive (loss) income before reclassifications (2,456 ) — (2,456 ) 6,322 — 6,322 Amounts reclassified from accumulated other comprehensive income (net of tax $(4,964) and $(5,990)) — 14,317 14,317 — 9,408 9,408 Net current-period other comprehensive (loss) income (2,456 ) 14,317 11,861 6,322 9,408 15,730 Ending balance September 30 $ (7,058 ) $ (231,235 ) $ (238,293 ) $ (4,021 ) $ (176,849 ) $ (180,870 ) |
Assets Held For Sale
Assets Held For Sale | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held For Sale | ASSETS HELD FOR SALE We consider properties to be assets held for sale when all of the following criteria are met: (i) a formal commitment to a plan to sell a property has been made and exercised; (ii) the property is available for sale in its present condition; (iii) actions required to complete the sale of the property have been initiated; (iv) sale of the property is probable and we expect the sale will occur within one year; and (v) the property is being actively marketed for sale at a price that is reasonable given its current market value. Upon designation as an asset held for sale, we record the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and depreciation of the property ceases. There were no assets held for sale at September 30, 2018 or December 31, 2017 . During the three months ended September 30, 2017 there were no assets that were classified as assets held for sale. During the nine months ended September 30, 2017 , we sold assets classified as held for sale with a net book value of $464 and recorded a net gain on the assets held for sale of $197 in other income, net on the condensed consolidated statements of income. There were no assets held for sale at September 30, 2017 . We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. For assets classified as held and used, impairment may occur if projected undiscounted cash flows are not adequate to cover the carrying value of the assets. In such cases, additional analysis is conducted to determine the amount of the loss to be recognized. The impairment loss is calculated as the difference between the carrying amount of the asset and its estimated fair value. The analysis requires estimates of the amount and timing of projected cash flows and, where applicable, selection of an appropriate discount rate. Such estimates are critical in determining whether any impairment charge should be recorded and the amount of such charge if an impairment loss is deemed necessary. We recorded an impairment loss of $320 to account for the expected loss on an abandoned property that does not qualify as an asset held for sale, where the net book value of the property exceeded the estimated selling price less estimated selling expenses, during the three- and nine -month periods ended September 30, 2018 . There were no impairment losses recorded during the three- and nine -month periods ended September 30, 2017 . The impairment losses are included in other income, net in the condensed consolidated statements of income. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Graybar and our subsidiaries are subject to various claims, disputes, and administrative and legal matters incidental to our past and current business activities. As a result, contingencies may arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible loss. Estimated loss contingencies are accrued only if the loss is probable and the amount of the loss can be reasonably estimated. With respect to a particular loss contingency, it may be probable that a loss has occurred but the estimate of the loss is a wide range. If we deem an amount within the range to be a better estimate than any other amount within the range, that amount will be accrued. However, if no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued. While we believe that none of these claims, disputes, administrative, and legal matters will have a material adverse effect on our financial position, these matters are uncertain and we cannot at this time determine whether the financial impact, if any, of these matters will be material to our results of operations in the period in which such matters are resolved or a better estimate becomes available. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Graybar pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “Commission”) applicable to interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information presented not misleading. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect reported amounts. Our condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year ended December 31, 2017 , included in our latest Annual Report on Form 10-K. In the opinion of management, this quarterly report includes all adjustments, consisting of normal recurring accruals and adjustments, necessary for the fair presentation of the financial statements presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Graybar and its subsidiary companies. All material intercompany balances and transactions have been eliminated. The ownership interests that are held by owners other than the Company in subsidiaries consolidated by the Company are accounted for and reported as noncontrolling interests. |
Estimates | Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. |
Reclassification | Reclassifications Certain reclassifications have been made to prior years' financial information to conform to the December 31, 2017 presentation. |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the time of the filing of this Quarterly Report on Form 10-Q with the Commission. No material subsequent events have occurred since September 30, 2018 that require recognition or disclosure in these financial statements. |
Revenue Recognition | Revenue Recognition Sales revenue is recognized when control of the promised good or service is transferred to the customer. Sometimes product is purchased from the manufacturer and drop-shipped to the customer. We generally take control of the goods when shipped by the manufacturer and then recognize revenue when control of the product transfers to the customer. Revenues recognized are primarily for product sales, but may also include freight and handling charges. Our standard warehouse shipping terms are FOB shipping point, under which control passes to the customer at the time of shipment. We also earn revenue for professional services, general contracting services, and storage services. Service revenue represented less than 1% of gross sales for the three and nine months ended September 30, 2018 . Revenue is reported net of all taxes assessed by governmental authorities as a result of revenue-producing transactions, primarily sales tax. |
Outgoing Freight Expenses | Outgoing Freight Expenses We record certain outgoing freight expenses as a component of selling, general and administrative expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents We account for cash on hand, deposits in banks, and other short-term, highly liquid investments with an original maturity of three months or less as cash and cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables is secured by mechanic’s lien or payment bond rights. We maintain allowances to reflect the expected uncollectability of trade receivables based on past collection history and specific risks identified in the receivables portfolio. Although actual credit losses have historically been within management’s expectations, additional allowances may be required if the financial condition of our customers were to deteriorate. |
Merchandise Inventory | Merchandise Inventory Our inventory is stated at the lower of cost (generally determined using the last-in, first-out (“LIFO”) cost method) or market. LIFO accounting is a method of accounting that, compared with other inventory accounting methods, generally provides better matching of current costs with current sales. We make provisions for obsolete or excess inventories as necessary to reflect reductions in inventory value. |
Vendor Allowances | Vendor Allowances Our agreements with many of our suppliers provide for us to earn volume incentives based on purchases during the agreement period. Based on the provisions of our vendor agreements, we develop vendor accrual rates by estimating the point at which we will have completed our performance under the agreement and the deferred amounts will be earned. We perform analyses and review historical trends to ensure the deferred amounts earned are appropriately recorded. Certain vendor agreements contain purchase volume incentives that provide for increased funding when graduated purchase volumes are met. Amounts accrued throughout the year are based on estimates of future activity levels, and could be materially impacted if actual purchase volumes differ. Changes in the estimated amount of incentives are treated as changes in estimate and are recognized in earnings in the period in which the change in estimate occurs. In the event that the operating performance of our suppliers were to decline, however, there can be no assurance that amounts earned would be paid or that the volume incentives would continue to be included in future agreements. |
Property and Depreciation | Property and Depreciation Property, plant and equipment are recorded at cost. Depreciation is expensed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the asset's historical cost and included in property, plant and equipment, then depreciated over the useful life of the asset. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for maintenance and repairs are charged to expense when incurred, while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. |
Credit Risk | Credit Risk Financial instruments that potentially expose us to concentrations of credit risk consist primarily of trade receivables. We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables may be protected by mechanic’s lien or payment bond rights. We maintain allowances for potential credit losses, and such losses historically have been within management’s expectations. |
Fair Value | Fair Value We endeavor to utilize the best available information in measuring fair value. GAAP has established a fair value hierarchy, which prioritizes the inputs used in measuring fair value. The tiers in the hierarchy include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own data inputs and assumptions. We have used fair value measurements to value our pension plan assets. |
Foreign Currency Exchange Rate | Foreign Currency Exchange Rate The functional currency for our Canadian subsidiary is the Canadian dollar. Accordingly, its balance sheet amounts are translated at the exchange rates in effect at the end of each reporting period and its statements of income amounts are translated at the average rates of exchange prevailing during the current period. Currency translation adjustments are included in accumulated other comprehensive loss. |
Goodwill | Goodwill Our goodwill is not amortized, but rather tested annually for impairment. Goodwill is reviewed annually in the fourth quarter and/or when circumstances or other events might indicate that impairment may have occurred. We first perform a qualitative assessment of goodwill impairment. The qualitative assessment considers several factors including the excess fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market conditions, actual performance compared to forecasted performance, and the current business outlook. If the qualitative assessment indicates that it is more likely than not that goodwill is impaired, the reporting unit is then quantitatively tested for impairment. If a quantitative assessment is required, the fair value is determined using a variety of assumptions including estimated future cash flows of the reporting unit and applicable discount rates. |
Definite Lived Intangible Assets | Definite Lived Intangible Assets The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Customer relationships, trade names and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 3 to 20 years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the financial statements or tax returns. Uncertainty exists regarding tax positions taken in previously filed tax returns still subject to examination and positions expected to be taken in future returns. A deferred tax asset or liability results from the temporary difference between an item’s carrying value as reflected in the financial statements and its tax basis, and is calculated using enacted applicable tax rates. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance, when recorded, are included in the provision for income taxes in the condensed consolidated financial statements. We classify interest expense and penalties as part of our provision for income taxes based upon applicable federal and state interest/underpayment percentages. |
Other Postretirement Benefits | Other Postretirement Benefits We account for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of postretirement benefits. |
Pension Plan | Pension Plan We sponsor a noncontributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of the defined benefit pension plan. |
Non-Operating Expenses | Non-Operating Expenses Non-operating expenses are comprised of interest expense, net and non-service cost components of the net periodic benefit cost for the pension and other postretirement benefit plans. The non-service cost components include interest cost, expected return on plan assets, amortization of net actuarial gains/losses, and amortization of prior service costs/gains. |
New Accounting Standards | New Accounting Standards No new accounting standards that were issued or became effective during 2018 have had or are expected to have a material impact on our condensed consolidated financial statements, except those noted below: We adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update (“ASU” or “Update”) 2017-07, “Compensation - Retirement Benefits (Topic 715)” ("ASU 2017-07") on January 1, 2018 using the retrospective transition method. The updates to the standard require us to report the service cost component in the same line as other compensation costs arising from services rendered by employees during the reporting period. The other components of net benefit costs are presented in the income statement separately from the service cost and outside of a subtotal of income from operations. The impact to the three and nine months ended September 30, 2017 operating results within the condensed consolidated statements of income as a result of adopting ASU 2017-07 is presented in the tables below: Condensed Consolidated Statements of Income Three Months Ended As Reported Reclassification As Adjusted Selling, general and administrative expenses $ 260,752 $ (5,140 ) $ 255,612 Non-operating expenses 1,217 5,140 6,357 Nine Months Ended As Reported Reclassification As Adjusted Selling, general and administrative expenses $ 776,135 $ (15,421 ) $ 760,714 Non-operating expenses 3,082 15,421 18,503 On January 1, 2018, we adopted Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers." See Note 3, "Revenue", for further information. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” ("ASU 2016-02"). The core principle of Topic 842 requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. Although we anticipate the adoption of ASU 2016-02 will have a material impact on our consolidated balance sheets, we do not expect the adoption to have a material impact on our consolidated statements of income. We are completing our assessment of the potential impacts of ASU 2016-02 and still expect the most significant impact will be the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. We still expect our accounting for capital leases to remain substantially unchanged. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13") that makes minor changes to the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14") that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 for public entities. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15") requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years for public entities. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our financial statements, but do not expect it to have a material impact. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Item Effected [Line Items] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | Condensed Consolidated Statements of Income Three Months Ended As Reported Reclassification As Adjusted Selling, general and administrative expenses $ 260,752 $ (5,140 ) $ 255,612 Non-operating expenses 1,217 5,140 6,357 Nine Months Ended As Reported Reclassification As Adjusted Selling, general and administrative expenses $ 776,135 $ (15,421 ) $ 760,714 Non-operating expenses 3,082 15,421 18,503 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements | Condensed Consolidated Balance Sheet September 30, 2018 As Reported Balance without Adoption Effect of Change Merchandise inventory $ 661,530 $ 667,907 $ (6,377 ) Other current assets 26,692 26,969 (277 ) Other non-current liabilities 21,288 28,528 (7,240 ) Retained earnings 722,274 721,688 586 Condensed Consolidated Statements of Income Three Months Ended As Reported Balance without Adoption Effect of Change Net sales $ 1,870,251 $ 1,871,849 $ (1,598 ) Cost of merchandise sold 1,516,849 1,518,311 (1,462 ) Nine Months Ended As Reported Balance without Adoption Effect of Change Net sales $ 5,340,235 $ 5,343,529 $ (3,294 ) Cost of merchandise sold 4,324,258 4,327,342 (3,084 ) |
Disaggregation of Revenue | The following table summarizes the percentages of our net sales attributable to each of our vertical markets for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended 2018 2017 2018 2017 Construction 60.4 % 58.8 % 59.4 % 58.6 % Industrial & Utility 20.3 21.9 21.4 21.9 CIG 19.3 19.3 19.2 19.5 Total net sales 100.0 % 100.0 % 100.0 % 100.0 % |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | The net periodic benefit cost for the three and nine months ended September 30, 2018 and 2017 includes the following components: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost 2018 2017 2018 2017 Selling, general, and administrative expenses: Service cost $ 7,134 $ 6,604 $ 580 $ 582 Total selling, general, and administrative expenses $ 7,134 $ 6,604 $ 580 $ 582 Non-operating expenses: Interest cost 6,830 6,954 659 711 Expected return on plan assets (7,966 ) (7,658 ) — — Amortization of: Net actuarial loss 6,624 5,376 213 197 Prior service cost (gain) 79 105 (489 ) (545 ) Total non-operating expenses $ 5,567 $ 4,777 $ 383 $ 363 Net periodic benefit cost $ 12,701 $ 11,381 $ 963 $ 945 Pension Benefits Postretirement Benefits Nine Months Ended Nine Months Ended Components of Net Periodic Benefit Cost 2018 2017 2018 2017 Selling, general, and administrative expenses: Service cost $ 21,401 $ 19,812 $ 1,739 $ 1,745 Total selling, general, and administrative expenses $ 21,401 $ 19,812 $ 1,739 $ 1,745 Non-operating expenses: Interest cost 20,491 20,863 1,978 2,133 Expected return on plan assets (23,897 ) (22,973 ) — — Amortization of: Net actuarial loss 19,871 16,127 639 591 Prior service cost (gain) 238 315 (1,467 ) (1,635 ) Total non-operating expenses $ 16,703 $ 14,332 $ 1,150 $ 1,089 Net periodic benefit cost $ 38,104 $ 34,144 $ 2,889 $ 2,834 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table represents amounts reclassified from accumulated other comprehensive income (loss) for the three months ended September 30, 2018 and 2017 : Three Months Ended Three Months Ended Amortization of Pension and Other Postretirement Benefits Items Amortization of Pension and Other Postretirement Benefits Items Actuarial Losses Recognized Prior Service Costs Recognized Total Actuarial Losses Recognized Prior Service Costs Recognized Total Affected Line in Condensed Consolidated Statement of Income: Non-operating expenses $ 6,837 $ (410 ) $ 6,427 $ 5,573 $ (440 ) $ 5,133 Tax (benefit) expense (1,760 ) 106 (1,654 ) (2,168 ) 171 (1,997 ) Total reclassifications for the period, net of tax $ 5,077 $ (304 ) $ 4,773 $ 3,405 $ (269 ) $ 3,136 The following table represents amounts reclassified from accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Nine Months Ended Nine Months Ended Amortization of Pension and Other Postretirement Benefits Items Amortization of Pension and Other Postretirement Benefits Items Actuarial Losses Recognized Prior Service Costs Recognized Total Actuarial Losses Recognized Prior Service Costs Recognized Total Affected Line in Condensed Consolidated Statement of Income: Non-operating expenses $ 20,510 $ (1,229 ) $ 19,281 $ 16,718 $ (1,320 ) $ 15,398 Tax (benefit) expense (5,279 ) 315 (4,964 ) (6,503 ) 513 (5,990 ) Total reclassifications for the period, net of tax $ 15,231 $ (914 ) $ 14,317 $ 10,215 $ (807 ) $ 9,408 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table represents the activity included in accumulated other comprehensive income (loss) for the three months ended September 30, 2018 and 2017 : Three Months Ended Three Months Ended Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance July 1 $ (8,753 ) $ (236,008 ) $ (244,761 ) $ (7,548 ) $ (179,985 ) $ (187,533 ) Other comprehensive income before reclassifications 1,695 — 1,695 3,527 — 3,527 Amounts reclassified from accumulated other comprehensive income (net of tax $(1,654) and $(1,997)) — 4,773 4,773 — 3,136 3,136 Net current-period other comprehensive income 1,695 4,773 6,468 3,527 3,136 6,663 Ending balance September 30 $ (7,058 ) $ (231,235 ) $ (238,293 ) $ (4,021 ) $ (176,849 ) $ (180,870 ) The following table represents the activity included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Nine Months Ended Nine Months Ended Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance January 1, $ (4,602 ) $ (245,552 ) $ (250,154 ) $ (10,343 ) $ (186,257 ) $ (196,600 ) Other comprehensive (loss) income before reclassifications (2,456 ) — (2,456 ) 6,322 — 6,322 Amounts reclassified from accumulated other comprehensive income (net of tax $(4,964) and $(5,990)) — 14,317 14,317 — 9,408 9,408 Net current-period other comprehensive (loss) income (2,456 ) 14,317 11,861 6,322 9,408 15,730 Ending balance September 30 $ (7,058 ) $ (231,235 ) $ (238,293 ) $ (4,021 ) $ (176,849 ) $ (180,870 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Item Effected [Line Items] | ||||
Selling, general and administrative expenses | $ 276,345 | $ 255,612 | $ 810,474 | $ 760,714 |
Non-operating expenses | $ 7,828 | 6,357 | $ 22,841 | 18,503 |
As Reported | ||||
Item Effected [Line Items] | ||||
Selling, general and administrative expenses | 260,752 | 776,135 | ||
Non-operating expenses | 1,217 | 3,082 | ||
Reclassification | ||||
Item Effected [Line Items] | ||||
Selling, general and administrative expenses | (5,140) | (15,421) | ||
Non-operating expenses | $ 5,140 | $ 15,421 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Income tax expense | $ 4,019 | $ 19,761 | $ 28,708 | $ 54,220 | ||
Net sales | (1,870,251) | $ (1,700,843) | (5,340,235) | $ (4,944,294) | ||
Increase in retained earnings | 722,274 | 722,274 | $ 619,916 | |||
Other current assets | 26,692 | 26,692 | $ 34,227 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Income tax expense | 277 | |||||
Net sales | (1,598) | (3,294) | ||||
Increase in retained earnings | 586 | 586 | $ 798 | |||
Other current assets | $ (277) | $ (277) |
Revenue - Adoption of ASC 605 (
Revenue - Adoption of ASC 605 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Item Effected [Line Items] | ||||||
Document Period End Date | Sep. 30, 2018 | |||||
Cost merchandise sold | $ 1,516,849 | $ 1,378,859 | $ 4,324,258 | $ 3,999,588 | ||
Merchandise inventory | 661,530 | 661,530 | $ 579,350 | |||
Other current assets | 26,692 | 26,692 | 34,227 | |||
Other non-current liabilities | 21,288 | 21,288 | 30,361 | |||
Retained Earnings | 722,274 | 722,274 | $ 619,916 | |||
Revenue, Net | 1,870,251 | $ 1,700,843 | 5,340,235 | $ 4,944,294 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||||
Item Effected [Line Items] | ||||||
Cost merchandise sold | 1,518,311 | 4,327,342 | ||||
Merchandise inventory | 667,907 | 667,907 | ||||
Other current assets | 26,969 | 26,969 | ||||
Other non-current liabilities | 28,528 | 28,528 | ||||
Retained Earnings | 721,688 | 721,688 | ||||
Revenue, Net | 1,871,849 | 5,343,529 | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Item Effected [Line Items] | ||||||
Cost merchandise sold | (1,462) | (3,084) | ||||
Merchandise inventory | (6,377) | (6,377) | ||||
Other current assets | (277) | (277) | ||||
Other non-current liabilities | (7,240) | (7,240) | ||||
Retained Earnings | 586 | 586 | $ 798 | |||
Revenue, Net | $ 1,598 | $ 3,294 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - Revenue from Contract with Customer [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 100.00% | 100.00% | 100.00% | 100.00% |
CIG | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 19.30% | 19.30% | 19.20% | 19.50% |
Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 60.40% | 58.80% | 59.40% | 58.60% |
CIG | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 20.30% | 21.90% | 21.40% | 21.90% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Finalized Tax Benefit Related to Deferred Tax Balances Previously Recorded Related to Tax Cuts and Jobs Act | $ 9,157 | |
Final Tax Benefit for One Time Transition Tax Related to Tax Cuts and Jobs Act | 1,779 | |
Unrecognized tax benefits | 2,674 | $ 2,318 |
Accrued interest and penalties | $ 1,104 | $ 983 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Equity [Abstract] | |||||
Percent of entity owned by current and retired employees | 100.00% | ||||
Percent of entity held in voting trust | 83.00% | 83.00% | |||
Common, stated value (in dollars per share) | $ 20 | $ 20 | $ 20 | ||
Dividends, Common Stock, Cash | $ 5,850 | $ 5,286 | $ 17,587 | $ 15,910 | |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - USD ($) | Aug. 10, 2018 | Jun. 06, 2014 | Sep. 30, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 504,000,000 | $ 380,357,000 | ||
Line of Credit | Credit Agreement | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Term | 5 years | |||
Maximum borrowing capacity | $ 550,000,000 | |||
Accordion feature, higher borrowing capacity option | 300,000,000 | |||
Line of Credit | Credit Agreement | Letter of Credit Sub-Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 50,000,000 | |||
Line of Credit | Credit Agreement | Bridge Loan | Graybar Canada | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 100,000,000 | |||
Line of Credit | Credit Agreement | Bridge Loan | UNITED STATES | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 50,000,000 | |||
Line of Credit | Credit Agreement | Bridge Loan | CANADA | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | |||
Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Term | 5 years | |||
Maximum borrowing capacity | $ 750,000,000 | |||
Accordion feature, higher borrowing capacity option | $ 375,000,000 | |||
Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.40% | |||
Line of Credit | Amended Credit Agreement [Member] | Letter of Credit Sub-Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Line of Credit | Amended Credit Agreement [Member] | Bridge Loan | Graybar Canada | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 100,000,000 | |||
Line of Credit | Amended Credit Agreement [Member] | Bridge Loan | UNITED STATES | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 75,000,000 | |||
Line of Credit | Amended Credit Agreement [Member] | Bridge Loan | CANADA | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | |||
Line of Credit | Amended Credit Agreement [Member] | Letter of Credit | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 1.00% | |||
Line of Credit | Amended Credit Agreement [Member] | Letter of Credit | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 1.60% | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding, amount | 5,621,000 | 5,371,000 | ||
Letter of Credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | $ 0 | ||
Base Rate [Member] | Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | base rate | |||
Base Rate [Member] | Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||
Base Rate [Member] | Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.60% | |||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit | Amended Credit Agreement [Member] | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.60% |
Debt - Short-Term Borrowings (D
Debt - Short-Term Borrowings (Details) - USD ($) $ in Thousands | Jun. 06, 2014 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||||
Short-term borrowings | $ 246,000 | $ 246,000 | $ 169,643 | |||
Interest expense, net | 1,878 | $ 1,217 | 4,988 | $ 3,082 | ||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term borrowings | 246,000 | 246,000 | $ 169,643 | |||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term borrowings | 140,000 | 112,292 | 140,000 | 112,292 | ||
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term borrowings | $ 249,000 | $ 229,782 | $ 249,000 | $ 229,782 | ||
Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Term | 5 years |
Debt - Private Placement Shelf
Debt - Private Placement Shelf Agreement (Details) - Maximum - Senior Notes $ in Thousands | Aug. 10, 2018USD ($) |
Prudential Private Placement Shelf Agreement | |
Debt Instrument [Line Items] | |
Agreement face amount | $ 100,000 |
MetLife Private Placement Shelf Agreement | |
Debt Instrument [Line Items] | |
Agreement face amount | $ 100,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||
Requisite service period | 3 years | |||
Contributions by employer | $ 60,001 | $ 24,001 | $ 81,624 | $ 61,587 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Selling, General and Administrative Expense | $ 276,345 | $ 255,612 | $ 810,474 | $ 760,714 |
Non-operating Expense | 7,828 | 6,357 | 22,841 | 18,503 |
Pension Plans, Defined Benefit | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Service cost | 7,134 | 6,604 | 21,401 | 19,812 |
Selling, General and Administrative Expense | 7,134 | 6,604 | 21,401 | 19,812 |
Interest cost | 6,830 | 6,954 | 20,491 | 20,863 |
Expected return on plan assets | (7,966) | (7,658) | (23,897) | (22,973) |
Amortization of: Net actuarial loss | 6,624 | 5,376 | 19,871 | 16,127 |
Amortization of: Prior service cost (gain) | 79 | 105 | 238 | 315 |
Non-operating Expense | 5,567 | 4,777 | 16,703 | 14,332 |
Net periodic benefit cost | 12,701 | 11,381 | 38,104 | 34,144 |
Other Postretirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Service cost | 580 | 582 | 1,739 | 1,745 |
Selling, General and Administrative Expense | 580 | 582 | 1,739 | 1,745 |
Interest cost | 659 | 711 | 1,978 | 2,133 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: Net actuarial loss | 213 | 197 | 639 | 591 |
Amortization of: Prior service cost (gain) | (489) | (545) | (1,467) | (1,635) |
Non-operating Expense | 383 | 363 | 1,150 | 1,089 |
Net periodic benefit cost | $ 963 | $ 945 | $ 2,889 | $ 2,834 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax (benefit) expense | $ 4,019 | $ 19,761 | $ 28,708 | $ 54,220 |
Total reclassifications for the period, net of tax | (53,672) | (29,554) | (119,417) | (80,678) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating expenses | 6,427 | 5,133 | 19,281 | 15,398 |
Tax (benefit) expense | (1,654) | (1,997) | (4,964) | (5,990) |
Total reclassifications for the period, net of tax | 4,773 | 3,136 | 14,317 | 9,408 |
Actuarial Losses Recognized | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating expenses | 6,837 | 5,573 | 20,510 | 16,718 |
Tax (benefit) expense | (1,760) | (2,168) | (5,279) | (6,503) |
Total reclassifications for the period, net of tax | 5,077 | 3,405 | 15,231 | 10,215 |
Prior Service Costs Recognized | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating expenses | (410) | (440) | (1,229) | (1,320) |
Tax (benefit) expense | 106 | 171 | 315 | 513 |
Total reclassifications for the period, net of tax | $ (304) | $ (269) | $ (914) | $ (807) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (244,761) | $ (187,533) | $ (250,154) | $ (196,600) |
Other comprehensive income before reclassifications | 1,695 | 3,527 | (2,456) | 6,322 |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 4,773 | 3,136 | 14,317 | 9,408 |
Net current-period other comprehensive income | 6,468 | 6,663 | 11,861 | 15,730 |
Ending balance | (238,293) | (180,870) | (238,293) | (180,870) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (1,654) | (1,997) | (4,964) | (5,990) |
Foreign Currency | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (8,753) | (7,548) | (4,602) | (10,343) |
Other comprehensive income before reclassifications | 1,695 | 3,527 | (2,456) | 6,322 |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income | 1,695 | 3,527 | (2,456) | 6,322 |
Ending balance | (7,058) | (4,021) | (7,058) | (4,021) |
Pension and Other Postretirement Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (236,008) | (179,985) | (245,552) | (186,257) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 4,773 | 3,136 | 14,317 | 9,408 |
Net current-period other comprehensive income | 4,773 | 3,136 | 14,317 | 9,408 |
Ending balance | $ (231,235) | $ (176,849) | $ (231,235) | $ (176,849) |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on impairment of property | $ 0 | $ 0 | |||
Losses on impairment of property | $ 320 | $ 320 | 0 | ||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Long lived assets held for sale | $ 0 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Long lived assets held for sale | 0 | 0 | 0 | 0 | |
Net book value of sold assets held for sale | 0 | 0 | 0 | 464 | |
Net gain(loss) on sold assets held for sale | $ 0 | $ 0 | $ 0 | $ 197 |