W.W. Grainger (GWW) 10-Q 29 Oct 09 2009 Q3 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Thousands, except Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net sales	$1,589,665	$1,839,475	$4,588,176	$5,257,377
Cost of merchandise sold	929,720	1,097,127	2,673,848	3,129,218
Gross profit	659,945	742,348	1,914,328	2,128,159
Warehousing, marketing and administrative expenses	473,225	510,891	1,414,465	1,526,044
Operating earnings	186,720	231,457	499,863	602,115
Other income and (expense):
Interest income	374	1,602	1,048	3,642
Interest expense	(2,198)	(4,393)	(6,734)	(9,591)
Equity in net income of unconsolidated entities - net	578	755	1,361	2,835
Gain on previously held equity interest - net	47,420	0	47,343	0
Other non-operating income	602	60	838	800
Other non-operating expense	(76)	(791)	(205)	(231)
Total other income and (expense)	46,700	(2,767)	43,651	(2,545)
Earnings before income taxes	233,420	228,690	543,514	599,570
Income taxes	88,856	88,667	210,106	232,130
Net earnings	$144,564	$140,023	$333,408	$367,440
Earnings per share
Earnings per share: Basic	1.91	1.8	4.41	4.68
Earnings per share: Diluted	1.88	1.77	4.34	4.6
Weighted average number of shares outstanding:
Weighted average number of shares outstanding: Basic	74,047,973	75,967,774	73,919,924	76,813,709
Weighted average number of shares outstanding: Diluted	75,202,845	77,407,743	74,972,410	78,226,698
Cash dividends paid per share	0.46	0.4	1.32	1.15

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net earnings	$144,564	$140,023	$333,408	$367,440
Other comprehensive earnings (losses):
Foreign currency translation adjustments, net of tax (expense) benefit of $(4,611), $2,534, $(6,962), and $4,133, respectively	27,925	(18,636)	45,881	(26,075)
Comprehensive earnings	172,489	121,387	379,289	341,365
Less: Foreign currency translation adjustment attributable to noncontrolling interest	(774)	0	(774)	0
Comprehensive earnings attributable to W.W. Grainger, Inc.	$171,715	$121,387	$378,515	$341,365

PARENTHETICAL DATA TO THE CONDE

PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Other comprehensive earnings (losses):
Foreign currency translation adjustments, tax (expense) benefit	($4,611)	$2,534	($6,962)	$4,133

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$672,035	$396,290
Accounts receivable (less allowances for doubtful accounts of $28,358 and $26,481, respectively	638,531	589,416
Inventories	851,478	1,009,932
Prepaid expenses and other assets	75,064	95,915
Deferred income taxes	47,686	52,556
Total current assets	2,284,794	2,144,109
PROPERTY, BUILDINGS AND EQUIPMENT	2,216,668	2,131,863
Less accumulated depreciation and amortization	1,278,383	1,201,552
Property, buildings and equipment - net	938,285	930,311
DEFERRED INCOME TAXES	87,213	97,442
INVESTMENT IN UNCONSOLIDATED ENTITIES	3,341	20,830
GOODWILL	328,131	213,159
OTHER ASSETS AND INTANGIBLES - NET	103,285	109,566
TOTAL ASSETS	3,745,049	3,515,417
CURRENT LIABILITIES
Short-term debt	33,650	19,960
Current maturities of long-term debt	46,257	21,257
Trade accounts payable	279,660	290,802
Accrued compensation and benefits	124,033	162,380
Accrued contributions to employees' profit sharing plans	91,151	146,922
Accrued expenses	96,302	118,633
Income taxes payable	2,791	1,780
Total current liabilities	673,844	761,734
LONG-TERM DEBT (less current maturities)	454,895	488,228
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES	34,211	33,219
ACCRUED EMPLOYMENT-RELATED BENEFITS	218,874	198,431
SHAREHOLDERS' EQUITY
Common Stock - $0.50 par value - 300,000,000 shares authorized; issued 109,659,219 shares	54,830	54,830
Additional contributed capital	586,516	564,728
Retained earnings	3,904,086	3,670,726
Accumulated other comprehensive earnings (losses)	6,582	(38,525)
Treasury stock, at cost - 35,343,784 and 34,878,190 shares, respectively	(2,250,474)	(2,217,954)
Total W.W. Grainger, Inc. shareholders' equity	2,301,540	2,033,805
NONCONTROLLING INTEREST	61,685	0
Total shareholders' equity	2,363,225	2,033,805
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$3,745,049	$3,515,417

2_PARENTHETICAL DATA TO THE CON

PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, except Share data	Sep. 30, 2009	Dec. 31, 2008
CURRENT ASSETS
Allowance for doubtful accounts receivable	$28,358	$26,481
SHAREHOLDERS' EQUITY
Cumulative Preferred Stock - $5 par value	5	5
Cumulative Preferred Stock - 12,000,000 shares authorized	12,000,000	12,000,000
Common Stock - $0.50 par value	0.5	0.5
Common Stock - 300,000,000 shares authorized	300,000,000	300,000,000
Common Stock - 109,659,219 shares issued	109,659,219	109,659,219
Treasury stock, shares	35,343,784	34,878,190

3_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$333,408	$367,440
Provision for losses on accounts receivable	11,165	11,867
Deferred income taxes and tax uncertainties	9,131	(18,432)
Depreciation and amortization	104,093	100,765
Stock-based compensation	33,170	36,655
Tax benefit of stock incentive plans	1,206	1,612
Net losses (gains) on sales of property, buildings and equipment	50	(4,760)
(Income) from unconsolidated entities - net	(1,361)	(2,835)
(Gain) on previously held equity interest - net	(47,343)	0
Change in operating assets and liabilities - net of business acquisitions
(Increase) decrease in accounts receivable	(23,390)	(125,936)
(Increase) decrease in inventories	194,396	(17,360)
(Increase) decrease in prepaid expenses and other assets	24,991	645
Increase (decrease) in trade accounts payable	(33,064)	13,069
Increase (decrease) in other current liabilities	(112,810)	(42,191)
Increase (decrease) in current income taxes payable	(1,056)	6,466
Increase (decrease) in accrued employment-related benefit cost	20,395	9,498
Other - net	(3,242)	(1,186)
Net cash provided by operating activities	509,739	335,317
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, buildings and equipment - net of dispositions	(88,152)	(131,590)
Net cash paid for business acquisitions	0	(33,995)
Cash acquired, net of cash paid for business acquisitions	10,428	0
Investments in unconsolidated entities	0	(6,486)
Other - net	826	19,211
Net cash used in investing activities	(76,898)	(152,860)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in short-term debt	0	(95,356)
Borrowings under line of credit	38,971	19,136
Payments against line of credit	(37,367)	(8,799)
Proceeds from issuance of long-term debt	0	500,000
Payment of long-term debt	(8,333)	0
Stock options exercised	59,940	41,103
Excess tax benefits from stock-based compensation	12,588	11,733
Purchase of treasury stock	(127,696)	(307,552)
Cash dividends paid	(100,049)	(90,384)
Net cash (used in) provided by financing activities	(161,946)	69,881
Exchange rate effect on cash and cash equivalents	4,850	(1,358)
NET INCREASE IN CASH AND CASH EQUIVALENTS	275,745	250,980
Cash and cash equivalents at beginning of year	396,290	113,437
Cash and cash equivalents at end of period	$672,035	$364,417

BACKGROUND AND BASIS OF PRESENT

BACKGROUND AND BASIS OF PRESENTATION
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
BACKGROUND AND BASIS OF PRESENTATION	W.W. Grainger, Inc. distributes facilities maintenance products and provides services used by businesses and institutions primarily in the United States, Canada and Mexico to keep their facilities and equipment running.In this report, the words Company or Grainger mean W.W. Grainger, Inc. and its subsidiaries. The Condensed Consolidated Financial Statements of the Company and the related notes are unaudited and should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2008, included in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). The Condensed Consolidated Balance Sheet as of December 31, 2008, has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited financial information reflects all adjustments (primarily consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of the statements contained herein. The Company has evaluated subsequent events through October 29, 2009, the date the financial statements were issued.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NEW ACCOUNTING STANDARDS In April 2009, the Financial Accounting Standards Board (FASB) issued FASB Staff Position FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies, which is codified primarily in Accounting Standards Codification (ASC) 805.ASC 805 requires that assets acquired and liabilities assumed in a business combination that arise from contingencies be recognized at fair value if fair value can be reasonably estimated.If fair value of such an asset or liability cannot be reasonably estimated, the asset or liability would generally be recognized in accordance with FASB Statement No. 5, Accounting for Contingencies, and FASB Interpretation No. 14, Reasonable Estimation of the Amount of a Loss, which are codified primarily in ASC 450. ASC 805 is effective for assets or liabilities arising from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.The adoption of ASC 805 did not have a material effect on the Companys results of operations or financial position. In April 2009, the FASB issued three Staff Positions intended to provide application guidance and revise the disclosures regarding fair value measurements and impairment of securities.A summary of each Staff Position is as follows: - FSP 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, codified primarily in ASC 820, addresses the determination of fair values when there is no active market or where the price inputs represent distressed sales.ASC 820 reaffirms the view in SFASNo. 157 that the objective of fair value measurement is to reflect an assets sale price in an orderly transaction at the date of the financial statements. - FSP 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, codified primarily in ASC 825, enhances consistency in financial reporting by increasing the frequency of fair value disclosures to a quarterly basis for any financial instruments for which it is practicable to estimate the value, whether recognized or not recognized in the balance sheet. - FSP 115-2, FAS 124-2 and EITF 99-20-2, Recognition and Presentation of Other-Than-Temporary Impairments, codified primarily in ASC 320, provides additional guidance designed to create greater consistency to the timing of impairment recognition and provide greater clarity about the credit and noncredit components of impaired debt securities that are not expected to be sold. ASC 820, 825 and 320 are effective for interim and annual periods ending after June 15, 2009.The adoption of these ASCs did not have a material effect on the Companys results of operations or financial position. In May 2009, the FASB issued Statement of Financial Accounting Standards No. 165, Subsequent Events, codified primarily in ASC 855, to provide authoritative accounting literature for subsequent events which was previously addressed only in auditing literature.ASC 855 addr

ACQUISITIONS

ACQUISITIONS
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
ACQUISITIONS	In June 2009, the Company acquired the remaining 50.1% of its joint venture in India, Grainger Industrial Supply India Private Limited (Grainger India), formerly known as Asia Pacific Brands India Private Limited, for $1.2 million.Grainger India had revenue of approximately US$32 million for its fiscal year ended March 31, 2009.The Company originally paid $5.4 million for its ownership interest which was effective July 21, 2008.At the time of the original investment, the Company and its joint venture partner each made a $1.1 million capital infusion which was intended to help grow the business.In the fourth quarter of 2008, the Company wrote-off its investment in this joint venture due to the economic slowdown in India and the loss of a major supplier which accounted for approximately 25% of the joint ventures annual revenue.These conditions severely affected Grainger Indias ability to secure additional financing to meet its current obligations and continue as a going concern.Up through the time that the investment was written-off, the Company used the equity method to account for this investment.During 2009 Grainger Indias business has improved.It has been able to streamline its operations, strengthen its management and enhance its supplier base.The results of Grainger India are now included in the Companys consolidated results from the date of acquisition. On September 14, 2009 the Company acquired 380,000 common shares of MonotaRO Co., Ltd. (MonotaRO) for approximately $4 million increasing its interest from 48 percent to 53 percent.Established in 2000 in Osaka, MonotaRO is a direct marketer of maintenance, repair and operating (MRO) supplies to businesses in Japan.MonotaRO is listed on the Mothers section of the Tokyo Stock Exchange.MonotaRO has successfully innovated in the Japanese MRO market, the second largest industrial market in the world, offering more than 110,000 products to more than 320,000 customers.In 2008, MonotaRO had revenues of $136 million and operating earnings of $11 million.As a result of the Company obtaining controlling voting interest over MonotaRO, the Company consolidated MonotaROs balance sheet as of September 30, 2009.MonotaROs earnings will be reported on a one month lag beginning October 2009.The Company previously accounted for its 48 percent interest in MonotaRO as an equity method investment.Upon obtaining the controlling interest, the previously held equity interest was remeasured to a fair value of $62 million, resulting in a pre-tax gain of $47 million ($28 million after tax) reported in the Companys consolidated statement of earnings.The gain includes $3 million reclassified from Accumulated other comprehensive earnings.Both the gain on the previously held equity investment and the fair value of the noncontrolling interest in MonotaRO of $61 million were based on the closing market price of MonotaROs common stock on the acquisition date.The Company preliminarily recorded intangibles, including Goodwill, from this transaction of $97 million.The purchase price allocation has not been completed and is subject to change as the Company obtains additional information during the measurement period.The p

DIVIDEND

DIVIDEND
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
DIVIDEND	On October 28, 2009, the Companys Board of Directors declared a quarterly dividend of 46 cents per share, payable December 1, 2009, to shareholders of record on November 9, 2009.

WARRANTY RESERVES

WARRANTY RESERVES
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
WARRANTY RESERVES	The Company generally warrants the products it sells against defects for one year.For a significant portion of warranty claims, the manufacturer of the product is responsible for the expenses associated with this warranty program.For warranty expenses not covered by the manufacturer, the Company provides a reserve for future costs based on historical experience.The warranty reserve activity was as follows (in thousands of dollars): Nine Months Ended September 30, 2009 2008 Beginning balance $ 3,218 $ 3,442 Returns (9,005 ) (10,218 ) Provision 8,920 10,495 Ending balance $ 3,133 $ 3,719

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
EMPLOYEE BENEFITS	Retirement Plans A majority of the Companys employees are covered by a noncontributory profit sharing plan.This plan provides for annual employer contributions based upon a formula related primarily to earnings before federal income taxes with a minimum contribution of 8% and a maximum contribution of 18% of total eligible compensation paid to all eligible employees. Postretirement Benefits The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its employees and their dependents should they elect to maintain such coverage upon retirement. Covered employees become eligible for participation when they qualify for retirement while working for the Company.Participation in the plan is voluntary and requires participants to make contributions toward the cost of the plan, as determined by the Company. The net periodic benefit costs charged to operating expenses, which are valued at the measurement date of January 1 and recognized evenly throughout the year, consisted of the following components (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 Service cost $ 3,077 $ 2,425 $ 9,229 $ 7,275 Interest cost 2,683 2,373 8,048 7,118 Expected return on assets (851 ) (1,117 ) (2,552 ) (3,349 ) Amortization of transition asset (36 ) (36 ) (107 ) (108 ) Amortization of unrecognized losses 1,034 328 3,101 984 Amortization of prior service credits (304 ) (304 ) (911 ) (912 ) Net periodic benefit costs $ 5,603 $ 3,669 $ 16,808 $ 11,008 The Company has established a Group Benefit Trust to fund the plan and process benefit payments.The funding of the trust is an estimated amount, which is intended to allow the maximum deductible contribution under the Internal Revenue Code of 1986 (IRC), as amended.There are no minimum funding requirements and the Company intends to follow its practice of funding the maximum deductible contribution under the IRC.During the three and nine months ended September 30, 2009, the Company contributed $1.1 million and $2.9 million, respectively, to the trust.

SEGMENT INFORMATION

SEGMENT INFORMATION
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
SEGMENT INFORMATION	Effective January 1, 2009 the Company revised its segment disclosure.The Company has two reportable segments:the United States and Canada.In the first quarter of 2009, the Company integrated the Lab Safety Supply business into the Grainger Industrial Supply business and results are now reported under the United States segment.The Canada segment reflects the results for Acklands Grainger Inc., the Companys Canadian branch-based distribution business.Other Businesses include the following:MonotaRO Co., Ltd. (Japan), Grainger, S.A. de C.V. (Mexico), Grainger Industrial Supply India Private Limited (India), Grainger Caribe Inc. (Puerto Rico), Grainger China LLC (China) and Grainger Panama S.A. (Panama).These businesses generate revenue through the distribution of facilities maintenance products.Prior year segment amounts have been restated in a consistent manner.Following is a summary of segment results (in thousands of dollars): Three Months Ended September 30, 2009 United States Canada Other Businesses Total Total net sales $ 1,398,576 $ 166,262 $ 34,901 $ 1,599,739 Intersegment net sales (9,981 ) (31 ) (62 ) (10,074 ) Net sales to external customers $ 1,388,595 $ 166,231 $ 34,839 $ 1,589,665 Segment operating earnings (losses) $ 204,439 $ 8,361 $ (1,958 ) $ 210,842 Three Months Ended September 30, 2008 United States Canada Other Businesses Total Total net sales $ 1,629,414 $ 190,754 $ 31,307 $ 1,851,475 Intersegment net sales (11,671 ) (127 ) (202 ) (12,000 ) Net sales to external customers $ 1,617,743 $ 190,627 $ 31,105 $ 1,839,475 Segment operating earnings (losses) $ 241,560 $ 14,168 $ (2,729 ) $ 252,999 Nine Months Ended September 30, 2009 United States Canada Other Businesses Total Total net sales $ 4,061,108 $ 470,781 $ 85,334 $ 4,617,223 Intersegment net sales (28,631 ) (124 ) (292 ) (29,047 ) Net sales to external customers $ 4,032,477 $ 470,657 $ 85,042 $ 4,588,176 Segment operating earnings (losses) $ 554,157 $ 24,055 $ (8,176 ) $ 570,036 Nine Months Ended September 30, 2008 United States Canada Other Businesses Total Total net sales $ 4,641,690 $ 565,924 $ 86,379 $ 5,293,993 Intersegment net sales (36,059 ) (127 ) (430 ) (36,616 ) Net sales to external customers $ 4,605,631 $ 565,797 $ 85,949 $ 5,257,377 Segment operating earnings (losses) $ 646,414 $ 41,856 $ (8,880 ) $ 679,390 United States Canada Other Businesses Total Segment assets: September 30, 20

EARNINGS PER SHARE

EARNINGS PER SHARE
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
EARNINGS PER SHARE	In June 2008, the FASB issued Staff Position EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, codified primarily in ASC 260.The authoritative guidance states that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.Upon adoption, a company is required to retrospectively adjust its earnings per share data presentation to conform with the provisions of the guidance.The authoritative guidance is effective for fiscal years beginning after December 15, 2008. On January 1, 2009, the Company adopted the authoritative guidance.The Companys unvested share-based payment awards, such as certain Performance Shares, Restricted Stock and Restricted Stock Units that contain nonforfeitable rights to dividends, meet the criteria of a participating security as defined by ASC 260.The adoption has changed the methodology of computing the Companys earnings per share to the two-class method from the treasury stock method.As a result, the Company has restated previously reported earnings per share.This change has not affected previously reported consolidated net earnings or net cash flows from operations.Under the two-class method, earnings are allocated between common stock and participating securities.ASC 260 provides guidance that the presentation of basic and diluted earnings per share is required only for each class of common stock and not for participating securities.As such, the Company will present basic and diluted earnings per share for its one class of common stock. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period.The Companys reported net earnings is reduced by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders for purposes of calculating earnings per share. The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock or the two-class method.The Company has determined the two-class method to be the more dilutive.As such, the earnings allocated to common stock shareholders in the basic earnings per share calculation is adjusted for the reallocation of undistributed earnings to participating securities as prescribed by ASC 260 to arrive at the earnings allocated to common stock shareholders for calculating the diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in thousands of dollars, except for share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 Net earnings as reported $ 144,564 $ 140,023 $ 333,408 $ 367,440 Less: Distributed earnings available to participating

CONTINGENCIES AND LEGAL MATTERS

CONTINGENCIES AND LEGAL MATTERS
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
CONTINGENCIES AND LEGAL MATTERS	As previously reported, in December 2007, the Company received a letter from the Commercial Litigation Branch of the Civil Division of the Department of Justice (the DOJ) regarding the Companys contract with the United States General Services Administration (the GSA).The letter suggested that the Company had not complied with its disclosure obligations and the contracts pricing provisions, and had potentially overcharged government customers under the contract. Discussions relating to the Companys compliance with its disclosure obligations and the contracts pricing provisions are ongoing.The timing and outcome of these discussions are uncertain and could include settlement or civil litigation by the DOJ to recover, among other amounts, treble damages and penalties under the False Claims Act.While this matter is not expected to have a material adverse effect on the Companys financial position, an unfavorable resolution could result in significant payments by the Company.The Company continues to believe that it has complied with the GSA contract in all material respects.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	9 Months Ended Sep. 30, 2009
Notes to Financial Statements [Abstract]
SUBSEQUENT EVENTS	On October 13, 2009 the Company acquired Imperial Supplies, LLC (Imperial), a distributor of fleet maintenance products to the transportation industry, headquartered in Green Bay, Wisconsin.Imperial had $67 million in sales in 2008.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Jun. 30, 2009
Entity Information [Line Items]
Entity Registrant Name	GRAINGER W W INC,
Entity Central Index Key	0000277135
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$5,681,567,963
Entity Common Stock, Shares Outstanding	74,315,435