W.W. Grainger (GWW) 10-Q 30 Oct 14 2014 Q3 Quarterly report Financial data

DOCUMENT_AND_ENTITY_INFORMATIO

DOCUMENT AND ENTITY INFORMATION (USD $)	9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Document Information [Line Items]	'	'
Entity Registrant Name	'GRAINGER W W INC	'
Entity Central Index Key	'0000277135	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	68,183,321	'
Entity Well-known Seasoned Issuer	'Yes	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Public Float	'	$16,485,186,075

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net sales	$2,562,263	$2,398,530	$7,453,994	$7,060,526
Cost of merchandise sold	1,459,479	1,347,164	4,194,553	3,930,440
Gross profit	1,102,784	1,051,366	3,259,441	3,130,086
Warehousing, marketing and administrative expenses	717,271	704,651	2,178,838	2,089,995
Operating earnings	385,513	346,715	1,080,603	1,040,091
Other income and (expense):	'	'	'	'
Interest income	630	822	1,684	2,516
Interest expense	-2,377	-3,734	-7,997	-10,102
Other non-operating income	87	381	431	2,527
Other non-operating expense	-1,218	-323	-2,048	-1,728
Total other expense	-2,878	-2,854	-7,930	-6,787
Earnings before income taxes	382,635	343,861	1,072,673	1,033,304
Income taxes	149,585	130,786	411,491	384,948
Net earnings	233,050	213,075	661,182	648,356
Less: Net earnings attributable to noncontrolling interest	2,728	2,286	8,292	8,069
Net earnings attributable to W.W. Grainger, Inc.	$230,322	$210,789	$652,890	$640,287
Earnings per share:	'	'	'	'
Basic (in dollars per share)	$3.33	$2.99	$9.42	$9.06
Diluted (in dollars per share)	$3.30	$2.95	$9.30	$8.92
Weighted average number of shares outstanding:	'	'	'	'
Basic (in shares)	68,296,018	69,461,060	68,481,681	69,562,192
Diluted (in shares)	69,111,945	70,547,071	69,375,083	70,706,688
Cash dividends paid per share (in dollars per share)	$1.08	$0.93	$3.09	$2.66

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net earnings	$233,050	$213,075	$661,182	$648,356
Other comprehensive earnings (losses):	'	'	'	'
Foreign currency translation adjustments, net of tax benefit (expense) of $2,731, $(1,191), $2,806 and $2,326, respectively	-73,472	21,559	-65,297	-48,241
Derivative instruments, net of tax (expense) benefit of $(2,615), $1,289, $(2,360) and $(1,705), respectively	4,547	-2,198	4,161	3,836
Other, net of tax benefit (expense) of $636, $361, $(415) and $1,083, respectively	-959	-765	4,054	-1,292
Comprehensive earnings, net of tax	163,166	231,671	604,100	602,659
Comprehensive earnings (losses) attributable to noncontrolling interest	-3,648	2,995	4,946	-2,304
Comprehensive earnings attributable to W.W. Grainger, Inc.	$166,814	$228,676	$599,154	$604,963

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (UNAUDITED) (PARENTHETICALS) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Foreign currency translation adjustments, tax benefit (expense)	$2,731	($1,191)	$2,806	$2,326
Derivative instruments, tax (expense) benefit	-2,615	1,289	-2,360	-1,705
Other, tax benefit (expense)	$636	$361	($415)	$1,083

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS	'	'
Cash and cash equivalents	$319,734	$430,644
Accounts receivable (less allowances for doubtful accounts of $19,441 and $20,096, respectively)	1,234,884	1,101,656
Inventories - net	1,306,504	1,305,520
Prepaid expenses and other assets	97,916	115,331
Deferred income taxes	72,447	75,819
Prepaid income taxes	12,178	15,315
Total current assets	3,043,663	3,044,285
PROPERTY, BUILDINGS AND EQUIPMENT	3,001,466	2,941,090
Less: Accumulated depreciation and amortization	1,742,202	1,732,528
Property, buildings and equipment - net	1,259,264	1,208,562
DEFERRED INCOME TAXES	20,017	16,209
GOODWILL	540,407	525,467
OTHER ASSETS AND INTANGIBLES - NET	463,065	471,805
TOTAL ASSETS	5,326,416	5,266,328
CURRENT LIABILITIES	'	'
Short-term debt	48,391	66,857
Current maturities of long-term debt	23,610	30,429
Trade accounts payable	498,244	510,634
Accrued compensation and benefits	189,490	185,905
Accrued contributions to employees' profit sharing plans	136,795	176,800
Accrued expenses	241,033	218,835
Income taxes payable	19,220	6,330
Total current liabilities	1,156,783	1,195,790
LONG-TERM DEBT (less current maturities)	385,191	445,513
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES	113,836	113,585
EMPLOYMENT-RELATED AND OTHER NON-CURRENT LIABILITIES	194,200	184,604
SHAREHOLDERS' EQUITY	'	'
Cumulative Preferred Stock - $5 par value - 12,000,000 shares authorized; none issued nor outstanding	0	0
Common Stock - $0.50 par value - 300,000,000 shares authorized; issued 109,659,219 shares	54,830	54,830
Additional contributed capital	936,327	893,055
Retained earnings	6,261,502	5,822,612
Accumulated other comprehensive earnings (losses)	-24,822	28,914
Treasury stock, at cost - 41,475,898 and 40,805,281 shares, respectively	-3,831,700	-3,548,973
Total W.W. Grainger, Inc. shareholders' equity	3,396,137	3,250,438
Noncontrolling Interest	80,269	76,398
Total shareholders' equity	3,476,406	3,326,836
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$5,326,416	$5,266,328

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICALS) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Allowance for doubtful accounts	$19,441,000	$20,096,000
Cumulative preferred stock, par value	$5	$5
Cumulative preferred stock, shares authorized	12,000,000	12,000,000
Cumulative preferred stock, shares issued	0	0
Cumulative preferred stock, shares outstanding	0	0
Common stock, par value	$0.50	$0.50
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	109,659,219	109,659,219
Treasury stock, shares at cost	41,475,898	40,805,281

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net earnings	$661,182	$648,356
Provision for losses on accounts receivable	7,479	5,775
Deferred income taxes and tax uncertainties	-2,897	-8,683
Depreciation and amortization	147,751	126,164
Losses (gains) from sales of assets and write-offs	15,157	-408
Stock-based compensation	38,859	44,028
Change in operating assets and liabilities - net of business acquisitions and divestitures:	'	'
Accounts receivable	-163,072	-130,068
Inventories	-19,755	44,957
Prepaid expenses and other assets	17,670	40,290
Trade accounts payable	-5,542	1,727
Other current liabilities	-45,887	-46,521
Current income taxes payable	4,408	6,243
Employment-related and other non-current liabilities	9,257	13,955
Other - net	-1,777	-5,387
Net cash provided by operating activities	662,833	740,428
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Additions to property, buildings and equipment	-240,196	-148,361
Proceeds from sales of property, buildings and equipment	9,062	3,654
Net cash paid for business acquisitions, net of divestitures	-10,606	-127,960
Other - net	6,816	-160
Net cash used in investing activities	-234,924	-272,827
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Borrowings under lines of credit	76,016	122,297
Payments against lines of credit	-92,595	-128,157
Net borrowings under revolving credit facility	111,647	0
Payments of long-term debt	-163,968	-14,157
Proceeds from stock options exercised	41,461	66,512
Excess tax benefits from stock-based compensation	29,442	53,319
Purchase of treasury stock	-317,420	-279,619
Cash dividends paid	-215,265	-188,688
Net cash used in financing activities	-530,682	-368,493
Exchange rate effect on cash and cash equivalents	-8,137	-11,176
NET CHANGE IN CASH AND CASH EQUIVALENTS	-110,910	87,932
Cash and cash equivalents at beginning of period	430,644	452,063
Cash and cash equivalents at end of period	$319,734	$539,995

BACKGROUND_AND_BASIS_OF_PRESEN

BACKGROUND AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
BACKGROUND AND BASIS OF PRESENTATION	'
	BACKGROUND AND BASIS OF PRESENTATION
	W.W. Grainger, Inc. is a broad-line distributor of maintenance, repair and operating supplies, and other related products and services used by businesses and institutions.  W.W. Grainger, Inc.’s operations are primarily in the United States and Canada, with a presence in Europe, Asia and Latin America.  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, 2013 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC).
	The Condensed Consolidated Balance Sheet as of December 31, 2013 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.

NEW_ACCOUNTING_STANDARDS

NEW ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2014
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
NEW ACCOUNTING STANDARDS	'
	NEW ACCOUNTING STANDARDS
	In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in ASU 2014-08 raise the threshold for a disposal to qualify as discontinued operations and require new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new standard, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. This ASU will be applied prospectively and is effective for interim and annual periods beginning after December 15, 2014. Early adoption is permitted provided the disposal was not previously disclosed. This ASU is not expected to have a material impact on the Company's consolidated financial statements.
	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This ASU will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is not permitted. The ASU allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the transition method that will be elected and the potential effects of the adoption of this ASU on the Company's consolidated financial statements.

DIVIDEND

DIVIDEND	9 Months Ended
	Sep. 30, 2014
Dividends [Abstract]	'
DIVIDEND	'
	DIVIDEND
	On October 29, 2014, the Company’s Board of Directors declared a quarterly dividend of $1.08 per share, payable December 1, 2014, to shareholders of record on November 10, 2014.

ACQUISITION

ACQUISITION	9 Months Ended
	Sep. 30, 2014
Business Combinations [Abstract]	'
ACQUISITION	'
	ACQUISITION
	On September 2, 2014, the Company's Canadian subsidiary acquired WFS Enterprises, Inc. (WFS). With 2013 sales of approximately $87 million, WFS is a distributor of tools and supplies to industrial markets in Southern Ontario and select U.S. locations. The purchase price allocation has not been finalized and is subject to change as the Company obtains additional information during the measurement period related to the valuation of the acquired assets and liabilities. Due to the immaterial nature of this transaction, disclosure of pro forma results were not considered necessary.

LONGTERM_DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
LONG-TERM DEBT	'
	LONG-TERM DEBT
	On September 29, 2014, the Company's Canadian subsidiary entered into an unsecured revolving credit facility with a maximum availability of C$175 million. Pursuant to the credit agreement, there is a commitment fee of 0.065% and the facility matures on September 24, 2019. As of September 30, 2014, the Canadian business had drawn C$125 million under the facility for the purpose of repaying an intercompany loan with the Parent. The interest rate on this outstanding amount was 1.90%.
	On September 30, 2014, the Company repaid $150 million on the bank term loan that was entered into in May 2012. After this repayment, the outstanding balance on the loan was $129 million.

DERIVATIVE_INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
DERIVATIVE INSTRUMENTS	'
	DERIVATIVE INSTRUMENTS
	The Company uses derivative instruments to manage a portion of exposures to fluctuations in interest rates and foreign currency exchange rates. The Company does not enter into derivative financial instruments for trading or speculative purposes. The fair values of these instruments are determined by using quoted market forward rates (level 2 inputs) and reflect the present value of the amount that the Company would pay for contracts involving the same notional amounts and maturity dates. These instruments qualify for hedge accounting and the changes in fair value are reported as a component of other comprehensive earnings (losses) net of tax effects.
	As of September 30, 2014 and December 31, 2013, the fair value of the Company's interest rate swap included on the balance sheet as a liability under Employment-related and other noncurrent liabilities was $3 million for both periods. The purpose of the interest rate swap is to partially hedge the future interest expense of the euro-denominated term loan entered into to fund a portion of the Fabory acquisition in 2011. The swap matures in August 2016.
	In September 2014, the Company settled the forward contracts that were designated and qualified as a hedge on the intercompany net investment in the Company's Canadian subsidiary. The Company recorded a gain on the settlement of the forward contracts which was recorded as a component of other comprehensive earnings (losses). The Company received $7 million cash on the settlement of the forward contracts.

EMPLOYEE_BENEFITS

EMPLOYEE BENEFITS	9 Months Ended
	Sep. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]	'
EMPLOYEE BENEFITS	'
	EMPLOYEE BENEFITS - POSTRETIREMENT
	The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its United States employees hired prior to January 1, 2013, 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,
		2014			2013			2014			2013
	Service cost	$	2,251		$	2,647		$	6,754		$	7,941
	Interest cost	2,637			2,234			7,911			6,703
	Expected return on assets	(2,059		)	(1,769		)	(6,178		)	(5,307		)
	Amortization of transition asset	(36		)	(36		)	(107		)	(107		)
	Amortization of unrecognized losses	195			931			585			2,793
	Amortization of prior service credits	(1,813		)	(1,853		)	(5,440		)	(5,558		)
	Net periodic benefit costs	$	1,175		$	2,154		$	3,525		$	6,465
	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. As of September 30, 2014, the plan was in an overfunded position.
	During the second quarter of 2014, the Company adopted changes to the retirement plan offered to employees in the Netherlands.  The plan was transitioned from a defined benefit plan to a defined contribution plan, and all existing and future obligations under the defined benefit plan have been transferred to a third party. As of December 31, 2013, this pension plan was in an overfunded position with a net pension asset of $5 million and $9 million of unrecognized losses included in Accumulated other comprehensive earnings (AOCE). As a result of the plan amendment and settlement, the Company reclassified the unrecognized losses from AOCE to warehousing, marketing and administrative expenses on the Statement of Earnings in an amount of $9 million, with a corresponding tax benefit to income taxes on the Statement of Earnings in an amount of $2 million. In addition, the Company recognized a $3 million write-off related to the plan's assets and liabilities, net of tax. Effective January 1, 2014, the affected employees have an option to participate in the defined contribution plan sponsored by the Company for which contributions are made by the Company and participating employees.

SEGMENT_INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2014
Segment Reporting [Abstract]	'
SEGMENT INFORMATION	'
	SEGMENT INFORMATION
	The Company has two reportable segments: the United States and Canada. The United States operating segment reflects the results of the Company's U.S. business. The Canada operating segment reflects the results for Acklands – Grainger Inc., the Company’s Canadian business. Other businesses include Zoro, the single channel online business in the United States, and operations in Europe, Asia and Latin America. These other businesses individually do not meet the definition of a reportable segment. Operating segments generate revenue almost exclusively through the distribution of maintenance, repair and operating supplies, as service revenues account for approximately 1% of total revenues for each operating segment. Following is a summary of segment results (in thousands of dollars):
		Three Months Ended September 30, 2014
		United States			Canada			Other Businesses			Total
	Total net sales	$	2,045,077		$	278,271		$	300,760		$	2,624,108
	Intersegment net sales	(56,634		)	(39		)	(5,172		)	(61,845		)
	Net sales to external customers	$	1,988,443		$	278,232		$	295,588		$	2,562,263
	Segment operating earnings	$	386,499		$	27,466		$	5,162		$	419,127
		Three Months Ended September 30, 2013
		United States			Canada			Other Businesses			Total
	Total net sales	$	1,904,552		$	270,660		$	258,442		$	2,433,654
	Intersegment net sales	(34,801		)	(35		)	(288		)	(35,124		)
	Net sales to external customers	$	1,869,751		$	270,625		$	258,154		$	2,398,530
	Segment operating earnings	$	342,420		$	31,798		$	6,182		$	380,400
		Nine Months Ended September 30, 2014
		United States			Canada			Other Businesses			Total
	Total net sales	$	5,935,343		$	796,614		$	874,592		$	7,606,549
	Intersegment net sales	(146,860		)	(127		)	(5,568		)	(152,555		)
	Net sales to external customers	$	5,788,483		$	796,487		$	869,024		$	7,453,994
	Segment operating earnings	$	1,105,286		$	67,974		$	13,180		$	1,186,440
		Nine Months Ended September 30, 2013
		United States			Canada			Other Businesses			Total
	Total net sales	$	5,542,202		$	842,446		$	767,598		$	7,152,246
	Intersegment net sales	(90,825		)	(186		)	(709		)	(91,720		)
	Net sales to external customers	$	5,451,377		$	842,260		$	766,889		$	7,060,526
	Segment operating earnings	$	1,012,192		$	101,953		$	27,232		$	1,141,377
		United States			Canada			Other Businesses			Total
	Segment assets:
	September 30, 2014	$	2,150,423		$	416,910		$	369,879		$	2,937,212
	December 31, 2013	$	2,045,564		$	392,147		$	359,007		$	2,796,718
	Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars):
		Three Months Ended September 30,						Nine Months Ended September 30,
		2014			2013			2014			2013
	Operating earnings:
	Total operating earnings for operating segments	$	419,127		$	380,400		$	1,186,440		$	1,141,377
	Unallocated expenses and eliminations	(33,614		)	(33,685		)	(105,837		)	(101,286		)
	Total consolidated operating earnings	$	385,513		$	346,715		$	1,080,603		$	1,040,091
		Sep 30, 2014			Dec 31, 2013
	Assets:
	Total assets for operating segments	$	2,937,212		$	2,796,718
	Other current and non-current assets	2,057,485			2,118,298
	Unallocated assets	331,719			351,312
	Total consolidated assets	$	5,326,416		$	5,266,328
	Assets for operating segments include net accounts receivable and first-in, first-out inventory which are reported to the Company's Chief Operating Decision Maker. Other current and non-current assets include all other asset balances for the operating segments.
	Intersegment net sales for the U.S. segment increased by $56 million for the nine months of 2014 compared to the prior year, driven by increased sales from the U.S. business to Zoro, as the U.S. business' supply chain network is Zoro's primary source of inventory.
	Unallocated expenses and unallocated assets primarily relate to the Company headquarter's support services, which are not part of any business segment, as well as intercompany eliminations. Unallocated expenses include payroll and benefits, depreciation and other costs associated with headquarters-related support services. Unallocated assets include non-operating cash and cash equivalents, certain prepaid expenses and property, buildings and equipment-net.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
EARNINGS PER SHARE	'
	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						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Net earnings attributable to W.W. Grainger, Inc. as reported	$	230,322		$	210,789		$	652,890		$	640,287
	Distributed earnings available to participating securities	(788		)	(887		)	(2,350		)	(2,605		)
	Undistributed earnings available to participating securities	(1,825		)	(2,114		)	(5,603		)	(7,109		)
	Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders	227,709			207,788			644,937			630,573
	Undistributed earnings allocated to participating securities	1,825			2,114			5,603			7,109
	Undistributed earnings reallocated to participating securities	(1,803		)	(2,082		)	(5,532		)	(6,996		)
	Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders	$	227,731		$	207,820		$	645,008		$	630,686
	Denominator for basic earnings per share – weighted average shares	68,296,018			69,461,060			68,481,681			69,562,192
	Effect of dilutive securities	815,927			1,086,011			893,402			1,144,496
	Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities	69,111,945			70,547,071			69,375,083			70,706,688
	Earnings per share two-class method
	Basic	$	3.33		$	2.99		$	9.42		$	9.06
	Diluted	$	3.3		$	2.95		$	9.3		$	8.92

CONTINGENCIES_AND_LEGAL_MATTER

CONTINGENCIES AND LEGAL MATTERS	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
CONTINGENCIES AND LEGAL MATTERS	'
	CONTINGENCIES AND LEGAL MATTERS
	From time to time the Company is involved in various legal and administrative proceedings that are incidental to its business, including claims related to product liability, general negligence, contract disputes, environmental issues, wage and hour laws, intellectual property, employment practices, regulatory compliance or other matters and actions brought by employees, consumers, competitors, suppliers or governmental entities. As a government contractor selling to federal, state and local governmental entities, the Company is also subject to governmental or regulatory inquiries or audits or other proceedings, including those related to pricing compliance. It is not expected that the ultimate resolution of any of these matters will have, either individually or in the aggregate, a material adverse effect on the Company's consolidated financial position or results of operations.

EMPLOYEE_BENEFITS_Tables

EMPLOYEE BENEFITS (Tables)	9 Months Ended
	Sep. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]	'
Net Periodic Benefit Costs Charged to Operating Expenses	'
	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,
		2014			2013			2014			2013
	Service cost	$	2,251		$	2,647		$	6,754		$	7,941
	Interest cost	2,637			2,234			7,911			6,703
	Expected return on assets	(2,059		)	(1,769		)	(6,178		)	(5,307		)
	Amortization of transition asset	(36		)	(36		)	(107		)	(107		)
	Amortization of unrecognized losses	195			931			585			2,793
	Amortization of prior service credits	(1,813		)	(1,853		)	(5,440		)	(5,558		)
	Net periodic benefit costs	$	1,175		$	2,154		$	3,525		$	6,465

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2014
Segment Reporting [Abstract]	'
Schedule of Segment Reporting Information, by Segment	'
	Following is a summary of segment results (in thousands of dollars):
		Three Months Ended September 30, 2014
		United States			Canada			Other Businesses			Total
	Total net sales	$	2,045,077		$	278,271		$	300,760		$	2,624,108
	Intersegment net sales	(56,634		)	(39		)	(5,172		)	(61,845		)
	Net sales to external customers	$	1,988,443		$	278,232		$	295,588		$	2,562,263
	Segment operating earnings	$	386,499		$	27,466		$	5,162		$	419,127
		Three Months Ended September 30, 2013
		United States			Canada			Other Businesses			Total
	Total net sales	$	1,904,552		$	270,660		$	258,442		$	2,433,654
	Intersegment net sales	(34,801		)	(35		)	(288		)	(35,124		)
	Net sales to external customers	$	1,869,751		$	270,625		$	258,154		$	2,398,530
	Segment operating earnings	$	342,420		$	31,798		$	6,182		$	380,400
		Nine Months Ended September 30, 2014
		United States			Canada			Other Businesses			Total
	Total net sales	$	5,935,343		$	796,614		$	874,592		$	7,606,549
	Intersegment net sales	(146,860		)	(127		)	(5,568		)	(152,555		)
	Net sales to external customers	$	5,788,483		$	796,487		$	869,024		$	7,453,994
	Segment operating earnings	$	1,105,286		$	67,974		$	13,180		$	1,186,440
		Nine Months Ended September 30, 2013
		United States			Canada			Other Businesses			Total
	Total net sales	$	5,542,202		$	842,446		$	767,598		$	7,152,246
	Intersegment net sales	(90,825		)	(186		)	(709		)	(91,720		)
	Net sales to external customers	$	5,451,377		$	842,260		$	766,889		$	7,060,526
	Segment operating earnings	$	1,012,192		$	101,953		$	27,232		$	1,141,377
		United States			Canada			Other Businesses			Total
	Segment assets:
	September 30, 2014	$	2,150,423		$	416,910		$	369,879		$	2,937,212
	December 31, 2013	$	2,045,564		$	392,147		$	359,007		$	2,796,718
Reconciliation Of Operating Earnings From Segment To Consolidated	'
	Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars):
		Three Months Ended September 30,						Nine Months Ended September 30,
		2014			2013			2014			2013
	Operating earnings:
	Total operating earnings for operating segments	$	419,127		$	380,400		$	1,186,440		$	1,141,377
	Unallocated expenses and eliminations	(33,614		)	(33,685		)	(105,837		)	(101,286		)
	Total consolidated operating earnings	$	385,513		$	346,715		$	1,080,603		$	1,040,091
Reconciliation of Assets from Segment to Consolidated	'
		Sep 30, 2014			Dec 31, 2013
	Assets:
	Total assets for operating segments	$	2,937,212		$	2,796,718
	Other current and non-current assets	2,057,485			2,118,298
	Unallocated assets	331,719			351,312
	Total consolidated assets	$	5,326,416		$	5,266,328

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Computation of Basic and Diluted Earnings per Share under two-class method	'
	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						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Net earnings attributable to W.W. Grainger, Inc. as reported	$	230,322		$	210,789		$	652,890		$	640,287
	Distributed earnings available to participating securities	(788		)	(887		)	(2,350		)	(2,605		)
	Undistributed earnings available to participating securities	(1,825		)	(2,114		)	(5,603		)	(7,109		)
	Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders	227,709			207,788			644,937			630,573
	Undistributed earnings allocated to participating securities	1,825			2,114			5,603			7,109
	Undistributed earnings reallocated to participating securities	(1,803		)	(2,082		)	(5,532		)	(6,996		)
	Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders	$	227,731		$	207,820		$	645,008		$	630,686
	Denominator for basic earnings per share – weighted average shares	68,296,018			69,461,060			68,481,681			69,562,192
	Effect of dilutive securities	815,927			1,086,011			893,402			1,144,496
	Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities	69,111,945			70,547,071			69,375,083			70,706,688
	Earnings per share two-class method
	Basic	$	3.33		$	2.99		$	9.42		$	9.06
	Diluted	$	3.3		$	2.95		$	9.3		$	8.92

DIVIDEND_Details

DIVIDEND (Details) (Subsequent Event [Member], USD $)	1 Months Ended
	Oct. 29, 2014
Subsequent Event [Member]	'
Dividends Payable [Line Items]	'
Dividend per share declared	$1.08
Dividend payable date to be paid	1-Dec-14
Dividends payable record date	10-Nov-14

ACQUISITION_Details

ACQUISITION (Details) (USD $)	9 Months Ended	12 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Business Combinations [Abstract]	'	'
Business Acquisition, Effective Date of Acquisition	2-Sep-14	'
Business Acquisition, Name of Acquired Entity	'WFS Enterprises, Inc.	'
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period	'	$87
Business Acquisition, Description of Acquired Entity	'WFS is a distributor of tools and supplies to industrial markets in Southern Ontario and select U.S. locations.	'

LONGTERM_DEBT_Details

LONG-TERM DEBT (Details) (Revolving Credit Facility [Member], CAD)	3 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
Revolving Credit Facility [Member]	'
Line of Credit Facility [Line Items]	'
New line of credit available	175
Line of Credit Facility, Commitment Fee Percentage	0.07%
Line of Credit Facility, Expiration Date	24-Sep-19
Proceeds from Unsecured Lines of Credit	125
Line of Credit Facility, Interest Rate at Period End	1.90%

LONGTERM_DEBT_Details_2

LONG-TERM DEBT (Details 2) (U.S. Bank Term Loan [Member], USD $)	3 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
U.S. Bank Term Loan [Member]	'
Debt Instrument [Line Items]	'
Repayments of U.S. Term Loan	$150
Outstanding Balance on U.S. Term Loan	$129

DERIVATIVE_INSTRUMENTS_Details

DERIVATIVE INSTRUMENTS (Details) (USD $)	9 Months Ended		45 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014
	Interest Rate Swap [Member]	Interest Rate Swap [Member]	Foreign Exchange Forward [Member]
Derivative [Line Items]	'	'	'
Derivative instruments, Liabilities	$3	$3	'
Derivative, Maturity Date	31-Aug-16	'	29-Sep-14
Cash Received on Settlement of Derivative	'	'	$7

EMPLOYEE_BENEFITS_Details

EMPLOYEE BENEFITS (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
					Netherlands Plan Change	Netherlands Plan Change	Netherlands Plan Change
Defined Benefit Plans and Other Postretirement Benefit Plans	'	'	'	'	'	'	'
Service cost	$2,251	$2,647	$6,754	$7,941	'	'	'
Interest cost	2,637	2,234	7,911	6,703	'	'	'
Expected return on assets	-2,059	-1,769	-6,178	-5,307	'	'	'
Amortization of transition asset	-36	-36	-107	-107	'	'	'
Amortization of unrecognized losses	195	931	585	2,793	'	'	'
Amortization of prior service credits	-1,813	-1,853	-5,440	-5,558	'	'	'
Net periodic benefit costs	1,175	2,154	3,525	6,465	'	'	'
Defined Benefit Plan, Fair Value of Plan Assets	'	'	'	'	'	'	5,000
Pension and other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before tax	'	'	'	'	'	'	-9,000
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax	'	'	'	'	9,000	'	'
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax	'	'	'	'	-2,000	'	'
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments	'	'	'	'	($3,000)	'	'
Effective Date of plan change	'	'	'	'	'	1-Jan-14	'

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Summary of segment results [Line Items]	'	'	'	'	'
Service Revenue, Percentage	'	'	1.00%	'	'
Summarized Information	'	'	'	'	'
Net sales	$2,562,263	$2,398,530	$7,453,994	$7,060,526	'
Operating earnings (expenses)	385,513	346,715	1,080,603	1,040,091	'
Assets	5,326,416	'	5,326,416	'	5,266,328
United States [Member]	'	'	'	'	'
Summary of segment results [Line Items]	'	'	'	'	'
Intersegment Sales Increase	'	'	56,000	'	'
Summarized Information	'	'	'	'	'
Net sales	1,988,443	1,869,751	5,788,483	5,451,377	'
Assets	2,150,423	'	2,150,423	'	2,045,564
Canada [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	278,232	270,625	796,487	842,260	'
Assets	416,910	'	416,910	'	392,147
Other Businesses [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	295,588	258,154	869,024	766,889	'
Assets	369,879	'	369,879	'	359,007
Segment balances before intersegment eliminations and consolidation reconciling items [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	2,624,108	2,433,654	7,606,549	7,152,246	'
Operating earnings (expenses)	419,127	380,400	1,186,440	1,141,377	'
Assets	2,937,212	'	2,937,212	'	2,796,718
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | United States [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	2,045,077	1,904,552	5,935,343	5,542,202	'
Operating earnings (expenses)	386,499	342,420	1,105,286	1,012,192	'
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | Canada [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	278,271	270,660	796,614	842,446	'
Operating earnings (expenses)	27,466	31,798	67,974	101,953	'
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | Other Businesses [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	300,760	258,442	874,592	767,598	'
Operating earnings (expenses)	5,162	6,182	13,180	27,232	'
Intersegment Eliminations [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	-61,845	-35,124	-152,555	-91,720	'
Intersegment Eliminations [Member] | United States [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	-56,634	-34,801	-146,860	-90,825	'
Intersegment Eliminations [Member] | Canada [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	-39	-35	-127	-186	'
Intersegment Eliminations [Member] | Other Businesses [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Net sales	-5,172	-288	-5,568	-709	'
Eliminations and Unallocated in Consolidation [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Operating earnings (expenses)	-33,614	-33,685	-105,837	-101,286	'
Assets	331,719	'	331,719	'	351,312
Segment other current and non-current assets [Member]	'	'	'	'	'
Summarized Information	'	'	'	'	'
Assets	$2,057,485	'	$2,057,485	'	$2,118,298

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Net earnings attributable to W.W. Grainger, Inc. as reported	$230,322	$210,789	$652,890	$640,287
Distributed earnings available to participating securities	-788	-887	-2,350	-2,605
Undistributed earnings available to participating securities	-1,825	-2,114	-5,603	-7,109
Numerator for basic earnings per share b Undistributed and distributed earnings available to common shareholders	227,709	207,788	644,937	630,573
Undistributed earnings allocated to participating securities	1,825	2,114	5,603	7,109
Undistributed earnings reallocated to participating securities	-1,803	-2,082	-5,532	-6,996
Numerator for diluted earnings per share b Undistributed and distributed earnings available to common shareholders	$227,731	$207,820	$645,008	$630,686
Denominator for basic earnings per share - weighted average shares (in shares)	68,296,018	69,461,060	68,481,681	69,562,192
Effect of dilutive securities	815,927	1,086,011	893,402	1,144,496
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)	69,111,945	70,547,071	69,375,083	70,706,688
Basic (in dollars per share)	$3.33	$2.99	$9.42	$9.06
Diluted (in dollars per share)	$3.30	$2.95	$9.30	$8.92