DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | ||
Entity Registrant Name | GRAINGER W W INC | |
Entity Central Index Key | 277135 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 66,920,726 | |
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 | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | $2,439,661 | $2,385,627 |
Cost of merchandise sold | 1,345,918 | 1,309,656 |
Gross profit | 1,093,743 | 1,075,971 |
Warehousing, marketing and administrative expenses | 742,496 | 721,632 |
Operating earnings | 351,247 | 354,339 |
Other income and (expense): | ||
Interest income | 192 | 640 |
Interest expense | -1,636 | -2,863 |
Other non-operating income | 241 | 167 |
Other non-operating expense | -2,405 | -670 |
Total other expense | -3,608 | -2,726 |
Earnings before income taxes | 347,639 | 351,613 |
Income taxes | 133,493 | 132,558 |
Net earnings | 214,146 | 219,055 |
Less: Net earnings attributable to noncontrolling interest | 3,131 | 2,402 |
Net earnings attributable to W.W. Grainger, Inc. | $211,015 | $216,653 |
Earnings per share: | ||
Basic (in dollars per share) | $3.11 | $3.11 |
Diluted (in dollars per share) | $3.07 | $3.07 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 67,229,653 | 68,699,561 |
Diluted (in shares) | 67,982,362 | 69,677,438 |
Cash dividends paid per share (in dollars per share) | $1.08 | $0.93 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net earnings | $214,146 | $219,055 |
Other comprehensive earnings (losses): | ||
Foreign currency translation adjustments, net of tax expense of $0 and $(2,023), respectively | -76,015 | -15,134 |
Net investment hedge, (loss) net of tax benefit of $0 and $2,242, respectively | 0 | -3,594 |
Net foreign currency translation (loss) | -76,015 | -18,728 |
Reclassification adjustments related to amortization, net of tax benefit of $509 and $636, respectively | -813 | -1,018 |
Derivative instrument change in fair value of cash flow hedge | 482 | 32 |
Comprehensive earnings, net of tax | 137,800 | 199,341 |
Less: Comprehensive earnings (losses) attributable to noncontrolling interest | ||
Net earnings | 3,131 | 2,402 |
Foreign currency translation adjustments | -294 | 1,479 |
Comprehensive earnings attributable to W.W. Grainger, Inc. | $134,963 | $195,460 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (UNAUDITED) (PARENTHETICALS) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Foreign currency translation adjustments, tax expense | $0 | ($2,023,000) |
Net investment hedge tax benefit | 0 | 2,242,000 |
Tax benefit from defined postretirement benefit plan reclassification adjustment | $509,000 | $636,000 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $243,427 | $226,644 |
Accounts receivable (less allowances for doubtful accounts of $21,113 and $22,121, respectively) | 1,198,153 | 1,172,924 |
Inventories - net | 1,328,395 | 1,356,396 |
Prepaid expenses and other assets | 100,584 | 102,669 |
Deferred income taxes | 61,891 | 61,387 |
Prepaid income taxes | 14,191 | 47,529 |
Total current assets | 2,946,641 | 2,967,549 |
PROPERTY, BUILDINGS AND EQUIPMENT | 3,098,984 | 3,115,130 |
Less: Accumulated depreciation and amortization | 1,792,022 | 1,790,784 |
Property, buildings and equipment - net | 1,306,962 | 1,324,346 |
DEFERRED INCOME TAXES | 13,493 | 16,718 |
GOODWILL | 481,536 | 506,905 |
OTHER ASSETS AND INTANGIBLES - NET | 462,340 | 468,734 |
TOTAL ASSETS | 5,210,972 | 5,284,252 |
CURRENT LIABILITIES | ||
Short-term debt | 231,533 | 56,896 |
Current maturities of long-term debt | 25,416 | 23,404 |
Trade accounts payable | 513,551 | 554,088 |
Accrued compensation and benefits | 163,512 | 191,696 |
Accrued contributions to employees' profit sharing plans | 42,596 | 178,076 |
Accrued expenses | 246,145 | 245,300 |
Income taxes payable | 74,792 | 12,256 |
Total current liabilities | 1,297,545 | 1,261,716 |
LONG-TERM DEBT (less current maturities) | 371,070 | 404,536 |
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES | 92,141 | 95,455 |
EMPLOYMENT-RELATED AND OTHER NON-CURRENT LIABILITIES | 239,947 | 238,444 |
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 | 952,280 | 948,340 |
Retained earnings | 6,473,464 | 6,335,990 |
Accumulated other comprehensive earnings | -172,725 | -96,673 |
Treasury stock, at cost - 42,738,493 and 42,227,178 shares, respectively | -4,174,864 | -4,032,615 |
Total W.W. Grainger, Inc. shareholders' equity | 3,132,985 | 3,209,872 |
Noncontrolling Interest | 77,284 | 74,229 |
Total shareholders' equity | 3,210,269 | 3,284,101 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $5,210,972 | $5,284,252 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICALS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $21,113,000 | $22,121,000 |
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 | 42,738,493 | 42,227,178 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $214,146 | $219,055 |
Provision for losses on accounts receivable | 2,558 | 2,413 |
Deferred income taxes and tax uncertainties | 1,732 | -2,671 |
Depreciation and amortization | 52,411 | 45,776 |
Stock-based compensation | 9,161 | 11,262 |
Change in operating assets and liabilities - net of business acquisitions and divestitures: | ||
Accounts receivable | -50,968 | -78,676 |
Inventories | -2,808 | 30,608 |
Prepaid expenses and other current assets | 34,433 | 6,564 |
Trade accounts payable | -7,326 | -13,497 |
Accrued liabilities | -160,239 | -146,616 |
Current income taxes payable | 62,893 | 92,410 |
Employment-related and other non-current liabilities | 2,296 | 1,177 |
Other - net | -2,080 | -287 |
Net cash provided by operating activities | 156,209 | 167,518 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, buildings and equipment | -99,489 | -65,664 |
Proceeds from sales of property, buildings and equipment | 7,333 | 462 |
Other - net | -48 | 13,023 |
Net cash used in investing activities | -92,204 | -52,179 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of commercial paper | 190,000 | 40,000 |
Borrowings under lines of credit | 14,380 | 26,821 |
Payments against lines of credit | -28,333 | -28,313 |
Net decrease in long-term debt | -1,860 | -5,807 |
Proceeds from stock options exercised | 4,883 | 10,170 |
Excess tax benefits from stock-based compensation | 4,319 | 6,807 |
Purchase of treasury stock | -149,992 | -150,553 |
Cash dividends paid | -73,393 | -64,682 |
Net cash used in financing activities | -39,996 | -165,557 |
Exchange rate effect on cash and cash equivalents | -7,226 | -4,862 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 16,783 | -55,080 |
Cash and cash equivalents at beginning of period | 226,644 | 430,644 |
Cash and cash equivalents at end of period | $243,427 | $375,564 |
BACKGROUND_AND_BASIS_OF_PRESEN
BACKGROUND AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014 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, 2014 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 | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS |
In February 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This ASU which is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, changes the consolidation analysis required under U.S. GAAP for limited partnerships and other variable interest entities. Early adoption is permitted and the ASU allows for either retrospective or modified retrospective application. This ASU is not expected to have a material impact on the Company's consolidated financial statements. | |
In April 2015, the FASB proposed a one-year delay in the effective date of ASU 2014-09, Revenue from Contracts with Customers. Under the proposal, the standard would be effective for interim and annual periods beginning after December 15, 2017. The proposal would also permit adoption as early as the original effective date, which was for interim and annual periods beginning after December 15, 2016. This ASU is not expected to have a material impact on the Company's consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU which is effective for fiscal years and interim periods beginning after December 15, 2015, changes the presentation of debt issuance costs in financial statements as a direct deduction from the related debt liability rather than as an asset. Early adoption and retrospective application are permitted. The Company is evaluating the impact of this ASU. | |
In April 2015, the FASB issued ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. This ASU which is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, provides guidance to customers about whether a cloud computing arrangement includes a software license. Early adoption is permitted and the ASU allows for either retrospective or prospective application. The Company is evaluating the impact of this ASU. |
DIVIDEND
DIVIDEND | 3 Months Ended |
Mar. 31, 2015 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND |
On April 29, 2015, the Company’s Board of Directors declared a quarterly dividend of $1.17 per share, payable June 1, 2015, to shareholders of record on May 11, 2015. This represents an 8% increase from the prior quarterly rate of $1.08 per share. |
SHORTTERM_DEBT
SHORT-TERM DEBT | 3 Months Ended |
Mar. 31, 2015 | |
Short-term Debt [Abstract] | |
SHORT-TERM DEBT | SHORT-TERM DEBT |
On April 7, 2015, the Company increased its committed line of credit from $600 million to $900 million. All other terms and conditions remain unchanged. The line of credit is due to expire in August 2018 and supports the issuance of commercial paper. | |
The Company had $195 million and $5 million of commercial paper outstanding as of March 31, 2015 and December 31, 2014, respectively. The commercial paper was issued for general working capital needs. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2015 | |
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 March 31, 2015 and December 31, 2014, 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 $2 million. 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. All remaining derivative instruments were immaterial individually and in the aggregate as of March 31, 2015 and December 31, 2014. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||
EMPLOYEE BENEFITS - POSTRETIREMENT | 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 March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 2,532 | $ | 2,251 | ||||
Interest cost | 2,412 | 2,637 | ||||||
Expected return on assets | (2,594 | ) | (2,059 | ) | ||||
Amortization of transition asset | — | (36 | ) | |||||
Amortization of unrecognized losses | 378 | 195 | ||||||
Amortization of prior service credits | (1,700 | ) | (1,813 | ) | ||||
Net periodic benefit costs | $ | 1,028 | $ | 1,175 | ||||
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 March 31, 2015, the plan was in an overfunded position. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 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 less than 1% of total revenues for each operating segment. Following is a summary of segment results (in thousands of dollars): | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
United States | Canada | Other Businesses | Total | |||||||||||||
Total net sales | $ | 1,971,455 | $ | 234,530 | $ | 297,800 | $ | 2,503,785 | ||||||||
Intersegment net sales | (63,191 | ) | (36 | ) | (897 | ) | (64,124 | ) | ||||||||
Net sales to external customers | $ | 1,908,264 | $ | 234,494 | $ | 296,903 | $ | 2,439,661 | ||||||||
Segment operating earnings | $ | 366,089 | $ | 9,387 | $ | 9,526 | $ | 385,002 | ||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
United States | Canada | Other Businesses | Total | |||||||||||||
Total net sales | $ | 1,897,311 | $ | 254,297 | $ | 274,906 | $ | 2,426,514 | ||||||||
Intersegment net sales | (40,867 | ) | (46 | ) | 26 | (40,887 | ) | |||||||||
Net sales to external customers | $ | 1,856,444 | $ | 254,251 | $ | 274,932 | $ | 2,385,627 | ||||||||
Segment operating earnings | $ | 353,687 | $ | 21,296 | $ | 8,475 | $ | 383,458 | ||||||||
United States | Canada | Other Businesses | Total | |||||||||||||
Segment assets: | ||||||||||||||||
March 31, 2015 | $ | 2,214,829 | $ | 355,100 | $ | 349,294 | $ | 2,919,223 | ||||||||
December 31, 2014 | $ | 2,181,521 | $ | 394,342 | $ | 345,987 | $ | 2,921,850 | ||||||||
Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars): | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Operating earnings: | ||||||||||||||||
Total operating earnings for operating segments | $ | 385,002 | $ | 383,458 | ||||||||||||
Unallocated expenses and eliminations | (33,755 | ) | (29,119 | ) | ||||||||||||
Total consolidated operating earnings | $ | 351,247 | $ | 354,339 | ||||||||||||
Mar 31, 2015 | Dec 31, 2014 | |||||||||||||||
Assets: | ||||||||||||||||
Total assets for operating segments | $ | 2,919,223 | $ | 2,921,850 | ||||||||||||
Other current and non-current assets | 2,025,896 | 2,113,900 | ||||||||||||||
Unallocated assets | 265,853 | 248,502 | ||||||||||||||
Total consolidated assets | $ | 5,210,972 | $ | 5,284,252 | ||||||||||||
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. | ||||||||||||||||
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. | ||||||||||||||||
Intersegment net sales for the U.S. segment increased by $22 million for the three months of 2015 compared to the prior year, driven by increased sales from the U.S. business to Zoro. The U.S. business' supply chain network is Zoro's primary source of inventory. | ||||||||||||||||
Other current and non-current assets decreased by $88 million at March 31, 2015 compared to December 31, 2014, primarily due to lower goodwill and intangible balances, as a result of foreign currency translation. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net earnings attributable to W.W. Grainger, Inc. as reported | $ | 211,015 | $ | 216,653 | ||||
Distributed earnings available to participating securities | (768 | ) | (835 | ) | ||||
Undistributed earnings available to participating securities | (1,461 | ) | (2,113 | ) | ||||
Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders | 208,786 | 213,705 | ||||||
Undistributed earnings allocated to participating securities | 1,461 | 2,113 | ||||||
Undistributed earnings reallocated to participating securities | (1,445 | ) | (2,084 | ) | ||||
Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders | $ | 208,802 | $ | 213,734 | ||||
Denominator for basic earnings per share – weighted average shares | 67,229,653 | 68,699,561 | ||||||
Effect of dilutive securities | 752,709 | 977,877 | ||||||
Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities | 67,982,362 | 69,677,438 | ||||||
Earnings per share two-class method | ||||||||
Basic | $ | 3.11 | $ | 3.11 | ||||
Diluted | $ | 3.07 | $ | 3.07 | ||||
CONTINGENCIES_AND_LEGAL_MATTER
CONTINGENCIES AND LEGAL MATTERS | 3 Months Ended |
Mar. 31, 2015 | |
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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 2,532 | $ | 2,251 | ||||
Interest cost | 2,412 | 2,637 | ||||||
Expected return on assets | (2,594 | ) | (2,059 | ) | ||||
Amortization of transition asset | — | (36 | ) | |||||
Amortization of unrecognized losses | 378 | 195 | ||||||
Amortization of prior service credits | (1,700 | ) | (1,813 | ) | ||||
Net periodic benefit costs | $ | 1,028 | $ | 1,175 | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following is a summary of segment results (in thousands of dollars): | |||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
United States | Canada | Other Businesses | Total | |||||||||||||
Total net sales | $ | 1,971,455 | $ | 234,530 | $ | 297,800 | $ | 2,503,785 | ||||||||
Intersegment net sales | (63,191 | ) | (36 | ) | (897 | ) | (64,124 | ) | ||||||||
Net sales to external customers | $ | 1,908,264 | $ | 234,494 | $ | 296,903 | $ | 2,439,661 | ||||||||
Segment operating earnings | $ | 366,089 | $ | 9,387 | $ | 9,526 | $ | 385,002 | ||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
United States | Canada | Other Businesses | Total | |||||||||||||
Total net sales | $ | 1,897,311 | $ | 254,297 | $ | 274,906 | $ | 2,426,514 | ||||||||
Intersegment net sales | (40,867 | ) | (46 | ) | 26 | (40,887 | ) | |||||||||
Net sales to external customers | $ | 1,856,444 | $ | 254,251 | $ | 274,932 | $ | 2,385,627 | ||||||||
Segment operating earnings | $ | 353,687 | $ | 21,296 | $ | 8,475 | $ | 383,458 | ||||||||
United States | Canada | Other Businesses | Total | |||||||||||||
Segment assets: | ||||||||||||||||
March 31, 2015 | $ | 2,214,829 | $ | 355,100 | $ | 349,294 | $ | 2,919,223 | ||||||||
December 31, 2014 | $ | 2,181,521 | $ | 394,342 | $ | 345,987 | $ | 2,921,850 | ||||||||
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 March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Operating earnings: | ||||||||||||||||
Total operating earnings for operating segments | $ | 385,002 | $ | 383,458 | ||||||||||||
Unallocated expenses and eliminations | (33,755 | ) | (29,119 | ) | ||||||||||||
Total consolidated operating earnings | $ | 351,247 | $ | 354,339 | ||||||||||||
Reconciliation of Assets from Segment to Consolidated | ||||||||||||||||
Mar 31, 2015 | Dec 31, 2014 | |||||||||||||||
Assets: | ||||||||||||||||
Total assets for operating segments | $ | 2,919,223 | $ | 2,921,850 | ||||||||||||
Other current and non-current assets | 2,025,896 | 2,113,900 | ||||||||||||||
Unallocated assets | 265,853 | 248,502 | ||||||||||||||
Total consolidated assets | $ | 5,210,972 | $ | 5,284,252 | ||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net earnings attributable to W.W. Grainger, Inc. as reported | $ | 211,015 | $ | 216,653 | ||||
Distributed earnings available to participating securities | (768 | ) | (835 | ) | ||||
Undistributed earnings available to participating securities | (1,461 | ) | (2,113 | ) | ||||
Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders | 208,786 | 213,705 | ||||||
Undistributed earnings allocated to participating securities | 1,461 | 2,113 | ||||||
Undistributed earnings reallocated to participating securities | (1,445 | ) | (2,084 | ) | ||||
Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders | $ | 208,802 | $ | 213,734 | ||||
Denominator for basic earnings per share – weighted average shares | 67,229,653 | 68,699,561 | ||||||
Effect of dilutive securities | 752,709 | 977,877 | ||||||
Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities | 67,982,362 | 69,677,438 | ||||||
Earnings per share two-class method | ||||||||
Basic | $ | 3.11 | $ | 3.11 | ||||
Diluted | $ | 3.07 | $ | 3.07 | ||||
DIVIDEND_Details
DIVIDEND (Details) (USD $) | 1 Months Ended | |
Apr. 30, 2014 | Apr. 29, 2015 | |
Dividends Payable [Line Items] | ||
Dividends Payable, Amount Per Share | $1.08 | |
Subsequent Event [Member] | ||
Dividends Payable [Line Items] | ||
Dividends Payable, Amount Per Share | $1.17 | |
Dividend payable date to be paid | 1-Jun-15 | |
Dividends payable record date | 11-May-15 | |
Dividend payable percent increase | 8.00% |
SHORTTERM_DEBT_Details
SHORT-TERM DEBT (Details) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Apr. 07, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Commercial Paper [Member] | |||
Short-term Debt [Line Items] | |||
Commercial Paper | $195 | $5 | |
Line of Credit [Member] | |||
Short-term Debt [Line Items] | |||
Committed Line of Credit | 600 | ||
Subsequent Event [Member] | Line of Credit [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Expiration Date | 21-Aug-18 | ||
Committed Line of Credit | $900 | ||
Line of Credit Facility, Revision Date | 7-Apr-15 |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details) (Interest Rate Swap [Member], USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2011 | Mar. 31, 2015 | Dec. 31, 2014 |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative instruments, Liabilities | $2 | $2 | |
Derivative, Maturity Date | 31-Aug-16 |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Service cost | $2,532 | $2,251 |
Interest cost | 2,412 | 2,637 |
Expected return on assets | -2,594 | -2,059 |
Amortization of transition asset | 0 | -36 |
Amortization of unrecognized losses | 378 | 195 |
Amortization of prior service credits | -1,700 | -1,813 |
Net periodic benefit costs | $1,028 | $1,175 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Summary of segment results [Line Items] | |||
Service Fee Revenue (Less than) | 1.00% | ||
Decrease in Other current and non-current assets | $88,000 | ||
Summarized Information | |||
Net sales | 2,439,661 | 2,385,627 | |
Operating earnings (expenses) | 351,247 | 354,339 | |
Total assets | 5,210,972 | 5,284,252 | |
United States [Member] | |||
Summary of segment results [Line Items] | |||
Intersegment Sales Increase | 22,000 | ||
Summarized Information | |||
Net sales | 1,908,264 | 1,856,444 | |
Total assets | 2,214,829 | 2,181,521 | |
Canada [Member] | |||
Summarized Information | |||
Net sales | 234,494 | 254,251 | |
Total assets | 355,100 | 394,342 | |
Other Businesses [Member] | |||
Summarized Information | |||
Net sales | 296,903 | 274,932 | |
Total assets | 349,294 | 345,987 | |
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | |||
Summarized Information | |||
Net sales | 2,503,785 | 2,426,514 | |
Operating earnings (expenses) | 385,002 | 383,458 | |
Total assets | 2,919,223 | 2,921,850 | |
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | United States [Member] | |||
Summarized Information | |||
Net sales | 1,971,455 | 1,897,311 | |
Operating earnings (expenses) | 366,089 | 353,687 | |
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | Canada [Member] | |||
Summarized Information | |||
Net sales | 234,530 | 254,297 | |
Operating earnings (expenses) | 9,387 | 21,296 | |
Segment balances before intersegment eliminations and consolidation reconciling items [Member] | Other Businesses [Member] | |||
Summarized Information | |||
Net sales | 297,800 | 274,906 | |
Operating earnings (expenses) | 9,526 | 8,475 | |
Intersegment Eliminations [Member] | |||
Summarized Information | |||
Net sales | -64,124 | -40,887 | |
Intersegment Eliminations [Member] | United States [Member] | |||
Summarized Information | |||
Net sales | -63,191 | -40,867 | |
Intersegment Eliminations [Member] | Canada [Member] | |||
Summarized Information | |||
Net sales | -36 | -46 | |
Intersegment Eliminations [Member] | Other Businesses [Member] | |||
Summarized Information | |||
Net sales | -897 | 26 | |
Eliminations and Unallocated in Consolidation [Member] | |||
Summarized Information | |||
Operating earnings (expenses) | -33,755 | -29,119 | |
Total assets | 265,853 | 248,502 | |
Segment other current and non-current assets [Member] | |||
Summarized Information | |||
Total assets | $2,025,896 | $2,113,900 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net earnings attributable to W.W. Grainger, Inc. as reported | $211,015 | $216,653 |
Distributed earnings available to participating securities | -768 | -835 |
Undistributed earnings available to participating securities | -1,461 | -2,113 |
Numerator for basic earnings per share b Undistributed and distributed earnings available to common shareholders | 208,786 | 213,705 |
Undistributed earnings allocated to participating securities | 1,461 | 2,113 |
Undistributed earnings reallocated to participating securities | -1,445 | -2,084 |
Numerator for diluted earnings per share b Undistributed and distributed earnings available to common shareholders | $208,802 | $213,734 |
Denominator for basic earnings per share - weighted average shares (in shares) | 67,229,653 | 68,699,561 |
Effect of dilutive securities | 752,709 | 977,877 |
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares) | 67,982,362 | 69,677,438 |
Basic (in dollars per share) | $3.11 | $3.11 |
Diluted (in dollars per share) | $3.07 | $3.07 |