W.W. Grainger (GWW) 10-K 28 Feb 17 2016 FY Annual report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - USD ($)	12 Months Ended
	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	GRAINGER W W INC
Entity Central Index Key	277,135
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		58,837,353
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 12,999,003,606

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net sales	$ 10,137,204	$ 9,973,384	$ 9,964,953
Cost of merchandise sold	6,022,647	5,741,956	5,650,711
Gross profit	4,114,557	4,231,428	4,314,242
Warehousing, marketing and administrative expenses	2,995,060	2,931,108	2,967,125
Operating earnings	1,119,497	1,300,320	1,347,117
Other income and (expense):
Interest income	717	1,166	2,068
Interest expense	(66,332)	(33,571)	(10,093)
Loss from equity method investment	(31,193)	(11,740)	0
Other non-operating income	1,300	1,102	483
Other non-operating expense	(4,931)	(6,572)	(5,189)
Total other expense	(100,439)	(49,615)	(12,731)
Earnings before income taxes	1,019,058	1,250,705	1,334,386
Income taxes	386,220	465,531	522,090
Net earnings	632,838	785,174	812,296
Less: Net earnings attributable to noncontrolling interest	26,910	16,178	10,567
Net earnings attributable to W.W. Grainger, Inc.	$ 605,928	$ 768,996	$ 801,729
Earnings per share:
Basic (in dollars per share)	$ 9.94	$ 11.69	$ 11.59
Diluted (in dollars per share)	$ 9.87	$ 11.58	$ 11.45
Weighted average number of shares outstanding:
Basic (in shares)	60,430,892	65,156,864	68,334,322
Diluted (in shares)	60,839,930	65,765,121	69,205,744

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$ 632,838	$ 785,174	$ 812,296
Foreign currency translation adjustments:
Foreign currency translation loss, net of tax benefit of $0, $0 and $2,806, respectively	(38,729)	(154,096)	(127,847)
Reclassification of cumulative currency translation	0	0	9,042
Other, net of tax expense of $0, $0 and $(2,360), respectively	0	0	3,782
Net foreign currency translation loss	(38,729)	(154,096)	(115,023)
Defined postretirement benefit plan:
Defined postretirement benefit plan (loss) gain, net of tax benefit (expense) of $3,749, $(19,056) and $14,140, respectively	(6,022)	30,451	(22,667)
Reclassification related to amortization, net of tax expense	(4,034)	(3,246)	(4,072)
Net defined postretirement benefit plans	(10,056)	27,205	(26,739)
Other employment-related benefit plans:
(Loss) gain on other employment-related benefit plans, net of tax benefit of $718, $0 and $440, respectively	(2,397)	641	(1,462)
Reclassification related to plan amendment and settlement, net of tax benefit	0	0	6,971
Net other employment-related benefit plans	(2,397)	641	5,509
Other	885	1,300	786
Total other comprehensive losses	(50,297)	(124,950)	(135,467)
Comprehensive earnings, net of tax	582,541	660,224	676,829
Less: Comprehensive earnings attributable to noncontrolling interest:
Net earnings	26,910	16,178	10,567
Foreign currency translation adjustments	906	(532)	(9,880)
Comprehensive earnings attributable to W.W. Grainger, Inc.	$ 554,725	$ 644,578	$ 676,142

CONSOLIDATED STATEMENTS OF COM4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parentheticals) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Foreign currency translation loss, tax benefit	$ 0	$ 0	$ 2,806,000
Other, tax expense	0	0	(2,360,000)
Defined postretirement benefit plan (loss) gain, tax benefit (expense)	3,749,000	(19,056,000)	14,140,000
(Loss) gain on other employment-related benefit plans, tax benefit	$ 718,000	$ 0	$ 440,000

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 274,146	$ 290,136
Accounts receivable - net	1,223,096	1,209,641
Inventories – net	1,406,470	1,414,177
Prepaid expenses and other assets	81,766	85,670
Prepaid income taxes	34,751	49,018
Total current assets	3,020,229	3,048,642
PROPERTY, BUILDINGS AND EQUIPMENT
Land	355,976	323,765
Buildings, structures and improvements	1,313,233	1,352,498
Furniture, fixtures, machinery and equipment	1,742,293	1,694,050
Property, buildings and equipment – gross	3,411,502	3,370,313
Less: Accumulated depreciation and amortization	1,990,611	1,939,072
Property, buildings and equipment – net	1,420,891	1,431,241
DEFERRED INCOME TAXES	64,775	83,996
GOODWILL	527,150	582,336
INTANGIBLES – NET	586,126	648,010
OTHER ASSETS	75,136	63,530
TOTAL ASSETS	5,694,307	5,857,755
CURRENT LIABILITIES
Short-term debt	386,140	353,072
Current maturities of long-term debt	19,966	247,346
Trade accounts payable	650,092	583,474
Accrued compensation and benefits	212,525	196,667
Accrued contributions to employees’ profit-sharing plans	54,948	124,587
Accrued expenses	290,207	266,702
Income taxes payable	15,059	16,686
Total current liabilities	1,628,937	1,788,534
LONG-TERM DEBT (less current maturities)	1,840,946	1,388,414
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES	126,101	154,352
EMPLOYMENT-RELATED AND OTHER NONCURRENT LIABILITIES	192,555	173,741
SHAREHOLDERS' EQUITY
Cumulative Preferred Stock – $5 par value – 12,000,000 shares authorized; none issued or 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	1,030,256	1,000,476
Retained earnings	7,113,559	6,802,130
Accumulated other comprehensive losses	(272,294)	(221,091)
Treasury stock, at cost – 50,854,905 and 47,630,511 shares, respectively	(6,128,416)	(5,369,711)
Total W.W. Grainger, Inc. shareholders’ equity	1,797,935	2,266,634
Noncontrolling interest	107,833	86,080
Total shareholders' equity	1,905,768	2,352,714
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 5,694,307	$ 5,857,755

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Cumulative preferred stock, par value (in dollars per share)	$ 5	$ 5
Cumulative preferred stock, shares authorized (in shares)	12,000,000	12,000,000
Cumulative preferred stock, shares issued (in shares)	0	0
Cumulative preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	109,659,219	109,659,219
Treasury stock, shares at cost (in shares)	50,854,905	47,630,511

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 632,838	$ 785,174	$ 812,296
Provision for losses on accounts receivable	16,216	10,181	12,945
Deferred income taxes and tax uncertainties	(5,884)	4,076	(13,732)
Depreciation and amortization	248,857	227,967	208,326
Impairment of goodwill and other intangible assets	52,318	0	16,652
(Gains) losses from non-cash charges and sales of assets	(18,521)	2,765	41,037
Stock-based compensation	35,735	46,861	49,032
Losses from equity method investment	31,193	11,740	0
Change in assets and liabilities – net of acquisitions and divestitures:
Accounts receivable	(45,600)	(3,085)	(122,580)
Inventories	(4,403)	(37,737)	(92,443)
Prepaid expenses and other assets	18,641	15,788	(24,550)
Trade accounts payable	72,882	23,130	32,019
Other current liabilities	(25,044)	(70,306)	8,693
Income taxes payable	(3,513)	6,943	(1,487)
Accrued employment-related benefits cost	7,542	(27,721)	35,027
Other – net	(10,281)	(5,872)	(1,421)
Net cash provided by operating activities	1,002,976	989,904	959,814
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, buildings and equipment and intangibles	(284,249)	(373,868)	(387,390)
Proceeds from sales of assets	55,023	14,857	26,755
Equity method investment	(34,103)	(20,382)	0
Cash paid for business acquisitions	(159)	(464,431)	(30,713)
Other – net	1,224	466	7,290
Net cash used in investing activities	(262,264)	(843,358)	(384,058)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in commercial paper	39,748	325,000	5,000
Borrowings under lines of credit	36,055	54,770	108,721
Payments against lines of credit	(37,358)	(78,559)	(117,277)
Proceeds from issuance of long-term debt	515,985	1,307,183	150,504
Payments of long-term debt	(262,248)	(52,838)	(170,907)
Proceeds from stock options exercised	34,125	60,885	48,579
Excess tax benefits from stock-based compensation	11,905	27,553	33,772
Purchase of treasury stock	(789,773)	(1,400,071)	(525,120)
Cash dividends paid	(302,971)	(306,474)	(291,395)
Net cash used in financing activities	(754,532)	(62,551)	(758,123)
Exchange rate effect on cash and cash equivalents	(2,170)	(20,503)	(21,633)
NET CHANGE IN CASH AND CASH EQUIVALENTS:	(15,990)	63,492	(204,000)
Cash and cash equivalents at beginning of year	290,136	226,644	430,644
Cash and cash equivalents at end of year	274,146	290,136	226,644
Supplemental cash flow information:
Cash payments for interest (net of amounts capitalized)	63,143	31,591	10,172
Cash payments for income taxes	$ 359,506	$ 442,486	$ 509,378

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2013		$ 54,830	$ 893,055	$ 5,822,612	$ 28,914	$ (3,548,973)	$ 76,398
Exercise of stock options		0	4,709	0	0	42,920	872
Tax benefits on stock-based compensation awards		0	36,618	0	0	0	0
Stock option expense		0	14,547	0	0	0	152
Amortization of other stock-based compensation awards		0	31,480	0	0	0	0
Settlement and vesting of other stock-based compensation awards		0	(32,711)	0	0	(1,636)	0
Purchase of treasury stock			0	0		(524,926)	(194)
Net earnings attributable to W.W. Grainger, Inc.	$ 801,729	0	0	801,729	0	0
Net earnings attributable to noncontrolling interest	10,567						10,567
Other comprehensive (losses) earnings	(135,467)	0	0	0	(125,587)	0	(9,880)
Cash dividends paid		0	642	(288,351)	0	0	(3,686)
Ending balance at Dec. 31, 2014		54,830	948,340	6,335,990	(96,673)	(4,032,615)	74,229
Exercise of stock options		0	1,454	0	0	58,713	460
Tax benefits on stock-based compensation awards		0	31,614	0	0	0	0
Stock option expense		0	14,311	0	0	0	163
Amortization of other stock-based compensation awards		0	28,332	0	0	0	0
Settlement and vesting of other stock-based compensation awards		0	(24,235)	0	0	4,122	0
Purchase of treasury stock			0	0		(1,399,931)	(140)
Net earnings attributable to W.W. Grainger, Inc.	768,996	0	0	768,996	0	0
Net earnings attributable to noncontrolling interest	16,178						16,178
Other comprehensive (losses) earnings	(124,950)	0	0	0	(124,418)	0	(532)
Cash dividends paid		0	660	(302,856)	0	0	(4,278)
Ending balance at Dec. 31, 2015	2,352,714	54,830	1,000,476	6,802,130	(221,091)	(5,369,711)	86,080
Exercise of stock options		0	(2,216)	0	0	36,131	58
Tax benefits on stock-based compensation awards		0	12,284	0	0	0	0
Stock option expense		0	11,508	0	0	0	441
Amortization of other stock-based compensation awards		0	23,407	0	0	0	0
Settlement and vesting of other stock-based compensation awards		0	(15,921)	0	0	5,176	0
Purchase of treasury stock			0	0		(800,012)	(130)
Net earnings attributable to W.W. Grainger, Inc.	605,928	0	0	605,928	0	0
Net earnings attributable to noncontrolling interest	26,910						26,910
Other comprehensive (losses) earnings	(50,297)	0	0	0	(51,203)	0	3,664
Cash dividends paid		0	718	(294,499)	0	0	(9,190)
Ending balance at Dec. 31, 2016	$ 1,905,768	$ 54,830	$ 1,030,256	$ 7,113,559	$ (272,294)	$ (6,128,416)	$ 107,833

CONSOLIDATED STATEMENTS OF SHA9

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividends paid per share (in dollars per share)	$ 4.83	$ 4.59	$ 4.17

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INDUSTRY INFORMATION 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. In this report, the words “Company” or “Grainger” mean W.W. Grainger, Inc. and its subsidiaries. PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of the Company and its subsidiaries over which the Company exercises control. All significant intercompany transactions are eliminated from the consolidated financial statements. The Company has a 51% ownership in MonotaRO Co., with the residual representing the noncontrolling interest. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates. FOREIGN CURRENCY TRANSLATION The U.S. dollar is the reporting currency for all periods presented. The financial statements of the Company’s foreign operating subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of the Company’s foreign operating subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at average rates in effect during the period. Net exchange gains or losses resulting from the translation of financial statements of foreign operations and related long-term debt are recorded as a separate component of other comprehensive earnings. See Note 13 to the Consolidated Financial Statements. Foreign currency transaction gains and losses are included in the Consolidated Statement of Earnings. RECLASSIFICATIONS Certain amounts in the 2015 and 2014 financial statements, as previously reported, have been reclassified to conform to the 2016 presentation. See Note 3 to the Consolidated Financial Statements. These changes did not have a material impact on the Consolidated Financial Statements. REVENUE RECOGNITION Revenues recognized include product sales, billings for freight and handling charges and fees earned for services provided. The Company recognizes product sales and billings for freight and handling charges primarily on the date products are shipped to, or picked up by, the customer. In cases where the product is shipped directly to the customer, the Company recognizes revenue at the time of shipment primarily on a gross basis. The Company's standard shipping terms are FOB shipping point. On occasion, the Company will negotiate FOB destination terms. These sales are recognized upon delivery to the customer. eCommerce revenues, which accounted for 47% of total 2016 revenues, are recognized on the same terms as revenues through other channels. Fee revenues, which accounted for less than 1% of total 2016 revenues, are recognized after services are completed including related service costs. Taxes collected from customers and remitted to governmental authorities are presented on a net basis and are not included in revenue. COST OF MERCHANDISE SOLD Cost of merchandise sold includes product and product-related costs, vendor consideration, freight-out and handling costs. The Company defines handling costs as those costs incurred to fulfill a shipped sales order. VENDOR CONSIDERATION The Company receives rebates and allowances from its vendors to promote their products. The Company utilizes numerous advertising programs to promote its vendors' products, including catalogs and other printed media, Internet, radio and other marketing programs. Most of these programs relate to multiple vendors, which makes supporting the specific, identifiable and incremental criteria difficult, and would require numerous assumptions and judgments. Based on the inexact nature of trying to track reimbursements to the advertising expenditure for each vendor, the Company treats most vendor advertising allowances as a reduction to product purchase price and is reflected in Cost of merchandise sold rather than a reduction of operating (advertising) expenses. Vendor funds that are determined to be reimbursement of specific, incremental and identifiable costs incurred to promote vendors' products are recorded as an offset to the related expenses in Warehouse, marketing and administrative expenses. Rebates earned from vendors that are based on product purchases are capitalized into inventory as part of product purchase price. These rebates are credited to Cost of merchandise sold based on sales. Vendor rebates that are earned based on products sold are credited directly to Cost of merchandise sold. ADVERTISING Advertising costs are expensed in the year the related advertisement is first presented. Advertising expense was $ 180 million , $ 180 million and $ 169 million for 2016, 2015 and 2014 , respectively. Most vendor-provided allowances are classified as a reduction to product purchase price and is reflected in Cost of merchandise sold. For additional information see VENDOR CONSIDERATION above. Catalog expense is amortized equally over the life of the catalog, beginning in the month of its distribution. Advertising costs for catalogs that have not been distributed by year-end are capitalized as Prepaid expenses. Amounts included in Prepaid expenses at December 31, 2016 and 2015 , were $ 12 million and $ 19 million , respectively. WAREHOUSING, MARKETING AND ADMINISTRATIVE EXPENSES Included in this category are purchasing, branch operations, information services and marketing and selling expenses, as well as other types of general and administrative costs. STOCK INCENTIVE PLANS The Company measures all share-based payments using fair-value-based methods and records compensation expense related to these payments over the vesting period. See Note 11 to the Consolidated Financial Statements. INCOME TAXES Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between financial and tax reporting. The Company recognizes in the financial statements a provision for tax uncertainties, resulting from application of complex tax regulations in multiple tax jurisdictions. The Company evaluates our deferred income taxes to determine if valuation allowances are required using a “more likely than not” standard. This assessment considers the nature, frequency and amount of book and taxable income and losses, the duration of statutory carryback and forward periods, future reversals of existing taxable temporary differences and tax planning strategies, among other matters. See Note 14 to the Consolidated Financial Statements. OTHER COMPREHENSIVE EARNINGS (LOSSES) The Company's Other comprehensive earnings (losses) include foreign currency translation adjustments, changes in fair value of derivatives designated as hedges and unrecognized gains (losses) on postretirement and other employment-related benefit plans. Accumulated other comprehensive earnings (losses) (AOCE) are presented separately as part of shareholders' equity. See Note 13 to the Consolidated Financial Statements. CASH AND CASH EQUIVALENTS The Company considers investments in highly liquid debt instruments, purchased with an original maturity of 90 days or less, to be cash equivalents. CONCENTRATION OF CREDIT RISK The Company places temporary cash investments with institutions of high credit quality and, by policy, limits the amount of credit exposure to any one institution. The Company has a broad customer base representing many diverse industries doing business in all regions of the United States, Canada, Europe, Asia and Latin America. Consequently, no significant concentration of credit risk is considered to exist. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are stated at their estimated net realizable value. The Company establishes reserves for customer accounts that are potentially uncollectible. The method used to estimate the allowances is based on several factors, including the age of the receivables and the historical ratio of actual write-offs to the age of the receivables. These analyses also take into consideration economic conditions that may have an impact on a specific industry, group of customers or a specific customer. See Note 4 to the Consolidated Financial Statements. INVENTORIES Inventories are valued at the lower of cost or market. Cost is determined primarily by the last-in, first-out (LIFO) method, which accounts for approximately 64% of total inventory. For the remaining inventory, cost is determined by the first-in, first-out (FIFO) method. Grainger establishes inventory reserves for obsolete inventory. Grainger regularly reviews inventory to evaluate continued demand and identify any obsolete or excess quantities. Grainger records provisions for the difference between excess and obsolete inventory cost and its estimated realizable value. PROPERTY, BUILDINGS AND EQUIPMENT Property, buildings and equipment are valued at cost. For financial statement purposes, depreciation and amortization are recorded in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on the declining-balance and sum-of-the-years-digits depreciation methods. The Company's international businesses record depreciation expense primarily on a straight-line basis. The principal estimated useful lives for determining depreciation are as follows: Buildings, structures and improvements 10 to 30 years Furniture, fixtures, machinery and equipment 3 to 10 years Depreciation expense was $166 million , $162 million and $154 million for the years ended December 31, 2016, 2015 and 2014, respectively. Improvements to leased property are amortized over the initial terms of the respective leases or the estimated service lives of the improvements, whichever is shorter. The Company capitalized interest costs of $ 2 million , $ 4 million and $ 2 million for the years ended December 31, 2016, 2015 and 2014, respectively. LONG-LIVED ASSETS The carrying value of long-lived assets, primarily property, buildings and equipment and amortizable intangibles, is evaluated whenever events or changes in circumstances indicate that the carrying value of the asset may be impaired. An impairment loss is recognized when estimated undiscounted future cash flows resulting from use of the asset, including disposition, are less than the carrying value of the asset. Impairment is measured as the amount by which the asset's carrying amount exceeds the fair value. GOODWILL AND OTHER INTANGIBLES Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for impairment on an annual basis and more often if circumstances require. Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value. The Company recognizes an acquired intangible apart from goodwill whenever the intangible arises from contractual or other legal rights, or whenever it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Such intangibles are amortized over their estimated useful lives unless the estimated useful life is determined to be indefinite. The straight-line method of amortization is used as it has been determined to approximate the use pattern of the asset. The Company also maintains intangible assets with indefinite lives, which are not amortized. These intangibles are tested for impairment on an annual basis and more often if circumstances require. Impairment losses are recognized whenever the estimated fair value of these assets is less than their carrying value. See Note 3 to the Consolidated Financial Statements. The Company capitalizes certain costs related to the purchase and development of internal-use software. Amortization of capitalized software is on a straight-line basis over three or five years. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these financial instruments. See Note 8 to the Consolidated Financial Statements for fair value of long-term debt. 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 expenses. For warranty expenses not covered by the manufacturer, the Company provides a reserve for future costs based primarily on historical experience. Warranty reserves were $3 million at December 31, 2016 and 2015 . CONTINGENCIES The Company accrues for costs relating to litigation claims and other contingent matters, when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. NEW ACCOUNTING STANDARDS In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Board (ASU) 2015-11, Simplifying the Measurement of Inventory, which simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value (NRV) test. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years and for interim periods within those fiscal years beginning after December 15, 2016, and prospective adoption is required. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities . This change to the financial instrument model primarily affects the accounting for equity investments, financial liabilities under fair value options and the presentation and disclosure requirements for financial instruments. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2017. Certain provisions of the new guidance can be adopted early. The Company is evaluating the impact of this ASU. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU improves transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of this ASU. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting .This ASU eliminates the requirement to retroactively adjust the investment, results of operations and retained earnings when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. The amendment requires that the investor add the cost of acquiring the additional interest to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2016. The amendment should be applied prospectively and early application is permitted. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Stock Based Compensation: Improvements to Employee Share-Based Payment Accounting . This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures and statutory tax withholdings requirements, as well as classification in the statement of cash flows. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2016. Early adoption is permitted. If early adoption is elected, all amendments in the ASU that apply must be adopted in the same period. The Company has elected not to early adopt this ASU. The Company expects the new guidance to impact its tax expense and dilutive shares outstanding calculation, with a potentially dilutive impact on future earnings per share and increased period-to-period variability of net earnings. The impact cannot be quantified due to the timing and exercise activity that will occur in future periods. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU affects an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration and how the entity applies current GAAP. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact of this ASU. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory. This ASU eliminates the existing exception in U.S. GAAP that prohibits the recognition of income tax consequences for most intra-entity asset transfers. The effective date of this ASU is fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-17, Consolidation - Interests Held Through Related Parties That Are Under Common Control. This ASU amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements. This ASU represents changes to clarify, correct errors or make minor improvements to the Accounting Standards Codification. The amendments make the Accounting Standards Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Most of the amendments in this Update do not require transition guidance and are effective upon issuance of this Update. Six amendments in this Update clarify guidance or correct references in the Accounting Standards Codification that could potentially result in changes in current practice because of either misapplication or misunderstanding of current guidance. Early adoption is permitted for the amendments that require transition guidance. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The effective date of this ASU is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of this ASU. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU is to simplify how an entity is required to test goodwill for impairment. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company's goodwill impairment testing for the fiscal period beginning January 1, 2018, will follow the provisions of this ASU. REVENUE RECOGNITION STANDARDS In July 2015, FASB announced a one-year delay in the effective date of ASU 2014-09, Revenue from Contracts with Customers. This ASU will now be effective for interim and annual periods beginning after December 15, 2017. The standard 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 contracts with customers. The standard permits adoption as early as the original effective date, which was for interim and annual periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, Revenue from Contract with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This ASU is meant to reduce the potential for diversity in practice arising from inconsistent application of the principal versus agent guidance as well as reduce the cost and complexity during the transition and on an ongoing basis. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing . This ASU is meant to clarify the identification of performance obligations and the licensing implementation guidelines, while retaining the related principles of those areas. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. This ASU includes technical corrections and improvements to Topic 606 and other Topics amended by Update 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. The effective dates of ASU 2016-08, ASU 2016-10 and ASU 2016-20 are consistent with ASU 2014-09. The Company has elected not to early adopt these ASUs. The standard permits the use of either the full retrospective or the modified retrospective adoption method. The Company is planning to elect the modified retrospective method and recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity as of January 1, 2018. These ASUs require expanded qualitative and quantitative disclosures of revenue and cash flows emerging from Contracts with Customers. The Company has evaluated the provisions of the new standard and is in the process of assessing its impact on financial statements, information systems, business processes and financial statement disclosures. Based on initial reviews, the standard is not expected to have a material impact on the Company's Consolidated Financial Statements.

BUSINESS ACQUISITIONS AND DIVES

BUSINESS ACQUISITIONS AND DIVESTITURES	12 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
BUSINESS ACQUISITIONS AND DIVESTITURES	BUSINESS ACQUISITIONS AND DIVESTITURES On September 1, 2015, the Company acquired all of the issued share capital of Cromwell Group (Holdings) Limited (Cromwell). With sales of £285 million ( $437 million ) for fiscal year ending August 31, 2015, prior to the acquisition, Cromwell was the largest independent MRO distributor in the United Kingdom. This acquisition brings together Cromwell's product strength and customer relationships with Grainger's expertise in supply chain and eCommerce to accelerate growth in the core and online Cromwell business. The Company paid £310 million ( $464 million ), subject to customary adjustments, for the Cromwell acquisition. The acquisition was partially funded with newly issued debt in the United Kingdom. The goodwill recorded in the acquisition totaled approximately $123 million . The goodwill is not deductible for tax purposes. The intangibles recorded in the acquisition consisted primarily of tradename (approximately $84 million ) and customer relationships (approximately $132 million ) intangibles. The tradename is deemed to have an indefinite life and the customer relationship will be amortized over 15 years. The purchase price allocation has been finalized during 2016 and the impact to the consolidated financial statements was not material. Disclosure of pro forma results was not required. During 2014, the Company announced plans to close the business in Brazil. In 2014, the Company recorded shutdown costs of $29 million in the Consolidated Statement of Earnings, including $9 million reclassified from Accumulated other comprehensive earnings (losses) related to foreign currency translation losses from the consolidation of the business unit.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
GOODWILL AND OTHER INTANGIBLES [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS The balances and changes in the carrying amount of Goodwill by segment are as follows (in thousands of dollars): United States Canada Other Businesses Total Balance at January 1, 2015 $ 202,020 $ 141,189 $ 163,696 $ 506,905 Acquisitions — — 114,903 114,903 Translation — (22,660 ) (16,812 ) (39,472 ) Balance at December 31, 2015 202,020 118,529 261,787 582,336 Acquisitions and Purchase Price Adjustments — — 8,362 8,362 Impairment — — (47,244 ) (47,244 ) Translation — 3,611 (19,915 ) (16,304 ) Balance at December 31, 2016 $ 202,020 $ 122,140 $ 202,990 $ 527,150 Cumulative goodwill impairment charges, January 1, 2016 $ 17,038 $ 32,265 $ 23,055 $ 72,358 Goodwill impairment charges — — 47,244 47,244 Cumulative goodwill impairment charges, December 31, 2016 $ 17,038 $ 32,265 $ 70,299 $ 119,602 Business acquisitions result in the recording of goodwill and identified intangible assets that affect the amount of amortization expense and possible impairment write-downs that may occur in future periods. Grainger annually reviews goodwill and intangible assets with indefinite lives for impairment in the fourth quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Grainger tests for goodwill impairment at the reporting unit level and performs a qualitative assessment of factors such as a reporting unit's current performance and overall economic conditions to determine if it is more likely than not that the goodwill might be impaired and whether it is necessary to perform the two-step quantitative goodwill impairment test. In the two-step test, Grainger compares the carrying value of assets of the reporting unit to its calculated fair value. If the carrying value of assets of the reporting unit exceeds its calculated fair value, the second step is performed, where the implied fair value of goodwill is compared to the carrying value of that goodwill, to determine the amount of impairment. The fair value of reporting units is calculated primarily using the discounted cash flow (DCF) method and incorporating value indicators from a market approach to evaluate the reasonableness of the resulting fair values. The DCF method incorporates various assumptions including the amount and timing of future expected cash flows, including revenues, gross margins, operating expenses, capital expenditures and working capital based on operational budgets, long-range strategic plans and other estimates. The terminal value growth rate is used to calculate the value of cash flows beyond the last projected period and reflects management’s best estimates for perpetual growth for the reporting units. Estimates of market-participant risk-adjusted weighted average cost of capital are used as a basis for determining the discount rates to apply to the reporting units’ future expected cash flows and terminal value. Grainger completed its annual goodwill impairment testing during the fourth quarter. For all of the Company’s reporting units, the estimated fair values substantially exceeded the carrying values, except for the Fabory reporting unit. As of the 2015 test, the fair value of the Fabory reporting unit exceeded its $106 million carrying value by 15% . During the current year testing, Grainger considered Fabory’s performance and the revised outlook. Prior branch rationalization initiatives and structural changes in the business contributed to cost improvements. However, declines in sales, primarily in the Netherlands and France, and price pressure contributed to lower earnings for the year. The current year business performance and revised financial projections also reflect market conditions, which continued to be negatively impacted by the downturn in oil and gas and maritime industries in the Netherlands, Fabory’s largest market. The revised outlook and uncertainty beyond 2016 were factored into lower earnings, cash flow projections and long-term expectations for Fabory’s future performance, resulting in the calculated fair value of the reporting unit below its carrying value in step one of the two-step quantitative test, and step two impairment calculations were required. As a result, the Company recorded a $47 million goodwill impairment charge with no tax benefit due to the nondeductibility of goodwill in the relevant taxing jurisdictions. The risk of potential failure of step one of the impairment test for Fabory’s remaining goodwill of $55 million as of December 31, 2016, is highly dependent upon a number of assumptions included in the determination of the reporting unit’s fair value. Changes in assumptions regarding discount rate and future performance may have a significant impact on the fair value of the reporting unit in the future. If future earnings and cash flow projections are not achieved or unfavorable economic environment continues in Fabory’s key markets, future impairment of the remaining goodwill or intangible assets could result. The balances and changes in Intangible assets - net are as follows (in thousands of dollars): As of December 31, 2016 2015 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer lists and relationships 14.2 years $ 424,405 $ 175,112 $ 249,293 $ 452,429 $ 148,424 $ 304,005 Trademarks, trade names and other 13.8 years 25,353 14,262 11,091 25,764 13,051 12,713 Non-amortized trade names and other 128,282 — 128,282 146,576 — 146,576 Capitalized software 4.2 years 571,978 374,518 197,460 504,283 319,567 184,716 Total intangible assets 8.5 years $ 1,150,018 $ 563,892 $ 586,126 $ 1,129,052 $ 481,042 $ 648,010 Capitalized software of $185 million was previously reported in Other Assets as of December 31, 2015. The amount was reclassified to Intangibles - net to conform to the 2016 presentation. Amortization expense recognized on intangible assets was $ 82 million , $ 65 million and $ 54 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, and is included in Warehousing, marketing and administrative expenses on the Consolidated Statement of Earnings. Estimated amortization expense for future periods is as follows (in thousands of dollars): Year Expense 2017 $ 85,791 2018 75,502 2019 58,309 2020 43,488 2021 31,716 Thereafter 163,038

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS	12 Months Ended
	Dec. 31, 2016
ALLOWANCE FOR DOUBTFUL ACCOUNTS [Abstract]
ALLOWANCE FOR DOUBTFUL ACCOUNTS	ALLOWANCE FOR DOUBTFUL ACCOUNTS The following table shows the activity in the allowance for doubtful accounts (in thousands of dollars): For the Years Ended December 31, 2016 2015 Balance at beginning of period $ 22,288 $ 22,121 Provision for uncollectible accounts 16,216 10,181 Write-off of uncollectible accounts, net of recoveries (11,248 ) (10,495 ) Business acquisitions, foreign currency and other (566 ) 481 Balance at end of period $ 26,690 $ 22,288

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories primarily consist of merchandise purchased for resale. Inventories would have been $ 382 million and $ 388 million higher than reported at December 31, 2016 and 2015, respectively, if the FIFO method of inventory accounting had been used for all Company inventories. Net earnings would have decreased by $ 3 million and $ 1 million, and increased by $ 1 million for the years ended December 31, 2016, 2015 and 2014, respectively , using the FIFO method of accounting. Inventory values using the FIFO method of accounting approximate replacement cost. The Company provides reserves for excess and obsolete inventory. The following table shows the activity in the reserves for excess and obsolete inventory (in thousands of dollars): For the Years Ended December 31, 2016 2015 Balance at beginning of period $ (168,105 ) $ (136,748 ) Provision for excess and obsolete inventory (58,485 ) (35,165 ) Disposal of unsaleable inventory 30,161 24,046 Business acquisitions, foreign currency and other 4,915 (20,238 ) Balance at end of period $ (191,514 ) $ (168,105 )

RESTRUCTURING RESERVES

RESTRUCTURING RESERVES	12 Months Ended
	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
RESTRUCTURING RESERVES	RESTRUCTURING RESERVES The Company recorded employee termination benefits with the majority expected to be paid through 2017 related to the restructuring. Severance costs of approximately $34 million and $30 million were recorded in the years ended December 31, 2016 and 2015, respectively, and are included in Warehousing, marketing and administrative expenses. The reserve balance as of December 31, 2016 and 2015 was approximately $23 million and $24 million , respectively, and is included in Accrued Compensation and Benefits.

SHORT-TERM DEBT

SHORT-TERM DEBT	12 Months Ended
	Dec. 31, 2016
Short-term Debt [Abstract]
SHORT-TERM DEBT	SHORT-TERM DEBT Short-term debt consisted of the following (in thousands of dollars): As of December 31, 2016 2015 Lines of Credit Outstanding at December 31 $ 16,392 $ 23,072 Maximum month-end balance during the year $ 24,722 $ 47,802 Weighted average interest rate during the year 4.04 % 4.37 % Weighted average interest rate at December 31 5.13 % 3.16 % Commercial Paper Outstanding at December 31 $ 369,748 $ 330,000 Maximum month-end balance during the year $ 629,712 $ 330,000 Weighted average interest rate during the year 0.50 % 0.23 % Weighted average interest rate at December 31 0.69 % 0.47 % Lines of Credit The Company's U.S. business had a committed line of credit of $900 million in 2016 and 2015 for which the Company paid a commitment fee of 0.07% in 2016 and 2015 . This line of credit supports the issuance of commercial paper. The current line is due to expire in August 2018 . Foreign subsidiaries also utilize lines of credit to meet business growth and operating needs. The Company had $88 million and $100 million of uncommitted lines of credit at December 31, 2016 and 2015 , respectively. Commercial Paper The Company issued commercial paper for general working capital needs. Letters of Credit The Company's U.S. business had $ 30 million and $29 million of letters of credit at December 31, 2016 and 2015 , respectively, primarily related to the Company's insurance program. Letters of credit were also issued to facilitate purchases of products. These issued amounts were $ 5 million and $3 million at December 31, 2016 and 2015, respectively. Letters of credit issued by the Company's international businesses were immaterial.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2016
Long-term Debt, Unclassified [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt consisted of the following (in thousands of dollars): As of December 31, 2016 2015 4.60% senior notes due 2045 $ 1,000,000 $ 1,000,000 3.75% senior notes due 2046 400,000 — U.S. dollar term loan — 114,614 British pound term loan and revolving credit facility 187,506 235,808 Euro term loan and revolving credit facility 120,900 114,030 Canadian dollar revolving credit facility 100,521 108,389 Other 71,109 75,866 1,880,036 1,648,707 Less current maturities (19,966 ) (247,346 ) Debt issuance costs and discounts (19,124 ) (12,947 ) $ 1,840,946 $ 1,388,414 Senior Notes On May 16, 2016, the Company issued $400 million of unsecured 3.75% Senior Notes ( 3.75% Notes) that mature on May 15, 2046. The 3.75% Notes require no principal payments until the maturity date and interest is payable semi-annually on May 15 and November 15, beginning on November 15, 2016. Prior to November 15, 2045, the Company may redeem the 3.75% Notes in whole at any time or in part from time to time at a “make-whole” redemption price. This redemption price is calculated by reference to the then-current yield on a U.S. treasury security with a maturity comparable to the remaining term of the 3.75% Notes plus 20 basis points, together with accrued and unpaid interest, if any, to the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the 3.75% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, to the date of purchase. On or after November 15, 2045, the Company may redeem the 3.75% Notes in whole at any time or in part from time to time at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. Costs and discounts of approximately $7 million associated with the issuance of the 3.75% Notes, representing underwriting fees and other expenses, have been recorded as a contra-liability within Long-term debt and will be amortized to interest expense over the term of the 3.75% Notes. The fair value of the 3.75% Notes was approximately $371 million as of December 31, 2016 . On June 11, 2015, the Company issued $1 billion of unsecured 4.60% Senior Notes ( 4.60% Notes) that mature on June 15, 2045. The 4.60% Notes require no principal payments until the maturity date and interest is payable semi-annually on June 15 and December 15, beginning on December 31, 2015. Prior to December 15, 2044, the Company may redeem the 4.60% Notes in whole at any time or in part from time to time at a “make-whole” redemption price. This redemption price is calculated by reference to the then-current yield on a U.S. treasury security with a maturity comparable to the remaining term of the 4.60% Notes plus 25 basis points, together with accrued and unpaid interest, if any, to the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the 4.60% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, to the date of purchase. On or after December 15, 2044, the Company may redeem the 4.60% Notes in whole at any time or in part from time to time at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. Costs and discounts of approximately $11 million associated with the issuance of the 4.60% Notes, representing underwriting fees and other expenses, have been recorded as a contra-liability within Long-term debt and will be amortized to interest expense over the term of the 4.60% Notes. The fair value of the 4.60% Notes was approximately $1.1 billion and $1 billion as of December 31, 2016 and 2015 , respectively. The estimated fair value of the Company’s 3.75% Notes and 4.60% Notes was based on available external pricing data and current market rates for similar debt instruments, among other factors, which are classified as level 2 inputs within the fair value hierarchy. The carrying value of other long-term debt approximates fair value due to the variable interest rates. U.S. Dollar Term Loan In January 2016, the Company exercised its option to prepay the U.S. dollar loan and paid off the remaining balance of the loan. British Pound Term Loan and Revolving Credit Facility On August 26, 2015, the Company entered into an unsecured credit facilities agreement providing for a five -year term loan of £160 million and revolving credit facility of £20 million . Proceeds of the term loan were used to partially fund the acquisition of Cromwell and to pay certain costs related to the acquisition. Under the agreement, the principal amount of the term loan will be repaid semiannually in installments of £4 million beginning February 2016 through February 2020 with the remaining outstanding amount due August 2020. At the election of the Company, the term loan bears interest at the London Interbank Offered Rate (LIBOR) Rate plus the Applicable Margin as defined within the term loan agreement. At December 31, 2016, the Company had elected a one-month LIBOR Interest Period. The weighted average interest rate was 1.17% and 1.26% for the years ended December 31, 2016 and 2015, respectively. The Company has the right to obtain advances under the revolving credit facility, which will be used for general corporate and working capital purposes. Pursuant to the credit agreement, there is a commitment fee of 0.26% as of December 31, 2016. There is no balance outstanding on the revolving credit facility as of December 31, 2016. Euro Term Loan and Revolving Credit Facility On August 31, 2016, the Company entered into an agreement for a five year term loan of €110 million and a revolving credit facility of up to €20 million . The proceeds from the term loan were used to pay in full €102.5 M of a term loan that matured in August 2016, which was entered into to partially fund the acquisition of Fabory in 2011. Under the agreement, no principal amount of the loan will be required to be paid until the loan becomes due on August 31, 2021, at which time the loan will be required to be paid in full. The Company, at its option, may prepay this term loan in whole or in part at the end of any interest period without penalty. The loan bears interest at the Euro Interbank Offered Rate (EURIBOR) plus a margin of 45 basis points. If EURIBOR is less than zero, then EURIBOR will be deemed to be zero. The interest rate at December 31, 2016, was 0.45% . Costs of approximately €0.5 million associated with the issuance of the term loan, representing arrangement fees and other expenses, have been recorded as a contra-liability within Long-term debt and will be amortized to interest expense over the life of the term loan. The revolving credit facility must generally be paid at the conclusion of each interest period as defined in the facility agreement. This facility will bear interest at EURIBOR plus a margin of 35 basis points. The Company has the right to obtain advances under the revolving credit facility, which will be used for general corporate and working capital purposes. Pursuant to the credit agreement, there is a commitment fee of 0.1225% as of December 31, 2016. There is €5 M outstanding on the revolving credit facility as of December 31, 2016. The interest rate on the outstanding amount at December 31, 2016, was 0.35% . Canadian Dollar Revolving Credit Facility In September 2014 , the Company 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 0.07% as of December 31, 2016, and the facility matures on September 24, 2019 . As of December 31, 2016 and 2015, the Company had drawn C$ 135 million and C$ 150 million , respectively, under the facility for the purpose of repaying an intercompany loan and to fund general working capital needs. The weighted average interest rate during the year on this outstanding amount was 1.59% . No principal payments are required on the credit facility until the maturity date. The scheduled aggregate principal payments related to long-term debt, excluding debt issuance costs, are due as follows (in thousands of dollars): Year Payment Amount 2017 $ 19,966 2018 29,339 2019 128,670 2020 179,322 2021 115,743 Thereafter 1,406,996 Total $ 1,880,036 The Company's debt instruments include affirmative and negative covenants that are usual and customary for companies with similar credit ratings. The Company was in compliance with all debt covenants as December 31, 2016 .

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFITS [Abstract]
EMPLOYEE BENEFITS	EMPLOYEE BENEFITS The Company provides various retirement benefits to eligible employees, including contributions to defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits and other benefits. Eligibility requirements and benefit levels vary depending on employee location. Various foreign benefit plans cover employees in accordance with local legal requirements. Defined Contribution Plans A majority of the Company's U.S. employees are covered by a noncontributory profit-sharing plan. Effective January 1, 2016, the plan was amended to better align Company contributions to Company performance and now includes two components, a variable annual contribution based on a rate of return on invested capital and an automatic contribution equal to 3% of total eligible compensation to a 401(k) plan. In addition, employees covered by the plan are also able to make personal contributions to the 401(k) plan. The total Company contribution will be maintained at a minimum of 8% and a maximum of 18% of total eligible compensation paid to eligible employees. The total profit-sharing plan expense was $ 84 million , $ 121 million and $ 175 million for 2016, 2015 and 2014 , respectively. The Company sponsors additional defined contribution plans available to certain U.S. and foreign employees for which contributions are paid by the Company and participating employees. The expense associated with these defined contribution plans totaled $12 million , $11 million and $15 million for 2016, 2015 and 2014 , respectively. Defined Benefit Plans and Other Retirement Plans The Company sponsors defined benefit plans available to certain foreign employees. The cost of these programs is not significant to the Company. In certain countries, pension contributions are made to government-sponsored social security pension plans in accordance with local legal requirements. For these plans, the Company has no continuing obligations other than the payment of contributions. Postretirement Benefits The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its U.S. 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 benefits costs charged to operating expenses, which were valued with a measurement date of January 1 for each year, consisted of the following components (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Service cost $ 8,238 $ 10,128 $ 9,005 Interest cost 9,855 9,649 10,549 Expected return on assets (10,113 ) (10,375 ) (8,237 ) Amortization of prior service credit (6,688 ) (6,801 ) (7,254 ) Amortization of transition asset — — (143 ) Amortization of unrecognized losses 129 1,512 779 Net periodic benefits costs $ 1,421 $ 4,113 $ 4,699 Reconciliations of the beginning and ending balances of the postretirement benefit obligation, which is calculated as of December 31 measurement date, the fair value of plan assets available for benefits and the funded status of the benefit obligation follow (in thousands of dollars): 2016 2015 Benefit obligation at beginning of year $ 239,348 $ 282,917 Service cost 8,238 10,128 Interest cost 9,855 9,649 Plan participants' contributions 2,943 2,754 Actuarial losses (gains) 13,218 (58,251 ) Benefits paid (9,439 ) (8,739 ) Prescription drug rebates 865 890 Benefit obligation at end of year 265,028 239,348 Plan assets available for benefits at beginning of year 155,611 156,015 Actual returns on plan assets 13,557 1,635 Employer's contributions — 2,747 Plan participants' contributions 2,774 2,754 Benefits paid (9,262 ) (8,430 ) Prescription drug rebates 865 890 Plan assets available for benefits at end of year 163,545 155,611 Noncurrent postretirement benefit obligation $ 101,483 $ 83,737 The amounts recognized in AOCE consisted of the following (in thousands of dollars): As of December 31, 2016 2015 Prior service credit $ 53,814 $ 60,502 Unrecognized losses (12,656 ) (3,015 ) Deferred tax (liability) (15,861 ) (22,134 ) Net accumulated gains $ 25,297 $ 35,353 The $10 million increase in unrecognized losses was primarily driven by a decrease in the discount rate and revised healthcare cost trends, partially offset by a change in the mortality improvement tables used and a change in per capita costs. The components of AOCE related to the postretirement benefit costs that will be amortized into net periodic postretirement benefit costs in 2017 are estimated as follows (in thousands of dollars): 2017 Amortization of prior service credit $ (6,492 ) Amortization of unrecognized losses 937 Estimated amount to be amortized from AOCE into net periodic postretirement benefit costs $ (5,555 ) The Company has elected to amortize the amount of net unrecognized gains (losses) over a period equal to the average remaining service period for active plan participants expected to retire and receive benefits of approximately 13.5 years for 2016 . The benefit obligation was determined by applying the terms of the plan and actuarial models. These models include various actuarial assumptions, including discount rates, long-term rates of return on plan assets, healthcare cost trend rate and cost-sharing between the Company and the retirees. The Company evaluates its actuarial assumptions on an annual basis and considers changes in these long-term factors based upon market conditions and historical experience. The following assumptions were used to determine net periodic benefit costs at January 1: For the Years Ended December 31, 2016 2015 2014 Discount rate 4.20 % 3.89 % 4.90 % Long-term rate of return on plan assets, net of tax 6.65 % 6.65 % 5.70 % Initial healthcare cost trend rate 7.00 % 7.25 % 7.50 % Ultimate healthcare cost trend rate 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate reached 2026 2026 2026 The following assumptions were used to determine benefit obligations at December 31: 2016 2015 2014 Discount rate 4.00 % 4.20 % 3.89 % Expected long-term rate of return on plan assets, net of tax 7.13 % 6.65 % 6.65 % Initial healthcare cost trend rate 6.81 % 7.00 % 7.25 % Ultimate healthcare cost trend rate 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate reached 2026 2026 2026 The discount rate assumptions reflect the rates available on high-quality fixed income debt instruments as of December 31, the measurement date of each year. These rates have been selected due to their similarity to the duration of the projected cash flows of the postretirement healthcare benefit plan. As of December 31, 2016 , the Company decreased the discount rate from 4.20% to 4.00% to reflect the decrease in the market interest rates, which contributed to the unrealized actuarial loss at December 31, 2016 . As of December 31, 2016, the Company changed the mortality improvement table used to project mortality rates into the future from Mortality Table RP-2014 with Mortality Improvement Scale MB 2015 to Mortality Table RPH-2014 with Mortality Improvement Scale MP 2016, which was published by the Society of Actuaries and reflects the most recent updates to life expectancies. RPH-2014 Table is a headcount weighted table, which is also more appropriate for a postretirement healthcare benefit plan. The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates. As of December 31, 2016 , Grainger adopted a new healthcare trend rate to include a pre and post age 65 trend rates. Post age 65, prescription drug costs, primarily specialty drugs, are expected to increase the cost of healthcare more significantly than medical expenses. The alternative trend rates allow for a better estimate of expected costs for this plan. As of December 31, 2016 , the initial healthcare cost trend rate was 6.81% for pre age 65 and 9.36% for post age 65. The healthcare costs trend rates decline each year until reaching the ultimate trend rate of 4.50% . Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A 1 percentage point change in assumed healthcare cost trend rates would have the following effects on 2016 results (in thousands of dollars): 1 Percentage Point Increase (Decrease) Effect on total service and interest cost $ 1,411 $ (1,162 ) Effect on postretirement benefit obligation 27,542 (22,748 ) The Company has established a Group Benefit Trust (Trust) to fund the plan obligations and process benefit payments. All assets of the Trust are invested in equity funds designed to track to either the Standard & Poor's 500 Index (S&P 500) or the Total International Composite Index. The Total International Composite Index tracks non-U.S. stocks within developed and emerging market economies. This investment strategy reflects the long-term nature of the plan obligation and seeks to take advantage of the earnings potential of equity securities in the global markets and intends to reach a balanced allocation between U.S. and non-U.S. equities. The plan's assets are stated at fair value, which represents the net asset value of shares held by the plan in the registered investment companies at the quoted market prices (Level 1 input). The plan assets available for benefits are net of Trust liabilities, primarily related to deferred income taxes and taxes payable at December 31 (in thousands of dollars): 2016 2015 Registered investment companies: Fidelity Spartan U.S. Equity Index Fund $ 70,950 $ 70,973 Vanguard 500 Index Fund 87,587 78,254 Vanguard Total International Stock 24,056 22,976 Plan Assets 182,593 172,203 Trust liabilities (19,048 ) (16,592 ) Plan assets available for benefits $ 163,545 $ 155,611 The Company uses the long-term historical return on the plan assets and the historical performance of the S&P 500 and the Total International Composite Index to develop its expected return on plan assets. The Company increased the after-tax expected long-term rates of return on plan assets from 6.65% to 7.13% at December 31, 2016, based on the historical average of long-term rates of return and a lower estimated tax rate. This change was due to the nature of the taxable income earned on Trust investments. The required use of an expected long-term rate of return on plan assets may result in recognition of income that is greater or less than the actual return on plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns and, therefore, result in a pattern of income recognition that more closely matches the pattern of the services provided by the employees. The Company's investment policies include periodic reviews by management and trustees at least annually concerning: (1) the allocation of assets among various asset classes (e.g., domestic stocks, international stocks, short-term bonds, long-term bonds, etc.); (2) the investment performance of the assets, including performance comparisons with appropriate benchmarks; (3) investment guidelines and other matters of investment policy and (4) the hiring, dismissal or retention of investment managers. The funding of the Trust is an estimated amount that is intended to allow the maximum deductible contribution under the Internal Revenue Code of 1986 (IRC), as amended. There are zero minimum funding requirements and the Company intends to follow its practice of funding the maximum deductible contribution under the IRC. The Company forecasts the following benefit payments related to postretirement (which include a projection for expected future employee service) for the next ten years (in thousands of dollars): Year Estimated Gross Benefit Payments 2017 $ 8,211 2018 9,236 2019 10,212 2020 11,428 2021 12,692 2022-2026 78,216

LEASES

LEASES	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
LEASES	LEASES The Company leases certain land, buildings and equipment under noncancellable operating leases that expire at various dates through 2036 . Capital leases as of December 31, 2016 , are not considered material. Many of the building leases obligate the Company to pay real estate taxes, insurance and certain maintenance costs, and contain multiple renewal provisions, exercisable at the Company's option. Leases that contain predetermined fixed escalations of the minimum rentals are recognized in rental expense on a straight-line basis over the lease term. Cash or rent abatements received upon entering into certain operating leases are also recognized on a straight-line basis over the lease term. At December 31, 2016, the approximate future minimum lease payments for all operating leases were as follows (in thousands of dollars): Year Future Minimum Lease Payments 2017 $ 59,045 2018 45,504 2019 32,616 2020 15,358 2021 10,333 Thereafter 15,469 Total minimum payments required 178,325 Less amounts representing sublease income (4,063 ) $ 174,262 Rent expense was $81 million for 2016 and $77 million for 2015 and 2014 , respectively. These amounts are net of sublease income of $2 million for each 2016, 2015 and 2014 .

STOCK INCENTIVE PLANS

STOCK INCENTIVE PLANS	12 Months Ended
	Dec. 31, 2016
STOCK INCENTIVE PLANS [Abstract]
STOCK INCENTIVE PLANS	STOCK INCENTIVE PLANS The Company maintains stock incentive plans under which the Company may grant a variety of incentive awards to employees and directors. Non-qualified stock options, performance shares, restricted stock units and deferred stock units have been granted and are outstanding under these plans. In 2015, the Company approved the 2015 Incentive Plan (Plan), which replaced all prior active plans. The Plan authorizes the granting of options to purchase shares at a price equal to the closing market price on the date of the grant. As of December 31, 2016 , there were 2.9 million shares available for grant under the plans. When options are exercised, shares of the Company’s treasury stock are issued. Pretax stock-based compensation expense was $ 35 million, $ 43 million and $ 46 million in 2016, 2015 and 2014 , respectively, and is included in Warehousing, marketing and administrative expenses. Related income tax benefits recognized in earnings were $11 million , $ 13 million and $15 million in 2016, 2015 and 2014 , respectively. Options The Company issues stock option grants to certain employees as part of their incentive compensation. Option awards are granted with an exercise price equal to the closing market price of the Company's stock on the last trading day preceding the date of grant. The options generally vest over three years, although accelerated vesting is provided in certain circumstances. Awards generally expire 10 years from the grant date. Transactions involving stock options are summarized as follows: Shares Subject to Option Weighted Average Price Per Share Options Exercisable Outstanding at January 1, 2014 2,850,455 $ 132.67 1,652,417 Granted 257,693 $ 248.21 Exercised (479,452 ) $ 100.33 Canceled or expired (45,892 ) $ 199.80 Outstanding at December 31, 2014 2,582,804 $ 149.01 1,647,903 Granted 294,522 $ 232.20 Exercised (587,441 ) $ 105.08 Canceled or expired (63,599 ) $ 216.76 Outstanding at December 31, 2015 2,226,286 $ 169.96 1,411,460 Granted 294,874 $ 234.25 Exercised (317,110 ) $ 108.28 Canceled or expired (80,014 ) $ 210.01 Outstanding at December 31, 2016 2,124,036 $ 186.59 1,346,707 At December 31, 2016, there was $ 8.6 million of total unrecognized compensation expense related to nonvested option awards, which the Company expects to recognize over a weighted average period of 1.8 years. The following table summarizes information about stock options (in thousands of dollars): For the years ended December 31, 2016 2015 2014 Fair value of options exercised $ 8,086 $ 14,423 $ 11,167 Total intrinsic value of options exercised 35,800 73,671 71,924 Fair value of options vested 14,535 16,047 16,115 Settlements of options exercised 34,573 61,863 47,974 Information about stock options outstanding and exercisable as of December 31, 2016 , is as follows: Options Outstanding Options Exercisable Weighted Average Weighted Average Range of Exercise Prices Number Remaining Contractual Life Exercise Price Intrinsic Value (000's) Number Remaining Contractual Life Exercise Price Intrinsic Value (000's) $72.14 - $85.82 261,307 1.85 years $ 80.95 $ 39,536 261,307 1.85 years $ 80.95 $ 39,536 $102.26 - $196.31 549,608 3.75 years $ 125.86 58,471 549,608 3.75 years $ 125.86 58,471 $204.01 - $262.14 1,313,121 7.34 years $ 233.03 (1,020 ) 535,792 5.86 years $ 226.51 (22 ) 2,124,036 5.73 years $ 186.59 $ 96,987 1,346,707 4.22 years $ 157.19 $ 97,985 The Company uses a binomial lattice option pricing model for the valuation of stock options. The weighted average fair value of options granted in 2016, 2015 and 2014 was $ 44.94 , $ 46.67 and $ 53.43 , respectively. The fair value of each option granted in 2016, 2015 and 2014 used the following assumptions: For the years ended December 31, 2016 2015 2014 Risk-free interest rate 1.4% 1.5% 2.0% Expected life 6 years 6 years 6 years Expected volatility 24.5% 24.9% 25.0% Expected dividend yield 2.0% 1.9% 1.7% The risk-free interest rate is selected based on yields from U.S. Treasury zero-coupon issues with a remaining term approximately equal to the expected term of the options being valued. The expected life selected for options granted during each year presented represents the period of time that the options are expected to be outstanding based on historical data of option holder exercise and termination behavior. Expected volatility is based upon implied and historical volatility of the Company's closing stock price over a period equal to the expected life of each option grant. Historical Company information is also the primary basis for selection of expected dividend yield assumptions. Performance Shares The Company awards performance-based shares to certain executives. Receipt of Company stock is contingent upon the Company meeting sales growth and/or return on invested capital (ROIC) goals. Each participant is granted a target number of shares; however the number of shares actually awarded at the end of the performance period can fluctuate from the target award, based upon achievement of the sales or ROIC goals. Performance share value is based upon closing market prices on the last trading day preceding the date of award and is charged to earnings on a ratable basis over the vesting period, primarily three , and up to seven years for certain awards, based on the number of shares expected to vest. Holders of performance share awards are not entitled to receive cash payments equivalent to cash dividends. If the performance shares vest, they will be settled by the Company's issuance of common stock in exchange for the performance shares on a one -for-one basis. The following table summarizes the transactions involving performance-based share awards: 2016 2015 2014 Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Beginning nonvested shares outstanding 73,160 $ 232.72 57,236 $ 220.00 57,533 $ 185.02 Issued 60,414 $ 191.38 47,264 $ 227.26 32,194 $ 242.65 Canceled (11,724 ) $ 241.41 (13,108 ) $ 215.01 (6,835 ) $ 190.90 Vested (23,510 ) $ 242.65 (18,232 ) $ 191.36 (25,656 ) $ 177.75 Ending nonvested shares outstanding 98,340 $ 203.91 73,160 $ 232.72 57,236 $ 220.00 At December 31, 2016, there was $ 11.5 million of total unrecognized compensation expense related to performance-based share awards that the Company expects to recognize over a weighted average period of 3.2 years. Restricted Stock Units (RSUs) The Company awards restricted stock units (RSUs) to certain employees and executives. RSUs granted vest over periods from three to seven years from issuance, although accelerated vesting is provided in certain instances. Holders of RSUs are entitled to receive non-forfeitable cash payments equivalent to cash dividends and other distributions paid with respect to common stock. RSUs are settled by the issuance of the Company's common stock on a one -for-one basis. Compensation expense related to RSUs is based upon the closing market price on the last trading day preceding the date of award and is charged to earnings on a straight-line basis over the vesting period. The following table summarizes RSU activity: 2016 2015 2014 Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Beginning nonvested units 432,783 $ 213.45 560,351 $ 182.40 739,717 $ 154.09 Issued 113,909 $ 230.36 104,220 $ 234.21 103,427 $ 248.12 Canceled (62,869 ) $ 229.70 (38,124 ) $ 219.74 (51,410 ) $ 170.98 Vested (110,420 ) $ 193.51 (193,664 ) $ 133.56 (231,383 ) $ 123.82 Ending nonvested units 373,403 $ 221.77 432,783 $ 213.45 560,351 $ 182.40 Fair value of shares vested $21,367 $25,865 $28,650 At December 31, 2016, there was $ 43 million of total unrecognized compensation expense related to nonvested RSUs that the Company expects to recognize over a weighted average period of 3.0 years.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Dec. 31, 2016
CAPITAL STOCK [Abstract]
CAPITAL STOCK	CAPITAL STOCK The Company had no shares of preferred stock outstanding as of December 31, 2016 and 2015 . The activity related to outstanding common stock and common stock held in treasury was as follows: 2016 2015 Outstanding Common Stock Treasury Stock Outstanding Common Stock Treasury Stock Balance at beginning of period 62,028,708 47,630,511 67,432,041 42,227,178 Exercise of stock options 315,171 (315,171 ) 580,947 (580,947 ) Settlement of restricted stock units, net of 41,128 and 73,496 shares retained, respectively 78,310 (78,310 ) 145,757 (145,757 ) Settlement of performance share units, net of 6,765 and 9,971 shares retained, respectively 11,806 (11,806 ) 15,956 (15,956 ) Purchase of treasury shares (3,629,681 ) 3,629,681 (6,145,993 ) 6,145,993 Balance at end of period 58,804,314 50,854,905 62,028,708 47,630,511

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE)	12 Months Ended
	Dec. 31, 2016
ACCUMULATED OTHER COMPREHENSIVE EARNINGS [Abstract]
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE)	ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) The components of AOCE consisted of the following (in thousands of dollars): Foreign Currency Translation Defined Postretirement Benefit Plan Other Employment-related Benefit Plans Other Total Foreign Currency Translation Attributable to Noncontrolling Interests AOCE Attributable to W.W. Grainger, Inc. Balance at January 1, 2014, net of tax $ (7,297 ) $ 34,887 $ (8,811 ) $ (2,971 ) $ 15,808 $ (13,106 ) $ 28,914 Other comprehensive earnings (loss) before reclassifications, net of tax (124,065 ) (22,667 ) (1,462 ) 786 (147,408 ) (9,880 ) (137,528 ) Amounts reclassified to Warehousing, marketing and administrative expenses 9,042 (6,617 ) 9,295 — 11,720 — 11,720 Amounts reclassified to Income Taxes — 2,545 (2,324 ) — 221 — 221 Net current period activity $ (115,023 ) $ (26,739 ) $ 5,509 $ 786 $ (135,467 ) $ (9,880 ) $ (125,587 ) Balance at December 31, 2014, net of tax $ (122,320 ) $ 8,148 $ (3,302 ) $ (2,185 ) $ (119,659 ) $ (22,986 ) $ (96,673 ) Other comprehensive earnings (loss) before reclassifications, net of tax (154,096 ) 30,451 641 1,300 (121,704 ) (532 ) (121,172 ) Amounts reclassified to Warehousing, marketing and administrative expenses — (5,289 ) — — (5,289 ) — (5,289 ) Amounts reclassified to Income Taxes — 2,043 — — 2,043 — 2,043 Net current period activity $ (154,096 ) $ 27,205 $ 641 $ 1,300 $ (124,950 ) $ (532 ) $ (124,418 ) Balance at December 31, 2015, net of tax $ (276,416 ) $ 35,353 $ (2,661 ) $ (885 ) $ (244,609 ) $ (23,518 ) $ (221,091 ) Other comprehensive earnings (loss) before reclassifications, net of tax (38,729 ) (6,022 ) (2,397 ) 885 (46,263 ) 906 (47,169 ) Amounts reclassified to Warehousing, marketing and administrative expenses — (6,559 ) — — (6,559 ) — (6,559 ) Amounts reclassified to Income Taxes — 2,525 — 2,525 — 2,525 Net current period activity (38,729 ) (10,056 ) (2,397 ) 885 (50,297 ) 906 (51,203 ) Balance at December 31, 2016, net of tax $ (315,145 ) $ 25,297 $ (5,058 ) $ — $ (294,906 ) $ (22,612 ) $ (272,294 )

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense (benefit) consisted of the following (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Current provision: Federal $ 310,582 $ 412,545 $ 437,648 State 38,249 49,894 47,199 Foreign 25,076 24,087 43,088 Total current 373,907 486,526 527,935 Deferred tax (benefit) provision 12,313 (20,995 ) (5,845 ) Total provision $ 386,220 $ 465,531 $ 522,090 Earnings (losses) before income taxes by geographical area consisted of the following (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 United States $ 1,073,879 $ 1,203,880 $ 1,299,523 Foreign (54,821 ) 46,825 34,863 $ 1,019,058 $ 1,250,705 $ 1,334,386 The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) were (in thousands of dollars): As of December 31, 2016 2015 Deferred tax assets: Inventory $ 30,030 $ 32,390 Accrued expenses 70,021 56,127 Accrued employment-related benefits 124,556 116,423 Foreign operating loss carryforwards 67,350 70,881 Other 22,256 12,962 Deferred tax assets 314,213 288,783 Less valuation allowance (72,705 ) (62,333 ) Deferred tax assets, net of valuation allowance $ 241,508 $ 226,450 Deferred tax liabilities: Property, buildings and equipment (75,690 ) (42,249 ) Intangibles (127,292 ) (134,784 ) Software (25,431 ) (20,744 ) Prepaids (11,959 ) (17,901 ) Other (1,067 ) (17,277 ) Deferred tax liabilities (241,439 ) (232,955 ) Net deferred tax asset (liability) $ 69 $ (6,505 ) The net deferred tax asset (liability) is classified as follows: Noncurrent assets $ 64,775 $ 83,996 Noncurrent liabilities (foreign) (64,706 ) (90,501 ) Net deferred tax asset (liability) $ 69 $ (6,505 ) At December 31, 2016, the Company had $ 256 million of net operating loss (NOLs) carryforwards related primarily to foreign operations. Some of the operating loss carryforwards may expire at various dates through 2036. The Company has recorded a valuation allowance, which represents a provision for uncertainty as to the realization of the tax benefits of these carryforwards and deferred tax assets that may not be realized. The Company's valuation allowance changed as follows (in thousands of dollars): For the Years Ended December 31, 2016 2015 Balance at beginning of period $ 62,333 $ 56,876 Valuation allowance increases primarily related to foreign NOLs 12,174 7,045 Valuation allowance releases related to foreign NOLs (3,870 ) (437 ) Other valuation allowance changes, net 2,068 (1,151 ) Balance at end of period $ 72,705 $ 62,333 A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Federal income tax at the 35% statutory rate $ 356,670 $ 437,746 $ 467,035 State income taxes, net of federal income tax benefit 25,993 29,507 31,263 Clean energy credit (28,670 ) (13,358 ) — Foreign rate difference 21,077 12,041 20,318 Other - net 11,150 (405 ) 3,474 Income tax expense $ 386,220 $ 465,531 $ 522,090 Effective tax rate 37.9 % 37.2 % 39.1 % In the second quarter of 2015, the Company acquired a non-controlling interest in a limited liability company established to produce refined coal. Additionally, in the first quarter of 2016 the Company acquired a non-controlling interest in a second limited liabilty company established to produce refined coal. The production and sale of refined coal that results in required emission reductions is eligible for renewable energy tax credits under Section 45 of the Internal Revenue Code. The Company receives tax credits in proportion to its equity interest. The income tax credits from the investment resulted in a 2.8 and a 1.0 percentage point reduction to the overall effective tax rate for 2016 and 2015, respectively. Undistributed earnings of foreign subsidiaries at December 31, 2016 , amounted to $ 629 million . No provision for deferred U.S. income taxes has been made for these subsidiaries because the Company intends to permanently reinvest such earnings in its foreign operations. If at some future date these earnings cease to be permanently invested, the Company may be subject to U.S. income taxes, foreign withholding and other taxes on such amounts, which cannot be reasonably estimated at this time. The balance and changes in the liability for tax uncertainties, excluding interest, are as follows (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Balance at beginning of year $ 60,576 $ 45,126 $ 40,317 Additions for tax positions related to the current year 14,119 14,916 11,545 Additions for tax positions of prior years 13,215 2,653 5,318 Reductions for tax positions of prior years (14,774 ) (1,616 ) (4,109 ) Reductions due to statute lapse (1,527 ) (402 ) (1,271 ) Settlements, audit payments, refunds - net (12,928 ) (101 ) (6,674 ) Balance at end of year $ 58,681 $ 60,576 $ 45,126 The Company classifies the liability for tax uncertainties in deferred income taxes and tax uncertainties. Included in this amount are $ 22 million and $ 17 million at December 31, 2016 and 2015, respectively, of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Any changes in the timing of deductibility of these items would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authorities to an earlier period. The changes to tax positions of prior years in 2016 related generally to the impact of conclusion of audits and audit settlements. The Company regularly undergoes examination of its federal income tax returns by the Internal Revenue Service (IRS). In 2016, the Company settled the 2009 and 2010 federal audits with the IRS Appeals Office. The Company's federal tax returns for 2011 and 2012 are currently under audit by the IRS, and the tax years 2013 through 2016 are open. The Company is also subject to audit by state, local and foreign taxing authorities. Tax years 2002 - 2016 remain subject to state and local audits and 2006 - 2016 remain subject to foreign audits. The amount of liability associated with the Company's uncertain tax positions may change within the next 12 months due to the pending audit activity, expiring statutes or tax payments. A reasonable estimate of such change cannot be made. The Company recognizes interest expense related to tax uncertainties in the provision for income taxes. During 2016, 2015 and 2014, the Company recognized tax uncertainties' interest expense of $1 million , $1 million and $2 million , respectively. As of December 31, 2016, 2015 and 2014, the Company accrued approximately $4 million , $5 million and $4 million for tax uncertainties' interest, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Certain of the Company’s stock incentive plans grant stock awards that contain nonforfeitable rights to dividends meet the criteria of a participating security. Under the two-class method, earnings are allocated between common stock and participating securities. 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 presents 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 Company’s reported net earnings are 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 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): For the Years Ended December 31, 2016 2015 2014 Net earnings attributable to W.W. Grainger, Inc. as reported $ 605,928 $ 768,996 $ 801,729 Distributed earnings available to participating securities (2,383 ) (2,823 ) (3,154 ) Undistributed earnings available to participating securities (3,044 ) (4,735 ) (6,370 ) Numerator for basic earnings per share - Undistributed and distributed earnings available to common shareholders 600,501 761,438 792,205 Undistributed earnings allocated to participating securities 3,044 4,735 6,370 Undistributed earnings reallocated to participating securities (3,023 ) (4,692 ) (6,290 ) Numerator for diluted earnings per share - Undistributed and distributed earnings available to common shareholders $ 600,522 $ 761,481 $ 792,285 Denominator for basic earnings per share – weighted average shares 60,430,892 65,156,864 68,334,322 Effect of dilutive securities 409,038 608,257 871,422 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 60,839,930 65,765,121 69,205,744 Earnings per share two-class method Basic $ 9.94 $ 11.69 $ 11.59 Diluted $ 9.87 $ 11.58 $ 11.45

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2016
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, the Company’s Canadian business. Other businesses include MonotaRO in Japan, Zoro in the United States and operations in Europe, Asia and Latin America. These businesses individually do not meet the criteria of a reportable segment. Operating segments generate revenue almost exclusively through the distribution of MRO supplies, as service revenues account for approximately 1% of total revenues for each operating segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment transfer prices are established at external selling prices, less costs not incurred due to a related party sale. The segment results include certain centrally incurred costs for shared services that are charged to the segments based upon the relative level of service used by each operating segment. Following is a summary of segment results (in thousands of dollars): 2016 United States Canada Other Businesses Total Total net sales $ 7,870,105 $ 733,829 $ 1,884,963 $ 10,488,897 Intersegment net sales (347,468 ) (110 ) (4,115 ) (351,693 ) Net sales to external customers 7,522,637 733,719 1,880,848 10,137,204 Segment operating earnings 1,274,851 (65,362 ) 40,684 1,250,173 Segment assets 2,275,009 286,035 494,067 3,055,111 Depreciation and amortization 159,334 18,050 23,792 201,176 Additions to long-lived assets $ 153,556 $ 12,275 $ 95,288 $ 261,119 2015 United States Canada Other Businesses Total Total net sales $ 7,963,416 $ 890,530 $ 1,405,750 $ 10,259,696 Intersegment net sales (282,305 ) (105 ) (3,902 ) (286,312 ) Net sales to external customers 7,681,111 890,425 1,401,848 9,973,384 Segment operating earnings 1,371,626 27,368 48,051 1,447,045 Segment assets 2,191,045 317,504 507,116 3,015,665 Depreciation and amortization 150,654 17,334 19,999 187,987 Additions to long-lived assets $ 302,316 $ 20,464 $ 21,135 $ 343,915 2014 United States Canada Other Businesses Total Total net sales $ 7,926,075 $ 1,075,754 $ 1,182,186 $ 10,184,015 Intersegment net sales (211,399 ) (304 ) (7,359 ) (219,062 ) Net sales to external customers 7,714,676 1,075,450 1,174,827 9,964,953 Segment operating earnings 1,444,288 87,583 (37,806 ) 1,494,065 Segment assets 2,181,521 394,342 345,987 2,921,850 Depreciation and amortization 136,081 15,305 20,444 171,830 Additions to long-lived assets $ 243,251 $ 106,918 $ 31,137 $ 381,306 Following are reconciliations of the segment information with the consolidated totals per the financial statements (in thousands of dollars): 2016 2015 2014 Operating earnings: Total operating earnings for reportable segments $ 1,250,173 $ 1,447,045 $ 1,494,065 Unallocated expenses (130,676 ) (146,725 ) (146,948 ) Total consolidated operating earnings $ 1,119,497 $ 1,300,320 $ 1,347,117 Assets: Assets for reportable segments $ 3,055,111 $ 3,015,665 $ 2,921,850 Other current and noncurrent assets 2,464,656 2,624,966 2,113,900 Unallocated assets 174,540 217,124 247,299 Total consolidated assets $ 5,694,307 $ 5,857,755 $ 5,283,049 2016 Segment Totals Unallocated Consolidated Total Other significant items: Depreciation and amortization $ 201,176 $ 21,469 $ 222,645 Additions to long-lived assets $ 261,119 $ 10,542 $ 271,661 Revenues Long-Lived Assets Geographic information: United States $ 7,834,361 $ 1,134,817 Canada 739,687 210,931 Other foreign countries 1,563,156 210,605 $ 10,137,204 $ 1,556,353 2015 Segment Totals Unallocated Consolidated Total Other significant items: Depreciation and amortization $ 187,987 $ 18,854 $ 206,841 Additions to long-lived assets $ 343,915 $ 16,912 $ 360,827 Revenues Long-Lived Assets Geographic information: United States $ 7,866,300 $ 1,231,083 Canada 897,431 215,202 Other foreign countries 1,209,653 153,508 $ 9,973,384 $ 1,599,793 2014 Segment Totals Unallocated Consolidated Total Other significant items: Depreciation and amortization $ 171,830 $ 18,341 $ 190,171 Additions to long-lived assets $ 381,306 $ 22,498 $ 403,804 Revenues Long-Lived Assets Geographic information: United States $ 7,780,382 $ 1,109,175 Canada 1,074,660 253,466 Other foreign countries 1,109,911 110,083 $ 9,964,953 $ 1,472,724 Revenues are attributed to countries based on the ship-to location of the customer. Unallocated expenses and unallocated assets primarily relate to the Company headquarters' 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. Assets for reportable segments include net accounts receivable and first-in, first-out inventory, which are reported to the Company's Chief Operating Decision Maker. Long-lived assets consist of property, buildings, equipment and capitalized software. Depreciation and amortization presented above includes depreciation of long-lived assets and amortization of capitalized software.

CONTINGENCIES AND LEGAL MATTERS

CONTINGENCIES AND LEGAL MATTERS	12 Months Ended
	Dec. 31, 2016
CONTINGENCIES AND LEGAL MATTERS [Abstract]
CONTINGENCIES AND LEGAL MATTERS	CONTINGENCIES AND LEGAL MATTERS The Company has been named, along with numerous other nonaffiliated companies, as a defendant in litigation in various states involving asbestos and/or silica. These lawsuits typically assert claims of personal injury arising from alleged exposure to asbestos and/or silica as a consequence of products purportedly distributed by the Company. In 2016, the Company was named in new lawsuits relating to asbestos involving approximately 70 new plaintiffs, while lawsuits relating to asbestos and/or silica involving approximately 80 plaintiffs were dismissed with respect to the Company, typically based on the lack of product identification. At December 31, 2016, the Company is named in cases filed on behalf of approximately 480 plaintiffs in which there is an allegation of exposure to asbestos and/or silica. The Company has denied, or intends to deny, the allegations in all of the above-described lawsuits. If a specific product distributed by the Company is identified in any of these lawsuits, the Company would attempt to exercise indemnification remedies against the product manufacturer. In addition, the Company believes that a substantial number of these claims are covered by insurance. The Company has entered into agreements with its major insurance carriers relating to the scope, coverage and costs of defense of lawsuits involving claims of exposure to asbestos. While the Company is unable to predict the outcome of these lawsuits, it believes that the ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on the Company’s consolidated financial position or results of operations. From time to time the Company is involved in various other 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 contract administration or 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. TCPA Matter As previously disclosed, on April 5, 2013, David Davies filed a putative class action lawsuit in the Circuit Court of Cook County, Illinois and sought certification of a class of persons who may have received one or more of approximately 400,000 faxes Grainger sent in connection with a 2009 marketing campaign. The complaint alleges, among other things, that the Company violated the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005 (the “TCPA”), by sending fax advertisements that either were unsolicited and/or did not contain a valid opt-out notice. The TCPA provides for penalties of $500 to $1,500 for each noncompliant individual fax. On May 13, 2013, the Company removed the case to the Federal District Court for the Northern District of Illinois (the “District Court”). On June 27, 2014, the District Court found that Davies was not an adequate class representative. The United States Court of Appeals for the Seventh Circuit denied Davies’ petition for immediate review of the ruling. Davies subsequently moved the District Court for reconsideration of its ruling and his motion was denied on September 28, 2016. Davies may seek to pursue an appeal of the June 27, 2014, ruling at the conclusion of the District Court proceeding. On April 4, 2016, the District Court denied the Company’s motion to dismiss Davies’ individual claims and subsequently the parties filed cross-motions for summary judgment. On November 21, 2016, the District Court denied Plaintiff’s motion and granted, in part, Grainger’s motion for summary judgment. The District Court entered judgment for Grainger on Davies’ common law claim for conversion while granting partial summary judgment for Grainger on Davies’ TCPA claim, finding that Grainger had an established business relationship with Davies and that Grainger properly obtained Davies’ fax number from public directories. The District Court denied Grainger’s motion for summary judgment on the ground that Davies lacks standing to bring his TCPA claim. The District Court further held that the issue of whether the opt-out notice Grainger used on the faxes is clear and conspicuous, as required by the TCPA, is a contested issue of fact to be resolved by a jury at trial. Trial is currently set for February 5, 2018. The Company believes it has strong legal and factual defenses and intends to continue defending itself vigorously in the pending lawsuit. While the Company is unable to predict the outcome of this proceeding, the Company believes that the ultimate outcome of this matter will not have a material adverse effect on the Company’s consolidated financial position or results of operations. Unclaimed Property Grainger regularly performs unclaimed property assessments pursuant to U.S. multi-state escheat laws, which generally require entities to report and remit abandoned and unclaimed property. Failure to timely report and remit the property can result in assessments that include substantial interest and penalties, in addition to the payment of the escheat liability itself. During the fourth quarter of 2016, Grainger identified an obligation associated with unclaimed property for escheatable items for years 2008 through 2012 and estimated statutory interest costs. The aggregate balance of these unrecorded liabilities amounted to approximately $36 million ( $23 million , net of tax). Operating expenses for the twelve months ended December 31, 2016, included a pre-tax charge of approximately $36 million related to this event. The Company evaluated the materiality of these unrecorded obligations quantitatively and qualitatively and concluded they were not material to any of the prior periods impacted and that correction of operating expenses as an out-of-period adjustment in the quarter ended December 31, 2016, would not be material to the Consolidated Financial Statements for the year ending December 31, 2016. Accordingly, Grainger determined not to revise previously issued financial statements.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2016
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) A summary of selected quarterly information for 2016 and 2015 is as follows (in thousands of dollars, except for per share amounts): 2016 Quarter Ended March 31 June 30 September 30 December 31 Total Net sales $ 2,506,538 $ 2,563,668 $ 2,596,288 $ 2,470,710 $ 10,137,204 Cost of merchandise sold 1,461,485 1,523,609 1,556,536 1,481,017 6,022,647 Gross profit 1,045,053 1,040,059 1,039,752 989,693 4,114,557 Warehousing, marketing and administrative expenses 727,961 734,470 717,165 815,464 2,995,060 Operating earnings 317,092 305,589 322,587 174,229 1,119,497 Net earnings attributable to W.W. Grainger, Inc. 186,713 172,676 185,873 60,666 605,928 Earnings per share - basic 3.00 2.81 3.07 1.02 9.94 Earnings per share - diluted $ 2.98 $ 2.79 $ 3.05 $ 1.01 $ 9.87 2015 Quarter Ended March 31 June 30 September 30 December 31 Total Net sales $ 2,439,661 $ 2,522,565 $ 2,532,900 $ 2,478,258 $ 9,973,384 Cost of merchandise sold 1,345,918 1,449,133 1,471,021 1,475,884 5,741,956 Gross profit 1,093,743 1,073,432 1,061,879 1,002,374 4,231,428 Warehousing, marketing and administrative expenses 742,496 716,715 721,150 750,747 2,931,108 Operating earnings 351,247 356,717 340,729 251,627 1,300,320 Net earnings attributable to W.W. Grainger, Inc. 211,015 220,548 192,201 145,232 768,996 Earnings per share - basic 3.11 3.28 2.94 2.32 11.69 Earnings per share - diluted $ 3.07 $ 3.25 $ 2.92 $ 2.30 $ 11.58

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of the Company and its subsidiaries over which the Company exercises control. All significant intercompany transactions are eliminated from the consolidated financial statements.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates.
FOREIGN CURRENCY TRANSLATION	FOREIGN CURRENCY TRANSLATION The U.S. dollar is the reporting currency for all periods presented. The financial statements of the Company’s foreign operating subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of the Company’s foreign operating subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at average rates in effect during the period. Net exchange gains or losses resulting from the translation of financial statements of foreign operations and related long-term debt are recorded as a separate component of other comprehensive earnings. See Note 13 to the Consolidated Financial Statements. Foreign currency transaction gains and losses are included in the Consolidated Statement of Earnings.
RECLASSIFICATIONS	RECLASSIFICATIONS Certain amounts in the 2015 and 2014 financial statements, as previously reported, have been reclassified to conform to the 2016 presentation. See Note 3 to the Consolidated Financial Statements. These changes did not have a material impact on the Consolidated Financial Statements.
REVENUE RECOGNITION	REVENUE RECOGNITION Revenues recognized include product sales, billings for freight and handling charges and fees earned for services provided. The Company recognizes product sales and billings for freight and handling charges primarily on the date products are shipped to, or picked up by, the customer. In cases where the product is shipped directly to the customer, the Company recognizes revenue at the time of shipment primarily on a gross basis. The Company's standard shipping terms are FOB shipping point. On occasion, the Company will negotiate FOB destination terms. These sales are recognized upon delivery to the customer. eCommerce revenues, which accounted for 47% of total 2016 revenues, are recognized on the same terms as revenues through other channels. Fee revenues, which accounted for less than 1% of total 2016 revenues, are recognized after services are completed including related service costs. Taxes collected from customers and remitted to governmental authorities are presented on a net basis and are not included in revenue.
COST OF MERCHANDISE SOLD	COST OF MERCHANDISE SOLD Cost of merchandise sold includes product and product-related costs, vendor consideration, freight-out and handling costs. The Company defines handling costs as those costs incurred to fulfill a shipped sales order.
VENDOR CONSIDERATION	VENDOR CONSIDERATION The Company receives rebates and allowances from its vendors to promote their products. The Company utilizes numerous advertising programs to promote its vendors' products, including catalogs and other printed media, Internet, radio and other marketing programs. Most of these programs relate to multiple vendors, which makes supporting the specific, identifiable and incremental criteria difficult, and would require numerous assumptions and judgments. Based on the inexact nature of trying to track reimbursements to the advertising expenditure for each vendor, the Company treats most vendor advertising allowances as a reduction to product purchase price and is reflected in Cost of merchandise sold rather than a reduction of operating (advertising) expenses. Vendor funds that are determined to be reimbursement of specific, incremental and identifiable costs incurred to promote vendors' products are recorded as an offset to the related expenses in Warehouse, marketing and administrative expenses. Rebates earned from vendors that are based on product purchases are capitalized into inventory as part of product purchase price. These rebates are credited to Cost of merchandise sold based on sales. Vendor rebates that are earned based on products sold are credited directly to Cost of merchandise sold.
ADVERTISING	ADVERTISING Advertising costs are expensed in the year the related advertisement is first presented. Advertising expense was $ 180 million , $ 180 million and $ 169 million for 2016, 2015 and 2014 , respectively. Most vendor-provided allowances are classified as a reduction to product purchase price and is reflected in Cost of merchandise sold. For additional information see VENDOR CONSIDERATION above. Catalog expense is amortized equally over the life of the catalog, beginning in the month of its distribution. Advertising costs for catalogs that have not been distributed by year-end are capitalized as Prepaid expenses. Amounts included in Prepaid expenses at December 31, 2016 and 2015 , were $ 12 million and $ 19 million , respectively.
WAREHOUSING, MARKETING AND ADMINISTRATIVE EXPENSES	WAREHOUSING, MARKETING AND ADMINISTRATIVE EXPENSES Included in this category are purchasing, branch operations, information services and marketing and selling expenses, as well as other types of general and administrative costs.
STOCK INCENTIVE PLANS	STOCK INCENTIVE PLANS The Company measures all share-based payments using fair-value-based methods and records compensation expense related to these payments over the vesting period. See Note 11 to the Consolidated Financial Statements.
INCOME TAXES	INCOME TAXES Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between financial and tax reporting. The Company recognizes in the financial statements a provision for tax uncertainties, resulting from application of complex tax regulations in multiple tax jurisdictions. The Company evaluates our deferred income taxes to determine if valuation allowances are required using a “more likely than not” standard. This assessment considers the nature, frequency and amount of book and taxable income and losses, the duration of statutory carryback and forward periods, future reversals of existing taxable temporary differences and tax planning strategies, among other matters. See Note 14 to the Consolidated Financial Statements.
OTHER COMPREHENSIVE EARNINGS (LOSSES)	OTHER COMPREHENSIVE EARNINGS (LOSSES) The Company's Other comprehensive earnings (losses) include foreign currency translation adjustments, changes in fair value of derivatives designated as hedges and unrecognized gains (losses) on postretirement and other employment-related benefit plans. Accumulated other comprehensive earnings (losses) (AOCE) are presented separately as part of shareholders' equity. See Note 13 to the Consolidated Financial Statements.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS The Company considers investments in highly liquid debt instruments, purchased with an original maturity of 90 days or less, to be cash equivalents.
CONCENTRATION OF CREDIT RISK	CONCENTRATION OF CREDIT RISK The Company places temporary cash investments with institutions of high credit quality and, by policy, limits the amount of credit exposure to any one institution. The Company has a broad customer base representing many diverse industries doing business in all regions of the United States, Canada, Europe, Asia and Latin America. Consequently, no significant concentration of credit risk is considered to exist.
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS	ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are stated at their estimated net realizable value. The Company establishes reserves for customer accounts that are potentially uncollectible. The method used to estimate the allowances is based on several factors, including the age of the receivables and the historical ratio of actual write-offs to the age of the receivables. These analyses also take into consideration economic conditions that may have an impact on a specific industry, group of customers or a specific customer.
INVENTORIES	INVENTORIES Inventories are valued at the lower of cost or market. Cost is determined primarily by the last-in, first-out (LIFO) method, which accounts for approximately 64% of total inventory. For the remaining inventory, cost is determined by the first-in, first-out (FIFO) method. Grainger establishes inventory reserves for obsolete inventory. Grainger regularly reviews inventory to evaluate continued demand and identify any obsolete or excess quantities. Grainger records provisions for the difference between excess and obsolete inventory cost and its estimated realizable value.
PROPERTY, BUILDINGS AND EQUIPMENT	PROPERTY, BUILDINGS AND EQUIPMENT Property, buildings and equipment are valued at cost. For financial statement purposes, depreciation and amortization are recorded in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on the declining-balance and sum-of-the-years-digits depreciation methods. The Company's international businesses record depreciation expense primarily on a straight-line basis. The principal estimated useful lives for determining depreciation are as follows: Buildings, structures and improvements 10 to 30 years Furniture, fixtures, machinery and equipment 3 to 10 years Depreciation expense was $166 million , $162 million and $154 million for the years ended December 31, 2016, 2015 and 2014, respectively. Improvements to leased property are amortized over the initial terms of the respective leases or the estimated service lives of the improvements, whichever is shorter. The Company capitalized interest costs of $ 2 million , $ 4 million and $ 2 million for the years ended December 31, 2016, 2015 and 2014, respectively.
LONG-LIVED ASSETS	LONG-LIVED ASSETS The carrying value of long-lived assets, primarily property, buildings and equipment and amortizable intangibles, is evaluated whenever events or changes in circumstances indicate that the carrying value of the asset may be impaired. An impairment loss is recognized when estimated undiscounted future cash flows resulting from use of the asset, including disposition, are less than the carrying value of the asset. Impairment is measured as the amount by which the asset's carrying amount exceeds the fair value.
GOODWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for impairment on an annual basis and more often if circumstances require. Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value. The Company recognizes an acquired intangible apart from goodwill whenever the intangible arises from contractual or other legal rights, or whenever it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Such intangibles are amortized over their estimated useful lives unless the estimated useful life is determined to be indefinite. The straight-line method of amortization is used as it has been determined to approximate the use pattern of the asset. The Company also maintains intangible assets with indefinite lives, which are not amortized. These intangibles are tested for impairment on an annual basis and more often if circumstances require. Impairment losses are recognized whenever the estimated fair value of these assets is less than their carrying value. See Note 3 to the Consolidated Financial Statements.
CAPITALIZED SOFTWARE	The Company capitalizes certain costs related to the purchase and development of internal-use software. Amortization of capitalized software is on a straight-line basis over three or five years.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these financial instruments. See Note 8 to the Consolidated Financial Statements for fair value of long-term debt.
WARRANTY RESERVES	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 expenses. For warranty expenses not covered by the manufacturer, the Company provides a reserve for future costs based primarily on historical experience. Warranty reserves were $3 million at December 31, 2016 and 2015
CONTINGENCIES	CONTINGENCIES The Company accrues for costs relating to litigation claims and other contingent matters, when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
NEW ACCOUNTING STANDARDS	NEW ACCOUNTING STANDARDS In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Board (ASU) 2015-11, Simplifying the Measurement of Inventory, which simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value (NRV) test. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years and for interim periods within those fiscal years beginning after December 15, 2016, and prospective adoption is required. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities . This change to the financial instrument model primarily affects the accounting for equity investments, financial liabilities under fair value options and the presentation and disclosure requirements for financial instruments. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2017. Certain provisions of the new guidance can be adopted early. The Company is evaluating the impact of this ASU. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU improves transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of this ASU. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting .This ASU eliminates the requirement to retroactively adjust the investment, results of operations and retained earnings when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. The amendment requires that the investor add the cost of acquiring the additional interest to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2016. The amendment should be applied prospectively and early application is permitted. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Stock Based Compensation: Improvements to Employee Share-Based Payment Accounting . This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures and statutory tax withholdings requirements, as well as classification in the statement of cash flows. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2016. Early adoption is permitted. If early adoption is elected, all amendments in the ASU that apply must be adopted in the same period. The Company has elected not to early adopt this ASU. The Company expects the new guidance to impact its tax expense and dilutive shares outstanding calculation, with a potentially dilutive impact on future earnings per share and increased period-to-period variability of net earnings. The impact cannot be quantified due to the timing and exercise activity that will occur in future periods. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU affects an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration and how the entity applies current GAAP. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact of this ASU. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory. This ASU eliminates the existing exception in U.S. GAAP that prohibits the recognition of income tax consequences for most intra-entity asset transfers. The effective date of this ASU is fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-17, Consolidation - Interests Held Through Related Parties That Are Under Common Control. This ASU amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements. This ASU represents changes to clarify, correct errors or make minor improvements to the Accounting Standards Codification. The amendments make the Accounting Standards Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Most of the amendments in this Update do not require transition guidance and are effective upon issuance of this Update. Six amendments in this Update clarify guidance or correct references in the Accounting Standards Codification that could potentially result in changes in current practice because of either misapplication or misunderstanding of current guidance. Early adoption is permitted for the amendments that require transition guidance. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The effective date of this ASU is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of this ASU. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU is to simplify how an entity is required to test goodwill for impairment. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company's goodwill impairment testing for the fiscal period beginning January 1, 2018, will follow the provisions of this ASU. REVENUE RECOGNITION STANDARDS In July 2015, FASB announced a one-year delay in the effective date of ASU 2014-09, Revenue from Contracts with Customers. This ASU will now be effective for interim and annual periods beginning after December 15, 2017. The standard 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 contracts with customers. The standard permits adoption as early as the original effective date, which was for interim and annual periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, Revenue from Contract with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This ASU is meant to reduce the potential for diversity in practice arising from inconsistent application of the principal versus agent guidance as well as reduce the cost and complexity during the transition and on an ongoing basis. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing . This ASU is meant to clarify the identification of performance obligations and the licensing implementation guidelines, while retaining the related principles of those areas. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. This ASU includes technical corrections and improvements to Topic 606 and other Topics amended by Update 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. The effective dates of ASU 2016-08, ASU 2016-10 and ASU 2016-20 are consistent with ASU 2014-09. The Company has elected not to early adopt these ASUs. The standard permits the use of either the full retrospective or the modified retrospective adoption method. The Company is planning to elect the modified retrospective method and recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity as of January 1, 2018. These ASUs require expanded qualitative and quantitative disclosures of revenue and cash flows emerging from Contracts with Customers. The Company has evaluated the provisions of the new standard and is in the process of assessing its impact on financial statements, information systems, business processes and financial statement disclosures. Based on initial reviews, the standard is not expected to have a material impact on the Company's Consolidated Financial Statements.

GOODWILL AND OTHER INTANGIBLE29

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
GOODWILL AND OTHER INTANGIBLES [Abstract]
Schedule of Goodwill	The balances and changes in the carrying amount of Goodwill by segment are as follows (in thousands of dollars): United States Canada Other Businesses Total Balance at January 1, 2015 $ 202,020 $ 141,189 $ 163,696 $ 506,905 Acquisitions — — 114,903 114,903 Translation — (22,660 ) (16,812 ) (39,472 ) Balance at December 31, 2015 202,020 118,529 261,787 582,336 Acquisitions and Purchase Price Adjustments — — 8,362 8,362 Impairment — — (47,244 ) (47,244 ) Translation — 3,611 (19,915 ) (16,304 ) Balance at December 31, 2016 $ 202,020 $ 122,140 $ 202,990 $ 527,150 Cumulative goodwill impairment charges, January 1, 2016 $ 17,038 $ 32,265 $ 23,055 $ 72,358 Goodwill impairment charges — — 47,244 47,244 Cumulative goodwill impairment charges, December 31, 2016 $ 17,038 $ 32,265 $ 70,299 $ 119,602
Schedule of Finite-Lived Intangible Assets by Major Class	e balances and changes in Intangible assets - net are as follows (in thousands of dollars): As of December 31, 2016 2015 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer lists and relationships 14.2 years $ 424,405 $ 175,112 $ 249,293 $ 452,429 $ 148,424 $ 304,005 Trademarks, trade names and other 13.8 years 25,353 14,262 11,091 25,764 13,051 12,713 Non-amortized trade names and other 128,282 — 128,282 146,576 — 146,576 Capitalized software 4.2 years 571,978 374,518 197,460 504,283 319,567 184,716 Total intangible assets 8.5 years $ 1,150,018 $ 563,892 $ 586,126 $ 1,129,052 $ 481,042 $ 648,010
Schedule of Estimated Amortization Expense	Estimated amortization expense for future periods is as follows (in thousands of dollars): Year Expense 2017 $ 85,791 2018 75,502 2019 58,309 2020 43,488 2021 31,716 Thereafter 163,038

ALLOWANCE FOR DOUBTFUL ACCOUN30

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	12 Months Ended
	Dec. 31, 2016
ALLOWANCE FOR DOUBTFUL ACCOUNTS [Abstract]
Schedule of Allowance for Doubtful Accounts	The following table shows the activity in the allowance for doubtful accounts (in thousands of dollars): For the Years Ended December 31, 2016 2015 Balance at beginning of period $ 22,288 $ 22,121 Provision for uncollectible accounts 16,216 10,181 Write-off of uncollectible accounts, net of recoveries (11,248 ) (10,495 ) Business acquisitions, foreign currency and other (566 ) 481 Balance at end of period $ 26,690 $ 22,288

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of activity in reserves for excess and obsolete inventory	The following table shows the activity in the reserves for excess and obsolete inventory (in thousands of dollars): For the Years Ended December 31, 2016 2015 Balance at beginning of period $ (168,105 ) $ (136,748 ) Provision for excess and obsolete inventory (58,485 ) (35,165 ) Disposal of unsaleable inventory 30,161 24,046 Business acquisitions, foreign currency and other 4,915 (20,238 ) Balance at end of period $ (191,514 ) $ (168,105 )

SHORT-TERM DEBT (Tables)

SHORT-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2016
Short-term Debt [Abstract]
Schedule of Short-term Debt	Short-term debt consisted of the following (in thousands of dollars): As of December 31, 2016 2015 Lines of Credit Outstanding at December 31 $ 16,392 $ 23,072 Maximum month-end balance during the year $ 24,722 $ 47,802 Weighted average interest rate during the year 4.04 % 4.37 % Weighted average interest rate at December 31 5.13 % 3.16 % Commercial Paper Outstanding at December 31 $ 369,748 $ 330,000 Maximum month-end balance during the year $ 629,712 $ 330,000 Weighted average interest rate during the year 0.50 % 0.23 % Weighted average interest rate at December 31 0.69 % 0.47 %

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2016
Long-term Debt, Unclassified [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt consisted of the following (in thousands of dollars): As of December 31, 2016 2015 4.60% senior notes due 2045 $ 1,000,000 $ 1,000,000 3.75% senior notes due 2046 400,000 — U.S. dollar term loan — 114,614 British pound term loan and revolving credit facility 187,506 235,808 Euro term loan and revolving credit facility 120,900 114,030 Canadian dollar revolving credit facility 100,521 108,389 Other 71,109 75,866 1,880,036 1,648,707 Less current maturities (19,966 ) (247,346 ) Debt issuance costs and discounts (19,124 ) (12,947 ) $ 1,840,946 $ 1,388,414
Schedule of Maturities of Long-term Debt	The scheduled aggregate principal payments related to long-term debt, excluding debt issuance costs, are due as follows (in thousands of dollars): Year Payment Amount 2017 $ 19,966 2018 29,339 2019 128,670 2020 179,322 2021 115,743 Thereafter 1,406,996 Total $ 1,880,036

EMPLOYEE BENEFITS (Tables)

EMPLOYEE BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFITS [Abstract]
Schedule of Net Benefit Costs	The net periodic benefits costs charged to operating expenses, which were valued with a measurement date of January 1 for each year, consisted of the following components (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Service cost $ 8,238 $ 10,128 $ 9,005 Interest cost 9,855 9,649 10,549 Expected return on assets (10,113 ) (10,375 ) (8,237 ) Amortization of prior service credit (6,688 ) (6,801 ) (7,254 ) Amortization of transition asset — — (143 ) Amortization of unrecognized losses 129 1,512 779 Net periodic benefits costs $ 1,421 $ 4,113 $ 4,699
Schedule of Accumulated and Projected Benefit Obligations	Reconciliations of the beginning and ending balances of the postretirement benefit obligation, which is calculated as of December 31 measurement date, the fair value of plan assets available for benefits and the funded status of the benefit obligation follow (in thousands of dollars): 2016 2015 Benefit obligation at beginning of year $ 239,348 $ 282,917 Service cost 8,238 10,128 Interest cost 9,855 9,649 Plan participants' contributions 2,943 2,754 Actuarial losses (gains) 13,218 (58,251 ) Benefits paid (9,439 ) (8,739 ) Prescription drug rebates 865 890 Benefit obligation at end of year 265,028 239,348 Plan assets available for benefits at beginning of year 155,611 156,015 Actual returns on plan assets 13,557 1,635 Employer's contributions — 2,747 Plan participants' contributions 2,774 2,754 Benefits paid (9,262 ) (8,430 ) Prescription drug rebates 865 890 Plan assets available for benefits at end of year 163,545 155,611 Noncurrent postretirement benefit obligation $ 101,483 $ 83,737
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	The amounts recognized in AOCE consisted of the following (in thousands of dollars): As of December 31, 2016 2015 Prior service credit $ 53,814 $ 60,502 Unrecognized losses (12,656 ) (3,015 ) Deferred tax (liability) (15,861 ) (22,134 ) Net accumulated gains $ 25,297 $ 35,353
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year	The components of AOCE related to the postretirement benefit costs that will be amortized into net periodic postretirement benefit costs in 2017 are estimated as follows (in thousands of dollars): 2017 Amortization of prior service credit $ (6,492 ) Amortization of unrecognized losses 937 Estimated amount to be amortized from AOCE into net periodic postretirement benefit costs $ (5,555 )
Schedule of Assumptions Used	The following assumptions were used to determine net periodic benefit costs at January 1: For the Years Ended December 31, 2016 2015 2014 Discount rate 4.20 % 3.89 % 4.90 % Long-term rate of return on plan assets, net of tax 6.65 % 6.65 % 5.70 % Initial healthcare cost trend rate 7.00 % 7.25 % 7.50 % Ultimate healthcare cost trend rate 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate reached 2026 2026 2026 The following assumptions were used to determine benefit obligations at December 31: 2016 2015 2014 Discount rate 4.00 % 4.20 % 3.89 % Expected long-term rate of return on plan assets, net of tax 7.13 % 6.65 % 6.65 % Initial healthcare cost trend rate 6.81 % 7.00 % 7.25 % Ultimate healthcare cost trend rate 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate reached 2026 2026 2026
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates	A 1 percentage point change in assumed healthcare cost trend rates would have the following effects on 2016 results (in thousands of dollars): 1 Percentage Point Increase (Decrease) Effect on total service and interest cost $ 1,411 $ (1,162 ) Effect on postretirement benefit obligation 27,542 (22,748 )
Schedule of Allocation of Plan Assets	The plan's assets are stated at fair value, which represents the net asset value of shares held by the plan in the registered investment companies at the quoted market prices (Level 1 input). The plan assets available for benefits are net of Trust liabilities, primarily related to deferred income taxes and taxes payable at December 31 (in thousands of dollars): 2016 2015 Registered investment companies: Fidelity Spartan U.S. Equity Index Fund $ 70,950 $ 70,973 Vanguard 500 Index Fund 87,587 78,254 Vanguard Total International Stock 24,056 22,976 Plan Assets 182,593 172,203 Trust liabilities (19,048 ) (16,592 ) Plan assets available for benefits $ 163,545 $ 155,611
Schedule of Expected Benefit Payments	The Company forecasts the following benefit payments related to postretirement (which include a projection for expected future employee service) for the next ten years (in thousands of dollars): Year Estimated Gross Benefit Payments 2017 $ 8,211 2018 9,236 2019 10,212 2020 11,428 2021 12,692 2022-2026 78,216

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	At December 31, 2016, the approximate future minimum lease payments for all operating leases were as follows (in thousands of dollars): Year Future Minimum Lease Payments 2017 $ 59,045 2018 45,504 2019 32,616 2020 15,358 2021 10,333 Thereafter 15,469 Total minimum payments required 178,325 Less amounts representing sublease income (4,063 ) $ 174,262

STOCK INCENTIVE PLANS (Tables)

STOCK INCENTIVE PLANS (Tables)	12 Months Ended
	Dec. 31, 2016
STOCK INCENTIVE PLANS [Abstract]
Disclosure of Share-based Compensation, Stock Options	Transactions involving stock options are summarized as follows: Shares Subject to Option Weighted Average Price Per Share Options Exercisable Outstanding at January 1, 2014 2,850,455 $ 132.67 1,652,417 Granted 257,693 $ 248.21 Exercised (479,452 ) $ 100.33 Canceled or expired (45,892 ) $ 199.80 Outstanding at December 31, 2014 2,582,804 $ 149.01 1,647,903 Granted 294,522 $ 232.20 Exercised (587,441 ) $ 105.08 Canceled or expired (63,599 ) $ 216.76 Outstanding at December 31, 2015 2,226,286 $ 169.96 1,411,460 Granted 294,874 $ 234.25 Exercised (317,110 ) $ 108.28 Canceled or expired (80,014 ) $ 210.01 Outstanding at December 31, 2016 2,124,036 $ 186.59 1,346,707
Information about stock options excercised	The following table summarizes information about stock options (in thousands of dollars): For the years ended December 31, 2016 2015 2014 Fair value of options exercised $ 8,086 $ 14,423 $ 11,167 Total intrinsic value of options exercised 35,800 73,671 71,924 Fair value of options vested 14,535 16,047 16,115 Settlements of options exercised 34,573 61,863 47,974
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	Information about stock options outstanding and exercisable as of December 31, 2016 , is as follows: Options Outstanding Options Exercisable Weighted Average Weighted Average Range of Exercise Prices Number Remaining Contractual Life Exercise Price Intrinsic Value (000's) Number Remaining Contractual Life Exercise Price Intrinsic Value (000's) $72.14 - $85.82 261,307 1.85 years $ 80.95 $ 39,536 261,307 1.85 years $ 80.95 $ 39,536 $102.26 - $196.31 549,608 3.75 years $ 125.86 58,471 549,608 3.75 years $ 125.86 58,471 $204.01 - $262.14 1,313,121 7.34 years $ 233.03 (1,020 ) 535,792 5.86 years $ 226.51 (22 ) 2,124,036 5.73 years $ 186.59 $ 96,987 1,346,707 4.22 years $ 157.19 $ 97,985
Assumptions used to determine fair value of options granted	The fair value of each option granted in 2016, 2015 and 2014 used the following assumptions: For the years ended December 31, 2016 2015 2014 Risk-free interest rate 1.4% 1.5% 2.0% Expected life 6 years 6 years 6 years Expected volatility 24.5% 24.9% 25.0% Expected dividend yield 2.0% 1.9% 1.7%
Transactions involving performance-based share awards	The following table summarizes the transactions involving performance-based share awards: 2016 2015 2014 Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Beginning nonvested shares outstanding 73,160 $ 232.72 57,236 $ 220.00 57,533 $ 185.02 Issued 60,414 $ 191.38 47,264 $ 227.26 32,194 $ 242.65 Canceled (11,724 ) $ 241.41 (13,108 ) $ 215.01 (6,835 ) $ 190.90 Vested (23,510 ) $ 242.65 (18,232 ) $ 191.36 (25,656 ) $ 177.75 Ending nonvested shares outstanding 98,340 $ 203.91 73,160 $ 232.72 57,236 $ 220.00
Activity for restricted stock units	The following table summarizes RSU activity: 2016 2015 2014 Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Shares Weighted Average Price Per Share Beginning nonvested units 432,783 $ 213.45 560,351 $ 182.40 739,717 $ 154.09 Issued 113,909 $ 230.36 104,220 $ 234.21 103,427 $ 248.12 Canceled (62,869 ) $ 229.70 (38,124 ) $ 219.74 (51,410 ) $ 170.98 Vested (110,420 ) $ 193.51 (193,664 ) $ 133.56 (231,383 ) $ 123.82 Ending nonvested units 373,403 $ 221.77 432,783 $ 213.45 560,351 $ 182.40 Fair value of shares vested $21,367 $25,865 $28,650

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	12 Months Ended
	Dec. 31, 2016
CAPITAL STOCK [Abstract]
Schedule of Capital Stock	The Company had no shares of preferred stock outstanding as of December 31, 2016 and 2015 . The activity related to outstanding common stock and common stock held in treasury was as follows: 2016 2015 Outstanding Common Stock Treasury Stock Outstanding Common Stock Treasury Stock Balance at beginning of period 62,028,708 47,630,511 67,432,041 42,227,178 Exercise of stock options 315,171 (315,171 ) 580,947 (580,947 ) Settlement of restricted stock units, net of 41,128 and 73,496 shares retained, respectively 78,310 (78,310 ) 145,757 (145,757 ) Settlement of performance share units, net of 6,765 and 9,971 shares retained, respectively 11,806 (11,806 ) 15,956 (15,956 ) Purchase of treasury shares (3,629,681 ) 3,629,681 (6,145,993 ) 6,145,993 Balance at end of period 58,804,314 50,854,905 62,028,708 47,630,511

ACCUMULATED OTHER COMPREHENSI38

ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) (Tables)	12 Months Ended
	Dec. 31, 2016
ACCUMULATED OTHER COMPREHENSIVE EARNINGS [Abstract]
Schedule of AOCE	The components of AOCE consisted of the following (in thousands of dollars): Foreign Currency Translation Defined Postretirement Benefit Plan Other Employment-related Benefit Plans Other Total Foreign Currency Translation Attributable to Noncontrolling Interests AOCE Attributable to W.W. Grainger, Inc. Balance at January 1, 2014, net of tax $ (7,297 ) $ 34,887 $ (8,811 ) $ (2,971 ) $ 15,808 $ (13,106 ) $ 28,914 Other comprehensive earnings (loss) before reclassifications, net of tax (124,065 ) (22,667 ) (1,462 ) 786 (147,408 ) (9,880 ) (137,528 ) Amounts reclassified to Warehousing, marketing and administrative expenses 9,042 (6,617 ) 9,295 — 11,720 — 11,720 Amounts reclassified to Income Taxes — 2,545 (2,324 ) — 221 — 221 Net current period activity $ (115,023 ) $ (26,739 ) $ 5,509 $ 786 $ (135,467 ) $ (9,880 ) $ (125,587 ) Balance at December 31, 2014, net of tax $ (122,320 ) $ 8,148 $ (3,302 ) $ (2,185 ) $ (119,659 ) $ (22,986 ) $ (96,673 ) Other comprehensive earnings (loss) before reclassifications, net of tax (154,096 ) 30,451 641 1,300 (121,704 ) (532 ) (121,172 ) Amounts reclassified to Warehousing, marketing and administrative expenses — (5,289 ) — — (5,289 ) — (5,289 ) Amounts reclassified to Income Taxes — 2,043 — — 2,043 — 2,043 Net current period activity $ (154,096 ) $ 27,205 $ 641 $ 1,300 $ (124,950 ) $ (532 ) $ (124,418 ) Balance at December 31, 2015, net of tax $ (276,416 ) $ 35,353 $ (2,661 ) $ (885 ) $ (244,609 ) $ (23,518 ) $ (221,091 ) Other comprehensive earnings (loss) before reclassifications, net of tax (38,729 ) (6,022 ) (2,397 ) 885 (46,263 ) 906 (47,169 ) Amounts reclassified to Warehousing, marketing and administrative expenses — (6,559 ) — — (6,559 ) — (6,559 ) Amounts reclassified to Income Taxes — 2,525 — 2,525 — 2,525 Net current period activity (38,729 ) (10,056 ) (2,397 ) 885 (50,297 ) 906 (51,203 ) Balance at December 31, 2016, net of tax $ (315,145 ) $ 25,297 $ (5,058 ) $ — $ (294,906 ) $ (22,612 ) $ (272,294 )

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Income tax expense (benefit) consisted of the following (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Current provision: Federal $ 310,582 $ 412,545 $ 437,648 State 38,249 49,894 47,199 Foreign 25,076 24,087 43,088 Total current 373,907 486,526 527,935 Deferred tax (benefit) provision 12,313 (20,995 ) (5,845 ) Total provision $ 386,220 $ 465,531 $ 522,090
Schedule of Income before Income Tax, Domestic and Foreign	Earnings (losses) before income taxes by geographical area consisted of the following (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 United States $ 1,073,879 $ 1,203,880 $ 1,299,523 Foreign (54,821 ) 46,825 34,863 $ 1,019,058 $ 1,250,705 $ 1,334,386
Schedule of Deferred Tax Assets and Liabilities	The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) were (in thousands of dollars): As of December 31, 2016 2015 Deferred tax assets: Inventory $ 30,030 $ 32,390 Accrued expenses 70,021 56,127 Accrued employment-related benefits 124,556 116,423 Foreign operating loss carryforwards 67,350 70,881 Other 22,256 12,962 Deferred tax assets 314,213 288,783 Less valuation allowance (72,705 ) (62,333 ) Deferred tax assets, net of valuation allowance $ 241,508 $ 226,450 Deferred tax liabilities: Property, buildings and equipment (75,690 ) (42,249 ) Intangibles (127,292 ) (134,784 ) Software (25,431 ) (20,744 ) Prepaids (11,959 ) (17,901 ) Other (1,067 ) (17,277 ) Deferred tax liabilities (241,439 ) (232,955 ) Net deferred tax asset (liability) $ 69 $ (6,505 ) The net deferred tax asset (liability) is classified as follows: Noncurrent assets $ 64,775 $ 83,996 Noncurrent liabilities (foreign) (64,706 ) (90,501 ) Net deferred tax asset (liability) $ 69 $ (6,505 )
Summary of Valuation Allowance Changes	he Company's valuation allowance changed as follows (in thousands of dollars): For the Years Ended December 31, 2016 2015 Balance at beginning of period $ 62,333 $ 56,876 Valuation allowance increases primarily related to foreign NOLs 12,174 7,045 Valuation allowance releases related to foreign NOLs (3,870 ) (437 ) Other valuation allowance changes, net 2,068 (1,151 ) Balance at end of period $ 72,705 $ 62,333
Reconciliation of Income Tax Statutory Rate	A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Federal income tax at the 35% statutory rate $ 356,670 $ 437,746 $ 467,035 State income taxes, net of federal income tax benefit 25,993 29,507 31,263 Clean energy credit (28,670 ) (13,358 ) — Foreign rate difference 21,077 12,041 20,318 Other - net 11,150 (405 ) 3,474 Income tax expense $ 386,220 $ 465,531 $ 522,090 Effective tax rate 37.9 % 37.2 % 39.1 %
Reconciliation of Income Tax Contingencies	The balance and changes in the liability for tax uncertainties, excluding interest, are as follows (in thousands of dollars): For the Years Ended December 31, 2016 2015 2014 Balance at beginning of year $ 60,576 $ 45,126 $ 40,317 Additions for tax positions related to the current year 14,119 14,916 11,545 Additions for tax positions of prior years 13,215 2,653 5,318 Reductions for tax positions of prior years (14,774 ) (1,616 ) (4,109 ) Reductions due to statute lapse (1,527 ) (402 ) (1,271 ) Settlements, audit payments, refunds - net (12,928 ) (101 ) (6,674 ) Balance at end of year $ 58,681 $ 60,576 $ 45,126

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	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): For the Years Ended December 31, 2016 2015 2014 Net earnings attributable to W.W. Grainger, Inc. as reported $ 605,928 $ 768,996 $ 801,729 Distributed earnings available to participating securities (2,383 ) (2,823 ) (3,154 ) Undistributed earnings available to participating securities (3,044 ) (4,735 ) (6,370 ) Numerator for basic earnings per share - Undistributed and distributed earnings available to common shareholders 600,501 761,438 792,205 Undistributed earnings allocated to participating securities 3,044 4,735 6,370 Undistributed earnings reallocated to participating securities (3,023 ) (4,692 ) (6,290 ) Numerator for diluted earnings per share - Undistributed and distributed earnings available to common shareholders $ 600,522 $ 761,481 $ 792,285 Denominator for basic earnings per share – weighted average shares 60,430,892 65,156,864 68,334,322 Effect of dilutive securities 409,038 608,257 871,422 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 60,839,930 65,765,121 69,205,744 Earnings per share two-class method Basic $ 9.94 $ 11.69 $ 11.59 Diluted $ 9.87 $ 11.58 $ 11.45

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Summary of Segment Results	Following is a summary of segment results (in thousands of dollars): 2016 United States Canada Other Businesses Total Total net sales $ 7,870,105 $ 733,829 $ 1,884,963 $ 10,488,897 Intersegment net sales (347,468 ) (110 ) (4,115 ) (351,693 ) Net sales to external customers 7,522,637 733,719 1,880,848 10,137,204 Segment operating earnings 1,274,851 (65,362 ) 40,684 1,250,173 Segment assets 2,275,009 286,035 494,067 3,055,111 Depreciation and amortization 159,334 18,050 23,792 201,176 Additions to long-lived assets $ 153,556 $ 12,275 $ 95,288 $ 261,119 2015 United States Canada Other Businesses Total Total net sales $ 7,963,416 $ 890,530 $ 1,405,750 $ 10,259,696 Intersegment net sales (282,305 ) (105 ) (3,902 ) (286,312 ) Net sales to external customers 7,681,111 890,425 1,401,848 9,973,384 Segment operating earnings 1,371,626 27,368 48,051 1,447,045 Segment assets 2,191,045 317,504 507,116 3,015,665 Depreciation and amortization 150,654 17,334 19,999 187,987 Additions to long-lived assets $ 302,316 $ 20,464 $ 21,135 $ 343,915 2014 United States Canada Other Businesses Total Total net sales $ 7,926,075 $ 1,075,754 $ 1,182,186 $ 10,184,015 Intersegment net sales (211,399 ) (304 ) (7,359 ) (219,062 ) Net sales to external customers 7,714,676 1,075,450 1,174,827 9,964,953 Segment operating earnings 1,444,288 87,583 (37,806 ) 1,494,065 Segment assets 2,181,521 394,342 345,987 2,921,850 Depreciation and amortization 136,081 15,305 20,444 171,830 Additions to long-lived assets $ 243,251 $ 106,918 $ 31,137 $ 381,306
Significant Reconciling Items from Segments to Consolidated	Following are reconciliations of the segment information with the consolidated totals per the financial statements (in thousands of dollars): 2016 2015 2014 Operating earnings: Total operating earnings for reportable segments $ 1,250,173 $ 1,447,045 $ 1,494,065 Unallocated expenses (130,676 ) (146,725 ) (146,948 ) Total consolidated operating earnings $ 1,119,497 $ 1,300,320 $ 1,347,117 Assets: Assets for reportable segments $ 3,055,111 $ 3,015,665 $ 2,921,850 Other current and noncurrent assets 2,464,656 2,624,966 2,113,900 Unallocated assets 174,540 217,124 247,299 Total consolidated assets $ 5,694,307 $ 5,857,755 $ 5,283,049 2016 Segment Totals Unallocated Consolidated Total Other significant items: Depreciation and amortization $ 201,176 $ 21,469 $ 222,645 Additions to long-lived assets $ 261,119 $ 10,542 $ 271,661 Revenues Long-Lived Assets Geographic information: United States $ 7,834,361 $ 1,134,817 Canada 739,687 210,931 Other foreign countries 1,563,156 210,605 $ 10,137,204 $ 1,556,353 2015 Segment Totals Unallocated Consolidated Total Other significant items: Depreciation and amortization $ 187,987 $ 18,854 $ 206,841 Additions to long-lived assets $ 343,915 $ 16,912 $ 360,827 Revenues Long-Lived Assets Geographic information: United States $ 7,866,300 $ 1,231,083 Canada 897,431 215,202 Other foreign countries 1,209,653 153,508 $ 9,973,384 $ 1,599,793 2014 Segment Totals Unallocated Consolidated Total Other significant items: Depreciation and amortization $ 171,830 $ 18,341 $ 190,171 Additions to long-lived assets $ 381,306 $ 22,498 $ 403,804 Revenues Long-Lived Assets Geographic information: United States $ 7,780,382 $ 1,109,175 Canada 1,074,660 253,466 Other foreign countries 1,109,911 110,083 $ 9,964,953 $ 1,472,724

SELECTED QUARTERLY FINANCIAL 42

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2016
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]
Schedule of Quarterly Financial Information	A summary of selected quarterly information for 2016 and 2015 is as follows (in thousands of dollars, except for per share amounts): 2016 Quarter Ended March 31 June 30 September 30 December 31 Total Net sales $ 2,506,538 $ 2,563,668 $ 2,596,288 $ 2,470,710 $ 10,137,204 Cost of merchandise sold 1,461,485 1,523,609 1,556,536 1,481,017 6,022,647 Gross profit 1,045,053 1,040,059 1,039,752 989,693 4,114,557 Warehousing, marketing and administrative expenses 727,961 734,470 717,165 815,464 2,995,060 Operating earnings 317,092 305,589 322,587 174,229 1,119,497 Net earnings attributable to W.W. Grainger, Inc. 186,713 172,676 185,873 60,666 605,928 Earnings per share - basic 3.00 2.81 3.07 1.02 9.94 Earnings per share - diluted $ 2.98 $ 2.79 $ 3.05 $ 1.01 $ 9.87 2015 Quarter Ended March 31 June 30 September 30 December 31 Total Net sales $ 2,439,661 $ 2,522,565 $ 2,532,900 $ 2,478,258 $ 9,973,384 Cost of merchandise sold 1,345,918 1,449,133 1,471,021 1,475,884 5,741,956 Gross profit 1,093,743 1,073,432 1,061,879 1,002,374 4,231,428 Warehousing, marketing and administrative expenses 742,496 716,715 721,150 750,747 2,931,108 Operating earnings 351,247 356,717 340,729 251,627 1,300,320 Net earnings attributable to W.W. Grainger, Inc. 211,015 220,548 192,201 145,232 768,996 Earnings per share - basic 3.11 3.28 2.94 2.32 11.69 Earnings per share - diluted $ 3.07 $ 3.25 $ 2.92 $ 2.30 $ 11.58

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Noncontrolling interest ownership percentage by parent	51.00%
eCommerce revenue	47.00%
Service fee revenue (less than)	1.00%
Advertising expense	$ 180	$ 180	$ 169
Catalog-related prepaid expenses	$ 12	19
Original maturity of cash (days)	90 days
Percentage of LIFO Inventory	64.00%
Depreciation	$ 166	162	154
Capitalized interest costs	$ 2	4	$ 2
Standard product warranty period	1 year
Warranty reserves	$ 3	$ 3
Minimum [Member]
Buildings, structures and improvements, estimated useful life	10 years
Furniture, fixtures, machinery equipment, estimated useful life	3 years
Capitalized software amortization period	3 years
Maximum [Member]
Buildings, structures and improvements, estimated useful life	30 years
Furniture, fixtures, machinery equipment, estimated useful life	10 years
Capitalized software amortization period	5 years

BUSINESS ACQUISITIONS AND DIV44

BUSINESS ACQUISITIONS AND DIVESTITURES (Details) $ in Thousands, £ in Millions	Sep. 01, 2015GBP (£)	Sep. 01, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Aug. 31, 2015GBP (£)	Aug. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Business Acquisitions and Divestitures [Line Items]
Goodwill			$ 527,150	$ 582,336			$ 506,905
Reclassification of cumulative currency translation			$ 0	$ 0			9,042
Cromwell [Member]
Business Acquisitions and Divestitures [Line Items]
Sales reported by acquired entity for last fiscal year					£ 285	$ 437,000
Acquisition price	£ 310	$ 464,000
Goodwill		123,000
Cromwell [Member] | Customer relationships [Member]
Business Acquisitions and Divestitures [Line Items]
Finite lived intangibles, acquired		$ 132,000
Acquired finite-lived intangible assets, useful life	15 years	15 years
Cromwell [Member] | Tradename [Member]
Business Acquisitions and Divestitures [Line Items]
Indefinite lived intangibles, acquired		$ 84,000
Grainger Brazil [Member]
Business Acquisitions and Divestitures [Line Items]
Shutdown costs							29,000
Reclassification of cumulative currency translation							$ 9,000

GOODWILL AND OTHER INTANGIBLE45

GOODWILL AND OTHER INTANGIBLE ASSETS Balances and Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 582,336	$ 506,905
Acquisitions		114,903
Acquisitions and Purchase Price Adjustments	8,362
Impairment	(47,244)
Translation	(16,304)	(39,472)
Goodwill, ending balance	527,150	582,336
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Cumulative goodwill impairment charges, January 1, 2016	72,358
Cumulative goodwill impairment charges, December 31, 2016	119,602	72,358
United States [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	202,020	202,020
Acquisitions		0
Acquisitions and Purchase Price Adjustments	0
Impairment	0
Translation	0	0
Goodwill, ending balance	202,020	202,020
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Cumulative goodwill impairment charges, January 1, 2016	17,038
Cumulative goodwill impairment charges, December 31, 2016	17,038	17,038
Canada [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	118,529	141,189
Acquisitions		0
Acquisitions and Purchase Price Adjustments	0
Impairment	0
Translation	3,611	(22,660)
Goodwill, ending balance	122,140	118,529
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Cumulative goodwill impairment charges, January 1, 2016	32,265
Cumulative goodwill impairment charges, December 31, 2016	32,265	32,265
Other Businesses [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	261,787	163,696
Acquisitions		114,903
Acquisitions and Purchase Price Adjustments	8,362
Impairment	(47,244)
Translation	(19,915)	(16,812)
Goodwill, ending balance	202,990	261,787
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Cumulative goodwill impairment charges, January 1, 2016	23,055
Cumulative goodwill impairment charges, December 31, 2016	$ 70,299	$ 23,055

GOODWILL AND OTHER INTANGIBLE46

GOODWILL AND OTHER INTANGIBLE ASSETS Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Goodwill	$ 527,150	$ 527,150	$ 582,336	$ 506,905
Impairment, goodwill		47,244
Amortization expense, intangible assets		82,000	65,000	$ 54,000
Capitalized software [Member]
Segment Reporting Information [Line Items]
Intangibles, net	197,460	197,460	$ 184,716
Fabory [Member]
Segment Reporting Information [Line Items]
Reporting unit, percentage of fair value in excess of carrying amount			15.00%
Goodwill	55,000	$ 55,000	$ 106,000
Impairment, goodwill	$ 47,000
Other Assets [Member] | Capitalized software [Member]
Segment Reporting Information [Line Items]
Intangibles, net			$ 185,000

GOODWILL AND OTHER INTANGIBLE47

GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets included in Other assets and intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-lived intangible assets, accumulated amortization	$ 563,892	$ 481,042
Total intangible assets, gross	1,150,018	1,129,052
Total intangible assets, net	586,126	648,010
Customer lists and relationships [Member]
Finite-lived intangible assets, gross	424,405	452,429
Finite-lived intangible assets, accumulated amortization	175,112	148,424
Finite-lived intangible assets, net	249,293	304,005
Trademarks, trade names and other [Member]
Finite-lived intangible assets, gross	25,353	25,764
Finite-lived intangible assets, accumulated amortization	14,262	13,051
Finite-lived intangible assets, net	11,091	12,713
Non-amortized trade names and other [Member]
Indefinite-lived intangible assets, carrying amount	128,282	146,576
Capitalized software [Member]
Finite-lived intangible assets, gross	571,978	504,283
Finite-lived intangible assets, accumulated amortization	374,518	319,567
Finite-lived intangible assets, net	$ 197,460	$ 184,716
Weighted average [Member]
Finite-lived intangible assets, useful life	8 years 6 months
Weighted average [Member] | Customer lists and relationships [Member]
Finite-lived intangible assets, useful life	14 years 2 months 12 days
Weighted average [Member] | Trademarks, trade names and other [Member]
Finite-lived intangible assets, useful life	13 years 9 months 18 days
Weighted average [Member] | Capitalized software [Member]
Finite-lived intangible assets, useful life	4 years 2 months 12 days

GOODWILL AND OTHER INTANGIBLE48

GOODWILL AND OTHER INTANGIBLE ASSETS Estimated amortization expense (Details) $ in Thousands	Dec. 31, 2016USD ($)
GOODWILL AND OTHER INTANGIBLES [Abstract]
2,017	$ 85,791
2,018	75,502
2,019	58,309
2,020	43,488
2,021	31,716
Thereafter	$ 163,038

ALLOWANCE FOR DOUBTFUL ACCOUN49

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ALLOWANCE FOR DOUBTFUL ACCOUNTS [Abstract]
Balance at beginning of period	$ 22,288	$ 22,121
Provision for uncollectible accounts	16,216	10,181	$ 12,945
Write-off of uncollectible accounts, net of recoveries	(11,248)	(10,495)
Business acquisitions, foreign currency and other	(566)	481
Balance at end of period	$ 26,690	$ 22,288	$ 22,121

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Inventory, LIFO Reserve	$ 382	$ 388
Inventory, LIFO Reserve, Effect on Income, Net	$ 3	$ 1	$ (1)

INVENTORIES - Activity in reser

INVENTORIES - Activity in reserves for excess and obsolete inventory (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Balance at beginning of period	$ (168,105)	$ (136,748)
Provision for excess and obsolete inventory	(58,485)	(35,165)
Disposal of unsaleable inventory	30,161	24,046
Business acquisitions, foreign currency and other	4,915	(20,238)
Balance at end of period	$ (191,514)	$ (168,105)

RESTRUCTURING RESERVES (Details

RESTRUCTURING RESERVES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accrued compensation and benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 23	$ 24
Warehousing, marketing and administrative expenses [Member]
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 34	$ 30

SHORT-TERM DEBT (Details)

SHORT-TERM DEBT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Line of credit [Member]
Short-term Debt [Line Items]
Lines of credit	$ 16,392,000	$ 23,072,000
Maximum month-end balance during the year	$ 24,722,000	$ 47,802,000
Weighted average interest rate during the year	4.04%	4.37%
Weighted average interest rate at December 31	5.13%	3.16%
Committed Line of Credit	$ 900,000,000	$ 900,000,000
Commitment fee percentage	0.07%	0.07%
Uncommitted lines of credit	$ 88,000,000	$ 100,000,000
Commercial Paper [Member]
Short-term Debt [Line Items]
Maximum month-end balance during the year	629,712,000	330,000,000
Commercial paper	$ 369,748,000	$ 330,000,000
Weighted average interest rate during the year	0.50%	0.23%
Weighted average interest rate at December 31	0.69%	0.47%
Letter of Credit [Member]
Short-term Debt [Line Items]
Letters of credit outstanding	$ 30,000,000	$ 29,000,000
Letters of credit outstanding to facilitate purchase of products	$ 5,000,000	$ 3,000,000

LONG-TERM DEBT - SCHEDULE OF LO

LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Dec. 31, 2016	May 16, 2016	Dec. 31, 2015	Jun. 11, 2015
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,880,036		$ 1,648,707
Other	71,109		75,866
Less current maturities	(19,966)		(247,346)
Debt issuance costs and discounts	(19,124)		(12,947)
Long-term debt (less current maturities and debt issuance costs and discounts)	1,840,946		1,388,414
U.S. dollar term loan [Member]
Debt Instrument [Line Items]
Long-term debt, gross	0		114,614
British pound term loan [Member]
Debt Instrument [Line Items]
Long-term debt, gross	187,506		235,808
Euro term loan and revolving credit facility [Member]
Debt Instrument [Line Items]
Long-term debt, gross	120,900		114,030
Canadian dollar revolving credit facility [Member]
Debt Instrument [Line Items]
Long-term debt, gross	100,521		108,389
Unsecured Senior Notes, 4.60% [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,000,000		1,000,000
Stated interest rate	4.60%			4.60%
Unsecured Senior Notes, 3.75% [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 400,000		$ 0
Stated interest rate	3.75%	3.75%

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	Aug. 31, 2016EUR (€)	May 16, 2016USD ($)	Aug. 26, 2015GBP (£)	Jun. 11, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2016CAD	Dec. 31, 2015USD ($)	Dec. 31, 2015CAD	Dec. 31, 2014USD ($)	Dec. 31, 2016EUR (€)	Sep. 30, 2014CAD
Debt Instrument [Line Items]
Repayments debt					$ 262,248,000		$ 52,838,000		$ 170,907,000
August 2016 Credit Agreement [Member] | Term loan [Member]
Debt Instrument [Line Items]
Face amount of debt | €	€ 110,000,000
Debt issuance costs and discounts | €	€ 500,000
Debt, term	5 years
Effective interest rate					0.45%					0.45%
August 2016 Credit Agreement [Member] | Revolving credit facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity | €	€ 20,000,000
Commitment fee percentage					0.1225%	0.1225%
Long-term line of credit, outstanding borrowings | €										€ 5,000,000
Effective interest rate					0.35%					0.35%
Senior notes [Member] | Unsecured Senior Notes, 3.75% [Member]
Debt Instrument [Line Items]
Face amount of debt		$ 400,000,000
Stated interest rate		3.75%			3.75%					3.75%
Basis points		0.20%
Debt issuance costs and discounts		$ 7,000,000
Debt, fair value					$ 371,000,000
Senior notes [Member] | Unsecured Senior Notes, 3.75% [Member] | Debt redemption, period one [Member]
Debt Instrument [Line Items]
Debt redemption percentage		101.00%
Senior notes [Member] | Unsecured Senior Notes, 3.75% [Member] | Debt redemption, period two [Member]
Debt Instrument [Line Items]
Debt redemption percentage		100.00%
Senior notes [Member] | Unsecured Senior Notes, 4.60% [Member]
Debt Instrument [Line Items]
Face amount of debt				$ 1,000,000,000
Stated interest rate				4.60%	4.60%					4.60%
Basis points				0.25%
Debt issuance costs and discounts				$ 11,000,000
Debt, fair value					$ 1,100,000,000		$ 1,000,000,000
Senior notes [Member] | Unsecured Senior Notes, 4.60% [Member] | Debt redemption, period one [Member]
Debt Instrument [Line Items]
Debt redemption percentage				101.00%
Senior notes [Member] | Unsecured Senior Notes, 4.60% [Member] | Debt redemption, period two [Member]
Debt Instrument [Line Items]
Debt redemption percentage				100.00%
Line of credit [Member] | Revolving credit facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity | £			£ 20,000,000
Commitment fee percentage					0.26%	0.26%
Long-term line of credit, outstanding borrowings					$ 0
Term loan [Member] | British pound term loan [Member]
Debt Instrument [Line Items]
Face amount of debt | £			£ 160,000,000
Debt, term			5 years
Semi annual payments | £			£ 4,000,000
Weighted average interest rate					1.17%		1.26%			1.17%
Revolving credit facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity | CAD											CAD 175,000,000
Weighted average interest rate					1.59%					1.59%
Commitment fee percentage					0.07%	0.07%
Revolving credit facility, initiation date					Sep. 29, 2014	Sep. 29, 2014
Revolving credit facility, maturity date					Sep. 24, 2019	Sep. 24, 2019
Proceeds from revolving credit facility | CAD						CAD 135,000,000		CAD 150,000,000
Required principal payments					$ 0
Euro term loan and revolving credit facility [Member]
Debt Instrument [Line Items]
Repayments debt | €	€ 102,500,000
Euro Interbank Offered Rate (EURIBOR) [Member] | August 2016 Credit Agreement [Member] | Term loan [Member]
Debt Instrument [Line Items]
Basis points	0.45%
Euro Interbank Offered Rate (EURIBOR) [Member] | August 2016 Credit Agreement [Member] | Revolving credit facility [Member]
Debt Instrument [Line Items]
Basis points	0.35%

LONG-TERM DEBT - SCHEDULED AGGR

LONG-TERM DEBT - SCHEDULED AGGREGATE PRINCIPAL PAYMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Long-term Debt, Fiscal Year Maturity [Abstract]
2,017	$ 19,966	$ 247,346
2,018	29,339
2,019	128,670
2,020	179,322
2,021	115,743
Thereafter	1,406,996
Total	$ 1,880,036	$ 1,648,707

EMPLOYEE BENEFITS - Defined Con

EMPLOYEE BENEFITS - Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Profit sharing automatic contribution percentage	3.00%
Profit sharing plan expense	$ 84	$ 121	$ 175
Defined contribution plans, expense	$ 12	$ 11	$ 15
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Profit sharing contribution percentage	8.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Profit sharing contribution percentage	18.00%

EMPLOYEE BENEFITS - Postretirem

EMPLOYEE BENEFITS - Postretirement Benefits (Details) - Postretirement Benefits [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Postretirement Benefits
Service cost	$ 8,238	$ 10,128	$ 9,005
Interest cost	9,855	9,649	10,549
Expected return on assets	(10,113)	(10,375)	(8,237)
Amortization of prior service credits	(6,688)	(6,801)	(7,254)
Amortization of transition asset	0	0	(143)
Amortization of unrecognized losses	129	1,512	779
Net periodic benefit costs	1,421	4,113	4,699
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	239,348	282,917
Service cost	8,238	10,128	9,005
Interest cost	9,855	9,649	10,549
Plan participants' contributions	2,943	2,754
Actuarial losses (gains)	13,218	(58,251)
Benefits paid	(9,439)	(8,739)
Prescription drug rebates	865	890
Benefit obligation at end of year	265,028	239,348	$ 282,917
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan participants' contributions	2,943	2,754
Benefits paid	(9,439)	(8,739)
Prescription drug rebates	865	890
Noncurrent postretirement benefit obligation	101,483	83,737
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Prior service credit	53,814	60,502
Unrecognized losses	(12,656)	(3,015)
Deferred tax (liability)	(15,861)	(22,134)
Net accumulated gains	25,297	$ 35,353
Increase in unrecognized Losses in AOCE	10,000
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract]
Amortization of prior service credit	(6,492)
Amortization of unrecognized losses	937
Estimated amount to be amortized from AOCE into net periodic postretirement benefit costs	$ (5,555)
Net unrecognized gains (losses), amortization period	13 years 6 months
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	4.20%	3.89%	4.90%
Long-term rate of return on plan assets, net of tax	6.65%	6.65%	5.70%
Initial healthcare cost trend rate	7.00%	7.25%	7.50%
Ultimate healthcare cost trend rate	4.50%	4.50%	4.50%
Year ultimate healthcare cost trend rate reached	2,026	2,026	2,026
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.00%	4.20%	3.89%
Expected long-term rate of return on plan assets, net of tax	7.13%	6.65%	6.65%
Initial healthcare cost trend rate	6.81%	7.00%	7.25%
Ultimate healthcare cost trend rate	4.50%	4.50%	4.50%
Year ultimate healthcare cost trend rate reached	2,026	2,026	2,026
Initial healthcare cost trend rate, post age 65	9.36%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
Effect of one percentage point increase on service and interest cost	$ 1,411
Effect of one percentage point decrease on service and interest cost	(1,162)
Effect of one percentage point increase on postretirement benefit obligation	27,542
Effect of one percentage point decrease on postretirement benefit obligation	(22,748)
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]
Estimated gross benefit payments, 2017	8,211
Estimated gross benefit payments, 2018	9,236
Estimated gross benefit payments, 2019	10,212
Estimated gross benefit payments, 2020	11,428
Estimated gross benefit payments, 2021	12,692
Estimated gross benefit payments, 2022-2026	78,216
Plan Assets [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Plan participants' contributions	2,774	$ 2,754
Benefits paid	(9,262)	(8,430)
Prescription drug rebates	865	890
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets available for benefits at beginning of year	155,611	156,015
Actual returns on plan assets	13,557	1,635
Employer's contributions	0	2,747
Plan participants' contributions	2,774	2,754
Benefits paid	(9,262)	(8,430)
Prescription drug rebates	865	890
Plan assets available for benefits at end of year	163,545	155,611	$ 156,015
Fidelity Spartan US Equity Index Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets available for benefits at beginning of year	70,973
Plan assets available for benefits at end of year	70,950	70,973
Vanguard 500 Index Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets available for benefits at beginning of year	78,254
Plan assets available for benefits at end of year	87,587	78,254
Vanguard Total International Stock Member | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets available for benefits at beginning of year	22,976
Plan assets available for benefits at end of year	24,056	22,976
Total Registered Investment Companies [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Trust liabilities	(19,048)	(16,592)
Total Registered Investment Companies [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets available for benefits at beginning of year	172,203
Plan assets available for benefits at end of year	$ 182,593	$ 172,203

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Leases [Abstract]
Operating lease expiration date	2,036
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,017	$ 59,045
2,018	45,504
2,019	32,616
2,020	15,358
2,021	10,333
Thereafter	15,469
Total minimum payments required	178,325
Less amounts representing sublease income	(4,063)
Future minimum lease payments, net of income	174,262
Operating lease, rent expense	81,000	$ 77,000	$ 77,000
Operating lease, sublease income	$ 2,000	$ 2,000	$ 2,000

STOCK INCENTIVE PLANS (Details)

STOCK INCENTIVE PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for grant under stock incentive plans (in shares)	2,900,000
Pretax stock-based compensation expense	$ 35,000	$ 43,000	$ 46,000
Income tax benefits recognized in earnings for stock-based compensation expense	$ 11,000	$ 13,000	$ 15,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at January 1 (in shares)	2,226,286	2,582,804	2,850,455
Granted (in shares)	294,874	294,522	257,693
Exercised (in shares)	(317,110)	(587,441)	(479,452)
Canceled or expired (in shares)	(80,014)	(63,599)	(45,892)
Outstanding at December 31 (in shares)	2,124,036	2,226,286	2,582,804
Weighted Average Price Per Share [Abstract]
Outstanding at January 1, weighted average price per share (in dollars per share)	$ 169.96	$ 149.01	$ 132.67
Granted, weighted average price per share (in dollars per share)	234.25	232.20	248.21
Exercised, weighted average price per share (in dollars per share)	108.28	105.08	100.33
Canceled or expired, weighted average price per share (in dollars per share)	210.01	216.76	199.80
Outstanding at December 31, weighted average price per share (in dollars per share)	$ 186.59	$ 169.96	$ 149.01
Options exercisable outstanding at January 1 (in shares)	1,411,460	1,647,903	1,652,417
Options exercisable outstanding at December 31 (in shares)	1,346,707	1,411,460	1,647,903
Stock Options Exercised [Abstract]
Fair value of options exercised	$ 8,086	$ 14,423	$ 11,167
Total intrinsic value of options exercised	35,800	73,671	71,924
Fair value of options vested	14,535	16,047	16,115
Settlements of options exercised	$ 34,573	$ 61,863	$ 47,974
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Expiration period	10 years
Stock Options Exercised [Abstract]
Unrecognized compensation	$ 8,600
Weighted average period to recognize (in years)	1 year 9 months 18 days

STOCK INCENTIVE PLANS - Stock O

STOCK INCENTIVE PLANS - Stock Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, number (in shares)	2,124,036	2,226,286	2,582,804	2,850,455
Options outstanding, weighted-average remaining contractual life (in years)	5 years 8 months 23 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 186.59
Options outstanding intrinsic value	$ 96,987
Options exercisable (in shares)	1,346,707
Options exercisable, weighted-average remaining contractual life (in years)	4 years 2 months 19 days
Options exercisable, weighted-average exercise price (in dollars per share)	$ 157.19
Options exercisable intrinsic value	$ 97,985
Range 1 of Exercise Prices [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit (in dollars per share)	$ 72.14
Exercise price range, upper range limit (in dollars per share)	$ 85.82
Options outstanding, number (in shares)	261,307
Options outstanding, weighted-average remaining contractual life (in years)	1 year 10 months 6 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 80.95
Options outstanding intrinsic value	$ 39,536
Options exercisable (in shares)	261,307
Options exercisable, weighted-average remaining contractual life (in years)	1 year 10 months 6 days
Options exercisable, weighted-average exercise price (in dollars per share)	$ 80.95
Options exercisable intrinsic value	$ 39,536
Range 2 of Exercise Prices [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit (in dollars per share)	$ 102.26
Exercise price range, upper range limit (in dollars per share)	$ 196.31
Options outstanding, number (in shares)	549,608
Options outstanding, weighted-average remaining contractual life (in years)	3 years 9 months
Options outstanding, weighted-average exercise price (in dollars per share)	$ 125.86
Options outstanding intrinsic value	$ 58,471
Options exercisable (in shares)	549,608
Options exercisable, weighted-average remaining contractual life (in years)	3 years 9 months
Options exercisable, weighted-average exercise price (in dollars per share)	$ 125.86
Options exercisable intrinsic value	$ 58,471
Range 3 of Exercise Prices [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit (in dollars per share)	$ 204.01
Exercise price range, upper range limit (in dollars per share)	$ 262.14
Options outstanding, number (in shares)	1,313,121
Options outstanding, weighted-average remaining contractual life (in years)	7 years 4 months 2 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 233.03
Options outstanding intrinsic value	$ (1,020)
Options exercisable (in shares)	535,792
Options exercisable, weighted-average remaining contractual life (in years)	5 years 10 months 10 days
Options exercisable, weighted-average exercise price (in dollars per share)	$ 226.51
Options exercisable intrinsic value	$ (22)

STOCK INCENTIVE PLANS - Fair Va

STOCK INCENTIVE PLANS - Fair Value of Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
STOCK INCENTIVE PLANS [Abstract]
Weighted average fair value of options granted (in dollars per share)	$ 44.94	$ 46.67	$ 53.43
Risk-free interest rate (in hundredths)	1.40%	1.50%	2.00%
Expected life (in years)	6 years	6 years	6 years
Expected volatility (in hundredths)	24.50%	24.90%	25.00%
Expected dividend yield (in hundredths)	2.00%	1.90%	1.70%

STOCK INCENTIVE PLANS - Perform

STOCK INCENTIVE PLANS - Performance Shares and Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Outstanding at beginning of period (in shares) | shares	73,160	57,236	57,533
Issued (in shares) | shares	60,414	47,264	32,194
Canceled (in shares) | shares	(11,724)	(13,108)	(6,835)
Vested (in shares) | shares	(23,510)	(18,232)	(25,656)
Outstanding at end of period (in shares) | shares	98,340	73,160	57,236
Weighted Average Price Per Share [Abstract]
Outstanding at beginning of period, weighted average price per share (in dollars per share) | $ / shares	$ 232.72	$ 220	$ 185.02
Issued, weighted average price per share (in dollars per share) | $ / shares	191.38	227.26	242.65
Cancelled, weighted average price per share (in dollars per share) | $ / shares	241.41	215.01	190.90
Vested, weighted average price per share (in dollars per share) | $ / shares	242.65	191.36	177.75
Outstanding at end of period, weighted average price per share (in dollars per share) | $ / shares	$ 203.91	$ 232.72	$ 220
Unearned unrecognized compensation | $	$ 11,500
Weighted average period to recognize (in years)	3 years 2 months 12 days
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio	1
Fair value of shares vested | $	$ 21,367	$ 25,865	$ 28,650
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Outstanding at beginning of period (in shares) | shares	432,783	560,351	739,717
Issued (in shares) | shares	113,909	104,220	103,427
Canceled (in shares) | shares	(62,869)	(38,124)	(51,410)
Vested (in shares) | shares	(110,420)	(193,664)	(231,383)
Outstanding at end of period (in shares) | shares	373,403	432,783	560,351
Weighted Average Price Per Share [Abstract]
Outstanding at beginning of period, weighted average price per share (in dollars per share) | $ / shares	$ 213.45	$ 182.40	$ 154.09
Issued, weighted average price per share (in dollars per share) | $ / shares	230.36	234.21	248.12
Cancelled, weighted average price per share (in dollars per share) | $ / shares	229.70	219.74	170.98
Vested, weighted average price per share (in dollars per share) | $ / shares	193.51	133.56	123.82
Outstanding at end of period, weighted average price per share (in dollars per share) | $ / shares	$ 221.77	$ 213.45	$ 182.40
Unearned unrecognized compensation | $	$ 43,000
Weighted average period to recognize (in years)	3 years
Minimum [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Minimum [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Maximum [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	7 years
Maximum [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	7 years

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cumulative preferred stock, shares outstanding (in shares)	0	0
Balance at beginning of period, treasury stock (in shares)	47,630,511
Exercise of stock options (in shares)	317,110	587,441	479,452
Balance at end of period, treasury stock (in shares)	50,854,905	47,630,511
Shares retained after settlement of restricted stock units (in shares)	41,128	73,496
Shares retained after settlement of performance share units (in shares)	6,765	9,971
Outstanding Common Stock [Member]
Balance at beginning of period, common stock (in shares)	62,028,708	67,432,041
Exercise of stock options (in shares)	315,171	580,947
Settlement of restricted stock units, net of 41,128 and 73,496 shares retained, respectively (in shares)	78,310	145,757
Settlement of performance share units, net of 6,765 and 9,971 shares retained, respectively (in shares)	11,806	15,956
Purchase of treasury shares (in shares)	(3,629,681)	(6,145,993)
Balance at end of period, common stock (in shares)	58,804,314	62,028,708	67,432,041
Treasury Stock [Member]
Balance at beginning of period, treasury stock (in shares)	47,630,511	42,227,178
Exercise of stock options (in shares)	(315,171)	(580,947)
Settlement of restricted stock units, net of 41,128 and 73,496 shares retained, respectively (in shares)	(78,310)	(145,757)
Settlement of performance share units, net of 6,765 and 9,971 shares retained, respectively (in shares)	(11,806)	(15,956)
Purchase of treasury shares (in shares)	3,629,681	6,145,993
Balance at end of period, treasury stock (in shares)	50,854,905	47,630,511	42,227,178

ACCUMULATED OTHER COMPREHENSI65

ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	$ (221,091)
Reclassification of cumulative currency translation	0	$ 0	$ (9,042)
Net current period activity	(50,297)	(124,950)	(135,467)
Accumulated other comprehensive earnings (losses), ending balance	(272,294)	(221,091)
Foreign Currency Translation
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	(276,416)	(122,320)	(7,297)
Other comprehensive earnings (loss) before reclassifications, net of tax	(38,729)	(154,096)	(124,065)
Reclassification of cumulative currency translation	0	0	9,042
Tax impact from reclassification of foreign currency translation	0	0	0
Net current period activity	(38,729)	(154,096)	(115,023)
Accumulated other comprehensive earnings (losses), ending balance	(315,145)	(276,416)	(122,320)
Defined Postretirement Benefit Plan
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	35,353	8,148	34,887
Other comprehensive earnings (loss) before reclassifications, net of tax	(6,022)	30,451	(22,667)
Reclassification of postretirement and other employment-related benefit plans	(6,559)	(5,289)	(6,617)
Tax impact from reclassification of postretirement and other-employment related benefit plans	2,525	2,043	2,545
Net current period activity	(10,056)	27,205	(26,739)
Accumulated other comprehensive earnings (losses), ending balance	25,297	35,353	8,148
Other Employment-related Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	(2,661)	(3,302)	(8,811)
Other comprehensive earnings (loss) before reclassifications, net of tax	(2,397)	641	(1,462)
Reclassification of postretirement and other employment-related benefit plans	0	0	9,295
Tax impact from reclassification of postretirement and other-employment related benefit plans	0	0	(2,324)
Net current period activity	(2,397)	641	5,509
Accumulated other comprehensive earnings (losses), ending balance	(5,058)	(2,661)	(3,302)
Other
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	(885)	(2,185)	(2,971)
Other comprehensive earnings (loss) before reclassifications, net of tax	885	1,300	786
Reclassification of other	0	0	0
Tax impact from reclassification of other		0	0
Net current period activity	885	1,300	786
Accumulated other comprehensive earnings (losses), ending balance	0	(885)	(2,185)
Total AOCE (before NCI)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	(244,609)	(119,659)	15,808
Other comprehensive earnings (loss) before reclassifications, net of tax	(46,263)	(121,704)	(147,408)
Total reclassifications	(6,559)	(5,289)	11,720
Total tax impact from all reclassifications	2,525	2,043	221
Net current period activity	(50,297)	(124,950)	(135,467)
Accumulated other comprehensive earnings (losses), ending balance	(294,906)	(244,609)	(119,659)
Foreign Currency Translation Attributable to Noncontrolling Interests
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	(23,518)	(22,986)	(13,106)
Other comprehensive earnings (loss) before reclassifications, net of tax	906	(532)	(9,880)
Reclassification of cumulative currency translation	0	0	0
Tax impact from reclassification of foreign currency translation	0	0	0
Net current period activity	906	(532)	(9,880)
Accumulated other comprehensive earnings (losses), ending balance	(22,612)	(23,518)	(22,986)
AOCE Attributable to W.W. Grainger, Inc.
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Accumulated other comprehensive earnings (losses), beginning balance	(221,091)	(96,673)	28,914
Other comprehensive earnings (loss) before reclassifications, net of tax	(47,169)	(121,172)	(137,528)
Total reclassifications	(6,559)	(5,289)	11,720
Total tax impact from all reclassifications	2,525	2,043	221
Net current period activity	(51,203)	(124,418)	(125,587)
Accumulated other comprehensive earnings (losses), ending balance	$ (272,294)	$ (221,091)	$ (96,673)

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current provision:
Federal	$ 310,582,000	$ 412,545,000	$ 437,648,000
State	38,249,000	49,894,000	47,199,000
Foreign	25,076,000	24,087,000	43,088,000
Total current	373,907,000	486,526,000	527,935,000
Deferred tax (benefit) provision	12,313,000	(20,995,000)	(5,845,000)
Income tax expense	386,220,000	$ 465,531,000	522,090,000
Operating loss carryforwards related primarily from foreign operations	$ 256,000,000
Percentage reduction in overall effective tax rate	2.80%	1.00%
Undistributed earnings of foreign subsidiaries	$ 629,000,000
Provision for deferred US income taxes related to foreign subsidiaries with undistributed earnings	0
Liability for tax uncertainties	22,000,000	$ 17,000,000
Interest expense	1,000,000	1,000,000	2,000,000
Interest accrued	$ 4,000,000	$ 5,000,000	$ 4,000,000

INCOME TAXES - Net Earnings Bef

INCOME TAXES - Net Earnings Before Income Taxes by Geographical Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net earnings before income taxes by geographical area
United States	$ 1,073,879	$ 1,203,880	$ 1,299,523
Foreign	(54,821)	46,825	34,863
Earnings before income taxes	$ 1,019,058	$ 1,250,705	$ 1,334,386

INCOME TAXES - Income Tax Effec

INCOME TAXES - Income Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Inventory	$ 30,030	$ 32,390
Accrued expenses	70,021	56,127
Accrued employment-related benefits	124,556	116,423
Foreign operating loss carryforwards	67,350	70,881
Other	22,256	12,962
Deferred tax assets	314,213	288,783
Less valuation allowance	(72,705)	(62,333)	$ (56,876)
Deferred tax assets, net of valuation allowance	241,508	226,450
Deferred tax liabilities:
Property, buildings and equipment	(75,690)	(42,249)
Intangibles	(127,292)	(134,784)
Software	(25,431)	(20,744)
Prepaids	(11,959)	(17,901)
Other	(1,067)	(17,277)
Deferred tax liabilities	(241,439)	(232,955)
Net deferred tax asset	69
Net deferred tax liability		(6,505)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets	64,775	83,996
Noncurrent liabilities (foreign)	$ (64,706)	$ (90,501)

INCOME TAXES - Changes in Valua

INCOME TAXES - Changes in Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Asset, Valuation Allowance [Roll Forward]
Balance at beginning of period	$ 62,333	$ 56,876
Balance at end of period	72,705	62,333
Valuation allowance increases primarily related to foreign NOLs [Member]
Deferred Tax Asset, Valuation Allowance [Roll Forward]
Valuation allowance, increase (decrease)	12,174	7,045
Valuation allowance releases related to foreign NOLs [Member]
Deferred Tax Asset, Valuation Allowance [Roll Forward]
Valuation allowance, increase (decrease)	3,870	437
Other valuation allowance changes, net [Member]
Deferred Tax Asset, Valuation Allowance [Roll Forward]
Valuation allowance, increase (decrease)	$ 2,068	$ (1,151)

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Tax Expense with Federal Income Taxes at the Statutory Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Federal statutory income tax rate	35.00%	35.00%	35.00%
Reconciliation of income tax expense with federal income taxes at the statutory rate
Federal income tax at the 35% statutory rate	$ 356,670	$ 437,746	$ 467,035
State income taxes, net of federal income tax benefit	25,993	29,507	31,263
Foreign rate difference	21,077	12,041	20,318
Other - net	11,150	(405)	3,474
Income tax expense	$ 386,220	$ 465,531	$ 522,090
Effective tax rate	37.90%	37.20%	39.10%
Clean energy credit [Member]
Reconciliation of income tax expense with federal income taxes at the statutory rate
Clean energy credit	$ (28,670)	$ (13,358)	$ 0

INCOME TAXES - Changes in Liabi

INCOME TAXES - Changes in Liability for Tax Uncertainties, Excluding Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Changes in liability for tax uncertainties, excluding interest
Balance at beginning of year	$ 60,576	$ 45,126	$ 40,317
Additions for tax positions related to the current year	14,119	14,916	11,545
Additions for tax positions of prior years	13,215	2,653	5,318
Reductions for tax positions of prior years	(14,774)	(1,616)	(4,109)
Reductions due to statute lapse	(1,527)	(402)	(1,271)
Settlements, audit payments, refunds - net	(12,928)	(101)	(6,674)
Balance at end of year	$ 58,681	$ 60,576	$ 45,126

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net earnings attributable to W.W. Grainger, Inc. as reported	$ 60,666	$ 185,873	$ 172,676	$ 186,713	$ 145,232	$ 192,201	$ 220,548	$ 211,015	$ 605,928	$ 768,996	$ 801,729
Distributed earnings available to participating securities, basic									(2,383)	(2,823)	(3,154)
Undistributed earnings available to participating securities, basic									(3,044)	(4,735)	(6,370)
Numerator for basic earnings per share - Undistributed and distributed earnings available to common shareholders									600,501	761,438	792,205
Undistributed earnings allocated to participating securities, diluted									3,044	4,735	6,370
Undistributed earnings reallocated to participating securities, diluted									(3,023)	(4,692)	(6,290)
Numerator for diluted earnings per share - Undistributed and distributed earnings available to common shareholders									$ 600,522	$ 761,481	$ 792,285
Denominator for basic earnings per share – weighted average shares (in shares)									60,430,892	65,156,864	68,334,322
Effect of dilutive securities (in shares)									409,038	608,257	871,422
Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities (in shares)									60,839,930	65,765,121	69,205,744
Basic (in dollars per share)	$ 1.02	$ 3.07	$ 2.81	$ 3	$ 2.32	$ 2.94	$ 3.28	$ 3.11	$ 9.94	$ 11.69	$ 11.59
Diluted (in dollars per share)	$ 1.01	$ 3.05	$ 2.79	$ 2.98	$ 2.30	$ 2.92	$ 3.25	$ 3.07	$ 9.87	$ 11.58	$ 11.45

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment									2
Service fee revenue									1.00%
Summarized Information:
Net sales	$ 2,470,710	$ 2,596,288	$ 2,563,668	$ 2,506,538	$ 2,478,258	$ 2,532,900	$ 2,522,565	$ 2,439,661	$ 10,137,204	$ 9,973,384	$ 9,964,953
Operating earnings	174,229	$ 322,587	$ 305,589	$ 317,092	251,627	$ 340,729	$ 356,717	$ 351,247	1,119,497	1,300,320	1,347,117
Total assets	5,694,307				5,857,755				5,694,307	5,857,755	5,283,049
Depreciation and amortization									222,645	206,841	190,171
Additions to long-lived assets									271,661	360,827	403,804
Long-lived assets	1,556,353				1,599,793				1,556,353	1,599,793	1,472,724
Geographical Information | United States [Member]
Summarized Information:
Net sales									7,834,361	7,866,300	7,780,382
Long-lived assets	1,134,817				1,231,083				1,134,817	1,231,083	1,109,175
Geographical Information | Canada [Member]
Summarized Information:
Net sales									739,687	897,431	1,074,660
Long-lived assets	210,931				215,202				210,931	215,202	253,466
Geographical Information | Other Foreign Countries [Member]
Summarized Information:
Net sales									1,563,156	1,209,653	1,109,911
Long-lived assets	210,605				153,508				210,605	153,508	110,083
Segment Balances before intersegment eliminations and consolidations [Member]
Summarized Information:
Net sales									10,488,897	10,259,696	10,184,015
Operating earnings									1,250,173	1,447,045	1,494,065
Total assets	3,055,111				3,015,665				3,055,111	3,015,665	2,921,850
Depreciation and amortization									201,176	187,987	171,830
Additions to long-lived assets									261,119	343,915	381,306
Intersegment eliminations [Member]
Summarized Information:
Net sales									(351,693)	(286,312)	(219,062)
Segment other current and noncurrent assets [Member]
Summarized Information:
Total assets	2,464,656				2,624,966				2,464,656	2,624,966	2,113,900
Unallocated in consolidation [Member]
Summarized Information:
Operating earnings									(130,676)	(146,725)	(146,948)
Total assets	174,540				217,124				174,540	217,124	247,299
Depreciation and amortization									21,469	18,854	18,341
Additions to long-lived assets									10,542	16,912	22,498
United States [Member]
Summarized Information:
Net sales									7,522,637	7,681,111	7,714,676
United States [Member] | Segment Balances before intersegment eliminations and consolidations [Member]
Summarized Information:
Net sales									7,870,105	7,963,416	7,926,075
Operating earnings									1,274,851	1,371,626	1,444,288
Total assets	2,275,009				2,191,045				2,275,009	2,191,045	2,181,521
Depreciation and amortization									159,334	150,654	136,081
Additions to long-lived assets									153,556	302,316	243,251
United States [Member] | Intersegment eliminations [Member]
Summarized Information:
Net sales									(347,468)	(282,305)	(211,399)
Canada [Member]
Summarized Information:
Net sales									733,719	890,425	1,075,450
Canada [Member] | Segment Balances before intersegment eliminations and consolidations [Member]
Summarized Information:
Net sales									733,829	890,530	1,075,754
Operating earnings									(65,362)	27,368	87,583
Total assets	286,035				317,504				286,035	317,504	394,342
Depreciation and amortization									18,050	17,334	15,305
Additions to long-lived assets									12,275	20,464	106,918
Canada [Member] | Intersegment eliminations [Member]
Summarized Information:
Net sales									(110)	(105)	(304)
Other Businesses [Member]
Summarized Information:
Net sales									1,880,848	1,401,848	1,174,827
Other Businesses [Member] | Segment Balances before intersegment eliminations and consolidations [Member]
Summarized Information:
Net sales									1,884,963	1,405,750	1,182,186
Operating earnings									40,684	48,051	(37,806)
Total assets	$ 494,067				$ 507,116				494,067	507,116	345,987
Depreciation and amortization									23,792	19,999	20,444
Additions to long-lived assets									95,288	21,135	31,137
Other Businesses [Member] | Intersegment eliminations [Member]
Summarized Information:
Net sales									$ (4,115)	$ (3,902)	$ (7,359)

CONTINGENCIES AND LEGAL MATTE74

CONTINGENCIES AND LEGAL MATTERS (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)claim
CONTINGENCIES AND LEGAL MATTERS [Abstract]
Number of new plaintiffs in asbestos and or silica cases filed against the company | claim	70
Number of plaintiffs in asbestos and or silica lawsuits whose allegations against the company were dismissed | claim	80
Number of plaintiffs in asbestos and or silica cases filed against the company | claim	480
Unrecorded obligation, unclaimed property, gross liability | $	$ 36
Unrecorded obligation, unclaimed property, net liability | $	23
Unrecorded obligation, unclaimed property, expense | $	$ 36

SELECTED QUARTERLY FINANCIAL 75

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]
Net sales	$ 2,470,710	$ 2,596,288	$ 2,563,668	$ 2,506,538	$ 2,478,258	$ 2,532,900	$ 2,522,565	$ 2,439,661	$ 10,137,204	$ 9,973,384	$ 9,964,953
Cost of merchandise sold	1,481,017	1,556,536	1,523,609	1,461,485	1,475,884	1,471,021	1,449,133	1,345,918	6,022,647	5,741,956	5,650,711
Gross profit	989,693	1,039,752	1,040,059	1,045,053	1,002,374	1,061,879	1,073,432	1,093,743	4,114,557	4,231,428	4,314,242
Warehousing, marketing and administrative expenses	815,464	717,165	734,470	727,961	750,747	721,150	716,715	742,496	2,995,060	2,931,108	2,967,125
Operating earnings	174,229	322,587	305,589	317,092	251,627	340,729	356,717	351,247	1,119,497	1,300,320	1,347,117
Net earnings attributable to W.W. Grainger, Inc.	$ 60,666	$ 185,873	$ 172,676	$ 186,713	$ 145,232	$ 192,201	$ 220,548	$ 211,015	$ 605,928	$ 768,996	$ 801,729
Earnings per share - basic (in dollars per share)	$ 1.02	$ 3.07	$ 2.81	$ 3	$ 2.32	$ 2.94	$ 3.28	$ 3.11	$ 9.94	$ 11.69	$ 11.59
Earnings per share - diluted (in dollars per share)	$ 1.01	$ 3.05	$ 2.79	$ 2.98	$ 2.30	$ 2.92	$ 3.25	$ 3.07	$ 9.87	$ 11.58	$ 11.45