W.W. Grainger (GWW) 10-Q 26 Oct 17 2017 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION	9 Months Ended
	Sep. 30, 2017shares
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-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	56,983,188

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 2,635,999	$ 2,596,288	$ 7,792,397	$ 7,666,494
Cost of merchandise sold	1,618,819	1,556,536	4,716,069	4,541,629
Gross profit	1,017,180	1,039,752	3,076,328	3,124,865
Warehousing, marketing and administrative expenses	736,010	717,165	2,267,605	2,179,596
Operating earnings	281,170	322,587	808,723	945,269
Other income (expense):
Interest income	707	147	1,365	474
Interest expense	(21,765)	(18,024)	(58,649)	(48,556)
Loss from equity method investment	(10,635)	(10,333)	(25,130)	(22,147)
Other non-operating income and (expense)	521	(1,192)	1,558	(1,291)
Total other expense	(31,172)	(29,402)	(80,856)	(71,520)
Earnings before income taxes	249,998	293,185	727,867	873,749
Income taxes	79,182	99,776	267,239	309,251
Net earnings	170,816	193,409	460,628	564,498
Less: Net earnings attributable to noncontrolling interest	8,810	7,536	25,957	19,236
Net earnings attributable to W.W. Grainger, Inc.	$ 162,006	$ 185,873	$ 434,671	$ 545,262
Earnings per share:
Basic (in dollars per share)	$ 2.80	$ 3.07	$ 7.43	$ 8.88
Diluted (in dollars per share)	$ 2.79	$ 3.05	$ 7.39	$ 8.82
Weighted average number of shares outstanding:
Basic (in shares)	57,316,532	60,016,550	58,010,222	60,854,548
Diluted (in shares)	57,521,348	60,416,151	58,329,925	61,268,119
Cash dividends paid per share (in dollars per share)	$ 1.28	$ 1.22	$ 3.78	$ 3.61

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net earnings	$ 170,816	$ 193,409	$ 460,628	$ 564,498
Other comprehensive earnings:
Foreign currency translation adjustments, net of reclassification (see Note 5)	24,563	(12,866)	100,409	31,709
Postretirement benefit plan re-measurement, net of tax expense $29,172 (see Note 7)	46,543	0	46,543	0
Postretirement benefit plan reclassification, net of tax benefit of $962, $631, and $2,720, $1,893, respectively	(1,540)	(1,008)	(4,338)	(3,026)
Other	1	188	(11)	844
Comprehensive earnings, net of tax	240,383	179,723	603,231	594,025
Less: Comprehensive earnings attributable to noncontrolling interest
Net earnings	8,810	7,536	25,957	19,236
Foreign currency translation adjustments	(8)	2,188	4,338	16,621
Comprehensive earnings attributable to W.W. Grainger, Inc.	$ 231,581	$ 169,999	$ 572,936	$ 558,168

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (PARENTHETICALS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Postretirement benefit plan re-measurement, tax	$ 29,172		$ 29,172
Tax benefit from postretirement benefit plan reclassification adjustment	$ 962	$ 631	$ 2,720	$ 1,893

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 284,575	$ 274,146
Accounts receivable (less allowances for doubtful accounts of $31,583 and $26,690 respectively)	1,373,323	1,223,096
Inventories – net	1,391,993	1,406,470
Prepaid expenses and other assets	84,481	81,766
Prepaid income taxes	40,688	34,751
Total current assets	3,175,060	3,020,229
PROPERTY, BUILDINGS AND EQUIPMENT	3,441,802	3,411,502
Less: Accumulated depreciation and amortization	2,045,896	1,990,611
Property, buildings and equipment – net	1,395,906	1,420,891
DEFERRED INCOME TAXES	56,054	64,775
GOODWILL	543,248	527,150
INTANGIBLES - NET	582,274	586,126
OTHER ASSETS	72,518	75,136
TOTAL ASSETS	5,825,060	5,694,307
CURRENT LIABILITIES
Short-term debt	11,348	386,140
Current maturities of long-term debt	41,836	19,966
Trade accounts payable	713,453	650,092
Accrued compensation and benefits	192,513	212,525
Accrued contributions to employees’ profit sharing plans	65,988	54,948
Accrued expenses	333,311	290,207
Income taxes payable	34,074	15,059
Total current liabilities	1,392,523	1,628,937
LONG-TERM DEBT (less current maturities)	2,270,001	1,840,946
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES	135,149	126,101
EMPLOYMENT-RELATED AND OTHER NON-CURRENT LIABILITIES	126,302	192,555
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; 109,659,219 shares issued	54,830	54,830
Additional contributed capital	1,040,384	1,030,256
Retained earnings	7,327,140	7,113,559
Accumulated other comprehensive losses	(134,029)	(272,294)
Treasury stock, at cost – 52,676,031 and 50,854,905 shares, respectively	(6,520,828)	(6,128,416)
Total W.W. Grainger, Inc. shareholders’ equity	1,767,497	1,797,935
Noncontrolling interest	133,588	107,833
Total shareholders' equity	1,901,085	1,905,768
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 5,825,060	$ 5,694,307

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 31,583	$ 26,690
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)	52,676,031	50,854,905

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 460,628	$ 564,498
Provision for losses on accounts receivable	15,187	14,753
Deferred income taxes and tax uncertainties	(15,261)	24,259
Depreciation and amortization	194,338	177,395
Net losses (gains) from sales of assets and divestitures	11,296	(16,928)
Stock-based compensation	27,152	27,545
Losses from equity method investment	25,130	22,147
Change in operating assets and liabilities – net of business acquisitions and divestitures:
Accounts receivable	(145,631)	(123,922)
Inventories	34,851	41,938
Prepaid expenses and other assets	(4,206)	3,478
Trade accounts payable	56,717	36,594
Other current liabilities	29,643	(68,370)
Current income taxes payable	18,015	(9,714)
Accrued employment-related benefits cost	4,306	5,591
Other – net	8,713	(10,340)
Net cash provided by operating activities	720,878	688,924
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, buildings and equipment	(191,183)	(213,622)
Proceeds from sales of assets and divestitures	110,421	48,089
Equity method investment	(22,430)	(19,299)
Other – net	3,554	(564)
Net cash used in investing activities	(99,638)	(185,396)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in commercial paper	(369,748)	39,887
Borrowings under lines of credit	33,931	26,681
Payments against lines of credit	(39,705)	(32,515)
Proceeds from issuance of long-term debt	424,020	516,058
Payments of long-term debt	(15,812)	(257,109)
Proceeds from stock options exercised	27,255	29,553
Payments for employee taxes withheld from stock awards	(17,546)	(18,541)
Excess tax benefits from stock-based compensation	0	11,873
Purchase of treasury stock	(435,983)	(613,198)
Cash dividends paid	(225,504)	(221,131)
Net cash used in financing activities	(619,092)	(518,442)
Exchange rate effect on cash and cash equivalents	8,281	10,759
NET CHANGE IN CASH AND CASH EQUIVALENTS	10,429	(4,155)
Cash and cash equivalents at beginning of year	274,146	290,136
Cash and cash equivalents at end of period	$ 284,575	$ 285,981

BACKGROUND AND BASIS OF PRESENT

BACKGROUND AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BACKGROUND AND BASIS OF PRESENTATION	BACKGROUND AND BASIS OF PRESENTATION W.W. Grainger, Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) supplies, and other related products and services. W.W. Grainger, Inc.’s operations are primarily in the United States (U.S.) and Canada, with a presence in Europe, Asia and Latin America. In this report, the words “Company” or “Grainger” mean W.W. Grainger, Inc. and its subsidiaries. The Condensed Consolidated Financial Statements of the Company and the related notes are unaudited and should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). The Condensed Consolidated Balance Sheet as of December 31, 2016 has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by U. S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. The unaudited financial information reflects all adjustments (primarily consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of the statements contained herein. Certain amounts in the Condensed Consolidated Statements of Cash Flows, as previously reported, have been reclassified to conform to the 2017 presentation. In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, Stock Based Compensation: Improvements to Employee Share-Based Payment Accounting, which became effective January 1, 2017 . As a result, the Company reclassified $19 million of employee taxes paid from cash flows from operating activities to cash flows from financing activities in the Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 .

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
NEW ACCOUNTING STANDARDS	NEW ACCOUNTING STANDARDS 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 the fair value options and the presentation and disclosure requirements for financial instruments. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2017. Certain provisions for the new guidance may 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 of this ASU is for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. 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 this ASU is for fiscal years and interim periods beginning after December 15, 2017. 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 and interim periods beginning after December 15, 2017. This ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the Step 2 procedure from the goodwill impairment test. Under the updates in ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments of this ASU are effective for annual or any interim goodwill impairment tests beginning after December 15, 2019, and early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company early adopted this ASU during the third quarter of 2017 and there was no impact to the financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments in this ASU are effective for public entities for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted. The amendments in this ASU should be applied retrospectively for the presentation of the net periodic postretirement cost components in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company is evaluating the impact of this ASU. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in this ASU are effective for public entities for fiscal years and interim periods beginning after December 15, 2017 and early adoption is permitted. The ASU should be applied prospectively on and after the effective date. The Company is evaluating the impact of this ASU. REVENUE RECOGNITION STANDARDS In July 2015, the FASB announced a one-year delay in the effective date of ASU 2014-09, Revenue from Contracts with Customers. This ASU will be effective for interim and fiscal years 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. 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 reduces the potential for diversity in practice arising from inconsistent application of 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 clarifies 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. In February 2017, the FASB issued ASU 2017-05, Other Income - Gain and Losses from the Derecognition of Nonfinancial Assets . This ASU clarifies the scope of Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets , and adds guidance for partial sales of nonfinancial assets. Subtopic 610-20, which was issued in May 2014 as a part of ASU 2014-09, provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The effective dates of ASU 2016-08, ASU 2016-10, ASU 2016-20 and ASU 2017-05 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 assessed its impact on financial statement disclosures, information systems, business processes and internal controls. The standard is not expected to have a material impact on the Company's Consolidated Financial Statements.

DIVIDEND

DIVIDEND	9 Months Ended
	Sep. 30, 2017
Dividends [Abstract]
DIVIDEND	DIVIDEND On October 25, 2017 , the Company’s Board of Directors declared a quarterly dividend of $1.28 per share, payable December 1, 2017 , to shareholders of record on November 13, 2017 .

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Grainger had approximately $1.1 billion of goodwill and intangible assets as of September 30, 2017 and December 31, 2016, or 19% and 20% of total assets, respectively. Grainger tests reporting units’ goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Accordingly, Grainger periodically performs qualitative assessments of significant events and circumstances such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors to determine the existence of impairment indicators and assess if it is more likely than not that the fair value of the reporting unit or indefinite-lived intangible assets is less than its carrying value and if a quantitative impairment test is necessary. In the quantitative test, Grainger compares the carrying value of the reporting unit or an indefinite-lived intangible asset with its fair value. Any excess of the carrying value over fair value is recorded as an impairment charge. The fair value of reporting units is calculated primarily using the discounted cash flow (DCF) method and utilizing 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’s indefinite-lived intangibles are primarily trade names. The fair value of trade names is calculated primarily using the relief from royalty method, which estimates the expected royalty savings attributable to the ownership of the trade name asset. The key assumptions when valuing a trade name are the revenue base, the royalty rate and the discount rate. During the quarter ended September 30, 2017, the Company performed qualitative assessments of its reporting units’ goodwill and intangible assets. The operating performance of two of its reporting units has been below expectations and resulted in lowered short-term forecasts. Accordingly, the Company concluded that further evaluation was required. Based on the results of the quantitative tests, the Company concluded that there was no impairment of goodwill or indefinitely-lived intangible assets as of September 30, 2017. The fair values of the reporting units exceeded their carrying values by approximately 31 percent for the Canada reporting unit and 15 percent for the reporting unit included in Other Businesses. Changes in assumptions regarding future performance as well as the ability to execute on growth initiatives and productivity improvements may have a significant impact on future cash flows. Likewise, unfavorable economic environment and changes in market conditions or other factors may result in future impairments of the goodwill and intangible assets. Additionally, the Company performed an impairment test on the intangible assets subject to amortization for the two reporting units. The first step of the impairment test is to compare the undiscounted cash flows of the reporting units to their carrying values. If the results of the test determine that the undiscounted cash flows of the reporting units are less than their carrying values, then an impairment risk exists and further testing is required. An impairment charge was not required as of September 30, 2017 using this test. 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 December 31, 2016 $ 202,020 $ 122,140 $ 202,990 $ 527,150 Divestiture (3,316 ) — — (3,316 ) Impairment (7,169 ) — — (7,169 ) Translation — 9,433 17,150 26,583 Balance at September 30, 2017 $ 191,535 $ 131,573 $ 220,140 $ 543,248 Cumulative goodwill impairment charges, December 31, 2016 $ 17,038 $ 32,265 $ 70,299 $ 119,602 Impairment charges 7,169 — — 7,169 Cumulative goodwill impairment charges, September 30, 2017 $ 24,207 $ 32,265 $ 70,299 $ 126,771 The balances and changes in Intangible assets - net are as follows (in thousands of dollars): September 30, 2017 December 31, 2016 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 13.8 years $ 428,041 $ 190,395 $ 237,646 $ 424,405 $ 175,112 $ 249,293 Trade names and other 13.5 years 25,960 15,611 $ 10,349 25,353 14,262 11,091 Non-amortized trade names and other — 136,333 — $ 136,333 128,282 — 128,282 Capitalized software 4.1 years 626,652 428,706 $ 197,946 571,978 374,518 197,460 Total 8.2 years $ 1,216,986 $ 634,712 $ 582,274 $ 1,150,018 $ 563,892 $ 586,126 For the nine months ended September 30, 2017 and the twelve months ended December 31, 2016, amortization expense recognized on intangible assets was $67 million and $82 million , respectively, and is included in Warehousing, marketing and administrative expenses on the Consolidated statement of earnings.

RESTRUCTURING RESERVES

RESTRUCTURING RESERVES	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
RESTRUCTURING RESERVES	RESTRUCTURING RESERVES The Company continues to evaluate performance and take restructuring actions such as the consolidation of the contact center network in the U.S., branch closures in the U.S. and Canada, the disposition of under performing assets in the U.S. and Canada and the wind-down of operations in Colombia which is part of the Other businesses. The purpose of these initiatives is to reduce costs in the U.S. and to streamline and focus on profitability in Canada and Other Businesses. The restructuring costs, net of gains, for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands of dollars): Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Cost of merchandise sold Warehousing, marketing and administrative expenses Total Cost of merchandise sold Warehousing, marketing and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) United States $ (100 ) $ 10,917 $ (2,873 ) $ 7,944 $ — $ 3,511 $ 1,926 $ 5,437 Canada — 1,882 3,055 4,937 548 3,119 700 4,367 Other Businesses 581 73 (864 ) (210 ) — — — — Total $ 481 $ 12,872 $ (682 ) $ 12,671 $ 548 $ 6,630 $ 2,626 $ 9,804 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Cost of merchandise sold Warehousing, marketing and administrative expenses Total Cost of merchandise sold Warehousing, marketing and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) United States $ (100 ) $ 19,459 $ (17,634 ) $ 1,725 $ 3,100 $ 18,342 $ (8,949 ) $ 12,493 Canada 2,574 9,842 14,093 26,509 11,452 13,194 700 25,346 Other Businesses 581 3,595 37,124 41,300 — — — — Unallocated — — — — — 8,947 8,947 Total $ 3,055 $ 32,896 $ 33,583 $ 69,534 $ 14,552 $ 31,536 $ 698 $ 46,786 Other charges (gains) primarily includes gains from the sales of branches partially offset by asset write-downs in the U. S., assets write-downs in Canada and $16 million of accumulated foreign currency translations losses from the wind-down of Colombia reclassified from Accumulated other comprehensive losses to earnings in Other Businesses. The following summarizes the restructuring reserve activity (in thousands of dollars): Current assets write-downs Fixed assets write - downs and disposals Involuntary employee termination costs Lease termination costs Other costs Total Reserves as of December 30, 2016 $ 167 $ — $ 24,541 $ 3,125 $ 511 $ 28,344 Restructuring costs, net of (gains) 9,775 (5,987 ) 32,896 2,512 30,338 69,534 Cash (paid) received (865 ) 18,793 (24,370 ) (2,575 ) (5,620 ) (14,637 ) Translation (82 ) 3 843 (11 ) (196 ) 557 Other — (12,809 ) — — (17,230 ) (30,039 ) Reserves as of September 30, 2017 $ 8,995 $ — $ 33,910 $ 3,051 $ 7,803 $ 53,759 The amounts incurred net of gains in connection with the restructuring activities are as follows (in thousands of dollars): Cumulative amount incurred to date Additional amount expected United States $ 61,814 $ — Canada 26,509 11,270 Other Businesses 41,300 — Total $ 129,623 $ 11,270

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
SHORT-TERM AND LONG-TERM DEBT	SHORT-TERM AND LONG-TERM DEBT The following summarizes information concerning short-term debt (in thousands of dollars): September 30, 2017 December 31, 2016 Outstanding lines of credit $ 11,348 $ 16,392 Outstanding commercial paper — 369,748 $ 11,348 $ 386,140 As of September 30, 2017 and December 31, 2016, there was $0 million and $370 million , respectively, of commercial paper outstanding. A portion of the proceeds from the May 2017 bond issuance (see below) was used to redeem outstanding commercial paper. Long-term debt consisted of the following (in thousands of dollars): September 30, 2017 December 31, 2016 4.60% senior notes due 2045 $ 1,000,000 $ 1,000,000 3.75% senior notes due 2046 400,000 400,000 4.20% senior notes due 2047 400,000 — British pound term loan and revolving credit facility 192,903 187,506 Euro term loan and revolving credit facility 141,743 120,900 Canadian dollar revolving credit facility 116,307 100,521 Other 84,860 71,109 2,335,813 1,880,036 Less current maturities (41,836 ) (19,966 ) Debt issuance costs and discounts (23,976 ) (19,124 ) $ 2,270,001 $ 1,840,946 On May 22, 2017 , the Company issued $400 million of unsecured 4.20% Senior Notes ( 4.20% Notes) that mature on May 15, 2047. The 4.20% 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, 2017. Prior to November 15, 2046, the Company may redeem the 4.20% Notes in whole at any time or gradually 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 4.20% Notes plus 20 basis points , together with accrued and unpaid interest, if any, at 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 4.20% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. Costs and discounts of approximately $5.8 million associated with the issuance of the 4.20% 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 4.20% Notes. The estimated fair values of the Company’s 4.20% Notes, 3.75% Senior Notes due 2046 ( 3.75% Notes) and 4.60% Senior Notes due 2045 ( 4.60% Notes) were 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 fair value of the 4.20% Notes was approximately $407 million as of September 30, 2017. The fair value of the 3.75% Notes was approximately $380 million and $371 million as of September 30, 2017 and December 31, 2016, respectively. The fair value of the 4.60% Notes was approximately $1.1 billion as of September 30, 2017 and December 31, 2016, respectively. The carrying value of other long-term debt approximates fair value due to their variable interest rates. On October 6, 2017 , the Company replaced its $900 million unsecured revolving line of credit with a new five-year $750 million unsecured revolving line of credit, with the option to extend the line to up to $1.125 billion subject to customary conditions, to be used for general corporate purposes. The terms of the new line of credit are customary for transactions of this type (including the Company's guarantee of subsidiary borrower obligation) and do not contain any financial performance covenants. The primary purpose of this credit facility is to provide support to the Company's commercial paper program. There were no borrowings outstanding under the previous line of credit, which was scheduled to mature on August 22, 2018. The preceding summary of the credit facility does not purport to be complete and is qualified in its entirety by the reference to the full text of the credit facility, a copy of which has been filed as Exhibit 10.1 to the Company's Form 8-K, previously filed on October 10, 2017.

EMPLOYEE BENEFITS - POSTRETIREM

EMPLOYEE BENEFITS - POSTRETIREMENT	9 Months Ended
	Sep. 30, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
EMPLOYEE BENEFITS - POSTRETIREMENT	EMPLOYEE BENEFITS - POSTRETIREMENT The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its U.S. employees (and their dependents) hired prior to January 1, 2013, 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. During the third quarter of 2017, the Company implemented plan design changes effective January 1, 2018 for the post-65 age group. This plan change will move all post-65 Medicare eligible retirees to healthcare exchanges and provide them a subsidy to purchase insurance. The amount of the subsidy will be based on years of service. The plan obligation was re-measured as a result of this plan design change. At re-measurement, the Company decreased the discount rate from 4.00% at December 31, 2016 to 3.55% and updated various actuarial assumptions and the fair value of plan assets. The plan re-measurement as of August 31, 2017 resulted in a decrease in the postretirement benefit obligation of $75.7 million and a corresponding unrecognized gain recorded in Other comprehensive earnings net of tax of $29.2 million . The Company has elected to amortize the amount of net unrecognized gains over a period equal to the average remaining service period for active plan participants expected to retire and receive benefits. The postretirement benefit obligation was $29.0 million and $101.5 million at September 30, 2017 and December 31, 2016, respectively. Net accumulated gains recognized in Accumulated other comprehensive losses were $67.5 million and $25.3 million at September 30, 2017 and December 31, 2016, respectively. The net periodic (benefits) costs recorded in Warehousing, marketing and administrative expenses consisted of the following components (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Service cost $ 1,856 $ 2,059 $ 5,649 $ 6,178 Interest cost 2,026 2,464 6,323 7,391 Expected return on assets (2,957 ) (2,528 ) (8,670 ) (7,584 ) Amortization of unrecognized (gains) losses (609 ) 32 (1,919 ) 96 Amortization of prior service credits (1,893 ) (1,672 ) (5,139 ) (5,016 ) Net periodic (benefits) costs $ (1,577 ) $ 355 $ (3,756 ) $ 1,065 The Company has established a Group Benefit Trust (Trust) to fund postretirement healthcare benefits plan obligations and process benefit payments. The funding of the Trust is an estimated amount which is intended to allow the maximum deductible contribution under the Internal Revenue Code of 1986 (IRC), as amended. There are no minimum funding requirements and the Company intends to follow its practice of funding the maximum deductible contribution under the IRC. The Company did not make a contribution to the Trust during the nine months ended September 30, 2017.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company has two reportable segments: the U.S. and Canada. The U.S. operating segment reflects the results of the Company's U.S. businesses. The Canada operating segment reflects the results for Acklands – Grainger Inc. and its subsidiaries. Other businesses include Zoro in the U.S, MonotaRO in Japan and operations in Europe, Asia and Latin America. Other businesses do not meet the definition of a reportable segment. Operating segments generate revenue almost exclusively through the distribution of MRO supplies, as service revenues account for less than 1% of total revenues for each operating segment. Following is a summary of segment results (in thousands of dollars): Three Months Ended September 30, 2017 United States Canada Other Businesses Total Total net sales $ 2,015,968 $ 188,216 $ 536,927 $ 2,741,111 Intersegment net sales (103,667 ) (13 ) (1,432 ) (105,112 ) Net sales to external customers $ 1,912,301 $ 188,203 $ 535,495 $ 2,635,999 Segment operating earnings (losses) $ 297,855 $ (14,972 ) $ 26,892 $ 309,775 Three Months Ended September 30, 2016 United States Canada Other Businesses Total Total net sales $ 2,028,235 $ 179,281 $ 481,929 $ 2,689,445 Intersegment net sales (92,160 ) (23 ) (974 ) (93,157 ) Net sales to external customers $ 1,936,075 $ 179,258 $ 480,955 $ 2,596,288 Segment operating earnings (losses) $ 342,524 $ (15,118 ) $ 24,835 $ 352,241 Nine Months Ended September 30, 2017 United States Canada Other Businesses Total Total net sales $ 5,968,565 $ 563,470 $ 1,560,894 $ 8,092,929 Intersegment net sales (297,247 ) (15 ) (3,270 ) (300,532 ) Net sales to external customers $ 5,671,318 $ 563,455 $ 1,557,624 $ 7,792,397 Segment operating earnings (losses) $ 922,614 $ (59,428 ) $ 44,177 $ 907,363 Nine Months Ended September 30, 2016 United States Canada Other Businesses Total Total net sales $ 5,973,044 $ 552,470 $ 1,401,429 $ 7,926,943 Intersegment net sales (257,101 ) (109 ) (3,239 ) (260,449 ) Net sales to external customers $ 5,715,943 $ 552,361 $ 1,398,190 $ 7,666,494 Segment operating earnings (losses) $ 1,023,318 $ (55,207 ) $ 76,343 $ 1,044,454 United States Canada Other Businesses Total Segment assets: September 30, 2017 $ 2,316,683 $ 298,553 $ 589,564 $ 3,204,800 December 31, 2016 $ 2,275,009 $ 286,035 $ 494,067 $ 3,055,111 Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating earnings: Total operating earnings for operating segments $ 309,775 $ 352,241 $ 907,363 $ 1,044,454 Unallocated expenses and eliminations (28,605 ) (29,654 ) (98,640 ) (99,185 ) Total consolidated operating earnings $ 281,170 $ 322,587 $ 808,723 $ 945,269 September 30, 2017 December 31, 2016 Assets: Total assets for operating segments $ 3,204,800 $ 3,055,111 Other current and non-current assets 2,455,538 2,464,656 Unallocated assets 164,722 174,540 Total consolidated assets $ 5,825,060 $ 5,694,307 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. Other current and non-current assets include all other assets of the reportable segments. Unallocated expenses and unallocated assets primarily relate to the Company headquarter's support services, which are not part of any business segment, as well as intercompany eliminations. Unallocated expenses include payroll and benefits, depreciation and other costs associated with headquarters-related support services. Unallocated assets include non-operating cash and cash equivalents, certain prepaid expenses and property, buildings and equipment-net. Intersegment net sales for the U.S. segment increased by $12 million and $40 million for the three and nine months ended September 30, 2017, respectively, compared to the prior year, driven by increased sales from the U.S. business to Zoro. Zoro's primary source of inventory is the U.S. business' supply chain network.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in thousands of dollars, except for share and per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net earnings attributable to W.W. Grainger, Inc. as reported $ 162,006 $ 185,873 $ 434,671 $ 545,262 Distributed earnings available to participating securities (603 ) (547 ) (1,576 ) (1,749 ) Undistributed earnings available to participating securities (806 ) (1,085 ) (1,966 ) (3,179 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 160,597 184,241 431,129 540,334 Undistributed earnings allocated to participating securities 806 1,085 1,966 3,179 Undistributed earnings reallocated to participating securities (803 ) (1,078 ) (1,956 ) (3,157 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 160,600 $ 184,248 $ 431,139 $ 540,356 Denominator for basic earnings per share – weighted average shares 57,316,532 60,016,550 58,010,222 60,854,548 Effect of dilutive securities 204,816 399,601 319,703 413,571 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 57,521,348 60,416,151 58,329,925 61,268,119 Earnings per share two-class method Basic $ 2.80 $ 3.07 $ 7.43 $ 8.88 Diluted $ 2.79 $ 3.05 $ 7.39 $ 8.82

CONTINGENCIES AND LEGAL MATTERS

CONTINGENCIES AND LEGAL MATTERS	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES AND LEGAL MATTERS	CONTINGENCIES AND LEGAL MATTERS From time to time the Company is involved in various legal and administrative proceedings that are incidental to its business, including claims related to product liability, general negligence, contract disputes, environmental issues, wage and hour laws, intellectual property, employment practices, regulatory compliance or other matters and actions brought by employees, consumers, competitors, suppliers or governmental entities. As a government contractor selling to federal, state and local governmental entities, the Company is also subject to governmental or regulatory inquiries or audits or other proceedings, including those related to pricing compliance. It is not expected that the ultimate resolution of any of these matters will have, either individually or in the aggregate, a material adverse effect on the Company's consolidated financial position or results of operations.

NEW ACCOUNTING STANDARDS (Polic

NEW ACCOUNTING STANDARDS (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
New Accounting Standards, Policy	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 the fair value options and the presentation and disclosure requirements for financial instruments. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2017. Certain provisions for the new guidance may 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 of this ASU is for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. 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 this ASU is for fiscal years and interim periods beginning after December 15, 2017. 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 and interim periods beginning after December 15, 2017. This ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the Step 2 procedure from the goodwill impairment test. Under the updates in ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments of this ASU are effective for annual or any interim goodwill impairment tests beginning after December 15, 2019, and early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company early adopted this ASU during the third quarter of 2017 and there was no impact to the financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments in this ASU are effective for public entities for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted. The amendments in this ASU should be applied retrospectively for the presentation of the net periodic postretirement cost components in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company is evaluating the impact of this ASU. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in this ASU are effective for public entities for fiscal years and interim periods beginning after December 15, 2017 and early adoption is permitted. The ASU should be applied prospectively on and after the effective date. The Company is evaluating the impact of this ASU. REVENUE RECOGNITION STANDARDS In July 2015, the FASB announced a one-year delay in the effective date of ASU 2014-09, Revenue from Contracts with Customers. This ASU will be effective for interim and fiscal years 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. 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 reduces the potential for diversity in practice arising from inconsistent application of 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 clarifies 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. In February 2017, the FASB issued ASU 2017-05, Other Income - Gain and Losses from the Derecognition of Nonfinancial Assets . This ASU clarifies the scope of Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets , and adds guidance for partial sales of nonfinancial assets. Subtopic 610-20, which was issued in May 2014 as a part of ASU 2014-09, provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The effective dates of ASU 2016-08, ASU 2016-10, ASU 2016-20 and ASU 2017-05 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 assessed its impact on financial statement disclosures, information systems, business processes and internal controls. The standard is not expected to have a material impact on the Company's Consolidated Financial Statements.

GOODWILL AND OTHER INTANGIBLE19

GOODWILL AND OTHER INTANGIBLE ASSETS (Policies)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets, Policy	Grainger tests reporting units’ goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Accordingly, Grainger periodically performs qualitative assessments of significant events and circumstances such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors to determine the existence of impairment indicators and assess if it is more likely than not that the fair value of the reporting unit or indefinite-lived intangible assets is less than its carrying value and if a quantitative impairment test is necessary. In the quantitative test, Grainger compares the carrying value of the reporting unit or an indefinite-lived intangible asset with its fair value. Any excess of the carrying value over fair value is recorded as an impairment charge. The fair value of reporting units is calculated primarily using the discounted cash flow (DCF) method and utilizing 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’s indefinite-lived intangibles are primarily trade names. The fair value of trade names is calculated primarily using the relief from royalty method, which estimates the expected royalty savings attributable to the ownership of the trade name asset. The key assumptions when valuing a trade name are the revenue base, the royalty rate and the discount rate.

GOODWILL AND OTHER INTANGIBLE20

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Balances and Changes in the Carrying Amount of Goodwill by Segment	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 December 31, 2016 $ 202,020 $ 122,140 $ 202,990 $ 527,150 Divestiture (3,316 ) — — (3,316 ) Impairment (7,169 ) — — (7,169 ) Translation — 9,433 17,150 26,583 Balance at September 30, 2017 $ 191,535 $ 131,573 $ 220,140 $ 543,248 Cumulative goodwill impairment charges, December 31, 2016 $ 17,038 $ 32,265 $ 70,299 $ 119,602 Impairment charges 7,169 — — 7,169 Cumulative goodwill impairment charges, September 30, 2017 $ 24,207 $ 32,265 $ 70,299 $ 126,771
Schedule of Finite-Lived Intangible Assets	The balances and changes in Intangible assets - net are as follows (in thousands of dollars): September 30, 2017 December 31, 2016 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 13.8 years $ 428,041 $ 190,395 $ 237,646 $ 424,405 $ 175,112 $ 249,293 Trade names and other 13.5 years 25,960 15,611 $ 10,349 25,353 14,262 11,091 Non-amortized trade names and other — 136,333 — $ 136,333 128,282 — 128,282 Capitalized software 4.1 years 626,652 428,706 $ 197,946 571,978 374,518 197,460 Total 8.2 years $ 1,216,986 $ 634,712 $ 582,274 $ 1,150,018 $ 563,892 $ 586,126
Schedule of Indefinite-Lived Intangible Assets	The balances and changes in Intangible assets - net are as follows (in thousands of dollars): September 30, 2017 December 31, 2016 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 13.8 years $ 428,041 $ 190,395 $ 237,646 $ 424,405 $ 175,112 $ 249,293 Trade names and other 13.5 years 25,960 15,611 $ 10,349 25,353 14,262 11,091 Non-amortized trade names and other — 136,333 — $ 136,333 128,282 — 128,282 Capitalized software 4.1 years 626,652 428,706 $ 197,946 571,978 374,518 197,460 Total 8.2 years $ 1,216,986 $ 634,712 $ 582,274 $ 1,150,018 $ 563,892 $ 586,126

RESTRUCTURING RESERVES (Tables)

RESTRUCTURING RESERVES (Tables)	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The restructuring costs, net of gains, for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands of dollars): Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Cost of merchandise sold Warehousing, marketing and administrative expenses Total Cost of merchandise sold Warehousing, marketing and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) United States $ (100 ) $ 10,917 $ (2,873 ) $ 7,944 $ — $ 3,511 $ 1,926 $ 5,437 Canada — 1,882 3,055 4,937 548 3,119 700 4,367 Other Businesses 581 73 (864 ) (210 ) — — — — Total $ 481 $ 12,872 $ (682 ) $ 12,671 $ 548 $ 6,630 $ 2,626 $ 9,804 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Cost of merchandise sold Warehousing, marketing and administrative expenses Total Cost of merchandise sold Warehousing, marketing and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) United States $ (100 ) $ 19,459 $ (17,634 ) $ 1,725 $ 3,100 $ 18,342 $ (8,949 ) $ 12,493 Canada 2,574 9,842 14,093 26,509 11,452 13,194 700 25,346 Other Businesses 581 3,595 37,124 41,300 — — — — Unallocated — — — — — 8,947 8,947 Total $ 3,055 $ 32,896 $ 33,583 $ 69,534 $ 14,552 $ 31,536 $ 698 $ 46,786 The amounts incurred net of gains in connection with the restructuring activities are as follows (in thousands of dollars): Cumulative amount incurred to date Additional amount expected United States $ 61,814 $ — Canada 26,509 11,270 Other Businesses 41,300 — Total $ 129,623 $ 11,270
Restructuring Reserve Activity	The following summarizes the restructuring reserve activity (in thousands of dollars): Current assets write-downs Fixed assets write - downs and disposals Involuntary employee termination costs Lease termination costs Other costs Total Reserves as of December 30, 2016 $ 167 $ — $ 24,541 $ 3,125 $ 511 $ 28,344 Restructuring costs, net of (gains) 9,775 (5,987 ) 32,896 2,512 30,338 69,534 Cash (paid) received (865 ) 18,793 (24,370 ) (2,575 ) (5,620 ) (14,637 ) Translation (82 ) 3 843 (11 ) (196 ) 557 Other — (12,809 ) — — (17,230 ) (30,039 ) Reserves as of September 30, 2017 $ 8,995 $ — $ 33,910 $ 3,051 $ 7,803 $ 53,759

SHORT-TERM AND LONG-TERM DEBT (

SHORT-TERM AND LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Short-Term Debt Instruments	The following summarizes information concerning short-term debt (in thousands of dollars): September 30, 2017 December 31, 2016 Outstanding lines of credit $ 11,348 $ 16,392 Outstanding commercial paper — 369,748 $ 11,348 $ 386,140
Schedule of Long-Term Debt Instruments	Long-term debt consisted of the following (in thousands of dollars): September 30, 2017 December 31, 2016 4.60% senior notes due 2045 $ 1,000,000 $ 1,000,000 3.75% senior notes due 2046 400,000 400,000 4.20% senior notes due 2047 400,000 — British pound term loan and revolving credit facility 192,903 187,506 Euro term loan and revolving credit facility 141,743 120,900 Canadian dollar revolving credit facility 116,307 100,521 Other 84,860 71,109 2,335,813 1,880,036 Less current maturities (41,836 ) (19,966 ) Debt issuance costs and discounts (23,976 ) (19,124 ) $ 2,270,001 $ 1,840,946

EMPLOYEE BENEFITS - POSTRETIR23

EMPLOYEE BENEFITS - POSTRETIREMENT (Tables)	9 Months Ended
	Sep. 30, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Schedule of Net Periodic Benefit Costs Charged to Operating Expenses	The net periodic (benefits) costs recorded in Warehousing, marketing and administrative expenses consisted of the following components (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Service cost $ 1,856 $ 2,059 $ 5,649 $ 6,178 Interest cost 2,026 2,464 6,323 7,391 Expected return on assets (2,957 ) (2,528 ) (8,670 ) (7,584 ) Amortization of unrecognized (gains) losses (609 ) 32 (1,919 ) 96 Amortization of prior service credits (1,893 ) (1,672 ) (5,139 ) (5,016 ) Net periodic (benefits) costs $ (1,577 ) $ 355 $ (3,756 ) $ 1,065

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summary of Segment Results	Following is a summary of segment results (in thousands of dollars): Three Months Ended September 30, 2017 United States Canada Other Businesses Total Total net sales $ 2,015,968 $ 188,216 $ 536,927 $ 2,741,111 Intersegment net sales (103,667 ) (13 ) (1,432 ) (105,112 ) Net sales to external customers $ 1,912,301 $ 188,203 $ 535,495 $ 2,635,999 Segment operating earnings (losses) $ 297,855 $ (14,972 ) $ 26,892 $ 309,775 Three Months Ended September 30, 2016 United States Canada Other Businesses Total Total net sales $ 2,028,235 $ 179,281 $ 481,929 $ 2,689,445 Intersegment net sales (92,160 ) (23 ) (974 ) (93,157 ) Net sales to external customers $ 1,936,075 $ 179,258 $ 480,955 $ 2,596,288 Segment operating earnings (losses) $ 342,524 $ (15,118 ) $ 24,835 $ 352,241 Nine Months Ended September 30, 2017 United States Canada Other Businesses Total Total net sales $ 5,968,565 $ 563,470 $ 1,560,894 $ 8,092,929 Intersegment net sales (297,247 ) (15 ) (3,270 ) (300,532 ) Net sales to external customers $ 5,671,318 $ 563,455 $ 1,557,624 $ 7,792,397 Segment operating earnings (losses) $ 922,614 $ (59,428 ) $ 44,177 $ 907,363 Nine Months Ended September 30, 2016 United States Canada Other Businesses Total Total net sales $ 5,973,044 $ 552,470 $ 1,401,429 $ 7,926,943 Intersegment net sales (257,101 ) (109 ) (3,239 ) (260,449 ) Net sales to external customers $ 5,715,943 $ 552,361 $ 1,398,190 $ 7,666,494 Segment operating earnings (losses) $ 1,023,318 $ (55,207 ) $ 76,343 $ 1,044,454 United States Canada Other Businesses Total Segment assets: September 30, 2017 $ 2,316,683 $ 298,553 $ 589,564 $ 3,204,800 December 31, 2016 $ 2,275,009 $ 286,035 $ 494,067 $ 3,055,111
Schedule of Reconciliation of Operating Earnings from Segment to Consolidated	Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating earnings: Total operating earnings for operating segments $ 309,775 $ 352,241 $ 907,363 $ 1,044,454 Unallocated expenses and eliminations (28,605 ) (29,654 ) (98,640 ) (99,185 ) Total consolidated operating earnings $ 281,170 $ 322,587 $ 808,723 $ 945,269
Schedule of Reconciliation of Assets from Segment to Consolidated	September 30, 2017 December 31, 2016 Assets: Total assets for operating segments $ 3,204,800 $ 3,055,111 Other current and non-current assets 2,455,538 2,464,656 Unallocated assets 164,722 174,540 Total consolidated assets $ 5,825,060 $ 5,694,307

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings per Share under Two-Class Method	The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in thousands of dollars, except for share and per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net earnings attributable to W.W. Grainger, Inc. as reported $ 162,006 $ 185,873 $ 434,671 $ 545,262 Distributed earnings available to participating securities (603 ) (547 ) (1,576 ) (1,749 ) Undistributed earnings available to participating securities (806 ) (1,085 ) (1,966 ) (3,179 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 160,597 184,241 431,129 540,334 Undistributed earnings allocated to participating securities 806 1,085 1,966 3,179 Undistributed earnings reallocated to participating securities (803 ) (1,078 ) (1,956 ) (3,157 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 160,600 $ 184,248 $ 431,139 $ 540,356 Denominator for basic earnings per share – weighted average shares 57,316,532 60,016,550 58,010,222 60,854,548 Effect of dilutive securities 204,816 399,601 319,703 413,571 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 57,521,348 60,416,151 58,329,925 61,268,119 Earnings per share two-class method Basic $ 2.80 $ 3.07 $ 7.43 $ 8.88 Diluted $ 2.79 $ 3.05 $ 7.39 $ 8.82

BACKGROUND AND BASIS OF PRESE26

BACKGROUND AND BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Employee taxes paid from cash flows	$ 17,546	$ 18,541

DIVIDEND - Narrative (Details)

DIVIDEND - Narrative (Details)	Oct. 25, 2017$ / shares
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividend declared (in dollars per share)	$ 1.28

GOODWILL AND OTHER INTANGIBLE28

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017USD ($)reporting_units	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Goodwill [Line Items]
Goodwill and intangible assets	$ 1,100,000,000	$ 1,100,000,000	$ 1,100,000,000
Goodwill and intangible assets, percent of total assets	19.00%	19.00%	20.00%
Number of reporting units, operating performance below expectations | reporting_units	2
Number of reporting units, subject to impairment test of finite-lived intangible assets | reporting_units	2
Amortization of intangible assets		$ 67,000,000	$ 82,000,000
CANADA [Member]
Goodwill [Line Items]
Impairment of goodwill or indefinitely-lived intangible assets	$ 0
Reporting unit, percentage of fair value in excess of carrying amount	31.00%	31.00%
Other Businesses [Member]
Goodwill [Line Items]
Impairment of goodwill or indefinitely-lived intangible assets	$ 0
Reporting unit, percentage of fair value in excess of carrying amount	15.00%	15.00%

GOODWILL AND OTHER INTANGIBLE29

GOODWILL AND OTHER INTANGIBLE ASSETS - Balances and Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2016	$ 527,150
Divestiture	(3,316)
Impairment	(7,169)
Translation	26,583
Balance at September 30, 2017	543,248
Cumulative goodwill impairment charges, December 31, 2016	119,602
Impairment charges	7,169
Cumulative goodwill impairment charges, September 30, 2017	126,771
UNITED STATES [Member]
Goodwill [Roll Forward]
Balance at December 31, 2016	202,020
Divestiture	(3,316)
Impairment	(7,169)
Translation	0
Balance at September 30, 2017	191,535
Cumulative goodwill impairment charges, December 31, 2016	17,038
Impairment charges	7,169
Cumulative goodwill impairment charges, September 30, 2017	24,207
CANADA [Member]
Goodwill [Roll Forward]
Balance at December 31, 2016	122,140
Divestiture	0
Impairment	0
Translation	9,433
Balance at September 30, 2017	131,573
Cumulative goodwill impairment charges, December 31, 2016	32,265
Impairment charges	0
Cumulative goodwill impairment charges, September 30, 2017	32,265
Other Businesses [Member]
Goodwill [Roll Forward]
Balance at December 31, 2016	202,990
Divestiture	0
Impairment	0
Translation	17,150
Balance at September 30, 2017	220,140
Cumulative goodwill impairment charges, December 31, 2016	70,299
Impairment charges	0
Cumulative goodwill impairment charges, September 30, 2017	$ 70,299

GOODWILL AND OTHER INTANGIBLE30

GOODWILL AND OTHER INTANGIBLE ASSETS - Balances and Changes in Intangible Assets, Net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Weighted average life	8 years 2 months
Finite-lived intangible assets, accumulated amortization	$ 634,712	$ 563,892
Intangible assets, gross (excluding goodwill)	1,216,986	1,150,018
Intangible assets, net (excluding goodwill)	582,274	586,126
Trade names and other [Member]
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 136,333	128,282
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average life	13 years 9 months 12 days
Finite-lived intangible assets, gross	$ 428,041	424,405
Finite-lived intangible assets, accumulated amortization	190,395	175,112
Finite-lived intangible assets, net	$ 237,646	249,293
Trade names and other [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average life	13 years 5 months 18 days
Finite-lived intangible assets, gross	$ 25,960	25,353
Finite-lived intangible assets, accumulated amortization	15,611	14,262
Finite-lived intangible assets, net	$ 10,349	11,091
Capitalized software [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average life	4 years 1 month 12 days
Finite-lived intangible assets, gross	$ 626,652	571,978
Finite-lived intangible assets, accumulated amortization	428,706	374,518
Finite-lived intangible assets, net	$ 197,946	$ 197,460

RESTRUCTURING RESERVES - Narrat

RESTRUCTURING RESERVES - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Restatement Adjustment [Member]
Restructuring Cost and Reserve [Line Items]
Reclassified out of accumulated foreign currency translation losses	$ (16)

RESTRUCTURING RESERVES - Schedu

RESTRUCTURING RESERVES - Schedule of Restructuring Costs, Net of Gains (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	$ 481	$ 548	$ 3,055	$ 14,552
Involuntary employee termination costs	12,872	6,630	32,896	31,536
Other charges (gains)	(682)	2,626	33,583	698
Total	12,671	9,804	69,534	46,786
Operating Segments [Member] | UNITED STATES [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	(100)	0	(100)	3,100
Involuntary employee termination costs	10,917	3,511	19,459	18,342
Other charges (gains)	(2,873)	1,926	(17,634)	(8,949)
Total	7,944	5,437	1,725	12,493
Operating Segments [Member] | CANADA [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	0	548	2,574	11,452
Involuntary employee termination costs	1,882	3,119	9,842	13,194
Other charges (gains)	3,055	700	14,093	700
Total	4,937	4,367	26,509	25,346
Operating Segments [Member] | Other Businesses [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	581	0	581	0
Involuntary employee termination costs	73	0	3,595	0
Other charges (gains)	(864)	0	37,124	0
Total	$ (210)	$ 0	41,300	0
Segment Reconciling Items [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold			0	0
Involuntary employee termination costs			0	0
Other charges (gains)				8,947
Total			$ 0	$ 8,947

RESTRUCTURING RESERVES - Restru

RESTRUCTURING RESERVES - Restructuring Reserve Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Liability as of December 30, 2016			$ 28,344
Restructuring costs, net of (gains)	$ 12,671	$ 9,804	69,534	$ 46,786
Cash (paid) received			(14,637)
Translation			557
Other			(30,039)
Liability as of September 30, 2017	53,759		53,759
Current Assets Write Downs [Member]
Restructuring Cost and Reserve [Line Items]
Liability as of December 30, 2016			167
Restructuring costs, net of (gains)			9,775
Cash (paid) received			(865)
Translation			(82)
Other			0
Liability as of September 30, 2017	8,995		8,995
Fixed Assets Write Downs [Member]
Restructuring Cost and Reserve [Line Items]
Liability as of December 30, 2016			0
Restructuring costs, net of (gains)			(5,987)
Cash (paid) received			18,793
Translation			3
Other			(12,809)
Liability as of September 30, 2017	0		0
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Liability as of December 30, 2016			24,541
Restructuring costs, net of (gains)			32,896
Cash (paid) received			(24,370)
Translation			843
Other			0
Liability as of September 30, 2017	33,910		33,910
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Liability as of December 30, 2016			3,125
Restructuring costs, net of (gains)			2,512
Cash (paid) received			(2,575)
Translation			(11)
Other			0
Liability as of September 30, 2017	3,051		3,051
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Liability as of December 30, 2016			511
Restructuring costs, net of (gains)			30,338
Cash (paid) received			(5,620)
Translation			(196)
Other			(17,230)
Liability as of September 30, 2017	$ 7,803		$ 7,803

RESTRUCTURING RESERVES - Rest34

RESTRUCTURING RESERVES - Restructuring Activities Incurred, Net of Gains (Details) $ in Thousands	Sep. 30, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	$ 129,623
Total amount expected	11,270
UNITED STATES [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	61,814
Total amount expected	0
CANADA [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	26,509
Total amount expected	11,270
Other Businesses [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	41,300
Total amount expected	$ 0

SHORT-TERM AND LONG-TERM DEBT -

SHORT-TERM AND LONG-TERM DEBT - Schedule of Short-Term Debt Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Outstanding short-term debt	$ 11,348	$ 386,140
Line of Credit [Member]
Short-term Debt [Line Items]
Outstanding short-term debt	11,348	16,392
Commercial Paper [Member]
Short-term Debt [Line Items]
Outstanding short-term debt	$ 0	$ 369,748

SHORT-TERM AND LONG-TERM DEBT36

SHORT-TERM AND LONG-TERM DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	May 22, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt	$ 2,335,813		$ 1,880,036
Other	84,860		71,109
Less current maturities	(41,836)		(19,966)
Debt issuance costs and discounts	(23,976)		(19,124)
Long-term debt, excluding current maturities	2,270,001		1,840,946
British pound denominated term loan [Member]
Debt Instrument [Line Items]
Long-term debt	192,903		187,506
Euro denominated term loan [Member]
Debt Instrument [Line Items]
Long-term debt	141,743		120,900
Canadian dollar revolving credit facility [Member]
Debt Instrument [Line Items]
Long-term debt	$ 116,307		$ 100,521
Unsecured Senior Notes, 4.60% [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Stated interest rate	4.60%		4.60%
Long-term debt	$ 1,000,000		$ 1,000,000
Unsecured Senior Notes, 3.75% [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Stated interest rate	3.75%		3.75%
Long-term debt	$ 400,000		$ 400,000
Unsecured Senior Notes, 4.20% [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Stated interest rate	4.20%	4.20%	4.20%
Long-term debt	$ 400,000		$ 0

SHORT-TERM AND LONG-TERM DEBT37

SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) - USD ($)	May 22, 2017	Oct. 06, 2017	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Costs and discounts, representing underwriting fees and other expenses			$ 23,976,000	$ 19,124,000
Line of credit, maximum borrowing capacity			900,000,000
Line of credit, outstanding			$ 0
Senior Notes [Member] | Unsecured Senior Notes, 4.20% [Member]
Debt Instrument [Line Items]
Face amount of debt	$ 400,000,000
Stated interest rate	4.20%		4.20%	4.20%
Required principal payments until maturity date	$ 0
Basis points	0.20%
Redemption price, percentage	101.00%
Debt, fair value			$ 407,000,000
Senior Notes [Member] | Unsecured Senior Notes, 3.75% [Member]
Debt Instrument [Line Items]
Stated interest rate			3.75%	3.75%
Debt, fair value			$ 380,000,000	$ 371,000,000
Senior Notes [Member] | Unsecured Senior Notes, 4.60% [Member]
Debt Instrument [Line Items]
Stated interest rate			4.60%	4.60%
Debt, fair value			$ 1,100,000,000	$ 1,100,000,000
Long Term Debt, Contra Liability [Member] | Senior Notes [Member] | Unsecured Senior Notes, 4.20% [Member]
Debt Instrument [Line Items]
Costs and discounts, representing underwriting fees and other expenses	$ 5,800,000
Subsequent Event [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity		$ 750,000,000
Line of credit, higher borrowing capacity option		$ 1,125,000,000

EMPLOYEE BENEFITS - POSTRETIR38

EMPLOYEE BENEFITS - POSTRETIREMENT - Narrative (Details) - USD ($) $ in Thousands	Aug. 31, 2017	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Discount rate (as a percent)	3.55%			4.00%
Decrease in postretirement benefit obligation	$ 75,700
Postretirement benefit plan re-measurement, tax	$ 29,200	$ 29,172	$ 29,172
Postretirement benefit obligation		29,000	29,000	$ 101,500
Net accumulated gains		$ 67,500	$ 67,500	$ 25,300

EMPLOYEE BENEFITS - POSTRETIR39

EMPLOYEE BENEFITS - POSTRETIREMENT - Schedule of Net Periodic Benefit Costs Charged to Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Service cost	$ 1,856	$ 2,059	$ 5,649	$ 6,178
Interest cost	2,026	2,464	6,323	7,391
Expected return on assets	(2,957)	(2,528)	(8,670)	(7,584)
Amortization of unrecognized (gains) losses	(609)	32	(1,919)	96
Amortization of prior service credits	(1,893)	(1,672)	(5,139)	(5,016)
Net periodic (benefits) costs	$ (1,577)	$ 355	$ (3,756)	$ 1,065

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)segment
Segment Reporting Information [Line Items]
Number of reportable segments | segment		2
Service revenues, percent of total revenues		1.00%
UNITED STATES [Member]
Segment Reporting Information [Line Items]
Intersegment sales increase | $	$ 12	$ 40

SEGMENT INFORMATION - Summary o

SEGMENT INFORMATION - Summary of Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summarized Information
Sales	$ 2,635,999	$ 2,596,288	$ 7,792,397	$ 7,666,494
Total consolidated operating earnings	281,170	322,587	808,723	945,269
Total assets	5,825,060		5,825,060		$ 5,694,307
UNITED STATES [Member]
Summarized Information
Sales	1,912,301	1,936,075	5,671,318	5,715,943
Total assets	2,316,683		2,316,683		2,275,009
CANADA [Member]
Summarized Information
Sales	188,203	179,258	563,455	552,361
Total assets	298,553		298,553		286,035
Other Businesses [Member]
Summarized Information
Sales	535,495	480,955	1,557,624	1,398,190
Total assets	589,564		589,564		494,067
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member]
Summarized Information
Sales	2,741,111	2,689,445	8,092,929	7,926,943
Total consolidated operating earnings	309,775	352,241	907,363	1,044,454
Total assets	3,204,800		3,204,800		$ 3,055,111
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | UNITED STATES [Member]
Summarized Information
Sales	2,015,968	2,028,235	5,968,565	5,973,044
Total consolidated operating earnings	297,855	342,524	922,614	1,023,318
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | CANADA [Member]
Summarized Information
Sales	188,216	179,281	563,470	552,470
Total consolidated operating earnings	(14,972)	(15,118)	(59,428)	(55,207)
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Other Businesses [Member]
Summarized Information
Sales	536,927	481,929	1,560,894	1,401,429
Total consolidated operating earnings	26,892	24,835	44,177	76,343
Intersegment Eliminations [Member]
Summarized Information
Sales	(105,112)	(93,157)	(300,532)	(260,449)
Intersegment Eliminations [Member] | UNITED STATES [Member]
Summarized Information
Sales	(103,667)	(92,160)	(297,247)	(257,101)
Intersegment Eliminations [Member] | CANADA [Member]
Summarized Information
Sales	(13)	(23)	(15)	(109)
Intersegment Eliminations [Member] | Other Businesses [Member]
Summarized Information
Sales	$ (1,432)	$ (974)	$ (3,270)	$ (3,239)

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Reconciliation of Operating Earnings from Segment to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Total consolidated operating earnings	$ 281,170	$ 322,587	$ 808,723	$ 945,269
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member]
Segment Reporting Information [Line Items]
Total consolidated operating earnings	309,775	352,241	907,363	1,044,454
Eliminations and Unallocated in Consolidation [Member]
Segment Reporting Information [Line Items]
Total consolidated operating earnings	$ (28,605)	$ (29,654)	$ (98,640)	$ (99,185)

SEGMENT INFORMATION - Schedul43

SEGMENT INFORMATION - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total consolidated assets	$ 5,825,060	$ 5,694,307
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	3,204,800	3,055,111
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	2,455,538	2,464,656
Eliminations and Unallocated in Consolidation [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	$ 164,722	$ 174,540

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Computation of Basic and Diluted Earnings per Share under Two-Class Method (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net earnings attributable to W.W. Grainger, Inc. as reported	$ 162,006	$ 185,873	$ 434,671	$ 545,262
Distributed earnings available to participating securities	(603)	(547)	(1,576)	(1,749)
Undistributed earnings available to participating securities	(806)	(1,085)	(1,966)	(3,179)
Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders	160,597	184,241	431,129	540,334
Undistributed earnings allocated to participating securities	806	1,085	1,966	3,179
Undistributed earnings reallocated to participating securities	(803)	(1,078)	(1,956)	(3,157)
Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders	$ 160,600	$ 184,248	$ 431,139	$ 540,356
Denominator for basic earnings per share - weighted average shares (in shares)	57,316,532	60,016,550	58,010,222	60,854,548
Effect of dilutive securities (in shares)	204,816	399,601	319,703	413,571
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)	57,521,348	60,416,151	58,329,925	61,268,119
Basic (in dollars per share)	$ 2.80	$ 3.07	$ 7.43	$ 8.88
Diluted (in dollars per share)	$ 2.79	$ 3.05	$ 7.39	$ 8.82