W.W. Grainger (GWW) 10-Q 27 Apr 18 2018 Q1 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION	3 Months Ended
	Mar. 31, 2018shares
Document and Entity Information [Abstract]
Entity Registrant Name	GRAINGER W W INC
Entity Central Index Key	277,135
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	56,017,200

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 2,766,401	$ 2,541,129
Cost of merchandise sold	1,674,642	1,521,937
Gross profit	1,091,759	1,019,192
Warehousing, marketing and administrative expenses	756,929	726,691
Operating earnings	334,830	292,501
Other income (expense):
Interest income	628	193
Interest expense	(24,665)	(18,713)
Loss from equity method investment	(11,497)	(8,374)
Other, net	7,698	5,066
Total other expense, net	(27,836)	(21,828)
Earnings before income taxes	306,994	270,673
Income taxes	66,209	87,820
Net earnings	240,785	182,853
Less: Net earnings attributable to noncontrolling interest	9,250	8,109
Net earnings attributable to W.W. Grainger, Inc.	$ 231,535	$ 174,744
Earnings per share:
Basic (in dollars per share)	$ 4.09	$ 2.95
Diluted (in dollars per share)	$ 4.07	$ 2.93
Weighted average number of shares outstanding:
Basic (in shares)	56,062,607	58,720,066
Diluted (in shares)	56,403,246	59,202,882
Cash dividends paid per share (in dollars per share)	$ 1.28	$ 1.22

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net earnings	$ 240,785	$ 182,853
Other comprehensive earnings:
Foreign currency translation adjustments	23,116	29,303
Postretirement benefit plan reclassification, net of tax benefit of $825 and $879, respectively	(2,439)	(1,398)
Other	5	(12)
Comprehensive earnings, net of tax	261,467	210,746
Less: Comprehensive earnings attributable to noncontrolling interest
Net earnings	9,250	8,109
Foreign currency translation adjustments	8,360	5,532
Comprehensive earnings attributable to W.W. Grainger, Inc.	$ 243,857	$ 197,105

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (PARENTHETICAL) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Postretirement benefit plan reclassification, tax benefit	$ 825	$ 879

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 302,015	$ 326,876
Accounts receivable (less allowances for doubtful accounts of $30,148 and $29,267, respectively)	1,428,233	1,325,186
Inventories – net	1,434,609	1,429,199
Prepaid expenses and other assets	116,318	86,667
Prepaid income taxes	25,987	38,061
Total current assets	3,307,162	3,205,989
PROPERTY, BUILDINGS AND EQUIPMENT	3,439,914	3,444,660
Less: Accumulated depreciation and amortization	2,069,843	2,052,693
Property, buildings and equipment – net	1,370,071	1,391,967
DEFERRED INCOME TAXES	33,300	22,362
GOODWILL	549,418	543,903
INTANGIBLES - NET	570,134	569,115
OTHER ASSETS	72,726	70,918
TOTAL ASSETS	5,902,811	5,804,254
CURRENT LIABILITIES
Short-term debt	137,643	55,603
Current maturities of long-term debt	30,279	38,709
Trade accounts payable	748,372	731,582
Accrued compensation and benefits	181,055	254,560
Accrued contributions to employees’ profit sharing plans	29,890	92,682
Accrued expenses	324,319	313,766
Income taxes payable	52,774	19,759
Total current liabilities	1,504,332	1,506,661
LONG-TERM DEBT (less current maturities)	2,244,406	2,248,036
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES	121,767	111,710
EMPLOYMENT-RELATED AND OTHER NON-CURRENT LIABILITIES	106,400	110,114
SHAREHOLDERS' EQUITY
Cumulative Preferred Stock – $5 par value – 12,000,000 shares authorized; none issued nor outstanding	0	0
Common Stock – $0.50 par value – 300,000,000 shares authorized; 109,659,219 shares issued	54,830	54,830
Additional contributed capital	1,065,326	1,040,493
Retained earnings	7,564,319	7,405,192
Accumulated other comprehensive losses	(122,353)	(134,674)
Treasury stock, at cost – 53,642,019 and 53,330,356 shares, respectively	(6,791,524)	(6,675,709)
Total W.W. Grainger, Inc. shareholders’ equity	1,770,598	1,690,132
Noncontrolling interest	155,308	137,601
Total shareholders' equity	1,925,906	1,827,733
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 5,902,811	$ 5,804,254

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 30,148	$ 29,267
Cumulative preferred stock, par value (in dollars per share)	$ 5	$ 5
Cumulative preferred stock, shares authorized	12,000,000	12,000,000
Cumulative preferred stock, shares issued	0	0
Cumulative preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.5	$ 0.5
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	109,659,219	109,659,219
Treasury stock, shares at cost	53,642,019	53,330,356

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 240,785	$ 182,853
Provision for losses on accounts receivable	3,552	3,918
Deferred income taxes and tax uncertainties	(1,660)	(7,632)
Depreciation and amortization	63,931	62,249
Gains from sales of assets, net of write-offs	(5,714)	(10,966)
Stock-based compensation	11,652	6,757
Losses from equity method investment	11,497	8,374
Change in assets and liabilities:
Accounts receivable	(94,221)	(95,419)
Inventories	3,136	27,826
Prepaid expenses and other assets	(32,951)	(25,943)
Trade accounts payable	13,244	18,051
Other current liabilities	(102,664)	(64,171)
Current income taxes payable, net	43,844	73,227
Accrued employment-related benefits cost	(6,950)	1,520
Other – net	(596)	302
Net cash provided by operating activities	146,885	180,946
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, buildings and equipment and intangibles	(49,149)	(78,768)
Proceeds from sales of assets	25,987	48,306
Equity method investment	(8,115)	(7,067)
Net cash used in investing activities	(31,277)	(37,529)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in commercial paper	89,904	34,946
Borrowings under lines of credit	10,185	9,883
Payments against lines of credit	(19,923)	(9,167)
Proceeds from issuance of long-term debt	103	3,917
Payments of long-term debt	(25,288)	(6,235)
Proceeds from stock options exercised	59,003	26,345
Payments for employee taxes withheld from stock awards	(14,878)	(11,625)
Purchase of treasury stock	(172,917)	(159,146)
Cash dividends paid	(72,254)	(72,118)
Net cash used in financing activities	(146,065)	(183,200)
Exchange rate effect on cash and cash equivalents	5,596	4,438
NET CHANGE IN CASH AND CASH EQUIVALENTS	(24,861)	(35,345)
Cash and cash equivalents at beginning of year	326,876	274,146
Cash and cash equivalents at end of period	$ 302,015	$ 238,801

BACKGROUND AND BASIS OF PRESENT

BACKGROUND AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
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, except where the context makes it clear that the reference is only to W.W. Grainger, Inc. itself and not 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, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 26, 2018. The Condensed Consolidated Balance Sheet as of December 31, 2017 has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited financial information reflects all adjustments (primarily consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of the statements contained herein.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
NEW ACCOUNTING STANDARDS	NEW ACCOUNTING STANDARDS Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12, 2016-20 and 2017-05. The core principle of these ASUs, among other changes, is that an entity should recognize revenue when it transfers promised products or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those products or services. The Company elected the modified retrospective method and adopted the new revenue guidance effective January 1, 2018, with no impact to the opening retained earnings. Grainger assessed the impact of the new standard on the Company's process of evaluating customer contracts which primarily resulted in the reclassification of certain service-related costs from Warehousing, marketing and administrative expenses to Cost of merchandise sold to reflect certain Company customer contracts with dual performance obligations. The new standard also expanded the Company's qualitative and quantitative disclosures related to revenue recognition. The timing of revenue recognition under the new revenue recognition standard was consistent with the Company’s prior revenue recognition model, whereby revenue is recognized primarily on the date products are shipped to, or picked up by the customer. See Note 3 to the Condensed Consolidated Financial Statements (Financial Statements). Adoption of the new standard did not and is not expected to have an ongoing material impact on the Company's Financial Statements. Other 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. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments . This ASU provides technical corrections and improvements intended to clarify certain aspects of recognizing and measuring financial assets and liabilities. The effective date of these ASUs was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted these ASUs as of January 1, 2018, and they did not have a material impact on the Company's Financial Statements. 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, including balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months, among other changes. In January 2018, the FASB issued ASU 2018-01, Leases: Land Easement Practical Expedient for Transition . This ASU clarifies the accounting and reporting of land easements. The effective date of these ASUs is for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is evaluating the impact of these ASUs. 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 was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's 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 effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's 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 effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018. This ASU was applied retrospectively for the presentation of the net periodic postretirement cost components in the Condensed Consolidated Statement of Earnings for the quarter ended March 31, 2017 and prospectively, after the effective date. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The impact of the ASU for the three months ended March 31, 2017 was an increase of $ 3.0 million in Warehousing, marketing and administrative expense offset by a reduction in Total other expense, net of $ 3.0 million related to the reclassification of interest cost, expected return on plan assets and amortization of unrecognized gains and prior service credits. See Note 7 to the Financial Statements. 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 were effective for public entities for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Financial Statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU allows a reclassification from Accumulated other comprehensive earnings to Retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. 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.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Company revenue is primarily comprised of MRO product sales and related activities, such as freight and services. Recognition The Company recognizes revenue when a sales arrangement with a customer exists (e.g., contract, purchase orders, others), transaction price is fixed or determinable and the Company has satisfied its performance obligation per the sales arrangement. Company sales arrangements have standard payment terms that do not exceed a year. The majority of Company revenue originates from contracts with a single performance obligation to deliver products, whereas the Company’s performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. Some Company contracts contain a combination of product sales and services which are distinct and accounted for as separate performance obligations. The Company’s performance obligations for services are satisfied when the services are rendered within the arranged service period. Total service revenue is not material and accounted for approximately 1% of total Company revenue for the three months ended March 31, 2018 . The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of March 31, 2018 and December 31, 2017 . Measurement The Company’s revenue is reported as Net sales and is measured as the determinable transaction price, net of any variable considerations (e.g., rights to return product, sales incentives, others) and any taxes collected from customers and subsequently remitted to governmental authorities. The Company considers shipping and handling as activities to fulfill its performance obligation. Billings for freight and shipping and handling costs are accounted for as Net sales and Cost of merchandise sold, respectively. The Company offers customers rights to return product and sales incentives, which primarily consist of volume rebates. The Company’s rights of return and sales incentives generally do not exceed a year. The Company estimates sales returns and volume rebate accruals throughout the year based on various factors, including contract terms, historical experience and performance levels. Total accrued sales incentives were approximately $ 49 million and $ 55 million as of March 31, 2018 and December 31, 2017 , respectively, and are reported as part of Accrued expenses. Total accrued sales returns were approximately $ 26 million and $ 28 million as of March 31, 2018 and December 31, 2017 , respectively, and are reported as a reduction of Accounts receivable - net. Disaggregation of Revenues Grainger serves a large number of customers in diverse industries, which are subject to different economic and industry factors. The Company's presentation of revenue by industry most reasonably depicts how the nature, amount, timing and uncertainty of Company revenue and cash flows are affected by economic and industry factors. The following table presents the Company's percentage of revenue by reportable segment and by major customer industry for the three months ended March 31, 2018 : Three Months Ended March 31, 2018 United States Canada Total Company (2) Government 17 % 7 % 13 % Heavy Manufacturing 20 % 20 % 19 % Light Manufacturing 13 % 5 % 11 % Transportation 5 % 8 % 5 % Commercial 16 % 10 % 13 % Retail/Wholesale 8 % 4 % 7 % Contractors 10 % 12 % 8 % Natural Resources 3 % 31 % 4 % Other (1) 8 % 3 % 20 % Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 72 % 7 % 100 % (1) Other category primarily includes revenue from individual customers not aligned to any industry segment, including small business and consumers and intersegment net sales. (2) Total Company includes other businesses which include the Company's single channel businesses and small operations in the U.S., Europe, Asia and Latin America and account for approximately 21% of revenue. Cost of Merchandise Sold Cost of merchandise sold included products and product-related costs, vendor consideration, freight and handling costs and service costs.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Grainger had approximately $1.1 billion of goodwill and intangible assets as of March 31, 2018 and December 31, 2017, or 19% of total assets. 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 reporting units or intangible assets is less than their carrying value and if a quantitative impairment test is necessary. In the quantitative test for goodwill and indefinite-lived intangible assets, Grainger compares the assets' carrying value with the fair value and records an impairment charge for any excess of carrying over fair value. For amortizable intangibles, 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, and is measured as the amount by which the asset's carrying amount exceeds the fair value. Grainger's qualitative assessment for the three months ended March 31, 2018 did not indicate the presence of impairment triggering events. Changes in assumptions regarding discount rate and 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 goodwill and intangible assets.

RESTRUCTURING RESERVES

RESTRUCTURING RESERVES	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
RESTRUCTURING RESERVES	RESTRUCTURING The Company continues its previously announced restructuring actions to reduce costs in the U.S. and Company level (Unallocated expense) and to streamline and focus on profitability in Canada and other businesses. Restructuring costs, net, for the three months ended March 31, 2018 and 2017 are as follows (in thousands of dollars): 2018 2017 Cost of merchandise sold Warehousing, marketing and administrative expenses Total Warehousing, marketing and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) United States $ — $ 2,994 $ (7,421 ) $ (4,427 ) $ 3,183 $ (9,505 ) $ (6,322 ) Canada (388 ) 8,391 2,917 10,920 935 152 1,087 Other businesses — 1,095 80 1,175 — — — Unallocated expense — — 370 370 — — — Total $ (388 ) $ 12,480 $ (4,054 ) $ 8,038 $ 4,118 $ (9,353 ) $ (5,235 ) Other charges (gains) primarily include asset impairment charges in Canada and other exit-related costs, net of gains from the sales of branches in the U.S. and Canada businesses. The following summarizes the restructuring activity for the three months ended March 31, 2018 (in thousands of dollars): Non-current assets Current liabilities Current asset write-downs Fixed assets write-downs and disposals Involuntary employee termination costs Lease termination costs Other costs Total Reserves as of December 31, 2017 $ 13,101 $ 741 $ 50,289 4,893 $ 12,764 $ 81,788 Restructuring costs, net of (gains) 1,002 (6,090 ) 12,480 819 (173 ) 8,038 Cash (paid) received (744 ) 7,659 (15,940 ) (1,380 ) (1,237 ) (11,642 ) Non-cash, translation and others (4,482 ) (1,973 ) (253 ) (1,498 ) (3,350 ) (11,556 ) Reserves as of March 31, 2018 $ 8,877 $ 337 $ 46,576 $ 2,834 $ 8,004 $ 66,628 The cumulative amounts incurred to date and expected through the end of 2018 (excluding results of sales of real estate) in connection with the Company's restructuring actions for active programs are as follows (in thousands of dollars): Cumulative amount incurred to date Additional amount expected United States $ 57,971 $ 1,701 Canada 69,388 11,939 Other businesses 61,891 1,428 Unallocated expense 19,910 — Total $ 209,160 $ 15,068

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
SHORT-TERM AND LONG-TERM DEBT	SHORT-TERM AND LONG-TERM DEBT Short-term debt consisted of the following (in thousands of dollars): As of As of March 31, 2018 December 31, 2017 Lines of Credit Outstanding lines of credit $ 47,757 $ 55,603 Maximum month-end balance during the period $ 62,525 $ 55,621 Weighted-average interest rate during the period 2.13 % 2.41 % Weighted average interest rate 2.37 % 2.01 % Commercial Paper Outstanding commercial paper $ 89,886 $ — Maximum month-end balance during the period $ 89,886 $ 454,696 Weighted-average interest rate during the period 1.70 % 0.83 % Weighted average interest rate 1.94 % — % The increase in commercial paper from December 31, 2017 was primarily used to fund general working capital needs and share repurchases. Long-term debt consisted of the following (in thousands of dollars): As of March 31, 2018 As of December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000,000 $ 1,060,000 $ 1,000,000 $ 1,089,000 3.75% senior notes due 2046 400,000 371,096 400,000 384,200 4.20% senior notes due 2047 400,000 398,912 400,000 410,800 British pound term loan 196,210 196,210 194,574 194,574 Euro term loan 135,531 135,531 131,956 131,956 Canadian dollar revolving credit facility 96,967 96,967 99,388 99,388 Capital lease obligations and other 69,166 69,166 84,274 84,274 2,297,874 2,327,882 2,310,192 2,394,192 Less current maturities (30,279 ) (30,279 ) (38,709 ) (38,709 ) Debt issuance costs and discounts (23,189 ) (23,189 ) (23,447 ) (23,447 ) $ 2,244,406 $ 2,274,414 $ 2,248,036 $ 2,332,036 The estimated fair value of the Company’s 4.20% Senior Notes due 2047, 3.75% Senior Notes due 2046 and 4.60% Senior Notes due 2045 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 their variable interest rates.

EMPLOYEE BENEFITS - POSTRETIREM

EMPLOYEE BENEFITS - POSTRETIREMENT	3 Months Ended
	Mar. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
EMPLOYEE BENEFITS - POSTRETIREMENT	EMPLOYEE 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. Effective January 1, 2018, the Company implemented plan design changes for the post-65 age group. This plan change moves all post-65 Medicare eligible retirees to healthcare exchanges and provides them a subsidy, based on years of service, to purchase insurance. The net periodic benefit costs for the Company's postretirement healthcare benefits plan which are valued at the measurement date of January 1 for each year and recognized evenly throughout the year, consisted of the following (in thousands of dollars): Three Months Ended March 31, 2018 2017 Warehousing, marketing and administrative expenses Service cost $ 1,629 $ 1,897 Other income (expense) Interest cost 1,712 2,149 Expected return on assets (3,315 ) (2,857 ) Amortization of unrecognized gains (840 ) (655 ) Amortization of prior service credits (2,424 ) (1,622 ) Net periodic benefit $ (3,238 ) $ (1,088 ) The Company has established a Group Benefit Trust (Trust) to fund postretirement healthcare plan obligations and process benefit payments. The Company has no minimum funding requirement and did not make a contribution to the Trust during the three months ended March 31, 2018 .

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
INCOME TAXES [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES The Tax Cut and Jobs Act (the Tax Act) was enacted on December 22, 2017. The Company applied Staff Accounting Bulletin (SAB) 118 when accounting for the enactment-date effects of the Tax Act at December 31, 2017 and recorded estimates primarily related to the revaluation of deferred tax balances and the one-time transition tax. As of March 31, 2018, the Company has not completed the analysis for all of the tax effects of the Tax Act and has not recorded any additional adjustments to the amounts recorded at year-end.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in thousands of dollars, except for share and per share amounts): Three Months Ended March 31, 2018 2017 Net earnings attributable to W.W. Grainger, Inc. as reported $ 231,535 $ 174,744 Distributed earnings available to participating securities (612 ) (546 ) Undistributed earnings available to participating securities (1,386 ) (932 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 229,537 173,266 Undistributed earnings allocated to participating securities 1,386 932 Undistributed earnings reallocated to participating securities (1,378 ) (924 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 229,545 $ 173,274 Denominator for basic earnings per share – weighted average shares 56,062,607 58,720,066 Effect of dilutive securities 340,639 482,816 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 56,403,246 59,202,882 Earnings per share two-class method Basic $ 4.09 $ 2.95 Diluted $ 4.07 $ 2.93

DIVIDEND

DIVIDEND	3 Months Ended
	Mar. 31, 2018
Dividends [Abstract]
DIVIDEND	DIVIDEND On April 25, 2018 , the Company’s Board of Directors declared a quarterly dividend of $ 1.36 per share, payable June 1, 2018 , to shareholders of record on May 14, 2018 .

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION Grainger's two reportable segments are the U.S. and Canada. These reportable segments reflect the results of the Company's businesses in those geographies, except for Zoro Tools, Inc. (Zoro) in the U.S. and other small businesses. Other businesses include the Company's single channel businesses (Zoro and MonotaRO in Japan) and small operations in the U.S., Europe, Asia and Latin America. These businesses individually do not meet the criteria of a reportable segment. Following is a summary of segment results (in thousands of dollars): Three Months Ended March 31, 2018 United States Canada Other businesses Total Total net sales $ 2,107,686 $ 181,764 $ 588,092 $ 2,877,542 Intersegment net sales (110,181 ) (18 ) (942 ) (111,141 ) Net sales to external customers $ 1,997,505 $ 181,746 $ 587,150 $ 2,766,401 Segment operating earnings $ 356,504 $ (20,157 ) $ 36,422 $ 372,769 Three Months Ended March 31, 2017 United States Canada Other businesses Total Total net sales $ 1,953,444 $ 186,141 $ 497,407 $ 2,636,992 Intersegment net sales (95,073 ) (12 ) (778 ) (95,863 ) Net sales to external customers $ 1,858,371 $ 186,129 $ 496,629 $ 2,541,129 Segment operating earnings $ 309,642 $ (16,729 ) $ 31,507 $ 324,420 United States Canada Other businesses Total Segment assets: As of March 31, 2018 $ 2,383,796 $ 239,683 $ 661,352 $ 3,284,831 As of December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819 Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars): Three Months Ended March 31, 2018 2017 Operating earnings: Total operating earnings for reportable segments $ 372,769 $ 324,420 Unallocated expenses and eliminations (37,939 ) (31,919 ) Total consolidated operating earnings $ 334,830 $ 292,501 As of Assets: March 31, 2018 December 31, 2017 Assets for reportable segments 3,284,831 $ 3,193,819 Other current and non-current assets 2,494,329 2,428,074 Unallocated assets 123,651 182,361 Total consolidated assets $ 5,902,811 $ 5,804,254 Unallocated expenses and assets primarily relate to intercompany eliminations and the Company's headquarters support services, which are not part of any reportable segment. Unallocated expenses are primarily comprised of employee compensation costs, depreciation and other administrative costs and unallocated assets are primarily comprised of non-operating cash and cash equivalents, property, buildings and equipment, net, and certain prepaid expenses. 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.

CONTINGENCIES AND LEGAL MATTERS

CONTINGENCIES AND LEGAL MATTERS	3 Months Ended
	Mar. 31, 2018
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, cybersecurity incidents, privacy matters, environmental issues, wage and hour laws, intellectual property, employment practices, advertising laws, regulatory compliance, and other matters and actions brought by employees, customers, competitors, suppliers and governmental entities. As a government contractor selling to federal, state and local governmental entities, the Company is also subject to governmental or regulatory inquiries, audits and other proceedings, including those related to contract administration and 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)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
New Accounting Standards	NEW ACCOUNTING STANDARDS Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12, 2016-20 and 2017-05. The core principle of these ASUs, among other changes, is that an entity should recognize revenue when it transfers promised products or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those products or services. The Company elected the modified retrospective method and adopted the new revenue guidance effective January 1, 2018, with no impact to the opening retained earnings. Grainger assessed the impact of the new standard on the Company's process of evaluating customer contracts which primarily resulted in the reclassification of certain service-related costs from Warehousing, marketing and administrative expenses to Cost of merchandise sold to reflect certain Company customer contracts with dual performance obligations. The new standard also expanded the Company's qualitative and quantitative disclosures related to revenue recognition. The timing of revenue recognition under the new revenue recognition standard was consistent with the Company’s prior revenue recognition model, whereby revenue is recognized primarily on the date products are shipped to, or picked up by the customer. See Note 3 to the Condensed Consolidated Financial Statements (Financial Statements). Adoption of the new standard did not and is not expected to have an ongoing material impact on the Company's Financial Statements. Other 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. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments . This ASU provides technical corrections and improvements intended to clarify certain aspects of recognizing and measuring financial assets and liabilities. The effective date of these ASUs was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted these ASUs as of January 1, 2018, and they did not have a material impact on the Company's Financial Statements. 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, including balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months, among other changes. In January 2018, the FASB issued ASU 2018-01, Leases: Land Easement Practical Expedient for Transition . This ASU clarifies the accounting and reporting of land easements. The effective date of these ASUs is for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is evaluating the impact of these ASUs. 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 was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's 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 effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's 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 effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018. This ASU was applied retrospectively for the presentation of the net periodic postretirement cost components in the Condensed Consolidated Statement of Earnings for the quarter ended March 31, 2017 and prospectively, after the effective date. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The impact of the ASU for the three months ended March 31, 2017 was an increase of $ 3.0 million in Warehousing, marketing and administrative expense offset by a reduction in Total other expense, net of $ 3.0 million related to the reclassification of interest cost, expected return on plan assets and amortization of unrecognized gains and prior service credits. See Note 7 to the Financial Statements. 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 were effective for public entities for fiscal years and interim periods beginning after December 15, 2017. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Financial Statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU allows a reclassification from Accumulated other comprehensive earnings to Retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. 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.

REVENUE (Policies)

REVENUE (Policies)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition, Policy [Policy Text Block]	Company revenue is primarily comprised of MRO product sales and related activities, such as freight and services. Recognition The Company recognizes revenue when a sales arrangement with a customer exists (e.g., contract, purchase orders, others), transaction price is fixed or determinable and the Company has satisfied its performance obligation per the sales arrangement. Company sales arrangements have standard payment terms that do not exceed a year. The majority of Company revenue originates from contracts with a single performance obligation to deliver products, whereas the Company’s performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. Some Company contracts contain a combination of product sales and services which are distinct and accounted for as separate performance obligations. The Company’s performance obligations for services are satisfied when the services are rendered within the arranged service period. Total service revenue is not material and accounted for approximately 1% of total Company revenue for the three months ended March 31, 2018 . The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of March 31, 2018 and December 31, 2017 . Measurement The Company’s revenue is reported as Net sales and is measured as the determinable transaction price, net of any variable considerations (e.g., rights to return product, sales incentives, others) and any taxes collected from customers and subsequently remitted to governmental authorities. The Company considers shipping and handling as activities to fulfill its performance obligation. Billings for freight and shipping and handling costs are accounted for as Net sales and Cost of merchandise sold, respectively. The Company offers customers rights to return product and sales incentives, which primarily consist of volume rebates. The Company’s rights of return and sales incentives generally do not exceed a year. The Company estimates sales returns and volume rebate accruals throughout the year based on various factors, including contract terms, historical experience and performance levels.

GOODWILL AND OTHER INTANGIBLE22

GOODWILL AND OTHER INTANGIBLE ASSETS (Policies)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	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 reporting units or intangible assets is less than their carrying value and if a quantitative impairment test is necessary. In the quantitative test for goodwill and indefinite-lived intangible assets, Grainger compares the assets' carrying value with the fair value and records an impairment charge for any excess of carrying over fair value. For amortizable intangibles, 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, and is measured as the amount by which the asset's carrying amount exceeds the fair value.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenues	The following table presents the Company's percentage of revenue by reportable segment and by major customer industry for the three months ended March 31, 2018 : Three Months Ended March 31, 2018 United States Canada Total Company (2) Government 17 % 7 % 13 % Heavy Manufacturing 20 % 20 % 19 % Light Manufacturing 13 % 5 % 11 % Transportation 5 % 8 % 5 % Commercial 16 % 10 % 13 % Retail/Wholesale 8 % 4 % 7 % Contractors 10 % 12 % 8 % Natural Resources 3 % 31 % 4 % Other (1) 8 % 3 % 20 % Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 72 % 7 % 100 %

RESTRUCTURING RESERVES (Tables)

RESTRUCTURING RESERVES (Tables)	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Costs, Cumulative Amounts Incurred to Date and Expected	The cumulative amounts incurred to date and expected through the end of 2018 (excluding results of sales of real estate) in connection with the Company's restructuring actions for active programs are as follows (in thousands of dollars): Cumulative amount incurred to date Additional amount expected United States $ 57,971 $ 1,701 Canada 69,388 11,939 Other businesses 61,891 1,428 Unallocated expense 19,910 — Total $ 209,160 $ 15,068 Restructuring costs, net, for the three months ended March 31, 2018 and 2017 are as follows (in thousands of dollars): 2018 2017 Cost of merchandise sold Warehousing, marketing and administrative expenses Total Warehousing, marketing and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) United States $ — $ 2,994 $ (7,421 ) $ (4,427 ) $ 3,183 $ (9,505 ) $ (6,322 ) Canada (388 ) 8,391 2,917 10,920 935 152 1,087 Other businesses — 1,095 80 1,175 — — — Unallocated expense — — 370 370 — — — Total $ (388 ) $ 12,480 $ (4,054 ) $ 8,038 $ 4,118 $ (9,353 ) $ (5,235 )
Summary Of Restructuring Reserve Activity	The following summarizes the restructuring activity for the three months ended March 31, 2018 (in thousands of dollars): Non-current assets Current liabilities Current asset write-downs Fixed assets write-downs and disposals Involuntary employee termination costs Lease termination costs Other costs Total Reserves as of December 31, 2017 $ 13,101 $ 741 $ 50,289 4,893 $ 12,764 $ 81,788 Restructuring costs, net of (gains) 1,002 (6,090 ) 12,480 819 (173 ) 8,038 Cash (paid) received (744 ) 7,659 (15,940 ) (1,380 ) (1,237 ) (11,642 ) Non-cash, translation and others (4,482 ) (1,973 ) (253 ) (1,498 ) (3,350 ) (11,556 ) Reserves as of March 31, 2018 $ 8,877 $ 337 $ 46,576 $ 2,834 $ 8,004 $ 66,628

SHORT-TERM AND LONG-TERM DEBT (

SHORT-TERM AND LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Short-Term Debt Instruments	Short-term debt consisted of the following (in thousands of dollars): As of As of March 31, 2018 December 31, 2017 Lines of Credit Outstanding lines of credit $ 47,757 $ 55,603 Maximum month-end balance during the period $ 62,525 $ 55,621 Weighted-average interest rate during the period 2.13 % 2.41 % Weighted average interest rate 2.37 % 2.01 % Commercial Paper Outstanding commercial paper $ 89,886 $ — Maximum month-end balance during the period $ 89,886 $ 454,696 Weighted-average interest rate during the period 1.70 % 0.83 % Weighted average interest rate 1.94 % — %
Schedule of Long-Term Debt Instruments	Long-term debt consisted of the following (in thousands of dollars): As of March 31, 2018 As of December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000,000 $ 1,060,000 $ 1,000,000 $ 1,089,000 3.75% senior notes due 2046 400,000 371,096 400,000 384,200 4.20% senior notes due 2047 400,000 398,912 400,000 410,800 British pound term loan 196,210 196,210 194,574 194,574 Euro term loan 135,531 135,531 131,956 131,956 Canadian dollar revolving credit facility 96,967 96,967 99,388 99,388 Capital lease obligations and other 69,166 69,166 84,274 84,274 2,297,874 2,327,882 2,310,192 2,394,192 Less current maturities (30,279 ) (30,279 ) (38,709 ) (38,709 ) Debt issuance costs and discounts (23,189 ) (23,189 ) (23,447 ) (23,447 ) $ 2,244,406 $ 2,274,414 $ 2,248,036 $ 2,332,036

EMPLOYEE BENEFITS - POSTRETIR26

EMPLOYEE BENEFITS - POSTRETIREMENT (Tables)	3 Months Ended
	Mar. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Schedule of Net Periodic Benefit Costs Charged to Operating Expenses	The net periodic benefit costs for the Company's postretirement healthcare benefits plan which are valued at the measurement date of January 1 for each year and recognized evenly throughout the year, consisted of the following (in thousands of dollars): Three Months Ended March 31, 2018 2017 Warehousing, marketing and administrative expenses Service cost $ 1,629 $ 1,897 Other income (expense) Interest cost 1,712 2,149 Expected return on assets (3,315 ) (2,857 ) Amortization of unrecognized gains (840 ) (655 ) Amortization of prior service credits (2,424 ) (1,622 ) Net periodic benefit $ (3,238 ) $ (1,088 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 2017 Net earnings attributable to W.W. Grainger, Inc. as reported $ 231,535 $ 174,744 Distributed earnings available to participating securities (612 ) (546 ) Undistributed earnings available to participating securities (1,386 ) (932 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 229,537 173,266 Undistributed earnings allocated to participating securities 1,386 932 Undistributed earnings reallocated to participating securities (1,378 ) (924 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 229,545 $ 173,274 Denominator for basic earnings per share – weighted average shares 56,062,607 58,720,066 Effect of dilutive securities 340,639 482,816 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 56,403,246 59,202,882 Earnings per share two-class method Basic $ 4.09 $ 2.95 Diluted $ 4.07 $ 2.93

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Summary of Segment Results	Following is a summary of segment results (in thousands of dollars): Three Months Ended March 31, 2018 United States Canada Other businesses Total Total net sales $ 2,107,686 $ 181,764 $ 588,092 $ 2,877,542 Intersegment net sales (110,181 ) (18 ) (942 ) (111,141 ) Net sales to external customers $ 1,997,505 $ 181,746 $ 587,150 $ 2,766,401 Segment operating earnings $ 356,504 $ (20,157 ) $ 36,422 $ 372,769 Three Months Ended March 31, 2017 United States Canada Other businesses Total Total net sales $ 1,953,444 $ 186,141 $ 497,407 $ 2,636,992 Intersegment net sales (95,073 ) (12 ) (778 ) (95,863 ) Net sales to external customers $ 1,858,371 $ 186,129 $ 496,629 $ 2,541,129 Segment operating earnings $ 309,642 $ (16,729 ) $ 31,507 $ 324,420 United States Canada Other businesses Total Segment assets: As of March 31, 2018 $ 2,383,796 $ 239,683 $ 661,352 $ 3,284,831 As of December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819
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 March 31, 2018 2017 Operating earnings: Total operating earnings for reportable segments $ 372,769 $ 324,420 Unallocated expenses and eliminations (37,939 ) (31,919 ) Total consolidated operating earnings $ 334,830 $ 292,501 As of Assets: March 31, 2018 December 31, 2017 Assets for reportable segments 3,284,831 $ 3,193,819 Other current and non-current assets 2,494,329 2,428,074 Unallocated assets 123,651 182,361 Total consolidated assets $ 5,902,811 $ 5,804,254
Schedule of Reconciliation of Assets from Segment to Consolidated	Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars): Three Months Ended March 31, 2018 2017 Operating earnings: Total operating earnings for reportable segments $ 372,769 $ 324,420 Unallocated expenses and eliminations (37,939 ) (31,919 ) Total consolidated operating earnings $ 334,830 $ 292,501 As of Assets: March 31, 2018 December 31, 2017 Assets for reportable segments 3,284,831 $ 3,193,819 Other current and non-current assets 2,494,329 2,428,074 Unallocated assets 123,651 182,361 Total consolidated assets $ 5,902,811 $ 5,804,254

NEW ACCOUNTING STANDARDS (Detai

NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warehousing, marketing and administrative expenses	$ 756,929	$ 726,691
Nonoperating Income (Expense)	$ 27,836	21,828
Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warehousing, marketing and administrative expenses		3,000
Nonoperating Income (Expense)		$ 3,000

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Accrued sales incentives	$ 49	$ 55
Accrued sales returns	$ 26	$ 28
Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Percent of Total Company Revenue	1.00%

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenues (Details)	3 Months Ended
	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Total net sales	100.00%
Percent of Total Company Revenue	100.00%
Government [Member]
Disaggregation of Revenue [Line Items]
Total net sales	13.00%
Heavy Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Total net sales	19.00%
Light Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Total net sales	11.00%
Transportation [Member]
Disaggregation of Revenue [Line Items]
Total net sales	5.00%
Commercial [Member]
Disaggregation of Revenue [Line Items]
Total net sales	13.00%
Retail/Wholesale [Member]
Disaggregation of Revenue [Line Items]
Total net sales	7.00%
Contractors [Member]
Disaggregation of Revenue [Line Items]
Total net sales	8.00%
Natural Resources [Member]
Disaggregation of Revenue [Line Items]
Total net sales	4.00%
Other [Member]
Disaggregation of Revenue [Line Items]
Total net sales	20.00%
United States [Member]
Disaggregation of Revenue [Line Items]
Total net sales	100.00%
Percent of Total Company Revenue	72.00%
United States [Member] | Government [Member]
Disaggregation of Revenue [Line Items]
Total net sales	17.00%
United States [Member] | Heavy Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Total net sales	20.00%
United States [Member] | Light Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Total net sales	13.00%
United States [Member] | Transportation [Member]
Disaggregation of Revenue [Line Items]
Total net sales	5.00%
United States [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Total net sales	16.00%
United States [Member] | Retail/Wholesale [Member]
Disaggregation of Revenue [Line Items]
Total net sales	8.00%
United States [Member] | Contractors [Member]
Disaggregation of Revenue [Line Items]
Total net sales	10.00%
United States [Member] | Natural Resources [Member]
Disaggregation of Revenue [Line Items]
Total net sales	3.00%
United States [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total net sales	8.00%
Canada [Member]
Disaggregation of Revenue [Line Items]
Total net sales	100.00%
Percent of Total Company Revenue	7.00%
Canada [Member] | Government [Member]
Disaggregation of Revenue [Line Items]
Total net sales	7.00%
Canada [Member] | Heavy Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Total net sales	20.00%
Canada [Member] | Light Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Total net sales	5.00%
Canada [Member] | Transportation [Member]
Disaggregation of Revenue [Line Items]
Total net sales	8.00%
Canada [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Total net sales	10.00%
Canada [Member] | Retail/Wholesale [Member]
Disaggregation of Revenue [Line Items]
Total net sales	4.00%
Canada [Member] | Contractors [Member]
Disaggregation of Revenue [Line Items]
Total net sales	12.00%
Canada [Member] | Natural Resources [Member]
Disaggregation of Revenue [Line Items]
Total net sales	31.00%
Canada [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total net sales	3.00%
Other Segments [Member]
Disaggregation of Revenue [Line Items]
Percent of Total Company Revenue	20.00%

GOODWILL AND OTHER INTANGIBLE32

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Billions	Mar. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and intangible assets	$ 1.1	$ 1.1
Goodwill and intangible assets, percent of total assets	19.00%	19.00%

RESTRUCTURING RESERVES - Schedu

RESTRUCTURING RESERVES - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	$ (388)
Involuntary employee termination costs	12,480	$ 4,118
Other charges (gains)	(4,054)	(9,353)
Total	8,038	(5,235)
Segments | United States [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	0
Involuntary employee termination costs	2,994	3,183
Other charges (gains)	(7,421)	(9,505)
Total	(4,427)	(6,322)
Segments | Canada [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	(388)
Involuntary employee termination costs	8,391	935
Other charges (gains)	2,917	152
Total	10,920	1,087
Segments | Other Segments [Member]
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	0
Involuntary employee termination costs	1,095	0
Other charges (gains)	80	0
Total	1,175	0
Unallocated expense
Restructuring Cost and Reserve [Line Items]
Cost of merchandise sold	0
Involuntary employee termination costs	0	0
Other charges (gains)	370	0
Total	$ 370	$ 0

RESTRUCTURING RESERVES - Summar

RESTRUCTURING RESERVES - Summary Of Restructuring Reserve Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Restructuring Reserve
Beginning balance	$ 81,788
Restructuring costs, net of (gains)	8,038
Cash (paid) received	(11,642)
Non-cash, translation and others	(11,556)
Ending balance	66,628
Current assets write-downs
Restructuring Reserve
Beginning balance	13,101
Restructuring costs, net of (gains)	1,002
Cash (paid) received	(744)
Non-cash, translation and others	(4,482)
Ending balance	8,877
Fixed assets write-downs and disposals
Restructuring Reserve
Beginning balance	741
Restructuring costs, net of (gains)	(6,090)
Cash (paid) received	7,659
Non-cash, translation and others	(1,973)
Ending balance	337
Involuntary employee termination costs
Restructuring Reserve
Beginning balance	50,289
Restructuring costs, net of (gains)	12,480
Cash (paid) received	(15,940)
Non-cash, translation and others	(253)
Ending balance	46,576
Lease termination costs
Restructuring Reserve
Beginning balance	4,893
Restructuring costs, net of (gains)	819
Cash (paid) received	(1,380)
Non-cash, translation and others	(1,498)
Ending balance	2,834
Other costs
Restructuring Reserve
Beginning balance	12,764
Restructuring costs, net of (gains)	(173)
Cash (paid) received	(1,237)
Non-cash, translation and others	(3,350)
Ending balance	$ 8,004

RESTRUCTURING RESERVES - Sche35

RESTRUCTURING RESERVES - Schedule of Cumulative Amounts Incurred to Date and Expected (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	$ 209,160
Additional amount expected	15,068
Segments | United States [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	57,971
Additional amount expected	1,701
Segments | Canada [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	69,388
Additional amount expected	11,939
Segments | Other Segments [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	61,891
Additional amount expected	1,428
Unallocated expense
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	19,910
Additional 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	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Outstanding short-term debt	$ 137,643	$ 55,603
Line of Credit [Member]
Short-term Debt [Line Items]
Line of Credit, Current	47,757	55,603
Short-term Debt, Maximum Month-end Outstanding Amount	$ 62,525	$ 55,621
Debt Instrument, Interest Rate During Period	2.13%	2.41%
Short-term Debt, Weighted Average Interest Rate, at Point in Time	2.37%	2.01%
Commercial Paper [Member]
Short-term Debt [Line Items]
Short-term Debt, Maximum Month-end Outstanding Amount	$ 89,886	$ 454,696
Debt Instrument, Interest Rate During Period	1.70%	0.83%
Short-term Debt, Weighted Average Interest Rate, at Point in Time	1.94%	0.00%
Commercial Paper	$ 89,886	$ 0

SHORT-TERM AND LONG-TERM DEBT37

SHORT-TERM AND LONG-TERM DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital lease obligations and other	$ 69,166	$ 84,274
Capital lease obligations and other, fair value	69,166	84,274
Long-term debt, gross	2,297,874	2,310,192
Long-term debt, gross, fair value	2,327,882	2,394,192
Less current maturities	(30,279)	(38,709)
Less current maturities, fair value	(30,279)	(38,709)
Debt issuance costs and discounts	(23,189)	(23,447)
Debt issuance costs and discounts, fair value	(23,189)	(23,447)
Long-term debt, excluding current maturities	2,244,406	2,248,036
Long-term debt, excluding current maturities, , fair value	2,274,414	2,332,036
British pound denominated term loan and revolving credit facility [Member]
Debt Instrument [Line Items]
Long-term debt	196,210	194,574
Long-term debt, fair value	196,210	194,574
Euro denominated term loan and revolving credit facility [Member]
Debt Instrument [Line Items]
Long-term debt	135,531	131,956
Long-term debt, fair value	135,531	131,956
Canadian dollar revolving credit facility [Member]
Debt Instrument [Line Items]
Long-term debt	96,967	99,388
Long-term debt, fair value	96,967	99,388
Senior Notes, 4.60% due 2045 [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Long-term debt	1,000,000	1,000,000
Long-term debt, fair value	$ 1,060,000	$ 1,089,000
Stated interest rate	4.60%	4.60%
Senior Notes, 3.75% due 2046 [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 400,000	$ 400,000
Long-term debt, fair value	$ 371,096	$ 384,200
Stated interest rate	3.75%	3.75%
Senior Notes, 4.20% due 2047 [Member] | Senior notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 400,000	$ 400,000
Long-term debt, fair value	$ 398,912	$ 410,800
Stated interest rate	4.20%	4.20%

SHORT-TERM AND LONG-TERM DEBT38

SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) - Senior Notes [Member]	Mar. 31, 2018	Dec. 31, 2017
Senior Notes, 4.20% due 2047 [Member]
Debt Instrument [Line Items]
Stated interest rate	4.20%	4.20%
Senior Notes, 3.75% due 2046 [Member]
Debt Instrument [Line Items]
Stated interest rate	3.75%	3.75%
Senior Notes, 4.60% due 2045 [Member]
Debt Instrument [Line Items]
Stated interest rate	4.60%	4.60%

EMPLOYEE BENEFITS - POSTRETIR39

EMPLOYEE BENEFITS - POSTRETIREMENT - Schedule of Net Periodic Benefit Costs Charged to Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Service cost	$ 1,629	$ 1,897
Interest cost	1,712	2,149
Expected return on assets	(3,315)	(2,857)
Amortization of unrecognized gains	(840)	(655)
Amortization of prior service credits	(2,424)	(1,622)
Net periodic benefit	$ (3,238)	$ (1,088)

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
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net earnings attributable to W.W. Grainger, Inc. as reported	$ 231,535	$ 174,744
Distributed earnings available to participating securities	(612)	(546)
Undistributed earnings available to participating securities	(1,386)	(932)
Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders	229,537	173,266
Undistributed earnings allocated to participating securities	1,386	932
Undistributed earnings reallocated to participating securities	(1,378)	(924)
Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders	$ 229,545	$ 173,274
Denominator for basic earnings per share - weighted average shares (in shares)	56,062,607	58,720,066
Effect of dilutive securities (in shares)	340,639	482,816
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)	56,403,246	59,202,882
Basic (in dollars per share)	$ 4.09	$ 2.95
Diluted (in dollars per share)	$ 4.07	$ 2.93

DIVIDEND - Narrative (Details)

DIVIDEND - Narrative (Details)	Apr. 25, 2018$ / shares
Subsequent event
Subsequent Event [Line Items]
Dividend declared (in dollars per share)	$ 1.36

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details)	3 Months Ended
	Mar. 31, 2018segment
Segment Reporting Information [Line Items]
Number of reportable segments	2

SEGMENT INFORMATION - Summary o

SEGMENT INFORMATION - Summary of Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Summarized Information
Net sales to external customers	$ 2,766,401	$ 2,541,129
Total consolidated operating earnings	334,830	292,501
Total assets	5,902,811		$ 5,804,254
United States [Member]
Summarized Information
Net sales to external customers	1,997,505	1,858,371
Total assets	2,383,796		2,309,734
Canada [Member]
Summarized Information
Net sales to external customers	181,746	186,129
Total assets	239,683		278,633
Other Businesses [Member]
Summarized Information
Net sales to external customers	587,150	496,629
Total assets	661,352		605,452
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member]
Summarized Information
Net sales to external customers	2,877,542	2,636,992
Total consolidated operating earnings	372,769	324,420
Total assets	3,284,831		$ 3,193,819
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | United States [Member]
Summarized Information
Net sales to external customers	2,107,686	1,953,444
Total consolidated operating earnings	356,504	309,642
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Canada [Member]
Summarized Information
Net sales to external customers	181,764	186,141
Total consolidated operating earnings	(20,157)	(16,729)
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Other Businesses [Member]
Summarized Information
Net sales to external customers	588,092	497,407
Total consolidated operating earnings	36,422	31,507
Intersegment Eliminations [Member]
Summarized Information
Net sales to external customers	(111,141)	(95,863)
Intersegment Eliminations [Member] | United States [Member]
Summarized Information
Net sales to external customers	(110,181)	(95,073)
Intersegment Eliminations [Member] | Canada [Member]
Summarized Information
Net sales to external customers	(18)	(12)
Intersegment Eliminations [Member] | Other Businesses [Member]
Summarized Information
Net sales to external customers	$ (942)	$ (778)

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Reconciliation of Operating Earnings from Segment to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Total consolidated operating earnings	$ 334,830	$ 292,501
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member]
Segment Reporting Information [Line Items]
Total consolidated operating earnings	372,769	324,420
Eliminations and Unallocated in Consolidation [Member]
Segment Reporting Information [Line Items]
Total consolidated operating earnings	$ (37,939)	$ (31,919)

SEGMENT INFORMATION - Schedul45

SEGMENT INFORMATION - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total consolidated assets	$ 5,902,811	$ 5,804,254
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	3,284,831	3,193,819
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	2,494,329	2,428,074
Eliminations and Unallocated in Consolidation [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	$ 123,651	$ 182,361