DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended |
Jun. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | GRAINGER W W INC |
Entity Central Index Key | 277,135 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 56,133,815 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,860,212 | $ 2,615,269 | $ 5,626,613 | $ 5,156,398 |
Cost of goods sold | 1,749,271 | 1,575,313 | 3,423,913 | 3,097,250 |
Gross profit | 1,110,941 | 1,039,956 | 2,202,700 | 2,059,148 |
Selling, general and administrative expenses | 766,955 | 810,876 | 1,523,884 | 1,537,567 |
Operating earnings | 343,986 | 229,080 | 678,816 | 521,581 |
Other income (expense): | ||||
Interest income | 1,014 | 465 | 1,642 | 658 |
Interest expense | (22,924) | (22,468) | (47,589) | (41,181) |
Losses from equity method investment | (3,043) | (6,121) | (14,540) | (14,495) |
Other, net | 4,327 | 6,240 | 12,025 | 11,306 |
Total other expense, net | (20,626) | (21,884) | (48,462) | (43,712) |
Earnings before income taxes | 323,360 | 207,196 | 630,354 | 477,869 |
Income taxes | 75,617 | 100,237 | 141,826 | 188,057 |
Net earnings | 247,743 | 106,959 | 488,528 | 289,812 |
Less: Net earnings attributable to noncontrolling interest | 10,762 | 9,038 | 20,012 | 17,147 |
Net earnings attributable to W.W. Grainger, Inc. | $ 236,981 | $ 97,921 | $ 468,516 | $ 272,665 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 4.19 | $ 1.68 | $ 8.29 | $ 4.64 |
Diluted (in dollars per share) | $ 4.16 | $ 1.67 | $ 8.23 | $ 4.61 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 56,109,809 | 58,012,731 | 56,086,592 | 58,363,416 |
Diluted (in shares) | 56,552,644 | 58,287,312 | 56,478,645 | 58,741,262 |
Cash dividends paid per share (in dollars per share) | $ 1.36 | $ 1.28 | $ 2.64 | $ 2.50 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 247,743 | $ 106,959 | $ 488,528 | $ 289,812 |
Other comprehensive (losses) earnings: | ||||
Foreign currency translation adjustments (see Note 6) | (48,471) | 46,543 | (25,355) | 75,846 |
Postretirement benefit plan reclassification, net of tax benefit of $825, $878, $1,650 and $1,757, respectively | (2,438) | (1,400) | (4,877) | (2,798) |
Other | 17 | 0 | 22 | (12) |
Total other comprehensive (losses) earnings | (50,892) | 45,143 | (30,210) | 73,036 |
Comprehensive earnings, net of tax | 196,851 | 152,102 | 458,318 | 362,848 |
Less: Comprehensive (losses) earnings attributable to noncontrolling interest | ||||
Net earnings | 10,762 | 9,038 | 20,012 | 17,147 |
Foreign currency translation adjustments | (6,136) | (1,186) | 2,224 | 4,346 |
Comprehensive earnings attributable to noncontrolling interest | 4,626 | 7,852 | 22,236 | 21,493 |
Comprehensive earnings attributable to W.W. Grainger, Inc. | $ 192,225 | $ 144,250 | $ 436,082 | $ 341,355 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Postretirement benefit plan reclassification, tax benefit | $ 825 | $ 878 | $ 1,650 | $ 1,757 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 312,461 | $ 326,876 |
Accounts receivable (less allowances for doubtful accounts of $26,560 and $29,267, respectively) | 1,462,603 | 1,325,186 |
Inventories, net | 1,464,181 | 1,429,199 |
Prepaid expenses and other assets | 106,672 | 86,667 |
Prepaid income taxes | 27,085 | 38,061 |
Total current assets | 3,373,002 | 3,205,989 |
PROPERTY, BUILDING AND EQUIPMENT, NET | 1,359,908 | 1,391,967 |
DEFERRED INCOME TAXES | 27,619 | 22,362 |
GOODWILL | 535,121 | 543,903 |
INTANGIBLES, NET | 533,641 | 569,115 |
OTHER ASSETS | 75,281 | 70,918 |
TOTAL ASSETS | 5,904,572 | 5,804,254 |
CURRENT LIABILITIES | ||
Short-term debt | 54,222 | 55,603 |
Current maturities of long-term debt | 30,172 | 38,709 |
Trade accounts payable | 735,266 | 731,582 |
Accrued compensation and benefits | 234,791 | 254,560 |
Accrued contributions to employees’ profit sharing plans | 59,375 | 92,682 |
Accrued expenses | 272,238 | 313,766 |
Income taxes payable | 38,431 | 19,759 |
Total current liabilities | 1,424,495 | 1,506,661 |
LONG-TERM DEBT (less current maturities) | 2,210,358 | 2,248,036 |
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES | 117,209 | 111,710 |
EMPLOYMENT-RELATED AND OTHER NON-CURRENT LIABILITIES | 102,241 | 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 | 1,079,045 | 1,040,493 |
Retained earnings | 7,724,635 | 7,405,192 |
Accumulated other comprehensive losses | (167,109) | (134,674) |
Treasury stock, at cost – 53,525,404 and 53,330,356 shares, respectively | (6,797,280) | (6,675,709) |
Total W.W. Grainger, Inc. shareholders’ equity | 1,894,121 | 1,690,132 |
Noncontrolling interest | 156,148 | 137,601 |
Total shareholders' equity | 2,050,269 | 1,827,733 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,904,572 | $ 5,804,254 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 26,560 | $ 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 | 53,525,404 | 53,330,356 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 488,528 | $ 289,812 |
Provision for losses on accounts receivable | 3,618 | 12,769 |
Deferred income taxes and tax uncertainties | 3,076 | (7,339) |
Depreciation and amortization | 127,731 | 128,195 |
Net (gains) losses from sales of assets and non-cash charges | (14,131) | 12,537 |
Stock-based compensation | 27,833 | 20,030 |
Losses from equity method investment | 14,540 | 14,495 |
Change in operating assets and liabilities: | ||
Accounts receivable | (148,148) | (136,844) |
Inventories | (44,340) | 29,936 |
Prepaid expenses and other assets | (25,151) | (24,232) |
Trade accounts payable | 5,425 | 36,817 |
Other current liabilities | (60,089) | (18,989) |
Current income taxes payable, net | 28,544 | 6,360 |
Accrued employment-related benefits cost | (13,605) | 3,655 |
Other, net | 1,008 | 4,976 |
Net cash provided by operating activities | 394,839 | 372,178 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, buildings and equipment and intangibles | (103,083) | (131,147) |
Proceeds from sales of assets | 43,280 | 69,758 |
Equity method investment | (13,986) | (13,300) |
Other, net | 0 | (146) |
Net cash used in investing activities | (73,789) | (74,835) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in commercial paper | 18 | (269,841) |
Borrowings under lines of credit | 22,144 | 30,374 |
Payments against lines of credit | (22,308) | (18,036) |
Proceeds from issuance of long-term debt | 0 | 415,672 |
Payments of long-term debt | (36,063) | (7,799) |
Proceeds from stock options exercised | 87,134 | 27,064 |
Payments for employee taxes withheld from stock awards | (29,026) | (16,719) |
Purchase of treasury stock | (200,878) | (313,562) |
Cash dividends paid | (155,132) | (151,637) |
Other, net | 2,740 | 0 |
Net cash used in financing activities | (331,371) | (304,484) |
Exchange rate effect on cash and cash equivalents | (4,094) | 8,060 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (14,415) | 919 |
Cash and cash equivalents at beginning of year | 326,876 | 274,146 |
Cash and cash equivalents at end of period | $ 312,461 | $ 275,065 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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 in this report. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (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 has evaluated the provisions of the new standards and is in the process of assessing their impact on financial statements and disclosures, information systems and business processes. 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 (ASU 2017-07) . 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 three and six months ended June 30, 2017 and prospectively, after the effective date. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component is applied prospectively. The impact of the ASU for the three and six months ended June 30, 2017 was an increase of $ 3.0 million and $ 6.0 million, respectively, in Selling, general and administrative expenses (SG&A) offset by a reduction in Total other expense, net of $ 3.0 million and $ 6.0 million, respectively, related to the reclassification of interest cost, expected return on plan assets and amortization of unrecognized gains and prior service credits. See Note 8 to the 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 has evaluated the provisions of this standard and is in the process of assessing the amount to reclassify from Accumulated other comprehensive losses to Retained earnings and early adoption. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 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, whereby 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 and six months ended June 30, 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 June 30, 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 are accounted for as Net sales and shipping and handling costs are accounted for in Cost of goods sold. 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 returns were approximately $ 26 million and $ 28 million as of June 30, 2018 and December 31, 2017 , respectively, and are reported as a reduction of Accounts receivable, net. Total accrued sales incentives were approximately $ 52 million and $ 55 million as of June 30, 2018 and December 31, 2017 , respectively, and are reported as part of Accrued expenses. Disaggregation of Revenues Grainger serves a large number of customers in diverse industries, which are subject to different economic and market specific 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 market specific factors. The following table presents the Company's percentage of revenue by reportable segment and by major customer industry for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 U.S. Canada Total Company (2) Government 19 % 5 % 14 % Heavy Manufacturing 19 % 21 % 18 % Light Manufacturing 13 % 6 % 11 % Transportation 5 % 7 % 5 % Commercial 16 % 10 % 13 % Retail/Wholesale 8 % 4 % 7 % Contractors 10 % 11 % 8 % Natural Resources 3 % 33 % 4 % Other 7 % 3 % 20 % (1 ) Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 72 % 6 % 100 % Six Months Ended June 30, 2018 U.S. Canada Total Company (2) Government 18 % 6 % 14 % Heavy Manufacturing 20 % 20 % 18 % 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 % 32 % 4 % Other 7 % 3 % 20 % (1 ) Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 72 % 6 % 100 % (1) Other category primarily includes revenue from individual customers not aligned to any industry segment, including small businesses and consumers and intersegment net sales. (2) Total Company includes other businesses, which include the Company's single channel businesses and operations in Europe, Asia and Latin America and account for approximately 22% of revenue for the three and six months ended June 30, 2018. Cost of Goods Sold Cost of goods sold included products and product-related costs, vendor consideration, shipping and handling costs and service costs. |
PROPERTY, BUILDINGS AND EQUIPME
PROPERTY, BUILDINGS AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, BUILDINGS AND EQUIPMENT | PROPERTY, BUILDINGS AND EQUIPMENT Property, buildings and equipment consisted of the following (in thousands of dollars): As of June 30, 2018 December 31, 2017 Land $ 339,010 $ 348,739 Building, structures and improvements 1,335,320 1,342,508 Furniture, fixtures, machinery and equipment 1,751,864 1,753,413 Property, buildings and equipment 3,426,194 $ 3,444,660 Less: Accumulated depreciation and amortization 2,066,286 2,052,693 Property, buildings and equipment, net $ 1,359,908 $ 1,391,967 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 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 June 30, 2018 and December 31, 2017 . 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 six months ended June 30, 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, an unfavorable economic environment and changes in market conditions or other factors may result in future impairments of goodwill and intangible assets. |
RESTRUCTURING
RESTRUCTURING | 6 Months Ended |
Jun. 30, 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 at the Company level (Unallocated expense) and to focus on profitability in Canada and other businesses. Restructuring costs, net, for the three and six months ended June 30, 2018 and 2017 are as follows (in thousands of dollars): Three Months Ended June 30, 2018 2017 Cost of goods sold Selling, general and administrative expenses Total Cost of goods sold Selling, general and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) U.S. $ 300 $ 5,686 $ (22 ) $ 5,964 $ — $ 5,359 $ (5,256 ) $ 103 Canada (34 ) 11,309 743 12,018 2,574 7,025 10,886 20,485 Other businesses 1,083 469 820 2,372 — 3,522 37,988 41,510 Unallocated expense — — (5,058 ) (5,058 ) — — — — Total $ 1,349 $ 17,464 $ (3,517 ) $ 15,296 $ 2,574 $ 15,906 $ 43,618 $ 62,098 Six Months Ended June 30, 2018 2017 Cost of goods sold Selling, general and administrative expenses Total Cost of goods sold Selling, general and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) U.S. $ 300 $ 8,680 $ (7,443 ) $ 1,537 $ — $ 8,542 $ (14,761 ) $ (6,219 ) Canada (422 ) 19,700 3,660 22,938 2,574 7,960 11,038 21,572 Other businesses 1,083 1,564 900 3,547 — 3,522 37,988 41,510 Unallocated expense — — (4,688 ) (4,688 ) — — — — Total $ 961 $ 29,944 $ (7,571 ) $ 23,334 $ 2,574 $ 20,024 $ 34,265 $ 56,863 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., Canada and corporate offices. Other charges (gains) in 2017 reflect charges related to the wind-down of the Colombia business, including $16 million of accumulated foreign currency translation losses reclassified from Accumulated other comprehensive losses to SG&A in Other businesses. The following summarizes the restructuring activity for the six months ended June 30, 2018 (in thousands of dollars): Current asset write-downs Property, buildings and equipment write-downs and disposals Current liabilities Involuntary employee termination costs Lease termination costs Other costs Total Balances as of December 31, 2017 $ 13,101 $ 741 50,289 $ 4,893 $ 12,764 $ 81,788 Restructuring costs, net of (gains) 3,958 (11,893 ) 29,945 2,031 (707 ) 23,334 Cash (paid) received (844 ) 13,118 (28,594 ) (2,466 ) (1,425 ) (20,211 ) Non-cash, translation and other (10,843 ) (1,315 ) (1,030 ) (1,578 ) (2,195 ) (16,961 ) Balances as of June 30, 2018 $ 5,372 $ 651 $ 50,610 $ 2,880 $ 8,437 $ 67,950 The cumulative amounts incurred to date and expected through the end of 2019 (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 U.S. $ 63,936 $ 5,888 Canada 81,405 8,901 Other businesses 64,263 1,485 Unallocated expense 14,852 — Total $ 224,456 $ 16,274 |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT Short-term debt consisted of outstanding lines of credit. Long-term debt consisted of the following (in thousands of dollars): As of June 30, 2018 As of December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000,000 $ 1,035,950 $ 1,000,000 $ 1,089,000 3.75% senior notes due 2046 400,000 363,140 400,000 384,200 4.20% senior notes due 2047 400,000 390,800 400,000 410,800 British pound term loan 184,899 184,899 194,574 194,574 Euro term loan 128,514 128,514 131,956 131,956 Canadian dollar revolving credit facility 91,394 91,394 99,388 99,388 Capital lease obligations and other 58,593 58,593 84,274 84,274 Subtotal 2,263,400 2,253,290 2,310,192 2,394,192 Less current maturities (30,172 ) (30,172 ) (38,709 ) (38,709 ) Debt issuance costs and discounts (22,870 ) (22,870 ) (23,447 ) (23,447 ) Long-term debt (less current maturities) $ 2,210,358 $ 2,200,248 $ 2,248,036 $ 2,332,036 The estimated fair value of the Company’s senior notes was based on available external pricing data and current market rates for similar debt instruments, among other factors, which are classified as level 2 inputs within the fair value hierarchy. The carrying value of other long-term debt approximates fair value due to their variable interest rates. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
EMPLOYEE BENEFITS | 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, which moved 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 benefits 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Selling, general and administrative expenses Service cost $ 1,629 $ 1,897 $ 3,258 $ 3,794 Other income (expense) Interest cost 1,712 2,148 3,424 4,297 Expected return on assets (3,315 ) (2,857 ) (6,630 ) (5,714 ) Amortization of unrecognized gains (840 ) (656 ) (1,680 ) (1,311 ) Amortization of prior service credits (2,424 ) (1,622 ) (4,848 ) (3,244 ) Net periodic benefit $ (3,238 ) $ (1,090 ) $ (6,476 ) $ (2,178 ) 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 six months ended June 30, 2018 . |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 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 June 30, 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 December 31, 2017. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net earnings attributable to W.W. Grainger, Inc. as reported $ 236,981 $ 97,921 $ 468,516 $ 272,665 Distributed earnings available to participating securities (345 ) (427 ) (956 ) (973 ) Undistributed earnings available to participating securities (1,473 ) (217 ) (2,861 ) (1,159 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 235,163 97,277 464,699 270,533 Undistributed earnings allocated to participating securities 1,473 217 2,861 1,159 Undistributed earnings reallocated to participating securities (1,462 ) (216 ) (2,841 ) (1,152 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 235,174 $ 97,278 $ 464,719 $ 270,540 Denominator for basic earnings per share – weighted average shares 56,109,809 58,012,731 56,086,592 58,363,416 Effect of dilutive securities 442,835 274,581 392,053 377,846 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 56,552,644 58,287,312 56,478,645 58,741,262 Earnings per share two-class method Basic $ 4.19 $ 1.68 $ 8.29 $ 4.64 Diluted $ 4.16 $ 1.67 $ 8.23 $ 4.61 |
DIVIDEND
DIVIDEND | 6 Months Ended |
Jun. 30, 2018 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND On July 25, 2018 , the Company’s Board of Directors declared a quarterly dividend of $ 1.36 per share, payable September 1, 2018 , to shareholders of record on August 13, 2018 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 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), which is in the U.S. Other businesses include the Company's single channel businesses (Zoro and MonotaRO in Japan) and small operations in 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 June 30, 2018 U.S. Canada Other businesses Total Total net sales $ 2,175,106 $ 176,868 $ 622,153 $ 2,974,127 Intersegment net sales (112,725 ) (15 ) (1,175 ) (113,915 ) Net sales to external customers $ 2,062,381 $ 176,853 $ 620,978 $ 2,860,212 Segment operating earnings $ 349,713 $ (13,667 ) $ 40,899 $ 376,945 Three Months Ended June 30, 2017 U.S. Canada Other businesses Total Total net sales $ 1,999,153 $ 189,113 $ 526,560 $ 2,714,826 Intersegment net sales (98,507 ) 10 (1,060 ) (99,557 ) Net sales to external customers $ 1,900,646 $ 189,123 $ 525,500 $ 2,615,269 Segment operating earnings $ 309,460 $ (27,727 ) $ (14,222 ) $ 267,511 Six Months Ended June 30, 2018 U.S. Canada Other businesses Total Total net sales $ 4,282,792 $ 358,633 $ 1,210,245 $ 5,851,670 Intersegment net sales (222,906 ) (33 ) (2,118 ) (225,057 ) Net sales to external customers $ 4,059,886 $ 358,600 $ 1,208,127 $ 5,626,613 Segment operating earnings $ 706,217 $ (33,824 ) $ 77,321 $ 749,714 Six Months Ended June 30, 2017 U.S. Canada Other businesses Total Total net sales $ 3,952,597 $ 375,254 $ 1,023,967 $ 5,351,818 Intersegment net sales (193,579 ) (3 ) (1,838 ) (195,420 ) Net sales to external customers $ 3,759,018 $ 375,251 $ 1,022,129 $ 5,156,398 Segment operating earnings $ 619,102 $ (44,456 ) $ 17,285 $ 591,931 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Operating earnings: Segment operating earnings $ 376,945 $ 267,511 $ 749,714 $ 591,931 Unallocated expenses and eliminations (32,959 ) (38,431 ) (70,898 ) (70,350 ) Total consolidated operating earnings $ 343,986 $ 229,080 $ 678,816 $ 521,581 Segment and total consolidated operating earnings for the three and six months ended June 30, 2017 were restated for the implementation of ASU 2017-07. See Note 2 to the Financial Statements. Unallocated expenses and eliminations primarily relate to the Company's headquarters support services and intercompany eliminations, which are not part of any reportable segment. Unallocated expenses are primarily comprised of employee compensation costs, depreciation and other administrative costs. The Company is a broad-line distributor of MRO supplies, and other related products. Products are regularly added and deleted from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed. Following are reconciliations of segment assets with the total consolidated assets per the financial statements (in thousands of dollars): U.S. Canada Other businesses Total Segment assets: June 30, 2018 $ 2,485,497 $ 221,965 $ 656,490 $ 3,363,952 December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819 As of Total assets: June 30, 2018 December 31, 2017 Assets for reportable segments 3,363,952 3,193,819 Other current and non-current assets 2,439,023 2,428,074 Unallocated assets 101,597 182,361 Total consolidated assets $ 5,904,572 $ 5,804,254 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 assets are primarily comprised of non-operating cash and cash equivalents, property, buildings and equipment, net, and certain prepaid expenses related to the Company's headquarters support services. |
CONTINGENCIES AND LEGAL MATTERS
CONTINGENCIES AND LEGAL MATTERS | 6 Months Ended |
Jun. 30, 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 and 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) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (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 has evaluated the provisions of the new standards and is in the process of assessing their impact on financial statements and disclosures, information systems and business processes. 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 (ASU 2017-07) . 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 three and six months ended June 30, 2017 and prospectively, after the effective date. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component is applied prospectively. The impact of the ASU for the three and six months ended June 30, 2017 was an increase of $ 3.0 million and $ 6.0 million, respectively, in Selling, general and administrative expenses (SG&A) offset by a reduction in Total other expense, net of $ 3.0 million and $ 6.0 million, respectively, related to the reclassification of interest cost, expected return on plan assets and amortization of unrecognized gains and prior service credits. See Note 8 to the 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 has evaluated the provisions of this standard and is in the process of assessing the amount to reclassify from Accumulated other comprehensive losses to Retained earnings and early adoption. |
REVENUE (Policies)
REVENUE (Policies) | 6 Months Ended |
Jun. 30, 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, whereby 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 and six months ended June 30, 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 June 30, 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 are accounted for as Net sales and shipping and handling costs are accounted for in Cost of goods sold. 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 INTANGIBLE23
GOODWILL AND OTHER INTANGIBLE ASSETS (Policies) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenues | The following table presents the Company's percentage of revenue by reportable segment and by major customer industry for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 U.S. Canada Total Company (2) Government 19 % 5 % 14 % Heavy Manufacturing 19 % 21 % 18 % Light Manufacturing 13 % 6 % 11 % Transportation 5 % 7 % 5 % Commercial 16 % 10 % 13 % Retail/Wholesale 8 % 4 % 7 % Contractors 10 % 11 % 8 % Natural Resources 3 % 33 % 4 % Other 7 % 3 % 20 % (1 ) Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 72 % 6 % 100 % Six Months Ended June 30, 2018 U.S. Canada Total Company (2) Government 18 % 6 % 14 % Heavy Manufacturing 20 % 20 % 18 % 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 % 32 % 4 % Other 7 % 3 % 20 % (1 ) Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 72 % 6 % 100 % (1) Other category primarily includes revenue from individual customers not aligned to any industry segment, including small businesses and consumers and intersegment net sales. (2) Total Company includes other businesses, which include the Company's single channel businesses and operations in Europe, Asia and Latin America and account for approximately 22% of revenue for the three and six months ended June 30, 2018. |
PROPERTY, BUILDINGS AND EQUIP25
PROPERTY, BUILDINGS AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |
PROPERTY, BUILDINGS AND EQUIPMENT | Property, buildings and equipment consisted of the following (in thousands of dollars): As of June 30, 2018 December 31, 2017 Land $ 339,010 $ 348,739 Building, structures and improvements 1,335,320 1,342,508 Furniture, fixtures, machinery and equipment 1,751,864 1,753,413 Property, buildings and equipment 3,426,194 $ 3,444,660 Less: Accumulated depreciation and amortization 2,066,286 2,052,693 Property, buildings and equipment, net $ 1,359,908 $ 1,391,967 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 6 Months Ended |
Jun. 30, 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 2019 (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 U.S. $ 63,936 $ 5,888 Canada 81,405 8,901 Other businesses 64,263 1,485 Unallocated expense 14,852 — Total $ 224,456 $ 16,274 Restructuring costs, net, for the three and six months ended June 30, 2018 and 2017 are as follows (in thousands of dollars): Three Months Ended June 30, 2018 2017 Cost of goods sold Selling, general and administrative expenses Total Cost of goods sold Selling, general and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) U.S. $ 300 $ 5,686 $ (22 ) $ 5,964 $ — $ 5,359 $ (5,256 ) $ 103 Canada (34 ) 11,309 743 12,018 2,574 7,025 10,886 20,485 Other businesses 1,083 469 820 2,372 — 3,522 37,988 41,510 Unallocated expense — — (5,058 ) (5,058 ) — — — — Total $ 1,349 $ 17,464 $ (3,517 ) $ 15,296 $ 2,574 $ 15,906 $ 43,618 $ 62,098 Six Months Ended June 30, 2018 2017 Cost of goods sold Selling, general and administrative expenses Total Cost of goods sold Selling, general and administrative expenses Total Involuntary employee termination costs Other charges (gains) Involuntary employee termination costs Other charges (gains) U.S. $ 300 $ 8,680 $ (7,443 ) $ 1,537 $ — $ 8,542 $ (14,761 ) $ (6,219 ) Canada (422 ) 19,700 3,660 22,938 2,574 7,960 11,038 21,572 Other businesses 1,083 1,564 900 3,547 — 3,522 37,988 41,510 Unallocated expense — — (4,688 ) (4,688 ) — — — — Total $ 961 $ 29,944 $ (7,571 ) $ 23,334 $ 2,574 $ 20,024 $ 34,265 $ 56,863 |
Summary Of Restructuring Reserve Activity | The following summarizes the restructuring activity for the six months ended June 30, 2018 (in thousands of dollars): Current asset write-downs Property, buildings and equipment write-downs and disposals Current liabilities Involuntary employee termination costs Lease termination costs Other costs Total Balances as of December 31, 2017 $ 13,101 $ 741 50,289 $ 4,893 $ 12,764 $ 81,788 Restructuring costs, net of (gains) 3,958 (11,893 ) 29,945 2,031 (707 ) 23,334 Cash (paid) received (844 ) 13,118 (28,594 ) (2,466 ) (1,425 ) (20,211 ) Non-cash, translation and other (10,843 ) (1,315 ) (1,030 ) (1,578 ) (2,195 ) (16,961 ) Balances as of June 30, 2018 $ 5,372 $ 651 $ 50,610 $ 2,880 $ 8,437 $ 67,950 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt consisted of the following (in thousands of dollars): As of June 30, 2018 As of December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000,000 $ 1,035,950 $ 1,000,000 $ 1,089,000 3.75% senior notes due 2046 400,000 363,140 400,000 384,200 4.20% senior notes due 2047 400,000 390,800 400,000 410,800 British pound term loan 184,899 184,899 194,574 194,574 Euro term loan 128,514 128,514 131,956 131,956 Canadian dollar revolving credit facility 91,394 91,394 99,388 99,388 Capital lease obligations and other 58,593 58,593 84,274 84,274 Subtotal 2,263,400 2,253,290 2,310,192 2,394,192 Less current maturities (30,172 ) (30,172 ) (38,709 ) (38,709 ) Debt issuance costs and discounts (22,870 ) (22,870 ) (23,447 ) (23,447 ) Long-term debt (less current maturities) $ 2,210,358 $ 2,200,248 $ 2,248,036 $ 2,332,036 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Periodic Benefit Costs Charged to Operating Expenses | The net periodic benefits 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Selling, general and administrative expenses Service cost $ 1,629 $ 1,897 $ 3,258 $ 3,794 Other income (expense) Interest cost 1,712 2,148 3,424 4,297 Expected return on assets (3,315 ) (2,857 ) (6,630 ) (5,714 ) Amortization of unrecognized gains (840 ) (656 ) (1,680 ) (1,311 ) Amortization of prior service credits (2,424 ) (1,622 ) (4,848 ) (3,244 ) Net periodic benefit $ (3,238 ) $ (1,090 ) $ (6,476 ) $ (2,178 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net earnings attributable to W.W. Grainger, Inc. as reported $ 236,981 $ 97,921 $ 468,516 $ 272,665 Distributed earnings available to participating securities (345 ) (427 ) (956 ) (973 ) Undistributed earnings available to participating securities (1,473 ) (217 ) (2,861 ) (1,159 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 235,163 97,277 464,699 270,533 Undistributed earnings allocated to participating securities 1,473 217 2,861 1,159 Undistributed earnings reallocated to participating securities (1,462 ) (216 ) (2,841 ) (1,152 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 235,174 $ 97,278 $ 464,719 $ 270,540 Denominator for basic earnings per share – weighted average shares 56,109,809 58,012,731 56,086,592 58,363,416 Effect of dilutive securities 442,835 274,581 392,053 377,846 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 56,552,644 58,287,312 56,478,645 58,741,262 Earnings per share two-class method Basic $ 4.19 $ 1.68 $ 8.29 $ 4.64 Diluted $ 4.16 $ 1.67 $ 8.23 $ 4.61 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Results | Following is a summary of segment results (in thousands of dollars): Three Months Ended June 30, 2018 U.S. Canada Other businesses Total Total net sales $ 2,175,106 $ 176,868 $ 622,153 $ 2,974,127 Intersegment net sales (112,725 ) (15 ) (1,175 ) (113,915 ) Net sales to external customers $ 2,062,381 $ 176,853 $ 620,978 $ 2,860,212 Segment operating earnings $ 349,713 $ (13,667 ) $ 40,899 $ 376,945 Three Months Ended June 30, 2017 U.S. Canada Other businesses Total Total net sales $ 1,999,153 $ 189,113 $ 526,560 $ 2,714,826 Intersegment net sales (98,507 ) 10 (1,060 ) (99,557 ) Net sales to external customers $ 1,900,646 $ 189,123 $ 525,500 $ 2,615,269 Segment operating earnings $ 309,460 $ (27,727 ) $ (14,222 ) $ 267,511 Six Months Ended June 30, 2018 U.S. Canada Other businesses Total Total net sales $ 4,282,792 $ 358,633 $ 1,210,245 $ 5,851,670 Intersegment net sales (222,906 ) (33 ) (2,118 ) (225,057 ) Net sales to external customers $ 4,059,886 $ 358,600 $ 1,208,127 $ 5,626,613 Segment operating earnings $ 706,217 $ (33,824 ) $ 77,321 $ 749,714 Six Months Ended June 30, 2017 U.S. Canada Other businesses Total Total net sales $ 3,952,597 $ 375,254 $ 1,023,967 $ 5,351,818 Intersegment net sales (193,579 ) (3 ) (1,838 ) (195,420 ) Net sales to external customers $ 3,759,018 $ 375,251 $ 1,022,129 $ 5,156,398 Segment operating earnings $ 619,102 $ (44,456 ) $ 17,285 $ 591,931 |
Schedule of Reconciliation of Operating Earnings from Segment to Consolidated | Following are reconciliations of segment assets with the total consolidated assets per the financial statements (in thousands of dollars): U.S. Canada Other businesses Total Segment assets: June 30, 2018 $ 2,485,497 $ 221,965 $ 656,490 $ 3,363,952 December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819 |
Schedule of Reconciliation of Assets from Segment to Consolidated | Following are reconciliations of segment assets with the total consolidated assets per the financial statements (in thousands of dollars): U.S. Canada Other businesses Total Segment assets: June 30, 2018 $ 2,485,497 $ 221,965 $ 656,490 $ 3,363,952 December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819 As of Total assets: June 30, 2018 December 31, 2017 Assets for reportable segments 3,363,952 3,193,819 Other current and non-current assets 2,439,023 2,428,074 Unallocated assets 101,597 182,361 Total consolidated assets $ 5,904,572 $ 5,804,254 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Selling, general and administrative expenses | $ 766,955 | $ 810,876 | $ 1,523,884 | $ 1,537,567 |
Nonoperating Income (Expense) | $ 20,626 | 21,884 | $ 48,462 | 43,712 |
Accounting Standards Update 2017-07 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Selling, general and administrative expenses | 3,000 | 6,000 | ||
Nonoperating Income (Expense) | $ 3,000 | $ 6,000 |
REVENUE Narrative (Details)
REVENUE Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Accrued sales returns | $ 26 | $ 26 | $ 28 |
Accrued sales incentives | $ 52 | $ 52 | $ 55 |
Service Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percent of Total Company Revenue | 1.00% | 1.00% |
REVENUE (Details)
REVENUE (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 100.00% | 100.00% |
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue | 100.00% | 100.00% |
Government [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 14.00% | 14.00% |
Heavy Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 18.00% | 18.00% |
Light Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 11.00% | 11.00% |
Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 5.00% | 5.00% |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 13.00% | 13.00% |
Retail/Wholesale [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 7.00% | 7.00% |
Contractors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 8.00% | 8.00% |
Natural Resources [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 4.00% | 4.00% |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 20.00% | 20.00% |
Other Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percent of Total Company Revenue | 22.00% | 22.00% |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 100.00% | 100.00% |
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue | 72.00% | 72.00% |
United States [Member] | Government [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 19.00% | 18.00% |
United States [Member] | Heavy Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 19.00% | 20.00% |
United States [Member] | Light Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 13.00% | 13.00% |
United States [Member] | Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 5.00% | 5.00% |
United States [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 16.00% | 16.00% |
United States [Member] | Retail/Wholesale [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 8.00% | 8.00% |
United States [Member] | Contractors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 10.00% | 10.00% |
United States [Member] | Natural Resources [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 3.00% | 3.00% |
United States [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 7.00% | 7.00% |
Canada [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 100.00% | 100.00% |
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue | 6.00% | 6.00% |
Canada [Member] | Government [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 5.00% | 6.00% |
Canada [Member] | Heavy Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 21.00% | 20.00% |
Canada [Member] | Light Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 6.00% | 5.00% |
Canada [Member] | Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 7.00% | 8.00% |
Canada [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 10.00% | 10.00% |
Canada [Member] | Retail/Wholesale [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 4.00% | 4.00% |
Canada [Member] | Contractors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 11.00% | 12.00% |
Canada [Member] | Natural Resources [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 33.00% | 32.00% |
Canada [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 3.00% | 3.00% |
PROPERTY, BUILDINGS AND EQUIP34
PROPERTY, BUILDINGS AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | $ 3,426,194 | $ 3,444,660 |
Less: Accumulated depreciation and amortization | 2,066,286 | 2,052,693 |
PROPERTY, BUILDINGS AND EQUIPMENT, NET | 1,359,908 | 1,391,967 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | 339,010 | 348,739 |
Building, Structures and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | 1,335,320 | 1,342,508 |
Furniture, Fixtures, Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | $ 1,751,864 | $ 1,753,413 |
GOODWILL AND OTHER INTANGIBLE35
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Billions | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and intangible assets | $ 1.1 | $ 1.1 |
RESTRUCTURING - Schedule of Res
RESTRUCTURING - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | $ 1,349 | $ 2,574 | $ 961 | $ 2,574 | |
Involuntary employee termination costs | 17,464 | 15,906 | 29,944 | 20,024 | |
Other charges (gains) | (3,517) | 43,618 | (7,571) | 34,265 | |
Total | 15,296 | 62,098 | 23,334 | 56,863 | |
Accumulated foreign currency translations losses reclassified from Accumulated other comprehensive losses | $ 16,000 | ||||
Segments | United States [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | 300 | 0 | 300 | 0 | |
Involuntary employee termination costs | 5,686 | 5,359 | 8,680 | 8,542 | |
Other charges (gains) | (22) | (5,256) | (7,443) | (14,761) | |
Total | 5,964 | 103 | 1,537 | (6,219) | |
Segments | Canada [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | (34) | 2,574 | (422) | 2,574 | |
Involuntary employee termination costs | 11,309 | 7,025 | 19,700 | 7,960 | |
Other charges (gains) | 743 | 10,886 | 3,660 | 11,038 | |
Total | 12,018 | 20,485 | 22,938 | 21,572 | |
Segments | Other Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | 1,083 | 0 | 1,083 | 0 | |
Involuntary employee termination costs | 469 | 3,522 | 1,564 | 3,522 | |
Other charges (gains) | 820 | 37,988 | 900 | 37,988 | |
Total | 2,372 | 41,510 | 3,547 | 41,510 | |
Unallocated expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | 0 | 0 | 0 | 0 | |
Involuntary employee termination costs | 0 | 0 | 0 | 0 | |
Other charges (gains) | (5,058) | 0 | (4,688) | 0 | |
Total | $ (5,058) | $ 0 | $ (4,688) | $ 0 |
RESTRUCTURING - Summary Of Rest
RESTRUCTURING - Summary Of Restructuring Reserve Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Restructuring Reserve | |
Beginning balance | $ 81,788 |
Restructuring costs, net of (gains) | 23,334 |
Cash (paid) received | (20,211) |
Non-cash, translation and others | (16,961) |
Ending balance | 67,950 |
Current assets write-downs | |
Restructuring Reserve | |
Beginning balance | 13,101 |
Restructuring costs, net of (gains) | 3,958 |
Cash (paid) received | (844) |
Non-cash, translation and others | (10,843) |
Ending balance | 5,372 |
Fixed assets write-downs and disposals | |
Restructuring Reserve | |
Beginning balance | 741 |
Restructuring costs, net of (gains) | (11,893) |
Cash (paid) received | 13,118 |
Non-cash, translation and others | (1,315) |
Ending balance | 651 |
Involuntary employee termination costs | |
Restructuring Reserve | |
Beginning balance | 50,289 |
Restructuring costs, net of (gains) | 29,945 |
Cash (paid) received | (28,594) |
Non-cash, translation and others | (1,030) |
Ending balance | 50,610 |
Lease termination costs | |
Restructuring Reserve | |
Beginning balance | 4,893 |
Restructuring costs, net of (gains) | 2,031 |
Cash (paid) received | (2,466) |
Non-cash, translation and others | (1,578) |
Ending balance | 2,880 |
Other costs | |
Restructuring Reserve | |
Beginning balance | 12,764 |
Restructuring costs, net of (gains) | (707) |
Cash (paid) received | (1,425) |
Non-cash, translation and others | (2,195) |
Ending balance | $ 8,437 |
RESTRUCTURING - Schedule of Cum
RESTRUCTURING - Schedule of Cumulative Amounts Incurred to Date and Expected (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | $ 224,456 |
Additional amount expected | 16,274 |
Segments | United States [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 63,936 |
Additional amount expected | 5,888 |
Segments | Canada [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 81,405 |
Additional amount expected | 8,901 |
Segments | Other Segments [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 64,263 |
Additional amount expected | 1,485 |
Unallocated expense | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 14,852 |
Additional amount expected | $ 0 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations and other | $ 58,593 | $ 84,274 |
Capital lease obligations and other, fair value | 58,593 | 84,274 |
Long-term debt, gross | 2,263,400 | 2,310,192 |
Long-term debt, gross, fair value | 2,253,290 | 2,394,192 |
Less current maturities | (30,172) | (38,709) |
Less current maturities, fair value | (30,172) | (38,709) |
Debt issuance costs and discounts | (22,870) | (23,447) |
Debt issuance costs and discounts, fair value | (22,870) | (23,447) |
Long-term debt, excluding current maturities | 2,210,358 | 2,248,036 |
Long-term debt, excluding current maturities, , fair value | 2,200,248 | 2,332,036 |
British pound denominated term loan and revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 184,899 | 194,574 |
Long-term debt, fair value | 184,899 | 194,574 |
Euro denominated term loan and revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 128,514 | 131,956 |
Long-term debt, fair value | 128,514 | 131,956 |
Canadian dollar revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 91,394 | 99,388 |
Long-term debt, fair value | 91,394 | 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 | 1,035,950 | 1,089,000 |
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 | 363,140 | 384,200 |
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 | $ 390,800 | $ 410,800 |
EMPLOYEE BENEFITS - Schedule of
EMPLOYEE BENEFITS - Schedule of Net Periodic Benefit Costs Charged to Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||
Service cost | $ 1,629 | $ 1,897 | $ 3,258 | $ 3,794 |
Interest cost | 1,712 | 2,148 | 3,424 | 4,297 |
Expected return on assets | (3,315) | (2,857) | (6,630) | (5,714) |
Amortization of unrecognized gains | (840) | (656) | (1,680) | (1,311) |
Amortization of prior service credits | (2,424) | (1,622) | (4,848) | (3,244) |
Net periodic benefit | $ (3,238) | $ (1,090) | $ (6,476) | $ (2,178) |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to W.W. Grainger, Inc. as reported | $ 236,981 | $ 97,921 | $ 468,516 | $ 272,665 |
Distributed earnings available to participating securities | (345) | (427) | (956) | (973) |
Undistributed earnings available to participating securities | (1,473) | (217) | (2,861) | (1,159) |
Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders | 235,163 | 97,277 | 464,699 | 270,533 |
Undistributed earnings allocated to participating securities | 1,473 | 217 | 2,861 | 1,159 |
Undistributed earnings reallocated to participating securities | (1,462) | (216) | (2,841) | (1,152) |
Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders | $ 235,174 | $ 97,278 | $ 464,719 | $ 270,540 |
Denominator for basic earnings per share - weighted average shares (in shares) | 56,109,809 | 58,012,731 | 56,086,592 | 58,363,416 |
Effect of dilutive securities (in shares) | 442,835 | 274,581 | 392,053 | 377,846 |
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares) | 56,552,644 | 58,287,312 | 56,478,645 | 58,741,262 |
Basic (in dollars per share) | $ 4.19 | $ 1.68 | $ 8.29 | $ 4.64 |
Diluted (in dollars per share) | $ 4.16 | $ 1.67 | $ 8.23 | $ 4.61 |
DIVIDEND - Narrative (Details)
DIVIDEND - Narrative (Details) | Jul. 25, 2018$ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Dividend declared (in dollars per share) | $ 1.36 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | $ 5,904,572 | $ 5,904,572 | $ 5,804,254 | ||
Summarized Information | |||||
Net sales to external customers | 2,860,212 | $ 2,615,269 | 5,626,613 | $ 5,156,398 | |
Total consolidated operating earnings | 343,986 | 229,080 | 678,816 | 521,581 | |
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 2,485,497 | 2,485,497 | 2,309,734 | ||
Summarized Information | |||||
Net sales to external customers | 2,062,381 | 1,900,646 | 4,059,886 | 3,759,018 | |
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 221,965 | 221,965 | 278,633 | ||
Summarized Information | |||||
Net sales to external customers | 176,853 | 189,123 | 358,600 | 375,251 | |
Other Businesses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 656,490 | 656,490 | 605,452 | ||
Summarized Information | |||||
Net sales to external customers | 620,978 | 525,500 | 1,208,127 | 1,022,129 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 3,363,952 | 3,363,952 | $ 3,193,819 | ||
Summarized Information | |||||
Net sales to external customers | 2,974,127 | 2,714,826 | 5,851,670 | 5,351,818 | |
Total consolidated operating earnings | 376,945 | 267,511 | 749,714 | 591,931 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | United States [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 2,175,106 | 1,999,153 | 4,282,792 | 3,952,597 | |
Total consolidated operating earnings | 349,713 | 309,460 | 706,217 | 619,102 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Canada [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 176,868 | 189,113 | 358,633 | 375,254 | |
Total consolidated operating earnings | (13,667) | (27,727) | (33,824) | (44,456) | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 622,153 | 526,560 | 1,210,245 | 1,023,967 | |
Total consolidated operating earnings | 40,899 | (14,222) | 77,321 | 17,285 | |
Intersegment Eliminations [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (113,915) | (99,557) | (225,057) | (195,420) | |
Intersegment Eliminations [Member] | United States [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (112,725) | (98,507) | (222,906) | (193,579) | |
Intersegment Eliminations [Member] | Canada [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (15) | 10 | (33) | (3) | |
Intersegment Eliminations [Member] | Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | $ (1,175) | $ (1,060) | $ (2,118) | $ (1,838) |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Earnings from Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated operating earnings | $ 343,986 | $ 229,080 | $ 678,816 | $ 521,581 |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating earnings | 376,945 | 267,511 | 749,714 | 591,931 |
Eliminations and Unallocated in Consolidation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating earnings | $ (32,959) | $ (38,431) | $ (70,898) | $ (70,350) |
SEGMENT INFORMATION - Schedul46
SEGMENT INFORMATION - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | $ 5,904,572 | $ 5,804,254 |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 3,363,952 | 3,193,819 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 2,439,023 | 2,428,074 |
Eliminations and Unallocated in Consolidation [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 101,597 | 182,361 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 2,485,497 | 2,309,734 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 221,965 | 278,633 |
Other Businesses [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | $ 656,490 | $ 605,452 |