DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended |
Sep. 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 | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 56,320,463 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,831,429 | $ 2,635,999 | $ 8,458,042 | $ 7,792,397 |
Cost of goods sold | 1,752,194 | 1,618,819 | 5,176,107 | 4,716,069 |
Gross profit | 1,079,235 | 1,017,180 | 3,281,935 | 3,076,328 |
Selling, general and administrative expenses | 890,113 | 739,442 | 2,413,997 | 2,277,009 |
Operating earnings | 189,122 | 277,738 | 867,938 | 799,319 |
Other income (expense): | ||||
Interest income | 2,003 | 707 | 3,645 | 1,365 |
Interest expense | (22,353) | (23,790) | (69,942) | (64,971) |
Losses from equity method investment | (3,731) | (10,635) | (18,271) | (25,130) |
Other, net | 5,976 | 5,978 | 18,001 | 17,284 |
Total other expense, net | (18,105) | (27,740) | (66,567) | (71,452) |
Earnings before income taxes | 171,017 | 249,998 | 801,371 | 727,867 |
Income taxes | 55,972 | 79,182 | 197,798 | 267,239 |
Net earnings | 115,045 | 170,816 | 603,573 | 460,628 |
Less: Net earnings attributable to noncontrolling interest | 10,668 | 8,810 | 30,680 | 25,957 |
Net earnings attributable to W.W. Grainger, Inc. | $ 104,377 | $ 162,006 | $ 572,893 | $ 434,671 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.84 | $ 2.80 | $ 10.12 | $ 7.43 |
Diluted (in dollars per share) | $ 1.82 | $ 2.79 | $ 10.04 | $ 7.39 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 56,339,630 | 57,316,532 | 56,172,277 | 58,010,222 |
Diluted (in shares) | 56,803,857 | 57,521,348 | 56,588,530 | 58,329,925 |
Cash dividends paid per share (in dollars per share) | $ 1.36 | $ 1.28 | $ 4 | $ 3.78 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 115,045 | $ 170,816 | $ 603,573 | $ 460,628 |
Other comprehensive (losses) earnings: | ||||
Foreign currency translation adjustments | 213 | 24,563 | (25,142) | 100,409 |
Postretirement benefit plan re-measurement, net of tax expense $29,172 (see note 8) | 0 | 46,543 | 0 | 46,543 |
Postretirement benefit plan reclassification, net of tax benefit of $825, $962, $2,475 and $2,720, respectively | (2,440) | (1,540) | (7,317) | (4,338) |
Other | 1 | 1 | 23 | (11) |
Total other comprehensive (losses) earnings | (2,226) | 69,567 | (32,436) | 142,603 |
Comprehensive earnings, net of tax | 112,819 | 240,383 | 571,137 | 603,231 |
Less: Comprehensive earnings (losses) attributable to noncontrolling interest | ||||
Net earnings | 10,668 | 8,810 | 30,680 | 25,957 |
Foreign currency translation adjustments | (4,472) | (8) | (2,248) | 4,338 |
Comprehensive earnings attributable to noncontrolling interest | 6,196 | 8,802 | 28,432 | 30,295 |
Comprehensive earnings attributable to W.W. Grainger, Inc. | $ 106,623 | $ 231,581 | $ 542,705 | $ 572,936 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Postretirement benefit plan re-measurement, net of tax expense $29,172 (see note 8) | $ 0 | $ 29,172 | $ 0 | $ 29,172 |
Postretirement benefit plan reclassification, tax benefit | $ 825 | $ 962 | $ 2,475 | $ 2,720 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 516,850 | $ 326,876 |
Accounts receivable (less allowances for doubtful accounts of $27,336 and $29,267, respectively) | 1,481,300 | 1,325,186 |
Inventories, net | 1,473,117 | 1,429,199 |
Prepaid expenses and other assets | 93,586 | 86,667 |
Prepaid income taxes | 18,491 | 38,061 |
Total current assets | 3,583,344 | 3,205,989 |
PROPERTY, BUILDINGS AND EQUIPMENT, NET | 1,348,914 | 1,391,967 |
DEFERRED INCOME TAXES | 20,726 | 22,362 |
GOODWILL | 429,818 | 543,903 |
INTANGIBLES, NET | 479,521 | 569,115 |
OTHER ASSETS | 69,860 | 70,918 |
TOTAL ASSETS | 5,932,183 | 5,804,254 |
CURRENT LIABILITIES | ||
Short-term debt | 49,429 | 55,603 |
Current maturities of long-term debt | 36,973 | 38,709 |
Trade accounts payable | 730,215 | 731,582 |
Accrued compensation and benefits | 215,727 | 254,560 |
Accrued contributions to employees’ profit sharing plans | 93,509 | 92,682 |
Accrued expenses | 302,263 | 313,766 |
Income taxes payable | 39,216 | 19,759 |
Total current liabilities | 1,467,332 | 1,506,661 |
LONG-TERM DEBT (less current maturities) | 2,148,399 | 2,248,036 |
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES | 115,644 | 111,710 |
EMPLOYMENT-RELATED AND OTHER NON-CURRENT LIABILITIES | 100,754 | 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 | 1,124,831 | 1,040,493 |
Retained earnings | 7,751,677 | 7,405,192 |
Accumulated other comprehensive losses | (164,862) | (134,674) |
Treasury stock, at cost – 53,338,756 and 53,330,356 shares, respectively | (6,828,773) | (6,675,709) |
Total W.W. Grainger, Inc. shareholders’ equity | 1,937,703 | 1,690,132 |
Noncontrolling interest | 162,351 | 137,601 |
Total shareholders' equity | 2,100,054 | 1,827,733 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,932,183 | $ 5,804,254 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 27,336 | $ 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 | 53,338,756 | 53,330,356 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 603,573 | $ 460,628 |
Provision for losses on accounts receivable | 6,784 | 15,187 |
Deferred income taxes and tax uncertainties | 10,004 | (15,261) |
Depreciation and amortization | 191,602 | 194,338 |
Net gains from sales of assets and divestitures | (22,270) | (7,163) |
Impairment of goodwill, intangible and other assets | 142,155 | 18,459 |
Stock-based compensation | 36,241 | 27,152 |
Losses from equity method investment | 18,271 | 25,130 |
Change in operating assets and liabilities: | ||
Accounts receivable | (171,829) | (145,631) |
Inventories | (53,270) | 34,851 |
Prepaid expenses and other assets | (12,920) | (4,206) |
Trade accounts payable | 4,419 | 56,717 |
Other current liabilities | (36,377) | 29,643 |
Income taxes payable, net | 38,666 | 18,015 |
Accrued employment-related benefits cost | (18,408) | 4,306 |
Other, net | 6,363 | 8,713 |
Net cash provided by operating activities | 743,004 | 720,878 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, buildings and equipment and intangibles | (168,896) | (191,183) |
Proceeds from sales of assets and business divestitures | 75,558 | 110,421 |
Equity method investment | (11,875) | (22,430) |
Other, net | 0 | 3,554 |
Net cash used in investing activities | (105,213) | (99,638) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in commercial paper | 18 | (369,748) |
Borrowings under lines of credit | 23,782 | 33,931 |
Payments against lines of credit | (27,899) | (39,705) |
Proceeds from issuance of long-term debt | 185 | 424,020 |
Payments of long-term debt | (89,408) | (15,812) |
Proceeds from stock options exercised | 179,549 | 27,255 |
Payments for employee taxes withheld from stock awards | (11,381) | (17,546) |
Purchase of treasury stock | (282,746) | (435,983) |
Cash dividends paid | (232,289) | (225,504) |
Other, net | 2,747 | 0 |
Net cash used in financing activities | (437,442) | (619,092) |
Exchange rate effect on cash and cash equivalents | (10,375) | 8,281 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 189,974 | 10,429 |
Cash and cash equivalents at beginning of year | 326,876 | 274,146 |
Cash and cash equivalents at end of period | $ 516,850 | $ 284,575 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 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 U.S. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (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 nine months ended September 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 nine months ended September 30, 2017 was an increase of $ 3.4 million and $ 9.4 million, respectively, in Selling, general and administrative expenses (SG&A) offset by a reduction in Total other expense, net of $ 3.4 million and $ 9.4 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. In August 2018, the FASB issued ASU 2018-14, Retirement Benefits - Defined Benefit Plans - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU removes disclosures that are no longer considered cost beneficial, clarifies specific requirements of the disclosure and adds disclosure requirements identified as relevant to improve the effectiveness of the disclosures. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2020 and early adoption is permitted. The Company is evaluating the impact of this ASU. In September 2018, the FASB issued ASU 2018-15, I ntangibles - Goodwill and Other Internal Use Software (Subtopic 350-40) Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company has elected to early adopt prospectively and does not expect a material impact to the Company's Consolidated Financial Statements. LEASE ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, Leases as modified by subsequently issued ASUs 2018-01, 2018-10 and 2018-11 . The core principle of the 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. 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 elected not to early adopt these ASUs. The Company plans to elect the modified retrospective application with practical expedient to adopt the new guidance effective January 1, 2019. Grainger will record the right of use assets and corresponding liabilities and does not expect a material impact to the Company's Consolidated Financial Statements. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 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. The Company's sales arrangements generally 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 nine months ended September 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 September 30, 2018 and December 31, 2017 . Measurement The Company’s revenue is reported as Net sales and is measured at 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 $ 28 million as of both September 30, 2018 and December 31, 2017 , respectively, and are reported as a reduction of Accounts receivable, net. Total accrued sales incentives were approximately $ 63 million and $ 55 million as of September 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 nine months ended September 30, 2018 : Three Months Ended September 30, 2018 U.S. Canada Total Company (2) Government 20 % 5 % 15 % Heavy Manufacturing 19 % 20 % 18 % Light Manufacturing 13 % 6 % 11 % Transportation 5 % 8 % 5 % Commercial 16 % 9 % 13 % Retail/Wholesale 8 % 4 % 7 % Contractors 9 % 11 % 8 % Natural Resources 3 % 34 % 4 % Other (1) 7 % 3 % 19 % Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 73 % 5 % 100 % Nine Months Ended September 30, 2018 U.S. Canada Total Company (2) Government 19 % 6 % 14 % Heavy Manufacturing 19 % 20 % 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 (1) 7 % 3 % 20 % Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 73 % 6 % 100 % (1) Other category primarily includes revenue from individual customers not aligned to major 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% and 21% of revenue for the three and nine months ended September 30, 2018, respectively. Cost of Goods Sold Cost of goods sold includes products and product-related costs, vendor consideration, shipping and handling costs and service costs. |
PROPERTY, BUILDINGS AND EQUIPME
PROPERTY, BUILDINGS AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, BUILDINGS AND EQUIPMENT | PROPERTY, BUILDINGS AND EQUIPMENT Property, buildings and equipment consisting of the following (in thousands of dollars): As of September 30, 2018 December 31, 2017 Land $ 319,990 $ 348,739 Building, structures and improvements 1,339,754 1,342,508 Furniture, fixtures, machinery and equipment 1,781,459 1,753,413 Property, buildings and equipment $ 3,441,203 $ 3,444,660 Less: Accumulated depreciation and amortization 2,092,289 2,052,693 Property, buildings and equipment, net $ 1,348,914 $ 1,391,967 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The balances and changes in the carrying amount of Goodwill by segment, including cumulative goodwill impairment charges are as follows (in thousands of dollars): United States Canada Other businesses Total Balance at January 1, 2017 $ 202,020 $ 122,140 $ 202,990 $ 527,150 Divestiture (3,316 ) — — (3,316 ) Impairment (7,169 ) — — (7,169 ) Translation — 8,282 18,956 27,238 Balance at December 31, 2017 191,535 130,422 221,946 543,903 Divestiture — — — — Impairment — — (104,461 ) (104,461 ) Translation — (3,304 ) (6,320 ) (9,624 ) Balance at September 30, 2018 $ 191,535 $ 127,118 $ 111,165 $ 429,818 Cumulative goodwill impairment charges, December 31, 2017 $ 24,207 $ 32,265 $ 70,299 $ 126,771 Impairment — — 104,461 104,461 Cumulative goodwill impairment charges, September 30, 2018 $ 24,207 $ 32,265 $ 174,760 $ 231,232 The balances and changes in Intangible assets, net are as follows (in thousands of dollars ): September 30, 2018 December 31, 2017 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer lists and relationships 14.3 years $ 413,216 $ 199,645 $ 213,571 $ 430,026 $ 195,842 $ 234,184 Trademarks, trade names and other 14.5 years 24,073 14,945 9,128 25,886 16,054 9,832 Non-amortized trade names and other 99,172 — 99,172 137,491 — 137,491 Capitalized software 4.2 years 652,501 494,851 157,650 632,431 444,823 187,608 Total intangible assets 8.2 years $ 1,188,962 $ 709,441 $ 479,521 $ 1,225,834 $ 656,719 $ 569,115 The Company tests goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Qualitative assessments of significant events or changes in circumstances are performed quarterly to determine the existence of impairment indicators and assess if it is more likely than not that the carrying value of these assets may not be recoverable and determine if quantitative impairment tests are necessary. Factors evaluated include declines in stock price, market capitalization and reporting units' historical and projected results, deteriorations of industry growth assumptions, declining economic indicators and other structural variables. For the quantitative impairment tests for goodwill, the Company compares reporting units’ carrying values with their fair values and records an impairment charge for any excess of carrying value over fair value. Reporting unit fair values are estimated primarily using the income-based discounted cash flow (DCF) method. Value indicators from a market-based approach are used to evaluate overall reasonableness. The DCF method incorporates various assumptions including the amount and timing of reporting unit future expected cash flows, including revenues, gross margins, operating expenses, capital expenditures and working capital based on reporting units’ budgets, long-range strategic plans and other estimates, plus a terminal value that estimates the perpetual growth for the reporting units. Estimates of market-participant risk-adjusted weighted average cost of capital are used to discount reporting units’ future expected cash flows and terminal value to net present value. For the quantitative tests for indefinite-lived intangible assets, which are primarily trade names, the Company compares the assets' carrying values with their fair values and records an impairment charge for any excess of carrying value over fair value. Trade name fair values are estimated using the relief from royalty method, which estimates the expected royalty savings attributable to the ownership of the trade name asset. The key assumptions when valuing trade names are revenue, royalty rate and discount rate. For the quantitative tests for amortizable intangible assets, the Company first estimates the future undiscounted cash flows through the useful lives of the assets and compares them to the assets’ carrying value. If carrying values exceed future undiscounted cash flows, then a second step is performed whereas the assets’ fair value is estimated and an impairment charge is recorded for any excess of carrying value over fair value. Third Quarter 2018 Qualitative Tests During the quarter ended September 30, 2018, the Company performed qualitative goodwill and intangible asset assessments. With the exception of the Cromwell reporting unit, the Company did not identify any significant events or changes in circumstances that indicated the existence of impairment indicators, and as such quantitative impairment tests were not required. However, changes in assumptions, judgments and estimates regarding reporting unit performance and structural economic conditions may have a significant impact on the fair value of reporting units and intangible assets in the future. If future earnings and cash flow projections are not achieved or structural economic conditions are unfavorable, future impairments of goodwill or intangible assets could result. Cromwell Goodwill and Intangible Assets The operating performance of the Cromwell reporting unit has deteriorated from the second quarter of 2018 and the Company lowered its short-term forecasts and long-term outlook projections. These factors, combined with sustained economic uncertainty in the U.K market and higher interest rates, led the Company to conclude that it was more likely than not that the carrying value of Cromwell’s goodwill and intangible assets may not be recoverable. Accordingly, quantitative tests were performed during the quarter ended September 30, 2018. In the quantitative test for goodwill performed in 2017, the fair value of the Cromwell reporting unit exceeded its carrying value by 15% . During the third quarter 2018 test, the Company considered the impact of the prolonged softness and uncertainty in the U.K. market due to Brexit and other unfavorable structural economic conditions, as well as Cromwell’s underperformance compared to expectations, prior year quantitative test assumptions and future performance projections. The revised outlook and uncertainty beyond 2018 were factored into lower revenues, earnings and cash flow projections which, combined with an increase in the discount rate, resulted in the calculated fair value of the Cromwell reporting unit below its carrying value. Accordingly, during the quarter ended September 30, 2018, the Company recorded a full goodwill impairment charge of $105 million with no tax benefit due to the nondeductibility of goodwill in the relevant taxing jurisdictions. The revised revenue and gross margin projections also resulted in the reduction of royalty rate and value attributable to the Cromwell trade name for which the Company recorded a $34 million impairment charge during the same period. The cumulative indefinite-lived intangible impairment charge of $34 million was recorded in other businesses as of September 30, 2018 and there were none as of December 31, 2017. The goodwill and intangible asset impairment charges were recorded in SG&A. The Company also performed an impairment test on Cromwell’s intangible assets subject to amortization and long-lived assets using the undiscounted cash flows method and no impairment charge was required during the quarter ended September 30, 2018. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING RESERVES | RESTRUCTURING The Company continues to execute on 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 nine months ended September 30, 2018 and 2017 are as follows (in thousands of dollars): Three Months Ended September 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. $ 48 $ 3,453 $ (1 ) $ 3,500 $ (100 ) $ 10,917 $ (2,873 ) $ 7,944 Canada (189 ) 3,431 (4,123 ) (881 ) — 1,882 3,055 4,937 Other businesses — — 1,115 1,115 581 73 (864 ) (210 ) Total $ (141 ) $ 6,884 $ (3,009 ) $ 3,734 $ 481 $ 12,872 $ (682 ) $ 12,671 Nine Months Ended September 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. $ 348 $ 12,133 $ (7,444 ) $ 5,037 $ (100 ) $ 19,459 $ (17,634 ) $ 1,725 Canada (611 ) 23,131 (463 ) 22,057 2,574 9,842 14,093 26,509 Other businesses 1,083 1,564 2,015 4,662 581 3,595 37,124 41,300 Unallocated expense — — (4,688 ) (4,688 ) — — — — Total $ 820 $ 36,828 $ (10,580 ) $ 27,068 $ 3,055 $ 32,896 $ 33,583 $ 69,534 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 nine months ended September 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) 4,201 (17,847 ) 36,828 3,456 430 27,068 Cash (paid) received, net (844 ) 45,020 (45,056 ) (3,886 ) (1,632 ) (6,398 ) Non-cash, translation and other (13,866 ) (27,293 ) (1,276 ) (1,729 ) (6,393 ) (50,557 ) Balances as of September 30, 2018 $ 2,592 $ 621 $ 40,785 $ 2,734 $ 5,169 $ 51,901 The cumulative amounts incurred to date since the inception of the program 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. $ 67,435 $ 2,339 Canada 80,525 6,749 Other businesses 65,378 545 Unallocated expense 14,852 — Total $ 228,190 $ 9,633 |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended |
Sep. 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 September 30, 2018 As of December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000,000 $ 1,046,760 $ 1,000,000 $ 1,089,000 3.75% senior notes due 2046 400,000 364,980 400,000 384,200 4.20% senior notes due 2047 400,000 392,540 400,000 410,800 British pound term loan 177,180 177,180 194,574 194,574 Euro term loan 127,689 127,689 131,956 131,956 Canadian dollar revolving credit facility 54,247 54,247 99,388 99,388 Capital lease obligations and other 48,867 48,867 84,274 84,274 Subtotal 2,207,983 2,212,263 2,310,192 2,394,192 Less current maturities (36,973 ) (36,973 ) (38,709 ) (38,709 ) Debt issuance costs and discounts (22,611 ) (22,611 ) (23,447 ) (23,447 ) Long-term debt (less current maturities) $ 2,148,399 $ 2,152,679 $ 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 | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Selling, general and administrative expenses Service cost $ 1,629 $ 1,856 $ 4,887 $ 5,649 Other income (expense) Interest cost 1,712 2,026 5,136 6,323 Expected return on assets (3,315 ) (2,957 ) (9,945 ) (8,670 ) Amortization of unrecognized gains (840 ) (609 ) (2,520 ) (1,919 ) Amortization of prior service credits (2,424 ) (1,893 ) (7,272 ) (5,139 ) Net periodic benefit $ (3,238 ) $ (1,577 ) $ (9,714 ) $ (3,756 ) 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 nine months ended September 30, 2018 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The reconciliation of income tax expense with federal income taxes at statutory rate follows (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Federal income tax (21% in 2018 and 35% in 2017) $ 35,914 $ 87,499 $ 168,288 $ 254,753 States income taxes, net of federal income tax benefit 4,817 5,996 22,572 17,458 Clean energy credit (2,897 ) (8,902 ) (13,575 ) (25,917 ) Foreign rate difference 1,895 2,152 8,880 6,265 Impairment and other charges 27,875 — 27,875 19,188 Stock compensation benefit (8,289 ) (575 ) (18,899 ) (8,314 ) Other, net (3,343 ) (6,988 ) 2,657 3,806 Income tax expense $ 55,972 $ 79,182 $ 197,798 $ 267,239 Effective tax rate 32.7 % 31.7 % 24.7 % 36.7 % 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 September 30, 2018 , the Company had not completed the analysis for all of the tax effects of the Tax Act and had not recorded any additional adjustments to the amounts recorded at December 31, 2017. The Company expects to complete the Tax Act estimates in the fourth quarter of 2018 and does not expect a material impact to the Consolidated Financial Statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net earnings attributable to W.W. Grainger, Inc. as reported $ 104,377 $ 162,006 $ 572,893 $ 434,671 Distributed earnings available to participating securities (640 ) (603 ) (1,596 ) (1,576 ) Undistributed earnings available to participating securities (243 ) (806 ) (3,108 ) (1,966 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 103,494 160,597 568,189 431,129 Undistributed earnings allocated to participating securities 243 806 3,108 1,966 Undistributed earnings reallocated to participating securities (242 ) (803 ) (3,086 ) (1,956 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 103,495 $ 160,600 $ 568,211 $ 431,139 Denominator for basic earnings per share – weighted average shares 56,339,630 57,316,532 56,172,277 58,010,222 Effect of dilutive securities 464,227 204,816 416,253 319,703 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 56,803,857 57,521,348 56,588,530 58,329,925 Earnings per share two-class method Basic $ 1.84 $ 2.80 $ 10.12 $ 7.43 Diluted $ 1.82 $ 2.79 $ 10.04 $ 7.39 |
DIVIDEND
DIVIDEND | 9 Months Ended |
Sep. 30, 2018 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND On October 31, 2018 , the Company’s Board of Directors declared a quarterly dividend of $ 1.36 per share, payable December 1, 2018 , to shareholders of record on November 12, 2018 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 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 September 30, 2018 U.S. Canada Other businesses Total Total net sales $ 2,188,324 $ 149,782 $ 609,317 $ 2,947,423 Intersegment net sales (115,007 ) (22 ) (965 ) (115,994 ) Net sales to external customers $ 2,073,317 $ 149,760 $ 608,352 $ 2,831,429 Segment operating earnings $ 326,273 $ (4,051 ) $ (99,831 ) $ 222,391 Three Months Ended September 30, 2017 U.S. Canada Other businesses Total Total net sales $ 2,015,968 $ 188,216 $ 536,927 $ 2,741,111 Intersegment net sales (103,667 ) (13 ) (1,432 ) (105,112 ) Net sales to external customers $ 1,912,301 $ 188,203 $ 535,495 $ 2,635,999 Segment operating earnings $ 294,603 $ (14,972 ) $ 26,892 $ 306,523 Nine Months Ended September 30, 2018 U.S. Canada Other businesses Total Total net sales $ 6,471,116 $ 508,414 $ 1,819,562 $ 8,799,092 Intersegment net sales (337,912 ) (55 ) (3,083 ) (341,050 ) Net sales to external customers $ 6,133,204 $ 508,359 $ 1,816,479 $ 8,458,042 Segment operating earnings $ 1,032,491 $ (37,875 ) $ (22,509 ) $ 972,107 Nine Months Ended September 30, 2017 U.S. Canada Other businesses Total Total net sales $ 5,968,565 $ 563,470 $ 1,560,894 $ 8,092,929 Intersegment net sales (297,247 ) (15 ) (3,270 ) (300,532 ) Net sales to external customers $ 5,671,318 $ 563,455 $ 1,557,624 $ 7,792,397 Segment operating earnings $ 913,705 $ (59,428 ) $ 44,177 $ 898,454 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Operating earnings: Segment operating earnings $ 222,391 $ 306,523 $ 972,107 $ 898,454 Unallocated expenses and eliminations (33,269 ) (28,785 ) (104,169 ) (99,135 ) Total consolidated operating earnings $ 189,122 $ 277,738 $ 867,938 $ 799,319 Segment and total consolidated operating earnings for the three and nine months ended September 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: September 30, 2018 $ 2,515,137 $ 213,525 $ 672,854 $ 3,401,516 December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819 As of Total assets: September 30, 2018 December 31, 2017 Assets for reportable segments 3,401,516 3,193,819 Other current and non-current assets 2,251,555 2,428,074 Unallocated assets 279,112 182,361 Total consolidated assets $ 5,932,183 $ 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 | 9 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (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 nine months ended September 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 nine months ended September 30, 2017 was an increase of $ 3.4 million and $ 9.4 million, respectively, in Selling, general and administrative expenses (SG&A) offset by a reduction in Total other expense, net of $ 3.4 million and $ 9.4 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. In August 2018, the FASB issued ASU 2018-14, Retirement Benefits - Defined Benefit Plans - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU removes disclosures that are no longer considered cost beneficial, clarifies specific requirements of the disclosure and adds disclosure requirements identified as relevant to improve the effectiveness of the disclosures. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2020 and early adoption is permitted. The Company is evaluating the impact of this ASU. In September 2018, the FASB issued ASU 2018-15, I ntangibles - Goodwill and Other Internal Use Software (Subtopic 350-40) Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company has elected to early adopt prospectively and does not expect a material impact to the Company's Consolidated Financial Statements. LEASE ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, Leases as modified by subsequently issued ASUs 2018-01, 2018-10 and 2018-11 . The core principle of the 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. 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 elected not to early adopt these ASUs. The Company plans to elect the modified retrospective application with practical expedient to adopt the new guidance effective January 1, 2019. Grainger will record the right of use assets and corresponding liabilities and does not expect a material impact to the Company's Consolidated Financial Statements. |
REVENUE (Policies)
REVENUE (Policies) | 9 Months Ended |
Sep. 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. The Company's sales arrangements generally 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 nine months ended September 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 September 30, 2018 and December 31, 2017 . Measurement The Company’s revenue is reported as Net sales and is measured at 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 INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | The Company tests goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Qualitative assessments of significant events or changes in circumstances are performed quarterly to determine the existence of impairment indicators and assess if it is more likely than not that the carrying value of these assets may not be recoverable and determine if quantitative impairment tests are necessary. Factors evaluated include declines in stock price, market capitalization and reporting units' historical and projected results, deteriorations of industry growth assumptions, declining economic indicators and other structural variables. For the quantitative impairment tests for goodwill, the Company compares reporting units’ carrying values with their fair values and records an impairment charge for any excess of carrying value over fair value. Reporting unit fair values are estimated primarily using the income-based discounted cash flow (DCF) method. Value indicators from a market-based approach are used to evaluate overall reasonableness. The DCF method incorporates various assumptions including the amount and timing of reporting unit future expected cash flows, including revenues, gross margins, operating expenses, capital expenditures and working capital based on reporting units’ budgets, long-range strategic plans and other estimates, plus a terminal value that estimates the perpetual growth for the reporting units. Estimates of market-participant risk-adjusted weighted average cost of capital are used to discount reporting units’ future expected cash flows and terminal value to net present value. For the quantitative tests for indefinite-lived intangible assets, which are primarily trade names, the Company compares the assets' carrying values with their fair values and records an impairment charge for any excess of carrying value over fair value. Trade name fair values are estimated using the relief from royalty method, which estimates the expected royalty savings attributable to the ownership of the trade name asset. The key assumptions when valuing trade names are revenue, royalty rate and discount rate. For the quantitative tests for amortizable intangible assets, the Company first estimates the future undiscounted cash flows through the useful lives of the assets and compares them to the assets’ carrying value. If carrying values exceed future undiscounted cash flows, then a second step is performed whereas the assets’ fair value is estimated and an impairment charge is recorded for any excess of carrying value over fair value. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2018 : Three Months Ended September 30, 2018 U.S. Canada Total Company (2) Government 20 % 5 % 15 % Heavy Manufacturing 19 % 20 % 18 % Light Manufacturing 13 % 6 % 11 % Transportation 5 % 8 % 5 % Commercial 16 % 9 % 13 % Retail/Wholesale 8 % 4 % 7 % Contractors 9 % 11 % 8 % Natural Resources 3 % 34 % 4 % Other (1) 7 % 3 % 19 % Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 73 % 5 % 100 % Nine Months Ended September 30, 2018 U.S. Canada Total Company (2) Government 19 % 6 % 14 % Heavy Manufacturing 19 % 20 % 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 (1) 7 % 3 % 20 % Total net sales 100 % 100 % 100 % Percent of Total Company Revenue 73 % 6 % 100 % (1) Other category primarily includes revenue from individual customers not aligned to major 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% and 21% of revenue for the three and nine months ended September 30, 2018, respectively. |
PROPERTY, BUILDINGS AND EQUIP_2
PROPERTY, BUILDINGS AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |
PROPERTY, BUILDINGS AND EQUIPMENT | Property, buildings and equipment consisting of the following (in thousands of dollars): As of September 30, 2018 December 31, 2017 Land $ 319,990 $ 348,739 Building, structures and improvements 1,339,754 1,342,508 Furniture, fixtures, machinery and equipment 1,781,459 1,753,413 Property, buildings and equipment $ 3,441,203 $ 3,444,660 Less: Accumulated depreciation and amortization 2,092,289 2,052,693 Property, buildings and equipment, net $ 1,348,914 $ 1,391,967 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The balances and changes in the carrying amount of Goodwill by segment, including cumulative goodwill impairment charges are as follows (in thousands of dollars): United States Canada Other businesses Total Balance at January 1, 2017 $ 202,020 $ 122,140 $ 202,990 $ 527,150 Divestiture (3,316 ) — — (3,316 ) Impairment (7,169 ) — — (7,169 ) Translation — 8,282 18,956 27,238 Balance at December 31, 2017 191,535 130,422 221,946 543,903 Divestiture — — — — Impairment — — (104,461 ) (104,461 ) Translation — (3,304 ) (6,320 ) (9,624 ) Balance at September 30, 2018 $ 191,535 $ 127,118 $ 111,165 $ 429,818 Cumulative goodwill impairment charges, December 31, 2017 $ 24,207 $ 32,265 $ 70,299 $ 126,771 Impairment — — 104,461 104,461 Cumulative goodwill impairment charges, September 30, 2018 $ 24,207 $ 32,265 $ 174,760 $ 231,232 |
Schedule of Finite-Lived Intangible Assets By Major Class | The balances and changes in Intangible assets, net are as follows (in thousands of dollars ): September 30, 2018 December 31, 2017 Weighted average life Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer lists and relationships 14.3 years $ 413,216 $ 199,645 $ 213,571 $ 430,026 $ 195,842 $ 234,184 Trademarks, trade names and other 14.5 years 24,073 14,945 9,128 25,886 16,054 9,832 Non-amortized trade names and other 99,172 — 99,172 137,491 — 137,491 Capitalized software 4.2 years 652,501 494,851 157,650 632,431 444,823 187,608 Total intangible assets 8.2 years $ 1,188,962 $ 709,441 $ 479,521 $ 1,225,834 $ 656,719 $ 569,115 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs, Cumulative Amounts Incurred to Date and Expected | The cumulative amounts incurred to date since the inception of the program 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. $ 67,435 $ 2,339 Canada 80,525 6,749 Other businesses 65,378 545 Unallocated expense 14,852 — Total $ 228,190 $ 9,633 Restructuring costs, net, for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands of dollars): Three Months Ended September 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. $ 48 $ 3,453 $ (1 ) $ 3,500 $ (100 ) $ 10,917 $ (2,873 ) $ 7,944 Canada (189 ) 3,431 (4,123 ) (881 ) — 1,882 3,055 4,937 Other businesses — — 1,115 1,115 581 73 (864 ) (210 ) Total $ (141 ) $ 6,884 $ (3,009 ) $ 3,734 $ 481 $ 12,872 $ (682 ) $ 12,671 Nine Months Ended September 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. $ 348 $ 12,133 $ (7,444 ) $ 5,037 $ (100 ) $ 19,459 $ (17,634 ) $ 1,725 Canada (611 ) 23,131 (463 ) 22,057 2,574 9,842 14,093 26,509 Other businesses 1,083 1,564 2,015 4,662 581 3,595 37,124 41,300 Unallocated expense — — (4,688 ) (4,688 ) — — — — Total $ 820 $ 36,828 $ (10,580 ) $ 27,068 $ 3,055 $ 32,896 $ 33,583 $ 69,534 |
Summary Of Restructuring Reserve Activity | The following summarizes the restructuring activity for the nine months ended September 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) 4,201 (17,847 ) 36,828 3,456 430 27,068 Cash (paid) received, net (844 ) 45,020 (45,056 ) (3,886 ) (1,632 ) (6,398 ) Non-cash, translation and other (13,866 ) (27,293 ) (1,276 ) (1,729 ) (6,393 ) (50,557 ) Balances as of September 30, 2018 $ 2,592 $ 621 $ 40,785 $ 2,734 $ 5,169 $ 51,901 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt consisted of the following (in thousands of dollars): As of September 30, 2018 As of December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000,000 $ 1,046,760 $ 1,000,000 $ 1,089,000 3.75% senior notes due 2046 400,000 364,980 400,000 384,200 4.20% senior notes due 2047 400,000 392,540 400,000 410,800 British pound term loan 177,180 177,180 194,574 194,574 Euro term loan 127,689 127,689 131,956 131,956 Canadian dollar revolving credit facility 54,247 54,247 99,388 99,388 Capital lease obligations and other 48,867 48,867 84,274 84,274 Subtotal 2,207,983 2,212,263 2,310,192 2,394,192 Less current maturities (36,973 ) (36,973 ) (38,709 ) (38,709 ) Debt issuance costs and discounts (22,611 ) (22,611 ) (23,447 ) (23,447 ) Long-term debt (less current maturities) $ 2,148,399 $ 2,152,679 $ 2,248,036 $ 2,332,036 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Selling, general and administrative expenses Service cost $ 1,629 $ 1,856 $ 4,887 $ 5,649 Other income (expense) Interest cost 1,712 2,026 5,136 6,323 Expected return on assets (3,315 ) (2,957 ) (9,945 ) (8,670 ) Amortization of unrecognized gains (840 ) (609 ) (2,520 ) (1,919 ) Amortization of prior service credits (2,424 ) (1,893 ) (7,272 ) (5,139 ) Net periodic benefit $ (3,238 ) $ (1,577 ) $ (9,714 ) $ (3,756 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax expense with federal income taxes at statutory rate follows (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Federal income tax (21% in 2018 and 35% in 2017) $ 35,914 $ 87,499 $ 168,288 $ 254,753 States income taxes, net of federal income tax benefit 4,817 5,996 22,572 17,458 Clean energy credit (2,897 ) (8,902 ) (13,575 ) (25,917 ) Foreign rate difference 1,895 2,152 8,880 6,265 Impairment and other charges 27,875 — 27,875 19,188 Stock compensation benefit (8,289 ) (575 ) (18,899 ) (8,314 ) Other, net (3,343 ) (6,988 ) 2,657 3,806 Income tax expense $ 55,972 $ 79,182 $ 197,798 $ 267,239 Effective tax rate 32.7 % 31.7 % 24.7 % 36.7 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net earnings attributable to W.W. Grainger, Inc. as reported $ 104,377 $ 162,006 $ 572,893 $ 434,671 Distributed earnings available to participating securities (640 ) (603 ) (1,596 ) (1,576 ) Undistributed earnings available to participating securities (243 ) (806 ) (3,108 ) (1,966 ) Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders 103,494 160,597 568,189 431,129 Undistributed earnings allocated to participating securities 243 806 3,108 1,966 Undistributed earnings reallocated to participating securities (242 ) (803 ) (3,086 ) (1,956 ) Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders $ 103,495 $ 160,600 $ 568,211 $ 431,139 Denominator for basic earnings per share – weighted average shares 56,339,630 57,316,532 56,172,277 58,010,222 Effect of dilutive securities 464,227 204,816 416,253 319,703 Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities 56,803,857 57,521,348 56,588,530 58,329,925 Earnings per share two-class method Basic $ 1.84 $ 2.80 $ 10.12 $ 7.43 Diluted $ 1.82 $ 2.79 $ 10.04 $ 7.39 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Results | Following is a summary of segment results (in thousands of dollars): Three Months Ended September 30, 2018 U.S. Canada Other businesses Total Total net sales $ 2,188,324 $ 149,782 $ 609,317 $ 2,947,423 Intersegment net sales (115,007 ) (22 ) (965 ) (115,994 ) Net sales to external customers $ 2,073,317 $ 149,760 $ 608,352 $ 2,831,429 Segment operating earnings $ 326,273 $ (4,051 ) $ (99,831 ) $ 222,391 Three Months Ended September 30, 2017 U.S. Canada Other businesses Total Total net sales $ 2,015,968 $ 188,216 $ 536,927 $ 2,741,111 Intersegment net sales (103,667 ) (13 ) (1,432 ) (105,112 ) Net sales to external customers $ 1,912,301 $ 188,203 $ 535,495 $ 2,635,999 Segment operating earnings $ 294,603 $ (14,972 ) $ 26,892 $ 306,523 Nine Months Ended September 30, 2018 U.S. Canada Other businesses Total Total net sales $ 6,471,116 $ 508,414 $ 1,819,562 $ 8,799,092 Intersegment net sales (337,912 ) (55 ) (3,083 ) (341,050 ) Net sales to external customers $ 6,133,204 $ 508,359 $ 1,816,479 $ 8,458,042 Segment operating earnings $ 1,032,491 $ (37,875 ) $ (22,509 ) $ 972,107 Nine Months Ended September 30, 2017 U.S. Canada Other businesses Total Total net sales $ 5,968,565 $ 563,470 $ 1,560,894 $ 8,092,929 Intersegment net sales (297,247 ) (15 ) (3,270 ) (300,532 ) Net sales to external customers $ 5,671,318 $ 563,455 $ 1,557,624 $ 7,792,397 Segment operating earnings $ 913,705 $ (59,428 ) $ 44,177 $ 898,454 |
Schedule of Reconciliation of Operating Earnings from Segment to Consolidated | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Operating earnings: Segment operating earnings $ 222,391 $ 306,523 $ 972,107 $ 898,454 Unallocated expenses and eliminations (33,269 ) (28,785 ) (104,169 ) (99,135 ) Total consolidated operating earnings $ 189,122 $ 277,738 $ 867,938 $ 799,319 |
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: September 30, 2018 $ 2,515,137 $ 213,525 $ 672,854 $ 3,401,516 December 31, 2017 $ 2,309,734 $ 278,633 $ 605,452 $ 3,193,819 As of Total assets: September 30, 2018 December 31, 2017 Assets for reportable segments 3,401,516 3,193,819 Other current and non-current assets 2,251,555 2,428,074 Unallocated assets 279,112 182,361 Total consolidated assets $ 5,932,183 $ 5,804,254 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Selling, general and administrative expenses | $ 890,113 | $ 739,442 | $ 2,413,997 | $ 2,277,009 |
Nonoperating Income (Expense) | $ 18,105 | 27,740 | $ 66,567 | 71,452 |
Accounting Standards Update 2017-07 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Selling, general and administrative expenses | 3,400 | 9,400 | ||
Nonoperating Income (Expense) | $ 3,400 | $ 9,400 |
REVENUE Narrative (Details)
REVENUE Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Accrued sales returns | $ 28 | $ 28 | $ 28 |
Accrued sales incentives | $ 63 | $ 63 | $ 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 | 9 Months Ended |
Sep. 30, 2018 | Sep. 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 | 15.00% | 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 | 19.00% | 20.00% |
Other Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percent of Total Company Revenue | 22.00% | 21.00% |
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 | 73.00% | 73.00% |
United States [Member] | Government [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 20.00% | 19.00% |
United States [Member] | Heavy Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 19.00% | 19.00% |
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 | 9.00% | 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 | 5.00% | 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 | 20.00% | 20.00% |
Canada [Member] | Light Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 6.00% | 6.00% |
Canada [Member] | Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 8.00% | 7.00% |
Canada [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 9.00% | 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% | 11.00% |
Canada [Member] | Natural Resources [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 34.00% | 33.00% |
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 EQUIP_3
PROPERTY, BUILDINGS AND EQUIPMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | $ 3,441,203 | $ 3,444,660 |
Less: Accumulated depreciation and amortization | 2,092,289 | 2,052,693 |
PROPERTY, BUILDINGS AND EQUIPMENT, NET | 1,348,914 | 1,391,967 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | 319,990 | 348,739 |
Building, Structures and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | 1,339,754 | 1,342,508 |
Furniture, Fixtures, Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | $ 1,781,459 | $ 1,753,413 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
GOODWILL | $ 429,818,000 | $ 543,903,000 | $ 527,150,000 |
Goodwill, Impairment Loss | 105,000,000 | ||
Other Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 34,000,000 | $ 0 | |
Reporting unit, percentage of fair value in excess of carrying amount | 15.00% | ||
Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 34,000,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS Balances and Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 543,903 | $ 527,150 |
Divestiture | 0 | (3,316) |
Impairment | (104,461) | (7,169) |
Translation | (9,624) | 27,238 |
Goodwill, ending balance | 429,818 | 543,903 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 126,771 | |
Cumulative goodwill impairment charges, ending balance | 231,232 | 126,771 |
United States [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 191,535 | 202,020 |
Divestiture | 0 | (3,316) |
Impairment | 0 | (7,169) |
Translation | 0 | 0 |
Goodwill, ending balance | 191,535 | 191,535 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 24,207 | |
Cumulative goodwill impairment charges, ending balance | 24,207 | 24,207 |
Canada [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 130,422 | 122,140 |
Divestiture | 0 | 0 |
Impairment | 0 | 0 |
Translation | (3,304) | 8,282 |
Goodwill, ending balance | 127,118 | 130,422 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 32,265 | |
Cumulative goodwill impairment charges, ending balance | 32,265 | 32,265 |
Other Businesses [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 221,946 | 202,990 |
Divestiture | 0 | 0 |
Impairment | (104,461) | 0 |
Translation | (6,320) | 18,956 |
Goodwill, ending balance | 111,165 | 221,946 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 70,299 | |
Cumulative goodwill impairment charges, ending balance | $ 174,760 | $ 70,299 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets included in Other assets and intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-lived intangible assets, accumulated amortization | $ 709,441 | $ 656,719 |
Total intangible assets, gross | 1,188,962 | 1,225,834 |
Total intangible assets, net | 479,521 | 569,115 |
Customer lists and relationships [Member] | ||
Finite-lived intangible assets, gross | 413,216 | 430,026 |
Finite-lived intangible assets, accumulated amortization | 199,645 | 195,842 |
Finite-lived intangible assets, net | 213,571 | 234,184 |
Trademarks, trade names and other [Member] | ||
Finite-lived intangible assets, gross | 24,073 | 25,886 |
Finite-lived intangible assets, accumulated amortization | 14,945 | 16,054 |
Finite-lived intangible assets, net | 9,128 | 9,832 |
Non-amortized trade names and other [Member] | ||
Indefinite-lived intangible assets, carrying amount | 99,172 | 137,491 |
Capitalized software [Member] | ||
Finite-lived intangible assets, gross | 652,501 | 632,431 |
Finite-lived intangible assets, accumulated amortization | 494,851 | 444,823 |
Finite-lived intangible assets, net | $ 157,650 | $ 187,608 |
Weighted average [Member] | ||
Finite-lived intangible assets, useful life | 8 years 2 months | |
Weighted average [Member] | Customer lists and relationships [Member] | ||
Finite-lived intangible assets, useful life | 14 years 4 months | |
Weighted average [Member] | Trademarks, trade names and other [Member] | ||
Finite-lived intangible assets, useful life | 14 years 6 months | |
Weighted average [Member] | Capitalized software [Member] | ||
Finite-lived intangible assets, useful life | 4 years 2 months |
RESTRUCTURING - Schedule of Res
RESTRUCTURING - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | $ (141) | $ 481 | $ 820 | $ 3,055 | |
Involuntary employee termination costs | 6,884 | 12,872 | 36,828 | 32,896 | |
Other charges (gains) | (3,009) | (682) | (10,580) | 33,583 | |
Total | 3,734 | 12,671 | 27,068 | 69,534 | |
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 | 48 | (100) | 348 | (100) | |
Involuntary employee termination costs | 3,453 | 10,917 | 12,133 | 19,459 | |
Other charges (gains) | (1) | (2,873) | (7,444) | (17,634) | |
Total | 3,500 | 7,944 | 5,037 | 1,725 | |
Segments | Canada [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | (189) | 0 | (611) | 2,574 | |
Involuntary employee termination costs | 3,431 | 1,882 | 23,131 | 9,842 | |
Other charges (gains) | (4,123) | 3,055 | (463) | 14,093 | |
Total | (881) | 4,937 | 22,057 | 26,509 | |
Segments | Other Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | 0 | 581 | 1,083 | 581 | |
Involuntary employee termination costs | 0 | 73 | 1,564 | 3,595 | |
Other charges (gains) | 1,115 | (864) | 2,015 | 37,124 | |
Total | $ 1,115 | $ (210) | 4,662 | 41,300 | |
Unallocated expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost of merchandise sold | 0 | 0 | |||
Involuntary employee termination costs | 0 | 0 | |||
Other charges (gains) | (4,688) | 0 | |||
Total | $ (4,688) | $ 0 |
RESTRUCTURING - Summary Of Rest
RESTRUCTURING - Summary Of Restructuring Reserve Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Restructuring Reserve | |
Beginning balance | $ 81,788 |
Restructuring costs, net of (gains) | 27,068 |
Cash (paid) received | (6,398) |
Non-cash, translation and others | (50,557) |
Ending balance | 51,901 |
Current assets write-downs | |
Restructuring Reserve | |
Beginning balance | 13,101 |
Restructuring costs, net of (gains) | 4,201 |
Cash (paid) received | (844) |
Non-cash, translation and others | (13,866) |
Ending balance | 2,592 |
Fixed assets write-downs and disposals | |
Restructuring Reserve | |
Beginning balance | 741 |
Restructuring costs, net of (gains) | (17,847) |
Cash (paid) received | 45,020 |
Non-cash, translation and others | (27,293) |
Ending balance | 621 |
Involuntary employee termination costs | |
Restructuring Reserve | |
Beginning balance | 50,289 |
Restructuring costs, net of (gains) | 36,828 |
Cash (paid) received | (45,056) |
Non-cash, translation and others | (1,276) |
Ending balance | 40,785 |
Lease termination costs | |
Restructuring Reserve | |
Beginning balance | 4,893 |
Restructuring costs, net of (gains) | 3,456 |
Cash (paid) received | (3,886) |
Non-cash, translation and others | (1,729) |
Ending balance | 2,734 |
Other costs | |
Restructuring Reserve | |
Beginning balance | 12,764 |
Restructuring costs, net of (gains) | 430 |
Cash (paid) received | (1,632) |
Non-cash, translation and others | (6,393) |
Ending balance | $ 5,169 |
RESTRUCTURING - Schedule of Cum
RESTRUCTURING - Schedule of Cumulative Amounts Incurred to Date and Expected (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | $ 228,190 |
Additional amount expected | 9,633 |
Segments | United States [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 67,435 |
Additional amount expected | 2,339 |
Segments | Canada [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 80,525 |
Additional amount expected | 6,749 |
Segments | Other Segments [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 65,378 |
Additional amount expected | 545 |
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 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations and other | $ 48,867 | $ 84,274 |
Capital lease obligations and other, fair value | 48,867 | 84,274 |
Long-term debt, gross | 2,207,983 | 2,310,192 |
Long-term debt, gross, fair value | 2,212,263 | 2,394,192 |
Less current maturities | (36,973) | (38,709) |
Less current maturities, fair value | (36,973) | (38,709) |
Debt issuance costs and discounts | (22,611) | (23,447) |
Debt issuance costs and discounts, fair value | (22,611) | (23,447) |
Long-term debt, excluding current maturities | 2,148,399 | 2,248,036 |
Long-term debt, excluding current maturities, , fair value | 2,152,679 | 2,332,036 |
British pound denominated term loan and revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 177,180 | 194,574 |
Long-term debt, fair value | 177,180 | 194,574 |
Euro denominated term loan and revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 127,689 | 131,956 |
Long-term debt, fair value | 127,689 | 131,956 |
Canadian dollar revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 54,247 | 99,388 |
Long-term debt, fair value | 54,247 | 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 | 1,046,760 | 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 | 364,980 | 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 | $ 392,540 | $ 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||
Service cost | $ 1,629 | $ 1,856 | $ 4,887 | $ 5,649 |
Interest cost | 1,712 | 2,026 | 5,136 | 6,323 |
Expected return on assets | (3,315) | (2,957) | (9,945) | (8,670) |
Amortization of unrecognized gains | (840) | (609) | (2,520) | (1,919) |
Amortization of prior service credits | (2,424) | (1,893) | (7,272) | (5,139) |
Net periodic benefit | $ (3,238) | $ (1,577) | $ (9,714) | $ (3,756) |
INCOME TAXES INCOME TAXES - Rec
INCOME TAXES INCOME TAXES - Reconciliation of Income Tax Expense with Federal Income Taxes at the Statutory Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Federal income tax (21% in 2018 and 35% in 2017) | $ 35,914 | $ 87,499 | $ 168,288 | $ 254,753 |
State income taxes, net of federal income tax benefit | 4,817 | 5,996 | 22,572 | 17,458 |
Clean energy credit | (2,897) | (8,902) | (13,575) | (25,917) |
Foreign rate difference | 1,895 | 2,152 | 8,880 | 6,265 |
Impairment and other charges | 27,875 | 0 | 27,875 | 19,188 |
Stock compensation benefit | (8,289) | (575) | (18,899) | (8,314) |
Other, net | (3,343) | (6,988) | 2,657 | 3,806 |
Income tax expense | $ 55,972 | $ 79,182 | $ 197,798 | $ 267,239 |
Effective tax rate | 32.70% | 31.70% | 24.70% | 36.70% |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Computation of Basic and Diluted Earnings per Share under Two-Class Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to W.W. Grainger, Inc. as reported | $ 104,377 | $ 162,006 | $ 572,893 | $ 434,671 |
Distributed earnings available to participating securities | (640) | (603) | (1,596) | (1,576) |
Undistributed earnings available to participating securities | (243) | (806) | (3,108) | (1,966) |
Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders | 103,494 | 160,597 | 568,189 | 431,129 |
Undistributed earnings allocated to participating securities | 243 | 806 | 3,108 | 1,966 |
Undistributed earnings reallocated to participating securities | (242) | (803) | (3,086) | (1,956) |
Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders | $ 103,495 | $ 160,600 | $ 568,211 | $ 431,139 |
Denominator for basic earnings per share - weighted average shares (in shares) | 56,339,630 | 57,316,532 | 56,172,277 | 58,010,222 |
Effect of dilutive securities (in shares) | 464,227 | 204,816 | 416,253 | 319,703 |
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares) | 56,803,857 | 57,521,348 | 56,588,530 | 58,329,925 |
Basic (in dollars per share) | $ 1.84 | $ 2.80 | $ 10.12 | $ 7.43 |
Diluted (in dollars per share) | $ 1.82 | $ 2.79 | $ 10.04 | $ 7.39 |
DIVIDEND - Narrative (Details)
DIVIDEND - Narrative (Details) | Oct. 31, 2018$ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Dividend declared (in dollars per share) | $ 1.36 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 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 | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | $ 5,932,183 | $ 5,932,183 | $ 5,804,254 | ||
Summarized Information | |||||
Net sales to external customers | 2,831,429 | $ 2,635,999 | 8,458,042 | $ 7,792,397 | |
Total consolidated operating earnings | 189,122 | 277,738 | 867,938 | 799,319 | |
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 2,515,137 | 2,515,137 | 2,309,734 | ||
Summarized Information | |||||
Net sales to external customers | 2,073,317 | 1,912,301 | 6,133,204 | 5,671,318 | |
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 213,525 | 213,525 | 278,633 | ||
Summarized Information | |||||
Net sales to external customers | 149,760 | 188,203 | 508,359 | 563,455 | |
Other Businesses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 672,854 | 672,854 | 605,452 | ||
Summarized Information | |||||
Net sales to external customers | 608,352 | 535,495 | 1,816,479 | 1,557,624 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 3,401,516 | 3,401,516 | $ 3,193,819 | ||
Summarized Information | |||||
Net sales to external customers | 2,947,423 | 2,741,111 | 8,799,092 | 8,092,929 | |
Total consolidated operating earnings | 222,391 | 306,523 | 972,107 | 898,454 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | United States [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 2,188,324 | 2,015,968 | 6,471,116 | 5,968,565 | |
Total consolidated operating earnings | 326,273 | 294,603 | 1,032,491 | 913,705 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Canada [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 149,782 | 188,216 | 508,414 | 563,470 | |
Total consolidated operating earnings | (4,051) | (14,972) | (37,875) | (59,428) | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 609,317 | 536,927 | 1,819,562 | 1,560,894 | |
Total consolidated operating earnings | (99,831) | 26,892 | (22,509) | 44,177 | |
Intersegment Eliminations [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (115,994) | (105,112) | (341,050) | (300,532) | |
Intersegment Eliminations [Member] | United States [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (115,007) | (103,667) | (337,912) | (297,247) | |
Intersegment Eliminations [Member] | Canada [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (22) | (13) | (55) | (15) | |
Intersegment Eliminations [Member] | Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | $ (965) | $ (1,432) | $ (3,083) | $ (3,270) |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Earnings from Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated operating earnings | $ 189,122 | $ 277,738 | $ 867,938 | $ 799,319 |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating earnings | 222,391 | 306,523 | 972,107 | 898,454 |
Eliminations and Unallocated in Consolidation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating earnings | $ (33,269) | $ (28,785) | $ (104,169) | $ (99,135) |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | $ 5,932,183 | $ 5,804,254 |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 3,401,516 | 3,193,819 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 2,251,555 | 2,428,074 |
Eliminations and Unallocated in Consolidation [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 279,112 | 182,361 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 2,515,137 | 2,309,734 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 213,525 | 278,633 |
Other Businesses [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | $ 672,854 | $ 605,452 |