COVER
COVER | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-5684 |
Entity Registrant Name | W.W. Grainger, Inc. |
Entity Incorporation, State or Country Code | IL |
Entity Tax Identification Number | 36-1150280 |
Entity Address, Address Line One | 100 Grainger Parkway, |
Entity Address, City or Town | Lake Forest, |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60045-5201 |
City Area Code | 847 |
Local Phone Number | 535-1000 |
Title of 12(b) Security | Common Stock |
Trading Symbol | GWW |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 53,866,254 |
Entity Central Index Key | 0000277135 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,947 | $ 2,831 | $ 8,639 | $ 8,458 |
Cost of goods sold | 1,848 | 1,752 | 5,324 | 5,176 |
Gross profit | 1,099 | 1,079 | 3,315 | 3,282 |
Selling, general and administrative expenses | 761 | 890 | 2,234 | 2,414 |
Operating earnings | 338 | 189 | 1,081 | 868 |
Other income (expense): | ||||
Interest income | 1 | 2 | 4 | 4 |
Interest expense | (21) | (22) | (64) | (70) |
Other, net | 4 | 2 | 18 | 0 |
Total other expense, net | (16) | (18) | (42) | (66) |
Earnings before income taxes | 322 | 171 | 1,039 | 802 |
Income taxes | 78 | 56 | 261 | 198 |
Net earnings | 244 | 115 | 778 | 604 |
Less: Net earnings attributable to noncontrolling interest | 11 | 11 | 32 | 31 |
Net earnings attributable to W.W. Grainger, Inc. | $ 233 | $ 104 | $ 746 | $ 573 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 4.27 | $ 1.84 | $ 13.46 | $ 10.12 |
Diluted (in dollars per share) | $ 4.25 | $ 1.82 | $ 13.40 | $ 10.04 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 54,125,184 | 56,339,630 | 54,962,699 | 56,172,277 |
Diluted (in shares) | 54,354,904 | 56,803,857 | 55,220,266 | 56,588,530 |
Cash dividends paid per share (in dollars per share) | $ 1.44 | $ 1.36 | $ 4.24 | $ 4 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 244 | $ 115 | $ 778 | $ 604 |
Other comprehensive earnings (losses): | ||||
Foreign currency translation adjustments | (17) | 0 | 6 | (25) |
Postretirement benefit plan reclassification, net of tax benefit of $1, $1, $3 and $2, respectively | (2) | (2) | (7) | (8) |
Total other comprehensive earnings (losses) | (19) | (2) | (1) | (33) |
Comprehensive earnings, net of tax | 225 | 113 | 777 | 571 |
Less: Comprehensive earnings (losses) attributable to noncontrolling interest | ||||
Net earnings | 11 | 11 | 32 | 31 |
Foreign currency translation adjustments | (1) | (5) | 2 | (3) |
Total comprehensive earnings (losses) attributable to noncontrolling interest | 10 | 6 | 34 | 28 |
Comprehensive earnings attributable to W.W. Grainger, Inc. | $ 215 | $ 107 | $ 743 | $ 543 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (PARENTHETICAL) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Postretirement benefit plan reclassification, net of tax benefit | $ 1 | $ 1 | $ 3 | $ 2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 286 | $ 538 |
Accounts receivable (less allowances for doubtful accounts of $22 and $25, respectively) | 1,495 | 1,385 |
Inventories | 1,520 | 1,541 |
Prepaid expenses and other assets | 86 | 83 |
Prepaid income taxes | 9 | 10 |
Total current assets | 3,396 | 3,557 |
PROPERTY, BUILDINGS AND EQUIPMENT, NET | 1,384 | 1,352 |
DEFERRED INCOME TAXES | 13 | 12 |
GOODWILL | 425 | 424 |
INTANGIBLES, NET | 422 | 460 |
OTHER ASSETS | 282 | 68 |
TOTAL ASSETS | 5,922 | 5,873 |
CURRENT LIABILITIES | ||
Short-term debt | 51 | 49 |
Current maturities of long-term debt | 219 | 81 |
Trade accounts payable | 723 | 678 |
Accrued compensation and benefits | 170 | 262 |
Accrued contributions to employees’ profit sharing plans | 70 | 133 |
Accrued expenses | 327 | 269 |
Income taxes payable | 12 | 29 |
Total current liabilities | 1,572 | 1,501 |
LONG-TERM DEBT (less current maturities) | 1,918 | 2,090 |
DEFERRED INCOME TAXES AND TAX UNCERTAINTIES | 120 | 103 |
OTHER NON-CURRENT LIABILITIES | 240 | 86 |
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 | 55 | 55 |
Additional contributed capital | 1,161 | 1,134 |
Retained earnings | 8,380 | 7,869 |
Accumulated other comprehensive losses | (174) | (171) |
Treasury stock, at cost – 55,792,965 and 53,796,859 shares, respectively | (7,551) | (6,966) |
Total W.W. Grainger, Inc. shareholders’ equity | 1,871 | 1,921 |
Noncontrolling interest | 201 | 172 |
Total shareholders' equity | 2,072 | 2,093 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,922 | $ 5,873 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 22 | $ 25 |
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 | 55,792,965 | 53,796,859 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 778 | $ 604 |
Provision for losses on accounts receivable | 7 | 7 |
Deferred income taxes and tax uncertainties | 19 | 10 |
Depreciation and amortization | 171 | 192 |
Net gains from sales of assets and divestitures | (5) | (22) |
Impairment of goodwill, intangible and other assets | 0 | 142 |
Stock-based compensation | 32 | 36 |
Losses from equity method investment | 0 | 18 |
Subtotal | 224 | 383 |
Change in operating assets and liabilities: | ||
Accounts receivable | (119) | (172) |
Inventories | 18 | (53) |
Prepaid expenses and other assets | (15) | (13) |
Trade accounts payable | 50 | 4 |
Accrued liabilities | (137) | (36) |
Income taxes, net | (16) | 39 |
Other non-current liabilities | (13) | (13) |
Subtotal | (232) | (244) |
Net cash provided by operating activities | 770 | 743 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, buildings, equipment and intangibles | (163) | (169) |
Proceeds from sales of assets | 16 | 76 |
Equity method proceeds (investment) | (12) | |
Equity method proceeds (investment) | 2 | |
Net cash used in investing activities | (145) | (105) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under lines of credit | 22 | 24 |
Payments against lines of credit | (18) | (28) |
Payments of long-term debt | (48) | (89) |
Proceeds from stock options exercised | 19 | 179 |
Payments for employee taxes withheld from stock awards | (10) | (11) |
Purchases of treasury stock | (600) | (283) |
Cash dividends paid | (242) | (232) |
Other, net | 2 | 3 |
Net cash used in financing activities | (875) | (437) |
Exchange rate effect on cash and cash equivalents | (2) | (11) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (252) | 190 |
Cash and cash equivalents at beginning of year | 538 | 327 |
Cash and cash equivalents at end of period | $ 286 | $ 517 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Contributed Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Earnings (Losses) | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2017 | $ 1,828 | $ 55 | $ 1,041 | $ 7,405 | $ (135) | $ (6,676) | $ 138 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 68 | 24 | 44 | ||||
Purchases of treasury stock | (160) | (160) | |||||
Net earnings | 241 | 232 | 9 | ||||
Other comprehensive (losses) earnings | 21 | 12 | 9 | ||||
Cash dividends paid | (73) | (73) | |||||
Ending balance at Mar. 31, 2018 | 1,925 | 55 | 1,065 | 7,564 | (123) | (6,792) | 156 |
Beginning balance at Dec. 31, 2017 | 1,828 | 55 | 1,041 | 7,405 | (135) | (6,676) | 138 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 604 | ||||||
Other comprehensive (losses) earnings | (33) | ||||||
Ending balance at Sep. 30, 2018 | 2,100 | 55 | 1,125 | 7,752 | (165) | (6,829) | 162 |
Beginning balance at Mar. 31, 2018 | 1,925 | 55 | 1,065 | 7,564 | (123) | (6,792) | 156 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 37 | 14 | 23 | ||||
Purchases of treasury stock | (28) | (28) | |||||
Net earnings | 248 | 237 | 11 | ||||
Other comprehensive (losses) earnings | (52) | (45) | (7) | ||||
Capital contribution | 2 | 2 | |||||
Cash dividends paid | (82) | (76) | (6) | ||||
Ending balance at Jun. 30, 2018 | 2,050 | 55 | 1,079 | 7,725 | (168) | (6,797) | 156 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 100 | 46 | 54 | ||||
Purchases of treasury stock | (86) | (86) | |||||
Net earnings | 115 | 104 | 11 | ||||
Other comprehensive (losses) earnings | (2) | 3 | (5) | ||||
Cash dividends paid | (77) | (77) | |||||
Ending balance at Sep. 30, 2018 | 2,100 | 55 | 1,125 | 7,752 | (165) | (6,829) | 162 |
Beginning balance at Dec. 31, 2018 | 2,093 | 55 | 1,134 | 7,869 | (171) | (6,966) | 172 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 6 | 3 | 3 | ||||
Purchases of treasury stock | (135) | (135) | |||||
Net earnings | 262 | 253 | 9 | ||||
Other comprehensive (losses) earnings | 1 | 3 | (2) | ||||
Capital contribution | 2 | 2 | |||||
Cash dividends paid | (77) | (77) | |||||
Ending balance at Mar. 31, 2019 | 2,152 | 55 | 1,137 | 8,045 | (168) | (7,098) | 181 |
Beginning balance at Dec. 31, 2018 | 2,093 | 55 | 1,134 | 7,869 | (171) | (6,966) | 172 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 778 | ||||||
Other comprehensive (losses) earnings | (1) | ||||||
Ending balance at Sep. 30, 2019 | 2,072 | 55 | 1,161 | 8,380 | (174) | (7,551) | 201 |
Beginning balance at Mar. 31, 2019 | 2,152 | 55 | 1,137 | 8,045 | (168) | (7,098) | 181 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 24 | 15 | 9 | ||||
Purchases of treasury stock | (265) | (265) | |||||
Net earnings | 272 | 260 | 12 | ||||
Other comprehensive (losses) earnings | 17 | 12 | 5 | ||||
Cash dividends paid | (86) | (79) | (7) | ||||
Ending balance at Jun. 30, 2019 | 2,114 | 55 | 1,152 | 8,226 | (156) | (7,354) | 191 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 12 | 9 | 3 | ||||
Purchases of treasury stock | (200) | (200) | |||||
Net earnings | 244 | 233 | 11 | ||||
Other comprehensive (losses) earnings | (19) | (18) | (1) | ||||
Cash dividends paid | (79) | (79) | |||||
Ending balance at Sep. 30, 2019 | $ 2,072 | $ 55 | $ 1,161 | $ 8,380 | $ (174) | $ (7,551) | $ 201 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY (PARENTHETICAL) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity (Parentheticals) [Abstract] | ||||
Cash dividends paid per share (in dollars per share) | $ 1.44 | $ 1.36 | $ 4.24 | $ 4 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
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) products and services with operations primarily in North America, Europe and Japan. 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 (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, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 28, 2019. The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America (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, 2019 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as modified by subsequently issued ASUs 2018-19, 2019-04 and 2019-05. This ASU requires estimating all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2019 and the Company plans to adopt this ASU prospectively. The Company is evaluating the impact of this ASU and does not expect a material impact to the Company's Financial Statements. On January 1, 2019, the Company adopted ASU 2016-02, Leases as modified subsequently by ASUs 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01(Topic 842). The core principle of these ASUs is to improve 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 Company utilized the simplified modified retrospective transition method that allowed for a cumulative-effect adjustment in the period of adoption, and did not restate prior periods. Additionally, the Company elected the practical expedients package permitted under the transition guidance. Adoption of the new standard resulted in the recording of right of use (ROU) assets and lease liabilities of approximately $208 million and $205 million , respectively as of January 1, 2019 related to operating and finance leases. Adoption of the standard did not materially impact the Company’s Financial Statements. See Note 5 to the Financial Statements. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates (SEC Update). This ASU clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning with the SEC's regulations, thereby eliminating redundancies and making the codification easier to apply. This ASU was effective immediately upon issuance and did not have a material impact on the Company's Financial Statements and related disclosures. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2019 | |
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. Total service revenue is not material and accounted for approximately 1% of the Company's revenue for the three and nine months ended September 30, 2019 and 2018, respectively. 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: Three Months Ended September 30, 2019 2018 U.S. Canada Total Company (2) U.S. Canada Total Company (2) Government 20 % 5 % 15 % 20 % 5 % 15 % Heavy Manufacturing 18 % 20 % 17 % 19 % 20 % 18 % Light Manufacturing 12 % 6 % 10 % 13 % 6 % 11 % Transportation 6 % 8 % 5 % 5 % 8 % 5 % Commercial 17 % 9 % 13 % 16 % 9 % 13 % Retail/Wholesale 9 % 4 % 7 % 8 % 4 % 7 % Contractors 9 % 11 % 8 % 9 % 11 % 8 % Natural Resources 3 % 33 % 4 % 3 % 34 % 4 % Other (1) 6 % 4 % 21 % 7 % 3 % 19 % Total net sales to external customers 100 % 100 % 100 % 100 % 100 % 100 % Percent of Total Company Revenue 73 % 4 % 100 % 73 % 5 % 100 % Nine Months Ended September 30, 2019 2018 U.S. Canada Total Company (2) U.S. Canada Total Company (2) Government 19 % 6 % 14 % 19 % 6 % 14 % Heavy Manufacturing 19 % 20 % 17 % 19 % 20 % 18 % Light Manufacturing 13 % 6 % 11 % 13 % 6 % 11 % Transportation 5 % 8 % 5 % 5 % 7 % 5 % Commercial 17 % 9 % 13 % 16 % 10 % 13 % Retail/Wholesale 8 % 4 % 7 % 8 % 4 % 7 % Contractors 10 % 11 % 8 % 10 % 11 % 8 % Natural Resources 3 % 32 % 4 % 3 % 33 % 4 % Other (1) 6 % 4 % 21 % 7 % 3 % 20 % Total net sales to external customers 100 % 100 % 100 % 100 % 100 % 100 % Percent of Total Company Revenue 73 % 5 % 100 % 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 endless assortment businesses and operations in Europe, Asia and Latin America and accounts for approximately 23% and 22% of revenue for the three months ended September 30, 2019 and 2018, respectively, and accounts for 22% and 21% of revenue for the nine months ended September 30, 2019 and 2018, respectively. Total accrued sales returns were approximately $ 26 million and $ 29 million as of September 30, 2019 and December 31, 2018, respectively and are reported as a reduction of Accounts receivable. Total accrued sales incentives were approximately $ 58 million and $ 62 million as of September 30, 2019 and December 31, 2018, respectively and are reported as part of Accrued expenses. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of September 30, 2019 and December 31, 2018. |
PROPERTY, BUILDINGS AND EQUIPME
PROPERTY, BUILDINGS AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, BUILDINGS AND EQUIPMENT | PROPERTY, BUILDINGS AND EQUIPMENT Property, buildings and equipment consisted of the following (in millions of dollars): As of September 30, 2019 December 31, 2018 Land $ 323 $ 318 Building, structures and improvements 1,329 1,338 Furniture, fixtures, machinery and equipment 1,799 1,785 Property, buildings and equipment $ 3,451 $ 3,441 Less: Accumulated depreciation and amortization 2,067 2,089 Property, buildings and equipment, net $ 1,384 $ 1,352 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain properties and buildings (including branches, warehouses, distribution centers and office space) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists mainly of operating leases which expire at various dates through 2036. Finance leases and service contracts with lease arrangements are not material and the following disclosures pertain to the Company’s operating leases. Many of the property and building lease agreements obligate the Company to pay real estate taxes, insurance and certain maintenance costs (hereinafter referred to as non-lease components). Certain of the Company’s lease arrangements contain renewal provisions from 1 to 30 years , exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with ROU assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses (SG&A). Information related to operating leases is as follows (in millions of dollars): As of September 30, 2019 ROU Assets Other assets $ 207 Operating lease liabilities Accrued expenses 54 Other non-current liabilities 159 Total operating lease liabilities $ 213 Nine Months Ended September 30, 2019 Weighted average remaining lease term 6 years Weighted average incremental borrowing rate 2.3 % Cash paid for operating leases $ 49 ROU assets obtained in exchange for operating lease obligations 15 Rent expense related to operating leases included in SG&A for the three and nine months ended September 30, 2019, was $19 million and $54 million, respectively. Maturities of operating lease liabilities as of September 30, 2019 (in millions of dollars) are as follows: Year Maturity of operating lease liabilities 2019 (remaining 3 months) $ 15 2020 57 2021 48 2022 37 2023 25 Thereafter 42 Total lease payments 224 Less interest (11 ) Present value of lease liabilities $ 213 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2019 | |
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 are as follows (in millions of dollars): United States Canada Other businesses Total Balance at January 1, 2018 $ 192 $ 130 $ 222 $ 544 Impairment — — (105 ) (105 ) Translation — (10 ) (5 ) (15 ) Balance at December 31, 2018 192 120 112 424 Translation — 3 (2 ) 1 Balance at September 30, 2019 $ 192 $ 123 $ 110 $ 425 The cumulative goodwill impairment charges by segment as of September 30, 2019 and December 31, 2018 are as follows (in millions of dollars): United States Canada Other businesses Total Cumulative goodwill impairment charges $ 24 $ 32 $ 176 $ 232 The balances and changes in Intangible assets, net are as follows (in millions of dollars ): September 30, 2019 December 31, 2018 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 $ 391 $ 212 $ 179 $ 410 $ 204 $ 206 Trademarks, trade names and other 13.8 years 36 20 16 24 15 9 Non-amortized trade names and other 96 — 96 99 — 99 Capitalized software 4.2 years 618 487 131 657 511 146 Total intangible assets 8.7 years $ 1,141 $ 719 $ 422 $ 1,190 $ 730 $ 460 Grainger tests reporting units' goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Accordingly, Grainger periodically performs qualitative assessments of significant events and circumstances such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors to determine the existence of impairment indicators and assess if it is more likely than not that the fair value of reporting units or intangible assets is less than their carrying value and if a quantitative impairment test is necessary. Grainger's qualitative assessment for the nine months ended September 30, 2019 did not indicate the presence of any impairment triggering events. Changes in assumptions regarding future performance, as well as the ability to execute on growth initiatives and productivity improvements, may have a significant impact on future cash flows. Likewise, an unfavorable economic environment and changes in market conditions, discount rates or other factors may result in future impairments of goodwill and intangible assets. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING RESERVES | RESTRUCTURING Restructuring activity for the three and nine months ended September 30, 2019 was not material. In the three and nine months ended September 30, 2018, the Company recorded restructuring charges of approximately $ 4 million and $ 27 million, respectively. These charges primarily consisted of involuntary employee termination costs in Canada and the U.S., net of gains from the sales of branches and are included in SG&A. The reserve balance as of September 30, 2019 and December 31, 2018 was approximately $ 16 million and $ 47 million, respectively, and is primarily included in Accrued compensation and benefits. The remaining reserves are expected to be paid through 2020. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT Short-term debt consisted of outstanding lines of credit of $ 51 million and $49 million at September 30, 2019 and December 31, 2018, respectively. Long-term debt consisted of the following (in millions of dollars): As of September 30, 2019 As of December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000 $ 1,178 $ 1,000 $ 1,026 3.75% senior notes due 2046 400 417 400 357 4.20% senior notes due 2047 400 448 400 383 British pound term loan 157 157 174 174 Euro term loan 120 120 126 126 Canadian dollar revolving credit facility 45 45 44 44 Other 36 36 49 49 Subtotal 2,158 2,401 2,193 2,159 Less current maturities (219 ) (219 ) (81 ) (81 ) Debt issuance costs and discounts, net of amortization (21 ) (21 ) (22 ) (22 ) Long-term debt (less current maturities) $ 1,918 $ 2,161 $ 2,090 $ 2,056 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended September 30, 2019, the Company's effective tax rate was 24.2% compared to 32.7% |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Grainger's two reportable segments are the U.S. and Canada. The U.S. reportable segment reflects the results of Grainger's U.S. businesses. The Canada reportable segment reflects the results of Acklands-Grainger, Inc. and its subsidiaries. Other businesses include the endless assortment businesses, Zoro Tools, Inc. (Zoro) in the U.S. and MonotaRO Co. (MonotaRO) in Japan, and smaller high-touch solutions businesses in Europe, Asia and Mexico. These businesses individually do not meet the criteria of a reportable segment. Following is a summary of segment results (in millions of dollars): Three Months Ended September 30, 2019 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 2,277 $ 129 $ 2,406 $ 673 $ 3,079 Intersegment net sales (131 ) — (131 ) (1 ) (132 ) Net sales to external customers $ 2,146 $ 129 $ 2,275 $ 672 $ 2,947 Segment operating earnings $ 343 $ — $ 343 $ 30 $ 373 Three Months Ended September 30, 2018 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 2,188 $ 149 $ 2,337 $ 610 $ 2,947 Intersegment net sales (115 ) — (115 ) (1 ) (116 ) Net sales to external customers $ 2,073 $ 149 $ 2,222 $ 609 $ 2,831 Segment operating earnings $ 326 $ (4 ) $ 322 $ (99 ) $ 223 Nine Months Ended September 30, 2019 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 6,648 $ 400 $ 7,048 $ 1,969 $ 9,017 Intersegment net sales (376 ) — (376 ) (2 ) (378 ) Net sales to external customers $ 6,272 $ 400 $ 6,672 $ 1,967 $ 8,639 Segment operating earnings $ 1,088 $ (4 ) $ 1,084 $ 87 $ 1,171 Nine Months Ended September 30, 2018 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 6,471 $ 508 $ 6,979 $ 1,820 $ 8,799 Intersegment net sales (338 ) — (338 ) (3 ) (341 ) Net sales to external customers $ 6,133 $ 508 $ 6,641 $ 1,817 $ 8,458 Segment operating earnings $ 1,032 $ (38 ) $ 994 $ (22 ) $ 972 Following are reconciliations of segment information with the consolidated totals per the financial statements (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating earnings: Total operating earnings for reportable segments $ 343 $ 322 $ 1,084 $ 994 Other businesses 30 (99 ) 87 (22 ) Unallocated expenses (35 ) (34 ) (90 ) (104 ) Total consolidated operating earnings $ 338 $ 189 $ 1,081 $ 868 As of September 30, 2019 December 31, 2018 Assets: United States $ 2,637 $ 2,496 Canada 166 188 Assets for reportable segments 2,803 2,684 Other current and noncurrent assets 3,016 2,879 Unallocated assets 103 310 Total consolidated assets $ 5,922 $ 5,873 The Company is a broad-line distributor of MRO products and services. 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. Unallocated expenses primarily relate to the Company's headquarters support services and intercompany eliminations, which are not part of any reportable segment. Unallocated expenses include supply chain, product management and procurement, finance, communications, human resources, information systems, legal and compliance, internal audit and real estate. 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, 2019 | |
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, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as modified by subsequently issued ASUs 2018-19, 2019-04 and 2019-05. This ASU requires estimating all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2019 and the Company plans to adopt this ASU prospectively. The Company is evaluating the impact of this ASU and does not expect a material impact to the Company's Financial Statements. On January 1, 2019, the Company adopted ASU 2016-02, Leases as modified subsequently by ASUs 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01(Topic 842). The core principle of these ASUs is to improve 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 Company utilized the simplified modified retrospective transition method that allowed for a cumulative-effect adjustment in the period of adoption, and did not restate prior periods. Additionally, the Company elected the practical expedients package permitted under the transition guidance. Adoption of the new standard resulted in the recording of right of use (ROU) assets and lease liabilities of approximately $208 million and $205 million , respectively as of January 1, 2019 related to operating and finance leases. Adoption of the standard did not materially impact the Company’s Financial Statements. See Note 5 to the Financial Statements. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates (SEC Update). This ASU clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning with the SEC's regulations, thereby eliminating redundancies and making the codification easier to apply. This ASU was effective immediately upon issuance and did not have a material impact on the Company's Financial Statements and related disclosures. |
Leases | LEASES The Company leases certain properties and buildings (including branches, warehouses, distribution centers and office space) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists mainly of operating leases which expire at various dates through 2036. Finance leases and service contracts with lease arrangements are not material and the following disclosures pertain to the Company’s operating leases. Many of the property and building lease agreements obligate the Company to pay real estate taxes, insurance and certain maintenance costs (hereinafter referred to as non-lease components). Certain of the Company’s lease arrangements contain renewal provisions from 1 to 30 years , exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with ROU assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses (SG&A). |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Goodwill, Policy | Grainger tests reporting units' goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Accordingly, Grainger periodically performs qualitative assessments of significant events and circumstances such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors to determine the existence of impairment indicators and assess if it is more likely than not that the fair value of reporting units or intangible assets is less than their carrying value and if a quantitative impairment test is necessary. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table presents the Company's percentage of revenue by reportable segment and by major customer industry: Three Months Ended September 30, 2019 2018 U.S. Canada Total Company (2) U.S. Canada Total Company (2) Government 20 % 5 % 15 % 20 % 5 % 15 % Heavy Manufacturing 18 % 20 % 17 % 19 % 20 % 18 % Light Manufacturing 12 % 6 % 10 % 13 % 6 % 11 % Transportation 6 % 8 % 5 % 5 % 8 % 5 % Commercial 17 % 9 % 13 % 16 % 9 % 13 % Retail/Wholesale 9 % 4 % 7 % 8 % 4 % 7 % Contractors 9 % 11 % 8 % 9 % 11 % 8 % Natural Resources 3 % 33 % 4 % 3 % 34 % 4 % Other (1) 6 % 4 % 21 % 7 % 3 % 19 % Total net sales to external customers 100 % 100 % 100 % 100 % 100 % 100 % Percent of Total Company Revenue 73 % 4 % 100 % 73 % 5 % 100 % Nine Months Ended September 30, 2019 2018 U.S. Canada Total Company (2) U.S. Canada Total Company (2) Government 19 % 6 % 14 % 19 % 6 % 14 % Heavy Manufacturing 19 % 20 % 17 % 19 % 20 % 18 % Light Manufacturing 13 % 6 % 11 % 13 % 6 % 11 % Transportation 5 % 8 % 5 % 5 % 7 % 5 % Commercial 17 % 9 % 13 % 16 % 10 % 13 % Retail/Wholesale 8 % 4 % 7 % 8 % 4 % 7 % Contractors 10 % 11 % 8 % 10 % 11 % 8 % Natural Resources 3 % 32 % 4 % 3 % 33 % 4 % Other (1) 6 % 4 % 21 % 7 % 3 % 20 % Total net sales to external customers 100 % 100 % 100 % 100 % 100 % 100 % Percent of Total Company Revenue 73 % 5 % 100 % 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 endless assortment businesses and operations in Europe, Asia and Latin America and accounts for approximately 23% and 22% of revenue for the three months ended September 30, 2019 and 2018, respectively, and accounts for 22% and 21% of revenue for the nine months ended September 30, 2019 and 2018, respectively. |
PROPERTY, BUILDINGS AND EQUIP_2
PROPERTY, BUILDINGS AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |
PROPERTY, BUILDINGS AND EQUIPMENT | Property, buildings and equipment consisted of the following (in millions of dollars): As of September 30, 2019 December 31, 2018 Land $ 323 $ 318 Building, structures and improvements 1,329 1,338 Furniture, fixtures, machinery and equipment 1,799 1,785 Property, buildings and equipment $ 3,451 $ 3,441 Less: Accumulated depreciation and amortization 2,067 2,089 Property, buildings and equipment, net $ 1,384 $ 1,352 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities | Information related to operating leases is as follows (in millions of dollars): As of September 30, 2019 ROU Assets Other assets $ 207 Operating lease liabilities Accrued expenses 54 Other non-current liabilities 159 Total operating lease liabilities $ 213 |
Schedule of Operating Lease Information | Nine Months Ended September 30, 2019 Weighted average remaining lease term 6 years Weighted average incremental borrowing rate 2.3 % Cash paid for operating leases $ 49 ROU assets obtained in exchange for operating lease obligations 15 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of September 30, 2019 (in millions of dollars) are as follows: Year Maturity of operating lease liabilities 2019 (remaining 3 months) $ 15 2020 57 2021 48 2022 37 2023 25 Thereafter 42 Total lease payments 224 Less interest (11 ) Present value of lease liabilities $ 213 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The balances and changes in the carrying amount of Goodwill by segment are as follows (in millions of dollars): United States Canada Other businesses Total Balance at January 1, 2018 $ 192 $ 130 $ 222 $ 544 Impairment — — (105 ) (105 ) Translation — (10 ) (5 ) (15 ) Balance at December 31, 2018 192 120 112 424 Translation — 3 (2 ) 1 Balance at September 30, 2019 $ 192 $ 123 $ 110 $ 425 The cumulative goodwill impairment charges by segment as of September 30, 2019 and December 31, 2018 are as follows (in millions of dollars): United States Canada Other businesses Total Cumulative goodwill impairment charges $ 24 $ 32 $ 176 $ 232 |
Schedule of Finite-Lived Intangible Assets By Major Class | The balances and changes in Intangible assets, net are as follows (in millions of dollars ): September 30, 2019 December 31, 2018 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 $ 391 $ 212 $ 179 $ 410 $ 204 $ 206 Trademarks, trade names and other 13.8 years 36 20 16 24 15 9 Non-amortized trade names and other 96 — 96 99 — 99 Capitalized software 4.2 years 618 487 131 657 511 146 Total intangible assets 8.7 years $ 1,141 $ 719 $ 422 $ 1,190 $ 730 $ 460 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt consisted of the following (in millions of dollars): As of September 30, 2019 As of December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 4.60% senior notes due 2045 $ 1,000 $ 1,178 $ 1,000 $ 1,026 3.75% senior notes due 2046 400 417 400 357 4.20% senior notes due 2047 400 448 400 383 British pound term loan 157 157 174 174 Euro term loan 120 120 126 126 Canadian dollar revolving credit facility 45 45 44 44 Other 36 36 49 49 Subtotal 2,158 2,401 2,193 2,159 Less current maturities (219 ) (219 ) (81 ) (81 ) Debt issuance costs and discounts, net of amortization (21 ) (21 ) (22 ) (22 ) Long-term debt (less current maturities) $ 1,918 $ 2,161 $ 2,090 $ 2,056 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Results | Following is a summary of segment results (in millions of dollars): Three Months Ended September 30, 2019 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 2,277 $ 129 $ 2,406 $ 673 $ 3,079 Intersegment net sales (131 ) — (131 ) (1 ) (132 ) Net sales to external customers $ 2,146 $ 129 $ 2,275 $ 672 $ 2,947 Segment operating earnings $ 343 $ — $ 343 $ 30 $ 373 Three Months Ended September 30, 2018 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 2,188 $ 149 $ 2,337 $ 610 $ 2,947 Intersegment net sales (115 ) — (115 ) (1 ) (116 ) Net sales to external customers $ 2,073 $ 149 $ 2,222 $ 609 $ 2,831 Segment operating earnings $ 326 $ (4 ) $ 322 $ (99 ) $ 223 Nine Months Ended September 30, 2019 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 6,648 $ 400 $ 7,048 $ 1,969 $ 9,017 Intersegment net sales (376 ) — (376 ) (2 ) (378 ) Net sales to external customers $ 6,272 $ 400 $ 6,672 $ 1,967 $ 8,639 Segment operating earnings $ 1,088 $ (4 ) $ 1,084 $ 87 $ 1,171 Nine Months Ended September 30, 2018 U.S. Canada Total Reportable Segments Other businesses Total Total net sales $ 6,471 $ 508 $ 6,979 $ 1,820 $ 8,799 Intersegment net sales (338 ) — (338 ) (3 ) (341 ) Net sales to external customers $ 6,133 $ 508 $ 6,641 $ 1,817 $ 8,458 Segment operating earnings $ 1,032 $ (38 ) $ 994 $ (22 ) $ 972 |
Schedule of Reconciliation of Operating Earnings from Segment to Consolidated | Following are reconciliations of segment information with the consolidated totals per the financial statements (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating earnings: Total operating earnings for reportable segments $ 343 $ 322 $ 1,084 $ 994 Other businesses 30 (99 ) 87 (22 ) Unallocated expenses (35 ) (34 ) (90 ) (104 ) Total consolidated operating earnings $ 338 $ 189 $ 1,081 $ 868 As of September 30, 2019 December 31, 2018 Assets: United States $ 2,637 $ 2,496 Canada 166 188 Assets for reportable segments 2,803 2,684 Other current and noncurrent assets 3,016 2,879 Unallocated assets 103 310 Total consolidated assets $ 5,922 $ 5,873 |
Schedule of Reconciliation of Assets from Segment to Consolidated | Following are reconciliations of segment information with the consolidated totals per the financial statements (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating earnings: Total operating earnings for reportable segments $ 343 $ 322 $ 1,084 $ 994 Other businesses 30 (99 ) 87 (22 ) Unallocated expenses (35 ) (34 ) (90 ) (104 ) Total consolidated operating earnings $ 338 $ 189 $ 1,081 $ 868 As of September 30, 2019 December 31, 2018 Assets: United States $ 2,637 $ 2,496 Canada 166 188 Assets for reportable segments 2,803 2,684 Other current and noncurrent assets 3,016 2,879 Unallocated assets 103 310 Total consolidated assets $ 5,922 $ 5,873 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
Operating lease, right-of-use asset | $ 207 | $ 208 |
Operating lease, liability | $ 213 | 205 |
Finance lease, right-of-use asset | 208 | |
Finance lease, liability | $ 205 |
REVENUE Narrative (Details)
REVENUE Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Accrued sales returns | $ 26 | $ 26 | $ 29 | ||
Accrued sales incentives | $ 58 | $ 58 | $ 62 | ||
Service Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Percent of Total Company Revenue | 1.00% | 1.00% | 1.00% | 1.00% |
REVENUE (Details)
REVENUE (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Government Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 15.00% | 15.00% | 14.00% | 14.00% |
Heavy Manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 17.00% | 18.00% | 17.00% | 18.00% |
Light Manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 10.00% | 11.00% | 11.00% | 11.00% |
Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 5.00% | 5.00% | 5.00% | 5.00% |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 13.00% | 13.00% | 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% | 7.00% | 7.00% |
Contractors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 8.00% | 8.00% | 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% | 4.00% | 4.00% |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 21.00% | 19.00% | 21.00% | 20.00% |
Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of Total Company Revenue | 23.00% | 22.00% | 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% | 100.00% | 100.00% |
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue | 73.00% | 73.00% | 73.00% | 73.00% |
United States [Member] | Government Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 20.00% | 20.00% | 19.00% | 19.00% |
United States [Member] | Heavy Manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 18.00% | 19.00% | 19.00% | 19.00% |
United States [Member] | Light Manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 12.00% | 13.00% | 13.00% | 13.00% |
United States [Member] | Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 6.00% | 5.00% | 5.00% | 5.00% |
United States [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 17.00% | 16.00% | 17.00% | 16.00% |
United States [Member] | Retail/Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 9.00% | 8.00% | 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% | 9.00% | 10.00% | 10.00% |
United States [Member] | Natural Resources [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 3.00% | 3.00% | 3.00% | 3.00% |
United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 6.00% | 7.00% | 6.00% | 7.00% |
Canada [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue | 4.00% | 5.00% | 5.00% | 6.00% |
Canada [Member] | Government Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 5.00% | 5.00% | 6.00% | 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% | 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% | 6.00% | 6.00% |
Canada [Member] | Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 8.00% | 8.00% | 8.00% | 7.00% |
Canada [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 9.00% | 9.00% | 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% | 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% | 11.00% | 11.00% |
Canada [Member] | Natural Resources [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 33.00% | 34.00% | 32.00% | 33.00% |
Canada [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage | 4.00% | 3.00% | 4.00% | 3.00% |
PROPERTY, BUILDINGS AND EQUIP_3
PROPERTY, BUILDINGS AND EQUIPMENT (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | $ 3,451 | $ 3,441 |
Less: Accumulated depreciation and amortization | 2,067 | 2,089 |
PROPERTY, BUILDINGS AND EQUIPMENT, NET | 1,384 | 1,352 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | 323 | 318 |
Building, Structures and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | 1,329 | 1,338 |
Furniture, Fixtures, Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY, BUILDINGS AND EQUIPMENT | $ 1,799 | $ 1,785 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2019 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 30 years |
LEASES - Schedule of Operating
LEASES - Schedule of Operating Lease Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Other assets | $ 207 | $ 207 | $ 208 |
Accrued expenses | 54 | 54 | |
Other non-current liabilities | 159 | 159 | |
Total operating lease liabilities | $ 213 | $ 213 | $ 205 |
Weighted average remaining lease term | 6 years | 6 years | |
Weighted average incremental borrowing rate | 2.30% | 2.30% | |
Rent expense included in SG&A | $ 19 | $ 54 | |
Cash paid for operating leases | 49 | ||
ROU assets obtained in exchange for operating lease obligations | $ 15 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Operating Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (remaining 3 months) | $ 15 | |
2020 | 57 | |
2021 | 48 | |
2022 | 37 | |
2023 | 25 | |
Thereafter | 42 | |
Total lease payments | 224 | |
Less interest | (11) | |
Present value of lease liabilities | $ 213 | $ 205 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Balances and Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 424 | $ 544 |
Impairment | (105) | |
Translation | 1 | (15) |
Goodwill, ending balance | 425 | 424 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 232 | |
Cumulative goodwill impairment charges, ending balance | 232 | 232 |
United States [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 192 | 192 |
Impairment | 0 | |
Translation | 0 | 0 |
Goodwill, ending balance | 192 | 192 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 24 | |
Cumulative goodwill impairment charges, ending balance | 24 | 24 |
Canada [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 120 | 130 |
Impairment | 0 | |
Translation | 3 | (10) |
Goodwill, ending balance | 123 | 120 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 32 | |
Cumulative goodwill impairment charges, ending balance | 32 | 32 |
Other Businesses [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 112 | 222 |
Impairment | (105) | |
Translation | (2) | (5) |
Goodwill, ending balance | 110 | 112 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Cumulative goodwill impairment charges, beginning balance | 176 | |
Cumulative goodwill impairment charges, ending balance | $ 176 | $ 176 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets included in Other assets and intangibles (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Total intangible assets, gross | $ 1,141 | $ 1,190 |
Total intangible assets, net | 422 | 460 |
Finite-lived intangible assets, accumulated amortization | 719 | 730 |
Customer lists and relationships [Member] | ||
Finite-lived intangible assets, gross | 391 | 410 |
Finite-lived intangible assets, accumulated amortization | 212 | 204 |
Finite-lived intangible assets, net | 179 | 206 |
Trademarks, trade names and other [Member] | ||
Finite-lived intangible assets, gross | 36 | 24 |
Finite-lived intangible assets, accumulated amortization | 20 | 15 |
Finite-lived intangible assets, net | 16 | 9 |
Non-amortized trade names and other [Member] | ||
Indefinite-lived intangible assets, carrying amount | 96 | 99 |
Capitalized software [Member] | ||
Finite-lived intangible assets, gross | 618 | 657 |
Finite-lived intangible assets, accumulated amortization | 487 | 511 |
Finite-lived intangible assets, net | $ 131 | $ 146 |
Weighted average [Member] | ||
Finite-lived intangible assets, useful life | 8 years 8 months 12 days | |
Weighted average [Member] | Customer lists and relationships [Member] | ||
Finite-lived intangible assets, useful life | 14 years 3 months 18 days | |
Weighted average [Member] | Trademarks, trade names and other [Member] | ||
Finite-lived intangible assets, useful life | 13 years 9 months 18 days | |
Weighted average [Member] | Capitalized software [Member] | ||
Finite-lived intangible assets, useful life | 4 years 2 months 12 days |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related costs | $ 4 | $ 27 | ||
Employee Related Liabilities, Current [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve balance | $ 16 | $ 47 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding lines of credit | $ 51 | $ 49 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Other | $ 36 | $ 49 |
Other, fair value | 36 | 49 |
Long-term debt, gross | 2,158 | 2,193 |
Long-term debt, gross, fair value | 2,401 | 2,159 |
Less current maturities | (219) | (81) |
Less current maturities, fair value | (219) | (81) |
Debt issuance costs and discounts, net of amortization | (21) | (22) |
Debt issuance costs and discounts, fair value | (21) | (22) |
Long-term debt (less current maturities) | 1,918 | 2,090 |
Long-term debt, excluding current maturities, , fair value | 2,161 | 2,056 |
British pound denominated term loan and revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 157 | 174 |
Long-term debt, fair value | 157 | 174 |
Euro denominated term loan and revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 120 | 126 |
Long-term debt, fair value | 120 | 126 |
Canadian dollar revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 45 | 44 |
Long-term debt, fair value | 45 | 44 |
Senior Notes, 4.60% due 2045 [Member] | Senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,000 | 1,000 |
Long-term debt, fair value | 1,178 | 1,026 |
Senior Notes, 3.75% due 2046 [Member] | Senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 400 | 400 |
Long-term debt, fair value | 417 | 357 |
Senior Notes, 4.20% due 2047 [Member] | Senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 400 | 400 |
Long-term debt, fair value | $ 448 | $ 383 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 24.20% | 32.70% |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | $ 5,922 | $ 5,922 | $ 5,873 | ||
Summarized Information | |||||
Net sales to external customers | 2,947 | $ 2,831 | 8,639 | $ 8,458 | |
Total consolidated operating earnings | 338 | 189 | 1,081 | 868 | |
United States [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 2,146 | 2,073 | 6,272 | 6,133 | |
Canada [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 129 | 149 | 400 | 508 | |
United States And Canada Segments [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 2,275 | 2,222 | 6,672 | 6,641 | |
Total consolidated operating earnings | 343 | 322 | 1,084 | 994 | |
Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 672 | 609 | 1,967 | 1,817 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 2,803 | 2,803 | 2,684 | ||
Summarized Information | |||||
Net sales to external customers | 3,079 | 2,947 | 9,017 | 8,799 | |
Total consolidated operating earnings | 373 | 223 | 1,171 | 972 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 2,637 | 2,637 | 2,496 | ||
Summarized Information | |||||
Net sales to external customers | 2,277 | 2,188 | 6,648 | 6,471 | |
Total consolidated operating earnings | 343 | 326 | 1,088 | 1,032 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
TOTAL ASSETS | 166 | 166 | $ 188 | ||
Summarized Information | |||||
Net sales to external customers | 129 | 149 | 400 | 508 | |
Total consolidated operating earnings | 0 | (4) | (4) | (38) | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | United States And Canada Segments [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 2,406 | 2,337 | 7,048 | 6,979 | |
Total consolidated operating earnings | 343 | 322 | 1,084 | 994 | |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 673 | 610 | 1,969 | 1,820 | |
Total consolidated operating earnings | 30 | (99) | 87 | (22) | |
Intersegment Eliminations [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (132) | (116) | (378) | (341) | |
Intersegment Eliminations [Member] | United States [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (131) | (115) | (376) | (338) | |
Intersegment Eliminations [Member] | Canada [Member] | |||||
Summarized Information | |||||
Net sales to external customers | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | United States And Canada Segments [Member] | |||||
Summarized Information | |||||
Net sales to external customers | (131) | (115) | (376) | (338) | |
Intersegment Eliminations [Member] | Other Businesses [Member] | |||||
Summarized Information | |||||
Net sales to external customers | $ (1) | $ (1) | $ (2) | $ (3) |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Earnings from Segment to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | $ 338 | $ 189 | $ 1,081 | $ 868 | |
Assets | 5,922 | 5,922 | $ 5,873 | ||
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | 373 | 223 | 1,171 | 972 | |
Assets | 2,803 | 2,803 | 2,684 | ||
Eliminations and Unallocated in Consolidation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | (35) | (34) | (90) | (104) | |
Assets | 103 | 103 | 310 | ||
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 3,016 | 3,016 | 2,879 | ||
United States And Canada Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | 343 | 322 | 1,084 | 994 | |
United States And Canada Segments [Member] | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | 343 | 322 | 1,084 | 994 | |
Other Businesses [Member] | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | 30 | (99) | 87 | (22) | |
United States [Member] | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | 343 | 326 | 1,088 | 1,032 | |
Assets | 2,637 | 2,637 | 2,496 | ||
Canada [Member] | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total consolidated operating earnings | 0 | $ (4) | (4) | $ (38) | |
Assets | $ 166 | $ 166 | $ 188 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | $ 5,922 | $ 5,873 |
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 2,803 | 2,684 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 3,016 | 2,879 |
Eliminations and Unallocated in Consolidation [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 103 | 310 |
United States [Member] | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | 2,637 | 2,496 |
Canada [Member] | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
TOTAL ASSETS | $ 166 | $ 188 |