Illinois | 36-1150280 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
100 Grainger Parkway, | Lake Forest, | Illinois | 60045-5201 | ||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
847 | 535-1000 | ||||||||||||||||
(Registrant’s telephone number, including area code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock | GWW | New York Stock Exchange |
TABLE OF CONTENTS | Page | |||||||||||||||||||
PART I | ||||||||||||||||||||
Item 1: | BUSINESS | |||||||||||||||||||
Item 1A: | RISK FACTORS | |||||||||||||||||||
Item 1B: | UNRESOLVED STAFF COMMENTS | |||||||||||||||||||
Item 2: | PROPERTIES | |||||||||||||||||||
Item 3: | LEGAL PROCEEDINGS | |||||||||||||||||||
Item 4: | MINE SAFETY DISCLOSURES | |||||||||||||||||||
PART II | ||||||||||||||||||||
Item 5: | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER | |||||||||||||||||||
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||||||||||
Item 6: | SELECTED FINANCIAL DATA | |||||||||||||||||||
Item 7: | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL | |||||||||||||||||||
CONDITION AND RESULTS OF OPERATIONS | ||||||||||||||||||||
Item 7A: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | |||||||||||||||||||
Item 8: | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | |||||||||||||||||||
Item 9: | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS | |||||||||||||||||||
ON ACCOUNTING AND FINANCIAL DISCLOSURE | ||||||||||||||||||||
Item 9A: | CONTROLS AND PROCEDURES | |||||||||||||||||||
Item 9B: | OTHER INFORMATION | |||||||||||||||||||
PART III | ||||||||||||||||||||
Item 10: | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE | |||||||||||||||||||
Item 11: | EXECUTIVE COMPENSATION | |||||||||||||||||||
Item 12: | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | |||||||||||||||||||
Item 13: | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE | |||||||||||||||||||
Item 14: | PRINCIPAL ACCOUNTANT FEES AND SERVICES | |||||||||||||||||||
PART IV | ||||||||||||||||||||
Item 15: | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES | |||||||||||||||||||
Item 16: | FORM 10-K SUMMARY | |||||||||||||||||||
Signatures | ||||||||||||||||||||
Approximate Market Share |
Distribution Centers (DCs)(1)
|
Branches(1)
|
Approximate Number of Customers Served (thousands)(2)
|
||||||||||||||||||||
United States - high touch business | 7% | 17 | 287 | 1,100 | |||||||||||||||||||
Canada - high-touch business | 4% | 5 | 49 | 50 | |||||||||||||||||||
Other businesses: | |||||||||||||||||||||||
Endless assortment businesses
|
3% | 4 | — | 3,800 | |||||||||||||||||||
International high-touch businesses | 2% | 3 | 71 | 50 | |||||||||||||||||||
Total | 6% | 29 | 407 | 5,000 |
Order Origination | Order Fulfillment | |||||||||||||
Digital channels: | Direct-to-customer: | |||||||||||||
Website | 32 | % |
Ship to Customer
|
73 | % | |||||||||
EDI/ePro | 28 | % |
KeepStock®
|
15 | % | |||||||||
KeepStock® | 15 | % | Subtotal | 88 | % | |||||||||
Subtotal | 75 | % |
Branch Pick-up
|
12 | % | |||||||||
Non-digital channels: | Total | 100 | % | |||||||||||
Branch | 6 | % | ||||||||||||
Phone | 19 | % | ||||||||||||
Subtotal | 25 | % | ||||||||||||
Total
|
100 | % |
•Start with the Customer
|
•Win as One Team
|
||||
•Embrace Curiosity
|
•Invest in our Success
|
||||
•Act with Intent
|
•Do the Right Thing
|
||||
•Compete with Urgency
|
Name and Age | Positions and Offices Held and Principal Occupation and Employment During the Past Five Years | ||||
Kathleen S. Carroll (52) |
Senior Vice President and Chief Human Resources Officer, a position assumed in December 2018. Previously, Ms. Carroll served as Executive Vice President, Chief Human Resources Officer of First Midwest Bancorp, Inc., a diversified financial services company, from 2017 to 2018. Prior to that role, Ms. Carroll was employed at Aon Corporation, a global insurance brokerage and consulting company, between 2006 and 2017, in various Human Resources roles, culminating in her position as Vice President, Global Head of Talent Acquisition.
|
||||
John L. Howard (63) |
Senior Vice President and General Counsel, a position assumed in 2000. Previously, Mr. Howard served in several roles of increasing responsibility at Tenneco, Inc., a global conglomerate including Vice President – Law. Prior to that role, Mr. Howard held a variety of legal positions in the federal government, including Associate Deputy Attorney General in the U.S. Department of Justice and in The White House as Counsel to the Vice President.
|
||||
D.G. Macpherson (53) |
Chairman of the Board, a position assumed in October 2017, and Chief Executive Officer, a position assumed in October 2016 at which time he was also appointed to the Board of Directors. Previously, Mr. Macpherson served as Chief Operating Officer, a position assumed in 2015; Senior Vice President and Group President, Global Supply Chain and International, a position assumed in 2013; Senior Vice President and President, Global Supply Chain and Corporate Strategy, a position assumed in 2012, and Senior Vice President, Global Supply Chain, a position assumed in 2008.
|
||||
Deidra C. Merriwether (52) |
Senior Vice President and Chief Financial Officer, a position assumed in January 2021. Previously, Ms. Merriwether served as Senior Vice President and President, North American Sales & Services of the Company, a position assumed in January 2020, Senior Vice President, U.S. Direct Sales and Strategic Initiatives, a position assumed in September 2017, Vice President, Pricing and Indirect Procurement, a position assumed in 2016, and as Vice President, Finance, Americas, a position assumed in September 2013. Prior to Grainger, Ms. Merriwether held various positions across finance, procurement and operations at Sears Holdings Corporation, a broadline retailer, including as Chief Operating Officer, Retail Formats, PriceWaterhouseCoopers, a global professional services firm, and Eli Lilly & Company, a global pharmaceutical company.
|
||||
Paige K. Robbins (52) |
Senior Vice President and President, Grainger Business Unit, a position assumed in January 2021. Previously, Ms. Robbins served as Senior Vice President and Chief Technology, Merchandising, Marketing and Strategy Officer, a position assumed in November 2019, Senior Vice President and Chief Merchandising, Marketing, Digital, Strategy Officer, a position assumed in May 2019, Senior Vice President and Chief Digital Officer, a position assumed in September 2017, and Senior Vice President, Global Supply Chain, Branch Network, Contact Centers and Corporate Strategy, a position assumed in 2016. Since joining Grainger in September 2010, Ms. Robbins has held various positions as a Vice President, including in the areas of global supply chain and logistics.
|
||||
Eric R. Tapia (44)
|
Vice President and Controller, a position assumed in 2016. Previously, Mr. Tapia served as Vice President, Internal Audit from 2010 to 2016. Mr. Tapia is a Certified Public Accountant (CPA) and before joining Grainger in 2010 was an audit partner with KPMG, a global professional services firm.
|
Location |
Facility and Use (7)
|
Size in Square Feet (in thousands) | ||||||||||||
U.S. (1)
|
287 branch locations | 6,404 | ||||||||||||
U.S. (2)
|
17 DCs | 9,178 | ||||||||||||
U.S. (3)
|
Other facilities | 4,441 | ||||||||||||
Canada (4)
|
49 branch locations | 686 | ||||||||||||
Canada (5)
|
5 DCs | 968 | ||||||||||||
Canada | Other facilities | 440 | ||||||||||||
Other businesses (6)
|
Other facilities | 3,742 | ||||||||||||
Chicago area (2)
|
Headquarters and general offices | 947 | ||||||||||||
Total Square Footage | 26,806 |
Period |
Total Number of Shares Purchased (A) (D)
|
Average Price Paid Per Share (B)
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (C)
|
Maximum Number of
Shares That May Yet be Purchased Under the Plans or Programs |
|||||||||||||
Oct. 1 – Oct. 31 | 102,696 | $353.81 | 102,696 | 2,639,859 | shares | ||||||||||||
Nov. 1 – Nov. 30 | 578,797 | $400.63 | 578,497 | 2,061,362 | shares | ||||||||||||
Dec. 1 – Dec. 31 | 568,214 | $408.53 | 567,619 | 1,493,743 | shares | ||||||||||||
Total | 1,249,707 | 1,248,812 |
December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
W.W. Grainger, Inc. | $ | 100 | $ | 117 | $ | 122 | $ | 149 | $ | 182 | $ | 223 | ||||||||
Dow Jones US Industrial Suppliers Total Stock Market Index | 100 | 126 | 140 | 129 | 172 | 214 | ||||||||||||||
S&P 500 Stock Index | 100 | 112 | 136 | 130 | 171 | 203 |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(In millions of dollars, except for per share amounts) | |||||||||||||||||||||||||||||
Net sales | $ | 11,797 | $ | 11,486 | $ | 11,221 | $ | 10,425 | $ | 10,137 | |||||||||||||||||||
Gross profit
|
4,238 | 4,397 | 4,348 | 4,098 | 4,115 | ||||||||||||||||||||||||
Operating earnings
|
1,019 | 1,262 | 1,158 | 1,035 | 1,113 | ||||||||||||||||||||||||
Net earnings attributable to W.W. Grainger, Inc. (herein referred to as Net earnings)
|
695 | 849 | 782 | 586 | 606 | ||||||||||||||||||||||||
Net earnings per basic share | 12.88 | 15.39 | 13.82 | 10.07 | 9.94 | ||||||||||||||||||||||||
Net earnings per diluted share | 12.82 | 15.32 | 13.73 | 10.02 | 9.87 | ||||||||||||||||||||||||
Total current assets | 3,919 | 3,555 | 3,557 | 3,206 | 3,020 | ||||||||||||||||||||||||
Property, building and equipment, net | 1,395 | 1,400 | 1,352 | 1,392 | 1,421 | ||||||||||||||||||||||||
Long-term debt (less current maturities)
|
2,389 | 1,914 | 2,090 | 2,248 | 1,841 | ||||||||||||||||||||||||
Total shareholders' equity | 2,093 | 2,060 | 2,093 | 1,828 | 1,906 | ||||||||||||||||||||||||
Operating cash flow | 1,123 | 1,042 | 1,057 | 1,057 | 1,024 | ||||||||||||||||||||||||
Cash dividends paid per share | $ | 5.94 | $ | 5.68 | $ | 5.36 | $ | 5.06 | $ | 4.83 |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
Percent Increase/(Decrease) from Prior Year | As a Percent of Net Sales | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||||||||||||
Net sales | $ | 11,797 | $ | 11,486 | 2.7 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||
Cost of goods sold | 7,559 | 7,089 | 6.6 | % | 64.1 | % | 61.7 | % | |||||||||||||||||||||
Gross profit | 4,238 | 4,397 | (3.6) | % | 35.9 | % | 38.3 | % | |||||||||||||||||||||
Selling, general and administrative expenses | 3,219 | 3,135 | 2.7 | % | 27.3 | % | 27.3 | % | |||||||||||||||||||||
Operating earnings | 1,019 | 1,262 | (19.3) | % | 8.6 | % | 11.0 | % | |||||||||||||||||||||
Other expense, net | 72 | 53 | 35.0 | % | 0.6 | % | 0.5 | % | |||||||||||||||||||||
Income tax provision | 192 | 314 | (38.9) | % | 1.6 | % | 2.7 | % | |||||||||||||||||||||
Net earnings | 755 | 895 | (15.6) | % | 6.4 | % | 7.8 | % | |||||||||||||||||||||
Noncontrolling interest | 60 | 46 | 30.3 | % | 0.5 | % | 0.4 | % | |||||||||||||||||||||
Net earnings attributable to W.W. Grainger, Inc.
|
$ | 695 | $ | 849 | (18.1) | % | 5.9 | % | 7.4 | % |
Percent Increase/(Decrease) | |||||
Volume (including product mix) | 2.8% | ||||
Price and customer mix | (0.3) | ||||
Total | 2.5% |
Percent Decrease | |||||
Volume (including product mix) | (8.4)% | ||||
Price and customer mix | (1.0) | ||||
Foreign exchange | (0.9) | ||||
Total
|
(10.3)% |
Percent Increase/(Decrease) | |||||
Price/volume | 9.0% | ||||
Foreign exchange | 0.4 | ||||
Business divestitures | (5.6) | ||||
Total | 3.8% |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Land, buildings, structures and improvements | $ | 19 | $ | 47 | |||||||||||||
Furniture, fixtures, machinery and equipment | 120 | 131 | |||||||||||||||
Subtotal
|
139 | 178 | |||||||||||||||
Capitalized software (presented in Intangibles - net on the Consolidated Balance Sheet) | 58 | 43 | |||||||||||||||
Total
|
$ | 197 | $ | 221 |
Corporate | Senior Unsecured | Short-term | |||||||||||||||
Moody's | A3 | A3 | P2 | ||||||||||||||
S&P | A+ | A+ | A1 |
Payments Due by Period | |||||||||||||||||||||||||||||
Total Amounts Committed | Less than 1 Year |
1 - 3
Years |
3 - 5 Years | More than 5 Years | |||||||||||||||||||||||||
Debt obligations | $ | 2,400 | $ | 8 | $ | 43 | $ | 544 | $ | 1,805 | |||||||||||||||||||
Interest on debt | 1,998 | 87 | 174 | 174 | 1,563 | ||||||||||||||||||||||||
Operating lease obligations | 230 | 59 | 92 | 41 | 38 | ||||||||||||||||||||||||
Purchase obligations: | |||||||||||||||||||||||||||||
Uncompleted additions to
property, buildings and equipment
|
147 | 147 | — | — | — | ||||||||||||||||||||||||
Commitments to purchase inventory | 666 | 666 | — | — | — | ||||||||||||||||||||||||
Other goods and services | 300 | 173 | 113 | 14 | — | ||||||||||||||||||||||||
Other liabilities | 83 | 65 | 3 | 2 | 13 | ||||||||||||||||||||||||
Total | $ | 5,824 | $ | 1,205 | $ | 425 | $ | 775 | $ | 3,419 |
Page | |||||
MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING | |||||
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | |||||
FINANCIAL STATEMENTS | |||||
CONSOLIDATED STATEMENTS OF EARNINGS
|
|||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
|
|||||
CONSOLIDATED BALANCE SHEETS
|
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
|
|||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 11,797 | $ | 11,486 | $ | 11,221 | |||||||||||
Cost of goods sold | 7,559 | 7,089 | 6,873 | ||||||||||||||
Gross profit | 4,238 | 4,397 | 4,348 | ||||||||||||||
Selling, general and administrative expenses | 3,219 | 3,135 | 3,190 | ||||||||||||||
Operating earnings | 1,019 | 1,262 | 1,158 | ||||||||||||||
Other (income) expense: | |||||||||||||||||
Interest expense, net | 93 | 79 | 82 | ||||||||||||||
Other, net | (21) | (26) | (5) | ||||||||||||||
Total other expense, net | 72 | 53 | 77 | ||||||||||||||
Earnings before income taxes | 947 | 1,209 | 1,081 | ||||||||||||||
Income tax provision | 192 | 314 | 258 | ||||||||||||||
Net earnings | 755 | 895 | 823 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interest | 60 | 46 | 41 | ||||||||||||||
Net earnings attributable to W.W. Grainger, Inc. | $ | 695 | $ | 849 | $ | 782 | |||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 12.88 | $ | 15.39 | $ | 13.82 | |||||||||||
Diluted | $ | 12.82 | $ | 15.32 | $ | 13.73 | |||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 53.5 | 54.7 | 56.1 | ||||||||||||||
Diluted | 53.7 | 54.9 | 56.5 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net earnings | $ | 755 | $ | 895 | $ | 823 | |||||||||||
Other comprehensive earnings (losses): | |||||||||||||||||
Foreign currency translation earnings (losses), net of
reclassification (see Note 2 and Note 12)
|
83 | 26 | (41) | ||||||||||||||
Postretirement benefit plan gains (losses), net of tax (expense) benefit of $(7), $2, and $3, respectively
|
22 | (6) | (7) | ||||||||||||||
Total other comprehensive earnings (losses)
|
105 | 20 | (48) | ||||||||||||||
Comprehensive earnings, net of tax | 860 | 915 | 775 | ||||||||||||||
Less: Comprehensive earnings (losses) attributable to noncontrolling interest
|
|||||||||||||||||
Net earnings
|
60 | 46 | 41 | ||||||||||||||
Foreign currency translation adjustments
|
12 | 3 | 3 | ||||||||||||||
Total comprehensive earnings (losses) attributable to noncontrolling interest
|
72 | 49 | 44 | ||||||||||||||
Comprehensive earnings attributable to W.W. Grainger, Inc. | $ | 788 | $ | 866 | $ | 731 |
As of December 31, | |||||||||||
Assets | 2020 | 2019 | |||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 585 | $ | 360 | |||||||
Accounts receivable (less allowance for credit losses of $27 and $21, respectively)
|
1,474 | 1,425 | |||||||||
Inventories – net | 1,733 | 1,655 | |||||||||
Prepaid expenses and other current assets | 120 | 104 | |||||||||
Prepaid income taxes | 7 | 11 | |||||||||
Total current assets | 3,919 | 3,555 | |||||||||
Property, buildings and equipment – net | 1,395 | 1,400 | |||||||||
Deferred income taxes | 14 | 11 | |||||||||
Goodwill | 391 | 429 | |||||||||
Intangibles – net | 228 | 304 | |||||||||
Other assets | 348 | 306 | |||||||||
Total assets | $ | 6,295 | $ | 6,005 | |||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities | |||||||||||
Short-term debt | $ | — | $ | 55 | |||||||
Current maturities of long-term debt | 8 | 246 | |||||||||
Trade accounts payable | 779 | 719 | |||||||||
Accrued compensation and benefits | 240 | 228 | |||||||||
Accrued contributions to employees’ profit-sharing plans | 67 | 85 | |||||||||
Accrued expenses | 305 | 318 | |||||||||
Income taxes payable | 42 | 27 | |||||||||
Total current liabilities | 1,441 | 1,678 | |||||||||
Long-term debt (less current maturities) | 2,389 | 1,914 | |||||||||
Deferred income taxes and tax uncertainties | 110 | 106 | |||||||||
Other non-current liabilities | 262 | 247 | |||||||||
Shareholders' equity | |||||||||||
Cumulative preferred stock – $5 par value – 12,000,000 shares authorized; none issued nor outstanding
|
— | — | |||||||||
Common Stock – $0.50 par value – 300,000,000 shares authorized; issued 109,659,219 shares
|
55 | 55 | |||||||||
Additional contributed capital | 1,239 | 1,182 | |||||||||
Retained earnings | 8,779 | 8,405 | |||||||||
Accumulated other comprehensive losses | (61) | (154) | |||||||||
Treasury stock, at cost - 57,134,828 and 55,971,691 shares, respectively
|
(8,184) | (7,633) | |||||||||
Total W.W. Grainger, Inc. shareholders’ equity | 1,828 | 1,855 | |||||||||
Noncontrolling interest
|
265 | 205 | |||||||||
Total shareholders' equity | 2,093 | 2,060 | |||||||||
Total liabilities and shareholders' equity | $ | 6,295 | $ | 6,005 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net earnings | $ | 755 | $ | 895 | $ | 823 | |||||||||||
Provision for credit losses | 22 | 12 | 7 | ||||||||||||||
Deferred income taxes and tax uncertainties | (5) | 4 | 7 | ||||||||||||||
Depreciation and amortization | 182 | 229 | 257 | ||||||||||||||
Impairment of goodwill, intangibles and long lived assets | 187 | 123 | 156 | ||||||||||||||
Net losses (gains) from sales of assets and business divestitures | 106 | (6) | (6) | ||||||||||||||
Stock-based compensation | 46 | 40 | 47 | ||||||||||||||
Subtotal
|
538 | 402 | 468 | ||||||||||||||
Change in operating assets and liabilities | |||||||||||||||||
Accounts receivable | (121) | (42) | (79) | ||||||||||||||
Inventories | (158) | (106) | (129) | ||||||||||||||
Prepaid expenses and other assets | (23) | (33) | (2) | ||||||||||||||
Trade accounts payable | 80 | 32 | (51) | ||||||||||||||
Accrued liabilities | 15 | (84) | 18 | ||||||||||||||
Income taxes – net | 24 | (3) | 36 | ||||||||||||||
Other non-current liabilities | 13 | (19) | (27) | ||||||||||||||
Net cash provided by operating activities | 1,123 | 1,042 | 1,057 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Additions to property, buildings, equipment and intangibles | (197) | (221) | (239) | ||||||||||||||
Net proceeds of business acquisitions, divestitures and sales of assets | 20 | 17 | 86 | ||||||||||||||
Other – net | (2) | 2 | (13) | ||||||||||||||
Net cash used in investing activities | (179) | (202) | (166) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings under lines of credit | 12 | 20 | 26 | ||||||||||||||
Payments against lines of credit | (65) | (15) | (31) | ||||||||||||||
Proceeds from long-term debt | 1,584 | — | — | ||||||||||||||
Payments of long-term debt | (1,370) | (42) | (96) | ||||||||||||||
Proceeds from stock options exercised | 70 | 49 | 181 | ||||||||||||||
Payments for employee taxes withheld from stock awards | (18) | (11) | (12) | ||||||||||||||
Purchases of treasury stock | (601) | (700) | (425) | ||||||||||||||
Cash dividends paid | (338) | (328) | (316) | ||||||||||||||
Other – net | — | 4 | 3 | ||||||||||||||
Net cash used in financing activities | (726) | (1,023) | (670) | ||||||||||||||
Exchange rate effect on cash and cash equivalents | 7 | 5 | (10) | ||||||||||||||
Net change in cash and cash equivalents: | 225 | (178) | 211 | ||||||||||||||
Cash and cash equivalents at beginning of year
|
360 | 538 | 327 | ||||||||||||||
Cash and cash equivalents at end of year
|
$ | 585 | $ | 360 | $ | 538 | |||||||||||
Supplemental cash flow information: | |||||||||||||||||
Cash payments for interest (net of amounts capitalized)
|
$ | 94 | $ | 84 | $ | 86 | |||||||||||
Cash payments for income taxes | $ | 180 | $ | 322 | $ | 229 |
Common Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Losses) | Treasury Stock |
Noncontrolling
Interest |
Total | |||||||||||||||||
Balance at January 1, 2018 | $ | 55 | $ | 1,041 | $ | 7,405 | $ | (135) | $ | (6,676) | $ | 138 | $ | 1,828 | |||||||||
Stock-based compensation | — | 92 | — | — | 122 | — | 214 | ||||||||||||||||
Purchases of treasury stock | — | — | — | — | (412) | — | (412) | ||||||||||||||||
Net earnings | — | — | 782 | — | — | 41 | 823 | ||||||||||||||||
Other comprehensive earnings (losses) | — | — | — | (51) | — | 3 | (48) | ||||||||||||||||
Capital contribution | — | — | — | — | — | 4 | 4 | ||||||||||||||||
Reclassification due to the adoption of ASU 2018-02 | — | — | (15) | 15 | — | — | — | ||||||||||||||||
Cash dividends paid ($5.36 per share)
|
— | 1 | (303) | — | — | (14) | (316) | ||||||||||||||||
Balance at December 31, 2018
|
$ | 55 | $ | 1,134 | $ | 7,869 | $ | (171) | $ | (6,966) | $ | 172 | $ | 2,093 | |||||||||
Stock-based compensation | — | 45 | — | — | 33 | — | 78 | ||||||||||||||||
Purchases of treasury stock | — | — | — | — | (700) | — | (700) | ||||||||||||||||
Net earnings | — | — | 849 | — | — | 46 | 895 | ||||||||||||||||
Other comprehensive earnings (losses) | — | — | — | 17 | — | 3 | 20 | ||||||||||||||||
Capital contribution | — | 2 | — | — | — | — | 2 | ||||||||||||||||
Cash dividends paid ($5.68 per share)
|
— | 1 | (313) | — | — | (16) | (328) | ||||||||||||||||
Balance at December 31, 2019 | $ | 55 | $ | 1,182 | $ | 8,405 | $ | (154) | $ | (7,633) | $ | 205 | $ | 2,060 | |||||||||
Stock-based compensation | — | 49 | — | — | 49 | — | 98 | ||||||||||||||||
Purchases of treasury stock | — | — | — | — | (600) | (1) | (601) | ||||||||||||||||
Net earnings | — | — | 695 | — | — | 60 | 755 | ||||||||||||||||
Other comprehensive earnings (losses) | — | — | — | 93 | — | 12 | 105 | ||||||||||||||||
Capital contribution | — | 7 | — | — | — | 7 | 14 | ||||||||||||||||
Cash dividends paid ($5.94 per share)
|
— | 1 | (321) | — | — | (18) | (338) | ||||||||||||||||
Balance at December 31, 2020 | $ | 55 | $ | 1,239 | $ | 8,779 | $ | (61) | $ | (8,184) | $ | 265 | $ | 2,093 |
Buildings, structures and improvements |
10 to 50 years
|
||||
Furniture, fixtures, machinery and equipment |
3 to 15 years
|
Twelve Months Ended December 31, 2020 | ||||||||||||||||||||||||||
United States | Canada |
Total Company (2)
|
||||||||||||||||||||||||
Government | 21 | % | 9 | % | 16 | % | ||||||||||||||||||||
Heavy Manufacturing | 16 | % | 18 | % | 15 | % | ||||||||||||||||||||
Light Manufacturing | 13 | % | 7 | % | 10 | % | ||||||||||||||||||||
Transportation | 5 | % | 10 | % | 5 | % | ||||||||||||||||||||
Healthcare | 10 | % | — | % | 7 | % | ||||||||||||||||||||
Commercial | 8 | % | 9 | % | 7 | % | ||||||||||||||||||||
Retail/Wholesale | 10 | % | 3 | % | 8 | % | ||||||||||||||||||||
Contractors | 9 | % | 10 | % | 7 | % | ||||||||||||||||||||
Natural Resources | 2 | % | 29 | % | 3 | % | ||||||||||||||||||||
Other (1)
|
6 | % | 5 | % | 22 | % | ||||||||||||||||||||
Total net sales | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||
Percent of Total Company Revenue | 73 | % | 4 | % | 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 smaller international high-touch businesses and account for approximately 23% of revenue for the twelve months ended December 31, 2020.
|
As of | |||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||
Land | $ | 329 | $ | 332 | |||||||||||||
Building, structures and improvements | 1,330 | 1,329 | |||||||||||||||
Furniture, fixtures, machinery and equipment | 1,878 | 1,832 | |||||||||||||||
Property, buildings and equipment
|
$ | 3,537 | $ | 3,493 | |||||||||||||
Less: Accumulated depreciation and amortization | 2,142 | 2,093 | |||||||||||||||
Property, buildings and equipment, net
|
$ | 1,395 | $ | 1,400 |
United States | Canada | Other businesses | Total | |||||||||||||||||||||||
Balance at January 1, 2019 | $ | 192 | $ | 120 | $ | 112 | $ | 424 | ||||||||||||||||||
Translation | — | 6 | (1) | 5 | ||||||||||||||||||||||
Balance at December 31, 2019 | 192 | 126 | 111 | 429 | ||||||||||||||||||||||
Acquisition | — | — | 15 | 15 | ||||||||||||||||||||||
Impairment | — | — | (58) | (58) | ||||||||||||||||||||||
Translation | — | 3 | 2 | 5 | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | 192 | $ | 129 | $ | 70 | $ | 391 |
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Weighted average life | Gross carrying amount | Accumulated amortization/ impairment | Net carrying amount | Gross carrying amount | Accumulated amortization/impairment | Net carrying amount | |||||||||||||||||||||||||||||||||||
Customer lists and relationships
|
11.8 years | $ | 223 | $ | 171 | $ | 52 | $ | 401 | $ | 301 | $ | 100 | ||||||||||||||||||||||||||||
Trademarks, trade names and other
|
14.1 years | 36 | 22 | 14 | 36 | 20 | 16 | ||||||||||||||||||||||||||||||||||
Non-amortized trade names and other
|
— | 28 | — | 28 | 100 | 38 | 62 | ||||||||||||||||||||||||||||||||||
Capitalized software(1)
|
4.2 years | 461 | 327 | 134 | 626 | 500 | 126 | ||||||||||||||||||||||||||||||||||
Total intangible assets | 7.1 years | $ | 748 | $ | 520 | $ | 228 | $ | 1,163 | $ | 859 | $ | 304 |
Year | Expense | ||||||||||||||||
2021 | $ | 63 | |||||||||||||||
2022 | 48 | ||||||||||||||||
2023 | 36 | ||||||||||||||||
2024 | 18 | ||||||||||||||||
2025 | 16 | ||||||||||||||||
Thereafter | 19 | ||||||||||||||||
Total | $ | 200 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Lines of Credit | |||||||||||
Outstanding at December 31 | $ | — | $ | 55 | |||||||
Maximum month-end balance during the year | $ | — | $ | 56 | |||||||
Weighted average interest rate during the year | — | % | 2.32 | % | |||||||
Weighted average interest rate at December 31 | — | % | 2.44 | % | |||||||
As of December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Carrying Value |
Fair Value(5)
|
Carrying Value |
Fair Value(5)
|
||||||||||||||||||||
4.60% senior notes due 2045(1)
|
$ | 1,000 | $ | 1,343 | $ | 1,000 | $ | 1,194 | |||||||||||||||
3.75% senior notes due 2046(1)
|
400 | 479 | 400 | 416 | |||||||||||||||||||
4.20% senior notes due 2047(1)
|
400 | 514 | 400 | 449 | |||||||||||||||||||
1.85% senior notes due 2025(2)
|
500 | 526 | — | — | |||||||||||||||||||
British pound term loan(3)
|
— | — | 170 | 170 | |||||||||||||||||||
Euro term loan(3)
|
— | — | 123 | 123 | |||||||||||||||||||
Japanese Yen term loan(4)
|
87 | 87 | — | — | |||||||||||||||||||
Canadian dollar revolving credit facility(3)
|
— | — | 46 | 46 | |||||||||||||||||||
Other | 34 | 34 | 42 | 42 | |||||||||||||||||||
Subtotal | 2,421 | 2,983 | 2,181 | 2,440 | |||||||||||||||||||
Less current maturities | (8) | (8) | (246) | (246) | |||||||||||||||||||
Debt issuance costs and discounts, net of amortization | (24) | (24) | (21) | (21) | |||||||||||||||||||
Long-term debt (less current maturities) | $ | 2,389 | $ | 2,951 | $ | 1,914 | $ | 2,173 |
Year | Payment Amount | |||||||
2021 | $ | 8 | ||||||
2022 | — | |||||||
2023 | 43 | |||||||
2024 | 44 | |||||||
2025 | 500 | |||||||
Thereafter | 1,805 | |||||||
Total | $ | 2,400 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
SG&A | |||||||||||||||||
Service cost | $ | 5 | $ | 4 | $ | 6 | |||||||||||
Other income (expense) | |||||||||||||||||
Interest cost | 6 | 7 | 7 | ||||||||||||||
Expected return on assets | (8) | (12) | (13) | ||||||||||||||
Amortization of prior service credit | (10) | (10) | (10) | ||||||||||||||
Amortization of unrecognized gains | (5) | (4) | (3) | ||||||||||||||
Net periodic (benefits) costs | $ | (12) | $ | (15) | $ | (13) |
2020 | 2019 | ||||||||||
Benefit obligation at beginning of year | $ | 200 | $ | 190 | |||||||
Service cost
|
5 | 4 | |||||||||
Interest cost
|
6 | 7 | |||||||||
Plan participants' contributions
|
3 | 3 | |||||||||
Actuarial (gains)/losses | (38) | 5 | |||||||||
Benefits paid
|
(9) | (9) | |||||||||
Benefit obligation at end of year | $ | 167 | $ | 200 | |||||||
Plan assets available for benefits at beginning of year | $ | 198 | $ | 176 | |||||||
Actual returns on plan assets | 14 | 28 | |||||||||
Plan participants' contributions
|
3 | 3 | |||||||||
Benefits paid
|
(9) | (9) | |||||||||
Plan assets available for benefits at end of year | 206 | 198 | |||||||||
Noncurrent postretirement benefit asset (obligation) | $ | 39 | $ | (2) |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Prior service credit | $ | 51 | $ | 61 | |||||||
Unrecognized gains | 83 | 44 | |||||||||
Deferred tax (liability) | (33) | (26) | |||||||||
Net accumulated gains
|
$ | 101 | $ | 79 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | 3.01 | % | 4.08 | % | 3.44 | % | |||||||||||
Long-term rate of return on plan assets, net of tax | 4.00 | % | 7.13 | % | 7.13 | % | |||||||||||
Initial healthcare cost trend rate | |||||||||||||||||
Pre age 65 | 6.06 | % | 6.31 | % | 6.56 | % | |||||||||||
Post age 65 | NA | NA | NA | ||||||||||||||
Catastrophic drug benefit | NA | NA | 12.50 | % | |||||||||||||
Ultimate healthcare cost trend rate | 4.50 | % | 4.50 | % | 4.50 | % | |||||||||||
Year ultimate healthcare cost trend rate reached | 2026 | 2026 | 2026 | ||||||||||||||
HRA credit inflation index for grandfathered retirees | 2.50 | % | 2.50 | % | 2.50 | % |
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | 2.17 | % | 3.01 | % | 4.08 | % | |||||||||||
Expected long-term rate of return on plan assets, net of tax | 4.00 | % | 4.00 | % | 7.13 | % | |||||||||||
Initial healthcare cost trend rate | |||||||||||||||||
Pre age 65 | 5.81 | % | 6.06 | % | 6.31 | % | |||||||||||
Post age 65 | NA | NA | NA | ||||||||||||||
Catastrophic drug benefit | NA | NA | 11.50 | % | |||||||||||||
Ultimate healthcare cost trend rate | 4.50 | % | 4.50 | % | 4.50 | % | |||||||||||
Year ultimate healthcare cost trend rate reached | 2026 | 2026 | 2026 | ||||||||||||||
HRA credit inflation index for grandfathered retirees | — | % | 2.50 | % | 2.50 | % |
2020 | 2019 | ||||||||||
Asset Class: | |||||||||||
Level 1 Inputs: | |||||||||||
Mutual Funds: | |||||||||||
Funds - Municipal/Provincial Bonds | $ | 13 | $ | — | |||||||
Funds - Corporate Bonds Fund | 5 | — | |||||||||
Federal Money Market Fund | 11 | 204 | |||||||||
Level 2 Inputs: | |||||||||||
Fixed Income: | |||||||||||
Corporate Bonds | 102 | — | |||||||||
Government/Municipal Bonds | 8 | — | |||||||||
Equity Funds | 66 | — | |||||||||
Plan Assets | 205 | 204 | |||||||||
Less: trust assets/(liabilities) | 1 | (6) | |||||||||
Plan assets available for benefits | $ | 206 | $ | 198 |
Year | Estimated Gross Benefit Payments | |||||||
2021 | $ | 9 | ||||||
2022 | 9 | |||||||
2023 | 10 | |||||||
2024 | 10 | |||||||
2025 | 10 | |||||||
2026-2030 | 47 | |||||||
Total | $ | 95 |
As of December 31, 2020 | ||||||||
ROU Assets | ||||||||
Other assets | $ | 210 | ||||||
Operating lease liabilities | ||||||||
Accrued expenses
|
57 | |||||||
Other non-current liabilities
|
162 | |||||||
Total operating lease liabilities | $ | 219 |
Twelve Months Ended December 31, 2020 | ||||||||
Weighted average remaining lease term | 5 years | |||||||
Weighted average incremental borrowing rate | 1.95 | % | ||||||
Cash paid for operating leases | $ | 69 | ||||||
ROU assets obtained in exchange for operating lease obligations | $ | 74 |
Maturity of operating lease liabilities | ||||||||
2021 | $ | 59 | ||||||
2022 | 52 | |||||||
2023 | 40 | |||||||
2024 | 24 | |||||||
2025 | 17 | |||||||
Thereafter | 38 | |||||||
Total lease payments
|
230 | |||||||
Less interest
|
(11) | |||||||
Present value of lease liabilities
|
$ | 219 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Shares |
Weighted
Average Price Per Share |
Shares |
Weighted
Average Price Per Share |
Shares |
Weighted
Average Price Per Share |
|||||||||||||||||||||
Beginning nonvested units | 326,124 | $ | 259.88 | 343,814 | $ | 245.38 | 352,919 | $ | 226.31 | |||||||||||||||||
Issued | 140,815 | $ | 252.11 | 96,823 | $ | 299.25 | 141,775 | $ | 284.98 | |||||||||||||||||
Canceled | (26,254) | $ | 257.56 | (36,224) | $ | 253.22 | (56,393) | $ | 245.08 | |||||||||||||||||
Vested | (123,271) | $ | 252.05 | (78,289) | $ | 247.96 | (94,487) | $ | 233.75 | |||||||||||||||||
Ending nonvested units | 317,414 | $ | 259.67 | 326,124 | $ | 259.88 | 343,814 | $ | 245.38 | |||||||||||||||||
Fair value of shares vested
|
$ | 31 | $ | 19 | $ | 22 | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Outstanding Common Stock | Treasury Stock | Outstanding Common Stock | Treasury Stock | Outstanding Common Stock | Treasury Stock | |||||||||||||||||||||
Balance at beginning of period | 53,687,528 | 55,971,691 | 55,862,360 | 53,796,859 | 56,328,863 | 53,330,356 | ||||||||||||||||||||
Exercise of stock options | 311,374 | (311,374) | 232,052 | (232,052) | 930,258 | (930,258) | ||||||||||||||||||||
Settlement of restricted stock units, net of 41,019, 26,107, and 39,075 shares retained, respectively
|
82,241 | (82,241) | 52,182 | (52,182) | 80,988 | (80,988) | ||||||||||||||||||||
Settlement of performance share units, net of 16,830, 6,737, and 1,027 shares retained, respectively
|
28,098 | (28,098) | 14,027 | (14,027) | 1,911 | (1,911) | ||||||||||||||||||||
Purchase of treasury shares | (1,584,850) | 1,584,850 | (2,473,093) | 2,473,093 | (1,479,660) | 1,479,660 | ||||||||||||||||||||
Balance at end of period | 52,524,391 | 57,134,828 | 53,687,528 | 55,971,691 | 55,862,360 | 53,796,859 |
Foreign Currency Translation and Other | Defined Postretirement Benefit Plan | Other Employment-related Benefit Plans | Total | Foreign Currency Translation Attributable to Noncontrolling Interests | AOCE Attributable to W.W. Grainger, Inc. | ||||||||||||||||||
Balance at January 1, 2018, net of tax | $ | (223) | $ | 73 | $ | (4) | $ | (154) | $ | (19) | $ | (135) | |||||||||||
Other comprehensive earnings (loss) before reclassifications, net of tax | (43) | 4 | (1) | (40) | 3 | (43) | |||||||||||||||||
Amounts reclassified to Net earnings | 2 | (10) | — | (8) | — | (8) | |||||||||||||||||
Amounts reclassified to Retained earnings | — | 15 | — | 15 | — | 15 | |||||||||||||||||
Net current period activity | $ | (41) | $ | 9 | $ | (1) | $ | (33) | $ | 3 | $ | (36) | |||||||||||
Balance at December 31, 2018, net of tax | $ | (264) | $ | 82 | $ | (5) | $ | (187) | $ | (16) | $ | (171) | |||||||||||
Other comprehensive earnings (loss) before reclassifications, net of tax | 25 | 8 | (3) | 30 | 3 | 27 | |||||||||||||||||
Amounts reclassified to Net earnings | 1 | (11) | — | (10) | — | (10) | |||||||||||||||||
Net current period activity | $ | 26 | $ | (3) | $ | (3) | $ | 20 | $ | 3 | $ | 17 | |||||||||||
Balance at December 31, 2019, net of tax | $ | (238) | $ | 79 | $ | (8) | $ | (167) | $ | (13) | $ | (154) | |||||||||||
Other comprehensive earnings (loss) before reclassifications, net of tax | 36 | 33 | — | 69 | 12 | 57 | |||||||||||||||||
Amounts reclassified to Net earnings | 47 | (11) | — | 36 | — | 36 | |||||||||||||||||
Net current period activity | 83 | 22 | — | 105 | 12 | 93 | |||||||||||||||||
Balance at December 31, 2020, net of tax | $ | (155) | $ | 101 | $ | (8) | $ | (62) | $ | (1) | $ | (61) |
Twelve Months Ended December 31, 2020 | |||||||||||||||||||||||||||||
Interest expense, net | Other, net | ||||||||||||||||||||||||||||
Gain or (loss) recognized in earnings | |||||||||||||||||||||||||||||
Fair value hedge: | |||||||||||||||||||||||||||||
Hedged item | $ | (21) | $ | — | |||||||||||||||||||||||||
Interest rate swap designated as hedging instrument | $ | 21 | $ | — | |||||||||||||||||||||||||
Cash flow hedge: | |||||||||||||||||||||||||||||
Hedged item | $ | — | $ | 2 | |||||||||||||||||||||||||
Cross-currency swap designated as hedging instrument | $ | — | $ | (2) | |||||||||||||||||||||||||
Balance Sheet Classification | Fair Value and Carrying Amounts | ||||||||||
Cross-currency swap
|
Other non-current liabilities | $ | 2 | ||||||||
Interest rate swap
|
Other assets | $ | 21 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
U.S. | $ | 1,015 | $ | 1,226 | $ | 1,163 | |||||||||||
Foreign | (68) | (17) | (82) | ||||||||||||||
Total
|
$ | 947 | $ | 1,209 | $ | 1,081 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current income tax expense: | |||||||||||||||||
U.S. Federal
|
$ | 119 | $ | 199 | $ | 166 | |||||||||||
U.S. State
|
28 | 44 | 32 | ||||||||||||||
Foreign
|
65 | 58 | 47 | ||||||||||||||
Total current
|
212 | 301 | 245 | ||||||||||||||
Deferred income tax expense | (20) | 13 | 13 | ||||||||||||||
Total income tax expense | $ | 192 | $ | 314 | $ | 258 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Deferred tax assets: | |||||||||||
Inventory | $ | 14 | $ | 4 | |||||||
Accrued expenses
|
93 | 86 | |||||||||
Foreign operating loss carryforwards
|
45 | 67 | |||||||||
Accrued employment-related benefits
|
37 | 49 | |||||||||
Tax credit carryforward
|
25 | 22 | |||||||||
Other
|
8 | 8 | |||||||||
Deferred tax assets
|
222 | 236 | |||||||||
Less valuation allowance
|
(53) | (72) | |||||||||
Deferred tax assets, net of valuation allowance
|
$ | 169 | $ | 164 | |||||||
Deferred tax liabilities: | |||||||||||
Property, buildings, equipment and other capital assets | (145) | (134) | |||||||||
Intangibles
|
(68) | (83) | |||||||||
Other
|
(10) | (12) | |||||||||
Deferred tax liabilities
|
(223) | (229) | |||||||||
Net deferred tax liability | $ | (54) | $ | (65) | |||||||
The net deferred tax asset (liability) is classified as follows: | |||||||||||
Noncurrent assets
|
$ | 14 | $ | 11 | |||||||
Noncurrent liabilities (foreign) | (68) | (76) | |||||||||
Net deferred tax liability | $ | (54) | $ | (65) |
For the Years Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Balance at beginning of period | $ | (72) | $ | (72) | |||||||
Increases primarily related to foreign NOLs | (16) | (9) | |||||||||
Releases related to foreign NOLs | — | 10 | |||||||||
Foreign subsidiaries tax impacts due to divestiture | 39 | — | |||||||||
Other changes, net | (2) | — | |||||||||
Increase related to U.S. foreign tax credits | (2) | (1) | |||||||||
Balance at end of period | $ | (53) | $ | (72) |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Federal income tax | $ | 199 | $ | 254 | $ | 227 | |||||||||||
State income taxes, net of federal income tax benefit | 33 | 36 | 32 | ||||||||||||||
Clean energy credit | — | — | (20) | ||||||||||||||
Foreign rate difference | 23 | 25 | 20 | ||||||||||||||
Foreign subsidiaries tax impacts due to divestiture | (61) | — | 20 | ||||||||||||||
Change in valuation allowance | 16 | 11 | 4 | ||||||||||||||
Excess tax benefits from stock-based compensation | (4) | (2) | (15) | ||||||||||||||
Other - net | (14) | (10) | (10) | ||||||||||||||
Income tax expense | $ | 192 | $ | 314 | $ | 258 | |||||||||||
Effective tax rate | 20.3 | % | 26.0 | % | 23.9 | % |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of year | $ | 28 | $ | 37 | $ | 45 | |||||||||||
Additions for tax positions related to the current year | 23 | 3 | 4 | ||||||||||||||
Additions for tax positions of prior years | — | 1 | 3 | ||||||||||||||
Reductions for tax positions of prior years | (2) | (1) | (5) | ||||||||||||||
Reductions due to statute lapse | (10) | (10) | (9) | ||||||||||||||
Settlements, audit payments, refunds - net | — | (2) | (1) | ||||||||||||||
Balance at end of year | $ | 39 | $ | 28 | $ | 37 |
2020 | |||||||||||||||||||||||||||||
United States | Canada | Total Reportable Segments | Other businesses | Total | |||||||||||||||||||||||||
Total net sales | $ | 9,070 | $ | 476 | $ | 9,546 | $ | 2,762 | $ | 12,308 | |||||||||||||||||||
Intersegment net sales | (509) | — | (509) | (2) | (511) | ||||||||||||||||||||||||
Net sales to external customers | $ | 8,561 | $ | 476 | $ | 9,037 | $ | 2,760 | 11,797 | ||||||||||||||||||||
Segment operating earnings | $ | 1,299 | $ | (16) | $ | 1,283 | $ | (24) | $ | 1,259 |
2019 | |||||||||||||||||||||||||||||
United States | Canada | Total Reportable Segments | Other businesses | Total | |||||||||||||||||||||||||
Total net sales | $ | 8,815 | $ | 529 | $ | 9,344 | $ | 2,651 | $ | 11,995 | |||||||||||||||||||
Intersegment net sales | (505) | — | (505) | (4) | (509) | ||||||||||||||||||||||||
Net sales to external customers | $ | 8,310 | $ | 529 | $ | 8,839 | $ | 2,647 | $ | 11,486 | |||||||||||||||||||
Segment operating earnings | $ | 1,391 | $ | 3 | $ | 1,394 | $ | (9) | $ | 1,385 |
2018 | |||||||||||||||||||||||||||||
United States | Canada | Total Reportable Segments | Other businesses | Total | |||||||||||||||||||||||||
Total net sales | $ | 8,588 | $ | 653 | $ | 9,241 | $ | 2,441 | $ | 11,682 | |||||||||||||||||||
Intersegment net sales | (457) | — | (457) | (4) | (461) | ||||||||||||||||||||||||
Net sales to external customers | $ | 8,131 | $ | 653 | $ | 8,784 | $ | 2,437 | $ | 11,221 | |||||||||||||||||||
Segment operating earnings | $ | 1,338 | $ | (49) | $ | 1,289 | $ | 8 | $ | 1,297 |
2020 | 2019 | 2018 | |||||||||||||||
Operating earnings: | |||||||||||||||||
Total operating earnings for reportable segments | $ | 1,283 | $ | 1,394 | $ | 1,289 | |||||||||||
Other businesses | (24) | (9) | 8 | ||||||||||||||
Unallocated expenses | (240) | (123) | (139) | ||||||||||||||
Total consolidated operating earnings | $ | 1,019 | $ | 1,262 | $ | 1,158 | |||||||||||
Assets: | |||||||||||||||||
United States | $ | 2,931 | $ | 2,668 | $ | 2,496 | |||||||||||
Canada | 178 | 173 | 188 | ||||||||||||||
Assets for reportable segments | $ | 3,109 | $ | 2,841 | $ | 2,684 | |||||||||||
Other current and noncurrent assets | 2,781 | 3,003 | 2,879 | ||||||||||||||
Unallocated assets | 405 | 161 | 310 | ||||||||||||||
Total consolidated assets | $ | 6,295 | $ | 6,005 | $ | 5,873 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
United States | $ | 113 | $ | 148 | $ | 166 | |||||||||||
Canada | 13 | 17 | 19 | ||||||||||||||
Depreciation and amortization for reportable segments | $ | 126 | $ | 165 | $ | 185 | |||||||||||
Other businesses and unallocated | 43 | 45 | 49 | ||||||||||||||
Total consolidated depreciation and amortization | $ | 169 | $ | 210 | $ | 234 | |||||||||||
Additions to long-lived assets | |||||||||||||||||
United States | $ | 92 | $ | 168 | $ | 200 | |||||||||||
Canada | 3 | 9 | 7 | ||||||||||||||
Additions to long-lived assets for reportable segments | $ | 95 | $ | 177 | $ | 207 | |||||||||||
Other businesses and unallocated | 97 | 72 | 39 | ||||||||||||||
Total consolidated additions to long-lived assets | $ | 192 | $ | 249 | $ | 246 |
2020 | 2019 | 2018 | |||||||||||||||
Revenue by geographic location: | |||||||||||||||||
United States | $ | 9,200 | $ | 8,865 | $ | 8,613 | |||||||||||
Canada | 494 | 539 | 658 | ||||||||||||||
Other foreign countries | 2,103 | 2,082 | 1,950 | ||||||||||||||
$ | 11,797 | $ | 11,486 | $ | 11,221 | ||||||||||||
Long-lived segment assets by geographic location: | |||||||||||||||||
United States | $ | 1,139 | $ | 1,268 | $ | 1,140 | |||||||||||
Canada | 114 | 152 | 136 | ||||||||||||||
Other foreign countries | 287 | 327 | 202 | ||||||||||||||
$ | 1,540 | $ | 1,747 | $ | 1,478 |
2020 Quarter Ended | ||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Total | ||||||||||||||||||||||||||||
Net sales | $ | 3,001 | $ | 2,837 | $ | 3,018 | $ | 2,941 | $ | 11,797 | ||||||||||||||||||||||
COGS | 1,880 | 1,821 | 1,944 | 1,914 | 7,559 | |||||||||||||||||||||||||||
Gross profit | 1,121 | 1,016 | 1,074 | 1,027 | 4,238 | |||||||||||||||||||||||||||
SG&A | 962 | 811 | 694 | 752 | 3,219 | |||||||||||||||||||||||||||
Operating earnings | 159 | 205 | 380 | 275 | 1,019 | |||||||||||||||||||||||||||
Net earnings attributable to W.W. Grainger, Inc.
|
$ | 173 | $ | 114 | $ | 240 | $ | 168 | $ | 695 | ||||||||||||||||||||||
Earnings per share - basic | $ | 3.20 | $ | 2.11 | $ | 4.43 | $ | 3.14 | $ | 12.88 | ||||||||||||||||||||||
Earnings per share - diluted | $ | 3.19 | $ | 2.10 | $ | 4.41 | $ | 3.12 | $ | 12.82 |
2019 Quarter Ended | ||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Total | ||||||||||||||||||||||||||||
Net sales | $ | 2,799 | $ | 2,893 | $ | 2,947 | $ | 2,847 | $ | 11,486 | ||||||||||||||||||||||
COGS | 1,704 | 1,772 | 1,848 | 1,765 | 7,089 | |||||||||||||||||||||||||||
Gross profit | 1,095 | 1,121 | 1,099 | 1,082 | 4,397 | |||||||||||||||||||||||||||
SG&A | 732 | 741 | 761 | 901 | 3,135 | |||||||||||||||||||||||||||
Operating earnings | 363 | 380 | 338 | 181 | 1,262 | |||||||||||||||||||||||||||
Net earnings attributable to W.W. Grainger, Inc.
|
$ | 253 | $ | 260 | $ | 233 | $ | 103 | $ | 849 | ||||||||||||||||||||||
Earnings per share - basic | $ | 4.50 | $ | 4.69 | $ | 4.27 | $ | 1.89 | $ | 15.39 | ||||||||||||||||||||||
Earnings per share - diluted | $ | 4.48 | $ | 4.67 | $ | 4.25 | $ | 1.88 | $ | 15.32 |
W.W. GRAINGER, INC. | |||||
By: | /s/ D.G. Macpherson | ||||
D.G. Macpherson | |||||
Chairman of the Board | |||||
and Chief Executive Officer |
/s/ D.G. Macpherson | /s/ Brian P. Anderson | |||||||
D.G. Macpherson | Brian P. Anderson | |||||||
Chairman of the Board | Director | |||||||
and Chief Executive Officer, Director | ||||||||
(Principal Executive Officer) | /s/ V. Ann Hailey | |||||||
V. Ann Hailey | ||||||||
/s/ Deidra C. Merriwether | Director | |||||||
Deidra C. Merriwether | ||||||||
Senior Vice President | /s/ Stuart L. Levenick | |||||||
and Chief Financial Officer | Stuart L. Levenick | |||||||
(Principal Financial Officer) | Director | |||||||
/s/ Eric R. Tapia | /s/ Neil S. Novich | |||||||
Eric R. Tapia | Neil S. Novich | |||||||
Vice President and Controller | Director | |||||||
(Principal Accounting Officer) | ||||||||
/s/ E. Scott Santi | ||||||||
E. Scott Santi | ||||||||
Director | ||||||||
/s/ Lucas E. Watson | ||||||||
Lucas E. Watson | ||||||||
Director |
EXHIBIT INDEX (1)
|
||||||||
EXHIBIT NO. | DESCRIPTION | |||||||
Share Purchase Agreement, dated as of July 30, 2015, by and among Grainger, GWW UK Holdings Limited, Gregory Family Office Limited and Michael Gregory, incorporated by reference to Exhibit 2.1 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated July 31, 2015. | ||||||||
Restated Articles of Incorporation, incorporated by reference to Exhibit 3(i) to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1998. | ||||||||
By-laws, as amended on March 9, 2017, incorporated by reference to Exhibit 3.1.1 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated March 9, 2017.
|
||||||||
4.1 | No instruments which define the rights of holders of W.W. Grainger, Inc.’s Industrial Development Revenue Bonds are filed herewith, pursuant to the exemption contained in Regulation S-K, Item 601(b)(4)(iii). W.W. Grainger, Inc. hereby agrees to furnish to the SEC, upon request, a copy of any such instrument. | |||||||
Indenture, dated as of June 11, 2015, between W.W. Grainger, Inc. and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.1 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated June 11, 2015. | ||||||||
First Supplemental Indenture, dated as of June 11, 2015, between W.W. Grainger, Inc. and U.S. Bank National Association, as trustee, and Form of 4.60% Senior Notes due 2045, incorporated by reference to Exhibit 4.2 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated June 11, 2015. | ||||||||
Second Supplemental Indenture, dated as of May 16, 2016, between W.W. Grainger, Inc., and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.1 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated May 16, 2016. | ||||||||
Third Supplemental Indenture, dated as of May 22, 2017, between W.W. Grainger, Inc., and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.1 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated May 22, 2017. | ||||||||
Form of 3.75% Senior Notes due 2046 (included in Exhibit 4.4), incorporated by reference to Exhibit 4.2 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated May 16, 2016. | ||||||||
Form of 4.20% Senior Notes due 2047 (included in Exhibit 4.5), incorporated by reference to Exhibit 4.2 to W.W. Grainger, Inc.’s Current Report on Form 8-K dated May 22, 2017. | ||||||||
Description of Registrant's Securities Pursuant to Section 12 of the Securities Exchange Act of 1934. | ||||||||
Fourth Supplemental Indenture, dated as of February 26, 2020, between W.W. Grainger, Inc., and U.S. Bank National Association, as trustee incorporated by reference to Exhibit 4.1 to W.W. Grainger, Inc.'s Current Report on Form 8-K dated February 21, 2020. | ||||||||
Form of 1.85% Senior Notes due 2025 (included in Exhibit 4.1), incorporated by reference to Exhibit 4.2 to W.W. Grainger, Inc.'s Current Report on Form 8-K dated February 21, 2020 | ||||||||
1990 Long-Term Stock Incentive Plan, as amended, incorporated by reference to Exhibit 10(a) to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006.*
|
||||||||
Form of Indemnification Agreement between W.W. Grainger, Inc. and each of its directors and certain of its executive officers, incorporated by reference to Exhibit 10(b)(i) to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.* | ||||||||
Frozen Executive Death Benefit Plan, as amended, incorporated by reference to Exhibit 10(b)(v) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007.* | ||||||||
First amendment to the Frozen Executive Death Benefit Plan, incorporated by reference to Exhibit 10(b)(v)(1) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2008.* | ||||||||
Second amendment to the Frozen Executive Death Benefit Plan, incorporated by reference to Exhibit 10(b)(iv)(2) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2009.* | ||||||||
Supplemental Profit Sharing Plan, as amended, incorporated by reference to Exhibit 10(viii) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2003.* | ||||||||
Supplemental Profit Sharing Plan II, as amended, incorporated by reference to Exhibit 10(b)(ix) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007.* |
Voluntary Salary and Incentive Deferral Plan, as amended, incorporated by reference to Exhibit 10(b)(xi) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007.* | ||||||||
Summary Description of the 2019 Directors Compensation Program.* | ||||||||
2010 Incentive Plan, incorporated by reference to Exhibit B of W.W. Grainger, Inc.’s Proxy Statement dated March 12, 2010.* | ||||||||
Form of Stock Option Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xvi) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2009.* | ||||||||
Form of Stock Option Award and Restricted Stock Unit Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xvii) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2009.* | ||||||||
Form of Restricted Stock Unit Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xviii) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010.* | ||||||||
Form of 2012 Performance Share Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xix) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2012.* | ||||||||
Summary Description of the 2021 Company Management Incentive Program.* | ||||||||
Incentive Program Recoupment Agreement, incorporated by reference to Exhibit 10(b)(xxv) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2009.* | ||||||||
Form of Change in Control Employment Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xxvii) to W.W. Grainger, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010.* | ||||||||
Form of 2013 Performance Share Award Agreement between Grainger and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xxiii) to Grainger's Annual Report on Form 10-K for the year ended December 31, 2013.* | ||||||||
Form of 2014 Performance Share Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10(b)(xxiv) to Grainger's Annual Report on Form 10-K for the year ended December 31, 2014.* | ||||||||
Form of 2015 Performance Share Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.28 to W.W. Grainger, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2015.* | ||||||||
W.W. Grainger, Inc. 2015 Incentive Plan, incorporated by reference to Exhibit B of W.W. Grainger, Inc.’s Proxy Statement dated March 13, 2015.* | ||||||||
First Amendment to the W.W. Grainger, Inc. 2015 Incentive Plan, incorporated by reference to 10.1 of W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.* | ||||||||
W.W. Grainger, Inc. 2015 Incentive Plan as Amended and Restated Effective October 31, 2018, incorporated by reference to Exhibit 10.1 to W.W. Grainger, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018.* | ||||||||
Form of Stock Option Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.1 to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.* | ||||||||
Form of Restricted Stock Unit Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.2 to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.* | ||||||||
Form of 2016 Performance Share Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.3 to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.* | ||||||||
Form of Stock Option Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.2 to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.* | ||||||||
Form of Restricted Stock Unit Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.3 to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.* | ||||||||
Form of 2017 Performance Share Award Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.4 to W.W. Grainger, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.* | ||||||||
Form of 2018 W.W. Grainger, Inc. 2015 Incentive Plan Stock Option Agreement between W.W. Grainger, Inc. and certain of its executive officers, incorporated by reference to Exhibit 10.3 to W.W. Grainger, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.* |
Company Adjusted ROIC
|
Payout as a Percent of Target
|
||||||||||
< 21.4% | 0% | ||||||||||
25.6% | 40% | ||||||||||
27.7% to 29.6% | 50% | ||||||||||
31.7% | 60% | ||||||||||
35.8% | 100% |
Sales Growth =
|
Total Daily Sales, Current Year |
-
|
|||||||||
Total Daily Sales, Prior Year |
Company Daily Sales
|
Payout as a Percent of Target
|
||||||||||
< -1.8% | 0% | ||||||||||
4.1% | 40% | ||||||||||
5.8% to 8.1% | 50% | ||||||||||
9.8% | 60% | ||||||||||
15.7% | 100% |
W.W. GRAINGER, INC.
By: /s/ DG Macpherson
Name: DG Macpherson
Title: Chairman & Chief Executive Officer
|
|||||
Subsidiaries (over 50% ownership) | |||||
Subsidiary | Jurisdiction | ||||
Acklands - Grainger Inc. | Canada | ||||
Apex Industrial Limited | Scotland | ||||
Bogle and Timms Limited | England & Wales | ||||
CJ Bent & Son Limited | England & Wales | ||||
Cromwell Bearings and Transmission Services Limited | England & Wales | ||||
Cromwell Czech Republic s.r.o. | Czech Republic | ||||
Cromwell SAS | France | ||||
Cromwell Group (Holdings) Limited | England & Wales | ||||
Cromwell Group (International) Limited | England & Wales | ||||
Cromwell Industrial Supplies Private Limited | India | ||||
Cromwell Logistics Limited | England & Wales | ||||
Cromwell Poland sp. z.o.o. | Poland | ||||
Cromwell Tools (Norwich) Limited | England & Wales | ||||
Cromwell Tools (Rochester) Limited | England & Wales | ||||
Cromwell Tools (Thailand) Co. Ltd. | Thailand | ||||
Cromwell Tools Limited | England & Wales | ||||
Cromwell Tools SDN BHD | Malaysia | ||||
Cromwell-Siddle (Grimsby) Limited | England & Wales | ||||
Dayton Electric Manufacturing Co. | Illinois | ||||
E & R Industrial Sales, Inc. | Michigan | ||||
E&R Tooling and Solutions de Mexico, S. de R.L. de C.V. | Mexico | ||||
East Midlands Property Developments Limited | England & Wales | ||||
Gamut Supply LLC | Delaware | ||||
GHC Specialty Brands, LLC | Wisconsin | ||||
GMMI LLC | Delaware | ||||
Grainger Brasil Comércio e Distribuição Ltda. | Brazil | ||||
Grainger Brasil Participações Ltda. | Brazil | ||||
Grainger Canada Holdings ULC | Alberta | ||||
Grainger Caribe, Inc. | Illinois | ||||
Grainger Colombia Holding Company, LLC | Delaware | ||||
Grainger Dominicana SRL | Dominican Republic | ||||
Grainger Global Holdings, Inc. | Delaware | ||||
Grainger Global Online Business Ltd | England and Wales | ||||
Grainger Global Trading (Shanghai) Company Limited | People's Republic of China | ||||
Grainger Guam L.L.C. | Guam | ||||
Grainger Industrial Supply India Private Limited | India | ||||
Grainger International Holdings B.V. | Netherlands | ||||
Grainger International, Inc. | Illinois | ||||
Grainger Management LLC | Illinois | ||||
Grainger Mexico LLC | Delaware |
Grainger Panama Services S. de R.L. | Panama | ||||
Grainger Procurement Company LLC | Illinois | ||||
Grainger Registry Services, LLC | Delaware | ||||
Grainger Service Holding Company, Inc. | Delaware | ||||
Grainger Services International Inc. | Illinois | ||||
Grainger Singapore Pte. Ltd. | Singapore | ||||
Grainger, S.A. de C.V. | Mexico | ||||
GWW UK Holdings Ltd. | England and Wales | ||||
Imperial Supplies Holdings, Inc. | Delaware | ||||
Imperial Supplies LLC | Delaware | ||||
India Pacific Brands | Mauritius | ||||
Industrial Supply Alliance Limited | England & Wales | ||||
LN Participações Ltda. | Brazil | ||||
Merlin Business Software Limited | England & Wales | ||||
MonotaRO Co., Ltd. | Japan | ||||
Mountain Ventures WWG IV, LLC | Delaware | ||||
Mountain Ventures WWG V, LLC | Delaware | ||||
Mountain Ventures WWG, LLC | Delaware | ||||
MRO Soluciones, S.A. de C.V. | Mexico | ||||
NAVIMRO Co., Ltd. | Republic of Korea (South Korea) | ||||
Norwell Engineering Limited | England & Wales | ||||
PT Cromwell Tools | Indonesia | ||||
PT MonotaRO Indonesia | Indonesia | ||||
Safety Registry Services, LLC | Delaware | ||||
Safety Solutions, Inc. | Ohio | ||||
Technical Tooling Limited | England & Wales | ||||
Tooling & Engineering Distributors (TED) Limited | Ireland | ||||
Turners (Ironmongers) Limited | England & Wales | ||||
WFS (USA) Ltd. | South Carolina | ||||
WFS Holding Company, Inc. | Michigan | ||||
WFS Ltd. | Ontario | ||||
Windsor Factory Supply Inc. | Michigan | ||||
WWG de Mexico, S.A. de C.V. | Mexico | ||||
WWG Servicios, S.A. de C.V. | Mexico | ||||
WWGH LLC | Delaware | ||||
Zoro IP Holdings, LLC | Illinois | ||||
Zoro Shanghai | People's Republic of China | ||||
Zoro Tools Europe GmbH in Liquidation | Germany | ||||
Zoro Tools, Inc. | Delaware | ||||
Zoro UK Limited | England & Wales |
Subsidiaries (50% and less ownership) | |||||
Subsidiary | Jurisdiction | ||||
Sterling Fabory India Private Ltd. (50%) | India |
(1) | Registration Statement (Form S-3 No. 333-236530) of W. W. Grainger, Inc. | ||||
(2) | Registration Statement (Form S-3 No. 333-203444) of W. W. Grainger, Inc. | ||||
(3) |
Registration Statement (Form S-4 No. 33-32091 and Post-Effective Amendment No.1) of W.W. Grainger, Inc.
|
||||
(4) | Registration Statement (Form S-8 No. 33-43902) pertaining to the 1990 Long Term Stock Incentive Plan of W.W. Grainger, Inc. | ||||
(5) |
Registration Statement (Form S-8 No. 333-166345) pertaining to the 2010 Incentive Plan of W.W. Grainger Inc.
|
||||
(6) |
Registration Statement (Form S-8 No. 333-203715) pertaining to the 2015 Incentive Plan of W.W. Grainger, Inc.
|
By: |
/s/ D.G. Macpherson
|
||||
Name: | D.G. Macpherson | ||||
Title: | Chairman of the Board and Chief Executive Officer |
By: |
/s/ Deidra C. Merriwether
|
||||
Name: | Deidra C. Merriwether | ||||
Title: | Senior Vice President and Chief Financial Officer |
/s/ D.G. Macpherson | ||
D.G. Macpherson | ||
Chairman of the Board and Chief Executive Officer | ||
February 24, 2021 | ||
/s/ Deidra C. Merriwether | ||
Deidra C. Merriwether | ||
Senior Vice President and Chief Financial Officer | ||
February 24, 2021 |