Item 6. Selected Financial Data

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Item 6. Selected Financial Data



	2016		2015		2014		2013		2012
	(In thousands of dollars, except for per share amounts)
Net sales	$	10,137,204	$	9,973,384	$	9,964,953	$	9,437,758	$	8,950,045
Net earnings attributable to W.W. Grainger, Inc.	605,928		768,996		801,729		797,036		689,881
Net earnings per basic share	9.94		11.69		11.59		11.31		9.71
Net earnings per diluted share	9.87		11.58		11.45		11.13		9.52
Total assets	5,694,307		5,857,755		5,283,049		5,266,328		5,014,598
Long-term debt (less current maturities) and other long-term liabilities	2,159,602		1,716,507		737,232		743,702		817,229
Cash dividends paid per share	$	4.83	$	4.59	$	4.17	$	3.59	$	3.06

Net earnings for 2016 included a net expense of $105 million, or $1.71 per share, consisting of the following:


•	Restructuring: A net charge of $26 million, or $0.43 after-tax earnings per share expense related to restructuring actions. These actions primarily included branch closures, net of gains on sale of branch real estate in the United States (U.S.) and Canadian businesses.


•	Goodwill and intangible impairments: A non-cash impairment charge of $52 million, or $0.85 after-tax earning per share, related to goodwill and intangible impairments in Other Businesses.


•	Unclaimed property contingency: A charge of $23 million, or $0.37 after-tax earnings per share, related to an adjustment for unclaimed property in the U.S. business primarily related to activity from 2008 through 2012.


•	General Services Administration (GSA) contingency: An expense of $6 million, or $0.09 after-tax earnings per share, to increase the U.S. business reserve for certain tax, freight and miscellaneous billing issues in connection with the audit of government contracts with the GSA first entered in 1999.


•	Inventory adjustment: A charge of $7 million, or $0.12 after-tax earnings per share, related to an inventory adjustment in the Canadian business to reflect on updated reserve methodology and better visibility to inventory performance provided by the conversion to the U.S. ERP system.


•	Discrete tax items: A benefit of $9 million, or $0.15 earnings per share, related to the conclusion of the federal income tax audit for the years 2009 through 2012 in the U.S. business and other discrete tax items.

Net earnings for 2015 included a $0.33 per share expense related to reorganization in the U.S. business and at the corporate office, a $0.05 per share expense related to reorganization in the Canadian business and a $0.07 per share expense for restructuring in Other Businesses. Results also included a $0.09 per share benefit primarily related to revaluation of deferred tax liabilities resulting from tax law changes in the United Kingdom. When combined, these items had a net expense effect of $0.36 per share.

Net earnings for 2014 included a $0.40 per share expense related to closing of the business in Brazil, a $0.15 per share non-cash charge due to the retirement plan transition in Europe and a $0.15 per share expense related to restructuring the business in Europe. Results also included a $0.11 per share expense related to a non-cash goodwill impairment charge in Other Businesses. When combined, these items had a net expense effect of $0.81 per share.

Net earnings for 2013 included a $0.29 per share expense related to non-cash impairment charges in Other Businesses, primarily for goodwill. Results also included a $0.10 per share expense related to restructuring the businesses in Europe and China. When combined, these items had a net expense effect of $0.39 per share.

Net earnings for 2012 included a $0.66 per share expense related to the settlement of disputes involving the GSA and United States Postal Service (USPS) contracts in the U.S. business. Results also included a $0.18 per share expense related to restructuring the businesses in Europe, India and China; a $0.04 per share expense due to a non-cash impairment charge in the U.S. business and a $0.03 per share expense related to U.S. branch closures. When combined, these items had a net expense effect of $0.91 per share.

Grainger completed several acquisitions for the years presented above, all of which were immaterial individually and in the aggregate. Operating results have included the results of each business acquired since the respective acquisition dates.

For further information see “Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations.”

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