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Cover and table of contents

10-K 1 gww20181231-10k.htm 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission file number 1-5684

W.W. Grainger, Inc.

(Exact name of registrant as specified in its charter)

Illinois36-1150280
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
100 Grainger Parkway, Lake Forest, Illinois60045-5201
(Address of principal executive offices)(Zip Code)
(847) 535-1000
(Registrant’s telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each className of each exchange on which registered
Common Stock $0.50 par valueNew York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [X] No [ ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [X]Accelerated filer [ ]Non-accelerated filer [ ]Smaller reporting company [ ]Emerging growth company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [ ] No [X]

The aggregate market value of the voting common equity held by nonaffiliates of the registrant was $16,101,319,439 as of the close of trading as reported on the New York Stock Exchange on June 30, 2018. The Company does not have nonvoting common equity.

The registrant had 55,679,223 shares of the Company’s Common Stock outstanding as of January 31, 2019.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive proxy statement to be filed in connection with the annual meeting of shareholders to be held on April 24, 2019, are incorporated by reference into Part III hereof of this Form 10-K where indicated the definitive 2018 proxy statement will be filed on or about March 15, 2019.

TABLE OF CONTENTSPage
PART I
Item 1:BUSINESS3
Item 1A:RISK FACTORS8
Item 1B:UNRESOLVED STAFF COMMENTS12
Item 2:PROPERTIES13
Item 3:LEGAL PROCEEDINGS13
Item 4:MINE SAFETY DISCLOSURES13
Item 4A:EXECUTIVE OFFICERS OF THE REGISTRANT14
PART II
Item 5:MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER15
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Item 6:SELECTED FINANCIAL DATA17
Item 7:MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL18
CONDITION AND RESULTS OF OPERATIONS
Item 7A:QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK32
Item 8:FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA32
Item 9:CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS32
ON ACCOUNTING AND FINANCIAL DISCLOSURE
Item 9A:CONTROLS AND PROCEDURES33
Item 9B:OTHER INFORMATION33
PART III
Item 10:DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE34
Item 11:EXECUTIVE COMPENSATION34
Item 12:SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS34
Item 13:CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE34
Item 14:PRINCIPAL ACCOUNTANT FEES AND SERVICES34
PART IV
Item 15:EXHIBITS AND FINANCIAL STATEMENT SCHEDULES35
Item 16:FORM 10-K SUMMARY35
Signatures75

PART I

Next: Item 1. Business