W.W. Grainger Inc.

03/10/2021 | Press release | Distributed by Public on 03/10/2021 02:27

New Segmentation YTD 2020 Detail

Reported 2020

New Segment Information (Reported Results)
In Millions
FY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Revenue GP SG&A OE Revenue GP SG&A OE Revenue GP SG&A OE Revenue GP SG&A OE Revenue GP SG&A OE
Prior U.S. Segment $ 9,070 $ 3,333 $ 2,034 $ 1,299 $ 2,307 $ 881 $ 541 $ 340 $ 2,169 $ 795 $ 477 $ 318 $ 2,347 $ 855 $ 501 $ 354 $ 2,247 $ 802 $ 515 $ 287
Less: Former Intercompany Sales and Related GP (Prior U.S. Segment sales to Affiliates) (509) (37) - (37) (133) (10) - (10) (118) (8) - (8) (131) (9) - (9) (127) (10) - (10)
Reclassify: GP Impact to SG&A Service Fee - - (37) 37 - - (10) 10 - - (8) 8 - - (9) 9 - - (10) 10
Add: Allocable Corporate Costs - - 124 (124) - - 30 (30) - - 35 (35) - - 27 (27) - - 32 (32)
U.S. $ 8,561 $ 3,296 $ 2,121 $ 1,175 $ 2,174 $ 871 $ 561 $ 310 $ 2,051 $ 787 $ 504 $ 283 $ 2,216 $ 846 $ 519 $ 327 $ 2,120 $ 792 $ 537 $ 255
Canada 476 151 167 (16) 129 41 44 (3) 107 34 37 (3) 116 37 35 2 124 39 51 (12)
Other High-Touch Solutions (N.A.) - Mexico/P.R. 184 77 54 23 52 22 15 7 39 17 12 5 45 18 13 5 48 20 14 6
Total High-Touch Solutions (N.A.) $ 9,221 $ 3,524 $ 2,342 $ 1,182 $ 2,355 $ 934 $ 620 $ 314 $ 2,197 $ 838 $ 553 $ 285 $ 2,377 $ 901 $ 567 $ 334 $ 2,292 $ 851 $ 602 $ 249
MonotaRO $ 1,436 $ 378 $ 203 $ 175 $ 315 $ 84 $ 47 $ 37 $ 355 $ 93 $ 50 $ 43 $ 371 $ 96 $ 49 $ 47 $ 395 $ 105 $ 57 $ 48
Zoro 717 219 207 12 177 54 53 1 164 50 48 2 194 58 54 4 182 57 52 5
Other Endless Assortment 25 4 25 (21) 4 - 0 3 (3) 6 1 4 (3) 7 2 5 (3) 8 1 13 (12)
Total Endless Assortment $ 2,178 $ 601 $ 435 $ 166 $ 496 $ 138 $ 103 $ 35 $ 525 $ 144 $ 102 $ 42 $ 572 $ 156 $ 108 $ 48 $ 585 $ 163 $ 122 $ 41
Cromwell $ 247 $ 63 $ 98 $ (35) $ 76 $ 22 $ 25 $ (3) $ 47 $ 13 $ 20 $ (7) $ 60 $ 15 $ 25 $ (10) $ 64 $ 13 $ 28 $ (15)
Other 151 50 344 (294) 74 27 214 (187) 68 21 136 (115) 9 2 (6) 8 - 0 - 0 - 0 - 0
Total Other $ 398 $ 113 $ 442 $ (329) $ 150 $ 49 $ 239 $ (190) $ 115 $ 34 $ 156 $ (122) $ 69 $ 17 $ 19 $ (2) $ 64 $ 13 $ 28 $ (15)
Total Company $ 11,797 $ 4,238 $ 3,219 $ 1,019 $ 3,001 $ 1,121 $ 962 $ 159 $ 2,837 $ 1,016 $ 811 $ 205 $ 3,018 $ 1,074 $ 694 $ 380 $ 2,941 $ 1,027 $ 752 $ 275
Metrics (Reported)
Rates based on Thousands
Prior U.S. Segment 36.7% 22.4% 14.3% 38.2% 23.4% 14.7% 36.7% 22.0% 14.6% 36.4% 21.3% 15.1% 35.7% 22.9% 12.8%
U.S. 38.5% 24.8% 13.7% 40.1% 25.8% 14.2% 38.4% 24.6% 13.8% 38.2% 23.4% 14.7% 37.4% 25.3% 12.0%
Canada 31.6% 35.1% -3.4% 31.3% 33.9% -2.6% 31.5% 34.0% -2.5% 32.3% 30.5% 1.9% 31.5% 41.5% -10.0%
Other High-Touch Solutions (N.A.) - Mexico/P.R. 41.7% 29.0% 12.7% 42.9% 28.4% 14.5% 43.0% 31.3% 11.7% 41.5% 28.7% 12.8% 39.5% 27.9% 11.6%
Total High-Touch Solutions (N.A.) 38.2% 25.4% 12.8% 39.6% 26.3% 13.3% 38.1% 25.1% 13.0% 37.9% 23.9% 14.1% 37.1% 26.3% 10.8%
MonotaRO 26.4% 14.1% 12.2% 26.6% 14.9% 11.7% 26.2% 14.0% 12.2% 26.1% 13.5% 12.6% 26.6% 14.3% 12.2%
Zoro 30.6% 28.9% 1.6% 30.2% 29.9% 0.3% 30.6% 29.2% 1.3% 30.1% 28.1% 2.0% 31.3% 28.5% 2.8%
Other Endless Assortment 14.7% 96.8% -82.1% 9.4% 95.0% -85.6% 14.7% 76.7% -62.0% 16.4% 56.7% -40.3% 15.2% 145.7% -130.6%
Total Endless Assortment 27.6% 20.0% 7.6% 27.8% 20.7% 7.0% 27.4% 19.4% 8.0% 27.3% 19.0% 8.3% 27.9% 20.7% 7.2%
Cromwell 25.5% 39.8% -14.3% 29.2% 33.9% -4.7% 27.7% 42.5% -14.8% 24.7% 40.8% -16.1% 20.4% 43.9% -23.5%
Other 33.2% 228.6% -195.4% 36.9% 287.0% -250.2% 30.6% 198.6% -168.0% 21.7% -67.0% 88.7% N/A N/A N/A
Total Other 28.4% 111.2% -82.7% 33.0% 159.1% -126.1% 29.4% 135.1% -105.7% 24.3% 28.6% -4.3% 20.4% 43.7% -23.3%
Total Company 35.9% 27.3% 8.6% 37.4% 32.1% 5.3% 35.8% 28.5% 7.3% 35.6% 23.1% 12.6% 34.9% 25.5% 9.4%

Adjusted 2020

New Segment Information (Adjusted Results)1
In Millions
FY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Revenue GP SG&A OE Revenue GP SG&A OE Revenue GP SG&A OE Revenue GP SG&A OE Revenue GP SG&A OE
Prior U.S. Segment $ 9,070 $ 3,333 $ 2,028 $ 1,305 $ 2,307 $ 881 $ 535 $ 346 $ 2,169 $ 795 $ 477 $ 318 $ 2,347 $ 855 $ 501 $ 354 $ 2,247 $ 802 $ 515 $ 287
Less: Former Intercompany Sales and Related GP (Prior U.S. Segment sales to Affiliates) (509) (37) - (37) (133) (10) - (10) (118) (8) - (8) (131) (9) - (9) (127) (10) - (10)
Reclassify: GP Impact to SG&A Service Fee - - (37) 37 - - (10) 10 - - (8) 8 - - (9) 9 - - (10) 10
Add: Allocable Corporate Costs - - 124 (124) - - 30 (30) - - 35 (35) - - 27 (27) - - 32 (32)
U.S. $ 8,561 $ 3,296 $ 2,115 $ 1,181 $ 2,174 $ 871 $ 555 $ 316 $ 2,051 $ 787 $ 504 $ 283 $ 2,216 $ 846 $ 519 $ 327 $ 2,120 $ 792 $ 537 $ 255
Canada 476 151 155 (4) 129 41 43 (2) 107 34 36 (2) 116 37 36 1 124 39 40 (1)
Other High-Touch Solutions (N.A.) - Mexico/P.R. 184 77 54 23 52 22 15 7 39 17 12 5 45 18 13 5 48 20 14 6
Total High-Touch Solutions (N.A.) $ 9,221 $ 3,524 $ 2,324 $ 1,200 $ 2,355 $ 934 $ 613 $ 321 $ 2,197 $ 838 $ 552 $ 286 $ 2,377 $ 901 $ 568 $ 333 $ 2,292 $ 851 $ 591 $ 260
MonotaRO $ 1,436 $ 378 $ 203 $ 175 $ 315 $ 84 $ 47 $ 37 $ 355 $ 93 $ 50 $ 43 $ 371 $ 96 $ 49 $ 47 $ 395 $ 105 $ 57 $ 48
Zoro 717 219 207 12 177 54 53 1 164 50 48 2 194 58 54 4 182 57 52 5
Other Endless Assortment 25 4 16 (12) 4 - 0 3 (3) 6 1 4 (3) 7 2 5 (3) 8 1 4 (3)
Total Endless Assortment $ 2,178 $ 601 $ 426 $ 175 $ 496 $ 138 $ 103 $ 35 $ 525 $ 144 $ 102 $ 42 $ 572 $ 156 $ 108 $ 48 $ 585 $ 163 $ 113 $ 50
Cromwell $ 247 $ 63 $ 98 $ (35) $ 76 $ 22 $ 25 $ (3) $ 47 $ 13 $ 20 $ (7) $ 60 $ 15 $ 25 $ (10) $ 64 $ 13 $ 28 $ (15)
Other 151 50 63 (13) 74 27 37 (10) 68 21 27 (6) 9 2 (1) 3 - 0 - 0 - 0 - 0
Total Other $ 398 $ 113 $ 161 $ (48) $ 150 $ 49 $ 62 $ (13) $ 115 $ 34 $ 47 $ (13) $ 69 $ 17 $ 24 $ (7) $ 64 $ 13 $ 28 $ (15)
Total Company $ 11,797 $ 4,238 $ 2,911 $ 1,327 $ 3,001 $ 1,121 $ 778 $ 343 $ 2,837 $ 1,016 $ 701 $ 315 $ 3,018 $ 1,074 $ 700 $ 374 $ 2,941 $ 1,027 $ 732 $ 295
Metrics (Adjusted)
Rates based on Thousands
Prior U.S. Segment 36.7% 22.4% 14.4% 38.2% 23.2% 15.0% 36.7% 22.0% 14.7% 36.4% 21.4% 15.1% 35.7% 22.9% 12.8%
U.S. 38.5% 24.7% 13.8% 40.1% 25.6% 14.5% 38.4% 24.6% 13.8% 38.2% 23.4% 14.7% 37.4% 25.3% 12.0%
Canada 31.6% 32.5% -0.9% 31.3% 33.0% -1.7% 31.5% 33.6% -2.2% 32.3% 31.1% 1.2% 31.5% 32.3% -0.7%
Other High-Touch Solutions (N.A.) - Mexico/P.R. 41.7% 29.0% 12.7% 42.9% 28.4% 14.5% 43.0% 31.3% 11.7% 41.5% 28.7% 12.8% 39.5% 27.9% 11.6%
Total High-Touch Solutions (N.A.) 38.2% 25.2% 13.0% 39.6% 26.1% 13.6% 38.1% 25.1% 13.0% 37.9% 23.9% 14.0% 37.1% 25.8% 11.3%
MonotaRO 26.4% 14.1% 12.2% 26.6% 14.9% 11.7% 26.2% 14.0% 12.2% 26.1% 13.5% 12.6% 26.6% 14.3% 12.2%
Zoro 30.6% 28.9% 1.6% 30.2% 29.9% 0.3% 30.6% 29.2% 1.3% 30.1% 28.1% 2.0% 31.3% 28.5% 2.8%
Other Endless Assortment 14.7% 62.6% -47.9% 9.4% 95.0% -85.6% 14.7% 76.7% -62.0% 16.4% 56.7% -40.3% 15.2% 47.7% -32.6%
Total Endless Assortment 27.6% 19.6% 8.0% 27.8% 20.7% 7.0% 27.4% 19.4% 8.0% 27.3% 19.0% 8.3% 27.9% 19.2% 8.6%
Cromwell 25.5% 39.8% -14.3% 29.2% 33.9% -4.7% 27.7% 42.5% -14.8% 24.7% 40.8% -16.1% 20.4% 43.9% -23.5%
Other 33.2% 41.3% -8.1% 36.9% 48.6% -11.7% 30.6% 38.5% -7.9% 21.7% -1.8% 23.4% N/A N/A N/A
Total Other 28.4% 40.4% -11.9% 33.0% 41.1% -8.1% 29.4% 40.1% -10.7% 24.3% 36.0% -11.7% 20.4% 43.7% -23.3%
Total Company 35.9% 24.7% 11.2% 37.4% 25.9% 11.4% 35.8% 24.7% 11.1% 35.6% 23.3% 12.4% 34.9% 24.9% 10.0%
1 Please refer to tabs 'TC GAAP-NonGAAP', 'HTSNA GAAP-NonGAAP', 'EA GAAP-NonGAAP' and 'Other GAAP-NonGAAP' for reconciliations of non-GAAP measures to the most directly comparable GAAP measures.

TC GAAP-NonGAAP

GAAP to Non-GAAP Reconciliations
Total Company
In millions
FY '20 GM Q1 '20 GM Q2 '20 GM Q3 '20 GM Q4 '20 GM
Total company gross profit reported $ 4,238 35.9% $ 1,121 37.4% $ 1,016 35.8% $ 1,074 35.6% $ 1,027 34.9%
Total company gross profit adjusted $ 4,238 35.9% $ 1,121 37.4% $ 1,016 35.8% $ 1,074 35.6% $ 1,027 34.9%
In millions
FY '20 OM Q1 '20 OM Q2 '20 OM Q3 '20 OM Q4 '20 OM
Total company operating earnings reported $ 1,019 8.6% $ 159 5.3% $ 205 7.3% $ 380 12.6% $ 275 9.4%
Restructuring, net (High-Touch Solutions (N.A.)) 18 7 1 (1) 11
Restructuring, net (Endless Assortment) 9 - - - 9
Other:
Impairment charges 177 177 - - -
Fabory divestiture 109 - 109 - -
Grainger China divestiture (5) - - (5) -
Subtotal - other 281 177 109 (5) -
Subtotal - total company 308 2.6% 184 6.1% 110 3.8% (6) -0.2% 20 0.6%
Total company operating earnings adjusted $ 1,327 11.2% $ 343 11.4% $ 315 11.1% $ 374 12.4% $ 295 10.0%
Note: The reconciliations for reported SG&A to adjusted SG&A contain the same adjustments in the same amounts presented in the reported gross profit to adjusted gross profit and reported operating earnings to adjusted operating earnings tables, therefore no separate reconciliation is provided.

HTSNA GAAP-NonGAAP

GAAP to Non-GAAP Reconciliations
High-Touch Solutions (N.A.)
In millions
FY '20 GM Q1 '20 GM Q2 '20 GM Q3 '20 GM Q4 '20 GM
HTSNA gross profit reported $ 3,524 38.2% $ 934 39.6% $ 838 38.1% $ 901 37.9% $ 851 37.1%
HTSNA gross profit adjusted $ 3,524 38.2% $ 934 39.6% $ 838 38.1% $ 901 37.9% $ 851 37.1%
In millions
FY '20 OM Q1 '20 OM Q2 '20 OM Q3 '20 OM Q4 '20 OM
HTSNA operating earnings reported $ 1,182 12.8% $ 314 13.3% $ 285 13.0% $ 334 14.1% $ 249 10.8%
Restructuring, net (U.S.) 6 6 - - -
Restructuring, net (Canada) 12 1 1 (1) 11
Subtotal - total company 18 0.2% 7 0.3% 1 0.0% (1) -0.1% 11 0.5%
HTSNA operating earnings adjusted $ 1,200 13.0% $ 321 13.6% $ 286 13.0% $ 333 14.0% $ 260 11.3%
Note: The reconciliations for reported SG&A to adjusted SG&A contain the same adjustments in the same amounts presented in the reported gross profit to adjusted gross profit and reported operating earnings to adjusted operating earnings tables, therefore no separate reconciliation is provided.

EA GAAP-NonGAAP

GAAP to Non-GAAP Reconciliations
Endless Assortment
In millions
FY '20 GM Q1 '20 GM Q2 '20 GM Q3 '20 GM Q4 '20 GM
EA gross profit reported $ 601 27.6% $ 138 27.8% $ 144 27.4% $ 156 27.3% $ 163 27.9%
EA gross profit adjusted $ 601 27.6% $ 138 27.8% $ 144 27.4% $ 156 27.3% $ 163 27.9%
In millions
FY '20 OM Q1 '20 OM Q2 '20 OM Q3 '20 OM Q4 '20 OM
EA operating earnings reported $ 166 7.6% $ 35 7.0% $ 42 8.0% $ 48 8.3% $ 41 7.2%
Restructuring, net (Other Endless Assortment) 9 - - - 9
Subtotal - total company 9 0.4% - 0.0% - 0.0% - 0.0% 9 1.4%
EA operating earnings adjusted $ 175 8.0% $ 35 7.0% $ 42 8.0% $ 48 8.3% $ 50 8.6%
Note: The reconciliations for reported SG&A to adjusted SG&A contain the same adjustments in the same amounts presented in the reported gross profit to adjusted gross profit and reported operating earnings to adjusted operating earnings tables, therefore no separate reconciliation is provided.

Other GAAP-NonGAAP

GAAP to Non-GAAP Reconciliations
Other
In millions
FY '20 GM Q1 '20 GM Q2 '20 GM Q3 '20 GM Q4 '20 GM
Other gross profit reported $ 113 28.4% $ 49 33.0% $ 34 29.4% $ 17 24.3% $ 13 20.4%
Other gross profit adjusted $ 113 28.4% $ 49 33.0% $ 34 29.4% $ 17 24.3% $ 13 20.4%
In millions
FY '20 OM Q1 '20 OM Q2 '20 OM Q3 '20 OM Q4 '20 OM
Other operating earnings reported $ (329) -82.7% $ (190) -126.1% $ (122) -105.7% $ (2) -4.3% $ (15) -23.3%
Impairment charges (Other) 177 177 - - -
Fabory divestiture (Other) 109 - 109 - -
Grainger China divestiture (Other) (5) - - (5) -
Subtotal - total company 281 70.8% 177 118.0% 109 95.0% (5) -7.4% - 0.0%
Other operating earnings adjusted $ (48) -11.9% $ (13) -8.1% $ (13) -10.7% $ (7) -11.7% $ (15) -23.3%
Note: The reconciliations for reported SG&A to adjusted SG&A contain the same adjustments in the same amounts presented in the reported gross profit to adjusted gross profit and reported operating earnings to adjusted operating earnings tables, therefore no separate reconciliation is provided.