XML 36 R20.htm IDEA: XBRL DOCUMENT
v3.6.0.2

STOCK INCENTIVE PLANS | 12 Months Ended
--- | ---
Dec. 31, 2016
STOCK INCENTIVE PLANS [Abstract] |
STOCK INCENTIVE PLANS | STOCK INCENTIVE PLANS The Company maintains stock incentive plans under which the Company may grant a variety of incentive awards to employees and directors. Non-qualified stock options, performance shares, restricted stock units and deferred stock units have been granted and are outstanding under these plans. In 2015, the Company approved the 2015 Incentive Plan (Plan), which replaced all prior active plans. The Plan authorizes the granting of options to purchase shares at a price equal to the closing market price on the date of the grant. As of December 31, 2016, there were 2.9 million shares available for grant under the plans. When options are exercised, shares of the Company’s treasury stock are issued. Pretax stock-based compensation expense was $35 million, $43 million and $46 million in 2016, 2015 and 2014, respectively, and is included in Warehousing, marketing and administrative expenses. Related income tax benefits recognized in earnings were $11 million, $13 million and $15 million in 2016, 2015 and 2014, respectively. Options The Company issues stock option grants to certain employees as part of their incentive compensation. Option awards are granted with an exercise price equal to the closing market price of the Company's stock on the last trading day preceding the date of grant. The options generally vest over three years, although accelerated vesting is provided in certain circumstances. Awards generally expire 10 years from the grant date. Transactions involving stock options are summarized as follows:
| Shares Subject to Option |  | Weighted Average Price Per Share |  | Options Exercisable
Outstanding at January 1, 2014 | 2,850,455 |  |  | $ | 132.67 |  |  | 1,652,417 |
Granted | 257,693 |  |  | $ | 248.21 |  |  |  |
Exercised | (479,452 | ) |  | $ | 100.33 |  |  |  |
Canceled or expired | (45,892 | ) |  | $ | 199.80 |  |  |  |
Outstanding at December 31, 2014 | 2,582,804 |  |  | $ | 149.01 |  |  | 1,647,903 |
Granted | 294,522 |  |  | $ | 232.20 |  |  |  |
Exercised | (587,441 | ) |  | $ | 105.08 |  |  |  |
Canceled or expired | (63,599 | ) |  | $ | 216.76 |  |  |  |
Outstanding at December 31, 2015 | 2,226,286 |  |  | $ | 169.96 |  |  | 1,411,460 |
Granted | 294,874 |  |  | $ | 234.25 |  |  |  |
Exercised | (317,110 | ) |  | $ | 108.28 |  |  |  |
Canceled or expired | (80,014 | ) |  | $ | 210.01 |  |  |  |
Outstanding at December 31, 2016 | 2,124,036 |  |  | $ | 186.59 |  |  | 1,346,707 |
At December 31, 2016, there was $8.6 million of total unrecognized compensation expense related to nonvested option awards, which the Company expects to recognize over a weighted average period of 1.8 years. The following table summarizes information about stock options (in thousands of dollars):
|  | For the years ended December 31,
|  | 2016 |  | 2015 |  | 2014
Fair value of options exercised |  | $ | 8,086 |  |  | $ | 14,423 |  |  | $ | 11,167 |
Total intrinsic value of options exercised |  | 35,800 |  |  | 73,671 |  |  | 71,924 |
Fair value of options vested |  | 14,535 |  |  | 16,047 |  |  | 16,115 |
Settlements of options exercised |  | 34,573 |  |  | 61,863 |  |  | 47,974 |
Information about stock options outstanding and exercisable as of December 31, 2016, is as follows:
|  | Options Outstanding |  | Options Exercisable
|  |  |  | Weighted Average |  |  |  |  | Weighted Average |
Range of Exercise Prices |  | Number |  | Remaining Contractual Life |  | Exercise Price |  | Intrinsic Value (000's) |  | Number |  | Remaining Contractual Life |  | Exercise Price |  | Intrinsic Value (000's)
$72.14 - $85.82 |  | 261,307 |  |  | 1.85 years |  | $ | 80.95 |  |  | $ | 39,536 |  |  | 261,307 |  |  | 1.85 years |  | $ | 80.95 |  |  | $ | 39,536 |
$102.26 - $196.31 |  | 549,608 |  |  | 3.75 years |  | $ | 125.86 |  |  | 58,471 |  |  | 549,608 |  |  | 3.75 years |  | $ | 125.86 |  |  | 58,471 |
$204.01 - $262.14 |  | 1,313,121 |  |  | 7.34 years |  | $ | 233.03 |  |  | (1,020 | ) |  | 535,792 |  |  | 5.86 years |  | $ | 226.51 |  |  | (22 | )
|  | 2,124,036 |  |  | 5.73 years |  | $ | 186.59 |  |  | $ | 96,987 |  |  | 1,346,707 |  |  | 4.22 years |  | $ | 157.19 |  |  | $ | 97,985 |
The Company uses a binomial lattice option pricing model for the valuation of stock options. The weighted average fair value of options granted in 2016, 2015 and 2014 was $44.94, $46.67 and $53.43, respectively. The fair value of each option granted in 2016, 2015 and 2014 used the following assumptions:
|  | For the years ended December 31,
|  | 2016 |  | 2015 |  | 2014
Risk-free interest rate |  | 1.4% |  | 1.5% |  | 2.0%
Expected life |  | 6 years |  | 6 years |  | 6 years
Expected volatility |  | 24.5% |  | 24.9% |  | 25.0%
Expected dividend yield |  | 2.0% |  | 1.9% |  | 1.7%
The risk-free interest rate is selected based on yields from U.S. Treasury zero-coupon issues with a remaining term approximately equal to the expected term of the options being valued. The expected life selected for options granted during each year presented represents the period of time that the options are expected to be outstanding based on historical data of option holder exercise and termination behavior. Expected volatility is based upon implied and historical volatility of the Company's closing stock price over a period equal to the expected life of each option grant. Historical Company information is also the primary basis for selection of expected dividend yield assumptions. Performance Shares The Company awards performance-based shares to certain executives. Receipt of Company stock is contingent upon the Company meeting sales growth and/or return on invested capital (ROIC) goals. Each participant is granted a target number of shares; however the number of shares actually awarded at the end of the performance period can fluctuate from the target award, based upon achievement of the sales or ROIC goals. Performance share value is based upon closing market prices on the last trading day preceding the date of award and is charged to earnings on a ratable basis over the vesting period, primarily three, and up to seven years for certain awards, based on the number of shares expected to vest. Holders of performance share awards are not entitled to receive cash payments equivalent to cash dividends. If the performance shares vest, they will be settled by the Company's issuance of common stock in exchange for the performance shares on a one-for-one basis. The following table summarizes the transactions involving performance-based share awards:
| 2016 |  | 2015 |  | 2014
| Shares |  | Weighted Average Price Per Share |  | Shares |  | Weighted Average Price Per Share |  | Shares |  | Weighted Average Price Per Share
Beginning nonvested shares outstanding | 73,160 |  |  | $ | 232.72 |  |  | 57,236 |  |  | $ | 220.00 |  |  | 57,533 |  |  | $ | 185.02 |
Issued | 60,414 |  |  | $ | 191.38 |  |  | 47,264 |  |  | $ | 227.26 |  |  | 32,194 |  |  | $ | 242.65 |
Canceled | (11,724 | ) |  | $ | 241.41 |  |  | (13,108 | ) |  | $ | 215.01 |  |  | (6,835 | ) |  | $ | 190.90 |
Vested | (23,510 | ) |  | $ | 242.65 |  |  | (18,232 | ) |  | $ | 191.36 |  |  | (25,656 | ) |  | $ | 177.75 |
Ending nonvested shares outstanding | 98,340 |  |  | $ | 203.91 |  |  | 73,160 |  |  | $ | 232.72 |  |  | 57,236 |  |  | $ | 220.00 |
At December 31, 2016, there was $11.5 million of total unrecognized compensation expense related to performance-based share awards that the Company expects to recognize over a weighted average period of 3.2 years. Restricted Stock Units (RSUs) The Company awards restricted stock units (RSUs) to certain employees and executives. RSUs granted vest over periods from three to seven years from issuance, although accelerated vesting is provided in certain instances. Holders of RSUs are entitled to receive non-forfeitable cash payments equivalent to cash dividends and other distributions paid with respect to common stock. RSUs are settled by the issuance of the Company's common stock on a one-for-one basis. Compensation expense related to RSUs is based upon the closing market price on the last trading day preceding the date of award and is charged to earnings on a straight-line basis over the vesting period. The following table summarizes RSU activity:
| 2016 |  | 2015 |  | 2014
| Shares | Weighted Average Price Per Share |  | Shares | Weighted Average Price Per Share |  | Shares | Weighted Average Price Per Share
Beginning nonvested units | 432,783 |  | $ | 213.45 |  |  | 560,351 |  | $ | 182.40 |  |  | 739,717 |  | $ | 154.09 |
Issued | 113,909 |  | $ | 230.36 |  |  | 104,220 |  | $ | 234.21 |  |  | 103,427 |  | $ | 248.12 |
Canceled | (62,869 | ) | $ | 229.70 |  |  | (38,124 | ) | $ | 219.74 |  |  | (51,410 | ) | $ | 170.98 |
Vested | (110,420 | ) | $ | 193.51 |  |  | (193,664 | ) | $ | 133.56 |  |  | (231,383 | ) | $ | 123.82 |
Ending nonvested units | 373,403 |  | $ | 221.77 |  |  | 432,783 |  | $ | 213.45 |  |  | 560,351 |  | $ | 182.40 |
Fair value of shares vested | $21,367 |  |  | $25,865 |  |  | $28,650 |
At December 31, 2016, there was $43 million of total unrecognized compensation expense related to nonvested RSUs that the Company expects to recognize over a weighted average period of 3.0 years.

X
- Definition STOCK INCENTIVE PLANS [Abstract] + References No definition available. + Details
Name: | gww_StockIncentivePlansAbstract
Namespace Prefix: | gww_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration