XML 33 R14.htm IDEA: XBRL DOCUMENT
v3.20.4

GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
--- | ---
Dec. 31, 2020
GOODWILL AND OTHER INTANGIBLES [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Canada Business Given the slowdowns in global oil markets and the economic repercussions from the COVID-19 pandemic in Canada, qualitative tests performed in the second quarter of 2020 indicated the existence of impairment indicators for the Canada business. As such, quantitative tests were performed to evaluate whether any impairment of goodwill was necessary. Based on the result of the quantitative tests, the Company concluded that there was no impairment of goodwill. The enterprise value of the Canada business at June 30, 2020 exceeded its carrying value by more than 25%, which is a 10 percentage point decrease since the date of the last quantitative test, December 31, 2019. Per the impairment test and respective sensitivity analysis, it was noted that an increase of approximately 3% in the pre-tax discount rate or approximately 1.5% decrease in revenue long-term growth rate projections would cause the Canada business enterprise value to fall to the level of its carrying value and thus trigger an impairment. During its annual impairment testing the Company performed qualitative goodwill and intangible asset assessments. The Company did not identify any significant events or changes in circumstances that indicated the existence of impairment indicators, as such quantitative assessments were not required. Changes in assumptions regarding future business performance and macroeconomic conditions, particularly the COVID-19 pandemic and global oil prices, may negatively impact demand generation over a long period, future cash flows and enterprise valuations, which could result in future impairments of goodwill and intangible assets for the Canada business. Fabory Business During the first quarter of 2020, the Company impaired Fabory's goodwill and tradenames. Concurrently, consistent with the circumstances leading to the goodwill and tradenames' impairment, the Company performed a recoverability and fair value test of Fabory’s long-lived assets, including property, buildings and equipment and customer lists and relationships and concluded to impair those assets. As a result, the Company recorded impairment charges totaling $133 million, of which $58 million and $75 million were attributable to the goodwill and intangibles, respectively. The impairments of these assets were driven primarily by revenue slowdown in key Fabory markets, gross profit pressures and a flat-to-declining operating margin against a backdrop of industrial sector declines across Europe, which were further amplified by the long-term implications of the COVID-19 pandemic, among other factors. The Company divested Fabory during the second quarter of 2020 (see Note 2 to the Financial Statements). Company Grainger completed its annual impairment testing during the fourth quarter of 2020. Qualitative tests did not indicate existence of impairment indicators, as such quantitative assessments were not required. The balances and changes in the carrying amount of Goodwill (net of cumulative goodwill impairments) by segment are as follows (in millions of dollars):
|  | 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 |
The cumulative goodwill impairments as of December 31, 2020, were $137 million and consisted of $32 million in the Canada business and $105 million in Other businesses. Grainger's current business portfolio had no impairments to goodwill for the twelve months ended December 31, 2020 and 2019. In 2018, there was a $105 million goodwill impairment recorded in SG&A at the Cromwell business in the U.K. The balances and changes in Intangible assets - net are as follows (in millions of dollars):
|  |  | 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 |
(1) During the fourth quarter of 2020, the Company completed a $223 million non-cash retirement of fully amortized capitalized software as a result of the Company's review of long-lived assets. The retirement includes assets that became inactive in prior years and has no impact on amortization expense. The 2019 quantitative test for Cromwell indicated the existence of impairment of the reporting unit’s intangible assets. Cromwell’s declining operating performance and accelerated customer attrition resulted in lowered outlook projections. As a result, the Company concluded that Cromwell’s trade name was fully impaired. Concurrently, as a result of the circumstances leading to trade name impairment, the Company performed a recoverability and fair value test of Cromwell’s customer relationships intangible asset and concluded to impair the asset. The aggregate impairment charge for Cromwell’s intangibles in 2019 amounted to approximately $120 million. Amortization expense of intangible assets presented within SG&A, excluding impairment charges was $60 million, $78 million, and $92 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated amortization expense for future periods is as follows (in millions of dollars):
Year |  | Expense
2021 |  | $ | 63 |
2022 |  | 48 |
2023 |  | 36 |
2024 |  | 18 |
2025 |  | 16 |
Thereafter |  | 19 |
Total |  | $ | 200 |

X
- Definition GOODWILL AND OTHER INTANGIBLES [Abstract] + References No definition available. + Details
Name: | gww_GoodwillAndOtherIntangiblesAbstract
Namespace Prefix: | gww_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration