W.W. GRAINGER, INC. Earnings Per Share Disclosure
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net earnings attributable to W.W. Grainger, Inc. as reported | $ | 782 | $ | 586 | $ | 606 | |||||
Distributed earnings available to participating securities | (2 | ) | (2 | ) | (2 | ) | |||||
Undistributed earnings available to participating securities | (4 | ) | (3 | ) | (3 | ) | |||||
Numerator for basic earnings per share - Undistributed and distributed earnings available to common shareholders | 776 | 581 | 601 | ||||||||
Undistributed earnings allocated to participating securities | 4 | 3 | 3 | ||||||||
Undistributed earnings reallocated to participating securities | (4 | ) | (3 | ) | (3 | ) | |||||
Numerator for diluted earnings per share - Undistributed and distributed earnings available to common shareholders | $ | 776 | $ | 581 | $ | 601 | |||||
Denominator for basic earnings per share – weighted average shares | 56,142,604 | 57,674,977 | 60,430,892 | ||||||||
Effect of dilutive securities | 391,581 | 308,190 | 409,038 | ||||||||
Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities | 56,534,185 | 57,983,167 | 60,839,930 | ||||||||
Earnings per share two-class method | |||||||||||
Basic | $ | 13.82 | $ | 10.07 | $ | 9.94 | |||||
Diluted | $ | 13.73 | $ | 10.02 | $ | 9.87 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2018 | Feb 28, 2019 | Showing above |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.