Company: GWW
Filing Date: 2025-02-20
Form Type: PRE 14A
Source: 0001104659-25-015730
Chunk: 121

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: PRE 14A
Chunk 121
---
arnings Presentation included on the Company’s website. As it relates to Grainger’s prior year financial targets and results for its MIP and PSU grants, including the Company’s reconciliations of its non-GAAP and other financial measures to the directly comparable GAAP measure, refer to the Company’s proxy statement on Form DEF 14A filed with the U.S. Securities and Exchange Commission (SEC) on March 16, 2023. Non-GAAP Financial Measures and Compensation Metric Definitions

| Measure                                                    
 Adjusted ROIC—Total Company (MIP)                          
 Daily, Organic Constant Currency Sales—Total Company (MIP) | ​ 
 ​ 
 ​ | ​ 
 ​ 
 ​ | Non-GAAP Definition                                                                                                                                                                                                                                                                                                                                                                                                                                       
 The Company’s adjusted operating earnings for the period divided by average net working assets (a five-point average year-to-date).                                                                                                                                                                                                                                                                                                                       
 The Company’s year-over-year sales growth adjusted for the difference in U.S. selling days relative to the prior year period. The measure also excludes the sales of certain divested businesses in the prior year period post date of divestiture and the impact on the Company’s sales due to foreign currency exchange rate fluctuations.                                                                                                              | ​ 
 ​ 
 ​ | ​ 
 ​ 
 ​ | Modifications to Non-GAAP                                                                                          
 Modified for the Company’s current year planned foreign currency exchange rates used when setting initial targets. 
 Modified for the Company’s current year planned foreign currency exchange rates used when setting initial targets. | ​ 
 ​ 
 ​ | ​ 
 ​ 
 ​ | Rationale                                                                                                                                        
 Provides useful information regarding how effectively the Company is using capital to generate financial returns.                                
 Provides a better baseline for analyzing the Company’s ongoing performance excluding items that may not be indicative of core operating results. | ​ 
 ​ 
 ​ |
|:-----------------------------------------------------------|:--|:--|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--|:--|:-------------------------------------------------------------------------------------------------------------------|:--|:--|:-------------------------------------------------------------------------------------------------------------------------------------------------|:--|
| Share Gain—High-Touch Solutions—U.S. (PSU)                 | ​ | ​ | “U.S. share gain” is a relative metric using High-Touch Solutions—U.S. daily sales growth, excluding the sales of certain divested businesses in prior year period post date of divestiture, less estimated U.S. MRO market growth. The U.S. MRO market is based on Company estimates using a compilation of IP—NAICS Manufacturing sub-index (volume component)