Company: GWW
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000277135-25-000010
Chunk: 38

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 38
---
.2%
Diluted earnings per share                                          $36.23                                                       $0.44                                                      $36.67                                                                 20.5%                                                       23.6%
(1) Reflects restructuring costs incurred in the second quarter of 2024 and the loss on divestiture of E&amp;R in the fourth quarter of 2023.                                                                                                                                                                                       
(2) Compared to the reported and adjusted results of the prior year period.                                                                                                                                                                                                                                                         
(3) Grainger's businesses reported in Other do not meet the criteria of a reportable segment.                                                                                                                                                                                                                                       
(4) Reflects a tax benefit related to the restructuring costs incurred in the second quarter of 2024. Grainger's reported and adjusted effective tax rates were 23.0% for the year ended December 31, 2024.                                                                                                                         
(5) Reflects a one-time tax benefit recognized upon the divestiture of E&amp;R in the fourth quarter of 2023. Grainger's reported and adjusted effective tax rates were 23.9% and 23.8%, respectively, for the year ended December 31, 2023.                                                                                        

 32

Liquidity and Capital Resources
Grainger believes its current balances of cash and cash equivalents, marketable securities and availability under its revolving credit facility will be sufficient to meet its liquidity needs for the next twelve months. The Company expects to continue to invest in its business and return excess cash to shareholders through cash dividends and share repurchases, which it plans to fund through cash flows generated from operations. Grainger also maintains access to capital markets and may issue debt or equity securities from time to time, which may provide an additional source of liquidity.
Sources of Liquidity
Cash and Cash Equivalents 
As of December 31, 2024 and 2023, Grainger had cash and cash equivalents of $1,036 million and $660 million, respectively. The increase in cash was primarily due to cash flows from operations and issuance of new long-term debt, partially offset by continued capital expenditure spend and higher volume of share repurchases. The Company had approximately $2.3 billion in available liquidity as of December 31, 2024.
Cash Flows
The following table shows the Company's cash flow activity for the periods presented (in millions of dollars):

                                                                                        For the Years Ended December 31,
2024                                                                                                                2023
Total cash provided by (used in):                                                                                       
Operating activities                                                    $