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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 13, 1995
Commission file number 1-5684
I.R.S. Employer Identification Number 36-1150280
W.W. Grainger, Inc.
(An Illinois Corporation)
5500 West Howard St.
Skokie, IL 60077-2699
Telephone (708) 982-9000
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Item 5. Other Events
Item 7. Financial Statements and Exhibits
(c) Exhibits EXHIBIT INDEX
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(99) Copy of News Release, issued by the 3
Company on January 13, 1995, announcing
that the Company will take a fourth
quarter pretax restructuring charge of
$67,097,000, ($48,398,000 or 94 cents per
share on an after tax basis) to recognize
the expected costs associated with
integration efforts.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
W.W. GRAINGER, INC.
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(Registrant)
Date: January 13, 1995 By: /s/ J. D. FLUNO
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J. D. Fluno, Vice Chairman
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Exhibit 99
W.W. GRAINGER, INC. REPORTS A RESTRUCTURING CHARGE
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FOR THE 1994 FOURTH QUARTER
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CHICAGO (January 13, 1995) -- In December 1993, the Company announced its
decision to integrate its sanitary supply businesses with the core
business. Based on the results of that program, the Company announced in
July 1994 its intention to similarly integrate its Allied Safety (safety
products) and Bossert Industrial Supply (production consumable products)
units.
The integration of these business units has been undertaken to
enhance the Company's overall product and service offering, promote sales
growth, improve inventory utilization, and reduce the logistical cost
structure in these product areas. The Company will better respond to
customer needs by accelerating the national availability of the products
formerly offered regionally and by providing a single point of contact for
the Company's products.
In conjunction with the integration of the business units, the
Company has also begun the process of consolidating financial, information
services, and human resources functions.
Today the Company announced that it will take a fourth quarter
pretax restructuring charge of $67,097,000 ($48,398,000 or 94 cents per
share on an after tax basis) to recognize the expected costs associated
with the above efforts. It is currently anticipated that this process
will be fully implemented by the end of 1995.
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The onetime charge consists of the following:
Revaluation of goodwill and
other intangibles $24,249,000
Inventory write-downs 15,461,000
Non-inventory asset write-downs 9,350,000
Severance and related benefits 10,594,000
Lease payments and other
facility expenses 7,443,000
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$67,097,000
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W.W. Grainger, Inc., with 1994 sales of $3 billion, is a
nationwide distributor of equipment, components, and supplies to the
commercial, industrial, contractor, and institutional markets. GWW shares
are traded on the New York and Chicago stock exchanges.
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