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These excerpts taken from the GWW 10-K filed Feb 27, 2009. Income
Taxes. Grainger recognizes deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in
the financial statements or tax returns. Under this method, deferred tax assets
and liabilities are determined based on the differences between the financial
reporting and tax bases of assets and liabilities, using enacted tax rates in
effect for the year in which the differences are expected to reverse. The tax
balances and income tax expense recognized by Grainger are based on management’s
interpretations of the tax laws of multiple jurisdictions. Income tax expense
reflects Grainger’s best estimates and assumptions regarding, among other items,
the level of future taxable income, interpretation of tax laws and tax planning
opportunities. Future rulings by tax authorities and future changes in tax laws
and their interpretation, changes in projected levels of taxable income and
future tax planning strategies could impact the actual effective tax rate and
tax balances recorded by Grainger.
Income Taxes. Grainger recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. The tax balances and income tax expense recognized by Grainger are based on management’s interpretations of the tax laws of multiple jurisdictions. Income tax expense reflects Grainger’s best estimates and assumptions regarding, among other items, the level of future taxable income, interpretation of tax laws and tax planning opportunities. Future rulings by tax authorities and future changes in tax laws and their interpretation, changes in projected levels of taxable income and future tax planning strategies could impact the actual effective tax rate and tax balances recorded by Grainger. This excerpt taken from the GWW 10-Q filed Jul 31, 2008. Income Taxes Grainger’s effective tax rate was 38.7% and 38.5% for the first six months of 2008 and 2007, respectively. Excluding the effect of equity in net income of unconsolidated entities, the effective income tax rate was 38.9% for the first six months of 2008 and 38.5% for the first six months of 2007.
W.W. Grainger, Inc. and Subsidiaries MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This excerpt taken from the GWW 10-Q filed May 8, 2008. Income Taxes Grainger’s effective tax rate was 38.7% and 38.6% for the first quarter of 2008 and 2007, respectively. Excluding the effect of equity in net income of unconsolidated entities, the effective income tax rate was 38.9% for the first quarter of 2008 and 38.5% for the first quarter of 2007.
These excerpts taken from the GWW 10-K filed Feb 27, 2008. Income Taxes. Grainger recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. The tax balances and income tax expense recognized by Grainger are based on management’s interpretations of the tax laws of multiple jurisdictions. Income tax expense reflects Grainger’s best estimates and assumptions regarding, among other items, the level of future taxable income, interpretation of tax laws and tax planning opportunities. Future rulings by tax authorities and future changes in tax laws and their
interpretation, changes in projected levels of taxable income and future tax planning strategies could impact the actual effective tax rate and tax balances recorded by Grainger.
Income Taxes. Grainger recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. The tax balances and income tax expense recognized by Grainger are based on management’s interpretations of the tax laws of multiple jurisdictions. Income tax expense reflects Grainger’s best estimates and assumptions regarding, among other items, the level of future taxable income, interpretation of tax laws and tax planning opportunities. Future rulings by tax authorities and future changes in tax laws and their interpretation, changes in projected levels of taxable income and future tax planning strategies could impact the actual effective tax rate and tax balances recorded by Grainger.
This excerpt taken from the GWW 10-Q filed Nov 2, 2007. Income Taxes Grainger’s effective tax rate was 38.5% and 36.8% for the first nine months of 2007 and 2006, respectively. The rate for the first nine months of 2006 includes the benefit from the settlement of a 2004 tax audit, which increased earnings $8.5 million or $0.09 per share. Excluding this benefit and the effect of equity in income of unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.5% for the first nine months of 2007 and 38.9% for 2006. The full year 2006 rate was 36.4% and benefited from the resolution of uncertainties related to the audit of the 2004 tax year and from a reduction of deferred tax liabilities related to property, buildings and equipment.
This excerpt taken from the GWW 10-Q filed Aug 2, 2007. Income Taxes Grainger’s effective tax rate was 38.5% and 38.6% for the first six months of 2007 and 2006, respectively. Excluding the effect of equity in income of unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.5% for the first half of 2007 and 38.9% for 2006. The full year 2006 rate was 36.4% and benefited from the resolution of uncertainties related to the audit of the 2004 tax year and from a reduction of deferred tax liabilities related to property, buildings and equipment.
This excerpt taken from the GWW 10-Q filed May 2, 2007. Income Taxes Grainger’s effective tax rate was 38.6% for the first quarters of both 2007 and 2006. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.5% for the first quarter of 2007 and 38.9% for the first quarter of 2006. The full year 2006 rate was 36.4% and benefited from the resolution of uncertainties related to the audit of the 2004 tax year and from a reduction of deferred tax liabilities related to property, buildings and equipment.
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W.W. Grainger, Inc. and Subsidiaries This excerpt taken from the GWW 10-K filed Feb 27, 2007. Income Taxes. Grainger accounts for income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes.” Under SFAS No. 109, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. The tax balances and income tax expense recognized by Grainger are based on management’s interpretations of the tax laws of multiple jurisdictions. Income tax expense reflects Grainger’s best estimates and assumptions regarding, among other items, the level of future taxable income, interpretation of tax laws and tax planning opportunities. Future rulings by tax authorities and future changes in tax laws and their interpretation, changes in projected levels of
taxable income and future tax planning strategies could impact the actual effective tax rate and tax balances recorded by Grainger.
This excerpt taken from the GWW 10-Q filed Nov 2, 2006. Income Taxes Grainger’s effective tax rate was 36.8% for the first nine months of 2006 and 2005. The rate for the first nine months of 2006 includes the benefit from the settlement of the 2004 tax audit, which added $0.09 to earnings per share. Excluding this benefit and the effect of equity in income of unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.9% for the first nine months of 2006 and 37.0% for 2005. The full year 2005 rate was 35.0% and benefited from a favorable revision to the estimate of income taxes for various state and local tax jurisdictions and the resolution of certain federal and state tax contingencies.
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W.W. Grainger, Inc. and Subsidiaries MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This excerpt taken from the GWW 10-Q filed Aug 2, 2006. Income Taxes Grainger’s effective tax rate was 38.6% and 36.8% for the first six months of 2006 and 2005, respectively. Excluding the effect of equity in income of unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.9% for the first half of 2006 and 37.0% for 2005. The full year 2005 rate was 35.0% and benefited from a favorable revision to the estimate of income taxes for various state and local tax jurisdictions and the resolution of certain federal and state tax contingencies.
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W.W. Grainger, Inc. and Subsidiaries MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This excerpt taken from the GWW 8-K filed Jul 17, 2006. Income Taxes
The Company’s effective income tax rate was 38.7% for the 2006 second quarter and 36.7% for the 2005 second quarter. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.9% for the second quarter of 2006 and 37.0% for the second quarter of 2005. The full year 2005 rate was 35.0% and benefited from a favorable revision to the estimate of income taxes for various state and local tax jurisdictions and the resolution of certain federal and state tax contingencies.
*See footnote, page 9.
W.W. Grainger, Inc. Supplemental Financial Information for the Second Quarter Ended June 30, 2006
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This excerpt taken from the GWW 10-Q filed May 2, 2006. Income Taxes Grainger’s effective tax rate was 38.6% and 36.9% for the first quarter of 2006 and 2005, respectively. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.9% for the first quarter of 2006 and 37.0% for the first quarter of 2005. The full year 2005 rate was 35.0% and benefited from a favorable revision to the estimate of income taxes for various state and local taxing jurisdictions and the resolution of certain federal and state tax contingencies.
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W.W. Grainger, Inc. and Subsidiaries MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This excerpt taken from the GWW 8-K filed Apr 17, 2006. Income Taxes
The Company’s effective income tax rate was 38.6% for the 2006 first quarter and 36.9% for the 2005 first quarter. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.9% for the first quarter of 2006 and 37.0% for the first quarter of 2005. The full year 2005 rate was 35.0% and benefited from a favorable revision to the estimate of income taxes for various state and local taxing jurisdictions and the resolution of certain federal and state tax contingencies.
*See footnote, page 9.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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This excerpt taken from the GWW 10-K filed Mar 6, 2006. Income Taxes. Grainger accounts for income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes.” Under SFAS No. 109, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. The tax balances and income tax expense recognized by Grainger are based on management’s interpretations of the tax laws of multiple jurisdictions. Income tax expense reflects Grainger’s best estimates and assumptions regarding, among other items, the level of future taxable income, interpretation of tax laws and tax planning opportunities. Future rulings by tax authorities and future changes in tax laws and their interpretation, changes in projected levels of taxable income and
future tax planning strategies could impact the actual effective tax rate and tax balances recorded by Grainger.
This excerpt taken from the GWW 8-K filed Jan 26, 2006. Income Taxes
The Company’s effective income tax rate was 30.3% for the 2005 fourth quarter and 29.5% for the 2004 fourth quarter. The 2005 rate included tax benefits related to a favorable revision to the estimate of income taxes for various state taxing jurisdictions and the resolution of federal and state tax contingencies. These benefits increased earnings per share by $0.10.
For 2004, the effective tax rate included the effects of a lower tax rate in Canada and the realization of tax benefits related to operations in Mexico and to capital losses; these reduced the rate 2.0 percentage points. The remaining reduction in the 2004 rate, which increased earnings per share by $0.11, was primarily the result of realized capital loss carrybacks related to investments in securities and the resolution of federal and state tax contingencies.
For 2006, the Company is projecting an effective tax rate of 38.9%, excluding the effects of equity in unconsolidated entities, versus the 2005 effective tax rate of 35.0%, which included the benefit mentioned above.
*See footnote, page 8.
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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This excerpt taken from the GWW 10-Q filed Nov 2, 2005. Income Taxes
Grainger’s effective tax rate was 36.8% for the first nine months of 2005 and 38.0% for the comparable period of 2004. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 37.0% for 2005 and 38.0% for 2004. The one percentage point reduction in the effective tax rate was primarily the result of tax benefits related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the utilization of tax benefits related to operations in Mexico and lower provisions related to uncertainties.
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Table of ContentsW.W. Grainger, Inc. and Subsidiaries MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This excerpt taken from the GWW 8-K filed Oct 17, 2005. Income Taxes
The Company’s effective income tax rate was 36.8% for the 2005 third quarter and 37.8% for the 2004 third quarter. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate for the quarter was 37.0% for 2005 and 38.0% for 2004. The change in effective tax rate was primarily the result of tax benefits related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the utilization of tax benefits related to operations in Mexico, and lower provisions related to uncertainties.
W.W. Grainger, Inc. Supplemental Financial Information for the Third Quarter Ended September 30, 2005
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This excerpt taken from the GWW 8-K filed Jul 15, 2005. Income TaxesThe Company’s effective income tax rate was 36.7% for the 2005 second quarter and 37.9% for the 2004 second quarter. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate for the quarter was 37.0% for 2005 and 38.0% for 2004. The change in effective tax rate was the result of a lower tax rate in Canada and the utilization of tax benefits related to operations in Mexico. *See footnote, page 8.
W.W. Grainger, Inc. Supplemental Financial Information for the Second Quarter Ended June 30, 2005 —3— This excerpt taken from the GWW 8-K filed Apr 15, 2005. Income TaxesThe Company’s effective income tax rate was 36.9% for the 2005 first quarter and 38.1% for the 2004 first quarter. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 37.0% for 2005 and 38.0% for 2004. The change in effective tax rate was the result of a lower tax rate in Canada and the realization of tax benefits related to operations in Mexico. *See footnote, page 8.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2005 —3— This excerpt taken from the GWW 8-K filed Jan 27, 2005. Income TaxesThe Company’s effective income tax rate was 29.5% for the 2004 fourth quarter and 40.9% for the 2003 fourth quarter. This change in effective tax rate included the effects of a lower tax rate in Canada and the realization of tax benefits related to operations in Mexico and to capital losses; these reduced the rate 2.0 percentage points. The remaining reduction in the 2004 rate, which increased earnings per share by $0.11, was primarily the result of realized capital loss carrybacks related to investments in securities and the resolution of federal and state tax contingencies. For 2005, the Company is projecting a 1.0% reduction in its effective tax rate to 37.0%, excluding the effects of equity in unconsolidated entities. *See footnote, page 8.
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2004 —3— | EXCERPTS ON THIS PAGE: |
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