| EARNINGS PER SHARE |
EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in thousands of dollars, except for share and per share amounts): | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | 2014 | | 2013 | | 2014 | | 2013 | Net earnings attributable to W.W. Grainger, Inc. as reported | $ | 205,915 |
| | $ | 217,660 |
| | $ | 422,568 |
| | $ | 429,498 |
| Distributed earnings available to participating securities | (727 | ) | | (826 | ) | | (1,562 | ) | | (1,717 | ) | Undistributed earnings available to participating securities | (1,666 | ) | | (2,265 | ) | | (3,765 | ) | | (5,006 | ) | Numerator for basic earnings per share – Undistributed and distributed earnings available to common shareholders | 203,522 |
| | 214,569 |
| | 417,241 |
| | 422,775 |
| Undistributed earnings allocated to participating securities | 1,666 |
| | 2,265 |
| | 3,765 |
| | 5,006 |
| Undistributed earnings reallocated to participating securities | (1,645 | ) | | (2,230 | ) | | (3,716 | ) | | (4,925 | ) | Numerator for diluted earnings per share – Undistributed and distributed earnings available to common shareholders | $ | 203,543 |
| | $ | 214,604 |
| | $ | 417,290 |
| | $ | 422,856 |
| Denominator for basic earnings per share – weighted average shares | 68,453,602 |
| | 69,664,697 |
| | 68,576,232 |
| | 69,613,947 |
| Effect of dilutive securities | 888,283 |
| | 1,136,353 |
| | 932,893 |
| | 1,174,256 |
| Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities | 69,341,885 |
| | 70,801,050 |
| | 69,509,125 |
| | 70,788,203 |
| Earnings per share two-class method | |
| | |
| | | | | Basic | $ | 2.97 |
| | $ | 3.08 |
| | $ | 6.08 |
| | $ | 6.07 |
| Diluted | $ | 2.94 |
| | $ | 3.03 |
| | $ | 6.00 |
| | $ | 5.97 |
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