WASHINGTON (dpa-AFX) - Grainger (GWW) announced that it has settled its long-standing contract dispute with the federal government. As announced October 16, the discrepancy centered on disclosure language in the General Services Administration and United States Postal Service contracts, which were implemented more than 10 years ago.
These contracts account for a portion of the company's overall government business, which represented 17 percent of its total U.S. 2011 revenue.
As the company disclosed in October, it recorded a $70 million pre-tax reserve for this settlement and established a separate pre-tax reserve to resolve tax, freight and miscellaneous billing issues with these two government customers.
Copyright RTT News/dpa-AFX
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