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REVENUE | 9 Months Ended
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Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE Grainger serves a large number of customers in diverse industries, which are subject to different economic and market-specific factors. The Company's revenue is primarily comprised of MRO product sales and related activities. The Company's presentation of revenue by segment and industry most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and market-specific factors. In addition, the segments have unique underlying risks associated with customer purchasing behaviors. In the High-Touch Solutions N.A. segment, more than two-thirds of revenue is derived from customer contracts whereas in the Endless Assortment segment, a majority of revenue is derived from non-contractual purchases. The following tables present the Company's percentage of revenue by reportable segment and by major customer industry:
| Three Months Ended September 30,
| 2023 |  | 2022(1)
| High-Touch Solutions N.A. |  | Endless Assortment |  | Total Company(2) |  | High-Touch Solutions N.A. |  | Endless Assortment |  | Total Company(2)
Commercial Services | 7 | % |  | 12 | % |  | 8 | % |  | 7 | % |  | 13 | % |  | 8 | %
Contractors | 5 | % |  | 12 | % |  | 6 | % |  | 5 | % |  | 12 | % |  | 6 | %
Government | 19 | % |  | 3 | % |  | 16 | % |  | 18 | % |  | 3 | % |  | 15 | %
Healthcare | 7 | % |  | 2 | % |  | 6 | % |  | 7 | % |  | 2 | % |  | 6 | %
Manufacturing | 30 | % |  | 30 | % |  | 30 | % |  | 31 | % |  | 30 | % |  | 30 | %
Retail | 4 | % |  | 4 | % |  | 4 | % |  | 4 | % |  | 4 | % |  | 4 | %
Transportation | 5 | % |  | 2 | % |  | 4 | % |  | 4 | % |  | 2 | % |  | 4 | %
Utilities | 3 | % |  | 2 | % |  | 2 | % |  | 3 | % |  | 2 | % |  | 3 | %
Warehousing | 4 | % |  | — | % |  | 4 | % |  | 5 | % |  | — | % |  | 4 | %
Wholesale | 7 | % |  | 17 | % |  | 9 | % |  | 7 | % |  | 16 | % |  | 9 | %
Other(3) | 9 | % |  | 16 | % |  | 11 | % |  | 9 | % |  | 16 | % |  | 11 | %
Total net sales | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Percent of total company revenue | 81 | % |  | 17 | % |  | 100 | % |  | 81 | % |  | 18 | % |  | 100 | %
(1) Customer industry results for the three months ended September 30, 2022 were reclassified to reflect the Company's current year classifications, which primarily uses the North American Industry Classification System (NAICS) beginning January 1, 2023.
(2) Total Company includes other businesses, which includes the Cromwell business. Other businesses account for approximately 2% and 1% of total Company revenue for the three months ended September 30, 2023 and 2022, respectively.
(3) Other primarily includes revenue from industries and customers that are not material individually, including hospitality, restaurants, property management and natural resources.
| Nine Months Ended September 30,
| 2023 |  | 2022(1)
| High-Touch Solutions N.A. |  | Endless Assortment |  | Total Company(2) |  | High-Touch Solutions N.A. |  | Endless Assortment |  | Total Company(2)
Commercial Services | 7 | % |  | 12 | % |  | 8 | % |  | 7 | % |  | 13 | % |  | 8 | %
Contractors | 5 | % |  | 12 | % |  | 6 | % |  | 5 | % |  | 12 | % |  | 6 | %
Government | 20 | % |  | 3 | % |  | 16 | % |  | 18 | % |  | 3 | % |  | 15 | %
Healthcare | 7 | % |  | 2 | % |  | 6 | % |  | 7 | % |  | 2 | % |  | 6 | %
Manufacturing | 30 | % |  | 30 | % |  | 30 | % |  | 31 | % |  | 30 | % |  | 31 | %
Retail | 4 | % |  | 4 | % |  | 4 | % |  | 4 | % |  | 4 | % |  | 4 | %
Transportation | 4 | % |  | 2 | % |  | 4 | % |  | 4 | % |  | 2 | % |  | 4 | %
Utilities | 3 | % |  | 2 | % |  | 3 | % |  | 3 | % |  | 2 | % |  | 3 | %
Warehousing | 4 | % |  | 1 | % |  | 3 | % |  | 5 | % |  | — | % |  | 4 | %
Wholesale | 7 | % |  | 16 | % |  | 9 | % |  | 7 | % |  | 16 | % |  | 8 | %
Other(3) | 9 | % |  | 16 | % |  | 11 | % |  | 9 | % |  | 16 | % |  | 11 | %
Total net sales | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Percent of total company revenue | 81 | % |  | 18 | % |  | 100 | % |  | 80 | % |  | 18 | % |  | 100 | %
(1) Customer industry results for the nine months ended September 30, 2022 were reclassified to reflect the Company's current year classifications, which primarily uses the North American Industry Classification System (NAICS) beginning January 1, 2023.
(2) Total Company includes other businesses, which includes the Cromwell business. Other businesses account for approximately 1% and 2% of total Company revenue for the nine months ended September 30, 2023 and 2022.
(3) Other primarily includes revenue from industries and customers that are not material individually, including hospitality, restaurants, property management and natural resources.
Total accrued sales incentives are recorded in Accrued expenses and were approximately $116 million and $102 million as of September 30, 2023 and December 31, 2022, respectively. The Company had no material unsatisfied performance obligations, contract assets or liabilities as of September 30, 2023 and December 31, 2022.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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