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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company routinely evaluates whether its operating and reportable segments continue to reflect the way the chief operating decision maker (CODM) evaluates the business. The determination is based on: (1) how the Company’s CODM evaluates the performance of the business, including resource allocation decisions, and (2) whether discrete financial information for each reporting segment is available. The Company considers D.G. Macpherson, its Chief Executive Officer and Chairman of the Board, its CODM.

The CODM evaluates performance based on the results of the Company’s two reportable segments High-Touch Solutions N.A. and Endless Assortment. These reportable segments align with Grainger's go-to-market strategies and bifurcated business models of high-touch solutions and endless assortment that generate sales primarily through the distribution of MRO products. The remaining businesses are classified as Other to reconcile to consolidated results. These businesses individually and in the aggregate do not meet the criteria of a reportable segment.

The accounting policies of the Company’s reportable segments are the same as those described in the summary of significant accounting policies. For further discussion on Grainger’s accounting policies, see Note 1.

All expenses directly attributable to each reportable segment are included in the operating results for each segment. Operating segment performance is evaluated by Grainger's CODM based on operating earnings as disclosed on the Company's Consolidated Statement of Earnings as the key determinant of the economic return and resource allocation among the segments. The CODM is not regularly provided and does not evaluate the segments using total asset or capital expenditure information and it is therefore not disclosed.

The following is a summary of segment results for the twelve months ended December 31, 2024, 2023 and 2022 (in millions of dollars):
2024
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$13,720 $3,134 $16,854 
Reconciliation of net sales
Other net sales314 
   Total company net sales $17,168 
Less:
Cost of goods sold7,979 2,211 
Other segment items(2)
3,356 663 
   Segment operating earnings$2,385 $260 $2,645 
Reconciliation of operating earnings
Other operating earnings(8)
   Total company operating earnings$2,637 
2023
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$13,267 $2,916 $16,183 
Reconciliation of net sales
Other net sales295 
   Total company net sales $16,478 
Less:
Cost of goods sold7,721 2,052 
Other segment items(2)
3,212 631 
   Segment operating earnings$2,334 $233 $2,567 
Reconciliation of operating earnings
Other operating earnings (losses)(2)
   Total company operating earnings$2,565 

2022
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$12,182 $2,787 $14,969 
Reconciliation of net sales
Other net sales259 
   Total company net sales $15,228 
Less:
Cost of goods sold7,231 1,970 
Other segment items(2)
2,968 594 
   Segment operating earnings$1,983 $223 $2,206 
Reconciliation of operating earnings
Other operating earnings9 
   Total company operating earnings$2,215 
(1) Intersegment sales are recorded at values based on market prices, which creates intercompany profit sales that are eliminated within each segment to present only the impact of net sales to external customers.
(2) Other segment items for HTSNA and EA consist of selling, general and administrative expenses primarily comprised of payroll and benefits, marketing expense, depreciation, amortization and non-cash lease expense, corporate overhead expenses allocated to each segment based upon benefits received, occupancy and other miscellaneous expenses. Intersegment expenses including fees and certain incurred costs for shared services are also included within the amounts shown above.
Depreciation, amortization and non-cash lease expense presented below is related to long-lived assets, capitalized software and ROU assets. Long-lived assets consist of property, buildings and equipment.
202420232022
Depreciation, amortization and non-cash lease expense:
High-Touch Solutions N.A.$234 $206 $168 
Endless Assortment71 63 35 
Other6 8 3 
Total $311 $277 $206 

Following is revenue by geographic location for the twelve months ended December 31, 2024, 2023 and 2022 (in millions of dollars):
202420232022
Revenue by geographic location(1):
United States$13,947 $13,389 $12,325 
Japan1,893 1,797 1,719 
Canada661 646 621 
Other foreign countries667 646 563 
$17,168 $16,478 $15,228 
(1) Revenue presented above is attributed to the destination country where the customer is located.

The Company is a broad line distributor of MRO products. Products are regularly added and removed from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed, and the dynamic nature of the inventory offered, including the evolving list of products stocked and additional products available online but not stocked. For further information regarding the Company's sales by segment and major customer industry, see Note 2.