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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Grainger's two reportable segments are High-Touch Solutions N.A. (HTSNA) and Endless Assortment (EA). 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 operating and reportable segments reflect the way the chief operating decision maker (CODM) evaluates the business. All expenses directly attributable to each reportable segment are included in the operating results for each segment. 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. For further discussion on the CODM, see Note 12 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data in the Company’s 2024 Form 10-K.
The following is a summary of segment results (in millions of dollars):
Three Months Ended March 31,
20252024
High-Touch Solutions N.A.Endless AssortmentTotalHigh-Touch Solutions N.A.Endless AssortmentTotal
Net sales(1)
$3,397 $828 $4,225 $3,405 $751 $4,156 
Reconciliation of net sales
Other net sales81 79 
   Total company net sales $4,306 $4,235 
Less:
Cost of goods sold1,958 583 1,982 531 
Other segment items(2)
839 173 813 161 
   Segment operating earnings$600 $72 $672 $610 $59 $669 
Reconciliation of operating earnings
Other operating earnings— — 
   Total company operating earnings$672 $669 
(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 right-of-use assets. Long-lived assets consist of property, buildings and equipment.

Three Months Ended March 31,
20252024
Depreciation, amortization and non-cash lease expense:
High-Touch Solutions N.A.$58 $54 
Endless Assortment19 18 
Other2 2 
Total $79 $74 

Following is revenue by geographic location (in millions of dollars):
Three Months Ended March 31,
20252024
Revenue by geographic location(1):
United States$3,504 $3,446 
Japan480 451 
Canada162 168 
Other foreign countries160 170 
$4,306 $4,235 
(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 customer industry, see Note 2.