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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 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 September 30,
20252024
High-Touch Solutions N.A.Endless AssortmentTotalHigh-Touch Solutions N.A.Endless AssortmentTotal
Net sales(1)
$3,635 $935 $4,570 $3,515 $791 $4,306 
Reconciliation of net sales
Other net sales87 82 
   Total company net sales $4,657 $4,388 
Less:
Cost of goods sold2,140 654 2,053 558 
Other segment items(2)
871 199 845 163 
   Segment operating earnings$624 $82 $706 $617 $70 $687 
Reconciliation of operating earnings
Other operating earnings(195)(1)
   Total company operating earnings$511 $686 
(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.
Nine Months Ended September 30,
20252024
High-Touch Solutions N.A.Endless AssortmentTotalHigh-Touch Solutions N.A.Endless AssortmentTotal
Net sales(1)
$10,576 $2,692 $13,268 $10,378 $2,318 $12,696 
Reconciliation of net sales
Other net sales249 239 
   Total company net sales $13,517 $12,935 
Less:
Cost of goods sold6,188 1,889 6,050 1,636 
Other segment items(2)
2,575 557 2,510 492 
   Segment operating earnings$1,813 $246 $2,059 $1,818 $190 $2,008 
Reconciliation of operating earnings
Other operating earnings (losses)(198)(4)
   Total company operating earnings$1,861 $2,004 
(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 September 30,Nine Months Ended September 30,
2025202420252024
Depreciation, amortization and non-cash lease expense (in millions of dollars):
High-Touch Solutions N.A.$62 $58 $181 $171 
Endless Assortment20 18 59 53 
Other2 2 7 6 
Total $84 $77 $247 $229 
The following is revenue by geographic location (in millions of dollars):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Revenue by geographic location(1):
United States$3,756 $3,585 $10,912 $10,533 
Japan558 471 1,600 1,391 
Canada169 161 506 499 
Other foreign countries174 171 499 512 
$4,657 $4,388 $13,517 $12,935 
(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 3.