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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
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 13 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data in the Company’s 2025 Form 10-K.

The following is a summary of segment results (in millions of dollars):

Three Months Ended June 30,
20262025
High-Touch Solutions N.A.Endless AssortmentTotalHigh-Touch Solutions N.A.Endless AssortmentTotal
Net sales(1)
$3,967 $1,054 $5,021 $3,544 $929 $4,473 
Reconciliation of net sales
Other net sales— 81 
   Total company net sales $5,021 $4,554 
Less:
Cost of goods sold2,307 730 2,090 652 
Other segment items(2)
974 203 865 185 
   Segment operating earnings$686 $121 $807 $589 $92 $681 
Reconciliation of operating earnings
Other operating earnings— (3)
   Total company operating earnings$807 $678 
Six Months Ended June 30,
20262025
High-Touch Solutions N.A.Endless AssortmentTotalHigh-Touch Solutions N.A.Endless AssortmentTotal
Net sales(1)
$7,719 $2,044 $9,763 $6,941 $1,757 $8,698 
Reconciliation of net sales
Other net sales— 162 
   Total company net sales $9,763 $8,860 
Less:
Cost of goods sold4,460 1,423 4,048 1,235 
Other segment items(2)
1,885 395 1,704 358 
   Segment operating earnings$1,374 $226 $1,600 $1,189 $164 $1,353 
Reconciliation of operating earnings
Other operating earnings (losses)— (3)
   Total company operating earnings$1,600 $1,350 
(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.
The following is depreciation, amortization and non-cash lease expense (in millions of dollars):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Depreciation, amortization and non-cash lease expense(1):
High-Touch Solutions N.A.$67 $61 $132 $119 
Endless Assortment18 20 33 39 
Other— 3 — 5 
Total $85 $84 $165 $163 
(1)Depreciation, amortization and non-cash lease expense presented above is related to long-lived assets, capitalized software and right-of-use assets. Long-lived assets consist of property, buildings and equipment.

The following is revenue by geographic location (in millions of dollars):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue by geographic location(1):
United States$4,110 $3,652 $7,992 $7,156 
Japan630 562 1,219 1,042 
Canada201 175 395 337 
Other foreign countries80 165 157 325 
$5,021 $4,554 $9,763 $8,860 
(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 assortment. 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 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1: Financial Statements of this Form 10-Q.