W.W. GRAINGER, INC.GWW
W.W. GRAINGER, INC. Segments Disclosure
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. (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 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, 2025, 2024 and 2023 (in millions of dollars):
| 2025 | |||||||||||||||||
| High-Touch Solutions N.A. | Endless Assortment | Total | |||||||||||||||
Net sales(1) | $ | 13,993 | $ | 3,625 | $ | 17,618 | |||||||||||
| Reconciliation of net sales | |||||||||||||||||
| Other net sales | 324 | ||||||||||||||||
| Total company net sales | $ | 17,942 | |||||||||||||||
| Less: | |||||||||||||||||
| Cost of goods sold | 8,161 | 2,540 | |||||||||||||||
Other segment items(2) | 3,478 | 740 | |||||||||||||||
| Segment operating earnings | $ | 2,354 | $ | 345 | $ | 2,699 | |||||||||||
| Reconciliation of operating earnings | |||||||||||||||||
| Other operating earnings | (204) | ||||||||||||||||
| Total company operating earnings | $ | 2,495 | |||||||||||||||
| 2024 | |||||||||||||||||
| High-Touch Solutions N.A. | Endless Assortment | Total | |||||||||||||||
Net sales(1) | $ | 13,720 | $ | 3,134 | $ | 16,854 | |||||||||||
| Reconciliation of net sales | |||||||||||||||||
| Other net sales | 314 | ||||||||||||||||
| Total company net sales | $ | 17,168 | |||||||||||||||
| Less: | |||||||||||||||||
| Cost of goods sold | 7,979 | 2,211 | |||||||||||||||
Other segment items(2) | 3,356 | 663 | |||||||||||||||
| Segment operating earnings | $ | 2,385 | $ | 260 | $ | 2,645 | |||||||||||
| Reconciliation of operating earnings | |||||||||||||||||
| Other operating earnings (losses) | (8) | ||||||||||||||||
| Total company operating earnings | $ | 2,637 | |||||||||||||||
| 2023 | |||||||||||||||||
| High-Touch Solutions N.A. | Endless Assortment | Total | |||||||||||||||
Net sales(1) | $ | 13,267 | $ | 2,916 | $ | 16,183 | |||||||||||
| Reconciliation of net sales | |||||||||||||||||
| Other net sales | 295 | ||||||||||||||||
| Total company net sales | $ | 16,478 | |||||||||||||||
| Less: | |||||||||||||||||
| Cost of goods sold | 7,721 | 2,052 | |||||||||||||||
Other segment items(2) | 3,212 | 631 | |||||||||||||||
| Segment operating earnings | $ | 2,334 | $ | 233 | $ | 2,567 | |||||||||||
| Reconciliation of operating earnings | |||||||||||||||||
| Other operating earnings | (2) | ||||||||||||||||
| Total company operating earnings | $ | 2,565 | |||||||||||||||
(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):
| For the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Depreciation, amortization and non-cash lease expense(1): | |||||||||||||||||
| High-Touch Solutions N.A. | $ | 245 | $ | 234 | $ | 206 | |||||||||||
| Endless Assortment | 77 | 71 | 63 | ||||||||||||||
| Other | 8 | 6 | 8 | ||||||||||||||
| Total | $ | 330 | $ | 311 | $ | 277 | |||||||||||
(1)Depreciation, amortization and non-cash lease expense presented above is related to long-lived assets, capitalized software and ROU assets. Long-lived assets consist of property, buildings and equipment. | |||||||||||||||||
The following is revenue by geographic location (in millions of dollars):
| For the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Revenue by geographic location(1): | |||||||||||||||||
| United States | $ | 14,441 | $ | 13,947 | $ | 13,389 | |||||||||||
| Japan | 2,173 | 1,893 | 1,797 | ||||||||||||||
| Canada | 683 | 661 | 646 | ||||||||||||||
| Other foreign countries | 645 | 667 | 646 | ||||||||||||||
| $ | 17,942 | $ | 17,168 | $ | 16,478 | ||||||||||||
(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 3.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.