Company: GWW
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000277135-25-000010
Chunk: 54

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 54
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. This update requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. The effective date is for fiscal years beginning after December 15, 2024, with the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on the related income tax disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires public entities to disclose required information for inventory purchases, employee compensation, depreciation, intangible asset amortization and selling expense. The effective date is for fiscal years beginning after December 15, 2026, with the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on the related income statement line items disclosures.
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NOTE 2 - REVENUE 
Grainger serves a large number of customers in diverse industries, which are subject to different economic and market-specific factors. The Company's revenue is primarily comprised of MRO product sales and related activities.
The Company's presentation of revenue by segment and customer industry most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and market-specific factors. The majority of Company revenue originates from contracts with a single performance obligation to deliver products, whereby performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. 
The following tables present the Company's percentage of revenue by reportable segment and by customer industry:

                                                                                                                                                                                                                                                                                                                                                                                                                                        Twelve Months Ended December 31,
2024                                                                                                                                                                                                                                                                                                             2023                                                                                                                                            2022(1)
                                            High-Touch Solutions N.A.                              Endless Assortment                            Total Company (2)                             High-Touch Solutions N.A.                              Endless Assortment                            Total Company (2)                             High-Touch Solutions N.A.                              Endless Assortment                            Total Company (2)
Manufacturing                                           31          %                                     29        %                                   31       %                                         30          %                                     30        %                                   30       %                                         31          %                                     30        %                                   30       %
Government                                              19          %