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Wholesale Distribution: Non-GAAP measures in MD&A

Note: Item 10(e) of Regulation S-K: non-GAAP measures and reconciliation to GAAP.
W.W. GRAINGER, INC. (GWW) · Form 10-Q for period ended 2025-09-30 · filed 2025-10-31 · Section: Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations

In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. As discussed in the "Non-GAAP Measures" section, we have adjusted the current year results to exclude one-time losses recorded in SG&A expenses of $186 million within Other and $10 million within Endless Assortment, related to the intention to exit the U.K. market. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see below "Non-GAAP Measures."

The following table is included as an aid to understanding the changes in Grainger’s Condensed Consolidated Statements of Earnings for the three months ended September 30, 2025 and 2024 (in millions of dollars except per share amounts):

Three Months Ended September 30,
% Change% of Net Sales
2025202420252024
Net sales (1)4,6574,3886.1100.0100.0
Cost of goods sold2,8592,6687.261.460.8
Gross profit1,7981,7204.538.639.2
Selling, general and administrative expenses1,2871,03424.527.623.6
Operating earnings511686(25.5)11.015.6
Other expense – net191526.70.40.3
Income tax provision1711663.03.73.8
Net earnings321505(36.4)6.911.5
Noncontrolling interest271942.10.60.4
Net earnings attributable to W.W. Grainger, Inc.294486(39.5)6.311.1
Diluted earnings per share6.129.87(38.0)
(1) For further information regarding the Company's disaggregated revenue, see Note 3 of the Notes to Condensed Consolidated Financial Statements in Part 1, Item 1: Financial Statements of this Form 10-Q.

The following table is included as an aid to understanding the changes of Grainger's total net sales, daily net sales and daily, constant currency net sales from the prior period for the three months ended September 30, 2025 and 2024 (in millions of dollars):

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