REVENUE

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Company revenue is primarily comprised of MRO product sales and related activities, such as freight and services. Total service revenue is not material and accounted for approximately 1% of the Company's revenue for the three and six months ended June 30, 2019 and 2018, respectively.

Grainger serves a large number of customers in diverse industries, which are subject to different economic and market specific factors. The Company's presentation of revenue by industry most reasonably depicts how the nature, amount, timing and uncertainty of Company revenue and cash flows are affected by economic and market specific factors. The following table presents the Company's percentage of revenue by reportable segment and by major customer industry:

	Three Months Ended June 30,
	2019						2018
	U.S.		Canada		Total Company (2)		U.S.		Canada		Total Company (2)
Government	19	%	6	%	14	%	19	%	5	%	14	%
Heavy Manufacturing	19	%	20	%	17	%	19	%	21	%	18	%
Light Manufacturing	13	%	6	%	11	%	13	%	6	%	11	%
Transportation	5	%	8	%	5	%	5	%	7	%	5	%
Commercial	17	%	9	%	13	%	16	%	10	%	13	%
Retail/Wholesale	8	%	4	%	7	%	8	%	4	%	7	%
Contractors	10	%	11	%	8	%	10	%	11	%	8	%
Natural Resources	3	%	32	%	4	%	3	%	33	%	4	%
Other (1)	6	%	4	%	21	%	7	%	3	%	20	%
Total net sales to external customers	100	%	100	%	100	%	100	%	100	%	100	%
Percent of Total Company Revenue	72	%	5	%	100	%	72	%	6	%	100	%

	Six Months Ended June 30,
	2019						2018
	U.S.		Canada		Total Company (2)		U.S.		Canada		Total Company (2)
Government	18	%	6	%	13	%	18	%	6	%	14	%
Heavy Manufacturing	19	%	21	%	18	%	20	%	20	%	18	%
Light Manufacturing	13	%	6	%	11	%	13	%	5	%	11	%
Transportation	6	%	8	%	5	%	5	%	8	%	5	%
Commercial	17	%	9	%	13	%	16	%	10	%	13	%
Retail/Wholesale	8	%	4	%	7	%	8	%	4	%	7	%
Contractors	10	%	10	%	8	%	10	%	12	%	8	%
Natural Resources	3	%	32	%	4	%	3	%	32	%	4	%
Other (1)	6	%	4	%	21	%	7	%	3	%	20	%
Total net sales to external customers	100	%	100	%	100	%	100	%	100	%	100	%
Percent of Total Company Revenue	72	%	5	%	100	%	72	%	6	%	100	%

(1) Other category primarily includes revenue from individual customers not aligned to major industry segment, including small businesses and consumers and intersegment net sales.

(2) Total Company includes other businesses, which include the Company's endless assortment businesses and operations in Europe, Asia and Latin America and account for approximately 23% of revenue for the three and six months ended June 30, 2019 and 22% of revenue for the three and six months ended June 30 2018.

Total accrued sales returns were approximately $27 million and $29 million as of June 30, 2019 and December 31, 2018, respectively and are reported as a reduction of Accounts receivable. Total accrued sales incentives were approximately $54 million and $62 million as of June 30, 2019 and December 31, 2018, respectively and are reported as part of Accrued expenses. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of June 30, 2019 and December 31, 2018.