Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

(2) Revenue

Revenue Recognition

Net sales include products and shipping and handling charges, net of estimates for product returns, and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up

by the customer. We estimate product returns based on historical return rates. Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Revenues are attributable to countries based on the selling location from which the sale occurred.

Disaggregation of Revenue

Our revenues related to the following geographic areas were as follows for the periods ended September 30:

	Nine-month Period			Three-month Period
	2021		2020	2021		2020
United States	$	3,753.6	3,681.6	$	1,307.5	1,205.8
Canada and Mexico	558.8		462.3	189.9		160.5
North America	4,312.4		4,143.9	1,497.4		1,366.3
All other foreign countries	166.6		145.4	56.8		47.0
Total revenues	$	4,479.0	4,289.3	$	1,554.2	1,413.3

The percentages of our sales by end market were as follows for the periods ended September 30:

	Nine-month Period				Three-month Period
	2021		2020		2021		2020
Manufacturing	68.6	%	61.7	%	68.9	%	62.7	%
Non-residential construction	11.2	%	11.4	%	11.3	%	11.2	%
Other	20.2	%	26.9	%	19.8	%	26.1	%
	100.0	%	100.0	%	100.0	%	100.0	%

The percentages of our sales by product line were as follows for the periods ended September 30:

		Nine-month Period				Three-month Period
Type	Introduced	2021		2020		2021		2020
Fasteners(1)	1967	33.2	%	29.7	%	33.4	%	30.5	%
Tools	1993	8.6	%	8.1	%	8.5	%	8.5	%
Cutting tools	1996	5.0	%	4.6	%	5.0	%	4.7	%
Hydraulics & pneumatics	1996	6.4	%	5.9	%	6.5	%	6.1	%
Material handling	1996	5.5	%	5.1	%	5.5	%	5.1	%
Janitorial supplies	1996	8.2	%	9.9	%	8.3	%	10.7	%
Electrical supplies	1997	4.3	%	4.1	%	4.3	%	3.9	%
Welding supplies	1997	3.8	%	3.5	%	3.8	%	3.5	%
Safety supplies	1999	21.2	%	26.1	%	21.1	%	23.8	%
Other		3.8	%	3.0	%	3.6	%	3.2	%
		100.0	%	100.0	%	100.0	%	100.0	%

(1) The fasteners product line represents fasteners and miscellaneous supplies.