SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company has two reportable segments: the United States and Canada. The United States operating segment reflects the results of the Company's U.S. business. The Canada operating segment reflects the results for Acklands – Grainger Inc., the Company’s Canadian business. Other businesses include operations in Europe, Asia, Latin America and other U.S. operations. These other businesses individually do not meet the definition of a reportable segment. Operating segments generate revenue almost exclusively through the distribution of maintenance, repair and operating supplies, as service revenues account for less than 1% of total revenues for each operating segment. Following is a summary of segment results (in thousands of dollars):

	Three Months Ended June 30, 2013
	United States			Canada			Other Businesses			Total
Total net sales	$	1,863,112		$	288,645		$	261,282		$	2,413,039
Intersegment net sales	(31,135		)	(112		)	(231		)	(31,478		)
Net sales to external customers	$	1,831,977		$	288,533		$	261,051		$	2,381,561
Segment operating earnings	$	338,884		$	37,299		$	12,799		$	388,982

	Three Months Ended June 30, 2012
	United States			Canada			Other Businesses			Total
Total net sales	$	1,742,101		$	279,617		$	249,131		$	2,270,849
Intersegment net sales	(21,205		)	(172		)	(197		)	(21,574		)
Net sales to external customers	$	1,720,896		$	279,445		$	248,934		$	2,249,275
Segment operating earnings	$	310,683		$	33,555		$	11,244		$	355,482

	Six Months Ended June 30, 2013
	United States			Canada			Other Businesses			Total
Total net sales	$	3,637,650		$	571,786		$	509,156		$	4,718,592
Intersegment net sales	(56,025		)	(151		)	(420		)	(56,596		)
Net sales to external customers	$	3,581,625		$	571,635		$	508,736		$	4,661,996
Segment operating earnings	$	669,772		$	70,155		$	21,050		$	760,977

	Six Months Ended June 30, 2012
	United States			Canada			Other Businesses			Total
Total net sales	$	3,442,810		$	552,500		$	488,087		$	4,483,397
Intersegment net sales	(40,130		)	(206		)	(341		)	(40,677		)
Net sales to external customers	$	3,402,680		$	552,294		$	487,746		$	4,442,720
Segment operating earnings	$	609,647		$	63,255		$	21,959		$	694,861

	United States		Canada		Other Businesses		Total
Segment assets:
June 30, 2013	$	1,966,649	$	365,209	$	355,134	$	2,686,992
December 31, 2012	$	1,884,102	$	387,915	$	347,905	$	2,619,922

Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Operating earnings:
Total operating earnings for operating segments	$	388,982		$	355,482		$	760,977		$	694,861
Unallocated expenses and eliminations	(38,910		)	(41,482		)	(67,601		)	(76,500		)
Total consolidated operating earnings	$	350,072		$	314,000		$	693,376		$	618,361

	June 30, 2013		Dec 31, 2012
Assets:
Total assets for operating segments	$	2,686,992	$	2,619,922
Other current and non-current assets	1,907,159		1,967,480
Unallocated assets	435,984		427,196
Total consolidated assets	$	5,030,135	$	5,014,598

Assets for reportable segments include net accounts receivable and first-in, first-out inventory which are reported to the Company's Chief Operating Decision Maker.

Unallocated expenses and unallocated assets primarily relate to the Company headquarters' support services, which are not part of any business segment, as well as intercompany eliminations. Unallocated expenses include payroll and benefits, depreciation and other costs associated with headquarters-related support services. Unallocated assets include non-operating cash and cash equivalents, certain prepaid expenses and property, buildings and equipment-net.