SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2014

Segment Reporting [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 Zoro, the single channel online business in the United States, and operations in Europe, Asia and Latin America. 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 approximately 1% of total revenues for each operating segment. Following is a summary of segment results (in thousands of dollars):

	Three Months Ended June 30, 2014
	United States			Canada			Other Businesses			Total
Total net sales	$	1,992,955		$	264,046		$	298,926		$	2,555,927
Intersegment net sales	(49,358		)	(42		)	(423		)	(49,823		)
Net sales to external customers	$	1,943,597		$	264,004		$	298,503		$	2,506,104
Segment operating earnings	$	365,099		$	19,212		$	(456	)	$	383,855

	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

	Six Months Ended June 30, 2014
	United States			Canada			Other Businesses			Total
Total net sales	$	3,890,265		$	518,342		$	573,832		$	4,982,439
Intersegment net sales	(90,225		)	(88		)	(395		)	(90,708		)
Net sales to external customers	$	3,800,040		$	518,254		$	573,437		$	4,891,731
Segment operating earnings	$	718,786		$	40,508		$	8,019		$	767,313

	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

	United States		Canada		Other Businesses		Total
Segment assets:
June 30, 2014	$	2,133,561	$	366,829	$	390,602	$	2,890,992
December 31, 2013	$	2,045,564	$	392,147	$	359,007	$	2,796,718

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,
	2014			2013			2014			2013
Operating earnings:
Total operating earnings for operating segments	$	383,855		$	388,982		$	767,313		$	760,977
Unallocated expenses and eliminations	(43,104		)	(38,910		)	(72,223		)	(67,601		)
Total consolidated operating earnings	$	340,751		$	350,072		$	695,090		$	693,376

	June 30, 2014		Dec 31, 2013
Assets:
Total assets for operating segments	$	2,890,992	$	2,796,718
Other current and non-current assets	2,162,687		2,118,298
Unallocated assets	257,633		351,312
Total consolidated assets	$	5,311,312	$	5,266,328

Assets for operating segments include net accounts receivable and first-in, first-out inventory which are reported to the Company's Chief Operating Decision Maker. Other current and non-current assets include all other asset balances for the operating segments.

Unallocated expenses and unallocated assets primarily relate to the Company headquarter's 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.

Unallocated assets decreased by $94 million at June 30, 2014 compared to December 31, 2013, due to lower cash balances primarily driven by payments for the employee profit sharing plan, share repurchases and dividends.