SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

    SEGMENT INFORMATION

The Company has two reportable segments: the U.S. and Canada. The U.S. operating segment reflects the results of the Company's U.S. business. The Canada operating segment primarily reflects the results for Acklands – Grainger Inc. (Acklands-Grainger), the Company’s Canadian business. Other businesses include MonotaRO in Japan, Zoro in the U.S. and operations in Europe, Asia and Latin America. These businesses individually do not meet the definition of a reportable segment. Operating segments generate revenue almost exclusively through the distribution of MRO 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 March 31, 2017
	United States			Canada			Other Businesses			Total
Total net sales	$	1,953,444		$	186,141		$	497,407		$	2,636,992
Intersegment net sales	(95,073		)	(12		)	(778		)	(95,863		)
Net sales to external customers	$	1,858,371		$	186,129		$	496,629		$	2,541,129
Segment operating earnings	$	312,470		$	(16,729	)	$	31,507		$	327,248

	Three Months Ended March 31, 2016
	United States			Canada			Other Businesses			Total
Total net sales	$	1,966,267		$	178,771		$	445,333		$	2,590,371
Intersegment net sales	(82,499		)	(36		)	(1,298		)	(83,833		)
Net sales to external customers	$	1,883,768		$	178,735		$	444,035		$	2,506,538
Segment operating earnings	$	331,857		$	(12,347	)	$	21,783		$	341,293

	United States		Canada		Other Businesses		Total
Segment assets:
March 31, 2017	$	2,311,281	$	287,552	$	535,343	$	3,134,176
December 31, 2016	$	2,275,009	$	286,035	$	494,067	$	3,055,111

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

	Three Months Ended March 31,
	2017			2016
Operating earnings:
Total operating earnings for operating segments	$	327,248		$	341,293
Unallocated expenses and eliminations	(31,760		)	(24,201		)
Total consolidated operating earnings	$	295,488		$	317,092

	March 31, 2017		Dec 31, 2016
Assets:
Total assets for operating segments	$	3,134,176	$	3,055,111
Other current and non-current assets	2,484,117		2,464,656
Unallocated assets	164,256		174,540
Total consolidated assets	$	5,782,549	$	5,694,307

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. Other current and non-current assets include all other asset balances for the reportable 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.

Intersegment net sales for the U.S. segment increased by $12 million for the three months of 2017 compared to the prior year, driven by increased sales from the U.S. business to Zoro. The U.S. business' supply chain network is Zoro's primary source of inventory.