SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 reflects the results for Acklands – Grainger Inc. and its subsidiaries (Acklands-Grainger), the Company’s Canadian business. Other businesses include MonotaRO in Japan, Zoro in the U.S. and certain Company business operations in Europe, Asia and Latin America. Other businesses 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, 2017
	United States			Canada			Other Businesses			Total
Total net sales	$	1,999,153		$	189,113		$	526,560		$	2,714,826
Intersegment net sales	(98,507		)	10			(1,060		)	(99,557		)
Net sales to external customers	$	1,900,646		$	189,123		$	525,500		$	2,615,269
Segment operating earnings (losses)	$	312,289		$	(27,727	)	$	(14,222	)	$	270,340

	Three Months Ended June 30, 2016
	United States			Canada			Other Businesses			Total
Total net sales	$	1,978,542		$	194,418		$	474,166		$	2,647,126
Intersegment net sales	(82,442		)	(50		)	(966		)	(83,458		)
Net sales to external customers	$	1,896,100		$	194,368		$	473,200		$	2,563,668
Segment operating earnings (losses)	$	348,938		$	(27,741	)	$	29,724		$	350,921

	Six Months Ended June 30, 2017
	United States			Canada			Other Businesses			Total
Total net sales	$	3,952,597		$	375,254		$	1,023,967		$	5,351,818
Intersegment net sales	(193,579		)	(3		)	(1,838		)	(195,420		)
Net sales to external customers	$	3,759,018		$	375,251		$	1,022,129		$	5,156,398
Segment operating earnings (losses)	$	624,759		$	(44,456	)	$	17,285		$	597,588

	Six Months Ended June 30, 2016
	United States			Canada			Other Businesses			Total
Total net sales	$	3,944,809		$	373,189		$	919,500		$	5,237,498
Intersegment net sales	(164,941		)	(86		)	(2,265		)	(167,292		)
Net sales to external customers	$	3,779,868		$	373,103		$	917,235		$	5,070,206
Segment operating earnings (losses)	$	680,795		$	(40,088	)	$	51,508		$	692,215

	United States		Canada		Other Businesses		Total
Segment assets:
June 30, 2017	$	2,334,275	$	289,060	$	563,315	$	3,186,650
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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Operating earnings:
Total operating earnings for operating segments	$	270,340		$	350,921		$	597,588		$	692,215
Unallocated expenses and eliminations	(38,275		)	(45,332		)	(70,035		)	(69,534		)
Total consolidated operating earnings	$	232,065		$	305,589		$	527,553		$	622,681

	June 30, 2017		December 31, 2016
Assets:
Total assets for operating segments	$	3,186,650	$	3,055,111
Other current and non-current assets	2,509,003		2,464,656
Unallocated assets	166,228		174,540
Total consolidated assets	$	5,861,881	$	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 assets of 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 $16 million and $29 million for the three and six months ended June 30, 2017, respectively, compared to the prior year, driven by increased sales from the U.S. business to Zoro. Zoro's primary source of inventory is the U.S. business' supply chain network.