SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

Grainger's two reportable segments are the U.S. and Canada. The U.S. reportable segment reflects the results of Grainger's U.S. businesses. The Canada reportable segment reflects the results of Acklands-Grainger, Inc. and its subsidiaries. Other businesses include the endless assortment businesses, Zoro Tools, Inc. (Zoro) in the U.S. and MonotaRO Co. (MonotaRO) in Japan, and smaller high-touch solutions businesses in Europe, Asia and Mexico. These businesses individually do not meet the criteria of a reportable segment.

Following is a summary of segment results (in millions of dollars):



	Three Months Ended June 30, 2019
	U.S.			Canada		Total Reportable Segments			Other businesses		Total
Total net sales	$	2,222		$	135	$	2,357		$	663	$	3,020
Intersegment net sales	(127		)	—		(127		)	—		(127		)
Net sales to external customers	$	2,095		$	135	$	2,230		$	663	$	2,893
Segment operating earnings	$	381		$	1	$	382		$	27	$	409



	Three Months Ended June 30, 2018
	U.S.			Canada			Total Reportable Segments			Other businesses		Total
Total net sales	$	2,175		$	177		$	2,352		$	622	$	2,974
Intersegment net sales	(113		)	—			(113		)	—		(113		)
Net sales to external customers	$	2,062		$	177		$	2,239		$	622	$	2,861
Segment operating earnings	$	349		$	(14	)	$	335		$	41	$	376



	Six Months Ended June 30, 2019
	U.S.			Canada			Total Reportable Segments			Other businesses			Total
Total net sales	$	4,371		$	271		$	4,642		$	1,296		$	5,938
Intersegment net sales	(245		)	—			(245		)	(1		)	(246		)
Net sales to external customers	$	4,126		$	271		$	4,397		$	1,295		$	5,692
Segment operating earnings	$	745		$	(4	)	$	741		$	57		$	798



	Six Months Ended June 30, 2018
	U.S.			Canada			Total Reportable Segments			Other businesses			Total
Total net sales	$	4,283		$	359		$	4,642		$	1,210		$	5,852
Intersegment net sales	(223		)	—			(223		)	(2		)	(225		)
Net sales to external customers	$	4,060		$	359		$	4,419		$	1,208		$	5,627
Segment operating earnings	$	706		$	(34	)	$	672		$	77		$	749

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Operating earnings:
Total operating earnings for reportable segments	$	382		$	335		$	741		$	672
Other businesses	27			41			57			77
Unallocated expenses	(29		)	(32		)	(55		)	(70		)
Total consolidated operating earnings	$	380		$	344		$	743		$	679

	As of
	June 30, 2019			December 31, 2018
Assets:
United States	$	2,625		$	2,496
Canada	172			188
Assets for reportable segments	2,797			2,684
Other current and noncurrent assets	3,087			2,879
Unallocated assets	108			310
Total consolidated assets	$	5,992		$	5,873

The Company is a broad-line distributor of MRO products and services. Products are regularly added and deleted from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed.

Unallocated expenses primarily relate to the Company's headquarters support services and intercompany eliminations, which are not part of any reportable segment. Unallocated expenses include supply chain, product management and procurement, finance, communications, human resources, information systems, legal and compliance, internal audit and real estate.

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 assets are primarily comprised of non-operating cash and cash equivalents, property, buildings and equipment, net, and certain prepaid expenses related to the Company's headquarters support services.