SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Grainger's two reportable segments are the U.S. and Canada. These reportable segments reflect the results of the Company's high-touch businesses in those geographies. Other businesses include the endless assortment businesses, Zoro Tools, Inc. (Zoro) and MonotaRO Co., LTD (MonotaRO), and smaller high-touch businesses in the U.K. and Mexico. These businesses individually do not meet the criteria 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 millions of dollars):

	Three Months Ended June 30, 2020
	U.S.		Canada		Total Reportable Segments		Other businesses		Total
Total net sales	$	2,169	$	107	$	2,276	$	680	$	2,956
Intersegment net sales	(118)		—		(118)		(1)		(119)
Net sales to external customers	$	2,051	$	107	$	2,158	$	679	$	2,837
Segment operating earnings	$	318	$	(3)	$	315	$	38	$	353

	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

	Six Months Ended June 30, 2020
	U.S.		Canada		Total Reportable Segments		Other businesses		Total
Total net sales	$	4,476	$	236	$	4,712	$	1,378	$	6,090
Intersegment net sales	(251)		—		(251)		(1)		(252)
Net sales to external customers	$	4,225	$	236	4,461		$	1,377	$	5,838
Segment operating earnings	$	658	$	(6)	$	652	$	(100)	$	552

	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

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,
	2020		2019		2020		2019
Operating earnings:
Total operating earnings for reportable segments	$	315	$	382	$	652	$	741
Other businesses	38		27		(100)		57
Unallocated expenses	(148)		(29)		(188)		(55)
Total consolidated operating earnings	$	205	$	380	$	364	$	743
	As of
	June 30, 2020		December 31, 2019
Assets:
United States	$	2,919	$	2,668
Canada	168		173
Assets for reportable segments	3,087		2,841
Other current and noncurrent assets	2,607		3,003
Unallocated assets	1,500		161
Total consolidated assets	$	7,194	$	6,005

The Company is a broad-line distributor of MRO products and services. Products are regularly added and removed 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, and the dynamic nature of the inventory offered, including the evolving list of products stocked and additional products available online but not stocked.

Unallocated amounts include corporate-level support and administrative expenses, corporate-level assets consisting primarily of cash, property, buildings and equipment, intersegment eliminations and other adjustments. Unallocated expenses and assets are not included in any reportable segment.

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.