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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2016
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. (Acklands-Grainger), the Company’s Canadian business. Other businesses include single channel online businesses such as MonotaRO in Japan and Zoro in the United States and business units 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. The Company is a broad-line distributor of maintenance, repair and operating (MRO) supplies, and other related products. Products are regularly added or deleted from the Company's inventory. Accordingly, it would be impractical to provide information by product category due to the way the business is managed. Following is a summary of segment results (in thousands of dollars):

 
Three Months Ended September 30, 2016
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
2,028,235

 
$
179,281

 
$
481,929

 
$
2,689,445

Intersegment net sales
(92,160
)
 
(23
)
 
(974
)
 
(93,157
)
Net sales to external customers
$
1,936,075

 
$
179,258

 
$
480,955

 
$
2,596,288

Segment operating earnings
$
342,524

 
$
(15,118
)
 
$
24,835

 
$
352,241

  
 
Three Months Ended September 30, 2015
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
2,039,488

 
$
213,132

 
$
354,692

 
$
2,607,312

Intersegment net sales
(73,393
)
 
(21
)
 
(998
)
 
(74,412
)
Net sales to external customers
$
1,966,095

 
$
213,111

 
$
353,694

 
$
2,532,900

Segment operating earnings
$
359,414

 
$
3,587

 
$
14,260

 
$
377,261


 
Nine Months Ended September 30, 2016
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
5,973,044

 
$
552,470

 
$
1,401,429

 
$
7,926,943

Intersegment net sales
(257,101
)
 
(109
)
 
(3,239
)
 
(260,449
)
Net sales to external customers
$
5,715,943

 
$
552,361

 
$
1,398,190

 
$
7,666,494

Segment operating earnings
$
1,023,318

 
$
(55,207
)
 
$
76,343

 
$
1,044,454

 
 
Nine Months Ended September 30, 2015
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
6,041,576

 
$
687,128

 
$
971,389

 
$
7,700,093

Intersegment net sales
(201,978
)
 
(74
)
 
(2,915
)
 
(204,967
)
Net sales to external customers
$
5,839,598

 
$
687,054

 
$
968,474

 
$
7,495,126

Segment operating earnings
$
1,095,036

 
$
22,474

 
$
38,943

 
$
1,156,453


 
United States
 
Canada
 
Other Businesses
 
Total
Segment assets:
 
 
 
 
 
 
 
September 30, 2016
$
2,272,869

 
$
304,080

 
$
522,879

 
$
3,099,828

December 31, 2015
$
2,191,045

 
$
317,504

 
$
507,116

 
$
3,015,665



Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Operating earnings:
 
 
 
Total operating earnings for operating segments
$
352,241

 
$
377,261

 
1,044,454

 
$
1,156,453

Unallocated expenses and eliminations
(29,654
)
 
(36,532
)
 
(99,185
)
 
(107,759
)
Total consolidated operating earnings
$
322,587

 
$
340,729

 
945,269

 
$
1,048,694


 
 
September 30, 2016
 
December 31, 2015
Assets:
 
Total assets for operating segments
$
3,099,828

 
$
3,015,665

Other current and non-current assets
2,652,146

 
2,624,966

Unallocated assets
133,535

 
217,124

Total consolidated assets
$
5,885,509

 
$
5,857,755



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.

Intersegment net sales for the U.S. segment increased by $19 million and $55 million for the three and nine months ended September 30, 2016, respectively, 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.