XML 41 R25.htm IDEA: XBRL DOCUMENT v3.6.0.2
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 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, the Company’s Canadian business. Other businesses include MonotaRO in Japan, Zoro in the United States and operations in Europe, Asia and Latin America. 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.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment transfer prices are established at external selling prices, less costs not incurred due to a related party sale. The segment results include certain centrally incurred costs for shared services that are charged to the segments based upon the relative level of service used by each operating segment.

Following is a summary of segment results (in thousands of dollars):
 
2016
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
7,870,105


$
733,829


$
1,884,963

 
$
10,488,897

Intersegment net sales
(347,468
)

(110
)

(4,115
)
 
(351,693
)
Net sales to external customers
7,522,637

 
733,719

 
1,880,848

 
10,137,204

 
 
 
 
 
 
 
 
Segment operating earnings
1,274,851


(65,362
)

40,684

 
1,250,173

 








 
 
Segment assets
2,275,009


286,035


494,067

 
3,055,111

Depreciation and amortization
159,334


18,050


23,792

 
201,176

Additions to long-lived assets
$
153,556


$
12,275


$
95,288

 
$
261,119


 
2015
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
7,963,416


$
890,530


$
1,405,750


$
10,259,696

Intersegment net sales
(282,305
)

(105
)

(3,902
)

(286,312
)
Net sales to external customers
7,681,111


890,425


1,401,848


9,973,384

 











Segment operating earnings
1,371,626


27,368


48,051


1,447,045

 











Segment assets
2,191,045


317,504


507,116


3,015,665

Depreciation and amortization
150,654


17,334


19,999


187,987

Additions to long-lived assets
$
302,316


$
20,464


$
21,135


$
343,915


 
2014
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
7,926,075


$
1,075,754


$
1,182,186


$
10,184,015

Intersegment net sales
(211,399
)

(304
)

(7,359
)

(219,062
)
Net sales to external customers
7,714,676


1,075,450


1,174,827


9,964,953

 











Segment operating earnings
1,444,288


87,583


(37,806
)

1,494,065

 











Segment assets
2,181,521


394,342


345,987


2,921,850

Depreciation and amortization
136,081


15,305


20,444


171,830

Additions to long-lived assets
$
243,251


$
106,918


$
31,137


$
381,306


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

 
2016
 
2015
 
2014
Operating earnings:
 
 
 
 
 
Total operating earnings for reportable segments
$
1,250,173


$
1,447,045


$
1,494,065

Unallocated expenses
(130,676
)

(146,725
)

(146,948
)
Total consolidated operating earnings
$
1,119,497


$
1,300,320


$
1,347,117

Assets:








Assets for reportable segments
$
3,055,111


$
3,015,665


$
2,921,850

Other current and noncurrent assets
2,464,656


2,624,966


2,113,900

Unallocated assets
174,540


217,124


247,299

Total consolidated assets
$
5,694,307


$
5,857,755


$
5,283,049


 
2016
 
Segment
Totals
 
Unallocated
 
Consolidated Total
Other significant items:
 
 
 
 
 
Depreciation and amortization
$
201,176


$
21,469


$
222,645

Additions to long-lived assets
$
261,119


$
10,542


$
271,661

 
 
 
 
 
 
 
 
 
Revenues
 
Long-Lived Assets
Geographic information:
 
 
 
 
 
United States
 
 
$
7,834,361


$
1,134,817

Canada
 
 
739,687


210,931

Other foreign countries
 
 
1,563,156


210,605

 
 
 
$
10,137,204


$
1,556,353


 
2015
 
Segment
Totals
 
Unallocated
 
Consolidated Total
Other significant items:
 
 
 
 
 
Depreciation and amortization
$
187,987


$
18,854


$
206,841

Additions to long-lived assets
$
343,915


$
16,912


$
360,827

 
 
 
 
 
 
 
 
 
Revenues
 
Long-Lived Assets
Geographic information:
 
 
 
 
 
United States
 
 
$
7,866,300


$
1,231,083

Canada
 
 
897,431


215,202

Other foreign countries
 
 
1,209,653


153,508

 
 
 
$
9,973,384


$
1,599,793


 
2014
 
Segment
Totals
 
Unallocated
 
Consolidated Total
Other significant items:
 
 
 
 
 
Depreciation and amortization
$
171,830


$
18,341


$
190,171

Additions to long-lived assets
$
381,306


$
22,498


$
403,804

 
 
 
 
 
 
 
 
 
Revenues
 
Long-Lived Assets
Geographic information:
 
 
 
 
 
United States
 
 
$
7,780,382


$
1,109,175

Canada
 
 
1,074,660


253,466

Other foreign countries
 
 
1,109,911


110,083

 
 
 
$
9,964,953


$
1,472,724



Revenues are attributed to countries based on the ship-to location of the customer.

Unallocated expenses and unallocated assets primarily relate to the Company headquarters' 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.

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. Long-lived assets consist of property, buildings, equipment and capitalized software.

Depreciation and amortization presented above includes depreciation of long-lived assets and amortization of capitalized software.