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SEGMENT INFORMATION
 9 Months Ended
Sep. 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. businesses. The Canada operating segment reflects the results for Acklands – Grainger Inc. and its subsidiaries. Other businesses include Zoro in the U.S, MonotaRO in Japan and 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 MRO 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 September 30, 2017
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
2,015,968

 
$
188,216

 
$
536,927

 
$
2,741,111

Intersegment net sales
(103,667
)
 
(13
)
 
(1,432
)
 
(105,112
)
Net sales to external customers
$
1,912,301

 
$
188,203

 
$
535,495

 
$
2,635,999

Segment operating earnings (losses)
$
297,855

 
$
(14,972
)
 
$
26,892

 
$
309,775

  
 
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 (losses)
$
342,524

 
$
(15,118
)
 
$
24,835

 
$
352,241


 
Nine Months Ended September 30, 2017
 
United States
 
Canada
 
Other Businesses
 
Total
Total net sales
$
5,968,565

 
$
563,470

 
$
1,560,894

 
$
8,092,929

Intersegment net sales
(297,247
)
 
(15
)
 
(3,270
)
 
(300,532
)
Net sales to external customers
$
5,671,318

 
$
563,455

 
$
1,557,624

 
$
7,792,397

Segment operating earnings (losses)
$
922,614

 
$
(59,428
)
 
$
44,177

 
$
907,363

 
 
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 (losses)
$
1,023,318

 
$
(55,207
)
 
$
76,343

 
$
1,044,454


 
United States
 
Canada
 
Other Businesses
 
Total
Segment assets:
 
 
 
 
 
 
 
September 30, 2017
$
2,316,683

 
$
298,553

 
$
589,564

 
$
3,204,800

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 September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Operating earnings:
 
 
 
Total operating earnings for operating segments
$
309,775

 
$
352,241

 
$
907,363

 
$
1,044,454

Unallocated expenses and eliminations
(28,605
)
 
(29,654
)
 
(98,640
)
 
(99,185
)
Total consolidated operating earnings
$
281,170

 
$
322,587

 
$
808,723

 
$
945,269


 
 
September 30, 2017
 
December 31, 2016
Assets:
 
Total assets for operating segments
$
3,204,800

 
$
3,055,111

Other current and non-current assets
2,455,538

 
2,464,656

Unallocated assets
164,722

 
174,540

Total consolidated assets
$
5,825,060

 
$
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 $12 million and $40 million for the three and nine months ended September 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.