XML 32 R19.htm IDEA: XBRL DOCUMENT v3.19.1
SEGMENT INFORMATION
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION
    SEGMENT INFORMATION

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 for 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 March 31, 2019
 
U.S.
 
Canada
 
Total Reportable Segments
 
Other businesses
 
Total
Total net sales
$
2,149

 
$
136

 
$
2,285

 
$
633

 
$
2,918

Intersegment net sales
(118
)
 

 
(118
)
 
(1
)
 
(119
)
Net sales to external customers
$
2,031

 
$
136

 
$
2,167

 
$
632

 
$
2,799

Segment operating earnings
$
364

 
$
(5
)
 
$
359

 
$
30

 
$
389

 
Three Months Ended March 31, 2018
 
U.S.
 
Canada
 
Total Reportable Segments
 
Other businesses
 
Total
Total net sales
$
2,108

 
$
182

 
$
2,290

 
$
588

 
$
2,878

Intersegment net sales
(111
)
 

 
(111
)
 
(1
)
 
(112
)
Net sales to external customers
$
1,997

 
$
182

 
$
2,179

 
$
587

 
$
2,766

Segment operating earnings
$
357

 
$
(20
)
 
$
337

 
$
36

 
$
373


Following are reconciliations of segment information with the total consolidated totals per the financial statements (in millions of dollars):
 
Three Months Ended March 31,
 
2019
 
2018
Operating earnings:
 
Total operating earnings for reportable segments
$
359

 
$
337

Other businesses
30

 
36

Unallocated expenses
(26
)
 
(38
)
Total consolidated operating earnings
$
363

 
$
335

 
 
 
 
 
As of
 
March 31, 2019
 
December 31, 2018
Assets:
 
 
 
United States
$
2,575

 
$
2,496

Canada
184

 
188

Assets for reportable segments
2,759

 
2,684

Other current and noncurrent assets
3,051

 
2,879

Unallocated assets
204

 
310

Total consolidated assets
$
6,014

 
$
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.