SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2019

Grainger’s two reportable segments are the U.S. and Canada. These reportable segments reflect the results of the Company's high-touch solutions businesses in those geographies. Other businesses include the endless assortment businesses, Zoro Tools, Inc. (Zoro) and MonotaRO Co. (MonotaRO), and smaller high-tough solutions businesses in Europe 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.

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 millions of dollars):



	2019
	United States			Canada		Total Reportable Segments			Other businesses			Total
Total net sales	$	8,815		$	529	$	9,344		$	2,651		$	11,995
Intersegment net sales	(505		)	—		(505		)	(4		)	(509		)
Net sales to external customers	$	8,310		$	529	$	8,839		$	2,647		11,486

Segment operating earnings	$	1,391		$	3	$	1,394		$	(9	)	$	1,385



	2018
	United States			Canada			Total Reportable Segments			Other businesses			Total
Total net sales	$	8,588		$	653		$	9,241		$	2,441		$	11,682
Intersegment net sales	(457		)	—			(457		)	(4		)	(461		)
Net sales to external customers	$	8,131		$	653		$	8,784		$	2,437		$	11,221

Segment operating earnings	$	1,338		$	(49	)	$	1,289		$	8		$	1,297



	2017
	United States			Canada			Total Reportable Segments			Other businesses			Total
Total net sales	$	7,960		$	753		$	8,713		$	2,120		$	10,833
Intersegment net sales	(404		)	—			(404		)	(4		)	(408		)
Net sales to external customers	$	7,556		$	753		$	8,309		$	2,116		$	10,425

Segment operating earnings	$	1,200		$	(77	)	$	1,123		$	56		$	1,179

Following are reconciliations of the segment information with the consolidated totals per the Financial Statements (in millions of dollars):



	2019			2018			2017
Operating earnings:
Total operating earnings for reportable segments	$	1,394		$	1,289		$	1,123
Other businesses	(9		)	8			56
Unallocated expenses	(123		)	(139		)	(144		)
Total consolidated operating earnings	$	1,262		$	1,158		$	1,035

Assets:
United States	$	2,668		$	2,496		$	2,310
Canada	173			188			279
Assets for reportable segments	$	2,841		$	2,684		$	2,589
Other current and noncurrent assets	3,003			2,879			3,033
Unallocated assets	161			310			182
Total consolidated assets	$	6,005		$	5,873		$	5,804

Depreciation and amortization:
United States	$	148		$	166		$	169
Canada	17			19			19
Depreciation and amortization for reportable segments	$	165		$	185		$	188
Other businesses and unallocated	45			49			53
Total consolidated depreciation and amortization	$	210		$	234		$	241

Additions to long-lived assets
United States	$	168		$	200		$	187
Canada	9			7			8
Additions to long-lived assets for reportable segments	$	177		$	207		$	195
Other businesses and unallocated	72			39			67
Total consolidated additions to long-lived assets	$	249		$	246		$	262

Following are revenue and long-lived assets by geographic location (in millions of dollars):



	2019		2018		2017
Revenue by geographic location:
United States	$	8,865	$	8,613	$	7,948
Canada	539		658		761
Other foreign countries	2,082		1,950		1,716
	$	11,486	$	11,221	$	10,425

Long-lived segment assets by geographic location:
United States	$	1,268	$	1,140	$	1,098
Canada	152		136		199
Other foreign countries	327		202		247
	$	1,747	$	1,478	$	1,544

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 amounts include corporate-level support and administrative expenses, corporate-level assets consisting primarily of cash, property, buildings and equipment and 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. Long-lived assets consist of property, buildings, equipment, capitalized software and ROU assets of $223 million as of December 31, 2019.

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