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SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

    SEGMENT INFORMATION

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-touch 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.

Following is a summary of segment results (in millions of dollars):

	Three Months Ended March 31, 2020
	U.S.				Canada				Total Reportable Segments				Other businesses				Total
Total net sales	$	2,307			$	129			$	2,436			$	698			$	3,134
Intersegment net sales	(133		)		—				(133		)		—				(133		)
Net sales to external customers	$	2,174			$	129			$	2,303			$	698			$	3,001
Segment operating earnings	$	340			$	(3	)		$	337			$	(138	)		$	199

	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

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

	Three Months Ended March 31,
	2020				2019
Operating earnings:
Total operating earnings for reportable segments	$	337			$	359
Other businesses	(138		)		30
Unallocated expenses	(40		)		(26		)
Total consolidated operating earnings	$	159			$	363
	As of
	March 31, 2020				December 31, 2019
Assets:
United States	$	2,845			$	2,668
Canada	167				173
Assets for reportable segments	3,012				2,841
Other current and noncurrent assets	2,767				3,003
Unallocated assets	1,398				161
Total consolidated assets	$	7,177			$	6,005

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, and the dynamic nature of the inventory offered, including the evolving list of products stocked and additional products available online but not stocked.

Unallocated amounts include corporate-level support and administrative expenses, corporate-level assets consisting primarily of cash, property, buildings and equipment, 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.

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- References

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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