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DEBT
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
DEBT DEBT
Long-term debt, including debt issuance costs and discounts – net, consisted of the following (in millions of dollars):
As of
March 31, 2022December 31, 2021
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $1,108 $1,000 $1,284 
1.85% senior notes due 2025
500 486 500 509 
4.20% senior notes due 2047
400 426 400 492 
3.75% senior notes due 2046
400 399 400 459 
Japanese yen term loan 74 74 78 78 
Other(14)(14)7 7 
Subtotal2,360 2,479 2,385 2,829 
Debt issuance costs and discounts – net of amortization
(22)(22)(23)(23)
Long-term debt$2,338 $2,457 $2,362 $2,806 

Senior Notes
In the years 2015-2020, Grainger issued $2.3 billion in unsecured long-term debt (Senior Notes) primarily to provide flexibility in funding general working capital needs and long-term cash requirements. The Senior Notes require no principal payments until maturity and interest is paid semi-annually.

The Company incurred debt issuance costs related to its Senior Notes of approximately $29 million, representing underwriting fees and other expenses, that were recorded as a contra-liability within Long-term debt and are being amortized over the term of the Senior Notes using the straight-line method to Interest expense – net.

The Company uses interest rate swaps to manage the risks associated with its 1.85% Senior Notes. These swaps were designated for hedge accounting treatment as fair value hedges. The resulting carrying value adjustments as of March 31, 2022 and December 31, 2021, are presented within Other in the table above. For further discussion on the Company's hedge accounting policies and derivative instruments, see Note 6.

Term Loan
In August 2020, MonotaRO entered into a ¥9 billion term loan agreement to fund technology investments and the expansion of its distribution center (DC) network. The term loan matures in 2024, payable over four equal semi-annual principal installments in 2023 and 2024 and bears an average interest of 0.05%.

Fair Value
The estimated fair value of the Company’s Senior Notes was based on available external pricing data and current market rates for similar debt instruments, among other factors, which are classified as Level 2 inputs within the fair value hierarchy.

For further information on the Company’s debt instruments, see Note 6 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data in the Company’s 2021 Form 10-K.