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DEBT
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
Total debt, including long-term, current maturities and debt issuance costs and discounts – net, consisted of the following (in millions of dollars):
As of
June 30, 2023
December 31, 2022
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $949 $1,000 $916 
1.85% senior notes due 2025
500 475 500 470 
4.20% senior notes due 2047
400 351 400 338 
3.75% senior notes due 2046
400 325 400 317 
MonotaRO term loan 52 52 69 69 
Other(24)(24)(29)(29)
Subtotal2,328 2,128 2,340 2,081 
Less current maturities(33)(33)(35)(35)
Debt issuance costs and discounts – net of amortization
(20)(20)(21)(21)
Long-term debt$2,275 $2,075 $2,284 $2,025 


Senior Notes
Between 2015 and 2020, Grainger issued $2.3 billion in unsecured long-term debt (Senior Notes) primarily to provide flexibility in funding general working capital needs, share repurchases 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 June 30, 2023 and December 31, 2022, are presented within Other in the table above. For further discussion on the Company's hedge accounting policies, see Note 6.

MonotaRO 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. As of June 30, 2023 and December 31, 2022, the carrying amount of the term loan, including current maturities due within one year, was $52 million and $69 million, respectively. The term loan matures in August 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 5 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data in the Company’s 2022 Form 10-K.