XML 27 R15.htm IDEA: XBRL DOCUMENT v3.25.3
DEBT
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Total debt, including long-term and current maturities, consisted of the following (in millions of dollars):
As of
September 30, 2025
December 31, 2024
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $911 $1,000 $894 
4.45% senior notes due 2034
500 494 500 477 
3.75% senior notes due 2046
400 337 400 332 
4.20% senior notes due 2047
400 319 400 312 
Japanese Yen term loans88 88 — — 
Debt issuance costs – net of amortization and other(21)(21)(21)(21)
Long-term debt2,367 2,128 2,279 1,994 
1.85% senior notes due 2025(1)
— — 500 498 
Other2 2 (1)(1)
Current maturities2 2 499 497 
Total debt$2,369 $2,130 $2,778 $2,491 
(1)On February 18, 2025, Grainger repaid in full the principal amount of $500 million for the 1.85% Senior Notes that matured in February 2025. The related interest rate swaps with a notional value of $450 million that hedged a portion of the interest rate risk related to this debt expired on February 15, 2025.

Senior Notes
Between 2015 and 2024, Grainger issued $2.8 billion in unsecured 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, representing underwriting fees and other expenses. These costs were recorded as a contra-liability in Long-term debt and are being amortized over the term of the Senior Notes using the straight-line method to Interest expense – net. As of September 30, 2025 and December 31, 2024, the cumulative unamortized costs were $21 million and $22 million, respectively.

Japanese Yen Term Loans
In June 2025, MonotaRO entered into ¥9 billion term loan agreements to fund the expansion of its distribution center (DC) network. The Japanese Yen term loans mature in 2035, payable in equal monthly principal installments from September 2028 through June 2035, and bear a weighted average interest rate of 1.24%.

In September 2025, MonotaRO entered into an additional ¥4 billion term loan agreement to fund the expansion of its DC network. The Japanese Yen term loan matures in 2035, payable in equal monthly principal installments from September 2028 through June 2035, and bears a fixed interest rate of 1.33%.

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.