v3.26.1
DEBT
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
Total debt, including long-term and current maturities, consisted of the following (in millions of dollars):

As of
June 30, 2026
December 31, 2025
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $894 $1,000 $904 
4.45% senior notes due 2034
500 486 500 496 
3.75% senior notes due 2046
400 314 400 338 
4.20% senior notes due 2047
400 333 400 317 
Japanese Yen term loans126 126 83 83 
Debt issuance costs – net of amortization and other(20)(20)(21)(21)
Long-term debt2,406 2,133 2,362 2,117 
Commercial paper and other2 2 126 126 
Current maturities2 2 126 126 
Total debt$2,408 $2,135 $2,488 $2,243 

Senior Notes
Between 2015 and 2024, Grainger issued $2.3 billion in unsecured debt (Senior Notes), net of the $500 million principal repayment for the 1.85% Senior Notes that matured in February 2025, 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 June 30, 2026 and December 31, 2025, the cumulative unamortized costs were $20 million and $21 million, respectively.

Japanese Yen Term Loans
In 2026 and 2025, MonotaRO entered into ¥7.5 billion and ¥13 billion, respectively, 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. The weighted average interest rates on the 2026 and 2025 term loans are 1.74% and 1.27%, respectively.

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.