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DEBT
 6 Months Ended
Jun. 30, 2024
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, 2024
December 31, 2023
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $897 $1,000 $967 
1.85% senior notes due 2025
— — 500 483 
3.75% senior notes due 2046
400 312 400 336 
4.20% senior notes due 2047
400 333 400 361 
Debt issuance costs – net of amortization and other(17)(17)(34)(34)
Long-term debt1,783 1,525 2,266 2,113 
1.85% senior notes due 2025
500 489 — — 
Japanese yen term loan14 14 32 32 
Other(9)(9)2 2 
Current maturities505 494 34 34 
Total debt$2,288 $2,019 $2,300 $2,147 

Senior Notes
Between 2015 and 2020, Grainger issued $2.3 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 June 30, 2024 and December 31, 2023, the unamortized costs were $18 million and $19 million, respectively.

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 are presented in Other in Current maturities as of June 30, 2024 and Other in Long-term debt as of December 31, 2023 in the table above. For further discussion on the Company's hedge accounting policies, see Note 6.

MonotaRO Term Loan
In August 2020, MonotaRO Co., Ltd (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, 2024 and December 31, 2023, the carrying amount of the term loan in Current maturities was $14 million and $32 million, respectively. The term loan matures in August 2024 and bears an average interest rate 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.