W.W. GRAINGER, INC., 10-K filed on 2/23/2022
Annual Report
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COVER - USD ($)
 12 Months Ended
Dec. 31, 2021
Feb. 11, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Document Transition Report false    
Entity File Number 1-5684    
Entity Registrant Name W.W. Grainger, Inc.    
Entity Incorporation, State or Country Code IL    
Entity Tax Identification Number 36-1150280    
Entity Address, Address Line One 100 Grainger Parkway    
Entity Address, City or Town Lake Forest,    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60045-5201    
City Area Code 847    
Local Phone Number 535-1000    
Title of 12(b) Security Common Stock    
Trading Symbol GWW    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 20,483,168,550
Entity Common Stock, Shares Outstanding   51,107,898  
Documents Incorporated by Reference Portions of the registrant's definitive proxy statement to be filed in connection with the annual meeting of shareholders to be held on April 27, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (Form 10-K) where indicated. The registrant's definitive 2021 proxy statement will be filed on or about March 17, 2022.    
Entity Central Index Key 0000277135    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
 12 Months Ended
Dec. 31, 2021
Auditor Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Chicago, Illinois
Auditor Firm ID 42
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CONSOLIDATED STATEMENTS OF EARNINGS - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Net sales $ 13,022 $ 11,797 $ 11,486
Cost of goods sold 8,302 7,559 7,089
Gross profit 4,720 4,238 4,397
Selling, general and administrative expenses 3,173 3,219 3,135
Operating earnings 1,547 1,019 1,262
Other (income) expense:      
Interest expense – net 87 93 79
Other – net (25) (21) (26)
Total other expense – net 62 72 53
Earnings before income taxes 1,485 947 1,209
Income tax provision 371 192 314
Net earnings 1,114 755 895
Less: Net earnings attributable to noncontrolling interest 71 60 46
Net earnings attributable to W.W. Grainger, Inc. $ 1,043 $ 695 $ 849
Earnings per share:      
Basic (in dollars per share) $ 19.94 $ 12.88 $ 15.39
Diluted (in dollars per share) $ 19.84 $ 12.82 $ 15.32
Weighted average number of shares outstanding:      
Basic (in shares) 51.9 53.5 54.7
Diluted (in shares) 52.2 53.7 54.9
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net earnings $ 1,114 $ 755 $ 895
Other comprehensive earnings (losses):      
Foreign currency translation adjustments – net of reclassification to earnings (see Note 2 and Note 11) (64) 83 26
Postretirement benefit plan gains (losses) – net of tax benefit (expense) of $—, $(7), and $2, respectively (see Note 7 and Note 11) 0 22 (6)
Total other comprehensive earnings (losses) (64) 105 20
Comprehensive earnings – net of tax 1,050 860 915
Less: Comprehensive earnings (losses) attributable to noncontrolling interest      
Net earnings 71 60 46
Foreign currency translation adjustments (29) 12 3
Total comprehensive earnings (losses) attributable to noncontrolling interest 42 72 49
Comprehensive earnings attributable to W.W. Grainger, Inc. $ 1,008 $ 788 $ 866
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS Parentheticals - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Postretirement benefit plan gains (losses), tax $ 0 $ (7) $ 2
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 241 $ 585
Accounts receivable (less allowance for credit losses of $30 and $27, respectively) 1,754 1,474
Inventories – net 1,870 1,733
Prepaid expenses and other current assets 146 127
Total current assets 4,011 3,919
Property, buildings and equipment – net 1,424 1,395
Goodwill 384 391
Intangibles – net 238 228
Operating lease right-of-use 393 210
Other assets 142 152
Total assets 6,592 6,295
Current liabilities    
Current maturities of long-term debt 0 8
Trade accounts payable 816 779
Accrued compensation and benefits 319 307
Operating lease liability 66 57
Accrued expenses 290 248
Income taxes payable 37 42
Total current liabilities 1,528 1,441
Long-term debt (less current maturities) 2,362 2,389
Long-term operating lease liability 334 162
Deferred income taxes and tax uncertainties 121 110
Other non-current liabilities 87 100
Shareholders' equity    
Cumulative preferred stock – $5 par value – 12,000,000 shares authorized; none issued nor outstanding 0 0
Common Stock – $0.50 par value – 300,000,000 shares authorized; issued 109,659,219 shares 55 55
Additional contributed capital 1,270 1,239
Retained earnings 9,500 8,779
Accumulated other comprehensive losses (96) (61)
Treasury stock, at cost – 58,439,014 and 57,134,828 shares, respectively (8,855) (8,184)
Total W.W. Grainger, Inc. shareholders’ equity 1,874 1,828
Noncontrolling interest 286 265
Total shareholders' equity 2,160 2,093
Total liabilities and shareholders' equity $ 6,592 $ 6,295
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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 30 $ 27
Cumulative preferred stock, par value (in dollars per share) $ 5 $ 5
Cumulative preferred stock, shares authorized (in shares) 12,000,000 12,000,000
Cumulative preferred stock, shares issued (in shares) 0 0
Cumulative preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.50 $ 0.50
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 109,659,219 109,659,219
Treasury stock, shares at cost (in shares) 58,439,014 57,134,828
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net earnings $ 1,114 $ 755 $ 895
Provision for credit losses 18 22 12
Deferred income taxes and tax uncertainties 27 (5) 4
Depreciation and amortization 185 182 229
Impairment of goodwill, intangible and long-lived assets 0 187 123
Net (gains) losses from sales of assets and business divestitures (6) 106 (6)
Stock-based compensation 42 46 40
Subtotal 266 538 402
Change in operating assets and liabilities      
Accounts receivable (324) (121) (42)
Inventories (152) (158) (106)
Prepaid expenses and other assets (15) (23) (33)
Trade accounts payable 54 80 32
Accrued liabilities 43 15 (84)
Income taxes – net (26) 24 (3)
Other non-current liabilities (23) 13 (19)
Subtotal (443) (170) (255)
Net cash provided by operating activities 937 1,123 1,042
Cash flows from investing activities:      
Additions to property, buildings, equipment and intangibles (255) (197) (221)
Proceeds from sale or redemption of assets and business divestitures 29 20 17
Other – net 0 (2) 2
Net cash used in investing activities (226) (179) (202)
Cash flows from financing activities:      
Borrowings under lines of credit 0 12 20
Payments against lines of credit 0 (65) (15)
Proceeds from long-term debt 0 1,584 0
Payments of long-term debt (8) (1,370) (42)
Proceeds from stock options exercised 48 70 49
Payments for employee taxes withheld from stock awards (30) (18) (11)
Purchases of treasury stock (695) (601) (700)
Cash dividends paid (357) (338) (328)
Other – net 3 0 4
Net cash used in financing activities (1,039) (726) (1,023)
Exchange rate effect on cash and cash equivalents (16) 7 5
Net change in cash and cash equivalents: (344) 225 (178)
Cash and cash equivalents at beginning of year 585 360 538
Cash and cash equivalents at end of year 241 585 360
Supplemental cash flow information:      
Cash payments for interest (net of amounts capitalized) 87 94 84
Cash payments for income taxes $ 377 $ 180 $ 322
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Contributed Capital
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Earnings (Losses)
Treasury Stock
Noncontrolling Interest
Beginning balance at Dec. 31, 2018 $ 2,093   $ 55 $ 1,134 $ 7,869   $ (171) $ (6,966) $ 172
Stock-based compensation 78     45       33  
Purchases of treasury stock (700)             (700)  
Net earnings 895       849       46
Other comprehensive earnings (losses) 20           17   3
Capital contribution 2     2          
Cash dividends paid (328)     1 (313)       (16)
Ending balance at Dec. 31, 2019 2,060   55 1,182 8,405   (154) (7,633) 205
Stock-based compensation 98     49       49  
Purchases of treasury stock (601)             (600) (1)
Net earnings 755       695       60
Other comprehensive earnings (losses) 105           93   12
Capital contribution 14     7         7
Cash dividends paid (338)     1 (321)       (18)
Ending balance at Dec. 31, 2020 2,093 $ 12 55 1,239 8,779 $ 12 (61) (8,184) 265
Stock-based compensation 60     31       28 1
Purchases of treasury stock (700)             (699) (1)
Net earnings 1,114       1,043       71
Other comprehensive earnings (losses) (64)           (35)   (29)
Capital contribution 2               2
Cash dividends paid (357)       (334)       (23)
Ending balance at Dec. 31, 2021 $ 2,160   $ 55 $ 1,270 $ 9,500   $ (96) $ (8,855) $ 286
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]      
Cash dividends paid per share (in dollars per share) $ 6.39 $ 5.94 $ 5.68
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
W.W. Grainger, Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) products and services with operations primarily in North America (N.A.), Japan and the United Kingdom (U.K.). In this report, the words “Grainger” or “Company” mean W.W. Grainger, Inc. and its subsidiaries, except where the context makes it clear that the reference is only to W.W. Grainger, Inc. itself and not its subsidiaries.

Effective January 1, 2021, Grainger's two reportable segments are High-Touch Solutions N.A. and Endless Assortment. On March 8, 2021, the Company provided investors with segment summary historical financial information and segment historical data that is consistent with its new reportable segment structure and reflective of its updated intersegment accounting policies. For further segment information, see Note 14.

Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries over which the Company exercises control. All significant intercompany transactions are eliminated from the Consolidated Financial Statements. The Company has a controlling ownership interest in MonotaRO, the endless assortment business in Japan, with the residual representing the noncontrolling interest.

The Company reports MonotaRO on a one-month calendar lag allowing for the timely preparation of financial statements. This one-month reporting lag is with the exception of significant transactions or events that occur during the intervening period. During December 2021, MonotaRO entered into a lease for a new Distribution Center (DC), which the Company deemed significant and included in the Consolidated Financial Statements for the year ended December 31, 2021.

Reclassifications
Certain reclassifications have been made to prior year amounts in the Company's Consolidated Balance Sheets to conform with the current year presentation. Reclassifications were made to separately present operating lease right-of-use assets and current and long-term lease obligations that were previously presented as Other assets, Accrued expenses and Other non-current liabilities, respectively. The reclassifications had no effect on net earnings or cash flows for the years ended December 31, 2021, 2020, or 2019.

Use of Estimates
The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions affecting reported amounts in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.

Foreign Currency Translation
The U.S. dollar is the Company's reporting currency for all periods presented. The financial statements of the Company’s foreign operating subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of the Company’s foreign operating subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at average rates in effect during the period. Translation gains or losses are recorded as a separate component of other comprehensive earnings (losses).

Revenue Recognition
The Company recognizes revenue when a sales arrangement with a customer exists (e.g., contract, purchase orders, others), the transaction price is fixed or determinable and the Company has satisfied its performance obligation per the sales arrangement.

The majority of Company revenue originates from contracts with a single performance obligation to deliver products, whereby performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. Some Company contracts contain a combination of product sales and services, which are distinct and accounted for as separate performance obligations and are satisfied when the services are rendered. Total service revenue is not material and accounted for approximately 1% of the Company's revenue for the years ended December 31, 2021, 2020 and 2019, respectively.
The Company’s revenue is measured at the determinable transaction price, net of any variable considerations granted to customers and any taxes collected from customers and subsequently remitted to governmental authorities. Variable considerations include rights to return products and sales incentives, which primarily consist of volume rebates. These variable considerations are estimated throughout the year based on various factors, including contract terms, historical experience and performance levels. Total accrued sales returns were approximately $34 million and $31 million as of December 31, 2021 and 2020, respectively, and are reported as a reduction of Accounts receivable, net. Total accrued sales incentives were approximately $73 million and $58 million as of December 31, 2021 and 2020, respectively, and are reported as part of Accrued expenses.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of December 31, 2021 and 2020.

Cost of Goods Sold (COGS)
COGS, exclusive of depreciation and amortization, includes the purchase cost of goods sold net of vendor considerations, in-bound shipping costs, outbound shipping and handling costs and service costs. The Company receives vendor considerations, such as rebates to promote their products, which are generally recorded as a reduction to COGS. Rebates earned from vendors that are based on product purchases are capitalized into inventory and rebates earned based on products sold are credited directly to COGS.

Selling, General and Administrative Expenses (SG&A)
Company SG&A is primarily comprised of depreciation and amortization, compensation and benefit costs, indirect purchasing, supply chain and branch operations, technology, leases, restructuring, impairments, advertising and selling expenses, as well as other types of general and administrative costs.

Advertising
Advertising costs, which include online marketing, are generally expensed in the year the related advertisement is first presented or when incurred. Total advertising expense was $402 million, $319 million and $316 million for 2021, 2020 and 2019, respectively.

Stock Incentive Plans
The Company measures all share-based payments using fair-value-based methods and records compensation expense on a straight-line basis over the vesting periods, net of estimated forfeitures.

Income Taxes
The Company recognizes the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. Also, the Company evaluates deferred income taxes to determine if valuation allowances are required using a “more likely than not” standard. This assessment considers the nature, frequency and amount of book and taxable income and losses, the duration of statutory carryback and forward periods, future reversals of existing taxable temporary differences and tax planning strategies, among other matters.

The Company recognizes tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that the tax positions will be sustained on examination by the tax authority. The Company recognizes interest expense and penalties to its tax uncertainties in the provision for income taxes.

Other Comprehensive Earnings (Losses)
The Company's Other comprehensive earnings (losses) include foreign currency translation adjustments and unrecognized gains (losses) on postretirement and other employment-related benefit plans. Accumulated other comprehensive earnings (losses) (AOCE) are presented separately as part of shareholders' equity.
Cash and Cash Equivalents
The Company considers investments in highly liquid debt instruments, purchased with an original maturity of 90 days or less, to be cash equivalents.

Concentration of Credit Risk
The Company places temporary cash investments with institutions of high credit quality and, by policy, limits the amount of credit exposure to any one institution. Also, the Company has a broad customer base representing many diverse industries across North America, Japan and U.K. Consequently, no significant concentration of credit risk is considered to exist.

Accounts Receivable and Allowance for Credit Losses
The Company’s accounts receivable arises primarily from sales on credit to customers and are stated at their estimated net realizable value. The Company establishes allowances for credit losses on customer accounts that are potentially uncollectible. These allowances are determined based on several factors, including the age of the receivables, historical collection trends and economic conditions that may have an impact on a specific industry, group of customers or a specific customer.

The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators for industry groups, customer classes or individual customers.

Inventories
Company inventories primarily consist of merchandise purchased for resale, and they are valued at the lower of cost or net realizable value. The Company uses the last-in, first-out (LIFO) method to account for approximately 75% of total inventory and the first-in, first-out (FIFO) method for the remaining inventory. The Company regularly reviews inventory to evaluate continued demand and records excess and obsolete provisions representing the difference between excess and obsolete inventories and net realizable value. Estimated net realizable value considers various variables, including product demand, aging and shelf life, market conditions, and liquidation or disposition history and values.

If FIFO had been used for all of the Company’s inventories, they would have been $510 million and $446 million higher than reported at December 31, 2021 and December 31, 2020, respectively. Concurrently, net earnings would have increased by $49 million, $15 million and $24 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Property, Buildings and Equipment
Property, buildings and equipment are stated at cost, less accumulated depreciation. Depreciation is computed over the estimated useful lives of the asset classes using the straight-line method. Useful lives for buildings, structures and improvements range from 10 to 50 years and furniture, fixtures, machinery and equipment from three to 15 years. Amounts expended for maintenance and repairs are charged to expense as incurred.
Historically, Grainger had depreciated certain property, buildings and equipment using both the declining balance and sum-of-the-years’ digits methods as well as certain buildings over estimated useful lives of approximately thirty years. In accordance with its policy, the Company periodically reviews information impacting the pattern of consumption for its capital assets and useful lives to ensure that estimates of depreciation expenses are appropriate. The Company’s investment in its supply chain infrastructure and technology triggered the review of these patterns of consumption. Pursuant to the review and effective January 1, 2020, the method of estimating depreciation for certain assets was changed to the straight-line method and updated useful lives to forty and fifty years. The Company determined that these changes in depreciation method and useful lives were considered a change in accounting estimate effected by a change in accounting principle, and as such have been accounted for on a prospective basis. Grainger believes the changes to the straight-line method and useful lives are appropriate estimations of the Company's current patterns of economic consumption of its capital assets and appropriately match current revenues and costs over updated estimates of the assets' useful lives. The effect of these changes resulted in a decrease of $34 million to depreciation expense for the year ended December 2020.

Depreciation expense was $123 million, $116 million and $150 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company capitalized interest costs of $1 million, $4 million and $9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Long-Lived Assets
The carrying value of long-lived assets, primarily property, buildings and equipment and amortizable intangibles, is evaluated whenever events or changes in circumstances indicate that the carrying value of the asset group may be impaired. An impairment loss is recognized when estimated undiscounted future cash flows resulting from use of the asset, including disposition, are less than their carrying value. Impairment is measured as the amount by which the asset's carrying amount exceeds the fair value.

Leases
The Company leases certain properties and buildings (including branches, warehouses, DCs and office space) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company determines if an arrangement contains a lease at inception. Leases with an initial term of more than 12 months are recorded on the balance sheet as right-of-use (ROU) assets representing the right to use the underlying asset for the lease term and the corresponding current and long-term lease liabilities representing the obligation to make lease payments arising from the lease.

ROU assets and lease liabilities are recognized at the lease commencement or possession date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate, the ROU asset and the lease liability are re-evaluated upon a lease modification.

Certain lease agreements include variable lease payments that primarily include payments for non-lease components including pass-through operating expenses such as certain maintenance costs and utilities, and payments for non-components such as real estate taxes and insurance. Lease agreements with fixed lease and non-lease components are generally accounted for as a single lease component for all underlying classes of assets. Certain of the Company’s lease arrangements contain renewal provisions from one to 30 years, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in SG&A.

Goodwill and Other Intangible Assets
In a business acquisition, the Company recognizes goodwill as the excess purchase price of an acquired reporting unit over the net amount assigned to assets acquired including intangible assets and liabilities assumed. Acquired intangibles include both assets with indefinite lives and assets that are subject to amortization, which are amortized straight-line over their estimated useful lives.
The Company tests goodwill and indefinite-lived intangibles for impairment annually during the fourth quarter and more frequently if impairment indicators exist. The Company performs qualitative assessments of significant events and circumstances, such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors, including the current global outbreak of the COVID-19 pandemic to determine the existence of impairment indicators and assess if it is more likely than not that the fair value of the reporting unit or indefinite-lived intangible asset is less than its carrying value that would necessitate a quantitative impairment test. In the quantitative test, Grainger compares the carrying value of the reporting unit or an indefinite-lived intangible asset with its fair value. Any excess of the carrying value over fair value is recorded as an impairment charge, presented as part of SG&A.

The fair value of reporting units is calculated primarily using the discounted cash flow method and utilizing value indicators from a market approach to evaluate the reasonableness of the resulting fair values. Estimates of market-participant risk-adjusted weighted average cost of capital are used as a basis for determining the discount rates to apply to the reporting units’ future expected cash flows and terminal value.

The Company’s indefinite-lived intangibles are primarily trade names. The fair value of trade names is calculated primarily using the relief-from-royalty method, which estimates the expected royalty savings attributable to the ownership of the trade name asset. The key assumptions when valuing a trade name are the revenue base, the royalty rate, and the discount rate.

Additionally, the Company capitalizes certain costs related to the purchase and development of internal-use software, which are presented as intangible assets. Amortization of capitalized software is on a straight-line basis over three or five years.

Accounting for Derivative Instruments
The Company recognizes all derivative instruments as assets or liabilities in the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship.

To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction, type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Company uses statistical methods and qualitative comparisons of critical terms. The extent to which a derivative has been and is expected to continue to be, highly effective at offsetting changes in the fair value or cash flows of the hedged item is assessed and documented periodically. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. For those derivative instruments that are designated and qualify as hedging instruments, the Company classifies them as fair value hedges or cash flow hedges.

Contingencies
The Company accrues for costs relating to litigation claims and other contingent matters when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

New Accounting Standards
Accounting Pronouncements Recently Adopted
In October 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-10, Codification Improvements. These amendments improve consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the codification by amending and adding new headings, cross referencing to other guidance and refining or correcting terminology. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Consolidated Financial Statements.
In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), Clarifying the Interactions between Topic 321, Topic 323 and Topic 815. This ASU simplifies the understanding and application of the codification topics by eliminating inconsistencies and providing clarifications. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Consolidated Financial Statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intra-period tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Consolidated Financial Statements.

Accounting Pronouncements Recently Issued
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update provides increased transparency of government assistance including the disclosure of the types of assistance an entity receives, an entity's method of accounting for government assistance and the effect of the assistance on an entity's financial statements. The guidance is effective for annual periods beginning after December 15, 2021 and should be applied prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard and does not expect a material impact on the Financial Statements or related disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting as modified by subsequently issued ASU 2021-01. This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and generally can be applied prospectively to contract modifications made and hedging relationships entered or evaluated on or before December 31, 2022. The Company evaluated the impact of this ASU and it does not expect a material impact on the Consolidated Financial Statements.
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BUSINESS DIVESTITURES AND LIQUIDATIONS
 12 Months Ended
Dec. 31, 2021
Business Combinations [Abstract]  
BUSINESS DIVESTITURES AND LIQUIDATIONS BUSINESS DIVESTITURES AND LIQUIDATIONS
Consistent with the Company's strategic focus on broad line MRO distribution in key markets, Grainger divested the Fabory business in Europe (Fabory) on June 30, 2020 and the China business (China) on August 21, 2020. Accordingly, the Company's Consolidated Statements of Earnings, Comprehensive Earnings and Cash Flows and related notes include Fabory and China results through the respective dates of divestiture. The proceeds from these divestitures were used to fund general corporate needs.

During the second and third quarters of 2020, Grainger recognized a net loss of approximately $109 million and a gain of $5 million in SG&A as a result of the Fabory and China divestitures, respectively, which included net accumulated foreign currency translation losses of $45 million, that were reclassified from Accumulated other comprehensive earnings (losses) (AOCE) to SG&A. During the fourth quarter of 2020, the Company commenced the liquidation of ZTE and recognized $9 million in expense in SG&A associated with the wind down of the business.
v3.22.0.1
REVENUE
 12 Months Ended
Dec. 31, 2021
REVENUE [Abstract]  
REVENUE REVENUE
Grainger serves a large number of customers in diverse industries, which are subject to different economic and market specific factors. Revenue is primarily comprised of MRO product sales and related activities, such as freight and services. The Company's presentation of revenue by reportable segment and industry most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and market-specific factors. In addition, the segments have unique underlying risks associated with customer purchasing behaviors. In the High-Touch Solutions N.A. segment, more than two-thirds of revenue is derived from customer contracts and in the Endless Assortment segment, a majority of revenue is derived from spot buys.

The following table presents the Company's percentage of revenue by reportable segment and by major customer industry:
 Twelve Months Ended December 31,
202120202019
 High-Touch Solutions N.A. Endless Assortment 
Total Company (2)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
Contractors9 %16 %10 %9 %15 %10 %10 %16 %10 %
Commercial9 15 10 8 15 9 10 15 11 
Government18 3 15 20 3 16 17 3 14 
Healthcare7 2 6 9 2 7 7 1 6 
Manufacturing30 29 30 29 29 30 31 31 31 
Retail/Wholesale10 10 10 9 10 9 8 10 8 
Transportation5 3 5 5 3 5 6 3 5 
Other (1)
12 22 14 11 23 14 11 21 15 
Total net sales100 % 100 % 100 %100 %100 %100 %100 %100 %100 %
Percent of Total Company Revenue78 %20 %100 %78 %18 %100 %79 %16 %100 %
(1) Other primarily includes revenue from industries and customers that are not material individually, including agriculture, mining, natural resources and resellers not aligned to a major industry segment.
(2) Total Company includes other businesses, which includes the Cromwell business, as well as the Fabory and China businesses in the periods prior to their divestitures in the second and third quarter of 2020, respectively. Other businesses account for approximately 2%, 4% and 5% of revenue for the twelve months ended December 31, 2021, 2020 and 2019, respectively.
v3.22.0.1
PROPERTY, BUILDINGS AND EQUIPMENT
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY, BUILDINGS AND EQUIPMENT PROPERTY, BUILDINGS AND EQUIPMENT
Property, buildings and equipment consisted of the following (in millions of dollars):
 As of
 December 31, 2021 December 31, 2020
Land$329  $329 
Building, structures and improvements1,431  1,330 
Furniture, fixtures, machinery and equipment1,567  1,878 
Property, buildings and equipment
$3,327  $3,537 
Less: Accumulated depreciation and amortization1,903  2,142 
Property, buildings and equipment, net
$1,424  $1,395 
During the first quarter of 2020, the Company recorded impairment charges in SG&A in connection with the impairment of Fabory’s long-lived assets, including property, buildings and equipment for approximately $24 million. The Company divested Fabory during the second quarter of 2020.
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2021
GOODWILL AND OTHER INTANGIBLES [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Grainger completed its annual impairment testing of goodwill and intangible assets during the fourth quarter of 2021 and 2020. Based on the results of that testing, the Company concluded that it was more likely than not that the fair value of the reporting units exceeded their carrying amounts at each respective period.

High-Touch Solutions N.A. – Canada Business
In the second quarter of 2020, qualitative tests indicated the existence of impairment indicators for the Canada business given the slowdowns in global oil markets and the economic repercussions from the COVID-19 pandemic in Canada. As such, a quantitative test was performed to evaluate whether any impairment of goodwill was necessary. Based on the result of the quantitative test, the Company concluded there was no impairment of goodwill.

During the subsequent annual impairment testing of the Canada business goodwill in 2020 and 2021, the Company performed qualitative assessments, which included evaluations of changes in key assumptions, notably projections of revenue growth, factors that could impact the discount rate used in the analysis, and the improvement in operating leverage since the performance of the last quantitative impairment test. As part of this assessment, Grainger compared the current results to the forecasted expectations of the most recent quantitative analysis, along with analyzing macroeconomic conditions, current industry trends and transactions, and other market data of industry peers. The Company did not identify any significant events or changes in circumstances that indicated the existence of impairment indicators, as such, additional quantitative assessments were not required and concluded that it was more likely than not that the fair value of the Canada business reporting unit exceeded its carrying amount. At December 31, 2021, the reporting unit's goodwill balance was $129 million.

The Company balances and changes in the carrying amount of Goodwill (net of cumulative goodwill impairments) by segment are as follows (in millions of dollars):
High-Touch Solutions N.A.Endless AssortmentOtherTotal
Balance at January 1, 2020$318 $52 $59 $429 
Acquisition— 15 — 15 
Impairment— — (58)(58)
Translation3 3 (1)5 
Balance at December 31, 2020321 70 — 391 
Translation— (7)— (7)
Balance at December 31, 2021$321 $63 $— $384 
The cumulative goodwill impairments as of December 31, 2021, were $137 million and consisted of $32 million within High-Touch Solutions N.A. and $105 million in Other.

During the first quarter of 2020, the Company recorded $58 million of impairment charges in SG&A, in connection with the impairment of Fabory's goodwill. The impairment is presented in Other in the table above. The Company divested the Fabory business during the second quarter of 2020. Grainger's current business portfolio had no impairments to goodwill for the twelve months ended December 31, 2021, and December 31, 2020, respectively.
The balances and changes in intangible assets, net are as follows (in millions of dollars):
As of December 31,
20212020
Weighted average lifeGross carrying amountAccumulated amortization/ impairmentNet carrying amountGross carrying amountAccumulated amortization/impairmentNet carrying amount
Customer lists and relationships
11.8 years$221 $176 $45 $223 $171 $52 
Trademarks, trade names and other
14.1 years36 24 12 36 22 14 
Non-amortized trade names and other
Indefinite25 — 25 28 — 28 
Capitalized software4.4 years525 369 156 461 327 134 
Total intangible assets6.9 years$807 $569 $238 $748 $520 $228 

Amortization expense of intangible assets presented in SG&A, excluding impairment charges was $63 million, $60 million, and $78 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Estimated amortization expense for future periods is as follows (in millions of dollars):
Year Expense
2022$54 
202341 
202431 
202524 
202619 
Thereafter44 
   Total$213 
v3.22.0.1
LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2021
Long-term Debt, Unclassified [Abstract]  
LONG-TERM DEBT DEBT
In February 2020, the Company entered into a five-year unsecured credit agreement pursuant to which the Company may obtain loans in various currencies on a revolving basis in an aggregate amount not exceeding the U.S. Dollar equivalent of $1.25 billion ($1.25 billion credit facility), which may be increased from time to time up to $1.875 billion at the request of the Company, subject to approval from lenders and other customary conditions. The $1.25 billion credit facility replaced the Company's former $750 million unsecured revolving credit facility, which originated in October 2017 and was scheduled to mature in October 2022.

There were no borrowings outstanding under the line of credit as of December 31, 2021 and 2020. The primary purpose of this credit facility is to support the Company's commercial paper program and for general corporate purposes. The Company issues commercial paper from time to time for general working capital needs. At December 31, 2021 and 2020, there was none outstanding.

The Company's debt instruments include affirmative and negative covenants that are usual and customary for companies with similar credit ratings and do not contain any financial performance covenants. The Company was in compliance with all debt covenants as of December 31, 2021.
Long-term debt obligations, including current maturities and debt issuance costs and discounts, net, consisted of the following (in millions of dollars):
As of December 31,
 20212020
Carrying Value
Fair Value (4)
Carrying Value
Fair Value (4)
4.60% senior notes due 2045 (1)
1,000 1,284 $1,000 $1,343 
3.75% senior notes due 2046 (1)
400 459 400 479 
4.20% senior notes due 2047 (1)
400 492 400 514 
1.85% senior notes due 2025 (2)
500 509 500 526 
Japanese Yen term loan (3)
78 78 87 87 
Other7 7 34 34 
Subtotal2,385 2,829 2,421 2,983 
Less current maturities— — (8)(8)
Debt issuance costs and discounts – net of amortization(23)(23)(24)(24)
Long-term debt (less current maturities)$2,362 $2,806 $2,389 $2,951 

(1) In the years 2015-2017, Grainger issued $1.8 billion in long-term debt (Senior Notes). Debt was issued as follows:
•In May 2017, $400 million payable in 30 years and carries a 4.20% interest rate, payable semiannually.
•In May 2016, $400 million payable in 30 years and carries a 3.75% interest rate, payable semiannually.
•In June 2015, $1 billion payable in 30 years and carries a 4.60% interest rate, payable semiannually.

The Company may redeem the Senior Notes in whole at any time or in part from time to time at a “make-whole” redemption price prior to their respective maturity dates. The redemption price is calculated by reference to the then-current yield on a U.S. treasury security with a maturity comparable to the remaining term of the Senior Notes plus 20-25 basis points, together with accrued and unpaid interest, if any, at the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the Senior Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. Within one year of the maturity date, the Company may redeem the Senior Notes in whole at any time or in part at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. At the time of issuance, costs and discounts of approximately $24 million representing underwriting fees and other expenses, were recorded as a contra-liability within Long-term debt and are being amortized to interest expense over the term of the Senior Notes.

(2) In February 2020, the Company issued $500 million of unsecured 1.85% Senior Notes (1.85% Notes) and used the proceeds to repay the British pound term loan, Euro term loan and the Canadian dollar revolving credit facility, and to fund general working capital needs. The 1.85% Notes mature in February 2025, they require no principal payments until the maturity date and interest is payable semi-annually on February 15 and August 15, beginning in August 2020. Prior to January 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at a “make-whole” redemption price. This redemption price is calculated by reference to the then-current yield on a U.S. Treasury security with a maturity comparable to the remaining term of the 1.85% Notes plus 10 basis points, together with accrued and unpaid interest, if any, at the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the 1.85% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. On or after January 15, 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. At the time of issuance, costs and discounts of approximately $5 million associated with the issuance of the 1.85% Notes, representing underwriting fees and other expenses, were recorded as a contra-liability within Long-term debt and are being amortized to interest expense, net over the term of the 1.85% Notes. In connection with the 1.85% Notes, in February 2020, the Company entered into derivative instrument agreements to manage its risks associated with interest rates on the 1.85% Notes.
The carrying value adjustments resulting from the interest rate swaps in both periods are presented within Other in the table above. For further discussion of the Company's hedge accounting policies and derivative instruments, see Notes 1 and 12.

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

(4) 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. The carrying value of other long-term debt approximates fair value due to their variable interest rates.

The scheduled aggregate principal payments required on the Company's indebtedness, based on the maturity dates defined within the debt arrangements, for the succeeding five years, excluding debt issuance costs and the impact of derivatives, are due as follows (in millions of dollars):
YearPayment Amount
2022$— 
202339 
202440 
2025500 
20265 
Thereafter1,800 
Total$2,384 
v3.22.0.1
EMPLOYEE BENEFITS
 12 Months Ended
Dec. 31, 2021
EMPLOYEE BENEFITS [Abstract]  
EMPLOYEE BENEFITS EMPLOYEE BENEFITS
The Company provides various retirement benefits to eligible team members, including contributions to defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits and other benefits. Eligibility requirements and benefit levels vary depending on team member location. Various foreign benefit plans cover team members in accordance with local legal requirements.

Defined Contribution Plans
A majority of the Company's U.S. team members are covered by a retirement savings plan, adopted as of January 1, 2021. The new plan amended and restated the prior noncontributory profit-sharing plan, which previously aligned Company contributions to Company performance and included two components, a variable annual contribution based on the Company's rate of return on invested capital and an automatic contribution equal to 3% of the eligible team member's total eligible compensation. As part of the amendment, beginning in 2021, the profit-sharing contribution was removed, and the Company's automatic contribution increased from 3% to 6% of total eligible participants’ compensation. In addition, team members covered by the plan are also able to make personal contributions.

The total retirement savings plan expense was $78 million for 2021. The total profit-sharing plan expense was $99 million and $113 million for 2020 and 2019, respectively.

The Company sponsors additional defined contribution plans available to certain U.S. and foreign team members for which contributions are made by the Company and participating team members. The expense associated with these defined contribution plans totaled $16 million, $16 million, and $19 million for 2021, 2020 and 2019, respectively.
Postretirement Healthcare Benefits Plans
The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its U.S. team members hired prior to January 1, 2013, and their dependents should they elect to maintain such coverage upon retirement. Covered team members become eligible for participation when they qualify for retirement while working for the Company. Participation in the plan is voluntary and requires participants to make contributions toward the cost of the plan, as determined by the Company.

The net periodic benefits costs were valued with a measurement date of January 1 for each year and consisted of the following components (in millions of dollars):
For the Years Ended December 31,
202120202019
SG&A
Service cost$5 $5 $4 
Other (income) expense
Interest cost3 6 7 
Expected return on assets(8)(8)(12)
Amortization of prior service credit(9)(10)(10)
Amortization of unrecognized gains(8)(5)(4)
Net periodic (benefits) costs$(17)$(12)$(15)

Reconciliations of the beginning and ending balances of the postretirement benefit asset (obligation), which is calculated as of December 31 measurement date, the fair value of plan assets available for benefits and the funded status of the benefit asset (obligation) follow (in millions of dollars):
20212020
Benefit obligation at beginning of year$167 $200 
Service cost
5 5 
Interest cost
3 6 
Plan participants' contributions
3 3 
Actuarial (gains)/losses(14)(38)
Benefits paid
(11)(9)
Benefit obligation at end of year$153 $167 
Plan assets available for benefits at beginning of year$206 $198 
Actual returns on plan assets9 14 
Plan participants' contributions
3 3 
Benefits paid
(11)(9)
Plan assets available for benefits at end of year207 206 
Noncurrent postretirement benefit asset (obligation)$54 $39 

The amounts recognized in AOCE consisted of the following (in millions of dollars):
As of December 31,
20212020
Prior service credit$42 $51 
Unrecognized gains90 83 
Deferred tax (liability)(33)(33)
Net accumulated gains
$99 $101 

The Company has elected to amortize the amount of net unrecognized gains over a period equal to the average remaining service period for active plan participants expected to retire and receive benefits of approximately 10.5 years for 2021.
The postretirement benefit obligation was determined by applying the terms of the plan and actuarial models. These models include various actuarial assumptions, including discount rates, long-term rates of return on plan assets, healthcare cost trend rate and cost-sharing between the Company and the retirees. The Company evaluates its actuarial assumptions on an annual basis and considers changes in these long-term factors based upon market conditions and historical experience. The actuarial gains recognized during the plan year are primarily related to changes in assumptions related to certain retiree coverage elections, health reimbursement arrangement (HRA) subsidy and changes to the discount rate.

The following assumptions were used to determine net periodic benefit costs at January 1 of each year:
For the Years Ended December 31,
202120202019
Discount rate2.17 %3.01 %4.08 %
Long-term rate of return on plan assets – net of tax4.04 %4.04 %7.13 %
Initial healthcare cost trend rate
Pre age 655.81 %6.06 %6.31 %
Post age 65NANANA
Catastrophic drug benefitNANANA
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached202620262026
HRA credit inflation index for grandfathered retirees— %2.50 %2.50 %

The following assumptions were used to determine benefit obligations at December 31:
202120202019
Discount rate2.57 %2.17 %3.01 %
Expected long-term rate of return on plan assets – net of tax4.04 %4.04 %4.04 %
Initial healthcare cost trend rate
Pre age 656.50 %5.81 %6.06 %
Post age 65NANANA
Catastrophic drug benefitNANANA
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached203020262026
HRA credit inflation index for grandfathered retirees— %— %2.50 %

The discount rate assumptions reflect the rates available on high-quality fixed-income debt instruments as of December 31, the measurement date of each year. These rates have been selected due to their similarity to the duration of the projected cash flows of the postretirement healthcare benefit plan. As of December 31, 2021, the Company increased the discount rate from 2.17% to 2.57% to reflect the increase in the market interest rates at December 31, 2021. 

The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates. As of December 31, 2021, the initial healthcare cost trend rate was 6.50% for pre age 65. The healthcare costs trend rates decline each year until reaching the ultimate trend rate of 4.50%. The plan amendment adopted in 2017 moves all post age 65 Medicare eligible retirees to an exchange and provides a subsidy to those retirees to purchase insurance. The amount of the subsidy is based on years of service for grandfathered team members.
The Company has established a Group Benefit Trust (Trust) to fund the plan obligations and process benefit payments. In 2019, the Company liquidated previously held index funds and temporarily invested all assets of the Trust in money market funds. In 2020, the Company transitioned the Trust assets from money market funds into a liability-driven investment solution which enhances the Trust's after-tax returns and de-risks the Company's exposure by more closely match-funding the underlying liability. This investment strategy reflects the long-term nature of the plan obligation and seeks to reach a balanced allocation between Fixed Income securities and Equities of 65% and 35%, respectively. The plan's assets are stated at fair value, which represents the net asset value of shares held by the plan in the registered investment companies at the quoted market prices (Level 1 input) or at significant other observable inputs (Level 2 input).

The plan assets available for benefits are net of Trust liabilities, primarily related to deferred income taxes and taxes payable at December 31 (in millions of dollars):
20212020
Asset Class:
 Level 1 Inputs:
Mutual Funds:
   Funds – Municipal/Provincial Bonds$12 $13 
   Funds – Corporate Bonds Fund5 5 
Federal Money Market Fund4 11 
 Level 2 Inputs:
Fixed Income:
  Corporate Bonds89 102 
  Government/Municipal Bonds14 8 
Equity Funds85 66 
 Plan Assets209 205 
 Less: trust assets/(liabilities)(2)1 
 Plan assets available for benefits$207 $206 

Consistent with the new investment strategy, the after-tax expected long-term rates of return on plan assets of 4.04% at December 31, 2021 is based on the historical average of long-term rates of return and an estimated tax rate. The required use of an expected long-term rate of return on plan assets may result in recognition of income that is greater or lower than the actual return on plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns and, therefore, result in a pattern of income recognition that more closely matches the pattern of the services provided by the team members.

The Company's investment policies include periodic reviews by management and trustees at least annually concerning: (1) the allocation of assets among various asset classes (e.g., domestic stocks, international stocks, short-term bonds, long-term bonds, etc.); (2) the investment performance of the assets, including performance comparisons with appropriate benchmarks; (3) investment guidelines and other matters of investment policy and (4) the hiring, dismissal or retention of investment managers.

The Company forecasts the following benefit payments related to postretirement (which include a projection for expected future team member service) for the next ten years (in millions of dollars):
YearEstimated Gross Benefit Payments
2022$8 
20239 
20249 
202510 
202610 
2027-203146 
Total$92 
v3.22.0.1
LEASES
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
LEASES LEASES
The Company leases certain properties and buildings (including branches, warehouses, DCs and office space) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists mainly of operating leases that expire at various dates through 2036.

Information related to operating leases is as follows (in millions of dollars):
As of December 31,
20212020
ROU Assets
Operating lease right-of-use$393 $210 
Operating lease liabilities
Operating lease liability66 57 
Long-term operating lease liability334 162 
Total operating lease liabilities$400 $219 

During the first quarter of 2020, the Company recorded impairment charges in SG&A in connection with the impairment of Fabory’s ROU assets for approximately $20 million. The Company divested Fabory during the second quarter of 2020.
As of December 31,
20212020
Weighted average remaining lease term7 years5 years
Weighted average incremental borrowing rate0.81 %1.95 %
Cash paid for operating leases$68 $69 
ROU assets obtained in exchange for operating lease obligations$244 $74 

Rent expense was $74 million for 2021 and $76 million for 2020 and 2019. These amounts are net of sublease income of $2 million for 2021 and 2020 and $3 million for 2019.

Remaining maturity of existing lease liabilities as of December 31, 2021 are as follows (in millions of dollars):
YearOperating Leases
2022$72 
202369 
202453 
202544 
202637 
Thereafter140 
Total lease payments
415 
Less interest
(15)
Present value of lease liabilities
$400 

As of December 31, 2021 and 2020, the Company's finance leases and service contracts with lease arrangements were not material. Finance leases are reported in Property, buildings and equipment, net, and as a finance lease liability in Accrued Expenses and Other non-current liabilities, respectively.

As of December 31, 2021, the Company's future lease obligations that have not yet commenced were $18 million.
v3.22.0.1
STOCK INCENTIVE PLANS
 12 Months Ended
Dec. 31, 2021
STOCK INCENTIVE PLANS [Abstract]  
STOCK INCENTIVE PLANS STOCK INCENTIVE PLANS
The Company maintains stock incentive plans under which the Company may grant a variety of incentive awards to team members and executives, which include restricted stock units (RSUs), performance shares and deferred stock units. As of December 31, 2021, there were 2.1 million shares available for grant under the plans. When awards are exercised or settled, shares of the Company’s treasury stock are issued.

Pretax stock-based compensation expense included in SG&A was $42 million, $46 million, and $40 million in 2021, 2020 and 2019, respectively, and was primarily comprised of RSUs. Related income tax benefits recognized in earnings were $21 million, $16 million, and $12 million in 2021, 2020 and 2019, respectively.

Restricted Stock Units
The Company awards RSUs to certain team members and executives. RSUs vest generally over periods from one to seven years from issuance. RSU expense for the years ended December 31, 2021, 2020 and 2019 was approximately $30 million, $32 million and $27 million, respectively.

The following table summarizes RSU activity (in millions, except for share and per share amounts):
202120202019
SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share
Beginning nonvested units317,414 $259.67 326,124 $259.88 343,814 $245.38 
    Issued105,866 $406.17 140,815 $252.11 96,823 $299.25 
    Canceled(36,134)$274.74 (26,254)$257.56 (36,224)$253.22 
    Vested(184,825)$276.34 (123,271)$252.05 (78,289)$247.96 
Ending nonvested units202,321 $318.40 317,414 $259.67 326,124 $259.88 
Fair value of shares vested
$51 $31 $19 

At December 31, 2021, there was $46 million of total unrecognized compensation expense related to nonvested RSUs that the Company expects to recognize over a weighted average period of 2.1 years.
v3.22.0.1
CAPITAL STOCK
 12 Months Ended
Dec. 31, 2021
CAPITAL STOCK [Abstract]  
CAPITAL STOCK CAPITAL STOCK
The Company had no shares of preferred stock outstanding as of December 31, 2021 and 2020. The activity related to outstanding common stock and common stock held in treasury was as follows:
202120202019
Outstanding Common StockTreasury StockOutstanding Common StockTreasury StockOutstanding Common StockTreasury Stock
Balance at beginning of period52,524,391 57,134,828 53,687,528 55,971,691 55,862,360 53,796,859 
Exercise of stock options188,444 (188,444)311,374 (311,374)232,052 (232,052)
Settlement of restricted stock units – net of 61,377, 41,019, and 26,107 shares retained, respectively
127,969 (127,969)82,241 (82,241)52,182 (52,182)
Settlement of performance share units – net of 9,746, 16,830, and 6,737 shares retained, respectively
12,507 (12,507)28,098 (28,098)14,027 (14,027)
Purchase of treasury shares(1,633,106)1,633,106 (1,584,850)1,584,850 (2,473,093)2,473,093 
Balance at end of period51,220,205 58,439,014 52,524,391 57,134,828 53,687,528 55,971,691 
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE)
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE)
The components of AOCE consisted of the following (in millions of dollars):
Foreign Currency Translation and OtherDefined Postretirement Benefit PlanOther Employment-related Benefit PlansTotalForeign Currency Translation Attributable to Noncontrolling InterestsAOCE Attributable to W.W. Grainger, Inc.
Balance at January 1, 2019 – net of tax$(264)$82 $(5)$(187)$(16)$(171)
Other comprehensive earnings (loss) before reclassifications – net of tax25 8 (3)30 3 27 
Amounts reclassified to Net earnings1 (11)— (10)— (10)
Net current period activity$26 $(3)$(3)$20 $3 $17 
Balance at December 31, 2019 – net of tax$(238)$79 $(8)$(167)$(13)$(154)
Other comprehensive earnings (loss) before reclassifications – net of tax36 33 — 69 12 57 
Amounts reclassified to Net earnings47 (11)— 36 — 36 
Net current period activity$83 $22 $— $105 $12 $93 
Balance at December 31, 2020 – net of tax $(155)$101 $(8)$(62)$(1)$(61)
Other comprehensive earnings (loss) before reclassifications – net of tax(64)12 2 (50)(29)(21)
Amounts reclassified to Net earnings— (14)— (14)— (14)
Net current period activity(64)(2)2 (64)(29)(35)
Balance at December 31, 2021 – net of tax$(219)$99 $(6)$(126)$(30)$(96)
v3.22.0.1
DERIVATIVE INSTRUMENTS
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
The Company maintains various agreements with bank counterparties that permit the Company to enter into "over-the-counter" derivative instrument agreements to manage its risk associated with interest rates and foreign currency fluctuations. In February 2020, the Company entered into certain derivative instrument agreements to manage its risk associated with interest rates of its 1.85% Notes and foreign currency fluctuations in connection with its foreign currency-denominated intercompany borrowings. The Company did not enter into these agreements for trading or speculative purposes.

Fair Value Hedges
The Company uses fair value hedges primarily to hedge a portion of its fixed-rate long-term debt via interest rate swaps. Changes in the fair value of the interest rate swaps, along with the gain or loss on the hedged item, are recorded in earnings under the same line item, Interest expense, net. The notional amount of the Company’s outstanding fair value hedges as of December 31, 2021 and 2020 was $500 million.

Cash Flow Hedges
The Company uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from foreign currency-denominated intercompany borrowings via cross-currency swaps. Gains or losses on the cross-currency swaps are reported as a component of AOCE and reclassified into earnings in the same period during which the hedged transaction affects earnings. The notional amount of the Company’s outstanding cash flow hedges as of December 31, 2021 and 2020 was approximately $34 million.
The effect of the Company's fair value and cash flow hedges on the Consolidated Statement of Earnings for the twelve months ended December 31, 2021 and 2020 is as follows (in millions of dollars):
For the Years Ended December 31,
20212020
Total gains or (losses) recognized in earnings by line item in which the effects of fair value and cash flow hedges are recorded:
Interest expense – net
  Fair value hedge:
Interest rate contracts:
      Hedged item$20 $(21)
      Derivatives designated as hedging instrument$(20)$21 
Other – net
  Cash flow hedge:
Foreign exchange contracts:
      Hedged item$— $2 
      Amount of gains (losses) reclassified from
         AOCE into earnings:$— $(2)

The effect of the Company’s cash flow hedges on AOCE for the twelve months ended December 31, 2021 and 2020 was not material.

The fair value and carrying amounts of outstanding derivative instruments in the Consolidated Balance Sheets as of December 31, 2021 and 2020 was as follows (in millions of dollars):
As of December 31,
20212020
Balance Sheet ClassificationFair Value and Carrying Amounts
Cross-currency swapOther non-current liabilities$2 $2 
Interest rate swapsOther assets$1 $21 

The carrying amount of the liability hedged by the interest rate swaps (Long-term debt), including the cumulative amount of fair value hedging adjustments, as of December 31, 2021 and 2020 amounted to $501 million and $521 million, respectively.
The estimated fair values of the Company's derivative instruments were based on quoted market forward prices, which are classified as Level 2 inputs within the fair value hierarchy and reflect the present value of the amount that the Company would pay for contracts involving the same notional amounts and maturity dates. No adjustments were required during the current period to reflect the counterparty’s credit risk and/or the Company’s own nonperformance risk.
v3.22.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Earnings (losses) before income taxes by geographical area consisted of the following (in millions of dollars):
For the Years Ended December 31,
202120202019
U.S.$1,267 $1,015 $1,226 
Foreign218 (68)(17)
Total
$1,485 $947 $1,209 
Income tax expense consisted of the following (in millions of dollars):
For the Years Ended December 31,
202120202019
Current income tax expense:
U.S. Federal
$221 $119 $199 
U.S. State
46 28 44 
Foreign
81 65 58 
Total current
348 212 301 
Deferred income tax expense (benefit)23 (20)13 
Total income tax expense$371 $192 $314 

The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2021 and 2020 were as follows (in millions of dollars):
As of December 31,
20212020
Deferred tax assets:
Inventory$— $14 
Accrued expenses
152 93 
Foreign loss carryforwards59 45 
Accrued employment-related benefits
50 37 
Tax credit carryforward
27 25 
Other
17 8 
Deferred tax assets
305 222 
           Less valuation allowance(70)(53)
Deferred tax assets – net of valuation allowance$235 $169 
Deferred tax liabilities:
Property, buildings, equipment and other capital assets(217)(145)
Intangibles
(67)(68)
Inventory(9)— 
Other
(8)(10)
Deferred tax liabilities
(301)(223)
Net deferred tax liability$(66)$(54)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets
$14 $14 
Noncurrent liabilities (foreign)(80)(68)
Net deferred tax liability$(66)$(54)
At December 31, 2021 the Company had $238 million of gross loss carryforwards related to foreign operations. Some of the loss carryforwards may expire at various dates through 2041. The Company has recorded a valuation allowance, which represents a provision for uncertainty as to the realization of the tax benefits of these carryforwards and deferred tax assets that may not be realized.

The Company's valuation allowance changed as follows (in millions of dollars):
For the Years Ended December 31,
20212020
Balance at beginning of period$(53)$(72)
Increases primarily related to foreign NOLs(8)(16)
Releases primarily related to foreign NOLs2 — 
Foreign subsidiaries tax impacts due to divestiture2 39 
Tax rate changes(7)(1)
Increase related to U.S. foreign tax credits(3)(2)
Other changes – net(3)(1)
Balance at end of period$(70)$(53)

A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in millions of dollars):
For the Years Ended December 31,
202120202019
Federal income tax$312 $199 $254 
State income taxes – net of federal income tax benefit41 33 36 
Foreign rate difference26 23 25 
Foreign subsidiaries tax impacts due to divestiture— (61)— 
Change in valuation allowance7 16 11 
Other – net(15)(18)(12)
Income tax expense$371 $192 $314 
Effective tax rate25.0 %20.3 %26.0 %

The changes to the Company's effective tax rate for the year ended December 31, 2021 and 2020 was primarily driven by the absence of tax losses in the Company's investment in Fabory due to the impairment and internal reorganization of the Company's holdings of Fabory in the first quarter of 2020. The Company divested Fabory during the second quarter of 2020.

Foreign Undistributed Earnings
Estimated gross undistributed earnings of foreign subsidiaries at December 31, 2021, amounted to $544 million. The Company considers these undistributed earnings permanently reinvested in its foreign operations and is not recording a deferred tax liability for any foreign withholding taxes on such amounts. If at some future date the Company ceases to be permanently reinvested in its foreign subsidiaries, the Company may be subject to foreign withholding and other taxes on these undistributed earnings and may need to record a deferred tax liability for any outside basis difference in its investments in its foreign subsidiaries.
Tax Uncertainties
The Company recognizes in the financial statements a provision for tax uncertainties, resulting from application of complex tax regulations in multiple tax jurisdictions.

The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):
For the Years Ended December 31,
202120202019
Balance at beginning of year$39 $28 $37 
Additions for tax positions related to the current year3 23 3 
Additions for tax positions of prior years— — 1 
Reductions for tax positions of prior years(1)(2)(1)
Reductions due to statute lapse(3)(10)(10)
Settlements, audit payments, refunds – net— — (2)
Balance at end of year$38 $39 $28 

The Company classifies the liability for tax uncertainties in deferred income taxes and tax uncertainties. Included in
this amount is $4 million at December 31, 2021 and 2020, of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Any changes in the timing of deductibility of these items would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authorities to an earlier period. Excluding the timing items, the remaining amounts would affect the annual tax rate. In 2021, the changes to tax positions were primarily related to the impact of expiring statutes and current year state and local reserves. In 2020, the changes to tax positions were related generally to the tax losses on the Company’s investment in Fabory along with the impact of expiring statutes, the conclusion of audits and audit settlements. Estimated interest and penalties were not material.
The Company regularly undergoes an examination of its federal income tax returns by the Internal Revenue Service. The statute of limitations expired for the Company's 2017 federal tax return while tax years 2018 through 2020 are open. The Company is also subject to audit by state, local and foreign taxing authorities. Tax years 2012-2020 remain subject to state and local audits and 2016-2020 remain subject to foreign audits. The amount of liability associated with the Company's tax uncertainties may change within the next 12 months due to the pending audit activity, expiring statutes or tax payments. A reasonable estimate of such change cannot be made.
v3.22.0.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Effective January 1, 2021, Grainger's two reportable segments are High-Touch Solutions N.A. and Endless Assortment. The remaining international high-touch solutions businesses, which includes the Cromwell business, as well as the Fabory and China businesses in the periods prior to their divestitures in the second and third quarter of 2020, respectively, are classified as Other to reconcile to consolidated results. These businesses individually and in the aggregate do not meet the criteria of a reportable segment.

Also, effective January 1, 2021, the Company updated its reporting and accounting policies for corporate cost and intersegment sales transactions. Corporate costs are allocated to each reportable segment based on benefits received. Additionally, intersegment sales transactions, which are sales between Grainger businesses in separate reportable segments, are eliminated within the segment to present only the impact of sales to external customers. Service fees for intersegment sales from the High-Touch Solutions N.A. segment to the Endless Assortment segment are included in SG&A.

Following is a summary of segment results (in millions of dollars):
2021
2020 (1)
2019 (1)
Net salesOperating earnings (losses)Net salesOperating earnings (losses)Net salesOperating earnings (losses)
High-Touch Solutions N.A.$10,186 1,334 9,221 1,182 9,036 1,278 
Endless Assortment2,576 232 2,178 166 1,836 122 
Other260 (19)398 (329)614 (138)
Total Company$13,022 $1,547 $11,797 $1,019 $11,486 $1,262 
(1) Effective January 1, 2021, segment results for the years ended December 31, 2020 and 2019 were recast to reflect the Company's re-segmentation.
2021
2020 (1)
2019 (1)
Depreciation and amortization:
High-Touch Solutions N.A.148 $143 $186 
Endless Assortment22 17 14 
Other3 9 10 
Total consolidated depreciation and amortization$173 $169 $210 
(1) Effective January 1, 2021, segment results for the years ended December 31, 2020 and 2019 were recast to reflect the Company's re-segmentation.

Depreciation and amortization presented above includes depreciation of long-lived assets and amortization of capitalized software and ROU assets. Long-lived assets consist of property, buildings and equipment.

Following is revenue by geographic location (in millions of dollars):
202120202019
Revenue by geographic location:
United States10,236 9,200 8,865 
Japan1,705 1,436 1,188 
Canada560 494 539 
Other foreign countries521 667 894 
$13,022 $11,797 $11,486 
The Company is a broad line distributor of MRO products and services. Products are regularly added and removed from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed, and the dynamic nature of the inventory offered, including the evolving list of products stocked and additional products available online but not stocked. Assets for reportable segments are not disclosed as such information is not regularly reviewed by the Company's Chief Operating Decision Maker.
v3.22.0.1
CONTINGENCIES AND LEGAL MATTERS
 12 Months Ended
Dec. 31, 2021
CONTINGENCIES AND LEGAL MATTERS [Abstract]  
CONTINGENCIES AND LEGAL MATTERS CONTINGENCIES AND LEGAL MATTERS
From time to time the Company is involved in various legal and administrative proceedings, including claims related to product liability, safety or compliance; privacy and cybersecurity matters; negligence; contract disputes; environmental issues; unclaimed property; wage and hour laws; intellectual property; advertising and marketing; consumer protection; pricing (including disaster or emergency declaration pricing statutes); employment practices; regulatory compliance, including as to trade and export matters; anti-bribery and corruption; and other matters and actions brought by employees, consumers, competitors, suppliers, customers, governmental entities and other third parties.

As previously disclosed, beginning in the fourth quarter of 2019, Grainger, KMCO, LLC (KMCO) and other defendants have been named in several product liability-related lawsuits in the Harris County, Texas District Court relating to an explosion at a KMCO chemical refinery located in Crosby, Harris County, Texas on April 2, 2019. The complaints in which Grainger has been named, which to date encompass 16 lawsuits and approximately 186 plaintiffs, seek recovery of compensatory and other damages and relief in relation to personal injury, including one death and various other alleged injuries. On May 8, 2020, KMCO filed a voluntary petition in the United States Bankruptcy Court for the Southern District of Texas for relief under Chapter 7 of Title 11 of the United States Bankruptcy Court in the case KMCO, LLC, No. 20-60028. As a result of the Chapter 7 proceedings, the claims against KMCO in the Harris County lawsuits were stayed. Effective January 1, 2021, the Bankruptcy Court lifted the stay with respect to KMCO.

On December 16, 2020, KMCO, the trustee of its estate and ORG Chemical Holdings, LLC, KMCO’s parent company (ORG), filed a property damage lawsuit relating to the KMCO chemical refinery incident against Grainger and another defendant in the Harris County, Texas District Court, which seeks unspecified damages (the KMCO Case). On April 1, 2021, 24 individual plaintiffs filed a petition in intervention seeking to be added as plaintiffs in the KMCO Case and seeking unspecified damages. On March 24, 2021, Indian Harbor Insurance Company, together with other insurance companies and underwriters, filed a property damage lawsuit relating to the KMCO chemical refinery incident against Grainger and another defendant in the Harris County, Texas District Court, seeking reimbursement of insurance payments made to or on behalf of KMCO and ORG, the insured parties under their respective policies, and other damages.

Grainger is investigating each of the various claims against the Company relating to the KMCO chemical refinery incident and intends to contest these matters vigorously.

Also, as a government contractor selling to federal, state and local governmental entities, the Company may be subject to governmental or regulatory inquiries or audits or other proceedings, including those related to contract administration, pricing and product compliance.

From time to time, the Company has also been named, along with numerous other nonaffiliated companies, as defendant in litigation in various states involving asbestos and/or silica. These lawsuits typically assert claims of personal injury arising from alleged exposure to asbestos and/or silica as a consequence of products manufactured by third parties purportedly distributed by the Company. While several lawsuits have been dismissed in the past based on the lack of product identification, if a specific product distributed by the Company is identified in any pending or future lawsuits, the Company will seek to exercise indemnification remedies against the product manufacturer to the extent available. In addition, the Company believes that a substantial number of these claims are covered by insurance. The Company has entered into agreements with its major insurance carriers relating to the scope, coverage and the costs of defense, of lawsuits involving claims of exposure to asbestos. The Company believes it has strong legal and factual defenses and intends to continue defending itself vigorously in these lawsuits.

While the Company is unable to predict the outcome of any of these proceedings and other matters, it believes that their ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on the Company’s consolidated financial condition or results of operations.
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
PRINCIPLES OF CONSOLIDATION
Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries over which the Company exercises control. All significant intercompany transactions are eliminated from the Consolidated Financial Statements. The Company has a controlling ownership interest in MonotaRO, the endless assortment business in Japan, with the residual representing the noncontrolling interest.

The Company reports MonotaRO on a one-month calendar lag allowing for the timely preparation of financial statements. This one-month reporting lag is with the exception of significant transactions or events that occur during the intervening period. During December 2021, MonotaRO entered into a lease for a new Distribution Center (DC), which the Company deemed significant and included in the Consolidated Financial Statements for the year ended December 31, 2021.

Reclassifications
Certain reclassifications have been made to prior year amounts in the Company's Consolidated Balance Sheets to conform with the current year presentation. Reclassifications were made to separately present operating lease right-of-use assets and current and long-term lease obligations that were previously presented as Other assets, Accrued expenses and Other non-current liabilities, respectively. The reclassifications had no effect on net earnings or cash flows for the years ended December 31, 2021, 2020, or 2019.
USE OF ESTIMATES
Use of Estimates
The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions affecting reported amounts in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.
FOREIGN CURRENCY TRANSLATION Foreign Currency TranslationThe U.S. dollar is the Company's reporting currency for all periods presented. The financial statements of the Company’s foreign operating subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of the Company’s foreign operating subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at average rates in effect during the period. Translation gains or losses are recorded as a separate component of other comprehensive earnings (losses).
REVENUE RECOGNITION
Revenue Recognition
The Company recognizes revenue when a sales arrangement with a customer exists (e.g., contract, purchase orders, others), the transaction price is fixed or determinable and the Company has satisfied its performance obligation per the sales arrangement.

The majority of Company revenue originates from contracts with a single performance obligation to deliver products, whereby performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. Some Company contracts contain a combination of product sales and services, which are distinct and accounted for as separate performance obligations and are satisfied when the services are rendered. Total service revenue is not material and accounted for approximately 1% of the Company's revenue for the years ended December 31, 2021, 2020 and 2019, respectively.
The Company’s revenue is measured at the determinable transaction price, net of any variable considerations granted to customers and any taxes collected from customers and subsequently remitted to governmental authorities. Variable considerations include rights to return products and sales incentives, which primarily consist of volume rebates. These variable considerations are estimated throughout the year based on various factors, including contract terms, historical experience and performance levels. Total accrued sales returns were approximately $34 million and $31 million as of December 31, 2021 and 2020, respectively, and are reported as a reduction of Accounts receivable, net. Total accrued sales incentives were approximately $73 million and $58 million as of December 31, 2021 and 2020, respectively, and are reported as part of Accrued expenses.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of December 31, 2021 and 2020.
COST OF GOODS SOLD
Cost of Goods Sold (COGS)
COGS, exclusive of depreciation and amortization, includes the purchase cost of goods sold net of vendor considerations, in-bound shipping costs, outbound shipping and handling costs and service costs. The Company receives vendor considerations, such as rebates to promote their products, which are generally recorded as a reduction to COGS. Rebates earned from vendors that are based on product purchases are capitalized into inventory and rebates earned based on products sold are credited directly to COGS.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, General and Administrative Expenses (SG&A)
Company SG&A is primarily comprised of depreciation and amortization, compensation and benefit costs, indirect purchasing, supply chain and branch operations, technology, leases, restructuring, impairments, advertising and selling expenses, as well as other types of general and administrative costs.
ADVERTISING AdvertisingAdvertising costs, which include online marketing, are generally expensed in the year the related advertisement is first presented or when incurred. Total advertising expense was $402 million, $319 million and $316 million for 2021, 2020 and 2019, respectively.
STOCK INCENTIVE PLANS Stock Incentive PlansThe Company measures all share-based payments using fair-value-based methods and records compensation expense on a straight-line basis over the vesting periods, net of estimated forfeitures.
INCOME TAXES
Income Taxes
The Company recognizes the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. Also, the Company evaluates deferred income taxes to determine if valuation allowances are required using a “more likely than not” standard. This assessment considers the nature, frequency and amount of book and taxable income and losses, the duration of statutory carryback and forward periods, future reversals of existing taxable temporary differences and tax planning strategies, among other matters.

The Company recognizes tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that the tax positions will be sustained on examination by the tax authority. The Company recognizes interest expense and penalties to its tax uncertainties in the provision for income taxes.
OTHER COMPREHENSIVE EARNINGS (LOSSES) Other Comprehensive Earnings (Losses)The Company's Other comprehensive earnings (losses) include foreign currency translation adjustments and unrecognized gains (losses) on postretirement and other employment-related benefit plans. Accumulated other comprehensive earnings (losses) (AOCE) are presented separately as part of shareholders' equity.
CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents
The Company considers investments in highly liquid debt instruments, purchased with an original maturity of 90 days or less, to be cash equivalents.
CONCENTRATION OF CREDIT RISK
Concentration of Credit Risk
The Company places temporary cash investments with institutions of high credit quality and, by policy, limits the amount of credit exposure to any one institution. Also, the Company has a broad customer base representing many diverse industries across North America, Japan and U.K. Consequently, no significant concentration of credit risk is considered to exist.
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
Accounts Receivable and Allowance for Credit Losses
The Company’s accounts receivable arises primarily from sales on credit to customers and are stated at their estimated net realizable value. The Company establishes allowances for credit losses on customer accounts that are potentially uncollectible. These allowances are determined based on several factors, including the age of the receivables, historical collection trends and economic conditions that may have an impact on a specific industry, group of customers or a specific customer.

The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators for industry groups, customer classes or individual customers.
INVENTORIES
Inventories
Company inventories primarily consist of merchandise purchased for resale, and they are valued at the lower of cost or net realizable value. The Company uses the last-in, first-out (LIFO) method to account for approximately 75% of total inventory and the first-in, first-out (FIFO) method for the remaining inventory. The Company regularly reviews inventory to evaluate continued demand and records excess and obsolete provisions representing the difference between excess and obsolete inventories and net realizable value. Estimated net realizable value considers various variables, including product demand, aging and shelf life, market conditions, and liquidation or disposition history and values.

If FIFO had been used for all of the Company’s inventories, they would have been $510 million and $446 million higher than reported at December 31, 2021 and December 31, 2020, respectively. Concurrently, net earnings would have increased by $49 million, $15 million and $24 million for the years ended December 31, 2021, 2020 and 2019, respectively.
PROPERTY, BUILDINGS AND EQUIPMENT
Property, Buildings and Equipment
Property, buildings and equipment are stated at cost, less accumulated depreciation. Depreciation is computed over the estimated useful lives of the asset classes using the straight-line method. Useful lives for buildings, structures and improvements range from 10 to 50 years and furniture, fixtures, machinery and equipment from three to 15 years. Amounts expended for maintenance and repairs are charged to expense as incurred.
Historically, Grainger had depreciated certain property, buildings and equipment using both the declining balance and sum-of-the-years’ digits methods as well as certain buildings over estimated useful lives of approximately thirty years. In accordance with its policy, the Company periodically reviews information impacting the pattern of consumption for its capital assets and useful lives to ensure that estimates of depreciation expenses are appropriate. The Company’s investment in its supply chain infrastructure and technology triggered the review of these patterns of consumption. Pursuant to the review and effective January 1, 2020, the method of estimating depreciation for certain assets was changed to the straight-line method and updated useful lives to forty and fifty years. The Company determined that these changes in depreciation method and useful lives were considered a change in accounting estimate effected by a change in accounting principle, and as such have been accounted for on a prospective basis. Grainger believes the changes to the straight-line method and useful lives are appropriate estimations of the Company's current patterns of economic consumption of its capital assets and appropriately match current revenues and costs over updated estimates of the assets' useful lives. The effect of these changes resulted in a decrease of $34 million to depreciation expense for the year ended December 2020.

Depreciation expense was $123 million, $116 million and $150 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company capitalized interest costs of $1 million, $4 million and $9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
LONG-LIVED ASSETS
Long-Lived Assets
The carrying value of long-lived assets, primarily property, buildings and equipment and amortizable intangibles, is evaluated whenever events or changes in circumstances indicate that the carrying value of the asset group may be impaired. An impairment loss is recognized when estimated undiscounted future cash flows resulting from use of the asset, including disposition, are less than their carrying value. Impairment is measured as the amount by which the asset's carrying amount exceeds the fair value.
LEASES
Leases
The Company leases certain properties and buildings (including branches, warehouses, DCs and office space) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company determines if an arrangement contains a lease at inception. Leases with an initial term of more than 12 months are recorded on the balance sheet as right-of-use (ROU) assets representing the right to use the underlying asset for the lease term and the corresponding current and long-term lease liabilities representing the obligation to make lease payments arising from the lease.

ROU assets and lease liabilities are recognized at the lease commencement or possession date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate, the ROU asset and the lease liability are re-evaluated upon a lease modification.

Certain lease agreements include variable lease payments that primarily include payments for non-lease components including pass-through operating expenses such as certain maintenance costs and utilities, and payments for non-components such as real estate taxes and insurance. Lease agreements with fixed lease and non-lease components are generally accounted for as a single lease component for all underlying classes of assets. Certain of the Company’s lease arrangements contain renewal provisions from one to 30 years, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in SG&A.
GOODWILL AND OTHER INTANGIBLES ASSETS
Goodwill and Other Intangible Assets
In a business acquisition, the Company recognizes goodwill as the excess purchase price of an acquired reporting unit over the net amount assigned to assets acquired including intangible assets and liabilities assumed. Acquired intangibles include both assets with indefinite lives and assets that are subject to amortization, which are amortized straight-line over their estimated useful lives.
The Company tests goodwill and indefinite-lived intangibles for impairment annually during the fourth quarter and more frequently if impairment indicators exist. The Company performs qualitative assessments of significant events and circumstances, such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors, including the current global outbreak of the COVID-19 pandemic to determine the existence of impairment indicators and assess if it is more likely than not that the fair value of the reporting unit or indefinite-lived intangible asset is less than its carrying value that would necessitate a quantitative impairment test. In the quantitative test, Grainger compares the carrying value of the reporting unit or an indefinite-lived intangible asset with its fair value. Any excess of the carrying value over fair value is recorded as an impairment charge, presented as part of SG&A.

The fair value of reporting units is calculated primarily using the discounted cash flow method and utilizing value indicators from a market approach to evaluate the reasonableness of the resulting fair values. Estimates of market-participant risk-adjusted weighted average cost of capital are used as a basis for determining the discount rates to apply to the reporting units’ future expected cash flows and terminal value.

The Company’s indefinite-lived intangibles are primarily trade names. The fair value of trade names is calculated primarily using the relief-from-royalty method, which estimates the expected royalty savings attributable to the ownership of the trade name asset. The key assumptions when valuing a trade name are the revenue base, the royalty rate, and the discount rate.
CAPITALIZED SOFTWARE Additionally, the Company capitalizes certain costs related to the purchase and development of internal-use software, which are presented as intangible assets. Amortization of capitalized software is on a straight-line basis over three or five years.
ACCOUNTING FOR DERIVATIVE INSTRUMENTS
Accounting for Derivative Instruments
The Company recognizes all derivative instruments as assets or liabilities in the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship.

To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction, type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Company uses statistical methods and qualitative comparisons of critical terms. The extent to which a derivative has been and is expected to continue to be, highly effective at offsetting changes in the fair value or cash flows of the hedged item is assessed and documented periodically. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. For those derivative instruments that are designated and qualify as hedging instruments, the Company classifies them as fair value hedges or cash flow hedges.
CONTINGENCIES
Contingencies
The Company accrues for costs relating to litigation claims and other contingent matters when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
NEW ACCOUNTING STANDARDS
New Accounting Standards
Accounting Pronouncements Recently Adopted
In October 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-10, Codification Improvements. These amendments improve consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the codification by amending and adding new headings, cross referencing to other guidance and refining or correcting terminology. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Consolidated Financial Statements.
In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), Clarifying the Interactions between Topic 321, Topic 323 and Topic 815. This ASU simplifies the understanding and application of the codification topics by eliminating inconsistencies and providing clarifications. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Consolidated Financial Statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intra-period tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Consolidated Financial Statements.

Accounting Pronouncements Recently Issued
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update provides increased transparency of government assistance including the disclosure of the types of assistance an entity receives, an entity's method of accounting for government assistance and the effect of the assistance on an entity's financial statements. The guidance is effective for annual periods beginning after December 15, 2021 and should be applied prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard and does not expect a material impact on the Financial Statements or related disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting as modified by subsequently issued ASU 2021-01. This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and generally can be applied prospectively to contract modifications made and hedging relationships entered or evaluated on or before December 31, 2022. The Company evaluated the impact of this ASU and it does not expect a material impact on the Consolidated Financial Statements.
v3.22.0.1
REVENUE (Tables)
 12 Months Ended
Dec. 31, 2021
REVENUE [Abstract]  
Disaggregation of Revenue
The following table presents the Company's percentage of revenue by reportable segment and by major customer industry:
 Twelve Months Ended December 31,
202120202019
 High-Touch Solutions N.A. Endless Assortment 
Total Company (2)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
Contractors9 %16 %10 %9 %15 %10 %10 %16 %10 %
Commercial9 15 10 8 15 9 10 15 11 
Government18 3 15 20 3 16 17 3 14 
Healthcare7 2 6 9 2 7 7 1 6 
Manufacturing30 29 30 29 29 30 31 31 31 
Retail/Wholesale10 10 10 9 10 9 8 10 8 
Transportation5 3 5 5 3 5 6 3 5 
Other (1)
12 22 14 11 23 14 11 21 15 
Total net sales100 % 100 % 100 %100 %100 %100 %100 %100 %100 %
Percent of Total Company Revenue78 %20 %100 %78 %18 %100 %79 %16 %100 %
(1) Other primarily includes revenue from industries and customers that are not material individually, including agriculture, mining, natural resources and resellers not aligned to a major industry segment.
(2) Total Company includes other businesses, which includes the Cromwell business, as well as the Fabory and China businesses in the periods prior to their divestitures in the second and third quarter of 2020, respectively. Other businesses account for approximately 2%, 4% and 5% of revenue for the twelve months ended December 31, 2021, 2020 and 2019, respectively.
v3.22.0.1
PROPERTY, BUILDINGS AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Buildings and Equipment
Property, buildings and equipment consisted of the following (in millions of dollars):
 As of
 December 31, 2021 December 31, 2020
Land$329  $329 
Building, structures and improvements1,431  1,330 
Furniture, fixtures, machinery and equipment1,567  1,878 
Property, buildings and equipment
$3,327  $3,537 
Less: Accumulated depreciation and amortization1,903  2,142 
Property, buildings and equipment, net
$1,424  $1,395 
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2021
GOODWILL AND OTHER INTANGIBLES [Abstract]  
Schedule of Goodwill The Company balances and changes in the carrying amount of Goodwill (net of cumulative goodwill impairments) by segment are as follows (in millions of dollars):
High-Touch Solutions N.A.Endless AssortmentOtherTotal
Balance at January 1, 2020$318 $52 $59 $429 
Acquisition— 15 — 15 
Impairment— — (58)(58)
Translation3 3 (1)5 
Balance at December 31, 2020321 70 — 391 
Translation— (7)— (7)
Balance at December 31, 2021$321 $63 $— $384 
Schedule of Finite-Lived Intangible Assets by Major Class
The balances and changes in intangible assets, net are as follows (in millions of dollars):
As of December 31,
20212020
Weighted average lifeGross carrying amountAccumulated amortization/ impairmentNet carrying amountGross carrying amountAccumulated amortization/impairmentNet carrying amount
Customer lists and relationships
11.8 years$221 $176 $45 $223 $171 $52 
Trademarks, trade names and other
14.1 years36 24 12 36 22 14 
Non-amortized trade names and other
Indefinite25 — 25 28 — 28 
Capitalized software4.4 years525 369 156 461 327 134 
Total intangible assets6.9 years$807 $569 $238 $748 $520 $228 
Schedule of Estimated Amortization Expense
Estimated amortization expense for future periods is as follows (in millions of dollars):
Year Expense
2022$54 
202341 
202431 
202524 
202619 
Thereafter44 
   Total$213 
v3.22.0.1
LONG-TERM DEBT (Tables)
 12 Months Ended
Dec. 31, 2021
Long-term Debt, Unclassified [Abstract]  
Schedule of Long-term Debt Instruments
Long-term debt obligations, including current maturities and debt issuance costs and discounts, net, consisted of the following (in millions of dollars):
As of December 31,
 20212020
Carrying Value
Fair Value (4)
Carrying Value
Fair Value (4)
4.60% senior notes due 2045 (1)
1,000 1,284 $1,000 $1,343 
3.75% senior notes due 2046 (1)
400 459 400 479 
4.20% senior notes due 2047 (1)
400 492 400 514 
1.85% senior notes due 2025 (2)
500 509 500 526 
Japanese Yen term loan (3)
78 78 87 87 
Other7 7 34 34 
Subtotal2,385 2,829 2,421 2,983 
Less current maturities— — (8)(8)
Debt issuance costs and discounts – net of amortization(23)(23)(24)(24)
Long-term debt (less current maturities)$2,362 $2,806 $2,389 $2,951 

(1) In the years 2015-2017, Grainger issued $1.8 billion in long-term debt (Senior Notes). Debt was issued as follows:
•In May 2017, $400 million payable in 30 years and carries a 4.20% interest rate, payable semiannually.
•In May 2016, $400 million payable in 30 years and carries a 3.75% interest rate, payable semiannually.
•In June 2015, $1 billion payable in 30 years and carries a 4.60% interest rate, payable semiannually.

The Company may redeem the Senior Notes in whole at any time or in part from time to time at a “make-whole” redemption price prior to their respective maturity dates. The redemption price is calculated by reference to the then-current yield on a U.S. treasury security with a maturity comparable to the remaining term of the Senior Notes plus 20-25 basis points, together with accrued and unpaid interest, if any, at the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the Senior Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. Within one year of the maturity date, the Company may redeem the Senior Notes in whole at any time or in part at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. At the time of issuance, costs and discounts of approximately $24 million representing underwriting fees and other expenses, were recorded as a contra-liability within Long-term debt and are being amortized to interest expense over the term of the Senior Notes.

(2) In February 2020, the Company issued $500 million of unsecured 1.85% Senior Notes (1.85% Notes) and used the proceeds to repay the British pound term loan, Euro term loan and the Canadian dollar revolving credit facility, and to fund general working capital needs. The 1.85% Notes mature in February 2025, they require no principal payments until the maturity date and interest is payable semi-annually on February 15 and August 15, beginning in August 2020. Prior to January 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at a “make-whole” redemption price. This redemption price is calculated by reference to the then-current yield on a U.S. Treasury security with a maturity comparable to the remaining term of the 1.85% Notes plus 10 basis points, together with accrued and unpaid interest, if any, at the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the 1.85% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. On or after January 15, 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. At the time of issuance, costs and discounts of approximately $5 million associated with the issuance of the 1.85% Notes, representing underwriting fees and other expenses, were recorded as a contra-liability within Long-term debt and are being amortized to interest expense, net over the term of the 1.85% Notes. In connection with the 1.85% Notes, in February 2020, the Company entered into derivative instrument agreements to manage its risks associated with interest rates on the 1.85% Notes.
The carrying value adjustments resulting from the interest rate swaps in both periods are presented within Other in the table above. For further discussion of the Company's hedge accounting policies and derivative instruments, see Notes 1 and 12.

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

(4) 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. The carrying value of other long-term debt approximates fair value due to their variable interest rates.
Schedule of Maturities of Long-term Debt
The scheduled aggregate principal payments required on the Company's indebtedness, based on the maturity dates defined within the debt arrangements, for the succeeding five years, excluding debt issuance costs and the impact of derivatives, are due as follows (in millions of dollars):
YearPayment Amount
2022$— 
202339 
202440 
2025500 
20265 
Thereafter1,800 
Total$2,384 
v3.22.0.1
EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2021
EMPLOYEE BENEFITS [Abstract]  
Schedule of Net Benefit Costs
The net periodic benefits costs were valued with a measurement date of January 1 for each year and consisted of the following components (in millions of dollars):
For the Years Ended December 31,
202120202019
SG&A
Service cost$5 $5 $4 
Other (income) expense
Interest cost3 6 7 
Expected return on assets(8)(8)(12)
Amortization of prior service credit(9)(10)(10)
Amortization of unrecognized gains(8)(5)(4)
Net periodic (benefits) costs$(17)$(12)$(15)
Schedule of Accumulated and Projected Benefit Obligations
Reconciliations of the beginning and ending balances of the postretirement benefit asset (obligation), which is calculated as of December 31 measurement date, the fair value of plan assets available for benefits and the funded status of the benefit asset (obligation) follow (in millions of dollars):
20212020
Benefit obligation at beginning of year$167 $200 
Service cost
5 5 
Interest cost
3 6 
Plan participants' contributions
3 3 
Actuarial (gains)/losses(14)(38)
Benefits paid
(11)(9)
Benefit obligation at end of year$153 $167 
Plan assets available for benefits at beginning of year$206 $198 
Actual returns on plan assets9 14 
Plan participants' contributions
3 3 
Benefits paid
(11)(9)
Plan assets available for benefits at end of year207 206 
Noncurrent postretirement benefit asset (obligation)$54 $39 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The amounts recognized in AOCE consisted of the following (in millions of dollars):
As of December 31,
20212020
Prior service credit$42 $51 
Unrecognized gains90 83 
Deferred tax (liability)(33)(33)
Net accumulated gains
$99 $101 
Schedule of Assumptions Used
The following assumptions were used to determine net periodic benefit costs at January 1 of each year:
For the Years Ended December 31,
202120202019
Discount rate2.17 %3.01 %4.08 %
Long-term rate of return on plan assets – net of tax4.04 %4.04 %7.13 %
Initial healthcare cost trend rate
Pre age 655.81 %6.06 %6.31 %
Post age 65NANANA
Catastrophic drug benefitNANANA
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached202620262026
HRA credit inflation index for grandfathered retirees— %2.50 %2.50 %

The following assumptions were used to determine benefit obligations at December 31:
202120202019
Discount rate2.57 %2.17 %3.01 %
Expected long-term rate of return on plan assets – net of tax4.04 %4.04 %4.04 %
Initial healthcare cost trend rate
Pre age 656.50 %5.81 %6.06 %
Post age 65NANANA
Catastrophic drug benefitNANANA
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached203020262026
HRA credit inflation index for grandfathered retirees— %— %2.50 %
Schedule of Allocation of Plan Assets
The plan assets available for benefits are net of Trust liabilities, primarily related to deferred income taxes and taxes payable at December 31 (in millions of dollars):
20212020
Asset Class:
 Level 1 Inputs:
Mutual Funds:
   Funds – Municipal/Provincial Bonds$12 $13 
   Funds – Corporate Bonds Fund5 5 
Federal Money Market Fund4 11 
 Level 2 Inputs:
Fixed Income:
  Corporate Bonds89 102 
  Government/Municipal Bonds14 8 
Equity Funds85 66 
 Plan Assets209 205 
 Less: trust assets/(liabilities)(2)1 
 Plan assets available for benefits$207 $206 
Schedule of Expected Benefit Payments
The Company forecasts the following benefit payments related to postretirement (which include a projection for expected future team member service) for the next ten years (in millions of dollars):
YearEstimated Gross Benefit Payments
2022$8 
20239 
20249 
202510 
202610 
2027-203146 
Total$92 
v3.22.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Schedule of Assets and Liabilities
Information related to operating leases is as follows (in millions of dollars):
As of December 31,
20212020
ROU Assets
Operating lease right-of-use$393 $210 
Operating lease liabilities
Operating lease liability66 57 
Long-term operating lease liability334 162 
Total operating lease liabilities$400 $219 
Schedule of Operating Lease Information
As of December 31,
20212020
Weighted average remaining lease term7 years5 years
Weighted average incremental borrowing rate0.81 %1.95 %
Cash paid for operating leases$68 $69 
ROU assets obtained in exchange for operating lease obligations$244 $74 
Schedule of Maturities of Operating Lease Liabilities
Remaining maturity of existing lease liabilities as of December 31, 2021 are as follows (in millions of dollars):
YearOperating Leases
2022$72 
202369 
202453 
202544 
202637 
Thereafter140 
Total lease payments
415 
Less interest
(15)
Present value of lease liabilities
$400 
v3.22.0.1
STOCK INCENTIVE PLANS (Tables)
 12 Months Ended
Dec. 31, 2021
STOCK INCENTIVE PLANS [Abstract]  
Activity for restricted stock units
The following table summarizes RSU activity (in millions, except for share and per share amounts):
202120202019
SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share
Beginning nonvested units317,414 $259.67 326,124 $259.88 343,814 $245.38 
    Issued105,866 $406.17 140,815 $252.11 96,823 $299.25 
    Canceled(36,134)$274.74 (26,254)$257.56 (36,224)$253.22 
    Vested(184,825)$276.34 (123,271)$252.05 (78,289)$247.96 
Ending nonvested units202,321 $318.40 317,414 $259.67 326,124 $259.88 
Fair value of shares vested
$51 $31 $19 
v3.22.0.1
CAPITAL STOCK (Tables)
 12 Months Ended
Dec. 31, 2021
CAPITAL STOCK [Abstract]  
Schedule of Capital Stock The activity related to outstanding common stock and common stock held in treasury was as follows:
202120202019
Outstanding Common StockTreasury StockOutstanding Common StockTreasury StockOutstanding Common StockTreasury Stock
Balance at beginning of period52,524,391 57,134,828 53,687,528 55,971,691 55,862,360 53,796,859 
Exercise of stock options188,444 (188,444)311,374 (311,374)232,052 (232,052)
Settlement of restricted stock units – net of 61,377, 41,019, and 26,107 shares retained, respectively
127,969 (127,969)82,241 (82,241)52,182 (52,182)
Settlement of performance share units – net of 9,746, 16,830, and 6,737 shares retained, respectively
12,507 (12,507)28,098 (28,098)14,027 (14,027)
Purchase of treasury shares(1,633,106)1,633,106 (1,584,850)1,584,850 (2,473,093)2,473,093 
Balance at end of period51,220,205 58,439,014 52,524,391 57,134,828 53,687,528 55,971,691 
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) (Tables)
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Schedule of AOCE
The components of AOCE consisted of the following (in millions of dollars):
Foreign Currency Translation and OtherDefined Postretirement Benefit PlanOther Employment-related Benefit PlansTotalForeign Currency Translation Attributable to Noncontrolling InterestsAOCE Attributable to W.W. Grainger, Inc.
Balance at January 1, 2019 – net of tax$(264)$82 $(5)$(187)$(16)$(171)
Other comprehensive earnings (loss) before reclassifications – net of tax25 8 (3)30 3 27 
Amounts reclassified to Net earnings1 (11)— (10)— (10)
Net current period activity$26 $(3)$(3)$20 $3 $17 
Balance at December 31, 2019 – net of tax$(238)$79 $(8)$(167)$(13)$(154)
Other comprehensive earnings (loss) before reclassifications – net of tax36 33 — 69 12 57 
Amounts reclassified to Net earnings47 (11)— 36 — 36 
Net current period activity$83 $22 $— $105 $12 $93 
Balance at December 31, 2020 – net of tax $(155)$101 $(8)$(62)$(1)$(61)
Other comprehensive earnings (loss) before reclassifications – net of tax(64)12 2 (50)(29)(21)
Amounts reclassified to Net earnings— (14)— (14)— (14)
Net current period activity(64)(2)2 (64)(29)(35)
Balance at December 31, 2021 – net of tax$(219)$99 $(6)$(126)$(30)$(96)
v3.22.0.1
DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The effect of the Company's fair value and cash flow hedges on the Consolidated Statement of Earnings for the twelve months ended December 31, 2021 and 2020 is as follows (in millions of dollars):
For the Years Ended December 31,
20212020
Total gains or (losses) recognized in earnings by line item in which the effects of fair value and cash flow hedges are recorded:
Interest expense – net
  Fair value hedge:
Interest rate contracts:
      Hedged item$20 $(21)
      Derivatives designated as hedging instrument$(20)$21 
Other – net
  Cash flow hedge:
Foreign exchange contracts:
      Hedged item$— $2 
      Amount of gains (losses) reclassified from
         AOCE into earnings:$— $(2)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The fair value and carrying amounts of outstanding derivative instruments in the Consolidated Balance Sheets as of December 31, 2021 and 2020 was as follows (in millions of dollars):
As of December 31,
20212020
Balance Sheet ClassificationFair Value and Carrying Amounts
Cross-currency swapOther non-current liabilities$2 $2 
Interest rate swapsOther assets$1 $21 
v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income Taxes by Geographical Area
Earnings (losses) before income taxes by geographical area consisted of the following (in millions of dollars):
For the Years Ended December 31,
202120202019
U.S.$1,267 $1,015 $1,226 
Foreign218 (68)(17)
Total
$1,485 $947 $1,209 
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense consisted of the following (in millions of dollars):
For the Years Ended December 31,
202120202019
Current income tax expense:
U.S. Federal
$221 $119 $199 
U.S. State
46 28 44 
Foreign
81 65 58 
Total current
348 212 301 
Deferred income tax expense (benefit)23 (20)13 
Total income tax expense$371 $192 $314 
Schedule of Deferred Tax Assets and Liabilities
The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2021 and 2020 were as follows (in millions of dollars):
As of December 31,
20212020
Deferred tax assets:
Inventory$— $14 
Accrued expenses
152 93 
Foreign loss carryforwards59 45 
Accrued employment-related benefits
50 37 
Tax credit carryforward
27 25 
Other
17 8 
Deferred tax assets
305 222 
           Less valuation allowance(70)(53)
Deferred tax assets – net of valuation allowance$235 $169 
Deferred tax liabilities:
Property, buildings, equipment and other capital assets(217)(145)
Intangibles
(67)(68)
Inventory(9)— 
Other
(8)(10)
Deferred tax liabilities
(301)(223)
Net deferred tax liability$(66)$(54)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets
$14 $14 
Noncurrent liabilities (foreign)(80)(68)
Net deferred tax liability$(66)$(54)
Summary of Valuation Allowance Changes
The Company's valuation allowance changed as follows (in millions of dollars):
For the Years Ended December 31,
20212020
Balance at beginning of period$(53)$(72)
Increases primarily related to foreign NOLs(8)(16)
Releases primarily related to foreign NOLs2 — 
Foreign subsidiaries tax impacts due to divestiture2 39 
Tax rate changes(7)(1)
Increase related to U.S. foreign tax credits(3)(2)
Other changes – net(3)(1)
Balance at end of period$(70)$(53)
Reconciliation of Income Tax Statutory Rate
A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in millions of dollars):
For the Years Ended December 31,
202120202019
Federal income tax$312 $199 $254 
State income taxes – net of federal income tax benefit41 33 36 
Foreign rate difference26 23 25 
Foreign subsidiaries tax impacts due to divestiture— (61)— 
Change in valuation allowance7 16 11 
Other – net(15)(18)(12)
Income tax expense$371 $192 $314 
Effective tax rate25.0 %20.3 %26.0 %
Reconciliation of Income Tax Contingencies
The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):
For the Years Ended December 31,
202120202019
Balance at beginning of year$39 $28 $37 
Additions for tax positions related to the current year3 23 3 
Additions for tax positions of prior years— — 1 
Reductions for tax positions of prior years(1)(2)(1)
Reductions due to statute lapse(3)(10)(10)
Settlements, audit payments, refunds – net— — (2)
Balance at end of year$38 $39 $28 
v3.22.0.1
SEGMENT INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Summary of Segment Results
Following is a summary of segment results (in millions of dollars):
2021
2020 (1)
2019 (1)
Net salesOperating earnings (losses)Net salesOperating earnings (losses)Net salesOperating earnings (losses)
High-Touch Solutions N.A.$10,186 1,334 9,221 1,182 9,036 1,278 
Endless Assortment2,576 232 2,178 166 1,836 122 
Other260 (19)398 (329)614 (138)
Total Company$13,022 $1,547 $11,797 $1,019 $11,486 $1,262 
(1) Effective January 1, 2021, segment results for the years ended December 31, 2020 and 2019 were recast to reflect the Company's re-segmentation.
Significant Reconciling Items from Segments to Consolidated
2021
2020 (1)
2019 (1)
Depreciation and amortization:
High-Touch Solutions N.A.148 $143 $186 
Endless Assortment22 17 14 
Other3 9 10 
Total consolidated depreciation and amortization$173 $169 $210 
(1) Effective January 1, 2021, segment results for the years ended December 31, 2020 and 2019 were recast to reflect the Company's re-segmentation.

Depreciation and amortization presented above includes depreciation of long-lived assets and amortization of capitalized software and ROU assets. Long-lived assets consist of property, buildings and equipment.

Following is revenue by geographic location (in millions of dollars):
202120202019
Revenue by geographic location:
United States10,236 9,200 8,865 
Japan1,705 1,436 1,188 
Canada560 494 539 
Other foreign countries521 667 894 
$13,022 $11,797 $11,486 
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Millions
 12 Months Ended
Jan. 01, 2021
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Number of reportable segments | segment 2      
Service fee revenue (approximately)   1.00% 1.00% 1.00%
Accrued sales returns   $ 34 $ 31  
Accrued sales incentives   73 58  
Advertising expense   $ 402 319 $ 316
Original maturity of cash (days)   90 days    
Percentage of LIFO Inventory   75.00%    
Inventory, LIFO Reserve   $ 510 446  
Inventory, LIFO Reserve, Effect on Income, Net   49 15 24
Depreciation   123 116 150
Capitalized interest costs   $ 1 4 $ 9
Furniture, fixtures, machinery and equipment        
Property, Plant and Equipment, Useful Life       30 years
Building, structures and improvements        
Property, Plant and Equipment, Useful Life       30 years
Change in Accounting Method Accounted for as Change in Estimate        
Depreciation     $ (34)  
Minimum        
Buildings, Structures and Improvements, Estimated Useful Life   10 years    
Furniture, Fixtures, Machinery Equipment, Estimated Useful Life   15 years    
Operating lease renewal term   1 year    
Capitalized software amortization period   3 years    
Minimum | Furniture, fixtures, machinery and equipment        
Property, Plant and Equipment, Useful Life   40 years    
Maximum        
Buildings, Structures and Improvements, Estimated Useful Life   50 years    
Furniture, Fixtures, Machinery Equipment, Estimated Useful Life   3 years    
Operating lease renewal term   30 years    
Capitalized software amortization period   5 years    
Maximum | Furniture, fixtures, machinery and equipment        
Property, Plant and Equipment, Useful Life   50 years    
v3.22.0.1
BUSINESS DIVESTITURES AND LIQUIDATIONS (Details) - Discontinued Operations - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
China Business      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net gain (loss) on divestitures   $ 5  
Fabory Business      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net gain (loss) on divestitures     $ (109)
Accumulated foreign currency translation losses $ 45    
Zoro Tools Europe      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Liquidation expenses $ 9    
v3.22.0.1
REVENUE (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Total net sales 100.00% 100.00% 100.00%
Percent of Total Company Revenue 100.00% 100.00% 100.00%
Other businesses      
Disaggregation of Revenue [Line Items]      
Percentage Of Company-Wide Revenue 2.00% 4.00% 5.00%
Contractors      
Disaggregation of Revenue [Line Items]      
Total net sales 10.00% 10.00% 10.00%
Commercial      
Disaggregation of Revenue [Line Items]      
Total net sales 10.00% 9.00% 11.00%
Government      
Disaggregation of Revenue [Line Items]      
Total net sales 15.00% 16.00% 14.00%
Healthcare      
Disaggregation of Revenue [Line Items]      
Total net sales 6.00% 7.00% 6.00%
Manufacturing      
Disaggregation of Revenue [Line Items]      
Total net sales 30.00% 30.00% 31.00%
Retail/Wholesale      
Disaggregation of Revenue [Line Items]      
Total net sales 10.00% 9.00% 8.00%
Transportation      
Disaggregation of Revenue [Line Items]      
Total net sales 5.00% 5.00% 5.00%
Other      
Disaggregation of Revenue [Line Items]      
Total net sales 14.00% 14.00% 15.00%
High-Touch Solutions N.A.      
Disaggregation of Revenue [Line Items]      
Total net sales 100.00% 100.00% 100.00%
Percent of Total Company Revenue 78.00% 78.00% 79.00%
High-Touch Solutions N.A. | Contractors      
Disaggregation of Revenue [Line Items]      
Total net sales 9.00% 9.00% 10.00%
High-Touch Solutions N.A. | Commercial      
Disaggregation of Revenue [Line Items]      
Total net sales 9.00% 8.00% 10.00%
High-Touch Solutions N.A. | Government      
Disaggregation of Revenue [Line Items]      
Total net sales 18.00% 20.00% 17.00%
High-Touch Solutions N.A. | Healthcare      
Disaggregation of Revenue [Line Items]      
Total net sales 7.00% 9.00% 7.00%
High-Touch Solutions N.A. | Manufacturing      
Disaggregation of Revenue [Line Items]      
Total net sales 30.00% 29.00% 31.00%
High-Touch Solutions N.A. | Retail/Wholesale      
Disaggregation of Revenue [Line Items]      
Total net sales 10.00% 9.00% 8.00%
High-Touch Solutions N.A. | Transportation      
Disaggregation of Revenue [Line Items]      
Total net sales 5.00% 5.00% 6.00%
High-Touch Solutions N.A. | Other      
Disaggregation of Revenue [Line Items]      
Total net sales 12.00% 11.00% 11.00%
Endless Assortment      
Disaggregation of Revenue [Line Items]      
Total net sales 100.00% 100.00% 100.00%
Percent of Total Company Revenue 20.00% 18.00% 16.00%
Endless Assortment | Contractors      
Disaggregation of Revenue [Line Items]      
Total net sales 16.00% 15.00% 16.00%
Endless Assortment | Commercial      
Disaggregation of Revenue [Line Items]      
Total net sales 15.00% 15.00% 15.00%
Endless Assortment | Government      
Disaggregation of Revenue [Line Items]      
Total net sales 3.00% 3.00% 3.00%
Endless Assortment | Healthcare      
Disaggregation of Revenue [Line Items]      
Total net sales 2.00% 2.00% 1.00%
Endless Assortment | Manufacturing      
Disaggregation of Revenue [Line Items]      
Total net sales 29.00% 29.00% 31.00%
Endless Assortment | Retail/Wholesale      
Disaggregation of Revenue [Line Items]      
Total net sales 10.00% 10.00% 10.00%
Endless Assortment | Transportation      
Disaggregation of Revenue [Line Items]      
Total net sales 3.00% 3.00% 3.00%
Endless Assortment | Other      
Disaggregation of Revenue [Line Items]      
Total net sales 22.00% 23.00% 21.00%
v3.22.0.1
PROPERTY, BUILDINGS AND EQUIPMENT (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Property, buildings and equipment   $ 3,327 $ 3,537
Less: Accumulated depreciation and amortization   1,903 2,142
Property, buildings and equipment, net   1,424 1,395
Land      
Property, Plant and Equipment [Line Items]      
Property, buildings and equipment   329 329
Building, structures and improvements      
Property, Plant and Equipment [Line Items]      
Property, buildings and equipment   1,431 1,330
Furniture, fixtures, machinery and equipment      
Property, Plant and Equipment [Line Items]      
Property, buildings and equipment   $ 1,567 $ 1,878
Property, buildings and equipment      
Property, Plant and Equipment [Line Items]      
Impairment charges $ 24    
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]        
Goodwill   $ 384 $ 391 $ 429
Cumulative goodwill impairments   137    
Impairment charges     58  
Amortization expense, intangible assets   63 $ 60 $ 78
High-Touch Solutions N.A.        
Segment Reporting Information [Line Items]        
Cumulative goodwill impairments   32    
Reporting Unit, Canada        
Segment Reporting Information [Line Items]        
Goodwill   129    
Other businesses        
Segment Reporting Information [Line Items]        
Cumulative goodwill impairments   $ 105    
Impairment charges $ 58      
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Balances and Changes in Carrying Amounts of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 391 $ 429
Acquisition   15
Impairment   (58)
Translation (7) 5
Goodwill, ending balance 384 391
Unallocated expense    
Goodwill [Roll Forward]    
Goodwill, beginning balance 0 59
Acquisition   0
Impairment   (58)
Translation 0 (1)
Goodwill, ending balance 0 0
High-Touch Solutions N.A. | Operating Segments    
Goodwill [Roll Forward]    
Goodwill, beginning balance 321 318
Acquisition   0
Impairment   0
Translation 0 3
Goodwill, ending balance 321 321
Endless Assortment | Operating Segments    
Goodwill [Roll Forward]    
Goodwill, beginning balance 70 52
Acquisition   15
Impairment   0
Translation (7) 3
Goodwill, ending balance $ 63 $ 70
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets included in Other assets and intangibles (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Total intangible assets, gross $ 807 $ 748
Finite-lived intangible assets, accumulated amortization 569 520
Total 213  
Total intangible assets, net 238 228
Customer lists and relationships    
Finite-lived intangible assets, gross 221 223
Finite-lived intangible assets, accumulated amortization 176 171
Total 45 52
Trademarks, trade names and other    
Finite-lived intangible assets, gross 36 36
Finite-lived intangible assets, accumulated amortization 24 22
Total 12 14
Non-amortized trade names and other    
Finite-lived intangible assets, gross 25 28
Finite-lived intangible assets, accumulated amortization 0 0
Indefinite-lived intangible assets, carrying amount 25 28
Capitalized software    
Finite-lived intangible assets, gross 525 461
Finite-lived intangible assets, accumulated amortization 369 327
Total $ 156 $ 134
Weighted average life    
Finite-lived intangible assets, useful life 6 years 10 months 24 days  
Weighted average life | Customer lists and relationships    
Finite-lived intangible assets, useful life 11 years 9 months 18 days  
Weighted average life | Trademarks, trade names and other    
Finite-lived intangible assets, useful life 14 years 1 month 6 days  
Weighted average life | Capitalized software    
Finite-lived intangible assets, useful life 4 years 4 months 24 days  
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Estimated amortization expense (Details)
$ in Millions
Dec. 31, 2021
USD ($)
GOODWILL AND OTHER INTANGIBLES [Abstract]  
2022 $ 54
2023 41
2024 31
2025 24
2026 19
Thereafter 44
Total $ 213
v3.22.0.1
LONG-TERM DEBT - Narrative (Details) - USD ($)
 1 Months Ended
Feb. 29, 2020
Dec. 31, 2021
Dec. 31, 2020
Oct. 31, 2017
Commercial Paper        
Debt Instrument [Line Items]        
Short-term debt   $ 0 $ 0  
Line of credit | Revolving credit facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 1,250,000,000      
Increase in maximum borrowing capacity   1,875,000,000    
5-Year Unsecured Revolving Line Of Credit | Domestic Line of Credit        
Debt Instrument [Line Items]        
Debt, term 5 years      
Maximum borrowing capacity       $ 750,000,000
Line of credit, outstanding   $ 0 $ 0  
v3.22.0.1
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details)
$ in Millions
 1 Months Ended 24 Months Ended
Aug. 31, 2020
JPY (¥)
payment
Feb. 29, 2020
USD ($)
May 31, 2017
USD ($)
May 31, 2016
USD ($)
Jun. 30, 2015
USD ($)
May 31, 2017
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2017
USD ($)
Carrying Value                  
Total             $ 2,385 $ 2,421  
Other             7 34  
Less current maturities             0 (8)  
Debt issuance costs and discounts – net of amortization             (23) (24)  
Long-term debt (less current maturities)             2,362 2,389  
Fair Value                  
Other             7 34  
Subtotal             2,829 2,983  
Less current maturities             0 (8)  
Debt issuance costs and discounts – net of amortization             (23) (24)  
Long-term debt (less current maturities)             2,806 2,951  
Senior notes                  
Fair Value                  
Face amount of debt                 $ 1,800
Debt issuance costs and discounts     $ 24     $ 24      
Senior notes | Debt redemption, period one                  
Fair Value                  
Debt redemption percentage           101.00%      
Senior notes | Debt redemption, period two                  
Fair Value                  
Debt redemption percentage           100.00%      
Senior notes | Minimum                  
Fair Value                  
Basis points           0.20%      
Senior notes | Maximum                  
Fair Value                  
Basis points           0.25%      
Japanese Yen Term Loan                  
Carrying Value                  
Total             78 87  
Fair Value                  
Long-term Debt, Fair Value             78 87  
Unsecured Senior Notes, 4.60% | Senior notes                  
Carrying Value                  
Total             1,000 1,000  
Fair Value                  
Long-term Debt, Fair Value             $ 1,284 1,343  
Stated interest rate         4.60%   4.60%    
Face amount of debt         $ 1,000        
Debt, term         30 years        
Unsecured Senior Notes, 3.75% | Senior notes                  
Carrying Value                  
Total             $ 400 400  
Fair Value                  
Long-term Debt, Fair Value             $ 459 479  
Stated interest rate       3.75%     3.75%    
Face amount of debt       $ 400          
Debt, term       30 years          
Unsecured Senior Notes, 4.20% | Senior notes                  
Carrying Value                  
Total             $ 400 400  
Fair Value                  
Long-term Debt, Fair Value             $ 492 514  
Stated interest rate     4.20%     4.20% 4.20%    
Face amount of debt     $ 400     $ 400      
Debt, term     30 years            
Unsecured Senior Notes, 1.85% | Senior notes                  
Carrying Value                  
Total             $ 500 500  
Debt issuance costs and discounts – net of amortization   $ (5)              
Fair Value                  
Long-term Debt, Fair Value             $ 509 $ 526  
Stated interest rate   1.85%         1.85%    
Face amount of debt   $ 500              
Basis points   0.10%              
Debt redemption percentage   100.00%              
Debt Instrument, Redemption Price, Percentage Upon Change Of Control   101.00%              
Term Loan Agreement, 0.05% | Japanese Yen Term Loan                  
Fair Value                  
Stated interest rate 0.05%                
Face amount of debt | ¥ ¥ 9,000,000,000                
Number of semi-annual principal installments | payment 4                
v3.22.0.1
LONG-TERM DEBT - SCHEDULED AGGREGATE PRINCIPAL PAYMENTS (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]  
2022 $ 0
2023 39
2024 40
2025 500
2026 5
Thereafter 1,800
Total $ 2,384
v3.22.0.1
EMPLOYEE BENEFITS - Defined Contribution Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
EMPLOYEE BENEFITS [Abstract]      
Profit sharing automatic contribution percentage 6.00% 3.00%  
Profit sharing plan expense $ 78 $ 99 $ 113
Defined contribution plans, expense $ 16 $ 16 $ 19
v3.22.0.1
EMPLOYEE BENEFITS - Postretirement Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
HRA credit inflation index for grandfathered retirees 4.50%    
Fixed Income Securities      
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Target allocation, percentage 65.00%    
Equity Securities      
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Target allocation, percentage 35.00%    
Postretirement Benefits      
Postretirement Benefits      
Service cost $ 5 $ 5 $ 4
Interest cost 3 6 7
Expected return on assets (8) (8) (12)
Amortization of prior service credits (9) (10) (10)
Amortization of unrecognized gains (8) (5) (4)
Net periodic (benefits) costs (17) (12) (15)
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year 167 200  
Service cost 5 5 4
Interest cost 3 6 7
Plan participants' contributions 3 3  
Actuarial (gains)/losses (14) (38)  
Benefits paid (11) (9)  
Benefit obligation at end of year 153 167 200
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets available for benefits at beginning of year 206 198  
Actual returns on plan assets 9 14  
Plan participants' contributions 3 3  
Benefits paid (11) (9)  
Plan assets available for benefits at end of year 207 206 $ 198
Noncurrent postretirement benefit asset (obligation) 54 39  
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]      
Prior service credit 42 51  
Unrecognized gains 90 83  
Deferred tax (liability) (33) (33)  
Net accumulated gains $ 99 $ 101  
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract]      
Net unrecognized gains (losses), amortization period 10 years 6 months    
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]      
Discount rate 2.17% 3.01% 4.08%
Long-term rate of return on plan assets – net of tax 4.04% 4.04% 7.13%
Pre age 65 5.81% 6.06% 6.31%
Ultimate healthcare cost trend rate 4.50% 4.50% 4.50%
Year ultimate healthcare cost trend rate reached 2026 2026 2026
HRA credit inflation index for grandfathered retirees 0.00% 2.50% 2.50%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Discount rate 2.57% 2.17% 3.01%
Expected long-term rate of return on plan assets – net of tax 4.04% 4.04% 4.04%
Pre age 65 6.50% 5.81% 6.06%
Year ultimate healthcare cost trend rate reached 2030 2026 2026
HRA credit inflation index for grandfathered retirees 0.00% 0.00% 2.50%
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]      
2022 $ 8    
2023 9    
2024 9    
2025 10    
2026 10    
2027-2031 46    
Total $ 92    
v3.22.0.1
EMPLOYEE BENEFITS - Summary of Plan Assets (Details) - Postretirement Benefits - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 207 $ 206 $ 198
Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets 209 205  
Funds – Municipal/Provincial Bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 12 13  
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 1 [Member]    
Funds – Corporate Bonds Fund      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 5 5  
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 1 [Member]    
Federal Money Market Fund      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 4 11  
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 1 [Member]    
Corporate Bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 89 102  
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 2 [Member]    
Government/Municipal Bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 14 8  
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 2 [Member]    
Equity Funds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 85 66  
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 2 [Member]    
Trust Assets and Liabilities, Net      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ (2) $ 1  
v3.22.0.1
LEASES - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]        
Operating lease expiration date   2036    
Rent expense   $ 74 $ 76 $ 76
Sublease income   2 $ 2 $ 3
Future lease obligations that have not yet commenced   $ 18    
Right-Of-Use-Assets        
Lessee, Lease, Description [Line Items]        
Impairment charges $ 20      
v3.22.0.1
LEASES - Schedule of Operating Lease Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating lease right-of-use $ 393 $ 210
Operating lease liability 66 57
Long-term operating lease liability 334 162
Total operating lease liabilities $ 400 $ 219
Weighted average remaining lease term 7 years 5 years
Weighted average incremental borrowing rate 0.81% 1.95%
Cash paid for operating leases $ 68 $ 69
ROU assets obtained in exchange for operating lease obligations $ 244 $ 74
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Operating lease right-of-use  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Operating lease liability  
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Long-term operating lease liability  
Operating Lease, Liability, Statement of Financial Position [Extensible List] Other Liabilities  
v3.22.0.1
LEASES - Schedule of Maturities of Operating Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
2022 $ 72  
2023 69  
2024 53  
2025 44  
2026 37  
Thereafter 140  
Total lease payments 415  
Less interest (15)  
Present value of lease liabilities $ 400 $ 219
v3.22.0.1
STOCK INCENTIVE PLANS (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares of common stock available for grant under stock incentive plans (in shares) 2.1    
Pretax stock-based compensation expense $ 42 $ 46 $ 40
Income tax benefits recognized in earnings for stock-based compensation expense 21 16 12
RSU expense 30 $ 32 $ 27
Unrecognized compensation $ 46    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average period to recognize (in years) 2 years 1 month 6 days    
Maximum | Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 7 years    
Minimum | Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 1 year    
v3.22.0.1
STOCK INCENTIVE PLANS - Restricted Stock Units (Details) - Restricted Stock Units - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]      
Outstanding at beginning of period (in shares) 317,414 326,124 343,814
Issued (in shares) 105,866 140,815 96,823
Canceled (in shares) (36,134) (26,254) (36,224)
Vested (in shares) (184,825) (123,271) (78,289)
Outstanding at end of period (in shares) 202,321 317,414 326,124
Weighted Average Price Per Share [Abstract]      
Outstanding at beginning of period, weighted average price per share (in dollars per share) $ 259.67 $ 259.88 $ 245.38
Issued, weighted average price per share (in dollars per share) 406.17 252.11 299.25
Cancelled, weighted average price per share (in dollars per share) 274.74 257.56 253.22
Vested, weighted average price per share (in dollars per share) 276.34 252.05 247.96
Outstanding at end of period, weighted average price per share (in dollars per share) $ 318.40 $ 259.67 $ 259.88
Fair value of shares vested $ 51 $ 31 $ 19
v3.22.0.1
CAPITAL STOCK (Details) - shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cumulative preferred stock, shares outstanding (in shares) 0 0  
Balance at beginning of period, treasury stock (in shares) 57,134,828    
Balance at end of period, treasury stock (in shares) 58,439,014 57,134,828  
Stock Issued During Period, Shares, Restricted Stock Award, Retained 61,377 41,019 26,107
Stock Issued During Period, Shares, Performance Share Units, Retained 9,746 16,830 6,737
Common Stock      
Balance at beginning of period, common stock (in shares) 52,524,391 53,687,528 55,862,360
Exercised (in shares) (188,444) (311,374) (232,052)
Settlement of restricted stock units, net of 41,019, 26,107 and 39,075 shares retained, respectively (in shares) (127,969) (82,241) (52,182)
Settlement of performance share units, net of 16,830, 6,737 and 1,027 shares retained, respectively (in shares) (12,507) (28,098) (14,027)
Purchase of treasury shares (in shares) 1,633,106 1,584,850 2,473,093
Balance at end of period, common stock (in shares) 51,220,205 52,524,391 53,687,528
Treasury Stock      
Balance at beginning of period, treasury stock (in shares) 57,134,828 55,971,691 53,796,859
Exercised (in shares) (188,444) (311,374) (232,052)
Settlement of restricted stock units, net of 41,019, 26,107 and 39,075 shares retained, respectively (in shares) (127,969) (82,241) (52,182)
Settlement of performance share units, net of 16,830, 6,737 and 1,027 shares retained, respectively (in shares) (12,507) (28,098) (14,027)
Purchase of treasury shares (in shares) 1,633,106 1,584,850 2,473,093
Balance at end of period, treasury stock (in shares) 58,439,014 57,134,828 55,971,691
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 2,093 $ 2,060 $ 2,093
Net current period activity (64) 105 20
Ending balance 2,160 2,093 2,060
Foreign Currency Translation and Other      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (155) (238) (264)
Other comprehensive earnings (loss) before reclassifications – net of tax (64) 36 25
Amounts reclassified to Net earnings 0 47 1
Net current period activity (64) 83 26
Ending balance (219) (155) (238)
Total      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (62) (167) (187)
Other comprehensive earnings (loss) before reclassifications – net of tax (50) 69 30
Amounts reclassified to Net earnings (14) 36 (10)
Net current period activity (64) 105 20
Ending balance (126) (62) (167)
Foreign Currency Translation Attributable to Noncontrolling Interests      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (1) (13) (16)
Other comprehensive earnings (loss) before reclassifications – net of tax (29) 12 3
Amounts reclassified to Net earnings 0 0 0
Net current period activity (29) 12 3
Ending balance (30) (1) (13)
AOCE Attributable to W.W. Grainger, Inc.      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (61) (154) (171)
Other comprehensive earnings (loss) before reclassifications – net of tax (21) 57 27
Amounts reclassified to Net earnings (14) 36 (10)
Net current period activity (35) 93 17
Ending balance (96) (61) (154)
Defined Postretirement Benefit Plan | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 101 79 82
Other comprehensive earnings (loss) before reclassifications – net of tax 12 33 8
Amounts reclassified to Net earnings (14) (11) (11)
Net current period activity (2) 22 (3)
Ending balance 99 101 79
Other Employment-related Benefit Plans | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (8) (8) (5)
Other comprehensive earnings (loss) before reclassifications – net of tax 2 0 (3)
Amounts reclassified to Net earnings 0 0 0
Net current period activity 2 0 (3)
Ending balance $ (6) $ (8) $ (8)
v3.22.0.1
DERIVATIVE INSTRUMENTS (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Feb. 29, 2020
Derivative [Line Items]        
Derivative Asset, Fair Value, Gross Asset $ (87) $ (93) $ (79)  
Other Operating Income (Expense), Net 25 21 $ 26  
Cumulative amount of fair value hedging adjustments $ 501 521    
Unsecured Senior Notes, 1.85% | Senior notes        
Derivative [Line Items]        
Stated interest rate 1.85%     1.85%
Fair Value Hedging | Designated as Hedging Instrument        
Derivative [Line Items]        
Derivative, notional amount $ 500 500    
Fair Value Hedging | Designated as Hedging Instrument | Other Contract        
Derivative [Line Items]        
Derivative Asset, Fair Value, Gross Asset 20 (21)    
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap        
Derivative [Line Items]        
Derivative Asset, Fair Value, Gross Asset (20) 21    
Derivative Asset, Fair Value, Gross Asset 1 21    
Cash Flow Hedging | Designated as Hedging Instrument        
Derivative [Line Items]        
Derivative, notional amount 34 34    
Cash Flow Hedging | Designated as Hedging Instrument | Other Contract        
Derivative [Line Items]        
Other Operating Income (Expense), Net 0 2    
Cash Flow Hedging | Designated as Hedging Instrument | Cross Currency Interest Rate Contract        
Derivative [Line Items]        
Other Operating Income (Expense), Net 0 (2)    
Derivative Asset, Fair Value, Gross Asset $ 2 $ 2    
v3.22.0.1
INCOME TAXES - Net Earnings Before Income Taxes by Geographical Area (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Net earnings before income taxes by geographical area      
U.S. $ 1,267 $ 1,015 $ 1,226
Foreign 218 (68) (17)
Earnings before income taxes $ 1,485 $ 947 $ 1,209
v3.22.0.1
INCOME TAXES (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current income tax expense:      
U.S. Federal $ 221 $ 119 $ 199
U.S. State 46 28 44
Foreign 81 65 58
Total current 348 212 301
Deferred income tax expense (benefit) 23 (20) 13
Income tax expense $ 371 $ 192 $ 314
v3.22.0.1
INCOME TAXES - Income Tax Effects of Temporary Differences (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Operating Loss Carryforwards $ 238    
Deferred tax assets:      
Inventory 0 $ 14  
Accrued expenses 152 93  
Foreign loss carryforwards 59 45  
Accrued employment-related benefits 50 37  
Tax credit carryforward 27 25  
Other 17 8  
Deferred tax assets 305 222  
Less valuation allowance (70) (53) $ (72)
Deferred tax assets – net of valuation allowance 235 169  
Deferred tax liabilities:      
Property, buildings, equipment and other capital assets (217) (145)  
Intangibles (67) (68)  
Inventory (9) 0  
Other (8) (10)  
Deferred tax liabilities (301) (223)  
Net deferred tax liability (66) (54)  
The net deferred tax asset (liability) is classified as follows:      
Noncurrent assets 14 14  
Noncurrent liabilities (foreign) $ (80) $ (68)  
v3.22.0.1
INCOME TAXES - Changes in Valuation Allowance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Balance at beginning of period $ (53) $ (72)
Balance at end of period (70) (53)
Increases primarily related to foreign NOLs    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) (8) (16)
Releases primarily related to foreign NOLs    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) 2 0
Foreign subsidiaries tax impacts due to divestiture    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) 2 39
Tax rate changes    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) (7) (1)
Increase related to U.S. foreign tax credits    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) (3) (2)
Other changes – net    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) $ (3) $ (1)
v3.22.0.1
INCOME TAXES - Reconciliation of Income Tax Expense with Federal Income Taxes at the Statutory Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of income tax expense with federal income taxes at the statutory rate      
Federal income tax $ 312 $ 199 $ 254
State income taxes – net of federal income tax benefit 41 33 36
Foreign rate difference 26 23 25
Foreign subsidiaries tax impacts due to divestiture 0 (61) 0
U.S. tax legislation impact 7 16 11
Excess tax benefits from stock-based compensation (15) (18) (12)
Income tax expense $ 371 $ 192 $ 314
Effective tax rate 25.00% 20.30% 26.00%
v3.22.0.1
INCOME TAXES - Changes in Liability for Tax Uncertainties, Excluding Interest (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Undistributed earnings of foreign subsidiaries $ 544    
Liability for tax uncertainties 4 $ 4  
Changes in liability for tax uncertainties, excluding interest      
Balance at beginning of year 39 28 $ 37
Additions for tax positions related to the current year 3 23 3
Additions for tax positions of prior years 0 0 1
Reductions for tax positions of prior years (1) (2) (1)
Reductions due to statute lapse (3) (10) (10)
Settlements, audit payments, refunds - net 0 0 (2)
Balance at end of year $ 38 $ 39 $ 28
v3.22.0.1
SEGMENT INFORMATION (Details)
$ in Millions
 12 Months Ended
Jan. 01, 2021
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Segment Reporting Information [Line Items]        
Number of reportable segments | segment 2      
Summarized Information:        
Net sales   $ 13,022 $ 11,797 $ 11,486
Operating earnings   1,547 1,019 1,262
Depreciation and amortization   173 169 210
United States        
Summarized Information:        
Net sales   10,236 9,200 8,865
JAPAN        
Summarized Information:        
Net sales   1,705 1,436 1,188
Canada        
Summarized Information:        
Net sales   560 494 539
Other foreign countries        
Summarized Information:        
Net sales   521 667 894
Unallocated expense        
Summarized Information:        
Net sales   260 398 614
Operating earnings   (19) (329) (138)
High-Touch Solutions N.A. | Operating segments        
Summarized Information:        
Net sales   10,186 9,221 9,036
Operating earnings   1,334 1,182 1,278
Depreciation and amortization   148 143 186
Endless Assortment | Operating segments        
Summarized Information:        
Net sales   2,576 2,178 1,836
Operating earnings   232 166 122
Depreciation and amortization   22 17 14
Other | Operating segments        
Summarized Information:        
Depreciation and amortization   $ 3 $ 9 $ 10
v3.22.0.1
CONTINGENCIES AND LEGAL MATTERS (Details)
 3 Months Ended
Apr. 01, 2021
plantiff
Dec. 31, 2019
lawsuit
death
plantiff
CONTINGENCIES AND LEGAL MATTERS [Abstract]    
Number of lawsuits | lawsuit   16
Number of plaintiffs | plantiff 24 186
Number of deaths | death   1