W.W. GRAINGER, INC., 10-K filed on 2/20/2025
Annual Report
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COVER - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 14, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 40,147,032,828
Entity Common Stock, Shares Outstanding   48,216,708  
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 30, 2025, are incorporated by reference into Part III of this Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (Form 10-K) where indicated. The registrant's definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.    
Entity Central Index Key 0000277135    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
 12 Months Ended
Dec. 31, 2024
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, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net sales $ 17,168 $ 16,478 $ 15,228
Cost of goods sold 10,410 9,982 9,379
Gross profit 6,758 6,496 5,849
Selling, general and administrative expenses 4,121 3,931 3,634
Operating earnings 2,637 2,565 2,215
Other (income) expense:      
Interest expense – net 77 93 93
Other – net (24) (28) (24)
Total other expense – net 53 65 69
Earnings before income taxes 2,584 2,500 2,146
Income tax provision 595 597 533
Net earnings 1,989 1,903 1,613
Less net earnings attributable to noncontrolling interest 80 74 66
Net earnings attributable to W.W. Grainger, Inc. $ 1,909 $ 1,829 $ 1,547
Earnings per share:      
Basic (in dollars per share) $ 38.84 $ 36.39 $ 30.22
Diluted (in dollars per share) $ 38.71 $ 36.23 $ 30.06
Weighted average number of shares outstanding:      
Basic (in shares) 48.9 49.9 50.9
Diluted (in shares) 49.0 50.1 51.1
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net earnings $ 1,989 $ 1,903 $ 1,613
Other comprehensive earnings (losses):      
Foreign currency translation adjustments (137) (11) (101)
Postretirement benefit plan losses – net of tax expense of $0, $2, and $6, respectively (1) (2) (17)
Total other comprehensive earnings (losses) (138) (13) (118)
Comprehensive earnings – net of tax 1,851 1,890 1,495
Less comprehensive earnings (losses) attributable to noncontrolling interest      
Net earnings 80 74 66
Foreign currency translation adjustments (36) (21) (34)
Total comprehensive earnings (losses) attributable to noncontrolling interest 44 53 32
Comprehensive earnings attributable to W.W. Grainger, Inc. $ 1,807 $ 1,837 $ 1,463
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS Parentheticals - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Postretirement benefit plan gains (losses), tax $ 0 $ 2 $ 6
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 1,036 $ 660
Accounts receivable (less allowance for credit losses of $32 and $35, respectively) 2,232 2,192
Inventories – net 2,306 2,266
Prepaid expenses and other current assets 163 156
Total current assets 5,737 5,274
Property, buildings and equipment – net 1,927 1,658
Goodwill 355 370
Intangibles – net 243 234
Operating lease right-of-use 371 429
Other assets 196 182
Total assets 8,829 8,147
Current liabilities    
Current maturities 499 34
Trade accounts payable 952 954
Accrued compensation and benefits 324 327
Operating lease liability 78 71
Accrued expenses 407 397
Income taxes payable 45 48
Total current liabilities 2,305 1,831
Long-term debt 2,279 2,266
Long-term operating lease liability 327 381
Deferred income taxes and tax uncertainties 101 104
Other non-current liabilities 114 124
Shareholders' equity    
Cumulative preferred stock – $5 par value – 12,000,000 shares authorized; none issued or outstanding 0 0
Common Stock – $0.50 par value – 300,000,000 shares authorized; 109,659,219 shares issued 55 55
Additional contributed capital 1,399 1,355
Retained earnings 13,677 12,162
Accumulated other comprehensive losses (274) (172)
Treasury stock, at cost – 61,326,349 and 60,341,817 shares, respectively (11,499) (10,285)
Total W.W. Grainger, Inc. shareholders’ equity 3,358 3,115
Noncontrolling interest 345 326
Total shareholders' equity 3,703 3,441
Total liabilities and shareholders' equity $ 8,829 $ 8,147
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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 32 $ 35
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, common, shares (in shares) 61,326,349 60,341,817
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net earnings $ 1,989 $ 1,903 $ 1,613
Provision for credit losses 23 23 19
Deferred income taxes and tax uncertainties (8) (9) 8
Depreciation and amortization 237 214 205
Non-cash lease expense 84 76 70
Net losses (gains) from sales of assets and business divestitures 0 17 (14)
Stock-based compensation 62 62 48
Change in operating assets and liabilities:      
Accounts receivable (110) (98) (436)
Inventories (77) (16) (412)
Prepaid expenses and other assets (36) 101 (158)
Trade accounts payable 20 (65) 225
Operating lease liabilities (96) (88) (76)
Accrued liabilities 20 (91) 218
Income taxes – net (3) (4) 42
Other non-current liabilities 6 6 (19)
Net cash provided by operating activities 2,111 2,031 1,333
Cash flows from investing activities:      
Capital expenditures (541) (445) (256)
Proceeds from sales of assets and business divestitures 3 21 28
Other – net 18 2 (35)
Net cash used in investing activities (520) (422) (263)
Cash flows from financing activities:      
Proceeds from debt 503 7 16
Payments of debt (39) (37) (15)
Proceeds from stock options exercised 30 34 26
Payments for employee taxes withheld from stock awards (50) (37) (23)
Purchases of treasury stock (1,201) (850) (603)
Cash dividends paid (421) (392) (370)
Other – net (2) (3) (3)
Net cash used in financing activities (1,180) (1,278) (972)
Exchange rate effect on cash and cash equivalents (35) 4 (14)
Net change in cash and cash equivalents 376 335 84
Cash and cash equivalents at beginning of year 660 325 241
Cash and cash equivalents at end of period 1,036 660 325
Supplemental cash flow information:      
Cash payments for interest (net of amounts capitalized) 111 109 91
Cash payments for income taxes $ 606 $ 615 $ 479
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Common Stock
Additional Contributed Capital
Retained Earnings
Accumulated Other Comprehensive Earnings (Losses)
Treasury Stock
Noncontrolling Interest
Beginning balance at Dec. 31, 2021 $ 2,160 $ 55 $ 1,270 $ 9,500 $ (96) $ (8,855) $ 286
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Stock-based compensation 53   40     12 1
Purchases of treasury stock (603)         (602) (1)
Net earnings 1,613     1,547     66
Other comprehensive earnings (losses) (118)       (84)   (34)
Cash dividends paid (370)     (347)     (23)
Ending balance at Dec. 31, 2022 2,735 55 1,310 10,700 (180) (9,445) 295
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Stock-based compensation 60   46     12 2
Purchases of treasury stock (853)         (852) (1)
Net earnings 1,903     1,829     74
Other comprehensive earnings (losses) (13)       8   (21)
Capital contribution 2   (1)       3
Cash dividends paid (393)     (367)     (26)
Ending balance at Dec. 31, 2023 3,441 55 1,355 12,162 (172) (10,285) 326
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Stock-based compensation 43   47     (5) 1
Purchases of treasury stock (1,210)         (1,209) (1)
Net earnings 1,989     1,909     80
Other comprehensive earnings (losses) (138)       (102)   (36)
Capital contribution 0   (3)       3
Cash dividends paid (422)     (394)     (28)
Ending balance at Dec. 31, 2024 $ 3,703 $ 55 $ 1,399 $ 13,677 $ (274) $ (11,499) $ 345
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]      
Cash dividends paid per share (in dollars per share) $ 8.01 $ 7.30 $ 6.78
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
W.W. Grainger, Inc. is a broad line distributor of maintenance, repair and operating (MRO) products and services with operations primarily in North America, 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.

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.

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, 2024, 2023 and 2022.

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 $52 million as of December 31, 2024 and 2023, and are reported as a reduction of Accounts receivable – net. Total accrued sales incentives were approximately $109 million and $114 million as of December 31, 2024 and 2023, 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, 2024 and 2023.
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. Total accrued vendor rebates were $150 million and $155 million as of December 31, 2024 and 2023, respectively, and are reported in Trade accounts payable.

Selling, General and Administrative Expenses (SG&A)
Company SG&A is primarily comprised of payroll and benefits, advertising, depreciation and amortization, lease, indirect purchasing, supply chain and branch operations, technology, 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 $750 million, $638 million and $519 million for 2024, 2023 and 2022, 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 cash equivalents to be short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

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. The Company uses the last-in, first-out (LIFO) method, valued at the lower of cost or market, to account for approximately 79% of total inventory and the first-in, first-out (FIFO) method, valued at the lower of cost or net realizable value, 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 market value. Estimated market 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 $804 million and $770 million higher than reported as of December 31, 2024 and December 31, 2023, respectively. Concurrently, net earnings would have increased by $26 million, $58 million and $139 million for the years ended December 31, 2024, 2023 and 2022, 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 3 to 15 years. Amounts expended for maintenance and repairs are charged to expense as incurred.

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, buildings and equipment (including branches, warehouses, DCs and office space) 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 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 1 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 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 3 or 5 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 records a liability when a particular contingency is both probable and estimable. If the probable loss cannot be reasonably estimated, no accrual is recorded, but the loss contingency and the reasons to the effect that
it cannot be reasonably estimated are disclosed. If a loss is reasonably possible, the Company will provide disclosure to that effect.

For further discussion on the Company's contingencies, see Note 13.

New Accounting Standards

Accounting Pronouncements Recently Adopted
In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update requires public entities to disclose significant segment expenses and other segment items on an annual and interim basis. The effective date is for fiscal years beginning after December 15, 2023, with the option to early adopt prior to the effective date and requires application on a retrospective basis. The Company adopted this ASU effective December 31, 2024 on a retrospective basis and it did not have a material impact on the Consolidated Financial Statements. For the related segment reporting disclosure, see Note 12.

Accounting Pronouncements Recently Issued
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. The effective date is for fiscal years beginning after December 15, 2024, with the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on the related income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires public entities to disclose required information for inventory purchases, employee compensation, depreciation, intangible asset amortization and selling expense. The effective date is for fiscal years beginning after December 15, 2026, with the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on the related income statement line items disclosures.
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REVENUE
 12 Months Ended
Dec. 31, 2024
REVENUE [Abstract]  
REVENUE REVENUE
Grainger serves a large number of customers in diverse industries, which are subject to different economic and market-specific factors. The Company's revenue is primarily comprised of MRO product sales and related activities.

The Company's presentation of revenue by segment and customer 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. 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.

The following tables present the Company's percentage of revenue by reportable segment and by customer industry:
 Twelve Months Ended December 31,
2024
2023
2022(1)
 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)
Manufacturing31 %29 %31 %30 %30 %30 %31 %30 %30 %
Government19 %3 %16 %19 %3 %16 %18 %3 %15 %
Wholesale7 %18 %9 %7 %16 %9 %7 %16 %9 %
Commercial Services7 %12 %8 %7 %12 %8 %7 %13 %8 %
Contractors5 %12 %6 %5 %12 %6 %5 %12 %6 %
Healthcare7 %2 %6 %7 %2 %6 %7 %2 %6 %
Retail4 %4 %4 %4 %4 %4 %4 %4 %4 %
Transportation4 %2 %4 %4 %2 %4 %4 %2 %4 %
Utilities3 %2 %3 %3 %2 %3 %3 %2 %3 %
Warehousing3 %— %2 %4 %— %3 %5 %— %4 %
Other(3)
10 %16 %11 %10 %17 %11 %9 %16 %11 %
Total net sales100 % 100 % 100 %100 %100 %100 %100 %100 %100 %
Percent of total company revenue80 %18 %100 %81 %18 %100 %80 %18 %100 %
(1) Customer industry results for the twelve months ended December 31, 2022 were reclassified to reflect the Company's current classifications, which primarily uses the North American Industry Classification System (NAICS) beginning January 1, 2023.
(2) Total Company includes Other, which includes the Cromwell business. Other accounts for approximately 2%, 1% and 2% of revenue for the twelve months ended December 31, 2024, 2023 and 2022, respectively.
(3) Other primarily includes revenue from industries and customers that are not material individually, including hospitality, restaurants, property management and natural resources.
v3.25.0.1
PROPERTY, BUILDINGS AND EQUIPMENT
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY, BUILDINGS AND EQUIPMENT PROPERTY, BUILDINGS AND EQUIPMENT
Grainger's property, buildings and equipment consisted of the following (in millions of dollars):
 As of
 December 31, 2024 December 31, 2023
Land and land improvements$415  $397 
Building, structures and improvements1,723  1,469 
Furniture, fixtures, machinery and equipment1,945  1,852 
Property, buildings and equipment$4,083  $3,718 
Less: Accumulated depreciation and amortization2,156  2,060 
Property, buildings and equipment, net$1,927  $1,658 

Depreciation expense on property, buildings and equipment was $164 million, $146 million and $139 million for the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2024
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 2024 and 2023. Based on the results of that testing, the Company did not identify any significant events or changes in circumstances that indicated the existence of impairment indicators and 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
As of December 31, 2024 and 2023, the Canada business reporting unit had goodwill of $114 million and $124 million, respectively. As part of our annual impairment testing, the Company compared the current results to 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 also performed various sensitivities over key assumptions, including projections of future revenue growth and operating expenditures used in the analysis. The Company did not identify any significant events or changes in circumstances that indicated the existence of impairment indicators for its Canada business, and concluded it was more likely than not its fair value exceeded its carrying value.

The Company's balances and changes in the carrying amount of goodwill by segment are as follows (in millions of dollars):
High-Touch Solutions N.A.Endless AssortmentTotal
Balance at December 31, 2022$313 $58 $371 
Translation2 (3)(1)
Balance at December 31, 2023315 55 370 
Translation(9)(6)(15)
Balance at December 31, 2024$306 $49 $355 

Grainger's cumulative goodwill impairment as of December 31, 2024, was $137 million. No goodwill impairment was recorded for the twelve months ended December 31, 2024, 2023 and 2022.
The balances and changes in intangible assets – net are as follows (in millions of dollars):
As of December 31,
20242023
Weighted average lifeGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Customer lists and relationships10.7 years$164 $155 $9 $166 $153 $13 
Trademarks, trade names and other14.9 years31 24 7 31 23 8 
Non-amortized trade names and otherIndefinite18 — 18 20 — 20 
Capitalized software4.3 years714 505 209 659 466 193 
Total intangible assets6.1 years$927 $684 $243 $876 $642 $234 

Amortization expense of intangible assets recorded in SG&A was $70 million, $64 million and $61 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Estimated amortization expense for future periods is as follows (in millions of dollars):
Year Expense
2025$76 
202662 
202748 
202830 
20299 
Thereafter— 
Total$225 
v3.25.0.1
DEBT
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
Total debt, including long-term, current maturities and debt issuance costs and discounts – net, consisted of the following (in millions of dollars):
As of December 31,
 20242023
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $894 $1,000 $967 
1.85% senior notes due 2025
— — 500 483 
4.45% senior notes due 2034
500 477 — — 
3.75% senior notes due 2046
400 332 400 336 
4.20% senior notes due 2047
400 312 400 361 
Debt issuance costs – net of amortization and other(21)(21)(34)(34)
Long-term debt2,279 1,994 2,266 2,113 
1.85% senior notes due 2025
500 498 — — 
Japanese yen term loan— — 32 32 
Other(1)(1)2 2 
Current maturities$499 $497 $34 $34 
Total debt$2,778 $2,491 $2,300 $2,147 

Revolving Credit Facility
In October 2023, the Company entered into a five-year unsecured revolving credit facility agreement (2023 Credit Facility). Grainger may obtain loans in various currencies on a revolving basis in an aggregate amount not exceeding $1.25 billion, which may be increased up to $1.875 billion at the request of the Company, subject to obtaining additional commitments and other customary conditions. The primary purpose of the 2023 Credit Facility is to support the Company's commercial paper program and for general corporate purposes.

There were no borrowings outstanding under the Company's 2023 Credit Facility as of December 31, 2024 and 2023.

Senior Notes
In the years 2015-2020, Grainger issued $2.3 billion in unsecured long-term debt (Senior Notes) primarily to provide flexibility in funding general working capital needs, share repurchases and long-term cash requirements. The Senior Notes require no principal payments until maturity and interest is paid semi-annually.

In September 2024, Grainger issued $500 million in unsecured 4.45% Senior Notes (4.45% Notes). Grainger intends to use the net proceeds from this offering to repay the 1.85% Senior Notes that mature in February 2025 and any remaining net proceeds for general corporate purposes. The 4.45% Notes mature in September 2034, require no principal payments until maturity, and interest is paid semi-annually in arrears, beginning March 15, 2025.

The Company incurred debt issuance costs related to the Senior Notes representing underwriting fees and other expenses. These costs were recorded as a contra-liability in Long-term debt and are being amortized over the term of the Senior Notes using the straight-line method to Interest expense – net. As of December 31, 2024 and 2023, the unamortized costs were $22 million and $19 million, respectively.

Grainger uses interest rate swaps with an outstanding notional amount of $450 million as of December 31, 2024 and 2023, to hedge a portion of the interest rate risk associated with the 1.85% Senior Notes. These derivative instruments qualified and were designated for fair value hedge accounting treatment. Under this method, the resulting carrying value adjustments as of December 31, 2024 and 2023, are presented in Other in the table above and the estimated fair value of the interest rate swaps, based on Level 2 inputs within the fair value hierarchy, are reported on the Consolidated Balance Sheets in Other non-current liabilities.
The gain or loss on the interest rate swaps as well as the offsetting gain or loss on the 1.85% Senior Notes, are recognized in the Consolidated Statements of Earnings in Interest expense – net and the effect for the twelve months ended December 31, 2024 and 2023 was not material.

MonotaRO Term Loan
In August 2020, MonotaRO Co., Ltd (MonotaRO) entered into a ¥9 billion term loan agreement to fund technology investments and the expansion of its distribution center (DC) network. In the third quarter of 2024, the term loan was paid in full.

Fair Value
The estimated fair value of the Company’s senior notes was based on available external pricing data and current market rates for similar debt instruments, among other factors, which are classified as Level 2 inputs within the fair value hierarchy.

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, 2024 and 2023.

The Company's foreign subsidiaries utilize various financing sources for working capital purposes and other operating needs. These financing sources in aggregate were not material as of December 31, 2024 and 2023.

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
2025$502 
20261 
2027— 
2028— 
2029— 
Thereafter2,300 
Total$2,803 
v3.25.0.1
EMPLOYEE BENEFITS
 12 Months Ended
Dec. 31, 2024
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, which provides for an automatic contribution equal to 6% of the eligible team member's total eligible compensation. The total retirement savings plan expense was $91 million, $85 million, and $87 million for 2024, 2023 and 2022, 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 $20 million, $21 million and $11 million for 2024, 2023 and 2022, respectively.
Postretirement Healthcare Benefits Plans
The Company has a postretirement healthcare benefit plan that provides coverage for certain U.S. team members. 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,
202420232022
SG&A
Service cost$2 $2 $4 
Other (income) expense
Interest cost5 5 4 
Expected return on assets(7)(6)(8)
Amortization of prior service credit(9)(10)(10)
Amortization of unrecognized gains(8)(7)(9)
Net periodic benefits$(17)$(16)$(19)

Reconciliations of the beginning and ending balances of the postretirement benefit asset, 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 follow (in millions of dollars):
20242023
Benefit obligation at beginning of year$114 $112 
Service cost2 2 
Interest cost5 5 
Plan participants' contributions3 3 
Actuarial (gain) loss(12)2 
Benefits paid(9)(10)
Benefit obligation at end of year$103 $114 
Plan assets available for benefits at beginning of year$173 $162 
Actual returns on plan assets11 18 
Plan participants' contributions3 3 
Benefits paid(9)(10)
Plan assets available for benefits at end of year178 173 
Noncurrent postretirement benefit asset$75 $59 

The amounts recognized in AOCE consisted of the following (in millions of dollars):
As of December 31,
20242023
Prior service credit$13 $23 
Unrecognized gains88 79 
Deferred tax liability(25)(25)
Net accumulated gains
$76 $77 

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 years for 2024.
The postretirement benefit obligation is 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, mortality and cost-sharing between the Company and the retirees. The actuarial gain recognized during the plan year is primarily related to the change in discount rate assumption.

The following assumptions were used to determine net periodic benefit costs as of January 1:
For the Years Ended December 31,
202420232022
Discount rate4.73 %4.92 %2.57 %
Expected long-term rate of return on plan assets – net of tax4.04 %4.04 %4.04 %
Initial healthcare cost trend rate (pre age 65)7.20 %7.50 %6.50 %
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached203320332030

The following assumptions were used to determine benefit obligations as of December 31:
202420232022
Discount rate5.39 %4.73 %4.92 %
Expected long-term rate of return on plan assets – net of tax4.04 %4.04 %4.04 %
Initial healthcare cost trend rate (pre age 65)6.90 %7.20 %7.50 %
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached203320332033

The Company's investment strategy reflects the long-term nature of the plan obligation and seeks to reach a balance allocation between Fixed Income securities and Equities of approximately 65% and 35%, respectively. Current allocations may differ from targeted allocations based on investment results and other timing factors. 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 consisted of the following as of December 31 (in millions of dollars):
20242023
Asset class
Level 1 inputs:
Mutual funds - corporate bonds fund10 10 
Level 2 Inputs:
Fixed Income:
Corporate bonds48 56 
Government/municipal bonds8 9 
Equity funds101 88 
Plan assets167 163 
Trust assets11 10 
Plan assets available for benefits$178 $173 
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
2025$9 
20269 
20279 
20288 
20298 
2030-203441 
Total$84 
v3.25.0.1
LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
The Company leases certain properties, buildings and equipment (including branches, warehouses, DCs and office space) 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 2037.

Information related to operating leases is as follows (in millions of dollars):
As of December 31,
20242023
Right-of-use assets
Operating lease right-of-use$371 $429 
Operating lease liabilities
Operating lease liability78 71 
Long-term operating lease liability327 381 
Total operating lease liabilities$405 $452 

As of December 31,
20242023
Weighted average remaining lease term6 years7 years
Weighted average incremental borrowing rate2.57 %2.19 %
Cash paid for operating leases$96 $88 
Right-of-use assets obtained in exchange for operating lease obligations$48 $161 

Rent expense was $103 million, $102 million and $93 million for 2024, 2023 and 2022, respectively. These amounts are net of sublease income of $2 million for 2024, 2023 and 2022.
The remaining maturity of existing lease liabilities as of December 31, 2024 are as follows (in millions of dollars):

YearOperating Leases
2025$91 
202685 
202772 
202863 
202950 
Thereafter76 
Total lease payments
437 
Less interest
32 
Present value of lease liabilities
$405 

As of December 31, 2024 and 2023, 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 short and long-term finance lease liability in Accrued expenses and Other non-current liabilities.
v3.25.0.1
STOCK INCENTIVE PLANS
 12 Months Ended
Dec. 31, 2024
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, 2024, there were 1.4 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 $62 million, $62 million, and $48 million in 2024, 2023 and 2022, respectively, and was primarily comprised of RSUs. Related income tax benefits recognized in earnings were $34 million, $34 million, and $19 million in 2024, 2023 and 2022, 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. The RSU grant date fair value is based on the closing price of the Company's common stock on the last trading day preceding the date of the grant. RSU expense for the years ended December 31, 2024, 2023 and 2022 was approximately $48 million, $43 million and $34 million, respectively.

The following table summarizes RSU activity (in millions of dollars, except for share and per share amounts):
202420232022
SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share
Beginning nonvested units172,984 $550.62 191,032 $409.77 202,321 $318.40 
Issued57,012 $1,008.98 81,174 $692.02 96,940 $520.67 
Canceled(10,221)$701.36 (7,943)$512.31 (17,038)$345.30 
Vested(83,575)$489.57 (91,279)$384.92 (91,191)$336.99 
Ending nonvested units136,200 $768.64 172,984 $550.62 191,032 $409.77 
Fair Value of Shares Vested$41 $35 $31 

As of December 31, 2024, there was $67 million of total unrecognized compensation expense related to nonvested RSUs the Company expects to recognize over a weighted average period of 2 years.
v3.25.0.1
CAPITAL STOCK
 12 Months Ended
Dec. 31, 2024
CAPITAL STOCK [Abstract]  
CAPITAL STOCK CAPITAL STOCK
The Company had no shares of preferred stock outstanding as of December 31, 2024 and 2023. The activity related to outstanding common stock and common stock held in treasury was as follows:
202420232022
Outstanding Common StockTreasury StockOutstanding Common StockTreasury StockOutstanding Common StockTreasury Stock
Balance at beginning of period49,317,402 60,341,817 50,256,323 59,402,896 51,220,205 58,439,014 
Exercise of stock options113,274 (113,274)139,189 (139,189)101,802 (101,802)
Settlement of restricted stock units – net of 39,118, 32,800 and 31,132 shares retained, respectively
79,400 (79,400)83,795 (83,795)64,649 (64,649)
Settlement of performance share units – net of 9,629, 18,521 and 10,359 shares retained, respectively
15,110 (15,110)28,135 (28,135)13,890 (13,890)
Purchase of treasury shares(1,192,316)1,192,316 (1,190,040)1,190,040 (1,144,223)1,144,223 
Balance at end of period48,332,870 61,326,349 49,317,402 60,341,817 50,256,323 59,402,896 
v3.25.0.1
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE)
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE)
The components of AOCE consisted of the following (in millions of dollars):
Foreign Currency Translation and OtherDefined Postretirement Benefit PlanOther Employment-related Benefit PlansTotalForeign Currency Translation Attributable to Noncontrolling InterestsAOCE Attributable to W.W. Grainger, Inc.
Balance at December 31, 2022 – net of tax$(320)$82 $(6)$(244)$(64)$(180)
Other comprehensive earnings (loss) before reclassifications – net of tax$(11)$8 $3 $— $(21)$21 
Amounts reclassified to net earnings$— $(13)$— $(13)$— $(13)
Net current period activity$(11)$(5)$3 $(13)$(21)$8 
Balance at December 31, 2023 – net of tax$(331)$77 $(3)$(257)$(85)$(172)
Other comprehensive earnings (loss) before reclassifications – net of tax$(137)$12 $— $(125)$(36)$(89)
Amounts reclassified to net earnings$— $(13)$— $(13)$— $(13)
Net current period activity$(137)$(1)$— $(138)$(36)$(102)
Balance at December 31, 2024 – net of tax$(468)$76 $(3)$(395)$(121)$(274)
v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Earnings before income taxes by geographical area consisted of the following (in millions of dollars):
For the Years Ended December 31,
202420232022
U.S.$2,265 $2,211 $1,903 
Foreign319 289 243 
Total
$2,584 $2,500 $2,146 


Income tax expense consisted of the following (in millions of dollars):
For the Years Ended December 31,
202420232022
Current income tax expense:
U.S. Federal
$404 $431 $374 
U.S. State
84 100 77 
Foreign
89 81 78 
Total current
577 612 529 
Deferred income tax (benefit) expense 18 (15)4 
Total income tax expense$595 $597 $533 
The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2024 and 2023 were as follows (in millions of dollars):
As of December 31,
20242023
Deferred tax assets:
Accrued expenses
172 177 
U.S. and foreign loss carryforwards82 84 
Accrued employment-related benefits
42 51 
Tax credit carryforward
20 22 
Other
23 30 
Deferred tax assets
339 364 
           Less valuation allowance(100)(93)
Deferred tax assets – net of valuation allowance$239 $271 
Deferred tax liabilities:
Property, buildings, equipment and other capital assets(216)(238)
Intangibles
(55)(58)
Inventory(16)(11)
Other
(14)(11)
Deferred tax liabilities
(301)(318)
Net deferred tax liability$(62)$(47)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets
$15 $10 
Noncurrent liabilities (foreign)(77)(57)
Net deferred tax liability$(62)$(47)
As of December 31, 2024 and 2023, the Company had $328 million and $335 million, respectively, of gross loss carryforwards related to foreign operations and U.S. transactions. Some of the loss carryforwards may expire at various dates through 2044. 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,
20242023
Balance at beginning of period$(93)$(71)
Increases primarily related to foreign NOLs(8)(5)
Releases primarily related to foreign NOLs— 1 
Foreign exchange rate changes1 (2)
Decrease related to U.S. foreign tax credits2 3 
Increase related to capital loss carryforwards(1)(19)
Other changes – net(1)— 
Balance at end of period$(100)$(93)

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,
202420232022
Federal income tax$543 $525 $451 
State income taxes – net of federal income tax benefit68 74 64 
Stock compensation(16)(16)(5)
Foreign rate difference33 31 26 
Change in valuation allowance(1)
2 6 7 
Other – net(35)(23)(10)
Income tax expense$595 $597 $533 
Effective tax rate23.0 %23.9 %24.8 %
(1) Net of changes in related tax attributes.

The decrease to the Company's effective tax rate for the year ended December 31, 2024 was primarily driven by the expiration of a statute of limitation period in 2024.

Foreign Undistributed Earnings
Estimated gross undistributed earnings of foreign subsidiaries as of December 31, 2024 and 2023, totaled $651 million and $544 million, respectively. 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,
202420232022
Balance at beginning of year$42 $41 $38 
Additions for tax positions related to the current year3 6 4 
Additions for tax positions of prior years— 1 2 
Reductions for tax positions of prior years(1)(1)— 
Reductions due to statute lapse(22)(3)(2)
Settlements, audit payments, refunds – net(1)(2)(1)
Balance at end of year$21 $42 $41 

The Company classifies the liability for tax uncertainties in deferred income taxes and tax uncertainties. Included in
this amount is $4 million as of December 31, 2024, 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. In 2024, 2023 and 2022, the changes to tax positions were primarily related to the impact of expiring statutes and current year state and local reserves.

The Company is regularly subject to examination of its federal income tax returns by the Internal Revenue Service (IRS). The Company’s 2021 and 2022 tax years are currently under IRS audit. Tax year 2023 is open. The Company is also subject to audit by state, local and foreign taxing authorities. Tax years 2012 through 2023 remain subject to state, local and foreign audits. The amount of liability associated with the Company's tax uncertainties may change within the next 12 months due to pending audit activity, expiring statute of limitations periods or tax payments.
v3.25.0.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company routinely evaluates whether its operating and reportable segments continue to reflect the way the chief operating decision maker (CODM) evaluates the business. The determination is based on: (1) how the Company’s CODM evaluates the performance of the business, including resource allocation decisions, and (2) whether discrete financial information for each reporting segment is available. The Company considers D.G. Macpherson, its Chief Executive Officer and Chairman of the Board, its CODM.

The CODM evaluates performance based on the results of the Company’s two reportable segments High-Touch Solutions N.A. and Endless Assortment. These reportable segments align with Grainger's go-to-market strategies and bifurcated business models of high-touch solutions and endless assortment that generate sales primarily through the distribution of MRO products. The remaining businesses 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.

The accounting policies of the Company’s reportable segments are the same as those described in the summary of significant accounting policies. For further discussion on Grainger’s accounting policies, see Note 1.

All expenses directly attributable to each reportable segment are included in the operating results for each segment. Operating segment performance is evaluated by Grainger's CODM based on operating earnings as disclosed on the Company's Consolidated Statement of Earnings as the key determinant of the economic return and resource allocation among the segments. The CODM is not regularly provided and does not evaluate the segments using total asset or capital expenditure information and it is therefore not disclosed.

The following is a summary of segment results for the twelve months ended December 31, 2024, 2023 and 2022 (in millions of dollars):
2024
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$13,720 $3,134 $16,854 
Reconciliation of net sales
Other net sales314 
   Total company net sales $17,168 
Less:
Cost of goods sold7,979 2,211 
Other segment items(2)
3,356 663 
   Segment operating earnings$2,385 $260 $2,645 
Reconciliation of operating earnings
Other operating earnings(8)
   Total company operating earnings$2,637 
2023
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$13,267 $2,916 $16,183 
Reconciliation of net sales
Other net sales295 
   Total company net sales $16,478 
Less:
Cost of goods sold7,721 2,052 
Other segment items(2)
3,212 631 
   Segment operating earnings$2,334 $233 $2,567 
Reconciliation of operating earnings
Other operating earnings (losses)(2)
   Total company operating earnings$2,565 

2022
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$12,182 $2,787 $14,969 
Reconciliation of net sales
Other net sales259 
   Total company net sales $15,228 
Less:
Cost of goods sold7,231 1,970 
Other segment items(2)
2,968 594 
   Segment operating earnings$1,983 $223 $2,206 
Reconciliation of operating earnings
Other operating earnings9 
   Total company operating earnings$2,215 
(1) Intersegment sales are recorded at values based on market prices, which creates intercompany profit sales that are eliminated within each segment to present only the impact of net sales to external customers.
(2) Other segment items for HTSNA and EA consist of selling, general and administrative expenses primarily comprised of payroll and benefits, marketing expense, depreciation, amortization and non-cash lease expense, corporate overhead expenses allocated to each segment based upon benefits received, occupancy and other miscellaneous expenses. Intersegment expenses including fees and certain incurred costs for shared services are also included within the amounts shown above.
Depreciation, amortization and non-cash lease expense presented below is related to long-lived assets, capitalized software and ROU assets. Long-lived assets consist of property, buildings and equipment.
202420232022
Depreciation, amortization and non-cash lease expense:
High-Touch Solutions N.A.$234 $206 $168 
Endless Assortment71 63 35 
Other6 8 3 
Total $311 $277 $206 

Following is revenue by geographic location for the twelve months ended December 31, 2024, 2023 and 2022 (in millions of dollars):
202420232022
Revenue by geographic location(1):
United States$13,947 $13,389 $12,325 
Japan1,893 1,797 1,719 
Canada661 646 621 
Other foreign countries667 646 563 
$17,168 $16,478 $15,228 
(1) Revenue presented above is attributed to the destination country where the customer is located.

The Company is a broad line distributor of MRO products. 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. For further information regarding the Company's sales by segment and major customer industry, see Note 2.
v3.25.0.1
CONTINGENCIES AND LEGAL MATTERS
 12 Months Ended
Dec. 31, 2024
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 trade and export matters; anti-bribery and corruption; and other matters and actions brought by team members, consumers, competitors, suppliers, customers, governmental entities and other third parties.

The Company remains in litigation involving KMCO, LLC (KMCO) as previously disclosed. The Company continues to contest the remaining KMCO-related lawsuits and cannot predict the timing, outcome or any estimate of possible loss or range of losses on the remaining KMCO lawsuits.

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.

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.
v3.25.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
On January 29, 2025, Grainger's Board of Directors declared a quarterly cash dividend of $2.05 per share of common stock, payable March 1, 2025 to shareholders of record on February 10, 2025.
On February 18, 2025 Grainger repaid the principal amount of $500 million for the 1.85% Senior Notes that matured in February 2025.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net earnings attributable to W.W. Grainger, Inc. $ 1,909 $ 1,829 $ 1,547
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Grainger has a dedicated cybersecurity team that works to prevent, detect, and respond to cybersecurity threats. The cybersecurity team is led by the Vice President and Chief Information Security Officer (CISO), who is responsible for assessing and managing material risks from cybersecurity threats. Grainger’s CISO has over 20 years of cybersecurity experience and maintains industry recognized security certifications. The cybersecurity team has implemented processes designed to assess, identify and manage material risks from cybersecurity threats and vulnerabilities to the Company’s security posture, including prioritizing and remediating such risks. The team also works to assess and manage cybersecurity risks by: (i) reviewing risks from cybersecurity threats with senior management; (ii) incorporating cybersecurity in its enterprise risk processes; (iii) establishing regular reviews of cybersecurity risks and mitigation efforts, including with the Audit Committee and the Board; and (iv) using third parties as needed for reviews and testing.

Grainger regularly identifies its enterprise risks. Grainger’s cybersecurity team reviews and updates its information security strategy and aligns plans based on cybersecurity prioritization with the identified top enterprise risks. Grainger engages with third parties in order to enhance, implement, assess and monitor its cybersecurity processes, controls, and posture.

Grainger has developed a cybersecurity risk intake process to facilitate the identification of cybersecurity risks, including those related to third-party vendors. Identified risks are tracked by management, and incorporated into mitigation plans.

Grainger has been subject to unauthorized access of systems on which certain supplier, customer, and team member information was stored, which have been deemed immaterial to our business and operations individually and in the aggregate. As of the date of this filing, Grainger does not believe that any risks from cybersecurity threats, including as a result of past cybersecurity incidents, have had, or are reasonably likely to have, a material adverse effect on Grainger, including its business strategy, results of operations or financial condition. However, Grainger, or third-party service providers engaged by Grainger, may be subject to cybersecurity incidents, or other unauthorized access of information systems in the future. There can be no assurance that any future cybersecurity incident or unauthorized access to or breach of these information systems will not be material to Grainger’s business, strategy, results of operations or financial condition. See Part I, Item 1A: Risk Factors of this Form 10-K.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Grainger has a dedicated cybersecurity team that works to prevent, detect, and respond to cybersecurity threats. The cybersecurity team is led by the Vice President and Chief Information Security Officer (CISO), who is responsible for assessing and managing material risks from cybersecurity threats. Grainger’s CISO has over 20 years of cybersecurity experience and maintains industry recognized security certifications. The cybersecurity team has implemented processes designed to assess, identify and manage material risks from cybersecurity threats and vulnerabilities to the Company’s security posture, including prioritizing and remediating such risks. The team also works to assess and manage cybersecurity risks by: (i) reviewing risks from cybersecurity threats with senior management; (ii) incorporating cybersecurity in its enterprise risk processes; (iii) establishing regular reviews of cybersecurity risks and mitigation efforts, including with the Audit Committee and the Board; and (iv) using third parties as needed for reviews and testing.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Audit Committee assists the Board in its oversight of the Company’s Enterprise Risk Management (ERM) program and processes, including with respect to cybersecurity.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Grainger has a dedicated cybersecurity team that works to prevent, detect, and respond to cybersecurity threats. The cybersecurity team is led by the Vice President and Chief Information Security Officer (CISO), who is responsible for assessing and managing material risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Grainger has a dedicated cybersecurity team that works to prevent, detect, and respond to cybersecurity threats. The cybersecurity team is led by the Vice President and Chief Information Security Officer (CISO), who is responsible for assessing and managing material risks from cybersecurity threats. Grainger’s CISO has over 20 years of cybersecurity experience and maintains industry recognized security certifications. The cybersecurity team has implemented processes designed to assess, identify and manage material risks from cybersecurity threats and vulnerabilities to the Company’s security posture, including prioritizing and remediating such risks. The team also works to assess and manage cybersecurity risks by: (i) reviewing risks from cybersecurity threats with senior management; (ii) incorporating cybersecurity in its enterprise risk processes; (iii) establishing regular reviews of cybersecurity risks and mitigation efforts, including with the Audit Committee and the Board; and (iv) using third parties as needed for reviews and testing.
Cybersecurity Risk Role of Management [Text Block]
Grainger has a dedicated cybersecurity team that works to prevent, detect, and respond to cybersecurity threats. The cybersecurity team is led by the Vice President and Chief Information Security Officer (CISO), who is responsible for assessing and managing material risks from cybersecurity threats. Grainger’s CISO has over 20 years of cybersecurity experience and maintains industry recognized security certifications. The cybersecurity team has implemented processes designed to assess, identify and manage material risks from cybersecurity threats and vulnerabilities to the Company’s security posture, including prioritizing and remediating such risks. The team also works to assess and manage cybersecurity risks by: (i) reviewing risks from cybersecurity threats with senior management; (ii) incorporating cybersecurity in its enterprise risk processes; (iii) establishing regular reviews of cybersecurity risks and mitigation efforts, including with the Audit Committee and the Board; and (iv) using third parties as needed for reviews and testing.
The Audit Committee assists the Board in its oversight of the Company’s Enterprise Risk Management (ERM) program and processes, including with respect to cybersecurity.
As part of its ERM oversight, the Board oversees and regularly reviews the Company’s programs and processes for cybersecurity risks, including the Company’s framework for preventing, detecting, and addressing cybersecurity incidents and identifying emerging risks both broadly and within related industries. The Company’s CISO routinely provides material cybersecurity updates to the Audit Committee and information to the Board.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Grainger has a dedicated cybersecurity team that works to prevent, detect, and respond to cybersecurity threats. The cybersecurity team is led by the Vice President and Chief Information Security Officer (CISO), who is responsible for assessing and managing material risks from cybersecurity threats.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Grainger’s CISO has over 20 years of cybersecurity experience and maintains industry recognized security certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Company’s CISO routinely provides material cybersecurity updates to the Audit Committee and information to the Board.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2024
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.
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 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
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, 2024, 2023 and 2022.

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 $52 million as of December 31, 2024 and 2023, and are reported as a reduction of Accounts receivable – net. Total accrued sales incentives were approximately $109 million and $114 million as of December 31, 2024 and 2023, 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, 2024 and 2023.
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. Total accrued vendor rebates were $150 million and $155 million as of December 31, 2024 and 2023, respectively, and are reported in Trade accounts payable.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, General and Administrative Expenses (SG&A)
Company SG&A is primarily comprised of payroll and benefits, advertising, depreciation and amortization, lease, indirect purchasing, supply chain and branch operations, technology, and selling expenses, as well as other types of general and administrative costs.
ADVERTISING
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 $750 million, $638 million and $519 million for 2024, 2023 and 2022, respectively.
STOCK INCENTIVE PLANS
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
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 cash equivalents to be short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
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. The Company uses the last-in, first-out (LIFO) method, valued at the lower of cost or market, to account for approximately 79% of total inventory and the first-in, first-out (FIFO) method, valued at the lower of cost or net realizable value, 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 market value. Estimated market 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 $804 million and $770 million higher than reported as of December 31, 2024 and December 31, 2023, respectively. Concurrently, net earnings would have increased by $26 million, $58 million and $139 million for the years ended December 31, 2024, 2023 and 2022, 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 3 to 15 years. Amounts expended for maintenance and repairs are charged to expense as incurred.
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, buildings and equipment (including branches, warehouses, DCs and office space) 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 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 1 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 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 3 or 5 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 records a liability when a particular contingency is both probable and estimable. If the probable loss cannot be reasonably estimated, no accrual is recorded, but the loss contingency and the reasons to the effect that
it cannot be reasonably estimated are disclosed. If a loss is reasonably possible, the Company will provide disclosure to that effect.
NEW ACCOUNTING STANDARDS
New Accounting Standards

Accounting Pronouncements Recently Adopted
In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update requires public entities to disclose significant segment expenses and other segment items on an annual and interim basis. The effective date is for fiscal years beginning after December 15, 2023, with the option to early adopt prior to the effective date and requires application on a retrospective basis. The Company adopted this ASU effective December 31, 2024 on a retrospective basis and it did not have a material impact on the Consolidated Financial Statements. For the related segment reporting disclosure, see Note 12.

Accounting Pronouncements Recently Issued
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. The effective date is for fiscal years beginning after December 15, 2024, with the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on the related income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires public entities to disclose required information for inventory purchases, employee compensation, depreciation, intangible asset amortization and selling expense. The effective date is for fiscal years beginning after December 15, 2026, with the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on the related income statement line items disclosures.
v3.25.0.1
REVENUE (Tables)
 12 Months Ended
Dec. 31, 2024
REVENUE [Abstract]  
Disaggregation of Revenue
The following tables present the Company's percentage of revenue by reportable segment and by customer industry:
 Twelve Months Ended December 31,
2024
2023
2022(1)
 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)
Manufacturing31 %29 %31 %30 %30 %30 %31 %30 %30 %
Government19 %3 %16 %19 %3 %16 %18 %3 %15 %
Wholesale7 %18 %9 %7 %16 %9 %7 %16 %9 %
Commercial Services7 %12 %8 %7 %12 %8 %7 %13 %8 %
Contractors5 %12 %6 %5 %12 %6 %5 %12 %6 %
Healthcare7 %2 %6 %7 %2 %6 %7 %2 %6 %
Retail4 %4 %4 %4 %4 %4 %4 %4 %4 %
Transportation4 %2 %4 %4 %2 %4 %4 %2 %4 %
Utilities3 %2 %3 %3 %2 %3 %3 %2 %3 %
Warehousing3 %— %2 %4 %— %3 %5 %— %4 %
Other(3)
10 %16 %11 %10 %17 %11 %9 %16 %11 %
Total net sales100 % 100 % 100 %100 %100 %100 %100 %100 %100 %
Percent of total company revenue80 %18 %100 %81 %18 %100 %80 %18 %100 %
(1) Customer industry results for the twelve months ended December 31, 2022 were reclassified to reflect the Company's current classifications, which primarily uses the North American Industry Classification System (NAICS) beginning January 1, 2023.
(2) Total Company includes Other, which includes the Cromwell business. Other accounts for approximately 2%, 1% and 2% of revenue for the twelve months ended December 31, 2024, 2023 and 2022, respectively.
(3) Other primarily includes revenue from industries and customers that are not material individually, including hospitality, restaurants, property management and natural resources.
v3.25.0.1
PROPERTY, BUILDINGS AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property, Buildings and Equipment
Grainger's property, buildings and equipment consisted of the following (in millions of dollars):
 As of
 December 31, 2024 December 31, 2023
Land and land improvements$415  $397 
Building, structures and improvements1,723  1,469 
Furniture, fixtures, machinery and equipment1,945  1,852 
Property, buildings and equipment$4,083  $3,718 
Less: Accumulated depreciation and amortization2,156  2,060 
Property, buildings and equipment, net$1,927  $1,658 
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2024
GOODWILL AND OTHER INTANGIBLES [Abstract]  
Schedule of Goodwill
The Company's balances and changes in the carrying amount of goodwill by segment are as follows (in millions of dollars):
High-Touch Solutions N.A.Endless AssortmentTotal
Balance at December 31, 2022$313 $58 $371 
Translation2 (3)(1)
Balance at December 31, 2023315 55 370 
Translation(9)(6)(15)
Balance at December 31, 2024$306 $49 $355 
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,
20242023
Weighted average lifeGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Customer lists and relationships10.7 years$164 $155 $9 $166 $153 $13 
Trademarks, trade names and other14.9 years31 24 7 31 23 8 
Non-amortized trade names and otherIndefinite18 — 18 20 — 20 
Capitalized software4.3 years714 505 209 659 466 193 
Total intangible assets6.1 years$927 $684 $243 $876 $642 $234 
Schedule of Estimated Amortization Expense
Estimated amortization expense for future periods is as follows (in millions of dollars):
Year Expense
2025$76 
202662 
202748 
202830 
20299 
Thereafter— 
Total$225 
v3.25.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Total debt, including long-term, current maturities and debt issuance costs and discounts – net, consisted of the following (in millions of dollars):
As of December 31,
 20242023
Carrying ValueFair Value Carrying ValueFair Value
4.60% senior notes due 2045
$1,000 $894 $1,000 $967 
1.85% senior notes due 2025
— — 500 483 
4.45% senior notes due 2034
500 477 — — 
3.75% senior notes due 2046
400 332 400 336 
4.20% senior notes due 2047
400 312 400 361 
Debt issuance costs – net of amortization and other(21)(21)(34)(34)
Long-term debt2,279 1,994 2,266 2,113 
1.85% senior notes due 2025
500 498 — — 
Japanese yen term loan— — 32 32 
Other(1)(1)2 2 
Current maturities$499 $497 $34 $34 
Total debt$2,778 $2,491 $2,300 $2,147 
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
2025$502 
20261 
2027— 
2028— 
2029— 
Thereafter2,300 
Total$2,803 
v3.25.0.1
EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2024
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,
202420232022
SG&A
Service cost$2 $2 $4 
Other (income) expense
Interest cost5 5 4 
Expected return on assets(7)(6)(8)
Amortization of prior service credit(9)(10)(10)
Amortization of unrecognized gains(8)(7)(9)
Net periodic benefits$(17)$(16)$(19)
Schedule of Accumulated and Projected Benefit Obligations
Reconciliations of the beginning and ending balances of the postretirement benefit asset, 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 follow (in millions of dollars):
20242023
Benefit obligation at beginning of year$114 $112 
Service cost2 2 
Interest cost5 5 
Plan participants' contributions3 3 
Actuarial (gain) loss(12)2 
Benefits paid(9)(10)
Benefit obligation at end of year$103 $114 
Plan assets available for benefits at beginning of year$173 $162 
Actual returns on plan assets11 18 
Plan participants' contributions3 3 
Benefits paid(9)(10)
Plan assets available for benefits at end of year178 173 
Noncurrent postretirement benefit asset$75 $59 
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,
20242023
Prior service credit$13 $23 
Unrecognized gains88 79 
Deferred tax liability(25)(25)
Net accumulated gains
$76 $77 
Schedule of Assumptions Used
The following assumptions were used to determine net periodic benefit costs as of January 1:
For the Years Ended December 31,
202420232022
Discount rate4.73 %4.92 %2.57 %
Expected long-term rate of return on plan assets – net of tax4.04 %4.04 %4.04 %
Initial healthcare cost trend rate (pre age 65)7.20 %7.50 %6.50 %
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached203320332030

The following assumptions were used to determine benefit obligations as of December 31:
202420232022
Discount rate5.39 %4.73 %4.92 %
Expected long-term rate of return on plan assets – net of tax4.04 %4.04 %4.04 %
Initial healthcare cost trend rate (pre age 65)6.90 %7.20 %7.50 %
Ultimate healthcare cost trend rate4.50 %4.50 %4.50 %
Year ultimate healthcare cost trend rate reached203320332033
Schedule of Allocation of Plan Assets
The plan assets available for benefits consisted of the following as of December 31 (in millions of dollars):
20242023
Asset class
Level 1 inputs:
Mutual funds - corporate bonds fund10 10 
Level 2 Inputs:
Fixed Income:
Corporate bonds48 56 
Government/municipal bonds8 9 
Equity funds101 88 
Plan assets167 163 
Trust assets11 10 
Plan assets available for benefits$178 $173 
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
2025$9 
20269 
20279 
20288 
20298 
2030-203441 
Total$84 
v3.25.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Assets and Liabilities
Information related to operating leases is as follows (in millions of dollars):
As of December 31,
20242023
Right-of-use assets
Operating lease right-of-use$371 $429 
Operating lease liabilities
Operating lease liability78 71 
Long-term operating lease liability327 381 
Total operating lease liabilities$405 $452 
Schedule of Operating Lease Information
As of December 31,
20242023
Weighted average remaining lease term6 years7 years
Weighted average incremental borrowing rate2.57 %2.19 %
Cash paid for operating leases$96 $88 
Right-of-use assets obtained in exchange for operating lease obligations$48 $161 
Schedule of Maturities of Operating Lease Liabilities
The remaining maturity of existing lease liabilities as of December 31, 2024 are as follows (in millions of dollars):

YearOperating Leases
2025$91 
202685 
202772 
202863 
202950 
Thereafter76 
Total lease payments
437 
Less interest
32 
Present value of lease liabilities
$405 
v3.25.0.1
STOCK INCENTIVE PLANS (Tables)
 12 Months Ended
Dec. 31, 2024
STOCK INCENTIVE PLANS [Abstract]  
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity
The following table summarizes RSU activity (in millions of dollars, except for share and per share amounts):
202420232022
SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share		SharesWeighted
Average Price Per Share
Beginning nonvested units172,984 $550.62 191,032 $409.77 202,321 $318.40 
Issued57,012 $1,008.98 81,174 $692.02 96,940 $520.67 
Canceled(10,221)$701.36 (7,943)$512.31 (17,038)$345.30 
Vested(83,575)$489.57 (91,279)$384.92 (91,191)$336.99 
Ending nonvested units136,200 $768.64 172,984 $550.62 191,032 $409.77 
Fair Value of Shares Vested$41 $35 $31 
v3.25.0.1
CAPITAL STOCK (Tables)
 12 Months Ended
Dec. 31, 2024
CAPITAL STOCK [Abstract]  
Schedule of Capital Stock The activity related to outstanding common stock and common stock held in treasury was as follows:
202420232022
Outstanding Common StockTreasury StockOutstanding Common StockTreasury StockOutstanding Common StockTreasury Stock
Balance at beginning of period49,317,402 60,341,817 50,256,323 59,402,896 51,220,205 58,439,014 
Exercise of stock options113,274 (113,274)139,189 (139,189)101,802 (101,802)
Settlement of restricted stock units – net of 39,118, 32,800 and 31,132 shares retained, respectively
79,400 (79,400)83,795 (83,795)64,649 (64,649)
Settlement of performance share units – net of 9,629, 18,521 and 10,359 shares retained, respectively
15,110 (15,110)28,135 (28,135)13,890 (13,890)
Purchase of treasury shares(1,192,316)1,192,316 (1,190,040)1,190,040 (1,144,223)1,144,223 
Balance at end of period48,332,870 61,326,349 49,317,402 60,341,817 50,256,323 59,402,896 
v3.25.0.1
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) (Tables)
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Schedule of AOCE
The components of AOCE consisted of the following (in millions of dollars):
Foreign Currency Translation and OtherDefined Postretirement Benefit PlanOther Employment-related Benefit PlansTotalForeign Currency Translation Attributable to Noncontrolling InterestsAOCE Attributable to W.W. Grainger, Inc.
Balance at December 31, 2022 – net of tax$(320)$82 $(6)$(244)$(64)$(180)
Other comprehensive earnings (loss) before reclassifications – net of tax$(11)$8 $3 $— $(21)$21 
Amounts reclassified to net earnings$— $(13)$— $(13)$— $(13)
Net current period activity$(11)$(5)$3 $(13)$(21)$8 
Balance at December 31, 2023 – net of tax$(331)$77 $(3)$(257)$(85)$(172)
Other comprehensive earnings (loss) before reclassifications – net of tax$(137)$12 $— $(125)$(36)$(89)
Amounts reclassified to net earnings$— $(13)$— $(13)$— $(13)
Net current period activity$(137)$(1)$— $(138)$(36)$(102)
Balance at December 31, 2024 – net of tax$(468)$76 $(3)$(395)$(121)$(274)
v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Taxes by Geographical Area
Earnings before income taxes by geographical area consisted of the following (in millions of dollars):
For the Years Ended December 31,
202420232022
U.S.$2,265 $2,211 $1,903 
Foreign319 289 243 
Total
$2,584 $2,500 $2,146 
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,
202420232022
Current income tax expense:
U.S. Federal
$404 $431 $374 
U.S. State
84 100 77 
Foreign
89 81 78 
Total current
577 612 529 
Deferred income tax (benefit) expense 18 (15)4 
Total income tax expense$595 $597 $533 
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, 2024 and 2023 were as follows (in millions of dollars):
As of December 31,
20242023
Deferred tax assets:
Accrued expenses
172 177 
U.S. and foreign loss carryforwards82 84 
Accrued employment-related benefits
42 51 
Tax credit carryforward
20 22 
Other
23 30 
Deferred tax assets
339 364 
           Less valuation allowance(100)(93)
Deferred tax assets – net of valuation allowance$239 $271 
Deferred tax liabilities:
Property, buildings, equipment and other capital assets(216)(238)
Intangibles
(55)(58)
Inventory(16)(11)
Other
(14)(11)
Deferred tax liabilities
(301)(318)
Net deferred tax liability$(62)$(47)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets
$15 $10 
Noncurrent liabilities (foreign)(77)(57)
Net deferred tax liability$(62)$(47)
Summary of Valuation Allowance Changes
The Company's valuation allowance changed as follows (in millions of dollars):
For the Years Ended December 31,
20242023
Balance at beginning of period$(93)$(71)
Increases primarily related to foreign NOLs(8)(5)
Releases primarily related to foreign NOLs— 1 
Foreign exchange rate changes1 (2)
Decrease related to U.S. foreign tax credits2 3 
Increase related to capital loss carryforwards(1)(19)
Other changes – net(1)— 
Balance at end of period$(100)$(93)
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,
202420232022
Federal income tax$543 $525 $451 
State income taxes – net of federal income tax benefit68 74 64 
Stock compensation(16)(16)(5)
Foreign rate difference33 31 26 
Change in valuation allowance(1)
2 6 7 
Other – net(35)(23)(10)
Income tax expense$595 $597 $533 
Effective tax rate23.0 %23.9 %24.8 %
(1) Net of changes in related tax attributes.
Schedule of Unrecognized Tax Benefits Roll Forward
The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):
For the Years Ended December 31,
202420232022
Balance at beginning of year$42 $41 $38 
Additions for tax positions related to the current year3 6 4 
Additions for tax positions of prior years— 1 2 
Reductions for tax positions of prior years(1)(1)— 
Reductions due to statute lapse(22)(3)(2)
Settlements, audit payments, refunds – net(1)(2)(1)
Balance at end of year$21 $42 $41 
v3.25.0.1
SEGMENT INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Summary of Segment Results
The following is a summary of segment results for the twelve months ended December 31, 2024, 2023 and 2022 (in millions of dollars):
2024
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$13,720 $3,134 $16,854 
Reconciliation of net sales
Other net sales314 
   Total company net sales $17,168 
Less:
Cost of goods sold7,979 2,211 
Other segment items(2)
3,356 663 
   Segment operating earnings$2,385 $260 $2,645 
Reconciliation of operating earnings
Other operating earnings(8)
   Total company operating earnings$2,637 
2023
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$13,267 $2,916 $16,183 
Reconciliation of net sales
Other net sales295 
   Total company net sales $16,478 
Less:
Cost of goods sold7,721 2,052 
Other segment items(2)
3,212 631 
   Segment operating earnings$2,334 $233 $2,567 
Reconciliation of operating earnings
Other operating earnings (losses)(2)
   Total company operating earnings$2,565 

2022
High-Touch Solutions N.AEndless AssortmentTotal
Net sales(1)
$12,182 $2,787 $14,969 
Reconciliation of net sales
Other net sales259 
   Total company net sales $15,228 
Less:
Cost of goods sold7,231 1,970 
Other segment items(2)
2,968 594 
   Segment operating earnings$1,983 $223 $2,206 
Reconciliation of operating earnings
Other operating earnings9 
   Total company operating earnings$2,215 
(1) Intersegment sales are recorded at values based on market prices, which creates intercompany profit sales that are eliminated within each segment to present only the impact of net sales to external customers.
(2) Other segment items for HTSNA and EA consist of selling, general and administrative expenses primarily comprised of payroll and benefits, marketing expense, depreciation, amortization and non-cash lease expense, corporate overhead expenses allocated to each segment based upon benefits received, occupancy and other miscellaneous expenses. Intersegment expenses including fees and certain incurred costs for shared services are also included within the amounts shown above.
Depreciation, amortization and non-cash lease expense presented below is related to long-lived assets, capitalized software and ROU assets. Long-lived assets consist of property, buildings and equipment.
202420232022
Depreciation, amortization and non-cash lease expense:
High-Touch Solutions N.A.$234 $206 $168 
Endless Assortment71 63 35 
Other6 8 3 
Total $311 $277 $206 
Significant Reconciling Items from Segments to Consolidated
Following is revenue by geographic location for the twelve months ended December 31, 2024, 2023 and 2022 (in millions of dollars):
202420232022
Revenue by geographic location(1):
United States$13,947 $13,389 $12,325 
Japan1,893 1,797 1,719 
Canada661 646 621 
Other foreign countries667 646 563 
$17,168 $16,478 $15,228 
(1) Revenue presented above is attributed to the destination country where the customer is located.
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Service fee revenue (approximately) 1.00% 1.00% 1.00%
Accrued sales returns $ 52    
Accrued sales incentives 109 $ 114  
Accrued vendor rebates 150 155  
Advertising expense $ 750 638 $ 519
Percentage of LIFO inventory 79.00%    
Inventory, LIFO reserve $ 804 770  
Inventory, LIFO reserve, effect on income, net $ 26 $ 58 $ 139
Minimum      
Operating lease renewal term 1 year    
Capitalized software amortization period 3 years    
Minimum | Furniture, fixtures, machinery and equipment      
Useful life   3 years  
Minimum | Buildings, Structures And Improvement      
Useful life 10 years    
Maximum      
Operating lease renewal term 30 years    
Capitalized software amortization period 5 years    
Maximum | Furniture, fixtures, machinery and equipment      
Useful life   15 years  
Maximum | Buildings, Structures And Improvement      
Useful life 50 years    
v3.25.0.1
REVENUE (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
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%
Percentage of company-wide revenue 2.00% 1.00% 2.00%
Manufacturing      
Disaggregation of Revenue [Line Items]      
Total net sales 31.00% 30.00% 30.00%
Government      
Disaggregation of Revenue [Line Items]      
Total net sales 16.00% 16.00% 15.00%
Wholesale      
Disaggregation of Revenue [Line Items]      
Total net sales 9.00% 9.00% 9.00%
Commercial Services      
Disaggregation of Revenue [Line Items]      
Total net sales 8.00% 8.00% 8.00%
Contractors      
Disaggregation of Revenue [Line Items]      
Total net sales 6.00% 6.00% 6.00%
Healthcare      
Disaggregation of Revenue [Line Items]      
Total net sales 6.00% 6.00% 6.00%
Retail      
Disaggregation of Revenue [Line Items]      
Total net sales 4.00% 4.00% 4.00%
Transportation      
Disaggregation of Revenue [Line Items]      
Total net sales 4.00% 4.00% 4.00%
Utilities      
Disaggregation of Revenue [Line Items]      
Total net sales 3.00% 3.00% 3.00%
Warehousing      
Disaggregation of Revenue [Line Items]      
Total net sales 2.00% 3.00% 4.00%
Other      
Disaggregation of Revenue [Line Items]      
Total net sales 11.00% 11.00% 11.00%
High-Touch Solutions N.A.      
Disaggregation of Revenue [Line Items]      
Total net sales 100.00% 100.00% 100.00%
Percent of total company revenue 80.00% 81.00% 80.00%
High-Touch Solutions N.A. | Manufacturing      
Disaggregation of Revenue [Line Items]      
Total net sales 31.00% 30.00% 31.00%
High-Touch Solutions N.A. | Government      
Disaggregation of Revenue [Line Items]      
Total net sales 19.00% 19.00% 18.00%
High-Touch Solutions N.A. | Wholesale      
Disaggregation of Revenue [Line Items]      
Total net sales 7.00% 7.00% 7.00%
High-Touch Solutions N.A. | Commercial Services      
Disaggregation of Revenue [Line Items]      
Total net sales 7.00% 7.00% 7.00%
High-Touch Solutions N.A. | Contractors      
Disaggregation of Revenue [Line Items]      
Total net sales 5.00% 5.00% 5.00%
High-Touch Solutions N.A. | Healthcare      
Disaggregation of Revenue [Line Items]      
Total net sales 7.00% 7.00% 7.00%
High-Touch Solutions N.A. | Retail      
Disaggregation of Revenue [Line Items]      
Total net sales 4.00% 4.00% 4.00%
High-Touch Solutions N.A. | Transportation      
Disaggregation of Revenue [Line Items]      
Total net sales 4.00% 4.00% 4.00%
High-Touch Solutions N.A. | Utilities      
Disaggregation of Revenue [Line Items]      
Total net sales 3.00% 3.00% 3.00%
High-Touch Solutions N.A. | Warehousing      
Disaggregation of Revenue [Line Items]      
Total net sales 3.00% 4.00% 5.00%
High-Touch Solutions N.A. | Other      
Disaggregation of Revenue [Line Items]      
Total net sales 10.00% 10.00% 9.00%
Endless Assortment      
Disaggregation of Revenue [Line Items]      
Total net sales 100.00% 100.00% 100.00%
Percent of total company revenue 18.00% 18.00% 18.00%
Endless Assortment | Manufacturing      
Disaggregation of Revenue [Line Items]      
Total net sales 29.00% 30.00% 30.00%
Endless Assortment | Government      
Disaggregation of Revenue [Line Items]      
Total net sales 3.00% 3.00% 3.00%
Endless Assortment | Wholesale      
Disaggregation of Revenue [Line Items]      
Total net sales 18.00% 16.00% 16.00%
Endless Assortment | Commercial Services      
Disaggregation of Revenue [Line Items]      
Total net sales 12.00% 12.00% 13.00%
Endless Assortment | Contractors      
Disaggregation of Revenue [Line Items]      
Total net sales 12.00% 12.00% 12.00%
Endless Assortment | Healthcare      
Disaggregation of Revenue [Line Items]      
Total net sales 2.00% 2.00% 2.00%
Endless Assortment | Retail      
Disaggregation of Revenue [Line Items]      
Total net sales 4.00% 4.00% 4.00%
Endless Assortment | Transportation      
Disaggregation of Revenue [Line Items]      
Total net sales 2.00% 2.00% 2.00%
Endless Assortment | Utilities      
Disaggregation of Revenue [Line Items]      
Total net sales 2.00% 2.00% 2.00%
Endless Assortment | Warehousing      
Disaggregation of Revenue [Line Items]      
Total net sales 0.00% 0.00% 0.00%
Endless Assortment | Other      
Disaggregation of Revenue [Line Items]      
Total net sales 16.00% 17.00% 16.00%
v3.25.0.1
PROPERTY, BUILDINGS AND EQUIPMENT - Schedule of Property, Buildings and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment $ 4,083 $ 3,718
Less: Accumulated depreciation and amortization 2,156 2,060
Property, buildings and equipment, net 1,927 1,658
Land and land improvements    
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment 415 397
Building, structures and improvements    
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment 1,723 1,469
Furniture, fixtures, machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment $ 1,945 $ 1,852
v3.25.0.1
PROPERTY, BUILDINGS AND EQUIPMENT- Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation $ 164 $ 146 $ 139
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Goodwill $ 355 $ 370 $ 371
Cumulative goodwill impairments 137    
Impairment charges 0 0 0
Amortization expense, intangible assets 70 64 $ 61
Reporting Unit, Canada      
Segment Reporting Information [Line Items]      
Goodwill $ 114 $ 124  
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Balances and Changes in Carrying Amounts of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 370 $ 371
Translation (15) (1)
Goodwill, ending balance 355 370
High-Touch Solutions N.A.    
Goodwill [Roll Forward]    
Goodwill, beginning balance 315 313
Translation (9) 2
Goodwill, ending balance 306 315
Endless Assortment    
Goodwill [Roll Forward]    
Goodwill, beginning balance 55 58
Translation (6) (3)
Goodwill, ending balance $ 49 $ 55
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets included in Other assets and intangibles (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Total intangible assets, gross $ 927 $ 876
Finite-lived intangible assets, accumulated amortization 684 642
Total 225  
Total intangible assets, net 243 234
Customer lists and relationships    
Finite-lived intangible assets, gross 164 166
Finite-lived intangible assets, accumulated amortization 155 153
Total 9 13
Trademarks, trade names and other    
Finite-lived intangible assets, gross 31 31
Finite-lived intangible assets, accumulated amortization 24 23
Total 7 8
Non-amortized trade names and other    
Finite-lived intangible assets, gross 18 20
Finite-lived intangible assets, accumulated amortization 0 0
Indefinite-lived intangible assets, carrying amount 18 20
Capitalized software    
Finite-lived intangible assets, gross 714 659
Finite-lived intangible assets, accumulated amortization 505 466
Total $ 209 $ 193
Weighted average life    
Finite-lived intangible assets, useful life 6 years 1 month 6 days  
Weighted average life | Customer lists and relationships    
Finite-lived intangible assets, useful life 10 years 8 months 12 days  
Weighted average life | Trademarks, trade names and other    
Finite-lived intangible assets, useful life 14 years 10 months 24 days  
Weighted average life | Capitalized software    
Finite-lived intangible assets, useful life 4 years 3 months 18 days  
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS Estimated amortization expense (Details)
$ in Millions
Dec. 31, 2024
USD ($)
GOODWILL AND OTHER INTANGIBLES [Abstract]  
2025 $ 76
2026 62
2027 48
2028 30
2029 9
Thereafter 0
Total $ 225
v3.25.0.1
DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2023
Dec. 31, 2022
Carrying Value        
Long-term debt $ 2,279   $ 2,266  
Current maturities 499   34  
Total debt 2,778   2,300  
Fair Value        
Current maturities 497   34  
Total debt 2,491   2,147  
Japanese yen term loan        
Carrying Value        
Short-term debt 0   32  
Fair Value        
Short-term debt 0   32  
Other        
Carrying Value        
Other (1)   2  
Fair Value        
Other (1)   2  
Senior notes        
Carrying Value        
Debt issuance costs – net of amortization and other (21)   (34)  
Long-term debt 2,279   2,266  
Fair Value        
Debt issuance costs – net of amortization and other (21)   (34)  
Long-term debt $ 1,994   2,113  
Unsecured Senior Notes, 4.60% | Senior notes        
Debt Instrument [Line Items]        
Stated interest rate 4.60%      
Carrying Value        
Long-term debt, gross $ 1,000   1,000  
Fair Value        
Long-term debt, gross 894   967  
Unsecured Senior Notes, 1.85% | Senior notes        
Carrying Value        
Short-term debt 500   0  
Fair Value        
Short-term debt $ 498   $ 0  
Unsecured Senior Notes, 1.85% | Senior notes        
Debt Instrument [Line Items]        
Stated interest rate 1.85% 1.85% 1.85% 1.85%
Carrying Value        
Long-term debt, gross $ 0   $ 500  
Fair Value        
Long-term debt, gross $ 0   483  
Unsecured Senior Notes, 4.45% | Senior notes        
Debt Instrument [Line Items]        
Stated interest rate 4.45% 4.45%    
Carrying Value        
Long-term debt, gross $ 500   0  
Fair Value        
Long-term debt, gross $ 477   0  
Unsecured Senior Notes, 3.75% | Senior notes        
Debt Instrument [Line Items]        
Stated interest rate 3.75%      
Carrying Value        
Long-term debt, gross $ 400   400  
Fair Value        
Long-term debt, gross $ 332   336  
Unsecured Senior Notes, 4.20% | Senior notes        
Debt Instrument [Line Items]        
Stated interest rate 4.20%      
Carrying Value        
Long-term debt, gross $ 400   400  
Fair Value        
Long-term debt, gross $ 312   $ 361  
v3.25.0.1
DEBT - Narrative (Details)
¥ in Billions
 1 Months Ended
Feb. 29, 2020
USD ($)
Dec. 31, 2024
USD ($)
Sep. 30, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
Dec. 31, 2020
USD ($)
Aug. 31, 2020
JPY (¥)
Debt Instrument [Line Items]              
Debt instrument, unamortized discount (premium) and debt issuance costs, net   $ 22,000,000   $ 19,000,000      
Interest Rate Swap              
Debt Instrument [Line Items]              
Derivative, notional amount   450,000,000          
Domestic Line of Credit | 5-Year Unsecured Revolving Line Of Credit              
Debt Instrument [Line Items]              
Line of credit, outstanding   $ 0   $ 0      
Senior notes              
Debt Instrument [Line Items]              
Face amount of debt     $ 500,000,000     $ 2,300,000,000  
Senior notes | Unsecured Senior Notes, 4.45%              
Debt Instrument [Line Items]              
Stated interest rate   4.45% 4.45%        
Senior notes | Unsecured Senior Notes, 1.85%              
Debt Instrument [Line Items]              
Stated interest rate   1.85% 1.85% 1.85% 1.85%    
Japanese yen term loan | Term Loan Agreement, 0.05%              
Debt Instrument [Line Items]              
Face amount of debt | ¥             ¥ 9
Revolving credit facility | Line of credit              
Debt Instrument [Line Items]              
Debt, term 5 years            
Maximum borrowing capacity $ 1,250,000,000            
Increase in maximum borrowing capacity   $ 1,875,000,000          
v3.25.0.1
DEBT - SCHEDULED AGGREGATE PRINCIPAL PAYMENTS (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Payment Amount  
2025 $ 502
2026 1
2027 0
2028 0
2029 0
Thereafter 2,300
Total $ 2,803
v3.25.0.1
EMPLOYEE BENEFITS - Defined Contribution Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
EMPLOYEE BENEFITS [Abstract]      
Profit sharing automatic contribution percentage   6.00%  
Profit sharing plan expense $ 91 $ 85 $ 87
Defined contribution plans, expense $ 20 $ 21 $ 11
Liability for future policy benefit, weighted-average duration 10 years    
v3.25.0.1
EMPLOYEE BENEFITS - Postretirement Benefits (Details) - Postretirement Benefits - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Postretirement Benefits      
Service cost $ 2 $ 2 $ 4
Interest cost 5 5 4
Expected return on assets (7) (6) (8)
Amortization of prior service credits (9) (10) (10)
Amortization of unrecognized gains (8) (7) (9)
Net periodic (benefits) costs (17) (16) (19)
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year 114 112  
Service cost 2 2 4
Interest cost 5 5 4
Plan participants' contributions 3 3  
Actuarial (gain) loss (12) 2  
Benefits paid (9) (10)  
Benefit obligation at end of year 103 114 112
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets available for benefits at beginning of year 173 162  
Actual returns on plan assets 11 18  
Plan participants' contributions 3 3  
Benefits paid (9) (10)  
Plan assets available for benefits at end of year 178 173 $ 162
Noncurrent postretirement benefit asset 75 59  
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]      
Prior service credit 13 23  
Unrecognized gains 88 79  
Deferred tax liability (25) (25)  
Net accumulated gains $ 76 $ 77  
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]      
Discount rate 4.73% 4.92% 2.57%
Expected long-term rate of return on plan assets – net of tax 4.04% 4.04% 4.04%
Initial healthcare cost trend rate (pre age 65) 7.20% 7.50% 6.50%
Ultimate healthcare cost trend rate 4.50% 4.50% 4.50%
Year ultimate healthcare cost trend rate reached 2033 2033 2030
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Discount rate 5.39% 4.73% 4.92%
Expected long-term rate of return on plan assets – net of tax 4.04% 4.04% 4.04%
Initial healthcare cost trend rate (pre age 65) 6.90% 7.20% 7.50%
Ultimate healthcare cost trend rate 4.50% 4.50% 4.50%
Year ultimate healthcare cost trend rate reached 2033 2033 2033
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]      
2025 $ 9    
2026 9    
2027 9    
2028 8    
2029 8    
2030-2034 41    
Total $ 84    
v3.25.0.1
EMPLOYEE BENEFITS - Narrative (Details)
Dec. 31, 2024
Fixed Income Securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Plan allocation 65.00%
Defined Benefit Plan, Equity Securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Plan allocation 35.00%
v3.25.0.1
EMPLOYEE BENEFITS - Summary of Plan Assets (Details) - Postretirement Benefits - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 178 $ 173 $ 162
Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 167 163  
Mutual funds - corporate bonds fund      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 1 [Member]    
Plan assets $ 10 10  
Corporate bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 2 [Member]    
Plan assets $ 48 56  
Government/municipal bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 2 [Member]    
Plan assets $ 8 9  
Equity funds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Fair Value, Inputs, Level 2 [Member]    
Plan assets $ 101 88  
Trust Assets and Liabilities, Net      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan assets $ 11 $ 10  
v3.25.0.1
LEASES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Rent expense $ 103 $ 102 $ 93
Sublease income $ 2 $ 2 $ 2
v3.25.0.1
LEASES - Schedule of Operating Lease Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease right-of-use $ 371 $ 429
Operating lease liability 78 71
Long-term operating lease liability 327 381
Total operating lease liabilities $ 405 $ 452
Weighted average remaining lease term 6 years 7 years
Weighted average incremental borrowing rate 2.57% 2.19%
Cash paid for operating leases $ 96 $ 88
ROU assets obtained in exchange for operating lease obligations $ 48 $ 161
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  
v3.25.0.1
LEASES - Schedule of Maturities of Operating Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
2025 $ 91  
2026 85  
2027 72  
2028 63  
2029 50  
Thereafter 76  
Total lease payments 437  
Less interest 32  
Present value of lease liabilities $ 405 $ 452
v3.25.0.1
STOCK INCENTIVE PLANS - Narrative (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares of common stock available for grant under stock incentive plans (in shares) 1.4    
Pretax stock-based compensation expense $ 62 $ 62 $ 48
Income tax benefits recognized in earnings for stock-based compensation expense 34 34 19
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
RSU expense 48 $ 43 $ 34
Unrecognized compensation $ 67    
Weighted average period to recognize (in years) 2 years    
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    
v3.25.0.1
STOCK INCENTIVE PLANS - Restricted Stock Units (Details) - Restricted Stock Units - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]      
Outstanding at beginning of period (in shares) 172,984 191,032 202,321
Issued (in shares) 57,012 81,174 96,940
Canceled (in shares) (10,221) (7,943) (17,038)
Vested (in shares) (83,575) (91,279) (91,191)
Outstanding at end of period (in shares) 136,200 172,984 191,032
Weighted Average Price Per Share [Abstract]      
Outstanding at beginning of period, weighted average price per share (in dollars per share) $ 550.62 $ 409.77 $ 318.40
Issued, weighted average price per share (in dollars per share) 1,008.98 692.02 520.67
Cancelled, weighted average price per share (in dollars per share) 701.36 512.31 345.30
Vested, weighted average price per share (in dollars per share) 489.57 384.92 336.99
Outstanding at end of period, weighted average price per share (in dollars per share) $ 768.64 $ 550.62 $ 409.77
Fair value of shares vested $ 41 $ 35 $ 31
v3.25.0.1
CAPITAL STOCK (Details) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cumulative preferred stock, shares outstanding (in shares) 0 0    
Stock issued during period, shares, restricted stock award, retained (in shares) 39,118 32,800 31,132  
Stock issued during period, shares, performance share units, retained (in shares) 9,629 18,521 10,359  
Treasury stock, common, shares (in shares) 61,326,349 60,341,817    
Common Stock        
Balance at beginning of period, common stock (in shares) 49,317,402 50,256,323 51,220,205  
Exercised (in shares) (113,274) (139,189) (101,802)  
Settlement of restricted stock units – net of 39,118, 32,800 and 31,132 shares retained, respectively (79,400) (83,795) (64,649)  
Settlement of performance share units – net of 9,629, 18,521 and 10,359 shares retained, respectively (15,110) (28,135) (13,890)  
Purchase of treasury shares (in shares) 1,192,316 1,190,040 1,144,223  
Balance at end of period, common stock (in shares) 48,332,870 49,317,402 50,256,323  
Treasury Stock        
Exercised (in shares) (113,274) (139,189) (101,802)  
Settlement of restricted stock units – net of 39,118, 32,800 and 31,132 shares retained, respectively (79,400) (83,795) (64,649)  
Settlement of performance share units – net of 9,629, 18,521 and 10,359 shares retained, respectively (15,110) (28,135) (13,890)  
Purchase of treasury shares (in shares) 1,192,316 1,190,040 1,144,223  
Treasury stock, common, shares (in shares) 61,326,349 60,341,817 59,402,896 58,439,014
v3.25.0.1
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSSES) (AOCE) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 3,441 $ 2,735 $ 2,160
Total other comprehensive earnings (losses) (138) (13) (118)
Ending balance 3,703 3,441 2,735
Total      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (257) (244)  
Other comprehensive earnings (loss) before reclassifications – net of tax (125) 0  
Amounts reclassified to net earnings (13) (13)  
Total other comprehensive earnings (losses) (138) (13)  
Ending balance (395) (257) (244)
Foreign Currency Translation and Other      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (331) (320)  
Other comprehensive earnings (loss) before reclassifications – net of tax (137) (11)  
Amounts reclassified to net earnings 0 0  
Total other comprehensive earnings (losses) (137) (11)  
Ending balance (468) (331) (320)
Foreign Currency Translation Attributable to Noncontrolling Interests      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (85) (64)  
Other comprehensive earnings (loss) before reclassifications – net of tax (36) (21)  
Amounts reclassified to net earnings 0 0  
Total other comprehensive earnings (losses) (36) (21)  
Ending balance (121) (85) (64)
AOCE Attributable to W.W. Grainger, Inc.      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (172) (180) (96)
Other comprehensive earnings (loss) before reclassifications – net of tax (89) 21  
Amounts reclassified to net earnings (13) (13)  
Total other comprehensive earnings (losses) (102) 8 (84)
Ending balance (274) (172) (180)
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 77 82  
Other comprehensive earnings (loss) before reclassifications – net of tax 12 8  
Amounts reclassified to net earnings (13) (13)  
Total other comprehensive earnings (losses) (1) (5)  
Ending balance 76 77 82
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 (3) (6)  
Other comprehensive earnings (loss) before reclassifications – net of tax 0 3  
Amounts reclassified to net earnings 0 0  
Total other comprehensive earnings (losses) 0 3  
Ending balance $ (3) $ (3) $ (6)
v3.25.0.1
INCOME TAXES - Net Earnings Before Income Taxes by Geographical Area (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net earnings before income taxes by geographical area      
U.S. $ 2,265 $ 2,211 $ 1,903
Foreign 319 289 243
Earnings before income taxes $ 2,584 $ 2,500 $ 2,146
v3.25.0.1
INCOME TAXES (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current income tax expense:      
U.S. Federal $ 404 $ 431 $ 374
U.S. State 84 100 77
Foreign 89 81 78
Total current 577 612 529
Deferred income tax (benefit) expense 18 (15) 4
Income tax expense $ 595 $ 597 $ 533
v3.25.0.1
INCOME TAXES - Income Tax Effects of Temporary Differences (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:      
Accrued expenses $ 172 $ 177  
U.S. and foreign loss carryforwards 82 84  
Accrued employment-related benefits 42 51  
Tax credit carryforward 20 22  
Other 23 30  
Deferred tax assets 339 364  
Less valuation allowance (100) (93) $ (71)
Deferred tax assets – net of valuation allowance 239 271  
Deferred tax liabilities:      
Property, buildings, equipment and other capital assets (216) (238)  
Intangibles (55) (58)  
Inventory (16) (11)  
Other (14) (11)  
Deferred tax liabilities (301) (318)  
Net deferred tax liability (62) (47)  
The net deferred tax asset (liability) is classified as follows:      
Noncurrent assets 15 10  
Noncurrent liabilities (foreign) $ (77) $ (57)  
v3.25.0.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Operating loss carryforwards $ 328 $ 335
Undistributed earnings of foreign subsidiaries 651 $ 544
Liability for tax uncertainties $ 4  
v3.25.0.1
INCOME TAXES - Changes in Valuation Allowance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Balance at beginning of period $ (93) $ (71)
Balance at end of period (100) (93)
Increases primarily related to foreign NOLs    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) (8) (5)
Releases primarily related to foreign NOLs    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) 0 1
Foreign exchange rate changes    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) 1 (2)
Decrease related to U.S. foreign tax credits    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) 2 3
Increase related to capital loss carryforwards    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) (1) (19)
Other changes – net    
Deferred Tax Asset, Valuation Allowance [Roll Forward]    
Valuation allowance, increase (decrease) $ (1) $ 0
v3.25.0.1
INCOME TAXES - Reconciliation of Income Tax Expense with Federal Income Taxes at the Statutory Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of income tax expense with federal income taxes at the statutory rate      
Federal income tax $ 543 $ 525 $ 451
State income taxes – net of federal income tax benefit 68 74 64
Stock compensation (16) (16) (5)
Foreign rate difference 33 31 26
Change in valuation allowance 2 6 7
Other – net (35) (23) (10)
Income tax expense $ 595 $ 597 $ 533
Effective tax rate 23.00% 23.90% 24.80%
v3.25.0.1
INCOME TAXES - Changes in Liability for Tax Uncertainties, Excluding Interest (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Changes in liability for tax uncertainties, excluding interest      
Balance at beginning of year $ 42 $ 41 $ 38
Additions for tax positions related to the current year 3 6 4
Additions for tax positions of prior years 0 1 2
Reductions for tax positions of prior years (1) (1) 0
Reductions due to statute lapse (22) (3) (2)
Settlements, audit payments, refunds - net (1) (2) (1)
Balance at end of year $ 21 $ 42 $ 41
v3.25.0.1
SEGMENT INFORMATION (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 2    
Summarized Information:      
Net sales $ 17,168 $ 16,478 $ 15,228
Cost of goods sold 10,410 9,982 9,379
Other segment items 4,121 3,931 3,634
Operating earnings 2,637 2,565 2,215
Depreciation, amortization and non-cash lease expense 311 277 206
United States      
Summarized Information:      
Net sales 13,947 13,389 12,325
Japan      
Summarized Information:      
Net sales 1,893 1,797 1,719
Canada      
Summarized Information:      
Net sales 661 646 621
Other foreign countries      
Summarized Information:      
Net sales 667 646 563
Operating segments      
Summarized Information:      
Net sales 16,854 16,183 14,969
Operating earnings 2,645 2,567 2,206
Intersegment Eliminations      
Summarized Information:      
Net sales 314 295 259
Operating earnings (8) (2) 9
High-Touch Solutions N.A.      
Summarized Information:      
Depreciation, amortization and non-cash lease expense 234 206 168
High-Touch Solutions N.A. | Operating segments      
Summarized Information:      
Net sales 13,720 13,267 12,182
Cost of goods sold 7,979 7,721 7,231
Other segment items 3,356 3,212 2,968
Operating earnings 2,385 2,334 1,983
Endless Assortment      
Summarized Information:      
Depreciation, amortization and non-cash lease expense 71 63 35
Endless Assortment | Operating segments      
Summarized Information:      
Net sales 3,134 2,916 2,787
Cost of goods sold 2,211 2,052 1,970
Other segment items 663 631 594
Operating earnings 260 233 223
Other      
Summarized Information:      
Depreciation, amortization and non-cash lease expense $ 6 $ 8 $ 3
v3.25.0.1
SUBSEQUENT EVENTS (Details) - USD ($)
Feb. 18, 2025
Jan. 29, 2025
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2023
Dec. 31, 2022
Unsecured Senior Notes, 1.85% | Senior notes            
Subsequent Event [Line Items]            
Stated interest rate     1.85% 1.85% 1.85% 1.85%
Subsequent Event            
Subsequent Event [Line Items]            
Common stock, dividends, per share, declared (in dollars per share)   $ 2.05        
Subsequent Event | Unsecured Senior Notes, 1.85% | Senior notes            
Subsequent Event [Line Items]            
Repayment of debt $ 500,000,000          
Stated interest rate 1.85%