W.W. GRAINGER, INC., 10-Q filed on 10/29/2021
Quarterly Report
v3.21.2
COVER
 9 Months Ended
Sep. 30, 2021
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Sep. 30, 2021
Document Transition Report false
Entity File Number 1-5684
Entity Registrant Name W.W. Grainger, Inc.
Entity Incorporation, State or Country Code IL
Entity Tax Identification Number 36-1150280
Entity Address, Address Line One 100 Grainger Parkway,
Entity Address, City or Town Lake Forest,
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60045-5201
City Area Code (847)
Local Phone Number 535-1000
Title of 12(b) Security Common Stock
Trading Symbol GWW
Security Exchange Name NYSE
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 51,520,047
Entity Central Index Key 0000277135
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2021
Document Fiscal Period Focus Q3
Amendment Flag false
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement [Abstract]        
Net sales $ 3,372 $ 3,018 $ 9,663 $ 8,856
Cost of goods sold 2,122 1,944 6,196 5,645
Gross profit 1,250 1,074 3,467 3,211
Selling, general and administrative expenses 812 694 2,337 2,467
Operating earnings 438 380 1,130 744
Other (income) expense:        
Interest expense - net 22 23 65 72
Other - net (6) (5) (19) (16)
Total other expense - net 16 18 46 56
Earnings before income taxes 422 362 1,084 688
Income tax provision 107 106 271 118
Net earnings 315 256 813 570
Less: Net earnings attributable to noncontrolling interest 18 16 53 43
Net earnings attributable to W.W. Grainger, Inc. $ 297 $ 240 $ 760 $ 527
Earnings per share:        
Basic (in dollars per share) $ 5.68 $ 4.43 $ 14.48 $ 9.74
Diluted (in dollars per share) $ 5.65 $ 4.41 $ 14.40 $ 9.70
Weighted average number of shares outstanding:        
Basic (in shares) 51.8 53.6 52.1 53.6
Diluted (in shares) 52.1 53.9 52.4 53.8
Cash dividends paid per share (in dollars per share) $ 1.62 $ 1.53 $ 4.77 $ 4.41
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net earnings $ 315 $ 256 $ 813 $ 570
Other comprehensive earnings (losses):        
Foreign currency translation adjustments, net of reclassification to earnings (17) 24 (43) 30
Postretirement benefit plan losses, net of tax benefit of $1, $1, $3, and $3, respectively (4) (2) (10) (8)
Other 0 0 1 4
Total other comprehensive earnings (losses) (21) 22 (52) 26
Comprehensive earnings - net of tax 294 278 761 596
Less: Comprehensive earnings (losses) attributable to noncontrolling interest        
Net earnings 18 16 53 43
Foreign currency translation adjustments (1) 5 (19) 6
Total comprehensive earnings (losses) attributable to noncontrolling interest 17 21 34 49
Comprehensive earnings attributable to W.W. Grainger, Inc. $ 277 $ 257 $ 727 $ 547
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (PARENTHETICAL) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Postretirement benefit plan reclassification, net of tax benefit $ 1 $ 1 $ 3 $ 3
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 328 $ 585
Accounts receivable (less allowances for credit losses of $29 and $27, respectively) 1,742 1,474
Inventories - net 1,786 1,733
Prepaid expenses and other current assets 149 127
Total current assets 4,005 3,919
Property, buildings and equipment - net 1,429 1,395
Goodwill 387 391
Intangibles - net 233 228
Other assets 336 362
Total assets 6,390 6,295
Current liabilities    
Current maturities of long-term debt 0 8
Trade accounts payable 933 779
Accrued compensation and benefits 259 307
Accrued expenses 336 305
Income taxes payable 22 42
Total current liabilities 1,550 1,441
Long-term debt (less current maturities) 2,372 2,389
Deferred income taxes and tax uncertainties 88 110
Other non-current liabilities 263 262
Shareholders' equity    
Cumulative preferred stock – $5 par value – 12,000,000 shares authorized; none issued nor outstanding 0 0
Common Stock – $0.50 par value – 300,000,000 shares authorized; issued 109,659,219 shares 55 55
Additional contributed capital 1,255 1,239
Retained earnings 9,301 8,779
Accumulated other comprehensive losses (94) (61)
Treasury stock, at cost – 58,139,172 and 57,134,828 shares, respectively (8,690) (8,184)
Total W.W. Grainger, Inc. shareholders’ equity 1,827 1,828
Noncontrolling interest 290 265
Total shareholders' equity 2,117 2,093
Total liabilities and shareholders' equity $ 6,390 $ 6,295
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 29 $ 27
Cumulative preferred stock, par value (in dollars per share) $ 5 $ 5
Cumulative preferred stock, shares authorized 12,000,000 12,000,000
Cumulative preferred stock, shares issued 0 0
Cumulative preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.50 $ 0.50
Common stock, shares authorized 300,000,000 300,000,000
Common stock, shares issued 109,659,219 109,659,219
Treasury stock, shares at cost 58,139,172 57,134,828
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities:    
Net earnings $ 813 $ 570
Provision for credit losses 12 18
Deferred income taxes and tax uncertainties (7) 9
Depreciation and amortization 137 137
Impairment of goodwill, intangible and long-lived assets 0 177
Net (gains) losses from sale or redemption of assets and business divestitures (3) 104
Stock-based compensation 33 36
Subtotal 172 481
Change in operating assets and liabilities:    
Accounts receivable (298) (145)
Inventories (64) (222)
Prepaid expenses and other assets (1) (29)
Trade accounts payable 167 145
Accrued liabilities (13) (13)
Income taxes - net (42) (19)
Other non-current liabilities (10) 19
Subtotal (261) (264)
Net cash provided by operating activities 724 787
Cash flows from investing activities:    
Additions to property, buildings, equipment and intangibles (197) (152)
Proceeds from sale or redemption of assets and business divestitures 17 22
Other - net 0 (2)
Net cash used in investing activities (180) (132)
Cash flows from financing activities:    
Borrowings under lines of credit 0 12
Payments against lines of credit 0 (65)
Proceeds from long-term debt 0 1,583
Payments of long-term debt (8) (1,361)
Proceeds from stock options exercised 31 47
Payments for employee taxes withheld from stock awards (29) (16)
Purchases of treasury stock (525) (101)
Cash dividends paid (261) (246)
Other - net 2 0
Net cash used in financing activities (790) (147)
Exchange rate effect on cash and cash equivalents (11) (9)
Net change in cash and cash equivalents (257) 499
Cash and cash equivalents at beginning of year 585 360
Cash and cash equivalents at end of period $ 328 $ 859
v3.21.2
CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' 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, 2019 $ 2,060 $ 55 $ 1,182 $ 8,405 $ (154) $ (7,633) $ 205
Increase (Decrease) in Stockholders' Equity              
Stock-based compensation 23   10     13  
Purchases of treasury stock (100)         (100)  
Net earnings 185     173     12
Other comprehensive (losses) earnings (60)       (63)   3
Cash dividends paid (78)     (78)      
Ending balance at Mar. 31, 2020 $ 2,030 55 1,192 8,500 (217) (7,720) 220
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 1.44            
Beginning balance at Dec. 31, 2019 $ 2,060 55 1,182 8,405 (154) (7,633) 205
Increase (Decrease) in Stockholders' Equity              
Net earnings 570            
Other comprehensive (losses) earnings 26            
Ending balance at Sep. 30, 2020 $ 2,375 55 1,214 8,694 (134) (7,698) 244
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 4.41            
Beginning balance at Mar. 31, 2020 $ 2,030 55 1,192 8,500 (217) (7,720) 220
Increase (Decrease) in Stockholders' Equity              
Stock-based compensation 17   6     11  
Purchases of treasury stock (1)           (1)
Net earnings 129     114     15
Other comprehensive (losses) earnings 64       66   (2)
Cash dividends paid (87)     (78)     (9)
Ending balance at Jun. 30, 2020 $ 2,152 55 1,198 8,536 (151) (7,709) 223
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 1.44            
Stock-based compensation $ 27   16     11  
Net earnings 256     240     16
Other comprehensive (losses) earnings 22       17   5
Cash dividends paid (82)     (82)      
Ending balance at Sep. 30, 2020 $ 2,375 55 1,214 8,694 (134) (7,698) 244
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 1.53            
Beginning balance at Dec. 31, 2020 $ 2,093 55 1,239 8,779 (61) (8,184) 265
Increase (Decrease) in Stockholders' Equity              
Stock-based compensation 14   9     5  
Purchases of treasury stock (175)         (175)  
Net earnings 255     238     17
Other comprehensive (losses) earnings (38)       (20)   (18)
Reclassification due to the adoption of ASU 2019-12 12     12      
Cash dividends paid (81)     (81)      
Ending balance at Mar. 31, 2021 $ 2,080 55 1,248 8,948 (81) (8,354) 264
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 1.53            
Beginning balance at Dec. 31, 2020 $ 2,093 55 1,239 8,779 (61) (8,184) 265
Increase (Decrease) in Stockholders' Equity              
Net earnings 813            
Other comprehensive (losses) earnings (52)            
Ending balance at Sep. 30, 2021 $ 2,117 55 1,255 9,301 (94) (8,690) 290
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 4.77            
Beginning balance at Mar. 31, 2021 $ 2,080 55 1,248 8,948 (81) (8,354) 264
Increase (Decrease) in Stockholders' Equity              
Stock-based compensation 12   (1)     12 1
Purchases of treasury stock (108)         (107) (1)
Net earnings 243     225     18
Other comprehensive (losses) earnings 7       7    
Capital contribution             2
Reclassification due to the adoption of ASU 2019-12 2            
Cash dividends paid (95)     (84)     (11)
Ending balance at Jun. 30, 2021 $ 2,141 55 1,247 9,089 (74) (8,449) 273
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 1.62            
Stock-based compensation $ 9   8     1  
Purchases of treasury stock (242)         (242)  
Net earnings 315     297     18
Other comprehensive (losses) earnings (21)       (20)   (1)
Cash dividends paid (85)     (85)      
Ending balance at Sep. 30, 2021 $ 2,117 $ 55 $ 1,255 $ 9,301 $ (94) $ (8,690) $ 290
Increase (Decrease) in Stockholders' Equity              
Cash dividends paid per share (in dollars per share) $ 1.62            
v3.21.2
CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY CONDENSED CONSOLIDATED STATEMENT OF SHAREDHOLDERS' EQUITY (PARENTHETICAL) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Stockholders' Equity (Parentheticals) [Abstract]                
Cash dividends paid per share (in dollars per share) $ 1.62 $ 1.62 $ 1.53 $ 1.53 $ 1.44 $ 1.44 $ 4.77 $ 4.41
v3.21.2
BACKGROUND AND BASIS OF PRESENTATION
 9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BACKGROUND AND BASIS OF PRESENTATION BACKGROUND AND BASIS OF PRESENTATION
W.W. Grainger, Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) products and services with operations primarily in North America (N.A.), Japan and the United Kingdom (U.K.). In this report, the words “Company” or “Grainger” 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.

The Company's Condensed Consolidated Financial Statements (Financial Statements) and the related notes are unaudited and should be read in conjunction with the consolidated financial statements and associated notes for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2021 (2020 Form 10-K). The Condensed Consolidated Balance Sheet as of December 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the disclosures required by accounting principles generally accepted in the United States of America (U.S.) for complete financial statements.
 
The unaudited financial information reflects all adjustments (primarily consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of the statements contained in this report.

Changes to Reportable Segments
Effective January 1, 2021, Grainger's two reportable segments are High-Touch Solutions N.A. and Endless Assortment. On March 8, 2021, the Company provided investors with segment summary historical financial information and segment historical data that is consistent with its new reportable segment structure and reflective of the intersegment accounting policies described in Note 10 - Segment Information.

The Company's High-Touch Solutions N.A. segment provides value-added MRO solutions that are rooted in deep product knowledge and customer expertise. This segment includes the Grainger-branded businesses in the U.S., Canada, Mexico and Puerto Rico. The Company’s Endless Assortment segment provides a simple, transparent and streamlined experience for customers to shop millions of products online. This segment includes the Company’s Zoro Tools, Inc. (Zoro) businesses in the U.S. and U.K. and MonotaRO Co., Ltd. (MonotaRO), which operates predominately in Japan. The remaining international High-Touch Solutions businesses, operating primarily in the U.K., are classified as “Other” to reconcile to consolidated results. These businesses individually do not meet the criteria of a reportable segment.
v3.21.2
NEW ACCOUNTING STANDARDS
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
NEW ACCOUNTING STANDARDS NEW ACCOUNTING STANDARDS
Accounting Pronouncements Recently Adopted
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intra-period tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Financial Statements.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), Clarifying the Interactions between Topic 321, Topic 323 and Topic 815. This ASU simplifies the understanding and application of the codification topics by eliminating inconsistencies and providing clarifications. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Financial Statements.

In October 2020, the FASB issued ASU 2020-10, Codification Improvements. These amendments improve consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the codification by amending and adding new headings, cross referencing to other guidance and refining or correcting terminology. The effective date of this ASU was for fiscal
years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Financial Statements.

Accounting Pronouncements Recently Issued
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting as modified by subsequently issued ASU 2021-01. This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and generally can be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is evaluating the impact of this ASU and does not expect a material impact on the Financial Statements.
v3.21.2
REVENUE
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Company revenue is primarily comprised of MRO product sales and related activities, such as freight and services. Total service revenue is not material and accounted for approximately 1% of the Company's revenue for the three and nine months ended September 30, 2021 and 2020, respectively.

Grainger serves a large number of customers in diverse industries, which are subject to different economic and market-specific factors. The Company's presentation of revenue by segment and industry most reasonably depicts how the nature, amount, timing and uncertainty of Company revenue and cash flows are affected by economic and market-specific factors. In addition, the segments have unique underlying risks associated with customer purchasing behaviors. In the High-Touch Solutions N.A. segment, more than two-thirds of revenue is derived from customer contracts whereas in the Endless Assortment segment, a majority of revenue is derived from customer spot buys. The following table presents the Company's percentage of revenue by reportable segment and by major customer industry:
Three Months Ended September 30,
20212020
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
Contractors9 %15 %10 %8 %15 %10 %
Commercial9 %15 %10 %9 %15 %10 %
Government18 %3 %15 %22 %3 %18 %
Healthcare7 %2 %6 %8 %2 %6 %
Manufacturing29 %30 %29 %27 %27 %28 %
Retail/Wholesale9 %10 %10 %9 %10 %9 %
Transportation5 %3 %5 %5 %3 %5 %
Others(1)
14 %22 %15 %12 %25 %14 %
Total100 %100 %100 %100 %100 %100 %
Percent of Total Company Revenue79 %19 %100 %79 %19 %100 %

(1) Others primarily includes revenue from industries and customers that are not material individually, including agriculture, mining, natural resources and resellers not aligned to a major industry segment.
(2) Total Company includes other businesses, which includes the Cromwell business in the U.K., as well as the China business in the period prior to its divestiture in the third quarter of 2020. Other businesses account for approximately 2% of revenue for the three months ended September 30, 2021 and September 30, 2020.
Nine Months Ended September 30,
20212020
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
Contractors9 %15 %10 %9 %15 %10 %
Commercial9 %15 %10 %9 %15 %9 %
Government19 %3 %15 %20 %3 %16 %
Healthcare7 %2 %6 %9 %2 %7 %
Manufacturing30 %29 %29 %28 %29 %29 %
Retail/Wholesale9 %10 %10 %9 %10 %9 %
Transportation5 %3 %5 %5 %3 %5 %
Others(1)
12 %23 %15 %11 %23 %15 %
Total100 %100 %100 %100 %100 %100 %
Percent of Total Company Revenue78 %20 %100 %78 %18 %100 %

(1) Others primarily includes revenue from industries and customers that are not material individually, including agriculture, mining, natural resources and resellers not aligned to a major industry segment.
(2) Total Company includes other businesses, which includes the Cromwell business in the U.K., as well as the Fabory and China businesses in the period prior to their divestitures in the second and third quarter of 2020, respectively. Other businesses account for approximately 2% and 4% of revenue for the nine months ended September 30, 2021 and September 30, 2020.

Total accrued sales returns were approximately $41 million and $31 million as of September 30, 2021 and December 31, 2020, respectively and are reported as a reduction of Accounts receivable, net. Total accrued sales incentives were approximately $65 million and $58 million as of September 30, 2021 and December 31, 2020 and are reported as part of Accrued expenses. The Company had no material unsatisfied performance obligations, contract assets or liabilities as of September 30, 2021 and December 31, 2020.
v3.21.2
PROPERTY, BUILDINGS AND EQUIPMENT
 9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY, BUILDINGS AND EQUIPMENT PROPERTY, BUILDINGS AND EQUIPMENT
Property, buildings and equipment consisted of the following (in millions of dollars):
As of
September 30, 2021December 31, 2020
Land$329 $329 
Building, structures and improvements1,445 1,330 
Furniture, fixtures, machinery and equipment1,566 1,878 
Property, buildings and equipment$3,340 $3,537 
Less: Accumulated depreciation and amortization1,911 2,142 
Property, buildings and equipment - net$1,429 $1,395 
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETSGrainger tests reporting units' goodwill and intangible assets for impairment annually during the fourth quarter and more frequently if impairment indicators exist. Accordingly, Grainger performs quarterly qualitative assessments of significant events and circumstances such as reporting units' historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors, including the current global outbreak of the Coronavirus (COVID-19 pandemic) and macro-economic developments, to determine the existence of potential indicators of impairment and assess if it is more likely than not that the fair value of reporting units' goodwill or intangible assets is less than their carrying value. If indicators of impairment are identified, a quantitative impairment test is performed. The Company did not identify any significant events or changes in circumstances that indicated
the existence of impairment indicators during the three and nine months ended September 30, 2021. As such, quantitative assessments were not required.

The balances and changes in the carrying amount of Goodwill (net of cumulative goodwill impairments) by segment are as follows (in millions of dollars):
High-Touch Solutions N.AEndless AssortmentOtherTotal
Balance at January 1, 2020$318 $52 $59 $429 
Acquisition— 15 — 15 
Impairment— — (58)(58)
Translation3 3 (1)5 
Balance at December 31, 2020321 70 — 391 
Translation— (4)— (4)
Balance at September 30, 2021$321 $66 $— $387 
The cumulative goodwill impairments as of September 30, 2021, were $137 million and consisted of $32 million within High-Touch Solutions N.A. and $105 million in Other. During the first quarter of 2020, the Company recorded $58 million of impairment charges in Selling, general and administrative expenses (SG&A) in connection with the impairment of Fabory's goodwill. The impairment is presented in Other in the table above. The Company divested the Fabory business during the second quarter of 2020. Grainger's current business portfolio had no impairments to goodwill for the three and nine months ended September 30, 2021 and 2020.
The balances in Intangible assets, net are as follows (in millions of dollars):
September 30, 2021December 31, 2020
Weighted average lifeGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Customer lists and relationships11.8 years$221 $175 $46 $223 $171 $52 
Trademarks, trade names and other14.1 years36 24 12 36 22 14 
Non-amortized trade names and otherIndefinite26 — 26 28 — 28 
Capitalized software4.2 years510 361 149 461 327 134 
Total intangible assets6.9 years$793 $560 $233 $748 $520 $228 
v3.21.2
DEBT
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
DEBT DEBT
There was no short-term debt as of September 30, 2021 and December 31, 2020.

Long-term debt, including current maturities and debt issuance costs and discounts, net, consisted of the following (in millions of dollars):
As of September 30, 2021As of December 31, 2020
Carrying Value
Fair Value(4)
Carrying Value
Fair Value(4)
4.60% senior notes due 2045(1)
$1,000 $1,298 $1,000 $1,343 
3.75% senior notes due 2046(1)
400 463 400 479 
4.20% senior notes due 2047(1)
400 497 400 514 
1.85% senior notes due 2025(2)
500 515 500 526 
Japanese Yen term loan(3)
81 81 87 87 
Other14 14 34 34 
Subtotal2,395 2,868 2,421 2,983 
Less: Current maturities— — (8)(8)
Debt issuance costs and discounts, net of amortization(23)(23)(24)(24)
Long-term debt (less current maturities)$2,372 $2,845 $2,389 $2,951 

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

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

(2) In February 2020, the Company issued $500 million of unsecured 1.85% Senior Notes (1.85% Notes) and used the proceeds to repay the British pound term loan, Euro term loan and the Canadian dollar revolving credit facility, and to fund general working capital needs. The 1.85% Notes mature in February 2025 and they require no principal payments until the maturity date and interest is payable semi-annually on February 15 and August 15, beginning in August 2020. Prior to January 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at a “make-whole” redemption price. This redemption price is calculated by reference to the then-current yield on a U.S. treasury security with a maturity comparable to the remaining term of the 1.85% Notes plus 10 basis points, together with accrued and unpaid interest, if any, at the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the 1.85% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. On or after January 15, 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. At the time of issuance, costs and discounts of approximately $5 million, representing underwriting fees and other expenses, were recorded as a contra-liability within Long-term debt and are being amortized to interest expense, net over the term of the 1.85% Notes. In connection with the
1.85% Notes, in February 2020, the Company entered into derivative instrument agreements to manage its risks associated with interest rates on the 1.85% Notes and foreign currency fluctuations related to the financing of international operations. See Note 7 to the Financial Statements for further discussion of these derivative instruments and the Company's hedge accounting policies.

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

(4) The estimated fair value of the Company’s Senior Notes was based on available external pricing data and current market rates for similar debt instruments, among other factors, which are classified as Level 2 within the fair value hierarchy. The carrying value of other long-term debt approximates fair value due to their variable interest rates.
v3.21.2
DERIVATIVE INSTRUMENTS
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
The Company maintains various agreements with bank counterparties that permit the Company to enter into "over-the-counter" derivative instrument agreements to manage its risk associated with interest rates and foreign currency fluctuations. In February 2020, the Company entered into certain derivative instrument agreements to manage its risk associated with interest rates on its 1.85% Notes and foreign currency fluctuations in connection with its foreign currency-denominated intercompany financing arrangements. The Company did not enter into these agreements for trading or speculative purposes.

Fair value hedges
The Company uses fair value hedges primarily to hedge a portion of its fixed-rate long-term debt via interest rate swaps. Changes in the fair value of the interest rate swap, along with the gain or loss on the hedged item, is recorded in earnings under the same line item, interest expense, net. The notional amount of the Company’s outstanding fair value hedges as of September 30, 2021 and December 31, 2020 was $500 million.

Cash flow hedges
The Company uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from foreign currency-denominated intercompany borrowings via cross-currency swaps. Gains or losses on the cross-currency swaps are reported as a component of Accumulated other comprehensive earnings (losses) (AOCE) and reclassified into earnings in the same period during which the hedged transaction affects earnings. The notional amount of the Company’s outstanding cash flow hedges as of September 30, 2021 and December 31, 2020 was approximately $34 million.

The effect of the Company's fair value and cash flow hedges on the Company's Condensed Consolidated Statement of Earnings for the three and nine months ended September 30, 2021 and 2020 is as follows (in millions of dollars):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Interest expense, netOther, netInterest expense, netOther, netInterest expense, netOther, NetInterest expense, netOther, Net
Gain or (loss) recognized in earnings
Fair value hedge:
Hedged item$3 $— $— $— $12 $— $(22)$— 
Interest rate swap designated as hedging instrument$(3)$— $— $— $(12)$— $22 $— 
Cash flow hedge:
Hedged item$— $(1)$— $— $— $— $— $— 
Cross-currency swap designated as hedging instrument$— $1 $— $— $— $— $— $— 

The effect of the Company’s fair value and cash flow hedges on AOCE for the three and nine months ended September 30, 2021 and 2020 was not material.

The fair value and carrying amounts of outstanding derivative instruments in the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 were as follows (in millions of dollars):
As of September 30, 2021As of December 31, 2020
Balance Sheet ClassificationFair Value and Carrying AmountsFair Value and Carrying Amounts
Cross-currency swapOther non-current liabilities$2 $2 
Interest rate swapOther assets$9 $21 

The carrying amount of the liability hedged by the interest rate swap (long-term debt), including the cumulative amount of fair value hedging adjustments, as of September 30, 2021 and December 31, 2020 amounted to $509 million and $521 million, respectively.
The estimated fair values of the Company's derivative instruments were based on quoted market forward rates, which are classified as Level 2 within the fair value hierarchy and reflect the present value of the amount that the Company would pay for contracts involving the same notional amounts and maturity dates. No adjustments were required during the current period to reflect the counterparty’s credit risk and/or the Company’s own nonperformance risk.
v3.21.2
INCOME TAXES
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The reconciliations of income tax expense with federal income taxes at the statutory rate are as follows (in millions of dollars):
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Federal income tax $89 $89 $228 $171 
States income taxes, net of federal income tax benefit12 12 29 23 
Foreign rate difference7 10 19 17 
Net tax benefit related to foreign subsidiaries— (4)— (92)
Other - net(1)(1)(5)(1)
Income tax provision$107 $106 $271 $118 
Effective tax rate25.5 %29.3 %25.0 %17.3 %
The changes to the Company's effective tax rate for the three and nine months ended September 30, 2021 were primarily driven by the absence of the tax impacts and the prior year net tax benefit from the Company's investment in Fabory. The Company divested the Fabory business during the second quarter of 2020.
v3.21.2
DIVIDEND
 3 Months Ended
Sep. 30, 2021
Dividends [Abstract]  
DIVIDEND DIVIDENDOn October 27, 2021, the Company’s Board of Directors declared a quarterly dividend of $1.62 per share, payable December 1, 2021, to shareholders of record on November 8, 2021.
v3.21.2
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Following is a summary of segment results (in millions of dollars):
 Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
 Net salesOperating earningsNet salesOperating earningsNet salesOperating earningsNet salesOperating earnings
High-Touch Solutions N.A.$2,663 $387 $2,377 $334 $7,558 $975 $6,929 $933 
Endless Assortment646 59 572 48 1,913 172 1,593 125 
Other63 (8)69 (2)192 (17)334 (314)
Total Company$3,372 $438 $3,018 $380 $9,663 $1,130 $8,856 $744 

The Company is a broad line distributor of MRO products and services. Products are regularly added and removed from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed, and the dynamic nature of the inventory offered, including the evolving list of products stocked and additional products available online but not stocked.

Intersegment sales transactions, which are sales between Grainger businesses in separate reportable segments, are eliminated within the segment to present only the impact of third-party sales. Service fees for intersegment sales from the High-Touch Solutions N.A. segment to the Endless Assortment segment are included in SG&A.
Corporate costs are substantially allocated to each reportable segment based on benefits received. Assets for reportable segments are not disclosed as such information is not regularly reviewed by the Company's Chief Operating Decision Maker.
v3.21.2
CONTINGENCIES AND LEGAL MATTERS
 9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENCIES AND LEGAL MATTERS CONTINGENCIES, LEGAL MATTERS, COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contingencies and Legal Matters
From time to time the Company is involved in various legal and administrative proceedings, including claims related to product liability, safety or compliance; privacy and cybersecurity matters; negligence; contract disputes; environmental issues; unclaimed property; wage and hour laws; intellectual property; advertising and marketing; consumer protection; pricing (including disaster or emergency declaration pricing statutes); employment practices; regulatory compliance, including as to trade and export matters; anti-bribery and corruption; and other matters and actions brought by employees, consumers, competitors, suppliers, customers, governmental entities and other third parties.

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

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

Grainger is investigating each of the various claims against the Company relating to the KMCO chemical refinery incident, which are at an early stage, and intends to contest these matters vigorously.

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

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

While the Company is unable to predict the outcome of any of these proceedings and other matters, it believes that their ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on the Company’s consolidated financial condition or results of operations.
v3.21.2
NEW ACCOUNTING STANDARDS (Policies)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Update to Significant Accounting Policies and New Accounting Standards NEW ACCOUNTING STANDARDS
Accounting Pronouncements Recently Adopted
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intra-period tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Financial Statements.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), Clarifying the Interactions between Topic 321, Topic 323 and Topic 815. This ASU simplifies the understanding and application of the codification topics by eliminating inconsistencies and providing clarifications. The effective date of this ASU was for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Financial Statements.

In October 2020, the FASB issued ASU 2020-10, Codification Improvements. These amendments improve consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the codification by amending and adding new headings, cross referencing to other guidance and refining or correcting terminology. The effective date of this ASU was for fiscal
years and interim periods beginning after December 15, 2020. The Company adopted this ASU effective January 1, 2021 and it did not have a material impact on the Financial Statements.

Accounting Pronouncements Recently Issued
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting as modified by subsequently issued ASU 2021-01. This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and generally can be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is evaluating the impact of this ASU and does not expect a material impact on the Financial Statements.
v3.21.2
REVENUE (Tables)
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenues The following table presents the Company's percentage of revenue by reportable segment and by major customer industry:
Three Months Ended September 30,
20212020
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
Contractors9 %15 %10 %8 %15 %10 %
Commercial9 %15 %10 %9 %15 %10 %
Government18 %3 %15 %22 %3 %18 %
Healthcare7 %2 %6 %8 %2 %6 %
Manufacturing29 %30 %29 %27 %27 %28 %
Retail/Wholesale9 %10 %10 %9 %10 %9 %
Transportation5 %3 %5 %5 %3 %5 %
Others(1)
14 %22 %15 %12 %25 %14 %
Total100 %100 %100 %100 %100 %100 %
Percent of Total Company Revenue79 %19 %100 %79 %19 %100 %

(1) Others primarily includes revenue from industries and customers that are not material individually, including agriculture, mining, natural resources and resellers not aligned to a major industry segment.
(2) Total Company includes other businesses, which includes the Cromwell business in the U.K., as well as the China business in the period prior to its divestiture in the third quarter of 2020. Other businesses account for approximately 2% of revenue for the three months ended September 30, 2021 and September 30, 2020.
Nine Months Ended September 30,
20212020
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
High-Touch Solutions N.A.Endless Assortment
Total Company(2)
Contractors9 %15 %10 %9 %15 %10 %
Commercial9 %15 %10 %9 %15 %9 %
Government19 %3 %15 %20 %3 %16 %
Healthcare7 %2 %6 %9 %2 %7 %
Manufacturing30 %29 %29 %28 %29 %29 %
Retail/Wholesale9 %10 %10 %9 %10 %9 %
Transportation5 %3 %5 %5 %3 %5 %
Others(1)
12 %23 %15 %11 %23 %15 %
Total100 %100 %100 %100 %100 %100 %
Percent of Total Company Revenue78 %20 %100 %78 %18 %100 %

(1) Others primarily includes revenue from industries and customers that are not material individually, including agriculture, mining, natural resources and resellers not aligned to a major industry segment.
(2) Total Company includes other businesses, which includes the Cromwell business in the U.K., as well as the Fabory and China businesses in the period prior to their divestitures in the second and third quarter of 2020, respectively. Other businesses account for approximately 2% and 4% of revenue for the nine months ended September 30, 2021 and September 30, 2020.
v3.21.2
PROPERTY, BUILDINGS AND EQUIPMENT (Tables)
 9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY, BUILDINGS AND EQUIPMENT
Property, buildings and equipment consisted of the following (in millions of dollars):
As of
September 30, 2021December 31, 2020
Land$329 $329 
Building, structures and improvements1,445 1,330 
Furniture, fixtures, machinery and equipment1,566 1,878 
Property, buildings and equipment$3,340 $3,537 
Less: Accumulated depreciation and amortization1,911 2,142 
Property, buildings and equipment - net$1,429 $1,395 
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The balances and changes in the carrying amount of Goodwill (net of cumulative goodwill impairments) by segment are as follows (in millions of dollars):
High-Touch Solutions N.AEndless AssortmentOtherTotal
Balance at January 1, 2020$318 $52 $59 $429 
Acquisition— 15 — 15 
Impairment— — (58)(58)
Translation3 3 (1)5 
Balance at December 31, 2020321 70 — 391 
Translation— (4)— (4)
Balance at September 30, 2021$321 $66 $— $387 
Schedule of Finite-Lived Intangible Assets By Major Class
The balances in Intangible assets, net are as follows (in millions of dollars):
September 30, 2021December 31, 2020
Weighted average lifeGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Customer lists and relationships11.8 years$221 $175 $46 $223 $171 $52 
Trademarks, trade names and other14.1 years36 24 12 36 22 14 
Non-amortized trade names and otherIndefinite26 — 26 28 — 28 
Capitalized software4.2 years510 361 149 461 327 134 
Total intangible assets6.9 years$793 $560 $233 $748 $520 $228 
v3.21.2
DEBT (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments
Long-term debt, including current maturities and debt issuance costs and discounts, net, consisted of the following (in millions of dollars):
As of September 30, 2021As of December 31, 2020
Carrying Value
Fair Value(4)
Carrying Value
Fair Value(4)
4.60% senior notes due 2045(1)
$1,000 $1,298 $1,000 $1,343 
3.75% senior notes due 2046(1)
400 463 400 479 
4.20% senior notes due 2047(1)
400 497 400 514 
1.85% senior notes due 2025(2)
500 515 500 526 
Japanese Yen term loan(3)
81 81 87 87 
Other14 14 34 34 
Subtotal2,395 2,868 2,421 2,983 
Less: Current maturities— — (8)(8)
Debt issuance costs and discounts, net of amortization(23)(23)(24)(24)
Long-term debt (less current maturities)$2,372 $2,845 $2,389 $2,951 

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

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

(2) In February 2020, the Company issued $500 million of unsecured 1.85% Senior Notes (1.85% Notes) and used the proceeds to repay the British pound term loan, Euro term loan and the Canadian dollar revolving credit facility, and to fund general working capital needs. The 1.85% Notes mature in February 2025 and they require no principal payments until the maturity date and interest is payable semi-annually on February 15 and August 15, beginning in August 2020. Prior to January 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at a “make-whole” redemption price. This redemption price is calculated by reference to the then-current yield on a U.S. treasury security with a maturity comparable to the remaining term of the 1.85% Notes plus 10 basis points, together with accrued and unpaid interest, if any, at the redemption date. Additionally, if the Company experiences specific kinds of changes in control, it will be required to make an offer to purchase the 1.85% Notes at 101% of their principal amount plus accrued and unpaid interest, if any, at the date of purchase. On or after January 15, 2025, the Company may redeem the 1.85% Notes in whole at any time or in part from time to time at 100% of their principal amount, together with accrued and unpaid interest, if any, to the redemption date. At the time of issuance, costs and discounts of approximately $5 million, representing underwriting fees and other expenses, were recorded as a contra-liability within Long-term debt and are being amortized to interest expense, net over the term of the 1.85% Notes. In connection with the
1.85% Notes, in February 2020, the Company entered into derivative instrument agreements to manage its risks associated with interest rates on the 1.85% Notes and foreign currency fluctuations related to the financing of international operations. See Note 7 to the Financial Statements for further discussion of these derivative instruments and the Company's hedge accounting policies.

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

(4) The estimated fair value of the Company’s Senior Notes was based on available external pricing data and current market rates for similar debt instruments, among other factors, which are classified as Level 2 within the fair value hierarchy. The carrying value of other long-term debt approximates fair value due to their variable interest rates.
v3.21.2
DERIVATIVE INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments The effect of the Company's fair value and cash flow hedges on the Company's Condensed Consolidated Statement of Earnings for the three and nine months ended September 30, 2021 and 2020 is as follows (in millions of dollars):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Interest expense, netOther, netInterest expense, netOther, netInterest expense, netOther, NetInterest expense, netOther, Net
Gain or (loss) recognized in earnings
Fair value hedge:
Hedged item$3 $— $— $— $12 $— $(22)$— 
Interest rate swap designated as hedging instrument$(3)$— $— $— $(12)$— $22 $— 
Cash flow hedge:
Hedged item$— $(1)$— $— $— $— $— $— 
Cross-currency swap designated as hedging instrument$— $1 $— $— $— $— $— $— 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The fair value and carrying amounts of outstanding derivative instruments in the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 were as follows (in millions of dollars):
As of September 30, 2021As of December 31, 2020
Balance Sheet ClassificationFair Value and Carrying AmountsFair Value and Carrying Amounts
Cross-currency swapOther non-current liabilities$2 $2 
Interest rate swapOther assets$9 $21 
v3.21.2
INCOME TAXES (Tables)
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The reconciliations of income tax expense with federal income taxes at the statutory rate are as follows (in millions of dollars):
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Federal income tax $89 $89 $228 $171 
States income taxes, net of federal income tax benefit12 12 29 23 
Foreign rate difference7 10 19 17 
Net tax benefit related to foreign subsidiaries— (4)— (92)
Other - net(1)(1)(5)(1)
Income tax provision$107 $106 $271 $118 
Effective tax rate25.5 %29.3 %25.0 %17.3 %
v3.21.2
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Summary of Segment Results
Following is a summary of segment results (in millions of dollars):
 Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
 Net salesOperating earningsNet salesOperating earningsNet salesOperating earningsNet salesOperating earnings
High-Touch Solutions N.A.$2,663 $387 $2,377 $334 $7,558 $975 $6,929 $933 
Endless Assortment646 59 572 48 1,913 172 1,593 125 
Other63 (8)69 (2)192 (17)334 (314)
Total Company$3,372 $438 $3,018 $380 $9,663 $1,130 $8,856 $744 
v3.21.2
BACKGROUND AND BASIS OF PRESENTATION (Details)
 9 Months Ended
Sep. 30, 2021
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 2
v3.21.2
REVENUE - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]    
Accrued sales returns $ 41 $ 31
Contract With Customer, Sales Incentive Liability $ 65 $ 58
v3.21.2
REVENUE (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 100.00% 100.00% 100.00% 100.00%
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue 100.00% 100.00% 100.00% 100.00%
Service Revenue [Member]        
Disaggregation of Revenue [Line Items]        
Percent of Total Company Revenue 1.00% 1.00% 1.00% 1.00%
Contractors [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 10.00% 10.00% 10.00% 10.00%
Commercial [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 10.00% 10.00% 10.00% 9.00%
Government Customer [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 15.00% 18.00% 15.00% 16.00%
Healthcare Customer [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 6.00% 6.00% 6.00% 7.00%
Manufacturing [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 29.00% 28.00% 29.00% 29.00%
Retail/Wholesale [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 10.00% 9.00% 10.00% 9.00%
Transportation [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 5.00% 5.00% 5.00% 5.00%
Others [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 15.00% 14.00% 15.00% 15.00%
High-Touch Solutions N.A        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 100.00% 100.00% 100.00% 100.00%
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue 79.00% 79.00% 78.00% 78.00%
High-Touch Solutions N.A | Contractors [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 9.00% 8.00% 9.00% 9.00%
High-Touch Solutions N.A | Commercial [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 9.00% 9.00% 9.00% 9.00%
High-Touch Solutions N.A | Government Customer [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 18.00% 22.00% 19.00% 20.00%
High-Touch Solutions N.A | Healthcare Customer [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 7.00% 8.00% 7.00% 9.00%
High-Touch Solutions N.A | Manufacturing [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 29.00% 27.00% 30.00% 28.00%
High-Touch Solutions N.A | Retail/Wholesale [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 9.00% 9.00% 9.00% 9.00%
High-Touch Solutions N.A | Transportation [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 5.00% 5.00% 5.00% 5.00%
High-Touch Solutions N.A | Others [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 14.00% 12.00% 12.00% 11.00%
Endless Assortment        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 100.00% 100.00% 100.00% 100.00%
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage Of Company-Wide Revenue 19.00% 19.00% 20.00% 18.00%
Endless Assortment | Contractors [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 15.00% 15.00% 15.00% 15.00%
Endless Assortment | Commercial [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 15.00% 15.00% 15.00% 15.00%
Endless Assortment | Government Customer [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 3.00% 3.00% 3.00% 3.00%
Endless Assortment | Healthcare Customer [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 2.00% 2.00% 2.00% 2.00%
Endless Assortment | Manufacturing [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 30.00% 27.00% 29.00% 29.00%
Endless Assortment | Retail/Wholesale [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 10.00% 10.00% 10.00% 10.00%
Endless Assortment | Transportation [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 3.00% 3.00% 3.00% 3.00%
Endless Assortment | Others [Member]        
Disaggregation of Revenue [Line Items]        
Revenue From Contract With Customer, Excluding Assessed Tax, Percentage 22.00% 25.00% 23.00% 23.00%
Other        
Disaggregation of Revenue [Line Items]        
Percent of Total Company Revenue 2.00% 2.00% 2.00% 4.00%
v3.21.2
PROPERTY, BUILDINGS AND EQUIPMENT (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment $ 3,340 $ 3,537
Less: Accumulated depreciation and amortization 1,911 2,142
Property, buildings and equipment - net 1,429 1,395
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment 329 329
Building, Structures and Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment 1,445 1,330
Furniture, Fixtures, Machinery and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, buildings and equipment $ 1,566 $ 1,878
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS Balances and Changes in Carrying Amounts of Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2020
Sep. 30, 2021
Dec. 31, 2020
Goodwill [Roll Forward]      
Goodwill, beginning balance $ 429 $ 391 $ 429
Acquisition     15
Impairment (58)   (58)
Translation   (4) 5
Goodwill, ending balance   387 391
Other      
Goodwill [Roll Forward]      
Goodwill, beginning balance 59 0 59
Acquisition     0
Impairment     (58)
Translation   0 (1)
Goodwill, ending balance   0 0
High-Touch Solutions N.A | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items      
Goodwill [Roll Forward]      
Goodwill, beginning balance 318 321 318
Acquisition     0
Impairment     0
Translation   0 3
Goodwill, ending balance   321 321
Endless Assortment | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items      
Goodwill [Roll Forward]      
Goodwill, beginning balance $ 52 70 52
Acquisition     15
Impairment     0
Translation   (4) 3
Goodwill, ending balance   $ 66 $ 70
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Segment Reporting Information [Line Items]            
Impairment charges     $ (58)     $ (58)
Impairments $ 0 $ 0   $ 0 $ 0  
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items            
Segment Reporting Information [Line Items]            
Cumulative goodwill impairments       137    
Other            
Segment Reporting Information [Line Items]            
Cumulative goodwill impairments       105    
Impairment charges           (58)
High-Touch Solutions N.A | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items            
Segment Reporting Information [Line Items]            
Cumulative goodwill impairments       $ 32    
Impairment charges           0
Endless Assortment | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items            
Segment Reporting Information [Line Items]            
Impairment charges           $ 0
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets included in Other assets and intangibles (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Finite-lived intangible assets, useful life 6 years 10 months 24 days  
Total intangible assets, gross $ 793 $ 748
Finite-lived intangible assets, accumulated amortization 560 520
Total intangible assets, net $ 233 228
Customer lists and relationships    
Finite-lived intangible assets, useful life 11 years 9 months 18 days  
Finite-lived intangible assets, gross $ 221 223
Finite-lived intangible assets, accumulated amortization 175 171
Finite-lived intangible assets, net $ 46 52
Trademarks, trade names and other    
Finite-lived intangible assets, useful life 14 years 1 month 6 days  
Finite-lived intangible assets, gross $ 36 36
Finite-lived intangible assets, accumulated amortization 24 22
Finite-lived intangible assets, net 12 14
Non-amortized trade names and other    
Finite-lived intangible assets, gross 26 28
Finite-lived intangible assets, accumulated amortization 0 0
Indefinite-lived intangible assets, carrying amount $ 26 28
Capitalized software    
Finite-lived intangible assets, useful life 4 years 2 months 12 days  
Finite-lived intangible assets, gross $ 510 461
Finite-lived intangible assets, accumulated amortization 361 327
Finite-lived intangible assets, net $ 149 $ 134
v3.21.2
DEBT - Narrative (Details)
$ in Millions
 1 Months Ended 24 Months Ended
Aug. 31, 2020
JPY (¥)
numberOfPayments
Feb. 29, 2020
USD ($)
May 31, 2017
USD ($)
May 31, 2016
USD ($)
Jun. 30, 2015
May 31, 2017
USD ($)
Sep. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2018
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2015
Debt Instrument [Line Items]                      
Debt issuance costs and discounts, net of amortization             $ (23) $ (24)      
Senior Notes [Member]                      
Debt Instrument [Line Items]                      
Debt principal amount                 $ 1,800    
Debt Issuance Costs, Gross     $ 24     $ 24          
Senior Notes [Member] | Minimum [Member]                      
Debt Instrument [Line Items]                      
Basis points           20.00%          
Senior Notes [Member] | Maximum [Member]                      
Debt Instrument [Line Items]                      
Basis points           25.00%          
Senior Notes [Member] | Debt Instrument, Redemption, Period Two                      
Debt Instrument [Line Items]                      
Redemption price           100.00%          
Senior Notes [Member] | Debt Instrument, Redemption, Period One                      
Debt Instrument [Line Items]                      
Redemption price           101.00%          
Line of Credit [Member]                      
Debt Instrument [Line Items]                      
Outstanding lines of credit             $ 0        
Senior Notes, 4.20% due 2047 [Member] | Senior Notes [Member]                      
Debt Instrument [Line Items]                      
Debt principal amount     $ 400     $ 400          
Interest rate     4.20%     4.20% 4.20%        
Debt Instrument, Term     30 years                
Senior Notes, 3.75% due 2046 [Member] | Senior Notes [Member]                      
Debt Instrument [Line Items]                      
Debt principal amount       $ 400              
Interest rate       3.75%     3.75%        
Debt Instrument, Term       30 years              
Senior Notes, 4.60% due 2045 [Member] | Senior Notes [Member]                      
Debt Instrument [Line Items]                      
Debt principal amount                   $ 1,000  
Interest rate             4.60%       4.60%
Debt Instrument, Term         30 years            
Unsecured Senior Notes, 1.85% | Senior Notes [Member]                      
Debt Instrument [Line Items]                      
Debt principal amount   $ 500                  
Interest rate   1.85%         1.85%        
Basis points   0.10%                  
Redemption price, percentage upon change of control   101.00%                  
Redemption price   100.00%                  
Debt issuance costs and discounts, net of amortization   $ 5                  
Term Loan Agreement, 0.05% [Member] | Yen Denominated Bank Term Loan                      
Debt Instrument [Line Items]                      
Debt principal amount | ¥ ¥ 9,000,000,000                    
Number of semi-annual principal payments | numberOfPayments 4                    
Average interest rate 0.05%                    
v3.21.2
DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Feb. 29, 2020
May 31, 2017
May 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]            
Other $ 14 $ 34        
Other, fair value 14 34        
Long-term debt, gross 2,395 2,421        
Long-term debt, gross, fair value 2,868 2,983        
Less: Current maturities 0 (8)        
Less current maturities, fair value 0 (8)        
Debt issuance costs and discounts, net of amortization (23) (24)        
Debt issuance costs and discounts, fair value (23) (24)        
Long-term debt (less current maturities) 2,372 2,389        
Long-term debt, excluding current maturities, , fair value 2,845 2,951        
Yen Denominated Bank Term Loan            
Debt Instrument [Line Items]            
Long-term debt, fair value 81 87        
Long-term debt, gross 81 87        
Senior Notes, 4.60% due 2045 [Member] | Senior notes [Member]            
Debt Instrument [Line Items]            
Long-term debt, fair value 1,298 1,343        
Long-term debt, gross $ 1,000 1,000        
Interest rate 4.60%         4.60%
Senior Notes, 3.75% due 2046 [Member] | Senior notes [Member]            
Debt Instrument [Line Items]            
Long-term debt, fair value $ 463 479        
Long-term debt, gross $ 400 400        
Interest rate 3.75%       3.75%  
Senior Notes, 4.20% due 2047 [Member] | Senior notes [Member]            
Debt Instrument [Line Items]            
Long-term debt, fair value $ 497 514        
Long-term debt, gross $ 400 400        
Interest rate 4.20%     4.20%    
Unsecured Senior Notes, 1.85% | Senior notes [Member]            
Debt Instrument [Line Items]            
Long-term debt, fair value $ 515 526        
Long-term debt, gross $ 500 $ 500        
Debt issuance costs and discounts, net of amortization     $ 5      
Interest rate 1.85%   1.85%      
v3.21.2
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Feb. 29, 2020
Derivative [Line Items]      
Derivative instruments and hedges, liabilities $ 509 $ 521  
Unsecured Senior Notes, 1.85% | Senior notes [Member]      
Derivative [Line Items]      
Interest rate 1.85%   1.85%
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]      
Derivative [Line Items]      
Derivative, notional amount $ 500 500  
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]      
Derivative [Line Items]      
Derivative, notional amount $ 34 $ 34  
v3.21.2
DERIVATIVE INSTRUMENTS - Schedule of Derivative Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Derivative [Line Items]          
Interest expense, net $ (22) $ (23) $ (65) $ (72)  
Other, net 6 5 19 16  
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Other Contract [Member]          
Derivative [Line Items]          
Interest expense, net 3 0 12 (22)  
Other, net 0 0 0 0  
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member]          
Derivative [Line Items]          
Fair Value and Carrying Amounts 9   9   $ 21
Interest expense, net (3) 0 (12) 22  
Other, net 0 0 0 0  
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Contract [Member]          
Derivative [Line Items]          
Interest expense, net 0 0 0 0  
Other, net (1) 0 0 0  
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member]          
Derivative [Line Items]          
Fair Value and Carrying Amounts 2   2   $ 2
Interest expense, net 0 0 0 0  
Other, net $ 1 $ 0 $ 0 $ 0  
v3.21.2
INCOME TAXES (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Tax Disclosure [Abstract]        
Effective tax rate 25.50% 29.30% 25.00% 17.30%
v3.21.2
INCOME TAXES INCOME TAXES - Reconciliation of Income Tax Expense with Federal Income Taxes at the Statutory Rate (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Tax Disclosure [Abstract]        
Federal income tax $ 89 $ 89 $ 228 $ 171
State income taxes, net of federal income tax benefit 12 12 29 23
Foreign rate difference 7 10 19 17
Net tax benefit related to foreign subsidiaries 0 (4) 0 (92)
Other, net (1) (1) (5) (1)
Income tax expense $ 107 $ 106 $ 271 $ 118
Effective tax rate 25.50% 29.30% 25.00% 17.30%
v3.21.2
DIVIDEND - Narrative (Details)
Oct. 27, 2021
$ / shares
Subsequent event  
Subsequent Event [Line Items]  
Dividend declared (in dollars per share) $ 1.62
v3.21.2
SEGMENT INFORMATION - Summary of Segment Results (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Segment Reporting Information [Line Items]        
Total net sales $ 3,372 $ 3,018 $ 9,663 $ 8,856
Segment operating earnings 438 380 1,130 744
Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items        
Segment Reporting Information [Line Items]        
Total net sales     7,558 6,929
Segment operating earnings     1,913 1,593
Other        
Segment Reporting Information [Line Items]        
Total net sales 63 69 192 334
Segment operating earnings (8) (2) (17) (314)
High-Touch Solutions N.A | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items        
Segment Reporting Information [Line Items]        
Total net sales 2,663 2,377 7,558 6,929
Segment operating earnings 387 334 975 933
Endless Assortment | Segment Balances Before Intersegment Eliminations and Consolidation Reconciling Items        
Segment Reporting Information [Line Items]        
Total net sales 646 572 1,913 1,593
Segment operating earnings $ 59 $ 48 $ 172 $ 125