Company: GWW
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000277135-25-000010
Chunk: 58

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 58
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Operating lease liability                               78                            71     
Long-term operating lease liability                    327                           381     
Total operating lease liabilities                     $405                          $452     

                                                                                                                  As of December 31,
                                                                                                  2024                          2023
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     
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.
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The remaining maturity of existing lease liabilities as of December 31, 2024 are as follows (in millions of dollars):

Year                                                    Operating Leases
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        
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.
NOTE 8 - 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