Factoring and Notes Receivable

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Factoring and Notes Receivable

Note 9. Factoring and Notes Receivable

The Company enters into arrangements with financial institutions to sell eligible trade receivables. The receivables are sold without recourse and the Company accounts for these arrangements as true sales. The Company also receives guaranteed bank notes without recourse, in settlement of accounts receivables, primarily in the Asia Pacific region. The Company can hold the bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. Bank notes sold to third-party financial institutions without recourse are

likewise accounted for as true sales.

	Year Ended December 31,
	2024		2023		2022
	(Dollars in millions)
Eligible receivables sold without recourse	$	701	$	783	$	664
Guaranteed bank notes sold without recourse	161		92		102

The expenses related to the sale of trade receivables and guaranteed bank notes are recognized within Other expense, net in the Consolidated Statements of Operations, and were $4 million, $4 million and $2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

	December 31,
	2024		2023
	(Dollars in millions)
Receivables sold but not yet collected by the bank from the customer	$	6	$	7
Guaranteed bank notes sold but not yet collected by the bank from the customer	—		—

As of December 31, 2024 and 2023, the Company has no guaranteed bank notes pledged as collateral.