Sale of Receivables

12 Months Ended

Dec. 31, 2024

Transfers and Servicing [Abstract]

Sale of Receivables

Sale of Receivables

The Company is party to factoring facilities with various financial institutions (the “purchasers”) with an aggregate capacity of $225 million.

The receivables sold under the factoring facilities are without recourse for any customer credit risk and result in a true sale. Receivables are derecognized in their entirety when sold, and the Company’s continuing involvement is limited to their servicing, for which the Company receives a fee commensurate with the service provided and therefore no servicing asset or liability related to these receivables was recognized for any period presented. The fair value of the sold receivables approximated their book value due to their short-term nature. Proceeds from the sold receivables are primarily reflected in operating cash flows on the Consolidated Statements of Cash Flows.

During the years ended December 31, 2024, 2023 and 2022, the Company incurred purchase discount fees of $2 million, $5 million, and $4 million, respectively, which are presented in general and administrative expenses on the Consolidated Statements of Earnings.

The table below summarizes the activity under the factoring facilities:

	December 31,
(Dollars in millions)	2024		2023
Beginning balance	$	192	$	243
Sales of receivables	190		303
Cash returned to purchasers	(252)		(354)
Outstanding balance sold to purchasers	130		192
Cash collected, not remitted to purchasers(1)	—		(35)
Remaining sold receivables	$	130	$	157

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(1)Represents cash collected on behalf of purchasers and not yet remitted. This balance is included within short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheets.