FINANCING ARRANGEMENTS

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

Short-Term Debt

Short-term debt was as follows:

	Year Ended December 31,
	2023				2022
	Principal		Interest		Principal		Interest
(in millions except percentages)	Balance		Rate		Balance		Rate
Corporate commercial paper facility	$	225	5.8	%	$	95	5.1	%
Other short-term borrowings	20		4.9	%	22		4.6	%
Add: Current portion of long-term debt	77				1
Total short-term debt	$	322			$	118
Maximum month-end short-term debt outstanding during the year	$	399			$	395
Average amount of short-term debt outstanding during the year	284				289
Weighted-average interest rate on short-term debt at year-end			5.7	%			5.0	%

Short-Term Borrowings

On May 12, 2023, the Company entered into a five-year senior unsecured multi-currency revolving facility, for an aggregate principal amount of $700 million that expires on May 12, 2028. This new facility replaced the prior $700 million five-year senior unsecured multi-currency revolving facility that was scheduled to expire on July 26, 2024. The Company also has a $500 million commercial paper program. The $700 million multi-currency revolving credit facility serves as a back-up to the commercial paper facility, thus the total available credit under the commercial paper facility and the multi-currency revolving credit facility in the aggregate is $700 million. The Company had outstanding borrowings of $225 million and $95 million under the commercial paper facility at December 31, 2023 and December 31, 2022, respectively, and no outstanding borrowings under the multi-currency revolving credit facility. The Company also has access to $44 million in uncommitted short-term financing under lines of credit from various financial institutions, the availability of which is reduced by other short-term borrowings of $20 million.

At December 31, 2023, the Company had $499 million borrowings available under unused lines of credit, including lines available under its short-term arrangements and revolving credit agreement.

Long-Term Debt

Long-term debt was as follows:

	Year Ended December 31,
	2023				2022
	Principal		Interest		Principal		Interest
(in millions except percentages)	Balance		Rate		Balance		Rate
Private placement notes 70 million euros due October 2024	$	77	1.0	%	$	75	1.0	%
Private placement notes 25 million Swiss franc due December 2025	30		0.9	%	27		0.9	%
Private placement notes 97 million euros due December 2025	107		2.1	%	104		2.1	%
Private placement notes 26 million euros due February 2026	29		2.1	%	28		2.1	%
Private placement notes 58 million Swiss franc due August 2026	69		1.0	%	63		1.0	%
Private placement notes 106 million euros due August 2026	117		2.3	%	114		2.3	%
Private placement notes 70 million euros due October 2027	77		1.3	%	75		1.3	%
Private placement notes 8 million Swiss franc due December 2027	9		1.0	%	8		1.0	%
Private placement notes 15 million euros due December 2027	17		2.2	%	16		2.2	%
Private placement notes 140 million Swiss franc due August 2028	166		1.2	%	151		1.2	%
Private placement notes 70 million euros due October 2029	77		1.5	%	75		1.5	%
Fixed rate senior notes 750 million due June 2030	750		3.3	%	750		3.3	%
Private placement notes 70 million euros due October 2030	77		1.6	%	75		1.6	%
Private placement notes 45 million euros due February 2031	50		2.5	%	48		2.5	%
Private placement notes 65 million Swiss franc due August 2031	77		1.3	%	70		1.3	%
Private placement notes 12.6 billion Japanese yen due September 2031	89		1.0	%	96		1.0	%
Private placement notes 70 million euros due October 2031	77		1.7	%	75		1.7	%
Other borrowings, various currencies and rates	14				21
Hedge accounting fair value adjustment(a)	(28)				(35)
	$	1,881			$	1,836
Less: Current portion
(included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets)	77				1
Less: Long-term portion of deferred financing costs	8				9
Long-term portion	$	1,796			$	1,826

(a) Represents the fair value of interest rate swap agreements entered into on a portion of the outstanding senior notes.

The Company’s multi-currency revolving credit facility, term loans and senior notes contain certain affirmative and negative covenants relating to the Company’s operations and financial condition. At December 31, 2023, the Company was in compliance with all debt covenants.

The contractual maturity dates of the Company’s long-term borrowings as of December 31, 2023 were as follows:

(in millions)
2024	$	77
2025	148
2026	218
2027	103
2028	166
2029 and beyond	1,197
	$	1,909

Interest expense, net includes interest income of $16 million, $11 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively, primarily relating to interest-bearing cash equivalents and customer financing for our direct-to-consumer aligner solutions.