FINANCING ARRANGEMENTS

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

Short-Term Debt

Short-term debt was as follows:

	Year Ended December 31,
	2024				2023
	Principal		Interest		Principal		Interest
(in millions except percentages)	Balance		Rate		Balance		Rate
Corporate commercial paper facility	$	410	5.3	%	$	225	5.8	%
Other short-term borrowings	11		4.9	%	20		4.9	%
Add: Current portion of long-term debt	128				77
Total short-term debt	$	549			$	322
Maximum month-end short-term debt outstanding during the year	$	549			$	399
Average amount of short-term debt outstanding during the year	344				284
Weighted-average interest rate on short-term debt at year-end			5.3	%			5.7	%

Short-Term Borrowings

The Company has a five-year senior unsecured multi-currency revolving facility, for an aggregate principal amount of $700 million, that expires on May 12, 2028. The Company also has a $700 million commercial paper program. The $700 million multi-currency revolving credit facility serves as a back-up to the commercial paper facility, resulting in an aggregate of $700 million total available credit under the commercial paper facility and the multi-currency revolving credit facility. The Company had outstanding borrowings of $410 million and $225 million under the commercial paper facility at December 31, 2024 and December 31, 2023, respectively, and no outstanding borrowings under the multi-currency revolving credit facility. The Company also has access to $34 million in uncommitted short-term financing available under lines of credit from various financial institutions, which is reduced by outstanding short-term borrowings of $11 million. At December 31, 2024, the weighted-average interest rate for short-term debt was 5.3%.

At December 31, 2024, the Company had $313 million borrowings available under unused lines of credit, including lines available under its short-term arrangements and revolving credit facility.

Long-Term Debt

Long-term debt was as follows:

	Year Ended December 31,
	2024				2023
	Principal		Interest		Principal		Interest
(in millions except percentages)	Balance		Rate		Balance		Rate
Private placement notes 70 million euros due October 2024	$	—	—	%	$	77	1.0	%
Private placement notes 25 million Swiss franc due December 2025	28		0.9	%	30		0.9	%
Private placement notes 97 million euros due December 2025	100		2.1	%	107		2.1	%
Private placement notes 26 million euros due February 2026	27		2.1	%	29		2.1	%
Private placement notes 58 million Swiss franc due August 2026	64		1.0	%	69		1.0	%
Private placement notes 106 million euros due August 2026	110		2.3	%	117		2.3	%
Private placement notes 70 million euros due October 2027	72		1.3	%	77		1.3	%
Private placement notes 8 million Swiss franc due December 2027	8		1.0	%	9		1.0	%
Private placement notes 15 million euros due December 2027	16		2.2	%	17		2.2	%
Private placement notes 140 million Swiss franc due August 2028	154		1.2	%	166		1.2	%
Private placement notes 70 million euros due October 2029	72		1.5	%	77		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	72		1.6	%	77		1.6	%
Private placement notes 45 million euros due February 2031	47		2.5	%	50		2.5	%
Private placement notes 65 million Swiss franc due August 2031	72		1.3	%	77		1.3	%
Private placement notes 12.6 billion Japanese yen due September 2031	80		1.0	%	89		1.0	%
Private placement notes 70 million euros due October 2031	72		1.7	%	77		1.7	%
Other borrowings, various currencies and rates	4				14
Hedge accounting fair value adjustment(a)	(28)				(28)
	$	1,720			$	1,881
Less: Current portion
(included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets)	128				77
Less: Long-term portion of deferred financing costs	6				8
Long-term portion	$	1,586			$	1,796

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

The Company’s revolving credit facility, term loans, and senior notes contain certain affirmative and negative debt covenants relating to the Company’s operations and financial condition. At December 31, 2024, the Company was in compliance with all debt covenants.

The contractual maturity dates of the Company’s long-term borrowings as of December 31, 2024 were as follows:

(in millions)
2025	$	128
2026	204
2027	96
2028	154
2029	73
2030 and beyond	1,093
	$	1,748

Interest expense, net includes interest income of $20 million, $16 million and $11 million for the years ended December 31, 2024, 2023 and 2022, respectively. Interest income primarily relates to interest-bearing cash equivalents and customer financing for the Company’s direct-to-consumer aligner solutions.