v3.25.2
Borrowings and Lines of Credit
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Borrowings and Lines of Credit Borrowings and Lines of Credit
(dollars in millions)June 30, 2025December 31, 2024
Commercial paper$472$—
Other borrowings5651
Total short-term borrowings$528$51

Commercial Paper. As of June 30, 2025, there were $472 million borrowings outstanding under the Company's $1.5 billion commercial paper programs, including, €205 million of Euro denominated commercial paper. We use our commercial paper borrowings for general corporate purposes including to finance acquisitions, pay dividends, repurchase shares and for debt refinancing. The need for commercial paper borrowings may arise if the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S.

For details regarding the Company's short-term borrowing activity in 2024, refer to Note 9 of the Company's audited consolidated financial statements and notes thereto included in our 2024 Form 10-K.

Long-term debt.

As of June 30, 2025, we had a revolving credit agreement with various banks providing for a $1.5 billion unsecured, unsubordinated five-year revolving credit facility, maturing March 10, 2028. As of June 30, 2025, there were no borrowings under the revolving credit agreement. As of June 30, 2025, the Company is in compliance with all covenants in the revolving credit agreement and the indentures governing all outstanding long-term debt. Long-term debt consisted of the following:

(dollars in millions)June 30, 2025December 31, 2024
2.056% notes due 2025
$— $1,300 
0.370% notes due 2026 (¥21.5 billion principal value)
147 137 
0.318% notes due 2026 (€600 million principal value)
696 624 
2.293% notes due 2027
500 500 
2.875% notes due 2027 (€850 million principal value)
985 885 
5.250% notes due 2028
750 750 
2.565% notes due 2030
1,500 1,500 
5.125% notes due 2031
600 600 
0.934% notes due 2031 (€500 million principal value)
580 520 
3.112% notes due 2040
750 750 
3.362% notes due 2050
750 750 
Other (including finance leases)7 6 
Total principal long-term debt7,265 8,322 
Other (discounts and debt issuance costs)(44)(49)
Total long-term debt7,221 8,273 
Less: current portion147 1,300 
Long-term debt, net of current portion$7,074 $6,973 

We may redeem any series of notes at our option pursuant to certain terms.

On April 7, 2025, the Company repaid its $1.3 billion principal amount of 2.056% notes due in 2025, upon maturity, using cash on hand and commercial paper borrowings.

For additional details regarding the Company's debt activity in 2024, refer to Note 9 of the Company's audited consolidated financial statements and notes thereto included in our 2024 Form 10-K.
Debt discounts and debt issuance costs are presented as a reduction of debt on the Condensed Consolidated Balance Sheets and are amortized as a component of interest expense over the term of the related debt using the effective interest method. The Condensed Consolidated Statements of Operations for the quarters and six months ended June 30, 2025 and 2024 reflects the following:

Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2025202420252024
Debt issuance costs amortization$2 $2 $5 $4 
Total interest expense on external debt50 43 107 86 

The unamortized debt issuance costs as of June 30, 2025 and December 31, 2024 were $40 million and $45 million, respectively.

The weighted average maturity of our long-term debt as of June 30, 2025 is approximately 7.0 years. The weighted average interest expense rate on our borrowings outstanding as of June 30, 2025 and December 31, 2024 was as follows:

June 30, 2025December 31, 2024
Short-term commercial paper3.2%—%
Total long-term debt2.8%2.7%

The weighted average interest expense rate on our borrowings during the quarters and six months ended June 30, 2025 and 2024 was as follows:

Quarter Ended June 30,Six Months Ended June 30,
2025202420252024
Short-term commercial paper4.2%5.5%4.2%5.5%
Total long-term debt2.8%2.5%2.8%2.5%