FINANCING ARRANGEMENTS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Debt Disclosure [Abstract] | |
| FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS 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 as the total available credit under the commercial paper facility and the multi-currency revolving credit facility. The Company had no outstanding borrowings under the commercial paper facility at June 30, 2025 and $410 million in outstanding borrowings under the commercial paper facility at December 31, 2024, and the Company had no outstanding borrowings under the multi-currency revolving credit facility at June 30, 2025 and December 31, 2024. The Company also has access to $44 million in uncommitted short-term financing available under lines of credit from various financial institutions, which is reduced by other outstanding short-term borrowings of $7 million. On March 19, 2025, the Company entered into a 364-day term loan of $435 million with a maturity date of March 18, 2026 (the “Bridge Loan Facility”). The proceeds were $432 million, net of issuance fees totaling $3 million. The net proceeds from the Bridge Loan Facility were used to repay indebtedness under the Company’s commercial paper facility and pre-fund repayment of certain other short-term indebtedness. Subsequently, on June 12, 2025, the Company issued $550 million aggregate principal amount of 8.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055 (the “Notes”) through a public offering. The proceeds from the sale of the Notes were $545 million after deduction of underwriters’ fees. On June 12, 2025, the Company used a portion of these proceeds to repay in full the outstanding principal and accrued interest due under the Bridge Loan Facility, which was then terminated as a result of the repayment. The Company intends to use the remaining proceeds from the sale of the Notes for general corporate purposes. At June 30, 2025, the weighted-average interest rate for short-term debt was 4.8%. At June 30, 2025, the Company had $737 million of borrowings available under lines of credit, including lines available under its short-term arrangements and revolving credit facility. 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. On June 3, 2025, the Company entered into agreements with the applicable noteholders to amend certain provisions of its private placement notes and also obtained the consent of the requisite lenders under its revolving credit facility to amend certain provisions of that credit agreement. Under the amended terms, the Company and the relevant counterparties agreed to, among other things: (i) establish a financial covenant requiring that the ratio of senior debt to capitalization shall not exceed 0.6, (ii) increase the maximum allowable consolidated leverage ratio to 0.65, (iii) adjust the German subsidiary debt to be treated as permitted debt under a newly designated standalone basket, and (iv) implement provisions governing interest rate adjustments in the event that the Company’s credit rating is downgraded below investment grade. At June 30, 2025, the Company was in compliance with the aforementioned provisions. Interest expense, net includes interest income of $3 million and $5 million for the three months ended June 30, 2025 and 2024, respectively. Interest expense, net includes interest income of $7 million and $10 million for the six months ended June 30, 2025 and 2024, respectively. Interest income primarily relates to interest-bearing cash equivalents.
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