v3.26.1
Borrowings and Lines of Credit
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings and Lines of Credit Borrowings and Lines of Credit
Short-term borrowings consisted of the following:

(dollars in millions)June 30, 2026December 31, 2025
Commercial paper$—$—
Other borrowings210215
Total short-term borrowings$210$215

Commercial Paper and Other Borrowings. As of June 30, 2026, there were no borrowings outstanding under the Company's $1.5 billion commercial paper programs. 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. Other borrowings primarily consist of borrowings for the purchase of the outstanding shares of Otis Electric Elevator Company Limited from the noncontrolling shareholder in 2025.

Long-term debt. As of June 30, 2026, we had a revolving credit agreement with various banks providing for a $1.5 billion unsecured, unsubordinated five-year revolving credit facility, maturing August 8, 2030. As of June 30, 2026, there were no borrowings under the revolving credit agreement. The undrawn portion of the revolving credit agreement serves as a backstop for the issuance of commercial paper.
On March 16, 2026, the Company repaid the Japanese Yen denominated 0.370% notes due in 2026, upon maturity, using cash on hand.

On May 7, 2026, we issued $700 million unsecured, unsubordinated three-year notes due May 7, 2029 with an interest rate of 4.488%. A majority of the proceeds will be used to fund the repayment at maturity of the Euro denominated 0.318% notes due December 15, 2026. The remainder of the proceeds were used to fund the repayment of certain of our commercial paper borrowings and for other general corporate purposes.

As of June 30, 2026, 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, including the current portion, consisted of the following:

(dollars in millions)June 30, 2026December 31, 2025
0.370% notes due 2026 (¥21.5 billion principal value)
$— $137 
0.318% notes due 2026 (€600 million principal value)
681 705 
2.293% notes due 2027
500 500 
2.875% notes due 2027 (€850 million principal value)
965 999 
5.250% notes due 2028
750 750 
4.488% notes due 2029
700 — 
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)
568 588 
5.131% notes due 2035
500 500 
3.112% notes due 2040
750 750 
3.362% notes due 2050
750 750 
Other (including finance leases)6 6 
Total principal long-term debt8,270 7,785 
Other (discounts and debt issuance costs)(44)(44)
Total long-term debt8,226 7,741 
Less: current portion1,180 841 
Long-term debt, net of current portion$7,046 $6,900 

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

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, 2026 and 2025 reflect the following:

Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2026202520262025
Debt issuance costs amortization$3 $2 $5 $5 
Total interest expense on external debt62 50 120 107 

The unamortized debt issuance costs as of June 30, 2026 and December 31, 2025 were $41 million.
The weighted average maturity of our long-term debt as of June 30, 2026 is approximately 6.0 years. The weighted average interest expense rate on our borrowings outstanding as of June 30, 2026 and December 31, 2025 was as follows:

June 30, 2026December 31, 2025
Short-term commercial paper—%—%
Total long-term debt3.2%3.0%

The weighted average interest expense rate on our borrowings during the quarters and six months ended June 30, 2026 and 2025 was as follows:

Quarter Ended June 30,Six Months Ended June 30,
2026202520262025
Short-term commercial paper3.5%4.2%3.5%4.2%
Total long-term debt3.1%2.8%3.0%2.8%