Financing Arrangements

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Financing Arrangements

Financing Arrangements

We had total debt outstanding of approximately $2.5 billion and $2.0 billion at December 31, 2022 and 2021, respectively. Short-term borrowings at December 31, 2022, consisted primarily of commercial paper borrowings and amounts outstanding under various unsecured local country operating lines of credit.

On December 16, 2022, we entered into a new two-year, senior, unsecured $200 million term loan, which bears interest, payable quarterly in arrears, at a variable annual rate based on an adjusted daily Secured Overnight Financing Rate ("SOFR") plus a margin of 1.10 percent per annum. The term loan will mature and all principal thereunder will be payable on December 16, 2024. The term loan agreement contains customary affirmative and negative covenants that, among other matters, specify customary reporting obligations, and that, subject to exceptions, restrict the incurrence of additional indebtedness by our subsidiaries, the incurrence of liens and the consummation of certain mergers, consolidations and sales of assets. We are subject to compliance, as of the end of each quarter, with a maximum leverage ratio of 3.5 to 1.0 and a minimum ratio of consolidated EBITDA to consolidated net interest expense of 3.5 to 1.0, with each financial covenant calculated for the most recently completed four-quarter period. We were in compliance with all of our debt covenants as of December 31, 2022.

On November 30, 2022, we amended our existing revolving credit agreement. The amendment changed the applicable interest rate calculation under our revolving credit facility to either a specified SOFR plus an applicable margin, or a base rate (generally determined according to the highest of the prime rate, the federal funds rate or the specified SOFR plus 1.00 percent) plus an applicable margin. The revolving credit agreement previously referenced London Interbank Offering Rate ("LIBOR") instead of SOFR for applicable interest calculations under the facility. As of December 31, 2022 and December 31, 2021, borrowings of $— and $—, respectively, were outstanding under the $1 billion facility.

On July 27, 2021, we established a commercial paper program under which we may issue senior unsecured notes of short maturities up to a maximum aggregate principal amount of $1 billion outstanding at any time. The notes may be sold from time to time on customary terms in the U.S. commercial paper market. We use the note proceeds for general corporate purposes. From the inception of the program until December 31, 2021, the average amount of commercial paper outstanding was $670 million with an average interest rate of 0.27 percent and a weighted average maturity of 48 days. As of December 31, 2021, $250 million of commercial paper was outstanding with an average interest rate of 0.35 percent and a weighted average maturity of 48 days. During 2022, the average amount of commercial paper outstanding was $522 million with an average interest rate of 1.97 percent and a weighted average maturity of 16 days. As of December 31, 2022, $390 million of commercial paper was outstanding with an average interest rate of 4.75 percent and a weighted average maturity of 7 days. The amount of commercial paper outstanding under this program in 2023 is expected to fluctuate.

Presented below are our debt carrying amounts, net of related discounts, premiums and debt issuance costs and fair values as of December 31, 2022 and 2021:

	2022				2021
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
2.900% senior notes due June 1, 2030	$	595	$	510	$	595	$	619
3.200% senior notes due October 1, 2026	498		470		498		531
3.900% senior notes due June 1, 2050	390		293		390		455
6.625% senior notes due April 15, 2037	253		256		253		350
Term loan credit agreement due December 16, 2024	200		200		—		—
Revolving credit agreement	—		—		—		—
Other long-term borrowings	4		4		2		2
Total long-term debt	1,940		1,733		1,738		1,957
Commercial paper	390		390		250		250
Other short-term borrowings	153		153		58		58
Total short-term borrowings	543		543		308		308
Total debt	$	2,483	$	2,276	$	2,046	$	2,265

We guarantee certain obligations of our consolidated subsidiaries, which aggregated $63 million and $61 million at December 31, 2022 and 2021, respectively.