Borrowings and Lines of Credit (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of short-term debt

(dollars in millions)	September 30, 2022		December 31, 2021
Commercial paper	$	71	$	—
Other borrowings	32		24
Total short-term borrowings	$	103	$	24

Schedule of long-term debt

Long-term debt consisted of the following:

(dollars in millions)	September 30, 2022		December 31, 2021
LIBOR plus 45 bps floating rate notes due 2023 1,2,3	$	—	$	500
0.000% notes due 2023 (€500 million principal value) 2	484		565
2.056% notes due 2025 2	1,300		1,300
0.37% notes due 2026 (¥21.5 billion principal value) 2	149		189
0.318% notes due 2026 (€600 million principal value) 2	580		677
2.293% notes due 2027 2	500		500
2.565% notes due 2030 2	1,500		1,500
0.934% notes due 2031 (€500 million principal value) 2	484		565
3.112% notes due 2040 2	750		750
3.362% notes due 2050 2	750		750
Other (including finance leases)	6		4
Total principal long-term debt	6,503		7,300
Other (discounts and debt issuance costs)	(44)		(51)
Total long-term debt	6,459		7,249
Less: current portion	—		—
Long-term debt, net of current portion	$	6,459	$	7,249

1    The three-month LIBOR rate as of December 31, 2021 was approximately 0.21%.

2    We may redeem these notes at our option pursuant to certain terms.

3    The Company redeemed its $500 million floating rate notes due in 2023, at par, using cash on hand in January 2022.

Schedule of debt

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 nine months ended September 30, 2022 and 2021 reflects the following:

	Quarter Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2022		2021		2022		2021
Debt issuance costs amortization	$	1	$	1	$	6	$	4
Total interest expense on external debt	35		34		106		101

The average interest expense rate on our borrowings outstanding as of September 30, 2022 and December 31, 2021 was as follows:

	September 30, 2022		December 31, 2021
Short-term borrowings	3.4	%	—	%
Total long-term debt	2.0	%	1.9	%

The average interest expense rate on our borrowings during the quarters and nine months ended September 30, 2022 and 2021 was as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Short-term borrowings	2.5	%	(0.2)	%	1.3	%	(0.3)	%
Total long-term debt	2.0	%	2.4	%	2.0	%	2.4	%