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Debt and Financing Arrangements
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt and Financing Arrangements
9. Debt and Financing Arrangements

The following table summarizes the carrying value of the Company’s debt:
December 31,
(In millions)
Rate (1)
20232022
Unsecured notes due 2026 (2)
1.65%$398 $397 
Unsecured notes due 2031 (3)
2.65%397 397 
Two-Year Term Loan due 2024
—%— 115 
Three-Year Term Loan due 2025 (4)
6.58%235 234 
Five-Year Term Loan due 2027 (5)
6.71%499 499 
Finance leases and other debtVarious118 164 
Total debt$1,647 $1,806 
Less: Current debt27 67 
Total Long-term debt$1,620 $1,739 
(1) Interest rates as of December 31, 2023.
(2) Net of unamortized debt issuance costs of $2 million and $3 million, as of December 31, 2023 and 2022, respectively.
(3) Net of unamortized debt issuance costs of $3 million as of December 31, 2023 and 2022.
(4) Net of unamortized debt issuance costs of $1 million as of December 31, 2022.
(5) Net of unamortized debt issuance costs of $1 million as of December 31, 2023 and 2022.

Five-Year Term Loan

In 2022, the Company entered into a $500 million five-year unsecured term loan (the “Five-Year Term Loan”) that will mature on May 26, 2027. The loan bears interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate or the adjusted Secured Overnight Financing Rate (SOFR), plus an applicable margin based on the Company’s credit ratings.

Delayed Draw Term Loan

In 2022, the Company borrowed a $165 million two-year term loan tranche (the “Two-Year Term Loan”) and a $235 million three-year term loan tranche (the “Three-Year Term Loan”). In 2022, $50 million of the Two-Year Term Loan was repaid, with the remaining $115 million repaid in the second quarter of 2023. The Three-Year Term Loan will mature on May 26, 2025. The Delayed Draw Term Loan bears interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate or the adjusted SOFR, plus an applicable margin based on the Company’s credit ratings.
Unsecured Notes

In 2021, before the Separation, the Company completed an offering of $800 million aggregate principal amount of notes, consisting of $400 million of notes due 2026 (the “2026 Notes”) and $400 million of notes due 2031 (the “2031 Notes”). The 2026 Notes bear interest at a rate of 1.65% per annum payable semiannually in arrears on January 15 and July 15 of each year, beginning January 15, 2022, and maturing on July 15, 2026. The 2031 Notes bear interest at a rate of 2.65% per annum payable semiannually in arrears on January 15 and July 15 of each year, beginning January 15, 2022, and maturing on July 15, 2031.

Revolving Credit Facilities

In 2021, before the Separation, the Company entered into a five-year unsecured multi-currency Revolving Credit Facility (the “Revolving Credit Facility”). The Revolving Credit Facility provides commitments of up to $800 million, of which $60 million is available for the issuance of letters of credit. Loans under the Revolving Credit Facility bear interest at a fluctuating rate equal to (i) with respect to borrowings in dollars, at the Company’s option, the alternate base rate or the adjusted SOFR, (ii) with respect to borrowings in Canadian dollars, the reserve-adjusted Canadian Dollar Offered Rate and (iii) with respect to borrowings in Euros, the reserve-adjusted Euro Interbank Offered Rate, in each case, plus an applicable margin calculated based on the Company’s credit ratings. In addition, the Company is paying a commitment fee of 0.15% per annum on the unused portion of the commitments under the Revolving Credit Facility. No amounts were outstanding under the Revolving Credit Facility as of December 31, 2023, or December 31, 2022.

In 2022, in connection with the Clipper Acquisition, the Company assumed a revolving credit facility agreement under which it may borrow up to approximately £45 million ($54 million as of December 31, 2022) in aggregate at any time, which expired in November 2023. As of December 31, 2022, the Company had $18 million of borrowings outstanding under this agreement.

Amounts drawn and repaid in 90 days or less under the revolving credit facilities are presented net in the Consolidated Statement of Cash Flows.

Factoring Programs

The Company sells certain of its trade receivables on a non-recourse basis to third-party financial institutions under various factoring programs. The Company also sold certain European trade accounts receivables under a securitization program terminated in the first quarter of 2022. The Company accounts for these transactions as sales of receivables and presents cash proceeds as cash provided by operating activities in the Consolidated Statements of Cash Flows.

The Company accounts for these transactions as sales because the Company sells full title and ownership in the underlying receivables and control of the receivables is considered transferred. For these transfers, the receivables are removed from the Consolidated Balance Sheets at the date of transfer.
Information related to trade receivables sold was as follows:
Year Ended December 31,
(In millions)202320222021
Factoring program
Receivables sold in period$1,110 $992 $450 
Cash consideration1,103 988 449 
Securitization program
Receivables sold in period$— $— $1,850 
Cash consideration— — 1,850 
Net cash provided by (used in) operating cash flows21 35 (5)

Covenants and Compliance

The covenants in the Five-Year Term Loan, the Delayed Draw Term Loan, the Unsecured Notes and the Revolving Credit Facilities, which are customary for financings of this type, limit the Company’s ability to incur indebtedness and grant liens, among other restrictions. In addition, the facilities require the Company to maintain a consolidated leverage ratio below a specified maximum.

As of December 31, 2023, the Company complied with the covenants contained in its debt and financing arrangements.