Financing Arrangements
We had total debt outstanding of $1.8 billion at both December 31, 2025 and 2024. As of December 31, 2025 and 2024, our other short-term and other long-term borrowings consisted primarily of amounts outstanding under various term loans or unsecured local country operating lines of credit.
On August 27, 2025, we entered into a new revolving credit agreement to replace the previous revolving credit agreement, which was terminated as of the same date. The new revolving credit facility agreement provides for a five-year unsecured revolving credit facility in an aggregate principal amount of $1.0 billion outstanding at any time. The facility will mature on August 27, 2030. Loans under the revolving credit facility accrue interest at a per annum rate equal, at our option, to either a term rate based upon the secured overnight financing rate (“SOFR”) plus an applicable margin, or a base rate (generally determined according to the highest of the prime rate, the federal funds rate plus 0.50%, or the one-month term SOFR rate plus 1.00%) plus an applicable margin. No borrowings were outstanding under the facility as of December 31, 2025.
We maintain a commercial paper program under which we may issue senior unsecured notes of short maturities up to a maximum aggregate principal amount of $1.0 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. During 2025, there was no commercial paper activity and no outstanding balance. During 2024, the average amount of commercial paper outstanding was $31 million with an average interest rate of 5.51 percent and a weighted average maturity of 8 days. As of December 31, 2024, we had no commercial paper outstanding. The amount of commercial paper outstanding under this program in 2026 is expected to fluctuate. The commercial paper program is backed by up to $1.0 billion of borrowing availability under the revolving credit facility.
Presented below are our debt carrying amounts, net of related discounts, premiums and debt issuance costs and fair values as of December 31, 2025 and 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 |
| | Carrying
Value | | Fair
Value | | Carrying
Value | | Fair
Value |
2.900% senior notes due June 1, 2030 | | $ | 597 | | | $ | 567 | | | $ | 597 | | | $ | 540 | |
3.200% senior notes due October 1, 2026 (i) | | 499 | | | 497 | | | 499 | | | 486 | |
3.900% senior notes due June 1, 2050 | | 392 | | | 304 | | | 391 | | | 292 | |
6.625% senior notes due April 15, 2037 | | 253 | | | 280 | | | 253 | | | 268 | |
| Revolving credit agreement | | — | | | — | | | — | | | — | |
| Other long-term borrowings | | 1 | | | 1 | | | 47 | | | 47 | |
| Total long-term debt | | 1,742 | | | 1,649 | | | 1,787 | | | 1,633 | |
| Commercial paper | | — | | | — | | | — | | | — | |
| Other short-term borrowings | | 48 | | | 48 | | | 44 | | | 44 | |
| Total short-term borrowings | | 48 | | | 48 | | | 44 | | | 44 | |
| Total debt | | $ | 1,790 | | | $ | 1,697 | | | $ | 1,831 | | | $ | 1,677 | |
(i)The senior note due October 1, 2026 is classified as a long-term note as we have the intent and ability to refinance on a long-term basis.
We guarantee certain obligations of our consolidated subsidiaries, which aggregated to $39 million and $35 million at December 31, 2025 and 2024.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.