Supplier Finance Program Obligations

12 Months Ended

Dec. 31, 2024

11. Supplier Finance Program Obligations

The Company has an agreement with an external payment service provider to facilitate the payments to certain suppliers. The outstanding obligations confirmed towards the external payment service provider are recorded in Accounts Payable in the Consolidated Balance Sheet until payment has been effected. The Company has undertaken to make sure the payment is effected on the original invoice maturity date. The average payment terms during 2024 was 117 days.

The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the year ended December 31, 2024 is as follows (dollars in millions):


	As of December 31,
(Dollars in millions)	2024			2023
Confirmed obligations outstanding at beginning of the period	$	345		$	314
Invoices confirmed during the period		1,536			1,436
Confirmed invoices paid during the period		(1,546	)		(1,405	)
Confirmed obligations outstanding at end of the period	$	335		$	345