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FINANCING ARRANGEMENTS | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Short-Term Debt Short-term debt was as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022
|  | Principal |  | Interest |  | Principal |  | Interest
(in millions except percentages) |  | Balance |  | Rate |  | Balance |  | Rate
Corporate commercial paper facility |  | $ | 225 |  |  | 5.8 | % |  | $ | 95 |  |  | 5.1 | %
Other short-term borrowings |  | 20 |  |  | 4.9 | % |  | 22 |  |  | 4.6 | %
Add: Current portion of long-term debt |  | 77 |  |  |  |  | 1 |  |  |
Total short-term debt |  | $ | 322 |  |  |  |  | $ | 118 |  |  |
Maximum month-end short-term debt outstanding during the year |  | $ | 399 |  |  |  |  | $ | 395 |  |  |
Average amount of short-term debt outstanding during the year |  | 284 |  |  |  |  | 289 |  |  |
Weighted-average interest rate on short-term debt at year-end |  |  |  | 5.7 | % |  |  |  | 5.0 | %
Short-Term Borrowings On May 12, 2023, the Company entered into a five-year senior unsecured multi-currency revolving facility, for an aggregate principal amount of $700 million that expires on May 12, 2028. This new facility replaced the prior $700 million five-year senior unsecured multi-currency revolving facility that was scheduled to expire on July 26, 2024. The Company also has a $500 million commercial paper program. The $700 million multi-currency revolving credit facility serves as a back-up to the commercial paper facility, thus the total available credit under the commercial paper facility and the multi-currency revolving credit facility in the aggregate is $700 million. The Company had outstanding borrowings of $225 million and $95 million under the commercial paper facility at December 31, 2023 and December 31, 2022, respectively, and no outstanding borrowings under the multi-currency revolving credit facility. The Company also has access to $44 million in uncommitted short-term financing under lines of credit from various financial institutions, the availability of which is reduced by other short-term borrowings of $20 million. At December 31, 2023, the Company had $499 million borrowings available under unused lines of credit, including lines available under its short-term arrangements and revolving credit agreement. Long-Term Debt Long-term debt was as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022
|  | Principal |  | Interest |  | Principal |  | Interest
(in millions except percentages) |  | Balance |  | Rate |  | Balance |  | Rate
Private placement notes 70 million euros due October 2024 |  | $ | 77 |  |  | 1.0 | % |  | $ | 75 |  |  | 1.0 | %
Private placement notes 25 million Swiss franc due December 2025 |  | 30 |  |  | 0.9 | % |  | 27 |  |  | 0.9 | %
Private placement notes 97 million euros due December 2025 |  | 107 |  |  | 2.1 | % |  | 104 |  |  | 2.1 | %
Private placement notes 26 million euros due February 2026 |  | 29 |  |  | 2.1 | % |  | 28 |  |  | 2.1 | %
Private placement notes 58 million Swiss franc due August 2026 |  | 69 |  |  | 1.0 | % |  | 63 |  |  | 1.0 | %
Private placement notes 106 million euros due August 2026 |  | 117 |  |  | 2.3 | % |  | 114 |  |  | 2.3 | %
Private placement notes 70 million euros due October 2027 |  | 77 |  |  | 1.3 | % |  | 75 |  |  | 1.3 | %
Private placement notes 8 million Swiss franc due December 2027 |  | 9 |  |  | 1.0 | % |  | 8 |  |  | 1.0 | %
Private placement notes 15 million euros due December 2027 |  | 17 |  |  | 2.2 | % |  | 16 |  |  | 2.2 | %
Private placement notes 140 million Swiss franc due August 2028 |  | 166 |  |  | 1.2 | % |  | 151 |  |  | 1.2 | %
Private placement notes 70 million euros due October 2029 |  | 77 |  |  | 1.5 | % |  | 75 |  |  | 1.5 | %
Fixed rate senior notes 750 million due June 2030 |  | 750 |  |  | 3.3 | % |  | 750 |  |  | 3.3 | %
Private placement notes 70 million euros due October 2030 |  | 77 |  |  | 1.6 | % |  | 75 |  |  | 1.6 | %
Private placement notes 45 million euros due February 2031 |  | 50 |  |  | 2.5 | % |  | 48 |  |  | 2.5 | %
Private placement notes 65 million Swiss franc due August 2031 |  | 77 |  |  | 1.3 | % |  | 70 |  |  | 1.3 | %
Private placement notes 12.6 billion Japanese yen due September 2031 |  | 89 |  |  | 1.0 | % |  | 96 |  |  | 1.0 | %
Private placement notes 70 million euros due October 2031 |  | 77 |  |  | 1.7 | % |  | 75 |  |  | 1.7 | %
Other borrowings, various currencies and rates |  | 14 |  |  |  |  | 21 |  |  |
Hedge accounting fair value adjustment(a) |  | (28) |  |  |  |  | (35) |  |  |
|  | $ | 1,881 |  |  |  |  | $ | 1,836 |  |  |
Less: Current portion |  |  |  |  |  |  |  |
(included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets) |  | 77 |  |  |  |  | 1 |  |  |
Less: Long-term portion of deferred financing costs |  | 8 |  |  |  |  | 9 |  |  |
Long-term portion |  | $ | 1,796 |  |  |  |  | $ | 1,826 |  |  |
(a) Represents the fair value of interest rate swap agreements entered into on a portion of the outstanding senior notes. The Company’s multi-currency revolving credit facility, term loans and senior notes contain certain affirmative and negative covenants relating to the Company’s operations and financial condition. At December 31, 2023, the Company was in compliance with all debt covenants. The contractual maturity dates of the Company’s long-term borrowings as of December 31, 2023 were as follows:
(in millions) |  |
2024 |  | $ | 77 |
2025 |  | 148 |
2026 |  | 218 |
2027 |  | 103 |
2028 |  | 166 |
2029 and beyond |  | 1,197 |
|  | $ | 1,909 |
Interest expense, net includes interest income of $16 million, $11 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively, primarily relating to interest-bearing cash equivalents and customer financing for our direct-to-consumer aligner solutions.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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