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Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Information

Supplemental Cash Flow Information

15. Supplemental Cash Flow Information

Income taxes paid in cash were as follows:


		Nine months ended September 30,
		2023			2022
U.S.		$	12		$	9
Non-U.S.			101			128
Total income taxes paid in cash		$	113		$	137

Interest paid, including note repurchase premiums, in cash for the nine months ended September 30, 2023 and 2022 was $222 million and $172 million, respectively. Cash interest for the nine months ended September 30, 2023 and 2022 included $3 million and $17 million, respectively, of note repurchase premiums.

The Company uses various factoring programs to sell certain trade receivables to financial institutions as part of managing its cash flows. Sales of trade receivables are accounted for in accordance with ASC Topic 860, Transfers and Servicing. Trade receivables sold under the factoring programs are transferred without recourse to the Company and accounted for as true sales and, therefore, are excluded from Trade receivables, net in the Condensed Consolidated Balance Sheet. At September 30, 2023, December 31, 2022 and September 30, 2022, the total amount of trade receivables sold by the Company was $536 million, $535 million, and $447 million, respectively. These amounts included $179 million, $158 million and $174 million at September 30, 2023, December 31, 2022, and September 30, 2022, respectively, for trade receivable amounts factored under supply chain financing programs linked to commercial arrangements with key customers. The Company’s use of its factoring programs resulted in an increase in cash provided by operating activities of approximately $1 million for the nine months ended September 30, 2023 and a decrease in cash provided by operating activities of approximately $34 million for the nine months ended September 30, 2022. For the nine months ended September 30, 2023 and 2022, the Company recorded expenses related to these factoring programs of approximately $17 million and $6 million, respectively.

In accordance with ASU 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” the Company has agreements with third-party administrators that allow participating vendors to track the Company’s payments, and if voluntarily elected by the vendor, to sell payment obligations from the Company to financial institutions as part of a Supply Chain Financing (“SCF”) Program. The Company's payment terms to the financial institutions, including the timing and amount of payments, are based on the original supplier invoices. When participating vendors elect to sell one or more of the Company’s payment obligations, the Company’s rights and obligations to settle the payables on their contractual due date are not impacted. The Company has no economic or commercial interest in a vendor’s decision to enter into these agreements, and the financial institutions do not provide the Company with incentives, such as rebates or profit sharing under the SCF Program. The Company agrees on commercial terms with vendors for the goods and services procured, which are consistent with payment terms observed at other peer companies in the industry, and the terms are not impacted by the SCF Program. Such obligations are classified as accounts payable in its Condensed Consolidated Balance Sheets. The Company does not provide asset pledges, or other forms of guarantees, as security for the committed payment to the financial institutions. As of September 30, 2023, December 31, 2022 and September 30, 2022, the Company had approximately $119 million, $110 million, and $102 million, respectively, of outstanding payment obligations to the financial institutions as part of the SCF Program.