v3.25.4
Sale of Receivables
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Sale of Receivables Sale of Receivables
The Company is party to factoring facilities with various financial institutions (the “purchasers”) with an aggregate capacity of $225 million.
The receivables sold under the factoring facilities are without recourse for any customer credit risk and result in a true sale. Receivables are derecognized in their entirety when sold, and the Company’s continuing involvement is limited to their servicing, for which the Company receives a fee commensurate
with the service provided and therefore no servicing asset or liability related to these receivables was recognized for any period presented. The fair value of the sold receivables approximated their book value due to their short-term nature. Proceeds from the sold receivables are primarily reflected in operating cash flows on the Consolidated Statements of Cash Flows.
During the years ended December 31, 2025, 2024 and 2023, the Company incurred purchase discount fees of $1 million, $2 million, and $5 million, respectively, which are presented in general and administrative expenses on the Consolidated Statements of Earnings.
The table below summarizes the activity under the factoring facilities:
December 31,
(Dollars in millions)20252024
Beginning balance$130 $192 
Sales of receivables130 190 
Cash returned to purchasers(190)(252)
Outstanding balance sold to purchasers70 130 
Cash collected, not remitted to purchasers(1)
(1)— 
Remaining sold receivables $69 $130 
________________
(1)Represents cash collected on behalf of purchasers and not yet remitted. This balance is included within short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheets.