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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 ____________________________________ 
FORM 10-Q
____________________________________ 
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                 
Commission file number 001-39221
____________________________________ 

logo_otis (2).jpg
OTIS WORLDWIDE CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________ 
Delaware 83-3789412
(State or other jurisdiction of incorporation)(I.R.S. Employer Identification No.)
One Carrier Place, Farmington, Connecticut 06032
(Address of principal executive offices, including zip code)

(860) 674-3000
(Registrant's telephone number, including area code)
____________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange
on which registered
Common Stock ($0.01 par value)OTISNew York Stock Exchange
0.318% Notes due 2026OTIS/26New York Stock Exchange
0.934% Notes due 2031OTIS/31New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý.    No  ¨.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý.    No  ¨.
1
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerýAccelerated Filer¨
Non-accelerated Filer¨Smaller Reporting Company☐
Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐.    No  ý.

As of July 16, 2024 there were 400,554,767 shares of Common Stock outstanding.

2
OTIS WORLDWIDE CORPORATION
CONTENTS OF QUARTERLY REPORT ON FORM 10-Q
Quarter Ended June 30, 2024
 
 Page

Otis Worldwide Corporation's and its subsidiaries' names, abbreviations thereof, logos, and product and service designators are all either the registered or unregistered trademarks or tradenames of Otis Worldwide Corporation and its subsidiaries. Names, abbreviations of names, logos, and products and service designators of other companies are either the registered or unregistered trademarks or tradenames of their respective owners. As used herein, the terms "we," "us," "our," "the Company" or "Otis," unless the context otherwise requires, mean Otis Worldwide Corporation and its subsidiaries. References to Internet websites in this Form 10-Q are provided for convenience only. Information available through these websites is not incorporated by reference into this Form 10-Q.
3
PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements

OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) 

 Quarter Ended June 30,
(dollars in millions, except per share amounts; shares in millions)20242023
Net sales:
Product sales$1,421 $1,604 
Service sales2,180 2,116 
3,601 3,720 
Costs and expenses:
Cost of products sold1,168 1,328 
Cost of services sold1,354 1,309 
Research and development39 36 
Selling, general and administrative449 479 
3,010 3,152 
Other income (expense), net(21)12 
Operating profit570 580 
Non-service pension cost (benefit)(1)1 
Interest expense (income), net27 37 
Net income before income taxes544 542 
Income tax expense94 135 
Net income450 407 
Less: Noncontrolling interest in subsidiaries' earnings35 31 
Net income attributable to Otis Worldwide Corporation$415 $376 
Earnings per share (Note 2):
Basic$1.03 $0.91 
Diluted$1.02 $0.90 
Weighted average number of shares outstanding:
     Basic shares402.9412.7
     Diluted shares405.5416.0

See accompanying Notes to Condensed Consolidated Financial Statements.
4


OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) 

 Six Months Ended June 30,
(dollars in millions, except per share amounts; shares in millions)20242023
Net sales:
Product sales$2,701 $2,911 
Service sales4,337 4,155 
7,038 7,066 
Costs and expenses:
Cost of products sold2,235 2,426 
Cost of services sold2,696 2,561 
Research and development75 71 
Selling, general and administrative911 934 
5,917 5,992 
Other income (expense), net(7)19 
Operating profit1,114 1,093 
Non-service pension cost (benefit)(1)1 
Interest expense (income), net71 70 
Net income before income taxes1,044 1,022 
Income tax expense220 263 
Net income824 759 
Less: Noncontrolling interest in subsidiaries' earnings56 52 
Net income attributable to Otis Worldwide Corporation$768 $707 
Earnings per share (Note 2):
Basic$1.90 $1.71 
Diluted$1.89 $1.70 
Weighted average number of shares outstanding:
Basic shares404.0413.5
Diluted shares406.8416.9

See accompanying Notes to Condensed Consolidated Financial Statements.
5
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2024202320242023
Net income$450 $407 $824 $759 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments— (70)(25)(104)
Pension and postretirement benefit plan adjustments— — 9 — 
Change in unrealized cash flow hedging— (6)3 (3)
Other comprehensive income (loss), net of tax— (76)(13)(107)
Comprehensive income (loss), net of tax450 331 811 652 
Less: Comprehensive (income) loss attributable to noncontrolling interest(30)(18)(44)(42)
Comprehensive income attributable to Otis Worldwide Corporation$420 $313 $767 $610 

See accompanying Notes to Condensed Consolidated Financial Statements.
6
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(dollars in millions)June 30, 2024December 31, 2023
Assets
Cash and cash equivalents$942 $1,274 
Accounts receivable (net of allowance for expected credit losses of $131 and $130)
3,606 3,538 
Contract assets750 717 
Inventories605 612 
Other current assets335 259 
Total Current Assets6,238 6,400 
Future income tax benefits302 323 
Fixed assets (net of accumulated depreciation of $1,230 and $1,232)
708 727 
Operating lease right-of-use assets398 416 
Intangible assets, net330 335 
Goodwill1,553 1,588 
Other assets329 328 
Total Assets$9,858 $10,117 
Liabilities and Equity (Deficit)
Short-term borrowings and current portion of long-term debt$1,656 $32 
Accounts payable1,716 1,878 
Accrued liabilities1,719 1,873 
Contract liabilities2,804 2,696 
Total Current Liabilities7,895 6,479 
Long-term debt5,526 6,866 
Future pension and postretirement benefit obligations445 462 
Operating lease liabilities280 292 
Future income tax obligations 206 245 
Other long-term liabilities388 493 
Total Liabilities14,740 14,837 
Commitments and contingent liabilities (Note 16)
Redeemable noncontrolling interest52 135 
Shareholders' Equity (Deficit):
Common Stock and additional paid-in capital230 213 
Treasury Stock(2,987)(2,382)
Accumulated deficit(1,538)(2,005)
Accumulated other comprehensive income (loss)(751)(750)
Total Shareholders' Equity (Deficit)(5,046)(4,924)
Noncontrolling interest112 69 
Total Equity (Deficit)(4,934)(4,855)
Total Liabilities and Equity (Deficit)$9,858 $10,117 

See accompanying Notes to Condensed Consolidated Financial Statements.
7
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)

(dollars in millions, except per share amounts)Common Stock and Additional Paid-In CapitalTreasury StockAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Total Shareholders' Equity
(Deficit)		Noncontrolling InterestTotal Equity (Deficit) Redeemable Noncontrolling Interest
Quarter Ended June 30, 2024
Balance as of March 31, 2024$210 $(2,684)$(1,794)$(756)$(5,024)$84 $(4,940)$124 
Net income— — 415 — 415 33 448 2 
Other comprehensive income (loss), net of tax— — — 5 5 (1)4 (4)
Stock-based compensation and Common Stock issued under employee plans20 — (1)— 19 — 19 — 
Cash dividends declared ($0.39 per common share)
— — (157)— (157)— (157)— 
Repurchase of Common Shares— (303)— — (303)— (303)— 
Dividends attributable to noncontrolling interest— — — — — (3)(3)(1)
Acquisitions, disposals and other changes— — (1)— (1)(1)(2)(69)
Balance as of June 30, 2024$230 $(2,987)$(1,538)$(751)$(5,046)$112 $(4,934)$52 
Quarter Ended June 30, 2023
Balance as of March 31, 2023$172 $(1,750)$(2,653)$(626)$(4,857)$90 $(4,767)$129 
Net income— — 376 — 376 29 405 2 
Other comprehensive income (loss), net of tax— — — (63)(63)(7)(70)(6)
Stock-based compensation and Common Stock issued under employee plans11 — (1)— 10 — 10 — 
Cash dividends declared ($0.34 per common share)
— — (141)— (141)— (141)— 
Repurchase of Common Shares— (177)— — (177)— (177)— 
Dividends attributable to noncontrolling interest— — — — — (8)(8)(1)
Acquisitions, disposals and other changes— — — — — (3)(3)2 
Balance as of June 30, 2023$183 $(1,927)$(2,419)$(689)$(4,852)$101 $(4,751)$126 

See accompanying Notes to Condensed Consolidated Financial Statements.
8
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)

(dollars in millions, except per share amounts)Common Stock and Additional Paid-In CapitalTreasury StockAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Total Shareholders' Equity
(Deficit)		Noncontrolling InterestTotal Equity (Deficit) Redeemable Noncontrolling Interest
Six Months Ended June 30, 2024
Balance as of December 31, 2023$213 $(2,382)$(2,005)$(750)$(4,924)$69 $(4,855)$135 
Net income— — 768 — 768 51 819 5 
Other comprehensive income (loss), net of tax— — — (1)(1)(3)(4)(9)
Stock-based compensation and Common Stock issued under employee plans18 — (2)— 16 — 16 — 
Cash dividends declared ($0.73 per common share)
— — (295)— (295)— (295)— 
Repurchase of Common Shares— (605)— — (605)— (605)— 
Dividends attributable to noncontrolling interest— — — — — (4)(4)(9)
Acquisitions, disposals and other changes(1)— (4)— (5)(1)(6)(70)
Balance as of June 30, 2024$230 $(2,987)$(1,538)$(751)$(5,046)$112 $(4,934)$52 
Six Months Ended June 30, 2023
Balance as of December 31, 2022$162 $(1,575)$(2,865)$(592)$(4,870)$71 $(4,799)$135 
Net income— — 707 — 707 47 754 5 
Other comprehensive income (loss), net of tax— — — (97)(97)(5)(102)(5)
Stock-based compensation and Common Stock issued under employee plans21 — (1)— 20 — 20 — 
Cash dividends declared ($0.63 per common share)
— — (261)— (261)— (261)— 
Repurchase of Common Shares— (352)— — (352)— (352)— 
Dividends attributable to noncontrolling interest— — — — — (9)(9)(9)
Acquisitions, disposals and other changes— — 1 — 1 (3)(2)— 
Balance as of June 30, 2023$183 $(1,927)$(2,419)$(689)$(4,852)$101 $(4,751)$126 


See accompanying Notes to Condensed Consolidated Financial Statements.
9
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 Six Months Ended June 30,
(dollars in millions)20242023
Operating Activities:
Net income$824 $759 
Adjustments to reconcile net income to net cash flows provided by operating activities, net of acquisitions and dispositions:
Depreciation and amortization85 99 
Deferred income tax expense (benefit)(25)(16)
Stock compensation cost36 34 
Change in operating assets and liabilities:
Accounts receivable, net(171)(204)
Contract assets and liabilities, current107 154 
Inventories(10)(21)
Other current assets(60)(38)
Accounts payable(129)43 
Accrued liabilities(127)(85)
Pension contributions(24)(24)
Other operating activities, net(27)23 
Net cash flows provided by (used in) operating activities479 724 
Investing Activities:
Capital expenditures(55)(62)
Acquisitions of businesses and intangible assets, net of cash (Note 6)(40)(20)
Receipts (payments) on settlements of derivative contracts(4)(13)
Other investing activities, net2 4 
Net cash flows provided by (used in) investing activities(97)(91)
Financing Activities:
Net proceeds from (repayments of) borrowings (maturities of 90 days or less)323 57 
Dividends paid on Common Stock(295)(261)
Repurchases of Common Stock(600)(350)
Acquisition of noncontrolling interest shares(75)— 
Dividends paid to noncontrolling interest(11)(15)
Other financing activities, net(21)(16)
Net cash flows provided by (used in) financing activities(679)(585)
Effect of exchange rate changes on cash and cash equivalents(32)(16)
Net increase (decrease) in cash, cash equivalents and restricted cash(329)32 
Cash, cash equivalents and restricted cash, beginning of year1,280 1,195 
Cash, cash equivalents and restricted cash, end of period951 1,227 
Less: Restricted cash9 8 
Cash and cash equivalents, end of period$942 $1,219 

See accompanying Notes to Condensed Consolidated Financial Statements.
10
OTIS WORLDWIDE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1: General

The Condensed Consolidated Financial Statements as of June 30, 2024 and for the quarters and six months ended June 30, 2024 and 2023 are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles ("GAAP") in the United States ("U.S."). The results reported in these Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the Company's annual consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for fiscal year 2023 ("2023 Form 10-K" or "Form 10-K").

Unless the context otherwise requires, references to "Otis," "we," "us," "our" and "the Company" refer to Otis Worldwide Corporation and its subsidiaries.

There have been no changes to the Company's significant accounting policies described in the Company's 2023 Form 10-K that have a material impact on the Company's Condensed Consolidated Financial Statements and the related notes.

Use of Estimates. The preparation of these Condensed Consolidated Financial Statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in the context of the information reasonably available to us and the unknown future impacts of macroeconomic developments, including inflationary pressures, higher interest rates and tighter credit conditions, as of June 30, 2024 and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for credit losses, the carrying value of our goodwill and other long-lived assets, financial assets and revenue recognition. While there was not a material impact to our Condensed Consolidated Financial Statements as of June 30, 2024 and for the quarters and six months ended June 30, 2024 and 2023 resulting from our assessments of these matters, future assessment of our expectations of the magnitude and duration of these macroeconomic developments, as well as other factors, could result in material impacts to our Condensed Consolidated Financial Statements in future reporting periods.

We also assessed certain accounting matters as they relate to the ongoing conflict between Russia and Ukraine and the war in Israel and Gaza, including, but not limited to, our allowance for credit losses, the carrying value of long-lived assets, revenue recognition and the classification of assets. There was not a material impact to our Condensed Consolidated Financial Statements as of June 30, 2024 and for the quarters and six months ended June 30, 2024 and 2023 resulting from our assessment of these matters. We continue to assess the impact on our results of operations, financial position and overall performance as the situations develop and any broader implications they may have on the global economy.

Acquisition of Noncontrolling Interest. In April 2024, we notified the noncontrolling shareholders of our subsidiary in Japan that we were exercising our call option to acquire all of their outstanding shares. The estimated value of purchasing these shares was reflected in Redeemable noncontrolling interest in our Condensed Consolidated Balance Sheet as of March 31, 2024. The purchase of these shares was completed in the second quarter of 2024 for approximately $70 million.

Supplier Finance Programs. Certain Otis subsidiaries participate in supplier finance programs, under which we agree to pay third-party financial institutions the stated amounts of confirmed invoices from suppliers on the original maturity dates of the invoices, while the participating suppliers generally have the ability to sell, or otherwise pledge as collateral, their receivables from the Company to the participating financial institutions. The outstanding obligations confirmed by the Company as valid to the financial institutions under our supplier finance programs were $560 million and $627 million as of June 30, 2024 and December 31, 2023, respectively. These obligations are included in Accounts payable in the Condensed Consolidated Balance Sheets, and all activity related to the obligations is presented within operating activities on the Condensed Consolidated Statements of Cash Flows.

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Note 2: Earnings per Share

 Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions, except per share amounts; shares in millions)2024202320242023
Net income attributable to Otis Worldwide Corporation$415 $376 $768 $707 
Impact of redeemable noncontrolling interest— — — — 
Net income attributable to common shareholders$415 $376 $768 $707 
Basic weighted average number of shares outstanding402.9 412.7 404.0 413.5 
Stock awards and equity units (share equivalent)2.6 3.3 2.8 3.4 
Diluted weighted average number of shares outstanding405.5 416.0 406.8 416.9 
Earnings Per Share of Common Stock:
Basic$1.03$0.91$1.90$1.71
Diluted$1.02$0.90$1.89$1.70

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the Common Stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted earnings per share excludes the effect of the potential exercise of stock awards when the awards' assumed proceeds exceed the average market price of the common shares during the period. There were 1.1 million of anti-dilutive stock awards excluded from the computation for the quarters ended June 30, 2024 and 2023 and for the six months ended June 30, 2024 and 2023.

Note 3: Revenue Recognition

We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606: Revenue from Contracts with Customers.

Contract Assets and Liabilities. Contract assets reflect revenue recognized in advance of customer billing. Contract liabilities are recognized when a customer pays consideration, or we have a right to receive an amount of unconditional consideration, in advance of the satisfaction of performance obligations under the contract. We receive payments from customers based on the terms established in our contracts, which are progress payments as we perform contract work over time, payments in advance of performing work, or in some cases, payments upon completion of work.

Total Contract assets and Contract liabilities as of June 30, 2024 and December 31, 2023 are as follows:

(dollars in millions)June 30, 2024December 31, 2023
Contract assets, current$750 $717 
Total contract assets750 717 
Contract liabilities, current2,804 2,696 
Contract liabilities, non-current (included within Other long-term liabilities)39 48 
Total contract liabilities 2,843 2,744 
Net contract liabilities$2,093 $2,027 

Contract assets increased by $33 million during the six months ended June 30, 2024 as a result of the progression of current contracts and timing of billing on customer contracts. Contract liabilities increased by $99 million during the six months ended June 30, 2024 primarily due to billings on contracts in excess of revenue earned.

In the six months ended June 30, 2024 and 2023, we recognized revenue of approximately $1.6 billion and $1.5 billion related to contract liabilities as of January 1, 2024 and 2023, respectively.

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Remaining Performance Obligations ("RPO"). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of June 30, 2024, our total RPO was approximately $18.2 billion. Of the total RPO as of June 30, 2024, we expect approximately 90% will be recognized as sales over the following 24 months.

Note 4: Accounts Receivable, Net

Accounts receivable, net consisted of the following as of June 30, 2024 and December 31, 2023:

(dollars in millions)June 30, 2024December 31, 2023
Trade receivables$3,429 $3,390 
Unbilled receivables148 119 
Miscellaneous receivables97 96 
Customer financing notes receivable63 63 
3,737 3,668 
Less: allowance for expected credit losses(131)(130)
Accounts receivable, net$3,606 $3,538 

The changes in allowance for expected credit losses related to Accounts receivable, net for the six months ended June 30, 2024 and 2023, respectively, are as follows:

Six months ended June 30,
(dollars in millions)20242023
Balance as of January 1$130 $152 
Provision for expected credit losses12 18 
Write-offs charged against the allowance for expected credit losses(7)(25)
Foreign exchange and other(4)(2)
Balance as of June 30$131 $143 

Note 5: Inventories

Inventories consisted of the following as of June 30, 2024 and December 31, 2023:

(dollars in millions)June 30, 2024December 31, 2023
Raw materials and work-in-process$145 $154 
Finished goods460 458 
Total$605 $612 

Raw materials, work-in-process and finished goods are net of valuation write-downs of $87 million as of June 30, 2024 and December 31, 2023.

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Note 6: Business Acquisitions, Goodwill and Intangible Assets

Business Acquisitions. Our acquisitions of businesses and intangible assets, net of cash, totaled $40 million and $20 million in the six months ended June 30, 2024 and 2023, respectively, and were primarily in our Service segment. Transaction costs incurred were not considered significant.

Goodwill. Changes in our Goodwill balances during the six months ended June 30, 2024 were as follows:

(dollars in millions)Balance as of December 31, 2023Goodwill Resulting
from Business Combinations		Foreign Currency
Translation 
and Other
Balance as of
June 30, 2024
New Equipment$295$—$(10)$285
Service1,29316(41)1,268
Total$1,588$16$(51)$1,553

Intangible Assets. Intangible assets cost and accumulated amortization were $2,043 million and $1,713 million, respectively, as of June 30, 2024, and $2,072 million and $1,737 million, respectively, as of December 31, 2023.

Amortization of intangible assets for the quarter and six months ended June 30, 2024 was $15 million and $31 million, respectively, compared to $17 million and $34 million for the same periods in 2023. Excluding the impact of acquisitions and currency translation adjustments, there were no other significant changes in our Intangible assets during the quarters and six months ended June 30, 2024 and 2023.

Note 7: Borrowings and Lines of Credit

(dollars in millions)June 30, 2024December 31, 2023
Commercial paper$320$—
Other borrowings3632
Total short-term borrowings$356$32

Commercial Paper. As of June 30, 2024, there were $320 million borrowings outstanding under the Company's $1.5 billion commercial paper programs. We use our commercial paper borrowings for general corporate purposes including to finance acquisitions, pay dividends, repurchase shares and for debt refinancing. The need for commercial paper borrowings may arise if the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S.

For details regarding the Company's short-term borrowing activity in 2023, refer to Note 9 of the Company's audited consolidated financial statements and notes thereto included in our 2023 Form 10-K.

14
Long-term debt.

As of June 30, 2024, we had a revolving credit agreement with various banks providing for a $1.5 billion unsecured, unsubordinated five-year revolving credit facility, maturing March 10, 2028. As of June 30, 2024, there were no borrowings under the revolving credit agreement. As of June 30, 2024, the Company is in compliance with all covenants in the revolving credit agreement and the indentures governing all outstanding long-term debt. Long-term debt consisted of the following:

(dollars in millions)June 30, 2024December 31, 2023
2.056% notes due 2025
$1,300 $1,300 
0.37% notes due 2026 (¥21.5 billion principal value)
135 150 
0.318% notes due 2026 (€600 million principal value)
642 658 
2.293% notes due 2027
500 500 
5.250% notes due 2028
750 750 
2.565% notes due 2030
1,500 1,500 
0.934% notes due 2031 (€500 million principal value)
535 548 
3.112% notes due 2040
750 750 
3.362% notes due 2050
750 750 
Other (including finance leases)4 4 
Total principal long-term debt6,866 6,910 
Other (discounts and debt issuance costs)(40)(44)
Total long-term debt6,826 6,866 
Less: current portion1,300 — 
Long-term debt, net of current portion$5,526 $6,866 

We may redeem any series of notes at our option pursuant to certain terms. For additional details regarding the Company's debt activity in 2023, refer to Note 9 of the Company's audited consolidated financial statements and notes thereto included in our 2023 Form 10-K.

Debt discounts and debt issuance costs are presented as a reduction of debt on the Condensed Consolidated Balance Sheets and are amortized as a component of interest expense over the term of the related debt using the effective interest method. The Condensed Consolidated Statements of Operations for the quarters and six months ended June 30, 2024 and 2023 reflects the following:

Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2024202320242023
Debt issuance costs amortization$2 $2 $4 $4 
Total interest expense on external debt43 34 86 67 

The unamortized debt issuance costs as of June 30, 2024 and December 31, 2023 were $37 million and $42 million, respectively.

The weighted average maturity of our long-term debt as of June 30, 2024 is approximately 7.4 years. The weighted average interest expense rate on our borrowings outstanding as of June 30, 2024 and December 31, 2023 was as follows:

June 30, 2024December 31, 2023
Short-term commercial paper5.5%—%
Total long-term debt2.5%2.5%

15
The weighted average interest expense rate on our borrowings during the quarters and six months ended June 30, 2024 and 2023 was as follows:

Quarter Ended June 30,Six Months Ended June 30,
2024202320242023
Short-term commercial paper5.5%4.9%5.5%4.9%
Total long-term debt2.5%2.0%2.5%2.0%

Note 8: Employee Benefit Plans

Pension and Postretirement Plans. The Company sponsors both funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit plans, and defined contribution plans. Contributions to our plans were as follows:

 Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2024202320242023
Defined benefit plans$12 $10 $24 $24 
Defined contribution plans16 15 36 34 
Multi-employer pension and postretirement plans42 41 82 75 

The following table illustrates the components of net periodic benefit cost for the Company's defined benefit pension plans:

 Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2024202320242023
Service cost$8 $8 $16