EBAY INC

Previous wording

You should read the following Management’s Discussion and Analysis of Financial Condition and Results of Operations in conjunction with the condensed consolidated financial statements and the related notes included in this report. This section of this Form 10-Q generally discusses items relating to the three and six-month periods ended June 30, 2024 and 2023 and comparisons between the respective periods.

Current wording

You should read the following Management’s Discussion and Analysis of Financial Condition and Results of Operations in conjunction with the condensed consolidated financial statements and the related notes included in this report. This section of this Form 10-Q generally discusses items relating to the three and nine-month periods ended September 30, 2024 and 2023 and comparisons between the respective periods.

Previous wording

In 2023 and through the second quarter of 2024, we experienced dynamic discretionary spending trends resulting from geopolitical events, inflationary pressure, foreign exchange rate volatility, elevated interest rates and lower consumer confidence. These trends are uncertain in duration and are expected to continue. In addition, our operating and financial results may continue to fluctuate as a result of changes in the legal and regulatory landscape and our response to those developments.

Current wording

In 2023 and through the third quarter of 2024, we experienced dynamic discretionary spending trends resulting from geopolitical events, inflationary pressure, foreign exchange rate volatility, elevated interest rates and lower consumer confidence. These trends are uncertain in duration and are expected to continue. In addition, our operating and financial results may continue to fluctuate as a result of changes in the legal and regulatory landscape and our response to those developments.

Previous wording

We present foreign exchange neutral (“FX-Neutral”) net revenues to supplement our results of operations presented in accordance with generally accepted accounting principles (“GAAP”) and to enhance investors’ understanding of our global business performance by excluding the positive or negative year-over-year impact of foreign currency movements on reported net revenues. We define FX-Neutral net revenues as GAAP net revenues minus the exchange rate effect, which we calculate by applying prior period foreign currency exchange rates to current year transactional currency amounts, excluding hedging activity. We believe presenting FX-Neutral net revenues provides useful information to both management and investors by isolating the effects of foreign currency exchange rate fluctuations that may not be indicative of our core operating results. In addition, because we have historically reported certain FX-Neutral results to investors, we believe that the inclusion of these FX-Neutral measures provides consistency in our financial reporting. FX-Neutral net revenues are non-GAAP financial measures that are not based on any comprehensive set of accounting rules or principles and may be calculated differently than other “FX-Neutral,” “constant currency” or similarly titled measures used by other companies. FX-Neutral net revenues are not presented as an alternative to GAAP net revenues and should only be used to evaluate our results of operations in conjunction with GAAP net revenues.

Current wording

We present foreign exchange neutral (“FX-Neutral”) net revenues to supplement our results of operations presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and to enhance investors’ understanding of our global business performance by excluding the positive or negative year-over-year impact of foreign currency movements on reported net revenues. We define FX-Neutral net revenues as GAAP net revenues minus the exchange rate effect, which we calculate by applying prior period foreign currency exchange rates to current year transactional currency amounts, excluding hedging activity. We believe presenting FX-Neutral net revenues provides useful information to both management and investors by isolating the effects of foreign currency exchange rate fluctuations that may not be indicative of our core operating results. In addition, because we have historically reported certain FX-Neutral results to investors, we believe that the inclusion of these FX-Neutral measures provides consistency in our financial reporting. FX-Neutral net revenues are non-GAAP financial measures that are not based on any comprehensive set of accounting rules or principles and may be calculated differently than other “FX-Neutral,” “constant currency” or similarly titled measures used by other companies. FX-Neutral net revenues are not presented as an alternative to GAAP net revenues and should only be used to evaluate our results of operations in conjunction with GAAP net revenues.

Previous wording

Net revenues increased 1% to $2,572 million during the three months ended June 30, 2024 compared to the same period in 2023. FX-Neutral net revenues (as defined above) increased 2% during the three months ended June 30, 2024 compared to the same period in 2023. Operating margin increased to 21.3% for the three months ended June 30, 2024 compared to 20.4% for the same period in 2023.

Current wording

Net revenues increased 3% to $2,576 million during the three months ended September 30, 2024 compared to the same period in 2023. FX-Neutral net revenues (as defined above) increased 3% during the three months ended September 30, 2024 compared to the same period in 2023. Operating margin increased to 23.1% for the three months ended September 30, 2024 compared to 18.2% for the same period in 2023.

Previous wording

We recorded $222 million of aggregate losses in loss on equity investments and warrant, net on our condensed consolidated statement of income during the three months ended June 30, 2024 compared to $214 million of aggregate losses recorded during the same period in 2023.

Current wording

We recorded $199 million of aggregate gains in gain (loss) on equity investments and warrant, net on our condensed consolidated statement of income during the three months ended September 30, 2024 compared to $1,212 million of aggregate gains recorded during the same period in 2023.

Previous wording

We generated cash flow from continuing operating activities of $367 million during the three months ended June 30, 2024 compared to $605 million in the same period in 2023.

Current wording

We generated cash flow from continuing operating activities of $755 million during the three months ended September 30, 2024 compared to $862 million in the same period in 2023.

Previous wording

During the three months ended June 30, 2024, we made cash payments of $1.0 billion related to the purchase of common stock and $135 million in dividends.

Current wording

During the three months ended September 30, 2024, we made cash payments of $755 million related to the purchase of common stock and $131 million in dividends.

Previous wording

On August 1, 2024, we repaid the $750 million aggregate principal amount of our previously outstanding 3.450% senior notes on the date of maturity. We intend to issue up to $450 million of commercial paper to refinance a portion of the related debt.

Current wording

In August 2024, we repaid the $750 million aggregate principal amount of our previously outstanding 3.450% senior notes on the date of maturity. As of September 30, 2024, we had $450 million of commercial paper notes outstanding with a weighted average interest rate of 5.09% per annum, and a weighted average remaining term of 114 days.

Previous wording

We have one reportable segment to reflect the way management and our chief operating decision maker review and assess performance of the business. Our reportable segment is Marketplace, which includes our online marketplace located at www.ebay.com and its localized counterparts, our off-platform businesses in Japan and the United States, and our suite of mobile apps. The accounting policies of our segment are the same as those described in “Note 1 — The Company and Summary of Significant Accounting Policies” in our condensed consolidated financial statements included elsewhere in this report.

Current wording

We have one reportable segment to reflect the way management and our chief operating decision maker review and assess performance of the business. Our reportable segment is Marketplace, which includes our online marketplace located at www.ebay.com and its localized counterparts, our off-platform businesses in Japan and the United States, and our suite of mobile apps. The accounting policies of our segment are the same as those described in “Note 1 — The Company and Summary of Significant Accounting Policies” in our condensed consolidated financial statements included in this report.

Previous wording

(1)Net revenues included $10 million and $20 million of hedging losses during the three and six months ended June 30, 2024, respectively, compared to $14 million and $43 million of hedging gains during the same periods in 2023.

Current wording

(1)Net revenues included $11 million and $31 million of hedging losses during the three and nine months ended September 30, 2024, respectively, compared to $2 million and $45 million of hedging gains during the same periods in 2023.

Previous wording

(2)Foreign currency movements relative to the U.S. dollar had an unfavorable impact of $11 million and a favorable impact of $3 million on net revenues during the three and six months ended June 30, 2024, respectively, compared to unfavorable impacts of $9 million and $54 million during the same periods in 2023. The effect of foreign currency exchange rate movements during the three months ended June 30, 2024 compared to the same period in 2023 was primarily attributable to the strengthening of the U.S. dollar against the euro and other major currencies while the effect of foreign currency exchange rate movements during the six months ended June 30, 2024 compared to the same period in 2023 was primarily attributable to the weakening of the U.S. dollar against the euro and British pound.

Current wording

(2)Foreign currency movements relative to the U.S. dollar had unfavorable impacts of $6 million and $3 million on net revenues during the three and nine months ended September 30, 2024, respectively, compared to a favorable impact of $43 million and an unfavorable impact of $11 million during the same periods in 2023. The effect of foreign currency exchange rate movements during the three and nine months ended September 30, 2024 compared to the same periods in 2023 was primarily attributable to the strengthening of the U.S. dollar against the euro and other major currencies.

Previous wording

(1)Net revenues included $10 million and $20 million of hedging losses during the three and six months ended June 30, 2024, respectively, compared to $14 million and $43 million of hedging gains during the same periods in 2023.

Current wording

(1)Net revenues included $11 million and $31 million of hedging losses during the three and nine months ended September 30, 2024, respectively, compared to $2 million and $45 million of hedging gains during the same periods in 2023.

Previous wording

The increase in net revenues is related to higher GMV driven by the investment in focus categories and the expansion of promoted listings products, eBay International Shipping and payment services. The increase in net revenues and GMV was impacted by dynamic discretionary spending trends resulting from geopolitical events, inflationary pressure, foreign exchange rate volatility, elevated interest rates and lower consumer confidence during the three and six months ended June 30, 2024 compared to the same periods in 2023.

Current wording

During the three and nine months ended September 30, 2024, the increase in net revenues was primarily due to higher GMV and the expansion of promoted listings products, eBay International Shipping and financial services offered to buyers and sellers within our payments platform. Net revenues and GMV increased despite the impact of dynamic discretionary spending trends resulting from geopolitical events, inflationary pressure, foreign exchange rate volatility, elevated interest rates and lower consumer confidence.

Previous wording

(1)Cost of net revenues were net of immaterial hedging activity during the three and six months ended June 30, 2024 and 2023, respectively.

Current wording

(1)Cost of net revenues were net of immaterial hedging activity during the three and nine months ended September 30, 2024 and 2023, respectively.

Previous wording

(2)Foreign currency movements relative to the U.S. dollar had a favorable impact of $1 million and an unfavorable impact of $2 million on cost of net revenues during the three and six months ended June 30, 2024, respectively, compared to favorable impacts of $3 million and $15 million during the same periods in 2023.

Current wording

(2)Foreign currency movements relative to the U.S. dollar had unfavorable impacts of $1 million and $3 million on cost of net revenues during the three and nine months ended September 30, 2024, respectively, compared to an unfavorable impact of $8 million and a favorable impact of $7 million during the same periods in 2023.

Previous wording

The increase in cost of net revenues during the three months ended June 30, 2024 compared to the same period in 2023 was primarily due to a $25 million increase related to indirect tax matters, a $15 million increase in cost of promoted listings products and an $11 million disposition of data center equipment, partially offset by a

Current wording

The increase in cost of net revenues during the three months ended September 30, 2024 compared to the same period in 2023 was primarily due to a $21 million increase related to indirect tax matters, a $15 million increase in cost of promoted listings products and an $8 million increase in site operations costs, partially offset by a $16 million decrease in payment processing costs driven by rate improvements and a $14 million decrease in depreciation expense due to the change in our estimate of the useful lives for our servers and networking equipment.

Previous wording

The increase in cost of net revenues during the six months ended June 30, 2024 compared to the same period in 2023 was primarily due to a $30 million increase related to eBay International Shipping, a $26 million increase in cost of promoted listings products, a $29 million increase related to indirect tax matters and an $11 million disposition of data center equipment, partially offset by a $43 million decrease in depreciation expense due to the change in our estimate of the useful lives for our servers and networking equipment and a $20 million decrease in payment processing costs driven by rate improvements.

Current wording

The increase in cost of net revenues during the nine months ended September 30, 2024 compared to the same period in 2023 was primarily due to a $50 million increase related to indirect tax matters, a $41 million increase in cost of promoted listings products, a $30 million increase related to eBay International Shipping and an $11 million disposition of data center equipment, partially offset by a $57 million decrease in depreciation expense due to the change in our estimate of the useful lives for our servers and networking equipment and a $36 million decrease in payment processing costs driven by rate improvements.

Previous wording

(1)Operating expenses were net of immaterial hedging activity during the three and six months ended June 30, 2024 and 2023, respectively.

Current wording

(1)Operating expenses were net of immaterial hedging activity during the three and nine months ended September 30, 2024 and 2023, respectively.

Previous wording

(2)Foreign currency movements relative to the U.S. dollar had a favorable impact of $6 million and $3 million on operating expenses during the three and six months ended June 30, 2024, respectively, compared to a favorable impact of $11 million and $41 million during the same periods in 2023.

Current wording

(2)Foreign currency movements relative to the U.S. dollar had an unfavorable impact of $1 million and a favorable impact of $2 million on operating expenses during the three and nine months ended September 30, 2024, respectively, compared to an unfavorable impact of $8 million and a favorable impact of $33 million during the same periods in 2023.

Previous wording

The increase in sales and marketing expenses during the three months ended June 30, 2024 compared to the same period in 2023 was primarily due to a $44 million increase in advertising and marketing program costs (both online and offline), partially offset by a $23 million decrease in employee-related costs.

Current wording

The increase in sales and marketing expenses during the three months ended September 30, 2024 compared to the same period in 2023 was primarily due to a $31 million increase in online and offline marketing program costs inclusive of user coupons, partially offset by an $11 million decrease in employee-related costs.

Previous wording

The increase in sales and marketing expenses during the six months ended June 30, 2024 compared to the same period in 2023 was primarily due to a $89 million increase in advertising and marketing program costs (both online and offline), partially offset by a $37 million decrease in employee-related costs.

Current wording

The increase in sales and marketing expenses during the nine months ended September 30, 2024 compared to the same period in 2023 was primarily due to a $118 million increase in online and offline marketing program costs inclusive of user coupons, partially offset by a $48 million decrease in employee-related costs.

Previous wording

The decrease in product development expenses during the three and six months ended June 30, 2024 compared to the same periods in 2023 was primarily due to a decrease in employee-related costs. While employee costs are decreasing, we continue to invest in strategic areas such as browsing experience, search optimization and providing relevant recommendations to enhance the experience for our customers around the world.

Current wording

The decrease in product development expenses during the three and nine months ended September 30, 2024 compared to the same periods in 2023 was primarily due to a decrease in employee-related costs. While employee costs are decreasing, we continue to invest in strategic areas such as browsing experience, search optimization and providing relevant recommendations to enhance the experience for our customers around the world.

Previous wording

Capitalized internal use and platform development costs were $28 million and $57 million during the three and six months ended June 30, 2024, respectively, compared to $28 million and $58 million during the same periods in 2023. These costs are primarily reflected as a cost of net revenues when amortized in future periods.

Current wording

Capitalized internal use and platform development costs were $27 million and $84 million during the three and nine months ended September 30, 2024, respectively, compared to $28 million and $86 million during the same periods in 2023. These costs are primarily reflected as a cost of net revenues when amortized in future periods.

Previous wording

The decrease in general and administrative expenses during the three months ended June 30, 2024 compared to the same period in 2023 was primarily due to a decrease in employee-related costs.

Current wording

The decrease in general and administrative expenses during the three months ended September 30, 2024 compared to the same period in 2023 was primarily due to a $50 million legal accrual release during the third quarter of 2024 compared to a $50 million increase in the legal accrual recorded during the third quarter of 2023, partially offset by a $10 million contribution to the eBay Foundation during the third quarter of 2024. See “Note 10 — Commitments and Contingencies” to the condensed consolidated financial statements included in this report for additional details regarding our legal matters.

Previous wording

The decrease in general and administrative expenses during the six months ended June 30, 2024 compared to the same period in 2023 was primarily due to a $48 million decrease in one-time restructuring costs. See “Note 15 — Restructuring” to the condensed consolidated financial statements included in this report for more information on the restructuring.

Current wording

The decrease in general and administrative expenses during the nine months ended September 30, 2024 compared to the same period in 2023 was primarily due to a $50 million legal accrual release during the third quarter of 2024 compared to a $50 million increase in the legal accrual recorded during the third quarter of 2023 and a $52 million decrease in one-time restructuring costs. See “Note 10 — Commitments and Contingencies” and “Note 15 — Restructuring” to the condensed consolidated financial statements included in this report for additional details regarding our legal matters and the restructuring, respectively.

Previous wording

The decrease in provision for transaction losses during the three months ended June 30, 2024 compared to the same period in 2023 was primarily due to a slight decrease in buyer and seller fraud rates.

Current wording

The increase in provision for transaction losses during each of the three and nine months ended September 30, 2024 compared to the same period in 2023 was primarily due to a prior year recovery that did not reoccur in the current periods.

Previous wording

Loss on equity investments and warrant, net primarily consists of gains and losses related to our various types of equity investments, including our equity investments in Adevinta ASA (“Adevinta”), Gmarket Global LLC (“Gmarket”) and KakaoBank Corp. (“KakaoBank”), and gains and losses due to changes in fair value of the warrant received from Adyen N.V. (“Adyen”) and the Aurelia Option (as defined in “Note 5 — Investments”). The following table presents loss on equity investments and warrant, net for the periods indicated (in millions, except percentages):

Current wording

Gain (loss) on equity investments and warrant, net primarily consists of gains and losses related to our various types of equity investments, including our equity investments in Adevinta ASA (“Adevinta”) and Gmarket Global LLC (“Gmarket”), and gains and losses due to changes in fair value of the warrant received from Adyen N.V. (“Adyen”) and the Aurelia Option (as defined in “Note 5 — Investments”). The following table presents gain (loss) on equity investments and warrant, net for the periods indicated (in millions, except percentages):

Previous wording

The change in loss on equity investments and warrant, net during the three and six months ended June 30, 2024 compared to the same period in 2023 was primarily driven by the change in the fair value of our equity investments and the warrant as well as the realized gain from the sale of shares in Adevinta and the related fair value of the Aurelia Option. See “Note 5 — Investments” to the condensed consolidated financial statements included in this report for more information on the Adevinta Transactions and the Aurelia Option.

Current wording

The change in gain (loss) on equity investments and warrant, net during the nine months ended September 30, 2024 compared to the same period in 2023 was primarily driven by the change in the fair value of our equity investments and the warrant as well as the realized gain from the sale of shares in Adevinta and the related fair value of the Aurelia Option. See “Note 5 — Investments” to the condensed consolidated financial statements included in this report for more information on the Adevinta Transactions and the Aurelia Option.

Previous wording

Interest expense decreased during the six months ended June 30, 2024 primarily due to a lower average notional amount of outstanding debt compared to the same period in 2023.

Current wording

Interest expense decreased during the three and nine months ended September 30, 2024, primarily due to a lower average notional amount of outstanding debt compared to the same periods in 2023.

Previous wording

Interest income increased during the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to higher yields on interest bearing instruments. We expect this trend to continue to a lesser extent in 2024.

Current wording

Interest income increased during the three and nine months ended September 30, 2024 compared to the same periods in 2023, primarily due to higher yields on interest bearing instruments.

Previous wording

The decrease in our effective tax rate for the three and six months ended June 30, 2024 compared to the same periods in 2023 was primarily due to the lapping of the increase in reserves for uncertain tax positions in 2023. The three months ended June 30, 2024 also includes the reversal of the benefit related to the apportionment of dividends recorded in the first quarter of 2024 due to a favorable court ruling, which was legislatively superseded in the California budget.

Current wording

The decrease in our effective tax rate for the three and nine months ended September 30, 2024 compared to the same periods in 2023 was primarily due to the excess tax benefits on stock-based compensation.

Previous wording

We are regularly under examination by tax authorities both domestically and internationally. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations, although there are inherent uncertainties in these examinations. Due to the ongoing tax examinations, it is generally impractical to determine the amount and timing of these adjustments. However, we expect several tax examinations to close within the next twelve months. See “Note 13 — Income Taxes” to the condensed consolidated financial statements included in this report for more information on estimated settlements within the next twelve months.

Current wording

We are regularly under examination by tax authorities both domestically and internationally. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations, although there are inherent uncertainties in these examinations. Due to the ongoing tax examinations, it is generally impractical to determine the amount and timing of these adjustments. However, we expect several tax examinations to close within the next 12 months. See “Note 13 — Income Taxes” to the condensed consolidated financial statements included in this report for more information on estimated settlements within the next 12 months.

Previous wording

Cash provided by continuing operating activities of $982 million in the six months ended June 30, 2024 compared to cash provided by continuing operating activities of $1.4 billion in the six months ended June 30, 2023 was primarily attributable to working capital movements and changes in non-cash items during the six months ended June 30, 2024 compared to the same period in 2023.

Current wording

Cash provided by continuing operating activities of $1.7 billion in the nine months ended September 30, 2024 compared to cash provided by continuing operating activities of $2.3 billion in the nine months ended September 30, 2023 was primarily attributable to working capital movements and changes in non-cash items during the nine months ended September 30, 2024 compared to the same period in 2023.

Previous wording

Cash provided by continuing investing activities of $902 million in the six months ended June 30, 2024 was primarily attributable to proceeds of $6.7 billion from the maturities and sales of investments and proceeds of $2.4 billion from the sale of our equity investment in Adevinta, partially offset by cash paid for investments of $7.9 billion and property and equipment of $232 million.

Current wording

Cash provided by continuing investing activities of $951 million in the nine months ended September 30, 2024 was primarily attributable to proceeds of $10.4 billion from the maturities and sales of investments and proceeds of $2.4 billion from the sale of our equity investment in Adevinta, partially offset by cash paid for investments of $11.5 billion and property and equipment of $341 million.

Previous wording

Cash used in continuing financing activities of $1.8 billion in the six months ended June 30, 2024 was primarily attributable to cash paid to repurchase $1.5 billion of common stock and $274 million paid in cash dividends.

Current wording

Cash used in continuing financing activities of $2.8 billion in the nine months ended September 30, 2024 was primarily attributable to cash paid to repurchase $2.2 billion of common stock, repayment of the $750 million aggregate principal amount of our previously outstanding 3.450% senior notes and $405 million paid in cash dividends, partially offset by borrowings under our commercial paper program of $441 million.

Previous wording

The negative effect of exchange rate movements on cash, cash equivalents and restricted cash was due to the strengthening of the U.S. dollar against other currencies during the six months ended June 30, 2024 compared to the 2023 year-end rate.

Current wording

The positive effect of exchange rate movements on cash, cash equivalents and restricted cash was due to the weakening of the U.S. dollar against other currencies during the nine months ended September 30, 2024 compared to the 2023 year-end rate.

Previous wording

As of June 30, 2024 and December 31, 2023, we had assets classified as cash and cash equivalents as well as short-term and long-term non-equity investments, in an aggregate amount of $6.3 billion and $5.1 billion, respectively. These amounts do not include cash held on behalf of customers related to marketplace activity of $478 million and $481 million, respectively, which are recorded separately within customer accounts and funds receivable with a corresponding liability within customer accounts and funds payable in our condensed consolidated balance sheet. These amounts also do not include restricted cash held for purposes of safeguarding customer funds of $114 million and $27 million, respectively. We believe these assets together with cash expected to be generated from operations, borrowings available under our credit agreement and commercial paper program, and our access to capital markets, will be sufficient to satisfy our material cash requirements over the next 12 months and for the foreseeable future.

Current wording

As of September 30, 2024 and December 31, 2023, we had assets classified as cash and cash equivalents as well as short-term and long-term non-equity investments, in an aggregate amount of $5.8 billion and $5.1 billion, respectively. These amounts do not include cash held on behalf of customers related to marketplace activity of $679 million and $481 million, respectively, which are recorded separately within customer accounts and funds receivable with a corresponding liability within customer accounts and funds payable in our condensed consolidated balance sheet. These amounts also do not include restricted cash held for purposes of safeguarding customer funds of $104 million and $27 million, respectively. We believe these assets together with cash expected to be generated from operations, borrowings available under our credit agreement and commercial paper program, and our access to capital markets, will be sufficient to satisfy our material cash requirements over the next 12 months and for the foreseeable future.

Previous wording

In January 2023, we repaid the $1.2 billion aggregate principal amount of the floating rate and 2.750% senior notes due 2023. Total cash consideration paid was $1.2 billion, as the redemption price was equal to 100% of the principal amount. In addition, we paid accrued and unpaid interest on the principal amount.

Current wording

In January 2023, we repaid the $1.2 billion aggregate principal amount of the floating rate and 2.750% senior notes due 2023 on the date of maturity.

Previous wording

As of June 30, 2024, we had fixed-rate senior notes outstanding for an aggregate principal amount of $7.8 billion, with $1.6 billion payable within 12 months. The net proceeds from the issuances of these senior notes are used for general corporate purposes, including, among other things, capital expenditures, share repurchases, repayment of indebtedness and possible acquisitions.

Current wording

As of September 30, 2024, we had fixed-rate senior notes outstanding with an aggregate principal amount of $7.0 billion, with $800 million payable within 12 months. The net proceeds from the issuances of these senior notes are used for general corporate purposes, including, among other things, capital expenditures, share repurchases, repayment of indebtedness and possible acquisitions.

Previous wording

We have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time with maturities of up to 397 days from the date of issue. As of June 30, 2024, there were no commercial paper notes outstanding.

Current wording

We have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time with maturities of up to 397 days from the date of issue. During the three and nine months ended September 30, 2024, we issued and repaid $180 million of commercial paper notes with original maturities less than 90 days and issued $450 million of commercial paper notes with original maturities greater than 90 days. As of September 30, 2024, we had $450 million of commercial paper notes outstanding with a weighted average interest rate of 5.09% per annum, and a weighted average remaining term of 114 days.