Borrowings

During the six months ended March 31, 2018, the Company’s borrowing activity was as follows:



	September 30, 2017		Borrowings		Payments			Other Activity			March 31, 2018
Commercial paper with original maturities less than three months⁽¹⁾	$	1,151	$	—	$	(764	)	$	(2	)	$	385
Commercial paper with original maturities greater than three months	1,621		4,467		(2,331		)	9			3,766
U.S. and European medium-term notes	19,721		—		(1,300		)	12			18,433
BAMTech acquisition payable	1,581		—		(1,581		)	—			—
Asia Theme Parks borrowings⁽²⁾	1,145		—		—			81			1,226
Foreign currency denominated debt and other⁽³⁾	72		1,048		(50		)	(196		)	874
Total	$	25,291	$	5,515	$	(6,026	)	$	(96	)	$	24,684


⁽¹⁾	Borrowings and payments are reported net.


⁽²⁾	The other activity is primarily the U.S. dollar weakening against the Chinese Renminbi.


⁽³⁾	The other activity is primarily market value adjustments for debt with qualifying hedges.

The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:



	Committed Capacity		Capacity Used		Unused Capacity
Facility expiring March 2019	$	6,000	$	—	$	6,000
Facility expiring March 2021	2,250		—		2,250
Facility expiring March 2023	4,000		—		4,000
Total	$	12,250	$	—	$	12,250

The Company had bank facilities totaling $2.5 billion and $2.25 billion expiring in March 2018 and March 2019, respectively. These facilities were refinanced increasing the borrowing capacity to $6.0 billion and $4.0 billion and extending the maturity dates to March 2019 and March 2023, respectively. All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2023, which if utilized, reduces available borrowings under this facility. As of March 31, 2018, the Company has $196 million of outstanding letters of credit, of which none were issued under this facility. The facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants, or events of default and contain only one financial covenant relating to interest coverage, which the Company met on March 31, 2018 by a significant margin.

Cruise Ship Credit Facilities

In October 2016 and December 2017, the Company entered into credit facilities to finance three new cruise ships, which are expected to be delivered in 2021, 2022 and 2023. The financings may be used for up to 80% of the contract price of the cruise ships. Under the agreements, $1.0 billion in financing is available beginning in April 2021, $1.1 billion is available beginning in May 2022 and $1.1 billion is available beginning in April 2023. If utilized, the interest rates will be fixed at 3.48%, 3.72% and 3.74%, respectively, and the loan and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees.

Interest expense, net

Interest and investment income and interest expense are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest):



	Quarter Ended						Six Months Ended
	March 31, 2018			April 1, 2017			March 31, 2018			April 1, 2017
Interest expense	$	(172	)	$	(115	)	$	(318	)	$	(236	)
Interest and investment income	29			31			46			53
Interest expense, net	$	(143	)	$	(84	)	$	(272	)	$	(183	)

Interest and investment income includes gains and losses on the sale of publicly and non-publicly traded investments, investment impairments and interest earned on cash and cash equivalents and certain receivables.