SHORT AND LONG-TERM DEBT

6 Months Ended

Jul. 03, 2016

SHORT AND LONG-TERM DEBT

Short-term Debt

As a source of short-term financing, we utilize cash on hand and commercial paper or bank loans with an original maturity of three months or less. We maintain a $1.0 billion unsecured revolving credit facility, which currently expires in November 2020. This agreement also includes an option to increase borrowings by an additional $400,000 with the consent of the lenders. On June 16, 2016, we entered into an additional unsecured revolving credit facility that provides for borrowings up to $500,000. This facility expires on June 15, 2017.

These credit agreements contain certain financial and other covenants, customary representations, warranties and events of default. As of July 3, 2016, we were in compliance with all covenants pertaining to the credit agreements, and we had no significant compensating balance agreements that legally restricted these funds. For more information, refer to the Consolidated Financial Statements included in our 2015 Annual Report on Form 10-K.

In addition to the revolving credit facilities, we maintain lines of credit with domestic and international commercial banks. We had short-term foreign bank loans against these lines of credit for $201,740 and $313,520 at July 3, 2016 and December 31, 2015, respectively. Commitment fees relating to our revolving credit facility and lines of credit are not material.

At July 3, 2016, we had outstanding commercial paper totaling $795,380, at a weighted average interest rate of 0.44%. At December 31, 2015, we had outstanding commercial paper totaling $49,993, at a weighted average interest rate of 0.40%.

Long-term Debt

Long-term debt consisted of the following:



	July 3, 2016		December 31, 2015
5.45% Notes due 2016	250,000		250,000
1.50% Notes due 2016	250,000		250,000
1.60% Notes due 2018	300,000		300,000
4.125% Notes due 2020	350,000		350,000
8.8% Debentures due 2021	84,715		84,715
2.625% Notes due 2023	250,000		250,000
3.20% Notes due 2025	300,000		300,000
7.2% Debentures due 2027	193,639		193,639
Other obligations, net of debt issuance costs and unamortized debt discount	92,903		78,660
Total long-term debt	2,071,257		2,057,014
Less—current portion	500,078		499,923
Long-term portion	$	1,571,179	$	1,557,091

Interest Expense

Net interest expense consisted of the following:



	Three Months Ended						Six Months Ended
	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
Interest expense	$	22,997		$	23,259		$	46,522		$	46,283
Less: Capitalized interest	(1,386		)	(3,226		)	(3,561		)	(6,243		)
Interest expense	21,611			20,033			42,961			40,040
Interest income	(273		)	(1,156		)	(618		)	(1,961		)
Interest expense, net	$	21,338		$	18,877		$	42,343		$	38,079