9. Debt and Credit Arrangements

Long-term debt, net consists of the following (in thousands):


		December 25,		December 27,
		2016		2015
Outstanding debt	$	300,575	$	256,000
Debt issuance costs		(755)		(854)
Total long-term debt, net	$	299,820	$	255,146

Our outstanding debt is comprised entirely of an unsecured revolving line of credit (“Credit Facility”) with an expiration date of October 31, 2019. On June 8, 2016, we exercised our option to increase the amount available under our Credit Facility to $500 million from the previous $400 million availability. Including outstanding letters of credit, the remaining availability under the Credit Facility was approximately $172.6 million as of December 25, 2016.

The interest rate charged on outstanding balances is LIBOR plus 75 to 175 basis points. The commitment fee on the unused balance ranges from 15 to 25 basis points.

The Credit Facility contains customary affirmative and negative covenants, including financial covenants requiring the maintenance of specified fixed charges and leverage ratios. At December 25, 2016, we were in compliance with these covenants.

We attempt to minimize interest risk exposure by fixing our rate through the utilization of interest rate swaps, which are derivative financial instruments. Our swaps are entered into with financial institutions and have reset dates and critical terms that match those of our existing debt and the anticipated critical terms of future debt. By using a derivative instrument to hedge exposures to changes in interest rates, we expose ourselves to credit risk. Credit risk is due to the possible failure of the counterparty to perform under the terms of the derivative contract.

As of December 25, 2016, we have the following interest rate swap agreements, including three forward starting swaps executed in 2015 that will become effective in 2018 upon expiration of the two existing swaps for $125 million:


				Fixed
Effective Dates	Debt Amount			Rates
July 30, 2013 through April 30, 2018	$	75	million	1.42	%
December 30, 2014 through April 30, 2018	$	50	million	1.36	%
April 30, 2018 through April 30, 2023	$	55	million	2.33	%
April 30, 2018 through April 30, 2023	$	35	million	2.36	%
April 30, 2018 through April 30, 2023	$	35	million	2.34	%

The effective portion of the gain or loss on the swaps is reported as a component of AOCL and reclassified into earnings in the same period or periods during which the swaps affect earnings. Gains or losses on the swaps representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Amounts payable or receivable under the swaps are accounted for as adjustments to interest expense.

The following table provides information on the location and amounts of our swaps in the accompanying consolidated financial statements (in thousands):


	Liability Derivatives
		Fair Value		Fair Value
		December 25,		December 27,
	Balance Sheet Location	2016		2015

Interest rate swaps	Other current and long-term liabilities	$	770	$	2,262

There were no derivatives that were not designated as hedging instruments.

The effect of derivative instruments on the accompanying consolidated financial statements is as follows (in thousands):

Amount of Gain

Location of Gain or

or (Loss)

Location of Gain

Amount of Gain

(Loss) Recognized

Recognized in

or (Loss)

in Income on

Income on

Recognized in

Reclassified

Derivative

Derivatives- Cash

AOCL on

from AOCL into

(Ineffective Portion

(Ineffective

Flow

Derivative

Income

and Amount

Portion and Amount

Hedging

(Effective

Excluded from

Relationships

Portion)

Effectiveness Testing)

Interest rate swaps:

2016

940

Interest expense

(1,161)

Interest expense

—

2015

(1,163)

Interest expense

(1,563)

Interest expense

—

2014

(164)

Interest expense

(996)

Interest expense

—

The weighted average interest rates for the Credit Facility, including the impact of the previously mentioned swap agreements, were 2.1%, 2.0% and 1.7% in fiscal 2016, 2015 and 2014, respectively. Interest paid, including payments made or received under the swaps, was $7.1 million in 2016, $5.3 million in 2015 and $3.7 million in 2014. As of December 25, 2016, the portion of the $770,000 liability associated with the interest rate swap that would be reclassified into earnings during the next 12 months as interest expense approximates $391,000.