Borrowings

During the nine months ended July 2, 2016, the Company’s borrowing activity was as follows:



	October 3, 2015		Borrowings		Payments			Other Activity			July 2, 2016
Commercial paper with original maturities less than three months⁽¹⁾	$	2,330	$	—	$	(583	)	$	4		$	1,751
Commercial paper with original maturities greater than three months	100		4,051		(3,684		)	5			472
U.S. medium-term notes	13,873		2,987		(500		)	13			16,373
International Theme Parks borrowings⁽²⁾	319		855		—			(133		)	1,041
Foreign currency denominated debt and other⁽³⁾	714		192		(172		)	70			804
Total	$	17,336	$	8,085	$	(4,939	)	$	(41	)	$	20,441


⁽¹⁾	Borrowings and payments are reported net.


⁽²⁾	The other activity is primarily the conversion of HKDL debt into equity and the impact of changes in foreign currency exchange rates. See Note 5 for further discussion of the transaction.


⁽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. The following is a summary of the bank facilities at July 2, 2016:



	Committed Capacity		Capacity Used		Unused Capacity
Facility expiring March 2017	$	1,500	$	—	$	1,500
Facility expiring March 2019	2,250		—		2,250
Facility expiring March 2021	2,250		—		2,250
Total	$	6,000	$	—	$	6,000

The Company had bank facilities for $1.5 billion and $2.25 billion, which were expiring in March 2016 and June 2017, respectively. These facilities were refinanced in the second quarter of fiscal 2016 and the maturities were extended to March 2017 and 2021, 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 0.23% to 1.63%. The Company also has the ability to issue up to $800 million of letters of credit under the facility expiring in March 2019, which if utilized, reduces available borrowings under this facility. As of July 2, 2016, $189 million of letters of credit were outstanding, of which none were issued under this facility. The facilities contain only one financial covenant, relating to interest coverage, which the Company met on July 2, 2016 by a significant margin, and specifically exclude certain entities, including the International Theme Parks, from any representations, covenants, or events of default.

On July 7, 2016, the Company issued $2.0 billion in debt under its U.S. medium-term note program. The proceeds will be used for general corporate purposes.

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						Nine Months Ended
	July 2, 2016			June 27, 2015			July 2, 2016			June 27, 2015
Interest expense	$	(88	)	$	(62	)	$	(235	)	$	(197	)
Interest and investment income	18			50			74			135
Interest expense, net	$	(70	)	$	(12	)	$	(161	)	$	(62	)

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.

Realized net gains on publicly and non-publicly traded investments are as follows:



	Quarter Ended				Nine Months Ended
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
Publicly traded	$	—	$	31	$	—	$	79
Non-publicly traded	—		1		26		8
Realized net gains	$	—	$	32	$	26	$	87