Borrowings

During the nine months ended June 30, 2018, the Company’s borrowing activity was as follows:



	September 30, 2017		Borrowings		Payments			Other Activity			June 30, 2018
Commercial paper with original maturities less than three months⁽¹⁾	$	1,151	$	—	$	(1,098	)	$	(3	)	$	50
Commercial paper with original maturities greater than three months	1,621		7,229		(5,678		)	11			3,183
U.S. and European medium-term notes	19,721		—		(1,300		)	16			18,437
BAMTech acquisition payable	1,581		—		(1,581		)	—			—
Asia Theme Parks borrowings	1,145		—		—			37			1,182
Foreign currency denominated debt and other⁽²⁾	72		1,056		(56		)	(251		)	821
Total	$	25,291	$	8,285	$	(9,713	)	$	(190	)	$	23,673


⁽¹⁾	Borrowings and payments are reported net.


⁽²⁾	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

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 June 30, 2018, the Company has $192 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 June 30, 2018 by a significant margin.

21CF Credit Facility

In June 2018, the Company received committed financing from a bank syndicate to fund the cash component of the pending acquisition of 21CF. Under the terms of the commitment, the bank syndicate has committed to provide and arrange a 364-day unsecured bridge term loan facility in an aggregate principal amount of $35.7 billion at the completion of the 21CF transaction. The interest rate on the facility can vary based on the Company’s debt rating. The interest rate would have been LIBOR plus 0.875% if the Company had drawn on this facility at June 30, 2018. Prior to the completion of the 21CF acquisition, the Company anticipates that it will execute debt financings for the cash component of the 21CF acquisition and terminate the bridge term loan facility.

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						Nine Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Interest expense	$	(175	)	$	(134	)	$	(493	)	$	(370	)
Interest and investment income	32			17			78			70
Interest expense, net	$	(143	)	$	(117	)	$	(415	)	$	(300	)

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.