SHORT AND LONG-TERM DEBT

6 Months Ended

Jun. 30, 2019

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. As of June 30, 2019, we maintained a $1.4 billion unsecured revolving credit facility. On July 2, 2019, we terminated this facility, which was scheduled to expire in November 2020, and entered into a new unsecured revolving credit facility. The new facility allows the Company to borrow up to $1.5 billion with the option to increase borrowings by an additional $500 million with the consent of the lenders. This facility is scheduled to expire on July 2, 2024, however, we may extend the termination date for up to two additional one-year periods upon notice to the administrative agent under the facility.

The credit agreement contains certain financial and other covenants, customary representations, warranties and events of default. As of June 30, 2019, we were in compliance with all covenants pertaining to the credit agreement, 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 2018 Annual Report on Form 10-K.

In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks. We had short-term foreign bank loans against these lines of credit for $135,778 at June 30, 2019 and $113,189 at December 31, 2018. Commitment fees relating to our revolving credit facility and lines of credit are not material.

At June 30, 2019, we had outstanding commercial paper totaling $751,001, at a weighted average interest rate of 2.4%. At December 31, 2018, we had outstanding commercial paper totaling $1,084,740, at a weighted average interest rate of 2.4%.

Long-term Debt

Long-term debt consisted of the following:



	June 30, 2019			December 31, 2018
2.90% Notes due 2020	$	350,000		$	350,000
4.125% Notes due 2020	350,000			350,000
3.10% Notes due 2021	350,000			350,000
8.8% Debentures due 2021	84,715			84,715
3.375% Notes due 2023	500,000			500,000
2.625% Notes due 2023	250,000			250,000
3.20% Notes due 2025	300,000			300,000
2.30% Notes due 2026	500,000			500,000
7.2% Debentures due 2027	193,639			193,639
3.375% Notes due 2046	300,000			300,000
Finance lease liabilities	79,218			101,980
Net impact of interest rate swaps, debt issuance costs and unamortized debt discounts	(16,343		)	(20,667		)
Total long-term debt	3,241,229			3,259,667
Less—current portion	353,186			5,387
Long-term portion	$	2,888,043		$	3,254,280

Interest Expense

Net interest expense consists of the following:



	Three Months Ended						Six Months Ended
	June 30, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Interest expense	$	39,192		$	38,098		$	79,855		$	70,951
Capitalized interest	(1,391		)	(1,334		)	(2,648		)	(2,633		)
Interest expense	37,801			36,764			77,207			68,318
Interest income	(4,025		)	(1,812		)	(5,973		)	(4,027		)
Interest expense, net	$	33,776		$	34,952		$	71,234		$	64,291