Debt

Short-term borrowings, including current portion of long-term debt, consists of the following at December 31:



	2013		2012
6.875% senior notes, due 2013	$	—	$	335,384
Short-term borrowings in various countries	23,878		28,973
	$	23,878	$	364,357

Short-term borrowings in various countries are primarily utilized to support the working capital requirements of certain international operations. The weighted-average interest rates on these borrowings at December 31, 2013 and 2012 were 4.5% and 4.2%, respectively.

Long-term debt consists of the following at December 31:



	2013		2012
Revolving credit facility	$	—	$	123,600
Asset securitization program	420,000		225,000
3.375% notes, due 2015	255,004		257,732
6.875% senior debentures, due 2018	199,078		198,869
3.00% notes, due 2018	298,691		—
6.00% notes, due 2020	299,945		299,936
5.125% notes, due 2021	249,435		249,356
4.50% notes, due 2023	297,767		—
7.50% senior debentures, due 2027	198,170		198,030
Other obligations with various interest rates and due dates	8,042		34,955
	$	2,226,132	$	1,587,478

The 7.50% senior debentures are not redeemable prior to their maturity. The 3.375% notes, 6.875% senior debentures, 3.00% notes, 6.00% notes, 5.125% notes, and 4.50% notes may be called at the option of the company subject to "make whole" clauses.

The estimated fair market value at December 31, using quoted market prices, is as follows:



	2013		2012
6.875% senior notes, due 2013	$	—	$	342,000
3.375% notes, due 2015	260,000		260,000
6.875% senior debentures, due 2018	228,000		236,000
3.00% notes, due 2018	300,000		—
6.00% notes, due 2020	330,000		342,000
5.125% notes, due 2021	260,000		272,500
4.50% notes, due 2023	291,000		—
7.50% senior debentures, due 2027	232,000		246,000

The carrying amount of the company's short-term borrowings in various countries, revolving credit facility, asset securitization program, and other obligations approximate their fair value.

In December 2013, the company entered into a $1,500,000 revolving credit facility, maturing in December 2018. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness and acquisitions, and as support for the company's commercial paper program, as applicable. This agreement amended the company's $1,200,000 revolving credit facility which was scheduled to expire in August 2016. Interest on borrowings under the revolving credit facility is calculated using a base rate or a euro currency rate plus a spread based on the company's credit ratings (1.30% at December 31, 2013). The facility fee is .20%. There were no outstanding borrowings under the revolving credit facility at December 31, 2013. At December 31, 2012, the company had $123,600 in outstanding borrowings under the revolving credit facility.

The company has a $775,000 asset securitization program collateralized by accounts receivable of certain of its United States subsidiaries, maturing in December 2014. The asset securitization program is conducted through Arrow Electronics Funding Corporation ("AFC"), a wholly-owned, bankruptcy remote subsidiary. The asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company's consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread, which is based on the company's credit ratings (.40% at December 31, 2013), or an effective interest rate of .61% at December 31, 2013. The facility fee is .40%.

At December 31, 2013 and 2012, the company had $420,000 and $225,000, respectively, in outstanding borrowings under the asset securitization program, which was included in "Long-term debt" in the company's consolidated balance sheets, and total collateralized accounts receivable of approximately $1,867,552 and $1,610,946, respectively, were held by AFC and were included in "Accounts receivable, net" in the company's consolidated balance sheets. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the asset securitization program.

Both the revolving credit facility and asset securitization program include terms and conditions that limit the incurrence of additional borrowings, limit the company's ability to pay cash dividends or repurchase stock, and require that certain financial ratios be maintained at designated levels. The company was in compliance with all covenants as of December 31, 2013 and is currently not aware of any events that would cause non-compliance with any covenants in the future.

Annual payments of borrowings during each of the years 2014 through 2018 are $443,878, $261,400, $1,395, $229, and $497,791, respectively, and $1,045,317 for all years thereafter.

In February 2013, the company completed the sale of $300,000 principal amount of its 3.00% notes due in 2018 and $300,000 principal amount of its 4.50% notes due in 2023. The net proceeds of the offering of $591,156 were used to refinance the company's 6.875% senior notes due July 2013 and for general corporate purposes.

In March 2013, the company redeemed $332,107 principal amount of its 6.875% senior notes due July 2013. The related loss on the redemption aggregated $4,277 ($2,627 net of related taxes or $.03 per share on both a basic and diluted basis) and was recognized as a loss on prepayment of debt which was included in "Other" in the company's consolidated statements of operations.

During 2011, the company repaid its $200,000 bank term loan which was due in January 2012.

During 2011, the company redeemed $17,893 principal amount of its 6.875% senior notes due in 2013. The related loss on the repurchase aggregated $895 ($549 net of related taxes) and was recognized as a loss on prepayment of debt which was included in "Other" in the company's consolidated statements of operations.

Interest and other financing expense, net, includes interest and dividend income of $5,632, $5,779, and $6,113 in 2013, 2012, and 2011, respectively. Interest paid, net of interest and dividend income, amounted to $116,663, $113,628, and $104,340 in 2013, 2012, and 2011, respectively.