Debt

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



	2017		2016
3.00% note, due 2018	$	299,857	$	—
Other short-term borrowings	56,949		93,827
	$	356,806	$	93,827

Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 2.6% and 2.4% at December 31, 2017 and 2016, respectively.

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



	2017		2016
Asset securitization program	$	490,000	$	460,000
6.875% senior debentures, due 2018	—		199,348
3.00% notes, due 2018	—		299,013
6.00% notes, due 2020	208,971		299,183
5.125% notes, due 2021	130,400		248,843
3.50% notes, due 2022	346,518		345,776
4.50% notes, due 2023	297,122		296,646
3.25% notes, due 2024	493,161		—
4.00% notes, due 2025	345,182		344,625
7.50% senior debentures, due 2027	109,694		198,514
3.875% notes, due 2028	493,563		—
Other obligations with various interest rates and due dates	18,434		4,386
	$	2,933,045	$	2,696,334

The 7.50% senior debentures are not redeemable prior to their maturity. The 3.00% notes, 6.00% notes, 5.125% notes, 3.50% notes, 4.50% notes, 3.25% notes, 4.00%, and 3.875% notes may be called at the option of the company subject to "make whole" clauses.

The estimated fair market value of long-term debt at December 31, using quoted market prices, is as follows:



	2017		2016
6.875% senior debentures, due 2018	$	—	$	212,500
3.00% notes, due 2018	300,500		303,500
6.00% notes, due 2020	224,000		325,500
5.125% notes, due 2021	139,000		265,500
3.50% notes, due 2022	355,000		349,500
4.50% notes, due 2023	315,500		305,500
3.25% notes, due 2024	491,000		—
4.00% notes, due 2025	356,500		345,000
7.50% senior debentures, due 2027	138,500		238,000
3.875% notes, due 2028	501,000		—

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.

The company has a revolving credit facility that 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, acquisitions, and as support for the company's commercial paper program, as applicable. In December 2016, the company amended its revolving credit facility and, among other things, increased its borrowing capacity from $1,500,000 to $1,800,000 and extended its term to mature in December 2021. Interest on borrowings under the revolving credit facility is calculated using a base rate or a euro currency rate plus a spread (1.18% at December 31, 2017), which is based on the company's credit ratings, for an effective interest rate of 2.61% at December 31, 2017. The facility fee, which is based on the company's credit ratings, was .20% at December 31, 2017. There were no outstanding borrowings under the revolving credit facility at December 31, 2017 and 2016.

The company has a commercial paper program and the maximum aggregate balance of commercial paper notes outstanding may not exceed the borrowing capacity of $1,200,000. The company had no outstanding borrowings under this program as of December 31, 2017 and 2016. The commercial paper program had an effective interest rate of 1.78% for the year-ended December 31, 2017.

The company has an asset securitization program collateralized by accounts receivable of certain of its subsidiaries. In September 2016, the company amended its asset securitization program and, among other things, increased its borrowing capacity from $900,000 to $910,000 and extended its term to mature in September 2019. 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 (.40% at December 31, 2017), which is based on the company's credit ratings, for an effective interest rate of 1.91% at December 31, 2017. The facility fee is .40%.

At December 31, 2017 and 2016, the company had $490,000 and $460,000, 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 $2,270,500 and $2,045,464, 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 and require that certain financial ratios be maintained at designated levels. The company was in compliance with all covenants as of December 31, 2017 and is currently not aware of any events that would cause non-compliance with any covenants in the future.

The company has a $100,000 uncommitted line of credit. There were no outstanding borrowings under the uncommitted line of credit at December 31, 2017 and 2016.

During 2017, the company completed the sale of $500,000 principal amount of 3.875% notes due in 2028. The net proceeds of the offering of $494,625 were used to redeem the company's 6.875% senior debenture due June 2018 and refinance a portion of the company's 6.00% notes due April 2020, 5.125% notes due March 2021, and 7.50% notes due January 2027. The company recorded a loss on extinguishment of debt of $59,545 for 2017.

During 2017, the company completed the sale of $500,000 principal amount of 3.25% notes due in 2024. The net proceeds of the offering of $493,810 are expected to be used to redeem the company's debt obligations and for general corporate purposes.

During 2015, the company completed the sale of $350,000 principal amount of 3.50% notes due in 2022 and $350,000 principal amount of 4.00% notes due in 2025. The net proceeds of the offering of $688,162 were used to refinance the company's 3.375% notes due November 2015 and for general corporate purposes.

During 2015, the company redeemed $250,000 principal amount of its 3.375% notes due November 2015. The related loss on the redemption for 2015 was $2,943 and was recognized as a loss on extinguishment of debt in the company's consolidated statements of operations.

Annual payments of borrowings during each of the years 2018 through 2022 are $355,588, $499,371, $213,432, $133,384, and $346,804, respectively, and $1,738,723 for all years thereafter.

Interest and other financing expense, net, includes interest and dividend income of $32,599, $18,680, and $6,301 in 2017, 2016, and 2015, respectively. Interest paid, net of interest and dividend income, amounted to $156,974, $141,816, and $133,390 in 2017, 2016, and 2015, respectively.