Motorola 2005 Annual Report Download - page 84

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77
were to increase by 10% from current levels. Except for these interest rate swaps, the Company had no outstanding
commodity derivatives, currency swaps or options relating to debt instruments at December 31, 2005 or 2004.
The Company designated its interest rate swap agreements as part of a fair value hedging relationship. Interest
expense on the debt is adjusted to include the payments made or received under such hedge agreements.
The Company is exposed to credit loss in the event of nonperformance by the counterparties to its swap
contracts. The Company minimizes its credit risk on these transactions by only dealing with leading, creditworthy
financial institutions having long-term debt ratings of ""A'' or better and, does not anticipate nonperformance. In
addition, the contracts are distributed among several financial institutions, thus minimizing credit risk concentration.
Environmental Matters
Compliance with federal, state and local laws regulating the discharge of materials into the environment, or
otherwise relating to the protection of the environment, has no material effect on capital expenditures, earnings or
the competitive position of Motorola.
ยปReg. U.S. Patent & Trademark Office.
""MOTOROLA'' and ""Stylized M Logo'' are registered trademarks of Motorola, Inc. throughout the world.
These marks are valuable corporate assets. Certain other trademarks and service marks of Motorola are registered
in relevant markets. Motorola's increasing focus on marketing products directly to consumers is reflected in an
increasing emphasis on brand equity creation and protection. All other products or service names are the property
of their respective owners.