Motorola 2010 Annual Report Download - page 55

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issuance costs and debt discounts, the Company recognized a loss of approximately $12 million related to this debt
tender in Other within Other income (expense) in the consolidated statements of operations.
During the first quarter of 2009, the Company repurchased $199 million of its outstanding long-term debt for
an aggregate purchase price of $133 million, including $4 million of accrued interest. The $199 million of long-term
debt repurchased included principal amounts of: (i) $11 million of the $358 million then outstanding of 7.50%
Debentures due 2025, (ii) $20 million of the $399 million then outstanding 2025 Debentures, (iii) $14 million of the
$299 million then outstanding 2028 Debentures, and (iv) $154 million of the $600 million then outstanding 2037
Senior Notes. The Company recognized a gain of approximately $67 million related to these open market purchases
in Other within Other income (expense) in the consolidated statements of operations.
As of January 2011, the three largest U.S. national ratings agencies rated the Company’s senior unsecured long-
term debt investment grade. The Company believes that it will be able to maintain sufficient access to the capital
markets at its current ratings. Any future disruptions, uncertainty or volatility in the capital markets may result in
higher funding costs for the Company and adversely affect its ability to access funds.
The Company may from time to time seek to retire certain of its outstanding debt through open market cash
purchases, privately-negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing
market conditions, the Company’s liquidity requirements, contractual restrictions and other factors.
Payment of Dividends: During 2010, the Company did not pay cash dividends to holders of its common
stock. During 2009, the Company paid $114 million in cash dividends to holders of its common stock, all of which
was paid during the first quarter of 2009, related to the payment of a dividend declared in November 2008. In
February 2009, the Company announced that its Board of Directors suspended the declaration of quarterly cash
dividends on the Company’s common stock.
During the year ended December 31, 2010, the Company paid $23 million of dividends to a minority
shareholder in connection with a subsidiary’s common stock.
Credit Facilities
As of December 31, 2010, the Company had a domestic syndicated revolving credit facility (as amended from
time to time, the “Credit Facility”), scheduled to mature in December 2011. The size of the Credit Facility was the
lesser of: (1) $1.5 billion, or (2) an amount determined based on eligible domestic accounts receivable and
inventory. If the Company elected to borrow under the Credit Facility, only then and not before, it would be
required to pledge its domestic accounts receivables and, at its option, domestic inventory. The Credit Facility did
not require the Company to meet any financial covenants unless remaining availability under the Credit Facility was
less than $225 million. The Company never borrowed under this Credit Facility or predecessor domestic syndicated
revolving credit facilities.
On January 4, 2011, the Company terminated the Credit Facility and entered into a new $1.5 billion unsecured
syndicated revolving credit facility (the “2011 Motorola Solutions Credit Agreement”) that is scheduled to expire on
June 30, 2014. The 2011 Motorola Solutions Credit Agreement includes a provision pursuant to which the
Company can increase the aggregate credit facility size up to a maximum of $2.0 billion by adding lenders or having
existing lenders increase their commitments. The Company must comply with certain customary covenants,
including maintaining maximum leverage and minimum interest coverage ratios as defined in the 2011 Motorola
Solutions Credit Agreement.