Motorola 2014 Annual Report Download - page 37

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capital spending in 2014, as compared to 2013 and 2012, was primarily driven by an increase in revenue-generating network
build out expenditures.
Sales of Property, Plant, and Equipment: We had $33 million of proceeds related to the sale of property, plant, and
equipment in 2014, compared to $66 million in 2013 and $40 million in 2012. The proceeds in all periods were primarily
comprised of sales of buildings and land.
Sales of Investments and Businesses: We received $3.4 billion of proceeds in 2014 compared to $61 million in 2013
and disbursements of $58 million in 2012. The $3.4 billion of proceeds received in 2014 were primarily comprised of proceeds
from the sale of the Enterprise business. The $61 million of cash received in 2013 was primarily comprised of proceeds from
sales of equity investments. The $58 million in disbursements in 2012 were primarily comprised of payments to NSN related to
the purchase price adjustment from the sale of the Networks business completed in 2011, partially offset by proceeds from sales
of certain equity investments.
Financing Activities
Net cash used for financing activities was $1.7 billion in 2014 compared to $842 million in 2013 and $2.1 billion in 2012.
Cash used for financing activities in 2014 was primarily comprised of: (i) $2.5 billion used for purchases of common stock under
our share repurchase program, (ii) $465 million of cash used for the repayment of debt, and (iii) $318 million of cash used for the
payment of dividends, partially offset by: (i) $1.4 billion of net proceeds from the issuance of debt, (ii) $135 million of net
proceeds from the issuance of common stock in connection with our employee stock option and employee stock purchase plans,
and (iii) $93 million of distributions received from discontinued operations.
Cash used for financing activities in 2013 was primarily comprised of: (i) $1.7 billion used for purchases of our common
stock under our share repurchase program and (ii) $292 million of cash used for the payment of dividends, partially offset by: (i)
$593 million of net proceeds from the issuance of debt, (ii) $365 million of distributions received from discontinued operations,
and (iii) $165 million of net proceeds from the issuance of common stock in connection with our employee stock option and
employee stock purchase plans.
Cash used for financing activities in 2012 was primarily comprised of: (i) $2.4 billion used for purchases of our common
stock under our share repurchase program, (ii) $413 million of cash used for the repayment of debt, and (iii) $270 million of cash
used for the payment of dividends, partially offset by: (i) $747 million of net proceeds from the issuance of debt, (ii) $217 million
of distributions received from discontinued operations, and (iii) $133 million of net cash received from the issuance of common
stock in connection with our employee stock option and employee stock purchase plans.
Current and Long-Term Debt: At both December 31, 2014 and 2013, our current portion of long-term debt was $4
million. We had outstanding long-term debt of $3.4 billion and $2.5 billion at December 31, 2014 and December 31, 2013,
respectively.
During the year ended December 31, 2014, we redeemed $400 million aggregate principal amount outstanding of our
6.000% Senior Notes due November 2017 for an aggregate purchase price of approximately $456 million. After accelerating the
amortization of debt issuance costs, debt discounts, and hedge adjustments, we recognized a loss of $37 million related to the
redemption within Other income (expense) in the consolidated statements of operations. In addition, we issued an aggregate
face principal amount of $1.4 billion including: (i) $600 million of 4.000% Senior Notes due 2024, of which, after debt issuance
costs and debt discounts, we recognized net proceeds of $583 million, (ii) $400 million of 3.500% Senior Notes due 2021, of
which, after debt issuance costs and debt discounts, we recognized net proceeds of $393 million, and (iii) $400 million of 5.500%
Senior notes due 2044, of which, after debt issuance costs and debt discounts, we recognized net proceeds of $394 million.
During 2013, we issued an aggregate face principal amount of $600 million of 3.50% Senior Notes due March 1, 2023,
recognizing net proceeds of $588 million, after debt discount and issuance costs.
During 2012, we issued an aggregate face principal amount of $750 million of 3.75% Senior Notes due May 15, 2022 (the
“2022 Senior Notes”). We also redeemed $400 million aggregate principal amount outstanding of our 5.375% Senior Notes due
November 2012 (the “2012 Senior Notes”). All of the 2012 Senior Notes were redeemed for an aggregate purchase price of
approximately $408 million. This debt was repurchased with a portion of the proceeds from the issuance of the 2022 Senior
Notes.
We have investment grade ratings on our senior unsecured long-term debt from the three largest U.S. national rating
agencies. We believe that we will be able to maintain sufficient access to the capital markets. Any future disruptions, uncertainty
or volatility in the capital markets may result in higher funding costs for us and adversely affect our ability to access funds.
We may, from time to time, seek to retire certain of our outstanding debt through open market cash purchases, privately-
negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity
requirements, contractual restrictions and other factors.
Share Repurchase Program: Through actions taken on July 28, 2011, January 30, 2012, July 25, 2012, July 22, 2013,
and November 4, 2014, the Board of Directors has authorized an aggregate share repurchase amount of up to $12.0 billion of
our outstanding shares of common stock (the “share repurchase program”). The share repurchase program does not have an
expiration date. As of December 31, 2014, we have used approximately $7.8 billion of the share repurchase authority, including
transaction costs, to repurchase shares, leaving approximately $4.2 billion of authority available for future repurchases.
We paid an aggregate of $2.5 billion during 2014, including transaction costs, to repurchase approximately 39.4 million
shares at an average price of $64.63 per share. During 2013, we paid an aggregate of $1.7 billion, including transaction costs, to