Motorola 2014 Annual Report Download - page 64

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62
4. Debt and Credit Facilities
Long-Term Debt
December 31 2014 2013
6.0% senior notes due 2017 $ — $ 399
3.5% senior notes due 2021 395 —
3.75% senior notes due 2022 748 747
3.5% senior notes due 2023 594 593
4.0% senior notes due 2024 589 —
6.5% debentures due 2025 118 118
7.5% debentures due 2025 346 346
6.5% debentures due 2028 36 36
6.625% senior notes due 2037 54 54
5.5% senior notes due 2044 400 —
5.22% debentures due 2097 91 89
Other long-term debt 36 58
3,407 2,440
Adjustments for unamortized gains on interest rate swap terminations (7) 21
Less: current portion (4) (4)
Long-term debt $ 3,396 $ 2,457
During the year ended December 31, 2014, the Company redeemed $400 million aggregate principal amount outstanding
of its 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, the Company recognized a loss of
$37 million related to the redemption within Other income (expense) in the consolidated statement of operations. The Company
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, the Company 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, the Company 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, the
Company recognized net proceeds of $394 million.
During the year ended December 31, 2013, the Company issued an aggregate face principal amount of $600 million of
3.500% Senior Notes due March 1, 2023, recognizing net proceeds of $588 million, after debt issuance costs and debt
discounts.
During the year ended December 31, 2012, the Company issued an aggregate face principal amount of $750 million of
3.750% Senior Notes due 2022 (the “2022 Senior Notes”). The Company also redeemed $400 million aggregate principal
amount outstanding of its 5.375% Senior Notes due November 2012 for an aggregate purchase price of approximately $408
million. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of
approximately $6 million related to this redemption within Other income (expense) in the consolidated statements of operations.
This debt was repurchased with a portion of the proceeds from the issuance of the 2022 Senior Notes.
Aggregate requirements for long-term debt maturities during the next five years are as follows: 2015—$4 million; 2016—
$5 million; 2017—$5 million; 2018—$6 million; and 2019—$11 million.
Credit Facilities
As of December 31, 2014, the Company had a $2.1 billion unsecured syndicated revolving credit facility (the “2014
Motorola Solutions Credit Agreement”) scheduled to mature on May 29, 2019 which replaced the previous $1.5 billion unsecured
syndicated revolving credit facility (the “2011 Motorola Solutions Credit Agreement”). The Company must comply with certain
customary covenants, including maximum leverage ratio as defined in the 2014 Motorola Solutions Credit Agreement. The
Company is no longer subject to a minimum interest coverage covenant under the new facility. The Company was in compliance
with its financial covenants as of December 31, 2014. The Company did not borrow under the 2011 Motorola Solutions Credit
Agreement or the 2014 Motorola Solutions Credit Agreement during the twelve months ended December 31, 2014.
As of December 31, 2014, the Company had a letter of credit sub-limit of $450 million under the 2014 Motorola Solutions
Credit Agreement. No letters of credit were issued under the revolving credit facility as of December 31, 2014.