Motorola 2007 Annual Report Download - page 99

Commercial Paper and Other Short-Term Debt
December 31 2007 2006
Notes to banks $ 134 $71
Commercial paper —300
134 371
Add: current portion 198 1,340
Fair value adjustment —(18)
Notes payable and current portion of long-term debt $ 332 $1,693
Weighted average interest rates on short-term borrowings throughout the year
Commercial paper 5.3% 5.1%
Other short-term debt 4.6% 5.8%
In November 2007, the Company repaid, at maturity, the entire $1.2 billion aggregate principal amount
outstanding of its 4.608% Notes due November 16, 2007.
In November 2007, the Company issued an aggregate face principal amount of: (i) $400 million of
5.375% Senior Notes due November 15, 2012, (ii) $400 million of 6.00% Senior Notes due November 15, 2017,
and (iii) $600 million of 6.625% Senior Notes due November 15, 2037.
In January 2007, the Company repaid, at maturity, the entire $118 million aggregate principal amount
outstanding of its 7.6% Notes due January 1, 2007.
In September 2005, the Company repurchased an aggregate principal amount of $1.0 billion of its outstanding
long-term debt for an aggregate purchase price of $1.1 billion through cash tender offers. Included in the
$1.0 billion of long-term debt repurchased were repurchases of a principal amount of: (i) $86 million of the
$200 million of 6.50% Notes due 2008 outstanding, (ii) $241 million of the $325 million of 5.80% Notes due
2008 outstanding, and (iii) $673 million of the $1.2 billion of 7.625% Notes due 2010 outstanding. In addition,
the Company terminated a notional amount of $1.0 billion of fixed-to-floating interest rate swaps associated with
the debt repurchased, resulting in an expense of approximately $22 million. The aggregate charge for the
repurchase of the debt and the termination of the associated interest rate swaps, as presented in Other income
(expense) in the Company’s consolidated statements of operations, was $137 million.
In September 2005, the Company retired approximately $1 million of the $398 million of 6.5% Debentures
due 2025 (the “2025 Debentures”) in connection with the holders of the debentures right to put their debentures
back to the Company. The residual put options expired unexercised and the remaining $397 million of 2025
Debentures were reclassified to long-term debt.
Aggregate requirements for long-term debt maturities during the next five years are as follows:
2008—$198 million; 2009—$4 million; 2010—$534 million; 2011—$607 million; 2012—$409 million.
In December 2006, the Company signed a new five-year revolving domestic credit facility (“5-Year Credit
Facility”) for $2.0 billion, replacing the $1.0 billion facility due to expire in May 2007. At December 31, 2007,
the commitment fee assessed against the daily average amounts unused was 8.0 basis points. Important terms of
the 5-Year Credit Facility include a covenant relating to the ratio of total debt to EBITDA. The Company was in
compliance with the terms of the 5-year Credit Facility at December 31, 2007.
The Company’s current corporate credit ratings are “BBB” on rating watch negative by Fitch, “Baa1” with a
review for possible downgrade by Moody’s, and “BBB” on credit watch negative by S&P. The Company has never
borrowed under its domestic revolving credit facilities. The Company also has $2.3 billion of uncommitted
non-U.S. credit facilities with interest rates on borrowings varying from country to country depending upon local
market conditions. At December 31, 2007, the Company’s total domestic and non-U.S. credit facilities totaled
$4.3 billion, of which $314 million was considered utilized.
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