Motorola 2006 Annual Report Download - page 96

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88
4. Debt and Credit Facilities
Long-Term Debt
December 31
2006
2005
7.6% notes due 2007 $ 118 $ 118
4.608% senior notes due 2007 1,205 1,212
6.5% notes due 2008 114 114
5.8% notes due 2008 84 84
7.625% notes due 2010 525 525
8.0% notes due 2011 599 599
6.5% debentures due 2025 397 397
7.5% debentures due 2025 398 398
6.5% debentures due 2028 297 296
5.22% debentures due 2097 194 193
Other long-term debt 141 39
4,072 3,975
Fair value adjustment (28) (50)
Less: current portion (1,340) (119)
Long-term debt $ 2,704 $3,806
Short-Term Debt
December 31
2006
2005
Notes to banks $71$29
Commercial paper 300 300
371 329
Add: current portion 1,340 119
Fair value adjustment (18) Ì
Notes payable and current portion of long-term debt $1,693 $448
Weighted average interest rates on short-term borrowings
Commercial paper 5.1% 3.4%
Other short-term debt 5.8% 3.4%
In January 2007, the Company repaid, at maturity, all $118 million aggregate principal amount outstanding of
its 7.6% Notes due January 1, 2007 (the ""2007 7.6% Notes'').
In November 2006, $1.2 billion of 4.608% Senior Notes due November 16, 2007 were reclassified to current
portion of long-term debt.
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.
On September 1, 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.