Motorola 2012 Annual Report Download - page 43

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At December 31, 2012, 100% of the Sigma Fund investments were invested in cash and U.S. government, agency and
government-sponsored enterprise obligations. This reflects a strategic decision to prioritize capital preservation rather than
investment income.
We continuously assess our cash needs and continue to believe that the balance of cash and cash equivalents, short-term
investments and investments in the Sigma Fund are more than adequate to meet our operating requirements over the next
twelve months.
Acquisitions and Investments: We used $109 million cash for acquisitions and new investment activities in 2012,
compared to $32 million in 2011 and $23 million in 2010. The cash used in 2012 was primarily for the acquisition of Psion
plc, a U.K. based leader in mobile computing solutions, for approximately $200 million, primarily utilizing foreign cash,
partially offset by net proceeds received related to the agreement with NSN to take over responsibility to implement Norway´s
TETRA public safety network. The cash used in 2011 and 2010 was for small strategic investments.
Capital Expenditures: Capital expenditures were $187 million in 2012, compared to $186 million in 2011 and $192
million in 2010. Capital spending in 2012 was primarily focused on updating our information technology infrastructure,
managed services opportunities, and engineering projects. Capital spending in 2011 as compared to 2010 was generally flat
across all functions except for a slight decrease in our services function, offset by higher information technology capital spend.
Sales of Investments and Businesses: We made $38 million of disbursements related to a divested business and sales of
investments in 2012, compared to proceeds received of $1.1 billion in 2011 and proceeds received of $264 million in 2010.
The $38 million of disbursements in 2012 were primarily comprised of payments to NSN related to the purchase price
adjustment from the sale of the Networks business, partially offset by proceeds from sales of certain of our equity investments.
The $1.1 billion in proceeds in 2011 were primarily comprised of net proceeds received in connection with sales of: (i) certain
assets of the Networks business, (ii) the Wireless Broadband businesses, (iii) certain of our equity investments, and (iv) the
Israel-based module business. The $264 million in proceeds in 2010 were related to the sale of our Israel-based wireless
network operator business.
Financing Activities
Net cash used for financing activities was $2.3 billion in 2012, compared to $5.5 billion in 2011 and $40 million in 2010.
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, and (ii) $133
million of net cash received from the issuance of common stock in connection with our employee stock option plans and
employee stock purchase plan.
Cash used for financing activities in 2011 was primarily comprised of: (i) $3.4 billion of contributions to Motorola
Mobility, (ii) $1.2 billion used for repayment of long-term debt, (iii) $1.1 billion of cash used for repurchases of shares, and (iv)
$72 million of cash used for payment of dividends, partially offset by $192 million of net cash received from the issuance of
common stock in connection with our employee stock option plans and employee stock purchase plan.
Cash used for financing activities in 2010 was primarily $1.0 billion of cash used for the repayment of long-term debt,
partially offset by: (i) $797 million of cash provided by distributions from discontinued operations, and (ii) $179 million of
cash received from the issuance of common stock in connection with our employee stock option plans and employee stock
purchase plan.
Current portion of Long-Term Debt: At December 31, 2012, our current portion of long-term debt was $4 million,
compared to $405 million at December 31, 2011. In May 2012, we retired early the $400 million aggregate principal
outstanding of our 5.375% Senior Notes due November 2012. In November 2011, we repaid, at maturity, the entire $600
million aggregate principal amount outstanding of our 8.0% Notes.
Long-term portion of Long-Term Debt: At December 31, 2012, we had outstanding long-term debt of $1.9 billion,
compared to $1.1 billion at December 31, 2011.
During the year ended 2012, we issued an aggregate face principal amount of $750 million of 3.750% Senior Notes due
May 15, 2022 (the “2022 Senior Notes”). We also called for the redemption of the $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.
During the year ended 2011, we repurchased $540 million of our outstanding long-term debt for a purchase price of
$615 million, excluding approximately $6 million of accrued interest, all of which occurred during the three months ended
July 2, 2011. The $540 million of long-term debt repurchased included principal amounts of: (i) $196 million of the
$314 million then outstanding of the 6.50% Debentures due 2025, (ii) $174 million of the $210 million then outstanding of the
6.50% Debentures due 2028, and (iii) $170 million of the $225 million then outstanding of the 6.625% Senior Notes due 2037.