Motorola 2012 Annual Report Download - page 44

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36
After accelerating the amortization of debt issuance costs and debt discounts, we recognized a loss of approximately
$81 million related to this debt tender in Other within Other income (expense) in the consolidated statements of operations.
The three largest U.S. national ratings agencies rate our senior unsecured long-term debt investment grade. We believe
that we will be able to maintain sufficient access to the capital markets at our current ratings. 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 in July 2011 and January 2012, the Board of Directors authorized us
to repurchase an aggregate amount of up to $3.0 billion of our outstanding common stock through December 31, 2012. On
February 26, 2012, we entered into a stock purchase agreement with Carl C. Icahn and certain of his affiliates to purchase
23,739,362 shares of our common stock for approximately $1.2 billion. On July 25, 2012, the Board of Directors authorized up
to $2.0 billion in additional funds for share repurchase, bringing the aggregate amount of the share repurchase program to $5.0
billion, and extended the entire share repurchase program indefinitely with no expiration date. During 2012, we paid an
aggregate of $2.4 billion, including transaction costs, to repurchase 49.6 million shares at an average price of $49.14 per share.
As of December 31, 2012, we had used approximately $3.5 billion of the share repurchase authority, including transaction
costs, to repurchase shares, leaving approximately $1.5 billion available for future repurchases. All repurchased shares have
been retired.
Payment of Dividends: We paid $270 million and $72 million in cash dividends to holders of our common stock during
the years ended December 31, 2012 and December 31, 2011, respectively. During the year ended December 31, 2010, we did
not pay cash dividends to holders of our common stock. Subsequent to December 31, 2012, we paid $72 million in cash
dividends to holders of our common stock.
During the years ended December 31, 2011, and 2010, we paid $8 million and $23 million, respectively, of dividends to
minority shareholders in connection with subsidiary common stock.
Credit Facilities
As of December 31, 2012, we had a $1.5 billion unsecured syndicated revolving credit facility (the “2011 Motorola
Solutions Credit Agreement”) that is scheduled to expire on June 30, 2014. The 2011 Motorola Solutions Credit Agreement
includes a provision for which we can increase the aggregate credit facility size up to a maximum of $2.0 billion by adding
lenders or having existing lenders increase their commitments. We must comply with certain customary covenants, including
maintaining maximum leverage and minimum interest coverage ratios as defined in the 2011 Motorola Solutions Credit
Agreement. We were in compliance with our financial covenants as of December 31, 2012. As of and during the year ended
December 31, 2012, there were no outstanding borrowings under the 2011 Motorola Solutions Credit Agreement.
Contractual Obligations and Other Purchase Commitments
Summarized in the table below are our obligations and commitments to make future payments under long-term debt
obligations (assuming earliest possible exercise of put rights by holders), lease obligations, purchase obligations, tax
obligations and other obligations as of December 31, 2012.
Payments Due by Period
(in millions) Total 2013 2014 2015 2016 2017
Uncertain
Timeframe Thereafter
Long-Term Debt Obligations $ 1,864 $ 4 $ 4 $ 4 $ 5 $ 405 $ — $ 1,442
Lease Obligations 356 69 54 36 28 20 — 149
Purchase Obligations 502219 9————
Tax Obligations 16125————136—
Total Contractual Obligations $ 2,431 $ 120 $ 77 $ 49 $ 33 $ 425 $ 136 $ 1,591
Amounts included represent firm, non-cancelable commitments.
Long-Term Debt Obligations: Our long-term debt obligations, including the current portion of long-term debt, totaled
$1.9 billion at December 31, 2012, compared to $1.5 billion at December 31, 2011.
Lease Obligations: We lease certain office, factory and warehouse space, land, information technology and other
equipment, principally under non-cancelable operating leases. Our future minimum lease obligations, net of minimum sublease
rentals, totaled $356 million. Rental expense, net of sublease income, was $65 million in 2012, $92 million in 2011, and $123
million in 2010.