Debt and Credit Facilities

Long-Term Debt



December 31	2015			2014
2% Senior Convertible Notes due 2020	993			—
3.5% senior notes due 2021	396			395
3.75% senior notes due 2022	748			748
3.5% senior notes due 2023	595			594
4.0% senior notes due 2024	590			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			400
5.22% debentures due 2097	91			91
Other long-term debt	29			36
	4,396			3,407
Adjustments for unamortized gains on interest rate swap terminations	(6		)	(7		)
Less: current portion	(4		)	(4		)
Long-term debt	$	4,386		$	3,396

On August 25, 2015, the Company entered into an agreement with Silver Lake Partners to issue $1.0 billion of 2% Senior Convertible Notes which mature in September 2020. Interest on these notes is payable semiannually. The notes are convertible anytime on or after two years from their issuance date, except in certain limited circumstances. The notes are convertible based on a conversion rate of 14.5985 per $1,000 principal amount (which is equal to an initial conversion price of $68.50 per share). The value by which the Senior Convertible Notes exceeded their principal amount if converted as of December 31, 2015 was $21 million. In the event of conversion, the Company intends to settle the principal amount of the Senior Convertible Notes in cash.

The Company has recorded a debt liability associated with the Senior Convertible Notes by determining the fair value of an equivalent debt instrument without a conversion option. Using a discount rate of 2.4%, which was determined based on a review of relevant market data, the Company has calculated the debt liability to be $992 million, indicating an $8 million discount to be amortized over the expected life of the debt instrument. As of December 31, 2015, the remaining unamortized debt discount was $7 million, which will be amortized over two years as a component of interest expense. For the year ended December 31, 2015, total interest expense relating to both the contractual interest coupon and amortization of debt discount was $8 million. The total of proceeds received in excess of the fair value of the debt liability of $8 million has been recorded within Additional paid-in capital.

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. During the year ended December 31, 2014, the Company issued an aggregate principal amount of $1.4 billion consisting of: (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.

Aggregate requirements for long-term debt maturities during the next five years are as follows: 2016—$4 million; 2017—$5 million; 2018—$5 million; 2019—$5 million; and 2020—$1 billion.

In connection with the completion of the acquisition of Airwave, the Company entered into a new term loan credit agreement (the “Term Loan Agreement”), under which the Company borrowed a term loan (the “Term Loan”) with an initial principal amount of $675 million. Interest on the Term Loan is variable and indexed to LIBOR. No additional borrowings are permitted under the Term Loan Agreement and amounts borrowed and repaid or prepaid may not be re-borrowed. The Company's borrowing capacity under the 2014 Motorola Solutions Credit Agreement may be partially limited at the end of the first quarter of 2016 due to the additional indebtedness incurred in connection with the Term Loan.

Credit Facilities

As of December 31, 2015, the Company had a $2.1 billion unsecured syndicated revolving credit facility, which includes a $450 million letter of credit sub-limit, (the “2014 Motorola Solutions Credit Agreement”) scheduled to mature on May 29, 2019. The Company must comply with certain customary covenants, including a maximum leverage ratio as defined in the 2014 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of December 31, 2015. The Company did not borrow under the 2014 Motorola Solutions Credit Agreement during the twelve months ended December 31, 2015.

As of December 31, 2015, 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, 2015.