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Debt and Credit Facilities
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt and Credit Facilities Debt and Credit Facilities
Long-Term Debt 
December 3120222021
4.0% senior notes due 2024
312 585 
1.75% senior convertible notes due 2024
1,000 1,000 
6.5% debentures due 2025
70 70 
7.5% debentures due 2025
252 252 
4.6% senior notes due 2028
694 693 
6.5% debentures due 2028
24 24 
4.6% senior notes due 2029
803 803 
2.3% senior notes due 2030
893 893 
2.75% senior notes due 2031
845 844 
5.60% senior notes due 2032
595 — 
6.625% senior notes due 2037
38 38 
5.5% senior notes due 2044
397 396 
5.22% debentures due 2097
92 92 
Other long-term debt— 5 
6,015 5,695 
Adjustments for unamortized gains on interest rate swap terminations(1)(2)
Less: current portion(1)(5)
Long-term debt$6,013 $5,688 
On September 5, 2019, the Company entered into an agreement with Silver Lake Partners to issue the Senior Convertible Notes. Interest on these notes is payable semiannually. The notes became fully convertible as of September 5, 2021. The notes are convertible based on a conversion rate of 4.9140 per $1,000 principal amount as of December 31, 2022 (which is equal to an initial conversion price of $203.50 per share), adjusted for dividends declared through the date of settlement. The Company adopted ASU No. 2020-06 on January 1, 2022, using the modified retrospective method of adoption. As a result of the adoption of this ASU, the Senior Convertible Notes are accounted as a single liability measured at its amortized cost, given the embedded conversion feature does not require bifurcation and recognition as a derivative. Upon adoption of this ASU, amounts previously recognized in additional paid-in capital from the original embedded conversion feature of $10 million were reclassified to retained earnings. Refer to "Note 1: Summary of Accounting Policies" in this “Part II. Item 8. Financial Statements and Supplementary Data” of this Form 10-K for a further discussion regarding the effect of the adoption of ASU 2020-06.
In August of 2020, the Company issued $900 million of 2.30% senior notes due 2030. The Company recognized net proceeds of $892 million after debt issuance costs and debt discounts. A portion of these proceeds were then used to redeem $552 million in principal amount outstanding of the 3.75% senior notes due 2022 for a redemption price of $582 million, excluding $7 million of accrued interest. The remaining proceeds were used to repurchase $293 million in principal amount outstanding of its long-term debt under a tender offer, for a purchase price of $315 million, excluding $5 million of accrued interest. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of $56 million related to the redemption and the repurchase in Other, net within Other income (expense) in the Consolidated Statements of Operations.
In May of 2021, the Company issued $850 million of 2.75% senior notes due 2031. The Company recognized net proceeds of $844 million after debt issuance costs. A portion of these proceeds were then used to redeem $324 million in principal amount of the 3.5% senior notes due 2023 for a purchase price of $341 million, excluding $3 million of accrued interest. After accelerating the amortization of debt discounts and debt issuance costs, the Company recognized a loss of $18 million related to the redemption in Other, net within Other income (expense) in the Consolidated Statements of Operations.
In May of 2022, the Company issued $600 million of 5.6% senior notes due 2032. The Company recognized net proceeds of $595 million after debt issuance costs and discounts. A portion of these proceeds was then used to repurchase $275 million in principal amount of the Company's 4.0% senior notes due 2024 pursuant to a cash tender offer, for a purchase price of $279 million, excluding $3 million of accrued interest. After accelerating the amortization of debt discounts and debt issuance costs, the Company recognized a loss of $6 million related to the tender offer in Other, net within Other income (expense) in the Consolidated Statements of Operations.
The Company has an unsecured commercial paper program, backed by the 2021 Motorola Solutions Credit Agreement (defined below), under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $2.2 billion outstanding at any one time. Proceeds from the issuances of the commercial paper notes are expected to be used for general corporate purposes. The notes are issued at a zero-coupon rate and are issued at a discount which reflects the interest component. At maturity, the notes are paid back in full including the interest component. The notes are not
redeemable prior to maturity. As of December 31, 2022 the Company had no outstanding debt under the commercial paper program.
Aggregate requirements for long-term debt maturities during the next three years are as follows: 2023—$1 million; 2024—$1.3 billion; and 2025—$322 million. The Company has no maturities of long-term debt in 2026 or 2027.
Credit Facilities
As of December 31, 2022, the Company had a $2.25 billion syndicated, unsecured revolving credit facility scheduled to mature in March 2026 (the "2021 Motorola Solutions Credit Agreement"). The 2021 Motorola Solutions Credit Agreement includes a letter of credit sub-limit and fronting commitments of $450 million. An annual facility fee is payable on the undrawn amount of the credit line. The interest rate and facility fee are subject to adjustment if the Company's credit rating changes. The Company must comply with certain customary covenants including a maximum leverage ratio, as defined in the 2021 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of December 31, 2022. Subsequent to year end, on February 8, 2023, the Company entered into an amendment to the 2021 Motorola Solutions Credit Agreement to replace the interest rate benchmark from London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR).