Debt and Credit Facilities

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt and Credit Facilities

Debt and Credit Facilities

Long-Term Debt 

December 31	2021		2020
3.5% senior notes due 2023	$	—	$	323
4.0% senior notes due 2024	585		583
1.75% senior convertible notes due 2024	1,000		995
6.5% debentures due 2025	70		70
7.5% debentures due 2025	252		252
4.6% senior notes due 2028	693		692
6.5% debentures due 2028	24		24
4.6% senior notes due 2029	803		803
2.3% senior notes due 2030	893		892
2.75% senior notes due 2031	844		—
6.625% senior notes due 2037	38		37
5.5% senior notes due 2044	396		396
5.22% debentures due 2097	92		92
Other long-term debt	5		18
	5,695		5,177
Adjustments for unamortized gains on interest rate swap terminations	(2)		(2)
Less: current portion	(5)		(12)
Long-term debt	$	5,688	$	5,163

On September 5, 2019, in connection with the Company's repurchase and settlement of the outstanding principal amount of 2.00% senior convertible notes due 2020 issued to Silver Lake Partners, 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 (which is equal to an initial conversion price of $203.50 per share). The Company 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 2.45%, which was determined based on a review of relevant market data, the Company calculated the debt liability to be $986 million, indicating a $14 million discount to be amortized over the expected life of the debt instrument. As of December 31, 2021, the debt discount had been fully amortized as a component of interest expense. In November 2021, the Company's Board of Directors approved an irrevocable determination requiring the future settlement of the principal amount of the Senior Convertible Notes to be settled in cash.

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.

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. 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, 2021, the Company had no outstanding debt under the commercial paper program.

Aggregate requirements for long-term debt maturities during the next five years are as follows: 2022—$5 million; 2023—$1 million; 2024—$1.6 billion; 2025—$322 million; and 2026—the Company does not have any long-term debt maturities.

Credit Facilities

On March 24, 2021, the Company entered into a $2.25 billion syndicated, unsecured revolving credit facility scheduled to mature in March 2026, which can be used for borrowing and letters of credit (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. Borrowings under the facility bear interest at the prime rate plus the applicable margin, or at a spread above the London Interbank Offered Rate ("LIBOR"), at the Company's option. The 2021 Motorola Solutions Credit Agreement includes provisions allowing the Company to replace LIBOR with a replacement benchmark rate in the future under certain conditions defined in the agreement. 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, 2021.