ADT 2009 Annual Report Download - page 121

2009 to shareholders of record on October 30, 2009 and will be converted at the U.S. dollar/Swiss franc
exchange rate in effect shortly before the payment date.
Dividend Policy
Pursuant to Swiss law, dividend payments made prior to January 1, 2011 are subject to Swiss
withholding taxes unless made in the form of a return of capital from our registered share capital. As a
result, we intend to first pay dividends in the form of a reduction of registered share capital,
denominated in Swiss francs, until at least January 1, 2011. However, we expect to actually pay
dividends in U.S. dollars based on exchange rates in effect shortly before the payment date.
Fluctuations in the value of the U.S. dollar compared to the Swiss franc between the date the dividend
is declared and paid will increase or decrease the U.S. dollar amount required to be paid. We manage
the potential variability in cash flows associated with the dividend payments by entering into derivative
financial instruments used as economic hedges of the underlying risk. After January 1, 2011, we expect
to make dividend payments in the form of a reduction in contributed surplus, which also may be made
free of Swiss withholding taxes. We expect to obtain shareholder approval of an annual dividend
amount each year at our annual general meeting, and we expect to distribute the approved dividend
amount in four quarterly installments, the timing of which will be determined by our Board of
Directors. The timing, declaration and payment of future dividends to holders of our common shares
will depend upon many factors, including our financial condition and results of operations, the capital
requirements of our businesses, industry practice and any other relevant factors. Future dividends will
be proposed by our Board of Directors and, as stated above, require shareholder approval. Dividends
paid from contributed surplus also require shareholder approval, but may be denominated and paid in
U.S. dollars.
2009 Financials 29