ADT 2009 Annual Report Download - page 242

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Shareholders’ Equity (Continued)
Dividends—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 the Company’s registered
share capital. As a result, the Company intends to first pay dividends in the form of a reduction of
registered share capital until at least January 1, 2011. After January 1, 2011, the Company expects to
make dividend payments in the form of a reduction in contributed surplus, which also may be made
free of Swiss withholding taxes.
On March 12, 2009 the Company’s Board of Directors declared a quarterly dividend on the
Company’s common shares of CHF 0.23 per share, which was paid on May 27, 2009 to shareholders of
record on April 30, 2009. On May 7, 2009 the Company’s Board of Directors declared a quarterly
dividend on the Company’s common shares of CHF 0.23 per share, which was paid on August 26, 2009
to shareholders of record on July 31, 2009. On September 10, 2009 the Company’s Board of Directors
declared a quarterly dividend on the Company’s common shares of CHF 0.23 per share, which will be
paid on November 24, 2009 to shareholders of record on October 30, 2009. These quarterly dividends
represent the first, second and third installments of an annual dividend of CHF 0.93 per share
approved by the shareholders on March 12, 2009. While certain administrative steps need to occur to
effectuate the dividend payment, approval by the shareholders establishes the dividend under Swiss law.
As a result, the Company recorded an accrued dividend of CHF 440 million as of March 12, 2009
which approximated $377 million based on the exchange rate in effect on that date. The dividend was
approved at the special shareholders meeting on March 12, 2009 and is made in the form of a return
of capital. This amount was recorded as a reduction of common shares, which reduced the Company’s
par value of CHF 8.53 to CHF 7.60. However, the Company expects to actually pay dividends in U.S.
dollars, based on exchange rates in effect shortly before the payment date. Prior to the Change of
Domicile, on December 4, 2008, the Company’s Board of Directors declared a quarterly dividend on
the Company’s common shares of $0.20 per share, which was paid on February 2, 2009 to shareholders
of record on January 5, 2009. This amount was recorded as a reduction of accumulated (deficit)
earnings. On December 6, 2007, March 13, 2008 and May 8, 2008 the Company’s Board of Directors
declared a quarterly dividend on the Company’s common shares of $0.15 per share, which were paid on
February 1, 2008, May 1, 2008 and August 1, 2008, respectively, to shareholders of record on January 3,
2008, April 1, 2008 and July 1, 2008, respectively. On September 9, 2008 the Company’s Board of
Directors declared a quarterly dividend on the Company’s common shares of $0.20 per share, which
was paid on November 3, 2008 to shareholders of record on October 1, 2008.
Share Repurchase Programs—The Company’s Board of Directors approved the $1.0 billion 2008
Share Repurchase Program, $1.0 billion 2007 Share Repurchase Program, $2.0 billion 2006 Share
Repurchase Program, and the $1.5 billion 2005 Share Repurchase Program in July 2008,
September 2007, May 2006, and September 2005, respectively. The following table represents the
150 2009 Financials