ADT 2009 Annual Report Download - page 277

TYCO INTERNATIONAL LTD.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 25, 2009
(Continued)
6. SHAREHOLDERS’ EQUITY
Reserve for
Share General treasury Contributed Accumulated
(CHF) capital reserve shares surplus loss Net loss Total
Opening balance at March 12,
2009 ................ 4,088,387,212 817,677,442 288,080,519 36,028,517,705 (31,815,666,282) — 9,406,996,596
Capital Reduction ......... (220,475,747) (220,475,747)
Net loss for the year ....... (1,025,500,722) (1,025,500,722)
Net movement in shares due to
sales and purchases ...... (36,293,994) 36,293,994 —
Closing balance as of
September 25, 2009 ...... 3,867,911,465 817,677,442 251,786,525 36,064,811,699 (31,815,666,282) (1,025,500,722) 8,161,020,127
As discussed in Note 1, effective March 17, 2009, the Company changed its jurisdiction of
incorporation from Bermuda to the Canton of Schaffhausen, Switzerland. In connection with the
change of domicile, the par value of the Company’s common shares increased from $0.80 per share to
CHF 8.53 per share through an approximate 1-for-9 reverse share split, followed by the issuance of
approximately eight fully paid up shares so that the same number of shares were outstanding before
and after the change of domicile, which reduced share premium and increased common shares.
The Company expects to obtain shareholder approval of an annual dividend amount each year at
the annual general meeting, and expects to distribute the approved dividend amount in four quarterly
instalments, the timing of which will be determined by the Board of Directors.
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, subject to the adoption of implementing regulations and amendments to Swiss
tax law.
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