ADT 2010 Annual Report Download - page 229

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. Tyco Shareholders’ Equity (Continued)
common shares, which reduces the par value of the Company’s common shares from CHF 7.60 to
CHF 6.70.
On May 14, 2010, the Company acquired all of the outstanding equity of Broadview Security.
Broadview Security shareholders who received Tyco common stock as consideration in the merger were
included in the first installment of dividend payments that were paid on May 26, 2010. As a result, the
Company recorded an accrued dividend of CHF 32 million as of May 14, 2010, which was
approximately $28 million based on the exchange rate in effect on that date.
On March 12, 2009, the Company’s shareholders approved an annual dividend on the Company’s
common shares of CHF 0.93 per share, which was paid in the form of a return on capital in four
installments of CHF 0.23, CHF 0.23, CHF 0.23 and CHF 0.24 on May 27, 2009, August 26, 2009,
November 24, 2009 and February 24, 2010, respectively. 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. On the Company’s Consolidated Balance Sheet, this amount was recorded as a
reduction of common shares, which reduced the par value of the Company’s common shares from
CHF 8.53 to CHF 7.60. The installments were paid in U.S. dollars converted from Swiss Francs at the
USD/CHF exchange rate in effect shortly before the payment dates.
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. This amount was recorded as a reduction of accumulated earnings.
Common Stock
As of September 24, 2010, the Company’s share capital amounted to CHF 3,683,470,241, or
514,451,151 registered common shares with a par value of CHF 7.16 per share. Until March 12, 2011,
the Board of Directors may increase the Company’s share capital by a maximum amount of
CHF 1,464,159,140 by issuing a maximum of 204,491,500 shares. In addition, until March 12, 2011,
(i) the share capital of the Company may be increased by an amount not exceeding CHF 343,175,292
through the issue of a maximum of 47,929,510 shares through the exercise of conversion and/or option
or warrant rights granted in connection with bonds, notes or similar instruments including convertible
debt instruments and (ii) the share capital of the Company may be increased by an amount not
exceeding CHF 343,175,292 through the issue of a maximum of 47,929,510 shares to employees and
other persons providing services to the Company. Although the Company states its par value in Swiss
francs it continues to use the U.S. dollar as its reporting currency for preparing its Consolidated
Financial Statements.
Change in Domicile
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 and pursuant to
the laws of Switzerland, the par value of the Company’s common shares increased from $0.80 per share
to 8.53 Swiss Francs (CHF) per share (or $7.21 based on the exchange rate in effect on March 17,
2009). The Change of Domicile was approved at a special general meeting of shareholders held on
2010 Financials 141