ADT 2011 Annual Report Download - page 252

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
17. Shareholders’ Equity (Continued)
On March 10, 2010, the Company’s shareholders approved an annual dividend on the Company’s
common shares of 0.90 Swiss Francs (‘‘CHF’’) per share, which was paid in the form of a return on
capital in four installments of CHF 0.22, CHF 0.22, CHF 0.23 and CHF 0.23 to shareholders on record
on May 14, 2010, July 30, 2010, October 29, 2010 and January 28, 2011, respectively. As a result, the
Company recorded an accrued dividend of CHF 428 million as of March 10, 2010, which approximated
$399 million based on the exchange rate in effect on that date. The accrued dividend was recorded in
accrued and other current liabilities in the Company’s Consolidated Balance Sheet as of March 26,
2010 and as a corresponding reduction of common shares, which reduced the par value of the
Company’s common shares from CHF 7.60 to CHF 6.70. 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.
On May 14, 2010, the Company acquired all of the outstanding equity of BHS. BHS 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.
Common Stock
As of September 30, 2011, the Company’s share capital amounted to CHF 3,258,632,435, or
486,363,050 registered common shares with a par value of CHF 6.70 per share following the
cancellation of 28,088,101 registered shares which had been approved at the March 9, 2011 annual
general meeting. Until March 9, 2013, the Board of Directors may increase the Company’s share
capital by a maximum amount of CHF 1,628,100,000 by issuing a maximum of 243,000,000 shares. In
addition, (i) the share capital of the Company may be increased by an amount not exceeding
CHF 321,127,717 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 and (ii) the share capital of the Company may be increased by an amount not exceeding
CHF 321,127,717 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
2011 Financials 149