ADT 2011 Annual Report Download - page 295

TYCO INTERNATIONAL LTD.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
(Continued)
9. SHAREHOLDERS’ EQUITY
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 common shares with a par value of CHF 6.70 per share. 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 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.
Reserve for
Share General treasury Contributed Accumulated Net income/
(CHF) capital reserve shares surplus deficit (loss) Total
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
Capital Reduction ........... (451,627,204) 1,503,920 (450,123,284)
Allocation of prior year net loss . . . (1,025,500,722) 1,025,500,722 —
Net loss for the year ......... (1,405,483,760) (1,405,483,760)
Net movement due to BHS
acquisition .............. 267,185,980 (1,617,412) 1,247,830,901 1,513,399,469
Purchases and issuances of treasury
shares ................ 823,615,274 (823,615,274) —
Balance as of September 24, 2010 . . 3,683,470,241 817,677,442 1,073,784,387 36,490,531,246 (32,841,167,004) (1,405,483,760) 7,818,812,552
Capital Reduction ........... (236,647,529) 10,004,333 (226,643,196)
Allocation of prior year net loss . . . (1,405,483,760) 1,405,483,760 —
Net income for the year ....... 7,159,800,990 7,159,800,990
Purchases and issuances of treasury
shares ................ 1,001,351,034 (1,001,351,034) —
Cancellation of treasury shares .... (188,190,277) (1,113,857,022) 188,190,277 (1,113,857,022)
Dividend ................ (432,835,783) (432,835,783)
Balance as of September 30, 2011 . . 3,258,632,435 817,677,442 961,278,399 35,254,539,039 (34,246,650,764) 7,159,800,990 13,205,277,541
Dividends
Prior to May 2011, the Company paid dividends in the form of a return of share capital from the
Company’s registered share capital. These payments were made free of Swiss withholding taxes. The
Company now makes dividend payments from its contributed surplus equity position in its Swiss statutory
accounts. These payments are also made free of Swiss withholding taxes. Unlike payments made in the
form of a reduction to registered share capital, which are required to be denominated in Swiss Francs and
converted to U.S. Dollars at the time of payment, payments from the contributed surplus account may
effectively be denominated in U.S. Dollars.
Under Swiss law, the authority to declare dividends is vested in shareholders, and on March 9, 2011, the
Company’s shareholders approved an annual dividend on the Company’s common shares of $1.00 per share,
which is being paid from contributed surplus in four installments of $0.25 per share. As a result, the
Company recorded an accrued dividend of $468 million as of March 9, 2011 and a corresponding reduction
to contributed surplus. The first installment of $0.25 was paid on May 25, 2011 to shareholders of record on
April 29, 2011. The second installment of $0.25 was paid on August 24, 2011 to shareholders of record on
July 29, 2011. The third installment of $0.25 will be paid on November 17, 2011 to shareholders of record on
October 28, 2011. The fourth installment of $0.25 is expected to be paid in February 2012. The Company
records its accrued dividend in accrued and other current liabilities in the Company’s Balance Sheet.
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