ADT 2011 Annual Report Download - page 296

TYCO INTERNATIONAL LTD.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
(Continued)
9. SHAREHOLDERS’ EQUITY (Continued)
On March 10, 2010, the Company’s Board of Directors declared a quarterly dividend on the Company’s
common shares of CHF 0.22 per share, which was paid on May 26, 2010 to shareholders of record on May
14, 2010. On July 8, 2010, the Company’s Board of Directors declared a quarterly dividend on the Company’s
common shares of CHF 0.22 per share, which was paid on August 25, 2010 to shareholders of record on July
30, 2010. On September 9, 2010 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 November 23, 2010 to shareholders of
record on October 29, 2010. On December 9, 2010 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 February 23, 2011 to
shareholders of record on January 28, 2011. The dividends were paid in U.S. Dollars converted to Swiss
Francs at the USD/CHF exchange rate in effect shortly before the payment dates.
As of September 30, 2011 and September 24, 2010, there was CHF 10,004,333 and CHF 1,503,920,
respectively, allocated from share capital to contributed surplus, related to the impact of dividends
declared as a capital reduction on shares owned directly by the Company.
BHS Acquisition
On May 14, 2010, the Company acquired all of the outstanding equity of BHS. To complete this
acquisition, the Company issued 35,156,050 registered shares with a par value of CHF 7.60 and 37,238
shares were contributed by a subsidiary that holds shares in the Company in treasury.
Consolidation of Reserves
To comply with Swiss tax regulations, the Board of Directors intends to propose to the Company’s
shareholders that the accounts ‘‘General reserve’’ and ‘‘Reserve for treasury shares’’ and ‘‘Contributed
surplus’’ be consolidated and form subaccounts of a new ‘‘Reserve from capital contributions’’. The
subaccounts ‘‘General reserve’’ and ‘‘Reserve for treasury shares’’ are legal reserves which need to be
covered by net assets before the Company is legally permitted to pay dividends. The ‘‘Contributed
surplus’’ account shall be allocated to the proposed ‘‘Reserve from capital contributions’’ as subaccount
of the legal reserves for tax purposes. This allocation would preserve the ability of the Company to
distribute from the ‘‘Contributed surplus’’ subaccount to shareholders free of Swiss withholding taxes.
Treasury Shares
The Company’s Board of Directors approved the $1.0 billion 2011 share repurchase program, the
$1.0 billion 2010 share repurchase program and the $1.0 billion 2008 share repurchase program, in
April 2011, September 2010 and July 2008, respectively. During the year ended September 30, 2011, the
Company repurchased 30,000,663 million shares for CHF 1,232,617,191 under these programs. During
the year ended September 24, 2010, the Company repurchased 24,329,623 shares for CHF 966,846,802
under the 2008 share repurchase program. Both the 2008 and 2010 share repurchase programs were
completed during the year ended September 30, 2011. As of September 30, 2011, approximately $700
million remained outstanding under the 2011 share repurchase program.
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