Annual Report 2010

Adecco S.A. (Holding Company) –
Notes to financial statements
in millions, except share and per share information and compensation table data

Note 1 • Contingent liabilities

in CHF

31.12.2010

31.12.2009

 

 

 

Guarantees

2,096

4,201

Letters of comfort

93

110

Other

11

11

Total contingent liabilities

2,200

4,322

Adecco S.A. has irrevocably and unconditionally guaranteed the Euro medium-term notes of CHF 625 (EUR 500) due 2014 and accrued interest of CHF 32 and the fixed rate notes of CHF 625 (EUR 500) due 2013 and accrued interest of CHF 20 due 2013 issued by Adecco International Financial Services BV, a wholly-owned subsidiary of Adecco S.A.

Adecco S.A. has irrevocably and unconditionally guaranteed outstanding commercial paper of CHF 189 (EUR 151) issued by Adecco International Financial Services BV, a wholly-owned subsidiary of Adecco S.A.

Adecco S.A. has guaranteed or co-issued an amount of CHF 97 utilised from the revolving credit facility in the form of letters of credit as of December 31, 2010. Approximately CHF 522 of the credit facilities issued to several subsidiaries in Europe, North America, South America, Asia, and Australia have been guaranteed. Additionally, Adecco S.A. has provided guarantees and letters of comfort amounting to CHF 79 relating to government requirements for operating a temporary staffing business and to operating leases of its subsidiaries mainly in the USA.

In 2009, a Swiss VAT group was established. Adecco S.A. is jointly and severally liable for the liabilities of the Swiss VAT group. As of December 31, 2010, the Swiss VAT group liability amounted to CHF 11.

Furthermore, as of December 31, 2009, Adecco S.A. had guaranteed CHF 625 of the CHF 900 zero-coupon convertible bonds and accrued interest which were repaid in 2010 and the outstanding commitments in connection with the MPS acquisition in the amount of approximately CHF 1,336 which were honoured on the closing of the MPS acquisition in January 2010.