Annual Report 2011

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

Note 3 – Treasury shares

The reserve for treasury shares held by Adecco S.A. is transferred to/from retained earnings. As of December 31, 2011 and December 31, 2010, all treasury shares held by the Adecco Group are held by Adecco S.A.

 

Carrying value

(in CHF millions)

Number
of shares

Average
purchase/sale
price per share
(in CHF)

Highest
price
per share

(in CHF)

Lowest
price
per share

(in CHF)

 

 

 

 

 

 

January 1, 2010

854

15,184,075

 

 

 

Disposals/utilisation for option exercises

(38)

(622,595)

60

60

56

Reversal of prior years write-down

58

 

 

 

 

December 31, 2010

874

14,561,480

 

 

 

Purchase

224

4,355,000

51

61

33

Utilisation for stock-based compensation settlement

(6)

(101,375)

60

60

60

Write-down

(180)

 

 

 

 

December 31, 2011

912

18,815,105

 

 

 

In 2011, Adecco S.A. acquired 4,355,000 treasury shares for a total consideration of CHF 224 (EUR 178).

As of December 31, 2011, the treasury shares are intended to be used for the settlement of the prepaid forward and the outstanding employee stock option plans and long-term incentive plan (for further details refer to Note 9 to the consolidated financial statements).

In 2011 and 2010, Adecco S.A. awarded 4,697 and 5,356 treasury shares, respectively, to the Chairman of the Board of Directors as part of his compensation package (refer to section 3.1.1 “Board of Directors’ compensation and shareholding” within the Remuneration Report). In addition, in 2011, 96,506 shares were used to settle restricted share unit (“RSU“) awards under the long-term incentive plan and 172 shares were used to settle stock option exercises. In December 2010, 580,624 treasury shares were used upon the exercise of call options on Adecco S.A. shares which were entered into in connection with the employee tradable stock option programme. In 2010, 33,529 shares were used to settle stock option exercises and 3,086 treasury shares were sold.

In 2011, the carrying value of treasury shares designated for the long-term incentive plan was written down by CHF 17 to the December 2011 average share price and the carrying value of the remaining treasury shares was written down by CHF 163 to the minimum strike price of the prepaid forward. In 2010, the write-down of treasury shares recorded in 2009 was reversed to the acquisition cost resulting in a gain of CHF 58.