Making people successful in a changing world - Annual Report 2012

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Notes to Consolidated Financial Statements - as of December 30, 2001In millions, except share and per share amountsNote 4 – Property, Equipment and Leasehold ImprovementsDec. 30, 2001 Dec. 31, 2000Land and buildings CHF 97 CHF 99Furniture, fixtures and office equipment 230 211Computer equipment and software 758 633Leasehold improvements 264 2061,349 1,149Accumulated depreciation (614) (489)CHF 735 CHF 660Note 5 – Accounts Payable and Accrued ExpensesDec. 30, 2001 Dec. 31, 2000Accounts payable CHF 293 CHF 273Wages and benefits 1,826 1,849VAT and sales taxes 653 680Income and other taxes 615 669Other 922 882CHF 4,309 CHF 4,353The depreciation expense was CHF 194, CHF 176 and CHF 102 for2001, 2000 and 1999 respectively. Included in property, equipmentand leasehold improvements are assets acquired under capital leaseswith an original cost of CHF 31 and CHF 32 and accumulateddepreciation of CHF 10 and CHF 15 as of December 30, 2001 andDecember 31, 2000 respectively.Note 6 - Financing ArrangementsShort-term debtTo support short-term working capital and borrowing requirements,Adecco had in certain countries in which it operates available banklines of credit of CHF 1,421 and CHF 1,229 and borrowingsoutstanding of CHF 975 and CHF 1,178 as of December 30, 2001 andDecember 31, 2000 respectively. The lines of credit are in variouscurrencies and have various interest rates. The average interest ratewas 3.4% and 6%, as of December 30, 2001 and December 31, 2000respectively.Long-Term DebtPrinciple Maturity Interest rate December 30, 2001 December 31, 2000Multicurrency revolving credit facility CHF 1,500 2002/2003 CHF - CHF 1,051Guaranteed notes EUR 400 2006 6.0% 608 -Guaranteed convertible notes EUR 357 2004 1.5% 529 548Guaranteed notes USD 200 2006 7.0% 336 328Bonds CHF 300 2005 4.0% 300 300Guaranteed notes FRF 800 2008 6.0% 181 184Guaranteed notes USD 50 7.1% 88 82Subordinated notes undated - 46Other 25 192,067 2,558Less current maturities (20) (10)Long-term portion CHF 2,047 CHF 2,548In January 2000, Adecco entered into CHF 1,500 of unsecuredmulticurrency revolving credit facilities consisting of CHF 1,000revolving credit facility due in 2003 and a one year CHF 500revolving credit facility. Interest is at LIBOR plus a maximum marginof 0.375% (including a maximum utilisation fee of 0.025%), with amaximum annual commitment fee of 0.1875% and 0.15% on the3- 1 /2 year and one year facilities, respectively, payable on theundrawn portion of each facility. These funds were used to refinanceCHF 842 of Adecco debt maturing in February 2000 andto fund, in part, the cash requirements of the Olsten acquisition. InJanuary 2001, Adecco amended the existing agreement of CHF 500revolving credit facility for another year to expire in 2002. As ofDecember 30, 2001 Adecco had no amounts drawn down under thecredit facility.In March 2001, Adecco Financial Services Ltd, a wholly-ownedsubsidiary of Adecco issued notes with a principle amount of EUR400 (CHF 608), which were used to refinance existing indebtednessand for general corporate purposes. The notes are guaranteed byAdecco SA on an unsecured and unsubordinated basis.In connection with the March 2000 Olsten acquisition, Adeccoassumed Olsten’s outstanding USD 200 senior notes. Additionally,Adecco assumed Olsten’s outstanding FRF 800 guaranteed notes.In November 1999, Adecco Finance BV (formely Meridian BV),a wholly-owned subsidiary of Adecco, issued EUR 360 (CHF 576)16
Notes to Consolidated Financial Statements - as of December 30, 2001In millions, except share and per share amountsconvertible notes. The notes were redeemable for the principalamount together with accrued interest at the option of the noteholder only on November 25, 2001. Certain of the note holdersexercised their redemption right on their notes for the principalamount totalling EUR 3. The notes are convertible into Adeccoshares assuming a share price of CHF 107.24 and an exchange rateof CHF 1.6084 per Euro. The remaining balance of the notes isconvertible into 5,361,150 shares of Adecco SA.In connection with the 1999 Delphi acquisition, Adecco assumedDelphi’s outstanding USD 50 guaranteed senior note. Interest on thenote is payable semi-annually and the principal amount of the noteis repayable in six equal annual instalments commencing June 2002.Upon adoption of SFAS No. 133 as of January 1, 2001 “Accountingfor Derivative Instruments and Hedging Activities”, subordinatedundated notes of CHF 72 have been reclassified from debt to otherliabilities. (see Note 13).Under the terms of the various short and long-term creditagreements, Adecco is subject to covenants requiring, among otherthings, compliance with certain financial tests and ratios. As ofDecember 30, 2001, Adecco was in compliance with all financialcovenants.Payments of long-term debt are due as follows:Fiscal year2002 CHF 202003 222004 5502005 6542006 624Thereafter 197CHF 2,067Note 7 – Shareholders’ EquityAdecco’s shareholders’ equity consists of common shares andparticipation certificates, each with par value CHF 1.00.Participation certificates entitle the holder to receive dividends,other distributions and liquidation proceeds to the extent suchpayments are made to the holders of common stock. Participationcertificates are non-voting.Included in treasury stock are common shares of 129,558 and133,410 and participation certificates of 43,260 and 42,020 as ofDecember 30, 2001 and December 31, 2000 respectively. Treasurystock is generally reserved to support option exercises under stockoption plans.On May 2, 2001, the annual general meeting of shareholdersapproved the changes of authorised and conditional capital(authorised but not issued shares).As of December 30, 2001 19,000,000 common shares werereserved for issuance in case of special capital market transactions,such as acquisitions.Adecco had 7,082,612 and 5,267,760 common shares reserved forissuance of common shares to employees and directors upon theexercise of stock options as of December 30, 2001 and December 31,2000 respectively. Additionally, 5,399,880 and 7,000,000 commonshares were reserved for issuance for financial instruments, such asconvertible bonds as of December 30, 2001 and December 31, 2000.On May 2, 2001, the annual general meeting of shareholdersapproved the split of all common shares by 10 for 1 and allparticipation certificates by 2 for 1, effective May 14, 2001. The parvalue of common shares was reduced from CHF 10.00 to CHF 1.00and the par value of the participation certificates was reduced fromCHF 2.00 to CHF 1.00.Adecco may only pay dividends out of unappropriated retainedearnings disclosed in the annual financial statements of Adecco SA(“Holding Company”), prepared in accordance with Swiss law and asapproved at the annual general meeting of shareholders. TheseHolding Company financial statements present unappropriatedretained earnings of CHF 1,433 as of December 31, 2001.Note 8 – Stock Option PlansAs of December 30, 2001, Adecco had options outstanding relating toits common shares under several existing plans and plans assumedin the Olsten acquisition. Under these plans, options vest andbecome exercisable in instalments, generally on a ratable basis overtwo to five years beginning on the day of the grant or one year afterthe date of grant, and have a contractual life of three to ten years.Adecco applies APB Opinion No. 25 “Accounting for Stock Issuedto Employees” and related interpretations in accounting for its plans.No compensation cost has been recognised for its stock optionplans. Had compensation cost for Adecco’s stock-basedcompensation plans been determined based on the fair value atthe grant dates for awards under those plans consistent withSFAS No. 123, “Accounting for Stock-Based Compensation”, Adecco’snet loss and loss per share would have increased to the pro formaamounts indicated in the following table:17
Page 1 and 2: ANNUAL REPORT 2001Operational Revie
Page 3 and 4: Table of ContentsAdecco at a Glance
Page 5 and 6: RevenuesProfitsGeographical Distrib
Page 7 and 8: Klaus J. JacobsChairmanPhilippe For
Page 9: For all those people seeking to fin
Page 12 and 13: Strong management delivers resultsR
Page 15 and 16: Adecco: 30,000 entrepreneursseizing
Page 17 and 18: Patrick DeMaeseneire, AjilonStaffin
Page 19 and 20: Social change and the fitness of th
Page 21 and 22: The Agenda for ChangeLength of Assi
Page 23 and 24: Drivers inTechnologyPeople, Bricks
Page 25 and 26: And to ensure that all Adecco and s
Page 27 and 28: Hewlett Packard in South Korea -Mob
Page 29 and 30: Adecco Learning CentresAdecco UK op
Page 31 and 32: Drivers inEmerging MarketsThe appet
Page 33 and 34: Ajilon Staffing &Adecco Staffing Di
Page 35 and 36: Directors, Management and AuditorsB
Page 37 and 38: ANNUAL REPORT 2001Financial ReviewM
Page 39 and 40: Table of ContentsFinancial Review 4
Page 41 and 42: Financial reviewIn millions, except
Page 43 and 44: Selected Financial Information - Un
Page 45 and 46: Consolidated Statements of Operatio
Page 47 and 48: Consolidated Statements of Changes
Page 49 and 50: Notes to Consolidated Financial Sta
Page 51: Notes to Consolidated Financial Sta
Page 61 and 62: Report of the Group Auditors to the
Page 63 and 64: Statements of Operations (Holding C
Page 65 and 66: Notes to Financial Statements (Hold
Page 67 and 68: Major Consolidated SubsidiariesGrou
Page 69 and 70: Investor InformationStock Price Per
Page 71 and 72: Directors, Management and AuditorsB

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