31 Additional information concerning equity
Share capital and treasury shares
As of 31 December 2015, the total number of shares issued remained unchanged from the prior year at 51,801,943 shares. All shares have a par value of CHF 1 and are fully paid up. Each share entitles the holder to one vote. Shares with an aggregate market value of CHF 2 million (prior year: CHF 5 million) were allocated for share-based compensation plans. See Note 11.
The holdings of treasury shares have changed as follows:
Number |
Average price in CHF |
In CHF million |
||||
|---|---|---|---|---|---|---|
| Balance at 31 December 2013 | 802 | 435 | – | |||
| Purchases on the market | 8,600 | 525 | 5 | |||
| Allocated for share-based compensation | (9,253) | 535 | (5) | |||
| Balance at 31 December 2014 | 149 | 525 | – | |||
| Purchases on the market | 3,730 | 567 | 2 | |||
| Allocated for share-based compensation | (3,879) | 563 | (2) | |||
| Balance at 31 December 2015 | – | – | – |
As of 31 December 2015, Swisscom had no treasury shares in its portfolio (prior year: 149 shares). As a result, the balance of shares outstanding as at 31 December 2015 totalled 51,801,943 (prior year: 51,801,794 shares).
Other reserves
In CHF million |
Hedging reserve |
Fair value reserve |
Foreign currency translation adjustments |
Total other reserves |
||||
|---|---|---|---|---|---|---|---|---|
| Balance at 31 December 2013 | (19) | 7 | (1,559) | (1,571) | ||||
| Foreign currency translation adjustments of foreign subsidiaries | – | – | (46) | (46) | ||||
| Change in fair value | 10 | – | – | 10 | ||||
| Gains and losses transferred to income statement | 5 | – | – | 5 | ||||
| Income tax expense | (3) | – | 15 | 12 | ||||
| Balance at 31 December 2014 | (7) | 7 | (1,590) | (1,590) | ||||
| Foreign currency translation adjustments of foreign subsidiaries | – | – | (194) | (194) | ||||
| Change in fair value | (12) | 4 | – | (8) | ||||
| Gains and losses transferred to income statement | 11 | (6) | – | 5 | ||||
| Income tax expense | 2 | – | 51 | 53 | ||||
| Balance at 31 December 2015 | (6) | 5 | (1,733) | (1,734) |
The hedging reserves comprise the changes in the fair value of hedging instruments which were designated as cash flow hedges. Changes in the fair value of available-for-sale financial assets are recognised in the fair value reserves. Reserves arising from foreign currency translation adjustments comprise the differences from the foreign currency translation of the financial statements of subsidiaries and associates from the functional currency into Swiss francs. On 31 December 2015, cumulative foreign currency translation losses before taxes at Fastweb amounted to CHF 2,143 million (prior year: CHF 1,960 million).
Other comprehensive income
Other comprehensive income in 2015 may be analysed as follows:
2015, in CHF million |
Retained earnings |
Hedging reserve |
Fair value reserve |
Foreign currency translation adjustments |
Equity holders of Swisscom |
Non- controlling interests |
Total other compre- hensive income |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actuarial gains and losses from defined benefit pension plans | (393) | – | – | – | (393) | (393) | ||||||||
| Income tax expense | 80 | – | – | – | 80 | – | 80 | |||||||
| Items that will not be reclassified to income statement, net of tax | (313) | – | – | – | (313) | – | (313) | |||||||
| Foreign currency translation adjustments of foreign subsidiaries | – | – | – | (194) | (194) | – | (194) | |||||||
| Change in fair value | – | (12) | 4 | – | (8) | – | (8) | |||||||
| Gains and losses transferred to income statement | – | 11 | (6) | – | 5 | – | 5 | |||||||
| Income tax expense | – | 2 | – | 51 | 53 | – | 53 | |||||||
| Items that are or may be reclassified subsequently to income statement, net of tax | – | 1 | (2) | (143) | (144) | – | (144) | |||||||
| Total other comprehensive income | (313) | 1 | (2) | (143) | (457) | – | (457) |
Other comprehensive income in 2014 may be analysed as follows:
2014, in million CHF, restated |
Retained earnings |
Hedging reserve |
Fair value reserve |
Foreign currency translation adjustments |
Equity holders of Swisscom |
Non- controlling interests |
Total other compre- hensive income |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actuarial gains and losses from defined benefit pension plans | (1,127) | – | – | – | (1,127) | (1) | (1,128) | |||||||
| Income tax expense | 238 | – | – | – | 238 | – | 238 | |||||||
| Items that will not be reclassified to income statement, net of tax | (889) | – | – | – | (889) | (1) | (890) | |||||||
| Foreign currency translation adjustments of foreign subsidiaries | – | – | – | (46) | (46) | – | (46) | |||||||
| Change in fair value | – | 10 | – | – | 10 | – | 10 | |||||||
| Gains and losses transferred to income statement | – | 5 | – | – | 5 | – | 5 | |||||||
| Income tax expense | – | (3) | – | 15 | 12 | – | 12 | |||||||
| Items that are or may be reclassified subsequently to income statement, net of tax | – | 12 | – | (31) | (19) | – | (19) | |||||||
| Total other comprehensive income | (889) | 12 | – | (31) | (908) | (1) | (909) |
Share of equity attributable to non-controlling interests
In 2015, transactions with non-controlling interests totalling CHF 2 million (prior year: CHF 157 million) were recognised. As part of the takeover of PubliGroupe SA in September 2014, the outstanding 49% of the non-controlling shareholdings in Swisscom Directories Ltd and local.ch Ltd were acquired for CHF 162 million. The difference between the purchase price of CHF 162 million and the carrying amount of the non-controlling interests of CHF 26 million was recognised as an equity transaction with no effect on income. For further information see Note 5.