Additional information concerning equity

Share capital and treasury shares

As of 31 December 2013, 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 a market value aggregating CHF 6 million (prior year: CHF 6 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 2011   435   404  
Purchases on the market   15,500   361   6
Allocated for share-based compensation   (15,489)   361   (6)
Balance at 31 December 2012   446   361  
Purchases on the market   15,000   435   6
Allocated for share-based compensation   (14,644)   442   (6)
Balance at 31 December 2013   802   435  

After deducting 802 treasury shares (prior year: 446 shares), the balance of shares outstanding as at 31 December 2013 totalled 51,801,141 (prior year: 51,801,497 shares).

Other reserves


In CHF million
 

Hedging
reserve
 

Fair value
reserve
  Foreign
currency
translation
adjustments
 
Total
other
reserves
Balance at 31 December 2011   (34)   2   (1,588)   (1,620)
Foreign currency translation adjustments of foreign subsidiaries       (26)   (26)
Gains and losses from available-for-sale financial assets transferred to income statement     5     5
Change in fair value of cash flow hedges   (5)       (5)
Fair value losses of cash flow hedges transferred to income statement   8       8
Income tax expense     (1)   6   5
Balance at 31 December 2012   (31)   6   (1,608)   (1,633)
Foreign currency translation adjustments of foreign subsidiaries       63   63
Change in fair value of available-for-sale financial assets     1     1
Change in fair value of cash flow hedges   7       7
Fair value losses of cash flow hedges transferred to income statement   6       6
Income tax expense   (1)     (14)   (15)
Balance at 31 December 2013   (19)   7   (1,559)   (1,571)

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. In the third quarter of 2013, Swisscom took up a debenture bond and a long-term bank loan aggregating EUR 800 million (CHF 980 million), which were designated for hedge accounting in respect of net investments in foreign subsidiaries. On 31 December 2013, cumulative foreign currency translation losses at Fastweb amounted to CHF 1,917 million (prior year: CHF 1,978 million).

Other comprehensive income

Other comprehensive income in 2013 may be analysed as follows:


2013, 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   845         845   2   847
Income tax expense   (169)         (169)     (169)
Items that will not be reclassified to income statement, net of tax                            
Foreign currency translation adjustments of foreign subsidiaries         63   63     63
Gains and losses from available-for-sale financial assets transferred to income statement       1     1     1
Change in fair value of cash flow hedges     7       7     7
Fair value losses of cash flow hedges transferred to income statement     6       6     6
Income tax expense     (1)     (14)   (15)     (15)
Items that are or may be reclassified subsequently to income statement, net of tax                            
Total other comprehensive income   676   12   1   49   738   2   740

Other comprehensive income in 2012 may be analysed as follows:


2012, in CHF million
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   (769)         (769)     (769)
Income tax expense   151           151     151
Items that will not be reclassified to income statement, net of tax                            
Foreign currency translation adjustments of foreign subsidiaries         (26)   (26)     (26)
Gains and losses from available-for-sale financial assets transferred to income statement       5     5     5
Change in fair value of cash flow hedges     (5)       (5)     (5)
Fair value losses of cash flow hedges transferred to income statement     8       8     8
Income tax expense         6   6     6
Items that are or may be reclassified subsequently to income statement, net of tax                            
Total other comprehensive income restated   (618)   3   5   (20)   (630)     (630)