On October 31, 2014, Kimberly-Clark Corporation (KMB) distributed shares of Halyard Health, Inc. (HYH) to Kimberly-Clark shareholders of record as of the close of business on October 23, 2014. In the Spin-off, shareholders received one (1) share of HYH common stock for every eight (8) shares of Kimberly-Clark (KMB) common stock held as of the close of business on the record date.
This is a standard spinoff. For general infomarion about entering spinoffs, see FAQ 54: https://www.iclub.com/faq/Home/Article?id=54
The following information is taken from the Halyard Health Inc Tax Letter, available at https://investor.kimberly-clark.com/financials.cfm :
The number of shares of the new company: Divide the number of shares of KMB that the club had by 8. The broker statement will usually only show the whole shares that the club received, but if you received cash as part of the transaction, our accounting system needs you to enter both whole and fractional shares as part of the spinoff.
The Remaining Basis of the parent company: The Remaining Basis is 95.8478
While it is possible to use the price per share for KMB, we strongly suggest to use the remaining basis instead; this determines how much of the cost basis is transferred from KMB over to HYH.
The price per share of Halyard Health: Based on the information in the write-up, we suggest to use 38.10 (using an example of receiving 19.05 in cash if .5 a share of HYH was sold). If your broker shows a different figure, we suggest to use that instead.