These instructions are for users of the myiclub, online club accounting. This merger gives Pharmacyclics shareholders who tendered their shares to AbbVie 3 choices. They may receive all cash, a combination of cash and AbbVie shares and only AbbVie shares. In addition, Pharmacyclics shareholders may not have tendered their shares. Each option has different tax consequences. Instructions for each option will be given. The all AbbVie share option was oversubscribed so the offer was prorated. In addition, Pharmacyclics shareholders who did not tender their shares and had their shares involuntarily converted to AbbVie shares had a different proration amount. All the information below is from the information available from the S-4/A filed with the SEC and from AbbVie press releases.
First, if you have made any entries for this transaction in myiclub without using the Merger with cash transaction, delete them. The one exception is if you chose the all cash option and entered this as a sale of Pharmacyclics.
These instructions are based on information in the SEC filing regarding this merger and from AbbVie press releases. AbbVie does warn that the IRS may disagree with AbbVie’s interpretation of the relevant tax codes. In such an event, it may be necessary to edit or delete and re-enter these transactions to comply with new information regarding this merger.
The All cash option for tendered shares.
If your club chose the all cash option then this merger is treated as a sale. Enter a buy transaction using the following information.
Date: 5/26/2015
Shares Sold: all shares of Pharmacyclics held.
Proceeds: 261.25 x # ofPharmacyclics shares held.
Commissions/Fees: If you were charged a reorganization fee it can be entered here. *
* This fee can also be treated an investment expense. Treating it as a commission/fee on the sale is slightly more advantageous to the club.
The remaining scenarios all involve the receipt of both cash and AbbVie shares. All of these scenarios will use the Merger with cash transaction. Go to Accounting > Securities > Merger with cash to access the entry pages. There are three potential sets of figures for the cash and shares option, depending on if the club specifically chose the mixed cash and shares option, chose to tender shares or had the shares involuntarily converted. If you are not sure which to use, CHECK WITH YOUR BROKER. Do not try to guess which option the club chose.
Step 1
Date: 5/26/2015
Merging company: PCYC (Pharmacyclics)
Step 2
Select the button Transaction is taxable to extent of cash the received
Cash per share received: 152.26
Exchange ratio of new to old shares: 1.6639
Price per share of new shares on merger date: 65.48
Reorganization fee: Check your broker statement
Symbol of new company: ABBV
Cash received $: See your broker statement for cash-in-lieu. (This field is for the sale of any fractional share.)
The other fields on this entry screen are calculated fields and will be populated as you enter the information above.
Step 1
Date: 5/26/2015
Merging company: PCYC (Pharmacyclics)
Step 2
Select the button Transaction is taxable to extent of cash the received
Cash per share received: 100.163
Exchange ratio of new to old shares: 2.4589
Price per share of new shares on merger date: 65.48
Reorganization fee: Check your broker statement
Symbol of new company: ABBV
Cash received $: See your broker statement for cash-in-lieu. (This field is for the sale of any fractional share.)
The other fields on this entry screen are calculated fields and will be populated as you enter the information above.
Step 1
Date: 5/26/2015
Merging company: PCYC (Pharmacyclics)
Step 2
Select the button Transaction is taxable to extent of cash the received
Cash per share received: 137.496
Exchange ratio of new to old shares: 1.8891
Price per share of new shares on merger date: 65.48
Reorganization fee: Check your broker statement
Symbol of new company: ABBV
Cash received $: See your broker statement for cash-in-lieu. (This field is for the sale of any fractional share.)
The other fields on this entry screen are calculated fields and will be populated as you enter the information above.
