HOW SHOULD I CALCULATE THE COST BASIS FOR THE 2005 SPIN-OFF OF CHAPARRAL STEEL FROM TXI?
Texas Industries, Inc. (NYSE: TXI) separated its steel operations (Chaparral Steel Company – NASDAQ: CHAP) from TXI through a tax-free spin-off on July 29, 2005. The following summary illustrates how the cost basis of the two stocks may be allocated.
Both TXI and CHAP traded as separate stocks for the first time on August 1, 2005. TXI stock opened on August 1 at $55.00 per share and CHAP stock opened at $18.90 per share. Adding both values together results in a sum of $73.90.
To get the cost basis for the new CHAP stock, divide $18.90 by $73.90 to get .2558. Then multiply .2558 by the original basis of the TXI stock.
To get the cost basis for TXI stock post-spin, divide $55.00 by $73.90 to get .7442. Then multiply .7442 by the original basis of the TXI stock.
To check your work, the cost basis in CHAP and the cost basis in TXI post-spin should add to the cost basis in TXI before the spin-off. Any additional information regarding their recent merger should be directed to the company.
Please understand that TXI is not providing any income tax advice or consulting with this message.
When is the Company's fiscal year-end?
TXI's year-end is May 31.
When are earnings generally announced?
Earnings are generally announced during the third week after a quarter's end. Year-end earnings, however, are released in mid-July.
Does TXI sponsor a Teleconference and/or Webcast when earnings have been released for the individual as well as the institutional investor?
Yes, the senior management team is scheduled online to discuss operation results of the quarter/year after earnings have been released in accordance with Reg FD (Fair Disclosure). Click here for access to the webcast. Webcast of Conference Calls are available for seven days after the real-time teleconference. Minimal registration will be requested.
Is there a dividend paid and direct deposit offered?
Historically, a quarterly dividend has been paid in the amount of $.075 per share. Direct deposit is available by completing the enrollment information on your dividend check or by accessing the transfer agent link on our website. Additionally, you may access your shareholder account online, allowing you to change address, request replacement of lost securities or checks or duplicate 1099s. You may also reach the Transfer Agent by telephone by dialing 1.800.635.9270.
When is the Annual Meeting of Shareholders?
The Annual Meeting of Shareholders is held on the third Tuesday in October and begins at 9:30 a.m.
Who is the principal investor relations contact for TXI?
Ken Allen, Vice President, Finance and Chief Financial Officer, is the principal Investor Relations contact for the Company. Mr. Allen can be reached at:
TEXAS INDUSTRIES, INC.
1341 West Mockingbird Lane
Dallas, Texas 75247
email: investor@txi.com
telephone at 972.647.6730
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