Discovery Communications stock dividend

On August 6, 2014 Discovery Communications paid a dividend to holders of class A, class B and class shares. The dividend was paid as new class C shares of Discovery Communications.

The cost basis allocation information from IRS form 8937 was found in the Investor Relations area of the Discovery web site.

For holders of class A and class B shares, this will be a spinoff.  For holders of class C shares this transaction is a simple 2 for 1 stock split. The information below is based on the information available from the cost basis allocation information on the Discovery web site. In the company example average prices of the shares involved were used.

The Stock Split Entry - For Class C shares

Here is the information you need to complete the spinoff if you held class C shares. For holders of class C shares, this is not a spinoff but a stock split.

Go to transactions > Stock split to enter this transaction

Security:  Discovery Communications, class C (DISCK)

Date: 8/6/2014

Split ratio:  2 for 1

If you need to enter a spinoff, go to Transactions > Spinoff  or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this URL: https://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here is the information you need to complete the spinoff if you held class A shares.

Date: 8/6/2014

Select Parent Security (or Parent Company) : Discovery Comm., class A (DISCA)

Remaining Basis Percentage: 50.66

Cash received:  See your broker statement for cash-in-lieu received

Spinoff  Security (or Symbol of New Company) : Discovery Comm., class C (DISCK)

 Shares received : 1.0 x (#of DISCA  shares owned)   (Remember to include fractional shares.)

For example, if you owned 100 DISCA shares, you should receive 1.0 x 100 = 100 DISCK shares.

Price Per Share : 40.48 (An average price on 8/7/2014)  

Save the transaction and the spinoff has been entered.

Here is the information you need to complete the spinoff if you held class B shares.

Date: 8/6/2014

Select Parent Security (or Parent Company) : Discovery Comm., class A (DISCB)

Remaining Basis Percentage: 51.13

Cash received:  See your broker statement for cash-in-lieu received

Spinoff  Security (or Symbol of New Company) : Discovery Comm., class C (DISCK)

 Shares received : 1.0 x (#of DISCA  shares owned)   (Remember to include fractional shares.)

For example, if you owned 100 DISCB shares, you should receive 1.0 x 100 = 100 DISCK shares.

Price Per Share : 40.48 (An average price on 8/7/2014) 

Save the transaction and the spinoff has been entered.