BWX Technologies Inc. (BWXT) has released tax basis allocation information following its spin-off from Babcock & Wilcox Enterprises Inc. (B&W), the company announced on Monday.
As a part of the spin-off, shareholders received one share of common stock of B&W for every two shares of BWXT at the level it was at prior to the spin-off on June 18 of this year. In compliance with federal tax law, shareholders are required to allocate tax basis of pre-spin-off company stocks immediately.
The company states that fair market values should be determined by the amount a piece would sell for between a buyer and seller. U.S. tax code does not specify a means of fair market values for tax purposes. The company also lists alternative methods for determining the fair market value and urges shareholders to consult with tax advisers on their individual circumstances. Closing prices for BWXT stock was listed at $23.45 on June 30 and $18.66 for B&W.
BWXT specializes in the supply of nuclear components and nuclear fuel to U.S. government clients, and they also provide site services, management and technical support. The company is based in Lynchburg, Virginia.
The spin-off was completed on June 30 after getting the approval of the board of directors from the parent company on June 8.
