ITT Corporation Tagline
Investor Relations Contacts

Thomas Scalera
Director, Investor Relations
thomas.scalera@itt.com
tel +1 914 641 2030

Melissa Trombetta
Manager, Investor Relations
melissa.trombetta@itt.com
tel +1 914 641 2032

Janice Tedesco
Investor Relations Administrator
janice.tedesco@itt.com
tel +1 914 641 2031

Tax Tips

Did you have ITT Corp.stock on February 28, 1994? If so, please refer to the Rayonier, Inc. distribution section below which explains the costs basis analysis for that particular distribution.

ITT Corp. Distribution

Did you have ITT Corp. stock in your portfolio before Dec. 20,1995? If so, you'll be glad to learn the Internal Revenue Service (IRS) ruled on Dec. 15, 1995 that the spin-off qualifies as a tax-free distribution.

The new tax basis for each of the incoming stocks is:

  • ITT Industries - 18.81607%
  • ITT Hartford stock - 40.48626%
  • New ITT - 40.69767%

To illustrate, if a shareholder had 100 shares of Old ITT Common Stock with an aggregate tax basis of $8,000, his old stock was exchanged for:

  • 100 shares of ITT Industries (NYSE: IIN) stock having a tax basis of $1,505.29 (that is, 18.81607% x $8,000);
  • 100 shares of ITT Hartford stock having a tax basis of $3,238.90 (40.48626% x $8,000); and
  • 100 shares of New ITT Stock having a tax basis of $3,255.81 (40.69767% x $8,000).

The formula was calculated as follows. The aggregate tax basis of the ITT Industries, New ITT and ITT Hartford stocks held immediately after the Dec. 19, 1995 spin off equals the tax basis of old ITT Common Stock immediately before the spin off, allocated in proportion to the relative market values of each of the new stocks on Dec. 19, 1995. Specifically, the "when-issued" common stock closing price per share on the NYSE consolidated reporting system on Dec. 19, 1995 was: ITT Hartford, $47.875; New ITT, $48.125; and ITT Industries, $22.25.

Rayonier, Inc. Distribution

If you owned ITT Corporation shares on February 28, 1994 you would have received one share of Rayonier, Inc. common stock for every four shares of ITT Corporation stock held.

If a holder held ITT Corporation common stock, the new tax basis for such stock would be 91.6135% of the pre-existing basis for such stock and the new tax basis for Rayonier, Inc. would be 8.3865%.

To illustrate, if a holder held 100 shares of ITT Corporation common stock with an aggregate tax basis of $8,000, he would receive a distribution of 25 shares of Rayonier stock. After the distribution, his new tax basis in his ITT Corporation common stock would be $7,329.08 (that is, 91.6135% x $8,000) and his new tax basis in the Rayonier stock would be $6,70.92 (that is, 8.3865% x $8,000).