Sara Lee Corp (NYSE:SLE) over the years has had a number of corporate reorganization actions. The last one has really thrown investors for a loop due to the complicated four step process required to account for it. We provide a roadmap for you to see which calculators to use and in what order.
Sara Lee Corp was originally named Sprague, Warner & Co. In 1942 it was acquired by C. D. Kenny Co. of Baltimore and the name was changed to Sprague Warner-Kenny Corp. Another name change occurred in 1945 when the name became Consolidated Grocers Corp. The name was then changed again to Consolidated Foods Corp on or about 1/1/1954 (reported dates inconsistent.)
Consolidated Foods Corp/Chicago IL (NYSE:CFD) had a further name change to Sara Lee Corp/Deerfield IL (NYSE:SLE) on 4/2/1985.
Sara Lee Corp Stock Splits and Stock Dividends. Sara Lee had various stock splits and stock dividends over the years. Use the stock split calculator if you owned Sara Lee on the following dates when stock splits occurred:
4/22/1946 3-for-1 as Consolidated Grocers
10/31/1955 10% stock div Consolidated Foods Corp
11/8/1961 5-for-4 as Consolidated Foods Corp
11/10/1964 3-for-2 as Consolidated Foods Corp
11/25/1968 4-for-3 as Consolidated Foods Corp
12/20/1983 2-for-1 as Consolidated Foods Corp
12/22/1986 2-for-1 as Sara Lee Corp
12/22/1989 2-for-1 as Sara Lee Corp
12/21/1992 2-for-1 as Sara Lee Corp
12/21/1998 2-for-1 as Sara Lee Corp
Stock Split Calculator
Coach Inc Split-off. If you owned Sara Lee on 4/4/2001 and elected to participate in the split-off exchange offer for Coach Inc, use the split-off calculatorto apportion your cost basis between Coach and Sara Lee for the number of shares that were accepted in exchange.
Hanesbrands Inc Spinoff. If you owned Sara Lee Corp on 9/5/2006, apply the spinoff calculator to apportion your cost basis between Hanesbrands Inc and Sara Lee Corp.
DE Master Blenders Spinoff. If you owned Sara Lee Corp on 6/28/2012, you received shares of Coffee Co in the first step of a four-step corporate reorganization. Apply the spinoff calculator to apportion your Sara Lee cost basis to Coffee Co (an interim entity which ends up later as DE Master Blenders NV.)
Coffee Co Change of Domicile. From step one, take the cost basis apportioned to DE Master Blenders NV and use it as input for the change of domicile calculator in this second step of the four-step Sara Lee reorganization on 6/28/2012. Because DE Master Blenders NV is a corporation based outside the USA, the unrealized appreciation at the time of departure from US shores is taxed as a capital gain.
Sara Lee Corp Reverse Split. From step one, take the cost basis apportioned to Sara Lee and use it as input for the stock split calculator in the third step of this four-step reorganization. This step computes the new cost per share and gain/loss on cash in lieu of fractional shares for the one-for-five reverse split which occurred 6/28/2012.
Stock Split Calculator
Sara Lee Corp Name Change. The last step of the four-step reorganization of 6/28/2012 was a simple name change from Sara Lee Corp to Hillshire Brands Co (NYSE:HSH).