A spin-off is the development of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. Now that the spin-off has occurred, NOW Inc. is its own publicly traded company, with its own management, board of directors and trading symbol.
Does NOV own or retain a controlling interest in DNOW?
No. NOV does not own any of the common stock of NOW Inc. DNOW is now publicly owned by its shareholders, just as NOV is. Each company is an independent, publicly traded company with its own management team and Board of Directors.
Where can I find the cost basis allocation document in regards to my NOV and DNOW shares?
The cost basis allocation document can be found at http://www.distributionnow.com/ under the investor relations tab, which is located in the top right corner of the site. Once the tab has opened, scroll down to the paragraph which starts, “For more information regarding the cost basis allocation….” Once you are there, click the hyperlink http://www.nov.com/investor/. Scroll down again to the paragraph which starts, “For detailed information…” and click on the blue highlighted sentence “Important U.S.A. Federal Income Tax Information Concerning The Now Inc. Stock Distribution.”
If I sold, on or before the distribution date of May 30, 2014, shares of NOV common stock that I held on the record date of May 22, 2014, was I entitled to receive shares of NOW Inc. common stock in the distribution?
No, if you owned shares of NOV common stock on the record date of May 22, 2014 and sold those shares on the regular way market on or before the distribution date of May 30, 2014, you also sold the shares of NOW Inc. common stock that would have been distributed to you in the distribution. In this case, you (the seller) were not entitled to receive shares of NOW Inc. common stock in the distribution – the purchaser of your shares of NOV common stock would have been entitled to receive shares of NOW Inc. common stock in the distribution.
Please visit http://www.distributionnow.com/ and click on the investor relations tab. Once there, click on the financial information tab on the left-hand side of the page. The 10-12B/A form will be listed there.