On 5/7/2008, Cadbury Schweppes ADR (American Depository Receipt) stock- holders received the following for each share of Cadbury Schweppes ADR: (1) .64 shares Cadbury ADR's (CDY) and (2) .48 shares Dr Pepper Snapple Group (DPS) (which were received in exchange for the cancellation of 1.44 Cadbury beverage shares in an intervening step.)
U.S. holders do not recognize gain on this non-taxable spinoff, but must allocate part of their original basis in Cadbury Schweppes ADR's to DPS. The following percentage allocation can be used:
Cadbury ADR (CDY) 72.776%
Dr Pepper Snapple Group (DPS) 27.224%
Your holding period for DPS is your purchase date for the Cadbury ADR shares. Please note that these calculations do not apply to holders of Cadbury Schweppes "ordinary" shares.
Use our handy spinoff calculator to compute your new cost basis and the gain or loss on any "cash in lieu" of fractional shares payment. Just click on the image of the spinner to the right and then select "Dr Pepper Snapple Group" from the drop-down menu. Many fields will be pre-filled for you. Simply add your own cost basis information for Cadbury Schweppes.