On the date of publication, Mark R. Hake did not have a position in any security in this article. Page 19 of the deck shows that its 2020 adjusted EBITDA was $2.8 billion. endobj For 130 years, Merck, known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the worlds most challenging diseases in pursuit of our mission to save and improve lives. Per fidelity.com, my cost basis per share in OGN is $36.34. Unfortunately I don't have a clue when I acquired the original stock. In 2020, Organon's products recorded revenue of $6.5 billion. The guidance on calculating cost basis for this massive windfall is as follows: For U.S. federal income tax purposes, your aggregate basis in the common stock that you hold in Merck and the new Organon common stock received in the distribution (including any fractional share interest in Organon common stock for which cash is received) will equal the aggregate basis in the shares of Merck common stock held by you immediately before the distribution, allocated between your shares of Merck common stock and the Organon common stock(including any fractional share interest in Organon common stock for which cash is received) you receive in the distribution in proportion to the relative fair market value of each on the distribution date.. articles a month for anyone to read, even non-subscribers. However, the deck indicates that this is not a fully diluted number. To figure your cost basis in Altria after the spinoff, multiply $70 by the allocation factor of 30.5%, or $21.35 a share. Merck spinoff Organon continues the slide for third straight session Organon: Merck Spin-Off's Shares Hard To Resist At Current Price How can I adjust my Merck and Organon to reflect this spinoff properly? Sometimes when companies issue shares to shareholders after a spinoff of assets, including cash in lieu of fractional shares, they will issue guidance to their shareholders regarding how to calculate basis in light of the spinoff. Turbo Tax entered info from my 1099-B as follows: box 1e (cost or other basis) is what it is asking from me, sale category is currently checked as box E (long term noncovered). I recently updated my position on the Corporate Spinoff macro-transaction.