Attention, those of you who own Valero Energy Corp. (VLO): VLO announced a spin-off of CST Brands (CST). Shareholders will receive 11 shares of CST for every 100 shares of VLO. Due to the spin-off, if VLO is not called away, you should sell your shares of CST after May expiration and use the proceeds to reduce your cost basis.
To do this, multiply the sell price of CST by 11% (.11). This is the number that you will use to reduce the purchase price of each of your remaining purchases. For example, if you sell your shares of CST for $32, you will reduce all of the purchase prices on your Individual Stock Purchase Record by $3.52 (30 X .11).
LattcoPro clients: please sell the shares of CST after May expiration and give us a call and we will make the adjustments for you.
For more information on the spin-off and the adjustments necessary for tax purposes, please see the Valero website: http://www.valero.com/InvestorRelations/Pages/InvestorFAQS.aspx#CSTHoldings