What are the tax consequences of the Special Cash Dividend paid in March 12, 2009?
Stockholders should consult their own tax advisors regarding the particular consequences of the special dividend, which varies by type of stockholder and the applicability and effect of any U.S federal, state and local and foreign tax laws as well as by a stockholder’s respective tax basis and holding period. Under U.S. federal income tax rules, the Special Dividend generally constitutes a dividend for U.S. federal income tax purposes to the extent paid from TWC’s current or accumulated earnings and profits (“e&p”), as determined under U.S. federal income tax principles. Distributions in excess of e&p generally constitute a return of capital that is applied against and reduces (but not below zero) a stockholder’s adjusted tax basis in TWC common stock. Any remaining excess is treated as a gain as if realized on the sale or other disposition of the stock. The Company has calculated that 34.18% of the Special Dividend paid to its public shareholders should be characterized by the recipie
