What was the effect of the spin-off of Axcelis shares to Eaton shareholders on December 29, 2000?
A. The ratio of the spin-off was 1.179 Axcelis Technologies, Inc. shares to 1 Eaton share. As a result, the tax basis of Eaton’s shares was reduced to 86.77% of the tax basis immediately prior to the spin-off. (For example, if the tax basis of your Eaton shares was $100 per share on December 28, 2000, the tax basis automatically became $86.77 per share as a result of the spin-off.
