Stock Split Frequently Asked Questions
What is a three-for-one stock split?
All stockholders at the close of business on June 17, 2010 (Record Date) will receive two (2) additional shares, in the form of a stock dividend, for each share of Deckers stock owned.
What is the difference between a three-for-one stock split and a stock dividend?
They are effectively the same. In both cases, stockholders will own three times as many shares after the split.
Why is Deckers splitting the stock?
Deckers' Board of Directors made a decision to split the stock to make the shares more accessible to a broader range of investors and to increase liquidity in the trading of Deckers shares.
Did the stockholders vote to approve the stock split?
Stockholder approval was not needed because the split was in the form of a stock dividend, and the number of shares outstanding after the split is still below the maximum number of shares authorized by our stockholders. Only the Board of Directors’ approval was necessary. At the 2010 annual meeting of stockholders, the stockholders approved an increase to the authorized number of shares under Deckers charter in order to provide a sufficient number of shares for this stock split and other future business purposes.
How does a three-for-one stock split work?
After a three-for-one split, stockholders will receive two additional shares for every share they currently own. Therefore, each stockholder will own three times as many shares after the split as prior to the split. Accordingly, the price of each share will be roughly one-third the pre-split share price, thus the total value of the holdings immediately after the split will be the same as before the split. Each stockholder’s investment value remains the same until the stock price moves up or down.
For example, a stockholder who owns 100 common shares of Deckers at a market price of $150 as of the Record Date has a total value of $15,000. After the split, this stockholder will own 300 common shares valued at approximately $50 per share for a total investment value of the same $15,000.
Do I need to pay anything for these new shares?
No.
What are the tax consequences for this split?
For U.S. federal income tax purposes, the receipt of new shares in this stock split distribution will not be taxable as income. However, you will need to adjust your tax basis to reflect this split in determining gain or loss if you sell any of your shares. Your tax basis for each original pre-split share will be allocated evenly among the original share and the two new shares. Thus, after the split, your tax basis for the original share and for each of the two new shares distributed on that original share will be equal to one-third of the pre-split basis of the original share. Your holding period for each new share will be the same as the holding period for the corresponding original share.
Consult Your Personal Tax Advisor
The above summary is provided for your general information. It does not constitute tax advice and does not purport to be complete or to describe the consequences that may apply to particular categories of stockholders. You should consult your own tax advisor about the tax consequences of any distribution, the calculation of your tax basis and any transaction you undertake with your shares and for specific advice based on your individual circumstances. For Deckers stockholders outside the U.S., please consult with your local tax advisor on tax impacts as they could vary by jurisdiction.
What are the key dates related to Deckers’ stock split?
June 17, 2010 - Record Date This date determines which stockholders are entitled to receive additional shares as a result of the stock split.
July 2, 2010 – Payable Date This is the date when, as of the close of trading on NASDAQ, BNY Mellon Shareowner Services, Deckers’ stock transfer agent, will adjust stockholders’ holdings to reflect the stock split.
July 6, 2010 - Ex-Dividend Date
This is the date when Deckers common stock will begin trading at its new split-adjusted price as of the opening of trading on NASDAQ.
Does the stock split change my percentage ownership in Deckers?
No, the stock split does not change your proportionate interest in the company.
Can I trade shares between the Announcement Date (May 28, 2010) and the Record Date?
Yes. If you trade your shares before the Record Date, you will not receive split shares. Your trade will be settled on a pre-split basis.
Can I trade shares between the Record Date and the Payable Date?
Yes. The “regular way” market, reported under the Company’s normal DECK symbol, will continue to trade at the higher pre-split price. Since sellers in the “regular way” market will receive full value for the shares they sell, they are not entitled to the split shares they will receive by virtue of being holders on the record date, so they transfer their rights to the split shares to their buyers by means of “due bills.” If you buy stock at the “regular way” price, you are normally entitled to receive the stock split shares.
From June 17, 2010 through July 2, 2010, Deckers’ common shares will trade only at the “regular way” price. Deckers’ common shares will trade at the post-split price on July 6, 2010, the first business day after the stock split distribution.
For further information on “regular way” trading, you should contact your broker.
Will there be a “when issued” market for the split Deckers shares of stock?
No.
If my shares are held in street name, how will I be notified?
Your broker will notify you.
Has Deckers ever split the stock before?
No.
The remaining questions are related to paper stock certificates and book-entry shares. If your shares are held by a brokerage account, the remaining questions do not apply to you.
When will I receive my stock split shares?
On or about July 2, 2010, Deckers’ transfer agent, BNY Mellon Shareowner Services, will send to registered holders a personalized Stock Distribution Statement and Transmittal letter regarding their new book-entry shares.
Where will the notification be mailed?
If you are a registered stockholder, your notification will be mailed to the address that our transfer agent, BNY Mellon Shareowner Services, has on file. To verify the accuracy of your address, you can contact BNY Mellon Shareowner Services directly at 877.258.2919 or online at www.bnymellon.com/shareowner/isd. If you hold shares in a brokerage account in the broker’s name, the additional shares will be sent directly to your broker.
How can I update my mailing address?
If you are a registered stockholder, you can update your address by contacting our transfer agent, BNY Mellon Shareowner Services, at 877.258.2919 or online at www.bnymellon.com/shareowner/isd.
Will I receive a stock certificate for the new shares?
No. If you are a registered holder of Deckers common shares, you will receive the stock split shares in book-entry form. This means that your shares will be credited to an account registered in your name on the books of Deckers, which are maintained by BNY Mellon Shareowner Services.
What is “book-entry”?
Book-entry form of registered ownership allows you to own shares without having paper stock certificates in your possession. You are the owner of record and enjoy the same stockholder benefits as you would if you held paper stock certificates.
What are the benefits of book-entry shares?
Book entry ownership eliminates some of the problems associated with paper certificates such as storage and safety of securities. Book-entry shares also eliminate the requirement for physical movement of stock certificates at the time of sale or transfer of ownership.
How do I keep track of my book-entry shares?
You are encouraged to view your account balance and activity online at www.bnymellon.com/shareowner/isd.
I have stock certificates. Can I convert them to book-entry shares?
Yes. You may convert your stock certificates to book-entry shares at any time by submitting the appropriate stock transfer documents to BNY Mellon Shareowner Services. Visit Investor ServiceDirect online at www.bnymellon.com/shareowner.isd, or call 877.258.2919.
Can I get stock certificates for my book-entry shares?
You may request paper stock certificates for the whole shares in your book-entry account at any time. Visit Investor ServiceDirect online at www.bnymellon.com/shareowner.isd, or call 877.258.2919.
What should I do with the stock certificates I currently hold? Are they still valid?
The stock certificates that you currently hold are still valid and should not be destroyed or exchanged. Those certificates continue to represent the same number of shares as shown on their face and should be kept in a secure place.
How can I transfer my book-entry shares to my broker?
You can transfer your book-entry shares to your broker using one the following procedures:
- The fastest and easiest way – provide your broker with your Account Key at BNY Mellon Shareowner Services, your Taxpayer Identification Number and your account registration information; and request that your broker initiate a DRS profile transaction, or
- Obtain a “Broker-Dealer Authorization Form” by visiting www.bnymellon.com/shareowner.isd, or call 877.258.2919, or
- Request a stock certificate and then deliver it to your broker for deposit into your account.
What happens if I lose my Stock Distribution Statement?
Unlike stock certificates, the Stock Distribution Statement is not a negotiable document, so there is no replacement fee. You can request replacement statements at any time by contacting BNY Mellon Shareowner Services at 877.258.2919.