Cost Basis Information

BASIS ALLOCATION FOR DISCOVERY HOLDING COMPANY ("DHC"), DISCOVERY COMMUNICATIONS, INC. ("DCI" OR "DISCOVERY") AND ASCENT MEDIA CORPORATION ("AMC") COMMON STOCK

Record date 17-Sep-08
First trading date 18-Sep -08
DHC Series A Common Each share of DHC Series A common stock was exchanged for:
.5 of a share of DCI A common stock and
.5 of a share of DCI C common stock and
.05 of a share of AMC Series A common stock
DHC Series B Common Each share of DHC Series B common stock was exchanged for:
.5 of a share of DCI B common stock and
.5 of a share of DCI C common stock and
.05 of a share of AMC Series B common stock

 

Trade prices on date of exchange

  Hi Lo Average
DCI Series A 10.66 7.00 8.830
DCI Series B* 9.61 9.61 9.605
DCI Series C 9.25 6.40 7.825
AMC Series A 33.81 27.21 30.510
AMC Series B*      


Basis Allocation Series A*

  Average Shares Total Percent
DCI Series A 8.830 0.5 4.4486 48.2411%
DCI Series C 7.825 0.5 3.9125 43.3146%
AMC Series A 30.510 0.05 1.5255 8.4443%

*As there was no trading activity for the DCI Series B prior to September 25, 2008, nor was there trading of the AMC Series B shares prior to October 3, 2008, we are only providing an illustration of the basis allocation information regarding the DHC Series A common shares. There are several potential methods for determining the fair market values of the DCI and AMC shares (generally and with respect to the Series B shares) for purposes of allocating tax basis following the transactions. Please consult your tax advisor regarding the allocation of basis amongst your shares. Note that these prices have been adjusted for the Series C stock dividend issued on August 6, 2014.


This is not tax advice. Discovery is providing an example of how to allocate a shareholder's aggregate tax basis in DHC Series A common stock between his or her DCI Series A and C shares and AMC Series A. This example is provided solely for illustrative purposes and as a convenience because shareholders and their tax advisors may find it useful when establishing their specific tax positions. Please remember that Discovery does not provide its shareholders with tax advice, and this illustrative example is not intended to provide tax advice. Discovery encourages its shareholders to consult with their own tax advisors with their specific questions pertaining to their own tax positions.

 

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