Download See Reverse Side for Supplemental Tax Information

October 27, 2008
October 27, 2008
Dear Brown-Forman Shareholder:
PAUL C. VARGA
CHAIRMAN & chief executive officer
Dear Brown-Forman Shareholder:
I am pleased to inform you that on September 29, 2008, Brown-Forman’s Board of Directors
announced
a stock
split, toyou
be effected
a stock dividend.
For Brown-Forman’s
every four shares of
ClassofA Common
I am pleased
to inform
that onasSeptember
29, 2008,
Board
Directors
stock
or Class
B split,
Common
held,
wasevery
issued
newof share
of Common
Class B
announced
a stock
to be stock
effected
as aeach
stockshareholder
dividend. For
fourone
shares
Class A
Common
stock.
stock or Class B Common stock held, each shareholder was issued one new share of Class B
Common stock.
For shareholders who hold their shares in certificate form, enclosed please find a Direct Registration
Advice
reflectingwho
the book
of oneinnew
Class Bform,
share enclosed
for everyplease
four shares
eitherRegistration
Class A or
For shareholders
hold entry
their shares
certificate
find aof
Direct
Class
B
shares
held
as
of
the
close
of
business
on
October
6,
2008.
Please
retain
your
existing
Advice reflecting the book entry of one new Class B share for every four shares of either Class
A or
certificates
as they
be valid.
Class B shares
heldcontinue
as of thetoclose
of business on October 6, 2008. Please retain your existing
certificates as they continue to be valid.
If appropriate, you will receive separately a check from National City Bank representing cash paid in
lieu
of the issuance
a fractional
share,
basedfrom
on National
the closing
price of one
If
appropriate,
you willofreceive
separately
a check
City market
Bank representing
cashshare
paid of
in
Brown-Forman
Class
B
common
stock
on
October
6,
2008
($68.57).
lieu of the issuance of a fractional share, based on the closing market price of one share of
Brown-Forman Class B common stock on October 6, 2008 ($68.57).
For shareholders who participate in the company’s dividend reinvestment service and stock purchase
plan,
please find who
enclosed
a statement
thatdividend
we havereinvestment
increased byservice
25% the
of plan
For shareholders
participate
in the showing
company’s
andnumber
stock purchase
shares
held
in
your
name
by
our
registrar.
plan, please find enclosed a statement showing that we have increased by 25% the number of plan
shares held in your name by our registrar.
If by chance the address on the Advice or statement is wrong, your ownership of the shares will not
be
affected.
promptly
notify
the Company’s
transfer
agentyour
andownership
registrar ofofyour
If by
chancePlease
the address
on the
Advice
or statement
is wrong,
the proper
shares address.
will not
You
may
detach
the
bottom
portion
of
the
document
or
just
send
a
note
with
the
new
information
to:
be affected. Please promptly notify the Company’s transfer agent and registrar of your proper address.
You may detach the bottom portion of the document or just send a note with the new information to:
National City Bank, Department 5352
Shareholder
Operations 5352
National CityServices
Bank, Department
P.
O.
Box
92301
Shareholder Services Operations
Cleveland,
OH 44101-4301
P. O. Box 92301
Phone:
(800)
Cleveland, OH622-6757
44101-4301
Fax:
257-8508
Phone:(216)
(800)
622-6757
E-mail:
[email protected]
Fax: (216)
257-8508
E-mail: [email protected]
If you have any questions, please call Linda Gering in our Stockholder Services Department at (502)
774-7690.
If you have any questions, please call Linda Gering in our Stockholder Services Department at (502)
774-7690.
Sincerely,
Sincerely,
See Reverse Side for Supplemental Tax Information
See Reverse Side for Supplemental Tax Information
BROWN-FORMAN CORPORATION 850 DIXIE HIGHWAY, LOUISVILLE, KY 40210 E-MAIL: [email protected] WWW.BROWN-FORMAN.COM
BROWN-FORMAN CORPORATION 850 DIXIE HIGHWAY, LOUISVILLE, KY 40210 E-MAIL: [email protected] WWW.BROWN-FORMAN.COM
SUPPLEMENTAL TAX INFORMATION
Related to the Stock Split, effected as a Stock Dividend
Paid on October 27, 2008
The receipt of the B shares in the distribution is not a taxable event. However, the cash received in
lieu of a distribution of fractional shares should be taxable to the shareholder.
In practical effect, for tax purposes the distribution of the shares is a 5 for 4 stock split of a
shareholder’s existing shares. The cost basis of a shareholder's existing A and B shares that receive
distributed shares is allocated over the existing shares and the new B shares. The new B shares are
considered to have the same "acquisition" date as the A and B shares receiving the distribution of new
B shares. The basis allocation is based on relative fair market value at the date of distribution.
This summary is not a complete discussion of all the federal income tax aspects that may be important
to you and you should not construe it as tax advice. We have not included any discussion of state,
local, or foreign income, or other tax laws. You should consult with your own tax advisor with respect
to the tax consequences of the special distribution.
Internal Revenue Service regulations (Circular 230) require that certain types of written advice include
a disclaimer. To the extent this letter contains advice relating to or concerning any federal tax issue,
such advice is not intended or written to be used, and cannot be used, by the recipient or any other
taxpayer for the purpose of avoiding federal tax penalties. Further, this description is not written, and
cannot be used, to support the promotion or marketing of the transaction(s) or matter(s) discussed
herein.
BROWN-FORMAN CORPORATION 850 DIXIE HIGHWAY, LOUISVILLE, KY 40210 E-MAIL: [email protected] WWW.BROWN-FORMAN.COM
PAUL C. VARGA
October 27, 2008
CHAIRMAN & chief executive officer
Dear Brown-Forman Shareholder:
I am pleased to inform you that on September 29, 2008, Brown-Forman’s Board of
Directors announced a stock split, to be effected as a stock dividend. For every four
shares of Class A Common stock or Class B Common stock held, each shareholder was
issued one new share of Class B Common stock.
Based on this stock distribution, you are entitled to payment for a Class B fractional share.
Please find enclosed a check representing cash paid in lieu of the issuance of a fractional
share, based on the closing market price of one share of Brown-Forman Class B Common
stock on October 6, 2008 ($68.57).
The cash received in lieu of a distribution of Class B fractional shares should be taxable as
ordinary dividend income to the shareholder.
This letter does not include all the federal income tax aspects that may be important to you
and you should not construe it as tax advice. We have not included any discussion of state,
local, or foreign income, or other tax laws. You should consult with your own tax advisor
with respect to the tax consequences of the stock distribution.
Internal Revenue Service regulations (Circular 230) require that certain types of written
advice include a disclaimer. To the extent this letter contains advice relating to or
concerning any federal tax issue, such advice is not intended or written to be used, and
cannot be used, by the recipient or any other taxpayer for the purpose of avoiding federal
tax penalties. Further, the tax information presented in this letter is not written, and cannot
be used, to support the promotion or marketing of the transaction(s) or matter(s) discussed
herein.
If you have any questions, please call Linda Gering in our Stockholder Services Department at (502) 774-7690.
Sincerely,
BROWN-FORMAN CORPORATION 850 DIXIE HIGHWAY, LOUISVILLE, KY 40210 E-MAIL: [email protected] WWW.BROWN-FORMAN.COM