Return of Capital

If a T. Rowe Price fund pays out more in distributions than it earned during the year, you do not owe tax on your share of the excess amount, which is called a "nontaxable distribution" or "return of capital." We report this type of distribution in Box 3 of Form 1099-DIV. You will need to subtract any amounts reported in Box 3 of Form 1099-DIV from the cost basis of your shares. For information on IRS Form 8937 and organizational actions affecting the basis of securities, including items such as mergers, fund liquidations, and reclassifications that affect cost basis, commonly referred to as "corporate actions," please visit our website at Corporate Actions.

Listed below are the 2013 dividends paid by the T. Rowe Price funds that have a return of capital for Form 1099-DIV purposes.

2013 Return of Capital
T. Rowe Price Fund 2013 Payment Date Per Share Amount Tax Character
Before After
Emerging Markets Local Currency Bond 1/31/2013 $0.018150760 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 2/28/2013 $0.018098483 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 3/28/2013 $0.020530789 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 4/30/2013 $0.019246387 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 5/31/2013 $0.020095752 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 6/28/2013 $0.015338936 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 7/31/2013 $0.017040139 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 8/30/2013 $0.018745278 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 9/30/2013 $0.015490510 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 10/31/2013 $0.018473384 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 11/29/2013 $0.002678032 Income Dividend Return of Capital
Global Real Estate 3/27/2013 $0.004588878 Income Dividend Return of Capital
Global Real Estate 6/27/2013 $0.009942569 Income Dividend Return of Capital
Global Real Estate 9/27/2013 $0.006883317 Income Dividend Return of Capital
Global Real Estate 12/18/2013 $0.004444858 Income Dividend Return of Capital
International Bond 1/31/2013 $0.018530792 Income Dividend Return of Capital
International Bond 2/28/2013 $0.017058179 Income Dividend Return of Capital
International Bond 3/28/2013 $0.017234802 Income Dividend Return of Capital
International Bond 4/30/2013 $0.004356862 Income Dividend Return of Capital
International Bond 5/31/2013 $0.002942185 Income Dividend Return of Capital
International Bond 6/28/2013 $0.001710753 Income Dividend Return of Capital
International Bond 7/31/2013 $0.003209150 Income Dividend Return of Capital
International Bond 8/30/2013 $0.004573916 Income Dividend Return of Capital
International Bond 9/30/2013 $0.003311062 Income Dividend Return of Capital
International Bond 10/31/2013 $0.006084848 Income Dividend Return of Capital
International Bond 11/29/2013 $0.005000855 Income Dividend Return of Capital
International Bond 12/31/2013 $0.004128159 Income Dividend Return of Capital
Summit GNMA 9/30/2013 $0.021264409 Income Dividend Return of Capital

Reclassifications

A reclassification means that the tax character of the dividend on your Form 1099-DIV is different than the tax character reported on your statement, which reported the dividend to you. Tax character indicates whether the dividend is from taxable or tax-exempt income or is a short-term or long-term gain.

Listed below are the 2013 dividends paid by the T. Rowe Price funds that have been reclassified for Form 1099-DIV purposes.

2013 Reclassifications
T. Rowe Price Fund 2013 Payment Date Per Share Amount Tax Character
Before After
Emerging Markets Bond 11/29/2013 $0.046595489 Income Dividend Long-Term
Capital Gain
Emerging Markets Local Currency Bond 11/29/2013 $0.034520150 Income Dividend Long-Term
Capital Gain
Global Real Estate 12/18/2013 $0.091883100 Income Dividend Long-Term
Capital Gain
International Bond 3/28/2013 $0.001114460 Income Dividend Long-Term
Capital Gain
International Bond 4/30/2013 $0.014169423 Income Dividend Long-Term
Capital Gain
International Bond 5/31/2013 $0.016173699 Income Dividend Long-Term
Capital Gain
International Bond 6/28/20133 $0.014457013 Income Dividend Long-Term
Capital Gain
International Bond 7/31/2013 $0.013903414 Income Dividend Long-Term
Capital Gain
International Bond 8/30/2013 $0.014281889 Income Dividend Long-Term
Capital Gain
International Bond 9/30/2013 $0.012882331 Income Dividend Long-Term
Capital Gain
International Bond 10/31/2013 $0.013058593 Income Dividend Long-Term
Capital Gain
International Bond 11/29/2013 $0.013148713 Income Dividend Long-Term
Capital Gain
International Bond 12/31/2013 $0.013953427 Income Dividend Long-Term
Capital Gain
Limited-Term Bond Portfolio 1/31/2013 $0.000392600 Income Dividend Long-Term
Capital Gain
Spectrum Income 11/29/2013 $0.032550899 Income Dividend Long-Term
Capital Gain