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 2012 dividends paid by the T. Rowe Price funds that have a return of capital for Form 1099-DIV purposes.
| 2012 Return of Capital | ||||
| T. Rowe Price Fund | 2012 Payment Date | Per Share Amount | Tax Character | |
| Before | After | |||
| Emerging Markets Local Currency Bond | 1/31/2012 | $0.016058624 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 2/29/2012 | $0.016492862 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 3/30/2012 | $0.018001479 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 4/30/2012 | $0.015925053 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 5/31/2012 | $0.016610241 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 6/29/2012 | $0.016824928 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 7/31/2012 | $0.015778121 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 8/31/2012 | $0.017503140 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 9/28/2012 | $0.014195413 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 10/31/2012 | $0.017249449 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond | 11/30/2012 | $0.018030540 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 1/31/2012 | $0.015727982 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 2/29/2012 | $0.016173340 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 3/30/2012 | $0.017669354 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 4/30/2012 | $0.015607607 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 5/31/2012 | $0.016267322 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 6/29/2012 | $0.016523398 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 7/31/2012 | $0.015458659 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 8/31/2012 | $0.017144462 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 9/28/2012 | $0.013913586 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 10/31/2012 | $0.016895349 | Income Dividend | Return of Capital |
| Emerging Markets Local Currency Bond—Advisor Shares | 11/30/2012 | $0.017689571 | Income Dividend | Return of Capital |
| Institutional International Bond | 1/31/2012 | $0.004799733 | Income Dividend | Return of Capital |
| Institutional International Bond | 2/29/2012 | $0.005259920 | Income Dividend | Return of Capital |
| Institutional International Bond | 3/30/2012 | $0.005429891 | Income Dividend | Return of Capital |
| Institutional International Bond | 4/30/2012 | $0.004708483 | Income Dividend | Return of Capital |
| Institutional International Bond | 5/31/2012 | $0.004795151 | Income Dividend | Return of Capital |
| Institutional International Bond | 6/29/2012 | $0.004757868 | Income Dividend | Return of Capital |
| Institutional International Bond | 7/31/2012 | $0.004604153 | Income Dividend | Return of Capital |
| Institutional International Bond | 8/31/2012 | $0.005349580 | Income Dividend | Return of Capital |
| Institutional International Bond | 9/28/2012 | $0.004357181 | Income Dividend | Return of Capital |
| Institutional International Bond | 10/31/2012 | $0.004967675 | Income Dividend | Return of Capital |
| Institutional International Bond | 11/30/2012 | $0.004721842 | Income Dividend | Return of Capital |
| Real Assets1 | 12/18/2012 | — | Income Dividend | Return of Capital |
| Real Estate | 03/29/2012 | $0.018264103 | Income Dividend | Return of Capital |
| Real Estate | 06/28/2012 | $0.016603730 | Income Dividend | Return of Capital |
| Real Estate | 09/27/2012 | $0.018264103 | Income Dividend | Return of Capital |
| Real Estate | 12/14/2012 | $0.023245222 | Income Dividend | Return of Capital |
| Real Estate—Advisor Shares | 03/29/2012 | $0.016603730 | Income Dividend | Return of Capital |
| Real Estate—Advisor Shares | 06/28/2012 | $0.014943357 | Income Dividend | Return of Capital |
| Real Estate—Advisor Shares | 09/27/2012 | $0.014943357 | Income Dividend | Return of Capital |
| Real Estate—Advisor Shares | 12/14/2012 | $0.021584849 | Income Dividend | Return of Capital |
1We previously informed you that $0.032510862 of the per share distributions you received from the T. Rowe Price Real Assets Fund for 2012 represents a return of capital. Based on information subsequently available, all of the distributions you received from the T. Rowe Price Real Assets Fund for 2012, including the amount previously reported to you as a return of capital, represent taxable ordinary dividends.
For more information on the T. Rowe Price Advisor and R-Class funds, please visit our website for financial intermediaries at www.troweprice.com/fi.
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 2012 dividends paid by the T. Rowe Price funds that have been reclassified for Form 1099-DIV purposes.
| 2012 Reclassifications | ||||
| T. Rowe Price Fund | 2012 Payment Date | Per Share Amount | Tax Character | |
| Before | After | |||
| Emerging Markets Bond | 12/31/2012 | $0.036655406 | Income Dividend | Long-Term Capital Gain |
| Emerging Markets Local Currency Bond | 11/30/2012 | $0.005449655 | Income Dividend | Long-Term Capital Gain |
| Emerging Markets Local Currency Bond—Advisor Shares | 11/30/2012 | $0.005449655 | Income Dividend | Long-Term Capital Gain |
For more information on the T. Rowe Price Advisor and R-Class funds, please visit our website for financial intermediaries at www.troweprice.com/fi.
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