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 2015 dividends paid by the T. Rowe Price funds that have a return of capital for Form 1099-DIV purposes.

2015 Return of Capital
T. Rowe Price Fund 2015 Payment Date Per Share Amount Tax Character
Before After
Emerging Markets Local Currency Bond 01/30/2015 $0.033870538 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 02/27/2015 $0.030348895 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 03/31/2015 $0.030266594 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 04/30/2015 $0.032231236 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 05/29/2015 $0.030733719 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 06/30/2015 $0.029867023 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 07/31/2015 $0.032494798 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 08/31/2015 $0.027616129 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 09/30/2015 $0.027359823 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 10/30/2015 $0.031142236 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 11/30/2015 $0.026729346 Income Dividend Return of Capital
Emerging Markets Local Currency Bond 12/31/2015 $0.030103959 Income Dividend Return of Capital
International Bond 01/30/2015 $0.014217167 Income Dividend Return of Capital
International Bond 02/27/2015 $0.013394189 Income Dividend Return of Capital
International Bond 03/31/2015 $0.010555971 Income Dividend Return of Capital
International Bond 04/30/2015 $0.013109346 Income Dividend Return of Capital
International Bond 05/29/2015 $0.015691502 Income Dividend Return of Capital
International Bond 06/30/2015 $0.014653722 Income Dividend Return of Capital
International Bond 07/31/2015 $0.015249377 Income Dividend Return of Capital
International Bond 08/31/2015 $0.013255987 Income Dividend Return of Capital
International Bond 09/30/2015 $0.013056033 Income Dividend Return of Capital
International Bond 10/30/2015 $0.015455932 Income Dividend Return of Capital
International Bond 11/30/2015 $0.005855089 Income Dividend Return of Capital
International Bond 12/31/2015 $0.002310984 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 2015 dividends paid by the T. Rowe Price funds that have been reclassified for Form 1099-DIV purposes.

2015 Reclassifications
T. Rowe Price Fund 2015 Payment Date Per Share Amount Tax Character
Before After
Global Real Estate 09/29/2015 $0.054680900 Income Dividend Long-Term
Capital Gain
Global Real Estate 12/17/2015 $0.200000000 Income Dividend Long-Term
Capital Gain
International Bond 11/30/2015 $0.006760928 Income Dividend Long-Term
Capital Gain
International Bond 12/31/2015 $0.009866088 Income Dividend Long-Term
Capital Gain
Spectrum Income 12/31/2015 $0.037802994 Income Dividend Long-Term
Capital Gain