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The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

When a spin-off occurs, the shareholders of the parent corporation are not required to surrender any of their parent corporation stock in exchange for the subsidiary's stock.

In the event that the distribution of stock to the parent corporation's shareholders amounts to a dividend, the distribution can be taxed pursuant to provisions of Income Tax statutes.

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While the spin off of publishing assets at News Corp.
On average, companies spin off 21.1% of the book value of their total assets in a transaction.
And Ralston Purina's decision to spin off its Everready battery biz from its unrelated petfood biz in 2000 made perfect sense.
When announcing the plan to separate the unit in February 2012, Sears said it expected to raise between USD400m and USD500m cash from the rights offering to spin off Hometown.
19 September 2011 - Woori Finance Holdings (SEO:053000) on Monday announced that its banking unit Woori Bank is preparing to spin off its credit card service in a bid to boost its non-banking services while also balancing its business portfolio.
NORDIC BUSINESS REPORT-9 September 2008-Swedish life science company Biolin AB to spin off dental implants business Ospol(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com
Idearc and its subsidiaries will continue to operate the domestic directories publishing business previously operated by Verizon, after the spin off.
to spin off its property/casualty subsidiary, followed by speculation that General Electric Co.
The company currently expects to review the environment for the spin off in the middle of 2002, pending improvement in the global economic outlook.
Historically, when a domestic corporation sought to spin off a foreign subsidiary, Internal Revenue Code section 1248(f) provided the principal impediment.