A cash basis of $0 is absolutely correct IF your basis in the parent company is $0, and the IRS's position is that if a MetLife stockholder received their MetLife shares IN THE DEMUTUALIZATION then their basis in MetLife is $0. (Others disagree and no superior court has settled conflicting court opinions on this matter.) But a MetLife stockholder that purchased the stock in the open market does have a basis, and that basis can be allocated to the company that was spun-out.
