What to do in Quicken?
If you download transactions from your broker, it will ask you if you want to add a transaction for the new shares. I recommend that you delete the transaction. Instead go to the account and click on Enter Transaction
Choose Corporate Securities Spin-off
You need to fill in 5 boxes, and the description is a bit confusing, in my opinion. I will show you what I would do in your case:
Security Name: Arconic Inc (a drop down box)
New Company: Alcoa Corporation
New Shares Issued: 3 (this is the ratio of new to old shares. In your case 3 new for 1 old.)
Cost per old share: $? (Price of old company's share immediately after spin off)
Cost per new share: $? (Price of new company's share immediately after spin off)
After you complete the transaction, which may take your computer a while if you have alot of purchase lots, you will probably need to edit the security details for the new stock (symbol, etc). y
UKR said:Everybody,I could be terribly wrong about this. Here's what I've done.First, I have not downloaded and/or not accepted any downloaded transactions from the brokerage. IMHO, whatever you get from the broker tends to just muddle the waters. If you have accepted transactions, delete them.The transactions which I entered in my account regarding the Alcoa Inc to Arconic Inc and (new) Alcoa Corp change are:10/06/16 - Alcoa Inc reverse split 1 for 3. 10/06/16 - Broker charged mandatory reorg fee. They're fast with that.10/18/16 - finally Cash in Lieu for fractional shares received. After that, I now own 101 shares Alcoa Inc (AA).11/01/16 - Entered Alcoa Inc Corporate Name Change transaction to Arconic Inc. Change ticker from AA to ARNC and retained price history from old AA11/01/16 - Entered Corporate Spinoff transaction making a few assumptions along the way:Old security name: "Arconic Inc"New Company: "Alcoa Corp (after 11/1/16)"New shares issued: 0.33333 <- 1 for 3, as close as I can make itCost per old share: 23 <- I'm really just guessing here, but I must enter a valueCost per new share: 23 <- dittoEdited Security Detail for new Alcoa Corp to set ticker to AA.Entering the Spinoff transaction Quicken did a lot of cha-chinging and recorded a pair of "Bought" and "RtrnCap" transactions in my register next to each lot of old Alcoa (now Arconic) I owned.101 shares of old Alcoa at 1 for 3 should have given me 33.66667 shares of new Alcoa.The Spinoff transaction, going over a few DRIP lots with fractional shares, came up a little short with 33.66633 shares.My brokerage website shows I own 33.0 shares of new Alcoa CorpI guess I'll be getting another Cash in Lieu for 2/3 of a share in a few days.Bottom line: that's what I did. I hope I did it correctly. If my assumed cost per old / new share is off ... oh, well. I'm not going to worry about it.If somebody finds out what real cost I should have put, please post the numbers.And, whatever you do ... create a backup of your Quicken data file first, before you get started working on this! If you don't like the results or if something gets messed up you can restore your data file and start over.
Everybody,I could be terribly wrong about this. Here's what I've done.First, I have not downloaded and/or not accepted any downloaded transactions from the brokerage. IMHO, whatever you get from the broker tends to just muddle the waters. If you have accepted transactions, delete them.The transactions which I entered in my account regarding the Alcoa Inc to Arconic Inc and (new) Alcoa Corp change are:
q.lurker said:(Sorry for the slow response, mshiggins. Life gets in the way sometimes.)For me, the first question the user/investor needs to answers is: What companies do I want to continue to be reflected in my Quicken data? The two possible answers are:The old original Alcoa Inc, the new Arconic and the new Alcoa Corp, orOnly Arconic and the the new Alcoa Corp. The second is the 'proper' real world answer as officially what was Alcoa Inc got renamed to Arconic. You accomplish that in Quicken by executing a Corporate Name Change or by more simply editing the Security Detail and changing the name. The drawback to that name change process is that all transactions in Quicken that used that original Alcoa Inc. name will now read as Arconic transactions. That is, the user bought X shares of Arconic 3 years ago rather than X shares of Alcoa Inc. Some users may not like that presentation and may want the historical transactions to reflect Alcoa, Inc with only new going forward transactions reflecting the Arconic name. Those users will want to use a Corporate Acquisitions transaction whereby Arconic acquires the shares of Alcoa, Inc. This approach may have ramifications on investment performance reports and calculations within Quicken. I am going to proceed on the basis of the second option and here is how I would handle it. (Note I am not an owner of Alcoa/Arconic shares, nor am I an investment professional, yada, yada, yada. Do your own due diligence. Step 1 - Change name to Arconic: Edit the security details for the Alcoa Inc security you have in Quicken. Change the name to Arconic. Change the ticker to ARCN. Choose the options to copy the old (AA) prices to the new ticker and to delete the old (AA) prices.Step 2 - Create a new Alcoa Corp security: I would work from the security list, new security, Ticker symbol AA, Name Alcoa Corp.Step 3 - Spinoff Alcoa Inc shares from Arconic: I dislike the Quicken Corporate spinoff action primarily because of its backdating history-changing approach. For this type of case then, I prefer to enter transactions more manually. First, it is necessary to determine the allocation of the original Arconic (old Alcoa Inc) cost basis to the two companies - Arconic and Alcoa Corp. Several other posts have already presented information in that direction. Arconic will be publishing a Form 8937 in the coming days preseting their view on that calculation. Based on the 1/3 share ratio and prices like 18.92 for Arconic and 23 for Alcoa Corp, the split should be about 71% / 29% with Arconic keeping the larger protion of the basis. DO YOUR OWN CALCULATIONS or RELY ON YOUR INVESTMENT PROFESSIONALS!a) Remove all shares of Arconic noting the original basis and acquisition dates for each separate lot.b) For each separate lot, enter an Add Shares for the original number of Arconic shares in the lot with that lot's acquisition date and about 71% of that lot's basis. Enter a second Add Shares for the new Alcoa Corp shares, 1/3 as many as in the original lot, about 29% of the original basis, and using the original lot's acquisition date. I am always inclined to keep the share quantity to 3 decimal accuracy and to occasionally round 'differntly' to end up at the right total number of shares.)(Sidebar 1: For those choosing the three company option from my beginning question, you can process here as Remove Shares of the old Alcoa Inc, and then Add Shares for Arconic and for Alcoa Corp effecting the Corporate Acquisition in that manner.)(Sidebar 2: For those of you with many lots, perhaps from DRPs, there are techniques to generate the base Add Shares transactions such that you only need to edit those transactions to get the correct basis established. Four or five lots - not worth the trouble; 20 or 30 lots, ask about it.)When you are complete with the Add Shares transaction, you may have a fractional share of Alcoa Inc. shown that is not reflected in your brokerage data. Sell the fractional share for any cash-in-lieu you received. Closing comments: I do not necessarily trust the brokerages to get this sort of thing right the first time. You should have a basis here for questioning what they are telling you. Conversely, once you trust their data, you can tweak these transactions as necessary to get them to agree with your brokerage data, if that is important to you. Look for the Form 8937 data on the Alcoa and Arconic websites to further validate or guide what you are doing here. HTH
(Sorry for the slow response, mshiggins. Life gets in the way sometimes.)For me, the first question the user/investor needs to answers is: What companies do I want to continue to be reflected in my Quicken data? The two possible answers are: