How do you handle Johnson & Johnson spinoff to Kenvue ??

SteveRosey

Spinoff details were for each J&J shares Tendered you received 8 shares of kenvue ?

q_lurker

See this discussion

how should I record a partial tender of JNJ shares in exchange for KVUE?

Bur Davis

Aug 11, 2023

As a JNJ shareholder, I have the option to tender any or all of my shares of JNJ and receive shares of KVUE in return (see terms of the offer below). I am required to inform my broker by 14 aug how many shares of JNJ I wish to tender. JNJ will finalize the exchange rate on 18 aug. If I do choose to tender JNJ shares, I will see my share count of JNJ decrease and new shares of KVUE will appear equal to the final exchange rate published on 18 aug.

Quicken question: If for example I am holding 500 shs JNJ, and I choose to tender 100 of them, and assuming for the sake of argument that the JNJ-KVUE exchange rate is 1:7, how should I record in Quicken this partial spin-off?

The 'Corporate Spin-Off' transaction type is not relevant here, since it acts on the entire position.

What I plan to do (given hypothetical assumptions above):

1. Before: 500 shs JNJ, zero shs KVUE
2. Record a sale of 100 shs JNJ at cost [this is a non-taxable transaction per the offering document]
3. Buy 700 shs KVUE with the proceeds
4. After: 400 shs JNJ, 700 shs KVUE

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Here are the terms of the offer:

https://reorgdocumentlibrary.broadridge.com/Client/Client?data=0823/E37756/478160104/c

Here is a calculator showing the daily exchange rate as we roll up to the tender deadline:

https://www.envisionreports.com/jnjseparation/2023/JNJSeparationaug07/index.html

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q_lurker

See this discussion

https://community.quicken.com/discussion/7938609/how-should-i-record-a-partial-tender-of-jnj-shares-in-exchange-for-kvue

Tom Young

A not-so-pedantic correction. This was a split off, not a spin off and requires an entirely different process than a spin off. Quicken has no "split-off" wizard so the correct entries will need to be done manually, as explained in the above-referenced post.

Steven

I'm probably wrong but this appears as a transfer of shares from one company to another. I did not see in my account from Pershing any money recorded from "sale" of J&J other than the sale of fractional shares in Kenvue which was only a few dollars. Can we record this as a remove/add shares scenario

q_lurker

Please see the other discussion. That option was commented on there.