How to record a "split-off" for Sirius

Rick Pula

Owned Sirius (460 shares) for quite some time (Sirius XM HLDGS Inc.com - Siri exchange OTC. Aparently they announced a exchange ratio for the "split-off" that took place yesterday. As far as I ever knew my 460 shares was all Sirius XM stock. A company called Liberty Media and Sirius XM Holdings Inc are doing some sort of split-off. The symbol of the Sirius stock I owned was SIRI and the "new" Sirius will still have the same symbol of SIRI.

I am confused as to how to record this event in quicken. I have never heard of a split off either. I do not see a transaction type called "split-off" in quicken and this is not a stock split either.

I tried to do a corporate spin off and it looked to work because it gave me the proper new shares for the new stock. Only problem is it did not zero out the 460 shares. I used .1 per share which gave me the proper 46 shares. Quicken then wanted to merge transactions somehow and the dollar amounts changed. 1 box was greyed out, so I could only pick 1 option and it messed up the dollars.

I am wondering if I just dont do a "remove" shares since the symbol is the same.

So I am looking for any advice on how to record this type of transaction correctly in quicken. I did not find any other help results thus the reason for this post. Any help or suggestions would be appreciated.

NotACPA

I can't quite follow, from your post, exactly what happened. You owned 460 SIRI. What do you own now?

And a Corp Spin-off isn't supposed to reduce the quantity of your original holding. It reduces the VALUE of that holding, but not the quantity. And the reduction in the original holding becomes the value of the stock that's spun-off.

q_lurker

So as I read up on this a bit, it seems Liberty Media owned a substantial holding in Sirius (83%), they split that off as a separate company. Then that new company merged with the original Sirius and kept the name and ticker of the original but with 1/10 of the shares issued.

The net result as I look at it:

If you were a Sirius shareholder, it is basically a 1:10 reverse split.

If you were a Liberty Media shareholder it is something else I haven’t tried to figure out. Like a spinoff but maybe not.

Rick Pula

q_lurker, my broker confirmed it as a reverse split. Do you know how to record a reverse split in quicken?

NotACPA

https://community.quicken.com/discussion/comment/20452224#Comment_20452224

The same as a regular split, using Q's Stock Split txn. Only you input 1 new share for 10 old shares when asked for the ratio.

Jim_Harman

You will probably also need to do the following a few days after the date the split was recorded:

• Go to tolls > Security List and click on the name of the security to open the Security Detail view
• Click on More then Edit price history and review the prices near the split date. The price jump should be on the same date as the split. Select any incorrect prices and click on Edit to make needed corrections.

GLL

The exchange ratio for split-off and merger of LSXMA, LSXMB and LSXMK was announced on 9/4/2024 as being in exchange for 0.8375 shares of common stock of "New Sirius" (Sirius XM Holdings, Inc. [Nasdaq: SIRI]).

https://www.libertymedia.com/investors/news-events/press-releases/detail/542/liberty-media-and-sirius-xm-announce-final-exchange-ratio

I just entered transactions in Quicken to REMOVE existing shares of LSXMA, LSXMB, LSXMK and ADD shares of SIRI at the 0.8375 exchange ratio. Non-taxable transaction, so prior cost basis just carries forward. Matches my brokerage account. Assuming that fractional shares will be exchanged for cash in the next few days.

Rick Pula

GLL, I have no shares of this Liberty Media. When I bought Sirius, it was all Sirius and under SIRI (for years). So not sure your method will work. I am gonna try the other suggestion by notacpa using quickens split transaction. If it works I'll post another comment.

q_lurker

@GLL - That sounds like a very reasonable approach for someone who owned those Liberty Sirius shares. If truly a non-taxable transaction, the investor would possibly want to do the Adds on a per lot basis. I suspect a Corporate Acquisition macro-transaction could be used with the new Sirius acquiring the various Liberty Sirius shares.

To treat the fractional shares and cash-in-lieu accurately, the Add Shares should include the fractional shares as precisely as desired (perhaps 3 decimal places) and the aggregate fractional shares then get sold for the cash-in-lieu amount received.

Rick Pula

The method suggested by "notacpa" worked. I only had to adjust the price for 9/10 in the portfolio otherwise it shows 46 shares. Running quotes just now showed the correct new price x the 46 shares.

From my brokerage the original name give when bought was Sirius xm hdldgs inc com. The new name from my broker drops the "com". So i also did a corporate name change to bring in compliance.

THANK YOU ALL FOR YOUR INPUT!!

TF

Hi, I am still not sure how to convert my LSXMK to SIRI(SiriusXM). Any step by step help would be appreciated.

I was looking at GLL's instructions but not sure how the remove would tie in to the add instructions.

Thank you!!!

q_lurker

@TF - I suggest the Enter Transactions button, Corporate Acquisition transaction with Sirius acquiring LSXMK at the 0.8375 share ratio.

TF

Thank you q_lurker!!! Can you tell me what price I should put. Does it matter? Can I use the opening price of SIRI on 9/10?

q_lurker

I don't think it matters. I think you can use the 9/10 opening price. I think it will get overwritten by downloaded prices for that date.

TF

Thank you q_lurker!!!