How to record the corporate spinoff of Jacobs Solutions (J), 12 shares, to Amentum Holdings (AMTM)

mudtracker2

How to record the corporate spinoff of Jacops Solutions (J), 12 shares, to Amentum Holdings (AMTM)

NotACPA

Depends upon which Q product you have. And, what you started with. And the spin-off ratio.

mudtracker2

Windows 11, Quicken Business & Personal V59.10. Jacops Solutions 12.145 shares. Kept the 12.145 shares of Jacop $130.900 but added 12 shares of Amentum holdings @ $32.2500.

NotACPA

Looks like almost a 1 for 1 spin-off … except there's that pesty 0.145 sh of J. Did you also receive a small amount of cash for any fractional sh of AMTM?

Also, when did this actually happen? I'm showing AMTM as being incorporated in 2010.

Jim_Harman

The company is Jacobs, not Jacops. I have corrected the title.

The record date was 9/23/24. See this announcement

https://invest.jacobs.com/news/news-details/2024/Jacobs-Solutions-Announces-Record-Date-and-Distribution-Date-for-the-Spin-Off-of-Its-Critical-Mission-Solutions-and-Cyber--Intelligence-Government-Services-Businesses/default.aspx

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mudtracker2

0.145 is from reinvested dividends.

NotACPA

https://community.quicken.com/discussion/comment/20457272#Comment_20457272

But in a 1 for 1 spin-off, I would have thought that you would have received 0.145 of AMTM also … which was my question, not how you got the 0.145

q_lurker

This appears to be a pretty straight forward Corporate Security Spinoff action (Enter Transactions button). Though I dislike parts of the current implementation Quicken uses, the basic results seem to be mostly OK.

In this case, I suggest you should have Jacobs spinoff Amentum on 9/27/24. I would use the closing prices of 129.86 and 25.67, respectively with a 1:1 share ratio. If you then need to tweak the details to match your brokerage data, you can. The spinoff will generate 12.145 shares of AMTM so you would then sell the 0.145 shares for a cash in lieu (CIL) amount you should have also received, perhaps a few days later.

As I implied, your brokerage may use different fair market values in computing how the your basis in Jacobs is split off to AMTM. That is where the detils can get really tricky.

mudtracker2

Cannot enter "1:1" into the Spinoff dialog box as a share ratio. Is there another way to record this transaction?

mudtracker2

I'm getting very discouraged.

Jim_Harman

The prompt says "New shares issued ___ per old share". You must do exactly what it says and enter 1, not 1:1.

mudtracker2

The new stock AMTM does not show in the "ACCOUNTS" bar.

q_lurker

@mudtracker2 I would not expect it to show there - it is a stock, not a separate account. The value of the AMTM shares should be included in the account used for that transaction.

Maybe you need to share more about your setup. Do you typically have each stock you own in its own account? Why?

mudtracker2

Yes. Each stock is listed separately. My brokerage buys and sells quite often. In this case the ATM was sold on 10/9/2024 . 12 shares @ 24.9599 ($299.52)

q_lurker

We are not communicating clearly. Where is each stock listed separately? What ACCOUNTS bar are you referring to?

If you brokerage buys and sells frequently, do you manually create a new account in Quicken for each security?

Are you downloading transactions from the brokerage, or manually entering data these frequent buys and sells?

The conventional wisdom in this context is to have a Quicken account for each real-world brokerage account. Each of those Quicken accounts (including IRAs and the like) can then hold the various securities held in the real world account.

Only the more complete account-level total value is presented in the Quicken account bar (typically on the left of the screen).

mudtracker2

I am referring to the ACOUNTS BAR that appears on the left side of the screen.

I am manually entering each transaction for each security. I am not downloading.

When a new security is purchased, I use the "+" sign "ADD ACCOUNT" to enter the transaction. It appears at the bottom of the investing area.

I want to thank you for helping me. I'm not good at this, as you probably have guessed. Thank you.

Jim_Harman

A more common and usually easier way to set up your investments is to create one Account in Quicken for each of your brokerage accounts, not one for each security.

For example, if you have a taxable brokerage account and an IRA, that would be two accounts.

If you are entering transactions manually and you buy a new security, you would go to Tools > Security List, click on the Add Security button, and enter the information on that security. Then you would go to the account that will hold the security and enter a Buy transaction to buy it. When you receive dividends or sell a security, you would enter that information in the account.

With this setup, the account balances and holdings should match the statements you receive from the brokerage.

If you would like information on how to consolidate your holdings in Quicken to match the broker's accounts, please post back.

q_lurker

I don't condone the approach you are using. I consider it inefficient to have so many accounts with only a single security in each. So be it.

So in the Jacobs account, are there now transactions related to the Amentum Holdings SECURITY generated by the spinoff action?

If so, you might be able to:

• Make sure you have a good backup of this file.
• Create the Amentum ACCOUNT in your normal fashion
• Go to the Jacobs ACCOUNT
• Right-click on any of the transactions and choose the Move Transactions option
• Near the bottom of that pop-up frame, make sure the Select all transactions for the same security … checkbox is checked
• Select any one of the Amentum transactions which will then select them all
• Click on the Move to Account box and select the Amentum ACCOUNT
• Make sure the number of transactions is reasonable
• Click the Move button

All the Amentum Transactions should now be in the Amentum ACCOUNT and they that ACCOUNT should have value to it.

You may also need to be sure the Amentum Holdings SECURITY has the proper ticker assigned to it (AMTM).

• Ctrl-Y to get the security list
• Click on Amentum
• Click the Edit Detail button
• Enter AMTM into the Ticker box if it is not there already.
• OK and close all unneeded windows.

The price for Amentum should now update when you regularly update price quotes.

mudtracker2

Yes, I would like more information on how to consolidate the holdings. Also, yes I have an IRA that is consolidated.

In the previous message q_lurker respond

"I don't condone the approach you are using. I consider it inefficient to have so many accounts with only a single security in each. So be it."

This may be the time to change things.

Thank you.

Jim_Harman

OK, here are instructions are for your situation, where you have multiple accounts in Quicken that correspond to one real life account and you are entering all your transactions manually. This will move all of the transactions for the individual accounts into one account that matches the real life account. Follow these steps carefully, because if you make a mistake the only way to recover may be to restore your backup and start over.

1. Back up your data file in case something goes wrong.
2. Pick one of your existing accounts to be the consolidated account. This might be the one that currently has the most transactions.
3. In that account, click on the gear at the top right at select Edit account details. Next to Account name, enter a new descriptive name, such as Vanguard Brokerage. If Yes is selected next to Single mutual fund, change it to No.
4. Go an account that is to be consolidated, click on the gear for that account, and select Move transactions.
5. Next to "Move to account:" at the bottom right, select the account you have chosen as the consolidated account.
6. Click on Select all and then Move.
7. Check in your consolidated account to see that the transactions and holdings have been moved. You can click on Holdings in the consolidated account to see the current securities in that account.
8. Repeat steps 4-7 for the other accounts that are to be consolidated..

NotACPA

I'd be inclined to add to @Jim_Harman's reply that you take several add'l backups during the process …just so you don't have to go all the back to Square 1 in the event of issues.

mudtracker2

YES - - it worked, thank you very much. Is there some sort of published book, or something else, that describes how to do some of these things?? I really just stumble through this stuff and would like to be more comfortable and confident doing it.

q_lurker

Is there some sort of published book, or something else, that describes how to do some of these things?

"Quicken for Windows: The Official Guide" was one of the best. I do not believe it has been updated for several years (since 2018?), but the basics have not really changed that much. I am also not sure how deep it went into Investing accounts, reports, and activities.. Check your local libraries.