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Looking for how others are handling Honeywell Spin off/Reverse Split/Share Name change

Lane1983

Yesterday (June 29), Honeywell (HON) executed a multi-step restructuring plan which is giving me a geeky puzzle to solve:

Spun off its Aerospace business into a new security with symbol HONA
2:1 Reverse split with cash in lieu of fractional shares
Security name change from "HONEYWELL INTERNATIONAL INC COM USD1" to "HONEYWELL INTL INC COM", symbol remained the same HON

Feed from Fidelity into Mac Quicken Classic Business & Personal 9.1 resulted in the following transactions in Quicken:

Add Shares HONA without cost basis allocation. Fidelity site isn't showing a cost yet.
Stock Split 1 for 1 (not 2 for 1) for HON came through twice. Once for each security name
Interest Income for the In Lieu of fractional shares
2 Placeholder transactions, dated a decade ago at the inception date of the brokerage account holding the security - one adding the new security name at the post reverse split amount, the second subtracting the old security name including fractional

What are the best edits to resolve the placeholder transactions and true-up the cost basis for the 2 securities? Should the In Lieu transaction be a sale of the fractional shares? What are the pros and cons of merging the two HON security names?

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Comments

Quicken Kristina

Hello @Lane1983,

Thank you for reaching out! Before making any changes or edits, please backup your Quicken file.

Based on an earlier post about how to handle corporate spinoffs on Quicken for Mac, yes, you would want to create a sale of the fractional shares.

https://community.quicken.com/discussion/comment/20318351#Comment_20318351

You may need to wait until you have cost basis information before resolving the placeholders.

If you merge the old and new securities, all existing transactions associated with the securities you merge will share the same symbol, security name, and price history. That might simplify some things, but it also risks making the information for the new, spun-off security inaccurate. For more information on merging securities, please see this help article: https://info.quicken.com/mac/merging-securities#What-happens-after-merging?

I hope this helps!

Lane1983

I created a Return of Capital transaction at the cost basis and an Add Shares at the cost basis. THe Return of Capital is causing a change in Cash, while the Add Shares does not. Should I substitute a Buy transaction for the Add Shares transaction?

MauryJ

This is pretty fascinating as I have a similar but not identical list of transactions on Merrill using Q-Mac:
I also have a placeholder, also around what I suspect is the creation date of the account, for 126 shares, and it is feint gray instead of black - almost as if it were grayed out, but it's active.
Description for the placeholder says: "+126 shares (to reach 126 on 6/27/26) " Hovering a mouse over the description pops up a text (similar to a bubble note added in Numbers or Excel) that says: "This is a special transaction that will automatically adjust its shares to maintain a share balance of 126 on 06/27/26 if any transactions are added, deleted, or modified."

So, after the time travel shots entry to 2020 for the HONAV shares, I have the following:
A) 2 separate HONAV $0 "Dividend Income" transactions for the 29th & 30th
B) Sale at $0 of entire position of HON shares resulting in a zero share balance on the 30th
C) Another HONAV $0 "Dividend Income" transaction on the 30th (that's 3 so far on the 30th)
D) HON Buy for 126 shares but with $0
E) HONA cash for the fractional share ON 7/1 (I don't remember what the original description was but I changed the "Type" field to return of capital)

All the HONA shares are listed as HONAV until the fractional share sale, which is the first time I've seen it referred to as HONA. The Security Detail window only shows transactions since 6/30, so the CUSIP has obviously changed in the database. There's no reference to historical dividend repurchases or even the original buy unless I roll back the Portfolio View to before this happened. My portfolio view still refers to the HONA shares as HONAV, so I may have to rename it. ML calls it HONA

I have no return of fractional shares for HON yet. Maybe they rolled up the entire fractional share on HONA? The original HON shares were not divisible by 2.

At first I got all fastidious about how to edit this, but now I'm thinking all the quantities are correct, why mess with it? There's no tax impact because it's a retirement account, but the performance since initial purchase is essentially lost

Lane1983

HONAV was the stock symbol for Honeywell Aviation before it was spun off when it became HONA. I wouldn't have expected to see any transactions for that since it more of a tracking entity before there were any shares.

The Honeywell (HON) fractional shares were the result of the reverse split, not the spin. I had fractional shares in HONA from the spin.

If you open the Securities window on the Windows tab and search for HON, you will should see it twice, once with each name. If you merge the old name and new name into the new name, the transaction history should come back.

Your approach to leave it as is probably pretty smart. I may have too much time on my hands.

MauryJ

Thanks for the merge idea. It's weird, but the prior week it shows me already having the HONAV shares with a $245 value plus the HON shares at the old 2X quantities.

I have no cash transaction, or reverse split shares. It's like my HON shares were divided in half and rounded down, with no cash for the fractional split.

Do you think I should I merge the HONAV shares into HONA? I assume future HONA transactions will be done under HONA and then I'll have 2 sets of transactions and holdings anyway

MauryJ

This is pretty fascinating as I have a similar but not identical list of transactions on Merrill using Q-Mac:
I also have a placeholder, also around what I suspect is the creation date of the account, for 126 shares, and it is feint gray instead of black - almost as if it were grayed out, but it's active.
Description for the placeholder says: "+126 shares (to reach 126 on 6/27/26) " Hovering a mouse over the description pops up a text (similar to a bubble note added in Numbers or Excel) that says: "This is a special transaction that will automatically adjust its shares to maintain a share balance of 126 on 06/27/26 if any transactions are added, deleted, or modified."

Then I have 2 HONAV $0 "Dividend Income" transactions for the 29th & 30th
A sale of all my HON shares resulting in a zero share balance on the 30th
Another HONAV $0 "Dividend Income" transaction on the 30th (that's 3 so far on the 30th)
A HON Buy for 126 shares but with $0
A HONA cash for the fractional share ON 7/1 (I don't remember what the original description was but I changed the "Type" field to return of capital)

All the HONA shares are listed as HONAV until the fractional share sale, which is the first time I've seen it referred to as HONA.

I have no return of fractional shares for HON yet. Maybe the rolled up the entire fractional share on HONA? The original HON shares were not divisible by 2.

My portfolio view still refers to the HONA shares as HONAV, so I may have to rename it

The Security Detail window only shows transactions since 6/30, so the CUSIP has obviously changed in the database. There's no reference to dividend repurchases or even the original buy unless I roll back the Portfolio View to before this happened,

At first I got all fastidious about how to edit this, but now I'm thinking all the quantities are correct, why mess with it? There's no tax impact because it's a retirement account, but the performance since initial purchase is essentially lost