tag:infinitekind.tenderapp.com,2009-01-14:/discussions/general-questions/553-investment-spin-offInfinite Kind: Discussion 2018-10-18T13:54:14Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-11T17:31:28Z2009-09-11T17:31:28ZInvestment - Spin-off<div><p>Chuck,</p>
<p>How did the spin off work? What was the formula? I looked online
but didn't readily find the answer. Did your Tyco shares convert to
the spun off companies shares or did you receive shares from the
spun off companies in addition to your Tyco shares or did some
percentage of your Tyco shares convert into the spun off companies
shares? I should be able to advise you how to best record it after
knowing that.</p>
<p>Best,</p>
<p>Brian Adler</p>
<p>Moneydance Support</p></div>Brian Adlertag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-12T13:34:24Z2009-09-12T13:34:24ZInvestment - Spin-off<div><p>Brian,</p>
<p>Here's an article that describes a specific spin-off at
Tyco:</p>
<p><a href=
"http://www.devicespace.com/news_story.aspx?NewsEntityId=59370">http://www.devicespace.com/news_story.aspx?NewsEntityId=59370</a></p>
<p>They can vary greatly. Here's another spin off scenario at
Viacom/CBS:</p>
<p><a href=
"https://schwabpt.com/downloads/docs/resources/actions/library/VIAB_CBS_03Jan">
https://schwabpt.com/downloads/docs/resources/actions/library/VIAB_...</a><br>
06v3.pdf</p>
<p>Does that help?</p>
<p>Chuck</p>
<p>Chuck Linn<br>
972.679.4298<br>
<a href="mailto:chuck@linn.net">chuck@linn.net</a></p></div>Chuck Linntag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-17T08:09:27Z2009-09-17T08:09:27ZInvestment - Spin-off<div><p>Chuck,</p>
<p>This article seems to suggest that in lieu of shares received in
the spun off companies, you will (or have) receive(d) a cash
dividend. Is that your understanding? If that is the case, you can
simply make a dividend transaction from your investment account's
register.</p>
<p>Brian</p></div>Brian Adlertag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-17T10:48:29Z2009-09-17T10:48:29ZInvestment - Spin-off<div><p>Brian,</p>
<p>The cash would be provided in lieu of fractional shares. Full
shares (whole<br>
numbers) were still distributed on this spin-off.</p>
<p>Chuck</p>
<p>Chuck Linn<br>
972.679.4298<br>
<a href="mailto:chuck@linn.net">chuck@linn.net</a></p></div>Chuck Linntag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-17T11:00:14Z2009-09-17T11:00:14ZInvestment - Spin-off<div><p>The original transaction was a BUY of 500 shares of Viacom, Inc.
Class B (Old) on 11/08/2005.<br>
January 4, 2006 - Viacom, Inc. split the shares into 2
companies:<br>
- 250 shares of CBS Corporation Class B - 250 shares of Viacom,
Inc. Class B (New)</p>
<p>Chuck</p></div>Chucktag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-17T11:11:21Z2009-09-17T11:11:21ZInvestment - Spin-off<div><p>Another Example would be Tyco, International:</p>
<p>Bought 850 shares of Tyco International, Limited (TYC) on
2/2/2006.<br>
7/6/2007 - distribution/spin-off:<br>
- 212 shares of Covidien Limited (COV) - 0.5 share of Covidien paid
in cash - 212 shares of Tyco Electronics, Limited (TEL) - 0.5 share
of Tyco Electonrics paid in cash</p>
<p>Each Tyco International shareholder will receive one common
share of Covidien Ltd. and one common share of Tyco Electronics for
every four common shares of Tyco International held at the close of
business on the record date.<br>
Fractional common shares of Covidien or Tyco Electronics or
Covidien will not be distributed and any Tyco International
shareholder entitled to receive a fractional share will instead
receive a cash payment.<br>
Immediately following the distributions, Tyco International's
shareholders will own 100% of the common shares of Covidien and
Tyco Electronics.</p></div>Chucktag:infinitekind.tenderapp.com,2009-01-14:Comment/3596992009-09-18T21:25:34Z2009-09-18T21:25:34ZInvestment - Spin-off<div><p>Chuck,</p>
<p>In the case of Tyco, I believe the best way to record this (and
I should concede that Moneydance isn't yet designed to fully
support corporate spin offs) is to issue a dividend and then use
the cash from the dividend to purchase the shares of Covidien.</p>
<p>In the case of Viacom, you should enter a sale of the 500 shares
(you should adjust the sale price to make it the same as your cost
basis for your original purchase) and then a purchase of the 250
shares of Viacom and CBS. You should also make sure the purchase
for the new shares equals the value of the previous sale so that
everything zeros out. The main thing is to insure you don't record
a profit/loss through the process of selling the Viacom and
acquiring the new shares.</p>
<p>I apologize that Moneydance isn't yet natively designed to
handle this. Please let me know if you find a problem with this
workaround recording these transactions.</p>
<p>SIncerely,</p>
<p>Brian Adler</p>
<p>Moneydance Support</p></div>Brian Adler