UTX merger / spinoff

PaulV's Avatar

PaulV

20 Apr, 2020 10:04 PM

I am not sure how to handle the recent United Technologies (UTX) spinoff of two of its divisions Carrier (CARR) and Otis Elevator (OTIS) , along with UTX's merger with Raytheon (RTN), forming Raytheon Technologies (RTX), all on the same day. What I know is that CARR was spunoff at a distribution ratio of 1 and OTIS was spunoff with distribution ratio of 0.5. Also, the cost basis for each share of UTX was distributed as 55.17% for RTX, 18.69% for CARR, and 26.14% for OTIS.

I have owned UTX since 1996, and I reinvested all of the dividends--so, quite a few transactions, and I'm not sure what's the best way to record these changes. I hold these stocks in a Wells Fargo account. What Wells Fargo did was basically to split the UTX into RTX, CARR, and OTIS in 1996 and calculate a new cost basis for each quarterly transaction for each stock as dividends were issued. I mean, I could reproduce all of those transactions in Moneydance, but that's a lot of work--300 transactions, and it also obscures the fact that the spinoffs and merger actually occurred when they did. Is there a better way? Wells Fargo also calculated the overall cost basis for my investments in each of those stocks (RTX @$21.10, CARR @$7.15, and OTS @$19.99).

Thank you for any assistance.

Paul

  1. 1 Posted by okichatan on 01 Jun, 2020 08:31 AM

    okichatan's Avatar

    I'm am also trying to figure out this UTX spinoff also using these links:
    https://infinitekind.tenderapp.com/kb/investment-accounts/stock-spinoff
    https://community.quicken.com/discussion/7875091/my-approach-to-utx-otis-carr-rtn-rtx/p1?new=1

    Head hurts every time I try to tackle it.

  2. System closed this discussion on 31 Aug, 2020 08:40 AM.

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