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SPINOFF: Fortune Brands and Fortune Brands Home and Security

Issue:

How do I enter the spinoff of Fortune Brands Home and Security (FBHS) from Fortune Brands and the name change of Fortune Brands to Beam?

Cause:

Fortune Brands spun off a new company, Fortune Brands Home and Security, and then changed its name to Beam.
The cost basis allocation information can be found through the Beam web site at:
http://files.shareholder.com/downloads/AMDA-DRIR9/1522001482x0x505610/e56a12b7-0fe3-42dc-a7ab-1d42137a8269/FO_Spin_--_6045B_Tax_Basis_Information.pdf

Resolution:

This action needs just one transaction entry in the accounting software. In addition, an update to the Fortune Brands security profile is needed. The information below is based on the information available from Beam.

The Spinoff Entry
Go to Transactions > Spinoff -OR- Accounting > Securities > Record spinoff of securities depending on the version of the software being used.
If you are unfamiliar with spinoff transactions you can get help at this url:
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff
Here is the information you need to complete the spinoff.

Date: 10/4/2011
Select Parent Security (or Parent Company) : Fortune Brands (FO)
Remaining Basis Percentage : 78.25
Cash received : See your broker statement for cash-in-lieu received
Spinoff Security (or Symbol of New Company) : Fortune Brands Home and Security (FBHS)
Shares received : 1 x (#of FO shares owned) (Remember to include fractional shares.)
For example, if you owned 100 FO shares, you should receive 1 x 100 = 100 FBHS shares.
Price Per Share : 12.15
Save the transaction and the spinoff has been entered.

The Name Change
For Club Accounting 3 do the following:
Click Securities. Double click on Fortune Brands.
Change Security Name to Beam.
Change Ticker Symbol to BEAM.
Click OK button.

For Online Club Accounting do the following:
Click Securities. Click the Update Security Settings link.
Click Edit next to Fortune Brands.
Change Company Name to Beam.
Change Symbol to BEAM
Click Submit button.



 
  
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