Lockheed-Martin offered to exchange shares of  their stock for shares of Leidos. Those participating in the exchange would have their total shares of Lockheed-Martin reduced. Information about the exchange offer was found in teh Investor Relations area of the Lockheed-Martin website.

This transaction may require multiple entries. First is a spinoff of Leidos from Lockheed-Martin.  Next is a reverse split of Lockheed-Martin to reduce the share number. The information below is based on the information available from the Lockheed-Martin web site.

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: https://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here is the information you need to complete the spinoff.

Lockheed-Martin announced the completion on August 16,2016 but the final proration value was not set until August 22. Check your broker for the date you received the Leidos shares and use that date.

Remaining Basis Percentage will vary for each shareholder. It can be calculated by taking the ratio of shares held after the exchange to the shares held before, that is (#LMT shares after exchange)/ (#LMT shares before exchange). Use the percentage and not the decimal equivalent.

If you were able to exchange all of your LMT shares you can enter this as a merger of LMT into Leidos.

Date: 8/16/2016 (or date you received Leidos shares)

Select Parent Security (or Parent Company) : Lockheed-Martin (LMT)

Remaining Basis Percentage: (#LMT shares after exchange)/ (#LMT shares before exchange) for example if you had 200 shares and exchanged 100 your entry would be 100/200 = 50% so you would enter 50 in this field.

Cash received:  See your broker statement for cash-in-lieu received

Spinoff  Security (or Symbol of New Company) : Leidos (LDOS)

 Shares received : 8.2136 x (# of LMT  shares exchanged)   (Remember to include fractional shares.)

For example, if you exchanged 100 LMT shares, you should receive 8.2136 x 100 = 821.36  LDOS shares.

Price Per Share : 50.51  (Weighted average as reported on LMT web site)  

Save the transaction and the spinoff has been entered.

The (Reverse) Split Entry

Use the Stock Split entry screen.

Date: 8/16/2016 (or date you received Leidos shares)

Security: Lockheed-Martin (LMT)

Split Ratio : (#LMT shares after exchange) for (#LMT shares before exchange) (#LMT shares after exchange)

For example if you had 200 shares and exchanged 80, you started with 200 shares and ended with 120 shares so your entry would be 120 for 200.

Cash received:  See your broker statement.

Save the transaction and the full split-off has been entered.