Delphi Automotive changed its name to Aptiv plc. Aptiv then immediately spun off Delphi Technologies, effective December 5, 2017 in a transaction meant to be tax-free to its shareholders. Both companies began post transaction trading on December 5, 2017. When these instructions were written no form 8937 was available to give guidance on cost allocation for the spinoff. These instructions use the opening prices of both APTV and DLPH on 12/5/17 to calculate the cost basis allocation for the spinoff

This transaction is a name change of Delphi Automotive to Aptiv. This is then followed by a simple spinoff transaction in the accounting software.  The information below is based on the information available from the Aptiv and Delphi Technologies web sites.

The Name Change Entry : Click the Securities link in the left-hand column. Click the Security Settings (left-hand column) link or the Update Security Settings link (center of page) next. Click the pencil icon next to the Delphi Automotive listing in the next window. Change the name to Aptiv and the ticker symbol to APTV in the security window that appears. Make sure to also check that the Quote Symbol box near the bottom of the page shows the updated APTV ticker symbol, and then click Submit to save the changes.

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.

• Date: 12/5/2017
• Select Parent Security (or Parent Company) : Aptiv, plc (APTV)
• Remaining Basis Percentage: 82.83
• Cash received:  See your broker statement for cash-in-lieu received
• Spinoff  Security (or Symbol of New Company) : Delphi Technologies (DLPH)
• Shares received : 0.333333 x (# of APTV  shares owned)   (Remember to include fractional shares.) For example, if you owned 100 APTV shares, you should receive 0.33333 x 100 = 33.3333 DLPH shares.
• Price Per Share : 55.28  (Opening price on 12/5/2017)

Save the transaction and the spinoff has been entered.   NOTE: The number of APTV shares owned should be the same as the number of Delphi Automotive shares owned before the name change and spinoff. The cost basis allocation is dependent on the prices used for both Aptiv and Delphi Technologies in the cost basis calculations. In our experience brokers tend to use the prices found in the guidance companies post on their websites including IRS form 8937. If this information is available it will be used in the instructions. Your broker may not use that guidance or it is not yet available when these instructions were written. This means the cost basis of the companies involved as recorded in your accounting records and in your broker’s records will not match. This is not cause for concern. This is just due to the inexact nature of the tax code in this regard. Partnership tax returns have specific areas to reconcile these usually small differences. ICLUBcentral tax printer software automatically fills in these adjustments in the normal operation of the software using the data imported from your accounting records and that you enter from your 1099.