Wyndham Worldwide spun off Wyndham Hotels effective June 1, 2018 in a transaction meant to be tax-free to its shareholders. Wyndham Hotels began normal trading on the NYSE on June 1, 2018. Wyndham Worldwide (WYN) then changed its name to Wyndham Destinations (WYND). The cost basis allocation information is from IRS form 8937. A link to this form can be found on the new Wyndham Destinations web site at https://investor.wyndhamdestinations.com/phoenix.zhtml?c=200690&p=irol-separation

This action is a simple spinoff transaction in the accounting software.  The information below is based on the information available from the cost basis allocation information on the Wyndham Worldwide 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.

• Date: 6/1/2018
• Select Parent Security (or Parent Company) : Wyndham Worldwide (WYN)
• Remaining Basis Percentage: 44.24
• Cash received:  See your broker statement for cash-in-lieu received
• Spinoff  Security (or Symbol of New Company) : Wyndham Hotels Corp  (WH)
• Shares received : 1.0  x (# of WYN  shares owned)   (Remember to include fractional shares.)
  • For example, if you owned 100 WYN shares, you should receive 1.0 x 100 = 100 WH shares.
• Price Per Share : 61.40  (Closing price on 6/1/2018)                                                                       

Save the transaction and the spinoff has been entered.

Changing Wyndham Worldwide to Wyndham Destinations, and updating the ticker symbol.

In Club Accounting Online (myiclub.com)

• When signed in to myiclub.com, click the ACCOUNTING tab near the top of the page.
• Click the SECURITIES heading on the left hand side of the page.
• Click either SECURITY SETTINGS on the left hand side of the page, or UPDATE SECURITY SETTINGS near the top of the page.
• On the security Settings page, click the Pencil/EDIT link next to Wyndham Worldwide.
• On the following page, change the name to Wyndham Destinations, and the ticker to WYND.
• Note that there is a box titled Symbol, and a box titled Quote Symbol near the bottom of the page. If the Quote Symbol box is not already filled in, enter the WYND ticker there as well.
• Click the SUBMIT button near the bottom right-hand corner of the page to save any changes.

In Club Accounting 3:

• Click the SECURITIES heading on the left hand side of the page
• Find Wyndham Worldwide in the list, and double-click it.
• Change the name to Wyndham Destinations, and the ticker to WYND, then click OK

NOTE:

The cost basis allocation is dependent on the prices used for both Wyndham Worldwide and Wyndham Hotels 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 your broker does not use that guidance, 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.