Jacobs Solutions spun off several business units and then merged these units with Amentum Holdings effective the end of business on September 27, 2024 in a transaction meant to be tax-free to J shareholders. Amentum Holdings began normal trading on September 30, 2024. J shareholders received 1 share of AMTM for each share of J owned.

This action is a simple spinoff transaction in the accounting software. It is structured to be a non-taxable event for J shareholders according to the shareholder prospectus. The cost basis allocation information is calculated from the closing prices of AMTM and J on the spinoff completion date, September 27, 2024. This method to determine fair market value of the post spinoff companies is commonly used. A link to IRS Form 8937 was not available at the time these instructions were written.

NOTE:  

The cost basis allocation is dependent on the prices used for both Amentum Holdings and Jacobs Solutions in the cost basis allocation calculations. In our experience brokers tend to use the prices found in the guidance companies post on their websites including IRS form 8937. If available, our instructions will use the guidance in form 8937. If your broker does not use that guidance, or form 8937 is not publicly available, the cost basis of the companies involved as recorded in your accounting records and in your broker’s records may 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.

The Spinoff Entry

Go to Accounting > Securities > Record spinoff of securities in myICLUB.com. If you are unfamiliar with spinoff transactions you can get help at this URL: https://www.myiclub.com/faq/article.aspx?id=54

Here is the information you need to complete the spinoff.

• Date: 9/27/2024
• Select Parent Security (or Parent Company) : Jacobs Solutions (J)
• Remaining Basis Percentage: 85.833
• Cash received: See your broker statement for cash-in-lieu received
• Spinoff Security (or Symbol of New Company) : Amentum Holdings (AMTM)
• Shares received : 1.0 x (# of J shares owned) (Include fractional shares, if any.)
  • For example, if you owned 100 J shares, you should receive 1.0 x 100 = 100 AMTM shares.
• Price Per Share : 25.67  (Closing AMTM price on 9/27/2024)                        

Save the transaction and the spinoff has been entered.