International Paper spinoff of Veritiv

International Paper spun off  Xpedx Intermediate, which immediately merged with Unisource. The merged company changed its name to Veritiv. International Paper is the parent company. Due to the structure of the spinoff and merger, the accounting entry can be simplified to a spinoff of Veritiv.

The cost basis allocation information is from IRS form 8937 and can be found on the  International Paper web site at:

https://www.internationalpaper.com/US/EN/Company/Investors/SpinOffVeritiv.html

This action can be entered as 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 International Paper web site. Some numbers are rounded.

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: 7/1/2014

Select Parent Security (or Parent Company) : International Paper (IP)

Remaining Basis Percentage: 98.5849

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

Spinoff  Security (or Symbol of New Company) : Veritiv (VRTV)

 Shares received : .01912 x (#of IP  shares owned)   (Remember to include fractional shares.)

For example, if you owned 100 IP shares, you should receive .01912 x 100 = 1.912 VRTV shares.

Price Per Share : 37.60 (Closing price on 7/1/2014)  

Save the transaction and the spinoff has been entered.