Bingo. If you sign for the jet whether you are in the seat or not, you are a required pilot and it is part 1 PIC time. This has been discussed many times and is cut and dry. That is what airlines are looking for when they are asking for PIC time, not time in the seat. Otherwise, you are saying during that "bunk time" there is no PIC since the two pilots flying didn't sign for it.
The logbook conversion should be easy. All time that you signed for the jet or instructed is PIC. All flight time in the seat when you didn't sign or instruct is SIC. "Other" or "special crew" time only counts if you are the aircraft commander. Do not count it if you aren't.
It just comes down to the fact that the military logs time different than the airlines. I don't do block times or conversion factors since each airline adds their own factor for that. I just count the number of legs in the flight and put it in a separate column so that I can fill that out on the application. Ie, the UAL and Delta apps ask the number of flights as PIC. If you did a out/in or full stop taxi back to pick up pax somewhere, it is two legs and you will get credit for each one. Some of my flights are 3 or more legs. I put the number of legs and ICAOs in my remarks column.