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  "documentTitle": "AerCap Holdings (AER)",
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  "authorName": "David Einhorn",
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  "presentationDate": "2015-04-07 00:00:00",
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  "notes": "The slide uses a line chart to demonstrate that while R&D expenses as a percentage of sales declined, CapEx and Capitalized software increased, suggesting accounting manipulation to protect margins.",
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      "text": "And had it not capitalized all these expenses, margins would have fallen even further.",
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      "text": "Where did athena invest? It invested in CapEx, which went from 6% of sales to 10%. It also grew total R&D substantially. But, it capitalized the increasing part, with capitalized software going from 4.9% to 7.2%. Margins fell, only it wasn't due to higher investment for growth, as the growth investing was mostly capitalized rather than expensed. And had it not capitalized all these expenses, margins would have fallen even further.",
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      "text": "athena tells investors to ignore current profits because it needs to invest to maximize its growth opportunity. In 2014, R&D expenses were expected to grow and pressure operating margins, but this didn't happen. R&D expenses on the income statement actually declined as a percentage of sales last year.",
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      "text": "Source: athenahealth’s filings on Form 10-K and 10-Q; and Greenlight calculations derived from athenahealth’s filings.",
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