{
  "docId": "019dd923-622c-750b-8b96-76efb5813bae",
  "docSlug": "8ff52fe302da",
  "documentTitle": "St. Jude Medical (STJ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-08-25 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 30,
  "pageCount": 34,
  "prevPage": 29,
  "nextPage": 31,
  "slideType": "valuation_table",
  "function": "analyze_data",
  "density": "balanced",
  "nDataPoints": 360,
  "notes": "Includes four sensitivity tables and a paragraph detailing a bank loan covenant breach calculation.",
  "elementsJson": [
    "paragraph",
    "valuation_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-76efb5813bae/30",
  "deckHref": "/decks/019dd923-622c-750b-8b96-76efb5813bae",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-76efb5813bae.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-76efb5813bae#slide-30",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Under the network shutdown scenario, the company would breach their 4.0x bank loan covenant in 3Q16.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8551-9082ad02ca4f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Consolidated Leverage Ratio: 4.45x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8551-97bb4bea9d5e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.72,
        "x": 0.14,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "The remaining assumptions remained the same as the prior scenario. Sensitivity to St. Jude Medical's current stock price is in the lower table.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7e658de3-25f9-482d-854d-ed2069fe30bb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.78,
        "x": 0.11,
        "y": 0.54
      },
      "kind": "paragraph",
      "text": "Covenant Breach in 3Q16 Highly Likely: Under the network shutdown scenario, the company would breach their 4.0x bank loan covenant in 3Q16. We used Schedule 2 Section 7.13 in the Term Loan Agreement to calculate the company's Consolidated Leverage Ratio...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ba34614a-50c8-4696-966e-17786dc6af42",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.82,
        "x": 0.16,
        "y": 0.16
      },
      "kind": "table",
      "text": "Sensitivity tables for Enterprise Value, EV/EBITDA 16E, STJ Share Price, and STJ Share Price Change based on WACC and Exit Perpetual Growth.",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a4fc254d-3b7d-45f3-8350-a49f59f1cdb8",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [
    {
      "to": 30,
      "from": 25,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "ab9a2b66-8b1d-4abd-96ba-1ffd9bf1975e",
      "evidence": "The document presents a scenario table analyzing Boston Scientific's revenue drop after recalls",
      "position": 0,
      "objective": "What are the financial implications of inaction on device recalls?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}