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  "documentTitle": "Nidec Corp. (6594 JP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2016-12-13 00:00:00",
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  "notes": "The text highlights specific concerns regarding segment reporting, bundling of business units, and the use of 'All Others' to mask performance.",
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      "text": "The lack of clarity about which entities contribute what revenue and operating profits to each product group gives rise to our suspicions that Nidec manipulates its product group disclosures.",
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      "text": "The U.S. securities regulations - as imperfect as they are - in our opinion, mandate more disclosure than those of any other market. Nidec has established itself as a core Japanese holding for international investors, and we suspect management feels that continuing to be subject to the increased transparency requirements of the U.S. would make it easier for investors to see Nidec's problems and inconsistencies.",
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      "kind": "paragraph",
      "text": "so it does not make sense for the company to continue to file. We do not think Nidec is being completely honest about its reasons. We see the de-listing decision as Nidec quitting while it is ahead.",
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      "text": "Even in its U.S. filings, Nidec's reporting strikes us as unnecessarily confusing. Some of the most critical elements for Nidec investors to know are the performance of the HDD and Automotive product groups. We believe investors would benefit if Nidec's filings separately reported HDD, Other Small Precision Motors, Automotive, Appliances, Commercial and Industrial, Machinery, Electronic and Optical, and Other.",
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      "text": "Nidec should make clear which entities (or portions of entities) report into which product group. The lack of clarity about which entities contribute what revenue and operating profits to each product group gives rise to our suspicions that Nidec manipulates its product group disclosures.",
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      "text": "Nidec seems to use its All Others reporting segment in ways that could mislead investors. For example, after Nidec acquired Elesys, Elesys sat inside All Others for two quarters before being transferred to Nidec Motors & Actuators. (It appears that when it was transferred out of All Others to Motors & Actuators, it was grouped with approximately JPY 20 billion in annual revenue from another business.)",
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