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  "documentTitle": "iRobot Corp (IRBT)",
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  "authorName": "Spruce Point Management",
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  "notes": "Uses red boxes and arrows to highlight specific accounting inconsistencies in SEC filings.",
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      "kind": "callout",
      "text": "In our opinion, IRBT has made unusual supplemental disclosures in its Cash Flow Statement. IRBT has reclassified \"inventory\" to \"property, plant and equipment.\"",
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      "text": "A possible motivation for these inventory transfers would be to overstate gross margins by moving high cost inventory to PP&E, or eliminate the need to write-down obsolete/slow-moving inventory in the current period, and instead depreciate the expense over a 3-5 year period.",
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      "text": "inventory transfer",
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      "text": "Source: 1. 2013 10K... 2. 2012 10K... 3. 2011 10K... 3. Q3'11 10Q...",
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      "text": "2013 10K Annual Report table showing transfers of inventory to property and equipment as 223 for 2013 and - for 2012/2011.",
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      "text": "Q3 2011 10Q Financial Filing table showing transfers of $847 and $1,945 for 2011 and 2010.",
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      "text": "Fuzzy Accounting: Reclassifying Inventory to PP&E",
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