{
  "docId": "019dd923-622c-750b-8b98-5300aefcfd91",
  "docSlug": "ed69677379db",
  "documentTitle": "iRobot Corp (IRBT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2014-05-20 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 53,
  "pageCount": 64,
  "prevPage": 52,
  "nextPage": 54,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "The slide uses a red flag icon to signal caution regarding accounting practices.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-5300aefcfd91/53",
  "deckHref": "/decks/019dd923-622c-750b-8b98-5300aefcfd91",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-5300aefcfd91.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-5300aefcfd91#slide-53",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.25
      },
      "kind": "callout",
      "text": "In our opinion, investors should be cautious of companies that have accounting reclassifications and frequent errors. In light of our previous concerns about potential problems with its financials, we observe that IRBT noted two discrete errors in 2013. While each individual error is listed as immaterial, we wonder if in aggregate, all of the issues we’ve presented are material to the integrity of the financial statements.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d56d60d4-2900-4fdd-bc8f-3e311f0660f1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "While each individual error is listed as immaterial, we wonder if in aggregate, all of the issues we’ve presented are material to the integrity of the financial statements.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-5377-73e2-a967-460308aac011",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.4,
        "w": 0.45,
        "x": 0.52,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "Revision of Balance Sheet as of December 29, 2012: During the three month period ended March 30, 2013, the Company identified a classification error related to its reserves for uncertain tax positions on its December 29, 2012 consolidated balance sheet. The impact of the errors on the December 29, 2012 consolidated balance sheet was a decrease in Other Current Assets of $2.7 million, an increase in Other Assets of $0.2 million, a decrease in Accrued Expenses of $2.9 million, and an increase in Long-term Liabilities of $0.4 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0a2fbbda-cfa7-4f81-b0b5-03046d81d335",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.3,
        "w": 0.45,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "Out of Period Adjustment: During the third quarter of 2013, the Company identified an immaterial error to previously reported depreciation expense due to the use of an incorrect useful life on a leasehold improvement asset. The recorded out of period adjustment to cost of revenue and operating expenses resulted in a $0.6 million increase in third quarter 2013 net income.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4e715868-c06e-4b52-9301-f74ad2a43b2a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.5,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: http://www.sec.gov/Archives/edgar/data/1159167/000115916713000022/irbt-2013928x10q.htm",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9ce24ff7-00dd-4684-8644-8b7014ccb1e8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.7,
        "x": 0.15,
        "y": 0.08
      },
      "kind": "title",
      "text": "Insult to Injury: Errors, Errors, Errors",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a271d823-c601-4faa-b611-339b2e50526e",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "43ceb133-d5f1-4cbc-bda7-2c078b998334",
      "evidence": "The slide explicitly questions the integrity of financial statements based on aggregate immaterial errors.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 64,
      "from": 4,
      "beatId": "9276d3d0-eba4-4814-902b-c80843925dd7",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document presents a series of contradictions and concerns about iRobot Corp's financials, market position, and growth prospects.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}