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  "docSlug": "15874954effa",
  "documentTitle": "XPO Logistics, Inc. (XPO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-12-13 00:00:00",
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  "pageNumber": 33,
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  "notes": "The slide uses a direct quote from the company's 10-Q to expose a change in accounting presentation.",
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      "kind": "callout",
      "text": "Foreign Currency Option and Forward Contracts",
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      "kind": "callout",
      "text": "If management can't seem to get its GAAP treatment of currency hedging correctly, do you really trust its ability to accurately present Non-GAAP foreign currency results on revenues?",
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      "kind": "paragraph",
      "text": "If management can't seem to get its GAAP treatment of currency hedging correctly, do you really trust its ability to accurately present Non-GAAP foreign currency results on revenues? In Q3'18, XPO reclassified foreign currency cash flow from hedge from operations to investing, which now shows historical overstatement of results.",
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      "kind": "quote",
      "text": "In the third quarter of 2018, the Company changed its policy related to the cash flow presentation of foreign currency option contracts... we believe it is preferable to reflect these cash flows as Investing activities. Previously, these cash flows were reflected within Operating activities. Net cash used by investing activities for the nine months ended September 30, 2018 includes a reclassification of $13 million...",
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      "text": "In the third quarter of 2018, the Company changed its policy related to the cash flow presentation of foreign currency option contracts as the Company believes cash receipts and payments related to economic hedges should be classified based on the nature and purpose for which those derivatives were acquired and, given that the company did not elect to apply hedge accounting to these derivatives, we believe it is preferable to reflect these cash flows as Investing activities. Previously, these cash flows were reflected within Operating activities. Net cash used by investing activities for the nine months ended September 30, 2018 includes a reclassification of $13 million of cash usage that had been reflected within Operating activities for the six months ended June 30, 2018. Prior years' impact were not material. With this change in presentation, all cash flows related to the foreign currency contracts are included in Investing activities on the Condensed Consolidated Statements of Cash Flows. — XPO Q3 10-Q",
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      "text": "Source: XPO Q3 10-Q, p. 15",
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      "kind": "title",
      "text": "Questionable Organic Revenue Growth And FX Impacts (Cont'd)",
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