{
  "docId": "019dd923-622c-750b-8b98-9727cc72301c",
  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 99,
  "pageCount": 128,
  "prevPage": 98,
  "nextPage": 100,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "Includes a direct excerpt from the FY 2018 20-F filing with red-box highlights on the accounting method.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "screenshot"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-9727cc72301c/99",
  "deckHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c#slide-99",
  "components": [
    {
      "bbox": {
        "h": 0.04,
        "w": 0.22,
        "x": 0.39,
        "y": 0.43
      },
      "kind": "callout",
      "text": "FY 2018 20-F",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1cb9e0b7-588d-4555-8fba-38cf41e80dac",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We would expect to see startups issuing front-loaded options to attract strong talent and expensing costs quickly – not a more mature company with established products and customers.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1e-7015-9027-84d48bfb48c4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.94,
        "x": 0.03,
        "y": 0.48
      },
      "kind": "image",
      "text": "Excerpt from 20-F filing",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7e03758c-81a9-494b-ba3c-c5113154c098",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.85
      },
      "kind": "paragraph",
      "text": "We would expect to see startups issuing front-loaded options to attract strong talent and expensing costs quickly – not a more mature company with established products and customers. We suspect that Amdocs executives may be eager to monetize their options once granted, and that they may be making it easy for themselves to do so.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6bb63a90-7a49-4f94-b544-762c1ea52d6a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.94,
        "x": 0.03,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Further, Amdocs uses an uncommon and non-transparent attribution method to account for options. The Company claims that it amortizes options over a weighted average period of one year using the “graded vesting attribution method,” which generally gives management greater discretion in how it amortizes stock options. Our research shows that only three S&P 500 companies claim to use this method to account for stock options, and that none amortize associated costs over just one year. Management claims that the awards vest over “a period of three to four years,” and that stock options have ten-year terms. We believe that the manner in which Amdocs amortizes these costs should match the economic substance of the awards.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ff68529c-7a80-41a1-89b2-aca1ca1e830f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.68,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Management Uses Uncommon Attribution Method For Options, Potentially Enabling Quicker Divestment",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "882bb7c8-3c12-47d2-ac51-943161cf2cfe",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "33f8a18b-612e-4240-a63d-1b8b0be58785",
      "evidence": "Exposing non-standard accounting practices to suggest management self-dealing.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}