{
  "docId": "019dd923-622c-750b-8b98-ad29603ddb10",
  "docSlug": "954987ce0454",
  "documentTitle": "Mettler-Toledo International, Inc. (MTD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-07-24 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 44,
  "pageCount": 136,
  "prevPage": 43,
  "nextPage": 45,
  "slideType": "valuation_table",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 342,
  "notes": "The slide uses a red box to highlight the difference between the company's reported FCF and the analyst's adjusted FCF.",
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      "kind": "callout",
      "text": "Mettler has excessive amounts of add-backs to free cash flow. In our view, cumulative FCF has been inflated by $347m with 80% of it coming after CEO Filliol took control in 2008.",
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      "text": "Free Cash Flow: $347m",
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      "kind": "paragraph",
      "text": "1. MTD historically added back this deduction from operating cash flow back, despite it having zero total effect on overall cash. An equal and opposite add-back flows through the financing section of its cash flow\n2. MTD's cash restructuring charges have been occurring annually for more than 17 years and cannot simply be ignored\n3. These are generally viewed as non-standard add-backs\n4. In 2017, MTD adopted ASU 2016-09 pertaining to excess tax benefits associated with stock option exercises. This allowed it to make deductions that lowered its tax rate by 2% according to MTD's estimate.",
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      "kind": "table",
      "text": "Mettler Adj Free Cash Flow table",
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      "kind": "table",
      "text": "Spruce Point Adj Free Cash Flow table",
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      "kind": "title",
      "text": "Normalized Free Cash Flow",
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      "arcName": "Overcoming the Monster",
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      "beatName": "Evidence",
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      "evidence": "The deck presents detailed evidence and analysis of Mettler-Toledo's financial results and accounting practices.",
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