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  "documentTitle": "Verint Systems, Inc. (VRNT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-05-23 00:00:00",
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  "pageNumber": 84,
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  "notes": "The slide uses a bar chart to visually demonstrate the divergence between reported restructuring charges and actual severance payments over four fiscal years.",
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      "text": "Verint's restructuring charge add-back appears particularly suspicious to us. We note that management has never announced a formal restructuring program; rather, it defines “restructuring costs” as “employee termination costs, facility exit costs, certain professional fees, asset impairment charges, and other costs directly associated with resource realignments incurred in reaction to changing strategies or business conditions.”",
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      "kind": "chart",
      "text": "Oddly Inconsistent Relationship Between Restructuring and Severance Payments",
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      "text": "Restructuring Charges vs Severance Payments",
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      "text": "Verint's restructuring charge add-back appears particularly suspicious to us. We note that management has never announced a formal restructuring program; rather, it defines “restructuring costs” as “employee termination costs, facility exit costs, certain professional fees, asset impairment charges, and other costs directly associated with resource realignments incurred in reaction to changing strategies or business conditions.” If Verint's “restructuring” charge represents a recurring cost needed to adjust to “changing...business conditions,” why should it be added back as though it were a one-time charge? Is management trying to pass off a recurring expense as a one-time charge by naming it as such? Why is this item disclosed only in Verint's press releases and investor presentations, and not in its SEC filings?\n\nAnd why is the gap between restructuring charges and severance payments (disclosed in SEC filings) so large and inconsistent? Why did it suddenly decline just as severance costs jumped (and surpassed it)? Where is the restructuring charge coming from?",
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      "text": "Sources: VRNT SEC Filings, Earnings Press Releases",
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      "text": "Where Is The Restructuring?",
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