{
  "docId": "019dd923-622c-750b-8b98-d4565c313b68",
  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 92,
  "pageCount": 108,
  "prevPage": 91,
  "nextPage": 93,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 2,
  "notes": "Uses red underlining in the source text to highlight the specific accounting changes.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "screenshot"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-d4565c313b68/92",
  "deckHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68#slide-92",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.76,
        "x": 0.12,
        "y": 0.73
      },
      "kind": "callout",
      "text": "We view the two changes made in 2016 and the emergence of management's aggressive accounting practices to increase CTC's reported earnings",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b6f00fa3-69f3-48ff-b956-d4cba68ce1d1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We view the two changes made in 2016 and the emergence of management’s aggressive accounting practices to increase CTC’s reported earnings",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-64d2-7657-bbdf-a5120f65df01",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "In 2016, management made 2 changes to its accounting assumptions related to the financial services segment. First, CTC lengthened the estimated period for amortization of deferred loan acquisition costs which helped boost near term profitability in the financial services segment. Second, CTC made a favorable change to its estimate for future recoveries from insolvency proposals.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "10cc91c6-3f6b-4a94-a251-0018a9b4c2c3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.84,
        "x": 0.08,
        "y": 0.38
      },
      "kind": "table",
      "text": "2016 Annual Report (page 31)\nRevenue: Revenue of $270.2 million increased $5.7 million, or 2.2 percent, primarily driven by higher credit card charges... and the positive impact related to a change in Management's estimate of the amortization period for loan acquisition costs.\nGross margin: Gross margin dollars increased 8.9 percent and the gross margin rate increased 370 basis points... primarily due to favourable credit card portfolio aging which led to a decrease in the allowance for future write-offs and the positive impact of a change in Management's estimate of future recoveries from insolvency proposals.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "603bbad7-f69b-4b9f-abbe-413e049d93cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.6,
        "x": 0.305,
        "y": 0.05
      },
      "kind": "title",
      "text": "Multiple Changes To Accounting In 2016",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ae676730-d9a2-4375-a26c-1a6f6e164484",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "eb75fc2a-aa59-43a6-8e4f-176cf5e7b5e3",
      "evidence": "The slide explicitly frames accounting changes as 'aggressive' to 'increase reported earnings', a classic fraud-exposure technique.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}