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  "documentTitle": "Dropbox, Inc. (DBX)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2020-02-06 00:00:00",
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  "notes": "Uses a quote from Dropbox's financial disclosures to highlight the nature of their equipment leases.",
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      "kind": "callout",
      "text": "Limited useful life means DBX will have to re-invest in these assets every 3-5 years",
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      "text": "Regardless of the lease being operating or finance, because of the short duration and useful life of the assets of 3 - 5 years, Dropbox will essentially own the equipment. It's payment are still capex related.",
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      "text": "The Company leases certain equipment from various third parties, through equipment finance leases. These leases either include a bargain purchase option, a full transfer of ownership at the completion of the lease term, or the terms of the leases are at least 75 percent of the useful lives of the assets and are therefore classified as finance leases. These leases are capitalized in property and equipment and the related amortization of assets under finance leases is included in depreciation and amortization expense in the Company’s condensed consolidated statements of operations. Initial asset values and finance lease obligations are based on the present value of future minimum lease payments.",
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      "text": "\"The Company leases certain equipment from various third parties, through equipment finance leases. These leases either include a bargain purchase option, a full transfer of ownership at the completion of the lease term, or the terms of the leases are at least 75 percent of the useful lives of the assets and are therefore classified as finance leases.\" — Dropbox",
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      "text": "Source: Dropbox",
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      "text": "Source: Dropbox",
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      "text": "Property and equipment | Useful life\nDatacenter and other computer equipment | 3 to 5 years\nOffice equipment and other | 3 to 7 years\nLeasehold improvements | Lesser of estimated useful life or remaining lease term",
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      "kind": "title",
      "text": "Lease To Own",
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