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  "documentTitle": "Avery Dennison Corporation (AVY)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-11-10 00:00:00",
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  "notes": "The slide uses a 'before-after' style comparison of company-provided data versus SEC filing disclosures to expose accounting manipulation.",
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      "kind": "callout",
      "text": "The $31 million tax benefit was related to the ADPP termination approved by our Board in July 2018, as well as lump-sum payments associated with two U.S. nonqualified benefit plans.",
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      "kind": "callout",
      "text": "In connection with the termination, we contributed $200 million to the ADPP in August 2018; settled approximately $152 million of ADPP liabilities... [detailed disclosure text]",
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      "text": "We believe AVY's free cash flow presentation is highly aggressive and analytically flawed in a manner that vastly overstates performance.",
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      "text": "Free Cash Flow: $512.3",
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      "text": "We believe AVY's free cash flow presentation is highly aggressive and analytically flawed in a manner that vastly overstates performance. Notably, AVY adds back $210m of pre-tax pension contributions to free cash flow (an after-tax measure). Yet, AVY has obscured clear disclosure that it received over $229m of tax benefits with its pension plan contributions and strategy. Avery depicts its Free Cash Flow as growing from 2017-2019, but the reality is much more bleak.",
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      "text": "\"The $31 million tax benefit was related to the ADPP termination approved by our Board in July 2018, as well as lump-sum payments associated with two U.S. nonqualified benefit plans.\" — Q3'2018 10-Q, p. 27",
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      "text": "Source: 2019 10-K p. 31",
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      "text": "Source: Q3'2018 10-Q, p. 27",
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      "text": "Free Cash Flow table showing 2015-2019 data with pension add-backs",
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      "text": "Return on Total Capital (ROTC) table showing 2015-2019 data",
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      "text": "Potentially Misleading And Aggressive Free Cash Flow Presentation",
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