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  "documentTitle": "Alpha Metallurgical Resources, Inc. (AMR)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2022-05-17 00:00:00",
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  "notes": "The slide uses a quote from a 10-Q to highlight the contradiction between ownership percentage and accounting treatment.",
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      "text": "Despite owning 65% and controlling the majority of DTA's operating capacity, AMR claims it doesn't control the asset because \"two reps must be present for business to be conducted and unanimous approval of both parities is needed for decisions to be taken\". We will show why we believe this to be a dubious claim on the next slide. Below, we show how AMR runs losses associated with DTA as non-operating (below EBIT), while capital contributions to fund losses are recorded as investments.",
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      "text": "Despite owning 65% and controlling the majority of DTA's operating capacity, AMR claims it doesn't control the asset because \"two reps must be present for business to be conducted and unanimous approval of both parities is needed for decisions to be taken\".",
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      "text": "On March 31, 2017, the Company acquired a portion of another partner's interest in DTA for $13,293 thereby increasing its ownership in DTA to sixty-five percent... [quote continues]",
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      "kind": "quote",
      "text": "On March 31, 2017, the Company acquired a portion of another partner's interest in DTA for $13,293 thereby increasing its ownership in DTA to sixty-five percent... the Company has concluded that it does not have the power to direct the activities that most significantly impact its economic performance and therefore is not the primary beneficiary. Accordingly, the Company continues to apply the equity method of accounting. — Q1 2019 10-Q",
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      "text": "Source: 2021 10-K",
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      "text": "Source: Last appeared Q1 2019 10-Q",
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      "text": "Funding of DTA's Loss Flows Through \"Investing\"",
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      "text": "DTA's Loss Appears Below \"EBIT\" As \"Other Income\"",
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      "text": "DTA: Aggressive Accounting Leads To Inflated EBITDA And Cash Flow (Cont'd)",
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