{
  "docId": "019dd923-622c-750b-8b99-38d956541145",
  "docSlug": "a8618aad4c6b",
  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 32,
  "pageCount": 195,
  "prevPage": 31,
  "nextPage": 33,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "Uses a red-flag framing to contrast management quotes with financial reality.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "paragraph",
    "headshot",
    "screenshot"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-38d956541145/32",
  "deckHref": "/decks/019dd923-622c-750b-8b99-38d956541145",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-38d956541145.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-38d956541145#slide-32",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.92,
        "x": 0.05,
        "y": 0.165
      },
      "kind": "callout",
      "text": "Spruce Point believes it is a classic red flag when a Company manipulates its tax rates to achieve earnings. We observe that Stryker reported a 12.6% effective tax rate (14.9% adjusted) for 2021 while initially guiding investors to a 15.5%-16.5% rate. Stryker’s top VP of Tax David Furgason mysteriously left in 2021, and its auditor noted its tax position as a “Critical Audit Matter” with significant judgement. Mr Furgason claimed he was a CPA but his license had expired in 2013.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "51d5e132-4568-4371-ac54-771d33a21acc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes it is a classic red flag when a Company manipulates its tax rates to achieve earnings.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b1-715b-8bd8-e6bf250da889",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.15,
        "x": 0.15,
        "y": 0.735
      },
      "kind": "image",
      "text": "David G. Furgason",
      "attrs": null,
      "subkind": "headshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eec58ecb-1a62-4e53-b1cb-e9122c02b095",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "effective tax rate: 12.6%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b1-715b-8bd8-ec32c45cc1c4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "These (tax) rates (from 2020) reflect onetime operational fluctuations that arose due to the pandemic... For 2021, we do not anticipate these circumstances arising as we expect to return to normalized operations during the year. And we expect our full year effective tax rate to be in the range of 15.5% to 16.5% — CFO Boehnlein (Jan 2021).",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b1-715b-8bd8-eb6f2a39249b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Wayback Machine of Stryker Management",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "47f8c636-9d63-4c5d-baad-2940f66e09b1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.92,
        "x": 0.05,
        "y": 0.28
      },
      "kind": "table",
      "text": "Comparison of management guidance vs actual tax disclosures and personnel status.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f3f8b162-aaec-488e-b694-5a4bc91abedd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.68,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "A Classic Way To Hit Numbers: Evidence of Aggressive Tax Maneuvers",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d5438c87-8734-4015-b51f-75723aec425d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "492877cc-03e1-4303-8bc3-fa79efcb5841",
      "evidence": "Contrasts management guidance with actual financial results and audit notes.",
      "confidence": 0.95
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 21,
      "beatId": "eab225f6-347c-4477-8279-b36ac54bfaf9",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Evidence",
      "beatSlug": "evidence",
      "evidence": "The document presents various evidence and data to support its claims, including financial tables and quotes from former employees.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}