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  "documentTitle": "Broadridge Financial Solutions, Inc. (BR)",
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  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-28 00:00:00",
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  "notes": "The slide uses a red flag icon to signal a warning about management's accounting practices.",
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      "text": "BR management has consistently touted Closed Sales as a key performance indicator (KPI), and it influences management's short-term cash compensation. But as we'll illustrate, it is fraught with holes and should not be relied upon as a firm measure of revenue that will materialize in the near-term. It is a metric with significant managerial estimation, and we see that over-time it has been increasing its \"allowance\" for estimation error.",
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      "text": "BR management has consistently touted Closed Sales as a key performance indicator (KPI), and it influences management's short-term cash compensation. But as we'll illustrate, it is fraught with holes and should not be relied upon as a firm measure of revenue that will materialize in the near-term.",
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      "text": "allowance adjustment: 5.0%",
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      "text": "Beginning in the fiscal year ended June 30, 2017, we reported Closed sales net of a 3.5% allowance adjustment... We will assess this allowance amount at the end of each fiscal year to establish the appropriate allowance for the subsequent year using the trailing five years data referenced earlier as the starting point, normalized for outlying factors, if any, to enhance the accuracy of the allowance. — Broadridge 2017 10-K",
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      "text": "Timeline of allowance adjustments: 2017 (3.5%), 2018-2019 (4.0%), 2019-2020 (4.0%), 2021-2022 (5.0%)",
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      "text": "KPI \"Closed Sales\" Appear To Be Systematically Over-Estimated",
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