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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
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  "notes": "The slide highlights a specific accounting disclosure from WTRG's 2022 10-K, calling out questionable assumptions with red underlines and a critical callout box.",
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      "kind": "callout",
      "text": "Really! \"Generally\" assumed margins will go up despite the fact they've consistently gone down since the acquisition closed.",
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      "text": "Really! \"Generally\" assumed margins will go up despite the fact they've consistently gone down since the acquisition closed.",
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      "text": "Regulated Gas Reporting Unit Headroom: 15%",
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      "text": "In 2022, we changed our annual goodwill impairment test date from July 31 to October 1, which is a change in accounting principle that management believes is preferable as the new test date better aligns with our long-term planning and forecasting process.",
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      "text": "We generally assumed operating margins in future years would increase as we continue to integrate and implement our rate base growth strategy. — Essential Utilities 2022 10-K",
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      "text": "Source: 2022 10-K",
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      "text": "Sensitivity Analysis(1) | Percentage points (ppts) decrease in Regulated Gas Reporting Unit Headroom\nIncrease in discount rate by 100 basis points | 6 ppts\nDecrease in Market Multiples by 1x | 7 ppts\nReduction in terminal value EBITDA(2) by 10% | 8 ppts",
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      "text": "Spruce Point has never seen a company claim it needs to change its goodwill testing period for better alignment with long-term planning and forecasting, especially when its fiscal year reporting period did not change.",
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      "text": "And Finally... The Disclosure of An Accounting Principle Change!",
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