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  "docSlug": "41aa7e476e91",
  "documentTitle": "Xylem Inc. (XYL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-08-09 00:00:00",
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  "notes": "The slide uses red boxes to highlight specific data points (negative gross additions and declining depreciation) to support the activist thesis.",
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      "kind": "callout",
      "text": "Depreciation Expense Now Declining",
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      "text": "Capex / Depreciation: 1.27x",
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      "text": "Spruce Point believes that an analysis of Xylem's PP&E accounts help to illustrate part of its competitive challenges. Despite reported PP&E capex exceeding depreciation expense in the past few years, depreciation expense has barely increased and is now declining. Gross PP&E additions recently fell (in excess of impairments or asset sales) which could indicate fully depreciated and aged assets.",
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      "kind": "source-note",
      "text": "Source: Xylem SEC filings and press releases, Spruce Point analysis (1) 2017 and 2018 PP&E capex estimated by deducting gross additions from the software and technology asset accounts from total capex",
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      "text": "Capex / Depreciation Suggests Aged Assets",
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