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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 a red box callout to highlight the specific line item in the financial table that is being challenged.",
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      "kind": "callout",
      "text": "Pre or Post Tax? Should Be Post Tax",
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      "text": "Xylem is trying to pass off $70 million of transaction costs in Q2 2023 as an addition to Adjusted Free Cash Flow. However, we take issue with this figure because it appears to be on a pre-tax basis when added to operating cash flow, which is an after-tax financial result.",
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      "kind": "list",
      "text": "Transaction Cost Disclosure details for Q1 and Q2 2023.",
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      "text": "Adjusted Free Cash Flow: $70 million",
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      "text": "Xylem is trying to pass off $70 million of transaction costs in Q2 2023 as an addition to Adjusted Free Cash Flow. However, we take issue with this figure because it appears to be on a pre-tax basis when added to operating cash flow, which is an after-tax financial result. Are all of these $70 million costs really not tax-deductible?",
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      "text": "Source: Xylem Q2 2023 Earnings Release",
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      "text": "Source: Xylem Q1 and Q2 10-Qs",
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      "text": "Xylem Inc. Non-GAAP Reconciliation table showing Net Cash, CapEx, and Free Cash Flow adjustments.",
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      "text": "Adjusted Cash Flow For Transaction Costs Should Be Adjusted On An After-Tax Basis",
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