{ "docId": "019dd923-622c-750b-8b99-781d6376c0a8", "docSlug": "9250edf61831", "documentTitle": "MSCI Inc. (MSCI)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-01-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 46, "pageCount": 123, "prevPage": 45, "nextPage": 47, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 5, "notes": "The slide uses a table to contrast specific quarterly and annual disclosures, highlighting the recurring mention of 'increased capitalization of expenses' as an offset to rising costs.", "elementsJson": [ "headline_text", "paragraph", "data_table", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-781d6376c0a8/46", "deckHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8#slide-46", "components": [ { "bbox": null, "kind": "callout", "text": "Capitalizing more expenses has the obvious impact of enhancing current period margins.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac4-74a6-be22-9eca5086a54d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.94, "x": 0.03, "y": 0.17 }, "kind": "paragraph", "text": "While MSCI does not provide granular quantified impacts of capitalized expense items per segment, we observe that it recently started disclosing that its was increasing capitalized expenses related to software projects in the ESG segment. This may be because it is electing to harmonize Section 174 tax and book methods. Capitalizing more expenses has the obvious impact of enhancing current period margins.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f971f0a-27fc-4259-af6a-e092cffd33f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "ESG and Climate segment Adjusted EBITDA expenses increased 23.1% for the three months ended September 30, 2022... partially offset by increased capitalization of expenses related to internally developed software projects. — MSCI SEC filings", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac4-74a6-be22-a07823daf30d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.15, "x": 0.03, "y": 0.97 }, "kind": "source-note", "text": "Source: MSCI SEC filings", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8b14ef20-c7f0-4a90-af50-37023361ab10", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.63, "w": 0.94, "x": 0.03, "y": 0.3 }, "kind": "table", "text": "Table showing Q3'22, 2022 10-K, Q1'23, Q2'23, and Q3'23 disclosures regarding capitalized expenses.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "164c8161-9aae-49c1-b885-2a4d40092c24", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.65, "x": 0.31, "y": 0.04 }, "kind": "title", "text": "Capitalized Expenses Increasing In ESG", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2caca51a-15de-46d4-98c1-3abb8345d7ed", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "bcf0b224-2318-4c6d-9184-75840b5de171", "evidence": "The slide identifies a specific accounting 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"0d440955-7c20-44ed-b046-f214de5e9eb4", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Preempt Rebuttal", "beatSlug": null, "evidence": "The document anticipates and counters potential rebuttals to its arguments.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 123, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "96af0651-6de6-4b30-ba3b-77cee8001437", "evidence": "The loop is implicit, as the document builds a case for selling MSCI shares.", "position": 0, "objective": "Highlight the cost of inaction for investors not selling MSCI shares", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" }, { "to": 66, "from": 14, "name": "Iceberg", "slug": 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(Supports/Refutes) -> Conclusion (Validated/Pivoted)", "confidence": 0.6, "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }