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  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
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  "authorName": "Spruce Point Capital Management",
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      "text": "Contractual Purchase Obligations to Ending Inventory: 81.5%",
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      "text": "We observe after 2019, FND's contractual purchase obligations (primarily inventory) increased dramatically. Our concern is that FND's gross margins already benefited from one-time large volume purchases and that it is now stuck with excess inventory.",
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      "text": "Purchase obligations include all legally binding contracts such as firm commitments for inventory purchases, container commitments, software and license commitments, and legally binding service contracts. — Company 10-K filings",
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      "text": "1) Prior to 2021 FND described contractual purchase obligations as, \"Purchase obligations include all legally binding contracts...\" Post 2022, FND updated its disclosure to include capital projects.",
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