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  "docSlug": "75aa3b2bd0fb",
  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-07-01 00:00:00",
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  "notes": "The slide uses a red arrow to visually connect the change in terminology from 'amounts due to our suppliers' to 'amounts owed to the financial intermediaries'.",
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      "text": "Spruce Point believes that FND has a hidden form of debt within its Supply Chain Finance program. We observed that it modified disclosure language to reference amounts owed to financial intermediaries from amounts due to suppliers.",
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      "text": "Spruce Point believes that FND has a hidden form of debt within its Supply Chain Finance program. We observed that it modified disclosure language to reference amounts owed to financial intermediaries from amounts due to suppliers. Even more concerning, we observe FND omitted the disclosure that payments under the program are reflected in operating cash flow. This opens the door for FND to potentially reclassify payments to financial intermediaries as financing and not operating cash flows. However, our understanding is the FND claims no changes have been made.",
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      "text": "Source: 2022 vs. 2023 10-K",
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      "text": "2023 and 2022 disclosure text blocks showing the change in terminology and omission of cash flow classification.",
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      "kind": "title",
      "text": "Suspicious Changes Made To Supply Chain Finance Program Language",
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