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  "documentTitle": "Pershing Square | Activist Presentation Deck | 110 slides",
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  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2014-04-01 00:00:00",
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  "notes": "The slide highlights a specific accounting practice (inventory step-up) and contrasts it with their treatment of stock-based compensation.",
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      "kind": "callout",
      "text": "Valeant removes certain non-cash expenses to better match Net Income with recurring Free Cash Flow",
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      "text": "Inventory Step-Up ($436mm adjustment, 2013)\nGAAP requires purchasers to write-up the value of an acquired company's inventory to estimated fair value\nFor Valeant, this write-up is often large because Valeant tends to acquire very high gross margin companies\nLarge inventory write-ups significantly reduce the GAAP gross margin Valeant reports when the written-up inventory is sold\nWe believe that removing the effect of this write up provides a better measure of recurring gross profits",
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      "text": "Unlike many companies that report Non-GAAP financials, Valeant does not add back Stock-Based Compensation",
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      "text": "Cash Net Income Reconciliation: Major Non-Cash Expense Adjustments",
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      "text": "Non-Cash expenses Valeant does not remove",
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