fix(bdc): keep a costed loan worth the same as its one extending row (#1505)

changelog.d/1505.fixed.md

@@ -0,0 +1 @@
+**BDC portfolios no longer drop a loan as the "total" of a sibling worth the same.** A row that states its own cost is kept even when one row extending its identifier matches its fair value. ARCC's 10-Q `0001628280-26-050307` dropped a $50.5M Proofpoint second-lien loan and two $100k loans, leaving the portfolio $50.7M below its reported total; it now reconciles exactly. (GH #1505)

edgar/bdc/investments.py

@@ -2270,6 +2270,11 @@ def drop(inv, reason):
         parts = [o for o in kept if o is not inv and o.identifier.startswith(ident)
                  and len(o.identifier) > len(ident) and not o.identifier[len(ident)].isalnum()]
         if parts and abs(sum(map(fv, parts)) - fv(inv)) <= tolerance(len(parts)):
+            # A row with its own cost is a holding, not a header over one row:
+            # ARCC's "Proofpoint, Inc. | Second lien senior secured loan" (cost
+            # 52.6M) and "... loan 1" (cost 51.6M) are both worth 50.5M (GH #1505)
+            if inv.cost is not None and len(parts) == 1:
+                continue
             drop(inv, f"total of {len(parts)} row(s) that extend it")
 
     # One identifier spelled two ways

tests/issues/regression/test_issue_1505.py

@@ -0,0 +1,67 @@
+"""Regression: a costed loan is not dropped as the "total" of a sibling worth the same.
+
+GH #1505, bead edgartools-smuqk
+
+``_exclude_restated_rows`` dropped a row when the rows extending its identifier
+summed to its fair value, comparing fair value only. ARCC's 10-Q for the quarter
+ended 2026-06-30 (0001628280-26-050307) has two Proofpoint second-lien loans,
+both worth 50,500,000:
+
+    Proofpoint, Inc. | Second lien senior secured loan     cost 52,600,000
+    Proofpoint, Inc. | Second lien senior secured loan 1   cost 51,600,000
+
+The first was excluded as the total of the second, as were two 100,000 pairs
+(RMS HoldCo II, Nordic Ferry), leaving the kept rows 50,700,000 below the
+filing's reported total. A parent over a single row that states its own cost is
+now kept. Measured on 16 BDC 10-Qs, only ARCC changes: 1,444 -> 1,447 rows,
+gap -50.7M -> 0.
+"""
+from decimal import Decimal
+
+import pytest
+
+from edgar.bdc.investments import PortfolioInvestment, PortfolioInvestments, _exclude_restated_rows
+
+
+def holding(identifier, fair_value, cost=None):
+    return PortfolioInvestment(
+        identifier=identifier, company_name=identifier.split(' | ')[0], investment_type='Second lien',
+        fair_value=Decimal(fair_value), cost=None if cost is None else Decimal(cost))
+
+
+@pytest.mark.fast
+def test_a_costed_row_is_not_the_total_of_one_sibling():
+    rows = [
+        holding('Proofpoint, Inc. | Second lien senior secured loan', 50_500_000, cost=52_600_000),
+        holding('Proofpoint, Inc. | Second lien senior secured loan 1', 50_500_000, cost=51_600_000),
+    ]
+    kept, excluded = _exclude_restated_rows(rows)
+    assert excluded == []
+    assert len(kept) == 2
+
+
+@pytest.mark.fast
+def test_a_costless_header_over_one_row_is_still_excluded():
+    """ARCC's five cost-less headers (APG, Bragg Live Food, ...) stay excluded."""
+    rows = [
+        holding('APG Intermediate Holdings Corporation', 1_000_000),
+        holding('APG Intermediate Holdings Corporation | First lien senior secured loan', 1_000_000,
+                cost=990_000),
+    ]
+    kept, excluded = _exclude_restated_rows(rows)
+    assert [e.investment.identifier for e in excluded] == ['APG Intermediate Holdings Corporation']
+    assert [e.reason for e in excluded] == ['total of 1 row(s) that extend it']
+
+
+@pytest.mark.network
+def test_arcc_keeps_proofpoint_and_reconciles():
+    """Ground truth: ARCC reports 29,349,300,000; the kept rows summed to 29,298,600,000."""
+    from edgar import find
+
+    portfolio = PortfolioInvestments.from_xbrl(find('0001628280-26-050307').xbrl())
+    proofpoint = [i for i in portfolio
+                  if i.identifier == 'Proofpoint, Inc. | Second lien senior secured loan']
+    assert [(i.fair_value, i.cost) for i in proofpoint] == [(Decimal('50500000'), Decimal('52600000'))]
+    assert len(portfolio) == 1447
+    assert portfolio.reported_total_fair_value == Decimal('29349300000')
+    assert sum(i.fair_value for i in portfolio) == portfolio.reported_total_fair_value