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Categorized is flat version 5 or greater column property

I wonder what the "Categorized is flat version 5 or greater" column-property really does and where/why I should use it. I can't find it documented anywhere? Thanks in advance!
Although I searched extensively for information on the view colum property 'Categorized is flat version 5', I was unable to find any hard information. I heard that when this is selected, the category/subcategory information are concatenated into text strings which are then treated as the primary sort keys. It is reported to be a lot faster to build the categorized inicies this way and therefore provides a performance boost.

When viewed, the column appears as if it wasn't categorized but , if a document also has subcategories, the subcategories appear following the category. For instance, if a document has the categories and subcategories MyDocumentsSpecialReports you would normally see it in a view as:
If you select the property 'Categorized is flat version 5', it would appear in the view as:

This was first published in February 2001

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