InterDigital Inc (IDCC)

[olddog967]

dndodd: A little accounting lesson for you.

When you say your numbers from the 2nd Qtr 2014 balance sheet "do not reflect the additional $200M coming in the 3rd QTR from Samsung", you are incorrect.

As noted in the following statement from the 10-Q, in regard to the Samsung license IDCC included $270 million due from Samsung as an Account Receivable (asset account). The offsetting entry would be in the Deferred Revenue liability accounts. Therefore the $200 million, plus an additional $70 million due from Samsung are reflected in the 2nd qtr 2014 balance sheet.

"Additionally, as of June 30, 2014, we included $270.0 million within our Accounts Receivable balance, $200.0 million of which we collected after the balance sheet date and the remaining $70.0 million of which remains due within twelve months of the balance sheet date. Consistent with our accounting policy, we have not recorded in accounts receivable any amounts due more than twelve months from the balance sheet date."

A more appropriate comparison would have been to just use the Shareholder Equity balances, which represent the shareholders ownership interest. These accounts show a significant increase in shareholder value for the two period you compared.