InterDigital Inc (IDCC)

[olddog967]

dclarke: The $4 million was a one time adjustment to bring prior accruals into line with current expectations. It was also stated that future accruals would be at a lower rate.


In addition third quarter 2009 expenses had a $4million adjustments related to revised expectations for the payout associated with a long-term performance based incentive program. This adjustment is cumulative in nature covering the accrual of [incentive] compensation expenses from the beginning of 2008.

Jonathon Skeels - Davenport
Okay.. To reduction in operating expenses you reported you have there being structural exchanges that should be in place going forward, the $4 million and lower operating expense is related to this?
Scott McQuilkin
No. that the structural expensive I referred to, relate primarily to our exit from the product and modem business at the end of the first quarter. The $4 million is a cumulative adjustment, based on the amount that we had accrued under one of those long-term incentive plans. We made an adjustment based on changing the expected payout under that plan and it was a cumulative adjustment.
Going forward, I think the expense that you should expect to see reduces from about $1.2 million a quarter to about $0.6 million a quarter and that just relating to the one plan that was affected.