InterDigital Inc (IDCC)

[FISH21049]

mickeybritt, to make the bonus comp explanation VERY SIMPLE for you to understand, the following occurs (it is called accrual accounting where you accrue the expense throughout the period in anticipation of paying it out in the future):

Monthly or quarterly, the company expenses a portion of what they they think the annual bonus compensation will be.

DEBIT Bonus expense
CREDIT Bonus payable

In December, they will adjust the amount they have provided by either reversing some of the provision above or by adding more to the pot.

And I believe the company will pay out the bonus compensation some time in January, 2018. As an individual taxpayer, you are not taxed until you receive the money.