InterDigital Inc (IDCC)

[The Count]

Ronny, I think the $6 million is revenue

My assumptions are:
The $6 million was received and booked to deferred revenue.
IDCC will be getting 4 $100 million payments that will be booked to revenue at the rate of $25 million a quarter.
IDCC has no liability to Samsung or anyone else for repayment of the $6 million or any future required performance.

Therefore, the proper accounting treatment to offset the required debit to deferred revenue would be a credit (increase) to revenue. It's not a reduction of any asset, it's not a liability, it's not capital, so it has to hit the P&L. As far as the timing, that could be anything from as early as Q4 2008 to being spread over the next two or four years, depending on how the contract is worded. But if my assumptions above are accurate, it will have to be booked to revenue.