InterDigital Inc (IDCC)

[olddog967]

Desert dweller: In regard to allocating the valuation reversal between income and paid-in-capital, it is my understanding that the allocation is dependent on the types of deferred taxes that are being reversed. Note 13 to last year’s financial statement, contains details of the various accounting transactions that make up the total deferred taxes amount. In general it appears that the classifications and amounts as of 31 Dec 2003 and 2004 are relatively the same. The largest classifications being “Deferred revenue, net (federal)” and “Net operating losses”. These two comprise 75-80% of the total amount. Do you have any idea how reversals related to these items could be allocated between income and paid-in-capital , or is it more complicated than that? TIA

http://www.sec.gov/Archives/edgar/data/354913/000119312505067076/d10k.htm#rom55554_36



mschere, I am not certain where I read it or heard it, but I am almost positive that management stated most of the remaining reversal would be a reversal against Paid in Capital and not impact earnings to a large degree. Maybe it was during a conversation with Janet or a conference call or in a 10k filing. I just reviewed several filings and could not find any mention of it so I am not sure why I think this. Hopefully Ronny is correct and a large portion hits the P&L and we have a bump in EPS by $.46 or more, but I don't think this will be the case. I will continue searching but I don't think I will find a reference and I guess we will just have to wait another week or two.