InterDigital Inc (IDCC)

[Corp_Buyer]

DD- I follow your example perfectly. But, as you clearly stated, you are "ignoring the tax impact", which is the key issue it seems to me.

Evidently, this reversal has the effect of crediting management for goal achievement. That much we DO know from the 8K (although I am not sure you agree on this point).

We do both agree, that if this is the case, i.e. if this reversal credits operating goal achievement, then that runs contrary to a properly designed goal incentive plan.

I leave it to you to explain the mechanics of it, and I defer to your accounting expertise.

So, hypothetically, if you were to agree with me for a moment, that this reversal DOES in fact credit goal achievement, can YOU then please explain how that may be, in your view, from a correct accounting perspective, that the application of this reserve by management could possibly credit their operating goal achievement (be it NI, or FCF, or whatever accounting metric may be in use here)?

TIA,
Corp_Buyer