InterDigital Inc (IDCC)

[Corp_Buyer]

DD, the key issue is that this reserve reversal does affect the P&L to SOME EXTENT, in this case, and evidently, the "financial statement" effect in this case has benefitted operating goal achievement, although I agree with you that we are not privy to the specifics (of the metrics used nor the target amounts).

Somehow, we got diverted talking about taxes, "financial statements" vs. tax books, etc. when the key point is that whatever metric(s) management IS using for their operating target(s), these metrics WERE credited as a result of this partial reserve reversal.

The upcoming 2005 results should greatly clarify this entire matter.

The target goals may be FCF, or NI, or some other metric(s), but they were benefitted by this reversal, it seems to me according to the 8K, and that is my concern.

And if this is the case, i.e. that this reserve reversal credits operating goal achievement, then apparently we agree the operating goal plan is NOT properly designed.

MO,
Corp_Buyer