Replies to post #28042 on InterDigital Inc (IDCC)

[blueskywaves]

Yes. The 1999 Stock Plan is available only to management/consultants while the 2000/02 Stock Plan is available to everybody in the company. Different tax rules apply to both plans. The proposed increase of 5M is for the general plan.

The useful correlation is between the 1999/2000/02 Stock Plans and Research & Development during IDCC's turnaround stage which was bookended by the early 1999 Nokia deal and the early 2003 Ericsson deal.

Looking backwards, it is clear that IDCC wouldn't have been able to invest effectively in R&D without a generous options program. Looking forward, IDCC wouldn't be able to invest effectively in R&D without a generous options program at least until the accounting rules are changed for everybody.
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 Interdigital (IDCC) 
 Equity Incentive Plans vs R&D 
 1999 to 2002 
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          1999       1999      2000/02     2000/02 
         RS/RSU     RS/RSU     Options     Options 
      Outstanding  Available Outstanding  Available    R&D 
       (shares)    (shares)   (shares)    (shares)    ($$$) 
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 1999   0.322M      1.178M     4.483M      5.722M   $20.481M 
 2000   0.688M      2.831M     5.919M      5.800M    26.013M 
 2001   0.813M      2.687M    10.564M      0.971M    44.550M 
 2002   0.915M      2.585M    10.462M      1.878M    46.686M 
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 RS/RSU - Restricted Stock/Restricted Stock Units 
 Source: 10Ks 
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