SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 159.42-1.2%Jan 16 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: quartersawyer who wrote (79306)7/28/2008 8:04:37 PM
From: CrackheadBob  Read Replies (1) of 197281
 
What you are missing is that the contract is not in any way going to discern between the past royalties owed and a new licensing fee. There is just a single licensing fee that will get amortized however the bean counters are going to amortize it. When negotiated, the licensing fee included past amounts owed and a new fee for future payments. But those two things are just included in a single License Fee.

If they actually broke out past payments due separately in the contract, I bet that would be a huge mess for the accountants because all of the past quarters would need to be restated. It is much easier all around to call it a new licensing fee and amortize it over 15 years. In order to catch up, they amortize since the beginning of the new contract (April 2007) to get everything current.

If you want to know how big the fee is, pay attention to the Balance Sheet and the Cash Flow Statements.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext