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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (81167)	10/17/2008 5:19:08 PM
From: Jim Mullens	1 Recommendation Read Replies (1) \| Respond to of 197628

SF, NOK Settlement lump sum accounting- and>>> “Firstly, if we amortize 2.3 B$ over 15 years that's about 12 M$/month (38 M$/quarter or 153 M$/year). … April 07 through Sept 08 = 17 months x 12 M$/month = 215 M$.” >>>>>>>>>>>>>>> Seems to me you’re amortizing the full $2.3 billion as tho it was the up-front license fee. My understanding is that a portion of that was also for past due royalties. Thus,- + the 5 quarters thru Sept ’08 include both- 1) past royalties and, 2) a prorata share of the up-front license fee. + The quarters beginning with Q1FY09 include just the number “2” above---the prorata share of the up-front license fee resulting from the lump-some payment. ……….+ The quarterly royalty amount is in addition to the prorata license fee. + Therefore, the amount in your lump-sum distribution analysis of $12 M/ month for the 17 months ended Sept 08, cannot be the same as for the months after September 2008. I do agree that the portion of the lump-some thru Sept '08 should be accrued and booked in Q4FY08, and not Q1FY09 as David appears to suggest.