a discount is a reduction from the amount that is owed for example we figured LG owes us $2.1 mil a determind number (based on units sold times a %) so we told them if you pay now we will offer you a discount of $.5 mil so they paid $1.6 mil.
No problem with your example, but since we lack details... I view a discount as nothing more than an inducement to settle.
If we ask Casio for $3 mil but they offered $2 mil and we accepted this is not a discount it is an offer and acceptance.
No problem with that either... which might help make my point. While the concept of a discount may be meaningful, the specifics of it aren’t really measurable (at least by us). In that regard, we shouldn’t assume that no discount will necessarily mean more dollars.
Expectations for the first settlement were way out of line. I think most now have more realistic expectations going forward. Either way, it will be EXTREMELY interesting to see each new set of numbers.
- Sinkman
