Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) And our first question comes from Steve Ogilvie with ThinkEquity. Go ahead please.
Steve Ogilvie - ThinkEquity
Hey, guys. Just a few accounting things to get out of the way first, could you clarify on the $9 million payment, you said it's not in operating cash flow in 3Q. But the deferred revenue category in 3Q seems to have jumped up. Am I reading that wrong or is that $9 million in the deferred revenue?
Phil Ankeny
You're reading that correctly. It is in the deferred revenue, but it's also in accounts receivable and so essentially those two offset one another. The actual cash has been received in July and so it'll show up in the operating cash flow line, on the bottom line, if you will, there in Q4.
Steve Ogilvie - ThinkEquity
Okay, great. That answered my next question about accounts receivable. And then in terms of employee compensation, last fiscal year in your fourth quarter there is a bit of an issue with the accounting and how people were compensated for achieving your goal. Is the accrual you mentioned going to prevent that from happening this year? And I guess another way to look at it is, are the employees being compensated on a non-GAAP metric or on a GAAP metric?
Phil Ankeny
The compensation plans and the incentive compensation are geared to non-GAAP metrics. And the accruals that we've got so far are essentially assuming that we are on plan to achieve the target compensation, as it were. If you recall, how we laid out the plan in our CD&A and the proxy. There is a range of outcomes that the plan specified on a low end and a high end, which would be higher or lower than target.
And if the achievements were higher, the amounts would be somewhat higher than what's currently been accrued. It will all depend on the ultimate outcome and achievement for the full fiscal year.
Steve Ogilvie - ThinkEquity
Okay.
Phil Ankeny
But as opposed to a year ago, where there had been no accrual throughout the year, here we at least, we do have accrual both under the bonus as well as performance share payment plan.
Steve Ogilvie - ThinkEquity
Okay, great. And you don't care to give any range of what the minimum payment on CYPHER is?
Bruce Barclay
No, we're not in a position to do that, Steve.
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