INTERDIGITAL, INC., 10-Q filed on 10/31/2024
Quarterly Report
v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Oct. 29, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 1-33579  
Entity Registrant Name INTERDIGITAL, INC.  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 82-4936666  
Entity Address, Address Line One 200 Bellevue Parkway  
Entity Address, Address Line Two Suite 300  
Entity Address, City or Town Wilmington  
Entity Address, State or Province DE  
Entity Address, Postal Zip Code 19809-3727  
City Area Code 302  
Local Phone Number 281-3600  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol IDCC  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   25,343,734
Entity Central Index Key 0001405495  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 401,090 $ 437,076
Short-term investments 412,120 569,280
Accounts receivable 212,420 117,292
Prepaid and other current assets 128,106 43,976
Total current assets 1,153,736 1,167,624
Property and equipment, net 10,872 11,566
Patents, net 299,567 313,001
Deferred tax assets 110,739 128,967
Other non-current assets, net 150,436 149,656
Total assets 1,725,350 1,770,814
Current liabilities:    
Current portion of long-term debt 454,250 578,752
Accounts payable 8,015 7,846
Accrued compensation and related expenses 38,966 32,665
Deferred revenue 156,885 153,597
Dividends payable 11,366 10,226
Other accrued expenses 42,289 98,042
Total current liabilities 711,771 881,128
Long-term debt 18,302 29,019
Long-term deferred revenue 216,665 223,866
Other long-term liabilities 56,075 55,252
Total liabilities 1,002,813 1,189,265
Commitments and contingencies
Shareholders' equity:    
Preferred Stock, $0.10 par value, 14,399 shares authorized, 0 shares issued and outstanding 0 0
Common Stock, $0.01 par value, 100,000 shares authorized, 70,137 and 69,507 shares issued and 25,242 and 25,580 shares outstanding 701 694
Additional paid-in capital 794,644 742,981
Retained earnings 1,654,774 1,462,070
Accumulated other comprehensive gain (loss) 134 (647)
Treasury stock, 44,895 and 43,927 shares of common stock held at cost (1,727,716) (1,623,549)
Total shareholders' equity 722,537 581,549
Total liabilities and shareholders' equity $ 1,725,350 $ 1,770,814
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2024
Dec. 31, 2023
Shareholders' equity:    
Preferred stock, par value (in USD per share) $ 0.10 $ 0.10
Preferred stock, shares authorized (in shares) 14,399,000 14,399,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 70,137,000 69,507,000
Common stock, shares outstanding (in shares) 25,242,000 25,580,000
Treasury stock, shares of common held at cost (in shares) 44,895,000 43,927,000
v3.24.3
Condensed Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenues        
Revenues $ 128,679 $ 140,106 $ 615,714 $ 444,070
Operating expenses:        
Research and portfolio development 48,331 50,253 147,851 149,560
Licensing 27,467 21,522 149,212 59,534
General and administrative 13,539 14,678 41,665 38,686
Total operating expenses 89,337 86,453 338,728 247,780
Income from operations 39,342 53,653 276,986 196,290
Interest expense (10,681) (12,683) (34,086) (36,911)
Other income, net 12,554 14,725 33,483 42,303
Income before income taxes 41,215 55,695 276,383 201,682
Income tax provision (7,025) (8,541) (50,877) (29,715)
Net income 34,190 47,154 225,506 171,967
Net loss attributable to noncontrolling interest 0 (787) 0 (3,016)
Net income attributable to InterDigital, Inc. $ 34,190 $ 47,941 $ 225,506 $ 174,983
Net income per common share — Basic (in USD per share) $ 1.36 $ 1.82 $ 8.92 $ 6.42
Weighted average number of common shares outstanding — Basic (in shares) 25,149 26,285 25,286 27,259
Net income per common share — Diluted (in USD per share) $ 1.14 $ 1.72 $ 7.84 $ 6.19
Weighted average number of common shares outstanding — Diluted (in shares) 30,034 27,812 28,759 28,261
Cash dividends declared per common share (in USD per share) $ 0.45 $ 0.40 $ 1.25 $ 1.10
v3.24.3
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 34,190 $ 47,154 $ 225,506 $ 171,967
Unrealized gain (loss) on investments, net of tax 1,366 30 781 (1,230)
Comprehensive income 35,556 47,184 226,287 170,737
Comprehensive loss attributable to noncontrolling interest 0 (787) 0 (3,016)
Total comprehensive income attributable to InterDigital, Inc. $ 35,556 $ 47,971 $ 226,287 $ 173,753
v3.24.3
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Gain (Loss)
Treasury Stock
Non-Controlling Interest
Beginning balance (in shares) at Dec. 31, 2022   71,923          
Beginning balance (in shares) at Dec. 31, 2022           42,255  
Beginning balance at Dec. 31, 2022 $ 730,513 $ 719 $ 717,102 $ 1,492,046 $ (916) $ (1,484,056) $ 5,618
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 105,259     105,259      
Net loss attributable to noncontrolling interest (1,739)           (1,739)
Non-controlling interest contributions 1,750           1,750
Net change in unrealized gain (loss) on short-term investments 579       579    
Dividends declared (9,449)   259 (9,708)      
Exercise of common stock options (in shares)   13          
Exercise of common stock options 687   687        
Issuance of common stock, net (in shares)   132          
Issuance of common stock, net (6,708) $ 1 (6,709)        
Share-based compensation 7,790   7,790        
Repurchase of common stock (in shares)   (2,739)          
Repurchase of common stock (203,381) $ (27)   (203,354)      
Ending balance (in shares) at Mar. 31, 2023   69,329          
Ending balance (in shares) at Mar. 31, 2023           42,255  
Ending balance at Mar. 31, 2023 625,301 $ 693 719,129 1,384,243 (337) $ (1,484,056) 5,629
Beginning balance (in shares) at Dec. 31, 2022   71,923          
Beginning balance (in shares) at Dec. 31, 2022           42,255  
Beginning balance at Dec. 31, 2022 730,513 $ 719 717,102 1,492,046 (916) $ (1,484,056) 5,618
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 174,983            
Net loss attributable to noncontrolling interest (3,016)            
Net change in unrealized gain (loss) on short-term investments (1,230)            
Ending balance (in shares) at Sep. 30, 2023   69,431          
Ending balance (in shares) at Sep. 30, 2023           43,456  
Ending balance at Sep. 30, 2023 587,782 $ 694 734,627 1,433,658 (2,146) $ (1,583,403) 4,352
Beginning balance (in shares) at Mar. 31, 2023   69,329          
Beginning balance (in shares) at Mar. 31, 2023           42,255  
Beginning balance at Mar. 31, 2023 625,301 $ 693 719,129 1,384,243 (337) $ (1,484,056) 5,629
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 21,783     21,783      
Net loss attributable to noncontrolling interest (490)           (490)
Net change in unrealized gain (loss) on short-term investments (1,839)       (1,839)    
Dividends declared (9,273)   360 (9,633)      
Exercise of common stock options (in shares)   1          
Exercise of common stock options 12   12        
Issuance of common stock, net (in shares)   42          
Issuance of common stock, net (1,389)   (1,389)        
Share-based compensation 8,740   8,740        
Repurchase of common stock (in shares)           (548)  
Repurchase of common stock (42,489)         $ (42,489)  
Ending balance (in shares) at Jun. 30, 2023   69,372          
Ending balance (in shares) at Jun. 30, 2023           42,803  
Ending balance at Jun. 30, 2023 600,356 $ 693 726,852 1,396,393 (2,176) $ (1,526,545) 5,139
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 47,941     47,941      
Net loss attributable to noncontrolling interest (787)           (787)
Net change in unrealized gain (loss) on short-term investments 30       30    
Dividends declared (10,348)   328 (10,676)      
Issuance of common stock, net (in shares)   59          
Issuance of common stock, net (2,887) $ 1 (2,888)        
Share-based compensation 10,335   10,335        
Repurchase of common stock (in shares)           (653)  
Repurchase of common stock (56,858)         $ (56,858)  
Ending balance (in shares) at Sep. 30, 2023   69,431          
Ending balance (in shares) at Sep. 30, 2023           43,456  
Ending balance at Sep. 30, 2023 $ 587,782 $ 694 734,627 1,433,658 (2,146) $ (1,583,403) 4,352
Beginning balance (in shares) at Dec. 31, 2023 25,580 69,507          
Beginning balance (in shares) at Dec. 31, 2023 43,927         43,927  
Beginning balance at Dec. 31, 2023 $ 581,549 $ 694 742,981 1,462,070 (647) $ (1,623,549) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 81,652     81,652      
Net change in unrealized gain (loss) on short-term investments (495)       (495)    
Dividends declared (10,147)   343 (10,490)      
Issuance of common stock, net (in shares)   131          
Issuance of common stock, net (8,635) $ 2 (8,637)        
Share-based compensation 9,386   9,386        
Repurchase of common stock (in shares)           (277)  
Repurchase of common stock (29,019)         $ (29,019)  
Ending balance (in shares) at Mar. 31, 2024   69,638          
Ending balance (in shares) at Mar. 31, 2024           44,204  
Ending balance at Mar. 31, 2024 $ 624,291 $ 696 744,073 1,533,232 (1,142) $ (1,652,568) 0
Beginning balance (in shares) at Dec. 31, 2023 25,580 69,507          
Beginning balance (in shares) at Dec. 31, 2023 43,927         43,927  
Beginning balance at Dec. 31, 2023 $ 581,549 $ 694 742,981 1,462,070 (647) $ (1,623,549) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 225,506            
Net loss attributable to noncontrolling interest 0            
Net change in unrealized gain (loss) on short-term investments $ 781            
Ending balance (in shares) at Sep. 30, 2024 25,242 70,137          
Ending balance (in shares) at Sep. 30, 2024 44,895         44,895  
Ending balance at Sep. 30, 2024 $ 722,537 $ 701 794,644 1,654,774 134 $ (1,727,716) 0
Beginning balance (in shares) at Mar. 31, 2024   69,638          
Beginning balance (in shares) at Mar. 31, 2024           44,204  
Beginning balance at Mar. 31, 2024 624,291 $ 696 744,073 1,533,232 (1,142) $ (1,652,568) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 109,664     109,664      
Net change in unrealized gain (loss) on short-term investments (90)       (90)    
Dividends declared (10,052)   443 (10,495)      
Issuance of common stock, net (in shares)   39          
Issuance of common stock, net (1,580)   (1,580)        
Share-based compensation 9,655   9,655        
Repurchase of common stock (in shares)           (344)  
Repurchase of common stock (35,111)         $ (35,111)  
Settlement of the 2024 Notes (in shares)   324          
Settlement of the 2024 Notes 0 $ 3 (3)        
Settlement of the 2024 Hedges (in shares)           324  
Settlement of the 2024 Hedges 0   37,120     $ (37,120)  
Ending balance (in shares) at Jun. 30, 2024   70,001          
Ending balance (in shares) at Jun. 30, 2024           44,872  
Ending balance at Jun. 30, 2024 696,777 $ 699 789,708 1,632,401 (1,232) $ (1,724,799) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income attributable to InterDigital, Inc. 34,190     34,190      
Net loss attributable to noncontrolling interest 0            
Net change in unrealized gain (loss) on short-term investments 1,366       1,366    
Dividends declared (11,366)   451 (11,817)      
Exercise of common stock options (in shares)   1          
Exercise of common stock options 11   11        
Issuance of common stock, net (in shares)   53          
Issuance of common stock, net (4,601) $ 1 (4,602)        
Share-based compensation 9,081   9,081        
Repurchase of common stock (in shares)           (23)  
Repurchase of common stock (2,917)         $ (2,917)  
Settlement of the 2024 Warrants (in shares)   82          
Settlement of the 2024 Warrants $ (4) $ 1 (5)        
Ending balance (in shares) at Sep. 30, 2024 25,242 70,137          
Ending balance (in shares) at Sep. 30, 2024 44,895         44,895  
Ending balance at Sep. 30, 2024 $ 722,537 $ 701 $ 794,644 $ 1,654,774 $ 134 $ (1,727,716) $ 0
v3.24.3
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]                
Dividends declared (in USD per share) $ 0.45 $ 0.40 $ 0.40 $ 0.40 $ 0.35 $ 0.35 $ 1.25 $ 1.10
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities:    
Net income $ 225,506 $ 171,967
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 52,165 58,698
Non-cash interest income, net (8,290) (9,800)
Non-cash change in investments 329 (9,370)
Change in deferred revenue (3,913) (3,933)
Deferred income taxes 18,020 2,635
Share-based compensation 28,122 26,865
Other 0 2,616
Increase in assets:    
Receivables (95,128) (16,390)
Deferred charges and other assets (81,333) (54,384)
(Decrease) Increase in liabilities:    
Accounts payable (2,092) 881
Customer deposit (76,100) 76,100
Accrued compensation and other expenses 22,208 (8,567)
Net cash provided by operating activities 79,494 237,318
Cash flows from investing activities:    
Purchases of short-term investments (445,434) (671,612)
Sales of short-term investments 618,642 627,906
Purchases of property and equipment (1,928) (3,167)
Capitalized patent costs (33,506) (27,992)
Long-term investments 1,576 567
Net cash provided by (used in) investing activities 139,350 (74,298)
Cash flows from financing activities:    
Payments on long-term debt (139,069) 0
Payments of debt issuance costs 0 (100)
Repurchase of common stock (66,726) (302,728)
Net proceeds from exercise of stock options 11 699
Non-controlling interest contribution 0 1,750
Taxes withheld upon restricted stock unit vestings (14,816) (10,984)
Dividends paid (30,425) (29,106)
Net cash used in financing activities (251,025) (340,469)
Net decrease in cash, cash equivalents and restricted cash (32,181) (177,449)
Cash, cash equivalents and restricted cash, beginning of period 442,961 703,161
Cash, cash equivalents and restricted cash, end of period $ 410,780 $ 525,712
v3.24.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited, condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the financial position of InterDigital, Inc. (individually and/or collectively with its subsidiaries referred to as “InterDigital,” the “Company,” “we,” “us” or “our,” unless otherwise indicated) as of September 30, 2024, the results of our operations for the three and nine months ended September 30, 2024 and 2023 and our cash flows for the nine months ended September 30, 2024 and 2023. The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, accordingly, do not include all of the detailed schedules, information and notes necessary to state fairly the financial condition, results of operations and cash flows in conformity with United States generally accepted accounting principles (“GAAP”). The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP for year-end financial statements. Therefore, these financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (our “2023 Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”) on February 15, 2024. Definitions of capitalized terms not defined herein appear within our 2023 Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. We have one reportable segment.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Change in Accounting Policies
There have been no material changes or updates to our existing accounting policies from the disclosures included in our 2023 Form 10-K, except as indicated below in "New Accounting Guidance".
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
Supplemental Cash Flow Information
The following table presents additional supplemental cash flow information for the nine months ended September 30, 2024 and 2023 (in thousands):
Nine Months Ended September 30,
Supplemental cash flow information:20242023
Interest paid$9,311 $9,312 
Income taxes paid, including foreign withholding taxes37,269 30,117 
Non-cash investing and financing activities:
Settlement of the 2024 Hedge Transactions
37,120 — 
Dividend payable11,366 10,348 
Right-of-use assets obtained in exchange of operating lease liabilities2,023 93 
Accrued capitalized patent costs and property and equipment purchases(2,261)334 
Unsettled repurchase of common stock— 1,853 
New Accounting Guidance
Accounting Standards Update: Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in the ASU require disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.
Accounting Standards Update: Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU enhance income tax disclosures, primarily through standardization, disaggregation of rate reconciliation categories, and income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.
v3.24.3
Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregated Revenue
The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30,
 20242023
Increase/(Decrease)
Recurring revenues:
Smartphone$74,184 $88,376 $(14,192)(16)%
CE, IoT/Auto23,830 15,659 8,171 52 %
Other620 441 179 41 %
Total recurring revenues98,634 104,476 (5,842)(6)%
Catch-up revenues a
30,045 35,630 (5,585)(16)%
Total revenues$128,679 $140,106 $(11,427)(8)%
Nine Months Ended September 30,
 20242023
Increase/(Decrease)
Recurring revenues:
Smartphone$221,738 $260,882 $(39,144)(15)%
CE, IoT/Auto67,824 43,177 24,647 57 %
Other1,878 1,063 815 77 %
Total recurring revenues291,440 305,122 (13,682)(4)%
Catch-up revenues a
324,274 138,948 185,326 133 %
Total revenues$615,714 $444,070 $171,644 39 %
(a)    Catch-up revenues are comprised of past patent royalties and revenues from static fixed-fee agreements.
During the nine months ended September 30, 2024, we recognized $119.8 million of revenue that had been included in deferred revenue as of the beginning of the period. As of September 30, 2024, we had contract assets of $161.1 million included within "Accounts receivable" in the condensed consolidated balance sheet. As of December 31, 2023, we had contract assets of $94.6 million included within "Accounts receivable" in the condensed consolidated balance sheet.
Contracted Revenue
Based on contracts signed and committed as of September 30, 2024, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):
Revenue (a)
Remainder of 2024$84,979 
2025330,439 
2026237,275 
2027227,858 
2028215,821 
Thereafter265,882 
Total Revenue$1,362,254 
(a)    This table includes estimated revenue related to our Samsung arbitration. In accordance with ASC 606, these estimates are limited to the amount of revenue we expect to recognize only to the extent it is probable that a subsequent change in the estimate would not result in a significant revenue reversal.
v3.24.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Cash, Cash Equivalents, and Restricted Cash
Cash, cash equivalents, and restricted cash currently consist of money market and demand accounts. The following table provides a reconciliation of total cash, cash equivalents and restricted cash as of September 30, 2024, December 31, 2023 and September 30, 2023 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
 September 30,December 31,September 30,
 202420232023
Cash and cash equivalents$401,090 $437,076 $518,483 
Restricted cash included within prepaid and other current assets9,690 5,885 7,229 
Total cash, cash equivalents, and restricted cash
$410,780 $442,961 $525,712 
Concentration of Credit Risk and Fair Value of Financial Instruments
Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash equivalents, short-term investments, and accounts receivable. We place our cash equivalents and short-term investments only in highly rated financial instruments and in United States government instruments.
Our accounts receivable and contract assets are derived principally from patent license and technology solutions agreements. Four licensees comprised 85% and 84% of our accounts receivable balances of September 30, 2024 and December 31, 2023, respectively. We perform ongoing credit evaluations of our licensees, who generally include large, multinational, wireless telecommunications equipment manufacturers. We believe that the book values of our financial instruments approximate their fair values.
Fair Value Measurements
We use various valuation techniques and assumptions when measuring the fair value of our assets and liabilities. We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. This guidance established a hierarchy that prioritizes fair value measurements based on the types of input used for the various valuation techniques (market approach, income approach and cost approach). The levels of the hierarchy are described below:
Level 1 Inputs — Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets.
Level 2 Inputs — Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets with insufficient volume or infrequent transactions (less active markets) or model-driven valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data, including market interest rate curves, referenced credit spreads and pre-payment rates.
Level 3 Inputs — Level 3 includes financial instruments for which fair value is derived from valuation techniques including pricing models and discounted cash flow models in which one or more significant inputs are unobservable, including the Company’s own assumptions. The pricing models incorporate transaction details such as contractual terms, maturity and, in certain instances, timing and amount of future cash flows, as well as assumptions related to liquidity and credit valuation adjustments of marketplace participants.
Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. We use quoted market prices for similar assets to estimate the fair value of our Level 2 investments.
Recurring Fair Value Measurements
Our financial assets are generally included within short-term investments on our condensed consolidated balance sheets, unless otherwise indicated. Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of September 30, 2024 and December 31, 2023 (in thousands):
 Fair Value as of September 30, 2024
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$400,422 $— $— $400,422 
Commercial paper— 95,932 — 95,932 
U.S. government securities— 192,507 — 192,507 
Corporate bonds, asset backed and other securities (c)
— 134,039 — 134,039 
  Total$400,422 $422,478 $— $822,900 
 Fair Value as of December 31, 2023
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$430,707 $— $— $430,707 
Commercial paper (b)
— 174,991 — 174,991 
U.S. government securities— 256,850 — 256,850 
Corporate bonds, asset backed and other securities (c)
— 149,693 — 149,693 
  Total$430,707 $581,534 $— $1,012,241 
______________________________
(a)Primarily included within cash and cash equivalents.
(b)As of December 31, 2023, $5.7 million of commercial paper was included within cash and cash equivalents.
(c)As of September 30, 2024 and December 31, 2023, $10.4 million and $6.5 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively.
Non-Recurring Fair Value Measurements
Patents
During the nine months ended September 30, 2023, we incurred a one-time impairment of $2.5 million on our patents held for sale. We determined the fair value based upon evaluation of market conditions.
Investment in Other Entities
During the three and nine months ended September 30, 2024, we recognized net gains of $0.3 million and $1.8 million, respectively, resulting from fair value changes of our long-term strategic investments, which was included within “Other income, net” in the condensed consolidated statement of income.
During the three and nine months ended September 30, 2023, we recognized gains of $6.1 million and $9.4 million, respectively, resulting from fair value changes of one of our long-term strategic investments, which was included within “Other income, net” in the condensed consolidated statement of income.
Fair Value of Long-Term Debt
Convertible Notes
The principal amount, carrying value and related estimated fair value of the Company's Convertible Notes reported as of September 30, 2024 and December 31, 2023 was as follows (in thousands). The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.
September 30, 2024December 31, 2023
Principal
Amount		Carrying
Value		Fair
Value		Principal
Amount		Carrying
Value		Fair
Value
2027 Senior Convertible Long-Term Debt$460,000 $454,250 $855,554 $460,000 $452,830 $677,230 
2024 Senior Convertible Long-Term Debt$— $— $— $126,174 $125,922 $171,130 
Technicolor Patent Acquisition Long-term Debt
The carrying value and related estimated fair value of the Technicolor Patent Acquisition long-term debt reported as of September 30, 2024 and December 31, 2023 was as follows (in thousands). The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.
September 30, 2024December 31, 2023
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Technicolor Patent Acquisition Long-Term Debt$18,302 $16,584 $29,019 $28,859 
v3.24.3
Other Assets and Liabilities
 9 Months Ended
Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS AND LIABILITIES OTHER ASSETS AND LIABILITIES
The amounts included in "Prepaid and other current assets" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Deposits
$40,643 $— 
Prepaid assets35,019 9,353 
Tax receivables25,257 19,835 
Restricted cash9,690 5,885 
Other current assets17,497 8,903 
Total Prepaid and other current assets$128,106 $43,976 
The amounts included in "Other non-current assets, net" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Tax receivables$87,331 $76,740 
Goodwill22,421 22,421 
Long-term investments20,667 31,895 
Right-of-use assets15,840 15,746 
Other non-current assets4,177 2,854 
Total Other non-current assets, net$150,436 $149,656 
The amounts included in "Other accrued expenses" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Accrued legal fees$20,616 $10,338 
Customer deposit— 76,100 
Other accrued expenses21,673 11,604 
Total Other accrued expenses$42,289 $98,042 
The amounts included in "Other long-term liabilities" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Deferred compensation liabilities$19,560 $18,413 
Operating lease liabilities16,819 17,385 
Other long-term liabilities19,696 19,454 
Total Other long-term liabilities$56,075 $55,252 
v3.24.3
Obligations
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
OBLIGATIONS OBLIGATIONS
2027 Notes, and Related Note Hedge and Warrant Transactions
On May 27, 2022, we issued $460.0 million in aggregate principal amount of 3.50% Senior Convertible Notes due 2027 (the "2027 Notes"). The net proceeds from the issuance of the 2027 Notes, after deducting the initial purchasers' transaction fees and offering expenses, were approximately $450.0 million. The 2027 Notes bear interest at a rate of 3.50% per year, payable in cash on June 1 and December 1 of each year, commencing on December 1, 2022, and mature on June 1, 2027, unless earlier redeemed, converted or repurchased.
The 2027 Notes will be convertible into cash up to the aggregate principal amount of the notes to be converted and in respect of the remainder, if any, of the Company’s obligation in excess of the aggregate principal amount of the notes being converted, pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 12.9041 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $77.49 per share). From the period January 1, 2024 through December 31, 2024, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes. As such, the 2027 Notes are included in "Current portion of long-term debt" in our condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023.
The 2027 Notes are the Company’s senior unsecured obligations and rank equally in right of payment with any of the Company’s current and any future senior unsecured indebtedness. The 2027 Notes are effectively subordinated to all of the Company’s future secured indebtedness, if any, to the extent of the value of the related collateral, and the 2027 Notes are structurally subordinated to indebtedness and other liabilities, including trade payables, of the Company’s subsidiaries.
On May 24 and May 25, 2022, in connection with the offering of the 2027 Notes, we entered into convertible note hedge transactions ("2027 Note Hedge Transactions") that cover, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock, in the aggregate, at a strike price that initially corresponds to the initial conversion price of the 2027 Notes, subject to adjustment, and are exercisable upon any conversion of the 2027 Notes. Also, on May 24 and May 25, 2022, we entered into privately negotiated warrant transactions ("2027 Warrant Transactions"), whereby we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock. As of September 30, 2024, the warrants under the 2027 Warrant Transactions had a weighted average strike price of $106.31 per share, subject to adjustment, and mature beginning September 2027 through April 2028.
2024 Notes, and Related Note Hedge and Warrant Transactions
On June 3, 2019, we issued $400.0 million in aggregate principal amount of Senior Convertible Notes due in 2024 (the "2024 Notes") that bore interest at a rate of 2.00% per year, payable in cash on June 1 and December 1 of each year, commencing on December 1, 2019, and matured on June 1, 2024. During second quarter 2022, we repurchased $273.8 million in aggregate principal amount of the 2024 Notes in privately negotiated transactions concurrently with the offering of the 2027 Notes. We repaid the remaining $126.2 million in aggregate principal at maturity on June 1, 2024.
On May 29 and May 31, 2019, in connection with the offering of the 2024 Notes, we entered into convertible note hedge transactions (collectively, the "2024 Note Hedge Transactions") that covered, subject to customary anti-dilution adjustments, approximately 4.9 million shares of common stock, in the aggregate, at a strike price that corresponded to the conversion price of the 2024 Notes, subject to adjustment, and were exercisable upon any conversion of the 2024 Notes. On May 29 and May 31, 2019, we also entered into privately negotiated warrant transactions (collectively, the "2024 Warrant Transactions" and, together with the 2024 Note Hedge Transactions, the "2024 Call Spread Transactions"), whereby we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 4.9 million shares of common stock at an initial strike price of approximately $109.43 per share, subject to adjustment.
At maturity on June 1, 2024, the Company issued 0.3 million shares to settle the 2024 Notes that had been converted by holders. This issuance was effectively offset by our receipt of 0.3 million shares from the settlement of the 2024 Note Hedge Transactions. The 2024 Warrants settle during the period September 3, 2024 through December 17, 2024 on a net-share basis. 0.1 million shares have been issued related to the 2024 Warrant Transactions as of September 30, 2024, and warrants to acquire 1.1 million shares of common stock at an initial strike price of approximately $109.43 per share, subject to adjustment, remain outstanding.
The following table reflects the carrying value of our Convertible Notes long-term debt as of September 30, 2024 and December 31, 2023 (in thousands):
September 30, 2024December 31, 2023
3.50% Senior Convertible Notes due 2027
$460,000 $460,000 
2.00% Senior Convertible Notes due 2024
— 126,174 
Less: Deferred financing costs(5,750)(7,422)
Net carrying amount of the Convertible Notes454,250 578,752 
Less: Current portion of long-term debt(454,250)(578,752)
Long-term net carrying amount of the Convertible Notes$— $— 
The following table presents the amount of interest cost recognized, which is included within "Interest expense" in our condensed consolidated statements of income, for the three and nine months ended September 30, 2024 and 2023 relating to the contractual interest coupon and the amortization of deferred financing costs of the Convertible Notes (in thousands):
Three months ended September 30,
20242023
2027 Notes2024 NotesTotal2027 Notes2024 NotesTotal
Contractual coupon interest$4,025 $— $4,025 $4,025 $631 $4,656 
Amortization of deferred financing costs483 — 483 448 147 595 
Total$4,508 $— $4,508 $4,473 $778 $5,251 
Nine months ended September 30,
20242023
2027 Notes2024 NotesTotal2027 Notes2024 NotesTotal
Contractual coupon interest$12,075 $1,059 $13,134 $12,075 $1,893 $13,968 
Amortization of deferred financing costs1,419 252 1,671 1,315 433 1,748 
Total$13,494 $1,311 $14,805 $13,390 $2,326 $15,716 
Technicolor Patent Acquisition Long-Term Debt
On July 30, 2018, we completed our acquisition of the patent licensing business of Technicolor SA ("Technicolor"), a worldwide technology leader in the media and entertainment sector (the "Technicolor Patent Acquisition"). In conjunction with the Technicolor Patent Acquisition, we assumed Technicolor’s rights and obligations under a joint licensing program with Sony relating to digital televisions and standalone computer display monitors, which commenced in 2015 (the "Madison Arrangement"). An affiliate of CPPIB Credit Investments Inc. ("CPPIB Credit"), a wholly owned subsidiary of Canada Pension Plan Investment Board, is a third-party investor in the Madison Arrangement. CPPIB Credit made certain payments to Technicolor and Sony and agreed to contribute cash to fund certain capital reserve obligations under the arrangement in exchange for a percentage of future revenues, specifically through September 11, 2030 in regard to the Technicolor patents.
Upon our assumption of Technicolor’s rights and obligations under the Madison Arrangement, our relationship with CPPIB Credit meets the criteria in ASC 470-10-25 - Sales of Future Revenues or Various Other Measures of Income ("ASC 470"), which relates to cash received from an investor in exchange for a specified percentage or amount of revenue or other measure of income of a particular product line, business segment, trademark, patent, or contractual right for a defined period. Under this guidance, we recognized the fair value of our contingent obligation to CPPIB Credit, as of the acquisition date, as long-term debt in our condensed consolidated balance sheet. This initial fair value measurement was based on the perspective of a market participant and included significant unobservable inputs which are classified as Level 3 inputs within the fair value hierarchy. The fair value of the long-term debt as of September 30, 2024 and December 31, 2023 is disclosed within Note 3, "Cash, Concentration of Credit Risk and Fair Value of Financial Instruments." Our repayment obligations are contingent upon future royalty revenues generated from the Madison Arrangement and there are no minimum or maximum payments under the arrangement.
Under ASC 470, amounts recorded as debt are amortized under the interest method. At each reporting period, we will review the discounted expected future cash flows over the life of the obligation. The Company made an accounting policy election to utilize the catch-up method when there is a change in the estimated future cash flows, whereby we will adjust the carrying amount of the debt to the present value of the revised estimated future cash flows, discounted at the original effective interest rate, with a corresponding adjustment recognized as interest expense within “Interest Expense” in the condensed consolidated statements of income. The effective interest rate as of the acquisition date was approximately 14.5%. This rate represents the discount rate that equates the estimated future cash flows with the fair value of the debt as of the acquisition date and is used to compute the amount of interest to be recognized each period based on the estimated life of the future revenue streams. During the three and nine months ended September 30, 2024, we recognized $0.6 million and $2.2 million, respectively, of interest expense related to this debt, compared to $1.1 million and $2.5 million during the three and nine months ended September 30, 2023, respectively. This was included within “Interest Expense” in the condensed consolidated statements of income. Any future payments made to CPPIB Credit, or additional proceeds received from CPPIB Credit, will decrease or increase the long-term debt balance accordingly. We made $12.9 million in payments to CPPIB Credit during the nine months ended September 30, 2024, and no payments were made during the nine months ended September 30, 2023.
Technicolor Contingent Consideration
As part of the Technicolor Patent Acquisition, we entered into a revenue-sharing arrangement with Technicolor that created a contingent consideration liability. Under the revenue-sharing arrangement, Technicolor receives 42.5% of future cash receipts from new licensing efforts from the Madison Arrangement only, subject to certain conditions and hurdles. As of September 30, 2024, the contingent consideration liability from the revenue-sharing arrangement was deemed not probable and is therefore not reflected within the consolidated financial statements.
v3.24.3
Litigation and Legal Proceedings
 9 Months Ended
Sep. 30, 2024
Gain (Loss) from Litigation Settlement [Abstract]  
LITIGATION AND LEGAL PROCEEDINGS LITIGATION AND LEGAL PROCEEDINGS
ARBITRATIONS AND COURT PROCEEDINGS
Lenovo
In fourth quarter 2024, the Company reached an agreement with Lenovo Group Limited and certain of its subsidiaries (“Lenovo”) to enter into binding arbitration to determine the final terms of a new patent license agreement, which will be effective from January 1, 2024. As part of the agreement to arbitrate, both parties have agreed to dismiss all pending litigations between them.
UK Proceedings
In August 2019, the Company and certain of its subsidiaries filed a claim in the UK High Court against Lenovo. The claim, as amended, alleged infringement of five of the Company’s patents relating to 3G and/or 4G/LTE standards. The Company sought, among other relief, injunctive relief to prevent further infringement of the asserted patents or, in the alternative, a determination of the terms of a FRAND license.
Between 2021 and 2023, three of the Company’s European Patents were found by UK courts to be valid, essential and infringed by Lenovo. In March 2023, the UK High Court issued an order staying all deadlines with respect to the fourth and fifth technical trials.
On March 16, 2023, the UK High Court issued its order regarding judgment in the trial to determine how much Lenovo must pay for a license to the Company’s portfolio of cellular assets, awarding the Company a lump sum of $138.7 million for such license through December 31, 2023. On June 27, 2023, the court issued an order awarding the Company an additional $46.2 million, thus increasing the total award to $184.9 million, which was paid on July 11, 2023. The court also found that the Company should pay a portion of Lenovo’s costs and granted both parties permission to appeal on certain grounds. Both parties appealed certain aspects of the ruling, and in July 2024, the UK Court of Appeal ruled in favor of InterDigital and awarded the Company an additional amount of $55.2 million to a total of approximately $240.1 million. It rejected Lenovo’s appeal in its entirety and confirmed that Lenovo must pay for all of its past sales starting from 2007 through December 31, 2023. The court also found that Lenovo should pay the Company’s costs for the appeal and reduced the costs that Lenovo was awarded from the initial decision. Lenovo sought permission to appeal, and permission to appeal was refused by the UK Court of Appeals. Lenovo filed an application to the UK Supreme Court requesting permission to appeal on August 9, 2024; Lenovo withdrew its application to appeal in October 2024 following entry into the arbitration agreement described above.
On September 24, 2023, Lenovo filed a new claim in the UK High Court, which alleged invalidity of two of the Company’s patents relating to 4G/LTE standards. Lenovo sought, among other relief, a declaration that the patents at issue were invalid, not essential, and not infringed, revocation of the patents at issue, and a declaration that, upon expiration of the current license in 2023, Lenovo is licensed under terms to be determined by the UK High Court through 2028 or, in the alternative, a determination of the terms of a FRAND license. In October 2023, Lenovo filed a request for an order that the Company indicate whether it is prepared to give an unconditional undertaking to enter into a global license on terms set by the UK Court, or failing that, a declaration that the Defendants are unwilling licensors; a hearing was held in December 2023 during which Lenovo agreed to stay its application. The Company filed a jurisdiction challenge in October 2023, and a hearing on such challenge took place in April 2024, following which, the jurisdiction challenge was denied. In November 2023, Lenovo filed an application seeking an expedited FRAND trial and an interim license until a FRAND decision is issued in the UK. A hearing on the interim license was held in February 2024; in March 2024 the UK High Court denied Lenovo’s request for the interim license. A FRAND trial was set for June-July 2025.
District of Delaware Patent Proceedings
In August 2019, the Company and certain of its subsidiaries filed a complaint in the United States District Court for the District of Delaware (the "Delaware District Court") against Lenovo alleging that Lenovo infringes eight of the Company’s U.S. patents by making, using, offering for sale, and/or selling Lenovo wireless devices with 3G and/or 4G LTE capabilities. As relief, InterDigital sought: (a) a declaration that the Company is not in breach of its relevant FRAND commitments with respect to Lenovo; (b) to the extent Lenovo does not agree to negotiate a worldwide patent license, does not agree to enter into binding international arbitration to set the terms of a FRAND license, and does not agree to be bound by the terms to be set by the UK High Court in the separately filed UK proceedings described above, an injunction prohibiting Lenovo from continued infringement; (c) damages, including enhanced damages for willful infringement and supplemental damages; and (d) attorneys’ fees and costs.
In June 2023, the parties requested that the entire case be stayed pending resolution of all appeals in the UK proceedings, and this request was granted.
District of Delaware Antitrust Proceedings
In April 2020, Lenovo and Motorola Mobility LLC filed a complaint in the Delaware District Court against the Company and certain of its subsidiaries, alleging that the Company defendants violated Sections 1 and 2 of the Sherman Act in connection with, among other things, their licensing of 3G and 4G standards essential patents ("SEPs"). The complaint further alleged that the Company defendants have violated their commitment to the ETSI with respect to the licensing of 3G and 4G SEPs on FRAND terms and conditions. The complaint sought, among other things (i) rulings that the Company defendants have violated Sections 1 and 2 of the Sherman Act and are liable for breach of their ETSI FRAND commitments, (ii) a judgment that the plaintiffs are entitled to a license with respect to the Company’s 3G and 4G SEPs on FRAND terms and conditions, and (iii) injunctions against any demand for allegedly excessive royalties or enforcement of the Company defendants’ 3G and 4G U.S. SEPs against the plaintiffs or their customers via patent infringement proceedings.
In June 2020, the Company filed a motion to dismiss Lenovo’s Sherman Act claims with prejudice, and to dismiss Lenovo’s breach of contract claim with leave to re-file as a counterclaim in the Company’s legal proceeding against Lenovo in the Delaware District Court discussed above.
In March 2021, the Delaware District Court dismissed the Sherman Act Section 1 claim without prejudice, denied the motion to dismiss the Sherman Act Section 2 claim, and consolidated the Section 2 and breach of contract claims with Company’s Delaware patent proceeding discussed above.
International Trade Commission and Companion District Court Proceedings
In September 2023, the Company and certain of its subsidiaries filed a complaint in the United States International Trade Commission (the "International Trade Commission") alleging that Lenovo infringes five of the Company’s U.S. patents by making, using, offering for sale, and/or selling certain electronic devices, including smartphones, computers, tablet computers, and components thereof that infringe certain claims of the asserted patents. As relief, the Company sought: (a) a limited exclusion order against Lenovo barring from entry into the United States all of Lenovo’s products that infringe the asserted patents; (b) cease and desist orders prohibiting Lenovo from importing, selling, offering for sale, marketing, advertising, and distributing, infringing products; and (c) a bond during the 60-day Presidential review period. An evidentiary hearing was held in August 2024.
Also in September 2023, the Company and certain of its subsidiaries filed a complaint in the United States District Court for the Eastern District of North Carolina (the "North Carolina District Court") alleging that Lenovo infringes those same five of the Company’s U.S. patents. As relief, the Company sought: (a) a finding that Lenovo is liable for infringement of the asserted patents; (b) an injunction against further infringement; (c) damages, including enhanced damages for willful infringement and supplemental damages; and (d) costs.
Germany Proceedings
In September 2023, the Company filed a complaint with the Munich Regional Court against Lenovo and certain of its affiliates, alleging infringement of a European patent relating to cellular 4G/LTE and/or 5G standards. The Company sought, among other relief, injunctive relief to prevent further infringement of the asserted patents. In May 2024, the Munich Regional Court issued a judgment finding Lenovo infringed the Company’s European patent and that the Company complied with its FRAND obligations while Lenovo did not; the Court ordered Lenovo to cease and desist selling infringing products. The Company served Lenovo with an enforcement note of the judgment in May 2024. Lenovo appealed the judgment and requested a stay of the enforcement of the judgment, and in June 2024, the Munich Regional Court rejected Lenovo’s request.
Oppo, OnePlus and realme
In fourth quarter 2024, the Company entered into a license agreement with Guangdong Oppo Mobile Telecommunications Corp., Ltd. (“Oppo”) and certain of its subsidiaries and affiliates, (collectively, “Oppo Group”). As part of the license agreement, both parties have agreed to dismiss all pending litigations between them.
UK Proceedings
In December 2021, the Company filed a patent infringement claim in the UK High Court against Oppo and certain of its affiliates, OnePlus Technology (Shenzhen) Co., Ltd. (“OnePlus”) and certain of its affiliates, and realme Mobile Telecommunications (Shenzhen) Co., Ltd. (“realme”) and certain of its affiliates, collectively, Oppo Group, alleging infringement of the Company’s European patents relating to cellular 3G, 4G/LTE or 5G standards. The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.
In March 2023, the parties agreed to stay all technical trials. The FRAND trial to determine the royalties to be paid under the license with Oppo was held in March and April 2024; a second hearing was held in September 2024 regarding the parties’ submissions relating to the UK Court of Appeal’s decision in the Lenovo litigation.
India Proceedings
In December 2021, the Company and certain of its subsidiaries filed patent infringement claims in the Delhi High Court in New Delhi, India against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme Mobile Telecommunication (India) Private Limited, alleging infringement of certain of the Company’s Indian patents relating to cellular 3G, 4G/LTE, and/or 5G, and HEVC standards. The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents. In February 2024, the Delhi High Court granted the Company’s application for pro tem security, and Oppo appealed. Evidentiary trial proceedings began in October 2024 and were expected to take place through December 2024.
Germany Proceedings
In December 2021, a subsidiary of the Company filed three patent infringement claims, two in the Munich Regional Court and one in the Mannheim Regional Court, against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme and certain of its affiliates, alleging infringement of certain of the Company’s European patents relating to cellular 3G, 4G/LTE and/or 5G standards. The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents. The Munich Regional Court held hearings in March and December 2023, and in December 2023, the Munich Regional Court issued a decision finding infringement and issuing an injunction against Oppo. Oppo appealed this decision. In March and November 2023, the Munich Regional Court entered stays of the proceedings in respect of specific patents.
China Proceedings
In January 2022, the Company was informed that Oppo had purportedly filed a complaint against the Company in the Guangzhou Intellectual Property Court (the “Guangzhou IP Court”) seeking a determination of a global FRAND royalty rate for the Company’s 3G, 4G, 5G, 802.11 and HEVC SEPs. In May 2022, the Company filed an application challenging, among other things, process of service and the jurisdiction of the Guangzhou IP Court. The Guangzhou IP Court denied the application, and the Company appealed that decision. The Supreme People’s Court denied the appeal, and an initial evidentiary hearing was held in October 2023.
Spain Proceedings
In March 2022, a subsidiary of the Company filed patent infringement claims in the Barcelona Commercial Courts against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme and certain of its affiliates. The Company filed an amended complaint in April 2022, alleging infringement of certain of its European patents relating to cellular 3G, 4G/LTE and/or 5G standards. The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents. Evidentiary trial proceedings were scheduled to take place in May 2025.
Samsung
The Company reached an agreement with Samsung Electronics Co. Ltd. (“Samsung”) to enter into binding arbitration to determine the final terms of a renewed patent license agreement to certain of the Company’s patents, which will be effective from January 1, 2023. The Company and Samsung have also agreed not to initiate certain claims against the other during the arbitration. On March 31, 2023, the Company filed a request for arbitration with the International Chamber of Commerce.
On July 21, 2023, the International Chamber of Commerce confirmed the full tribunal for the arbitration. The two-week arbitration hearing was held in July 2024, and we expect a decision by the end of 2024.
Tesla
On December 5, 2023, Tesla and certain of its subsidiaries filed a claim in the UK High Court against the Company and Avanci. The claim alleges invalidity of three of the Company’s patents relating to 5G standards: European Patent (UK) Nos. 3,718,369, 3,566,413, and 3,455,985. Tesla sought, among other relief, a declaration that the patents at issue are invalid, not essential, and not infringed, revocation of the patents at issue, a declaration that the terms of the Avanci 5G Connected Vehicle platform license are not FRAND, and a determination of FRAND terms for a license between Tesla and Avanci covering its Avanci’s 5G Connected Vehicle platform. On March 8, 2024, the Company filed a jurisdiction challenge; the jurisdiction challenge was heard on May 24-25 and June 4, 2024, and on July 15, 2024 the UK High Court issued a judgment dismissing Tesla’s FRAND claims against the Company and Avanci, and maintaining Tesla’s patent claims against the Company. The patent claims against the Company were further stayed by the UK High Court, and a hearing on costs and permission to appeal is scheduled for July 30, 2024. On July 16, 2024, Tesla sought permission to appeal the decision; the Company also sought permission to appeal on two limited grounds conditionally, should Tesla’s request for an appeal be granted. The appeal hearing is scheduled to take place on December 2-3, 2024.
OTHER
We are party to certain other disputes and legal actions in the ordinary course of business, including arbitrations and legal proceedings with licensees regarding the terms of their agreements and the negotiation thereof. We do not currently believe that these matters, even if adversely adjudicated or settled, would have a material adverse effect on our financial condition, results of operations or cash flows. None of the preceding matters have met the requirements for accrual or disclosure of a potential range as of September 30, 2024, except as noted above.
v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
In the nine months ended September 30, 2024 and 2023, the Company had an estimated effective tax rate of 18.4% and 14.7%, respectively. The change in effective tax rate is due to a decrease in the amount of Foreign Derived Intangible Income deduction benefit available to the Company. In addition, the Company is subject to an increase in the Global Intangible Low-Tax Income inclusion derived from the increase in revenue in certain foreign jurisdictions. The effective tax rate in the nine months ended September 30, 2023 was impacted by losses in certain jurisdictions where the Company recorded a valuation allowance against the related tax benefit. Excluding this valuation allowance, our effective tax rate for the nine months ended September 30, 2023 would have been 13.4%. During both the nine months ended September 30, 2024 and 2023, the Company recorded discrete net benefits of $4.3 million and $2.9 million, respectively, primarily related to share-based compensation.
The effective tax rate reported in any given year will continue to be influenced by a variety of factors, including timing differences between the recognition of book and tax revenue, the level of pre-tax income or loss, the foreign vs. domestic classification of the Company’s customers, and any discrete items that may occur.
During the nine months ended September 30, 2024 and 2023, the Company paid approximately $14.5 million and $8.4 million, respectively, in foreign source creditable withholding tax.
v3.24.3
Net Income Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
Basic Earnings Per Share ("EPS") is calculated by dividing net income or loss available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other securities with features that could result in the issuance of common stock were exercised or converted to common stock or resulting from the unvested outstanding restricted stock units ("RSUs"). The following tables reconcile the numerator and the denominator of the basic and diluted net income per share computation (in thousands, except for per share data):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net income applicable to InterDigital, Inc.$34,190 $47,941 $225,506 $174,983 
Weighted-average shares outstanding:
Basic25,149 26,285 25,286 27,259 
Dilutive effect of stock options, RSUs, and warrants
2,446 784 1,389 669 
Dilutive effect of convertible securities
2,439 743 2,084 333 
Diluted30,034 27,812 28,759 28,261 
Earnings per share:
Basic$1.36 $1.82 $8.92 $6.42 
Dilutive effect of stock options, RSUs, and warrants
(0.11)(0.05)(0.40)(0.15)
Dilutive effect of convertible securities
(0.11)(0.05)(0.68)(0.08)
Diluted$1.14 $1.72 $7.84 $6.19 

Shares of common stock issuable upon the exercise or conversion of certain securities have been excluded from our computation of EPS because the strike price or conversion rate, as applicable, of such securities was greater than the average market price of our common stock and, as a result, the effect of such exercise or conversion would have been anti-dilutive. Set forth below are the securities and the weighted average number of shares of common stock underlying such securities that were excluded from our computation of EPS for the periods presented (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Restricted stock units and stock options— 1 1 142 
Warrants6,056 7,488 7,002 7,488 
Total6,056 7,489 7,003 7,630 
Convertible Notes and Warrants
Refer to Note 5, "Obligations," for information about the Company's convertible notes and warrants and related conversion and strike prices. During periods in which the average market price of the Company's common stock is above the applicable conversion price of the Company's convertible notes, or above the strike price of the Company's outstanding warrants, the impact of conversion or exercise, as applicable, would be dilutive and such dilutive effect is reflected in diluted EPS. As a result, in periods where the average market price of the Company's common stock is above the conversion price or strike price, as applicable, under the if-converted method, the Company calculates the number of shares issuable under the terms of the convertible notes and the warrants based on the average market price of the stock during the period, and includes that number in the total diluted shares outstanding for the period.
v3.24.3
Other Income, Net
 9 Months Ended
Sep. 30, 2024
Other Income and Expenses [Abstract]  
OTHER INCOME, NET OTHER INCOME, NET
The amounts included in "Other income, net" in the condensed consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Interest and investment income$9,175 $11,763 $31,078 $33,697 
Other3,379 2,962 2,405 8,606 
Other income, net$12,554 $14,725 $33,483 $42,303 
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure                
Net income attributable to InterDigital, Inc. $ 34,190 $ 109,664 $ 81,652 $ 47,941 $ 21,783 $ 105,259 $ 225,506 $ 174,983
v3.24.3
Insider Trading Arrangements
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
During the three months ended September 30, 2024, none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement”, as each term is defined in Item 408(a) of Regulation S-K.
Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
v3.24.3
Basis of Presentation (Policies)
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, accordingly, do not include all of the detailed schedules, information and notes necessary to state fairly the financial condition, results of operations and cash flows in conformity with United States generally accepted accounting principles (“GAAP”). The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP for year-end financial statements. Therefore, these financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (our “2023 Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”) on February 15, 2024. Definitions of capitalized terms not defined herein appear within our 2023 Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. We have one reportable segment.
Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
New Accounting Guidance
Accounting Standards Update: Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in the ASU require disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.
Accounting Standards Update: Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU enhance income tax disclosures, primarily through standardization, disaggregation of rate reconciliation categories, and income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.
v3.24.3
Basis of Presentation (Tables)
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of supplemental cash flow information
The following table presents additional supplemental cash flow information for the nine months ended September 30, 2024 and 2023 (in thousands):
Nine Months Ended September 30,
Supplemental cash flow information:20242023
Interest paid$9,311 $9,312 
Income taxes paid, including foreign withholding taxes37,269 30,117 
Non-cash investing and financing activities:
Settlement of the 2024 Hedge Transactions
37,120 — 
Dividend payable11,366 10,348 
Right-of-use assets obtained in exchange of operating lease liabilities2,023 93 
Accrued capitalized patent costs and property and equipment purchases(2,261)334 
Unsettled repurchase of common stock— 1,853 
v3.24.3
Revenue (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregation of revenue
The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30,
 20242023
Increase/(Decrease)
Recurring revenues:
Smartphone$74,184 $88,376 $(14,192)(16)%
CE, IoT/Auto23,830 15,659 8,171 52 %
Other620 441 179 41 %
Total recurring revenues98,634 104,476 (5,842)(6)%
Catch-up revenues a
30,045 35,630 (5,585)(16)%
Total revenues$128,679 $140,106 $(11,427)(8)%
Nine Months Ended September 30,
 20242023
Increase/(Decrease)
Recurring revenues:
Smartphone$221,738 $260,882 $(39,144)(15)%
CE, IoT/Auto67,824 43,177 24,647 57 %
Other1,878 1,063 815 77 %
Total recurring revenues291,440 305,122 (13,682)(4)%
Catch-up revenues a
324,274 138,948 185,326 133 %
Total revenues$615,714 $444,070 $171,644 39 %
(a)    Catch-up revenues are comprised of past patent royalties and revenues from static fixed-fee agreements.
Schedule of contracted revenue
Based on contracts signed and committed as of September 30, 2024, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):
Revenue (a)
Remainder of 2024$84,979 
2025330,439 
2026237,275 
2027227,858 
2028215,821 
Thereafter265,882 
Total Revenue$1,362,254 
(a)    This table includes estimated revenue related to our Samsung arbitration. In accordance with ASC 606, these estimates are limited to the amount of revenue we expect to recognize only to the extent it is probable that a subsequent change in the estimate would not result in a significant revenue reversal.
v3.24.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of cash and cash equivalents The following table provides a reconciliation of total cash, cash equivalents and restricted cash as of September 30, 2024, December 31, 2023 and September 30, 2023 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
 September 30,December 31,September 30,
 202420232023
Cash and cash equivalents$401,090 $437,076 $518,483 
Restricted cash included within prepaid and other current assets9,690 5,885 7,229 
Total cash, cash equivalents, and restricted cash
$410,780 $442,961 $525,712 
Schedule of restricted cash and cash equivalents The following table provides a reconciliation of total cash, cash equivalents and restricted cash as of September 30, 2024, December 31, 2023 and September 30, 2023 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
 September 30,December 31,September 30,
 202420232023
Cash and cash equivalents$401,090 $437,076 $518,483 
Restricted cash included within prepaid and other current assets9,690 5,885 7,229 
Total cash, cash equivalents, and restricted cash
$410,780 $442,961 $525,712 
Schedule of fair value on a recurring basis Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of September 30, 2024 and December 31, 2023 (in thousands):
 Fair Value as of September 30, 2024
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$400,422 $— $— $400,422 
Commercial paper— 95,932 — 95,932 
U.S. government securities— 192,507 — 192,507 
Corporate bonds, asset backed and other securities (c)
— 134,039 — 134,039 
  Total$400,422 $422,478 $— $822,900 
 Fair Value as of December 31, 2023
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$430,707 $— $— $430,707 
Commercial paper (b)
— 174,991 — 174,991 
U.S. government securities— 256,850 — 256,850 
Corporate bonds, asset backed and other securities (c)
— 149,693 — 149,693 
  Total$430,707 $581,534 $— $1,012,241 
______________________________
(a)Primarily included within cash and cash equivalents.
(b)As of December 31, 2023, $5.7 million of commercial paper was included within cash and cash equivalents.
(c)As of September 30, 2024 and December 31, 2023, $10.4 million and $6.5 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively.
Schedule of aggregate fair value The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.
September 30, 2024December 31, 2023
Principal
Amount		Carrying
Value		Fair
Value		Principal
Amount		Carrying
Value		Fair
Value
2027 Senior Convertible Long-Term Debt$460,000 $454,250 $855,554 $460,000 $452,830 $677,230 
2024 Senior Convertible Long-Term Debt$— $— $— $126,174 $125,922 $171,130 
The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.
September 30, 2024December 31, 2023
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Technicolor Patent Acquisition Long-Term Debt$18,302 $16,584 $29,019 $28,859 
v3.24.3
Other Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of prepaid and other current assets
The amounts included in "Prepaid and other current assets" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Deposits
$40,643 $— 
Prepaid assets35,019 9,353 
Tax receivables25,257 19,835 
Restricted cash9,690 5,885 
Other current assets17,497 8,903 
Total Prepaid and other current assets$128,106 $43,976 
Schedule of other non-current assets
The amounts included in "Other non-current assets, net" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Tax receivables$87,331 $76,740 
Goodwill22,421 22,421 
Long-term investments20,667 31,895 
Right-of-use assets15,840 15,746 
Other non-current assets4,177 2,854 
Total Other non-current assets, net$150,436 $149,656 
Schedule of other accrued expenses
The amounts included in "Other accrued expenses" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Accrued legal fees$20,616 $10,338 
Customer deposit— 76,100 
Other accrued expenses21,673 11,604 
Total Other accrued expenses$42,289 $98,042 
Schedule of other long-term liabilities
The amounts included in "Other long-term liabilities" in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):
September 30, 2024December 31, 2023
Deferred compensation liabilities$19,560 $18,413 
Operating lease liabilities16,819 17,385 
Other long-term liabilities19,696 19,454 
Total Other long-term liabilities$56,075 $55,252 
v3.24.3
Obligations (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of carrying value of the 2024 Notes and 2020 Notes
The following table reflects the carrying value of our Convertible Notes long-term debt as of September 30, 2024 and December 31, 2023 (in thousands):
September 30, 2024December 31, 2023
3.50% Senior Convertible Notes due 2027
$460,000 $460,000 
2.00% Senior Convertible Notes due 2024
— 126,174 
Less: Deferred financing costs(5,750)(7,422)
Net carrying amount of the Convertible Notes454,250 578,752 
Less: Current portion of long-term debt(454,250)(578,752)
Long-term net carrying amount of the Convertible Notes$— $— 
Schedule of accretion of the debt discount, and the amortization of financing costs
The following table presents the amount of interest cost recognized, which is included within "Interest expense" in our condensed consolidated statements of income, for the three and nine months ended September 30, 2024 and 2023 relating to the contractual interest coupon and the amortization of deferred financing costs of the Convertible Notes (in thousands):
Three months ended September 30,
20242023
2027 Notes2024 NotesTotal2027 Notes2024 NotesTotal
Contractual coupon interest$4,025 $— $4,025 $4,025 $631 $4,656 
Amortization of deferred financing costs483 — 483 448 147 595 
Total$4,508 $— $4,508 $4,473 $778 $5,251 
Nine months ended September 30,
20242023
2027 Notes2024 NotesTotal2027 Notes2024 NotesTotal
Contractual coupon interest$12,075 $1,059 $13,134 $12,075 $1,893 $13,968 
Amortization of deferred financing costs1,419 252 1,671 1,315 433 1,748 
Total$13,494 $1,311 $14,805 $13,390 $2,326 $15,716 
v3.24.3
Net Income Per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of numerator and the denominator of the basic and diluted The following tables reconcile the numerator and the denominator of the basic and diluted net income per share computation (in thousands, except for per share data):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net income applicable to InterDigital, Inc.$34,190 $47,941 $225,506 $174,983 
Weighted-average shares outstanding:
Basic25,149 26,285 25,286 27,259 
Dilutive effect of stock options, RSUs, and warrants
2,446 784 1,389 669 
Dilutive effect of convertible securities
2,439 743 2,084 333 
Diluted30,034 27,812 28,759 28,261 
Earnings per share:
Basic$1.36 $1.82 $8.92 $6.42 
Dilutive effect of stock options, RSUs, and warrants
(0.11)(0.05)(0.40)(0.15)
Dilutive effect of convertible securities
(0.11)(0.05)(0.68)(0.08)
Diluted$1.14 $1.72 $7.84 $6.19 
Schedule of excluded from our computation of EPS Set forth below are the securities and the weighted average number of shares of common stock underlying such securities that were excluded from our computation of EPS for the periods presented (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Restricted stock units and stock options— 1 1 142 
Warrants6,056 7,488 7,002 7,488 
Total6,056 7,489 7,003 7,630 
v3.24.3
Other Income, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Other Income and Expenses [Abstract]  
Schedule of other income (expense), net
The amounts included in "Other income, net" in the condensed consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Interest and investment income$9,175 $11,763 $31,078 $33,697 
Other3,379 2,962 2,405 8,606 
Other income, net$12,554 $14,725 $33,483 $42,303 
v3.24.3
Basis of Presentation - Narrative (Details)
 9 Months Ended
Sep. 30, 2024
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 1
v3.24.3
Basis of Presentation - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Supplemental cash flow information:      
Interest paid $ 9,311 $ 9,312  
Income taxes paid, including foreign withholding taxes 37,269 30,117  
Non-cash investing and financing activities:      
Settlement of the 2024 Hedge Transactions 37,120 0  
Dividend payable 11,366 10,348 $ 10,226
Right-of-use assets obtained in exchange of operating lease liabilities 2,023 93  
Accrued capitalized patent costs and property and equipment purchases (2,261) 334  
Unsettled repurchase of common stock $ 0 $ 1,853  
v3.24.3
Revenue - Disaggregated Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Revenue $ 128,679 $ 140,106 $ 615,714 $ 444,070
Increase/(decrease) in disaggregated revenue $ (11,427)   $ 171,644  
Percentage increase/(decrease) in disaggregated revenue (8.00%)   39.00%  
Total recurring revenues        
Disaggregation of Revenue [Line Items]        
Revenue $ 98,634 104,476 $ 291,440 305,122
Increase/(decrease) in disaggregated revenue $ (5,842)   $ (13,682)  
Percentage increase/(decrease) in disaggregated revenue (6.00%)   (4.00%)  
Smartphone        
Disaggregation of Revenue [Line Items]        
Revenue $ 74,184 88,376 $ 221,738 260,882
Increase/(decrease) in disaggregated revenue $ (14,192)   $ (39,144)  
Percentage increase/(decrease) in disaggregated revenue (16.00%)   (15.00%)  
CE, IoT/Auto        
Disaggregation of Revenue [Line Items]        
Revenue $ 23,830 15,659 $ 67,824 43,177
Increase/(decrease) in disaggregated revenue $ 8,171   $ 24,647  
Percentage increase/(decrease) in disaggregated revenue 52.00%   57.00%  
Other        
Disaggregation of Revenue [Line Items]        
Revenue $ 620 441 $ 1,878 1,063
Increase/(decrease) in disaggregated revenue $ 179   $ 815  
Percentage increase/(decrease) in disaggregated revenue 41.00%   77.00%  
Catch-up revenues        
Disaggregation of Revenue [Line Items]        
Revenue $ 30,045 $ 35,630 $ 324,274 $ 138,948
Increase/(decrease) in disaggregated revenue $ (5,585)   $ 185,326  
Percentage increase/(decrease) in disaggregated revenue (16.00%)   133.00%  
v3.24.3
Revenue - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Revenue recognized that had been included in deferred revenue as of the beginning of the period $ 119.8  
Contract assets, current $ 161.1 $ 94.6
v3.24.3
Revenue - Remaining Performance Obligation (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 1,362,254
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 84,979
Revenue, remaining performance obligation, expected timing of satisfaction, period 3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 330,439
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 237,275
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 227,858
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 215,821
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 265,882
Revenue, remaining performance obligation, expected timing of satisfaction, period
v3.24.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]        
Cash and cash equivalents $ 401,090 $ 437,076 $ 518,483  
Restricted cash included within prepaid and other current assets 9,690 5,885 7,229  
Total cash, cash equivalents, and restricted cash $ 410,780 $ 442,961 $ 525,712 $ 703,161
v3.24.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Investment in Other Entities          
Concentration Risk [Line Items]          
Gain (loss) on investments $ 0.3 $ 6.1 $ 1.8 $ 9.4  
Patents          
Concentration Risk [Line Items]          
Patent impairment charges       $ 2.5  
Accounts Receivable | Licensee Concentration Risk | Four Largest Licensees          
Concentration Risk [Line Items]          
Accounts receivable percentage     85.00%   84.00%
v3.24.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Fair Value of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Sep. 30, 2023
Assets:      
Total $ 822,900 $ 1,012,241  
Amount of commercial paper included in cash and cash equivalents 401,090 437,076 $ 518,483
U.S. government securities      
Assets:      
Securities 192,507 256,850  
Corporate bonds, asset backed and other securities      
Assets:      
Securities 134,039 149,693  
Money market and demand accounts      
Assets:      
Cash and cash equivalents 400,422 430,707  
Commercial Paper      
Assets:      
Cash and cash equivalents 95,932 174,991  
Amount of commercial paper included in cash and cash equivalents   5,700  
Corporate bonds, asset backed and other securities      
Assets:      
Amount of commercial paper included in cash and cash equivalents 10,400 6,500  
Level 1      
Assets:      
Total 400,422 430,707  
Level 1 | U.S. government securities      
Assets:      
Securities 0 0  
Level 1 | Corporate bonds, asset backed and other securities      
Assets:      
Securities 0 0  
Level 1 | Money market and demand accounts      
Assets:      
Cash and cash equivalents 400,422 430,707  
Level 1 | Commercial Paper      
Assets:      
Cash and cash equivalents 0 0  
Level 2      
Assets:      
Total 422,478 581,534  
Level 2 | U.S. government securities      
Assets:      
Securities 192,507 256,850  
Level 2 | Corporate bonds, asset backed and other securities      
Assets:      
Securities 134,039 149,693  
Level 2 | Money market and demand accounts      
Assets:      
Cash and cash equivalents 0 0  
Level 2 | Commercial Paper      
Assets:      
Cash and cash equivalents 95,932 174,991  
Level 3      
Assets:      
Total 0 0  
Level 3 | U.S. government securities      
Assets:      
Securities 0 0  
Level 3 | Corporate bonds, asset backed and other securities      
Assets:      
Securities 0 0  
Level 3 | Money market and demand accounts      
Assets:      
Cash and cash equivalents 0 0  
Level 3 | Commercial Paper      
Assets:      
Cash and cash equivalents $ 0 $ 0  
v3.24.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Technicolor Patent Acquisition Long-Term Debt    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying Value $ 18,302 $ 29,019
Fair Value 16,584 28,859
Convertible Debt | 3.50% Senior Convertible Notes due 2027    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Principal Amount 460,000 460,000
Carrying Value 454,250 452,830
Fair Value 855,554 677,230
Convertible Debt | 2.00% Senior Convertible Notes due 2024    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Principal Amount 0 126,174
Carrying Value 0 125,922
Fair Value $ 0 $ 171,130
v3.24.3
Other Assets and Liabilities - Prepaid and Other Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Deposits $ 40,643 $ 0  
Prepaid assets 35,019 9,353  
Tax receivables 25,257 19,835  
Restricted cash 9,690 5,885 $ 7,229
Other current assets 17,497 8,903  
Total Prepaid and other current assets $ 128,106 $ 43,976  
v3.24.3
Other Assets and Liabilities - Other Non-Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Tax receivables $ 87,331 $ 76,740
Goodwill 22,421 22,421
Long-term investments 20,667 31,895
Right-of-use assets 15,840 15,746
Other non-current assets 4,177 2,854
Total Other non-current assets, net $ 150,436 $ 149,656
v3.24.3
Other Assets and Liabilities - Schedule of Other Accrued Expenses (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Accrued legal fees $ 20,616 $ 10,338
Customer deposit 0 76,100
Other accrued expenses 21,673 11,604
Total Other accrued expenses $ 42,289 $ 98,042
v3.24.3
Other Assets and Liabilities - Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Deferred compensation liabilities $ 19,560 $ 18,413
Operating lease liabilities 16,819 17,385
Other long-term liabilities 19,696 19,454
Total Other long-term liabilities $ 56,075 $ 55,252
v3.24.3
Obligations - 2027 and 2024 Senior Convertible Notes, and Related Note Hedge and Warrant Transactions (Details)
$ / shares in Units, shares in Millions, $ in Millions
 9 Months Ended
Jun. 01, 2024
USD ($)
shares
May 27, 2022
USD ($)
$ / shares
Sep. 30, 2024
$ / shares
shares
Jun. 30, 2022
USD ($)
May 25, 2022
shares
Jun. 03, 2019
USD ($)
May 31, 2019
$ / shares
shares
Debt Instrument [Line Items]              
Number of securities (in shares)         5.9    
Stock Issued, settlement of convertible debt (in shares) 0.3            
3.50% Senior Convertible Notes due 2027 | 2024 Senior Convertible Long-Term Debt              
Debt Instrument [Line Items]              
Principal amount | $   $ 460.0          
Interest rate (as a percent)   3.50% 3.50%        
Proceeds from debt | $   $ 450.0          
Debt instrument convertible ratio   0.0129041          
Conversion price (in USD per share) | $ / shares   $ 77.49          
Anti-dilution adjustments (in shares)         5.9    
Exercise price (in USD per share) | $ / shares     $ 106.31        
2.00% Senior Convertible Notes due 2024 | 2024 Senior Convertible Long-Term Debt              
Debt Instrument [Line Items]              
Principal amount | $           $ 400.0  
Interest rate (as a percent)     2.00%     2.00%  
Repurchase amount | $       $ 273.8      
Repayments of debt | $ $ 126.2            
2024 Note Hedge Transaction | 2024 Senior Convertible Long-Term Debt              
Debt Instrument [Line Items]              
Anti-dilution adjustments (in shares)             4.9
Stock received, settlement of underlying derivative (in shares) 0.3            
2024 Warrant Transactions              
Debt Instrument [Line Items]              
Number of securities (in shares)     1.1       4.9
Exercise price (in USD per share) | $ / shares     $ 109.43       $ 109.43
Stock issued related to warrants (in shares)     0.1        
v3.24.3
Obligations - Carrying Value of 2027 Notes and 2024 Notes (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
May 27, 2022
Jun. 03, 2019
Debt Instrument [Line Items]        
Less: Current portion of long-term debt $ (454,250) $ (578,752)    
Long-term net carrying amount of the Convertible Notes 18,302 29,019    
Convertible Debt        
Debt Instrument [Line Items]        
Less: Deferred financing costs (5,750) (7,422)    
Net carrying amount of the Convertible Notes 454,250 578,752    
Less: Current portion of long-term debt (454,250) (578,752)    
Long-term net carrying amount of the Convertible Notes 0 0    
Convertible Debt | 3.50% Senior Convertible Notes due 2027        
Debt Instrument [Line Items]        
Long-term debt, gross $ 460,000 460,000    
Interest rate (as a percent) 3.50%   3.50%  
Convertible Debt | 2.00% Senior Convertible Notes due 2024        
Debt Instrument [Line Items]        
Long-term debt, gross $ 0 $ 126,174    
Interest rate (as a percent) 2.00%     2.00%
v3.24.3
Obligations - Accretion of Debt Discount and Amortization of Financing Costs (Details) - Convertible Debt - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Debt Instrument [Line Items]        
Contractual coupon interest $ 4,025 $ 4,656 $ 13,134 $ 13,968
Amortization of deferred financing costs 483 595 1,671 1,748
Total 4,508 5,251 14,805 15,716
3.50% Senior Convertible Notes due 2027        
Debt Instrument [Line Items]        
Contractual coupon interest 4,025 4,025 12,075 12,075
Amortization of deferred financing costs 483 448 1,419 1,315
Total 4,508 4,473 13,494 13,390
2.00% Senior Convertible Notes due 2024        
Debt Instrument [Line Items]        
Contractual coupon interest 0 631 1,059 1,893
Amortization of deferred financing costs 0 147 252 433
Total $ 0 $ 778 $ 1,311 $ 2,326
v3.24.3
Obligations - Technicolor Patent Acquisition Long-Term Debt (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Business Acquisition [Line Items]        
Payment to CPPIB     $ 12.9 $ 0.0
Technicolor        
Business Acquisition [Line Items]        
Effective interest rate percentage 14.50%   14.50%  
Interest debt expense $ 0.6 $ 1.1 $ 2.2 $ 2.5
Receive future cash receipts percentage 42.50%   42.50%  
v3.24.3
Litigation and Legal Proceedings (Details)
$ in Millions
 1 Months Ended
Jun. 27, 2023
USD ($)
Mar. 16, 2023
USD ($)
Jul. 31, 2024
USD ($)
Dec. 31, 2023
claim
Dec. 05, 2023
patent
Sep. 30, 2023
patent
Sep. 24, 2023
patent
Dec. 31, 2021
patent
Aug. 31, 2019
patent
Aug. 27, 2019
patent
U.K. Proceedings                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement             2     5
Amount awarded | $ $ 184.9 $ 138.7 $ 240.1              
Additional amount awarded | $ $ 46.2   $ 55.2              
Number claims filed by counterparty | claim       3            
District of Delaware Proceedings                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement                 8  
International Trade Commission Proceedings                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement           5        
North Carolina District Court                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement           5        
German Proceedings                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement               3    
German Proceedings, Munich                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement               2    
German Proceedings, Mannheim                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement               1    
Tesla Proceedings                    
Loss Contingencies [Line Items]                    
Number of patents alleged infringement         3          
v3.24.3
Income Taxes (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Income Tax Contingency [Line Items]    
Effective tax rate 18.40% 14.70%
Effective tax rate before valuation allowance is included (as percent)   13.40%
Discrete tax benefit $ 4,300 $ 2,900
Income taxes paid, including foreign withholding taxes 37,269 30,117
Foreign Country    
Income Tax Contingency [Line Items]    
Income taxes paid, including foreign withholding taxes $ 14,500 $ 8,400
v3.24.3
Net Income Per Share - Numerator and Denominator of Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Earnings Per Share [Abstract]                
Net income applicable to InterDigital, Inc. $ 34,190 $ 109,664 $ 81,652 $ 47,941 $ 21,783 $ 105,259 $ 225,506 $ 174,983
Weighted-average shares outstanding:                
Basic (in shares) 25,149     26,285     25,286 27,259
Dilutive effect of stock options, RSUs, and warrants (in shares) 2,446     784     1,389 669
Dilutive effect of convertible securities (in shares) 2,439     743     2,084 333
Diluted (in shares) 30,034     27,812     28,759 28,261
Earnings per share:                
Basic (in USD per share) $ 1.36     $ 1.82     $ 8.92 $ 6.42
Dilutive effect of stock options, RSUs, and warrants (in USD per share) (0.11)     (0.05)     (0.40) (0.15)
Dilutive effect of convertible securities (in USD per share) (0.11)     (0.05)     (0.68) (0.08)
Diluted (in USD per share) $ 1.14     $ 1.72     $ 7.84 $ 6.19
v3.24.3
Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 6,056 7,489 7,003 7,630
Restricted stock units and stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 0 1 1 142
Warrants        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 6,056 7,488 7,002 7,488
v3.24.3
Other Income, Net - Other Income, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Other Income and Expenses [Abstract]        
Interest and investment income $ 9,175 $ 11,763 $ 31,078 $ 33,697
Other 3,379 2,962 2,405 8,606
Other income, net $ 12,554 $ 14,725 $ 33,483 $ 42,303