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Share Name | Share Symbol | Market | Type |
---|---|---|---|
InterDigital Inc | NASDAQ:IDCC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.88 | -0.89% | 97.85 | 97.85 | 97.89 | 99.32 | 97.59 | 98.43 | 138,480 | 18:06:11 |
|
☑
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
|
82-4936666
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
IDCC
|
NASDAQ Stock Market LLC
|
Large accelerated filer
|
☑
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
Common Stock, par value $0.01 per share
|
31,132,944
|
Title of Class
|
Outstanding at October 29, 2019
|
|
|
|
|
PAGES
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
|
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
|
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
Patent licensing royalties
|
$
|
68,049
|
|
|
$
|
74,045
|
|
|
$
|
207,994
|
|
|
$
|
230,018
|
|
|
Technology solutions
|
3,724
|
|
|
1,034
|
|
|
7,794
|
|
|
2,060
|
|
|
||||
Patent sales
|
750
|
|
|
—
|
|
|
975
|
|
|
—
|
|
|
||||
|
72,523
|
|
|
75,079
|
|
|
216,763
|
|
|
232,078
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
||||||||
Patent administration and licensing
|
34,772
|
|
|
32,077
|
|
|
108,196
|
|
|
85,480
|
|
|
||||
Development
|
20,506
|
|
|
17,276
|
|
|
56,028
|
|
|
49,279
|
|
|
||||
Selling, general and administrative
|
13,471
|
|
|
12,806
|
|
|
40,000
|
|
|
38,569
|
|
|
||||
|
68,749
|
|
|
62,159
|
|
|
204,224
|
|
|
173,328
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
3,774
|
|
|
12,920
|
|
|
12,539
|
|
|
58,750
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INTEREST EXPENSE
|
(10,920
|
)
|
|
(9,039
|
)
|
|
(30,305
|
)
|
|
(27,242
|
)
|
|
||||
OTHER INCOME (EXPENSE), NET
|
7,803
|
|
|
(4,914
|
)
|
|
23,772
|
|
|
2,106
|
|
|
||||
Income (loss) before income taxes
|
657
|
|
|
(1,033
|
)
|
|
6,006
|
|
|
33,614
|
|
|
||||
INCOME TAX BENEFIT (PROVISION)
|
178
|
|
|
21,143
|
|
|
(3,007
|
)
|
|
25,001
|
|
|
||||
NET INCOME
|
$
|
835
|
|
|
$
|
20,110
|
|
|
$
|
2,999
|
|
|
$
|
58,615
|
|
|
Net loss attributable to noncontrolling interest
|
(1,399
|
)
|
|
(1,642
|
)
|
|
(4,175
|
)
|
|
(4,333
|
)
|
|
||||
NET INCOME ATTRIBUTABLE TO INTERDIGITAL, INC.
|
$
|
2,234
|
|
|
$
|
21,752
|
|
|
$
|
7,174
|
|
|
$
|
62,948
|
|
|
NET INCOME PER COMMON SHARE — BASIC
|
$
|
0.07
|
|
|
$
|
0.63
|
|
|
$
|
0.23
|
|
|
$
|
1.81
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — BASIC
|
31,130
|
|
|
34,651
|
|
|
31,757
|
|
|
34,687
|
|
|
||||
NET INCOME PER COMMON SHARE — DILUTED
|
$
|
0.07
|
|
|
$
|
0.61
|
|
|
$
|
0.22
|
|
|
$
|
1.77
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — DILUTED
|
31,308
|
|
|
35,607
|
|
|
32,010
|
|
|
35,614
|
|
|
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
|
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
835
|
|
|
$
|
20,110
|
|
|
$
|
2,999
|
|
|
$
|
58,615
|
|
Unrealized gain (loss) on investments, net of tax
|
245
|
|
|
467
|
|
|
2,366
|
|
|
(904
|
)
|
||||
Comprehensive income
|
$
|
1,080
|
|
|
$
|
20,577
|
|
|
$
|
5,365
|
|
|
$
|
57,711
|
|
Comprehensive loss attributable to noncontrolling interest
|
(1,399
|
)
|
|
(1,642
|
)
|
|
(4,175
|
)
|
|
(4,333
|
)
|
||||
Total comprehensive income attributable to InterDigital, Inc.
|
$
|
2,479
|
|
|
$
|
22,219
|
|
|
$
|
9,540
|
|
|
$
|
62,044
|
|
|
|
|
|
|
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Common Stock
|
|
Additional
Paid-In Capital
|
|
Retained Earnings
|
|
|
Treasury Stock
|
|
Non-Controlling
Interest
|
|
Total
Shareholders'
Equity
|
|||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
BALANCE, DECEMBER 31, 2017
|
70,749
|
|
|
$
|
707
|
|
|
$
|
680,040
|
|
|
$
|
1,257,632
|
|
|
$
|
(2,083
|
)
|
|
36,127
|
|
|
$
|
(1,072,488
|
)
|
|
$
|
9,340
|
|
|
$
|
873,148
|
|
Cumulative effect of change in accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
161,701
|
|
|
(449
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,252
|
|
|||||||
Net income attributable to InterDigital, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
30,230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,230
|
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,501
|
)
|
|
(1,501
|
)
|
|||||||
Net change in unrealized gain (loss) on short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,747
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,747
|
)
|
|||||||
Dividends declared ($0.35 per share)
|
—
|
|
|
—
|
|
|
115
|
|
|
(12,280
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,165
|
)
|
|||||||
Issuance of common stock, net
|
208
|
|
|
2
|
|
|
(8,279
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,277
|
)
|
|||||||
Amortization of unearned compensation
|
—
|
|
|
—
|
|
|
816
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
816
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
(6,024
|
)
|
|
—
|
|
|
(6,024
|
)
|
|||||||
BALANCE, MARCH 31, 2018
|
70,957
|
|
|
$
|
709
|
|
|
$
|
672,692
|
|
|
$
|
1,437,283
|
|
|
$
|
(4,279
|
)
|
|
36,211
|
|
|
$
|
(1,078,512
|
)
|
|
$
|
7,839
|
|
|
$
|
1,035,732
|
|
Net income attributable to InterDigital, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
10,966
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,966
|
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,190
|
)
|
|
(1,190
|
)
|
|||||||
Net change in unrealized gain (loss) on short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|||||||
Dividends declared ($0.35 per share)
|
—
|
|
|
—
|
|
|
102
|
|
|
(12,255
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,153
|
)
|
|||||||
Exercise of common stock options
|
90
|
|
|
1
|
|
|
3,930
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,931
|
|
|||||||
Issuance of common stock, net
|
12
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|||||||
Amortization of unearned compensation
|
—
|
|
|
—
|
|
|
1,821
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,821
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
(3,148
|
)
|
|
—
|
|
|
(3,148
|
)
|
|||||||
BALANCE, JUNE 30, 2018
|
71,059
|
|
|
$
|
710
|
|
|
$
|
678,434
|
|
|
$
|
1,435,994
|
|
|
$
|
(3,903
|
)
|
|
36,251
|
|
|
$
|
(1,081,660
|
)
|
|
$
|
6,649
|
|
|
$
|
1,036,224
|
|
Net income attributable to InterDigital, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
21,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,752
|
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,642
|
)
|
|
(1,642
|
)
|
|||||||
Net change in unrealized gain (loss) on short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|||||||
Dividends declared ($0.35 per share)
|
—
|
|
|
—
|
|
|
127
|
|
|
(12,124
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,997
|
)
|
|||||||
Exercise of common stock options
|
56
|
|
|
1
|
|
|
2,431
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,432
|
|
|||||||
Issuance of common stock, net
|
2
|
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|||||||
Amortization of unearned compensation
|
—
|
|
|
—
|
|
|
2,239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,239
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
424
|
|
|
(34,335
|
)
|
|
—
|
|
|
(34,335
|
)
|
|||||||
BALANCE, SEPTEMBER 30, 2018
|
71,117
|
|
|
$
|
711
|
|
|
$
|
683,140
|
|
|
$
|
1,445,622
|
|
|
$
|
(3,436
|
)
|
|
36,675
|
|
|
$
|
(1,115,995
|
)
|
|
$
|
5,007
|
|
|
$
|
1,015,049
|
|
|
|
|
|
|
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Common Stock
|
|
Additional
Paid-In Capital
|
|
Retained Earnings
|
|
|
Treasury Stock
|
|
Non-Controlling
Interest
|
|
Total
Shareholders'
Equity
|
|||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
BALANCE, DECEMBER 31, 2018
|
71,134
|
|
|
$
|
711
|
|
|
$
|
685,512
|
|
|
$
|
1,435,970
|
|
|
$
|
(2,471
|
)
|
|
37,605
|
|
|
$
|
(1,182,993
|
)
|
|
$
|
1,284
|
|
|
$
|
938,013
|
|
Net loss attributable to InterDigital, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,803
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,803
|
)
|
|||||||
Proceeds from and increases in noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,834
|
|
|
12,834
|
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,411
|
)
|
|
(1,411
|
)
|
|||||||
Net change in unrealized gain (loss) on short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,045
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,045
|
|
|||||||
Dividends declared ($0.35 per share)
|
—
|
|
|
—
|
|
|
103
|
|
|
(11,283
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,180
|
)
|
|||||||
Exercise of common stock options
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Issuance of common stock, net
|
116
|
|
|
1
|
|
|
(4,098
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,097
|
)
|
|||||||
Amortization of unearned compensation
|
—
|
|
|
—
|
|
|
2,096
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,096
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,585
|
|
|
(108,986
|
)
|
|
—
|
|
|
(108,986
|
)
|
|||||||
BALANCE, MARCH 31, 2019
|
71,250
|
|
|
$
|
712
|
|
|
$
|
683,615
|
|
|
$
|
1,421,884
|
|
|
$
|
(1,426
|
)
|
|
39,190
|
|
|
$
|
(1,291,979
|
)
|
|
$
|
12,707
|
|
|
$
|
825,513
|
|
Net income attributable to InterDigital, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
7,743
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,743
|
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,365
|
)
|
|
(1,365
|
)
|
|||||||
Net change in unrealized gain (loss) on short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,076
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,076
|
|
|||||||
Dividends declared ($0.35 per share)
|
—
|
|
|
—
|
|
|
104
|
|
|
(10,999
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,895
|
)
|
|||||||
Issuance of common stock, net
|
10
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|||||||
Amortization of unearned compensation
|
—
|
|
|
—
|
|
|
2,116
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,116
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
944
|
|
|
(62,283
|
)
|
|
—
|
|
|
(62,283
|
)
|
|||||||
Equity component of debt, net of tax
|
—
|
|
|
—
|
|
|
56,917
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,917
|
|
|||||||
Net convertible note hedge transactions, net of tax
|
—
|
|
|
—
|
|
|
(49,740
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49,740
|
)
|
|||||||
Net warrant transactions
|
—
|
|
|
—
|
|
|
43,416
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,416
|
|
|||||||
Deferred financing costs allocated to equity, net of tax
|
—
|
|
|
—
|
|
|
(1,569
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,569
|
)
|
|||||||
Reacquisition of equity component of debt due to prepayment, net of tax
|
—
|
|
|
—
|
|
|
(10,649
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,649
|
)
|
|||||||
BALANCE, JUNE 30, 2019
|
71,260
|
|
|
$
|
712
|
|
|
$
|
724,170
|
|
|
$
|
1,418,628
|
|
|
$
|
(350
|
)
|
|
40,134
|
|
|
$
|
(1,354,262
|
)
|
|
$
|
11,342
|
|
|
$
|
800,240
|
|
Net income attributable to InterDigital, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
2,234
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,234
|
|
|||||||
Increases in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,250
|
|
|
11,250
|
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,399
|
)
|
|
(1,399
|
)
|
|||||||
Net change in unrealized gain (loss) on short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
245
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
245
|
|
|||||||
Dividends declared ($0.35 per share)
|
—
|
|
|
—
|
|
|
95
|
|
|
(10,992
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,897
|
)
|
|||||||
Issuance of common stock, net
|
7
|
|
|
—
|
|
|
(179
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(179
|
)
|
|||||||
Amortization of unearned compensation
|
—
|
|
|
—
|
|
|
1,805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,805
|
|
|||||||
BALANCE, SEPTEMBER 30, 2019
|
71,267
|
|
|
$
|
712
|
|
|
$
|
725,891
|
|
|
$
|
1,409,870
|
|
|
$
|
(105
|
)
|
|
40,134
|
|
|
$
|
(1,354,262
|
)
|
|
$
|
21,193
|
|
|
$
|
803,299
|
|
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
2,999
|
|
|
$
|
58,615
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
56,907
|
|
|
47,024
|
|
||
Non-cash interest expense, net
|
13,586
|
|
|
10,684
|
|
||
Non-cash change in fair-value
|
710
|
|
|
—
|
|
||
Gain on asset acquisition and sale of business
|
(22,690
|
)
|
|
—
|
|
||
Change in deferred revenue
|
875
|
|
|
9,822
|
|
||
Loss on extinguishment of debt
|
5,488
|
|
|
—
|
|
||
Deferred income taxes
|
(8,014
|
)
|
|
(27,673
|
)
|
||
Share-based compensation
|
6,017
|
|
|
4,875
|
|
||
Impairment of long-term investment
|
3,312
|
|
|
200
|
|
||
Loss on disposal of assets
|
119
|
|
|
8,176
|
|
||
Other
|
623
|
|
|
(2
|
)
|
||
(Increase) decrease in assets:
|
|
|
|
||||
Receivables
|
11,659
|
|
|
36,861
|
|
||
Deferred charges and other assets
|
(2,181
|
)
|
|
(63,783
|
)
|
||
Increase (decrease) in liabilities:
|
|
|
|
||||
Accounts payable
|
(2,547
|
)
|
|
5,640
|
|
||
Accrued compensation and other expenses
|
6,428
|
|
|
(5,618
|
)
|
||
Accrued taxes payable and other tax contingencies
|
(1,315
|
)
|
|
91,796
|
|
||
Net cash provided by operating activities
|
71,976
|
|
|
176,617
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of short-term investments
|
(92,270
|
)
|
|
(142,562
|
)
|
||
Sales of short-term investments
|
355,649
|
|
|
317,447
|
|
||
Purchases of property and equipment
|
(3,062
|
)
|
|
(1,882
|
)
|
||
Proceeds from sale of business
|
10,000
|
|
|
—
|
|
||
Capitalized patent costs
|
(26,123
|
)
|
|
(23,845
|
)
|
||
Acquisition of patents
|
—
|
|
|
(2,250
|
)
|
||
Acquisition of business, net of cash acquired
|
—
|
|
|
(142,985
|
)
|
||
Long-term investments
|
—
|
|
|
(6,686
|
)
|
||
Net cash provided by (used in) investing activities
|
244,194
|
|
|
(2,763
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Net proceeds from exercise of stock options
|
2
|
|
|
6,362
|
|
||
Payments on long-term debt
|
(221,091
|
)
|
|
—
|
|
||
Proceeds from issuance of convertible senior notes
|
400,000
|
|
|
—
|
|
||
Purchase of convertible bond hedge
|
(72,000
|
)
|
|
—
|
|
||
Payment for warrant unwind
|
(4,184
|
)
|
|
—
|
|
||
Prepayment penalty on long-term debt
|
(10,763
|
)
|
|
—
|
|
||
Proceeds from hedge unwind
|
9,038
|
|
|
—
|
|
||
Proceeds from issuance of warrants
|
47,600
|
|
|
—
|
|
||
Payments of debt issuance costs
|
(8,375
|
)
|
|
—
|
|
||
Proceeds from non-controlling interests
|
10,333
|
|
|
—
|
|
||
Dividends paid
|
(33,683
|
)
|
|
(36,472
|
)
|
||
Taxes withheld upon restricted stock unit vestings
|
(4,316
|
)
|
|
(8,479
|
)
|
||
Repurchase of common stock
|
(171,269
|
)
|
|
(43,508
|
)
|
||
Net cash used in financing activities
|
(58,708
|
)
|
|
(82,097
|
)
|
||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
257,462
|
|
|
91,757
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD
|
488,733
|
|
|
433,014
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
|
$
|
746,195
|
|
|
$
|
524,771
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||
|
2019
|
|
2019
|
||||
Operating lease cost
|
$
|
1,210
|
|
|
$
|
3,325
|
|
Short-term lease cost
|
211
|
|
|
731
|
|
||
Variable lease cost
|
362
|
|
|
1,054
|
|
Maturity of Operating Lease Liabilities
|
September 30, 2019
|
||
Remainder 2019
|
$
|
1,348
|
|
2020
|
4,440
|
|
|
2021
|
3,934
|
|
|
2022
|
3,965
|
|
|
2023
|
3,229
|
|
|
Thereafter
|
6,310
|
|
|
Total lease payments
|
$
|
23,226
|
|
Less: Imputed interest
|
(3,735
|
)
|
|
Present value of lease liabilities
|
$
|
19,491
|
|
Maturity of Operating Leases
|
December 31, 2018
|
||
2019
|
$
|
5,362
|
|
2020
|
3,386
|
|
|
2021
|
2,883
|
|
|
2022
|
2,920
|
|
|
2023
|
2,184
|
|
|
Thereafter
|
5,582
|
|
|
Three months ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Increase/(Decrease)
|
|||||||||
Variable patent royalty revenue
|
$
|
4,683
|
|
|
$
|
13,645
|
|
|
$
|
(8,962
|
)
|
|
(66
|
)%
|
Fixed-fee royalty revenue
|
63,736
|
|
|
60,272
|
|
|
3,464
|
|
|
6
|
%
|
|||
Current patent royalties a
|
68,419
|
|
|
73,917
|
|
|
(5,498
|
)
|
|
(7
|
)%
|
|||
Non-current patent royalties b
|
(370
|
)
|
|
128
|
|
|
(498
|
)
|
|
(389
|
)%
|
|||
Total patent royalties
|
68,049
|
|
|
74,045
|
|
|
(5,996
|
)
|
|
(8
|
)%
|
|||
Current technology solutions revenue a
|
3,724
|
|
|
1,034
|
|
|
2,690
|
|
|
260
|
%
|
|||
Patent sales b
|
750
|
|
|
—
|
|
|
750
|
|
|
—
|
%
|
|||
Total revenue
|
$
|
72,523
|
|
|
$
|
75,079
|
|
|
$
|
(2,556
|
)
|
|
(3
|
)%
|
|
Nine months ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Increase/(Decrease)
|
|||||||||
Variable patent royalty revenue
|
$
|
22,557
|
|
|
$
|
26,322
|
|
|
$
|
(3,765
|
)
|
|
(14
|
)%
|
Fixed-fee royalty revenue
|
190,345
|
|
|
178,207
|
|
|
12,138
|
|
|
7
|
%
|
|||
Current patent royalties a
|
212,902
|
|
|
204,529
|
|
|
8,373
|
|
|
4
|
%
|
|||
Non-current patent royalties b
|
(4,908
|
)
|
|
25,489
|
|
|
(30,397
|
)
|
|
(119
|
)%
|
|||
Total patent royalties
|
207,994
|
|
|
230,018
|
|
|
(22,024
|
)
|
|
(10
|
)%
|
|||
Current technology solutions revenue a
|
7,794
|
|
|
2,060
|
|
|
5,734
|
|
|
278
|
%
|
|||
Patent sales b
|
975
|
|
|
—
|
|
|
975
|
|
|
—
|
%
|
|||
Total revenue
|
$
|
216,763
|
|
|
$
|
232,078
|
|
|
$
|
(15,315
|
)
|
|
(7
|
)%
|
a.
|
Recurring revenues are comprised of current patent royalties, inclusive of Dynamic Fixed-Fee Agreement royalties, and current technology solutions revenue.
|
b.
|
Non-recurring revenues are comprised of non-current patent royalties, which primarily include past patent royalties and royalties from static agreements, as well as patent sales.
|
|
Revenue
|
||
Remainder 2019
|
$
|
63,736
|
|
2020
|
248,250
|
|
|
2021
|
178,583
|
|
|
2022
|
85,228
|
|
|
2023
|
—
|
|
|
Three months ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income applicable to InterDigital, Inc.
|
$
|
2,234
|
|
|
$
|
2,234
|
|
|
$
|
21,752
|
|
|
$
|
21,752
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: Basic
|
31,130
|
|
|
31,130
|
|
|
34,651
|
|
|
34,651
|
|
||||
Dilutive effect of stock options, RSUs, convertible securities and warrants
|
|
|
178
|
|
|
|
|
956
|
|
||||||
Weighted-average shares outstanding: Diluted
|
|
|
31,308
|
|
|
|
|
35,607
|
|
||||||
Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Net income per common share: Basic
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.63
|
|
|
$
|
0.63
|
|
Dilutive effect of stock options, RSUs, convertible securities and warrants
|
|
|
—
|
|
|
|
|
(0.02
|
)
|
||||||
Net income per common share: Diluted
|
|
|
$
|
0.07
|
|
|
|
|
$
|
0.61
|
|
|
Nine months ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income applicable to InterDigital, Inc.
|
$
|
7,174
|
|
|
$
|
7,174
|
|
|
$
|
62,948
|
|
|
$
|
62,948
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: Basic
|
31,757
|
|
|
31,757
|
|
|
34,687
|
|
|
34,687
|
|
||||
Dilutive effect of stock options, RSUs, convertible securities and warrants
|
|
|
253
|
|
|
|
|
927
|
|
||||||
Weighted-average shares outstanding: Diluted
|
|
|
32,010
|
|
|
|
|
35,614
|
|
||||||
Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Net income per common share: Basic
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
1.81
|
|
|
$
|
1.81
|
|
Dilutive effect of stock options, RSUs, convertible securities and warrants
|
|
|
(0.01
|
)
|
|
|
|
(0.04
|
)
|
||||||
Net income per common share: Diluted
|
|
|
$
|
0.22
|
|
|
|
|
$
|
1.77
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Restricted stock units and stock options
|
155
|
|
|
78
|
|
|
120
|
|
|
44
|
|
Convertible securities
|
6,260
|
|
|
—
|
|
|
5,236
|
|
|
—
|
|
Warrants
|
6,260
|
|
|
4,405
|
|
|
5,236
|
|
|
4,404
|
|
Total
|
12,675
|
|
|
4,483
|
|
|
10,592
|
|
|
4,448
|
|
1.
|
Whenever InterDigital engages with a Chinese Manufacturer to license InterDigital’s patent portfolio for 2G, 3G and 4G wireless mobile standards, InterDigital will offer such Chinese Manufacturer the option of taking a worldwide portfolio license of only its standards-essential wireless patents, and comply with F/RAND principles when negotiating and entering into such licensing agreements with Chinese Manufacturers.
|
2.
|
As part of its licensing offer, InterDigital will not require that a Chinese Manufacturer agree to a royalty-free, reciprocal cross-license of such Chinese Manufacturer's similarly categorized standards-essential wireless patents.
|
3.
|
Prior to commencing any action against a Chinese Manufacturer in which InterDigital may seek exclusionary or injunctive relief for the infringement of any of its wireless standards-essential patents, InterDigital will offer such Chinese Manufacturer the option to enter into expedited binding arbitration under fair and reasonable procedures to resolve the royalty rate and other terms of a worldwide license under InterDigital's wireless standards-essential patents. If the Chinese Manufacturer accepts InterDigital's binding arbitration offer or otherwise enters into an agreement with InterDigital on a binding arbitration mechanism, InterDigital will, in accordance with the terms of the arbitration agreement and patent license agreement, refrain from seeking exclusionary or injunctive relief against such company.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
September 30,
|
|
September 30,
|
||||
|
2018
|
|
2018
|
||||
Actual revenue
|
$
|
75,079
|
|
|
$
|
232,078
|
|
Supplemental pro forma revenue
|
76,034
|
|
|
238,761
|
|
||
Actual earnings
|
21,752
|
|
|
62,948
|
|
||
Supplemental pro forma earnings
|
22,884
|
|
|
55,314
|
|
||
Actual diluted earnings per share
|
0.61
|
|
|
1.77
|
|
||
Supplemental pro forma diluted earnings per share
|
0.64
|
|
|
1.55
|
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
||||||
|
2019
|
|
2018
|
|
2018
|
||||||
Cash and cash equivalents
|
$
|
735,886
|
|
|
$
|
475,056
|
|
|
$
|
508,829
|
|
Restricted cash included within prepaid and other current assets
|
9,229
|
|
|
13,677
|
|
|
15,942
|
|
|||
Restricted cash included within other non-current assets
|
1,080
|
|
|
—
|
|
|
—
|
|
|||
Total cash, cash equivalents and restricted cash
|
$
|
746,195
|
|
|
$
|
488,733
|
|
|
$
|
524,771
|
|
|
Fair Value as of September 30, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market and demand accounts (a)
|
$
|
746,195
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
746,195
|
|
Commercial paper (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
U.S. government securities
|
—
|
|
|
113,541
|
|
|
—
|
|
|
113,541
|
|
||||
Corporate bonds, asset backed and other securities
|
—
|
|
|
98,196
|
|
|
—
|
|
|
98,196
|
|
||||
Total
|
$
|
746,195
|
|
|
$
|
211,737
|
|
|
$
|
—
|
|
|
$
|
957,932
|
|
|
Fair Value as of December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market and demand accounts (a)
|
$
|
488,733
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
488,733
|
|
Commercial paper (b)
|
—
|
|
|
14,548
|
|
|
—
|
|
|
14,548
|
|
||||
U.S. government securities
|
—
|
|
|
289,576
|
|
|
—
|
|
|
289,576
|
|
||||
Corporate bonds, asset backed and other securities
|
—
|
|
|
166,600
|
|
|
—
|
|
|
166,600
|
|
||||
Total
|
$
|
488,733
|
|
|
$
|
470,724
|
|
|
$
|
—
|
|
|
$
|
959,457
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration resulting from the Technicolor Acquisition
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,800
|
|
|
$
|
19,800
|
|
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,800
|
|
|
$
|
19,800
|
|
(a)
|
Primarily included within cash and cash equivalents.
|
(b)
|
As of September 30, 2019 and December 31, 2018, zero commercial paper was included within cash and cash equivalents.
|
Level 3 Fair Value Measurements
|
|
Contingent Consideration Liability
|
||
Balance as of December 31, 2018
|
|
$
|
19,800
|
|
Changes in fair value recognized in the condensed consolidated statements of income
|
|
|
710
|
|
Derecognition of contingent consideration liability as a Level 3 fair value measurement
|
|
|
(20,510
|
)
|
Balance as of September 30, 2019
|
|
$
|
—
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Principal
Amount
|
|
Carrying
Value
|
|
Fair
Value
|
|
Principal
Amount
|
|
Carrying
Value |
|
Fair
Value
|
||||||||||||
Senior Convertible Long-Term Debt
|
$
|
494,909
|
|
|
$
|
419,136
|
|
|
$
|
488,432
|
|
|
$
|
316,000
|
|
|
$
|
298,951
|
|
|
$
|
331,595
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value |
|
Fair
Value
|
||||||||
Technicolor Acquisition Long-Term Debt
|
$
|
20,393
|
|
|
$
|
22,882
|
|
|
$
|
18,428
|
|
|
$
|
19,100
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
2024 Notes
|
2020 Notes
|
Total
|
|
2020 Notes
|
||||||||
Principal
|
$
|
400,000
|
|
$
|
94,909
|
|
$
|
494,909
|
|
|
$
|
316,000
|
|
Less:
|
|
|
|
|
|
||||||||
Unamortized interest discount
|
(67,857
|
)
|
(1,673
|
)
|
(69,530
|
)
|
|
(15,428
|
)
|
||||
Deferred financing costs
|
(6,069
|
)
|
(174
|
)
|
(6,243
|
)
|
|
(1,621
|
)
|
||||
Net carrying amount of 2024 and 2020 Notes
|
$
|
326,074
|
|
$
|
93,062
|
|
$
|
419,136
|
|
|
$
|
298,951
|
|
|
Three months ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
2024 Notes
|
|
2020 Notes
|
|
Total
|
|
2024 Notes
|
|
2020 Notes
|
|
Total
|
||||||||||||
Contractual coupon interest
|
$
|
2,000
|
|
|
$
|
356
|
|
|
$
|
2,356
|
|
|
$
|
—
|
|
|
$
|
1,185
|
|
|
$
|
1,185
|
|
Accretion of debt discount
|
3,088
|
|
|
1,004
|
|
|
4,092
|
|
|
—
|
|
|
3,124
|
|
|
3,124
|
|
||||||
Amortization of deferred financing costs
|
276
|
|
|
104
|
|
|
380
|
|
|
—
|
|
|
347
|
|
|
347
|
|
||||||
Total
|
$
|
5,364
|
|
|
$
|
1,464
|
|
|
$
|
6,828
|
|
|
$
|
—
|
|
|
$
|
4,656
|
|
|
$
|
4,656
|
|
|
Nine months ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
2024 Notes
|
|
2020 Notes
|
|
Total
|
|
2024 Notes
|
|
2020 Notes
|
|
Total
|
||||||||||||
Contractual coupon interest
|
$
|
2,600
|
|
|
$
|
2,468
|
|
|
$
|
5,068
|
|
|
$
|
—
|
|
|
$
|
3,555
|
|
|
$
|
3,555
|
|
Accretion of debt discount
|
4,189
|
|
|
6,739
|
|
|
10,928
|
|
|
—
|
|
|
9,252
|
|
|
9,252
|
|
||||||
Amortization of deferred financing costs
|
374
|
|
|
717
|
|
|
1,091
|
|
|
—
|
|
|
1,042
|
|
|
1,042
|
|
||||||
Total
|
$
|
7,163
|
|
|
$
|
9,924
|
|
|
$
|
17,087
|
|
|
$
|
—
|
|
|
$
|
13,849
|
|
|
$
|
13,849
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest and investment income
|
$
|
3,684
|
|
|
$
|
3,740
|
|
|
$
|
11,173
|
|
|
$
|
11,013
|
|
Gain on asset acquisition and sale of business
|
8,515
|
|
|
—
|
|
|
22,690
|
|
|
—
|
|
||||
Loss on extinguishment of long-term debt
|
—
|
|
|
—
|
|
|
(5,488
|
)
|
|
—
|
|
||||
Other
|
(4,396
|
)
|
|
(8,654
|
)
|
|
(4,603
|
)
|
|
(8,907
|
)
|
||||
Other income (expense), net
|
$
|
7,803
|
|
|
$
|
(4,914
|
)
|
|
$
|
23,772
|
|
|
$
|
2,106
|
|
|
Statements of Income and Statements of Comprehensive Income Impact
|
||
|
Year Ended
|
||
|
December 31,
|
December 31,
|
December 31,
|
|
2016
|
2017
|
2018
|
Net loss attributable to noncontrolling interest - As Reported
|
$3,521
|
$3,579
|
$4,393
|
Net loss attributable to noncontrolling interest - As Revised
|
$5,261
|
$5,506
|
$5,556
|
|
|
|
|
Net income attributable to InterDigital, Inc. - As Reported
|
$309,001
|
$174,293
|
$63,868
|
Net income attributable to InterDigital, Inc. - As Revised
|
$310,741
|
$176,220
|
$65,031
|
|
|
|
|
Net income per common share, Basic - As Reported
|
$8.95
|
$5.04
|
$1.85
|
Net income per common share, Basic - As Revised
|
$9.00
|
$5.09
|
$1.89
|
|
|
|
|
Net income per common share, Diluted - As Reported
|
$8.78
|
$4.87
|
$1.81
|
Net income per common share, Diluted - As Revised
|
$8.83
|
$4.93
|
$1.84
|
|
|
|
|
Total comprehensive income attributable to InterDigital, Inc. - As Reported
|
$308,665
|
$172,724
|
$63,929
|
Total comprehensive income attributable to InterDigital, Inc. - As Revised
|
$310,405
|
$174,651
|
$65,092
|
|
Statements of Income and Statements of Comprehensive Income Impact
|
|||||
|
Three Months Ended
|
Six Months Ended
|
Nine Months Ended
|
|||
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
June 30,
|
September 30,
|
|
2018
|
2018
|
2018
|
2018
|
2018
|
2018
|
Net loss attributable to noncontrolling interest - As Reported
|
$1,196
|
$930
|
$1,297
|
$970
|
$2,126
|
$3,423
|
Net loss attributable to noncontrolling interest - As Revised
|
$1,501
|
$1,190
|
$1,642
|
$1,223
|
$2,691
|
$4,333
|
|
|
|
|
|
|
|
Net income attributable to InterDigital, Inc. - As Reported
|
$29,925
|
$10,706
|
$21,407
|
$1,830
|
$40,631
|
$62,038
|
Net income attributable to InterDigital, Inc. - As Revised
|
$30,230
|
$10,966
|
$21,752
|
$2,083
|
$41,196
|
$62,948
|
|
|
|
|
|
|
|
Net income per common share, Basic - As Reported
|
$0.86
|
$0.31
|
$0.62
|
$0.05
|
$1.17
|
$1.79
|
Net income per common share, Basic - As Revised
|
$0.87
|
$0.32
|
$0.63
|
$0.06
|
$1.19
|
$1.81
|
|
|
|
|
|
|
|
Net income per common share, Diluted - As Reported
|
$0.84
|
$0.30
|
$0.60
|
$0.05
|
$1.14
|
$1.74
|
Net income per common share, Diluted - As Revised
|
$0.85
|
$0.31
|
$0.61
|
$0.06
|
$1.16
|
$1.77
|
|
|
|
|
|
|
|
Total comprehensive income attributable to InterDigital, Inc. - As Reported
|
$28,178
|
$11,082
|
$21,874
|
$2,795
|
$39,260
|
$61,134
|
Total comprehensive income attributable to InterDigital, Inc. - As Revised
|
$28,483
|
$11,342
|
$22,219
|
$3,048
|
$39,825
|
$62,044
|
|
Balance Sheets and Statements of Shareholders' Equity Impact
|
|||||
|
December 31,
|
December 31,
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
|
2016
|
2017
|
2018
|
2018
|
2018
|
2018
|
Retained earnings - As Reported
|
$1,120,766
|
$1,249,091
|
$1,428,437
|
$1,426,888
|
$1,436,171
|
$1,426,266
|
Retained earnings - As Revised
|
$1,127,380
|
$1,257,632
|
$1,437,283
|
$1,435,994
|
$1,445,622
|
$1,435,970
|
|
|
|
|
|
|
|
Total InterDigital, Inc. shareholders’ equity - As Reported
|
$739,709
|
$855,267
|
$1,019,047
|
$1,020,469
|
$1,000,591
|
$927,025
|
Total InterDigital, Inc. shareholders’ equity - As Revised
|
$746,323
|
$863,808
|
$1,027,893
|
$1,029,575
|
$1,010,042
|
$936,729
|
|
|
|
|
|
|
|
Noncontrolling interest - As Reported
|
$14,659
|
$17,881
|
$16,685
|
$15,755
|
$14,458
|
$10,988
|
Noncontrolling interest - As Revised
|
$8,045
|
$9,340
|
$7,839
|
$6,649
|
$5,007
|
$1,284
|
|
|
|
|
|
|
|
Total equity - As Reported
|
$754,368
|
$873,148
|
$1,035,732
|
$1,036,224
|
$1,015,049
|
$938,013
|
Total equity - As Revised
|
$754,368
|
$873,148
|
$1,035,732
|
$1,036,224
|
$1,015,049
|
$938,013
|
•
|
the Technicolor Acquisition and the acquisition of the R&I unit of Technicolor SA, which closed on July 30, 2018 and May 31, 2019, respectively, contributed $4.2 million to our third quarter 2019 revenue and $15.8 million to our third quarter 2019 operating expenses;
|
•
|
The $15.8 million of operating expenses is comprised of $13.7 million of recurring costs, of which $4.2 million relates to patent amortization, and the remaining $2.1 million relates to transaction-related and integration costs; and
|
•
|
third quarter 2019 "Other Income (Expense), Net" includes an $8.5 million gain on sale of our Hillcrest product business, as well as a $3.3 million loss resulting from the partial impairment of one of our strategic long-term investments.
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Increase /
(Decrease)
|
||||||
Cash and cash equivalents
|
$
|
735,886
|
|
|
$
|
475,056
|
|
|
$
|
260,830
|
|
Restricted cash included within prepaid and other current assets
|
9,229
|
|
|
13,677
|
|
|
(4,448
|
)
|
|||
Restricted cash included within other non-current assets
|
1,080
|
|
|
—
|
|
|
1,080
|
|
|||
Short-term investments
|
211,737
|
|
|
470,724
|
|
|
(258,987
|
)
|
|||
Total cash, cash equivalents, restricted cash and short-term investments
|
$
|
957,932
|
|
|
$
|
959,457
|
|
|
$
|
(1,525
|
)
|
|
Nine months ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase /
(Decrease)
|
||||||
Net cash provided by operating activities
|
$
|
71,976
|
|
|
$
|
176,617
|
|
|
$
|
(104,641
|
)
|
|
Nine months ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||
Cash Receipts:
|
|
|
|
|
|
||||||
Patent royalties
|
$
|
217,284
|
|
|
$
|
252,783
|
|
|
$
|
(35,499
|
)
|
Technology solutions
|
5,765
|
|
|
9,306
|
|
|
(3,541
|
)
|
|||
Total cash receipts
|
223,049
|
|
|
262,089
|
|
|
(39,040
|
)
|
|||
|
|
|
|
|
|
||||||
Cash Outflows:
|
|
|
|
|
|
||||||
Cash operating expenses a
|
140,590
|
|
|
121,429
|
|
|
19,161
|
|
|||
Income taxes paid b
|
16,483
|
|
|
24,459
|
|
|
(7,976
|
)
|
|||
Total cash outflows
|
157,073
|
|
|
145,888
|
|
|
11,185
|
|
|||
|
|
|
|
|
|
||||||
Other working capital adjustments
|
6,000
|
|
|
60,416
|
|
|
(54,416
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows provided by operating activities
|
$
|
71,976
|
|
|
$
|
176,617
|
|
|
$
|
(104,641
|
)
|
|
September 30,
2019 |
|
December 31, 2018
|
|
Increase / (Decrease)
|
||||||
Current assets
|
$
|
1,022,523
|
|
|
$
|
1,024,250
|
|
|
$
|
(1,727
|
)
|
Less: current liabilities
|
334,299
|
|
|
179,395
|
|
|
154,904
|
|
|||
Working capital
|
688,224
|
|
|
844,855
|
|
|
(156,631
|
)
|
|||
Subtract:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
735,886
|
|
|
475,056
|
|
|
260,830
|
|
|||
Restricted cash included in current assets
|
9,229
|
|
|
13,677
|
|
|
(4,448
|
)
|
|||
Short-term investments
|
211,737
|
|
|
470,724
|
|
|
(258,987
|
)
|
|||
Add:
|
|
|
|
|
|
||||||
Current deferred revenue
|
171,433
|
|
|
111,672
|
|
|
59,761
|
|
|||
Adjusted working capital
|
$
|
(97,195
|
)
|
|
$
|
(2,930
|
)
|
|
$
|
(94,265
|
)
|
2024 Notes
|
|||||
Market Price Per Share
|
Shares Issuable Upon Conversion of the 2024 Notes
|
Shares Issuable Upon Exercise of the 2024 Warrant Transactions
|
Total Treasury Stock Method Incremental Shares
|
Shares Deliverable to InterDigital upon Settlement of the 2024 Note Hedge Transactions
|
Incremental Shares Issuable (a)
|
|
(Shares in thousands)
|
||||
$85
|
215
|
—
|
215
|
(215)
|
—
|
$90
|
476
|
—
|
476
|
(476)
|
—
|
$95
|
710
|
—
|
710
|
(710)
|
—
|
$100
|
921
|
—
|
921
|
(921)
|
—
|
$105
|
1,111
|
—
|
1,111
|
(1,111)
|
—
|
$110
|
1,284
|
25
|
1,309
|
(1,284)
|
25
|
$115
|
1,442
|
238
|
1,680
|
(1,442)
|
238
|
$120
|
1,587
|
433
|
2,020
|
(1,587)
|
433
|
$125
|
1,721
|
613
|
2,334
|
(1,721)
|
613
|
$130
|
1,844
|
779
|
2,623
|
(1,844)
|
779
|
2020 Notes
|
|||||
Market Price Per Share
|
Shares Issuable Upon Conversion of the 2020 Notes
|
Shares Issuable Upon Exercise of the 2020 Warrant Transactions
|
Total Treasury Stock Method Incremental Shares
|
Shares Deliverable to InterDigital upon Settlement of the 2020 Note Hedge Transactions
|
Incremental Shares Issuable (a)
|
|
(Shares in thousands)
|
||||
$75
|
74
|
—
|
74
|
(74)
|
—
|
$80
|
153
|
—
|
153
|
(153)
|
—
|
$85
|
223
|
—
|
223
|
(223)
|
—
|
$90
|
285
|
51
|
336
|
(285)
|
51
|
$95
|
341
|
119
|
460
|
(341)
|
119
|
$100
|
391
|
180
|
571
|
(391)
|
180
|
$105
|
436
|
235
|
671
|
(436)
|
235
|
$110
|
477
|
285
|
762
|
(477)
|
285
|
$115
|
514
|
331
|
845
|
(514)
|
331
|
$120
|
549
|
373
|
922
|
(549)
|
373
|
|
Three months ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Total Increase/(Decrease)
|
|||||||||
Variable patent royalty revenue
|
$
|
4,683
|
|
|
$
|
13,645
|
|
|
$
|
(8,962
|
)
|
|
(66
|
)%
|
Fixed-fee royalty revenue
|
63,736
|
|
|
60,272
|
|
|
3,464
|
|
|
6
|
%
|
|||
Current patent royalties a
|
68,419
|
|
|
73,917
|
|
|
(5,498
|
)
|
|
(7
|
)%
|
|||
Non-current patent royalties b
|
(370
|
)
|
|
128
|
|
|
(498
|
)
|
|
(389
|
)%
|
|||
Total patent royalties
|
68,049
|
|
|
74,045
|
|
|
(5,996
|
)
|
|
(8
|
)%
|
|||
Current technology solutions revenue a
|
3,724
|
|
|
1,034
|
|
|
2,690
|
|
|
260
|
%
|
|||
Patent sales b
|
750
|
|
|
—
|
|
|
750
|
|
|
—
|
%
|
|||
Total revenue
|
$
|
72,523
|
|
|
$
|
75,079
|
|
|
$
|
(2,556
|
)
|
|
(3
|
)%
|
a.
|
Recurring revenues are comprised of current patent royalties, inclusive of Dynamic Fixed-Fee Agreement royalties, and current technology solutions revenue.
|
b.
|
Non-recurring revenues are comprised of non-current patent royalties, which primarily include past patent royalties and royalties from static agreements, as well as patent sales.
|
|
Three months ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Increase/(Decrease)
|
|||||||||
Patent administration and licensing
|
$
|
34,772
|
|
|
$
|
32,077
|
|
|
$
|
2,695
|
|
|
8
|
%
|
Development
|
20,506
|
|
|
17,276
|
|
|
3,230
|
|
|
19
|
%
|
|||
Selling, general and administrative
|
13,471
|
|
|
12,806
|
|
|
665
|
|
|
5
|
%
|
|||
Total operating expenses
|
$
|
68,749
|
|
|
$
|
62,159
|
|
|
$
|
6,590
|
|
|
11
|
%
|
|
Increase/
(Decrease)
|
||
Technicolor Acquisitions: Recurring costs
|
7,596
|
|
|
Intellectual property enforcement and non-patent litigation
|
1,989
|
|
|
Other
|
356
|
|
|
Technicolor Acquisitions: Transaction and integration costs
|
(3,351
|
)
|
|
Total increase in operating expenses
|
$
|
6,590
|
|
|
Three months ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|||||||||
Interest expense
|
$
|
(10,920
|
)
|
|
$
|
(9,039
|
)
|
|
$
|
(1,881
|
)
|
|
(21
|
)%
|
Interest and investment income
|
3,684
|
|
|
3,740
|
|
|
(56
|
)
|
|
(1
|
)%
|
|||
Gain on sale of business
|
8,515
|
|
|
—
|
|
|
8,515
|
|
|
—
|
%
|
|||
Other income (expense), net
|
(4,396
|
)
|
|
(8,654
|
)
|
|
4,258
|
|
|
49
|
%
|
|||
Total non-operating income (expense)
|
$
|
(3,117
|
)
|
|
$
|
(13,953
|
)
|
|
$
|
10,836
|
|
|
78
|
%
|
|
For the Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Total Increase/(Decrease)
|
|||||||||
Variable patent royalty revenue
|
$
|
22,557
|
|
|
$
|
26,322
|
|
|
$
|
(3,765
|
)
|
|
(14
|
)%
|
Fixed-fee royalty revenue
|
190,345
|
|
|
178,207
|
|
|
12,138
|
|
|
7
|
%
|
|||
Current patent royalties a
|
212,902
|
|
|
204,529
|
|
|
8,373
|
|
|
4
|
%
|
|||
Non-current patent royalties b
|
(4,908
|
)
|
|
25,489
|
|
|
(30,397
|
)
|
|
(119
|
)%
|
|||
Total patent royalties
|
207,994
|
|
|
230,018
|
|
|
(22,024
|
)
|
|
(10
|
)%
|
|||
Current technology solutions revenue a
|
7,794
|
|
|
2,060
|
|
|
5,734
|
|
|
278
|
%
|
|||
Patent Sales b
|
975
|
|
|
—
|
|
|
975
|
|
|
—
|
%
|
|||
Total revenue
|
$
|
216,763
|
|
|
$
|
232,078
|
|
|
$
|
(16,290
|
)
|
|
(7
|
)%
|
(a)
|
Recurring revenues are comprised of current patent royalties, inclusive of Dynamic Fixed-Fee Agreement royalties, and current technology solutions revenue.
|
(b)
|
Non-recurring revenues are comprised of non-current patent royalties, which primarily include past patent royalties and royalties from static agreements, as well as patent sales.
|
|
Nine months ended September 30,
|
|
|
|||||||||||
|
2019
|
|
2018
|
|
Increase/(Decrease)
|
|||||||||
Patent administration and licensing
|
$
|
108,196
|
|
|
$
|
85,480
|
|
|
$
|
22,716
|
|
|
27
|
%
|
Development
|
56,028
|
|
|
49,279
|
|
|
6,749
|
|
|
14
|
%
|
|||
Selling, general and administrative
|
40,000
|
|
|
38,569
|
|
|
1,431
|
|
|
4
|
%
|
|||
Total operating expenses
|
$
|
204,224
|
|
|
$
|
173,328
|
|
|
$
|
30,896
|
|
|
18
|
%
|
|
Increase/(Decrease)
|
||
Technicolor Acquisitions: Recurring costs
|
$
|
28,187
|
|
Personnel-related costs
|
4,178
|
|
|
Other
|
921
|
|
|
Technicolor Acquisitions: Transaction and integration costs
|
(2,390
|
)
|
|
Total increase in operating expenses
|
$
|
30,896
|
|
|
Nine months ended September 30,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|||||||||
Interest expense
|
$
|
(30,305
|
)
|
|
$
|
(27,242
|
)
|
|
$
|
(3,063
|
)
|
|
(11
|
)%
|
Interest and investment income
|
11,173
|
|
|
11,013
|
|
|
160
|
|
|
1
|
%
|
|||
Gain on asset acquisition and sale of business
|
22,690
|
|
|
—
|
|
|
22,690
|
|
|
—
|
%
|
|||
Loss on extinguishment of long-term debt
|
(5,488
|
)
|
|
—
|
|
|
(5,488
|
)
|
|
—
|
%
|
|||
Other income (expense), net
|
(4,603
|
)
|
|
(8,907
|
)
|
|
4,304
|
|
|
48
|
%
|
|||
Total non-operating income (expense)
|
$
|
(6,533
|
)
|
|
$
|
(25,136
|
)
|
|
$
|
18,603
|
|
|
74
|
%
|
•
|
Our expectations regarding the potential effects of new accounting standards on our financial position, results of operations or cash flows;
|
•
|
Our expectation that the amortization of dynamic fixed-fee royalty payments will reduce our September 30, 2019 deferred revenue balance over the next twelve months;
|
•
|
Our expectations with respect to revenue to be recognized based on contracts signed and committed Dynamic Fixed-Fee Agreement payments as of September 30, 2019;
|
•
|
Our expectations and estimations regarding the income tax effects, and the impact on the Company, of the Tax Reform Act, including our forecasted net benefit related to our income qualifying as FDII;
|
•
|
Our expectations with respect to anticipated tax refunds to be received from amending certain tax returns;
|
•
|
The timing, outcome and impact of, and plans, expectations and beliefs with respect to, our various litigation, arbitration, regulatory and administrative matters;
|
•
|
Our belief that we have the ability to obtain additional liquidity through debt and equity financings;
|
•
|
Our expectations with respect to the impact of the Technicolor Acquisitions on our financial statements and our business;
|
•
|
Our belief that our available sources of funds will be sufficient to finance our operations, capital requirements, debt obligations, existing stock repurchase program and dividend program for the next twelve months; and
|
•
|
Our expectation that we will continue to pay dividends comparable to our quarterly $0.35 per share cash dividend in the future.
|
Period
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
|
Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs (3)
|
||||||
July 1, 2019 - July 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
96,813,533
|
|
August 1, 2019 - August 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
96,813,533
|
|
September 1, 2019 - September 30, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
96,813,533
|
|
Total
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
96,813,533
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
Inline Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
Inline Schema Document
|
|
|
|
101.CAL
|
|
Inline Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
Inline Definition Linkbase Document
|
|
|
|
101.LAB
|
|
Inline Labels Linkbase Document
|
|
|
|
101.PRE
|
|
Inline Presentation Linkbase Document
|
|
|
|
104
|
|
Inline Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101)
|
+
|
|
This exhibit will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such exhibit will not be deemed to be incorporated by reference into any filing under the Securities Act or Securities Exchange Act, except to the extent that InterDigital, Inc. specifically incorporates it by reference.
|
|
INTERDIGITAL, INC.
|
|
|
|
|
Date: October 31, 2019
|
/s/ WILLIAM J. MERRITT
|
|
|
William J. Merritt
|
|
|
President and Chief Executive Officer
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Date: October 31, 2019
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/s/ RICHARD J. BREZSKI
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Richard J. Brezski
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Chief Financial Officer
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1 Year InterDigital Chart |
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