Company: IDCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001405495-25-000051
Chunk: 85

Company: InterDigital, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 85
---
. The $5.6 million increase in total operating expenses was primarily due to changes in the following items (in thousands):

 Increase/(Decrease)Performance-based compensation$4,084 Net litigation fee reimbursement3,200 Depreciation and amortization2,089 Intellectual property enforcement(6,582)Other2,791 Total increase in operating expenses$5,582 

The $5.6 million increase in operating expenses was driven by an increase in performance-based compensation due to higher accrual rates driven by licensing successes and a $2.1 million increase in depreciation and amortization due to non-cash patent acquisitions and investments in internal infrastructure. Additionally, the increase was due to a $3.2 million one-time contra expense for a net litigation fee reimbursement resulting from intellectual property enforcement successes received in second quarter 2024. These increases were partially offset by a $6.6 million decrease in intellectual property enforcement costs primarily due to our fourth quarter 2024 resolution of the OPPO and Lenovo proceedings, as well as decreased activity related to the Samsung arbitration.

Research and portfolio development expense: Research and portfolio development expense increased compared to second quarter 2024 primarily due to the increase in depreciation and amortization noted above, as well as the increase in performance-based compensation costs.

Licensing expense: Licensing expense was relatively flat compared to second quarter 2024, with the above noted one-time net litigation fee reimbursement contra expense recognized in second quarter 2024 and increased performance-based compensation being offset by the above-noted decreased intellectual property enforcement costs.

General and administrative expense: General and administrative expense increased compared to second quarter 2024 primarily due to the above noted increase in performance-based compensation.

Non-Operating Income, net

The following table compares second quarter 2025 non-operating income, net to second quarter 2024 (in thousands):

Three Months Ended June 30,20252024Increase/(Decrease)Interest expense$(9,537)$(11,483)$1,946 17 %Interest and investment income8,828 10,125 (1,297)(13)%Other income, net6,316 1,557 4,759 306 %Total non-operating income, net$5,607 $199 $5,408 2,718 %

The change in non-operating income, net was primarily due to a foreign currency translation net gain arising from translation of our foreign subsidiaries of $3.6 million in second