Company: IDCC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001405495-25-000022
Chunk: 40

Company: InterDigital, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
 from $159.8 million in first quarter 2024. The $81.1 million decrease in total operating expenses was primarily due to changes in the following items (in thousands):

 Increase/(Decrease)Revenue share$(66,319)Intellectual property enforcement(12,766)Other(2,044)Total decrease in operating expenses$(81,129)

24

Operating expenses decreased $81.1 million primarily due to revenue share costs related to the catch-up revenues recognized from the Samsung TV agreement signed in first quarter 2024. Additionally, intellectual property enforcement costs decreased $12.8 million primarily due to our fourth quarter 2024 resolution of the OPPO and Lenovo proceedings, as well as the Samsung arbitration.

Research and portfolio development expense: Research and portfolio development expense was relatively flat compared to first quarter 2024.

Licensing expense: Licensing expense decreased $78.9 million primarily driven by the above-noted decreases in revenue share costs and intellectual property enforcement costs.

General and administrative expense: General and administrative expense was relatively flat compared to first quarter 2024.

Non-Operating Income (expense), net

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

Three Months Ended March 31,20252024Increase/(Decrease)Interest expense$(9,871)$(11,922)$2,051 17 %Interest and investment income9,264 11,778 (2,514)(21)%Other income (expense), net994 (2,531)3,525 139 %Total non-operating income (expense), net$387 $(2,675)$3,062 114 %

The change in non-operating income (expense), net was primarily due to a foreign currency translation net gain arising from translation of our foreign subsidiaries of $2.2 million in first quarter 2025, compared to a $2.4 million net loss in first quarter 2024. 

Income taxes

In first quarter 2025 and 2024, based on the statutory federal tax rate net of discrete federal and state taxes, we had an effective tax rate of 12.6% and 19.2%, respectively. The change in effective tax rate is due to an increase in the amount of Foreign Derived Intangible Income deduction benefit available to the Company and tax benefits related to share-based compensation. In addition, the Company is subject to a decrease