Company: IDCC
Filing Date: 2025-02-06
Form Type: 10-K
Source: 0001405495-25-000011
Chunk: 109

Company: InterDigital, Inc.
Filing Date: 2025-02-06
Form: 10-K
Item: Item 7
Chunk 109
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 Lenovo cellular license resulting from the UK proceedings and arbitration agreement. Recurring revenues were relatively flat compared to 2023 with increased CE, IoT/Auto revenue mostly offsetting the 2023 expiration of Huawei and other smartphone agreements.

In 2024 and 2023, 79% and 76% of our total revenues were attributable to companies that individually accounted for 10% or more of our total revenues, respectively.  In 2024 and 2023, the following licensees or customers accounted for 10% or more of our total revenues:

Year Ended December 31, 20242023Customer A30%14%Customer B20%27%Customer C15%24%Customer D14%—%Customer E<10%11%

43

Operating Expenses

The following table summarizes the change in operating expenses by category (in thousands):

Year Ended December 31, 20242023Increase/(Decrease)Research and portfolio development$196,903 $195,285 $1,618 1 %Licensing169,239 79,397 89,842 113 %General and administrative62,862 53,291 9,571 18 %Total operating expenses$429,004 $327,973 $101,031 31 %

Operating expenses increased 31% to $429.0 million in 2024 from $328.0 million in 2023. The $101.0 million increase in total operating expenses was primarily due to increases/(decreases) in the following items (in thousands):

 Increase/(Decrease)Revenue share costs$77,986 Intellectual property enforcement19,279 Performance-based compensation17,603 Net litigation fee reimbursement(11,898)Other(1,939)Total increase in operating expenses$101,031 

The $101.0 million increase in operating expenses was driven by a $78.0 million increase in revenue share costs primarily related to the catch-up revenues recognized from the Samsung TV and TPV agreements. Additionally, intellectual property enforcement costs increased $19.3 million due to costs associated with the Lenovo and OPPO proceedings, as well as the Samsung arbitration, and performance-based compensation increased $17.6 million due to higher accrual rates driven by licensing successes. These increases were partially offset by a change in the nonrecurring net litigation reimbursement of $4.4 million contra-expense recorded in 2024 compared to $7.5 million of