Company: IDCC
Filing Date: 2025-02-06
Form Type: 10-K
Source: 0001405495-25-000011
Chunk: 18

Company: InterDigital, Inc.
Filing Date: 2025-02-06
Form: 10-K
Item: Item 7A
Chunk 18
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Table of Contents

Item 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Cash, cash equivalents, restricted cash and short-term investments

The primary objectives of our investment activities are to preserve principal and maintain liquidity while at the same time capturing a market rate of return.  To achieve these objectives, we maintain our portfolio of cash, cash equivalents, restricted cash, and short-term and long-term investments in a variety of securities, including government obligations, corporate bonds, and commercial paper.

Interest Rate Risk — We invest our cash in a number of diversified high quality investment-grade fixed and floating rate securities with a fair value of $982.4 million as of December 31, 2024.  Our exposure to interest rate risks is not significant due to the short average maturity, quality and diversification of our holdings.  We do not hold any derivative, derivative commodity instruments, or other similar financial instruments in our investment portfolio.  The risk associated with fluctuating interest rates is generally limited to our investment portfolio.  We believe that a hypothetical 10% change in period-end interest rates would not have a significant impact on our results of operations or cash flows.

The following table provides information about our interest-bearing securities that are sensitive to changes in interest rates as of December 31, 2024.  The table presents principal cash flows, weighted-average yield at cost and contractual maturity dates.  Additionally, we have assumed that these securities are similar enough within the specified categories to aggregate these securities for presentation purposes.

Interest Rate Sensitivity

Principal Amount by Expected Maturity

Average Interest Rates

(in thousands)

20252026202720282029ThereafterTotalMoney market and demand accounts$535,745— — — — — $535,745Short-term investments$323,784$86,499$36,367— — — $446,650Average interest rate4.3 %4.5 %4.4 %— %— %— %4.4 %

Cash and cash equivalents and available-for-sale securities are recorded at fair value.

Bank Liquidity Risk — As of December 31, 2024, we had approximately $535.7 million in operating accounts that are held with domestic and international financial institutions.  The majority of these balances are held with domestic financial institutions.  While we monitor daily cash balances in our operating accounts and adjust the cash balances as appropriate, these