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Item 1. Financial Statements

2024-10-31 compared with 2024-08-01 · 168 added, 186 removed, 480 unchanged (42% of the section changed)

4 unchanged sentences

(in thousands, except per share data)

SEPTEMBER 30,

2024 DECEMBER 31,

29 unchanged sentences

Retained earnings 1,654,774 1,462,070

Accumulated other comprehensive loss ( 1,232 ) ( 647 )

Accumulated other comprehensive gain (loss)

Treasury stock, 44,895 and 43,927 shares of common stock held at cost

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

24 unchanged sentences

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Net income $ 34,190 $ 47,154 $ 225,506 $ 171,967

Unrealized loss on investments, net of tax

( 90 ) ( 1,839 ) ( 585 ) ( 1,260 )

Unrealized gain (loss) on investments, net of tax 1,366 30 781 ( 1,230 )

Comprehensive income $ 35,556 $ 47,184 $ 226,287 $ 170,737

43 unchanged sentences

69,372 $ 693 $ 726,852 $ 1,396,393 $ ( 2,176 ) 42,803 $ ( 1,526,545 ) $ 5,139 $ 600,356

Net income attributable to InterDigital, Inc.

— — — 47,941 — — — — 47,941

Net loss attributable to noncontrolling interest — — — — — — — ( 787 ) ( 787 )

Net change in unrealized loss on short-term investments

— — — — 30 — — — 30

Dividends declared ($ 0.40 per share)

— — 328 ( 10,676 ) — — — — ( 10,348 )

Issuance of common stock, net 59 1 ( 2,888 ) — — — — — ( 2,887 )

Amortization of unearned compensation — — 10,335 — — — — — 10,335

Repurchase of common stock — — — — — 653 ( 56,858 ) — ( 56,858 )

BALANCE, SEPTEMBER 30, 2023

69,431 $ 694 $ 734,627 $ 1,433,658 $ ( 2,146 ) 43,456 $ ( 1,583,403 ) $ 4,352 $ 587,782

Common Stock Additional

1 unchanged sentence

Comprehensive

Loss Treasury Stock Non-Controlling

Treasury Stock Non-Controlling

Interest Total

26 unchanged sentences

70,001 $ 699 $ 789,708 $ 1,632,401 $ ( 1,232 ) 44,872 $ ( 1,724,799 ) $ — $ 696,777

Net income attributable to InterDigital, Inc.

— — — 34,190 — — — — 34,190

Net change in unrealized gain (loss) on short-term investments

— — — — 1,366 — — — 1,366

Dividends declared ($ 0.45 per share)

— — 451 ( 11,817 ) — — — — ( 11,366 )

Exercise of common stock options 1 — 11 — — — — — 11

Issuance of common stock, net 53 1 ( 4,602 ) — — — — — ( 4,601 )

Share-based compensation

— — 9,081 — — — — — 9,081

Repurchase of common stock — — — — — 23 ( 2,917 ) — ( 2,917 )

Settlement of the 2024 Warrants 82 1 ( 5 ) — — — — — ( 4 )

BALANCE, SEPTEMBER 30, 2024

70,137 $ 701 $ 794,644 $ 1,654,774 $ 134 44,895 $ ( 1,727,716 ) $ — $ 722,537

The accompanying notes are an integral part of these statements.

3 unchanged sentences

(in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

Net income $ 225,506 $ 171,967

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 52,165 58,698

14 unchanged sentences

Accrued compensation and other expenses 22,208 ( 8,567 )

Net cash provided by (used in) operating activities 1,863 ( 73,292 )

Net cash provided by operating activities

79,494 237,318

Cash flows from investing activities:

23 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2024

September 30, 2024

BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited, condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the financial position of InterDigital, Inc.

(individually and/or collectively with its subsidiaries referred to as “InterDigital,” the “Company,” “we,” “us” or “our,” unless otherwise indicated) as of June 30, 2024, the results of our operations for the three and six months ended June 30, 2024 and 2023 and our cash flows for the six months ended June 30, 2024 and 2023.

(individually and/or collectively with its subsidiaries referred to as “InterDigital,” the “Company,” “we,” “us” or “our,” unless otherwise indicated) as of September 30, 2024, the results of our operations for the three and nine months ended September 30, 2024 and 2023 and our cash flows for the nine months ended September 30, 2024 and 2023.

The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, accordingly, do not include all of the detailed schedules, information and notes necessary to state fairly the financial condition, results of operations and cash flows in conformity with United States generally accepted accounting principles (“GAAP”).

11 unchanged sentences

Supplemental Cash Flow Information

The following table presents additional supplemental cash flow information for the six months ended June 30, 2024 and 2023 (in thousands):

Six Months Ended June 30,

The following table presents additional supplemental cash flow information for the nine months ended September 30, 2024 and 2023 (in thousands):

Nine Months Ended September 30,

Supplemental cash flow information:

2 unchanged sentences

Non-cash investing and financing activities:

Settlement of the 2024 Hedge Transactions

Dividend payable 11,366 10,348

20 unchanged sentences

Disaggregated Revenue

The following table presents the disaggregation of our revenue for the three and six months ended June 30, 2024 and 2023 (in thousands):

Three Months Ended June 30,

2024 2023 Total Increase/(Decrease)

The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2024 and 2023 (in thousands):

Three Months Ended September 30,

2024 2023 Increase/(Decrease)

Recurring revenues:

6 unchanged sentences

Total revenues $ 128,679 $ 140,106 $ ( 11,427 ) ( 8 ) %

Six Months Ended June 30,

2024 2023 Total Increase/(Decrease)

Nine Months Ended September 30,

2024 2023 Increase/(Decrease)

Recurring revenues:

7 unchanged sentences

(a) Catch-up revenues are comprised of past patent royalties and revenues from static fixed-fee agreements.

During the six months ended June 30, 2024, we recognized $ 84.9 million of revenue that had been included in deferred revenue as of the beginning of the period.

As of June 30, 2024, we had contract assets of $ 201.9 million included within " Accounts receivable " in the condensed consolidated balance sheet.

During the nine months ended September 30, 2024, we recognized $ 119.8 million of revenue that had been included in deferred revenue as of the beginning of the period.

As of September 30, 2024, we had contract assets of $ 161.1 million included within " Accounts receivable " in the condensed consolidated balance sheet.

As of December 31, 2023, we had contract assets of $ 94.6 million included within " Accounts receivable " in the condensed consolidated balance sheet.

Contracted Revenue

Based on contracts signed and committed as of June 30, 2024, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):

Based on contracts signed and committed as of September 30, 2024, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):

Remainder of 2024 $ 84,979

5 unchanged sentences

Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents and restricted cash currently consists of money market and demand accounts.

The following table provides a reconciliation of total cash, cash equivalents and restricted cash as of June 30, 2024, December 31, 2023 and June 30, 2023 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):

June 30, December 31, June 30,

Cash, cash equivalents, and restricted cash currently consist of money market and demand accounts.

The following table provides a reconciliation of total cash, cash equivalents and restricted cash as of September 30, 2024, December 31, 2023 and September 30, 2023 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):

September 30, December 31, September 30,

2024 2023 2023

2 unchanged sentences

Total cash, cash equivalents, and restricted cash

$ 410,780 $ 442,961 $ 525,712

Concentration of Credit Risk and Fair Value of Financial Instruments

2 unchanged sentences

Our accounts receivable and contract assets are derived principally from patent license and technology solutions agreements.

Four licensees comprised 88 % and 84 % of our accounts receivable balance, as of June 30, 2024 and December 31, 2023, respectively.

Four licensees comprised 85 % and 84 % of our accounts receivable balances of September 30, 2024 and December 31, 2023, respectively.

We perform ongoing credit evaluations of our licensees, who generally include large, multinational, wireless telecommunications equipment manufacturers.

13 unchanged sentences

Our financial assets are generally included within short-term investments on our condensed consolidated balance sheets, unless otherwise indicated.

Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of June 30, 2024 and December 31, 2023 (in thousands):

Fair Value as of June 30, 2024

Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of September 30, 2024 and December 31, 2023 (in thousands):

Fair Value as of September 30, 2024

Level 1 Level 2 Level 3 Total

19 unchanged sentences

(b) As of December 31, 2023, $ 5.7 million of commercial paper was included within cash and cash equivalents.

(c) As of June 30, 2024 and December 31, 2023, $ 5.8 million and $ 6.5 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively.

(c) As of September 30, 2024 and December 31, 2023, $ 10.4 million and $ 6.5 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively.

Non-Recurring Fair Value Measurements

During first quarter 2023, we incurred a one-time impairment of $ 2.5 million on our patents held for sale.

During the nine months ended September 30, 2023, we incurred a one-time impairment of $ 2.5 million on our patents held for sale.

We determined the fair value based upon evaluation of market conditions.

Investment in Other Entities

During second quarter 2024 and 2023, we recognized gains of $ 2.2 million and $ 3.1 million, respectively, resulting from fair value changes of one of our long-term strategic investments, which was included within “ Other income, net ” in the condensed consolidated statement of income.

During the three and nine months ended September 30, 2024, we recognized net gains of $ 0.3 million and $ 1.8 million, respectively, resulting from fair value changes of our long-term strategic investments, which was included within “ Other income, net ” in the condensed consolidated statement of income.

During the three and nine months ended September 30, 2023, we recognized gains of $ 6.1 million and $ 9.4 million, respectively, resulting from fair value changes of one of our long-term strategic investments, which was included within “ Other income, net ” in the condensed consolidated statement of income.

Fair Value of Long-Term Debt

Convertible Notes

The principal amount, carrying value and related estimated fair value of the Company's Convertible Notes reported as of June 30, 2024 and December 31, 2023 was as follows (in thousands).

The principal amount, carrying value and related estimated fair value of the Company's Convertible Notes reported as of September 30, 2024 and December 31, 2023 was as follows (in thousands).

The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Amount Carrying

4 unchanged sentences

Technicolor Patent Acquisition Long-term Debt

The carrying value and related estimated fair value of the Technicolor Patent Acquisition long-term debt reported as of June 30, 2024 and December 31, 2023 was as follows (in thousands).

The carrying value and related estimated fair value of the Technicolor Patent Acquisition long-term debt reported as of September 30, 2024 and December 31, 2023 was as follows (in thousands).

The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Value Carrying

1 unchanged sentence

OTHER ASSETS AND LIABILITIES

The amounts included in " Prepaid and other current assets " in the condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023 were as follows (in thousands):

June 30, 2024 December 31, 2023

The amounts included in " Prepaid and other current assets " in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):

September 30, 2024 December 31, 2023

Prepaid assets 35,019 9,353

3 unchanged sentences

Total Prepaid and other current assets $ 128,106 $ 43,976

The amounts included in " Other non-current assets, net " in the condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023 were as follows (in thousands):

June 30, 2024 December 31, 2023

The amounts included in " Other non-current assets, net " in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):

September 30, 2024 December 31, 2023

Tax receivables $ 87,331 $ 76,740

Long-term investments 35,146 31,895

Goodwill 22,421 22,421

Long-term investments 20,667 31,895

Right-of-use assets 15,840 15,746

1 unchanged sentence

Total Other non-current assets, net $ 150,436 $ 149,656

The amounts included in " Other accrued expenses " in the condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023 were as follows (in thousands):

June 30, 2024 December 31, 2023

The amounts included in " Other accrued expenses " in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):

September 30, 2024 December 31, 2023

Accrued legal fees $ 20,616 $ 10,338

2 unchanged sentences

Total Other accrued expenses $ 42,289 $ 98,042

The amounts included in " Other long-term liabilities " in the condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023 were as follows (in thousands):

June 30, 2024 December 31, 2023

The amounts included in " Other long-term liabilities " in the condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023 were as follows (in thousands):

September 30, 2024 December 31, 2023

Deferred compensation liabilities $ 19,560 $ 18,413

7 unchanged sentences

The 2027 Notes will be convertible into cash up to the aggregate principal amount of the notes to be converted and in respect of the remainder, if any, of the Company’s obligation in excess of the aggregate principal amount of the notes being converted, pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 12.9041 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $ 77.49 per share).

From the period January 1, 2024 through September 30, 2024, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes.

As such, the 2027 Notes are included in " Current portion of long-term debt " in our condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023.

From the period January 1, 2024 through December 31, 2024, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes.

As such, the 2027 Notes are included in " Current portion of long-term debt " in our condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023.

The 2027 Notes are the Company’s senior unsecured obligations and rank equally in right of payment with any of the Company’s current and any future senior unsecured indebtedness.

The 2027 Notes are effectively subordinated to all of the Company’s future secured indebtedness, if any, to the extent of the value of the related collateral, and the 2027 Notes are structurally subordinated to indebtedness and other liabilities, including trade payables, of the Company’s subsidiaries.

On May 24 and May 25, 2022, in connection with the offering of the 2027 Notes, we entered into convertible note hedge transactions that cover, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock, in the aggregate, at a strike price that initially corresponds to the initial conversion price of the 2027 Notes, subject to adjustment, and are exercisable upon any conversion of the 2027 Notes.

Also on May 24 and May 25, 2022, we entered into privately negotiated warrant transactions, whereby we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock.

As of June 30, 2024, the warrants under the 2027 Warrant Transactions had a weighted average strike price of $ 106.31 per share, subject to adjustment.

On May 24 and May 25, 2022, in connection with the offering of the 2027 Notes, we entered into convertible note hedge transactions ("2027 Note Hedge Transactions") that cover, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock, in the aggregate, at a strike price that initially corresponds to the initial conversion price of the 2027 Notes, subject to adjustment, and are exercisable upon any conversion of the 2027 Notes.

Also, on May 24 and May 25, 2022, we entered into privately negotiated warrant transactions ("2027 Warrant Transactions"), whereby we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock.

As of September 30, 2024, the warrants under the 2027 Warrant Transactions had a weighted average strike price of $ 106.31 per share, subject to adjustment, and mature beginning September 2027 through April 2028.

2024 Notes, and Related Note Hedge and Warrant Transactions

6 unchanged sentences

This issuance was effectively offset by our receipt of 0.3 million shares from the settlement of the 2024 Note Hedge Transactions.

No shares have been issued related to the 2024 Warrant Transactions as of June 30, 2024, and warrants to acquire 1.6 million shares of common stock at an initial strike price of approximately $ 109.43 per share, subject to adjustment, remain outstanding.

The 2024 Warrants settle during the period September 3, 2024 through December 17, 2024.

The following table reflects the carrying value of our Convertible Notes long-term debt as of June 30, 2024 and December 31, 2023 (in thousands):

June 30, 2024 December 31, 2023

The 2024 Warrants settle during the period September 3, 2024 through December 17, 2024 on a net-share basis.

0.1 million shares have been issued related to the 2024 Warrant Transactions as of September 30, 2024, and warrants to acquire 1.1 million shares of common stock at an initial strike price of approximately $ 109.43 per share, subject to adjustment, remain outstanding.

The following table reflects the carrying value of our Convertible Notes long-term debt as of September 30, 2024 and December 31, 2023 (in thousands):

September 30, 2024 December 31, 2023

3.50 % Senior Convertible Notes due 2027

5 unchanged sentences

Long-term net carrying amount of the Convertible Notes $ — $ —

The following table presents the amount of interest cost recognized, which is included within " Interest expense" in our condensed consolidated statements of income, for the three and six months ended June 30, 2024 and 2023 relating to the contractual interest coupon and the amortization of deferred financing costs of the Convertible Notes (in thousands):

Three Months Ended June 30,

The following table presents the amount of interest cost recognized, which is included within " Interest expense" in our condensed consolidated statements of income, for the three and nine months ended September 30, 2024 and 2023 relating to the contractual interest coupon and the amortization of deferred financing costs of the Convertible Notes (in thousands):

Three months ended September 30,

2027 Notes 2024 Notes Total 2027 Notes 2024 Notes Total

2 unchanged sentences

Total $ 4,508 $ — $ 4,508 $ 4,473 $ 778 $ 5,251

Six Months Ended June 30,

Nine months ended September 30,

2027 Notes 2024 Notes Total 2027 Notes 2024 Notes Total

7 unchanged sentences

("CPPIB Credit"), a wholly owned subsidiary of Canada Pension Plan Investment Board, is a third-party investor in the Madison Arrangement.

CPPIB Credit has made certain payments to Technicolor and Sony and has agreed to contribute cash to fund certain capital reserve obligations under the arrangement in exchange for a percentage of future revenues, specifically through September 11, 2030 in regard to the Technicolor patents.

CPPIB Credit made certain payments to Technicolor and Sony and agreed to contribute cash to fund certain capital reserve obligations under the arrangement in exchange for a percentage of future revenues, specifically through September 11, 2030 in regard to the Technicolor patents.

Upon our assumption of Technicolor’s rights and obligations under the Madison Arrangement, our relationship with CPPIB Credit meets the criteria in ASC 470-10-25 - Sales of Future Revenues or Various Other Measures of Income ("ASC 470"), which relates to cash received from an investor in exchange for a specified percentage or amount of revenue or other measure of income of a particular product line, business segment, trademark, patent, or contractual right for a defined period.

1 unchanged sentence

This initial fair value measurement was based on the perspective of a market participant and included significant unobservable inputs which are classified as Level 3 inputs within the fair value hierarchy.

The fair value of the long-term debt as of June 30, 2024 and December 31, 2023 is disclosed within Note 3, " Cash, Concentration of Credit Risk and Fair Value of Financial Instruments.

The fair value of the long-term debt as of September 30, 2024 and December 31, 2023 is disclosed within Note 3, " Cash, Concentration of Credit Risk and Fair Value of Financial Instruments.

" Our repayment obligations are contingent upon future royalty revenues generated from the Madison Arrangement and there are no minimum or maximum payments under the arrangement.

4 unchanged sentences

This rate represents the discount rate that equates the estimated future cash flows with the fair value of the debt as of the acquisition date and is used to compute the amount of interest to be recognized each period based on the estimated life of the future revenue streams.

During the three and six months ended June 30, 2024, we recognized $ 1.0 million and $ 1.6 million, respectively, of interest expense related to this debt, compared to $ 1.0 million and $ 1.3 million during the three and six months ended June 30, 2023, respectively.

During the three and nine months ended September 30, 2024, we recognized $ 0.6 million and $ 2.2 million, respectively, of interest expense related to this debt, compared to $ 1.1 million and $ 2.5 million during the three and nine months ended September 30, 2023, respectively.

This was included within “ Interest Expense ” in the condensed consolidated statements of income.

Any future payments made to CPPIB Credit, or additional proceeds received from CPPIB Credit, will decrease or increase the long-term debt balance accordingly.

We made $ 12.9 million in payments to CPPIB Credit during the six months ended June 30, 2024 and no payments were made during the six months ended June 30, 2023.

We made $ 12.9 million in payments to CPPIB Credit during the nine months ended September 30, 2024, and no payments were made during the nine months ended September 30, 2023.

Technicolor Contingent Consideration

1 unchanged sentence

Under the revenue-sharing arrangement, Technicolor receives 42.5 % of future cash receipts from new licensing efforts from the Madison Arrangement only, subject to certain conditions and hurdles.

As of June 30, 2024, the contingent consideration liability from the revenue-sharing arrangement was deemed not probable and is therefore not reflected within the consolidated financial statements.

As of September 30, 2024, the contingent consideration liability from the revenue-sharing arrangement was deemed not probable and is therefore not reflected within the consolidated financial statements.

LITIGATION AND LEGAL PROCEEDINGS

ARBITRATIONS AND COURT PROCEEDINGS

In fourth quarter 2024, the Company reached an agreement with Lenovo Group Limited and certain of its subsidiaries (“Lenovo”) to enter into binding arbitration to determine the final terms of a new patent license agreement, which will be effective from January 1, 2024.

As part of the agreement to arbitrate, both parties have agreed to dismiss all pending litigations between them.

UK Proceedings

On August 27, 2019, the Company and certain of its subsidiaries filed a claim in the UK High Court against Lenovo Group Limited and certain of its subsidiaries.

The claim, as amended, alleges infringement of five of the Company’s patents relating to 3G and/or 4G/LTE standards:

European Patent (UK) Nos.

and 3,355,537.

In August 2019, the Company and certain of its subsidiaries filed a claim in the UK High Court against Lenovo.

The claim, as amended, alleged infringement of five of the Company ’s patents relating to 3G and/or 4G/LTE standards.

The Company sought, among other relief, injunctive relief to prevent further infringement of the asserted patents or, in the alternative, a determination of the terms of a FRAND license.

On July 29, 2021, the UK High Court issued its decision regarding the first technical trial finding European Patent (UK) No.

2,485,558 valid, infringed, and essential to Release 8 of LTE.

Lenovo appealed this decision, and on January 19, 2023, the UK Court of Appeal upheld the UK High Court’s findings that Lenovo is infringing on InterDigital’s valid and essential patent.

On January 6, 2022, the UK High Court issued its decision regarding the second technical trial finding European Patent (UK) No.

3,355,537 invalid, but essential and infringed but for the finding of invalidity.

The Company appealed this decision as legally erroneous, and on February 9, 2023, the UK Court of Appeal allowed the appeal, finding that Lenovo is infringing on InterDigital’s valid and essential patent.

On January 31, 2023, the UK High Court issued its decision regarding the third technical trial finding European Patent (UK) No.

2,421,318 valid, essential, and infringed.

On March 7, 2023, the UK High Court issued an order staying all deadlines with respect to the fourth and fifth technical trials.

Between 2021 and 2023, three of the Company’s European Patents were found by UK courts to be valid, essential and infringed by Lenovo.

In March 2023, the UK High Court issued an order staying all deadlines with respect to the fourth and fifth technical trials.

On March 16, 2023, the UK High Court issued its order regarding judgment in the trial to determine how much Lenovo must pay for a license to the Company’s portfolio of cellular assets, awarding the Company a lump sum of $ 138.7 million for such license through December 31, 2023.

1 unchanged sentence

The court also found that the Company should pay a portion of Lenovo’s costs and granted both parties permission to appeal on certain grounds.

Both parties filed Appellant’s Notices and the appeals were docketed on July 31, 2023.

On September 19, 2023, the Court of Appeal granted the Company permission to appeal on all its requested grounds.

The appeal was heard on June 10-14, 2024, and the UK Court of Appeal issued its decision on July 12, 2024.

The UK Court of Appeal ruled in favor of InterDigital and awarded the Company an additional amount of $ 55.2 million to a total of approximately $ 240.1 million.

Both parties appealed certain aspects of the ruling, and in July 2024, the UK Court of Appeal ruled in favor of InterDigital and awarded the Company an additional amount of $ 55.2 million to a total of approximately $ 240.1 million.

It rejected Lenovo’s appeal in its entirety and confirmed that Lenovo must pay for all of its past sales starting from 2007 through December 31, 2023.

The court also found that Lenovo should pay the Company’s costs for the appeal and reduced the costs that Lenovo was awa rded from the initial decision.

Lenovo sought permission to appeal, and permission to appeal was refused by the UK Court of Appeals on July 12, 2024.

Lenovo has until August 9, 2024 to file a request for an appeal directly with the UK Supreme Court.

On September 24, 2023, Lenovo filed a new claim in the UK High Court against the Company.

The claim alleges invalidity of two of the Company’s patents relating to 4G/LTE standards:

European Patent (UK) Nos.

2,557,714 and 2,557,715.

Lenovo sought, among other relief, a declaration that the patents at issue are invalid, not essential, and not infringed, revocation of the patents at issue, and a declaration that, upon expiration of the current license in 2023, Lenovo is licensed under terms to be determined by the UK High Court through 2028 or, in the alternative, a determination of the terms of a FRAND license.

On October 19, 2023, Lenovo filed a request for an order that the Company indicate whether it is prepared to give an unconditional undertaking to enter into a global license on terms set by the UK Court, or failing that, a declaration that the Defendants are unwilling licensors;

a hearing was held on December 12, 2023 where Lenovo agreed to stay its application.

On November 22, 2023, the Company filed a jurisdiction challenge.

A hearing on the jurisdiction challenge took place on April 24-25, 2024, and on April 25, 2024 the jurisdiction challenge was denied.

On November 28, 2023, Lenovo filed an application seeking an expedited FRAND trial and an interim license until a FRAND decision is issued in the UK.

A hearing on the interim license was held on February 26-27, 2024;

on March 21, 2024 the UK High Court denied Lenovo’s request for the interim license.

A hearing on Lenovo’s request for an expedited FRAND trial was held on July 17, 2024.

The court also found that Lenovo should pay the Company’s costs for the appeal and reduced the costs that Lenovo was awarded from the initial decision.

Lenovo sought permission to appeal, and permission to appeal was refused by the UK Court of Appeals.

Lenovo filed an application to the UK Supreme Court requesting permission to appeal on August 9, 2024;

Lenovo withdrew its application to appeal in October 2024 following entry into the arbitration agreement described above.

On September 24, 2023, Lenovo filed a new claim in the UK High Court, which alleged invalidity of two of the Company’s patents relating to 4G/LTE standards.

Lenovo sought, among other relief, a declaration that the patents at issue were invalid, not essential, and not infringed, revocation of the patents at issue, and a declaration that, upon expiration of the current license in 2023, Lenovo is licensed under terms to be determined by the UK High Court through 2028 or, in the alternative, a determination of the terms of a FRAND license.

In October 2023, Lenovo filed a request for an order that the Company indicate whether it is prepared to give an unconditional undertaking to enter into a global license on terms set by the UK Court, or failing that, a declaration that the Defendants are unwilling licensors;

a hearing was held in December 2023 during which Lenovo agreed to stay its application.

The Company filed a jurisdiction challenge in October 2023, and a hearing on such challenge took place in April 2024, following which, the jurisdiction challenge was denied.

In November 2023, Lenovo filed an application seeking an expedited FRAND trial and an interim license until a FRAND decision is issued in the UK.

A hearing on the interim license was held in February 2024;

in March 2024 the UK High Court denied Lenovo’s request for the interim license.

A FRAND trial was set for June-July 2025.

District of Delaware Patent Proceedings

On August 28, 2019, the Company and certain of its subsidiaries filed a complaint in the United States District Court for the District of Delaware (the "Delaware District Court") against Lenovo Holding Company, Inc.

and certain of its subsidiaries alleging that Lenovo infringes eight of the Company’s U.S.

and 9,456,449-by making, using, offering for sale, and/or selling Lenovo wireless devices with 3G and/or 4G LTE capabilities.

As relief, InterDigital is seeking:

In August 2019, the Company and certain of its subsidiaries filed a complaint in the United States District Court for the District of Delaware (the "Delaware District Court") against Lenovo alleging that Lenovo infringes eight of the Company’s U.S.

patents by making, using, offering for sale, and/or selling Lenovo wireless devices with 3G and/or 4G LTE capabilities.

As relief, InterDigital sought:

(a) a declaration that the Company is not in breach of its relevant FRAND commitments with respect to Lenovo;

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and (d) attorneys’ fees and costs.

On September 16, 2020, the Delaware District Court entered a schedule for the case, setting a patent jury trial.

On March 8, 2021, the Delaware District Court held a claim construction hearing, and the court issued its order on May 10, 2021, construing various disputed terms.

On March 24, 2021, the Delaware District Court consolidated the antitrust proceeding discussed below with this patent proceeding.

On April 25, 2022, the parties filed a stipulation to stay only the claims relating to U.S.

The stipulation was granted.

On January 13, 2023, Lenovo filed a motion to sever and stay the Company’s patent infringement claims, requesting that its Sherman Act and breach of FRAND claims proceed to trial.

On June 30, 2023, the parties submitted an update to the Court requesting that the entire case be stayed, and on July 18, 2023, the court ordered that the case be stayed pending resolution of all appeals in the UK proceedings.

In June 2023, the parties requested that the entire case be stayed pending resolution of all appeals in the UK proceedings, and this request was granted.

District of Delaware Antitrust Proceedings

On April 9, 2020, Lenovo (United States) Inc.

and Motorola Mobility LLC filed a complaint in the Delaware District Court against the Company and certain of its subsidiaries.

The complaint alleges that the Company defendants have violated Sections 1 and 2 of the Sherman Act in connection with, among other things, their licensing of 3G and 4G standards essential patents ("SEPs").

The complaint further alleges that the Company defendants have violated their commitment to the ETSI with respect to the licensing of 3G and 4G SEPs on FRAND terms and conditions.

The complaint seeks, among other things (i) rulings that the Company defendants have violated Sections 1 and 2 of the Sherman Act and are liable for breach of their ETSI FRAND commitments, (ii) a judgment that the plaintiffs are entitled to a license with respect to the Company’s 3G and 4G SEPs on FRAND terms and conditions, and (iii) injunctions against any demand for allegedly excessive royalties or enforcement of the Company defendants’ 3G and 4G U.S.

In April 2020, Lenovo and Motorola Mobility LLC filed a complaint in the Delaware District Court against the Company and certain of its subsidiaries, alleging that the Company defendants violated Sections 1 and 2 of the Sherman Act in connection with, among other things, their licensing of 3G and 4G standards essential patents ("SEPs").

The complaint further alleged that the Company defendants have violated their commitment to the ETSI with respect to the licensing of 3G and 4G SEPs on FRAND terms and conditions.

The complaint sought, among other things (i) rulings that the Company defendants have violated Sections 1 and 2 of the Sherman Act and are liable for breach of their ETSI FRAND commitments, (ii) a judgment that the plaintiffs are entitled to a license with respect to the Company’s 3G and 4G SEPs on FRAND terms and conditions, and (iii) injunctions against any demand for allegedly excessive royalties or enforcement of the Company defendants’ 3G and 4G U.S.

SEPs against the plaintiffs or their customers via patent infringement proceedings.

On June 22, 2020, the Company filed a motion to dismiss Lenovo’s Sherman Act claims with prejudice, and to dismiss Lenovo’s breach of contract claim with leave to re-file as a counterclaim in the Company’s legal proceeding against Lenovo in the Delaware District Court discussed above.

On March 24, 2021, the Delaware District Court ruled on the Company’s motion to dismiss.

The Delaware District Court dismissed the Sherman Act Section 1 claim without prejudice, denied the motion to dismiss the Sherman Act Section 2 claim, and consolidated the Section 2 and breach of contract claims with Company’s Delaware patent proceeding discussed above.

Accordingly, these claims have been stayed pending resolution of all appeals in the UK proceedings.

In June 2020, the Company filed a motion to dismiss Lenovo’s Sherman Act claims with prejudice, and to dismiss Lenovo’s breach of contract claim with leave to re-file as a counterclaim in the Company’s legal proceeding against Lenovo in the Delaware District Court discussed above.

In March 2021, the Delaware District Court dismissed the Sherman Act Section 1 claim without prejudice, denied the motion to dismiss the Sherman Act Section 2 claim, and consolidated the Section 2 and breach of contract claims with Company’s Delaware patent proceeding discussed above.

International Trade Commission and Companion District Court Proceedings

On September 1, 2023, the Company and certain of its subsidiaries filed a complaint in the United States International Trade Commission (the "International Trade Commission") against Lenovo Group Ltd.

and certain of its subsidiaries alleging that Lenovo infringes five of the Company’s U.S.

patents (U.S.

10,250,877, 8,674,859, 9,674,556, 9,173,054, and 8,737,933) by making, using, offering for sale, and/or selling certain electronic devices, including smartphones, computers, tablet computers, and components thereof that infringe certain claims of the asserted patents.

As relief, the Company is seeking:

In September 2023, the Company and certain of its subsidiaries filed a complaint in the United States International Trade Commission (the "International Trade Commission") alleging that Lenovo infringes five of the Company’s U.S.

patents by making, using, offering for sale, and/or selling certain electronic devices, including smartphones, computers, tablet computers, and components thereof that infringe certain claims of the asserted patents.

As relief, the Company sought:

(a) a limited exclusion order against Lenovo barring from entry into the United States all of Lenovo’s products that infringe the asserted patents;

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and (c) a bond during the 60-day Presidential review period.

On October 5, 2023, the International Trade Commission instituted the requested investigation.

The hearing is scheduled for August 14-20, 2024.

The Initial Determination is expected to be issued by January 13, 2025, and the Final Determination is expected to be issued by May 13, 2025 .

On September 1, 2023, the Company and certain of its subsidiaries filed a complaint in the United States District Court for the Eastern District of North Carolina (the "North Carolina District Court") against Lenovo Group Ltd.

and certain of its subsidiaries alleging that Lenovo infringes five of the Company’s U.S.

patents (U.S.

10,250,877, 8,674,859, 9,674,556, 9,173,054, and 8,737,933) by making, using, offering for sale, and/or selling Lenovo smartphones, computers (including both laptop and desktop), and tablet computers that utilize the Company’s patented technology.

As relief, the Company is seeking:

An evidentiary hearing was held in August 2024.

Also in September 2023, the Company and certain of its subsidiaries filed a complaint in the United States District Court for the Eastern District of North Carolina (the "North Carolina District Court") alleging that Lenovo infringes those same five of the Company’s U.S.

As relief, the Company sought:

(a) a finding that Lenovo is liable for infringement of the asserted patents;

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and (d) costs.

Lenovo filed its answer and counterclaims and motion to dismiss a portion of the complaint on October 10, 2023, which remains pending.

On October 31, 2023, the Company filed its answer to Lenovo’s counterclaims, an amended complaint, as well as a motion to dismiss certain of Lenovo’s counterclaims, which was denied on March 25, 2024.

On February 23, 2024, Lenovo filed a Motion for Judgment on the Pleadings, alleging three of the asserted patents are invalid.

On July 17, 2024, the North Carolina District Court granted Lenovo’s Motion for Judgment on the Pleadings in part, finding two of the asserted patents to be invalid, and denied Lenovo’s motion with respect to a third asserted patent that was challenged by Lenovo.

Germany Proceedings

On September 22, 2023, the Company filed a complaint with the Munich Regional Court against Lenovo and certain of its affiliates, alleging infringement of European Patent No.

2,127,420, relating to cellular 4G/LTE and/or 5G standards.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

On May 2, 2024, the Munich Regional Court issued a judgment finding Lenovo infringes European Patent No.

2,127,420 and that the Company complied with its FRAND obligations while Lenovo did not;

In September 2023, the Company filed a complaint with the Munich Regional Court against Lenovo and certain of its affiliates, alleging infringement of a European patent relating to cellular 4G/LTE and/or 5G standards.

The Company sought, among other relief, injunctive relief to prevent further infringement of the asserted patents.

In May 2024, the Munich Regional Court issued a judgment finding Lenovo infringed the Company’s European patent and that the Company complied with its FRAND obligations while Lenovo did not;

the Court ordered Lenovo to cease and desist selling infringing products.

The Company served Lenovo with an enforcement note of the judgment on May 7, 2024.

Lenovo appealed the judgment on May 2, 2024.

On May 7, 2024, Lenovo requested a stay of the enforcement of the judgment, and on June 25, 2024, the Munich Regional Court rejected Lenovo’s request.

The Company served Lenovo with an enforcement note of the judgment in May 2024.

Lenovo appealed the judgment and requested a stay of the enforcement of the judgment, and in June 2024, the Munich Regional Court rejected Lenovo’s request.

Oppo, OnePlus and realme

In fourth quarter 2024, the Company entered into a license agreement with Guangdong Oppo Mobile Telecommunications Corp., Ltd.

(“Oppo”) and certain of its subsidiaries and affiliates, (collectively, “Oppo Group”).

As part of the license agreement, both parties have agreed to dismiss all pending litigations between them.

UK Proceedings

On December 20, 2021, the Company filed a patent infringement claim in the UK High Court against Guangdong Oppo Mobile Telecommunications Corp., Ltd.

(“Oppo”) and certain of its affiliates, OnePlus Technology (Shenzhen) Co., Ltd.

In December 2021, the Company filed a patent infringement claim in the UK High Court against Oppo and certain of its affiliates, OnePlus Technology (Shenzhen) Co., Ltd.

(“OnePlus”) and certain of its affiliates, and realme Mobile Telecommunications (Shenzhen) Co., Ltd.

(“realme”) and certain of its affiliates, alleging infringement of European Patent (UK) Nos.

and 3,355,537 relating to cellular 3G, 4G/LTE or 5G standards.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

On March 24, 2023, the parties agreed to stay all technical trials on the basis that European Patent No.

2,485,558 is valid and essential based on the result of Technical Trial A in the Lenovo UK proceedings .

The FRAND trial to determine the royalties to be paid under the license with Oppo was held from March 1 - April 16, 2024;

judgment is pending.

(“realme”) and certain of its affiliates, collectively, Oppo Group, alleging infringement of the Company’s European patents relating to cellular 3G, 4G/LTE or 5G standards.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

In March 2023, the parties agreed to stay all technical trials.

The FRAND trial to determine the royalties to be paid under the license with Oppo was held in March and April 2024;

a second hearing was held in September 2024 regarding the parties’ submissions relating to the UK Court of Appeal ’s decision in the Lenovo litigation.

India Proceedings

On December 20, 2021 and December 22, 2021, the Company and certain of its subsidiaries filed patent infringement claims in the Delhi High Court in New Delhi, India against Oppo and certain of its affiliates , OnePlus and certain of its affiliates, and realme Mobile Telecommunication (India) Private Limited, alleging infringement of Indian Patent Nos.

262910, 295912, 313036, 320182, 319673, 242248, 299448, and 308108 relating to cellular 3G, 4G/LTE, and/or 5G, and HEVC standards.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

On February 21, 2024, the Delhi High Court granted the Company ’s application for pro tem security.

Oppo appealed the judgment on March 13, 2024, and the appeal is pending.

Evidentiary trial proceedings are expected to take place from September 2024 through December 2024.

In December 2021, the Company and certain of its subsidiaries filed patent infringement claims in the Delhi High Court in New Delhi, India against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme Mobile Telecommunication (India) Private Limited, alleging infringement of certain of the Company’s Indian patents relating to cellular 3G, 4G/LTE, and/or 5G, and HEVC standards.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

In February 2024, the Delhi High Court granted the Company’s application for pro tem security, and Oppo appealed.

Evidentiary trial proceedings began in October 2024 and were expected to take place through December 2024.

Germany Proceedings

On December 20, 2021, a subsidiary of the Company filed three patent infringement claims, two in the Munich Regional Court and one in the Mannheim Regional Court, against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme and certain of its affiliates, alleging infringement of European Patent Nos.

and 2,421,318 relating to cellular 3G, 4G/LTE and/or 5G standards.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Munich Regional Court held a hearing on March 2, 2023 regarding European Patent No.

2,127,420, and a second hearing was held on November 23, 2023.

On December 21, 2023, the Munich Regional Court issued a decision finding infringement and issuing an injunction against Oppo.

Oppo filed an appeal of this decision on January 22, 2024, which is pending.

On March 10, 2023, the Munich Regional Court entered a stay of the proceedings regarding European Patent No.

On November 30, 2023, the Munich Regional Court entered a stay of proceedings regarding European Patent No.

In December 2021, a subsidiary of the Company filed three patent infringement claims, two in the Munich Regional Court and one in the Mannheim Regional Court, against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme and certain of its affiliates, alleging infringement of certain of the Company’s European patents relating to cellular 3G, 4G/LTE and/or 5G standards.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Munich Regional Court held hearings in March and December 2023, and in December 2023, the Munich Regional Court issued a decision finding infringement and issuing an injunction against Oppo.

Oppo appealed this decision.

In March and November 2023, the Munich Regional Court entered stays of the proceedings in respect of specific patents.

China Proceedings

On January 19, 2022, the Company was informed that Oppo had purportedly filed a complaint against the Company in the Guangzhou Intellectual Property Court (the “Guangzhou IP Court”) seeking a determination of a global FRAND royalty rate for the Company’s 3G, 4G, 5G, 802.11 and HEVC SEPs.

On May 20, 2022, the Company filed an application challenging, among other things, process of service and the jurisdiction of the Guangzhou IP Court.

On January 12, 2023, the Guangzhou IP Court denied the application.

On February 28, 2023, the Company filed an appeal to the decision.

The Supreme People’s Court denied the appeal on September 7, 2023.

An initial evidentiary hearing was held on October 13, 2023.

In January 2022, the Company was informed that Oppo had purportedly filed a complaint against the Company in the Guangzhou Intellectual Property Court (the “Guangzhou IP Court”) seeking a determination of a global FRAND royalty rate for the Company’s 3G, 4G, 5G, 802.11 and HEVC SEPs.

In May 2022, the Company filed an application challenging, among other things, process of service and the jurisdiction of the Guangzhou IP Court.

The Guangzhou IP Court denied the application, and the Company appealed that decision.

The Supreme People’s Court denied the appeal, and an initial evidentiary hearing was held in October 2023.

Spain Proceedings

On March 1, 2022, a subsidiary of the Company filed patent infringement claims in the Barcelona Commercial Courts against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme and certain of its affiliates.

The Company filed its amended complaint on April 25, 2022, alleging infringement of European Patent Nos.

and 2,557,715 relating to cellular 3G, 4G/LTE and/or 5G standards.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents .

Oppo filed its reply, invalidity counterclaims, and defenses on July 31.

The Company filed its response to Oppo’s counterclaims on December 20, 2023.

In March 2022, a subsidiary of the Company filed patent infringement claims in the Barcelona Commercial Courts against Oppo and certain of its affiliates, OnePlus and certain of its affiliates, and realme and certain of its affiliates.

The Company filed an amended complaint in April 2022, alleging infringement of certain of its European patents relating to cellular 3G, 4G/LTE and/or 5G standards.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

Evidentiary trial proceedings were scheduled to take place in May 2025.

The Company reached an agreement with Samsung Electronics Co.

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On March 31, 2023, the Company filed a request for arbitration with the International Chamber of Commerce.

On July 21, 2023, the International Chamber of Commerce confirmed the full tribu nal for the arbitration.

On July 21, 2023, the International Chamber of Commerce confirmed the full tribunal for the arbitration.

The two-week arbitration hearing was held in July 2024 , and we expect a decision by the end of 2024.

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the Company also sought permission to appeal on two limited grounds conditionally, should Tesla’s request for an appeal be granted.

The appeal hearing is scheduled to take place on December 2-3, 2024.

We are party to certain other disputes and legal actions in the ordinary course of business, including arbitrations and legal proceedings with licensees regarding the terms of their agreements and the negotiation thereof.

We do not currently believe that these matters, even if adversely adjudicated or settled, would have a material adverse effect on our financial condition, results of operations or cash flows.

None of the preceding matters have met the requirements for accrual or disclosure of a potential range as of June 30, 2024 , except as noted above.

In the six months ended June 30, 2024 and 2023, the Company had an estimated effective tax rate of 18.6 % and 14.5 %, respectively.

None of the preceding matters have met the requirements for accrual or disclosure of a potential range as of September 30, 2024, except as noted above.

In the nine months ended September 30, 2024 and 2023, the Company had an estimated effective tax rate of 18.4 % and 14.7 %, respectively.

The change in effective tax rate is due to a decrease in the amount of Foreign Derived Intangible Income deduction benefit available to the Company.

In addition, the Company is subject to an increase in the Global Intangible Low-Tax Income inclusion derived from the increase in revenue in certain foreign jurisdictions.

The effective tax rate in the six months ended June 30, 2023 was impacted by losses in certain jurisdictions where the Company recorded a valuation allowance against the related tax benefit.

Excluding this valuation allowance, our effective tax rate for the six months ended June 30, 2023 would have been 13.0 %.

During both the six months ended June 30, 2024 and 2023, the Company recorded discrete net benefits of $ 2.4 million and $ 1.2 million, respectively, primarily related to share-based compensation.

The effective tax rate in the nine months ended September 30, 2023 was impacted by losses in certain jurisdictions where the Company recorded a valuation allowance against the related tax benefit.

Excluding this valuation allowance, our effective tax rate for the nine months ended September 30, 2023 would have been 13.4 %.

During both the nine months ended September 30, 2024 and 2023, the Company recorded discrete net benefits of $ 4.3 million and $ 2.9 million, respectively, primarily related to share-based compensation.

The effective tax rate reported in any given year will continue to be influenced by a variety of factors, including timing differences between the recognition of book and tax revenue, the level of pre-tax income or loss, the foreign vs.

domestic classification of the Company’s customers, and any discrete items that may occur.

During the six months ended June 30, 2024 and 2023, the Company paid approximately $ 13.4 million and $ 6.0 million, respectively, in foreign source creditable withholding tax.

During the nine months ended September 30, 2024 and 2023, the Company paid approximately $ 14.5 million and $ 8.4 million, respectively, in foreign source creditable withholding tax.

NET INCOME PER SHARE

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The following tables reconcile the numerator and the denominator of the basic and diluted net income per share computation (in thousands, except for per share data):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

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Set forth below are the securities and the weighted average number of shares of common stock underlying such securities that were excluded from our computation of EPS for the periods presented (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

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OTHER INCOME, NET

The amounts included in " Other income, net " in the condensed consolidated statements of income for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

The amounts included in " Other income, net " in the condensed consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

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Other income, net $ 12,554 $ 14,725 $ 33,483 $ 42,303

The change in Other income, net was primarily due to a foreign currency translation net loss arising from translation of our foreign subsidiaries of $ 0.9 million and $ 3.3 million in the three and six months ended June 30, 2024, respectively, compared to net gains of $ 0.4 million and $ 1.2 million in three and six months ended June 30, 2023, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements