InterDigital, Inc.IDCC

InterDigital, Inc. Leases Disclosure

10-KFiled Feb 5, 20263 min read
LEASES
The Company enters into operating leases primarily for real estate to support research and development ("R&D") sites and general office space in North America, with additional locations in Europe, China, and Canada. The Company does not currently have any finance leases. Certain leases include options to extend the lease at our discretion at the end of the lease term, or terminate the lease early subject to certain conditions and penalties. We do not include any renewal options in our lease terms for calculating our lease liabilities, as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options.
At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the specific facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable, and as such, the Company utilizes its incremental borrowing rate as the discount rate based on information available on the lease commencement date. Our incremental borrowing rate represents the rate we would incur to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. The table below includes the balances of operating lease right-of-use assets and operating lease liabilities as of December 31, 2025 and 2024 (in thousands):
Balance Sheet ClassificationDecember 31, 2025December 31, 2024
Assets
Operating lease right-of-use assets, netOther non-current assets, net$13,797 $15,218 
Total Lease Assets$13,797 $15,218 
Liabilities
Operating lease liabilities - CurrentOther accrued expenses$4,093 $3,398 
Operating lease liabilities - NoncurrentOther long-term liabilities13,540 15,772 
Total Lease Liabilities$17,633 $19,170 
The components of lease costs which were included within operating expenses in our consolidated statement of income were as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease cost$4,059 $3,982 $3,821 
Short-term lease cost174 246 388 
Variable lease cost1,177 1,376 1,316 
For the years ended December 31, 2025, 2024, and 2023, we did not have any sublease income. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2025 and 2024 was $4.6 million and $4.1 million, respectively, and was included in net cash provided by operating activities in our consolidated statement of cash flows. As of December 31, 2025, the weighted average remaining operating lease term was 4.4 years and the weighted average discount rate used to determine the operating lease liabilities was 6.2%. As of December 31, 2025, there have been no leases entered into that have not yet commenced.
The maturities of our operating lease liabilities as of December 31, 2025, excluding short-term leases with terms less than 12 months, were as follows (in thousands):
Maturity of Operating Lease Liabilities
2026$5,043 
20274,571 
20284,014 
20293,646 
20302,224 
Thereafter630 
Total lease payments20,128 
Less: Imputed interest(2,495)
Present value of lease liabilities$17,633 
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Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 6, 2025
2023Feb 15, 2024
2022Feb 15, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 20, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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