InterDigital, Inc.IDCC

InterDigital, Inc. Segments Disclosure

10-KFiled Feb 5, 20262 min read
SEGMENT AND CONCENTRATION INFORMATION
Segment Performance Measures and Expenses
Our chief operating decision maker (“CODM”), who is the Chief Executive Officer, assesses company-wide performance and allocates resources based on consolidated financial information. Consequently, we view the entire organization as one reportable segment and the strategic purpose of all operating activities is to support that one segment. The CODM evaluates company-wide performance based on multiple performance measures, including, but not limited to, net income. Our CODM does not generally evaluate our performance using asset or historical cash flow information.
The table below provides the calculation of net income, which is the performance measure that is most consistent with GAAP, and the significant operating expenses included in this performance measure (in thousands):

 
Year Ended December 31,
 202520242023
Revenue$834,015 $868,516 $549,588 
Less:
Departmental expenses (a)
193,465 175,636 162,318 
Depreciation and amortization77,531 69,913 77,792 
Litigation48,870 56,171 48,790 
Share-based compensation43,156 45,966 35,741 
Revenue share costs10,140 81,318 3,332 
Other non-operating expense (income), net (b)
(8,579)10,096 (12,995)
Income tax provision62,788 70,802 23,557 
Net income$406,644 $358,614 $211,053 
(a) Includes personnel-costs, consulting costs, outside services, administrative costs, and other operating expenses.
(b) Includes interest income, interest expense, and other non-operating income and expenses
Customer and Geographic Concentration
During 2025, 2024, and 2023, the majority of our revenue was derived from a limited number of licensees based outside of the United States, primarily in Asia. Substantially all of this revenue was paid in U.S. dollars and were not subject to any substantial foreign exchange transaction risk. The table below lists the countries of the headquarters of our licensees and customers and the total revenue derived from each country or region for the periods indicated (in thousands):
 Year Ended December 31,
 202520242023
United States$239,417 $198,723 $186,251 
China309,335 379,606 258,737 
South Korea262,500 265,953 82,235 
Taiwan12,320 9,620 9,368 
Japan7,095 7,223 10,678 
Europe3,348 7,391 2,319 
Total revenue$834,015 $868,516 $549,588 
During 2025, 2024, and 2023, the following licensees or customers accounted for 10% or more of total revenue:
Year Ended December 31,
202520242023
Customer A31%30%14%
Customer B16%15%24%
Customer C14%—%—%
Customer D<10%20%27%
Customer E<10%14%—%
Customer F<10%<10%11%
As of December 31, 2025, and 2024, our property and equipment, net of accumulated depreciation, and patents, net of accumulated amortization, totaled $342.5 million and $327.2 million, respectively. Approximately 85% of these assets were located in the United States in each year presented. The remaining of these net assets were located primarily in Canada and Europe, where we held $50.7 million and $36.6 million a

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 6, 2025
2023Feb 15, 2024
2022Feb 15, 2023

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesCommitmentsStock CompensationNew Standards