Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2017

NET INCOME PER SHARE: [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

NET INCOME PER SHARE

Basic Earnings Per Share ("EPS") is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other securities with features that could result in the issuance of common stock were exercised or converted to common stock. 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):

	For the Three Months Ended September 30,
	2017					2016
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	35,536	$	35,536		$	104,466	$	104,466
Denominator:
Weighted-average shares outstanding: Basic	34,709		34,709			34,280		34,280
Dilutive effect of stock options, RSUs, convertible securities and warrants			679					673
Weighted-average shares outstanding: Diluted			35,388					34,953
Earnings Per Share:
Net income: Basic	$	1.02	$	1.02		$	3.05	$	3.05
Dilutive effect of stock options, RSUs, convertible securities and warrants			(0.02		)			(0.06		)
Net income: Diluted			$	1.00				$	2.99

	For the Nine Months Ended September 30,
	2017					2016
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	121,791	$	121,791		$	172,531	$	172,531
Denominator:
Weighted-average shares outstanding: Basic	34,589		34,589			34,607		34,607
Dilutive effect of stock options, RSUs, convertible securities and warrants			1,276					484
Weighted-average shares outstanding: Diluted			35,865					35,091
Earnings Per Share:
Net income: Basic	$	3.52	$	3.52		$	4.99	$	4.99
Dilutive effect of stock options, RSUs, convertible securities and warrants			(0.12		)			(0.07		)
Net income: Diluted			$	3.40				$	4.92

Certain shares of common stock issuable upon the exercise or conversion of certain securities have been excluded from our computation of EPS because the strike price or conversion rate, as applicable, of such securities was greater than the average market price of our common stock and, as a result, the effect of such exercise or conversion would have been anti-dilutive. 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):

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2017	2016	2017	2016
Restricted stock units and stock options	25	13	18	103
Convertible securities	—	4,366	—	4,366
Warrants	4,386	4,366	—	7,261
Total	4,411	8,745	18	11,730

Convertible Notes

During periods in which the average market price of the Company's common stock is above the applicable conversion price of the Company's 1.50% Senior Convertible Notes due 2020 (for purposes of this discussion, the "Convertible Notes") ($72.12 per share as of September 30, 2017) or above the strike price of our outstanding warrants ($88.03 per share as of September 30, 2017), the impact of conversion or exercise, as applicable, would be dilutive and such dilutive effect is reflected in diluted EPS. As a result, in periods where the average market price of the Company's common stock is above the conversion price or strike price, as applicable, under the treasury stock method, the Company calculates the number of shares issuable under the terms of the Convertible Notes and the warrants based on the average market price of the stock during the period, and includes that number in the total diluted shares outstanding for the period. See Note 7, "Long-Term Debt," for additional information about the Convertible Notes and warrants.

	For the Three Months Ended September 30,
	2017					2016
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	35,536	$	35,536		$	104,466	$	104,466
Denominator:
Weighted-average shares outstanding: Basic	34,709		34,709			34,280		34,280
Dilutive effect of stock options, RSUs, convertible securities and warrants			679					673
Weighted-average shares outstanding: Diluted			35,388					34,953
Earnings Per Share:
Net income: Basic	$	1.02	$	1.02		$	3.05	$	3.05
Dilutive effect of stock options, RSUs, convertible securities and warrants			(0.02		)			(0.06		)
Net income: Diluted			$	1.00				$	2.99

	For the Nine Months Ended September 30,
	2017					2016
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	121,791	$	121,791		$	172,531	$	172,531
Denominator:
Weighted-average shares outstanding: Basic	34,589		34,589			34,607		34,607
Dilutive effect of stock options, RSUs, convertible securities and warrants			1,276					484
Weighted-average shares outstanding: Diluted			35,865					35,091
Earnings Per Share:
Net income: Basic	$	3.52	$	3.52		$	4.99	$	4.99
Dilutive effect of stock options, RSUs, convertible securities and warrants			(0.12		)			(0.07		)
Net income: Diluted			$	3.40				$	4.92