Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Schedule of disaggregation of revenue

The following table presents the disaggregation of our revenue for the year ended December 31, 2019 and 2018 under ASC 606. Revenue for the year ended December 31, 2017 is presented in accordance with ASC 605. Amounts are in thousands.

	For the Year Ended December 31,
	2019		2018		2017
Variable patent royalty revenue	$	30,428	$	36,384	$	47,840
Fixed-fee royalty revenue	257,221		239,347		301,628
Current patent royalties a	287,649		275,731		349,468
Non-current patent royalties b	19,782		26,329		162,890
Total patent royalties	307,431		302,060		512,358
Current technology solutions revenue a	10,518		4,594		20,580
Patent sales	975		750		—
Total revenue	$	318,924	$	307,404	$	532,938

a.    Recurring revenues consist of current patent royalties, inclusive of Dynamic Fixed-Fee Agreement royalties, and current technology solutions

revenue.

b.

Non-current patent royalties for the year ended December 31, 2019 and 2018 consist of past patent royalties and royalties from static agreements. For the year ended December 31, 2017, non-current patent royalties consist of past patent royalties.

Schedule of Impact of Adoption of ASC 606

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our current period consolidated income statement and balance sheet is presented below. We believe this additional information is vital to allow readers of our financial statements to compare financial results from the preceding financial years given the absence of restatement of the prior period. The adoption of ASC 606 did not affect our reported total amounts of cash flows from operating, investing and financing activities. Amounts contained in the tables below are in thousands, except per share data.

	For the Year Ended December 31,
	2019			2018									2017
	As Reported ASC 606			As Reported ASC 606			Adjustment			ASC 605			As Reported ASC 605
REVENUES:
Variable patent royalty revenue	$	30,428		$	36,384		$	461		$	36,845		$	47,840
Fixed-fee royalty revenue	257,221			239,347			79,341			318,688			301,628
Current patent royalties	287,649			275,731			79,802			355,533			349,468
Non-current patent royalties	19,782			26,329			(10,000		)	16,329			162,890
Total patent royalties	307,431			302,060			69,802			371,862			512,358
Patent sales	975			750			—			750			—
Current technology solutions revenue	10,518			4,594			4,907			9,501			20,580
	$	318,924		$	307,404		$	74,709		$	382,113		$	532,938
OPERATING EXPENSES:	281,089			244,809			—			244,809			231,443
Income from operations	37,835			62,595			74,709			137,304			301,495
Interest expense	(40,955		)	(35,956		)	16,655			(19,301		)	(17,845		)
OTHER INCOME (EXPENSE), NET	29,062			5,419			—			5,419			8,740
Income before income taxes	25,942			32,058			91,364			123,422			292,390
INCOME TAX BENEFIT (PROVISION)	(10,991		)	27,417			(6,686		)	20,731			(121,676		)
NET INCOME	$	14,951		$	59,475		$	84,678		$	144,153		$	170,714
Net loss attributable to noncontrolling interest	(5,977		)	(5,556		)	—			(5,556		)	(5,506		)
NET INCOME ATTRIBUTABLE TO INTERDIGITAL, INC.	$	20,928		$	65,031		$	84,678		$	149,709		$	176,220
NET INCOME PER COMMON SHARE — BASIC	$	0.66		$	1.89		$	2.45		$	4.34		$	5.09
NET INCOME PER COMMON SHARE — DILUTED	$	0.66		$	1.84		$	2.40		$	4.24		$	4.93

Schedule of contracted revenue

Based on contracts signed and committed Dynamic Fixed-Fee Agreement payments as of December 31, 2019, we expect to recognize the following amounts of revenue over the term of such contracts (in thousands):

	Revenue
2020	$	260,813
2021	191,146
2022	86,728
2023	—
2024	—
Thereafter	—
	$	538,687