InterDigital Inc (IDCC)

[olddog967]

Ia-idcc-fan: Analyzing cash flow is complicated. Besides stock buybacks a good portion of the difference is explained by the account you are looking at i.e. Net Cash and Cash Equivalents. According to the 10-K

“We classify all highly liquid investment securities with original maturities of three months or less at date of purchase as cash equivalents. Our investments are comprised of mutual and exchange traded funds, commercial paper, United States and municipal government obligations and corporate securities.”

Good cash management calls for investing excess cash over normal day to day requirements, so in addition to investing cash into cash equivalents as defined above, IDCC also invests excess cash into Short-Term Investments which according to IDCC:

“are investment grade government and corporate debt securities that have maturities of less than 3 years, and we have both the ability and intent to hold the investments until maturity.”

As of 31 Dec 2009, the short term investment total amount was $199 million. As of 31 Dec 2016, the balance was $549 million. Therefore the holdings in this account increased by $350 million during the period you analyzed.