InterDigital Inc (IDCC)

[The Count]

IDCC free cash flow definition is standard stuff

Interdigital defines "free cash flow" as operating cash flow less purchase of property, equipment, technology licenses and investments in patents. The first 9 months produced over 77 million in free cash flow.

Operating cash flow is the cash generated by the business. It's the profit and loss adjusted for non-cash items (such as the receipt and subsequent amortization (earning) of deferred (prepaid) revenue and depreciation). It is also adjusted to show the actual income received and expenses paid instead of the accrual based amounts. While that shows the cash generated by the business operations, it does not account for capital expenditures or investments. So those items are backed out to arrive at free cash flow - the actual change in cash from one period to the next. IDCCs free cash flow has been outstanding, and as they sign more licenses and collect more for past infringement it is going to be even better. Which reminds me, free cash flow is also reduced by dividend payments. :)