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 June 30,
	2015					2014
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	32,602	$	32,602		$	78,901	$	78,901
Denominator:
Weighted-average shares outstanding: Basic	36,022		36,022			40,443		40,443
Dilutive effect of stock options, RSUs, convertible securities, and warrants			420					379
Weighted-average shares outstanding: Diluted			36,442					40,822
Earnings Per Share:
Net income: Basic	$	0.91	$	0.91		$	1.95	$	1.95
Dilutive effect of stock options, RSUs, convertible securities, and warrants			(0.02		)			(0.02		)
Net income: Diluted			$	0.89				$	1.93



	For the Six Months Ended June 30,
	2015					2014
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	61,667	$	61,667		$	77,040	$	77,040
Denominator:
Weighted-average shares outstanding: Basic	36,486		36,486			40,444		40,444
Dilutive effect of stock options, RSUs, convertible securities, and warrants			397					199
Weighted-average shares outstanding: Diluted			36,883					40,643
Earnings Per Share:
Net income: Basic	$	1.69	$	1.69		$	1.90	$	1.90
Dilutive effect of stock options, RSUs, convertible securities, and warrants			(0.02		)			—
Net income: Diluted			$	1.67				$	1.90

Certain shares of common stock issuable upon the exercise or conversion of certain securities have been excluded from our computation of earnings per share because the strike price or conversion rate, as applicable, of such securities was less than the average market price of our common stock for the three and/or six month periods ended June 30, 2015 and/or June 30, 2014, as applicable, 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 earnings per share for the periods presented (in thousands):



	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2015	2014	2015	2014
Restricted Stock Units	—	10	2	3
Stock options	94	213	56	160
Convertible securities	4,366	4,130	6,803	4,130
Warrants	8,496	4,130	6,808	4,130
Total	12,956	8,483	13,669	8,423



	For the Three Months Ended June 30,
	2015					2014
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	32,602	$	32,602		$	78,901	$	78,901
Denominator:
Weighted-average shares outstanding: Basic	36,022		36,022			40,443		40,443
Dilutive effect of stock options, RSUs, convertible securities, and warrants			420					379
Weighted-average shares outstanding: Diluted			36,442					40,822
Earnings Per Share:
Net income: Basic	$	0.91	$	0.91		$	1.95	$	1.95
Dilutive effect of stock options, RSUs, convertible securities, and warrants			(0.02		)			(0.02		)
Net income: Diluted			$	0.89				$	1.93



	For the Six Months Ended June 30,
	2015					2014
	Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to InterDigital, Inc.	$	61,667	$	61,667		$	77,040	$	77,040
Denominator:
Weighted-average shares outstanding: Basic	36,486		36,486			40,444		40,444
Dilutive effect of stock options, RSUs, convertible securities, and warrants			397					199
Weighted-average shares outstanding: Diluted			36,883					40,643
Earnings Per Share:
Net income: Basic	$	1.69	$	1.69		$	1.90	$	1.90
Dilutive effect of stock options, RSUs, convertible securities, and warrants			(0.02		)			—
Net income: Diluted			$	1.67				$	1.90