XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.25.2

Cash, Concentration of Credit Risk and Fair Value of Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2025
Fair Value Disclosures [Abstract] |
CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS | CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash currently consist of money market and demand accounts. The following table provides a reconciliation of total cash, cash equivalents, and restricted cash as of June 30, 2025, December 31, 2024, and June 30, 2024 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
| June 30, |  | December 31, |  | June 30,
| 2025 |  | 2024 |  | 2024
Cash and cash equivalents | $ | 517,894 |  |  | $ | 527,360 |  |  | $ | 299,762 |
Restricted cash included within prepaid and other current assets | 10,942 |  |  | 24,187 |  |  | 9,233 |
Total cash, cash equivalents, and restricted cash | $ | 528,836 |  |  | $ | 551,547 |  |  | $ | 308,995 |
Concentration of Credit Risk and Fair Value of Financial Instruments Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash equivalents, short-term investments, and accounts receivable. We place our cash equivalents and short-term investments only in highly rated financial instruments and in United States government instruments. Our accounts receivable and contract assets are derived principally from patent license and technology solutions agreements. Three licensees comprised 90% and 84% of our accounts receivable balances of June 30, 2025 and December 31, 2024, respectively. We perform ongoing credit evaluations of our licensees, who generally include large, multinational, wireless telecommunications equipment manufacturers. We believe that the book values of our financial instruments approximate their fair values. Fair Value Measurements We use various valuation techniques and assumptions when measuring the fair value of our assets and liabilities. We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. This guidance established a hierarchy that prioritizes fair value measurements based on the types of input used for the various valuation techniques (market approach, income approach and cost approach). The levels of the hierarchy are described below: Level 1 Inputs — Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets. Level 2 Inputs — Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets with insufficient volume or infrequent transactions (less active markets) or model-driven valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data, including market interest rate curves, referenced credit spreads and pre-payment rates. Level 3 Inputs — Level 3 includes financial instruments for which fair value is derived from valuation techniques including pricing models and discounted cash flow models in which one or more significant inputs are unobservable, including the Company’s own assumptions. The pricing models incorporate transaction details such as contractual terms, maturity and, in certain instances, timing and amount of future cash flows, as well as assumptions related to liquidity and credit valuation adjustments of marketplace participants. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. We use quoted market prices for similar assets to estimate the fair value of our Level 2 investments. Recurring Fair Value Measurements Our financial assets are generally included within short-term investments on our condensed consolidated balance sheets, unless otherwise indicated. Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of June 30, 2025 and December 31, 2024 (in thousands):
| Fair Value as of June 30, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Money market and demand accounts (a) | $ | 527,341 |  |  | $ | — |  |  | $ | — |  |  | $ | 527,341 |
Commercial paper (b) | — |  |  | 73,055 |  |  | — |  |  | 73,055 |
U.S. government securities | — |  |  | 217,899 |  |  | — |  |  | 217,899 |
Corporate bonds, asset backed and other securities (c) | — |  |  | 129,164 |  |  | — |  |  | 129,164 |
Total | $ | 527,341 |  |  | $ | 420,118 |  |  | $ | — |  |  | $ | 947,459 |
| Fair Value as of December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Money market and demand accounts (a) | $ | 535,745 |  |  | $ | — |  |  | $ | — |  |  | $ | 535,745 |
Commercial paper (b) | — |  |  | 78,870 |  |  | — |  |  | 78,870 |
U.S. government securities | — |  |  | 230,561 |  |  | — |  |  | 230,561 |
Corporate bonds, asset backed and other securities (c) | — |  |  | 137,219 |  |  | — |  |  | 137,219 |
Total | $ | 535,745 |  |  | $ | 446,650 |  |  | $ | — |  |  | $ | 982,395 |
______________________________ (a)Primarily included within cash and cash equivalents. (b)As of December 31, 2024, $4.1 million of commercial paper was included within cash and cash equivalents, respectively. (c)As of June 30, 2025 and December 31, 2024, $1.0 million and $11.7 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively. Fair Value of Long-Term Debt Convertible Notes The principal amount, carrying value and related estimated fair value of the Company's Convertible Notes reported as of June 30, 2025 and December 31, 2024 was as follows (in thousands). The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.
| June 30, 2025 |  | December 31, 2024
| Principal Amount |  | Carrying Value |  | Fair Value |  | Principal Amount |  | Carrying Value |  | Fair Value
2027 Senior Convertible Long-Term Debt | $ | 460,000 |  |  | $ | 455,750 |  |  | $ | 1,340,725 |  |  | $ | 460,000 |  |  | $ | 454,739 |  |  | $ | 1,166,155 |
Technicolor Patent Acquisition Long-term Debt The carrying value and related estimated fair value of the Technicolor Patent Acquisition long-term debt reported as of June 30, 2025 and December 31, 2024 was as follows (in thousands). The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.
| June 30, 2025 |  | December 31, 2024
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Technicolor Patent Acquisition Long-Term Debt | $ | 16,566 |  |  | $ | 15,585 |  |  | $ | 17,033 |  |  | $ | 17,102 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration