XML 62 R16.htm IDEA: XBRL DOCUMENT
v2.3.0.15

Business Segments and Major Customers | 9 Months Ended
--- | ---
Sep. 30, 2011
Business Segments and Major Customers |
Business Segments and Major Customers |
11. Business Segments and Major Customers Prior to 2010, Rambus operated in a single industry segment, the design, development and licensing of memory and logic interfaces, lighting and optoelectronics, and other technologies. In 2010, the Company reorganized, and as a result, starting at the end of the fourth quarter of 2010, Rambus has two business groups: Semiconductor Business Group (“SBG”) which focuses on the design, development and licensing of semiconductor technology, and New Business Group (“NBG”) which focuses on the design, development and licensing of lighting and display technologies, mobile, data security and other technologies. In addition, the Company acquired CRI during the second quarter of 2011 which is part of NBG. The Company evaluates the performance of its segments based on segment operating income (loss). Segment operating income (loss) does not include the allocation of any corporate functions (including human resources, facilities, legal, finance, information technology, corporate development, general administration, corporate licensing and marketing expenses, corporate research and development expenses, and cost of restatement) to the segments. Certain expenses are not allocated to the operating segments because they are not considered in evaluating the segments’ operating performance. Such unallocated expenses include stock-based compensation expenses, depreciation and amortization expenses, and certain bonus and acquisition expenses which are managed at the corporate level. The “Reconciling Items” category includes these unallocated and corporate expenses. The table below presents reported segment revenues, and reported segment operating income (loss).
|  | For the Three Months Ended September 30, 2011 |  | For the Nine Months Ended September 30, 2011 |
|  | SBG |  | NBG |  | Total |  | SBG |  | NBG |  | Total |
|  | (In thousands) |
Revenues |  | $ | 84,628 |  | $ | 15,635 |  | $ | 100,263 |  | $ | 212,779 |  | $ | 16,225 |  | $ | 229,004 |
Gain from settlement |  | $ | — |  | $ | — |  | $ | — |  | $ | 6,200 |  | $ | — |  | $ | 6,200 |
Segment operating income |  | $ | 75,456 |  | $ | 9,271 |  | $ | 84,727 |  | $ | 190,101 |  | $ | 2,568 |  | $ | 192,669 |
Reconciling items |  |  |  |  |  | (73,991 | ) |  |  |  |  | (176,071 | )
Total operating income |  |  |  |  |  | $ | 10,736 |  |  |  |  |  | $ | 16,598 |
|  | For the Three Months Ended September 30, 2010 |  | For the Nine Months Ended September 30, 2010 |
|  | SBG |  | NBG |  | Total |  | SBG |  | NBG |  | Total |
|  | (In thousands) |
Revenues |  | $ | 31,668 |  | $ | 75 |  | $ | 31,743 |  | $ | 232,207 |  | $ | 262 |  | $ | 232,469 |
Gain from settlement |  | $ | 10,300 |  | $ | — |  | $ | 10,300 |  | $ | 116,500 |  | $ | — |  | $ | 116,500 |
Segment operating income (loss) |  | $ | 32,906 |  | $ | (1,601 | ) | $ | 31,305 |  | $ | 321,166 |  | $ | (4,184 | ) | $ | 316,982 |
Reconciling items |  |  |  |  |  | (42,799 | ) |  |  |  |  | (132,983 | )
Total operating income (loss) |  |  |  |  |  | $ | (11,494 | ) |  |  |  |  | $ | 183,999 |
The Company’s chief operating decision maker (“CODM”) is the executive management team. The CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense. The table below presents a reconciliation of reportable segment operating income (loss) to the Company’s consolidated income (loss) before income taxes.
|  | For the Three Months Ended |  | For the Nine Months Ended |
(in thousands) |  | September 30, 2011 |  | September 30, 2011 |
SBG operating income |  | $ | 75,456 |  | $ | 190,101 |
NBG operating income |  | 9,271 |  | 2,568 |
Unallocated amounts: |  |  |  |  |
Corporate expenses |  | (44,602 | ) | (104,992 | )
Unallocated expenses |  | (29,389 | ) | (71,079 | )
Interest and other expense, net |  | (6,178 | ) | (17,991 | )
Income (loss) before income taxes |  | $ | 4,558 |  | $ | (1,393 | )
|  | For the Three Months Ended |  | For the Nine Months Ended |
(in thousands) |  | September 30, 2010 |  | September 30, 2010 |
SBG operating income |  | $ | 32,906 |  | $ | 321,166 |
NBG operating loss |  | (1,601 | ) | (4,184 | )
Unallocated amounts: |  |  |  |  |
Corporate expenses |  | (25,260 | ) | (79,667 | )
Unallocated expenses |  | (17,539 | ) | (53,316 | )
Interest and other expense, net |  | (4,641 | ) | (13,656 | )
Income (loss) before income taxes |  | $ | (16,135 | ) | $ | 170,343 |
Three customers accounted for 25%, 25% and 12%, respectively, of revenue in the three months ended September 30, 2011. Four customers accounted for 47%, 12%, 11% and 10%, respectively, of revenue in the three months ended September 30, 2010. Four customers accounted for 30%, 11%, 11% and 11%, respectively, of revenue in the nine months ended September 30, 2011. One customer accounted for 72% of revenue in the nine months ended September 30, 2010. Rambus licenses its technologies and patents to customers in multiple geographic regions. Revenue from customers in the following geographic regions was recognized as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
(In thousands) |  | 2011 |  | 2010 |  | 2011 |  | 2010 |
North America |  | $ | 54,559 |  | $ | 5,025 |  | $ | 82,655 |  | $ | 15,801 |
Korea |  | 24,641 |  | 14,853 |  | 68,859 |  | 166,732 |
Japan |  | 19,899 |  | 11,819 |  | 76,149 |  | 49,692 |
Europe |  | 997 |  | 11 |  | 1,011 |  | 151 |
Asia, Other |  | 167 |  | 35 |  | 330 |  | 93 |
Total |  | $ | 100,263 |  | $ | 31,743 |  | $ | 229,004 |  | $ | 232,469 |
In North America, the United States and Canada each represented more than 10% of the Company’s total consolidated revenue for the three months ended September 30, 2011. In North America, no single country other than the United States represented more than 10% of the Company’s total consolidated revenue for the nine months ended September 30, 2011 and the three months ended September 30, 2010. In North America, no single country represented more than 10% of the Company’s total consolidated revenue for the nine months ended September 30, 2010. At September 30, 2011, of the $72.5 million of total property, plant and equipment, approximately $71.2 million were located in the United States, $1.3 million were located in India and an insignificant amount were located in other foreign locations. At December 31, 2010, of the $67.8 million of total property, plant and equipment, approximately $66.7 million were located in the United States, $1.0 million were located in India and $0.1 million were located in other foreign locations.

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration