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Business Segments and Major Customers
 12 Months Ended
Dec. 31, 2011
Business Segments and Major Customers  
Business Segments and Major Customers

14. Business Segments and Major Customers

        For the year ended December 31, 2011, only SBG was considered a reportable segment as it met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining immaterial operating segments were combined and shown under "All Other".

        The Company evaluates the performance of its segments based on segment direct operating income (loss). Segment direct operating income (loss) does not include the allocation of any corporate support functions (including human resources, facilities, legal, finance, information technology, corporate development, general administration, corporate licensing and marketing expenses, advanced technology development, and cost of restatement) to the segments. Additionally, certain expenses are not allocated to the operating segments as they are managed at the corporate level and they are not considered in evaluating the segments' operating performance. For the year ended December 31, 2011, such unallocated corporate level expenses include stock-based compensation expenses, depreciation and amortization expenses, and certain bonus and acquisition expenses. The "Reconciling Items" category includes these unallocated corporate support function expenses as well as corporate level expenses. The presentation of the 2010 segment data has been updated accordingly to conform with the 2011 segment direct operating income (loss) definition.

        The table below presents reported segment revenues and reported segment direct operating income (loss).

 
   For the Year Ended December 31, 2011  
 
   SBG   All Other   Total  
 
   (In thousands)
  

Revenues(1)

   $ 292,074   $ 20,289   $ 312,363  
               

Gain from settlement(1)

   $ 6,200   $ —   $ 6,200  
               

Segment direct operating income (loss)(1)

   $ 250,793   $ (2,784 ) $ 248,009  
                 

Reconciling items

                 (249,545 )
                   

Total operating loss

               $ (1,536 )

Interest and other expense, net

                 (24,265 )
                   

Loss before income taxes

               $ (25,801 )
                   

 

 
   For the Year Ended December 31, 2010  
 
   SBG   All Other   Total  
 
   (In thousands)
  

Revenues(1)

   $ 323,038   $ 352   $ 323,390  
               

Gain from settlement(1)

   $ 126,800   $ —   $ 126,800  
               

Segment direct operating income (loss)(1)

   $ 402,669   $ (9,527 ) $ 393,142  
                 

Reconciling items

                 (166,260 )
                   

Total operating loss

               $ 226,882  

Interest and other expense, net

                 (18,838 )
                   

Loss before income taxes

               $ 208,044  
                   
(1)
Disclosure of segment information for the year ended December 31, 2009 was not provided as the revenues and segment direct operating loss for "All Other" were not material.

        The Company's chief operating decision maker is the executive management team and it does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense.

        Customers A, B and C accounted for 30%, 11% and 10% respectively, of revenue in the year ended December 31, 2011. Customers A and C accounted for 56% and 15% respectively, of revenue in the year ended December 31, 2010. Customers D, E, F, G and H accounted for 24%, 15%, 13%, 13% and 11% respectively, of revenue in the year ended December 31, 2009.

        Rambus licenses its technologies and patents to customers in multiple geographic regions. Revenue from customers in the following geographic regions was recognized as follows:

 
   Years Ended December 31,  
 
   2011   2010   2009  
 
   (In thousands)
  

USA

   $ 103,367   $ 23,528   $ 19,064  

Japan

     97,726     117,101     91,959  

Korea

     94,197     181,865     1,262  

Canada

     14,750     592     329  

Europe

     1,992     157     237  

Asia-Other

     331     147     156  
               

Total

   $ 312,363   $ 323,390   $ 113,007  
               

        At December 31, 2011, of the $81.1 million of total property, plant and equipment, approximately $79.8 million are located in the United States, $1.2 million are located in India and $0.1 million 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 are located in the United States, $1.0 million are located in India and $0.1 million were located in other foreign locations.