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Business Segments and Major Customers | 9 Months Ended
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Sep. 30, 2012
Segment Reporting [Abstract] |
Business Segments and Major Customers | 11. Business Segments and Major Customers In the third quarter of 2012, the Company announced the creation of a new internal organizational structure with three business units: (1) Memory and Interfaces Division; (2) Cryptography Research, Inc.; and (3) Lighting and Display Technologies ("LDT"). The engineering design teams and other strategic initiatives will be consolidated under Dr. Martin Scott, who will take the new role of chief technology officer. The Company is still in the process of evaluating if any changes will be required to its current chief operating decision maker ("CODM"), which is comprised of the executive management team, as well as the financial information that will be regularly reviewed for resource allocation and performance assessment. The Company expects to finalize these changes in the fourth quarter of 2012. For the third quarter of 2012, the Company's CODM reviewed segment information on the same basis as the previous quarter and only SBG is 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 costs of restatement and related legal activities) to the segments. Additionally, certain expenses are not allocated to the operating segments because they are managed at the corporate level and they are not considered in evaluating the segments’ operating performance. Such unallocated corporate level expenses include stock-based compensation expenses, depreciation and amortization expenses, any impairment or restructuring charges and certain bonus and acquisition expenses. The “Reconciling Items” category includes these unallocated corporate support function expenses as well as corporate level expenses. The table below presents reported segment revenues and reported segment direct operating income (loss).
| For the Three Months Ended September 30, 2012 |  | For the Nine Months Ended September 30, 2012
| SBG |  | All Other |  | Total |  | SBG |  | All Other |  | Total
| (In thousands) |  | (In thousands)
Revenues | $ | 54,043 |  |  | $ | 3,487 |  |  | $ | 57,530 |  |  | $ | 163,269 |  |  | $ | 13,339 |  |  | $ | 176,608 |
Segment direct operating income (loss) | $ | 44,180 |  |  | $ | (5,071 | ) |  | $ | 39,109 |  |  | $ | 126,848 |  |  | $ | (14,087 | ) |  | $ | 112,761 |
Reconciling items |  |  |  |  |  |  | (86,209 | ) |  |  |  |  |  |  |  | (199,168 | )
Total operating loss |  |  |  |  |  |  | $ | (47,100 | ) |  |  |  |  |  |  |  | $ | (86,407 | )
Interest and other expense, net |  |  |  |  |  |  | (7,133 | ) |  |  |  |  |  |  |  | (20,245 | )
Loss before income taxes |  |  |  |  |  |  | $ | (54,233 | ) |  |  |  |  |  |  |  | $ | (106,652 | )
| For the Three Months Ended September 30, 2011 |  | For the Nine Months Ended September 30, 2011
| SBG |  | All Other |  | Total |  | SBG |  | All Other |  | Total
| (In thousands) |  | (In thousands)
Revenues | $ | 84,628 |  |  | $ | 15,635 |  |  | $ | 100,263 |  |  | $ | 212,779 |  |  | $ | 16,225 |  |  | $ | 229,004 |
Gain from settlement | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,200 |  |  | $ | — |  |  | $ | 6,200 |
Segment direct operating income | $ | 74,105 |  |  | $ | 8,491 |  |  | $ | 82,596 |  |  | $ | 185,476 |  |  | $ | 673 |  |  | $ | 186,149 |
Reconciling items |  |  |  |  |  |  | (71,860 | ) |  |  |  |  |  |  |  | (169,551 | )
Total operating income |  |  |  |  |  |  | $ | 10,736 |  |  |  |  |  |  |  |  | $ | 16,598 |
Interest and other expense, net |  |  |  |  |  |  | (6,178 | ) |  |  |  |  |  |  |  | (17,991 | )
Income (loss) before income taxes |  |  |  |  |  |  | $ | 4,558 |  |  |  |  |  |  |  |  | $ | (1,393 | )
The Company’s CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense. Revenue from the Company’s major customers representing 10% or more of total revenue for the three and nine months ended September 30, 2012 and 2011, respectively, were as follows:
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
Customer |  | 2012 |  | 2011 |  | 2012 |  | 2011 |
Customer A |  | 38 | % |  | 25 | % |  | 38 | % |  | 30 | % |
Customer B |  | * |  |  | 25 | % |  | * |  |  | 11 | % |
Customer C |  | * |  |  | 12 | % |  | * |  |  | * |  |
Customer D |  | * |  |  | * |  |  | * |  |  | 11 | % |
Customer E |  | * |  |  | * |  |  | 10 | % |  | 11 | % |
_________________________________________ * Customer accounted for less than 10% of total revenue in the period 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 |  | Nine Months Ended
|  | September 30, |  | September 30,
(In thousands) |  | 2012 |  | 2011 |  | 2012 |  | 2011
South Korea |  | $ | 21,648 |  |  | $ | 24,641 |  |  | $ | 66,363 |  |  | $ | 68,859 |
Japan |  | 17,347 |  |  | 19,899 |  |  | 50,818 |  |  | 76,149 |
USA |  | 14,309 |  |  | 42,096 |  |  | 45,778 |  |  | 69,897 |
Canada |  | 1,983 |  |  | 12,463 |  |  | 5,835 |  |  | 12,758 |
Asia-Other |  | 750 |  |  | 167 |  |  | 4,250 |  |  | 330 |
Europe |  | 1,493 |  |  | 997 |  |  | 3,564 |  |  | 1,011 |
Total |  | $ | 57,530 |  |  | $ | 100,263 |  |  | $ | 176,608 |  |  | $ | 229,004 |

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- 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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 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 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: 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 15: 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 + Details
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