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Business Segments and Major Customers
 9 Months Ended
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