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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Tax Expense (Benefit) [Abstract] |
Schedule of income before income tax | Income before taxes consisted of the following:
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
| (In thousands)
Domestic | $ | (12,535 | ) |  | $ | (61,036 | ) |  | $ | (3,586 | )
Foreign | 518 |  |  | (56,849 | ) |  | (22,215 | )
| $ | (12,017 | ) |  | $ | (117,885 | ) |  | $ | (25,801 | )
Components of provision for (benefit from) income taxes | The provision for income taxes is comprised of:
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
| (In thousands)
Federal: |  |  |  |  |
Current | $ | 19,319 |  |  | $ | 15,048 |  |  | $ | 16,595 |
Deferred | 2,200 |  |  | 587 |  |  | (255 | )
State: |  |  |  |  |
Current | 47 |  |  | (2,868 | ) |  | 17 |
Deferred | (501 | ) |  | 2,934 |  |  | — |
Foreign: |  |  |  |  |
Current | 446 |  |  | 543 |  |  | 886 |
Deferred | 220 |  |  | 207 |  |  | 9 |
| $ | 21,731 |  |  | $ | 16,451 |  |  | $ | 17,252 |
Schedule of effective income tax rate reconciliation | The differences between Rambus’ effective tax rate and the U.S. federal statutory regular tax rate are as follows:
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Expense (benefit) at U.S. federal statutory rate | (35.0 | )% |  | (35.0 | )% |  | (35.0 | )%
Expense (benefit) at state statutory rate | (3.3 | ) |  | 0.1 |  |  | (0.1 | )
Withholding tax | 160.4 |  |  | 13.3 |  |  | 64.2 |
Foreign rate differential | 4.1 |  |  | 17.4 |  |  | 33.0 |
Research and development (“R&D”) credit | (36.7 | ) |  | — |  |  | (1.0 | )
Executive compensation | 0.8 |  |  | 0.3 |  |  | 2.0 |
Non-deductible stock-based compensation | 2.5 |  |  | 0.7 |  |  | 2.8 |
Foreign tax credit | (163.3 | ) |  | (13.3 | ) |  | (197.7 | )
Capitalized merger and acquisition costs | — |  |  | 0.3 |  |  | 5.9 |
Other | (1.0 | ) |  | (2.2 | ) |  | 0.5 |
Valuation allowance | 252.3 |  |  | 32.4 |  |  | 192.3 |
| 180.8 | % |  | 14.0 | % |  | 66.9 | %
Components of the net deferred tax assets | The components of the net deferred tax assets are as follows:
| As of December 31,
| 2013 |  | 2012
| (In thousands)
Deferred tax assets: |  |  |
Depreciation and amortization | $ | 28,093 |  |  | $ | 20,230 |
Other liabilities and reserves | 18,578 |  | 19,624
Deferred equity compensation | 33,837 |  | 42,546
Net operating loss carryovers | 27,416 |  | 38,133
Tax credits | 100,052 |  | 76,826
Total gross deferred tax assets | 207,976 |  |  | 197,359 |
Convertible debt | (12,664) |  | (8,019)
Total net deferred tax assets | 195,312 |  |  | 189,340 |
Valuation allowance | (192,823 | ) |  | (184,817 | )
Net deferred tax assets | $ | 2,489 |  |  | $ | 4,523 |
| As of December 31,
| 2013 |  | 2012
| (In thousands)
Reported as: |  |  |
Current deferred tax assets | $ | 205 |  |  | $ | 788 |
Current deferred tax liabilities | (791 | ) |  | — |
Non-current deferred tax assets | 4,797 |  |  | 4,458 |
Non-current deferred tax liabilities | (1,722 | ) |  | (723 | )
Net deferred tax assets | $ | 2,489 |  |  | $ | 4,523 |
Summary of valuation allowance | The following table presents the tax valuation allowance information for the years ended December 31, 2013, December 31, 2012 and December 31, 2011:
| Balance at Beginning of Period |  | Charged (Credited) to Operations |  | Charged to Other Account* |  | Utilized |  | Balance at End of Period
Tax Valuation Allowance |  |  |  |  |  |  |  |  |
Year ended December 31, 2011 | $ | 66,395 |  |  | — |  |  | 64,153 |  |  | — |  |  | $ | 130,548 |
Year ended December 31, 2012 | $ | 130,548 |  |  | — |  |  | 54,269 |  |  | — |  |  | $ | 184,817 |
Year ended December 31, 2013 | $ | 184,817 |  |  | — |  |  | 8,006 |  |  | — |  |  | $ | 192,823 |
______________________________________
* | Amounts not charged to operations are charged to other comprehensive income or deferred tax assets (liabilities).
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits | A reconciliation of the beginning and ending amounts of unrecognized income tax benefits for the years ended December 31, 2013, 2012 and 2011 is as follows (amounts in thousands):
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Balance at January 1 | $ | 16,773 |  |  | $ | 16,610 |  |  | $ | 11,816 |
Tax positions related to current year: |  |  |  |  |
Additions | 1,156 |  |  | 589 |  |  | 608 |
Tax positions related to prior years: |  |  |  |  |
Additions | 956 |  |  | 1,521 |  |  | 4,911 |
Reductions | (91 | ) |  | (1,947 | ) |  | (725 | )
Settlements | — |  |  | — |  |  | — |
Balance at December 31 | $ | 18,794 |  |  | $ | 16,773 |  |  | $ | 16,610 |

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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -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. + Details
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