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Segments and Major Customers
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Business Segments and Major Customers
Segments and Major Customers
Operating segments are based upon Rambus' internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker ("CODM") to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment.
The Company determined its CODM to be the Chief Executive Officer and determined its operating segments to be: (1) Memory and Interface Division ("MID"), which focuses on the design, development and licensing of technology that is related to memory and interfaces; (2) CRD, which focuses on the design, development and licensing of technologies for chip and system security and anti-counterfeiting; (3) ESD, which includes the computational sensing and imaging group along with the development efforts in the area of emerging technologies; and (4) LDT, which focuses on the design, development and licensing of technologies for lighting.
For the year ended December 31, 2015, MID and CRD were considered reportable segments as they met the quantitative thresholds for disclosure as reportable segments. The results of the remaining operating segments are shown under “Other”.
The Company evaluates the performance of its segments based on segment operating income (loss), which is defined as revenue minus segment operating expenses. Segment operating expenses are comprised of direct operating expenses.
Segment operating expenses do not include sales, general and administrative expenses and the allocation of certain expenses managed at the corporate level, such as stock-based compensation, amortization, and certain bonus and acquisition costs. The “Reconciling Items” category includes these unallocated sales, general and administrative expenses as well as corporate level expenses.
The tables below present reported segment operating income (loss) for the years ended December 31, 2015, 2014 and 2013:
 
For the Year Ended December 31, 2015
 
MID
 
CRD
 
Other
 
Total
 
(In thousands)
Revenues
$
221,968

 
$
50,497

 
$
23,813

 
$
296,278

Segment operating expenses
47,780

 
29,056

 
32,147

 
108,983

Segment operating income (loss)
$
174,188

 
$
21,441

 
$
(8,334
)
 
$
187,295

Reconciling items
 

 
 
 
 

 
(115,875
)
Operating income
 

 
 
 
 

 
$
71,420

Interest and other income (expense), net
 

 
 
 
 

 
(11,189
)
Income before income taxes
 

 
 
 
 

 
$
60,231

 
For the Year Ended December 31, 2014
 
MID
 
CRD
 
Other
 
Total
 
(In thousands)
Revenues
$
226,303

 
$
49,330

 
$
20,925

 
$
296,558

Segment operating expense
40,816

 
27,608

 
34,106

 
102,530

Segment operating income (loss)
$
185,487

 
$
21,722

 
$
(13,181
)
 
$
194,028

Reconciling items
 
 
 
 
 
 
(118,682
)
Operating income
 
 
 
 


 
$
75,346

Interest and other income (expense), net

 
 
 


 
(25,096
)
Income before income taxes
 

 
 
 
 

 
$
50,250

 
For the Year Ended December 31, 2013
 
MID
 
CRD
 
Other
 
Total
 
(In thousands)
Revenues
$
232,040

 
$
32,625

 
$
6,836

 
$
271,501

Segment operating expenses
34,823

 
20,322

 
42,306

 
97,451

Segment operating income (loss)
$
197,217

 
$
12,303

 
$
(35,470
)
 
$
174,050

Reconciling items


 
 
 


 
(151,586
)
Operating income

 
 
 


 
$
22,464

Interest and other income (expense), net
 

 
 
 
 

 
(34,481
)
Loss before income taxes
 
 
 
 
 
 
$
(12,017
)

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.
Accounts receivable from the Company's major customers representing 10% or more of total accounts receivable at December 31, 2015 and December 31, 2014, respectively, was as follows:
 
 
Years Ended December 31,
Customer 
 
2015
 
2014
Customer 1 (MID reportable segment)
 
16
%
 
33
%
Customer 2 (Other segment)
 
27
%
 
50
%
Customer 3 (MID reportable segment)
 
28
%
 
*

Customer 4 (CRD reportable segment)
 
21
%
 
*

_________________________________________
*    Customer accounted for less than 10% of total accounts receivable in the period
Revenue from the Company’s major customers representing 10% or more of total revenue for the years ended December 31, 2015, 2014 and 2013 were as follows:
 
Years Ended December 31,
 
2015
 
2014
 
2013
Customer A (MID and CRD reportable segments)
20
%
 
20
%
 
33
%
Customer B (MID reportable segment)
19
%
 
16
%
 
*

Customer C (MID reportable segment)
13
%
 
13
%
 
*

_________________________________________
* Customer accounted for less than 10% of total revenue in the period
Revenue from customers in the geographic regions based on the location of contracting parties is as follows:
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
(In thousands)
South Korea
$
115,486

 
$
107,441

 
$
112,806

USA
118,278

 
109,060

 
80,652

Japan
29,687

 
30,454

 
51,156

Europe
9,616

 
21,349

 
15,985

Canada
214

 
7,119

 
7,896

Singapore
16,312

 
12,980

 
—

Asia-Other
6,685

 
8,155

 
3,006

Total
$
296,278

 
$
296,558

 
$
271,501


At December 31, 2015, of the $56.6 million of total property, plant and equipment, approximately $55.2 million were located in the United States, $1.3 million were located in India and $0.1 million were located in other foreign locations. At December 31, 2014, of the $64.0 million of total property, plant and equipment, approximately $63.0 million were located in the United States, $0.9 million were located in India and $0.1 million were located in other foreign locations.