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Segments and Major Customers | 12 Months Ended
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Dec. 31, 2016
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. During 2016, the Company renamed its Cryptography Research Division organization to the Rambus Security Division ("RSD") and its Lighting and Display Technologies Division ("LDT") to the Rambus Lighting Division (“RLD”). 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 the design, development, manufacturing through partnerships and licensing of technology and solutions that is related to memory and interfaces; (2) RSD, which focuses on the design, development and licensing of technologies for chip and system security, anti-counterfeiting, smart ticketing and mobile payments; (3) ESD, which encompasses our long-term research and development efforts in the area of emerging technologies; and (4) RLD, which focuses on the design, development and licensing of technologies for lighting. For the year ended December 31, 2016, MID and RSD 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, 2016, 2015 and 2014:
| For the Year Ended December 31, 2016
| MID |  | RSD |  | Other |  | Total
| (In thousands)
Revenues | $ | 239,843 |  |  | $ | 76,175 |  |  | $ | 20,579 |  |  | $ | 336,597 |
Segment operating expenses | 68,460 |  |  | 51,855 |  |  | 30,397 |  |  | 150,712 |
Segment operating income (loss) | $ | 171,383 |  |  | $ | 24,320 |  |  | $ | (9,818 | ) |  | $ | 185,885 |
Reconciling items |  |  |  |  |  |  |  |  | (152,243 | )
Operating income |  |  |  |  |  |  |  |  | $ | 33,642 |
Interest and other income (expense), net |  |  |  |  |  |  |  |  | (11,005 | )
Income before income taxes |  |  |  |  |  |  |  |  | $ | 22,637 |
| For the Year Ended December 31, 2015
| MID |  | RSD |  | Other |  | Total
| (In thousands)
Revenues | $ | 221,968 |  |  | $ | 50,497 |  |  | $ | 23,813 |  |  | $ | 296,278 |
Segment operating expense | 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 |  | RSD |  | Other |  | Total
| (In thousands)
Revenues | $ | 226,303 |  |  | $ | 49,330 |  |  | $ | 20,925 |  |  | $ | 296,558 |
Segment operating expenses | 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 |
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, 2016 and December 31, 2015, respectively, was as follows:
|  | As of December 31,
Customer |  | 2016 |  | 2015
Customer 1 (MID reportable segment) |  | 13 | % |  | 16 | %
Customer 2 (Other segment) |  | 12 | % |  | 27 | %
Customer 3 (MID reportable segment) |  | * |  |  | 28 | %
Customer 4 (RSD reportable segment) |  | * |  |  | 21 | %
Customer 5 (RSD reportable segment) |  | 17 | % |  | * |
_________________________________________ * 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, 2016, 2015 and 2014 were as follows:
| Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Customer A (MID and RSD reportable segments) | 19 | % |  | 20 | % |  | 20 | %
Customer B (MID reportable segment) | 20 | % |  | 19 | % |  | 16 | %
Customer C (MID reportable segment) | 13 | % |  | 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,
| 2016 |  | 2015 |  | 2014
| (In thousands)
South Korea | $ | 129,542 |  |  | $ | 115,486 |  |  | $ | 107,441 |
USA | 121,209 |  |  | 118,278 |  |  | 109,060 |
Japan | 30,215 |  |  | 29,687 |  |  | 30,454 |
Europe | 16,031 |  |  | 9,616 |  |  | 21,349 |
Canada | 3,478 |  |  | 214 |  |  | 7,119 |
Singapore | 17,908 |  |  | 16,312 |  |  | 12,980 |
Asia-Other | 18,214 |  |  | 6,685 |  |  | 8,155 |
Total | $ | 336,597 |  |  | $ | 296,278 |  |  | $ | 296,558 |
At December 31, 2016, of the $58.4 million of total property, plant and equipment, approximately $55.0 million were located in the United States, $1.3 million were located in India and $2.1 million were located in other foreign locations. 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.

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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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 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=68060357&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 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 Reference 10: 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=68060357&loc=d3e9054-108599 Reference 11: 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=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 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=68060357&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 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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