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Segments and Major Customers
 12 Months Ended
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.