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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Expense (Benefit), Continuing Operations [Abstract] |
Schedule of income before income tax | Income (loss) before taxes consisted of the following:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
| (In thousands)
Domestic | $ | (63,829 | ) |  | $ | 46,031 |  |  | $ | 38,211 |
Foreign | (6,799 | ) |  | (5,042 | ) |  | (15,574 | )
| $ | (70,628 | ) |  | $ | 40,989 |  |  | $ | 22,637 |
Components of provision for (benefit from) income taxes | The provision for (benefit from) income taxes is comprised of:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
| (In thousands)
Federal: |  |  |  |  |
Current | $ | 5,451 |  |  | $ | 20,661 |  |  | $ | 22,115 |
Deferred | 82,726 |  |  | 43,678 |  |  | (2,198 | )
State: |  |  |  |  |
Current | 333 |  |  | 495 |  |  | 884 |
Deferred | 522 |  |  | (43 | ) |  | (271 | )
Foreign: |  |  |  |  |
Current | 1,592 |  |  | 1,101 |  |  | 1,275 |
Deferred | (3,295 | ) |  | (2,041 | ) |  | (5,988 | )
| $ | 87,329 |  |  | $ | 63,851 |  |  | $ | 15,817 |
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,
| 2018 |  | 2017 |  | 2016
Expense at U.S. federal statutory rate | 21.0 | % |  | 35.0 | % |  | 35.0 | %
Expense (benefit) at state statutory rate | (1.2 | ) |  | 0.7 |  |  | 1.8 |
Withholding tax | (7.7 | ) |  | 50.1 |  |  | 97.0 |
Foreign rate differential | (0.2 | ) |  | 2.8 |  |  | 4.1 |
Research and development (“R&D”) credit | 2.2 |  |  | (3.9 | ) |  | (8.3 | )
Executive compensation | (0.1 | ) |  | 1.8 |  |  | 1.5 |
Stock-based compensation | (2.8 | ) |  | 14.9 |  |  | 34.8 |
Foreign tax credit | 7.7 |  |  | (50.1 | ) |  | (97.0 | )
Foreign derived intangible income deduction | 14.8 |  |  | — |  |  | — |
Impact of corporate rate change on deferred taxes | — |  |  | 50.6 |  |  | — |
Other | 0.7 |  |  | 1.4 |  |  | 1.0 |
Valuation allowance | (158.0 | ) |  | 52.5 |  |  | — |
| (123.6 | )% |  | 155.8 | % |  | 69.9 | %
Components of the net deferred tax assets | The components of the net deferred tax assets (liabilities) are as follows:
| As of December 31,
| 2018 |  | 2017
| (In thousands)
Deferred tax assets: |  |  |
Depreciation and amortization | $ | 13,085 |  |  | $ | 10,840 |
Other timing differences, accruals and reserves | 8,272 |  | 8,766
Deferred equity compensation | 6,236 |  | 7,979
Net operating loss carryovers | 21,259 |  | 16,335
Tax credits | 253,890 |  | 157,051
Total gross deferred tax assets | 302,742 |  |  | 200,971 |
Deferred tax liabilities: |  |  |
Convertible debt | (207) |  | (791)
Deferred revenue | (143,182) |  | — |
Total gross deferred tax liabilities | (143,389) |  | (791 | )
Total net deferred tax assets | 159,353 |  |  | 200,180 |
Valuation allowance | (173,878 | ) |  | (50,911 | )
Net deferred tax assets (liabilities) | $ | (14,525 | ) |  | $ | 149,269 |
| As of December 31,
| 2018 |  | 2017
| (In thousands)
Reported as: |  |  |
Non-current deferred tax assets | $ | 4,435 |  |  | $ | 159,099 |
Non-current deferred tax liabilities | (18,960 | ) |  | (9,830 | )
Net deferred tax assets (liabilities) | $ | (14,525 | ) |  | $ | 149,269 |
Summary of valuation allowance | The following table presents the tax valuation allowance information for the years ended December 31, 2018, 2017 and 2016:
| Balance at Beginning of Period |  | Charged (Credited) to Operations |  | Charged to Other Account* |  | Valuation Allowance Release |  | Valuation Allowance Set up |  | Balance at End of Period
Tax Valuation Allowance |  |  |  |  |  |  |  |  |  |  |
Year ended December 31, 2016 | $ | 20,717 |  |  | — |  |  | 2,812 |  |  | — |  |  | — |  |  | $ | 23,529 |
Year ended December 31, 2017 | $ | 23,529 |  |  | — |  |  | 5,855 |  |  | — |  |  | 21,527 |  |  | $ | 50,911 |
Year ended December 31, 2018 | $ | 50,911 |  |  | — |  |  | 9,238 |  |  | — |  |  | 113,729 |  |  | $ | 173,878 |
______________________________________
* | 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, 2018, 2017 and 2016 is as follows (amounts in thousands):
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Balance at January 1 | $ | 22,652 |  |  | $ | 21,925 |  |  | $ | 20,836 |
Tax positions related to current year: |  |  |  |  |
Additions | 1,032 |  |  | 1,083 |  |  | 1,225 |
Tax positions related to prior years: |  |  |  |  |
Additions | 115 |  |  | 16 |  |  | 256 |
Reductions | (317 | ) |  | (372 | ) |  | (171 | )
Settlements | — |  |  | — |  |  | (221 | )
Balance at December 31 | $ | 23,482 |  |  | $ | 22,652 |  |  | $ | 21,925 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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