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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
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,
| 2019 |  | 2018 |  | 2017
| (In thousands)
Domestic | $ | (81,316 | ) |  | $ | (63,829 | ) |  | $ | 46,031 |
Foreign | (5,700 | ) |  | (6,799 | ) |  | (5,042 | )
| $ | (87,016 | ) |  | $ | (70,628 | ) |  | $ | 40,989 |
Components of provision for (benefit from) income taxes | The provision for (benefit from) income taxes is comprised of:
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
| (In thousands)
Federal: |  |  |  |  |
Current | $ | 2,932 |  |  | $ | 5,451 |  |  | $ | 20,661 |
Deferred | 2,016 |  |  | 82,726 |  |  | 43,678 |
State: |  |  |  |  |
Current | 657 |  |  | 333 |  |  | 495 |
Deferred | (1,198 | ) |  | 522 |  |  | (43 | )
Foreign: |  |  |  |  |
Current | 1,708 |  |  | 1,592 |  |  | 1,101 |
Deferred | (2,712 | ) |  | (3,295 | ) |  | (2,041 | )
| $ | 3,403 |  |  | $ | 87,329 |  |  | $ | 63,851 |
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,
| 2019 |  | 2018 |  | 2017
Expense at U.S. federal statutory rate | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Expense (benefit) at state statutory rate | 0.9 |  |  | (1.2 | ) |  | 0.7 |
Withholding tax | (3.5 | ) |  | (7.7 | ) |  | 50.1 |
Foreign rate differential | (1.1 | ) |  | (0.2 | ) |  | 2.8 |
Research and development (“R&D”) credit | 1.2 |  |  | 2.2 |  |  | (3.9 | )
Executive compensation | (1.2 | ) |  | (0.1 | ) |  | 1.8 |
Stock-based compensation | (2.3 | ) |  | (2.8 | ) |  | 14.9 |
Foreign tax credit | 3.4 |  |  | 7.7 |  |  | (50.1 | )
Foreign derived intangible income deduction | 4.6 |  |  | 14.8 |  |  | — |
Impact of corporate rate change on deferred taxes | — |  |  | — |  |  | 50.6 |
Divestiture | 4.8 |  |  | — |  |  | — |
Other | (0.2 | ) |  | 0.7 |  |  | 1.4 |
Valuation allowance | (31.5 | ) |  | (158.0 | ) |  | 52.5 |
| (3.9 | )% |  | (123.6 | )% |  | 155.8 | %
Components of the net deferred tax assets | The components of the net deferred tax assets (liabilities) are as follows:
| As of December 31,
| 2019 |  | 2018
| (In thousands)
Deferred tax assets: |  |  |
Depreciation and amortization | $ | 13,995 |  |  | $ | 13,085 |
Lease liabilities | 10,734 |  | — |
Other timing differences, accruals and reserves | 9,522 |  | 8,272
Deferred equity compensation | 4,456 |  | 6,236
Net operating loss carryovers | 20,900 |  | 21,259
Tax credits | 233,407 |  | 253,890
Total gross deferred tax assets | 293,014 |  |  | 302,742 |
Deferred tax liabilities: |  |  |
Lease right-of-use assets | (10,400) |  | — |
Convertible debt | (151) |  | (207)
Deferred revenue | (94,763) |  | (143,182 | )
Total gross deferred tax liabilities | (105,314) |  | (143,389 | )
Total net deferred tax assets | 187,700 |  |  | 159,353 |
Valuation allowance | (196,972 | ) |  | (173,878 | )
Net deferred tax liabilities | $ | (9,272 | ) |  | $ | (14,525 | )
| As of December 31,
| 2019 |  | 2018
| (In thousands)
Reported as: |  |  |
Non-current deferred tax assets | $ | 4,574 |  |  | $ | 4,435 |
Non-current deferred tax liabilities | (13,846 | ) |  | (18,960 | )
Net deferred tax liabilities | $ | (9,272 | ) |  | $ | (14,525 | )
Summary of valuation allowance | The following table presents the tax valuation allowance information for the years ended December 31, 2019, 2018 and 2017:
| 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, 2017 | $ | 23,529 |  |  | — |  |  | 5,855 |  |  | — |  |  | 21,527 |  |  | $ | 50,911 |
Year ended December 31, 2018 | $ | 50,911 |  |  | — |  |  | 9,238 |  |  | — |  |  | 113,729 |  |  | $ | 173,878 |
Year ended December 31, 2019 | $ | 173,878 |  |  | 23,094 |  |  | — |  |  | — |  |  | — |  |  | $ | 196,972 |
______________________________________ * Amounts not charged to operations are charged to other comprehensive income or retained earnings.
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, 2019, 2018 and 2017 is as follows (amounts in thousands):
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Balance at January 1 | $ | 23,482 |  |  | $ | 22,652 |  |  | $ | 21,925 |
Tax positions related to current year: |  |  |  |  |
Additions | 16,485 |  |  | 1,032 |  |  | 1,083 |
Tax positions related to prior years: |  |  |  |  |
Additions | 76,158 |  |  | 115 |  |  | 16 |
Reductions | (472 | ) |  | (317 | ) |  | (372 | )
Settlements | — |  |  | — |  |  | — |
Balance at December 31 | $ | 115,653 |  |  | $ | 23,482 |  |  | $ | 22,652 |

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