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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of income before income tax | Income (loss) before taxes consisted of the following:
|  | Years Ended December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2018
Domestic |  | $ | (43,029) |  |  | $ | (81,316) |  |  | $ | (63,829) |
Foreign |  | 3,398 |  |  | (5,700) |  |  | (6,799) |
|  | $ | (39,631) |  |  | $ | (87,016) |  |  | $ | (70,628) |
Components of provision for (benefit from) income taxes | The provision for (benefit from) income taxes was comprised of:
|  | Years Ended December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2018
Federal: |  |  |  |  |  |
Current |  | $ | (456) |  |  | $ | 2,932 |  |  | $ | 5,451 |
Deferred |  | 2,018 |  |  | 2,016 |  |  | 82,726 |
State: |  |  |  |  |  |
Current |  | 652 |  |  | 657 |  |  | 333 |
Deferred |  | (1,528) |  |  | (1,198) |  |  | 522 |
Foreign: |  |  |  |  |  |
Current |  | 3,097 |  |  | 1,708 |  |  | 1,592 |
Deferred |  | 195 |  |  | (2,712) |  |  | (3,295) |
|  | $ | 3,978 |  |  | $ | 3,403 |  |  | $ | 87,329 |
Schedule of effective income tax rate reconciliation | The differences between Rambus’ effective tax rate and the U.S. federal statutory regular tax rate were as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
U.S. federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income tax (expense)/benefit |  | (2.5) |  |  | 0.9 |  |  | (1.2) |
Withholding tax |  | (3.7) |  |  | (3.5) |  |  | (7.7) |
Foreign rate differential |  | (4.4) |  |  | (1.6) |  |  | (0.2) |
Research and development credit |  | (4.4) |  |  | 1.2 |  |  | 2.2 |
Executive compensation |  | (1.7) |  |  | (1.2) |  |  | (0.1) |
Stock-based compensation |  | 0.6 |  |  | (2.3) |  |  | (2.8) |
Foreign tax credit |  | (85.7) |  |  | 3.4 |  |  | 7.7 |
Foreign derived intangible income deduction |  | 12.3 |  |  | 4.6 |  |  | 14.8 |
Divestiture |  | (18.8) |  |  | 4.8 |  |  | — |
Other |  | 0.7 |  |  | 0.3 |  |  | 0.7 |
Valuation allowance |  | 76.6 |  |  | (31.5) |  |  | (158.0) |
|  | (10.0) | % |  | (3.9) | % |  | (123.6) | %
Components of the net deferred tax liabilities | The components of the net deferred tax assets (liabilities) were as follows:
|  | As of December 31,
(In thousands) |  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Depreciation and amortization |  | $ | 13,199 |  |  | $ | 13,995 |
Lease liabilities |  | 8,716 |  | 10,734 |
Other timing differences, accruals and reserves |  | 5,347 |  | 9,522
Deferred equity compensation |  | 4,631 |  | 4,456
Net operating loss carryovers |  | 15,756 |  | 20,900
Tax credits |  | 169,063 |  | 233,407
Total gross deferred tax assets |  | 216,712 |  |  | 293,014 |
Deferred tax liabilities: |  |  |  |
Lease right-of-use assets |  | (6,392) |  | (10,400) |
Convertible debt |  | (130) |  | (151)
Deferred revenue |  | (45,845) |  | (94,763) |
Total gross deferred tax liabilities |  | (52,367) |  | (105,314) |
Total net deferred tax assets |  | 164,345 |  |  | 187,700 |
Valuation allowance |  | (174,328) |  |  | (196,972) |
Net deferred tax liabilities |  | $ | (9,983) |  |  | $ | (9,272) |
|  | As of December 31,
(In thousands) |  | 2020 |  | 2019
Reported as: |  |  |  |
Non-current deferred tax assets |  | $ | 4,353 |  |  | $ | 4,574 |
Non-current deferred tax liabilities |  | (14,336) |  |  | (13,846) |
Net deferred tax liabilities |  | $ | (9,983) |  |  | $ | (9,272) |
Summary of valuation allowance | The following table presents the tax valuation allowance information for the years ended December 31, 2020, 2019 and 2018:
(In thousands) |  | 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, 2018 |  | $ | 50,911 |  |  | — |  |  | 9,238 |  |  | — |  |  | 113,729 |  |  | $ | 173,878 |
Year ended December 31, 2019 |  | $ | 173,878 |  |  | 23,094 |  |  | — |  |  | — |  |  | — |  |  | $ | 196,972 |
Year ended December 31, 2020 |  | $ | 196,972 |  |  | (22,019) |  |  | 3 |  |  | (628) |  |  | — |  |  | $ | 174,328 |
______________________________________ * 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, 2020, 2019 and 2018 was as follows:
|  | Years Ended December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2018
Balance at January 1 |  | $ | 115,653 |  |  | $ | 23,482 |  |  | $ | 22,652 |
Tax positions related to current year: |  |  |  |  |  |
Additions |  | 18,600 |  |  | 16,485 |  |  | 1,032 |
Tax positions related to prior years: |  |  |  |  |  |
Additions |  | — |  |  | 76,158 |  |  | 115 |
Reductions |  | (209) |  |  | (472) |  |  | (317) |
Settlements |  | — |  |  | — |  |  | — |
Balance at December 31 |  | $ | 134,044 |  |  | $ | 115,653 |  |  | $ | 23,482 |

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