Basis of Presentation

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Rambus Inc. (“Rambus” or the “Company”) and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements.

In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring items) necessary to state fairly the financial position and results of operations for each interim period presented. Interim results are not necessarily indicative of results for a full year.

The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Certain information and Note disclosures included in the financial statements prepared in accordance with generally accepted accounting principles have been omitted in these interim statements pursuant to such SEC rules and regulations. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto in Form 10-K for the year ended December 31, 2018.

Comparability

Effective January 1, 2019, Rambus adopted the new lease accounting standards. Prior periods were not retrospectively recast, so the consolidated balance sheet as of December 31, 2018 and the results of operations for the three and nine months ended September 30, 2018 were prepared using accounting standards that were different than those in effect as of and for the three and nine months ended September 30, 2019. Therefore, the consolidated balance sheets as of September 30, 2019 and December 31, 2018 are not directly comparable, nor are the results of operations for the three and nine months ended September 30, 2019 and 2018.

During the third quarter of 2019, in line with the Company’s divestiture of its payment and ticketing businesses and its refocus on its semiconductor operations, the chief operating decision maker (“CODM”) changed how he assesses performance and allocates resources. Based on this change, the Company determined it has one operating and reportable segment. The Company has revised prior comparative periods to conform to the current period segment presentation. Refer to Note 6, “Segment Information,” for additional information.