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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

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* 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