(1) Total stock-based compensation expense for the three months and years ended December 31, 2015 and 2014 are presented as follows:
| Three Months Ended | Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Cost of revenue | $ | 12 | $ | 10 | $ | 63 | $ | 44 | ||||
| Research and development | $ | 1,459 | $ | 1,642 | $ | 6,762 | $ | 7,216 | ||||
| Sales, general and administrative | $ | 1,876 | $ | 1,883 | $ | 8,271 | $ | 7,470 | ||||
| Rambus Inc. | ||||||||||||||||||||
| Supplemental Reconciliation of GAAP to Non-GAAP Results | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, |
September 30, |
December 31, | December 31, | December 31, | ||||||||||||||||
| 2015 |
2015 |
2014 | 2015 | 2014 | ||||||||||||||||
| Operating costs and expenses | $ | 56,439 | $ | 56,139 | $ | 54,455 | $ | 224,858 | $ | 221,212 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stock-based compensation expense | (3,347 | ) | (3,568 | ) | (3,535 | ) | (15,096 | ) | (14,730 | ) | ||||||||||
| Acquisition-related transaction costs and retention bonus expense | — | — | (6 | ) | (2 | ) | (2,475 | ) | ||||||||||||
| Amortization expense | (6,160 | ) | (6,268 | ) | (6,323 | ) | (25,074 | ) | (26,618 | ) | ||||||||||
| Restructuring charges | (3,576 | ) | — | — | (3,576 | ) | (39 | ) | ||||||||||||
| Non-GAAP operating costs and expenses | $ | 43,356 | $ | 46,303 | $ | 44,591 | $ | 181,110 | $ | 177,350 | ||||||||||
| Operating income | $ | 20,334 | $ | 17,640 | $ | 17,585 | $ | 71,420 | $ | 75,346 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stock-based compensation expense | 3,347 | 3,568 | 3,535 | 15,096 | 14,730 | |||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | — | — | 6 | 2 | 2,475 | |||||||||||||||
| Amortization expense | 6,160 | 6,268 | 6,323 | 25,074 | 26,618 | |||||||||||||||
| Restructuring charges | 3,576 | — | — | 3,576 | 39 | |||||||||||||||
| Non-GAAP operating income | $ | 33,417 | $ | 27,476 | $ | 27,449 | $ | 115,168 | $ | 119,208 | ||||||||||
| Income before income taxes | $ | 17,562 | $ | 15,062 | $ | 14,676 | $ | 60,231 | $ | 50,250 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stock-based compensation expense | 3,347 | 3,568 | 3,535 | 15,096 | 14,730 | |||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | — | — | 6 | 2 | 2,475 | |||||||||||||||
| Amortization expense | 6,160 | 6,268 | 6,323 | 25,074 | 26,618 | |||||||||||||||
| Restructuring charges | 3,576 | — | — | 3,576 | 39 | |||||||||||||||
| Impairment of investment | — | — | — | — | 600 | |||||||||||||||
| Non-cash interest expense on convertible notes | 1,627 | 1,605 | 1,536 | 6,372 | 14,762 | |||||||||||||||
| Non-GAAP income before income taxes | $ | 32,272 | $ | 26,503 | $ | 26,076 | $ | 110,351 | $ | 109,474 | ||||||||||
| GAAP provision for income taxes | 4,570 | (166,971 | ) | 6,835 | (151,157 | ) | 24,049 | |||||||||||||
| Adjustment to GAAP provision for income taxes | 7,048 | 176,512 | 2,552 | 190,884 | 15,362 | |||||||||||||||
| Non-GAAP provision for income taxes | 11,618 | 9,541 | 9,387 | 39,727 | 39,411 | |||||||||||||||
| Non-GAAP net income | $ | 20,654 | $ | 16,962 | $ | 16,689 | $ | 70,624 | $ | 70,063 | ||||||||||
| Non-GAAP basic net income per share | $ | 0.19 | $ | 0.15 | $ | 0.15 | $ | 0.62 | $ | 0.61 | ||||||||||
| Non-GAAP diluted net income per share | $ | 0.18 | $ | 0.14 | $ | 0.14 | $ | 0.60 | $ | 0.60 | ||||||||||
| Weighted average shares used in non-GAAP per share calculation: | ||||||||||||||||||||
| Basic | 111,476 | 116,444 | 115,024 | 114,814 | 114,318 | |||||||||||||||
| Diluted |
113,388 |
119,542 | 117,620 |
117,484 |
117,624 | |||||||||||||||
|
Supplemental Reconciliation of GAAP to Non-GAAP Effective Tax Rate (1) |
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| Three Months Ended | Year Ended | ||||||||||||||
| December 31, |
September 30, |
December 31, | December 31, | December 31, | |||||||||||
| 2015 |
2015 |
2014 | 2015 | 2014 | |||||||||||
| GAAP effective tax rate | 26 | % | (1,109 | )% | 47 | % | (251 | )% | 48 | % | |||||
| Adjustment to GAAP effective tax rate | 10 | % | 1,145 | % | (11 | )% | 287 | % | (12 | )% | |||||
| Non-GAAP effective tax rate | 36 | % | 36 | % | 36 | % | 36 | % | 36 | % | |||||
|
(1) |
For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 36 percent, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied the 36 percent tax rate to its non-GAAP financial results for all periods. |
