Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | VERISIGN INC/CA | |
Entity Central Index Key | 1,014,473 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 108,475,524 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 234,025 | $ 228,659 |
Marketable securities | 1,661,804 | 1,686,771 |
Accounts receivable, net | 16,188 | 12,638 |
Other Assets, Current | 34,040 | 39,856 |
Total current assets | 1,946,057 | 1,967,924 |
Property and equipment, net | 286,202 | 295,570 |
Goodwill | 52,527 | 52,527 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 15,324 | 17,361 |
Other long-term assets | 23,563 | 24,355 |
Total long-term assets | 377,616 | 389,813 |
Total assets | 2,323,673 | 2,357,737 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 148,677 | 188,171 |
Deferred revenues | 703,599 | 680,483 |
Convertible Debentures, including contingent interest derivative | 629,437 | 634,326 |
Total current liabilities | 1,481,713 | 1,502,980 |
Long-term deferred revenues | 288,741 | 280,859 |
Senior Notes | 1,235,813 | 1,235,354 |
Deferred Tax Liabilities, Net | 310,856 | 294,194 |
Other long-term liabilities | 114,573 | 114,797 |
Total long-term liabilities | 1,949,983 | 1,925,204 |
Total liabilities | $ 3,431,696 | $ 3,428,184 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock-par value $.001 per share; Authorized shares: 5,000; Issued and outstanding shares: none | $ 0 | $ 0 |
Common stock-par value $.001 per share; Authorized shares: 1,000,000; Issued shares: 323,884 at March 31, 2016 and 322,990 at December 31, 2015; Outstanding shares: 108,879 at March 31, 2016 and 110,072 at December 31, 2015 | 324 | 323 |
Additional paid-in capital | 17,412,920 | 17,558,822 |
Accumulated deficit | (18,518,143) | (18,625,599) |
Accumulated other comprehensive loss | (3,124) | (3,993) |
Total stockholders' deficit | (1,108,023) | (1,070,447) |
Total liabilities and stockholders' deficit | $ 2,323,673 | $ 2,357,737 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5,000 | 5,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 1,000,000 | 1,000,000 |
Common Stock, Shares, Issued | 323,884 | 322,990 |
Common stock, outstanding shares | 108,879 | 110,072 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 281,876 | $ 258,422 |
Costs and expenses: | ||
Cost of revenues | 50,582 | 48,353 |
Sales and marketing | 20,027 | 22,382 |
Research and development | 16,743 | 17,152 |
General and administrative | 27,757 | 26,298 |
Total costs and expenses | 115,109 | 114,185 |
Operating income | 166,767 | 144,237 |
Interest expense | (28,804) | (22,017) |
Non-operating income (loss), net | 3,121 | (5,555) |
Income before income taxes | 141,084 | 116,665 |
Income tax expense | (33,628) | (28,427) |
Net Income | 107,456 | 88,238 |
Change in unrealized gain on investments, net of tax | 935 | 87 |
Realized gain on investments, net of tax, included in net income | (66) | (4) |
Other comprehensive income (loss) | 869 | 83 |
Comprehensive Income | $ 108,325 | $ 88,321 |
Basic income (loss) per share | ||
Net Income | $ 0.98 | $ 0.75 |
Diluted income (loss) per share | ||
Net Income | $ 0.82 | $ 0.66 |
Shares used to compute net income per share | ||
Basic | 109,592 | 117,139 |
Diluted | 131,581 | 133,850 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 107,456 | $ 88,238 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property and equipment | 14,867 | 15,747 |
Stock-based compensation | 11,759 | 10,128 |
Excess tax benefit associated with stock-based compensation | (6,018) | (5,993) |
Unrealized Gain (Loss) on Derivatives | (1,065) | 7,019 |
Contingent interest payment for debenture | (6,544) | (5,225) |
Amortization of Debt Issuance Costs and Discounts | 3,267 | 2,845 |
Other, net | (779) | (144) |
Changes in operating assets and liabilities | ||
Accounts receivable | (3,779) | (1,282) |
Prepaid expenses and other assets | 6,524 | (3,084) |
Accounts payable and accrued liabilities | (31,537) | (28,816) |
Deferred revenues | 30,998 | 34,582 |
Deferred Income Taxes | 18,477 | 18,654 |
Net cash provided by operating activities | 143,626 | 132,669 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Proceeds from maturities and sales of marketable securities | 900,810 | 325,399 |
Purchases of marketable securities | (874,031) | (257,415) |
Purchases of property and equipment | (7,082) | (13,042) |
Other investing activities | 0 | (3,787) |
Net cash used in investing activities | 19,697 | 51,155 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock from option exercises and employee stock purchase plans | 8,084 | 8,776 |
Repurchases of common stock | (172,360) | (178,330) |
Proceeds from Issuance of Senior Long-term Debt | 0 | 493,824 |
Excess tax benefit associated with stock-based compensation | 6,018 | 5,993 |
Net cash used in financing activities | (158,258) | 330,263 |
Effect of exchange rate changes on cash and cash equivalents | 301 | 184 |
Net decrease in cash and cash equivalents | 5,366 | 514,271 |
Cash and cash equivalents at beginning of period | 228,659 | |
Cash and cash equivalents at end of period | 234,025 | 705,879 |
Supplemental cash flow disclosures: | ||
Cash paid for interest, net of capitalized interest | 27,028 | 25,494 |
Cash paid for income taxes, net of refunds received | $ 13,711 | $ 12,970 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Interim Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s fiscal 2015 Annual Report on Form 10-K (the “ 2015 Form 10-K”) filed with the SEC on February 19, 2016. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for the Company on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2016, the FASB issued ASU No. 2016-02, Leases . The guidance introduces a lessee model that requires most leases to be reported on the balance sheet. This ASU will become effective for the Company on January 1, 2019 and requires the modified retrospective transition method. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. There are different transition methods for different aspects of the standard. The new standard will be effective for the Company on January 1, 2017 with early adoption permitted. The Company is evaluating the timing of adoption, transition methods and the effect that this ASU will have on its consolidated financial statements and related disclosures. |
Cash, Cash Equivalents, And Mar
Cash, Cash Equivalents, And Marketable Securities | 3 Months Ended |
Mar. 31, 2016 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Cash, Cash Equivalents, And Marketable Securities | Cash, Cash Equivalents, and Marketable Securities The following table summarizes the Company’s cash, cash equivalents, and marketable securities: March 31, December 31, 2016 2015 (In thousands) Cash $ 45,140 $ 99,027 Money market funds 107,614 137,593 Time deposits 3,252 4,007 Debt securities issued by the U.S. Treasury 1,750,611 1,685,882 Equity securities of public companies 1,181 890 Total $ 1,907,798 $ 1,927,399 Included in Cash and cash equivalents $ 234,025 $ 228,659 Included in Marketable securities $ 1,661,804 $ 1,686,771 Included in Other long-term assets (Restricted cash) $ 11,969 $ 11,969 The fair value of the debt securities held as of March 31, 2016 was $1.8 billion , including less than $0.3 million of gross and net unrealized gains. All of the debt securities held as of March 31, 2016 are scheduled to mature in less than one year. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 : Fair Value Measurement Using Total Fair Value (Level 1) (Level 2) (Level 3) (In thousands) As of March 31, 2016: Assets: Investments in money market funds $ 107,614 $ 107,614 $ — $ — Debt securities issued by the U.S. Treasury 1,750,611 1,750,611 — — Equity securities of public companies 1,181 1,181 — — Total $ 1,859,406 $ 1,859,406 $ — $ — Liabilities: Contingent interest derivative on the Subordinated Convertible Debentures $ 22,517 $ — $ — $ 22,517 Foreign currency forward contracts (1) 496 — 496 — Total $ 23,013 $ — $ 496 $ 22,517 As of December 31, 2015: Assets: Investments in money market funds $ 137,593 $ 137,593 $ — $ — Debt securities issued by the U.S. Treasury 1,685,882 1,685,882 — — Equity securities of public companies 890 890 — — Foreign currency forward contracts (2) 230 — 230 — Total $ 1,824,595 $ 1,824,365 $ 230 $ — Liabilities: Contingent interest derivative on the Subordinated Convertible Debentures $ 30,126 $ — $ — $ 30,126 Foreign currency forward contracts (1) 164 — 164 — Total $ 30,290 $ — $ 164 $ 30,126 (1) Included in Accounts payable and accrued liabilities (2) Included in Other current assets The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are classified as Level 1 and are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices and are classified as Level 1. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of the equity securities of public companies is based on quoted market prices and are classified as Level 1. Investments in equity securities of public companies are included in Marketable securities. The fair value of the Company’s foreign currency forward contracts is based on foreign currency rates quoted by banks or foreign currency dealers and other public data sources. The Company utilizes a valuation model to estimate the fair value of the contingent interest derivative on the subordinated convertible debentures due 2037 (“the Subordinated Convertible Debentures”). The inputs to the model include stock price, bond price, risk free interest rates, volatility, and credit spread observations. As several significant inputs are not observable, the overall fair value measurement of the derivative is classified as Level 3. The volatility and credit spread assumptions used in the calculation are the most significant unobservable inputs. As of March 31, 2016 , the valuation of the contingent interest derivative assumed a volatility rate of approximately 27% and a credit spread of approximately 6% . The fair value of the contingent interest derivative would not have significantly changed using a volatility rate of either 22% or 32% , or a credit spread of either 5% or 7% . The following table summarizes the change in the fair value of the Company’s contingent interest derivative on the Subordinated Convertible Debentures during the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 (In thousands) Beginning balance $ 30,126 $ 26,755 Payment of contingent interest (6,544 ) (5,225 ) Unrealized (gain) loss (1,065 ) 7,019 Ending balance $ 22,517 $ 28,549 On February 15, 2016, the Company paid contingent interest of $6.5 million in addition to the normal coupon interest to holders of record of the Subordinated Convertible Debentures as of February 1, 2016. In February 2016, the upside trigger on the Subordinated Convertible Debentures was met for the six month interest period from February 15, 2016 through August 15, 2016. The $ 6.8 million contingent interest payable in August 2016 is included in the balance of the contingent interest derivative on the Subordinated Convertible Debentures as of March 31, 2016 . The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of March 31, 2016 , the carrying value of these financial instruments approximated their fair value. The fair value of the Company’s Subordinated Convertible Debentures was $ 3.2 billion as of March 31, 2016 . The fair values of the senior notes due 2023 (the “2023 Senior Notes”) and the senior notes due 2025 (the “2025 Senior Notes”) were $ 759.4 million and $505.6 million , respectively, as of March 31, 2016 . The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2. |
Other Balance Sheet Items
Other Balance Sheet Items | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Items | Other Balance Sheet Items Other Current Assets Other current assets consist of the following: March 31, December 31, 2016 2015 (In thousands) Prepaid expenses $ 15,718 $ 14,823 Income tax receivables 13,948 23,098 Other 4,374 1,935 Total other current assets $ 34,040 $ 39,856 Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: March 31, December 31, 2016 2015 (In thousands) Accounts payable $ 19,117 $ 23,298 Accrued employee compensation 32,248 51,851 Customer deposits, net 44,538 48,307 Interest Payable 32,779 27,701 Income taxes payable and other tax liabilities 4,137 16,943 Other accrued liabilities 15,858 20,071 Total accounts payable and accrued liabilities $ 148,677 $ 188,171 Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2015 , was paid during the three months ended March 31, 2016 . Income taxes payable and other tax liabilities decreased in the three months ended March 31, 2016 as a result of payments made for income taxes in certain non-U.S. jurisdictions. Interest payable includes coupon interest on the Subordinated Convertible Debentures, the 2023 Senior Notes and the 2025 Senior Notes. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' (Deficit) Equity | Stockholders’ Deficit On February 11, 2016, the Company’s Board of Directors authorized the repurchase of approximately $ 611.2 million of its common stock, in addition to the $ 388.8 million remaining available for repurchase under the previous share repurchase program for a total repurchase authorization of up to $1.0 billion of its common stock. The share repurchase program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. During the three months ended March 31, 2016 the Company repurchased 1.8 million shares of its common stock at an average stock price of $82.88 for an aggregate cost of $149.9 million . As of March 31, 2016, $915.8 million remained available for further repurchases under the share repurchase program. During the three months ended March 31, 2016 , the Company placed 0.3 million shares, at an average stock price of $80.44 , and for an aggregate cost of $22.4 million , into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”). Since inception the Company has repurchased 215.0 million shares of its common stock for an aggregate cost of $7.7 billion , which is presented as a reduction of Additional paid-in capital. |
Calculation Of Net Income Per S
Calculation Of Net Income Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation Of Net Income Per Share Attributable To Verisign Stockholders | Calculation of Earnings per Share The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share: Three Months Ended March 31, 2016 2015 (In thousands) Weighted-average shares of common stock outstanding 109,592 117,139 Weighted-average potential shares of common stock outstanding: Conversion spread related to Convertible Debentures 21,073 15,812 Unvested RSUs, stock options, and ESPP 916 899 Shares used to compute diluted earnings per share 131,581 133,850 The calculation of diluted weighted average shares outstanding, excludes potentially dilutive securities, the effect of which would have been anti-dilutive, as well as performance based RSUs granted by the Company for which the relevant performance criteria have not been achieved. The number of potential shares excluded from the calculation was not significant in any period presented. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-based Compensation Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation: Three Months Ended March 31, 2016 2015 (In thousands) Cost of revenues $ 1,841 $ 1,739 Sales and marketing 1,633 1,299 Research and development 1,703 1,721 General and administrative 6,582 5,369 Total stock-based compensation expense $ 11,759 $ 10,128 The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended March 31, 2016 2015 (In thousands) RSUs $ 9,133 $ 8,294 Performance-based RSUs 2,377 1,453 ESPP 848 1,081 Capitalization (Included in Property and equipment, net) (599 ) (700 ) Total stock-based compensation expense $ 11,759 $ 10,128 |
Interest Expense
Interest Expense | 3 Months Ended |
Mar. 31, 2016 | |
Interest Expense [Abstract] | |
Interest Expense | Interest Expense The following table presents the components of the Company’s interest expense: Three Months Ended March 31, 2016 2015 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 10,156 $ 10,156 Contractual interest on Senior Notes 15,235 9,037 Amortization of debt discount on the Subordinated Convertible Debentures 2,689 2,477 Credit facility fees and other interest expense 724 347 Total interest expense $ 28,804 $ 22,017 Contractual interest on Senior Notes in the three months ended March 31, 2016 includes $6.6 million of interest expense related to the 2025 Senior Notes which were issued in March 2015. |
Non-operating (loss) income
Non-operating (loss) income | 3 Months Ended |
Mar. 31, 2016 | |
Non-operating (loss) income, net [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Non-operating Income (Loss), Net The following table presents the components of Non-operating income (loss), net: Three Months Ended March 31, 2016 2015 (In thousands) Unrealized gain (loss) on contingent interest derivative on Subordinated Convertible Debentures $ 1,065 $ (7,019 ) Interest income 1,042 259 Other, net 1,014 1,205 Total non-operating income (loss), net $ 3,121 $ (5,555 ) Unrealized gains and losses on the contingent interest derivative on the Subordinated Convertible Debentures reflect the change in value of the derivative that results primarily from changes in the Company’s stock price. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents income tax expense and the effective tax rate: Three Months Ended March 31, 2016 2015 (Dollars in thousands) Income tax expense $ 33,628 $ 28,427 Effective tax rate 24 % 24 % The effective tax rate for the three months ended March 31, 2016 and 2015 is lower than the statutory federal rate of 35% primarily due to tax benefits from foreign income taxed at lower rates, partially offset by state income taxes. Deferred tax liabilities as of March 31, 2016 reflect the use of a portion of U.S. foreign tax credits during the three months ended March 31, 2016 , and an increase in the deferred tax liability related to the Subordinated Convertible Debentures. |
Cash, Cash Equivalents, And M16
Cash, Cash Equivalents, And Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Cash, Cash Equivalents, And Marketable Securities | The following table summarizes the Company’s cash, cash equivalents, and marketable securities: March 31, December 31, 2016 2015 (In thousands) Cash $ 45,140 $ 99,027 Money market funds 107,614 137,593 Time deposits 3,252 4,007 Debt securities issued by the U.S. Treasury 1,750,611 1,685,882 Equity securities of public companies 1,181 890 Total $ 1,907,798 $ 1,927,399 Included in Cash and cash equivalents $ 234,025 $ 228,659 Included in Marketable securities $ 1,661,804 $ 1,686,771 Included in Other long-term assets (Restricted cash) $ 11,969 $ 11,969 |
Fair Value Of Financial Instr17
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets And Liabilities Measured On Recurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 : Fair Value Measurement Using Total Fair Value (Level 1) (Level 2) (Level 3) (In thousands) As of March 31, 2016: Assets: Investments in money market funds $ 107,614 $ 107,614 $ — $ — Debt securities issued by the U.S. Treasury 1,750,611 1,750,611 — — Equity securities of public companies 1,181 1,181 — — Total $ 1,859,406 $ 1,859,406 $ — $ — Liabilities: Contingent interest derivative on the Subordinated Convertible Debentures $ 22,517 $ — $ — $ 22,517 Foreign currency forward contracts (1) 496 — 496 — Total $ 23,013 $ — $ 496 $ 22,517 As of December 31, 2015: Assets: Investments in money market funds $ 137,593 $ 137,593 $ — $ — Debt securities issued by the U.S. Treasury 1,685,882 1,685,882 — — Equity securities of public companies 890 890 — — Foreign currency forward contracts (2) 230 — 230 — Total $ 1,824,595 $ 1,824,365 $ 230 $ — Liabilities: Contingent interest derivative on the Subordinated Convertible Debentures $ 30,126 $ — $ — $ 30,126 Foreign currency forward contracts (1) 164 — 164 — Total $ 30,290 $ — $ 164 $ 30,126 (1) Included in Accounts payable and accrued liabilities (2) Included in Other current assets |
Changes In Fair Value Measurement Of Level 3 Items | The following table summarizes the change in the fair value of the Company’s contingent interest derivative on the Subordinated Convertible Debentures during the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 (In thousands) Beginning balance $ 30,126 $ 26,755 Payment of contingent interest (6,544 ) (5,225 ) Unrealized (gain) loss (1,065 ) 7,019 Ending balance $ 22,517 $ 28,549 |
Other Balance Sheet Items (Tabl
Other Balance Sheet Items (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Current Assets | Other current assets consist of the following: March 31, December 31, 2016 2015 (In thousands) Prepaid expenses $ 15,718 $ 14,823 Income tax receivables 13,948 23,098 Other 4,374 1,935 Total other current assets $ 34,040 $ 39,856 |
Components Of Accounts Payable And Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: March 31, December 31, 2016 2015 (In thousands) Accounts payable $ 19,117 $ 23,298 Accrued employee compensation 32,248 51,851 Customer deposits, net 44,538 48,307 Interest Payable 32,779 27,701 Income taxes payable and other tax liabilities 4,137 16,943 Other accrued liabilities 15,858 20,071 Total accounts payable and accrued liabilities $ 148,677 $ 188,171 |
Calculation Of Net Income Per19
Calculation Of Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share: Three Months Ended March 31, 2016 2015 (In thousands) Weighted-average shares of common stock outstanding 109,592 117,139 Weighted-average potential shares of common stock outstanding: Conversion spread related to Convertible Debentures 21,073 15,812 Unvested RSUs, stock options, and ESPP 916 899 Shares used to compute diluted earnings per share 131,581 133,850 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Classification Of Stock-Based Compensation | The following table presents the classification of stock-based compensation: Three Months Ended March 31, 2016 2015 (In thousands) Cost of revenues $ 1,841 $ 1,739 Sales and marketing 1,633 1,299 Research and development 1,703 1,721 General and administrative 6,582 5,369 Total stock-based compensation expense $ 11,759 $ 10,128 |
Nature Of Total Stock-Based Compensation | The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended March 31, 2016 2015 (In thousands) RSUs $ 9,133 $ 8,294 Performance-based RSUs 2,377 1,453 ESPP 848 1,081 Capitalization (Included in Property and equipment, net) (599 ) (700 ) Total stock-based compensation expense $ 11,759 $ 10,128 |
Interest Expense (Tables)
Interest Expense (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Interest Expense [Abstract] | |
Interest Expense Schedule | The following table presents the components of the Company’s interest expense: Three Months Ended March 31, 2016 2015 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 10,156 $ 10,156 Contractual interest on Senior Notes 15,235 9,037 Amortization of debt discount on the Subordinated Convertible Debentures 2,689 2,477 Credit facility fees and other interest expense 724 347 Total interest expense $ 28,804 $ 22,017 Contractual interest on Senior Notes in the three months ended March 31, 2016 includes $6.6 million of interest expense related to the 2025 Senior Notes which were issued in March 2015. |
Non-operating (loss) income (Ta
Non-operating (loss) income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Non-operating (loss) income, net [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The following table presents the components of Non-operating income (loss), net: Three Months Ended March 31, 2016 2015 (In thousands) Unrealized gain (loss) on contingent interest derivative on Subordinated Convertible Debentures $ 1,065 $ (7,019 ) Interest income 1,042 259 Other, net 1,014 1,205 Total non-operating income (loss), net $ 3,121 $ (5,555 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense From Continuing Operations And The Effective Tax Rate | The following table presents income tax expense and the effective tax rate: Three Months Ended March 31, 2016 2015 (Dollars in thousands) Income tax expense $ 33,628 $ 28,427 Effective tax rate 24 % 24 % |
Cash, Cash Equivalents, And M24
Cash, Cash Equivalents, And Marketable Securities (Cash, Cash Equivalents, And Marketable Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 45,140 | $ 99,027 | ||
Money market funds | 107,614 | 137,593 | ||
Time deposits | 3,252 | 4,007 | ||
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value | 1,750,611 | 1,685,882 | ||
Available-for-sale Securities, Equity Securities | 1,181 | 890 | ||
Total | 1,907,798 | 1,927,399 | ||
Included in Cash and cash equivalents | 234,025 | 228,659 | $ 705,879 | $ 191,608 |
Included in Marketable securities | 1,661,804 | 1,686,771 | ||
Included in Other assets (Restricted cash) | $ 11,969 | $ 11,969 |
Cash, Cash Equivalents, And M25
Cash, Cash Equivalents, And Marketable Securities Cash, Cash Equivalents, And Marketable Securities narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Cash, Cash Equivalents And Marketable Securities [Abstract] | ||
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value | $ 1,750,611 | $ 1,685,882 |
Debt securities gross unrealized gains | $ 300 |
Fair Value Of Financial Instr26
Fair Value Of Financial Instruments (Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - Measured On A Recurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Total Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total fair value of assets | $ 1,859,406 | $ 1,824,595 |
Total fair of value of liabilities | 23,013 | 30,290 |
Total Fair Value [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | 22,517 | 30,126 |
Total Fair Value [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments in money market funds | 107,614 | 137,593 |
Total Fair Value [Member] | Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,750,611 | 1,685,882 |
Total Fair Value [Member] | Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,181 | 890 |
Total Fair Value [Member] | Forward Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward contracts assets | 230 | |
Foreign currency forward contracts liabilities | 496 | 164 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total fair value of assets | 1,859,406 | 1,824,365 |
Total fair of value of liabilities | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments in money market funds | 107,614 | 137,593 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,750,611 | 1,685,882 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,181 | 890 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Forward Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward contracts assets | 0 | |
Foreign currency forward contracts liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total fair value of assets | 0 | 230 |
Total fair of value of liabilities | 496 | 164 |
Significant Other Observable Inputs (Level 2) [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments in money market funds | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Forward Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward contracts assets | 230 | |
Foreign currency forward contracts liabilities | 496 | 164 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total fair value of assets | 0 | 0 |
Total fair of value of liabilities | 22,517 | 30,126 |
Significant Unobservable Inputs (Level 3) [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | 22,517 | 30,126 |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments in money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Forward Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward contracts assets | 0 | |
Foreign currency forward contracts liabilities | $ 0 | $ 0 |
Fair Value Of Financial Instr27
Fair Value Of Financial Instruments (Changes In Fair Value Measurement Of Level 3 Items) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 30,126 | $ 26,755 |
Contingent interest payment for debenture | (6,544) | (5,225) |
Unrealized (gain) loss on contingent interest derivative on Convertible Debentures | (1,065) | 7,019 |
Ending balance | $ 22,517 | $ 28,549 |
Fair Value Of Financial Instr28
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Contingent interest payment for debenture | $ (6,544) | $ (5,225) |
Interest Payable | $ 6,800 | |
Fair value assumptions expected volatility rate | 27.00% | |
fair value assumptions credit spread | 6.00% | |
Convertible Debt, Fair Value Disclosures | $ 3,200,000 | |
Debt instrument fair value senior notes 2023 | 759,400 | |
Debt instrument fair value senior notes 2025 | $ 505,600 | |
Minimum [Member] | ||
fair value hypothetical increase decrease in volatility rate | 22.00% | |
fair value hypothetical increase decrease in credit spread | 5.00% | |
Maximum [Member] | ||
fair value hypothetical increase decrease in volatility rate | 32.00% | |
fair value hypothetical increase decrease in credit spread | 7.00% |
Other Balance Sheet Items (Othe
Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 15,718 | $ 14,823 |
Income Taxes Receivable, Current | 13,948 | 23,098 |
Other Assets, Miscellaneous, Current | 4,374 | 1,935 |
Other Assets, Current | $ 34,040 | $ 39,856 |
Other Balance Sheet Items (Comp
Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable | $ 19,117 | $ 23,298 |
Accrued employee compensation | 32,248 | 51,851 |
Customer deposits, net | 44,538 | 48,307 |
Interest Payable, Current | 32,779 | 27,701 |
Taxes Payable, Current | 4,137 | 16,943 |
Other accrued liabilities | 15,858 | 20,071 |
Total accounts payable and accrued liabilities | $ 148,677 | $ 188,171 |
Stockholders' Deficit (Narrativ
Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 30, 2015 | Mar. 31, 2016 | Feb. 11, 2016 | |
Treasury Stock Repurchase Programs [Line Items] | |||
Additional share repurchase amount authorized | $ 611.2 | ||
Remaining common stock available for repurchase | $ 915.8 | $ 388.8 | |
Common stock, held in treasury | 215 | ||
Common stock repurchased | $ 7,700 | ||
Share Buyback Program [Member] | |||
Treasury Stock Repurchase Programs [Line Items] | |||
Common stock authorized to repurchase | $ 1,000 | ||
Common stock repurchase, share | 1.8 | ||
Average stock price | $ 82.88 | ||
Aggregate cost of share | $ 149.9 | ||
Restricted Stock Units [Member] | |||
Treasury Stock Repurchase Programs [Line Items] | |||
Common stock repurchase, share | 0.3 | ||
Average stock price | $ 80.44 | ||
Aggregate cost of share | $ 22.4 |
Calculation Of Net Income Per32
Calculation Of Net Income Per Share (Weighted-Average Shares Used In Calculation Of Basic And Diluted EPS) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted-average number of common shares outstanding | 109,592 | 117,139 |
Conversion spread related to Convertible Debentures | 21,073 | 15,812 |
Unvested RSUs, stock options, and ESPP | 916 | 899 |
Shares used to compute diluted net income per share | 131,581 | 133,850 |
Stock-Based Compensation (Class
Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 11,759 | $ 10,128 |
Cost Of Revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,841 | 1,739 |
Sales And Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,633 | 1,299 |
Research And Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,703 | 1,721 |
General And Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 6,582 | $ 5,369 |
Stock-Based Compensation (Natur
Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ (599) | $ (700) |
Stock-based compensation | 11,759 | 10,128 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 9,133 | 8,294 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 2,377 | 1,453 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 848 | $ 1,081 |
Interest Expense (Interest Expe
Interest Expense (Interest Expense Schedule) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Contractual interest on Convertible Debentures | $ 10,156 | $ 10,156 |
Contractual interest on Notes | 15,235 | 9,037 |
Amortization of debt discount on the Convertible Debentures | 2,689 | 2,477 |
Credit facility and other interest expense | 724 | 347 |
Total interest expense | $ 28,804 | $ 22,017 |
Debt and Interest Expense Debt
Debt and Interest Expense Debt and Interest Expense (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Interest Expense, Other Long-term Debt | $ 6.6 |
Non-operating (loss) income (De
Non-operating (loss) income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Non-operating (loss) income, net [Abstract] | ||
Unrealized Gain (Loss) on Derivatives | $ 1,065 | $ (7,019) |
Interest Income | 1,042 | 259 |
Other Nonoperating Income (Expense) | 1,014 | 1,205 |
Nonoperating (loss) Income | $ 3,121 | $ (5,555) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2016Rate | Mar. 31, 2015Rate | |
Income Tax Disclosure [Abstract] | ||
Statutory federal rate | 35.00% | 35.00% |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense From Continuing Operations And Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense from continuing operations | $ 33,628 | $ 28,427 |
Effective tax rate | 24.00% | 24.00% |