VeriSign (VRSN) 10-Q 27 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2017	Jul. 21, 2017
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	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		99,920,686

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 242,426	$ 231,945
Marketable securities	1,566,017	1,565,962
Other Assets, Current	35,647	44,435
Total current assets	1,844,090	1,842,342
Property and equipment, net	261,870	266,125
Goodwill	52,527	52,527
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	20,646	9,385
Deposits to acquire Intangible Assets	145,000	145,000
Other long-term assets	20,118	19,193
Total long-term assets	500,161	492,230
Total assets	2,344,251	2,334,572
Current liabilities:
Accounts payable and accrued liabilities	178,250	203,920
Deferred revenues	715,981	688,265
Convertible Debentures, including contingent interest derivative	628,908	629,764
Total current liabilities	1,523,139	1,521,949
Long-term deferred revenues	292,323	287,424
Senior Notes	1,238,107	1,237,189
Deferred Tax Liabilities, Net	381,513	371,433
Other long-term liabilities	112,327	117,172
Total long-term liabilities	2,024,270	2,013,218
Total liabilities	3,547,409	3,535,167
Commitments and contingencies
Stockholders' deficit:
Preferred stock-par value $.001 per share	0	0
Common stock-par value $.001 per share	325	324
Additional paid-in capital	16,699,476	16,987,488
Accumulated deficit	(17,900,069)	(18,184,954)
Accumulated other comprehensive loss	(2,890)	(3,453)
Total stockholders' deficit	(1,203,158)	(1,200,595)
Total liabilities and stockholders' deficit	$ 2,344,251	$ 2,334,572

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2017	Dec. 31, 2016
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	325,036	324,118
Common stock, outstanding shares	100,210	103,091

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues	$ 288,552	$ 286,466	$ 577,166	$ 568,342
Costs and expenses:
Cost of revenues	47,644	48,753	98,313	99,335
Sales and marketing	19,474	19,757	37,796	39,784
Research and development	13,510	14,288	26,854	31,031
General and administrative	32,964	27,401	63,972	55,158
Total costs and expenses	113,592	110,199	226,935	225,308
Operating income	174,960	176,267	350,231	343,034
Interest expense	(29,090)	(28,859)	(58,113)	(57,663)
Non-operating income (loss), net	14,002	1,709	15,303	4,830
Income before income taxes	159,872	149,117	307,421	290,201
Income tax expense	(36,772)	(35,907)	(67,909)	(69,535)
Net Income	123,100	113,210	239,512	220,666
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	0	85	0	85
Change in unrealized gain on investments, net of tax	313	851	678	1,786
Realized gain on investments, net of tax, included in net income	(96)	(1)	(115)	(67)
Other comprehensive income (loss)	217	935	563	1,804
Comprehensive Income	$ 123,317	$ 114,145	$ 240,075	$ 222,470
Basic income (loss) per share
Net Income	$ 1.22	$ 1.05	$ 2.35	$ 2.03
Diluted income (loss) per share
Net Income	$ 0.99	$ 0.87	$ 1.93	$ 1.68
Shares used to compute net income per share
Basic	101,060	108,067	101,759	108,829
Diluted	123,980	130,588	124,218	131,084

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 239,512	$ 220,666
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	25,172	29,417
Gain (Loss) on Disposition of Business	(10,607)	0
Stock-based compensation	25,938	22,891
Contingent interest payment for debenture	(7,719)	(6,544)
Amortization of Debt Issuance Costs and Discounts	7,048	6,590
Other, net	(4,326)	(2,385)
Changes in operating assets and liabilities
Other assets	8,310	12,632
Accounts payable and accrued liabilities	(30,566)	(28,653)
Deferred revenues	34,246	26,346
Deferred Income Taxes	41,889	36,039
Net cash provided by operating activities	328,897	316,999
Net Cash Provided by (Used in) Investing Activities [Abstract]
Proceeds from maturities and sales of marketable securities	2,356,948	2,056,607
Purchases of marketable securities	(2,351,738)	(2,101,863)
Purchases of property and equipment	(18,974)	(13,458)
Other investing activities	12,108	206
Net cash used in investing activities	(1,656)	(58,508)
Cash flows from financing activities:
Proceeds from employee stock purchase plans	7,997	8,084
Repurchases of common stock	(325,759)	(324,235)
Net cash used in financing activities	(317,762)	(316,151)
Effect of exchange rate changes on cash and cash equivalents	1,002	(33)
Net decrease in cash and cash equivalents	10,481	(57,693)
Cash and cash equivalents at beginning of period	231,945	228,659
Cash and cash equivalents at end of period	242,426
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized interest	58,797	57,636
Cash paid for income taxes, net of refunds received	$ 23,662	$ 13,994

Basis Of Presentation

Basis Of Presentation	6 Months Ended
	Jun. 30, 2017
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 2016 Annual Report on Form 10-K (the “ 2016 Form 10-K”) filed with the SEC on February 17, 2017. Reclassifications Certain reclassifications have been made to prior period amounts to conform to current period presentation. Such reclassifications have no effect on net income as previously reported. Adoption of New Accounting Standards Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting , issued by the Financial Accounting Standards Board (“FASB”). The new guidance requires excess tax benefits and tax deficiencies to be recorded as a discrete adjustment to income tax expense when stock awards vest, rather than in additional paid-in capital when they reduce income taxes payable. The Company also made the accounting policy election, as allowed by the new guidance, to account for forfeitures of stock awards as they occur, rather than estimating forfeitures. These changes were required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings. The cumulative effect of adopting ASU 2016-09 was an increase in Deferred tax assets of $11.0 million , a decrease in Deferred tax liabilities of $36.9 million , an increase in Additional paid-in capital of $2.5 million , and a decrease in Accumulated deficit of $45.4 million , as of January 1, 2017, as a result of recognizing $47.9 million of previously unrecognized excess tax benefits from stock-based compensation, and a $2.5 million adjustment related to the change in accounting policy for forfeitures. Additionally, the new guidance requires cash flows related to excess tax benefits from stock-based compensation to be recognized with other income tax cash flows in operating activities, rather than separately as a financing activity. The Company elected to apply this new cash flow presentation requirement retrospectively, which resulted in an increase to both net cash from operating activities and net cash used in financing activities of $12.7 million for the six months ended June 30, 2016 . Effective January 1, 2017, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, which was issued by the FASB. The guidance in the ASU simplifies certain aspects of the goodwill impairment test, including the elimination of the requirement to perform a qualitative assessment of the likelihood of a goodwill impairment for reporting units with a negative carrying value. All of the Company’s goodwill is included in the Registry Services reporting unit which has a negative carrying value. As a result, the Company will no longer be required to perform the qualitative assessment. Recent Accounting Pronouncements On May 28, 2014, the FASB issued 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 FASB also issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The Company’s evaluation of the new revenue guidance is substantially complete. The Company does not currently expect the adoption of the new revenue standard to have a material impact on its consolidated financial statements. 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.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2017
Financial Instruments, Owned, at Fair Value [Abstract]
Financial Instruments	Cash, Cash Equivalents, and Marketable Securities The following table summarizes the Company’s cash, cash equivalents, and marketable securities as of June 30, 2017 and December 31, 2016 : June 30, December 31, 2017 2016 (In thousands) Cash $ 56,748 $ 39,183 Time deposits 3,173 4,632 Debt securities issued by the U.S. Treasury (Level 1) 1,564,097 1,626,764 Money market funds (Level 1) 191,781 134,790 Equity securities of public companies (Level 1) 1,920 2,174 Total $ 1,817,719 $ 1,807,543 Included in Cash and cash equivalents $ 242,426 $ 231,945 Included in Marketable securities 1,566,017 1,565,962 Included in Other long-term assets (Restricted cash) 9,276 9,636 Total $ 1,817,719 $ 1,807,543 The fair value of the debt securities held as of June 30, 2017 was 1.6 billion , including less than $0.5 million of gross and net unrealized gains. All of the debt securities held as of June 30, 2017 are scheduled to mature in less than one year. Fair Value Measurements The fair value of the Company’s investments in money market funds approximates their face value. Such instruments 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. 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 included in Marketable securities. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy. The $ 14.3 million contingent interest derivative on the Subordinated Convertible Debentures as of December 31, 2016 includes $7.7 million contingent interest that was paid in February 2017, and $6.6 million estimated fair value of the contingent interest to be paid in August 2017. As of June 30, 2017 , the derivative represents only the $7.5 million contingent interest amount, as determined in February 2017, and to be paid in August 2017. Verisign will have the right to redeem the Subordinated Convertible Debentures under the terms of the indenture, starting August 15, 2017. Therefore, the fair value of the contingent interest embedded derivative for periods after August 15, 2017 is negligible. The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of June 30, 2017 , the carrying value of these financial instruments approximated their fair value. The fair value of the Company’s Subordinated Convertible Debentures was $ 3.4 billion as of June 30, 2017 . The fair values of the senior notes due 2023 (the “2023 Senior Notes”) and the senior notes due 2025 (the “2025 Senior Notes”) were $ 772.2 million and $535.0 million , respectively, as of June 30, 2017 . 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	6 Months Ended
	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Other Balance Sheet Items	Other Balance Sheet Items Other Current Assets Other current assets consist of the following: June 30, December 31, 2017 2016 (In thousands) Prepaid expenses $ 20,745 $ 14,385 Accounts receivable, net 9,496 13,051 Income taxes receivable 3,958 15,328 Other 1,448 1,671 Total other current assets $ 35,647 $ 44,435 The Income taxes receivable as of December 31, 2016 primarily consists of the remaining U.S. federal income tax overpayment from prior years, which has been used in 2017 to offset a portion of current year income taxes. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: June 30, December 31, 2017 2016 (In thousands) Accounts payable $ 27,989 $ 19,455 Accrued employee compensation 37,297 61,426 Customer deposits, net 48,128 52,173 Interest payable 27,701 27,701 Income taxes payable and other tax liabilities 13,775 23,144 Other accrued liabilities 23,360 20,021 Total accounts payable and accrued liabilities $ 178,250 $ 203,920 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, 2016 , was paid during the six months ended June 30, 2017 . Interest payable includes coupon interest on the Subordinated Convertible Debentures, the 2023 Senior Notes and the 2025 Senior Notes. Income taxes payable and other tax liabilities as of December 31, 2016, includes liabilities for foreign income taxes which were paid during the six months ended June 30, 2017 .

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Stockholders' (Deficit) Equity	Stockholders’ Deficit On February 9, 2017, the Company’s Board of Directors authorized the repurchase of approximately $ 640.9 million of its common stock, in addition to the $ 359.1 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 can be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. During the three and six months ended June 30, 2017 the Company repurchased 1.7 million and 3.5 million shares of its common stock, respectively, at an average stock price of $90.07 and $85.99 , respectively. The aggregate cost of the repurchases in the three and six months ended June 30, 2017 was $150.5 million and $300.6 million , respectively. As of June 30, 2017 , $769.5 million remained available for further repurchases under the share repurchase program. During the six months ended June 30, 2017 , the Company placed 0.3 million shares, at an average stock price of $83.13 , and for an aggregate cost of $25.2 million , into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”). Since inception the Company has repurchased 224.8 million shares of its common stock for an aggregate cost of $8.5 billion , which is presented as a reduction of Additional paid-in capital.

Calculation Of Net Income Per S

Calculation Of Net Income Per Share	6 Months Ended
	Jun. 30, 2017
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Weighted-average shares of common stock outstanding 101,060 108,067 101,759 108,829 Weighted-average potential shares of common stock outstanding: Conversion spread related to Convertible Debentures 22,530 21,872 21,929 21,472 Unvested RSUs and ESPP 390 649 530 783 Shares used to compute diluted earnings per share 123,980 130,588 124,218 131,084 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	6 Months Ended
	Jun. 30, 2017
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Cost of revenues $ 1,802 $ 1,747 $ 3,537 $ 3,588 Sales and marketing 1,457 1,457 2,886 3,090 Research and development 1,482 1,587 2,978 3,290 General and administrative 8,634 6,341 16,537 12,923 Total stock-based compensation expense $ 13,375 $ 11,132 $ 25,938 $ 22,891 The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) RSUs $ 9,220 $ 8,625 $ 18,374 $ 17,758 Performance-based RSUs 3,804 2,285 6,892 4,662 ESPP 960 822 1,941 1,670 Capitalization (Included in Property and equipment, net) (609 ) (600 ) (1,269 ) (1,199 ) Total stock-based compensation expense $ 13,375 $ 11,132 $ 25,938 $ 22,891

Interest Expense

Interest Expense	6 Months Ended
	Jun. 30, 2017
Interest Expense [Abstract]
Interest Expense	Interest Expense The following table presents the components of the Company’s interest expense: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 10,156 $ 10,156 $ 20,312 $ 20,312 Contractual interest on Senior Notes 15,234 15,234 30,469 30,469 Amortization of debt discount on Subordinated Convertible Debentures 2,971 2,744 5,882 5,433 Amortization of debt issuance costs and other interest expense 729 725 1,450 1,449 Total interest expense $ 29,090 $ 28,859 $ 58,113 $ 57,663

Non-operating (loss) income

Non-operating (loss) income	6 Months Ended
	Jun. 30, 2017
Non-operating (loss) income, net [Abstract]
Other Income and Other Expense Disclosure [Text Block]	Non-operating Income, Net The following table presents the components of Non-operating income, net: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Gain on sale of business $ 10,607 $ — $ 10,607 $ — Interest income 3,309 1,522 5,554 2,564 Unrealized (loss) gain on contingent interest derivative on Subordinated Convertible Debentures — (94 ) (893 ) 971 Other, net 86 281 35 1,295 Total non-operating income, net $ 14,002 $ 1,709 $ 15,303 $ 4,830 On April 1, 2017, the Company completed the sale of its iDefense business, which resulted in a gain of approximately $10.6 million.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table presents income tax expense and the effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Dollars in thousands) Income tax expense $ 36,772 $ 35,907 $ 67,909 $ 69,535 Effective tax rate 23 % 24 % 22 % 24 % The effective tax rate for the three and six months ended June 30, 2017 and 2016 was 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. Additionally, the effective tax rate for six months ended June 30, 2017 is also reduced by $6.7 million of excess tax benefits related to stock-based compensation, which are included in income tax expense, pursuant to the adoption of ASU 2016-09 Improvements to Employee Share-Based Payment Accounting as discussed in Note 1. Deferred tax liabilities as of June 30, 2017 reflect the use of a portion of U.S. foreign tax credits during the six months ended June 30, 2017 , and an increase in the deferred tax liability related to the Subordinated Convertible Debentures, as well as the deferred tax asset, net of a valuation allowance, for tax credit and tax loss carryforwards related to previously unrecognized excess tax benefits on stock awards which were recorded pursuant to the Company’s adoption of ASU 2016-09.

Subsequent Events (Notes)

Subsequent Events (Notes)	6 Months Ended
	Jun. 30, 2017
Subsequent Event [Line Items]
Subsequent Events [Text Block]	Subsequent Event On July 5, 2017 , the Company issued $550.0 million of 4.75% Senior Notes due July 15, 2027 . The Company intends to use the proceeds for general corporate purposes, including, but not limited to, the repurchase of shares under our share repurchase program. The Company will pay interest on the notes semi-annually on January 15 and July 15, commencing on January 15, 2018. The Company may redeem these senior notes, in whole or in part, at the Company’s option, at times and redemption prices specified in the indenture.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Financial Instruments, Owned, at Fair Value [Abstract]
Cash, Cash Equivalents, And Marketable Securities	The following table summarizes the Company’s cash, cash equivalents, and marketable securities as of June 30, 2017 and December 31, 2016 : June 30, December 31, 2017 2016 (In thousands) Cash $ 56,748 $ 39,183 Time deposits 3,173 4,632 Debt securities issued by the U.S. Treasury (Level 1) 1,564,097 1,626,764 Money market funds (Level 1) 191,781 134,790 Equity securities of public companies (Level 1) 1,920 2,174 Total $ 1,817,719 $ 1,807,543 Included in Cash and cash equivalents $ 242,426 $ 231,945 Included in Marketable securities 1,566,017 1,565,962 Included in Other long-term assets (Restricted cash) 9,276 9,636 Total $ 1,817,719 $ 1,807,543

Other Balance Sheet Items (Tabl

Other Balance Sheet Items (Tables)	6 Months Ended
	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Other Current Assets	Other current assets consist of the following: June 30, December 31, 2017 2016 (In thousands) Prepaid expenses $ 20,745 $ 14,385 Accounts receivable, net 9,496 13,051 Income taxes receivable 3,958 15,328 Other 1,448 1,671 Total other current assets $ 35,647 $ 44,435
Components Of Accounts Payable And Accrued Liabilities	Accounts payable and accrued liabilities consist of the following: June 30, December 31, 2017 2016 (In thousands) Accounts payable $ 27,989 $ 19,455 Accrued employee compensation 37,297 61,426 Customer deposits, net 48,128 52,173 Interest payable 27,701 27,701 Income taxes payable and other tax liabilities 13,775 23,144 Other accrued liabilities 23,360 20,021 Total accounts payable and accrued liabilities $ 178,250 $ 203,920

Calculation Of Net Income Per18

Calculation Of Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Weighted-average shares of common stock outstanding 101,060 108,067 101,759 108,829 Weighted-average potential shares of common stock outstanding: Conversion spread related to Convertible Debentures 22,530 21,872 21,929 21,472 Unvested RSUs and ESPP 390 649 530 783 Shares used to compute diluted earnings per share 123,980 130,588 124,218 131,084

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Share-based Compensation [Abstract]
Classification Of Stock-Based Compensation	The following table presents the classification of stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Cost of revenues $ 1,802 $ 1,747 $ 3,537 $ 3,588 Sales and marketing 1,457 1,457 2,886 3,090 Research and development 1,482 1,587 2,978 3,290 General and administrative 8,634 6,341 16,537 12,923 Total stock-based compensation expense $ 13,375 $ 11,132 $ 25,938 $ 22,891
Nature Of Total Stock-Based Compensation	The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) RSUs $ 9,220 $ 8,625 $ 18,374 $ 17,758 Performance-based RSUs 3,804 2,285 6,892 4,662 ESPP 960 822 1,941 1,670 Capitalization (Included in Property and equipment, net) (609 ) (600 ) (1,269 ) (1,199 ) Total stock-based compensation expense $ 13,375 $ 11,132 $ 25,938 $ 22,891

Interest Expense (Tables)

Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2017
Interest Expense [Abstract]
Interest Expense Schedule	The following table presents the components of the Company’s interest expense: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 10,156 $ 10,156 $ 20,312 $ 20,312 Contractual interest on Senior Notes 15,234 15,234 30,469 30,469 Amortization of debt discount on Subordinated Convertible Debentures 2,971 2,744 5,882 5,433 Amortization of debt issuance costs and other interest expense 729 725 1,450 1,449 Total interest expense $ 29,090 $ 28,859 $ 58,113 $ 57,663

Non-operating (loss) income (Ta

Non-operating (loss) income (Tables)	6 Months Ended
	Jun. 30, 2017
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, net: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Gain on sale of business $ 10,607 $ — $ 10,607 $ — Interest income 3,309 1,522 5,554 2,564 Unrealized (loss) gain on contingent interest derivative on Subordinated Convertible Debentures — (94 ) (893 ) 971 Other, net 86 281 35 1,295 Total non-operating income, net $ 14,002 $ 1,709 $ 15,303 $ 4,830

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Dollars in thousands) Income tax expense $ 36,772 $ 35,907 $ 67,909 $ 69,535 Effective tax rate 23 % 24 % 22 % 24 %

Basis Of Presentation Basis of

Basis Of Presentation Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Adoption of New Accounting Standards [Abstract]
Deferred Tax Assets, Other	$ 11
Deferred Tax Liabilities, Other	36.9
Adjustments to Additional Paid in Capital, Other	2.5
adjustments to accumulated deficit	45.4
Deferred Tax Asset for previously unrecognized excess tax benefits	47.9
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition	$ 2.5
excess tax benefit related to stock based compensation		$ 12.7

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cash	$ 56,748	$ 39,183
Time deposits	3,173	4,632
Total	1,817,719	1,807,543
Included in Cash and cash equivalents	242,426	231,945	$ 170,966	$ 228,659
Included in Marketable securities	1,566,017	1,565,962
Included in Other assets (Restricted cash)	9,276	9,636
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Money Market Funds (level 1)	191,781	134,790
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	1,564,097	1,626,764
Equity Securities of Public Companies	$ 1,920	$ 2,174

Financial Instruments Financial

Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Feb. 15, 2017	Dec. 31, 2016
Convertible Debt, Fair Value Disclosures	$ 3,400,000
Debt securities gross unrealized gains	500
Debt instrument fair value senior notes 2023	772,200
Debt instrument fair value senior notes 2025	535,000
fair value of contingent interest payment	7,500		$ 14,300
contingent interest payment		$ 7,700	6,600
Fair Value, Inputs, Level 1 [Member]
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	$ 1,564,097		$ 1,626,764

Other Balance Sheet Items (Othe

Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses	$ 20,745	$ 14,385
Accounts Receivable, Net	9,496	13,051
Income Taxes Receivable, Current	3,958	15,328
Other Assets, Miscellaneous, Current	1,448	1,671
Other Assets, Current	$ 35,647	$ 44,435

Other Balance Sheet Items (Comp

Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Accounts payable	$ 27,989	$ 19,455
Accrued employee compensation	37,297	61,426
Deposits, net	48,128	52,173
Interest Payable, Current	27,701	27,701
Taxes Payable, Current	13,775	23,144
Other accrued liabilities	23,360	20,021
Total accounts payable and accrued liabilities	$ 178,250	$ 203,920

Stockholders' Deficit (Narrativ

Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 11, 2016	Jun. 30, 2017	Jun. 30, 2017
Treasury Stock Repurchase Programs [Line Items]
Additional share repurchase amount authorized	$ 640.9
Remaining common stock available for repurchase	$ 359.1	$ 769.5	$ 769.5
Common stock, held in treasury		224.8	224.8
Common stock repurchased		$ 8,500	$ 8,500
Share Buyback Program [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock authorized to repurchase		$ 1,000	$ 1,000
Common stock repurchase, share		1.7	3.5
Average stock price		$ 90.07	$ 85.99
Aggregate cost of share		$ 150.5	$ 300.6
Restricted Stock Units [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock repurchase, share			0.3
Average stock price			$ 83.13
Aggregate cost of share			$ 25.2

Calculation Of Net Income Per29

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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Weighted-average number of common shares outstanding	101,060	108,067	101,759	108,829
Conversion spread related to Convertible Debentures	22,530	21,872	21,929	21,472
Unvested RSUs and ESPP	390	649	530	783
Shares used to compute diluted net income per share	123,980	130,588	124,218	131,084

Stock-Based Compensation (Class

Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 13,375	$ 11,132	$ 25,938	$ 22,891
Cost Of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,802	1,747	3,537	3,588
Sales And Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,457	1,457	2,886	3,090
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,482	1,587	2,978	3,290
General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 8,634	$ 6,341	$ 16,537	$ 12,923

Stock-Based Compensation (Natur

Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ (609)	$ (600)	$ (1,269)	$ (1,199)
Stock-based compensation	13,375	11,132	25,938	22,891
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	9,220	8,625	18,374	17,758
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	3,804	2,285	6,892	4,662
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 960	$ 822	$ 1,941	$ 1,670

Interest Expense (Interest Expe

Interest Expense (Interest Expense Schedule) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest Expense [Abstract]
Contractual interest on Convertible Debentures	$ 10,156	$ 10,156	$ 20,312	$ 20,312
Contractual interest on Notes	15,234	15,234	30,469	30,469
Amortization of debt discount on the Convertible Debentures	2,971	2,744	5,882	5,433
Credit facility and other interest expense	729	725	1,450	1,449
Total interest expense	$ 29,090	$ 28,859	$ 58,113	$ 57,663

Non-operating (loss) income (De

Non-operating (loss) income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Non-operating (loss) income, net [Abstract]
Gain (Loss) on Disposition of Business	$ 10,607	$ 0	$ 10,607	$ 0
Unrealized Gain (Loss) on Derivatives	0	(94)	(893)	971
Interest Income	3,309	1,522	5,554	2,564
Other Nonoperating Income (Expense)	86	281	35	1,295
Nonoperating (loss) Income	$ 14,002	$ 1,709	$ 15,303	$ 4,830

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2016
Income Tax Disclosure [Abstract]
excess tax benefit related to stock based compensation	$ 6.7
Statutory federal rate	35.00%	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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense from continuing operations	$ 36,772	$ 35,907	$ 67,909	$ 69,535
Effective tax rate	23.00%	24.00%	22.00%	24.00%

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	Jul. 05, 2017USD ($)Rate
Subsequent Event [Line Items]
Debt Instrument, Offering Date	Jul. 5, 2017
Debt Instrument, Face Amount | $	$ 550
Debt Instrument, Interest Rate, Stated Percentage | Rate	4.75%
Debt Instrument, Maturity Date	Jul. 15, 2027