Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 20, 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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 98,570,102 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 286,822 | $ 231,945 |
Marketable securities | 2,078,905 | 1,565,962 |
Other Assets, Current | 40,293 | 44,435 |
Total current assets | 2,406,020 | 1,842,342 |
Property and equipment, net | 265,306 | 266,125 |
Goodwill | 52,527 | 52,527 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 20,458 | 9,385 |
Deposits to acquire Intangible Assets | 145,000 | 145,000 |
Other long-term assets | 19,052 | 19,193 |
Total long-term assets | 502,343 | 492,230 |
Total assets | 2,908,363 | 2,334,572 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 193,462 | 203,920 |
Deferred revenues | 717,586 | 688,265 |
Convertible Debentures, including contingent interest derivative | 624,474 | 629,764 |
Total current liabilities | 1,535,522 | 1,521,949 |
Long-term deferred revenues | 289,262 | 287,424 |
Senior Notes | 1,781,912 | 1,237,189 |
Deferred Tax Liabilities, Net | 401,359 | 371,433 |
Other long-term liabilities | 130,246 | 117,172 |
Total long-term liabilities | 2,602,779 | 2,013,218 |
Total liabilities | 4,138,301 | 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 | 16,570,518 | 16,987,488 |
Accumulated deficit | (17,797,627) | (18,184,954) |
Accumulated other comprehensive loss | (3,154) | (3,453) |
Total stockholders' deficit | (1,229,938) | (1,200,595) |
Total liabilities and stockholders' deficit | $ 2,908,363 | $ 2,334,572 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 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 | 325,172 | 324,118 |
Common stock, outstanding shares | 98,865 | 103,091 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | $ 292,428 | $ 287,554 | $ 869,594 | $ 855,896 |
Costs and expenses: | ||||
Cost of revenues | 47,333 | 49,807 | 145,646 | 149,142 |
Sales and marketing | 18,667 | 18,647 | 56,463 | 58,431 |
Research and development | 12,715 | 14,324 | 39,569 | 45,355 |
General and administrative | 32,654 | 30,000 | 96,626 | 85,158 |
Total costs and expenses | 111,369 | 112,778 | 338,304 | 338,086 |
Operating income | 181,059 | 174,776 | 531,290 | 517,810 |
Interest expense | (37,756) | (28,919) | (95,869) | (86,582) |
Non-operating income (loss), net | 6,241 | 3,262 | 21,544 | 8,092 |
Income before income taxes | 149,544 | 149,119 | 456,965 | 439,320 |
Income tax expense | (34,645) | (34,692) | (102,554) | (104,227) |
Net Income | 114,899 | 114,427 | 354,411 | 335,093 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | 0 | 0 | 85 |
Change in unrealized gain on investments, net of tax | 61 | (485) | 739 | 1,301 |
Realized gain on investments, net of tax, included in net income | (325) | (11) | (440) | (78) |
Other comprehensive income (loss) | (264) | (496) | 299 | 1,308 |
Comprehensive Income | $ 114,635 | $ 113,931 | $ 354,710 | $ 336,401 |
Basic income (loss) per share | ||||
Net Income | $ 1.15 | $ 1.08 | $ 3.51 | $ 3.10 |
Diluted income (loss) per share | ||||
Net Income | $ 0.93 | $ 0.90 | $ 2.85 | $ 2.58 |
Shares used to compute net income per share | ||||
Basic | 99,614 | 106,307 | 101,036 | 107,982 |
Diluted | 124,074 | 127,750 | 124,162 | 129,967 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 354,411 | $ 335,093 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property and equipment | 37,665 | 44,114 |
(Gain) Loss on Disposition of Business | (10,421) | 0 |
Stock-based compensation | 40,043 | 35,745 |
Contingent interest payment for debenture | (15,232) | (13,385) |
Amortization of Debt Issuance Costs and Discounts | 10,827 | 9,971 |
Other, net | (8,942) | (5,355) |
Changes in operating assets and liabilities | ||
Other assets | 4,566 | 14,278 |
Accounts payable and accrued liabilities | (9,524) | (8,285) |
Deferred revenues | 32,790 | 19,470 |
Deferred Income Taxes | 67,385 | 56,397 |
Net cash provided by operating activities | 503,568 | 488,043 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Proceeds from maturities and sales of marketable securities | 3,895,675 | 3,029,699 |
Purchases of marketable securities | (4,398,787) | (2,917,743) |
Purchases of property and equipment | (40,609) | (19,889) |
Payments to Acquire Intangible Assets | 0 | 143,000 |
Other investing activities | 12,102 | 171 |
Net cash used in investing activities | (531,619) | (50,762) |
Cash flows from financing activities: | ||
Proceeds from employee stock purchase plans | 12,915 | 13,670 |
Repurchases of common stock | (474,290) | (501,934) |
Proceeds from Debt, Net of Issuance Costs | 543,185 | 0 |
Net cash used in financing activities | 81,810 | (488,264) |
Effect of exchange rate changes on cash and cash equivalents | 1,118 | 109 |
Net decrease in cash and cash equivalents | 54,877 | (50,874) |
Cash and cash equivalents at beginning of period | 231,945 | 228,659 |
Cash and cash equivalents at end of period | 286,822 | 177,785 |
Supplemental cash flow disclosures: | ||
Cash paid for interest, net of capitalized interest | 86,622 | 84,930 |
Cash paid for income taxes, net of refunds received | $ 22,717 | $ 14,474 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 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 $24.4 million , an increase in Additional paid-in capital of $2.5 million , and a decrease in Accumulated deficit of $32.9 million , as of January 1, 2017, as a result of recognizing $35.4 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. The impacts to Deferred tax liabilities, and Accumulated deficit related to previously unrecognized excess tax benefits, reflect immaterial adjustments recorded during the third quarter of 2017, upon completion of the Company’s 2016 U.S. federal income tax return. 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 $15.6 million for the nine months ended September 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. Other than the inclusion of the additional required disclosures, 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 | 9 Months Ended |
Sep. 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 September 30, 2017 and December 31, 2016 : September 30, December 31, 2017 2016 (In thousands) Cash $ 33,466 $ 39,183 Time deposits 3,139 4,632 Money market funds (Level 1) 259,499 134,790 Debt securities issued by the U.S. Treasury (Level 1) 2,078,882 1,626,764 Equity securities of public companies (Level 1) 23 2,174 Total $ 2,375,009 $ 1,807,543 Included in Cash and cash equivalents $ 286,822 $ 231,945 Included in Marketable securities 2,078,905 1,565,962 Included in Other long-term assets (Restricted cash) 9,282 9,636 Total $ 2,375,009 $ 1,807,543 The fair value of the debt securities held as of September 30, 2017 was $2.1 billion , including less than $0.5 million of gross and net unrealized gains. All of the debt securities held as of September 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 included $7.7 million contingent interest that was paid in February 2017, and $6.6 million estimated fair value of the $7.5 million contingent interest that was to be paid in August 2017. Effective August 15, 2017, Verisign has the right to redeem the Subordinated Convertible Debentures under the terms of the indenture. 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 September 30, 2017 , the carrying value of these financial instruments approximated their fair value. The fair value of the Company’s Subordinated Convertible Debentures was $3.9 billion as of September 30, 2017 . The fair values of the senior notes due 2023 (the “2023 Senior Notes”), the senior notes due 2025 (the “2025 Senior Notes”), and the senior notes due 2027 (the “2027 Senior Notes”) were $776.1 million , $540.9 million , and 567.4 million , respectively, as of September 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 | 9 Months Ended |
Sep. 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: September 30, December 31, 2017 2016 (In thousands) Prepaid expenses $ 20,004 $ 14,385 Accounts receivable, net 12,584 13,051 Income taxes receivable 4,026 15,328 Other 3,679 1,671 Total other current assets $ 40,293 $ 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: September 30, December 31, 2017 2016 (In thousands) Accounts payable $ 18,218 $ 19,455 Accrued employee compensation 37,292 61,426 Customer deposits, net 53,743 52,173 Interest payable 41,360 27,701 Income taxes payable and other tax liabilities 23,018 23,144 Other accrued liabilities 19,831 20,021 Total accounts payable and accrued liabilities $ 193,462 $ 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 nine months ended September 30, 2017 . Interest payable includes coupon and contingent interest on the Subordinated Convertible Debentures, and interest payable on the 2023 Senior Notes the 2025 Senior Notes, and the 2027 Senior Notes. Income taxes payable and other tax liabilities primarily includes amounts payable for U.S. and foreign income taxes which are paid during the following year. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 the Company repurchased 1.5 million and 5.0 million shares of its common stock, respectively, at an average stock price of $100.30 and $90.21 , respectively. The aggregate cost of the repurchases in the three and nine months ended September 30, 2017 was $147.0 million and $447.6 million , respectively. As of September 30, 2017 , $622.5 million remained available for further repurchases under the share repurchase program. During the nine months ended September 30, 2017 , the Company placed 0.3 million shares, at an average stock price of $83.88 , and for an aggregate cost of $26.7 million , into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”). Since inception the Company has repurchased 226.3 million shares of its common stock for an aggregate cost of $8.6 billion , which is presented as a reduction of Additional paid-in capital. |
Calculation Of Net Income Per S
Calculation Of Net Income Per Share | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (In thousands) Weighted-average shares of common stock outstanding 99,614 106,307 101,036 107,982 Weighted-average potential shares of common stock outstanding: Conversion spread related to Convertible Debentures 23,956 20,789 22,605 21,244 Unvested RSUs and ESPP 504 654 521 741 Shares used to compute diluted earnings per share 124,074 127,750 124,162 129,967 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 | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (In thousands) Cost of revenues $ 1,774 $ 1,779 $ 5,311 $ 5,367 Sales and marketing 1,369 1,129 4,255 4,219 Research and development 1,575 1,676 4,553 4,966 General and administrative 9,387 8,270 25,924 21,193 Total stock-based compensation expense $ 14,105 $ 12,854 $ 40,043 $ 35,745 The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) RSUs $ 10,556 $ 10,276 $ 28,930 $ 28,034 Performance-based RSUs 3,100 2,216 9,992 6,878 ESPP 1,000 924 2,941 2,594 Capitalization (included in Property and equipment, net) (551 ) (562 ) (1,820 ) (1,761 ) Total stock-based compensation expense $ 14,105 $ 12,854 $ 40,043 $ 35,745 |
Interest Expense
Interest Expense | 9 Months Ended |
Sep. 30, 2017 | |
Interest Expense [Abstract] | |
Interest Expense | Interest Expense On July 5, 2017, the Company issued $550.0 million of 4.75% senior unsecured 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 of its common stock under its 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. In connection with the offering the Company incurred $6.8 million of issuance costs which are presented on the balance sheet as a reduction of the debt obligation. The issuance costs are being amortized to Interest expense over the 10 year term of the notes. The following table presents the components of the Company’s interest expense: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 12,426 $ 10,156 $ 32,738 $ 30,469 Contractual interest on Senior Notes 21,403 15,235 51,872 45,704 Amortization of debt discount on Subordinated Convertible Debentures 3,034 2,802 8,916 8,235 Amortization of debt issuance costs and other interest expense 893 726 2,343 2,174 Total interest expense $ 37,756 $ 28,919 $ 95,869 $ 86,582 Effective August 15, 2017, Verisign has the right to redeem the Subordinated Convertible Debentures under the terms of the indenture. Therefore, the fair value of the contingent interest embedded derivative for periods after August 15, 2017 is negligible. Contingent interest for periods after August 15, 2017 is included in Contractual interest of Subordinated Convertible Debentures. |
Non-operating (loss) income
Non-operating (loss) income | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (In thousands) Interest income $ 5,832 $ 1,728 $ 11,386 $ 4,292 (Loss) gain on sale of business (186 ) — 10,421 — Unrealized gain (loss) on contingent interest derivative on Subordinated Convertible Debentures — 1,440 (893 ) 2,411 Other, net 595 94 630 1,389 Total non-operating income, net $ 6,241 $ 3,262 $ 21,544 $ 8,092 On April 1, 2017, the Company completed the sale of its iDefense business, which resulted in a gain of approximately $10.4 million for the nine months ended September 30, 2017. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (Dollars in thousands) Income tax expense $ 34,645 $ 34,692 $ 102,554 $ 104,227 Effective tax rate 23 % 23 % 22 % 24 % The effective tax rate for the three and nine months ended September 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 nine months ended September 30, 2017 is also reduced by $8.2 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 assets, net of a valuation allowance, and liabilities as of September 30, 2017 reflect the use of a portion of U.S. foreign tax credits during the nine months ended September 30, 2017 , an increase in the deferred tax liability related to the Subordinated Convertible Debentures, as well as the recognition of previously unrecognized excess tax benefits on stock awards which were recorded pursuant to the Company’s adoption of ASU 2016-09. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2017 and December 31, 2016 : September 30, December 31, 2017 2016 (In thousands) Cash $ 33,466 $ 39,183 Time deposits 3,139 4,632 Money market funds (Level 1) 259,499 134,790 Debt securities issued by the U.S. Treasury (Level 1) 2,078,882 1,626,764 Equity securities of public companies (Level 1) 23 2,174 Total $ 2,375,009 $ 1,807,543 Included in Cash and cash equivalents $ 286,822 $ 231,945 Included in Marketable securities 2,078,905 1,565,962 Included in Other long-term assets (Restricted cash) 9,282 9,636 Total $ 2,375,009 $ 1,807,543 |
Other Balance Sheet Items (Tabl
Other Balance Sheet Items (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Current Assets | Other current assets consist of the following: September 30, December 31, 2017 2016 (In thousands) Prepaid expenses $ 20,004 $ 14,385 Accounts receivable, net 12,584 13,051 Income taxes receivable 4,026 15,328 Other 3,679 1,671 Total other current assets $ 40,293 $ 44,435 |
Components Of Accounts Payable And Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: September 30, December 31, 2017 2016 (In thousands) Accounts payable $ 18,218 $ 19,455 Accrued employee compensation 37,292 61,426 Customer deposits, net 53,743 52,173 Interest payable 41,360 27,701 Income taxes payable and other tax liabilities 23,018 23,144 Other accrued liabilities 19,831 20,021 Total accounts payable and accrued liabilities $ 193,462 $ 203,920 |
Calculation Of Net Income Per17
Calculation Of Net Income Per Share (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (In thousands) Weighted-average shares of common stock outstanding 99,614 106,307 101,036 107,982 Weighted-average potential shares of common stock outstanding: Conversion spread related to Convertible Debentures 23,956 20,789 22,605 21,244 Unvested RSUs and ESPP 504 654 521 741 Shares used to compute diluted earnings per share 124,074 127,750 124,162 129,967 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
Classification Of Stock-Based Compensation | The following table presents the classification of stock-based compensation: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) Cost of revenues $ 1,774 $ 1,779 $ 5,311 $ 5,367 Sales and marketing 1,369 1,129 4,255 4,219 Research and development 1,575 1,676 4,553 4,966 General and administrative 9,387 8,270 25,924 21,193 Total stock-based compensation expense $ 14,105 $ 12,854 $ 40,043 $ 35,745 |
Nature Of Total Stock-Based Compensation | The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) RSUs $ 10,556 $ 10,276 $ 28,930 $ 28,034 Performance-based RSUs 3,100 2,216 9,992 6,878 ESPP 1,000 924 2,941 2,594 Capitalization (included in Property and equipment, net) (551 ) (562 ) (1,820 ) (1,761 ) Total stock-based compensation expense $ 14,105 $ 12,854 $ 40,043 $ 35,745 |
Interest Expense (Tables)
Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Interest Expense [Abstract] | |
Interest Expense Schedule | The following table presents the components of the Company’s interest expense: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 12,426 $ 10,156 $ 32,738 $ 30,469 Contractual interest on Senior Notes 21,403 15,235 51,872 45,704 Amortization of debt discount on Subordinated Convertible Debentures 3,034 2,802 8,916 8,235 Amortization of debt issuance costs and other interest expense 893 726 2,343 2,174 Total interest expense $ 37,756 $ 28,919 $ 95,869 $ 86,582 |
Non-operating (loss) income (Ta
Non-operating (loss) income (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (In thousands) Interest income $ 5,832 $ 1,728 $ 11,386 $ 4,292 (Loss) gain on sale of business (186 ) — 10,421 — Unrealized gain (loss) on contingent interest derivative on Subordinated Convertible Debentures — 1,440 (893 ) 2,411 Other, net 595 94 630 1,389 Total non-operating income, net $ 6,241 $ 3,262 $ 21,544 $ 8,092 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended 2017 2016 2017 2016 (Dollars in thousands) Income tax expense $ 34,645 $ 34,692 $ 102,554 $ 104,227 Effective tax rate 23 % 23 % 22 % 24 % |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2016 | |
Adoption of New Accounting Standards [Abstract] | ||
Deferred Tax Assets, Other | $ 11 | |
Deferred Tax Liabilities, Other | 24.4 | |
Adjustments to Additional Paid in Capital, Other | 2.5 | |
adjustments to accumulated deficit | 32.9 | |
Deferred Tax Asset for previously unrecognized excess tax benefits | 35.4 | |
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 | $ 15.6 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 33,466 | $ 39,183 | ||
Time deposits | 3,139 | 4,632 | ||
Total | 2,375,009 | 1,807,543 | ||
Included in Cash and cash equivalents | 286,822 | 231,945 | $ 177,785 | $ 228,659 |
Included in Marketable securities | 2,078,905 | 1,565,962 | ||
Included in Other assets (Restricted cash) | 9,282 | 9,636 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Money Market Funds (level 1) | 259,499 | 134,790 | ||
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value | 2,078,882 | 1,626,764 | ||
Equity Securities of Public Companies | $ 23 | $ 2,174 |
Financial Instruments Financial
Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Feb. 15, 2017 | Dec. 31, 2016 |
Convertible Debt, Fair Value Disclosures | $ 3,900,000 | ||
Debt securities gross unrealized gains | 500 | ||
Debt instrument fair value senior notes 2023 | 776,100 | ||
Debt instrument fair value senior notes 2025 | 540,900 | ||
Debt instrument fair value senior notes 2027 | 567,400 | ||
fair value of contingent interest payment | $ 14,300 | ||
contingent interest payment | 7,500 | $ 7,700 | |
portion of fair value of contingent interest payment | 6,600 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value | $ 2,078,882 | $ 1,626,764 |
Other Balance Sheet Items (Othe
Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 20,004 | $ 14,385 |
Accounts Receivable, Net | 12,584 | 13,051 |
Income Taxes Receivable, Current | 4,026 | 15,328 |
Other Assets, Miscellaneous, Current | 3,679 | 1,671 |
Other Assets, Current | $ 40,293 | $ 44,435 |
Other Balance Sheet Items (Comp
Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable | $ 18,218 | $ 19,455 |
Accrued employee compensation | 37,292 | 61,426 |
Deposits, net | 53,743 | 52,173 |
Interest Payable, Current | 41,360 | 27,701 |
Taxes Payable, Current | 23,018 | 23,144 |
Other accrued liabilities | 19,831 | 20,021 |
Total accounts payable and accrued liabilities | $ 193,462 | $ 203,920 |
Stockholders' Deficit (Narrativ
Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Feb. 09, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Feb. 11, 2016 | |
Treasury Stock Repurchase Programs [Line Items] | ||||
Additional share repurchase amount authorized | $ 640.9 | |||
Remaining common stock available for repurchase | $ 622.5 | $ 622.5 | $ 359.1 | |
Common stock, held in treasury | 226.3 | 226.3 | ||
Common stock repurchased | $ 8,600 | $ 8,600 | ||
Share Buyback Program [Member] | ||||
Treasury Stock Repurchase Programs [Line Items] | ||||
Common stock authorized to repurchase | $ 1,000 | $ 1,000 | ||
Common stock repurchase, share | 1.5 | 5 | ||
Average stock price | $ 100.30 | $ 90.21 | ||
Aggregate cost of share | $ 147 | $ 447.6 | ||
Restricted Stock Units [Member] | ||||
Treasury Stock Repurchase Programs [Line Items] | ||||
Common stock repurchase, share | 0.3 | |||
Average stock price | $ 83.88 | |||
Aggregate cost of share | $ 26.7 |
Calculation Of Net Income Per28
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of common shares outstanding | 99,614 | 106,307 | 101,036 | 107,982 |
Conversion spread related to Convertible Debentures | 23,956 | 20,789 | 22,605 | 21,244 |
Unvested RSUs and ESPP | 504 | 654 | 521 | 741 |
Shares used to compute diluted net income per share | 124,074 | 127,750 | 124,162 | 129,967 |
Stock-Based Compensation (Class
Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 14,105 | $ 12,854 | $ 40,043 | $ 35,745 |
Cost Of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,774 | 1,779 | 5,311 | 5,367 |
Sales And Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,369 | 1,129 | 4,255 | 4,219 |
Research And Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,575 | 1,676 | 4,553 | 4,966 |
General And Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 9,387 | $ 8,270 | $ 25,924 | $ 21,193 |
Stock-Based Compensation (Natur
Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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 | $ (551) | $ (562) | $ (1,820) | $ (1,761) |
Stock-based compensation | 14,105 | 12,854 | 40,043 | 35,745 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 10,556 | 10,276 | 28,930 | 28,034 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 3,100 | 2,216 | 9,992 | 6,878 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,000 | $ 924 | $ 2,941 | $ 2,594 |
Interest Expense (Interest Expe
Interest Expense (Interest Expense Schedule) (Details) - USD ($) $ in Thousands | Jul. 05, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Interest Expense [Abstract] | |||||
Debt Instrument, Face Amount | $ 550,000 | ||||
Contractual interest on Convertible Debentures | $ 12,426 | $ 10,156 | $ 32,738 | $ 30,469 | |
Contractual interest on Notes | 21,403 | 15,235 | 51,872 | 45,704 | |
Amortization of debt discount on the Convertible Debentures | 3,034 | 2,802 | 8,916 | 8,235 | |
Credit facility and other interest expense | 893 | 726 | 2,343 | 2,174 | |
Total interest expense | $ 37,756 | $ 28,919 | $ 95,869 | $ 86,582 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||
Debt Instrument, Maturity Date | Jul. 15, 2027 | ||||
Debt Issuance Costs, Net | $ 6,800 |
Non-operating (loss) income (De
Non-operating (loss) income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Non-operating (loss) income, net [Abstract] | ||||
Gain (Loss) on Disposition of Business | $ (186) | $ 0 | $ 10,421 | $ 0 |
Unrealized Gain (Loss) on Derivatives | 0 | 1,440 | (893) | 2,411 |
Interest Income | 5,832 | 1,728 | 11,386 | 4,292 |
Other Nonoperating Income (Expense) | 595 | 94 | 630 | 1,389 |
Nonoperating (loss) Income | $ 6,241 | $ 3,262 | $ 21,544 | $ 8,092 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
excess tax benefit related to stock based compensation | $ 8.2 | |
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense from continuing operations | $ 34,645 | $ 34,692 | $ 102,554 | $ 104,227 |
Effective tax rate | 23.00% | 23.00% | 22.00% | 24.00% |