VeriSign (VRSN) 10-Q 26 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2018	Apr. 20, 2018
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, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		97,005,831

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,703,722	$ 465,851
Marketable securities	652,740	1,948,900
Other Assets, Current	52,066	31,402
Total current assets	2,408,528	2,446,153
Property and equipment, net	257,536	263,513
Goodwill	52,527	52,527
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	15,425	15,392
Deposits to acquire Intangible Assets	145,000	145,000
Other long-term assets	26,307	18,603
Total long-term assets	496,795	495,035
Total assets	2,905,323	2,941,188
Current liabilities:
Accounts payable and accrued liabilities	181,567	219,603
Deferred revenues	736,555	713,309
Convertible Debentures	630,824	627,616
Total current liabilities	1,548,946	1,560,528
Long-term deferred revenues	289,970	286,097
Senior Notes	1,783,159	1,782,529
Deferred Tax Liabilities, Net	214,400	444,108
Other long-term liabilities	303,582	128,197
Total long-term liabilities	2,591,111	2,640,931
Total liabilities	4,140,057	4,201,459
Commitments and contingencies
Stockholders' deficit:
Preferred stock-par value $.001 per share	0	0
Common stock-par value $.001 per share	326	325
Additional paid-in capital	16,305,653	16,437,135
Accumulated deficit	(17,538,015)	(17,694,790)
Accumulated other comprehensive loss	(2,698)	(2,941)
Total stockholders' deficit	(1,234,734)	(1,260,271)
Total liabilities and stockholders' deficit	$ 2,905,323	$ 2,941,188

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2018	Dec. 31, 2017
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	325,956	325,218
Common stock, outstanding shares	97,005	97,591

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues	$ 299,288	$ 288,614
Costs and expenses:
Cost of revenues	48,152	50,669
Sales and marketing	17,275	18,322
Research and development	15,375	13,344
General and administrative	33,067	31,008
Total costs and expenses	113,869	113,343
Operating income	185,419	175,271
Interest expense	(40,788)	(29,023)
Non-operating income (loss), net	7,804	1,301
Income before income taxes	152,435	147,549
Income tax expense	(18,172)	(31,137)
Net Income	134,263	116,412
Other comprehensive income (loss)	243	346
Comprehensive Income	$ 134,506	$ 116,758
Basic income (loss) per share
Net Income	$ 1.38	$ 1.14
Diluted income (loss) per share
Net Income	$ 1.09	$ 0.94
Shares used to compute net income per share
Basic	97,250	102,467
Diluted	123,506	124,464

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 134,263	$ 116,412
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	12,117	13,102
Stock-based compensation	12,978	12,563
Amortization of Debt Issuance Costs and Discounts	3,918	3,493
Accretion (Amortization) of Discounts and Premiums, Investments	(4,128)	(1,764)
Other, net	87	328
Changes in operating assets and liabilities
Other assets	(987)	14,196
Accounts payable and accrued liabilities	(36,271)	(67,608)
Deferred revenues	27,120	36,689
Deferred Income Taxes	(59,108)	20,775
Net cash provided by operating activities	89,989	148,186
Net Cash Provided by (Used in) Investing Activities [Abstract]
Proceeds from maturities and sales of marketable securities	1,931,930	1,049,795
Purchases of marketable securities	(631,456)	(813,459)
Purchases of property and equipment	(7,662)	(9,654)
Other investing activities	(160)	11,748
Net cash used in investing activities	1,292,652	238,430
Cash flows from financing activities:
Proceeds from employee stock purchase plans	7,811	7,997
Repurchases of common stock	(152,741)	(173,048)
Net cash used in financing activities	(144,930)	(165,051)
Effect of exchange rate changes on cash and cash equivalents	167	738
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	1,237,878	222,303
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	475,139	241,581
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period	1,713,017	463,884
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized interest	43,326	28,189
Cash paid for income taxes, net of refunds received	$ 72,959	$ 17,861

Basis Of Presentation

Basis Of Presentation	3 Months Ended
	Mar. 31, 2018
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 2017 Annual Report on Form 10-K (the “ 2017 Form 10-K”) filed with the SEC on February 16, 2018. 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, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , and several related amendments, issued by the Financial Accounting Standards Board (“FASB”). ASU 2014-09 replaces the previous numerous and disparate revenue recognition guidance, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The adoption of ASU 2014-09 did not have any impact on our revenue recognition, but did result in a change in the accounting for costs incurred to obtain a contract. Pursuant to the new guidance, the Company will recognize the fees that it pays to ICANN for each annual increment of . com domain name registrations and renewals, as an asset which will be amortized on a straight-line basis over the related domain name term. This change was adopted using the modified retrospective method. As a result, the Company recorded current and long-term assets of $ 19.7 million and $ 7.6 million , respectively, a deferred tax liability of $ 4.8 million and a decrease to the opening balance of accumulated deficit of $ 22.5 million . Effective January 1, 2018, the Company adopted ASU 2016-18, Restricted Cash , issued by the FASB. ASU 2016-18 requires restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts set forth on the statement of cash flows instead of presenting changes in restricted cash in cash flows from investing activities. As a result of the adoption, the changes in restricted cash are included with cash and cash equivalents on the statement of cash flows for both periods presented. The change in the amounts presented for the prior period was not significant. Recent Accounting Pronouncements 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. Based on its current portfolio of leases, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

Revenue (Notes)

Revenue (Notes)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Revenue from Contract with Customer [Table Text Block]	Revenue Revenues are recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including Canada, Australia, and Japan. The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended March 31, 2018 2017 (In thousands) U.S. $ 177,542 $ 173,082 EMEA 53,417 52,727 China 25,858 27,453 Other 42,471 35,352 Total revenues $ 299,288 $ 288,614 Revenues for the Company’s Registry Services business are attributed to the country of domicile and the respective regions in which registrars are located, however, this may differ from the regions where the registrars operate or where registrants are located. Revenue for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenue for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. Registry Services Registry Services revenues primarily arise from fixed fees charged to registrars for the initial registration or renewal of .com , .net , and other domain names. Fees for domain name registrations and renewals are generally due at the time of registration or renewal. Domain name registration terms range from one year up to ten years. Most customers either maintain a deposit with Verisign or provide an irrevocable letter of credit in excess of the amounts owed. New customers are subjected to a credit review process that evaluates the customer’s financial condition and, ultimately, their ability to pay. Verisign also offers promotional marketing programs to its registrars based upon market conditions and the business environment in which the registrars operate. Amounts payable to these registrars for such promotional marketing programs are usually recorded as a reduction of revenue. If Verisign obtains an identifiable benefit separate from the services it provides to the registrars, then amounts payable up to the fair value of the benefit received are recorded as advertising expenses and the excess, if any, is recorded as a reduction of revenue. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Each domain name registration or renewal is considered a separate optional purchase and represents a single performance obligation, which is to allow its registration and maintain that registration (by allowing updates, DNS resolution and Whois services) through the registration term. These services are provided continuously throughout each registration term, and as such, revenues from the initial registration or renewal of domain names are deferred and recognized ratably over the registration term. Fees for renewals and advance extensions to the existing term are deferred until the new incremental period commences. These fees are then recognized ratably over the renewal term. Security Services Following the revenue recognition criteria above, revenues from Security Services are usually deferred and recognized over the service term, generally one to two years. These revenues are not significant in relation to our consolidated revenues. Deferred Revenues As payment for domain name registrations and renewals are due in advance of our performance, we record these amounts as deferred revenue. The increase in the deferred revenue balance for the three months ended March 31, 2018 is primarily driven by cash payments received or due for domain name registrations and renewals, offset by $ 269.1 million of revenues recognized that were included in the deferred revenue balance at the beginning of the period. The balance of deferred revenue as of March 31, 2018 represents our aggregate remaining performance obligations. Amounts included in current deferred revenue are all expected to be recognized in revenue within 12 months, while long-term deferred revenue amounts will be recognized in revenue over several years and in some cases up to ten years. Historically, we have experienced higher domain name growth in the first quarter of the year compared to other quarters. Our quarterly revenue does not reflect these seasonal patterns because the preponderance of our revenue for each quarterly period is provided by the ratable recognition of our deferred revenue balance. The effect of this seasonality has historically resulted in the largest amount of growth in our deferred revenue balance occurring during the first quarter of the year compared to the other quarters. Costs Incurred to Obtain a Contract As discussed above, we recognize the fees that we pay to ICANN for each annual increment of domain name registrations and renewals, as an asset which will be amortized on a straight-line basis over the related registration term. These assets are included in Other current assets and Other long-term assets on the condensed consolidated balance sheet. Practical Expedients and Exemptions We recognize sales commissions for our Security Services contracts as expense when incurred because the amortization period for the majority of commissions would have been one year or less. These costs are not material for any period presented and are recorded within sales and marketing expenses.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2018
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 and the fair value categorization of the financial instruments measured at fair value on a recurring basis: March 31, December 31, 2018 2017 (In thousands) Cash $ 51,876 $ 135,092 Time deposits 5,759 3,682 Money market funds (Level 1) 1,031,051 116,068 Debt securities issued by the U.S. Treasury (Level 1) 1,277,071 2,169,197 Total $ 2,365,757 $ 2,424,039 Cash and cash equivalents $ 1,703,722 $ 465,851 Restricted cash (included in Other long-term assets) 9,295 9,288 Total Cash, cash equivalents, and restricted cash 1,713,017 475,139 Marketable Securities 652,740 1,948,900 Total $ 2,365,757 $ 2,424,039 The fair value of the debt securities held as of March 31, 2018 was $1.3 billion , including less than $0.1 million of gross and net unrealized gains. All of the debt securities held as of March 31, 2018 are scheduled to mature in less than one year. The higher Cash and cash equivalents balance and lower Marketable securities balance at March 31, 2018 reflects the short-term liquidity needed to settle the principal amount of the Subordinated Convertible Debentures in cash, upon redemption on May 1, 2018, as previously disclosed. 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 all of these financial instruments are classified as Level 1 in the fair value hierarchy. The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of March 31, 2018 , the carrying value of these financial instruments approximated their fair value. The fair value of the Company’s Subordinated Convertible Debentures was $4.3 billion as of March 31, 2018 . 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 $751.9 million , $509.3 million , and $527.3 million , respectively, as of March 31, 2018 . 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, 2018
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, 2018 2017 (In thousands) Prepaid registry fees $ 20,450 $ — Prepaid expenses 17,296 15,787 Accounts receivable, net 6,117 5,111 Income taxes receivable 3,996 6,347 Other 4,207 4,157 Total other current assets $ 52,066 $ 31,402 Other Long-Term Assets Other long-term assets consist of the following: March 31, December 31, 2018 2017 (In thousands) Prepaid registry fees $ 7,730 $ — Restricted cash 9,295 9,288 Other tax receivable 5,673 5,673 Other 3,609 3,642 Total other long-term assets $ 26,307 $ 18,603 The current and long-term prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual increment of . com domain name registrations and renewals which are capitalized and amortized over the domain name registration term, upon adoption of ASU 2014-09 as discussed in Note 1. The amount of prepaid registry fees as of March 31, 2018 reflects amortization of $8.1 million during the three months ended March 31, 2018 which was recorded in Cost of Revenues. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: March 31, December 31, 2018 2017 (In thousands) Accounts payable $ 8,921 $ 20,923 Accrued employee compensation 25,935 51,481 Customer deposits, net 58,190 63,617 Interest payable 40,895 47,357 Income taxes payable and other tax liabilities 16,119 13,477 Other accrued liabilities 31,507 22,748 Total accounts payable and accrued liabilities $ 181,567 $ 219,603 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, 2017 , was paid during the three months ended March 31, 2018 . 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 as of December 31, 2017 primarily consisted of foreign income taxes payable, which were paid during the three months ended March 31, 2018. Income taxes payable and other tax liabilities as of March 31, 2018 includes the current portion of taxes payable on accumulated foreign earnings triggered by the 2017 Tax Cuts and Jobs Act (“Tax Act”), which was included in Deferred tax liabilities as of December 31, 2017.

Stockholders' Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Stockholders' (Deficit) Equity	Stockholders’ Deficit On February 8, 2018, the Company’s Board of Directors authorized the repurchase of approximately $ 585.8 million of its common stock, in addition to the $ 414.2 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 made through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. During the three months ended March 31, 2018 the Company repurchased 1.1 million shares of its common stock at an average stock price of $114.81 . The aggregate cost of the repurchases in the three months ended March 31, 2018 was $124.9 million . As of March 31, 2018 , $938.3 million remained available for further repurchases under the share repurchase program. During the three months ended March 31, 2018 , the Company placed 0.2 million shares, at an average stock price of $117.89 , and for an aggregate cost of $27.8 million , into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”). Since inception the Company has repurchased 229.0 million shares of its common stock for an aggregate cost of $8.9 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, 2018
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 2018 2017 (In thousands) Weighted-average shares of common stock outstanding 97,250 102,467 Weighted-average potential shares of common stock outstanding: Conversion spread related to Subordinated Convertible Debentures 25,579 21,327 Unvested RSUs and ESPP 677 670 Shares used to compute diluted earnings per share 123,506 124,464 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, 2018
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 2018 2017 (In thousands) Cost of revenues $ 1,609 $ 1,735 Sales and marketing 1,448 1,429 Research and development 1,721 1,496 General and administrative 8,200 7,903 Total stock-based compensation expense $ 12,978 $ 12,563 The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended 2018 2017 (In thousands) RSUs $ 9,287 $ 9,154 Performance-based RSUs 3,113 3,088 ESPP 1,049 981 Capitalization (included in Property and equipment, net) (471 ) (660 ) Total stock-based compensation expense $ 12,978 $ 12,563

Interest Expense

Interest Expense	3 Months Ended
	Mar. 31, 2018
Interest Expense [Abstract]
Interest Expense	Interest Expense The following table presents the components of the Company’s interest expense: Three Months Ended 2018 2017 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 14,948 $ 10,156 Contractual interest on Senior Notes 21,766 15,235 Amortization of debt discount on Subordinated Convertible Debentures 3,161 2,911 Amortization of debt issuance costs and other interest expense 913 721 Total interest expense $ 40,788 $ 29,023 On February 15, 2018, the Company called for the redemption of all of the outstanding Subordinated Convertible Debentures. The debentures will be redeemed on May 1, 2018 at a redemption price equal to 100% of the principal, plus accrued but unpaid interest up to, but not including, the redemption date. The Subordinated Convertible Debentures called for redemption may be converted at any time before the close of business on Monday, April 30, 2018. If holders elect to convert their debentures, the Company will settle the principal value, up to $1.25 billion , in cash, and the remaining value through the issuance of shares of the Company’s stock. In the second quarter of 2018, the Company will recognize any gain or loss upon extinguishment for the difference between the carrying value and the fair value of the liability component of the Subordinated Convertible Debentures on the redemption date.

Non-operating (loss) income

Non-operating (loss) income	3 Months Ended
	Mar. 31, 2018
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 2018 2017 (In thousands) Interest income $ 7,489 $ 2,245 Other, net 315 (944 ) Total non-operating income, net $ 7,804 $ 1,301

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table presents income tax expense and the effective tax rate: Three Months Ended 2018 2017 (Dollars in thousands) Income tax expense $ 18,172 $ 31,137 Effective tax rate 12 % 21 % The effective tax rate for the three months ended March 31, 2018 was lower than the statutory federal rate of 21% primarily due to foreign income taxed at lower rates, $ 12.1 million of tax benefits recognized related to changes to provisional amounts previously recognized for the impact of the Tax Act, and $ 5.5 million of excess tax benefits related to stock-based compensation, partially offset by state income taxes. The effective tax rate for the three months ended March 31, 2017 was lower than the statutory federal rate of 35% primarily due to tax benefits from foreign income taxed at lower rates and $ 6.2 million of excess tax benefits related to stock-based compensation, partially offset by state income taxes. The Tax Act was enacted on December 22, 2017, most provisions of which became effective starting in 2018. The Company recorded provisional amounts of deferred taxes for the impact of various parts of the Tax Act in 2017. These provisional amounts were adjusted in the three months ended March 31, 2018, primarily due to new IRS guidance, resulting in an income tax benefit of $ 12.1 million , and a reduction in the amount of foreign tax credit carryforwards reported as of December 31, 2017 to $ 67.9 million . The Company has not completed its accounting for the tax effects of the enactment of the Tax Act. Specifically, the amounts recorded for the U.S. tax on accumulated foreign earnings, net of foreign tax credits, the amounts recorded for foreign tax credits related to the foreign withholding tax on unremitted foreign earnings, and the state income tax effects of these items are provisional amounts based on the Company’s estimates. The Company expects to complete the accounting for these impacts of the Tax Act in the fourth quarter of 2018 as it finalizes its cumulative earnings and profits of its foreign subsidiaries and receives additional guidance from the IRS pertaining to the Tax Act. The impacts of additional guidance and changes in estimates related to the effects of the Tax Act, if any, will be recorded in the period the additional guidance or information is available. As a result of the Tax Act, the Company no longer intends to indefinitely reinvest the earnings of its foreign subsidiaries offshore, and accordingly, during the three months ended March 31, 2018 the Company completed the previously disclosed repatriation of $ 1.15 billion of cash held by foreign subsidiaries, net of $ 60.7 million of foreign withholding taxes which was recorded in deferred tax liabilities in 2017. The Company’s deferred tax liabilities as of March 31, 2018 reflect the reclassification of the $ 93.6 million noncurrent liability for U.S. income taxes on accumulated foreign earnings, net of applicable foreign tax credits, to Other long-term tax liabilities and the reclassification of the $ 8.1 million current portion of the liability to Accounts payable and accrued liabilities. Other long-term tax liabilities as of March 31, 2018 also reflects the reclassification of deferred tax assets related to tax credits and loss carryforwards which are no longer available to offset unrecognized tax benefits.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Disaggregation of Revenue [Table Text Block]	The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended March 31, 2018 2017 (In thousands) U.S. $ 177,542 $ 173,082 EMEA 53,417 52,727 China 25,858 27,453 Other 42,471 35,352 Total revenues $ 299,288 $ 288,614

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
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 and the fair value categorization of the financial instruments measured at fair value on a recurring basis: March 31, December 31, 2018 2017 (In thousands) Cash $ 51,876 $ 135,092 Time deposits 5,759 3,682 Money market funds (Level 1) 1,031,051 116,068 Debt securities issued by the U.S. Treasury (Level 1) 1,277,071 2,169,197 Total $ 2,365,757 $ 2,424,039 Cash and cash equivalents $ 1,703,722 $ 465,851 Restricted cash (included in Other long-term assets) 9,295 9,288 Total Cash, cash equivalents, and restricted cash 1,713,017 475,139 Marketable Securities 652,740 1,948,900 Total $ 2,365,757 $ 2,424,039

Other Balance Sheet Items (Tabl

Other Balance Sheet Items (Tables)	3 Months Ended
	Mar. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Other Current Assets	Other current assets consist of the following: March 31, December 31, 2018 2017 (In thousands) Prepaid registry fees $ 20,450 $ — Prepaid expenses 17,296 15,787 Accounts receivable, net 6,117 5,111 Income taxes receivable 3,996 6,347 Other 4,207 4,157 Total other current assets $ 52,066 $ 31,402
Schedule of Other Assets, Noncurrent [Table Text Block]	Other long-term assets consist of the following: March 31, December 31, 2018 2017 (In thousands) Prepaid registry fees $ 7,730 $ — Restricted cash 9,295 9,288 Other tax receivable 5,673 5,673 Other 3,609 3,642 Total other long-term assets $ 26,307 $ 18,603
Components Of Accounts Payable And Accrued Liabilities	Accounts payable and accrued liabilities consist of the following: March 31, December 31, 2018 2017 (In thousands) Accounts payable $ 8,921 $ 20,923 Accrued employee compensation 25,935 51,481 Customer deposits, net 58,190 63,617 Interest payable 40,895 47,357 Income taxes payable and other tax liabilities 16,119 13,477 Other accrued liabilities 31,507 22,748 Total accounts payable and accrued liabilities $ 181,567 $ 219,603

Calculation Of Net Income Per19

Calculation Of Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
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 2018 2017 (In thousands) Weighted-average shares of common stock outstanding 97,250 102,467 Weighted-average potential shares of common stock outstanding: Conversion spread related to Subordinated Convertible Debentures 25,579 21,327 Unvested RSUs and ESPP 677 670 Shares used to compute diluted earnings per share 123,506 124,464

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Share-based Compensation [Abstract]
Classification Of Stock-Based Compensation	The following table presents the classification of stock-based compensation: Three Months Ended 2018 2017 (In thousands) Cost of revenues $ 1,609 $ 1,735 Sales and marketing 1,448 1,429 Research and development 1,721 1,496 General and administrative 8,200 7,903 Total stock-based compensation expense $ 12,978 $ 12,563
Nature Of Total Stock-Based Compensation	The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended 2018 2017 (In thousands) RSUs $ 9,287 $ 9,154 Performance-based RSUs 3,113 3,088 ESPP 1,049 981 Capitalization (included in Property and equipment, net) (471 ) (660 ) Total stock-based compensation expense $ 12,978 $ 12,563

Interest Expense (Tables)

Interest Expense (Tables)	3 Months Ended
	Mar. 31, 2018
Interest Expense [Abstract]
Interest Expense Schedule	The following table presents the components of the Company’s interest expense: Three Months Ended 2018 2017 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 14,948 $ 10,156 Contractual interest on Senior Notes 21,766 15,235 Amortization of debt discount on Subordinated Convertible Debentures 3,161 2,911 Amortization of debt issuance costs and other interest expense 913 721 Total interest expense $ 40,788 $ 29,023

Non-operating (loss) income (Ta

Non-operating (loss) income (Tables)	3 Months Ended
	Mar. 31, 2018
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 2018 2017 (In thousands) Interest income $ 7,489 $ 2,245 Other, net 315 (944 ) Total non-operating income, net $ 7,804 $ 1,301

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2018
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 2018 2017 (Dollars in thousands) Income tax expense $ 18,172 $ 31,137 Effective tax rate 12 % 21 %

Basis Of Presentation Basis of

Basis Of Presentation Basis of Presentation (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Adoption of New Accounting Standards [Abstract]
adjustments to current assets	$ 19.7
adjustments to non current assets	7.6
adjustments to deferred tax liability	4.8
adjustments to accumulated deficit	$ 22.5

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 299,288,000	$ 288,614,000
US [Member]
Disaggregation of Revenue [Line Items]
Revenues	177,542,000	173,082,000
EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenues	53,417,000	52,727,000
China [Member]
Disaggregation of Revenue [Line Items]
Revenues	25,858,000	27,453,000
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 42,471,000	$ 35,352,000

Revenue Revenue (Narrative deta

Revenue Revenue (Narrative detail) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Deferred Revenue, Revenue Recognized	$ 269.1

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Cash	$ 51,876	$ 135,092
Time deposits	5,759	3,682
Total	2,365,757	2,424,039
Included in Cash and cash equivalents	1,703,722	465,851
Included in Other assets (Restricted cash)	9,295	9,288
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	1,713,017	475,139	$ 463,884	$ 241,581
Included in Marketable securities	652,740	1,948,900
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Money Market Funds (level 1)	1,031,051	116,068
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	$ 1,277,071	$ 2,169,197

Financial Instruments Financial

Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Convertible Debt, Fair Value Disclosures	$ 4,300,000
Debt securities gross unrealized gains	100
Debt instrument fair value senior notes 2023	751,900
Debt instrument fair value senior notes 2025	509,300
Debt instrument fair value senior notes 2027	527,300
Fair Value, Inputs, Level 1 [Member]
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	$ 1,277,071	$ 2,169,197

Other Balance Sheet Items (Othe

Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Prepaid registry fees, current	$ 20,450
Prepaid expenses	17,296	$ 15,787
Accounts Receivable, Net	6,117	5,111
Income Taxes Receivable, Current	3,996	6,347
Other Assets, Miscellaneous, Current	4,207	4,157
Other Assets, Current	$ 52,066	$ 31,402

Other Balance Sheet Items Other

Other Balance Sheet Items Other Balance Sheet Items (Other long-term assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Prepaid registry fees, noncurent	$ 7,730	$ 0
Restricted Cash and Investments, Noncurrent	9,295	9,288
Nontrade Receivables, Noncurrent	5,673	5,673
Other Assets, Miscellaneous, Noncurrent	3,609	3,642
Other Assets, Noncurrent	$ 26,307	$ 18,603

Other Balance Sheet Items (Comp

Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Accounts payable	$ 8,921	$ 20,923
Accrued employee compensation	25,935	51,481
Deposits, net	58,190	63,617
Interest Payable, Current	40,895	47,357
Taxes Payable, Current	16,119	13,477
Other accrued liabilities	31,507	22,748
Total accounts payable and accrued liabilities	$ 181,567	$ 219,603

Other Balance Sheet Items Oth32

Other Balance Sheet Items Other Balance Sheet Items (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Other Balance Sheet Items (narrative) [Abstract]
Amortization of Other Deferred Charges	$ 8.1

Stockholders' Deficit (Narrativ

Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Feb. 08, 2018
Treasury Stock Repurchase Programs [Line Items]
Additional share repurchase amount authorized	$ 585.8
Remaining common stock available for repurchase	$ 938.3	$ 414.2
Common stock, held in treasury	229
Common stock repurchased	$ 8,900
Share Buyback Program [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock authorized to repurchase		$ 1,000
Common stock repurchase, share	1.1
Average stock price	$ 114.81
Aggregate cost of share	$ 124.9
Restricted Stock Units [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock repurchase, share	0.2
Average stock price	$ 117.89
Aggregate cost of share	$ 27.8

Calculation Of Net Income Per34

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, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Weighted-average number of common shares outstanding	97,250	102,467
Conversion spread related to Convertible Debentures	25,579	21,327
Unvested RSUs and ESPP	677	670
Shares used to compute diluted net income per share	123,506	124,464

Stock-Based Compensation (Class

Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 12,978	$ 12,563
Cost Of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,609	1,735
Sales And Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,448	1,429
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,721	1,496
General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 8,200	$ 7,903

Stock-Based Compensation (Natur

Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ (471)	$ (660)
Stock-based compensation	12,978	12,563
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	9,287	9,154
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	3,113	3,088
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,049	$ 981

Interest Expense (Interest Expe

Interest Expense (Interest Expense Schedule) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest Expense [Abstract]
Contractual interest on Convertible Debentures	$ 14,948	$ 10,156
Contractual interest on Notes	21,766	15,235
Amortization of debt discount on the Convertible Debentures	3,161	2,911
Credit facility and other interest expense	913	721
Total interest expense	$ 40,788	$ 29,023

Interest Expense Interest expen

Interest Expense Interest expense (Narrative) (Details) $ in Thousands	Mar. 31, 2018USD ($)
Debt Disclosure [Abstract]
Debt Instrument, Face Amount	$ 1,250,000

Non-operating (loss) income (De

Non-operating (loss) income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Non-operating (loss) income, net [Abstract]
Interest Income	$ 7,489	$ 2,245
Other Nonoperating Income (Expense)	315	(944)
Nonoperating (loss) Income	$ 7,804	$ 1,301

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	12.00%	21.00%
income tax benefit related to tax act	$ 12.1
excess tax benefit related to stock based compensation	$ 5.5	$ 6.2
Statutory federal rate	21.00%	35.00%
Tax Credit Carryforward, Amount			$ 67.9
Foreign Earnings Repatriated	$ 1,150
Deferred Tax Liabilities, Undistributed Foreign Earnings	60.7
Deferred Tax Liabilities, Gross, Noncurrent	93.6
Liabilities, Other than Long-term Debt, Noncurrent	$ 8.1

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, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense from continuing operations	$ 18,172	$ 31,137
Effective tax rate	12.00%	21.00%