Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 119,714,949 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 357,415 | $ 465,851 |
Marketable securities | 912,254 | 1,948,900 |
Other current assets | 47,365 | 31,402 |
Total current assets | 1,317,034 | 2,446,153 |
Property and equipment, net | 253,905 | 263,513 |
Goodwill | 52,527 | 52,527 |
Long-term deferred tax assets | 104,992 | 15,392 |
Deposits Assets, Noncurrent | 145,000 | 145,000 |
Other long-term assets | 41,046 | 18,603 |
Total long-term assets | 597,470 | 495,035 |
Total assets | 1,914,504 | 2,941,188 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 215,208 | 219,603 |
Deferred revenues | 732,382 | 713,309 |
Convertible Debt, Current | 0 | 627,616 |
Total current liabilities | 947,590 | 1,560,528 |
Long-term deferred revenues | 285,720 | 286,097 |
Senior Notes | 1,785,047 | 1,782,529 |
Deferred Tax Liabilities, Net, Noncurrent | 134 | 444,108 |
Other long-term tax liabilities | 281,487 | 128,197 |
Total long-term liabilities | 2,352,388 | 2,640,931 |
Total liabilities | 3,299,978 | 4,201,459 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock | 0 | 0 |
Common stock | 352 | 325 |
Additional paid-in capital | 15,706,774 | 16,437,135 |
Accumulated deficit | (17,089,789) | (17,694,790) |
Accumulated other comprehensive loss | (2,811) | (2,941) |
Total stockholders' deficit | (1,385,474) | (1,260,271) |
Total liabilities and stockholders' deficit | $ 1,914,504 | $ 2,941,188 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 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 | 352,325 | 325,218 |
Common stock, outstanding shares | 120,037 | 97,591 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 1,214,969 | $ 1,165,095 | $ 1,142,167 |
Costs and expenses: | |||
Cost of revenues | 192,134 | 193,326 | 198,242 |
Sales and marketing | 64,891 | 81,951 | 80,250 |
Research and development | 57,884 | 52,342 | 59,100 |
General and administrative | 132,668 | 129,754 | 118,003 |
Total costs and expenses | 447,577 | 457,373 | 455,595 |
Operating income | 767,392 | 707,722 | 686,572 |
Interest expense | (114,845) | (136,336) | (115,564) |
Non-operating income, net | 76,969 | 27,626 | 10,165 |
Income from continuing operations before income taxes | 729,516 | 599,012 | 581,173 |
Income tax (expense) benefit | (147,027) | (141,764) | (140,528) |
Net income | 582,489 | 457,248 | 440,645 |
Other comprehensive income (loss) | 130 | 512 | 540 |
Comprehensive income | $ 582,619 | $ 457,760 | $ 441,185 |
Earnings per share | |||
Earnings Per Share, Basic | $ 5.13 | $ 4.56 | $ 4.12 |
Earnings Per Share, Diluted | $ 4.75 | $ 3.68 | $ 3.42 |
Shares used to compute net income per share | |||
Basic | 113,452 | 100,325 | 107,001 |
Diluted | 122,661 | 124,180 | 128,833 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total [Member] |
Balance at Dec. 31, 2015 | $ 323 | $ 17,558,822 | $ (18,625,599) | $ (3,993) | $ (1,070,447) | |
Balance, shares at Dec. 31, 2015 | 110,072 | |||||
Net income | $ 440,645 | 440,645 | 440,645 | |||
Other Comprehensive Income (Loss), Net of Tax | 540 | 540 | 540 | |||
Issuance of common stock under stock plans | $ 1 | 13,669 | 13,670 | |||
Issuance of common stock under stock plans, shares | 1,128 | |||||
Stock-based compensation | 52,430 | 52,430 | ||||
Net excess income tax benefits associated with stock-based compensation and other | 25,058 | 25,058 | ||||
Repurchase of common stock | (662,491) | (662,491) | ||||
Repurchase of common stock, shares | (8,109) | |||||
Balance at Dec. 31, 2016 | $ 324 | 16,987,488 | (18,184,954) | (3,453) | (1,200,595) | |
Balance, shares at Dec. 31, 2016 | 103,091 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2,544 | 32,916 | 35,460 | |||
Net income | 457,248 | 457,248 | 457,248 | |||
Other Comprehensive Income (Loss), Net of Tax | 512 | 512 | 512 | |||
Issuance of common stock under stock plans | $ 1 | 12,914 | 12,915 | |||
Issuance of common stock under stock plans, shares | 1,100 | |||||
Stock-based compensation | 55,362 | 55,362 | ||||
Repurchase of common stock | (621,173) | (621,173) | ||||
Repurchase of common stock, shares | (6,600) | |||||
Balance at Dec. 31, 2017 | $ (1,260,271) | $ 325 | 16,437,135 | (17,694,790) | (2,941) | (1,260,271) |
Balance, shares at Dec. 31, 2017 | 97,591 | 97,591 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 22,512 | 22,512 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 26,080 | 26,080 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 26 | |||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | (159,618) | (159,592) | ||||
Net income | $ 582,489 | 582,489 | 582,489 | |||
Other Comprehensive Income (Loss), Net of Tax | 130 | 130 | 130 | |||
Issuance of common stock under stock plans | $ 1 | 12,835 | 12,836 | |||
Issuance of common stock under stock plans, shares | 1,027 | |||||
Stock-based compensation | 54,574 | 54,574 | ||||
Repurchase of common stock | (638,152) | (638,152) | ||||
Repurchase of common stock, shares | (4,661) | |||||
Balance at Dec. 31, 2018 | $ (1,385,474) | $ 352 | $ 15,706,774 | $ (17,089,789) | $ (2,811) | $ (1,385,474) |
Balance, shares at Dec. 31, 2018 | 120,037 | 120,037 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 582,489 | $ 457,248 | $ 440,645 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property and equipment | 48,367 | 49,878 | 58,167 |
Stock-based compensation | 52,504 | 52,907 | 50,044 |
Gain on Disposition of Business | (54,840) | (10,421) | 0 |
Loss on Extinguishment of Debt | 6,554 | 0 | 0 |
contingent interest payment for debenture | 0 | (15,232) | (13,385) |
Amortization of Financing Costs and Discounts | 7,137 | 14,678 | 13,411 |
Investment Income, Amortization of Discount | (18,259) | (14,860) | (5,527) |
Other Operating Activities, Cash Flow Statement | 955 | 826 | (662) |
Changes in operating assets and liabilities | |||
Prepaid expenses and other assets | (1,041) | (13,775) | (8,109) |
Accounts payable and accrued liabilities | (2,130) | 15,483 | 40,244 |
Deferred revenues | 19,825 | 25,348 | 14,347 |
Net deferred income taxes and other long term tax liabilities | 54,124 | 113,131 | 87,614 |
Net Cash Provided by (Used in) Operating Activities | 697,767 | 702,761 | 693,007 |
Cash flows from investing activities: | |||
Proceeds from maturities and sales of marketable securities | 4,031,809 | 4,562,161 | 3,817,899 |
Purchases of marketable securities | (2,976,752) | (4,929,834) | (3,691,057) |
Proceeds from Divestiture of Businesses | 52,240 | 11,748 | 0 |
Purchases of property and equipment | (37,007) | (49,499) | (26,574) |
Payments to Acquire Intangible Assets | 0 | 0 | (143,000) |
Other investing activities | (160) | 0 | 0 |
Net cash provided by (used in) investing activities | 1,070,130 | (405,424) | (42,732) |
Cash flows from financing activities: | |||
Repayments of Subordinated Debt | (1,250,009) | 0 | 0 |
Proceeds from issuance of common stock from option exercises and employee stock purchase plans | 12,836 | 12,915 | 13,670 |
Repurchases of common stock | (638,152) | (621,173) | (662,491) |
Proceeds received from borrowing | 0 | 543,185 | 0 |
Net cash used in financing activities | (1,875,325) | (65,073) | (648,821) |
Effect of exchange rate changes on cash and cash equivalents | (958) | 1,294 | (501) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (108,386) | 233,558 | 953 |
Cash and cash equivalents at end of period | 357,415 | 465,851 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 366,753 | 475,139 | 241,581 |
Supplemental cash flow disclosures: | |||
Cash paid for interest, net of capitalized interest | 117,956 | 117,234 | 115,544 |
Cash paid for income taxes, net of refunds received | $ 84,906 | $ 28,294 | $ 14,303 |
Description Of Business And Sum
Description Of Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business VeriSign, Inc. (“Verisign” or “the Company”) was incorporated in Delaware on April 12, 1995. The Company has one reportable segment, Registry Services. The Company enables the security, stability, and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the . com and . net top-level domains, which support the majority of global e-commerce. As discussed further in Note 8 “Sale of Security Services Business”, the Company completed the sale of the rights, economic benefits, and obligations, in all customer contracts related to its Security Services business to NeuStar, Inc. (“Neustar”) on December 5, 2018. Basis of Presentation The accompanying consolidated financial statements of Verisign and its subsidiaries have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). All significant intercompany accounts and transactions have been eliminated. The preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. 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 it 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 recognizes the fees that it pays to ICANN for each annual increment of . com domain name registrations and renewals, as an asset which is 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. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements to Topic 842 Leases, which allows for an alternative transition approach, which will not require adjustments to comparative prior period amounts. This ASU became effective for the Company on January 1, 2019. The adoption of this standard will not have a material impact on the Company’s consolidated financial statements. Significant Accounting Policies Cash and Cash Equivalents Verisign considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include certain money market funds, debt securities and various deposit accounts. Verisign maintains its cash and cash equivalents with financial institutions that have investment grade ratings and, as part of its cash management process, performs periodic evaluations of the relative credit standing of these financial institutions. Marketable Securities Marketable securities primarily consist of debt securities issued by the U.S. Treasury. All marketable securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses, net of taxes, are reported as a component of Accumulated other comprehensive loss. The specific identification method is used to determine the cost basis of the marketable securities sold. The Company classifies its marketable securities as current based on their nature and availability for use in current operations. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of 35 to 47 years for buildings, 10 years for building improvements and three to five years for computer equipment, software, office equipment, and furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or associated lease terms. Capitalized Software Software included in property and equipment includes amounts paid for purchased software and development costs for internally developed software. The Company capitalized $ 14.7 million and $17.7 million of costs related to internally developed software during 2018 and 2017 , respectively. Goodwill and Other Long-lived Assets Goodwill represents the excess of purchase consideration over fair value of net assets of businesses acquired. The Company has only one reporting unit, namely Registry Services, which has a negative carrying value. Therefore, the goodwill is not subject to impairment. Long-lived assets, such as property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Such events or circumstances include, but are not limited to, a significant decrease in the fair value of the underlying business. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset, or asset group, to estimated undiscounted future cash flows expected to be generated by the asset, or asset group. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds its fair value. As of December 31, 2018, the Company’s assets include a deposit related to the purchase of the contractual rights to the . web gTLD. The amount paid to date has been recorded as a deposit until such time that the contractual rights are transferred to the Company. This asset would be tested for recoverability if the Company were to determine that it is no longer probable that the rights will be transferred. At the time of the transfer of the contractual rights, the Company will record the amount as an indefinite-lived intangible asset subject to review for impairment on an annual basis or more frequently if events or changes in circumstances indicate that an impairment is more likely than not. 3.25% Junior Subordinated Convertible Debentures Due 2037 (“Subordinated Convertible Debentures”) Upon issuance of the Subordinated Convertible Debentures, Verisign separated the liability (debt) and equity (conversion option) components in a manner that reflected the borrowing rate for a similar non-convertible debt. The liability component was recognized based on the fair value of a similar instrument without a conversion feature at issuance. The excess of the principal amount of the Subordinated Convertible Debentures over the liability component at issuance was the equity component or debt discount, which was recorded as Additional paid-in capital. The debt discount was amortized using the Company’s effective interest rate over the term of the Subordinated Convertible Debentures as a non-cash charge to interest expense. The Company settled all of the outstanding Subordinated Convertible Debentures during 2018. For further details, refer to Note 4 “Debt and Interest Expense”. Foreign Currency Remeasurement Verisign conducts business in several different countries and transacts in multiple currencies. The functional currency for all of Verisign’s international subsidiaries is the U.S. Dollar. The Company’s subsidiaries’ financial statements are remeasured into U.S. Dollars using a combination of current and historical exchange rates and any remeasurement gains and losses are included in Non-operating income, net. Remeasurement gains and losses were not significant in each of the last three years. Verisign maintains a foreign currency risk management program designed to mitigate foreign exchange risks associated with the monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. The primary objective of this program is to minimize the gains and losses resulting from fluctuations in exchange rates. The Company does not enter into foreign currency transactions for trading or speculative purposes, nor does it hedge foreign currency exposures in a manner that entirely offsets the effects of changes in exchange rates. The program may entail the use of forward or option contracts, which are usually placed and adjusted monthly. These foreign currency forward contracts are derivatives and are recorded at fair market value. The Company records gains and losses on foreign currency forward contracts in Non-operating income, net. Gains and losses related to foreign currency forward contracts were not significant in each of the last three years. As of December 31, 2018 , Verisign held foreign currency forward contracts in notional amounts totaling $28.5 million to mitigate the impact of exchange rate fluctuations associated with certain assets and liabilities held in foreign currencies. Revenue Recognition 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. 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, Domain Name System (“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 were deferred and recognized over the service term, generally one to two years. On December 5, 2018, we completed the sale of the rights, economic benefits, and obligations, in all customer contracts related to our Security Services business. Revenues from the Security Services business were not significant in relation to our consolidated revenues. Costs Incurred to Obtain a Contract 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 Prior to the sale of the customer contracts of the Security Services business in December of 2018, we recognized sales commissions for 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 were not material for any period presented and were recorded within sales and marketing expenses. Advertising Expenses Advertising costs are expensed as incurred and are included in Sales and marketing expenses. Advertising expenses, including costs for advertising campaigns conducted jointly with our registrars were $15.2 million , $27.4 million , and $17.2 million in 2018 , 2017 , and 2016 , respectively. Income Taxes Verisign uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017, most provisions of which became effective in 2018. The Tax Act made substantial changes to U.S. taxation of corporations, including, lowering the U.S. federal corporate income tax rate from 35% to 21%, and instituting a territorial tax system, along with a one-time tax on accumulated foreign earnings. The effect on deferred tax assets and liabilities of a change in law or tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount whose realization is more likely than not. For every tax-paying component and within each tax jurisdiction, all deferred tax liabilities and assets are offset and presented as a single net noncurrent asset or liability. Among other changes, the Tax Act included a provision designed to currently tax global intangible low-taxed income (“GILTI”). The Company evaluated available accounting policy alternatives and elected to record the U.S. income tax effect of future GILTI inclusions in the period in which they arise. The Company’s income taxes payable is reduced by the tax benefits from restricted stock unit (“RSU”) vestings equal to the fair market value of the stock at the vesting date. If the income tax benefit at the exercise or vesting date differs from the income tax benefit recorded based on the grant date fair value of the RSUs, the excess or shortfall of the tax benefit is recognized within income tax expense. Verisign’s global operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes payable are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from U.S. federal, state, and international tax audits. The Company only recognizes tax positions taken or expected to be taken on its tax returns that are more likely than not to be sustained upon examination, and records a tax benefit amount that is more likely than not to be realized upon ultimate settlement with the taxing authority. The Company adjusts its estimate of unrecorded tax benefits in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a liability that is materially different from its estimate. The Company’s assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and character of future taxable income, such as income from operations or capital gains income. Actual operating results and the underlying amount and character of income in future years could render the Company’s current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause the Company’s actual income tax obligations to differ from its estimates, thus materially impacting its financial condition and results of operations. Stock-based Compensation The Company’s stock-based compensation consists of RSUs granted to employees and the employee stock purchase plan (“ESPP”). Stock-based compensation expense is typically recognized ratably over the requisite service period. Forfeitures of stock-based awards are recognized as they occur. The Company also grants RSUs which include performance conditions, and in some cases market conditions, to certain executives. The expense for these performance-based RSUs is recognized based on the probable outcome of the performance conditions. The expense recognized for awards with market conditions is based on the grant date fair value of the awards including the impact of the market conditions, using a Monte Carlo simulation model. The Company uses the Black-Scholes option pricing model to determine the fair value of its ESPP offerings. The determination of the fair value of stock-based payment awards using the Monte Carlo simulation model or the Black-Scholes option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. Earnings per Share The Company computes basic earnings per share by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share gives effect to dilutive potential common shares, including unvested RSUs, ESPP offerings and the conversion spread related to the Subordinated Convertible Debentures, prior to conversion on May 1, 2018, using the treasury stock method. Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The Company measures and reports certain financial assets and liabilities at fair value on a recurring basis, including its investments in money market funds classified as Cash and cash equivalents and marketable securities. Legal Proceedings Verisign is involved in various investigations, claims and lawsuits arising in the normal conduct of its business, none of which, in its opinion, will have a material adverse effect on its financial condition, results of operations, or cash flows. The Company cannot assure you that it will prevail in any litigation. Regardless of the outcome, any litigation may require the Company to incur significant litigation expense and may result in significant diversion of management attention. While certain legal proceedings and related indemnification obligations to which the Company is a party specify the amounts claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition, results of operations, or cash flows. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | 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: As of December 31, 2018 2017 (In thousands) Cash $ 37,190 $ 135,092 Time deposits 3,810 3,682 Money market funds (Level 1) 120,832 116,068 Debt securities issued by the U.S. Treasury (Level 1) 1,117,175 2,169,197 Total $ 1,279,007 $ 2,424,039 Cash and cash equivalents $ 357,415 $ 465,851 Restricted cash (included in Other long-term assets) 9,338 9,288 Total Cash, cash equivalents, and restricted cash 366,753 475,139 Marketable securities 912,254 1,948,900 Total $ 1,279,007 $ 2,424,039 The fair value of the debt securities held as of December 31, 2018 was $1.12 billion , including less than $ 0.1 million of gross and net unrealized losses. All of the debt securities held as of December 31, 2018 have contractual maturities of less than one year. The lower Cash and cash equivalents and Marketable securities balances at December 31, 2018 reflect the cash used to settle the principal amount of the Subordinated Convertible Debentures on May 1, 2018, as discussed in Note 4 “Debt and Interest Expense.” Fair Value Measurements The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are classified as Level 1 and are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices and are classified as Level 1. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. Debt securities purchased with original maturities less than three months are included in Cash and cash equivalents. As of December 31, 2018 , the Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable whose carrying values approximated their fair values. The fair values of the Company’s 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 $741.3 million , $502.2 million , and $524.2 million , respectively, as of December 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. As part of the settlement of the Subordinated Convertible Debentures in the second quarter of 2018, the Company estimated the fair value of the liability component of the debentures, based on the present value of the remaining contractual cash flows, using a discount rate of 8.42% (the estimated borrowing rate for similar non-convertible debt). The fair value of the liability component at the time of extinguishment was $651.3 million and was classified as Level 3. In connection with the sale of the customer contracts of the Security Services business, the Company estimated the fair value of the total consideration expected to be received based on the estimated probability and timing of customers consenting to assignment of their contracts to Neustar. This fair value measurement was classified as Level 3. |
Other Balance Sheet Items
Other Balance Sheet Items | 12 Months Ended |
Dec. 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: As of December 31, 2018 2017 (In thousands) Prepaid registry fees $ 20,696 $ — Prepaid expenses 14,109 15,787 Accounts receivable, net 6,029 5,111 Income taxes receivable 4,451 6,347 Other 2,080 4,157 Total other current assets $ 47,365 $ 31,402 Property and Equipment, Net The following table presents the detail of property and equipment, net: As of December 31, 2018 2017 (In thousands) Land $ 31,141 $ 31,141 Buildings and building improvements 247,870 246,654 Computer equipment and software 461,829 462,469 Capital work in progress 2,013 4,024 Office equipment and furniture 6,912 6,472 Leasehold improvements 1,403 1,403 Total cost 751,168 752,163 Less: accumulated depreciation (497,263 ) (488,650 ) Total property and equipment, net $ 253,905 $ 263,513 Substantially all of the Company’s property and equipment were held in the U.S. for both periods presented. Goodwill The following table presents the detail of goodwill: As of December 31, 2018 2017 (In thousands) Goodwill, gross $ 1,537,843 $ 1,537,843 Accumulated goodwill impairment (1,485,316 ) (1,485,316 ) Total goodwill $ 52,527 $ 52,527 There was no impairment of goodwill or other long-lived assets recognized in any of the periods presented. Deposits to Acquire Intangible Assets As of December 31, 2018, the Company has recorded $145.0 million for the future assignment to the Company of contractual rights to the .web gTLD, pending resolution of objections by other applicants, regulatory review, and approval from ICANN. Upon assignment of the contractual rights, the Company will record the total investment as an indefinite-lived intangible asset. Other Long-Term Assets Other long-term assets consist of the following: As of December 31, 2018 2017 (In thousands) Contingent consideration receivable $ 14,721 $ — Long-term prepaid registry fees 7,779 — Restricted cash 9,338 9,288 Other tax receivable 5,673 5,673 Other 3,535 3,642 Total other long-term assets $ 41,046 $ 18,603 The contingent consideration receivable in the table above relates to the estimated contingent consideration expected to be collected from Neustar after the first anniversary of closing as part of the sale of customer contracts of the Security Services business. The 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 deferred and amortized over the domain name registration term, upon adoption of ASU 2014-09 as discussed in Note 1, “Description of Business and Summary of Significant Accounting Policies”. The amount of prepaid registry fees as of December 31, 2018 reflects amortization of $32.9 million during 2018 which was recorded in Cost of Revenues. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: As of December 31, 2018 2017 (In thousands) Accounts payable $ 10,445 $ 10,519 Accrued employee compensation 54,746 51,481 Customer deposits, net 57,025 63,617 Interest Payable 24,318 47,357 Accrued registry fees 11,029 10,404 Payables to buyer 9,875 — Taxes payable and other tax liabilities 18,961 13,477 Other accrued liabilities 28,809 22,748 Total accounts payable and accrued liabilities $ 215,208 $ 219,603 Payables to buyer in the table above relate to amounts due to Neustar for estimated collections from Security Services customers of any billings after the closing date and until the customer contracts are assigned to Neustar. |
Debt And Interest Expense
Debt And Interest Expense | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt And Interest Expense | Debt and Interest Expense Senior Notes As of December 31, 2018, the Company had senior notes outstanding of $1.79 billion , net of unamortized issuance costs. All of the outstanding senior notes were issued at par and are senior unsecured obligations of the Company. Interest is payable on each of the senior notes semi-annually. Each of the senior notes issuances is redeemable, in whole or in part, at the Company’s option at times and redemption prices specified in the indentures. The following table summarizes information related to our Senior notes (in thousands, except interest rates): As of December 31, 2018 2017 Issuance Date Maturity Date Interest Rate Principal Senior notes due 2023 April 16, 2013 May 1, 2023 4.625 % $ 750,000 $ 750,000 Senior notes due 2025 March 27, 2015 April 1, 2025 5.250 % 500,000 500,000 Senior notes due 2027 July 5, 2017 July 15, 2027 4.750 % 550,000 550,000 Unamortized issuance costs (14,953 ) (17,471 ) Total senior notes $ 1,785,047 $ 1,782,529 The indenture governing the 2023 Senior Notes contains covenants that limit the ability of the Company and/or its restricted subsidiaries, under certain circumstances, to, among other things: (i) pay dividends or make distributions on, or redeem or repurchase, its capital stock; (ii) make certain investments; (iii) create liens on assets; (iv) enter into sale/leaseback transactions and (v) merge or consolidate or sell all or substantially all of its assets. These covenants are subject to a number of important limitations and exceptions. The Indenture also provides for events of default, which, if any of them occurs, may permit or, in certain circumstances, require the principal, premium, if any, accrued and unpaid interest and any other monetary obligations on all the then outstanding Notes to be due and payable immediately. The Company has remained in compliance with these covenants and no events of default have occurred over the term of the Notes. 2015 Credit Facility On March 31, 2015, the Company entered into a credit agreement for a $ 200.0 million committed senior unsecured revolving credit facility (the “2015 Credit Facility”). The 2015 Credit Facility includes financial covenants requiring that the Company’s interest coverage ratio not be less than 3.0 to 1.0 for any period of four consecutive quarters and the Company’s leverage ratio not exceed 2.5 to 1.0. As of December 31, 2018 , there were no borrowings outstanding under the facility and the Company was in compliance with the financial covenants. The 2015 Credit Facility expires on April 1, 2020 at which time any outstanding borrowings are due. Verisign may from time to time request lenders to agree on a discretionary basis to increase the commitment amount by up to an aggregate of $ 150.0 million. Subordinated Convertible Debentures In August 2007, Verisign issued $1.25 billion principal amount of 3.25% subordinated convertible debentures due August 15, 2037, in a private offering. At issuance, the Company calculated the carrying value of the liability component as the present value of its cash flows using a borrowing rate for similar non-convertible debt with no contingent payment options, adjusted for the fair value of the contingent interest feature. The table below presents the carrying amounts of the liability and equity components as of December 31, 2017. Debt discount upon issuance (net of issuance costs of $14,449) $ 686,221 Deferred taxes associated with the debt discount upon issuance (267,225 ) Carrying amount of equity component $ 418,996 Principal amount of Subordinated Convertible Debentures $ 1,250,000 Unamortized discount of liability component (612,303 ) Unamortized debt issuance costs associated with the liability component (10,081 ) Carrying amount of liability component $ 627,616 On February 15, 2018, the Company called for the redemption of all the outstanding Subordinated Convertible Debentures with a redemption date of May 1, 2018. Substantially all of the holders elected to convert their debentures, and on May 1, 2018, the Company settled the $1.25 billion principal value in cash, and issued 26.1 million shares of common stock for the $3.17 billion excess of the conversion value over the principal amount. Of the total consideration transferred to settle the debentures, $651.3 million was allocated to the liability component, and the remaining $3.77 billion was allocated to the equity component. The fair value of the liability component exceeded the $644.7 million carrying value, and therefore, resulted in a loss of $6.6 million upon extinguishment of the Subordinated Convertible Debentures in the second quarter of 2018. The following table presents the components of the Company’s interest expense: Year Ended December 31, 2018 2017 2016 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 20,015 $ 47,432 $ 40,625 Contractual interest on Senior Notes 87,063 73,638 60,938 Amortization of debt discount on the Subordinated Convertible Debentures 4,236 12,012 11,094 Amortization of debt issuance costs and other interest expense 3,531 3,254 2,907 Total interest expense $ 114,845 $ 136,336 $ 115,564 |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Treasury Stock Treasury stock is accounted for under the cost method. Treasury stock includes shares repurchased under stock repurchase programs and shares withheld in lieu of minimum tax withholdings due upon vesting of RSUs. On February 8, 2018 , the Company’s Board of Directors (“Board”) authorized the repurchase of its common stock in the amount of approximately $585.8 million , 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 under the share repurchase program. The share repurchase program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. As of December 31, 2018 there was approximately $ 463.2 million remaining available for repurchases under the share repurchase program. Effective February 7, 2019, the Company’s Board authorized the repurchase of its common stock in the amount of approximately $602.9 million , in addition to the $397.1 million remaining available for repurchase under the previous share repurchase program, for a total repurchase authorization of up to $1.0 billion under the share repurchase program. The summary of the Company’s common stock repurchases for 2018 , 2017 and 2016 are as follows: 2018 2017 2016 Shares Average Price Shares Average Price Shares Average Price (In thousands, except average price amounts) Total repurchases under the repurchase plans 4,352 $ 137.86 6,265 $ 94.59 7,789 $ 81.73 Total repurchases for tax withholdings 309 $ 123.62 335 $ 85.27 320 $ 80.74 Total repurchases 4,661 $ 136.91 6,600 $ 94.12 8,109 $ 81.70 Total costs $ 638,152 $ 621,173 $ 662,491 Since inception, the Company has repurchased 232.3 million shares of its common stock for an aggregate cost of $9.42 billion , which is recorded as a reduction of Additional paid-in capital. Accumulated Other Comprehensive Loss The following table summarizes the changes in the components of Accumulated other comprehensive loss for 2018 and 2017 : Foreign Currency Translation Adjustments Loss Unrealized Gain (Loss) On Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance, December 31, 2016 $ (3,366 ) $ (87 ) $ (3,453 ) Changes 530 (18 ) 512 Balance, December 31, 2017 (2,836 ) (105 ) (2,941 ) Changes — 130 130 Balance, December 31, 2018 $ (2,836 ) $ 25 $ (2,811 ) |
Calculation Of Net Income Per S
Calculation Of Net Income Per Share | 12 Months Ended |
Dec. 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: Year Ended December 31, 2018 2017 2016 (In thousands) Weighted-average shares of common stock outstanding 113,452 100,325 107,001 Weighted-average potential shares of common stock outstanding: Conversion spread related to Subordinated Convertible Debentures 8,589 23,247 21,074 Unvested RSUs, and ESPP 620 608 758 Shares used to compute diluted earnings per share 122,661 124,180 128,833 The dilutive impact of the conversion spread related to the Subordinated Convertible Debentures is included in the calculation for 2018, on a weighted-average basis for the period prior to conversion. 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. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including, but not limited to Canada, Australia, and Japan. The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Year Ended December 31, 2018 2017 2016 (In thousands) U.S $ 756,907 $ 707,906 $ 667,301 EMEA 212,699 211,349 207,474 China 106,841 106,526 127,298 Other 138,522 139,314 140,094 Total revenues $ 1,214,969 $ 1,165,095 $ 1,142,167 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. Major Customers Our largest customer accounted for approximately 32% , 31% , and 30% of revenues in 2018 , 2017, and 2016 , respectively and another customer accounted for 10% of revenues during 2018. The Company does not believe that the loss of either of these customers would have a material adverse effect on the Company’s business because, in that event, end-users of these customers would transfer to the Company’s other existing customers. 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 in 2018 is primarily driven by amounts billed in 2018 for domain name registrations and renewals to be recognized as revenue in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $690.1 million of revenues recognized that were included in the deferred revenue balance at December 31, 2017. The balance of deferred revenue as of December 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, except for a portion of deferred revenue that relates to domain name renewals that are deleted in the 45-day grace period following the transaction. The 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. |
Sale of Business Sale of a busi
Sale of Business Sale of a business (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Sale of business [Abstract] | |
Sale of business [Text Block] | Sale of Security Services Business On December 5, 2018, the Company completed the sale of the rights, economic benefits, and obligations, in all customer contracts related to its Security Services business, which was primarily comprised of Distributed Denial of Service Protection and Managed DNS services, to Neustar. As part of the transaction, the Company will continue to support the Security Services customers during the transition to Neustar over the course of 2019. The transaction was accounted for as the sale of a business. The Company received a payment of $50.0 million at closing and recorded a non-current receivable for the estimated contingent consideration of $14.7 million expected to be collected after the first anniversary of closing. In addition, the Company recorded a current liability of $9.9 million for amounts due to Neustar for estimated collections from Security Services customers of any billings after the closing date and until the customer contracts are assigned to Neustar. As a result of the sale, the Company recognized a pre-tax gain of approximately $54.8 million , which is included in Non-operating income in the fourth quarter of 2018. The estimated contingent consideration to be received, the liability for estimated future billings to be remitted to Neustar, and the gain recognized in 2018, are based on the Company’s best estimates of the probability and timing of customers consenting to the assignment of their contracts to Neustar. To the extent that the actual results differ from the Company’s estimates, the gain on the sale may be adjusted in 2019. |
Employee Benefits And Stock-Bas
Employee Benefits And Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Employee Benefits And Stock-Based Compensation | Employee Benefits and Stock-based Compensation 401(k) Plan The Company maintains a defined contribution 401(k) plan (the “401(k) Plan”) for substantially all of its U.S. employees. Under the 401(k) Plan, eligible employees may contribute up to 50% of their pre-tax salary, subject to the Internal Revenue Service (“IRS”) annual contribution limits. Through the second quarter of 2018, the Company matched 50% of up to the first 6% of the employee’s annual salary contributed to the plan. Effective July 1, 2018, the Company increased its employer contribution to 50% of up to the first 8% of the employee’s annual salary contributed to the plan. The Company contributed $4.3 million in 2018 , $4.0 million in 2017 , and $3.8 million in 2016 under the 401(k) Plan. The Company can terminate matching contributions at its discretion at any time. Equity Incentive Plan The majority of Verisign’s stock-based compensation relates to RSUs. As of December 31, 2018 , a total of 9.6 million shares of common stock were reserved for issuance upon the vesting of RSUs and for the future grant of equity awards. On May 26, 2006, the stockholders of Verisign approved the 2006 Equity Incentive Plan, which was amended and restated on June 9, 2016 (the “2006 Plan”). The 2006 Plan authorizes the award of incentive stock options to employees and non-qualified stock options, restricted stock awards, RSUs, stock bonus awards, stock appreciation rights and performance shares to eligible employees, officers, directors, consultants, independent contractors and advisers. The 2006 Plan is administered by the Compensation Committee which may delegate to a committee of one or more members of the Board or Verisign’s officers the ability to grant certain awards and take certain other actions with respect to participants who are not executive officers or non-employee directors. RSUs are awards covering a specified number of shares of Verisign common stock that may be settled by issuance of those shares (which may be restricted shares). RSUs generally vest over four years. Certain RSUs with performance and market conditions (“PSUs”), granted to the Company’s executives, vest over either three or four year terms. Additionally, the Company has granted fully vested RSUs to members of its Board in each of the last three years. The Compensation Committee may authorize grants with a different vesting schedule in the future. A total of 27.0 million common shares were authorized and reserved for issuance under the 2006 Plan. 2007 Employee Stock Purchase Plan On August 30, 2007, the Company’s stockholders approved the 2007 Employee Stock Purchase Plan, and in 2017 approved an amendment to increase the shares reserved for issuance by 2.5 million to a total of 8.5 million common shares authorized and reserved for issuance under the ESPP. Eligible employees may purchase common stock through payroll deductions by electing to have between 2% and 25% of their compensation withheld to cover the purchase price. Each participant is granted an option to purchase common stock on the first day of each 24-month offering period and this option is automatically exercised on the last day of each six-month purchase period during the offering period. The purchase price for the common stock under the ESPP is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of the applicable purchase period. Offering periods begin on the first business day of February and August of each year. As of December 31, 2018 , 3.3 million shares of the Company’s common stock remain reserved for future issuance under this plan. Stock-based Compensation Stock-based compensation is classified in the Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation: Year Ended December 31, 2018 2017 2016 (In thousands) Cost of revenues $ 6,835 $ 7,030 $ 7,253 Sales and marketing 4,972 5,688 5,738 Research and development 6,728 6,113 6,739 General and administrative 33,969 34,076 30,314 Total stock-based compensation $ 52,504 $ 52,907 $ 50,044 The following table presents the nature of the Company’s total stock-based compensation: Year Ended December 31, 2018 2017 2016 (In thousands) RSUs $ 38,005 $ 38,087 $ 37,325 PSUs 12,403 13,270 11,512 ESPP 4,166 4,005 3,593 Capitalization (Included in Property and equipment, net) (2,070 ) (2,455 ) (2,386 ) Total stock-based compensation expenses $ 52,504 $ 52,907 $ 50,044 The income tax benefit that was included within Income tax expense related to these stock-based compensation expenses for 2018 , 2017 , and 2016 was $ 12.3 million, $ 12.5 million, and $ 17.7 million, respectively. The tax benefit for 2018 and 2017 reflects the reduction in the U.S. federal statutory corporate tax rate from 35% to 21% in 2017. RSUs Information The following table summarizes unvested RSUs activity for the year ended December 31, 2018: Shares Weighted-Average Grant-Date Fair Value (Shares in thousands) Unvested at beginning of period 1,588 $ 74.69 Granted 474 $ 112.74 PSU achievement adjustment 115 $ 38.10 Vested and settled (862 ) $ 66.37 Forfeited (93 ) $ 88.43 1,222 $ 90.88 The RSUs in the table above include PSUs. The unvested RSUs as of December 31, 2018 include approximately 0.4 million PSUs. The number of shares received upon vesting of these PSUs may range from zero to 0.8 million depending on the level of performance achieved and whether any market conditions are satisfied. The closing price of Verisign’s stock was $ 148.29 on December 31, 2018 . As of December 31, 2018 , the aggregate market value of unvested RSUs was $ 181.2 million. The fair values of RSUs that vested during 2018 , 2017 , and 2016 were $ 107.2 million, $ 75.9 million, and $ 70.5 million, respectively. The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2017 and 2016, was $ 83.91 and $ 81.59 , respectively. As of December 31, 2018 , total unrecognized compensation cost related to unvested RSUs was $ 73.4 million which is expected to be recognized over a weighted-average period of 2.5 years. |
Non-operating income, net
Non-operating income, net | 12 Months Ended |
Dec. 31, 2018 | |
Non-operating (loss) income, net [Abstract] | |
Non-operating Income, Net | Non-operating Income, Net The following table presents the components of Non-operating income, net: Year Ended December 31, 2018 2017 2016 (In thousands) Gain on sale of business $ 54,840 $ 10,421 $ — Interest income 26,490 17,944 6,191 Loss on extinguishment of Subordinated Convertible Debentures (6,554 ) — — Other, net 2,193 (739 ) 3,974 Total non-operating income, net $ 76,969 $ 27,626 $ 10,165 On December 5, 2018, the Company completed the sale of the rights, economic benefits, and obligations, in all customer contracts related to its Security Services business, which resulted in a gain of approximately $54.8 million in the fourth quarter of 2018. During the second quarter of 2017, the Company completed the sale of its iDefense business, which resulted in a gain of approximately $10.4 million in 2017. Interest income is earned principally from the Company’s surplus cash balances and marketable securities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income before income taxes is categorized geographically as follows: Year Ended December 31, 2018 2017 2016 (In thousands) United States $ 420,597 $ 313,351 $ 299,304 Foreign 308,919 285,661 281,869 Total income before income taxes $ 729,516 $ 599,012 $ 581,173 The provision for income taxes consisted of the following: Year Ended December 31, 2018 2017 2016 (In thousands) Current expense: Federal $ 99,127 $ 16,870 $ 34,842 State 1,088 294 240 Foreign, including withholding tax 76,199 15,539 19,268 176,414 32,703 54,350 Deferred expense (benefit): Federal (16,448 ) 90,113 64,301 State 42,624 19,654 21,492 Foreign (55,563 ) (706 ) 385 (29,387 ) 109,061 86,178 Total income tax expense $ 147,027 $ 141,764 $ 140,528 Federal current expense and federal deferred benefit for 2018 includes $96.4 million of the one-time U.S. tax on accumulated foreign earnings (“Transition tax”), net of $106.7 million of carried forward and newly-generated foreign tax credits, payable as a result of the Tax Act. This amount will be paid in installments over 8 years starting in 2018, as allowed by the Tax Act. As discussed below, the Transition tax was recorded as a provisional deferred tax liability in 2017. State tax expense for 2018 is increased by $10.0 million remeasurement of deferred tax assets because of changes in certain state apportionment rates, and $5.6 million change in estimate related to the 2017 state income tax returns. Foreign current expense and foreign deferred benefit for 2018 includes $60.7 million of withholding taxes paid upon the repatriation of cash held by foreign subsidiaries. As discussed below, the withholding tax was recorded as a provisional deferred tax liability in 2017. The difference between income tax expense and the amount resulting from applying the federal statutory rate of 21% in 2018 and 35% in 2017 and 2016, to Income before income taxes is attributable to the following: Year Ended December 31, 2018 2017 2016 (In thousands) Income tax expense at federal statutory rate $ 153,199 $ 209,654 $ 203,410 State taxes, net of federal benefit 35,852 13,029 14,517 Differences between statutory rate and foreign effective tax rate (46,928 ) (83,808 ) (79,087 ) Excess tax benefits from stock-based compensation (9,006 ) (7,728 ) — Capital loss carryforwards expiration 769,706 — — Change in valuation allowance (773,737 ) (5,813 ) (511 ) U.S. federal tax rate change — (186,800 ) — Transition tax, net of foreign tax credits (5,602 ) 162,353 — U.S. tax on foreign earnings, net of foreign tax credits 24,208 4,123 2,881 Foreign withholding tax on unremitted foreign earnings, net of foreign tax credits (812 ) 33,619 — Other 147 3,135 (682 ) Total income tax expense $ 147,027 $ 141,764 $ 140,528 The Tax Act was enacted on December 22, 2017, and most of its provisions became effective in 2018. The Tax Act made substantial changes to U.S. taxation of corporations, including, lowering the U.S. federal corporate income tax rate from 35% to 21% , and instituting a territorial tax system, along with a one-time tax on accumulated foreign earnings. Upon enactment, the Company remeasured its deferred tax balances to reflect the new 21% U.S. federal tax rate, which resulted in a tax benefit of $ 186.8 million in 2017. In 2017, the Company also recorded a provisional deferred tax liability of $ 162.4 million , for the Transition tax, net of $ 38.3 million of resulting previously unrecognized foreign tax credits. The Company recorded a $5.6 million adjustment in 2018 as it finalized the provisional Transition tax amount. In 2018, the Company completed the 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 recorded additional impacts and changes in estimates related to the Tax Act during 2018 as additional guidance or information became available. As of December 31, 2018, the Company has completed its accounting for the tax effects of the enactment of the Tax Act. The Company qualifies for a tax holiday in Switzerland which does not expire, unless the required non-Swiss income and expense thresholds are no longer met, or there is a law change which eliminates the holiday. The tax holiday provides reduced rates of taxation on certain types of income and also require certain thresholds of foreign source income. The tax holiday reduced the Company’s income tax expense by $16.9 million in 2018, $12.3 million in 2017, and $21.3 million in 2016. This resulted in an increase in the Company’s earnings per share by $0.14 , $ 0.10 , and $ 0.16 in 2018, 2017, and 2016, respectively. The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 40,729 $ 70,587 Tax credit carryforwards 3,970 52,659 Deferred revenue, accruals and reserves 74,437 77,869 Capital loss carryforwards — 778,430 Other 6,724 6,776 Total deferred tax assets 125,860 986,321 Valuation allowance (10,153 ) (783,725 ) Net deferred tax assets 115,707 202,596 Deferred tax liabilities: Property and equipment (2,764 ) (1,577 ) Transition tax — (162,912 ) Foreign withholding tax on unremitted earnings (2,733 ) (33,619 ) Subordinated Convertible Debentures — (430,088 ) Other (5,352 ) (3,116 ) Total deferred tax liabilities (10,849 ) (631,312 ) Total net deferred tax assets (liabilities) $ 104,858 $ (428,716 ) With the exception of deferred tax assets related to certain state and foreign net operating loss carryforwards, management believes it is more likely than not that the tax effects of the deferred tax liabilities together with future taxable income, will be sufficient to fully recover the remaining deferred tax assets. As of December 31, 2018, the Company’s Other long-term tax liabilities includes the $81.0 million noncurrent liability for Transition tax, net of applicable foreign tax credits, while the $4.8 million current portion of the liability is included in Accounts payable and accrued liabilities. Both the current and noncurrent portion of these liabilities in addition to the $10.6 million paid in 2018, had been included in deferred tax liabilities as of December 31, 2017. The excess interest deductions on the Subordinated Convertible Debentures that were converted were not subject to recapture, and accordingly, the $439.2 million deferred tax liability related to the debentures, as of the conversion date, was reversed into Additional paid-in capital upon extinguishment of the debt. As of December 31, 2018 , the Company had federal, state and foreign net operating loss carryforwards of approximately $ 4.5 million , $738.3 million and $ 18.1 million , respectively, before applying tax rates for the respective jurisdictions. As of December 31, 2018 , the Company had state research tax credits of $2.3 million and alternative minimum tax credits of $ 6.9 million available for future years. Certain net operating loss carryforwards and credits are subject to an annual limitation under Internal Revenue Code Section 382, but are expected to be fully realized. The federal and state net operating loss and federal tax credit carryforwards expire in various years from 2019 through 2034 . The foreign net operating loss can be carried forward indefinitely. As of December 31, 2018, the Company’s federal and state capital loss carryforwards expired and the associated valuation allowance reserve was also released. As of December 31, 2018, the Company has foreign tax credit carryforwards of $ 18.6 million . The majority of these foreign tax credits will expire in 2024 . The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available including changes in tax regulations and other information. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: As of December 31, 2018 2017 (In thousands) Beginning balance $ 223,216 $ 220,682 Increases in tax positions for prior years 333 3,699 Decreases in tax positions for prior years (196 ) (144 ) Increases in tax positions for current year 436 395 Decreases in tax positions due to settlement with taxing authorities — (1,416 ) Lapse in statute of limitations (334 ) — Ending balance $ 223,455 $ 223,216 As of December 31, 2018 , approximately $ 219.5 million of unrecognized tax benefits, including penalties and interest, could affect the Company’s tax provision and effective tax rate. It is reasonably possible that during the next twelve months, the Company’s unrecognized tax benefits may change by a significant amount as a result of IRS audits. However, the timing of completion and ultimate outcome of the audits remains uncertain. Therefore, the Company cannot currently estimate the impact on the balance of unrecognized tax benefits. In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. These accruals were not material in any period presented. The Company’s major taxing jurisdictions are the U.S., the state of Virginia, and Switzerland. The Company’s U.S. federal income tax returns are currently under examination by the IRS for 2010 through 2014. The Company’s other material tax returns are not currently under examination by their respective taxing jurisdictions. Because the Company has used net operating loss carryforwards and other tax attributes to offset its taxable income in current and future years’ income tax returns for the U.S. and Virginia, such attributes can be adjusted by these taxing authorities until the statute closes on the year in which such attributes were utilized. The open years in Switzerland are the 2012 tax year and forward. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Purchase Obligations and Contractual Agreements The following table represents the minimum payments required by Verisign under certain purchase obligations, leases, the .tv Agreement with the Government of Tuvalu, and the interest payments and principal on the Senior Notes: Purchase Obligations .tv Agreement Senior Notes Total (In thousands) 2019 $ 31,935 $ 5,000 $ 87,063 $ 123,998 2020 4,737 5,000 87,063 96,800 2021 989 5,000 87,063 93,052 2022 303 — 87,063 87,366 2023 — — 819,719 819,719 Thereafter — — 1,193,875 1,193,875 Total $ 37,964 $ 15,000 $ 2,361,846 $ 2,414,810 The amounts in the table above exclude $ 219.5 million of income tax related uncertain tax positions, as the Company is unable to reasonably estimate the ultimate amount or time of settlement of those liabilities. Verisign enters into certain purchase obligations with various vendors. The Company’s significant purchase obligations include firm commitments with telecommunication carriers and other service providers. The Company does not have any significant purchase obligations beyond 2022. The Company has an agreement with Internet Corporation for Assigned Names and Numbers (“ICANN”) to be the sole registry operator for domain names in the .com registry through November 30, 2024 . Under this agreement, the Company pays ICANN on a quarterly basis, $ 0.25 for each annual increment of a domain name registered or renewed during such quarter. As of December 31, 2018 , there were 139.0 million domain names in the . com registry. However, the number of domain names registered and renewed each quarter may vary significantly. The Company incurred registry fees for the . com registry of $ 33.0 million in 2018 , $ 32.3 million in 2017 , and $ 31.5 million in 2016 . Registry fees for other top-level domains that we operate have been excluded from the table above because the amounts are variable or passed through to registrars. The Company has an agreement with the Government of Tuvalu to be the sole registry operator for .tv domain names through December 31, 2021. Registry fees were $ 5.0 million in each of the last three years. Verisign leases a small portion of its facilities under operating leases that extend into 2022. Rental expenses under operating leases were not material in any period presented. Future rental expenses under existing operating leases are not material. Off-Balance Sheet Arrangements As of December 31, 2018 and 2017 , the Company did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, the Company is not exposed to any financing, liquidity, market or credit risk that could arise if the Company had engaged in such relationships. It is not the Company’s business practice to enter into off-balance sheet arrangements. However, in the normal course of business, the Company does enter into contracts in which it makes representations and warranties that guarantee the performance of the Company’s products and services. Historically, there have been no significant losses related to such guarantees. |
Description Of Business And S_2
Description Of Business And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Verisign considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include certain money market funds, debt securities and various deposit accounts. Verisign maintains its cash and cash equivalents with financial institutions that have investment grade ratings and, as part of its cash management process, performs periodic evaluations of the relative credit standing of these financial institutions. |
Marketable Securities | Marketable Securities Marketable securities primarily consist of debt securities issued by the U.S. Treasury. All marketable securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses, net of taxes, are reported as a component of Accumulated other comprehensive loss. The specific identification method is used to determine the cost basis of the marketable securities sold. The Company classifies its marketable securities as current based on their nature and availability for use in current operations. |
Property And Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of 35 to 47 years for buildings, 10 years for building improvements and three to five years for computer equipment, software, office equipment, and furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or associated lease terms. |
Capitalized Software | Capitalized Software Software included in property and equipment includes amounts paid for purchased software and development costs for internally developed software. The Company capitalized $ 14.7 million and $17.7 million of costs related to internally developed software during 2018 and 2017 , respectively. |
Goodwill And Other Long-Lived Assets | Goodwill and Other Long-lived Assets Goodwill represents the excess of purchase consideration over fair value of net assets of businesses acquired. The Company has only one reporting unit, namely Registry Services, which has a negative carrying value. Therefore, the goodwill is not subject to impairment. Long-lived assets, such as property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Such events or circumstances include, but are not limited to, a significant decrease in the fair value of the underlying business. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset, or asset group, to estimated undiscounted future cash flows expected to be generated by the asset, or asset group. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds its fair value. As of December 31, 2018, the Company’s assets include a deposit related to the purchase of the contractual rights to the . web gTLD. The amount paid to date has been recorded as a deposit until such time that the contractual rights are transferred to the Company. This asset would be tested for recoverability if the Company were to determine that it is no longer probable that the rights will be transferred. At the time of the transfer of the contractual rights, the Company will record the amount as an indefinite-lived intangible asset subject to review for impairment on an annual basis or more frequently if events or changes in circumstances indicate that an impairment is more likely than not. |
3.25% Junior Subordinated Convertible Debentures Due 2037 ("Convertible Debentures") | 3.25% Junior Subordinated Convertible Debentures Due 2037 (“Subordinated Convertible Debentures”) Upon issuance of the Subordinated Convertible Debentures, Verisign separated the liability (debt) and equity (conversion option) components in a manner that reflected the borrowing rate for a similar non-convertible debt. The liability component was recognized based on the fair value of a similar instrument without a conversion feature at issuance. The excess of the principal amount of the Subordinated Convertible Debentures over the liability component at issuance was the equity component or debt discount, which was recorded as Additional paid-in capital. The debt discount was amortized using the Company’s effective interest rate over the term of the Subordinated Convertible Debentures as a non-cash charge to interest expense. The Company settled all of the outstanding Subordinated Convertible Debentures during 2018. For further details, refer to Note 4 “Debt and Interest Expense”. |
Foreign Currency Remeasurement | Foreign Currency Remeasurement Verisign conducts business in several different countries and transacts in multiple currencies. The functional currency for all of Verisign’s international subsidiaries is the U.S. Dollar. The Company’s subsidiaries’ financial statements are remeasured into U.S. Dollars using a combination of current and historical exchange rates and any remeasurement gains and losses are included in Non-operating income, net. Remeasurement gains and losses were not significant in each of the last three years. Verisign maintains a foreign currency risk management program designed to mitigate foreign exchange risks associated with the monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. The primary objective of this program is to minimize the gains and losses resulting from fluctuations in exchange rates. The Company does not enter into foreign currency transactions for trading or speculative purposes, nor does it hedge foreign currency exposures in a manner that entirely offsets the effects of changes in exchange rates. The program may entail the use of forward or option contracts, which are usually placed and adjusted monthly. These foreign currency forward contracts are derivatives and are recorded at fair market value. The Company records gains and losses on foreign currency forward contracts in Non-operating income, net. Gains and losses related to foreign currency forward contracts were not significant in each of the last three years. As of December 31, 2018 , Verisign held foreign currency forward contracts in notional amounts totaling $28.5 million to mitigate the impact of exchange rate fluctuations associated with certain assets and liabilities held in foreign currencies. |
Revenue Recognition | Revenue Recognition 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. 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, Domain Name System (“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 were deferred and recognized over the service term, generally one to two years. On December 5, 2018, we completed the sale of the rights, economic benefits, and obligations, in all customer contracts related to our Security Services business. Revenues from the Security Services business were not significant in relation to our consolidated revenues. Costs Incurred to Obtain a Contract 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 Prior to the sale of the customer contracts of the Security Services business in December of 2018, we recognized sales commissions for 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 were not material for any period presented and were recorded within sales and marketing expenses. |
Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred and are included in Sales and marketing expenses. Advertising expenses, including costs for advertising campaigns conducted jointly with our registrars were $15.2 million , $27.4 million , and $17.2 million in 2018 , 2017 , and 2016 , respectively. |
Income Taxes | Income Taxes Verisign uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017, most provisions of which became effective in 2018. The Tax Act made substantial changes to U.S. taxation of corporations, including, lowering the U.S. federal corporate income tax rate from 35% to 21%, and instituting a territorial tax system, along with a one-time tax on accumulated foreign earnings. The effect on deferred tax assets and liabilities of a change in law or tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount whose realization is more likely than not. For every tax-paying component and within each tax jurisdiction, all deferred tax liabilities and assets are offset and presented as a single net noncurrent asset or liability. Among other changes, the Tax Act included a provision designed to currently tax global intangible low-taxed income (“GILTI”). The Company evaluated available accounting policy alternatives and elected to record the U.S. income tax effect of future GILTI inclusions in the period in which they arise. The Company’s income taxes payable is reduced by the tax benefits from restricted stock unit (“RSU”) vestings equal to the fair market value of the stock at the vesting date. If the income tax benefit at the exercise or vesting date differs from the income tax benefit recorded based on the grant date fair value of the RSUs, the excess or shortfall of the tax benefit is recognized within income tax expense. Verisign’s global operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes payable are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from U.S. federal, state, and international tax audits. The Company only recognizes tax positions taken or expected to be taken on its tax returns that are more likely than not to be sustained upon examination, and records a tax benefit amount that is more likely than not to be realized upon ultimate settlement with the taxing authority. The Company adjusts its estimate of unrecorded tax benefits in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a liability that is materially different from its estimate. The Company’s assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and character of future taxable income, such as income from operations or capital gains income. Actual operating results and the underlying amount and character of income in future years could render the Company’s current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause the Company’s actual income tax obligations to differ from its estimates, thus materially impacting its financial condition and results of operations. |
Stock-Based Compensation | Stock-based Compensation The Company’s stock-based compensation consists of RSUs granted to employees and the employee stock purchase plan (“ESPP”). Stock-based compensation expense is typically recognized ratably over the requisite service period. Forfeitures of stock-based awards are recognized as they occur. The Company also grants RSUs which include performance conditions, and in some cases market conditions, to certain executives. The expense for these performance-based RSUs is recognized based on the probable outcome of the performance conditions. The expense recognized for awards with market conditions is based on the grant date fair value of the awards including the impact of the market conditions, using a Monte Carlo simulation model. The Company uses the Black-Scholes option pricing model to determine the fair value of its ESPP offerings. The determination of the fair value of stock-based payment awards using the Monte Carlo simulation model or the Black-Scholes option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. |
Earnings Per Share | Earnings per Share The Company computes basic earnings per share by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share gives effect to dilutive potential common shares, including unvested RSUs, ESPP offerings and the conversion spread related to the Subordinated Convertible Debentures, prior to conversion on May 1, 2018, using the treasury stock method. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The Company measures and reports certain financial assets and liabilities at fair value on a recurring basis, including its investments in money market funds classified as Cash and cash equivalents and marketable securities. |
Commitments and Contingencies, Policy [Policy Text Block] | Legal Proceedings Verisign is involved in various investigations, claims and lawsuits arising in the normal conduct of its business, none of which, in its opinion, will have a material adverse effect on its financial condition, results of operations, or cash flows. The Company cannot assure you that it will prevail in any litigation. Regardless of the outcome, any litigation may require the Company to incur significant litigation expense and may result in significant diversion of management attention. While certain legal proceedings and related indemnification obligations to which the Company is a party specify the amounts claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition, results of operations, or cash flows. |
New Accounting Pronouncements, Policy [Policy Text Block] | 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 it 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 recognizes the fees that it pays to ICANN for each annual increment of . com domain name registrations and renewals, as an asset which is 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. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements to Topic 842 Leases, which allows for an alternative transition approach, which will not require adjustments to comparative prior period amounts. This ASU became effective for the Company on January 1, 2019. The adoption of this standard will not have a material impact on the Company’s consolidated financial statements. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Cash, Cash Equivalents, And Marketable Securities | The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis: As of December 31, 2018 2017 (In thousands) Cash $ 37,190 $ 135,092 Time deposits 3,810 3,682 Money market funds (Level 1) 120,832 116,068 Debt securities issued by the U.S. Treasury (Level 1) 1,117,175 2,169,197 Total $ 1,279,007 $ 2,424,039 Cash and cash equivalents $ 357,415 $ 465,851 Restricted cash (included in Other long-term assets) 9,338 9,288 Total Cash, cash equivalents, and restricted cash 366,753 475,139 Marketable securities 912,254 1,948,900 Total $ 1,279,007 $ 2,424,039 |
Other Balance Sheet Items (Tabl
Other Balance Sheet Items (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses And Other Current Assets | Other current assets consist of the following: As of December 31, 2018 2017 (In thousands) Prepaid registry fees $ 20,696 $ — Prepaid expenses 14,109 15,787 Accounts receivable, net 6,029 5,111 Income taxes receivable 4,451 6,347 Other 2,080 4,157 Total other current assets $ 47,365 $ 31,402 |
Property And Equipment, Net | The following table presents the detail of property and equipment, net: As of December 31, 2018 2017 (In thousands) Land $ 31,141 $ 31,141 Buildings and building improvements 247,870 246,654 Computer equipment and software 461,829 462,469 Capital work in progress 2,013 4,024 Office equipment and furniture 6,912 6,472 Leasehold improvements 1,403 1,403 Total cost 751,168 752,163 Less: accumulated depreciation (497,263 ) (488,650 ) Total property and equipment, net $ 253,905 $ 263,513 |
Goodwill | The following table presents the detail of goodwill: As of December 31, 2018 2017 (In thousands) Goodwill, gross $ 1,537,843 $ 1,537,843 Accumulated goodwill impairment (1,485,316 ) (1,485,316 ) Total goodwill $ 52,527 $ 52,527 |
Other Long-Term Assets | Other long-term assets consist of the following: As of December 31, 2018 2017 (In thousands) Contingent consideration receivable $ 14,721 $ — Long-term prepaid registry fees 7,779 — Restricted cash 9,338 9,288 Other tax receivable 5,673 5,673 Other 3,535 3,642 Total other long-term assets $ 41,046 $ 18,603 |
Components Of Accounts Payable And Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: As of December 31, 2018 2017 (In thousands) Accounts payable $ 10,445 $ 10,519 Accrued employee compensation 54,746 51,481 Customer deposits, net 57,025 63,617 Interest Payable 24,318 47,357 Accrued registry fees 11,029 10,404 Payables to buyer 9,875 — Taxes payable and other tax liabilities 18,961 13,477 Other accrued liabilities 28,809 22,748 Total accounts payable and accrued liabilities $ 215,208 $ 219,603 |
Debt And Interest Expense (Tabl
Debt And Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The following table summarizes information related to our Senior notes (in thousands, except interest rates): As of December 31, 2018 2017 Issuance Date Maturity Date Interest Rate Principal Senior notes due 2023 April 16, 2013 May 1, 2023 4.625 % $ 750,000 $ 750,000 Senior notes due 2025 March 27, 2015 April 1, 2025 5.250 % 500,000 500,000 Senior notes due 2027 July 5, 2017 July 15, 2027 4.750 % 550,000 550,000 Unamortized issuance costs (14,953 ) (17,471 ) Total senior notes $ 1,785,047 $ 1,782,529 |
Carrying amounts of liability and equity components [Table Text Block] | The table below presents the carrying amounts of the liability and equity components as of December 31, 2017. Debt discount upon issuance (net of issuance costs of $14,449) $ 686,221 Deferred taxes associated with the debt discount upon issuance (267,225 ) Carrying amount of equity component $ 418,996 Principal amount of Subordinated Convertible Debentures $ 1,250,000 Unamortized discount of liability component (612,303 ) Unamortized debt issuance costs associated with the liability component (10,081 ) Carrying amount of liability component $ 627,616 |
Schedule of Components of Interest Expense | The following table presents the components of the Company’s interest expense: Year Ended December 31, 2018 2017 2016 (In thousands) Contractual interest on Subordinated Convertible Debentures $ 20,015 $ 47,432 $ 40,625 Contractual interest on Senior Notes 87,063 73,638 60,938 Amortization of debt discount on the Subordinated Convertible Debentures 4,236 12,012 11,094 Amortization of debt issuance costs and other interest expense 3,531 3,254 2,907 Total interest expense $ 114,845 $ 136,336 $ 115,564 |
Stockholders' Deficit Stockhold
Stockholders' Deficit Stockholders' Deficit (Equity) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Repurchase | The summary of the Company’s common stock repurchases for 2018 , 2017 and 2016 are as follows: 2018 2017 2016 Shares Average Price Shares Average Price Shares Average Price (In thousands, except average price amounts) Total repurchases under the repurchase plans 4,352 $ 137.86 6,265 $ 94.59 7,789 $ 81.73 Total repurchases for tax withholdings 309 $ 123.62 335 $ 85.27 320 $ 80.74 Total repurchases 4,661 $ 136.91 6,600 $ 94.12 8,109 $ 81.70 Total costs $ 638,152 $ 621,173 $ 662,491 |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the components of Accumulated other comprehensive loss for 2018 and 2017 : Foreign Currency Translation Adjustments Loss Unrealized Gain (Loss) On Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance, December 31, 2016 $ (3,366 ) $ (87 ) $ (3,453 ) Changes 530 (18 ) 512 Balance, December 31, 2017 (2,836 ) (105 ) (2,941 ) Changes — 130 130 Balance, December 31, 2018 $ (2,836 ) $ 25 $ (2,811 ) |
Calculation Of Net Income Per_2
Calculation Of Net Income Per Share (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2018 2017 2016 (In thousands) Weighted-average shares of common stock outstanding 113,452 100,325 107,001 Weighted-average potential shares of common stock outstanding: Conversion spread related to Subordinated Convertible Debentures 8,589 23,247 21,074 Unvested RSUs, and ESPP 620 608 758 Shares used to compute diluted earnings per share 122,661 124,180 128,833 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Year Ended December 31, 2018 2017 2016 (In thousands) U.S $ 756,907 $ 707,906 $ 667,301 EMEA 212,699 211,349 207,474 China 106,841 106,526 127,298 Other 138,522 139,314 140,094 Total revenues $ 1,214,969 $ 1,165,095 $ 1,142,167 |
Employee Benefits And Stock-B_2
Employee Benefits And Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Classification Of Stock-Based Compensation | The following table presents the classification of stock-based compensation: Year Ended December 31, 2018 2017 2016 (In thousands) Cost of revenues $ 6,835 $ 7,030 $ 7,253 Sales and marketing 4,972 5,688 5,738 Research and development 6,728 6,113 6,739 General and administrative 33,969 34,076 30,314 Total stock-based compensation $ 52,504 $ 52,907 $ 50,044 |
Nature Of Total Stock-Based Compensation | The following table presents the nature of the Company’s total stock-based compensation: Year Ended December 31, 2018 2017 2016 (In thousands) RSUs $ 38,005 $ 38,087 $ 37,325 PSUs 12,403 13,270 11,512 ESPP 4,166 4,005 3,593 Capitalization (Included in Property and equipment, net) (2,070 ) (2,455 ) (2,386 ) Total stock-based compensation expenses $ 52,504 $ 52,907 $ 50,044 |
Summary Of Unvested RSUs Activity | The following table summarizes unvested RSUs activity for the year ended December 31, 2018: Shares Weighted-Average Grant-Date Fair Value (Shares in thousands) Unvested at beginning of period 1,588 $ 74.69 Granted 474 $ 112.74 PSU achievement adjustment 115 $ 38.10 Vested and settled (862 ) $ 66.37 Forfeited (93 ) $ 88.43 1,222 $ 90.88 |
Non-operating income, net Non-o
Non-operating income, net Non-operating income, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non-operating (loss) income, net [Abstract] | |
Schedule of Non-operating Income, net | The following table presents the components of Non-operating income, net: Year Ended December 31, 2018 2017 2016 (In thousands) Gain on sale of business $ 54,840 $ 10,421 $ — Interest income 26,490 17,944 6,191 Loss on extinguishment of Subordinated Convertible Debentures (6,554 ) — — Other, net 2,193 (739 ) 3,974 Total non-operating income, net $ 76,969 $ 27,626 $ 10,165 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income From Continuing Operations Before Income Taxes | Income before income taxes is categorized geographically as follows: Year Ended December 31, 2018 2017 2016 (In thousands) United States $ 420,597 $ 313,351 $ 299,304 Foreign 308,919 285,661 281,869 Total income before income taxes $ 729,516 $ 599,012 $ 581,173 |
Components Of Provision For Income Taxes | The provision for income taxes consisted of the following: Year Ended December 31, 2018 2017 2016 (In thousands) Current expense: Federal $ 99,127 $ 16,870 $ 34,842 State 1,088 294 240 Foreign, including withholding tax 76,199 15,539 19,268 176,414 32,703 54,350 Deferred expense (benefit): Federal (16,448 ) 90,113 64,301 State 42,624 19,654 21,492 Foreign (55,563 ) (706 ) 385 (29,387 ) 109,061 86,178 Total income tax expense $ 147,027 $ 141,764 $ 140,528 |
Reconciliation Of Income Tax At Effective Income Tax Rate | The difference between income tax expense and the amount resulting from applying the federal statutory rate of 21% in 2018 and 35% in 2017 and 2016, to Income before income taxes is attributable to the following: Year Ended December 31, 2018 2017 2016 (In thousands) Income tax expense at federal statutory rate $ 153,199 $ 209,654 $ 203,410 State taxes, net of federal benefit 35,852 13,029 14,517 Differences between statutory rate and foreign effective tax rate (46,928 ) (83,808 ) (79,087 ) Excess tax benefits from stock-based compensation (9,006 ) (7,728 ) — Capital loss carryforwards expiration 769,706 — — Change in valuation allowance (773,737 ) (5,813 ) (511 ) U.S. federal tax rate change — (186,800 ) — Transition tax, net of foreign tax credits (5,602 ) 162,353 — U.S. tax on foreign earnings, net of foreign tax credits 24,208 4,123 2,881 Foreign withholding tax on unremitted foreign earnings, net of foreign tax credits (812 ) 33,619 — Other 147 3,135 (682 ) Total income tax expense $ 147,027 $ 141,764 $ 140,528 |
Summary Of Deferred Tax Assets And Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 40,729 $ 70,587 Tax credit carryforwards 3,970 52,659 Deferred revenue, accruals and reserves 74,437 77,869 Capital loss carryforwards — 778,430 Other 6,724 6,776 Total deferred tax assets 125,860 986,321 Valuation allowance (10,153 ) (783,725 ) Net deferred tax assets 115,707 202,596 Deferred tax liabilities: Property and equipment (2,764 ) (1,577 ) Transition tax — (162,912 ) Foreign withholding tax on unremitted earnings (2,733 ) (33,619 ) Subordinated Convertible Debentures — (430,088 ) Other (5,352 ) (3,116 ) Total deferred tax liabilities (10,849 ) (631,312 ) Total net deferred tax assets (liabilities) $ 104,858 $ (428,716 ) |
Reconciliation Of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: As of December 31, 2018 2017 (In thousands) Beginning balance $ 223,216 $ 220,682 Increases in tax positions for prior years 333 3,699 Decreases in tax positions for prior years (196 ) (144 ) Increases in tax positions for current year 436 395 Decreases in tax positions due to settlement with taxing authorities — (1,416 ) Lapse in statute of limitations (334 ) — Ending balance $ 223,455 $ 223,216 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Payments Required Under Purchase Obligations | The following table represents the minimum payments required by Verisign under certain purchase obligations, leases, the .tv Agreement with the Government of Tuvalu, and the interest payments and principal on the Senior Notes: Purchase Obligations .tv Agreement Senior Notes Total (In thousands) 2019 $ 31,935 $ 5,000 $ 87,063 $ 123,998 2020 4,737 5,000 87,063 96,800 2021 989 5,000 87,063 93,052 2022 303 — 87,063 87,366 2023 — — 819,719 819,719 Thereafter — — 1,193,875 1,193,875 Total $ 37,964 $ 15,000 $ 2,361,846 $ 2,414,810 |
Description Of Business And S_3
Description Of Business And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
adjustments to current assets | $ 19,700 | ||
adjustments to non current assets | 7,600 | ||
adjustments to accumulated deficit | 22,500 | ||
Capitalized Computer Software, Additions | 14,700 | $ 17,700 | |
Net remeasurement gain (loss) on foreign currency translation | 1,000 | 1,000 | |
Gains (losses) on foreign currency forward contracts | 1,000 | 1,000 | |
Advertising expenses | 15,200 | 27,400 | $ 17,200 |
Derivative, Notional Amount | 28,500 | ||
Deferred Tax Liabilities, Net, Noncurrent | 134 | 444,108 | |
Deferred Tax Liabilities, Other | 5,352 | 3,116 | |
adjustments to deferred tax liability | $ 4,800 | ||
Building Improvements [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment (years) | 10 years | ||
Maximum [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
RegistrationTerm | 10 years | ||
Average Service Term | 2 years | ||
Maximum [Member] | Buildings [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment (years) | 47 years | ||
Maximum [Member] | Computer Equipment, Purchased Software, Office Equipment, And Furniture And Fixtures [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment (years) | 5 years | ||
Minimum [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Registration Payment Arrangement, Term | one | ||
Average Service Term | 1 year | ||
Minimum [Member] | Buildings [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment (years) | 35 years | ||
Minimum [Member] | Computer Equipment, Purchased Software, Office Equipment, And Furniture And Fixtures [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment (years) | 3 years | ||
Additional Paid-in Capital [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2,544 | ||
Retained Earnings [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 22,512 | $ 32,916 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Securities, Available-for-sale [Line Items] | ||||
Cash | $ 37,190 | $ 135,092 | ||
Time deposits | 3,810 | 3,682 | ||
Money market funds | 120,832 | 116,068 | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 1,117,175 | 2,169,197 | ||
Total | 1,279,007 | 2,424,039 | ||
Included in Cash and cash equivalents | 357,415 | 465,851 | ||
Included in Other assets (Restricted cash) | 9,338 | 9,288 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 366,753 | 475,139 | $ 241,581 | $ 240,628 |
Included in Marketable securities | $ 912,254 | $ 1,948,900 |
Financial Instruments Financial
Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | May 01, 2018 | Dec. 31, 2017 |
Discount rate | 8.42% | ||
Convertible Debt, Fair Value Disclosures | $ 651,300 | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | $ 1,117,175 | $ 2,169,197 | |
Available-for-sale Debt Securities Gross Unrealized Gain | 100 | ||
Due 2023 [Member] | |||
Debt Instrument, Fair Value Disclosure | 741,300 | ||
Due 2025 [Member] | |||
Debt Instrument, Fair Value Disclosure | 502,200 | ||
Due 2,027 | |||
Debt Instrument, Fair Value Disclosure | $ 524,200 |
Other Balance Sheet Items (Prep
Other Balance Sheet Items (Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid registry fees, current | $ 20,696 | $ 0 |
Prepaid expenses | 14,109 | 15,787 |
Accounts Receivable, Net, Current | 6,029 | 5,111 |
Income Taxes Receivable | 4,451 | 6,347 |
Other | 2,080 | 4,157 |
Other current assets | $ 47,365 | $ 31,402 |
Other Balance Sheet Items (Prop
Other Balance Sheet Items (Property And Equipment, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Land | $ 31,141 | $ 31,141 |
Buildings and building improvements | 247,870 | 246,654 |
Computer equipment and software | 461,829 | 462,469 |
Capital work in progress | 2,013 | 4,024 |
Office equipment and furniture | 6,912 | 6,472 |
Leasehold improvements | 1,403 | 1,403 |
Total cost | 751,168 | 752,163 |
Less: accumulated depreciation and amortization | (497,263) | (488,650) |
Total property and equipment, net | $ 253,905 | $ 263,513 |
Other Balance Sheet Items Other
Other Balance Sheet Items Other Balance Sheet Items (Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Goodwill, Gross | $ 1,537,843 | $ 1,537,843 |
Goodwill, Impaired, Accumulated Impairment Loss | (1,485,316) | (1,485,316) |
Goodwill | $ 52,527 | $ 52,527 |
Other Balance Sheet Items Oth_2
Other Balance Sheet Items Other balance Sheet items (Other long-term assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Contingent Consideration receivable | $ 14,721 | $ 0 |
Prepaid registry fees, noncurent | 7,779 | 0 |
Restricted Cash | 9,338 | 9,288 |
Nontrade Receivables, Noncurrent | 5,673 | 5,673 |
Prepaid Expense and Other Assets, Noncurrent | 3,535 | 3,642 |
Total other long-term assets | $ 41,046 | $ 18,603 |
Other Balance Sheet Items (Comp
Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable | $ 10,445 | $ 10,519 |
Accrued employee compensation | 54,746 | 51,481 |
Customer deposits, net | 57,025 | 63,617 |
Interest Payable | 24,318 | 47,357 |
accrued fees | 11,029 | 10,404 |
Due to buyer | 9,875 | 0 |
Taxes Payable, Current | 18,961 | 13,477 |
Other accrued liabilities | 28,809 | 22,748 |
Total accounts payable and accrued liabilities | $ 215,208 | $ 219,603 |
Other Balance Sheet Items (Narr
Other Balance Sheet Items (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Amortization of Other Deferred Charges | $ 32,900 | |
Deposits Assets, Noncurrent | $ 145,000 | $ 145,000 |
Debt And Interest Expense Debt
Debt And Interest Expense Debt and Interest Expense (Senior Notes) (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,785,047 | $ 1,782,529 |
Debt And Interest Expense (Cred
Debt And Interest Expense (Credit Facilities) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Borrowing capacity of senior unsecured revolving credit facility | $ 200,000,000 |
Credit facility, maturity date | Apr. 1, 2020 |
Aggregate increase of commitment amount available | $ 150,000,000 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Interest coverage ratio | 3 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2.5 |
Debt And Interest Expense (Conv
Debt And Interest Expense (Convertible Debentures) (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 01, 2018 | |
Debt Instrument [Line Items] | ||||
Loss on Extinguishment of Debt | $ 6,554 | $ 0 | $ 0 | |
Convertible Debt, Fair Value Disclosures | $ 651,300 | |||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | 3,770,000 | |||
Convertible Debt, Current | $ 0 | 627,616 | 644,700 | |
Principal amount of debt | $ 1,250,000 | $ 1,250,000 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 26,080 | |||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 3,170,000 | |||
Discount rate | 8.42% |
Debt And Interest Expense (Carr
Debt And Interest Expense (Carrying Amounts Of Liability And Equity Components) (Details) - USD ($) $ in Thousands | May 01, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Debt Instrument, Unamortized Discount (Premium), Net | $ 686,221 | |
deferred tax on debenture discount | (267,225) | |
Carrying amount of equity component (net of issuance costs of $14,449) | 418,996 | |
Principal amount of debt | $ 1,250,000 | 1,250,000 |
Unamortized discount of liability component | (612,303) | |
Unamortized Debt Issuance Expense | (10,081) | |
Convertible Debt | $ 627,616 |
Debt And Interest Expense (Comp
Debt And Interest Expense (Components Of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | |||
Contractual interest on Convertible Debentures | $ 20,015 | $ 47,432 | $ 40,625 |
Interest Expense, Debt | 87,063 | 73,638 | 60,938 |
Amortization of debt discount on the Convertible Debentures | 4,236 | 12,012 | 11,094 |
Other interest expense | 3,531 | 3,254 | 2,907 |
Total interest expense | $ 114,845 | $ 136,336 | $ 115,564 |
Debt And Interest Expense Deb_2
Debt And Interest Expense Debt and Interest Expense (Senior Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | May 01, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | Apr. 1, 2020 | ||
Debt Instrument, Face Amount | $ 1,250,000 | $ 1,250,000 | |
issuance cost on senior note | $ (14,953) | (17,471) | |
Senior Notes | $ 1,785,047 | 1,782,529 | |
Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Offering Date | Apr. 16, 2013 | ||
Debt Instrument, Maturity Date | May 1, 2023 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | ||
Debt Instrument, Face Amount | $ 750,000 | 750,000 | |
Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Offering Date | Mar. 27, 2015 | ||
Debt Instrument, Maturity Date | Apr. 1, 2025 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||
Debt Instrument, Face Amount | $ 500,000 | 500,000 | |
Due 2,027 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Offering Date | Jul. 5, 2017 | ||
Debt Instrument, Maturity Date | Jul. 15, 2027 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||
Debt Instrument, Face Amount | $ 550,000 | $ 550,000 |
Stockholders' (Deficit) Equity
Stockholders' (Deficit) Equity (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 07, 2019 | Feb. 08, 2018 | Dec. 31, 2018 | |
Treasury Stock Repurchase Programs [Line Items] | |||
Treasury Stock Shares Repurchased | 232,300,000 | ||
Additional share repurchase amount authorized | $ 602.9 | $ 585.8 | |
Stock Repurchase Program, Authorized Amount | 1,000 | 1,000 | |
Remaining common stock available for repurchase | $ 397.1 | $ 414.2 | |
Payments for Repurchase of Common Stock | $ 9,420 | ||
Share Buyback Program [Member] | |||
Treasury Stock Repurchase Programs [Line Items] | |||
Remaining common stock available for repurchase | $ 463.2 |
Stockholders' Deficit Stockho_2
Stockholders' Deficit Stockholders' (Deficit) Equity (Summary of Common Stock Repurchase) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 07, 2019 | Feb. 08, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,000,000 | $ 1,000,000 | |||
Additional share repurchase amount authorized | $ 602,900 | $ 585,800 | |||
Treasury Stock Shares Repurchased | 4,352 | 6,265 | 7,789 | ||
Treasury Stock Shares Repurchased For Tax Withholdings And Other | 309 | 335 | 320 | ||
Treasury Stock, Shares, Acquired | 4,661 | 6,600 | 8,109 | ||
Treasury Stock Shares Repurchased, Average Cost Per Share | $ 137.86 | $ 94.59 | $ 81.73 | ||
Treasury stock shares repurchased for tax withholdings and other, average cost per share | 123.62 | 85.27 | 80.74 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 136.91 | $ 94.12 | $ 81.70 | ||
Payments for Repurchase of Common Stock | $ 638,152 | $ 621,173 | $ 662,491 |
Stockholders' Deficit Stockho_3
Stockholders' Deficit Stockholders' (Deficit) Equity (Changes In Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Foreign Currency Translation Adjustmentss Loss, Changes | $ 0 | $ 530 | |
Foreign Currency Translation Adjustment, Balance | (2,836) | (2,836) | $ (3,366) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 130 | (18) | |
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | 25 | (105) | (87) |
Other Comprehensive Income (Loss), Net of Tax | 130 | 512 | 540 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2,811) | $ (2,941) | $ (3,453) |
Calculation Of Net Income Per_3
Calculation Of Net Income Per Share (Weighted-Average Shares Used In Calculation Of Basic And Diluted EPS) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted-average number of common shares outstanding | 113,452 | 100,325 | 107,001 |
Conversion spread related to Convertible Debentures | 8,589 | 23,247 | 21,074 |
Unvested restricted stock units | 620 | 608 | 758 |
Shares used to compute diluted net income per share | 122,661 | 124,180 | 128,833 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 32.00% | 31.00% | 30.00% |
Concentration risk second customer | 10.00% | ||
Deferred Revenue, Revenue Recognized | $ 690.1 |
Revenue Recognition (Comparison
Revenue Recognition (Comparison Of Geographic Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 1,214,969 | $ 1,165,095 | $ 1,142,167 |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 756,907 | 707,906 | 667,301 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 212,699 | 211,349 | 207,474 |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 106,841 | 106,526 | 127,298 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 138,522 | $ 139,314 | $ 140,094 |
Sale of Business (Details)
Sale of Business (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sale of Security Services Business [Abstract] | |||
Proceeds from Divestiture of Businesses | $ 50,000 | ||
Estimated Contingent Consideration receivable | 14,721 | $ 0 | |
Due to buyer | 9,875 | 0 | |
Gain (Loss) on Disposition of Business | $ 54,840 | $ 10,421 | $ 0 |
Employee Benefits And Stock-B_3
Employee Benefits And Stock-Based Compensation (401(k) Plan To 2007 Employee Stock Purchase Plan) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer contribution as a percentage of employee's annual salary | 8.00% | 6.00% | |
Employer contribution under the plan | $ 4.3 | $ 4 | $ 3.8 |
Common stock were reserved for issuance | 9.6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Other Share Increase (Decrease) | 2.5 | ||
Purchase price of common stock as percentage of lower of fair market value of common stock share on first day of offering period or last day of purchase period | 85.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3.3 | ||
401 (k) Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee's contribution under the plan | 50.00% | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Employer Contribution As A Percentage Of Employee Contribution | 50.00% | ||
Two Thousand Seven Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock were reserved for issuance | 8.5 | ||
Two Thousand Six Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock were reserved for issuance | 27 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of compensation withheld to cover purchase price of common stock | 2.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of compensation withheld to cover purchase price of common stock | 25.00% |
Employee Benefits And Stock-B_4
Employee Benefits And Stock-Based Compensation Employee Benefits and Stock-Based Compensation (Classification of Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | $ 52,504 | $ 52,907 | $ 50,044 |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 6,835 | 7,030 | 7,253 |
Selling and Marketing Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 4,972 | 5,688 | 5,738 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 6,728 | 6,113 | 6,739 |
General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | $ 33,969 | $ 34,076 | $ 30,314 |
Employee Benefits And Stock-B_5
Employee Benefits And Stock-Based Compensation Employee Benefits And Stock-Based Compensation (Share-based Compensation by award type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 52,504 | $ 52,907 | $ 50,044 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | (2,070) | (2,455) | (2,386) |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 38,005 | 38,087 | 37,325 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 12,403 | 13,270 | 11,512 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 4,166 | $ 4,005 | $ 3,593 |
Employee Benefits And Stock-B_6
Employee Benefits And Stock-Based Compensation (Stock Based Compensation to Modifications) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of Verisign's stock | $ 148.29 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 112.74 | $ 83.91 | $ 81.59 |
Income Tax Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit on stock-based compensation | $ 12.3 | $ 12.5 | $ 17.7 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 73.4 | ||
Weighted-average period of recognition for unrecognized compensation cost (in years) | 2 years 6 months | ||
Aggregate intrinsic value of unvested RSUs | $ 181.2 | ||
Fair values of vested RSUs | $ 107.2 | $ 75.9 | $ 70.5 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units with performance condition | 400,000 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units with performance condition | 0 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units with performance condition | 800,000 |
Employee Benefits And Stock-B_7
Employee Benefits And Stock-Based Compensation (Summary Of Unvested RSUs Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested at beginning of period, Shares | 1,588 | ||
Granted, Shares | 474 | ||
Vested and settled, Shares | (862) | ||
Forfeited, Shares | (93) | ||
Unvested at end of period, Shares | 1,222 | 1,588 | |
Unvested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 74.69 | ||
Granted, Weighted-Average Grant-Date Fair Value | $ 112.74 | $ 83.91 | $ 81.59 |
Performance achievement adjustment | 115 | ||
Weighted average grant date value Performance adjustment | $ 38.10 | ||
Vested and settled, Weighted-Average Grant-Date Fair Value | 66.37 | ||
Forfeited, Weighted-Average Grant-Date Fair Value | 88.43 | ||
Unvested at end of period, Weighted-Average Grant-Date Fair Value | $ 90.88 | $ 74.69 |
Non-operating income, net Non_2
Non-operating income, net Non-Operating income, net (Components of Non-operating income, net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-operating (loss) income, net [Abstract] | |||
Investment Income, Interest and Dividend | $ 26,490 | $ 17,944 | $ 6,191 |
Loss on Extinguishment of Debt | 6,554 | 0 | 0 |
Gain (Loss) on Disposition of Business | 54,840 | 10,421 | 0 |
Other Nonoperating Income (Expense) | 2,193 | (739) | 3,974 |
Nonoperating Income (Expense) | $ 76,969 | $ 27,626 | $ 10,165 |
Non-operating income, net Non_3
Non-operating income, net Non-Operating Income, net (Narrative) (Details) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain on Sale of Business [Abstract] | |||
Gain (Loss) on Disposition of Business | $ 54,840 | $ 10,421 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 01, 2018 | |
Income Taxes [Line Items] | ||||
Transition tax on foreign earnings payable | $ 96,400 | |||
Foreign tax credit related to withholding taxes | 106,700 | |||
Change in state tax expense - remeasurement of deferred tax assets | 10,000 | |||
Transition tax, noncurrent liability | 81,000 | |||
Taxes Payable, Current | 4,800 | |||
Transition taxes paid | 10,600 | |||
Deferred Tax Liabilities, Financing Arrangements | $ 0 | $ 430,088 | $ 439,200 | |
Federal statutory rate | 35.00% | 35.00% | 35.00% | |
Federal income tax rate after enactment of Tax reform (Percentage) | 21.00% | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | $ 186,800 | $ 0 | |
Transition tax on foreign earnings, net of foreign tax credits | 162,353 | |||
Foreign Earnings Repatriated | 1,150,000 | |||
Effective Income Tax Rate Reconciliation, Tax Holiday, Amount | $ 16,900 | 12,300 | 21,300 | |
Deferred Tax Asset for previously unrecognized excess tax benefits | 38,300,000 | |||
Transition tax on foreign earnings | $ 5,602 | $ (162,353) | $ 0 | |
foreign withholding tax | 60,700 | |||
Alternative minimum tax credits | 6,900 | |||
Tax Credit Carryforward, Amount | $ 18,600 | |||
Impact of tax holiday on diluted earnings per share | $ 0.14 | $ 0.10 | $ 0.16 | |
Tax credit carryforward expiration | 2018 through 2034 | |||
Discount rate | 8.42% | |||
Liability for Uncertain Tax Positions, Noncurrent | $ 219,500 | |||
Change in state tax expense | 5,600 | |||
Federal [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 4,500 | |||
State [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 700,000 | |||
Federal research tax credits | 2,300 | |||
Foreign [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 18,100 | |||
Tax credit carryforward expiration | 2,024 | |||
Federal And State [Member] | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carryforwards, Date | 2019 through 2034 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
United States | $ 420,597 | $ 313,351 | $ 299,304 |
Foreign | 308,919 | 285,661 | 281,869 |
Income from continuing operations before income taxes | $ 729,516 | $ 599,012 | $ 581,173 |
Income Taxes (Components Of Pro
Income Taxes (Components Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal, Current (expense) benefit | $ (99,127) | $ (16,870) | $ (34,842) |
State, Current (expense) benefit | (1,088) | (294) | (240) |
Foreign, including foreign withholding tax, Current (expense) benefit | (76,199) | (15,539) | (19,268) |
Current (expense) benefit | 176,414 | 32,703 | 54,350 |
Federal, Deferred (expense) benefit | 16,448 | (90,113) | (64,301) |
State, Deferred (expense) benefit | (42,624) | (19,654) | (21,492) |
Foreign, Deferred (expense) benefit | 55,563 | 706 | (385) |
Deferred (expense) benefit | (29,387) | 109,061 | 86,178 |
Income tax (expense) benefit | $ 147,027 | $ 141,764 | $ 140,528 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Income Tax At Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Income tax expense at federal statutory rate | $ (153,199) | $ (209,654) | $ (203,410) |
State taxes, net of federal benefit | (35,852) | (13,029) | (14,517) |
Differences between statutory rate and foreign effective tax rate | 46,928 | 83,808 | 79,087 |
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | (9,006) | (7,728) | 0 |
Capital loss carryforwards expiration | 769,700 | 0 | 0 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (773,737) | (5,813) | (511) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | (186,800) | 0 |
Transition tax on foreign earnings | (5,602) | 162,353 | 0 |
U.S tax on foreign earnings, net of foreign tax credits | 24,208 | 4,123 | 2,881 |
foreign withholding tax | (812) | 33,619 | 0 |
Other | (147) | (3,135) | 682 |
Income tax (expense) benefit | $ 147,027 | $ 141,764 | $ 140,528 |
Income Taxes (Summary Of Deferr
Income Taxes (Summary Of Deferred Tax Assets And Liabilities) (Details) - USD ($) | Dec. 31, 2018 | May 01, 2018 | Dec. 31, 2017 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Net operating loss carryforwards | $ 40,729,000 | $ 70,587,000 | |
Tax credit carryforwards | 3,970,000 | 52,659,000 | |
Deferred revenue, accruals and reserves | 74,437,000 | 77,869,000 | |
Capital loss carryforwards and book impairment of investments | 0 | 778,430,000 | |
Other | 6,724,000 | 6,776,000 | |
Total deferred tax assets | 125,860,000 | 986,321,000 | |
Valuation allowance | (10,153,000) | (783,725,000) | |
Net deferred tax assets | 115,707,000 | 202,596,000 | |
Property and equipment | (2,764,000) | (1,577,000) | |
U.S tax on accumulated foreign earnings | 0 | (162,912,000) | |
foreign withholding tax on unremitted earnings | (2,733,000) | (33,619,000) | |
Convertible debentures | 0 | $ (439,200,000) | (430,088,000) |
Other | (5,352,000) | (3,116,000) | |
Deferred Tax Liabilities, Gross | (10,849,000) | (631,312,000) | |
Total deferred tax liabilities | $ 104,858,000 | $ 428,716,000 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Gross Unrecognized Tax Benefits) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Gross unrecognized tax benefits at January 1 | $ 223,216 | $ 220,682 |
Increases in tax positions for prior years | 333 | 3,699 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (196) | (144) |
Increases in tax positions for current year | 436 | 395 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (1,416) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (334) | 0 |
Gross unrecognized tax benefits at December 31 | $ 223,455 | $ 223,216 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) number in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | |||
Number of domain names registered | 139 | ||
Uncertain tax positions | $ 219,500,000 | ||
ICANN Agreement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Expiration Date of Registry Agreement | Nov. 30, 2024 | ||
Registry fee per transaction | $ 0.25 | ||
Payments for registry fees | 33,000,000 | $ 32,300,000 | $ 31,500,000 |
.TV Agreement [Member] | |||
Commitments And Contingencies [Line Items] | |||
renewed agreement fees | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
Commitments And Contingencies_3
Commitments And Contingencies (Minimum Payments Required Under Purchase Obligations) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Purchase Obligations And Contractual Agreements [Line Items] | |
2,019 | $ 123,998 |
2,020 | 96,800 |
2,021 | 93,052 |
2,022 | 87,366 |
2,023 | 819,719 |
Thereafter | 1,193,875 |
Purchase Obligation | 2,414,810 |
Purchase Obligations [Member] | |
Purchase Obligations And Contractual Agreements [Line Items] | |
2,019 | 31,935 |
2,020 | 4,737 |
2,021 | 989 |
2,022 | 303 |
2,023 | 0 |
Thereafter | 0 |
Purchase Obligation | 37,964 |
.TV Agreement [Member] | |
Purchase Obligations And Contractual Agreements [Line Items] | |
2,019 | 5,000 |
2,020 | 5,000 |
2,021 | 5,000 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Purchase Obligation | 15,000 |
Senior Notes [Member] | |
Purchase Obligations And Contractual Agreements [Line Items] | |
2,019 | 87,063 |
2,020 | 87,063 |
2,021 | 87,063 |
2,022 | 87,063 |
2,023 | 819,719 |
Thereafter | 1,193,875 |
Purchase Obligation | $ 2,361,846 |